Ignition Magazine Australia | May 2024

Classic / Member Ride:

ARE YOU UNDERCUTTING YOURSELF?

Advice for setting prices that are fair for everyone.

WHAT IS THE VALUE OF YOUR TIME?

Ways to avoid time-wasters in your workshop.

CALENDAR of events

Queensland

QLD Trade Expo

22 May 2024

Sunshine Coast Trade Show

7 August 2024

Northern Territory

Darwin Trade Show

15 May 2024

Western Australia

Esperance Trade Show

15 May 2024

Geraldton Trade Show

22 May 2024

New South Wales

Lismore Trade Show

3 September 2024

Coffs Harbour Trade Show

4 September 2024

Port Macquarie Trade Show

5 September 2024

The events advertised include current and planned events (which are subject to change). To get tickets or view a planned event’s status, log in to myCAP and click on events. For further information please contact our Events team.

cap.coop/events

1800 327 437

events@capricorn.coop

If you know someone in the auto business who isn’t a Member then now’s the perfect time to Spread the Word.

Simply pass on the lead to your Area Manager between 1 February 2024 to 30 June 2024, and when they join you’ll get 20,000 Bonus Rewards Points as a thank you.

join@capricorn.coop | capricorn.coop | 1800 327 437

David Fraser Group CEO

CEO’s message

Last month’s Australian Automotive Aftermarket Expo was a fantastic reminder of the opportunity that exists for us all when we embrace change.

I was privileged to attend four sessions as part of the Expo’s Business Education Program. I always enjoy deep discussions about our industry’s future, and I’ve been struck by the passion and enthusiasm with which some in the aftermarket are greeting the tectonic changes facing automotive businesses.

One of the sessions I attended was about preparing workshops for electrification. We’re really in the awareness phase of this technology. Consumers are getting used to the idea of electric cars, governments around the world are legislating away from ICEs, and manufacturers are taking more and more EV concepts into production. Now is the time for all Members to keep a watching brief—to start thinking about the changes ahead, preparing for them, learning from the mistakes and successes of others. This isn’t just about tools and equipment; it’s about training, too. It all starts now. Those who don’t get involved will eventually lose a lot of business to those who do.

Another session focused on Right to Repair. Here’s an opportunity that’s in front of us right now. The Australian Government passed the legislation two years ago, but are workshops taking advantage of the potential this has opened up? Or are we leaving money on the table by ignoring the opportunity of Right to Repair? I urge every Member to check out aasra.com.au and maximise your advantage.

I look forward to talking to Members and Preferred Suppliers about these opportunities, and many more, when I see some of you at the Capricorn Convention, which is being held in Hawaii later this month. The Convention is always a great chance to share and learn from each other. Be sure to come up and say hello and let me know what’s on your mind.

Speaking of opportunities, nominations are open later this month for the SA/NT Director Election. Please consider nominating if you live in that zone.

By the time you read this, the team in Capricorn’s Perth headquarters will have moved into our new offices in Westralia Square, in the heart of the Perth CBD. This marks another exciting milestone in the Capricorn journey. Our growth in Members and Preferred Suppliers over the past few years brought about a need to increase our workforce, which resulted in us outgrowing our West Perth office. Moving into the CBD will ensure we’re able to create and seize more opportunities for Members, whilst attracting and retaining the right talent. As the aftermarket faces this period of great change, Capricorn must embrace an opportunity of our own: It’s time to become a much louder voice for our Members.

David Fraser Group CEO

CONTENTS

CONTENTS

4 8 REASONS TO BECOME A MEMBER DIRECTOR

Helping others, improving your leadership skills and much more!

6 FLOODS NEARLY WIPED OUT SHAHZAD’S BUSINESSES

He shares how Capricorn helped him get back on his feet.

8 CODE OF CONDUCT OVERHAUL

What does this mean for the collision sector?

10 TALKING ABOUT PRICE INCREASES

How to handle a difficult conversation with customers.

13 ARE YOU UNDERCUTTING YOURSELF?

Advice for setting prices that are fair for everyone.

16 CLASSIC/MEMBER RIDE: FORD FALCON XA COUPE

Bosko’s silver bullet is a drag race favourite.

24 WHAT IS THE VALUE OF YOUR TIME?

Ways to avoid time-wasters in your workshop.

8 reasons to join the Board of Directors.

Could being elected to the Capricorn Board as a Member Director be a part of your future? Here are eight reasons you should think about it!

