[Randy Lucyk]

The answer is Yes, once,  to the question that was asked. We have had listings with a few and gotten a few responses. The only hire was the worst tech i have ever had and it did not take long to figure it out. Talked a good game and thats where it ended. Only tech i ever told to roll his tool box off the property immediately.

I suspect some of them are delivering results in some cases or i don’t think they would still be around. We generally have enough entry level folks, and the techs we are looking for when we do need a line position filled are generally working and not necessarily looking. I suspect the best are never looking for long.

I have been involved in some “new technology” social media mining for working techs with minimal results.

In some cases it is whether they would want to work for me or the brand i fly.

 

[Randy Lucyk]

For our store, the cost of a new customer that visits us at least twice in the first 12 months is between $25 and $75, depending on the effectiveness of the campaign that brought them in originally. For large multi store brands, the cost of getting a new customer to visit once, is more in the $75-$125 range, or so i have been told.

I have settled on $50 as the cost of acquiring a new customer for just one visit, guaranteed. If a new customers visits our store for at least an oil change, we have committed to sending an organization they support( an organization that is signed up on our My Town Cares community support program) $50 for sending us a new customer.

I am tired of sending money to printers and the post office in an attempt to gain new customers. Not a single dime of that money offers any direct benefit to our local community. The cost of our postcards drops are more like $2500 per drop and we do 3-4 drops a year. I seems like the definition of insanity, after all theses years of doing drops.

We are piloting this program starting this week with a local youth organization. I hope to transfer much of our traditional advertising costs to this program over the next few years.

Outline attached.

 

[Randy Lucyk]

We follow a similar procedure to mcelroysauto and second the importance of documentation. I have found that a test drive with the customer for any intermittent, noise or other not easily described issue, goes a long way towards gaining us some patience and understanding from the customer. If we are unable to experience the issue on the initial test drive, we go back to the customer and explain that moving forward with the diagnosis does not always lead to definite results. We also share the attached document when appropriate. We do have a fair amount of success consulting pattern failure databases when it comes to intermittents. It just seems to get us heading down the right path sooner.

[Randy Lucyk]

additional images

[Randy Lucyk]

I have a little different view of this. It looks like this single tax(social insurance) is 32% of wages vs 6% in our world. With numbers as high as yours, I would use that cost as part of my direct cost and as such use it in my labor rate calculation and gp% on labor percentage calculation, just as if it was wages.  Their are other variables we do not know, so it is difficult to comment on whether 70-75% would still be consider a good target for return on labor dollars or not. I suspect it would still be somewhat close.

[Randy Lucyk]

Michigan law is a little fuzzy and there is a distinction in the language between estimates(which are required to be presented and signed). The law definitely calls for itemized parts and prices on estimates. Requirements on final invoices has much more grey in it, although i suspect an inspector will take exception to no parts prices on final invoices. Kind of moot point if you are following the letter of the law, since all customers should have a signed estimate copy anyway. (with parts prices).

I have been toying with the idea of going to a “Shop Rate” in place of a parts margin  and putting it in a renamed “shop supply” field. Same dollar amount as parts margin, just moved to a different heading. This approach will likely be frowned upon as well.

Maybe we are asking the wrong question. Is it past time for the industry to decides how to be fair to our best customers by standing up and educating our occasional customers. I recorded the following video with examples for my staff. It demonstrates how we will be moving forward with our charges to customers. This is not just about educating our retail customers but also industry customers, as well.

Nothing changes for my best customers, only my occasional customers.

Onedrive link below:

https://1drv.ms/v/s!Ap7ibKYluQae7U92DsXcH49Ch9v7

 

 

 

[Randy Lucyk]

Nicely Done

Thank you

[Randy Lucyk]

Sesco Management does some fine work for the automotive industry in regards to all things HR.  https://sescomgt.com/services/resources

Poking around on their website will not be a waste of time. They work with several franchise and automotive service associations. Their “Sesco Report” is well done and can be subscribed to on their home page. I receive three of these kind of reports and theirs is the best.

If you use a payroll service, they frequently have handbook assistance. You can find lots of examples with a “automotive service employee handbook” google search.

