Tom
Forum Replies Created
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Rob:
Can you post some links for what you are describing so we can do a “test drive”.
It would help me reply better.
Thanks!
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Aaron Schreur wrote:
> Do any of you do work for used car dealers? If so what kind of deals are you cutting them(percentage)? I have been working for one for a couple years now and have just been charging labor and the parts go on the car lots accounts. I have covered some of the lost parts profits by a higher than normal hourly rate but I am starting to think it might be to good of a deal for him. There is always a backlog of cars to work on which is very nice when the walk in customers slow down.
Once in a great while when a very complex issue arises a dealer will bring us a car. But, that’s about it. I believe there is a nearly endless supply of underground/illegal shops around here that get most of that type of work.
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Administrator wrote:
>
> _____ We wash all customer cars
>
> ___X__ We wash some customer cars. Please explain which ones and why those particular cars:
>
> At this point it is completely determined by whether we have time to wash them.
>
> ______ We do not wash customer cars
>
> If you do wash any customer cars:
>
> ___X___ We wash them on site
>
> ______ We take them to a car wash off site
>
> Feel free to add any other information about the process at your shop.
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Every one to two weeks.
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A long time shop owner I know in town here (used to go to high school with him) would likely tell me to just fix it and move on…and I would tend to agree.
For what it’s worth, looks like you can pick up a decent recycled one for about $100 or so.
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Jamie Crutcher wrote:
> This may spawn a whole different conversation but I would love to hear
> suggestions about handling that list and maintaining great service,
> are others hiring gs or reception types to help out or is it better to
> have extra advisers. I get that its too much and have tried to
> accomplish it too and its true that service declines as you over task.
Every task needs to be assigned and scheduled if you want to make sure they get handled.
Doing so will also show what is too much for one person, uneven duties, etc.
Most shops have too few “non-techs” to support the techs…which leads to a host of issues.
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Gary Keyes AAM wrote:
> What are you doing on the internet besides your website?
Gary…
The biggest thing is watching other businesses of all types to see what they are doing. Seems like there are endless ways to use email, coupons, search engines, etc. Just starting to play with QR codes.
Again…see what any type of successful local business is doing and apply it to auto repair.
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George Smith wrote:
> I have a 18 year veteran in the shop. Through the years he has been a big assett to my shop and to the dealership. He is a wiz at gear work, diff’s, manual trans, ect…
>
> In the last few years his flat rate hours have been on a steady decline. His average is now 18 hours/wk. I have talked with him, pushed him, even put him on a pay schedule that could show him a major increase in his pay, if he would turn more hours.
>
> Nothing I have done has helped. Every payday he throws a fit about not making enough, but still no more hours. “Can’t pay my *&^% bills on this”, blah, blah, blah yall have all heard it!
>
> My question is, what do you do about a veteran in this position? Any ideas out there? I could put him on a salary, if he where a drivability tech, but he’s not. He’s a good a/b line tech according to what he is working on. Has a “no big deal” attitude that is getting worse and yes my stress level is starting to build.
>
> Any ideas would help!
>
> Lee
Lee:
Easy for us to make calls when we are not you. Having said that, all good things come to an end…and this may be one.
You said:
“He is a wiz at gear work, diff’s, manual trans, ect…”
and
“He’s a good a/b line tech according to what he is working on.”
I believe those should be past tense. He can’t be now with those hours. Sit down with him, have one last talk and if nothing changes….well…you get the idea…
(Can you use him elsewhere in the business?)
Oh…and please do not put him on salary…that will likely only make things worse.
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I know that some of the GM dealers around here use the ACDelco all makes/economy parts which can be substantially less than OE. Since they say ACDelco, I really doubt that customers realize they are often not getting OE GM parts,
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Joe Valind wrote:
> We have the exact same office/waiting area and it can be a real challenge when customers are waiting. Generally, I will actively listen as much as I can, to help build a relationship. I probably enjoy visiting too much, and visit too long. I remember Christmas shopping one year when I ran into a customer, who lost his job 2 weeks prior. I spent a good 30 minutes visiting with him as my kids were running around crazy. That 30 minutes I spent encouraging him, really made an impact. When he finally started working again he stopped in to share the good news and has since spent a lot of money making sure his vehicle is reliable again. The return on those 30 minutes has been very good. When work just has to get done, I have found being able to have another work station in the shop helped. I would just excuse myself and work on the shop computer for a while.
