Chief EZliner Express

I talked  with Mike Ramey of M.R.E Inc recently about my theory of replacing an aging frame machine with a new one or purchasing several small pulling platforms similar to Chief Automotive's EZLiner Express instead.   You can purchase about three of the small pulling platforms for the price of one frame machine.  The design of new vehicles utilizes a crush zone type construction so mostly what is happening in shops now is jigging vehicles, doing slight pulls, removing the damaged metal and replacing the structure with new pieces.  There isn't much heavy pulling going on anymore and having one or two frame machines in a shop has always created a choke-point or a retraint in production flow.   Having small pulling platforms which allows a vehicle to have the affected structure removed and replaced right in the technician's stall is a definite time saver.  There is no longer a need to move the vehicle to the frame machine.   You will still need one full-size frame machine for pick-ups and SUV's but your techinicians will enjoy having pulling capabilities right in their stall with their individual platforms and you will notice a decrease in your cycle time

Looking for Good Help?

I know finding good technicians is difficult however, it is not impossible.   The number of available technicians is very low and most are content in their current employment.  Ads have not proven to be fruitful in most markets, there is no rhyme or reason why, they are just not working and they are very expensive.  For the same money you can generate some very valuable leads by giving incentives to the people around you.

Using people around you as recruiter’s works well because you generally get a higher quality applicant.  Technicians know other technicians and will tell you about ones they would want to work beside.  Offering your technicians a bonus for bringing you a technician benefits both of you.  They work to find a technician that they respect and you get a good technician. 

 Another source is the tool man, they are in shops all the time and you would be amazed on how well they will recruit for you for a little cash.  Unlike a paint jobber who has loyalty to the shops they support, the tool man works for the technicians and he needs them to be employed.  This gives him an added incentive to assist you. 

It is hard to offer technicians a higher hourly rate as a lure, our industry has polluted those waters by offering technicians a $1 more to a point where most technicians are earning 50% of the door rate.  Using a sign-on bonus is a way to provide the appeal without costing you a decrease in labor gross profit. 

I recommend phasing in the bonus, 25 - 50% at time of hire and the remainder after six months.  I would create bonuses equal to what you have been paying in employment ads, but even if you end up putting out a little more it will be because you have actually hired somebody, not just paid for ads.

Continous Improvement

We are almost to the end of January and I hope everybody has had a chance to reel in their 2011 numbers.  While those numbers are fresh in your mind I encourage you to look them over and pick three that you feel you can improve on.  Then unlike the New Year’s resolutions you made just under a month ago, look at these numbers with some scrutiny and develop a plan to improve them throughout 2012.   What numbers you select will be different from each other but the ones I like to look at every year on the financial side are; Paint Material Sales per Flag Hour, Overhead Expense as a percentage of Sales, and Total Gross Profit, then on the operations side I like to check closing ratios, CSI scores, and Technician Production percentages.  Once you pick your numbers find out what they would be if you increased them by 1%.  Those that know me well have heard me talk about the power of 1, the number is small by itself but when it is used as a multiplier the magic begins. Let’s say your total gross profit is 42%, what would that dollar amount look like it   if your gross profit was 43%?  What would your closing ratio look like if it was 78% instead of 77%?  I think you will find that increasing any number you look at by 1% will improve your bottom line substantially.