THA 187 Labor Rates: A Function of the Business Not the Market
Labor Rates is a very touchy subject for some shop owners. It is the sacred measure that customers rate you on. If you believe that this episode is for you.
We are covering multiple labor rates, an approach to calculating your rates, and what the future holds as far as the importance that labor rates ill be to your business if not most critical already today.
If you are struggling to make money there are many areas you need to pay attention to, and most importantly your labor rate. Is your rate based on the market or on the function of your business.
The panel: Bob Greenwood, AMAM, President and of the Automotive Aftermarket E-Learning Center, Business coach, and as I like to say one of the best numbers guys in the industry. Also Business coach Brian Gillis the Cheif Strategist at You Net-Results and joining us halfway through is shop owner Bill Nalu from Interstate Auto Care in Madison Heights, MIListen and view episode notes
https://youtu.be/fi3oBrNmE9Q Andy Bizub from Midwest Performance Cars in Chicago is also a native of Chicago. His first career was 25 years as a commodity trader. He entered the professional auto industry in 2014 by acquiring a failing shop in downtown Chicago that he was a customer of and started a turnaround. Andy now has two locations.…Listen and view episode notes
Panel: Rachael Wacha, City Auto Repair, Gainsville, FL Kate Jonasee, K-Tech, Sebastopol, CA (MSO) Donnie Hudson, Troy Auto Care, Troy, MI (MSO) Jeremy Winters, Service Manager at Weavers Auto Center, Shawnee, KS Talking Points: Kate’s big thing was the improvement in her company culture and the psychology of herself as a leader was impactful.…Listen and view episode notes
John Burkhauser is currently employed at BOLT ON TECHNOLOGY as the Director of Education, a job that allows him to use a lifetime of learning experience day in and day out. John dreamed of being a meteorologist but found out college wasn’t for him. When his car failed the state inspection, that was the day his…Listen and view episode notes
The Panel: Devin Kelly, All-Star Automotive, Columbia, MODevin Kelley is a passionate entrepreneur with a technician background. As a shop owner, he is responsible for general leadership within his company. This puts him at the front-line of the fight for a more professional auto repair presence in his community and helps maintain his companies…Listen and view episode notes
David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE. Cecil Bullard is President of the Institute for…Listen and view episode notes
THA 149Top Financial Challenges to Overcome- An Owners Perspective
We’re serving up a strong discussion on Financial Challenges with me are shop owners John Long, Schertz Automotive, Schertz, TX, Tom Ham, Auto Centric, Grand Rapids, MI and Andy Massoll, Detroit Garage, Farmington, MI
You may not be surprised as to the big take-a-way from this episode. It is only logical and will have a huge impact on your business immediately. The panel agrees that your family needs to be on board with any financial decision you make in the business. You’ll get advice on what to do if you get into financial trouble, also the power of sharing your financial status with your team and if you are in financial trouble, you are not alone.Listen and view episode notes
RR 491: Warren Parr – Diagnostic & Intensive Labor Rates – Why and How I Did It
Warren is bringing a practical view of calculating your diagnostic labor rate. He is completely changing his earnings/profit structure by having a diag labor rate that is based on his real need to make the correct gross margin because diag time rarely sells parts.
He also explains his ‘intensive labor’ rate as it relates to big-ticket items. Warren Parr was on a while back talking to you about his PICO Scope Club that was RR episode 485.
I did an episode with Vin Waterhouse on this very subject. It was episode 471. It is one thing to have a lesson from a coach, but another to hear from a shop owner who has put this teaching into practical use.Listen and view episode notes
RR 471: Vin Waterhouse on Intensive Labor Rates and Financial Benchmarks
Are you aware that you are selling fewer parts? Do you understand that the hours of diagnostic work you do does not reflect the typical parts sales per hour that your financial business model has generated in the past?
So what you say. Ouch! The wrong attitude. You are bleeding to death and the math exists to prove it. You must pay attention to having an intensive or recovery labor rate. In this episode with legacy aftermarket coach and trainer, Vin Waterhouse, we get into the power and value of benchmarks and how to calculate a recovery labor rate.
If you are not happy with your net operating income (your bottom line) vs the hard work and time you spend at your business, then Vin may just help you formulate some next very important moves you need to make, so your financial strength improves.
Vin Waterhouse is President and Founder of The Waterhouse Group, an automotive Accounting, Training, and Coaching.Listen and view episode notes
Jill Trotta Best and Worst Metro Cities for Car Repair Survey
My guest is Jill Trotta. She is the Vice President for Industry Advocacy and Sales at RepairPal. We talked about the surveys that pointed out which metro cities are best for car repair. This is based on factors like average repair order, road quality, average labor rate among others.
The survey talked about the statistics and information about car repair. You will learn the best and the worst cities for repairs according to the survey. The survey also pointed out which cities are most affected by the technician shortage.Listen and view episode notes
You should have the highest payroll in town, not the lowest.
A generation ago the shop owner didn’t need to know the numbers. How the world has changed and in this episode with Vin Waterhouse, as with all my discussions with business consultants and coaches, will push you to make the important changes that will catapult you from having a hobby or job into a career that rewards you for your hard work
Vincent Waterhouse, President and Founder of The Waterhouse Group, an automotive Accounting, Training, and Coaching company shares his strategy for business climate based on today’s changing business models.
Vin has over thirty years of experience in the automotive aftermarket. His specialty is working with auto repair shop owners to help them earn the profits they deserve.Listen and view episode notes
New Aftermarket Measurement – Cost Per Billed Hour
I’m with Bob Greenwood, President, and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. We are discussing how cost per billed hour affects the site’s total efficiency in maximizing net profits.
