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Pete. (l33t FS)
Pete. (l33t FS) GRM+ Memberand MegaDork
9/13/20 10:54 a.m.

In reply to ClemSparks :

My go-to trans guy barely does any "front facing" work for customers, it's all subbed from other shops.

Ranger50
Ranger50 UltimaDork
9/13/20 11:15 a.m.

In reply to John Welsh (Moderate Supporter) :

Not many people can put the magical smoke back into a broken transmission. wink

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/13/20 2:04 p.m.

Independent good transmission shops are cash cow. You need two to three excellent top notch transmission builders. An excellent parts ordering service advisor, that knows and understands clearances and specs which allow your builders to give them information and then to order the proper thing from your supplier and to get the proper thing from the vendor the first time. Strangely enough customer service isn't as Paramount, though it's good to have a few loaner cars as you're not going to be able to order the parts until you've torn apart the transmission and diagnosed it. No front of the house customer wants to be without their car for two weeks, but that's often the reality, them having a set of wheels softens that blow. Obviously for back of the house customers that's not an issue or concern. The next thing is an excellent vendor supplier relationship. if there's three specs on something and depending upon other wear components it could take any one of the three if you can order all three and have them there and then either be able to return them if so that way you don't take up inventory space, without restocking fee, that's gold. that enables you to maximize profit in terms of labor turned and not having 8% parts return hit. 

If you have a trio of excellent world-class trans  rebuilders, just never ask them to work a weekend, give them health Care, keep them happy, get whatever equipment they want, stand behind their work and cash checks. 

trigun7469
trigun7469 SuperDork
9/14/20 9:40 a.m.

Summary of Starting an Auto Repair Shop

  • Your mechanics are your greatest assets. (hard to find and keep good ones)
  • Upgrade & Maintain your equipment
  • Don’t be open on the weekend, provide good benefits (Health care Ect.)
  • Provide excellent working environment
  • To be competitive you must recruit and keep your employees
  • Provide excellent customer service
  • Be Honest shop
  • Provide service plans (Exit Plans for customer maintenance)
  • Exit plan retirement date and succession plan
  • Work on Trailers
  • Don't let the owner be the person to write the repair orders

I am confused what the owner versus the service manager does? The owner obviously has the financial responsibility and leads, but what does it a good owner do?

Part of my current job is recruiting.  I have been attending 3-4 job fairs per year for the past 8 years. I have never seen an Auto repair shop recruiting. Yet, if you look on the local websites they seem to be always looking. Do they just receive that many applications that they don’t have to recruit? One reason may be the demographics are disappointing at a career fair. Of the recruiting fairs: 60% are not skilled labor 25 to 44 in age and most are there per the instructions of receiving unemployment. 15% are skilled labor that are laid off, will likely be called back up during the year (they are paid x2 more than Auto repair shops, so they will disappear). 25% are College and High school/GED graduate 24 and younger that have no clue what they want to do and are living at mom and dads.

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 10:29 a.m.

I had a novel written out about recruiting, service writing and ownership role, then my phone died. I'll get something up this evening, or if you're up for a phone call sometime, let me know.

mr2s2000elise
mr2s2000elise SuperDork
9/14/20 10:32 a.m.
trigun7469 said:

 

Part of my current job is recruiting.  I have been attending 3-4 job fairs per year for the past 8 years. I

Curious, what industry do you recruit for?

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 10:51 a.m.

Regarding recruitment for techs, the avert tech age is 53. Finding a current A tech is a different ball of wax, but finding the younger more skilled tech and diagnosis which is the key to making money and moving forward, coming out of recruiting with a modern angle in light will put you at advantage of finding the young guys, but you need to steal the old guys. 

Ranger50
Ranger50 UltimaDork
9/14/20 11:01 a.m.

In reply to trigun7469 :

Owner vs service manager.