Two great points, especially the former. The right amount of conversation and interaction will cement many customers to a shop pretty much for good…there are no other shops in their mind once it occurs.
A service advisor work station in the shop has many benefits in addition to the one that you mention. Many shops could stand to add one or more PC’s or laptops, or replace the dinosaurs they now have.
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Gerry Schomisch wrote:
> How much are you looking to buy?
250 to 500 gallons depending on the price.
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Quantity is about 75% internet – 25% traditional.
Dollars are about 50% internet – 50% traditional.
Most of our new customers are coming from the internet.
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Thanks to everyone for your comments…plenty of great points and ideas!
I must admit that I wrote multiple responses, did not like any of them, then asked a fellow shop owner for help with the result being what was posted.
Some people can handle this stuff nicely…others not so much. It is hard for some of us to reply when we are the target. I strongly suggest that before you reply to a review, you ask wise people who you know and/or post the request here for input. Odds are high that your reply will be better that way.
My wife is sure that the review is not legit. My guess would be another shop…maybe one of the many illegal ones around here.
We have sent multiple requests to Google making a case to remove the review, but no luck so far.
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Jason:
There are so many variables from shop to shop that it is hard to give some good numbers. One thing that does strike me is that for an SA to do an exceptional job, that list may be a bit much.
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Administrator wrote:
> How do you deal with failed transmissions at your shop? Please check all that apply. Feel free to explain why you do it the way(s) you select.
>
> _____ Rebuild them in house
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> __X___ Sublet the entire job to a transmission specialist
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> _____ Sublet the rebuilding to a transmission specialist, but do the R&R in house
>
> _____ Refer the customer to another shop or dealer
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> __X___ Replace them with recycled units (used)
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> __X___ Replace them with OE remanufactured or new units
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> _____ Replace them with aftermarket remanufactured units from:
>
> ________________________________ (name of vendor/supplier)
>
> _____ Other (please describe): ____________________________________
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Increase of about 50% in labor rate, depending on the stats in a particular shop.
However, it makes more sense to me that our industry move to total job pricing like so many other service industries. If I have a deck installed at my home, I get a bill for a deck: $1,800. I do not get a bill listing individual prices for 6 different types of boards, 3 different sizes of nails, concrete, shop supply, labor, sublet labor, hazmat, etc.
Auto repair bills should look like this:
Brakes total $XXX
(all individual items are listed, but not with individual prices)
Oil change total $XX
Engine performance total $XXX
Grand total $XXX
This would eliminate the majority of pricing rabbit trails.
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umesh jatav wrote:
> How do you manage customer complaint process,
It depends on what type of complaint. I will reply assuming that the customer believes (rightly or wrongly) that there is some type of problem with his car related to the work that you just did.
First step…
If he is there at your shop, you tell him you will look at it immediately…and you do so.
If he is calling or emailing, you ask him how soon he can come to your shop to look at it.
Basically, surprise him by looking into the situation immediately (often quicker than he was anticipating). This will reduce any tension in most cases. And, the sooner you get to the bottom of the issue, the sooner you and your staff can go back to your other duties.
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Cheryl Lindbeck wrote:
> Earlier this week we had a customer approve about $400.00 worth of repairs. This was a customer that had been to us before, but it’s been a couple of years since we saw him. Our process is, we schedule the appointment to confirm the vehicle problem. We call the customer with an estimate before we do any work to the vehicle. With approval we complete the work and call the customer when the vehicle is ready for pick-up. I spoke to both the husband and wife in this instance and had prior approval. The customer came to pick up and asked me to hold his check as he wouldn’t get paid until Friday. He then followed it up with the comment “we want to keep doing business with you but…”, implying that if I didn’t hold his payment he would not be back in the future.
> Against my better judgement, yes, I’m holding the check. I have noted this customers file to always get a deposit in the future for any work.
> Anyone else have any other suggestions on how to deal with this situation, if it occurs in the future?
