Shop Management Tip # 125 of 390 Significant Incentive Pay – For Everyone! One thing that you will typically find in successful repair shops is a good incentive pay plan. Sales and gross profit-based plans for service advisors and parts staff, and production-based plans for techs. A decent blend of a basic base with significant incentive works nicely for many shops. Often, shops do have a blend, but in most cases, the base is too high, and the incentive is too low, which severely reduces the benefits of an incentive pay plan. Other shops have excellent success with 100% incentive pay. Generally, shops with little or no incentive pay have low production and, therefore, low profits. Spend some time creating a solid plan that is fair to you, your employees, and your customers. automotivemanagementnetwork.…

Shop Management Tip # 124 of 390 Don’t Get So Technical! It is often said that some of the worst people to have at your front counter are former or current technicians. Yes, it is helpful that they “know the product”, but too often they know it too well in the sense that they go into far more detail than most customers care to hear. When someone fixes your furnace at home, how interested are you in the detailed functions of a home HVAC system? A few of us are, but most of us just want to know that it will heat the house when we turn it on and how much we owe the furnace guy. Give customers the initial information in a brief summary and make it clear that you are more than happy to go into as much detail as they would like. We often do not realize that the customer on the other end of the phone is tapping their foot, trying to get back to whatever they were doing while we drone on about fuel trim. It’s just not all that exciting to most folks…really! automotivemanagementnetwork.…

Shop Management Tip # 123 of 390 You Send Oil Change Reminders To Who? Of course, you send them to customers who had you change their oil. But what about everyone else? Almost every car in your shop has an oil change sticker on it. Get the due date and mileage every time on every car. Then use that information in your software to make sure that they receive a reminder from your shop about when the next oil change is due. The point here is to do everything that you can to keep those cars out of any other auto service shop of any kind, especially the ones that tend to siphon off those simple and profitable services. automotivemanagementnetwork.…

MASSACHUSETTS TOP LABOR RATES $205/hr $190/hr $185/hr (25 more rates on the map) automotivemanagementnetwork.…

Shop Management Tip # 122 of 390 Can You Just Take A Quick Look At It? The reason that many shops say no is little more than a bad habit learned from people who worked in the past, where customer service was not as critical as it is today. All that this potential new customer (or maybe an existing good customer) usually wants is for you to show that you are interested in helping them. You do not have to diagnose and fix it on the spot. Just take a brief look and let them know what you suggest they do next. If the shop is full, take that quick look outside. Better yet, designate one bay for quick service so it can be made available in a few minutes when needed. You spend a lot of money and effort to get new customers. When they show up, make sure that you don’t send them to the shop up the street. automotivemanagementnetwork.…

Shop Management Tip # 121 of 390 New Car Dealers Eating Your Lunch? Most new car dealer service departments offer a variety of specials, which they change on a monthly or seasonal schedule. You should do the same. To get some ideas and to keep informed about what the dealers are offering, bookmark the service department specials page on their websites and schedule a time to check them each month. Odds are that significant research was performed to create those specials, which means that they are likely to get some decent results. Create your own version of the specials and promote them on your website and any other means that you use for marketing. automotivemanagementnetwork.…

MARYLAND TOP LABOR RATES $196/hr $185/hr $178/hr (33 more rates on the map) automotivemanagementnetwork.…

Shop Management Tip # 120 of 390 Easy Sales That Many Shops Miss While it’s been discussed to death, far too many shops still do far too little with the factory maintenance schedules, or they overcomplicate the process by editing them and reinventing the wheel. Make it simple. Just grab the exact factory-scheduled maintenance list that is due out of your software. Add the parts, and you are done. Do this the day before arrival for every car on your schedule. Mention it during the write-up or drop off. Many customers have been well trained to make sure that the factory maintenance is always kept up to date, and will quickly agree to have you add it to the RO. automotivemanagementnetwork.…

Highest Average Labor Rates: California $182 Connecticut $170 Virginia $155 Washington $155 Texas $154 automotivemanagementnetwork.…

Shop Management Tip # 119 of 390 No Time For Inspections With Waiters Problem: Customer is waiting for an oil change (or other quick service), and it takes too much time to do the inspection that you want performed on every car. Solution: Pare down that inspection to include only the most critical items. Sure, it’s a compromise, but it’s far better than skipping the inspection entirely due to time constraints. Remember, you want a solid policy to perform some type of inspection on virtually every car that you service. You will benefit, and your good customers will appreciate it. automotivemanagementnetwork.…

Shop Management Tip # 118 of 390 Does Your Parking Lot Make Any Sense? Is there any rhyme or reason to your parking lot? Every shop, regardless of size, should have a clearly drawn parking plan posted for all staff to see. It’s a rule of auto repair…you will attract more of whatever type of car is most visible to people driving by. Preferred cars out front, least desired out back, and the rest in the middle. Each car backed into its parking spot. Fresh striping (repainted at least once per year) makes it obvious where to park. Remember that what is obvious to you is not obvious to a first-time customer. This is one of those simple and low-cost marketing items that you can do, which can make a significant difference in the appearance of your shop automotivemanagementnetwork.…

LOUISIANA TOP LABOR RATES $188/hr $153/hr $140/hr (10 more rates on the map) automotivemanagementnetwork.…

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KENTUCKY TOP LABOR RATES $163/hr $134/hr $134/hr (10 more rates on the map) automotivemanagementnetwork.…

Shop Management Tip # 117 of 390 What Does Your Customer Area Look Like? Most shop owners underestimate the importance of their customer lounge or waiting area, and most shop waiting areas reflect that. In general, they tend to be dated, sparse, cluttered, and tacky. Drop by several of the local higher-end car dealers and check out their waiting areas. If you want to do business at that level, then duplicate what you see. For less than the cost of many scanners, you can have a first-class waiting area that will pay for itself. Also, if your waiting area has not been fully updated within the last five years, it is due. automotivemanagementnetwork.…

KANSAS TOP LABOR RATES $169/hr $160/hr $155/hr (14 more rates on the map) automotivemanagementnetwork.…

Shop Management Tip # 116 of 390 Yet Another Great Use Of Email Part of the morning routine at some shops is firing off brief thank-you emails to everyone who picked up their car the day before. When you do so, it is important that you avoid a form letter format. Instead, mention something in reference to their visit that makes it obvious that it is a personal thank you. Benefits include solidifying the use of email communications with your shop in the customer’s mind and giving them a simple way to quickly respond to you with any feedback. Plus, marketing ideas like this will not put a dent in your budget. automotivemanagementnetwork.…