Raising labor rates is not just about increasing prices. It’s about finding more value in the industry and positioning ourselves as professionals.
Join our panel as they highlight the need for understanding the concept of effective labor rate, ensuring services are charged appropriately, viewing the business as a professional entity, providing a positive customer experience and addressing core business problems before raising labor rates. Our panelists encourage shop owners to take a comprehensive approach to their business strategy, considering all factors and not just focusing on raising labor rates.
Part 2 of our labor rate discussion in the automotive aftermarket industry. Our panel emphasizes the importance of setting labor rates based on the shop’s own expenses and profitability, rather than comparing them to competitors. They also stress the need for regular labor rate increases and educating staff about the financial aspects of running a shop. They address fear and mindset issues that can affect labor rates and overall success. The episode provides valuable insights and advice for shop owners in effectively setting and managing their labor rates.
Dan Taylor and Reggie Stewart to discuss the art of dispatch in the automotive repair industry. They emphasize the importance of efficiently dispatching and scheduling jobs, using the team’s strengths and weaknesses, the need for accountability, daily tracking of labor inventory to ensure goals are met, and the challenge of accommodating walk-in customers while maintaining productivity. They stress that dispatching is crucial to the business’s success and suggest creating a simulator or role-playing exercise to teach dispatching effectively.
Recorded Live at the TST Big Event 2023 with Andrew and Peter Knudsen, father and son duo of Coventry Motors in Huntington Station, Long Island. They discuss their background in the car industry, their decision to start their own business, the types of cars they work on, and their succession plan. They also discuss the challenges of running a small business, including labor rates and finding new talent. The conversation provides insights into the rewards and challenges of running a successful auto repair business and the importance of continuous learning and adapting to changes in the industry.
On Record with Tom Ham from the Automotive Management Network. Tom discusses a recent survey from his website about the stress level at work, reasons why someone would reject a technician application, health insurance and more! These results may surprise you!
Recorded Live at the Transformers Summit with Aftermarket Radio Network host, Hunt Demarest, CPA at Paar Mellis and Associates and host of the Business by the Numbers Podcast. Hunt’s firm specializes in automotive repair clients and he gives us an inside scoop on common new client questions and concerns as well as some behind the scenes about his podcast!
Tom Ham from the Automotive Management Network has just released a Labor Rate Tracker for the entire country. It is a free database of labor rates for all auto repair shops. Find why this is important for the industry.
Take a deeper dive into alignments, the numbers being it, and the ROI. Multi-shop owner Joe Hanson has invested in the Hunter Quick Check Touchless Alignment equipment for his one shop, Tom Sciortino brings statistics on the effect alignments have on ADAS, and Jim Fleischman discusses the importance of asking your customers about their driving habits.
Guest Host and Shop Tour with Demeny Pollitt, Girlington Garage, South Burlington, VT. Demeny believes in a transparent business and lists her labor rates and menu prices on her website.
Unless you’ve been living under a rock, the technician shortage is the hottest topic and challenge in our industry. My guest Cecil Bullard from The Institute, has a plan to solve the technician shortage. It involves a $20 increase in your labor rate and how that money gets distributed. Sounds too good to be true? Good!
In today’s episode, my panel discusses hitting rock bottom and being able to climb out. How do you financially recover from being in debt? How do you get through divorce when your business is failing? Why aren’t more owners looking at themselves in the mirror and realizing they are the problem and the solution? Keep listening to find out.
Are you doing flat rate, salary, or a hybrid model? What are the pros and cons of all three? My panel brings light to this hot topic from different perspectives. The consensus from the group is there is no cookie-cutter model on pay plans you must factor in your culture and your team.
What do you do when a disgruntled customer wants to know why your shop is more expensive than the one down the road? Are you educating customers on the value of your services? Do you feel like you have to defend your profitable business model? Does the shop down the road, which has the crazy low price, realize their business won’t be worth it’s value when it’s time to sell?
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How much do you value your time? Your employee’s time? Are you making your decision on your labor rate based on data? My expert panel breaks down a mathematical and strategic way to understand the labor rate that delivers your profit goal. To view the charts and presentations my guests have prepared, make sure you head to my carm capriotto youtube channel or find the link on the show notes. Once you see the math your decision to set a profitable labor rate will be smarter and easier.