1. Use your talents to help others

As an experienced business leader in the automotive aftermarket, you have valuable insights, skills and talents that can be harnessed for the benefit of over 26,000 Capricorn Members and the industry as a whole.

2. Be a part of something bigger

Most Capricorn Members run small to medium-sized businesses. The Board is an excellent opportunity to gain a closer understanding of how larger businesses operate—gaining insights and experience you’ll be able to apply to your own business.

3. Have a voice at the table where decisions are made

Being a part of the Board is your opportunity to shape Capricorn’s future direction, strategy and governance. Having a direct hand in Capricorn’s ongoing success is something our Directors find extremely rewarding.

4. Improve your leadership and management skills

The skills you will learn working with other Directors on the Board will make you a better business operator. While in the first year you’ll likely be listening and learning, you’ll quickly gain high-level skills in everything from communication to governance.

5. Get the best governance training available, for free

In your first Board term you’ll get to complete the Australian Institute of Company Directors’ Course, which will give you a solid understanding of the knowledge a cooperative Director needs. You’ll also have your own training budget.

6. Broaden your knowledge base

Our Directors will tell you serving on the Board has broadened both their mindset and experience. You will quickly get insights into areas as diverse as strategy, policy, finance, legal, risk and compliance, IT and executive management.

7. Become a leading voice in our industry

It’s an opportunity to step up to become a voice for your state, for your region, for businesses and business owners like you. It gives you a platform to be heard, to listen, to drive change, to make a difference. It is a chance to lead.

8.

Challenge yourself

Chances are you’re very comfortable running your business. You’re very good at it and your business is successful. A seat on the Capricorn Board is an opportunity to step outside your comfort zone while doing something that benefits the industry you love.

2024 SA/NT Capricorn Director Election

This year, Capricorn is looking for an energetic and passionate Member to join our board of directors to represent the South Australia/Northern Territory (SA/NT) zone. It’s a perfect opportunity to further contribute to the automotive industry and experience all the positives outlined above!

Nominations open: Tuesday, 21 May 2024 8am (AWST)

Nominations Close: Tuesday, 18 June 2024 5pm (AWST)

Shahzad’s HELPED SAVE The decision that

Member grateful he kept the flood protection* he very nearly cancelled.

It’s difficult to imagine the impact on your life, your family, and your business, of two catastrophic floods sweeping through your community within a month of each other. But in March 2022, that’s exactly what happened to people living in Lismore, in the Northern River region of New South Wales—including Capricorn Member Shahzad Rana, who owns three service station businesses in and around Lismore.

The first flood in early March—described as a “once in 500-year event”—saw floodwater levels in Lismore rise 14.4 metres. Water collected in Lismore like a basin, as torrential rain hammered down across vast areas of NSW and Queensland, before making its way towards the coast, leaving utter devastation in its wake. Four weeks later the clean-up was barely underway when the evacuation order was given again, as more heavy rainfall caused the city’s river levee to overflow and the city centre to flood yet again. The floods— which also affected hundreds of communities beyond Lismore—were the most expensive natural disaster in Australian history, according to the Insurance Council of Australia.

For Shahzad, who had three business sites impacted, the scale of the flooding was devastating.

“We’ve got a mezzanine floor and if a flood is coming, we put everything up there,” he said.

“All night we packed up; I put all my computer equipment, everything up there. My staff were great. We never thought the flood was going to be that high.”

It wasn’t enough. The water rose too high.

“I was so distressed,” Shahzad said. “I knew everything was gone; I was going to have to start everything from new. There was a time when I thought I was going to throw in the towel. All three sites were completely destroyed.”

Shahzad estimates his bill for the three sites came to $3.5 million. It was six months before his first site could reopen. The third site was offline for 18 months. Shahzad said he cursed himself for not

having taken out business interruption protection, which he had always carried but had let lapse. He said he also felt very grateful to Capricorn Risk Services National Broker Manager, Rob Sedkey.

“At the end of 2021, I got the renewal again and it seemed a little bit pricey, so to reduce the cost I said I was going to take it off,” he said.

“But Rob rang me up explaining to me about La Niña and its effect on unpredictable weather events.” Luckily for Shahzad, he considered his situation and made the decision to renew his flood protection. Shahzad said the team from Capricorn Risk Services called him after the flood to ask what help he needed, before he’d even thought to call them himself. Once the water had subsided, the Capricorn Risk Services team organised an assessor, who was able to arrange some emergency approvals.

