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Thanks to our Partner, NAPA Auto Care\n\nMurray Voth, owner of RPM Training, discusses the importance of language in the automotive industry, advocating for a shift from "labor rate" to "service rate" to better reflect the value provided. He also dives into financial strategies for shops, emphasizing the significance of setting the right service rate and understanding gross profit to ensure business profitability.\n\nMurray Voth,\xa0RPM Training.\xa0Listen to Murray\u2019s previous episodes\xa0HERE. murrayvoth@rpmtraining.net\n\nShow Notes\n

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• Watch Full Video Episode
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• The breaks for breasts initiative (00:00:13) Discussion about the initiative started by two shop owners to raise funds for breast cancer research.\xa0https://brakesforbreasts.com
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• The rise of the mechanical and technology specialist (00:02:28) A language shift in the industry and the importance of recognizing the rise of mechanical and technology specialists. https://remarkableresults.biz/rise
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• Transitioning from diagnostics to testing (00:03:04)\xa0Discussion about the shift in terminology from diagnostics to testing to improve customer perception and willingness to pay.
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• Changing terminology from labor rate to service rate (00:04:09)\xa0The importance of changing the terminology from labor rate to service rate and its impact on customer perception.
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• Professionalism and perception in the industry (00:05:26)\xa0Discussion about the importance of professionalism and perception in the industry and its impact on customer behavior.
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• Showing the value of service rates (00:13:24)\xa0Strategies for showing the value of service rates to customers, beyond just raising prices.
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• Analogies for service rate and cost (00:14:25)\xa0Using analogies of fast food restaurants and steakhouses to explain the concept of service rate and cost.
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• NAPA Auto Care Apprentice Program (00:17:05) Information about the NAPA Auto Care apprentice program as a solution to the technician shortage.
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• Financial calculations and analysis (00:19:26)\xa0Murray Voth shares calculations and analysis of a shop's financial data, including occupancy costs, labor rates, and profit margins.
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• Determining the right service rate (00:22:05)\xa0Discussion on adjusting service rates, parts margin, and other expenses to optimize profitability while considering market competition.
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• Challenges and mindset shift (00:30:14)\xa0Exploration of the emotional and intellectual barriers shop owners face when making financial decisions and setting service rates.
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• Wages and effective proficiency (00:33:40)\xa0Analysis of technician wages and the impact of selling work properly on the effective service rate, setting goals for improvement.
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• Coaching Gross Profit (00:34:52)\xa0Murray discusses coaching gross profit, creating net profit, and making changes to increase revenue.
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• Back-End Sales Impact (00:35:48)\xa0The impact of service improvements on parts purchases, revenue, and margin.
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• Behavior Coaching (00:37:09)\xa0Murray talks about coaching to behavior, raising inspections, and the 100% rule for vehicle inspections.
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• Facility Service Rate Calculator (00:39:02)\xa0Murray offers a facility service rate...