How To Increase Your Labor Rate Without Losing Car Count [THA 152] - a podcast by Carm Capriotto, AAP

https://youtu.be/fqXXoQrnPtA

The Panel:

Devin Kelly, All-Star Automotive, Columbia, MODevin Kelley is a passionate entrepreneur with a technician background. As a shop owner, he is responsible for general leadership within his company. This puts him at the front-line of the fight for a more professional auto repair presence in his community and helps maintain his companies positive reputation.  While acquiring another shop and brand in 2018 Devin doubled capacity going from a four bay shop to eight. With the new brand and downtown location his company grew annual sales from $370,000 to $1.8M in 2019. The new brand's prior year losses turned into big profits with new ownership. Devin admits these changes would not have been possible without becoming more mindful and organized when the challenges grew relative to the sales. Having ATI coach Paul Marsh, MWACA mentor Ron Haugen and AutoVitals coach Bill Connor provided invaluable guidance while the shops high performing team set all new company records.  He is excited about how advancing the automotive industry enhances opportunities for his team and improves perceptions of auto repair professionals. When Devin isn’t working, you’ll find him going on adventures with his wife, working out in the gym and riding laps on a motocross track.

David Roman began his automotive career in 1999, attending an automotive technical school at a local community college. While attending college, he took a part-time job at a large parts retailer, hoping to gain some experience in the field. This part-time job turned into full-time employment, as he was promoted to management, culminating in placement as a store manager in East Central Illinois.

David discovered a passion for helping people and sharing his automotive knowledge. This passion for serving others allowed him the opportunity to successfully manage multi-million dollar operations in Illinois, the St. Louis area, and eventually Kansas City. His approach to customer service garnered him several accolades and awards, something he eventually wanted to bring to automotive repair and service.

In 2012, he opened Done With Care Auto Repair with the goal of bringing exceptional customer service, transparency, and honest work to his clients. The business was started with only some savings, no prior clients, and no history. Over the last six years, David has been able to bring a servant’s mentality to helping his clients with their automotive needs resulting in loyal customers, excellent reviews, and a solid reputation. Find other episodes that feature David HERE.

David Johnson, DJ Auto, Provo, UT

Key Talking Points:

• The overall root of this problem is having confidence
• We are behind the times addressing labor rates because many do not know how businesses work
• Losing car count is not the goal, however, consider 95% of your profit is being done by about 50% of your customers. Losing a few customers may be OK. It will happen, but it should not hurt your business
• You need an acceptable labor rate that equates to an acceptable level.
• Parts margins must be considered in the solution
• Parts to labor ratios are correct
• The psychology of the sale at your counter is critical
• If we are running a good business we are not competing with price. We are competing on value and experience
• Take pride in what you do. Do you have the self-esteem to make this happen?
• Your staff needs to know your...

  Further episodes of Town Hall Academy

  Further podcasts by Carm Capriotto, AAP

  Website of Carm Capriotto, AAP