Despite quick action, getting everything back up and running has been a slow process.

“It’s been a very stressful and demanding period for me,” Shahzad said. “I’m trying to run a business but then I’ve also become a project manager and a supervisor. As you can imagine it’s been very difficult to get trades, so I’ve been paying tradesmen to come from the Gold Coast, paying for fuel and travel time, and whatever, just to get to this point.”

Shahzad said he didn’t want any business owner to go through what he had experienced but urged Capricorn Members to make sure they had all the necessary protection. “They were very generous and understanding,” he said."I’m a longstanding Member so I appreciate what Capricorn did for me.”

With natural disasters becoming more frequent, it’s never been more important to have your business premises properly protected. Contact Capricorn Risk Services today to find out more about the protection you need to give yourself peace of mind.

MOTOR VEHICLE INSURANCE AND REPAIR INDUSTRY CODE OF CONDUCT SET FOR OVERHAUL

An overhaul of the rules that govern the collision repair sector is underway, with the proposed changes set to have a significant impact on Members operating panel and paint businesses.

Last year the Motor Vehicle Insurance and Repair Industry Code of Conduct Committee commissioned former Australian Competition and Consumer Commission deputy head Dr Michael Schaper to review the code, which provides a legal framework for the interactions between repairers and insurers. The code was designed to address power imbalances in these relationships and provide a structure for dispute resolution.

The Motor Vehicle Insurance and Repair Industry Code of Conduct, which has been around since 2006 and is periodically updated, is mandatory in New South Wales and South Australia and voluntary in other states and territories—although it may soon become mandatory in Tasmania. Dr Schaper’s review recommended sweeping changes across three major areas: communication, governance and compliance, and dispute resolution.

Communications-related recommendations included making the code easier to read and to follow by simplifying the language, improving industry awareness of the code, and making the code’s website—which is the portal for dispute resolution lodgements—much more user-friendly.

In the area of governance, Dr Schaper recommended appointing an independent chair and deputy chair, incorporating the Code Administration Committee as a formal legal entity, and reviewing the code more frequently. Other recommendations included clarifying and strengthening the rules around dispute resolution—like shortening time frames for written acknowledgements for receipts of a dispute and removing the compulsory requirement for a written report for all mediations—working more closely with regulators and introducing sanctions for breaches of the code, including the ability to monitor compliance and to kick noncompliant parties out of the code. All new membership applications would also need to be approved by the committee.

In January, Motor Vehicle Insurance and Repair Industry Chairman, Stephen Jenkins, said the committee had finalised a brief for a rewriting of the code with simplified (but legally rigorous) language and had sought legal advice on implementing the various recommendations.

It’s unclear whether all 15 of Dr Schaper’s recommendations will be implemented and, if not, which ones will make it into the final revised code. It’s also unclear how long the revision and rewriting process will take.

While the code is regularly reviewed, this review was significant because it comes not only at a time of significant change for the repair sector— with increased automation and AI—but at a time when the number of parties using the code has been in decline for several years. In 2018 there were 343 dispute resolution lodgements under the code. In 2022, there were just 76.

The review is designed to make the code both stronger (giving it more “teeth”) and more relevant, while also making it generally easier to understand.

Dr Schaper’s recommendations were made following extensive interviews with people across the industry.

For more information about the Code of Conduct or to become a Signatory visit abrcode.com.au

How to talk to your customers about price increases

The cost of doing business in the automotive aftermarket is increasing. Parts are more expensive. The skills shortage has seen our wages bills grow. Equipment, software and diagnostic tools are all becoming more expensive. For our businesses to remain viable and profitable, the reality is that at some point we must raise our prices.

That’s something we know some Members are reluctant to do, because it means having a difficult conversation with customers. So, what’s the best way to talk to customers about price rises so you keep them onside and keep them coming back?

Chris Smoje is a Perth-based customer service expert. He said he considers it a good sign when workshop owners are concerned about putting up their prices “because it shows that they’re truly thinking about their customers when they make such big decisions.”

Give advance notice

He recommends giving your customers advance notice of the price increases, so they can prepare themselves and budget accordingly.

