This week, Hunt sits down for an insightful Chat with Joelle Pollak to talk about how Promotive is tackling staffing shortages in the automotive aftermarket, offering innovative solutions for shop owners.Įxpert Take on Recruitment Challenges: Dive into the complexities of hiring, focusing on the crucial balance of pay, benefits, and shop culture in attracting and retaining top talent. Visit us Online: Email Hunt: Ĭlick to go to the Podcast on Remarkable Results Radio If you need qualified technicians and service advisors and want to offload the heavy lifting, visit Paar Melis and Associates – Accountants Specializing in Automotive Repair Promotive has over 40 years of recruiting and automotive experience. Introducing Promotive, a full-service staffing solution for your shop. Great news, you don’t have to go it alone. It’s time to hire a superstar for your business what a grind you have in front of you. Let us prove to you that Tracs is the single best shop management system in the business. After all, it's your shop, so it's your choice. It all starts when a local representative meets with you to learn about your business and how you run it. Thanks to our partners, NAPA TRACS and Promotiveĭid you know that NAPA TRACS has onsite training plus six days a week support? ![]() Consider all the factors above when looking for ways to improve your shop’s labor production. While it does start with the technician, it doesn’t end there. The bottom line is this many factors need to be considered when looking to increase production levels. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership. Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. The amount of lost labor hours here can cripple a shop’s overall profit. This results in less billed labor hours than the actual labor time spent. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. ![]() These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. ![]() Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.Īnother common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. Labor for extensive jobs is often not being billed accurately. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.īut let’s go deeper into what affects production in the typical auto repair shop. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.Īs a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. While technicians must know what is expected of them, they have a limited amount of control over production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. Auto shop owners are always looking for ways to improve production levels.
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