[Tom]

Steve, most shops have management software which handles everything from inventory to marketing to parts ordering to invoicing, etc. etc. 

The same shops often have QB or some other accounting software – which they use for – accounting.

A few shops have it all in one, but that is not very common.

Much of the management software integrates with QB.

If the only software a shop has is QB for everything the shop spends huge amounts of time doing things that shop management software will handle in very little time or none because of the automation. 

[Tom]

Those are percentages of total sales. 

If grand total of all sales (parts, labor, tires, sublet) at a shop is $100,000 for the month, parts purchases should be roughly $20,000

The number you are referring to would be parts only GP%

For most independent shops that should be 50-60% in order to comfortably pay the bills and turn a reasonable profit.

If part cost is $60.00, it should sell for $120.00 to $150.00 on average, sometimes more, sometimes less.

*Your mileage may vary, tax and title extra, see dealer for details, etc. etc. 😉

[Tom]

Here are the super simplified numbers guidelines:

Total cost of all parts 20% (percent of total sales of all types not including sales tax)

Total cost of all payroll 25%

Total expenses (everything except the first two above) 30%

That leaves you with 25%

Plus or minus 2-3% for each number. 

Before you get into a lot of other numbers, work with these first to see where you are.

[Tom]

Zebra for quite a long time.

8-9

[Tom]

In house except for the annual stuff that is better suited to an accountant.

We created our own “monthly statement for idiots” that makes more sense to me than any accounting statement I’ve ever seen. 

I’d be curious to know what others do.

[Tom]

Auto Enginuity       9

Master Tech          7

Ross Tech             8

SnapOn MT2500   6

Tech2                    8

Tech1                    8

[Tom]

QB is fine for what it is designed for. It is not even remotely designed for shop management. Think of using a paperclip instead of a scanner for reading codes. Or using a 4 way lug wrench and bottle jack to rotate tires. It can be done, but efficient it is not. 

There are roughly 125 offerings for management software out there. Fifty of the more well known ones are listed on this site here:

Shop management software links

With that many choices, there is something that would be a good fit for pretty much any shop. 

[Tom]

From what I have seen the fix for that the vast majority of the time is that someone has to leave. 

[Tom]

How about these as goals for software providers?

Lots of features

User friendly

Easy to learn

[Tom]

We target them the same way we target other models. Nothing turned away so far. 

[Tom]

Way back we had a very expensive Merlin system – worth the price, though. But it got too old. 

We now have a very inexpensive ATT system including 4 cordless. Good value for the money. The sound could be better, the phones could work a bit easier. But its not bad enough to make me put up big money and put it ahead of other things on the want list.

[Tom]

How are you differentiating between vacation, paid time off and/or sick days?

Which holidays would you add or delete?

What options are you considering with uniforms?

How would the performance based health benefits work?

Just trying to get a better handle on what you are thinking.

[Tom]

Many families can more easily give up a car for a day or more during the holidays than any other time of the year.

[Tom]

Gary, we had a chance to demo an Autel yesterday. How is the ATEQ different? What else does it do, etc.?

Thanks,

Tom

[Tom]

Joe – it has been that way for a very long time. One of their main sources of income is job postings in larger markets…like yours 🙂

RL – your results are fairly normal from all that I have heard recently. 

[Tom]

I know there are quite a few shop that use QB for their management system. For a few it may make sense, but I suspect that most do not realize what an auto service specific system can do today. Parts integration, service info integration, etc. 

[Tom]

I understand the point regarding alcohol, however when it comes to how the brain is affected the two are not even close. I’ve had plenty of employees who drink alcohol after work or on weekends who function fine at work. OTOH anyone who has a pothead working for them is all too familiar with the blank stares and the “huh?” answer way too often. Employers who have decided that dopers are OK employees will be sorry sooner or later.

Web MD covers it well.

http://www.webmd.com/news/breaking-news/marijuana-on-main-street/marijuana-vs-alcohol

[Tom]

Same time – Noon to 1:00 PM

[Tom]

This varies a lot from state to state. In general, as I understand it, the best thing to do is to “rent” the cars to the customers – whether you charge for it is up to you. So you have a regular rental agreement just like at the airport. 

Also, find out what shops in your area have “loaner” cars and ask them who their insurance company is, then contact them for more information. 

Loaner cars are becoming more important all the time. There is likely a way to do it right pretty much anywhere – although it may not be cheap and simple. 