“Customers don’t always know how much ‘cost price’ is, or what profit margins exist, so the biggest mistake is just making a price increase sudden and cold,” Chris said. “Then, when a customer merely questions the increase (because it doesn’t make sense in their mind), the business owner takes it as them challenging or disagreeing with it, which can turn the conversation more adversarial than it needs to be.”

Informing customers two or three months ahead of a price increase is appropriate (you don’t want to give too much notice or the message might either be forgotten or, worse, the price increase might come across as unnecessary or gouging).

Some businesses schedule regular (annual) price increases, often at the start of the financial year, which customers learn to expect.

Announce it in your regular marketing

Chris said it was best not to inform the customer of price rises in their “your service is due” email, but instead to include it in your regular/seasonal marketing communications.

“Doing it respectfully is important, but don’t come across passively,” Chris said. “You’re not checking that customers are OK with the price increase.”

Don’t over-explain

Another common mistake is giving customers too much information.

“Even if you feel that open transparency is best, it’s likely that most customers will try to pick holes in any information you give, and even try to make comparisons to competitors (who might not even really be competitors),” Chris said. So, you might just say labour costs have gone up, or parts costs have risen, but not dive deeper.

But how do you get the wording right? Chris recommends checking communications about price increases from your own suppliers to see which ones you thought found the balance, and copy their format.

Give good customer service

Don’t forget to deliver on your customer service promise beyond the price increase.

“When price increases are made, it is essential to make sure that your service offering doesn’t lapse,”

Chris said. That is, if you’re charging more, provide an equal or an improved service, not less service, than your customers are used to (don’t cut the “nice to haves” like car washing at the same time as increasing prices).

Ask for feedback

Lastly, Chris recommends tracking customer sentiment about your new pricing.

“Once the price increase has been made, it’s important to incorporate ‘value for money’ questions in your feedback questionnaire,” he said.

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UNDERCUTTING ARE YOU YOURSELF?

Advice for setting prices that are fair for everyone.

Are you charging the “going rate” for your services?

It’s a common enough practice: looking at the market to see what your competitors are charging for something and then charging either roughly the same, or even slightly undercutting them. Take labour rates, for example. In 2022, when our State of the Nation Survey asked Members how they set their labour rates, 54% said they checked what similar businesses were charging. When it came to pricing parts, 45% of Members said they set a standard percentage mark-up on all parts and 40% said they matched the retail price.

At the time, we asked automotive business coach Rachael Evans from The Workshop Whisperer what she thought of these practices. It’s fair to say they raised some alarm bells. She said workshop owners needed to price “based on your own costs of running your business and what you know you need (to earn) to get yourself to the gross profit benchmark on every job”.

In other words, “the going rate” is irrelevant because it’s not specific to your business, doesn’t take into account the amount you need to make to break even, and certainly doesn’t consider the level of profit you need to make. All it reflects is what other workshop owners believe customers are willing to pay.

This pricing strategy should be reassessed for several reasons. Firstly, it could be negatively impacting the sustainability of your business by creating unnecessarily

fine profit margins. Secondly, as Rachael said in 2022: “(If) you are not pricing every job based on that job’s particulars, you will continue to leave money on the table”. And thirdly, as British business coach Gavin Ingram—author of Motivate People—points out, “pricing should always be based on value, not what your clients want to pay”.

“Your job is to prove that everything is not equal,” he wrote in the 2017 blog Recite After Me, "Pricing Is About Value. Period." on recruitmentjuice.com/blog.

“Prove your worth, carve your niche in the market. You are trying to run a business; you should charge based on the value that you add to your clients.”

Which begs the response, “but surely, I can’t charge more than the market considers ‘a fair price’?” As Gavin argues, people will pay an extraordinary range of prices for the same bottled water based on whether they’re in a supermarket, a corner shop, a fancy restaurant, or an airport.

“Fair has nothing to do with pricing,” Gavin says. “Who the heck defines what fair is? Your client? That’s not fair.”

That tallies with Rachael’s comments, again from 2022. She said workshop owners “fear that, ‘if I actually priced this to make a profit, I’d price myself out of the market’.”

“Most of the time that fear is unfounded,” she said. “If you’re a good general repairer, 80% of your customer base is going to trust

the work you do and the price you charge. As long as you are fair, and not being exorbitant.

“Being fair means being fair to both yourself as the business owner and to the customer. We’re not in business to do favours to people.”

She also said it’s common for workshop owners to “price with their own wallets” because they know what they’d be willing to pay themselves—forgetting that the customer is paying for the convenience of getting a job done properly the first time.