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We’ve all heard inflation is up 8%, as of this broadcast, but when you walk through the grocery stores and sit at a restaurant, it sure seems like it’s a lot higher … don’t you agree? As prices continue to jump, what are we doing as an industry to adjust? And why are so many shop owners worried to raise their labor rates? My panel includes 2 shop owners and an auto shop bookkeeper with a wide-open discussion about labor rates, parts pricing, and even employee retention in the age of rampant inflation.
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Asking for help and admitting you need help is often the last thing struggling business owners want to do. They also might not know who or how to ask. My panel of coaches has experience in the shop business and has a huge tenure as successful aftermarket business coaches. They’ve seen a lot and have helped many find unrivaled business success and a path to financial freedom.
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Start Monday Positive and Celebrate Friday [RR 711]
Get an inside look at Andy Bizub’s team culture in his Chicago business, including an emotional story about an accident his top technician suffered and how everyone rallied around him. Andy is passionate about pricing and what it takes to run a successful business and paying his employees accordingly. We also had a refreshing talk about Zero Gravity.
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Why Can’t Every Shop Owner Be Profitable? [RR 682]
Too many business owners are silently struggling and think they are the only ones. Or maybe they do want to elevate their business to the next level but have been stuck in the day to day…that leads to month to month and then year over year struggle. Before you know it, the only thing progressing forward is time. And the only constant is change. In this episode Scott Wheeler highlights the key foundations needed for a successful automotive business. He also references his book “How to Make Money (& Stay Sane) in the Automotive Service Industry” which reads like a blueprint for your business, full of charts, graphs and formulas.
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Advancing the Aftermarket.
Of late there has been a lot of dialogue around my circles about being paid for the value you give and bring to your customer. I recently saw a survey of shops whose sales averaged $750,000 yet their net operating profit was only 2%. That is only a $15,000 average net operating income before tax. This troubling stat begs the question: How do you continue to invest in the business and even provide a living wage for you and your team at that level of profit? remarkableresults.biz/b010Listen and view episode notes
Trends – Aftermarket Round Table [THA 239]
The passion my panel has for this industry is hard to miss in this episode. They touch base on topics including labor rates, the professionalism of the industry and the importance of DVI’s to just name a few. We are only scratching the surface of these issues and concerns but it’s what is needed to spark a real change.
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Guest host, Chris Chesney, Sr. Director Customer Training, Carquest Technical Institute and Virtual Shop Tour with Judi Haglin, Haglin Motors. Denver, CO. Check out the Trivia Challenge: What Brand on April 29, 2004 Closed its Doors? It was the Oldest Automaker.Listen and view episode notes
Guest Host Clint Dudley from Shade Tree Auto, Grimes, IA talks about technician pay plans. Check out the Virtual Shop Tour by Pete McNeil from McNeil’s Auto Care, Sandy and Riverton, UT and take the Trivia ChallengeListen and view episode notes
Guest Host Dwyane Myers talks about technician career paths. Check out the Virtual Shop Tour by Jonathan Ortiz from Foreign Affairs, Palm Beach, FL and take the Trivia Challenge.Listen and view episode notes
Guest Host Tom Ham and Carm celebrate the one-year anniversary of the start of Aftermarket Weekly. Tom also talks about rising prices and keeping your labor rate in tune with rising costs. The virtual Shop Tour by Eric Henley from H-Teck Auto Care in Gray, TN The Trivia Challenge: What Vehicle Won the MotorTrend SUV of the Year award for 2020?Listen and view episode notes
THA 212 Charging What We Are Worth
We are talking about charging what we truly are worth. Yes this topic dives into your reluctance to charge enough so you can sustain a real profitable business. Breaking even is just a hobby. Many don’t feel that they can actually make a real living serving their customer … repairing cars.
This episode exposes the elephant in the room. Emotion is a big driver in your worth and what you charge. Do you truly know the value of your business and your overall cost of doing business? If you did, you would not be working for Free.
Our panel nails this episode in all the proper places. With me is Carlo Sabucco, 2nd generation owner of Sil’s Complete Auto Care Centre, Maylan Newton, business coach from ESI – Educational Seminars Institute, and Glenn Larson, from Foothill Autoservice, Lake Forest, CA
This episode’s key talking points are already done for you. Find them at remarkableresults.biz/a212Listen and view episode notes