I recently heard a fireman share how he & his fellow firefighters work to avoid disaster. He explained that the best way to deal with a serious problem was to be proactive in order to eliminate or minimize the problem before it occurs. His department invests their time in doing regular checks on the businesses in the area to make sure they are up to code, that the fire extinguishers are working and in the [...]
In the compensation programs we recommend, the tech is paid an hourly rate based on their level of experience and the dealership location. For example, in the Midwest, a C-level tech might make $8-$10 dollars an hour. A tech in the Boston area, however, might need to be paid $14-$16 per hour. You know your area and what you have to pay to get a technician at the various levels, so adjust accordingly. In the [...]
One of the most common questions we are asked at BCI is "How do I determine my labor rate?" For most dealerships, the process of setting a labor rate begins with calling all the competitors in the market, asking them what their labor rate is and then making sure that they are somewhere close to the competitors. In our company, we jokingly refer to this method as “pooling ignorance”. Why, you might ask, is this [...]
A few weeks ago, my husband and I were out with our kids at a restaurant chain. The whole experience was wonderful, and, with two five-year olds and a one-year old, to have a positive experience from start to finish is the equivalent of winning the lottery. Specifically, our waitress was fantastic. She was a true professional, knew what we were going to ask for before we needed it and was wonderful with our kids. [...]
One way to generate new customers and while maintaining your current customers is through a Loyalty Program at your dealership. Think about how many stores have a “shopper card” or a “preferred customer” program. These stores are marking up prices on items to be able to give discounts on other items. We all understand that, but it makes the customers feel like they are getting a perk for doing business at the store. We encourage [...]
We were recently asked, "Who is responsible for determining the labor charge on each work order?" Before we can decide on the amount of labor that can be added to the work order, we need the technician to diagnose or triage the piece of equipment. (Need Triage Sheets? Check out BCI's Dealer Toolbox) If they are triaging the equipment, they will estimate the time needed to complete the repair on the triage form. If they [...]
We were recently asked- “We often hear of the importance of Flat Rating in our dealership. Why should we do this, and how do we get this info to start? How does this change with different conditions of equipment brought in?” So, why should we use Flat or Standard Labor Rates (SLR)? It’s good for both you and your customer. From the customers perspective, it gives them the ability to know what the charge for the [...]
In your dealership, do you track your Recovery and Efficiency Rates? If you are like some of our dealers, you are on the fence about putting in the work to pull these numbers together, but if you are willing to take the time, these numbers will give you great insight into how to get your shop performing at a higher, more profitable level. The Efficiency Rate is the time that the tech is clocked into [...]
Triaging is vital to keeping our shops moving and our techs efficient. The triaging process happens after the equipment has been checked into the dealership, the work order has been filled out and hopefully signed by the customer, and a red ribbon has been attached to show the equipment has just been checked in. At 10:30 a.m. and 3:30 p.m., the service coordinator will go to the service manager or service writer, take the clipboards [...]
When I work with the service techs at a store, my goal is to help them, and management, understand the value they bring to a dealership and how they can do their work in the most efficient way possible. A service tech’s inventory is “time” and your goal as a dealer is to sell all of the tech’s time each day. Is it possible to sell eight hours of labor each day per tech? Absolutely. [...]
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