So, how do you set pricing that balances creating sustainable, profitable business that creates value for customers at a price point they’re willing to pay? There are a range of options.

Flat-rate pricing model

You might consider a flat-rate pricing model, where (once you know your break-even point) you set fixed costs to each kind of repair job, assuming a standard time frame for completing the work, and charge the customer a pre-agreed price no matter how long the job takes. Customers like this model because they know their costs up-front. For the business, it provides a predictable flow of revenue, although it can pile on the pressure if a job blows out. It can also give a little motivation to your technicians, who are paid based on estimated times rather than actual hours worked.

Hourly pricing model

You could also opt for an hourly pricing model, which means your costs are covered if a repair blows out, as customers pay for the labour and material used. This does create room for conflict though, so customer communication is key. It also removes time constraints on your technicians, allowing them to focus on doing a quality job, but if they take more time this can also limit your earning potential.

Which should you choose? It comes back to your own goals in business, your relationship with your customers, and the value promise you’re making to them.

Whichever model you choose, at least you’ll be set up for long-term business sustainability—because your profit margins will be based on informed pricing decisions, not on “the going rate”.

Ford Falcon

What’s it like driving a 1973 XA Ford Falcon Coupe down a drag track?

”The buzz you get is unreal.,” says Josh Boscovich. “I’m changing gears in the air. It’s that cool.”

And Josh would know. He’s been doing exactly that since 2002 when, as a 19-year-old apprentice, he bought an old XA as a roller with a dream of following his father, John, into the family sport of drag racing.

“Dad had an XD streetcar—I think an ’82, maybe ’83,” Josh explains. “It was the quickest streetcar back then. It was beating race cars. I think it ran 11.2 (seconds) or 11.1 in ’84, which is pretty quick, even by today’s standards, in a full-size Falcon.”

“I couldn’t find an XD, so I settled for an XF, which I mini-tubbed, rollcaged, and we were at the process of building the motor. Then we went to Willowbank, which is the Winter Nationals in Ipswich, in Queensland, and I spotted this XA for sale on a trailer. “And that was it. It was all over. I needed it. I wanted it. So, I struck a deal with the bloke. It turned out he actually knew my dad from a long time ago. I only paid about 16 grand for it.”

The Falcon XA was Ford Australia’s first locally designed and built car, rather than a reworked US model. It was created in 1972 as a competitor to Holden’s Monaro and it quickly became an Aussie favourite—helping the Falcon name live on Down Under long after it had been retired in America.

Josh—a Capricorn Member who owns Bosko Mobile Mechanical in Wandandian, in the Shoalhaven, in New South Wales—spent two years reconfiguring the cockpit, fitting large rear slicks, installing wheelie bars, upgrading the safety of the chassis, designing a new rear wing for downforce, putting in a new fuel tank and getting the body sprayed black and orange. In June 2004 Josh took the XA to the Western

Sydney International Dragway (now Eastern Creek Speedway), where it ran in the Super Sedan bracket with a 358 Cleveland 4V naturally aspirated tunnel ram and a T400 transmission. It carried his dad’s old racing number, 551.

Over the next two decades, the black and orange XA would become a familiar sight at Australian drag races, getting steadily faster and performing better as Josh continued to tinker and improve the car. He installed a nitrous system, then upgraded it. The 358 became a 383, then a 393. After regularly top qualifying in the Super Sedans, he stepped up to the Top Sportsman category. In 2019, it was finally time to upgrade the recognisable black and orange paint job for something more modern—and it was here that the XA’s story very nearly came to a tragic end.

On 26 November 2019, a lightning strike started the Currowan bushfire. It would burn for 74 days, destroying almost 500,000 hectares and 312 homes, damaging another 173 houses and killing three people.

“I’m on two acres and the fire came up to the fence line of the property behind mine,” Josh said. “We’re talking fire as high as the trees, fireballs; it was bizarre.”

The fire coincided with a major overhaul of the XA.

“The car was in pieces. Parts of it were here in the workshop; parts of it were in the trailer; the roof and quarters were at a mate’s place; I had the chassis here at the shop. I started loading everything and the fire changed direction and went towards my mate’s place. His car was already loaded and he said, ‘what do you want to do with yours?’ Well, all the front end was on the hoist. I said, ‘leave it there’. For two weeks we were walking on eggshells about whether the fire was going to hit us. I was like, ‘just hurry and burn it, will you?’ But, in the end, luckily, it didn’t.”

