Re: Attracting New Talent
Posted to Shop Management Forum on 11/15/2015
2 Replies
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Tim, Gary, & All,
We did 6 months of serious market research before we opened
out location. Most shops don't have that luxury, but I have
2 failed shops in my past and I didn't want strike 3. Here's
our location stats:
Household Income: $108,276 Population: 42,274 (91.25%
white/1.52% black/7.23% other) Traffic count in front of
shop: 162,000+ No. of New Car Dealerships within 1.5 miles:
14 Nearest Transmission Shop: 5.5 miles
We also purchased a list of all registered vehicles in Salt
Lake county and entered it into a database. We did a search
query to determine where the highest concentration of 10
year old and newer vehicles were registered at. It turned
out to be within about a 5 mile radius of the location we
chose. Our biggest competition are the new car dealers, not
other shops.
Why am I telling you all of this? Because when you have
great marketing, advertising, & sales, shop management
doesn't have technicians work flat rate, or if they do, they
don't start trimming hours. In our shop, beating book time
by a significant margin is assumed. Everybody in our shop
works by the clock hour with 6 hours of overtime a week
guaranteed.
We work Mon.-Fri. 8-6 with an hour off for lunch except on
Tuesdays when we have our shop training session and that's
paid and we supply lunch. Punctuality isn't a problem
because every minute the techs loose being late, long
lunches, leaving early, etc. is overtime hours and it
impacts their paychecks pretty significantly.
I beg your forgiveness if I sound arrogant, or if I sound
like I'm bragging, I don't mean to be. However, we put a lot
of thought and work into our shop not only in the planning
stages, but also in the marketing and sales systems and
procedures we have for attracting customers and selling
jobs.
Due to the nature of the transmission business, we don't
have regular repeat customers like general repair. Our
business is closer to the funeral home industry than it is
to anything in the automotive world. People don't call us
unless they absolutely have to. I once wrote an article in
Transmission Digest back in the '90s where I drew the
comparison between the funeral home business and the
transmission business after we did a transmission job for a
funeral home director.
I figured out how to get to the top of Bing, Google, and
Yahoo and stay there without anybody's help. Our average
position in the Salt Lake valley is 1.1. Our phones ring off
the hook. We get so busy that I sometimes turn off our
Pay-Per-Click advertising to stop the phones from ringing.
Once I learned of the direct correlation between how much I
spent on PPC advertising and how much our phone rang, I was
able to "throttle" the business to our production
capabilities, and not the other way around. (See attached
article)
http://autop.ro/9Dq [autop.ro]
In the beginning, you don't have any money because you
aren't marketing/advertising/selling. Classic
Chicken-and-the-Egg syndrome. I've BTDT several times.
There's a ton you can do for free. Once you get the ball
rolling, THEN you start to invest money while still pouring
in the time. The ROI happens awfully quick. We opened this
location in Oct. '08 and did only $30K for all of '08. By
2011 we had reached $1.1M.
What I'm trying to say is, we keep our techs busy all the
time because the owner/manager is doing his job. It's not
the other way around to where the owner/manager is sitting
around waiting on the phone to ring and, in turn, the techs
are standing around due to poor marketing, advertising, and
sales. Am I making any sense?
When I see techs standing around in a shop, the first thing
that pops into my head is that there's a problem with
marketing/advertising/sales. I consider it my job to keep my
techs with a steady paycheck. If they end up standing
around, THAT'S ON ME, not on them. I'm the guy that's
supposed to have his act together and know what he's doing.
My techs KNOW what they are going to make. There's none of
this up-and-down, feast-or-famine baloney. This may sound
awfully harsh, but starving techs are merely evidence of
sharing the shop's leadership's consequences of not
investing enough time in marketing/advertising/sales. Notice
I said "time" and not money.
The funny part is that when we are super jam-packed, my
techs turn on the afterburners. An average week for us is a
little over $21K. However, we have had plenty of $30K and
$40K weeks with a record week of slightly over $50K. (only
once, though) Think of this: On an average week, my techs
are already at or usually above 100% efficiency. When we
have above average weeks, we get a ton of extra work kicked
out of the shop WITHOUT any increase in labor costs. I've
never had a technician every complain because they like to
stay busy. It sure beats the alternative.
I was going to tell everyone about our sales system, but
this post is already way too long. I'll save it for another
time. The bottom line is that I think it's the
responsibility of the shop to make sure the techs have a
reasonably steady paycheck. Whether they keep the shop busy,
or whether they pay them by the clock hour/salary, or
whatever. The tech's wife is the ultimate boss and if she
isn't happy, nobody is. :-)
Larry Bloodworth
Technical Information Specialist/Technician
Tanner Transmissions
Draper, Utah, USA