[Tom]

25% to 35% margin (not markup).

Why?

Because if you can’t get at least 25% to cover your investment in time and effort, it’s not worth doing. If 25% is unrealistic where you are, then just refer the job and let the glass shop know so you can gain some goodwill.

Remember, when we start talking about “fair”, we want to be fair to the customers, our employees, and ourselves along with our families.

[Tom]

Larry, great story and a great tip! I just added an annually recurring date to my calendar to ask all employees when was their last eye exam.

I got my first glasses when I was ten, so they are just part of my body. 🙂

[Tom]

[Tom]

I agree completely. Where are they going to come from?

[Tom]

I think at some point they are going to wish they hadn’t done that.

[Tom]

Jay, this can be addressed in several ways. Everyone is always looking for the perfect way to schedule, but some shops today have set that aside and take in all the cars they can (within reason).

A different way to address the issue is asking how we get the advisors and techs to properly handle every car regardless of workload. Some shops do this just fine with less stress and more profit. If customer expectations are communicated well and everyone is on the same page, there’s no need to hurry.

The trouble is that you have a whole crew used to doing it the old way. All you must do is convince them there is a better way and bring them along. 😊

[Tom]

Oil changes are something we really focus on. Our goal is to have at least 50% of all ROs include an oil change. We price them according to the market in the area. Since oil changes are the number one most effective service in marketing, we use them to get new customers. Currently, our standard oil change is $49, and synthetic $69. The oil is ServicePro. We do a LOT of oil changes. Used oil heats our shop, also.

[Tom]

Can you explain this a bit more? I’m not sure I understand your system. Thanks!

[Tom]

I would be determining why I am two weeks behind and working on a plan to fix that.

I would be making sure we always ask every customer when is the latest they need their car back.

I would be underpromising what we can do realistically.

I would prioritize cars according to profitability from their service history.

I would make sure we are giving fantastic customer service and keeping them informed.

HTH! 🙂

[Tom]

A quick way to do this is to check the total GP% on every invoice that was closed the day before. That should flag almost everything that you mention. Then you look at those invoices for why the GP% was low. I do this every morning and I am regularly fixing things.

[Tom]

All discounting should be done at the end of the invoice leaving the normal standard pricing all in place. When done this way, discounting will have no effect on ELR since it is shown in full retail and the discount is an expense. HTH 🙂

[Tom]

The only thing missing from this plan is the relaunch of the Blackwood. 😉

[Tom]

I would like that, also.

[Tom]

For AutoCentricRepair.com

[Tom]

We’ve had one come in, but it was badly in need of a collision shop, so we never worked on it. When we do get to the point of servicing them, I expect will we treat it like any other high-tech feature when it comes to pricing. At this point, I doubt there is much price competition. Instead, who can take of it is likley the main concern.

[Tom]

<p>Good info, Larry. Thanks.</p>

[Tom]

[postquote quote=122944]

WOW! Hope you found a better insurance company.

[Tom]

57% up from 2020.

Very early, but Dec is starting out fantastic.

[Tom]

Up 50% – the numbers since February have been amazing for us.

[Tom]

[postquote quote=121277]

To improve our Euro capability, we recently bought the Autoland iScan3 and the latest Autel Ultra.

The techs are happy with both. For most Euro, they usually grab the iScan3 first. They say it is especially good on BMW/MINI.

We did not demo the one that you mention, so I have no knowledge of that one.

[Tom]

I think we need to make our workplaces much nicer to attract top employees.

[Tom]

38%

2021 continues to be on track for a record year.

[Tom]

[postquote quote=121119]

I think that it is currently very difficult to toss out any candidate. The absolutes will be different for every shop owner. I agree with your shop owner friend. I have my list. Late is one. No potheads, either. Did that ride – not again.

I think we should be tougher in general. The lack of standards and lack of strong response has made things worse for employees and employers. I recall how my parents would groan when we were in a restaurant and there was a little brat nearby with mama constantly repeating: “Please don’t do that, Honey.” Of course, he ignored her. I only misbehaved once in a restaurant. At least as a child.

I wonder how many shop owners have sat down and reviewed the reasons their last 10, 20, or more employees are no longer there. If we all did so, and are open-minded to learn (that’s another topic), I suspect our approach to hiring would be quite different.

[Tom]

[postquote quote=121108]

Joe,

My advice was not on how to treat anyone. My advice was strictly on whether or not to hire him. I will stick with what I said. Hiring him would be a bad decision.

Now, should I have sat down with him, briefly mentioned his tardiness wrapped in love and understanding? No. That would be silly. A reasonably responsible adult can show up on time, or call, or apologize. A reasonable person should expect to get a less than cuddly response when he performs so poorly.

Will he tell his buddies what a rotten S.O.B. I am? Probably. Won’t be the first time! Eventually, I may hire one of his buddies. The one who heard his story and said to himself: “What kind of idiot shows up half an hour late for a serious, high-paying job interview?”

[Tom]

[postquote quote=121106]

Joe,

Someone, maybe you, will hire this guy and the games will commence. 101 excuses why he is late this time. Finally, ways will be parted and he will move on to the next place. I’ve given the benefit of the doubt on the late crap one too many times. I’m done. It never works.

Now, if he had walked in profusely apologizing, I may have interviewed him. 1 Late – no – very late. 2 No call to say running late. 3 No immediate mention of it when he walked in. Three strikes, you’re out! 🙂

[Tom]

Not always.

But you have better odds of winning Powerball than having an employee show up promptly for work after showing up half-hour late for an interview with no call, text, or email. No apology when he sauntered in, either.

I sent you his resume. As they say, good luck with that.

[Tom]

I would tell him to hop on his bike, stop at every automotive business in his area, and tell them he is looking for a summer and after-school job.

Since that happens at most shops roughly….let me think….oh…NEVER…I’d say his odds are very good. 🙂

[Tom]

WOW!

[Tom]

Brandon, what we do at our shop with all staff is to create pay plans that are roughly half base and roughly half incentive. For a foreman or manager that would primarily be based on GP. We try to keep the pay plans simple so everyone can figure out their pay in a few seconds. Good luck!

[Tom]

Jim, do you have a link (or maybe a screenshot) of this? I looked over the NAPA AutoCare site but haven’t been able to find it. Thanks!