This episode tackles measuring your site’s efficiency with cost per billed hour as a new aftermarket measurement to maximize your net profits. The calculation reflects on all aspects of your labor rate, workflow, charging for diag time, and other critical performance metrics.
Important note for this episode. Since Bob is demonstrating his strategy and findings through formulas we decided to record the video of this episode so you can see how Bob arrives at the conclusion to his formulas. You can find the video version on the show notes page at remarkableresultsradio.com/e424 or on my Carm Capriotto youtube channel.Listen and view episode notes
Charging What We Are Worth
We talk professional courtesy, labor rates, training, having the right value proposition for your customer so you can charge accordingly, the labor rate spread in our communities, and why you shouldn’t be afraid to charge what you are worth. You’ve invested a lot in your business and need to be paid for this. Listen to why confidence in your skills and abilities will help you charge accordingly.
With me on this Academy panel is Tom Palermo, Preferred Automotive Specialties, Philadelphia, PA and former NAPA ASE Technician of the year in 2015, David Justice, President Repair Shop Of Tomorrow, Asset Management Technology and Mark Colaw, Seymours’ Garage, San Antonio, TX and founder of Carfest.Listen and view episode notes
David Justice – You Must Manage Your Labor Profit Before Anything Else
When David Justice sold his $5M business he was already speaking and coaching in partnership with NAPA. To help run his business David created the Labor Profit Management tool to keep a tight and smart handle on his labor and he was traveling the country and speaking to service professionals on the power of managing your labor.
Post sale he started Repair Shops of Tomorrow which not only incorporates the Labor Profit Management tools along with a focus on marketing programs.
David decided he needed to give back and is working hard to help shop owners achieve exceptional success. We talk about his three-legged stool, rewards, networking, and so much more.Listen and view episode notes
Find out what does J Gerry Truglia thinks about Training, Standards and Labor Rates.Listen and view episode notes
Your Turning Point: The pivot that improved your business.
Have you ever thought about a big event that you could call a life pivot? A circumstance that made a change in your life or your business? Many of us can claim distinction to some monumental occurrence that could be classified as an important pivot point. This Academy is all about those pivots.
Kim Auernheimer partner with husband Rob in CS Automotive, Brentwood, TN, Patrick McHugh, shop owner, Bimmer Rescue, Richmond, VA, Alan Symmes, shop owner, Revolution Automotive Services, Norwood, MA and Cecil Bullard, CEO, The Institute for Automotive Business join in the discussion.
Listen to real examples of important pivot points from these shop owners. Hear how pivot points arrive when you put your family priorities in play. Pivots show up when you start to run your business as a business. You will have tough days so you need to have great mentors and a strong network and a business coach to support your progress.Listen and view episode notes
Shop Of The Future. A Business Coaches Perspective.
Bill Haas from Haas Performance Consulting and Bob Greenwood President and CEO of Automotive Aftermarket E-Learning Centre bring their viewpoints on the future of the service professional.
Bill and Bob talk about training, culture, the dealership factor, pricing transparency, and the importance of daytime training. They also share their viewpoint on competing, hiring and retaining top talent, both technicians and service advisors.Listen and view episode notes
How To Sell Diagnostics at a Profit?
This is not an easy question to answer. Service professionals must be paid for their expertise because the cost of doing diagnostics is the most expensive service you have in your building.
It is time to move from diagnostics to testing and analyzing. Every shop needs to build a premium product around testing and analyzing. You need to be known as the ‘we can fix anything right the first time shop’. Your motto: “We have the best technicians.” Your shops testing and analyzing skills is the premium product you sell and are known for in your marketplace. No need to go anywhere else. We do the research, test, analyze and discover what is wrong. We present the solution then you decide.
Marketing this premium product requires a strong testing/analyzing process that both the service advisor and technician are totally in agreement with. The benefits allow the SA to confidently sell testing and analyzing.
The diagnostician knows that the SA will sell the value and benefits to the customer because the process dictates the work to be done. A very strong discussion and powerful take-a-ways that will arrest the black hole in your business of profitable diagnostic time.Listen and view episode notes
Let’s Do Some Math on the Foundations of a Million Dollar a Year Shop.
As a 36 years industry veteran and he’s been a business coach for the last 17 Scott Wheeler holds numerous ASE credentials and we jump into some extremely important topics of discussion that will have you engaged and shaking your head slowly up and down as you will relate to many of our key talking points.
Don’t shy away from the financial discussion. These are some of the most critical topics for a successful business. Life is a big math problem and we do some of it here.
From the tech shortage to learning leadership qualities and the extreme importance of good financial statements Scott Wheeler covers a broad range of important aftermarket subjects.Listen and view episode notes
Multiple Labor Rates Can Make A Shop Competitive Depending On Jobs. It Is Easy To Set Up Parts Matrixes On Your SMS.
A big fear in our industry is we fear someone questioning our price. We need to be proud of why and what we do. We must understand the value we do for our customer.
Understanding how parts matrix’s work in your SMS and understanding the strategy behind it will improve your parts margins overnight. Also, parts pricing transparency in the industry may change parts margins in the future.
Become the CEO of your company and you’ll start to see the differences in your sales, costs and profits when you pay attention to what the CEO must do for the company.Listen and view episode notes
Is Your Labor Rate Keeping Up with Inflation and Your Cost Doing Business?
A tough subject to discuss, however many great ideas shared on the mechanics of setting a labor rate, but most importantly being valued and getting paid for all that you know and do for your customer.
The correct labor is a big factor in profitability among other critical measures in a service business. Learn from the discussion.Listen and view episode notes