The fire changed direction again, turning towards Bateman’s Bay, and saving the XA.

Then Covid hit. With drag events cancelled, Josh had plenty of time to work on the vehicle and refresh its look. He upgraded again, to a 410-cubic-inch Fontana block coupled with a four-speed dump clutch Lenco transmission and added a nitrous fogger system. For the upgrade to the paint job, Josh chose a silver that matched his Ford Ranger work truck.

It was a very classy makeover— turning Josh’s beloved XA into a silver bullet on the track. In 2021 the XA came runner-up in the Outlaw class at Grudge Kings.

“We PB’d all day, which was an achievement in itself,” Josh said.

Two years later Josh (together with his small team, including wife Nicole and his 13-year-old twin daughters) won the Nitro Champs and Round 4 Track Champs on a very competitive race day, with no wins from red lights or breakouts.

“After 19 years of racing, it was the one we had worked for,” he said. “Sure, we had won a few accolades before but none in our bracket and none with such a competitive field of fellow racers.”

Despite the victory, Josh is still tinkering with improvements. There’s plenty of racing left in both the XA and in Josh himself.

“I just like playing with,” he said. “I love to know how it works, why it works and what result you get. I’ve always done everything myself. If something’s not right, I’ll pull it apart, check it. It’s like therapy—but you’ve got to be crazy to enjoy this type of therapy. But I love it. I grew up racing.”

Ford Falcon

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PREFERRED SUPPLIER PROFILES

24

BLACKWOODS AUSTRALIA

Established in 1878 as a specialised marine industry supplier, Blackwoods are an Australianowned company offering end-toend Maintenance Repair Operations (MRO) and Industrial Safety solutions. They cater to businesses of all sizes across Australia and New Zealand, delivering high quality service from product supply to comprehensive support, backed by extensive industry sector expertise.

Blackwoods diverse reach spans various sectors, serving everyone from small enterprises to national and multinational businesses. They’re committed to providing accessible, continuous and effective services and solutions. Leveraging global sourcing capabilities and strategic partnerships with worldclass brands and suppliers, they streamline and simplify procurement for Capricorn Members.

JAS OCEANIA AUSTRALIA

Founded in 2005, JAS Oceania have grown to become one of the largest suppliers of automotive electrical, air conditioning and lighting products in the Australian aftermarket, servicing customers from 37 locations. Their comprehensive range includes over 25,000 parts, ranging from starter motors, alternators, rotating electrical components, air conditioning, climate control parts, lighting and accessory products.

Their core range includes marketleading rotating units for passenger, light commercial, agricultural and earthmoving vehicles, plus industrial, heavy-duty and marine applications and is supported by an extensive aftermarket program.

The JAS Oceania team have years of industry experience and are locals who know the needs of their customers. With many of them being ex-auto electricians, Members can rely on their expertise to get the parts they need.

blackwoods.com.au

jasoceania.com.au

YEARS PREFERRED SUPPLIER

PREFERRED SUPPLIER PROFILES

MORNINGTON NISSAN

Mornington Nissan is a trusted supplier of genuine Nissan parts and accessories on the Mornington Peninsula. With over two decades of local presence and 30 years of Nissan parts expertise, they joined Capricorn in 2021, solidifying their commitment to quality and customer satisfaction. Their Parts and Accessories department guarantees peace of mind with genuine Nissan products that are rigorously tested for quality and backed by a one-year/20,000km nation-wide warranty. Mornington Nissan stands out with a competitive pricing and a large parts availability for Nissan vehicles. If a part is not in stock, they go the extra mile to source it promptly to ensure Members can run their business smoothly.

PATTERSON CHENEY

morningtonnissan.com.au

27

Patterson Cheney provides genuine parts at a great price, delivered fast. A proud family-owned business in operation since 1915, they're one of largest Victorian-based dealership groups. Patterson Cheney provides a "one-stop shop" for mechanical, collision and commercial parts and stock a range of the world's leading automotive brands, including Isuzu, Mercedes-Benz, Toyota, Mahindra, AC Delco and more.

