The Basics of Owning An Auto Repair Shop - Part 5
In this episode, Lucas Underwood and David Roman continue their series on repair shop basics with Cecil Bullard, industry expert and CEO of the Institute for Automotive Business Excellence. They discuss the importance of maintaining appropriate parts margins, highlighting how a low margin on parts can impact the overall profitability of a business. He also delves into the fear that often prevents shop owners and technicians from addressing productivity issues within their operations.
00:00 Effective labor rate affects charging and parts undercharging.
05:55 Discussing percentages and their actual dollar value.
10:23 Underestimating costs leads to financial hardship.
11:39 Marking up parts and labor essential. Be profitable.
16:49 The Car has multiple issues, and the diagnostic time is underestimated.
19:35 Selling tires brings in more profit than brakes.
21:16 Comparing hourly profit for motor and brake.
Пікірлер: 3
The problem in the automotive industry today is that while we prioritize teaching repair skills, we often overlook educating individuals on business management. It's common to still see many customers using manual methods like paper and pencil for invoicing, and they often assume they're making sufficient profit based solely on the list price. Additionally, I still come across signs on the side of the road advertising $30-60 brake jobs plus parts. Seeing this, I shake my head and think to myself, "Here's someone who doesn't grasp the automotive business."
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👍 🤣 Dave mentions flat rate all of a sudden nobody can hear him 🤣 🙈🙉🙊