 

[Randy Lucyk]

In our store we have found our selves occasionally being the bad guys because we insist on using the correct oil for the engine, and we may be somewhat of an exception, at least as far as quick lubes go. A week ago we had a 2015 truck with 20k miles and the manufacturer called for 0w20 oil. We quoted the 0w20 full synthetic oil change and the customer was quite surprised. Turns out the last quick lube to change oil used 5w30 conventional in the truck and customer had no idea what the vehicle called for. He expected we would know the right oil, which we do, and that is what we sell, especially during the warranty period.  Now combine this industry practice of using the wrong oil with extended intervals and the final recipe does not spell well for second owners of the vehicle and sometimes, even first time buyers.

I did an oil change by type analysis last week. YTD we did  1601 conventional(includes diesel)1654 full syn and high mileage and 970 syn blend. The syn blend was sold because that was the minimum oil to meet the spec, and I suspect most of the full syn was as well, or requested. We mostly only upsell to high mileage.

We warn our second owner buyers of the potential for motor issues on these modern vehicles. Lately, virtually every time we quote any reason for a head to come off or timing repairs on modern vvt motors with any nore than a 100k or more, we usually find ourselves considering the cost of repairs vs. the cost of a replacement motor. The motor replace usually wins.

We recently rewrote our non approved oil agreement (attached) due to a husband flipping out on his wife over the fact that we used a synthetic oil meeting the manufacturers spec for the first oil change at 9k on their 2017 nissan. He specifically told her to get the cheap oil because it was a lease vehicle. She called back to say she felt pressured to use the right oil????

[Randy Lucyk]

Here are attachments in pdf format

[Randy Lucyk]

I have been kicking this can down the road for too long and I am glad i finally sat down and chose a path for this subject

I have put a fair amount of effort into this over the last few weeks, mostly because it was time for me to get my head around how we would be handling these requests in the future. It may be important to note that we do not have a lot of folks asking us to install their own parts, which surprises me. That said, we do have folks tell us what parts cost at the autoparts, pretty much every week.

I believe sometime in the next year or two we will begin to start seeing a shift from the traditional automotive service model of parts margin and labor rate making up the majority of our charges,  to a “Shop Rate” consisting of a minimal parts margin, shop charge and labor charge making up the majority of our income stream. I may well do it sooner than most, once i find a work around in Rowriter.

We have a charge to put a car in a bay with the resources and equipment to efficiently perform a service plus a skilled technician to do the work. We have always charged a Shop Rate without calling it that. Currently, it is the combination of the labor charge, parts margin and shop supplies and it changes for every job we do. It is not hard to calculate. The Savings Example attachment explains it in better detail.

So moving forward, we will be handing out the Savings Example attachment to consumers interested in having us supply their parts. If they continue to be interested, we will hand them the second attachment. I suspect after the they consider the Consumer to Installer Agreement, we will have few takers.

I am not completely convinced this is the right path, but at least we have chosen one. We can continue to say no to customers when they ask if we will install their parts and they will continue to believe there is something fishy going on. Or, we can begin to educate them on the reality of modern auto repair and let them make their choice.

I don’t believe we will be converting a lot of these folks to customers. I believe they will just find a different facility that has not put as much thought into whats fair. That’s Ok. Maybe, just maybe they are leaving our place a little better educated on what they are asking of us, when they ask us to install their parts.

We won’t be saying no and we will be educating. We will have a requirement for parts quality, dependent on the system being serviced.

These attachments are new and/or completely rewritten from anything seen previously. If this subject does not interest you, best to stop reading now. I would appreciate it, if you are going to take the time to read the attachments, take the time to consider them in their entirety, or not at all. This is not the kind of information that a cursory review will do justice to.

It is important to note the the Consumer Protection Act in Michigan DOES allow a provider to disclaim implied warranties. It must be BOLD and OBVIOUS. I believe the attached documents meet that requirement. Check the laws for your state.

[Randy Lucyk]

I believe what has been missing from this conversation is the concept that what we really have in this industry is a “shop charge”. As least in the case of brick and mortar stores. We have a charge for a roof, equipment and a skilled operator to perform the necessary task. The charge is typically the sum of the labor we charge, the gross profit dollars on the parts we sell and shop supplies. Maybe we need to re-evaluate how we present our service…

If you need dirt moved for a construction project, you pay a “rate” per hour for a dozer or excavator, and that rate includes an operator. Typically,  2/3’s of that rate is for the equipment and 1/3 for the operator. We use a “labor rate” and yet our technicians are not laborers, they are skilled “operators” and our facilities are expensive pieces of equipment.