The way I see it, is that if you separate them, you can add an extra level of income. As the owner, you don't or won't come off as "the shiny happy person who refused to help someone", that's your service managers job. Sure, the SM can come to you to see if you can help someone out, but ultimately, the SM paycheck is tied to the shop turning hours, which is also your paycheck. This also provides a small amount of invisiblity to the lay public, who aren't going to search out your LLC on the state website for owners and stakeholders. The owner is looking at the overall picture and fixing the deficiencies. If you have a poor performing employee, as the owner, it's your job to hire and fire, IMO. It's your job if they come to you to say, "Hey, the scanner quit working and you really need to upgrade it because we can only work on things prior to 2010. We are seeing more later models then what it can do.", and making that decision. Etc, etc, etc.... It's all the capital investing in your business that's the owners job. If you cheap out on that, what will your employee's say out in public or to other techs, managers, parts stores, the general public behind your back? Of course there is balance here to avoid having all the good stuff and staving off bankruptcy.

Here's my big thing with the career fair aspect, If I was looking at them face to face, I only have a few qualifications, show up on time, do your work to my expectations, go home, and you will get a "good" paycheck without having to play games. I'm looking at you berkeleyers playing and hiding behind the flat rate BS game. The minutia of have qualificaitions applicable to the job is BS anymore, IMO. If they have the basics listed above, anybody can be trained. As I said above, i'm not formally trained, but through the years of OJT and hard knocks, I was able to pass the "important" ASE's for engine repair, auto trans, manual trans, and parts specialist. It's a "If I can do it, so can you.".

Again, just my plugged nickle from the tech side....

EDIT- this is my biggest pet peeve, do not micromanage!!! Nothing pisses someone off than a micromanager.

DOUBLE EDIT- sure you can be open on a Saturday, but it has to be either cleanup from the week or LOF, brake jobs. If it is a major repair, it's going to sit until Monday. They can drop it off and wait. I remember being filled up for 8hrs, that paid out 3, on Saturdays with nothing but BS recall repairs at the one dealership because the service writers didn't know how to schedule out work appropriately. to me that is backfill for later in the week when the tech is waiting on parts for other repairs. I spent plenty of time waiting around for the "next day" parts on Monday afternoon.

Ranger50
Ranger50 UltimaDork
9/14/20 11:20 a.m.
captdownshift (Forum Supporter) said:

Regarding recruitment for techs, the avert tech age is 53. Finding a current A tech is a different ball of wax, but finding the younger more skilled tech and diagnosis which is the key to making money and moving forward, coming out of recruiting with a modern angle in light will put you at advantage of finding the young guys, but you need to steal the old guys. 

The average age is 53 because the flat rate system is BS along with manufacturers cutting every second out of a repair and even alldata "cooks" their numbers. Until you have to repetitive repairs, stuff like steering racks or transmissions in Caravans or PT Cruiser water pumps and timing belts, the tech is losing money everydamntime, unless they are selling brake jobs or BG Products on the LOF. You aren't going to get the "kids" out there unless you fix the pay system. I remember the Ram truck blend doors. They would break the recirc door and when Chrysler had to supply parts, you replaced the subassembly at about 4 hrs labor time. As time progressed, I think it was done to .5hr. If you are fresh into the dealership, I'd be looking like WTF. Service manual still says to pull the dash out, loosen the heater box to access the 4 screws of the subassembly, replace subassembly, and reinstall. If you haven't seen the tech repair which is to take the subassembly apart for the blend door only, then drop the glove box door and blower motor, remove the actuator, then fish the broken door out, install unbroken door, reattach actuator and blower motor. This is why you don't see the younger generation fixing things, the older techs who lived through this aren't going to give up the secrets. This is a big put off, at least IMO.

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 11:26 a.m.

In reply to Ranger50 :

Flat rate definitely isn't the pay structure to utilize as well, unbeknownst to most, it's also technically illegal in most states, unless you're paying the tech in overtime right after 40 hours a week of flat rate...

I'm also not a fan of BG products at all, the products themselves are decent, and some are very good, but spiffing or discounting certain things month to month, highlights one of the things that's majorly wrong within the industry. 

Pete. (l33t FS)
Pete. (l33t FS) GRM+ Memberand MegaDork
9/14/20 11:29 a.m.

In reply to Ranger50 :

And I won't work flat rate for that reason.  That and my income becomes tied entirely to factors beyond my control.  This is all a rant that I had close to two years ago when my then employer went to flat rate.  The funny part was my hourly pay went "up" by 50 cents, but given all of the piecemeal work I do (strictly time and material) and the lack of overtime, it was a giant pay cut at normal levels (roughly 30-35 billed hours per 42-45 hour work week).  

