Repairing Your Auto Repair Shop - Chris Cotton Weekly Blitz 041
You've realized it's time to make a change and now it's time to put in the work/rise and grind! you didn’t get here overnight!
1. Start at the beginning: Income Statement-This is how we check the margins, true scorecard for success! Has to be organized in a way that is readable, 5 areas of Income: Labor, Parts, Tires, Sublet, Shop Supplies. You have to have offsetting categories for COGS. Email me for a link of a sample Income statement. YOU can’t run your business without one.
2. Hire a bookkeeper, or do it yourself but you should never be more than 24 hours from your Income Statement is up to date. My preference would be someone (YOU) updating it daily. If your current accountant and or bookkeeper can’t do that then fire them.
3. Do you have a great POS system? You need to have great reporting. Time management, ability to interface with the customer and a DVI, need to be able to see your margins in real-time and on the work orders/estimates and be able to adjust.
4. Profit Margins in order, parts matrix in your POS, labor rate that pays your people well and lets you make a profit.
5. Tracking and measuring, KPI’s–ARO, Average Estimate, ELR, LHPRO, Technician Productivity
6. Working on Processes and procedures: Huge List, you should be able to hand someone on their first day all procedures pertaining to their job. If you don’t have these things then you don’t have a mechanism to hold employees accountable. Most employees want to be held accountable and want others to be held accountable. Time Off Policy & Procedure Blog Post: https://bit.ly/3zi2aRN
7. Starting to actively coach your employees and hold them accountable to the processes and procedures. RO Audit Process: https://bit.ly/3sJEPY4
8. Identifying the right people to keep in the business and the people that aren't going to be able to continue with the business.
9. Phone Skills & Coaching—Phone CAll Auditing: https://bit.ly/3ze561S
10. Sales Skills
11. Pay Plans for Service Advisors, Technicians, must be easy to understand and explain to their significant others!
Coach Chris Cotton
AutoFix-Auto Shop Coaching
Visit Auto Shop Coaching website HERE.
Email Chris: firstname.lastname@example.org