Do You Know the Fourth Labor Type? (Service Drive Revolution)

Foreign.

Welcome everybody to Service Drive Revolution, the show for anybody who has a service drive. I'm Chris, this is Jeremy. We are here to serve you. We have a great show planned for you today. We are going to teach you about a fourth labor type that you probably aren't using correctly. Maybe didn't even know about.

Correct.

But we're going to help you understand how to create more profit through this labor type and how to price it, how to use it, how to do.

It, how to not be afraid of.

It, not be afraid of it. How to make it happen. We also have questions from you, the audience that will be very, very fun. Don Retro is going to come back. We've had some good feedback on our ex con drunk Don.

Where did you find him at crazy. Absolutely. I think he crawled out of that chair.

Did you. So this is weeks ago now, but did you see Bill Murray in the super bowl commercial with the Jeep?

Loved that commercial. Absolutely. Did they borrow your Jeep for the first. Right.

It looks like the Jeep from the service manager challenge. So if you know I'm giving away my Jeep Gladiator. I when first time I saw that that thing was coming out, I wanted to have one. I love that thing. I'm actually sad to give it away, but anybody in our, in our coaching group or our on demand has a chance to win it. It's basically the contest is you improving your net and your effective labor rate and customer satisfaction. You, you know you can win it. It's 90 days of your past against 90 days of your future.

Nice.

Really good stuff. So yeah, I love that commercial. I should put that on the website if, if I can. But it was fun. They and if how they got built.

To do that if they're not in the coaching yet, do they still have time to get into the contest and get enough of the data in?

Yep. You better hurry for this year.

Absolutely. When's it you give it away at the end of the year.

Yeah. Well, I think we give it away in August at Top Dog, which I.

Am really excited about Top Dog this year. You had me come in last year which was just phenomenal. But it's going to be fun. It's going to explode. It's going to.

We're working on the speakers now. Well, there'll be some announcements coming up. Yeah. So there's this guy in Florida, Rick Trey. Trey Word cars. He's been collecting since 1973. He has 225 cars spanning 80 model years and he bought a Walmart to house them all. It's a hundred thousand square foot Walmart to house him. I would love to have him on as a guest and talk to him if we can track him down. But he's got every model of Corvette from 1954 to 1970, everyone. How fun is that? Like to have a Walmart to house all your cars?

I build a go kart track in it.

That's crazy.

That's awesome.

Yeah. So fun. So that's kind of a cool thing. We'll try to see if we can get him to call in and tell us about it.

But that.

That would be it. And it's open to the public. It would be fun to. To see that down there. Jeremy, what do you say we go to questions now? And our buddy, Don Rito.

So good to see Don Rito.

How you doing, Don?

I'm doing good. I'm wondering. I've been here a while, Chris. When am I gonna get a raise?

You've been here two weeks, my friend. This is your third week. Remember what I was.

Remember he can't go to sales?

Yeah. What I was thinking, Don, is you should start paying me for how many times your parole officer calls me.

That doesn't sound. That does not sound fair at all.

Speechless. What do you have to say with that?

What kind of raise do you think you should get?

I mean, I kind of retract it now. If this is the route, the way that this conversation is going, I mean, what.

What happens if you leave and you don't have employment? Don't you go back to jail?

Yes.

Yeah. So let's. Let's. Why don't we figure out how you can be of more use around here and then talk about a raise. So far, the only thing we have you doing is reading a question once a week.

Speaking of which, let's go to this week's questions.

Well, no, maybe. Maybe Jeremy needs help at his shop. Would. Do you think that don't make a good advisor? He went to jail for selling maintenance that customers didn't need. So I don't know if you.

Where. Where is your shop?

Have you learned your lesson well?

Really quick? Where. Where is your shop located?

Hisperia, California.

That seems like a very long commute, especially considering that I cannot drive a vehicle.

You know what I always say, Don?

What do you always say, Chris?

If you wouldn't sell it to your mom, don't sell it to a customer.

This is great advice that I wish I had learned long before I went to prison.

Yeah, I'm sure. Okay, Go to the question.