 

I'm hourly, but my flat rate hourly wage would have to be something like $40/hr on that system to equal what I do now.

Ranger50
Ranger50 UltimaDork
9/14/20 11:32 a.m.

In reply to captdownshift (Forum Supporter) :

Which isn't going to happen because the tech doesn't get paid for a repair waiting in the parts room waiting on grandpa moses to wander back to the shelf to get the requested part or make the phone call to the FLAPS to get it delivered.

EDIT- Sorry to drive this off topic, but it's part of the business nobody wants to talk about. This is the stuff that took me to being a nurse. I can make $40/hr easily without getting "dirty". I couldn't do that wrenching.... Even after booking 80 hrs in a week, which never did happen.

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 12:24 p.m.

In reply to Ranger50 :

Waiting on parts is 100% a service writing issue. Unless it's literally something that was diagnosed or it's a first time customer. But if a car comes in and pads are at 2/32 and the brake job sells and you have to wait for pads and rotors to arrive that's a service rating issue is that should have been written off estimated and parts on hand before the car even hit the shop. That shows that there's no exit scheduling and that the service writers aren't reviewing previous ro's a week before the scheduled appointment. It's correctable but ownership needs to take initiative, it's their money, as well as yours. A good tech wants to stay in the bay and just turn out and crank hours. Keeping them fed should be the easiest part of the job. 

bigdaddylee82
bigdaddylee82 UberDork
9/14/20 12:26 p.m.

This thread could devolve quickly into ranting, a lot of my experience leads me to ranting, but I worked as a service advisor in the largest  dealership for a Japanese make, in a metro area of a little over 2 million folks.  (intentionally vague)

I was there for a little over 3 years, went through 4x service managers (one due to illness), most of the service drive crew was stable, the lube techs, cashiers, and porters were a revolving door of kids quitting or getting fired.

In addition to the flat rate advice above.

Avoid spiffs and CSI!

Spiffs for upsells or pushing a specific product lead to the stereotypical slimy, pushy, lying service advisor everyone hates.  We got spiffed on all kinds of stuff, wiper blades, air filters, top end cleaner, MOA additive for an oil change, evap cleaner.  We had an advisor that could tack a $60 evap clean on with just about every service, and the techs could make a single can of foam cleaner intended for a single use, last for at least 4x evap cleanings.  Scheezy stuff like that happened all the time.  We got paid extra for pushing BG & Valvoline stuff.  If you could sell so many 44Ks or top end cleanings you got a spiff, very few, like 1/10th of 1% of the cars that ever got up sold a can of 44K ever really needed it.

Unless it's a franchise thing, being an indy, customer service index (CSI) probably won't be a thing, but man is it ever a complete waste.  I was consistently the worst advisor when it came to revenue, I'm quite sure I only kept my job thanks to a usually stellar CSI score bring up the dealer's average.  So much depended on our CSI, the manufacturer and dealer had standards, mandatory minimums, but even being one of the few advisors there with a conscience, I'd still get the occasional scathing review on a survey, thanks to stuff completely out of my control.  Like, it's winter, we have a heated enclosed car wash, we offer free carwashes, techs can't smoke in the building, so they go stand near the warm carwash to smoke, car drives through cloud of tech's smoke, and now smells like an ashtray, so the customer gives me a terrible survey.  No amount of rational sanity on the dealer or manufacturer's side, I don't smoke, I'm not letting techs smoke by the carwash, all they see is the low number with my name on it.

It got to the point that an advisor got canned for forging CSI surveys.  They were smart enough to make a bunch of fake email addresses for their customers, but dumb enough to make all the reviews perfect, and from the same IP address...

I don't think you could pay me enough to do it again.

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 12:28 p.m.

Also, schedule and pre-order parts properly and the increased revenue from decreased down town will pay for a split unit AC for a 4-5 bay shop in less than 60 days. How many techs are currently working in in air-conditioned shops? 

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 12:32 p.m.

