Podcasts Business Remarkable Results Radio Podcast Multiple Labor Rates [THA 364]

Multiple Labor Rates [THA 364]

Published: Jan. 25, 2024, 4:15 a.m.

\n\n\n\n\nExplore: Strategies for pricing diagnostics and labor based on vehicle type, customer segment, and job complexity.\n\nDiscover: The importance of understanding financial metrics, collaborating with service advisors and technicians, and providing exceptional customer experiences to justify premium labor rates.\n\nMatt Lachowitzer,\xa0Matt\u2019s Automotive Service Center, Fargo-Moorhead, North Dakota and Minnesota. Listen to Matt\u2019s previous episodes\xa0HERE\n\nTom Schearer,\xa0Schearer\u2019s Sales and Service, Allentown, PA. Tom\u2019s previous episodes\xa0HERE\n\nBrent Fleischman,\xa0Yocum Automotive,\xa0Republic, MO.\xa0AutoFix Auto Shop Coaching. Listen to Brent\u2019s previous episodes\xa0HERE\n\n\nShow Notes:\n\n\n\n\n\n\n

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  • The importance of labor rates (00:00:01)\xa0Discussion on the significance of intelligent labor rates for profitability and success in the automotive service industry.
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  • Differentiated labor rates for specific vehicles (00:03:02) Approach to having higher labor rates for certain foreign car makes and models, and the customer acceptance of these rates.
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  • Multiple labor rates for different customers (00:04:54) Explanation of having various labor rates for retail, wholesale, and aftermarket warranty customers, and the strategic approach to setting these rates.
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  • Diverse labor rates based on vehicle type (00:05:54) Insight into having subtle changes in labor rates for diesel, euro, older vehicles, and different skill sets, and the correlation of labor rates with menu pricing.
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  • Determining diagnostic labor rates (00:10:22)\xa0Discussion on the determination of diagnostic labor rates at the front counter, potential modification of approaches based on insights from other panel members, and the significance of communication within the team.
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  • The meeting to implement new labor rate levels (00:17:48) Implementing new labor rate levels with input from service advisors and technicians.
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  • Setting diagnostic labor rates based on testing levels (00:19:55)\xa0Technicians use a system with 16 different testing levels to determine diagnostic labor rates.
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  • Labor rates for maintenance items (00:22:16)\xa0Discussion on lower labor rates for maintenance items like oil changes, tire rotations, and transmission flushes.
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  • Competing on maintenance item prices (00:23:20)\xa0The panel discusses pricing maintenance items competitively based on market demand and customer perception.
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  • Client experience and pricing (00:29:38)\xa0The importance of providing a great customer experience and its impact on pricing and customer loyalty.
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  • Knowing your numbers for effective labor rates (00:33:18)\xa0Advice to shop owners to evaluate labor rates based on their business needs and to know their numbers for profitability.
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  • Pride in charging premium rates (00:34:20)\xa0The importance of being proud of charging premium rates for the talent, tools, and facilities provided.
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