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Basics with manufacturers paying for their mistakes. In short, they prefer not to pay anything. It's a huge cost. Also there's only so much time / resources to bring a product to the the market. It's not just labor it's also parts, typically redesigned to address a problem.
As warranty coverage for the vehicle owner has gone from 12 months, to 24 months, then 36 months and so on there is an increased of overall costs to the manufacturer. 30 years ago - give or take the total service dollar was 80% COD, 20% warranty. Today, the % is the same but the components are reversed. |
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I dont run into a ton of aftermarket stuff, mostly air filters. Cant tell you how many times they are too oiled and mess up downstream bits. I usually put it on a bag in the trunk. Something as simple as 15 minutes with the parts washer can ruin the job. Thats the simplest example. In high school and college I was paid hourly. If I wasnt doing a job I was cleaning something, getting parts, changing air hoses... not sure a seasoned tech would do that but it was great for me at the time. |
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In our area with the costs of land, taxes, utilities, equipment etc, there is no way to pay a tech even close to 50% of the posted rate. Thinking that is possible is a joke. Cheers |
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Too cute.........^^^^.......made me spit coffee outta my nose this morning. ^^^^^ - I couldn't agree more. Jeff the name of your shop must be Unicorn Automotive.
oh BTW, don't let an experienced accountant near your business, he'll ruin your idealism..... |
Jeff is certainly a unicorn in the 911 shop world, yes.
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Marc, it isn't cute, it is how we do it. I know (hope) that comment wasn't a slight at me. I didn't start this business to get rich off of other's work. With bonuses there are months where a few of my techs out earn me, and I am the one with well over 3/4 of a million of cash invested and an equal amount of liability each month. We live in an area where the building I lease is worth 3M+, so we lease and won't see a big return on the property. In the early years staff often got paid out of my personal bank account, not out of the business one.... But I don't have a business without highly skilled and motivated staff. We can't take care of clients without them. We are moving to a new shop. 11,000 sq/ft. Best of everything equipment wise, and the part I love the most about it is that we have a 900 sq/ft lunchroom with full kitchen with island and breakfast bar, couches and will have a big screen TV. All so that they can be comfortable on their down time. My 15 yr old son and I will be putting the finishing touches on it this weekend. My wife makes Breakfast Burritos that we eat at our Monday morning staff meetings. She even makes special ones for those with food allergies or other reasons for avoiding certain foods. She also makes a variety of other wraps (butter chicken, Beef/bean/cheese, Fajita etc) that we have on hand in case someone forgets a lunch or gets hungry.
I belong to a shop owners group online and am constantly amazed how people treat their staff. No good employees = No business. Plain and simple. I wish I could pay more. Whenever we have growth in profit, wages go up and bonuses go up. I don't take more when that happens. I have said to my team that my goal is to have the highest paid techs in the area, period. They believe me and know they can get there because they strive to be the best. They won't be the highest paid because we charge the most or over price parts, they will get there because they believe we are a team and always find ways to increase efficiencies and grow the business. And they trust me. How could I not take care of people that support my business in that way? It is too bad our industry is filled with crooks and people out to earn a quick buck at other's expense. That is what creates the angst people feel when they drop off their broken down car for repair. And sadly, they have every right to feel it. The problem with the automotive industry is that there are not enough business owners who "get" business. Often it is filled with owners who "moved up the ranks" and don't understand long term success. That said, there are a few who followed this path and get it, but sadly not enough... Ok, rant over... :) To me it just seems simple. Take care of your clients and your staff the way you would be thrilled to be taken care of, and the success will follow. Cheers |
It certainly wasn't a slight at you. You have an amazingly rare philosophy in this business and it sounds like it would be great to work for someone with your idealism. The point was, as other's have attested, you are without a doubt, the needle in the haystack.
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Thanks Marc. Appreciate the kind words.
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Right on Jeff!
Having the pick of the best mechanics in your area because you pay and treat them the best. You will have good retention of trusted help with less 'comebacks' on their work. Customers who do not get damaged cars because the help really cares, etc. I am in construction now and have never had problems getting help to finish projects on time and under budget. Even in the frothy days before 2007. In those times I would hear frequently "I can not find good --------(carpenters, masons, etc.)" I would correct them and say you mean "you can not find good carpenter for what I am willing to pay) One of my first jobs was as a mechanic at a shop where the owner was like Jeff, he taught me at a young age how important his employees are, I have never forgot and I have never had the trouble so many of my friends have with their help. |
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