In reply to bigdaddylee82 :

Though I'm not the OP, I strongly suggest that ranting be somewhat encouraged in this thread. they need to know what sets shop employees off and what makes them dislike the job why they're miserable why they quit why they leave to go to another shop why they leave and go to another field of employment and career path. 

especially from people that are obviously passionate about automobiles and her hence on this forum. I strongly believe that anybody that's here because of their passion for cars and motorsports has the makings to be a good shop employee and valuable team member. 

trigun7469
trigun7469 SuperDork
9/14/20 12:37 p.m.

In reply to mr2s2000elise :

College

In reply to captdownshift (Forum Supporter) : Yes, would love to talk to you.

Pete. (l33t FS)
Pete. (l33t FS) GRM+ Memberand MegaDork
9/14/20 1:30 p.m.
captdownshift (Forum Supporter) said:

In reply to Ranger50 :

Waiting on parts is 100% a service writing issue. Unless it's literally something that was diagnosed or it's a first time customer. But if a car comes in and pads are at 2/32 and the brake job sells and you have to wait for pads and rotors to arrive that's a service rating issue is that should have been written off estimated and parts on hand before the car even hit the shop. That shows that there's no exit scheduling and that the service writers aren't reviewing previous ro's a week before the scheduled appointment. It's correctable but ownership needs to take initiative, it's their money, as well as yours. A good tech wants to stay in the bay and just turn out and crank hours. Keeping them fed should be the easiest part of the job. 

It can't work that way.  We already have the car, the car's owner is already inconvenienced once.  If we tell them to come back tomorrow, they are out two days.  And it also invites price shopping, or simply no-showing.  The HARDEST part of this industry is getting people through the door, need to make that threshold-cross count.

 

I have never worked anywhere where we worked that way.  It has always been inspect/diag in the morning so that stuff can be sold by lunch and the afternoon is doing the work.  Work is scheduled a day or two out at most.

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/14/20 2:28 p.m.

In reply to Pete. (l33t FS) :

That's complacency on the front of the house. If the last time that car was in it had 3/32 seconds or 4/32  seconds on the on the pads, pads and rotors should have been ordered before the car arrived. Period. Then when you do the courtesy safety inspection and you see that there are 230 seconds you sell the job and the car is already there it never needs to be pulled out of the bay the job is done. The conversation should be had before the customer comes in as well hey last time your pads were at 3:30 seconds there's a good chance you're going to need pads and rotors I'll have the stuff here and ready we'll confirm it I'll take a picture for you show you how you know the condition they're in currently and we can get it knocked out in an hour and a half. You'll be ready on your way less than 2 hours safe ready to go how's that work for you. 

 

Then you've got confirmation you're providing a convenience it's getting done faster than they could do it themselves and the tech is happy. If you want 90% Bay efficiency in a shop, and Bay not tech, that is the only way to do it. it requires a relationship with vendors because you're going to be returning more unused parts for jobs that don't get sold. But you are going to turn more hours and be vastly more profitable. Scheduling and ordering like that and pre-drop off communication will literally increase the revenue of a shop by 15 to 20%. It will literally pay the service advisor's salary. And if it's not being done that's a problem. 

bigdaddylee82
bigdaddylee82 UberDork
9/14/20 2:44 p.m.

Again, dealership so not apples:apples, we had a large inventory of the usual stuff, kept all filters on hand, frequent wear items and parts for common problems were stocked.

We sold a lot of used cars, and offered service for everything, not just our make.  In fact we had a few "sister dealerships," owned by the same people, that were different makes, and in different locations.  We offered service reciprocity for anyone that bought from one of our family of dealers, at any of our other dealers for everything that wasn't warranty or a recall.  A lot of oil & air filters cross reference, so that's not too hard, but we still kept a decent inventory other usual stuff.

For our pre-owned stuff, we had accounts with all the parts stores, NAPA was delivering several times a day, and a few of the salvage yards delivered the occasional NLA part.

Every car got a however many point inspection, we pitched recommended service based on age/mileage and previous visit's inspection at time of write-up.  Ideally we'd prepared the customer on their previous that they'd need brakes, or their 60K mile service this go-round, just because we recommended it last time, doesn't mean they're doing it this time.  What we tried to do, is schedule that specific service, so they knew they were getting brakes on the next visit, instead of waiting for them to roll in around their next oil change and remind them, "hey remember we told you about brakes last visit."  Of course they don't remember, and they don't have time.  Scheduling that specific service was key.