> Thanks!
> Cheryl
While what I am about to say is much easier said than done, it is well worth the effort.
Look for better customers. What things can you do to attract a better class of customers?
As for questions like his, smile big while you say “Sorry…we cannot do that.” If he really he wants you to work on his car, he will find another way to pay at pick-up.
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Dave Thomas wrote:
> we have 2 that we are no longer using. we just replaced them with 2 new hunter elite systems. we will also have another full system in 3 weeks as we are replacing a third shop of ours with hunter.
Please email me with details…thanks!
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Administrator wrote:
> What is your goal for average hours produced per tech per week at your shop?
> ___X__ 50
>
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Lenny:
You say she talks with clients. Does that mean she is selling work? If so, sales success would be one of the first things that I would look at. Sometimes employees do things that bother us, but they seem to do really well at their job.
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Daniel Fenti wrote:
> I’ve gotten burned twice in the last 2 years with customers approving repairs over the phone in some manner or another, and then when they show up to pick up their repaired car, present me with a copy of the NC law stating they do not need to pay for repairs if they did not authorize. I am then forced by law enforcement to release their car to them.
>
> In speaking with my lawyer she indicates the only way I can really avoid that is to act like a hotel, by asking for a credit card imprint when the customers check in. I can’t imagine someone dropping a car off for a diagnostic giving me a credit card imprint.
>
> Being a transmission shop, I’m not looking at losing a $400 repair bill, I’ve lost a $2300 and a $2800 repair bill with this crap. Needless to say, this is a hit in this economy that I can’t afford to take.
>
> What do you guys do?
Try checking with another attorney. Something about this does not sound right. It goes like this here….
Start with a customer signature authorizing initial testing, etc. Can be done in person, after hours form, or via fax.
Additional amounts are normally done over the phone and include: Who called who, phone # called, date, time, brief description of added items, and dollar amount. Other methods would be in person with another signature or email.
Last time we had an issue was several years ago. Sheriff was called by customer and told customer to pay up if he wanted his car.
If you can confirm that your state is different as you describe, then just pay close attention to each customer. If they seem a bit odd (90% of the time, you can tell), then tell them that they have to come in to sign in person for additional work.
Even though I do not have to do so, I do that now with jobs in the price range you are referring to. Plus, I get a deposit for maybe half the estimated final bill. This is not common, but when they seem flakey, it clarifies things.
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Candy Raynor wrote:
> We are considering switching to a flat rate system instead of hourly. The techs need more motivation and this could be the way to do that. We are in NC. What is the standard flat rate for a new mechanic? What is the flat rate for a new body repair tech and one that has been here for about 7 years, but does not produce at a high level?
Candy:
Flat rate (and any other pay system for that matter) really should be set according to labor gross profit goals…commonly in the 65% to 75% range. In other words, you figure out what you can afford to pay and set the rate accordingly. If that does not work out for whatever reason, then adjustments may be required to how the shop bills.
We can’t discuss labor rates here, however the idea is to pay the tech somewhere between 25% and 35% of your effective labor rate.
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Larry DAUGHERTY wrote:
> I’m looking to change our company wide pay plan for service advisors. My
> thoughts are to put the advisors on a gross profit sales for labor and
> parts. I’m trying to decide what my comp as a % of gross should be. My
> thoughts are the more they sale the better it is. Anyone have a pay plan
> like this? Any help is welcomed thanks.
The plan that we used is a base, plus an incentive based on gross sales, then adjusted by parts GP. But, I’m guessing that your SA’s cannot determine GP.
Regardless…we start with what percent of gross sales, not GP, that we can afford to budget as SA pay. Then it’s a matter of working the numbers backwards to determine what percent of gross sales, or in your case GP, that they can be paid.
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Candy Raynor wrote:
> We are experiencing a major problem. (snip)
Candy:
Great post…looks like a good place for me to ramble on for a bit as I used to do back in the old days.
First, employees who care as much as you are not all that common. I hope your boss realizes that. At least he is not fighting the battle alone.