Maybe our challenge is internal. Maybe we need to rethink how we present our service. I can generate the same amount of gp$ per hour regardless of where the parts come from, as long as i understand that my shop charge needs to be the same. It is the charge for putting a technician in a bay(or two), supplying him with adequate equipment to perform his job efficiently and the skills he is required to have.

I can charge less, but something has to give. If i have no responsibility and limit my liability for the parts, warranty, ect, their can be a small savings for the consumer. Not the huge savings they believe is there, just some percentage points, as the risk gets shifted to them.

Not unlike much of what we deal with on a daily basis, part of our job is that of educators.

 

[Randy Lucyk]

I wanted to say thank you to all who took the time to respond to my post. A lot of great thoughts and valid points. I believe we all know that our business’s will continue to evolve and the new buzz word “disruptions”, will continue to occur.

Convenience and trust will continue to trump  all else with a majority of customers for the time being. I do not expect this to change for the masses, during my business lifetime.

I do believe in understanding trends in the marketplace.

Amazon’s current automotive service platform will have stumbles. That said, they are not as ignorant to our business as I wish they were. Two years ago i worked on a pilot with Amazon where they were testing an automotive estimating platform that did adjust for labor hours. It ran into a technology glitch and did not go further to my knowledge. Not sure i would know if it did. Lot’s of activity in the digital world with new devices and platforms seeking to improve transparency while getting between us and the customer. In many cases it will just result in higher prices to the consumer. Increasing transparency in retail is a given. The closer we match our model to our market, the stronger we will become. That hasn’t changed.

This post started because of conversations with one of my vendors. I continued that conversation with one of the higher level execs over the last couple weeks. He wants to believe he understands our margin requirements, which I offered to make those requirements vividly clear. He understands the ramifications of no warranty and how ugly that could get.  He wanted to believe if we could just come up with a “warranty package”, he could send his DIY customers to us, and his problems with Amazon could be lessened. He was quite persistent in keeping the conversation going, which I enjoyed.

In the end I told him, I would “test” the following concept with customers he sends us.

Customer supplies the part purchased from his organization, we will install it under the guidelines of the Consumer/Installer  agreement(newly minted agreement  attached), with a 30% up charge on whatever our normal labor would be for the service requested.

For another 20% up charge on the already up charged labor, we would warranty the labor for the part, only once, as if we supplied it.

I have not heard back. I suspect he realizes that his DIY customer would likely seek out a “less expensive” service provider, of which we have many, to perform the service, rather than pay our price or requirements.  I suspect it will be the same with Amazon. Our initial inquiry from a consumer in our Amazon test wanted to know if we would install two front wheel bearings for the price we had set for one. We can find shops in our market willing to do just that.

One of the things i greatly appreciate from this thread and this subject matter, it has finally caused me to put on paper what I have always wanted consumers to know when they ask about parts prices or to install their own parts.

If a consumer wants us to install their part, then fine. As long as they pledge all of their personal assets and pledge indebtedness for the rest of their lives, while pledging  to be first in line if anything goes wrong, that’s a start. .  After all, that’s what we do every time we open the doors for another business day. Would the agreement ever stand up in court, doubtful. Yet maybe their would be some valuable lessons testing it’s legality.

Consumers have every right to do what they can to save money, but it needs to be very clear that saving money on their part, should not cost us money as a result.

As this subject goes, automotive life in Kalkaska will continue pretty much the same for the near future. We will continue to look for better ways to service our customers, while maintaining profitability.

Thanks again all

 

[Randy Lucyk]

I believe my approach to this is that I’d rather be sleeping with the enemy and have some idea of what to expect. So we got our first call today. Was asking about having a $90 pair(both for $90) of front wheel bearings installed on his 2010 T&C. Wondered how the whole thing worked. I am in a town of 3000 with two stoplights and the system has been turned on for less than a week. Don’t know where we are going with this, but were learning. Consumer to installer agreement attached. I suspect Amazon will nix us when they see it.

[Randy Lucyk]

We use a business size card that drives the customer to our review site on google using a custom domain pointed at our google review site and opens the review box as described above. We also use textbox to “text” customer review requests using the shortened  url feature from google, which accomplishes the same. See the google instructions at this url:

https://support.google.com/business/answer/7035772?hl=en

Pay attention to the “Tip” to see the shortened url instructions

[Randy Lucyk]

So we have once again begun the process of refining and updating our systems, essentially on paper. Granted, we are doing it of a computer within documents, but it really leaves a lot to be desired. Their is a terrible technology gap when it come to keeping process’s “alive”. There needs to be triggers, reminders, filters and cattle prods involved.

