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Road to Green: Are You Focused on the Future?

Road to Green: Are You Focused on the Future?

Posted By: Robert (Bob) Greenwood, AMAM.

Everyone acknowledges the rapid changes taking place in the Heavy Duty Aftermarket but are you addressing the following?

  • The new business measurement which includes revenue breakdowns involving a minimum of 3 labor categories
  • Your shop site efficiency measurement weekly and monthly
  • Your average billed hours per R/O weekly, monthly and year to date
  • Your sales mix between aftermarket and dealer parts
  • The total hours of training completed for each tech for the year
  • The actual cost per billed hour for the shop on a monthly basis with a year to date average

Those are just some basics as the new aftermarket demands new awareness which in essence means many HD owners must relearn their business to maximize net income. It has been proven that the average HD shop is missing on average $35,000 net profit per bay per year out of the current business coming through the door. The question that must be asked is “where is it in your shop?”

The average HD has a lot of work to do to understand the new aftermarket that is rapidly arriving and how to implement the changes required and building a solid Team culture responsible for the implementation.

If you are an HD shop owner who is not addressing the future and determined to hold on to the methods used over the last 10 years thinking you will be OK then ask yourself this question: Do you take out a minimum of $150,000 per year for my immediate Family, having the highest paid technicians in the marketplace with exceptional benefits and the shop still nets a minimum of 10% of gross sales? Will that remain valid for the next 3 years? If so, good for you. If not then it is time to rediscover the business opportunities that are in front of you today. Enrol yourself and your manager together into an HD shop specific Business Course. Procrastination is not an option.