David
Forum Replies Created
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We are a specialty shop working on 5 brands (Japanese). I look at working on older vehicles as a type of marketing. Most customers with older vehicles are more than willing to pay what we ask, give us plenty of time and appreciate our willingness to work on their vehicles. Parts can be a problem and the techs are not always excited but remember this: This customer and/or family and friends may have an entire fleet of newer vehicles to service. Take care of the older baby and the referrals come streaming in.
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We give estimates over the phone probably 80% of the time. We are a specialty shop only servicing 3-4 brands so that makes things easier. We have lots of similar repairs on same models, giving an estimate is fairly easy. The point I want to make is that we have heard from countless customers that are shopping around that they chose us because we would answer their questions about price. Their level of frustration with shops that wouldn’t even give them a basic starting price led them to continue calling until someone would. Other shops worry about giving a price and having to change it when the customers actually have their car diagnosed but if the expectations are managed ahead of time, the element of surprise is much less than anticipated. I realize all-brand shops have a harder time but if you have replaced intake manifold gaskets recently on a Chevy pickup, then what’s the problem giving them a basic price that you can modify as necessary?
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I was involved with a 20 group in the past and they always warned that the DOL (state or federal) could challenge how flat rate is computed. In the past, as long as any employee calculated to more that minimum wage, there wouldn’t be any trouble. My opinion is that if you simply calculate your tech’s flat rate pay dollars and make sure the clock hour pay rate is equivalent including overtime that there shouldn’t be any questions as you are not “shorting” any employee. All of our hourly employees have always received overtime pay. We have all our techs punch a clock for in/out daily. (We also do time tracking for productivity/efficiency) so all time is already documented. Most shops should consider the basic in/out time clock to verify attendance and overall time available to work. My 2 cents.
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21st year in business. Been through the trials of uncooperative employees. Your life will be easier when you make it clear to all employees that the rules apply to everyone. Uniforms and appearance are a JOB REQUIREMENT. I agree with previous commenters, set the policy (written down) hold everyone accountable. Be on the hunt for another tech and be prepared to move on. Everytime he refuses to abide by what the boss says, he undermines you in the eyes of all the other staff. We have a loose cell phone attitude. When someone is abusing the cell phone time, I pull them aside and have a little chat. It rarely takes more than 1 or 2 to get the message across. Congrats on the growth and take the reins and steer the herd where you want it to go.
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Interesting that we in the independent shop world tell our customers we’re as good or better than the dealers but sell our services @ a discount every day. We cracked the $100 barrier about 18 months ago and didn’t hear a peep from our customers and I’m considering another $3.23 bump and will give my techs another $1.00 to keep the margins consistent. Do a competitive price shop, not about labor rate but instead common jobs. If you are in the ball park (5-10% on an average ticket) most customers who see the value you offer won’t leave you over $10-20 per ro. The bottom feeder customers will leave the 1st time you aren’t the cheapest anyhow, so charge what you need and stay profitable.
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Autoshop Solutions 9 (Built and maintain my website and adwords)
Customer Link (now Demandforce) 9 Used them for 15+ years -
There are plenty of personality tests for free or a small fee and directions to analyze the results. These can be given @ some point during the interview process. Also, very important to take a hard look and try to identify the “culture” of your shop. Many owners, including myself have seen their shop through only their eyes. Perhaps exit interviews, trusted clients ect can help you determine this culture and look for traits in the next employee that fall into step with that.
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What is your goal for average hours produced per tech per week at your shop?
_____ Less than 30
_____ 30
_____ 35
_____ 40
X __ 45
_____ 50
_____ More than 50
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Used them for a year or so..the $299 investment is worth every penny, works flawlessly for us, lots of surveys and reviews, great communication tool.
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Administrator wrote:
> Rate your management software on how easy it is to both use and learn on a scale from 1 to 10.
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> #_8____ Use (1 means very difficult, 10 means very easy)
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> #_8____ Learn (1 means very difficult, 10 means very easy)
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> What software do you have? _Winworks: Could train new advisor in 2 days to be 80% efficient on it.
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> If there is other management software that you have used in the past or thoroughly test driven, you are welcome to rate those also.
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I realize I am in the minority here and I also run a specialty 2 brand shop, so my business model is a bit different, but I readily quote prices over the phone on routine services and have had great success with establishing a relationship with a potential customer by answering some of their price questions. I have gotten many jobs that the customer even told us “You’re not the cheapest, but you’re the only ones who would even talk to me about price” Think about what the customer wants: Information to make a decision. With the level of expertise most shops have out there, making an estimate (which is just that) vs not being willing to say anything may make the difference between getting the job or not. Transmissions…different ballgame, but even to quote a range and educate the customer about what decisions they will have to make is a smart move.
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What kind of management software do you use? Autoshop by Winworks
Can do either. Single total per labor item or itemized by parts price and included with individual job. When using preformatted final invoice, however, shows all labor items on one side, all parts on other side.
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n most cases for testing/diagnosis/inspection where more than a quick inspection is required, do you:
_x____ Charge for both repair and testing, retain the original testing charge, and show each charge on separate labor lines
Diagnosis charges remain on 90% of RO’s, sometimes reduced or rolled in depending upon type of work needed.
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I always ask a tech how much he wants to make per week, month, year. Then I work the math backwards to show them how to get there. I.E. He wants $60k. $60k/250 business days=$240 per day. Now I ask how many hours he flagged @ his last job (knowing most will fib high). Numbers don’t lie…$240 per day / 9 hours= $26.66 per hour. As long as he puts out 9 he will gross $60k. Who wants a $30/hour tech that flags 7 hours a day. When you work the numbers like this most will see how to get to the gross $$ he wants.
