Let me take a moment to introduce my company and myself.  My name is Bob O'Connor and I am the president of R. L. O'Connor & Associates Inc. (RLO) automotive management training and consulting firm, which I established in 1985.   My company has three divisions, the Automotive Shop Management Academy, the Bottom-Line Impact Groups, and the Service Advisor Academy.  Each serves a specific purpose in the education of shop owners and their staff. 

Shop owners want to know how to increase labor billings

Question
I recently had a technician who, while talking on his cell phone while working on a customer’s car, dropped his cell phone into the car’s rotating fan.  The cell phone was destroyed, and part of the cell phone damaged another customer’s car parked nearby. My technician was horrified at the thought of possible injury to himself. My question is, should technicians be permitted to use cell phones while working in the shop?

A California shop owner is concerned about his ability to continue to obtain OE parts.
Question
How will the decline in the number of new-car dealerships, and possible bankruptcy of several of the new-car manufacturers, affect my ability to obtain OE replacement parts?

Several shop owners have recently requested that I share some long-range management tips related to improving their businesses over the next few years.

Managing capacity
Summer is here and most shop owners look forward to the changing of the seasons as they usually bring about steep surges in customer traffic.  However, if not prepared for and controlled, the increased business may not help the profitability of the shop. Being busy is not as important as how you are being busy. 

Industry observations
Shop management is getting more difficult, and while many shops are electing to close their doors, others are continuing their quest of operating a successful and profitable business.
Many of those shutting their doors could have continued on profitably if they would have looked to industry role models, used trade associations, and sought professional assistance.

A shop owner asks how the recent franchise terminations by Chrysler and GM will affect their businesses.

Industry observations
Customer retention is one of the most frequently requested topics for training and coaching from our clients around the globe.  Every segment of the auto service and repair industry is aggressively pursuing new customers from the shrinking pool of serviceable vehicles. 

Industry observations
Summer months usually bring about increases in customer activity, leading to the deterioration of critical processes such as the vehicle inspection process. 

Fundamental focuses in 2010
Shop owners should routinely monitor some fundamental aspects of their businesses on a daily basis.  Our observations indicate that most shop owners do not plan the time to monitor key business processes until the business has deteriorated to the point of urgency to find solutions.

Need additional car count now?
Many shop owners are screaming for additional vehicle count, and yet the opportunity to increase it is literally available all around them!

Is your customer loyalty waning?
Recent conversations with several shop owners around the country have revealed a common observation about the industry’s customers.  Many shop owners feel their sales have declined as a result of declining customer loyalty.  Most feel customer loyalty is either rapidly going away or gone.