You can rely on their highly experienced and friendly team of parts interpreters that operate out of their conveniently located Distribution Centre in Dandenong. Parts are delivered via a large fleet of vans who service Metropolitan Melbourne with twice-daily runs and regional Victoria with daily runs. A proud Capricorn Preferred Supplier since 1996, you can look to Patterson Cheney for expertise and service. pattersoncheney.com.au

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What is the value of your time?

by Geoff Mutton

The old saying ‘Time is money’ has been around since the early 1700s and was intended to convey the monetary cost of laziness. In modern business the saying still rings true, and aftermarket workshops could do themselves a favour by adopting it as part of their financial strategy.

In the modern context, it’s not laziness that is being measured. Most workshops are working flat out, so the saying is being applied to the value placed on time being worked by everyone on the floor.

The less the workshop management values labour time, the more likely that time is being given away free, and even worse, time-wasting tasks could be infiltrating the daily routine.

Here is a list of common time-wasters, along with ways to avoid them.

The right jobs for the right team

The natural tendency is to book jobs in on a first-in, first-served basis.

If diagnostic work and timing belts on late model vehicles fill the diary, it will be likely that junior employees will be left with little productive work to do.

But if your workshop is busy enough to warrant bookings in advance, start allocating work to days that will match the technicians you have on hand. This could mean that time might be available for a service tomorrow that an apprentice can handle, while a more complex repair might have to wait a week until a more qualified technician is available.

Diagnosing is not free

Time spent diagnosing jobs for free is still a huge killer of time. It is acknowledged that on any given day, some problems will be looked at, free of charge. This is perfectly normal and will often help to secure a booking. But a line must be drawn to

differentiate between a ‘quick look’ and diagnostic work that must be charged.

Diagnostic work needs to be treated like any other service provided by the workshop. A brake fluid flush wouldn’t be done for free, so why should diagnosing a customer’s problem be done for free? Diagnosing is part of your stock in trade and is the same as a visit to your local doctor — do you ask for a quick free check-up before the prescription is written?

After the initial quick look, a financial commitment needs to be secured before any further work begins. This methodology needs to be applied to standalone diagnostic problems as well as vehicle servicing when the customer introduces a new problem that needs looking at. A service is a service, and the book time taken to perform that service does not accommodate additional time to investigate another problem, no matter how simple it might be.

Saying no isn’t bad

No technician can do every type of job on every model of car. Any attempt to do so is a recipe for disaster, and nothing kills time like a job gone wrong. Many highly skilled workshops have learnt to say no and will happily refer work to associates and other workshops. Be realistic about the work your workshop does well, and outsource those jobs which are not your bag. The customer will appreciate your honesty, and you will be doing a favour for a kindred workshop.

A quote is not an answer to everything

Completing a detailed quote for every enquiry or repair is simply not sustainable. That doesn’t mean accusing every customer of being a price shopper, but it will save a lot of time to filter out those who will most likely go ahead. This is easier done over the phone or in person, rather than online.

By all means provide a price guideline, but tighten it up with a final quote when the customer gives a verbal commitment to go ahead.

Review vehicle history before you start

When customers drop off their vehicle it is imperative that previous history is reviewed and discussed. Very often, items mentioned last time could well be overdue.

Technician productivity will be significantly boosted if the go-ahead is given on additional items before technicians start the job, rather than having to report the same problem again and then wait for customer approval or parts before the job can be completed.

Waiting on parts for pre-booked jobs

Standing around waiting for parts is a good time-waster. There are exceptions, but time wasted waiting for parts could be eliminated for most pre-booked jobs. This means reviewing the booking diary at least 48 hours ahead, so that parts can be ordered to arrive on time.

Update the admin

Every job takes a significant amount of admin time, from booking to invoicing. The advances in specialised automotive software programs have made this job easier and the programs are much more user friendly than they once were.

Electronic diaries and job cards may not be perfect and they won’t offer the same flexibility as the paper version, but gains in efficiency far outweigh the negatives.

If your workshop still runs on a paper diary and job cards, you are encouraged to try the electronic versions. Those who go electronic rarely revert to the paper version.

Micromanaging employees

Micromanaging may seem tempting, but it can do more harm than good and it is a time-waster.

Owners and managers no doubt want things done a certain way, but a workshop team will not respond well if they are constantly being monitored. Let them do the job you hired them for.

Time is the commodity every workshop sells, so the more you sell the more profitable the workshop will be. Hard work is an essential part of the commodity but it’s more about working smarter and eliminating time-wasting tasks. Start thinking like a lawyer or a doctor and start valuing your time. Your bank balance will be pleased with the results.

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