[Tom]

Peter, we decided that we did not want to place a flat fee or percentage on our invoices. Instead, we cover it in two ways. We bill for what we use, and we cover it in our margins overall. As computerization of everything progresses, it is becoming easier to bill for what is used in the repair. A can of brake clean. A tube of RTV. Five zip ties. For years many shops did not specifically bill for things like hose clamps and light bulbs. Today almost all of the do. This is just the next step in billing for things that are legitimately part of the job. It takes some time to transition, but once in place, this handled the issue well for us. Hope this helps! 🙂

[Tom]

We have an Energy Logic that we bought around 1995. No plans to replace it at this point. 🙂

[Tom]

No. Definitely scrap that idea.

Instead, increase sales like Ray said. Or, add a service – detailing, bed liners, or one of dozens of other car related services. Anything to generate some income while getting new customers to become aware of what you already do. 🙂

[Tom]

Because the laws vary so widely from state to state this issue is a good one to direct at a local trade or business association. Will they ask that you join? Of course. Being in North Dakota severely limits your options, however, someone somewhere can like help. How about this group? I suspect they run into similar situations.

http://www.ndida.com/ndida/index.php

Or any other local association dealing with vehicles in some way.

[Tom]

Many people are surprised to find that an employer can “discriminate” for many reasons. Laws are generally directed at age, race, color, religion, sex, national origin, disability or genetic information.

There is no law (as best I know) that says an employer cannot discriminate against drug users, people with body odor, or Packers fans. 😉

Tom P. made a reference to Class I. Yes, the feds place marijuana in the same category as heroin, cocaine, peyote, and LSD. A first offense is punishable by a $5,000 fine and one year in federal prison. While many expect that to change, it is the current law.

[Tom]

Another option for much less money – comments welcome.

OTC 1585A

[Tom]

Bob,

Tablet check-in can be used with a number of software companies, however, it seems to be one of those things that just has not caught on yet. I know several shops that have it, but none that use it. Maybe because a thorough write up often involves a lot of typing by the advisor, and that is hard to do on a tablet.

I think that technology needs to improve a bit and advisors need to become more comfortable with new technology. There is a lot of info about most of the better softwares here:

https://www.automotivemanagementnetwork.com/tools/software-shop-management-surveys/

[Tom]

100% paid health insurance for the employee only or for the entire family?

Thanks

[Tom]

Kyle,

Things like CRM, CC processing, etc. may be dependent on which shop management software you choose, so I would go after that first. Start by going to the comparison chart on this site:

https://docs.google.com/spreadsheets/d/1lRLSF-4f5VBaXMv4m_fAs4Vj0J5mzqg82Dk0bMTlRwE/edit#gid=350300638

Then narrow it down to the ones that may work for you. Then go to the full survey on each of the possibilities.

https://www.automotivemanagementnetwork.com/tools/software-shop-management-surveys/

Narrow it further, then contact your finalists and request a demo.

It will take some time, but this is the most important “equipment” purchase you will be making. 🙂

 

 

[Tom]

Kyle,

How about you list your top 5 things you would like advice on at this point?

Also, do you have any photos you can attach?

🙂

[Tom]

I can understand wanting to know why however even if you could what would you do with it?

What are you trying to accomplish?

Have you emailed Hunter?

Have you checked with your local IT guy?

[Tom]

Bob, I have not used them, but for what it’s worth…

Why are you thinking of discontinuing?

What are you looking for that they don’t have/do?

Which other companies are you looking at?

Just curious 🙂

[Tom]

We have done this off an on over the years – more off than on. I was convinced recently that overall there may be more to lose than gain. Many techs find it irritating and not motivating. I get the idea, the goal, the purpose. But it’s likely best to look for other ways. You might want to write down your goals, then meet with each employee one at a time for their ideas on how to get there. Good luck! 🙂

(BTW, we do post the total numbers for the shop each day and week. Sales, average RO, produced hours, etc.)

[Tom]

I’m not great with these folks which I why I write very little service.

But I can tell you that after over 45 years in this business almost all (there are exceptions) unreasonable, irrational or illogical complaints have one thing in common. The customer is broke or severely in debt or pressured for money in some manner and the repair shop gets to be the target of their frustration. Income is irrelevant. Can be $25K a year or $1M.

If you understand this and keep it in mind when dealing with them you will better understand their point of view which can help you handle them.

On the other hand, customers who have a great personal budget including a reasonable amount set aside for car repair rarely complain about anything. They will tell you about an issue they noticed and ask you to check it, but they will do it nicely. Then they will go with the result of what you find regardless of which way it goes.  HTH.

[Tom]

First, my experience is with cars and light trucks however there’s far more similarity than differences. We are servicing vehicles. Yours are just bigger. Today any system that has been in place for a few years is almost guaranteed to be out of date as the technology, the industry, and the people change rapidly. We add something to our policies and procedures manual weekly. Specific things to address issues that come up.