I have just completed work on 6 wifi enabled smart phones for techs and service writers. I hope to use them as a foundation for many daily aspects. We will be using them with already established centralized calendar with zapier integration, centralized texting service, centralized email platform, centralized cloud storage and direct voice/video communication.

I believe as ifttt integration becomes more widespread, this will get easier

[Randy Lucyk]

Jeff

We use EMC insurance and they definitely know we are using three vehicles for loaners cars. Two 15 year old cars with basic coverage cost just under $700 per year. We have an 07 caravan that costs $1200 a year for full coverage. 

[Randy Lucyk]

We are the same as Dick and Mark for the same reasons

[Randy Lucyk]

Self spawning habit builder with criteria functionality. You set the criteria and what you want done and the software requires it prior to allowing something that needs to be done. May not be invoice closure, may be prior to completing an estimate stage or some other stage in the process. Rowriter has some basic functionality in this area but needs to be extensively enhanced.

[Randy Lucyk]

I agree with most of what Jeff had to say.

The question as presented to him in regards to cell phone use was inconceivable to me. That an owner would allow this to happen is grossly negligent leadership.

All that said, I find myself in a quandary as it relates to useful aspects of cell phones in our business environment. Only one current example(with many more to come) is using personal cellphones with apps that allow them to interface with the shop management system for things like punching in and out of jobs, attaching pictures to the RO,  updating job status, starting repair orders in the parking lot while greeting customers and doing a walk around. 

Now we can continue to buy them all tablets or maybe smart phones with no cell service but as this technology develops it seems unlikely to me that 10 years from now we won’t just be using the devices that they carry with them everyday.

So the real challenge as I see it, is how to find balance between “allowed” personal cell phone use and cell phone use for the benefit of the business.

Many of the examples Jeff gave would be, should be and absolutely are strictly forbidden and always will be. A personal phone vibrating (never ringing) will never be more important than the customer in front of you or one of your co-workers engaging you in daily operational activities.

I think we have a little more work to do on this subject.

Randy
Midas, Kalkaska

[Randy Lucyk]

I am not sure that this functionality is very common as of yet. Janco has it for sure. i could not find anyone else but I am sure there are others. http://members.stocktrac.com/?p=897

Image of a screen shot from Janco StockTrac attached

This certainly seems like valuable info that I currently don’t have in Rowriter.

[Randy Lucyk]

Electronic Message Center?

[Randy Lucyk]

Something along the same lines I sent to my provider a couple years ago:

“Rick

One for the future and not so different than much of what we have discussed in the past.

A
continual challenge for me (and possibly my biggest roadblock to
improvement) is helping my folks create habits that match up to our
goals. It’s really more about the challenge of breaking old deeply
ingrained habits. We have discussed many times
having a self spawning labor entry at RO creation. I believe we could
find great value is something perhaps more robust. What if we had a
criteria builder (something like price profiles or choosing customer
marketing criteria) as part of labor op, smart job, part record in 
inventory , or just hanging out in the background waiting for a criteria
to be meet. Once the criteria is meet the action is spawned.

Yesterdays
discussion with my SOM brought up the idea of a labor entry that
spawned once the estimate total reached $299 (Midas Card, vs my current
idea of attaching it to all labor ops that may typically reach that
number).
Personally, I would rather it just printed (in the case of the GE
Card) a features and benefit sheet to go over with the customer along
with the est printout (I see some challenges to this, everytime I print
an estimate i get a F&B sheet, no that’s not what we want, so we
probably need a popup for “don’t ask again” after it prints once per
estimate or it only prints once). Properly thought out, I believe we could find many instances where this would be effective.

Between
self spawning labor ops, parts adds, screen pop ups and full page printouts I
believe we could make a lot of progress in creating the habits for
success. A late thought is maybe something like Excel data validation to
start? Little doubt any and all of this would would have to come with a
“setup builder” that would force an administrator to go through a setup
process at least once to get it going. Otherwise it just lays in the
background for no one but a few to use. We have learned that at great
expense with other “must have” features.”