As far as scheduling went, it was mostly to appease the customer, they feel better about having a time hat's "theirs" and helped us manage our work flow a little, but we never turned away a walk-in, so it's not like, not having an appointment was going to stop you from getting service.  The appointment was just a time to drop off a car, not necessarily the order your car was going to be worked on.  Priority went to the waiters, if you were in our waiting room, we did our best to get to you first.

This was a large dealer, so we had half a dozen loaner cars (sold as program cars after they got 3-5K miles on them) so we could keep customers happy in one of our loaners.  We also had a near-by Enterprise Rental that we did all of the regular service for, we had a great working relationship with them, and used them when our loaner cars were depleted.

It was rare that we ordered parts prior to an appointment, we could do most stuff same day, but big jobs, showing up late afternoon, or on the weekend, you might be asked to leave it, or come back.  Loaners outside of warranty were used at our discretion.  I wanted my customers happy, and didn't want them to take their vehicle elsewhere for service, so I did my darnedest to get my customer a car.

aircooled
aircooled MegaDork
9/14/20 3:16 p.m.

There might be some training programs for it out there :)

 

Ottawa
Ottawa GRM+ Memberand Reader
9/15/20 5:43 a.m.

 Pete. (l33t FS) In reply to ClemSparks :

My go-to trans guy barely does any "front facing" work for customers,

Pete. (l33t FS)
Pete. (l33t FS) GRM+ Memberand MegaDork
9/15/20 8:09 a.m.

In reply to captdownshift (Forum Supporter) :

We already do that to an extent: service recommendations are noted in the billing system and are brought up at the next service.

 

However it doesn't make sense to order up all parts for prior recommendations.  Most of the time they decline, are no shows, or had it done somewhere else.  The parts suppliers would be getting pissed at us for playing musical stock with their parts.

Especially nowadays, because getting parts for cars is a hunt, a lot of suppliers are simply out of everything.  It takes a lot of phone work just to make a viable estimate, let alone actually get parts.

 

Besides, my day is never spent not getting work done because of a lack of parts.  Not getting work done is because of a lack of foot traffic.  I have two more cars scheduled for today (one waiting at 1pm, I hate having to take early lunches...).  Which is why I'm bored on GRM instead of getting cars diagnosed or work done.  If we had more work, we have six bays for 1.5 techs, I can leave cars apart and hanging while I work on something else.  Space makes time.

 

I read stories about areas where all the shops are scheduling 1-2 months out, techs slammed working full shifts plus overtime, etc, and wonder if my internet connection goes to a parallel universe or something smiley  Hell, I was working in a shop that grossed a million dollars per month, and they never scheduled more than a week out...

 

John Welsh (Moderate Supporter)
John Welsh (Moderate Supporter) Mod Squad
9/15/20 8:22 a.m.
trigun7469 said:

Summary of Starting an Auto Repair Shop

  • Your mechanics are your greatest assets. (hard to find and keep good ones)
  • Upgrade & Maintain your equipment
  • Don’t be open on the weekend, provide good benefits (Health care Ect.)
  • Provide excellent working environment
  • To be competitive you must recruit and keep your employees
  • Provide excellent customer service
  • Be Honest shop
  • Provide service plans (Exit Plans for customer maintenance)
  • Exit plan retirement date and succession plan
  • Work on Trailers
  • Don't let the owner be the person to write the repair orders

I'm enjoying this thread.  The points above look to be solid advice.  That then leads me to wondering if the franchise management people you are meeting with are telling you any of the same things.  If they aren't, I wonder how well that person trying to getting you to sign on the line for the franchise really knows the business of how up-front they are about the real aspects of the business?

captdownshift (Forum Supporter)
captdownshift (Forum Supporter) GRM+ Memberand UltimaDork
9/15/20 9:24 a.m.

In reply to Pete. (l33t FS) :

The average RO should be in the 40/60 or 50/50 split on parts versus labor, though most shops have a flawed parts pricing matrix. If shop hours increase 20% by implementing parts pre-ordering, those vendors will have zero issue with increased return rate. It's complacency and a fear of change andband successful. instead a lot of people would rather stick with what they're doing even though they admit it doesn't work. The tool truck driver can't help you with parts pre-ordering, and won't have the answer regardless of how many times you ask them. 

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