Automotive & HD Business Management Articles.
Bob Greenwood. March 28, 2013. ( over 8 years ago ) 1,455 views
Many shops across the country are still operating with a single ‘catch-all’ labour (door) rate and they definitely struggle to make ends meet.
Consider these three thoughts….
1). The retail labour rate of a shop reflects the competency of the technical and internal staff of the business.
2). In today’s environment, the shop is being hired by the consumer to be properly advised on the safety and reliability of their vehicle based on the way they use it, and their expectations from it.
3). The depth of knowledge required within a professional shop today is diversified in order to service all vehicle makes and models ranging from the current year to 16 years old.
These factors force the business to be set up differently to reflect the diverse talent required in order to serve the consumer on a Professional level. The better shops now have in place the following labour rates: 1. Maintenance 2. Diagnostic 3. Reflash 4. Fluid 5. Tire Install.
Some shops even have a couple of others due to the type of services they can provide. The point is that today the business is very unique and it is complicated but, it must be set up properly in order to provide the right profitability. Telematics alone repositions the business to a different model known as “service on need”.
Review your own business and ensure your internal system of charging reflects the above mentioned points and, where in doubt, enrol into a business class that provides the depth of explanation and process solutions.