Second, from what I have seen, it is harder for small businesses to find help today than it has been in decades and it is getting worse. As more people figure out that they can take advantage of endless handouts, infinite unemployment compensation for example, it will continue to worsen. Many former employees are now collecting multiple handouts while they run their own “business” out of their home giving them the highest cumulative income (tax free) they have ever had. So, shops can’t find help and have to compete with people who can sell repair for far less and make more doing it. ASA Michigan currently has a campaign to go after them.
What can be done? Virtually every one of these “businesses” is violating multiple laws. Income tax, business license, FICA, workman’s comp, zoning, fire dept. regulations, EPA (those folks take what they do VERY seriously) etc. etc. This industry needs to quit looking the other way and start to turn these people in. If there was an unlicensed guy in your town doing dental work for half price out of his basement, do you really think the local dentists would look the other way?
How do you find help? Keep advertising for it, take hundreds of apps if need be until you find a good one. They are out there. Do not discount the “kids”. Look for sharp kids who have not been taught the wrong way to do things. One of our kids works at an indie shop. He is 21 and the week before last he billed over 70 hours in a 45 hour 5 day work week. No kidding.
All shops should also take a good look at their facility. Does it look like a super nice place to work? What can you do to make it more appealing?
On accountability, a good incentive based pay system and a straight forward handbook that is enforced will address that.
Make sure everyone in your city/county knows that you are hiring. Get on the phone, put a sign in the front door, email your customers.
Have you tried http://www.ACTAutoStaffing.com
When you find a possible candidate, make a deal with him for a one week trial. It normally takes 1-3 days to find out if he may be worth keeping.
Keep looking…somewhere near you a wife has had enough of the old boy hanging around the house and making a mess in the garage, and she is harassing him to get off his dead butt and get a real job.
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Kyle Rickermann wrote:
> What is everyone getting for a A/C Diagnosis Charge for hooking up equipment, putting refrigerant into the A/C system and Leak checking the system. we are just having a little problem with people wanting things for FREE and its getting old quickly.
Kyle:
We are not supposed to discuss specific prices here. If that occurs, this thread would be removed.
As to the problem you are having, whether it is air conditioning or anything else, you might consider taking a “quick free look” when customers don’t want to pay for testing. Take 5 minutes to see if anything came unplugged, maybe check the pressure with one of those tire type gauges made for A/C, maybe stick a thermometer in the vent….then recommend the appropriate testing (which you charge for).
That will normally get a lot of them to OK testing charges once they see that you are interested in their problem.
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Using this company…no significant complaints:
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There is a mathematics test in the Management Checklists (Premium area) Forum on this website.
Have them take it before scheduling an interview.
It really is not that difficult, but it will eliminate most applicants right from the start.
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Tom Piippo wrote:
> We can do canned jobs, and with a LOT of manipulating make it come out this way, but time consuming… I’m curious if this format satisfies Michigan’s requirement of an itemized invoice?
Absolutely. Contrary to popular myth, the law says nothing about itemized pricing on the final invoice.
MOTOR VEHICLE SERVICE AND REPAIR ACT (EXCERPT)
Act 300 of 1974
257.1334 Written statement required upon return of repaired vehicle.
Sec. 34.
A motor vehicle repair facility, including a gasoline service station which performs any of the repairs listed in the repair categories of certification for specialty mechanics or developed by the administrator by rule, shall give to each customer a written statement upon return of the repaired vehicle to the customer. The statement shall disclose:
(a) Repairs needed, as determined by the facility.
(b) Repairs requested by the customer.
(c) Repairs authorized by the customer.
(d) The facility’s estimate of repair costs.
(e) The actual cost of repairs.
(f) The repairs or services performed, including a detailed identification of all parts that were replaced and a specification as to which are new, used, rebuilt, or reconditioned.
(g) A certification that the repairs were completed properly or a detailed explanation of an inability to complete repairs properly. The statement shall be signed by the owner of the facility or by a person designated by the owner to represent the facility. The name of the mechanic or mechanics who performed the diagnosis and the repair shall also appear on the statement.
History: 1974, Act 300, Eff. Apr. 1, 1975
© 2009 Legislative Council, State of Michigan
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$1.6T would be a good start.
But, it would have to be more than that to pay down the debt.
