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Are your misguided beliefs causing misguided results?

Saturday, December 15, 2018 - 09:00
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How about this one, I hear it all the time. “I can’t charge that much or set my labor rate that high” because I am in a small town. Or we are in a poor area and people around here can’t/won’t pay that much. My question to this has always been: So, when you pay your power bill in this small town, do you tell the power company, “I need the small-town price” or when you go to buy a truck or a new TV, do you tell them “I need the small-town price?” Because you know folks that drive new vehicles and have nice houses in your town and pay everyone else’s normal price. How is it that they just won’t pay your price!

It is amazing when we finally have a breakthrough on these misguided beliefs and the shop owner finally starts charging the correct prices. Prices based on his actual costs. Then the shop finds out that the customers will in fact pay the correct amount even in a small town. What a great thing that the shop owner can now afford to take a vacation. Maybe they can cash a few weeks’ worth of their own paychecks they have been writing but have in their desk drawer. And it could have been this way all along, but someone a generation or maybe two or three back got the idea that it couldn’t be done in a small town and the following generations just fell in line without ever questioning it or examining it.

Here is another one that again we hear all the time. “I just can’t pay like the dealer does and I certainly can’t provide benefits!” Holy cow! What? Why? Really? The only way dealers are paying more and offering benefits is because they have sat down and figured out what they needed to charge to be able to provide these things. I am sure they add those costs into their business plan and make it work.

So, do you think maybe you should challenge this idea that you cannot provide top pay and benefits? I would hope so. I would start doing some checking into health insurance group plans and some IRA or 401k plans and see what the true cost is. Then sit down and break it out by the hour and adjust your labor rates to reflect this and you will be amazed at how you can compete with the dealer for techs once again.

Implementation is power!

Belief systems, we all have them, we all go throughout our day guided by them and as true as that is, you must realize that so are your results in your business! Henry Ford said, “Whether you think you can, or you think you can’t, you’re right!” Great insight from a man with an eighth-grade education. Think about that for a minute or two. An eighth-grade education. How many times have we heard or said, “If you want to be successful in life, you must have a college education!” Pretty good thing ole Henry challenged and most importantly proved that to not always be 100 percent true! Again, I am not disrespecting education, not at all, but Mr. Ford did not let that belief prevent him from researching and inventing and changing the world.

So today, start looking around and noticing all the things going on in your business. Are you cutting the ends off a ham in any area or department? I hope not, but most importantly if you are, I hope you start making changes and start getting the results you need from all you have leaned.

A great place to check to see if you are charging what you should is ATI’s Parts Matrix. Learn what shops all around the country are asking for and getting. Every shop has to make the right profit. Any shop business model will work if you have the cars to feed it and the staff to deliver it. If you want to run the Bring Your Own Parts Model you’ll need two times the cars or labor rate to make the same money you used too. If you want great technicians and loyal customers, work on selling the value you’re bringing to your customers. History has taught us that companies trying to be everything to everybody die a slow death! Simply decide what model you want to be recognized for! Go to for a limited time and see how your parts pricing matches up.

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