The first idea that comes to mind is getting everyone involved together, present the details of what you mentioned here and ask for any ideas, comments, questions, suggestions – feedback of any kind. How do we improve this? Next, have one on one meetings with each staff member and ask the same question. If you listen carefully odds are you can improve greatly on your situation by doing this and then acting on the feedback. Usually, the staff knows the various flawed pieces of the puzzle but they don’t respond without being convinced that you really, really do want to know. Then you have to keep asking and keep asking and keep asking until it becomes part of the normal operation of the shop

I would bet that this process could get you more than halfway to your goal; maybe much more than halfway. 

[Tom]

To clarify, we have all options including loaners and shuttle. The “system” is:

1 Does customer have their own transportation? 

2 Will an Uber work? 

3 Will a shuttle work (maybe we want to listen to a noise symptom with them or something)? 

4 Will a loaner work? This is mainly for the customer who needs a vehicle for more than just to and from a location. However, this is by far the minority. Most go somewhere and return when the car is done or can find a ride back easily.

We intended to get more loaner cars but scrapped that after we started using Uber. I also understand that shops in remote locations – like Randy (I see his shop occasionally on Ice Road Truckers 😉 ) – do not have ridesharing options.

For anyone with good Uber availability once they have used it for a few weeks they get sold pretty fast. The process of ordering the ride, the low cost and the speed that it occurs are impressive. 

 

[Tom]

Yes, however far less than we did at one time. Now less than one a day.  This is a dying service due to Uber, Lyft, etc. The cost of a vehicle, employee, time, effort, etc. can be greatly reduced with ride services. Customer acceptance is far better than we anticipated. For new shops, don’t start. For existing shops, phase it out. Unnecessary expense. 

[Tom]

I know our machines would not do what you need, although they work fine for us (smaller tires).

More than 20 of the major tire machine companies are listed in the directory here – scroll down to Tire and Wheel Equipment:

https://www.automotivemanagementnetwork.com/tools/shop-owner-resource-directory/

I’m sure several of the ones listed sell machines designed for those large tires.

Good luck!

 

[Tom]

We pay $20 per hour for seat time in classes as you describe. We pay it monthly. Typical class is 15-30 minutes away. We do not pay for that travel time. We are now doing more online training. AVI OnDemand has a nice program for that, better than what we have previously tried. Initially we are setting a goal of 1 class per week and so far it is working. They have 300+ classes. These are taken mainly at the shop during work hours so no additional pay is needed.

[Tom]

Indeed, LinkedIn and Craigslist are what we have used with some success.

The ad itself and especially the title make a huge difference.

Also since most everyone is working the job has to offer something more and special compared to where they are now.

 

[Tom]

We do 99% of parts look-up and ordering ourselves strictly by using the VIN. Most of the time if the part is wrong its because they pulled it wrong at the parts store or got it mixed up on the delivery truck, and that does not happen often.

For calipers and similar parts once we find a brand that works well it is very hard for anyone to get us to try another brand. If you want to know what brands we use for any kind of part send me an email.

 

[Tom]

Adam, I suspect you have multiple issues going on here. I have theories, but I will avoid guessing. I would suggest you get either a management coach and/or join a 20 Group if you want to cut to the chase and fix things. These folks understand the things you are asking about and can help you through them.

There are many choices in the directories on this site: https://www.automotivemanagementnetwork.com/tools/shop-owner-resource-directory/

[Tom]

What a mess!

[Tom]

Add full belt labor? No

Add .1 (and maybe in some cases a bit more)? Yes

I think the tech has a reasonable point.

HTH

[Tom]

Welcome to the party! 😉

I have not done what you are doing, however I started in service stations and eventually moved to repair only. Generally, people like yourself do well because they treat it like a serious business as is evidenced by you asking about numbers right up front.

Taking only the details you mention is sounds pretty good at first glance – assuming that you can verify those numbers. As with anything you will find there are more moving parts that you probably expect. There are plenty of simpler businesses you could get into.

I know of one gentleman who did something like you describe. I will see if I can get him to comment.

[Tom]

Your great uncle Jack used to sneak a smoke out back every hour or so – this was back in the 70’s 😉

[Tom]

So, just to clarify…

Payroll total percent of sales INCLUDING owner salary should not exceed _____% ?

Payroll total percent of sales WITHOUT owner salary should not exceed _____% ?

Thanks!

[Tom]

Complete the projection attached and post it back here.

[Tom]

Shooting from the hip…

You will need to do better than 50% productivity. Conservatively you could go with 75-80% with 1 or 2 less techs.

Figure your effective labor rate at 80-90% of your average billed rate. So, for $120 billed, figure you will collect $96 – $108.

The rest looks realistic. A lot has to do with demographics.

Consider one of the management trainers or 20 groups in the directory on the left side of the home page. Normally money well spent.

There is a lot of info on key numbers including those you mention in the Premium areas on this site. Three months access for $39.

[Tom]

We winterize the plumbing system for $79 including the pink stuff. We do not offer the other things you mention. Might be a good idea.

RV mechanical service is an area many shops overlook. We are gradually doing more of it when we can figure out how to do it efficiently and profitably.

Demand outweighs supply in many areas, so price competitiveness is not as critical.