Anyone need any snow…we have extra.

[Tom]

My understanding (which may well be incorrect) is that blue box parts are only available from a Ford dealer while red box are available at a dealer and in the aftermarket where the Motorcraft line is sold. I thought that a part came either red or blue, but never both. 

We used to use more Motorcraft, however in recent years their pricing has become non-competitive. 

[Tom]

Easy to overlook much of that. 

Another reason to get them in and out fixed right ASAP – even if you have to eat some of it.

[Tom]

A lot of shops use some kind of headhunter site like ACT Staffing. 

A lot of shops also run constant ads on Craigslist.

[Tom]

It sounds great on the surface. And it may work great long term – in San Diego – when it’s not raining – and not too windy – and you can secure a spot in the shade. 

But, in the rust belt you might have 100 days where the weather is reasonably decent for working on cars outside, probably less. Then there is Dallas or Miami or NOLA when it’s triple digits and sunny with no shade available.

Murphy’s Law says that the tools, parts and other resources needed are not quite as available as one might hope when out on the road, regardless of how big your truck is. A lift is a real handy thing, too. Especially for things like wheel alignments. 

Can it be done thoroughly? Yes – by a very determined, extremely resourceful individual, those who make up less than 5% of the people in our industry. I’m with the 95% – I like it warm and dry inside when outside it is cold and wet. 

Overall, if the weather is nice and the services are simple and straightforward, it may be a possible supplement for some service departments. A more likely route for most shops is to create an exceptional customer area where people are very comfortable for hours at a time if need be. Add to that alternate transportation options for those who need to get somewhere and the vast majority of customers are happy.

Great question worth discussing, Ken!

[Tom]

Allan, the method depends on the management software, however vehicle specific jobs can be saved in almost all software. Some are designed to do it very quickly and others you have to be a bit creative. Call or email me if you want to get into more detail.

[Tom]

John:

When you show a shop owner how much he can make from doing this, I think quite a few may sign on. Some retailers net more profit from their private credit card than their product or service.

When you are going to present just about anything to an independent shop owner, it is going to require a fair amount of explaining.

Regarding administrative and support – I have no idea.

It should appeal to just about any shop if properly explained. If a consumer has a “John’s Auto Repair” credit card in his/her wallet, the natural inclination is to go there first. 

[Tom]

Wow. I’m really impressed. On to WWYD…

How much? A percent of all of his sales on the card, maybe 1.0, 0.5, 0.25?

Or a five figure amount. Or both. Need a lot more detail to get more specific.

I like the idea in general. In the long run I suspect you would bank more than keeping it to yourself.

I don’t see it being a big competitive factor. The card is one piece of the big puzzle that attracts customers to you. Plus, you are way ahead of anyone who starts to offer it now. I suspect the hit to your sales would be negligible.

I hope something in my reply helps in some way. Thanks for sharing an outside the normal idea just to show us that we can use our imagination to try new things.

[Tom]

Rob:

I understand your POV, however if a buzzed tech left a wheel loose and a customer subsequently died as a result, “People are not perfect.” may not quite cut it. 

FWIW, I lean towards the legalization of pretty much all drugs as the war on drugs is an abject failure. But, anyone who partakes has no business ever working with power tools, vehicles or heavy equipment. If they want to get high, let them do some menial tasks where they can’t hurt others. 

[Tom]

This type of thing – lifetime mufflers, lifetime batteries, lifetime blinker fluid – used to concern me more than it does today. The biggest point of something like this is to fire up the service advisers at the local Ford dealer. Most customers probably yawn. 

If a customer does ask about an offer like that we will be happy to match it. I see it as just one more special or coupon, not unlike all of the others out there.

[Tom]

It’s been a number of years since we had gas, but they were always different and cashiers were a lot less. My guess is that so much cheating went on that the insurance company set a new policy to address it. 

Have you asked the agent if you can provide additional documentation or sign a statement or something else to get the underwriters to reconsider? If not, I would go insurance shopping. I doubt that all companies to this.

[Tom]

The first time a job is performed, normally the SA looks it up (both were techs). We encourage the techs to do so, but old habits are hard to break (let SA do it). Once done if the time is way off the labor is adjusted when the job is saved (almost all jobs are saved, vehicle specific). Next time there is no time look up – the tech or SA just grab the saved job.