Why Can’t Every Shop Owner Be Profitable? [RR 682]
Scott Wheeler, President of Automotive Consultants Group, Inc. (ACGI) is a shop management expert in the transportation industry, with over forty years’ experience in the automotive, trucking, heavy-equipment, marine, motor sports, and defense aerospace industries. He holds numerous ASE credentials, including two Master’s Certifications, and has experience working in every position from Tech, Fixed Operations Director, and Mechanical Engineer. Scott has authored five books for the automotive industry and continues to write, consult, and speak professionally at major industry events throughout the U.S. and Canada. He has been a regular featured consultant/contributor to Ratchet+Wrench Magazine, Auto Inc., and Canadian Tire magazine with articles relating to topics such as technician compensation programs, understanding production capacity, and how to maintain passion for your automotive repair business, among others. ACGI continues to consult and mentor clients throughout North America.
Listen to Scott’s previous episodes HERE
Key Talking Points
- “How to Make Money (& Stay Sane) in the Automotive Service Industry”- Chronicles “Bob” a fictitious character. Effective labor rate, marketing and advertising in 21st century. Charts and graphs included. Policies, procedures, job descriptions.
- What are your goals? Why are you in the industry? “What’s in it for me?”
- Are you willing to listen? Try new things? Change?
- Change triangle- the center is change, outside points are commitment, plan and action.
- “Why when how to” with financials
- “All business is, is a math problem”- understanding the numbers, understanding benchmark (labor gross profit margin, parts margin etc)
- Ego factor- what is your break-even point is? Do you rate how well your month went by how much money is in your checking account?
- Holding someone accountable- clear set goals and expectations
- CPA using Quickbooks- Quickbooks isn’t geared towards automotive
- Make sure you set your shop management software to your set gross profit matrix for parts and labor
- Production incentive for technicians and service advisors- it should be easy to calculate. Is it based on working 40 hours or meeting/beating time guide? Consider individual compensation plans. Find one that motivates your employees.
- Raising effective labor rate
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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever.
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