Let's Go to the question. This One comes from LinkedIn. Chris, I know you're a busy guy, but I need your advice. Recently I got a huge uplift in warranty parts marked up from 40 over cost to 75.4%. To avoid blanket massive performance free pay raises for all, I need to change advisors pay plans from off pure gross to something else. Haven't changed in 5 years. Low turnover, happy employees, customer attention, etc. Hate to do it, but perhaps customer pay ELR times 0.10 times labor hours plus 10% customer pay, part sales plus a 10% CSI bonus. Any ideas that won't have to be redone later?

Yeah, make. Make the. Make the pay plan as confusing as possible. That's always my strategy.

So do you know in some states, the. The states have passed laws that the manufacturers have to pay certain percentages? So it kind of has been a thing in Florida, but now other states have passed it. So you're getting an influx in gross profit on parts.

Okay.

You gotta wonder though, how long the manufacturers can sustain that without raising. You know it's gonna go into the cost of the car because it, it affects their warranty per car. Right. Which is something they build into the cost of the car.

So Volkswagen went through this in the early 2000s with the mass airflows. So when they were doing a lot of warranties with the mass airflow, the part was about a 600 part. So then also they were doing so many the. They changed the list price on the part to $32. Right?

Yeah. BMW used to do that too. You would know a recall was coming when they lowered the price.

Exactly right. So they'll do this.

Yeah. So that's all part of it. So here's, here's the thing in our. Obviously you're not in our service manager university, because in there we give you a pay plan and we teach you how to make a pay plan. I think that your, your idea is a little bit off in that I pay advisors on parts and labor sales. I do not pay them on gross. Gross is confusing. I don't. I know that a bunch of you went to a 20 group and came back and said, let's pay advisors on gross. Advisors don't control gross. They don't hire techs. You confuse them. There's all kinds of issues that it causes. So I don't know. 50% of their pay would be on parts and labor sales. 30% of their pay would be on CSI, and then I would have an ELR bonus and a customer pay Bonus is kind of how. How I would do it. So that's the basis. If you, if you get in there and are on Demand, it's only $250 a month. You can train your advisors, your tax everybody on pet the dog, customer service training, and then service manager universities in there so you can learn pay plans, how to hire techs. You know, there's so much stuff in there, I wouldn't even know where to start to tell you.

Yeah. And I just throw this out there. Change is uncomfortable for anything. So if you're doing anything and you have to rework the pay plan, you know, do your best to think about it as an enhancement. How's it going to help them long term? Because obviously you don't want to upset your entire career.

Yeah, the spirit is good in the question that I don't want to change it again.

Yes, absolutely.

I want to get this right. So, yeah, I think that paying them on sales is better and I agree. Get it right. So do the numbers backwards and forwards and make sure that, you know, you project it out, that sort of thing. But that's what I would do. Good question. Thanks for the question. We'll be sending you some swag, some service driver revolution swag.

Absolutely. What do you think of that question, Don?

I thought it was overly confusing.

I think Don's had a little tequila in his coffee this morning.

Oh, yeah, almost every day.

Oh, yeah, he's. He's putting a little.

He was choking on something there a minute ago.

Don's got a little Irish in it.

Do we have another question, sir?

Yes, we do have another question. This one comes from Joshua. Hi, Chris. Love what you're doing. Just started watching your videos. I have worked at a BMW Mini dealership in the UK for the last five years. We're going international. Chris started off taking booking calls and currently a service advisor. Reading bits of your story. It sounds very familiar to mine. There are a few people in the department who, who do not like my style of advising. They feel I'm far too relaxed with customers for a premium brand and would like me to change my approach. Honestly, my approach gets results and I feel like it makes the customer experience easier and more personal for them as a whole. So my question for you is what's more important? Looking after the customer in a natural, impersonal way that comes easy for me or conforming to dealer standards as this is what they've been doing for years. Thanks, Josh.

Wow, that's a, that's a good question, Josh. In England, I'm Excited to. To send you some swag. I want to see a picture of you in the service driver.

Absolutely.

Shirt and hat over in England.

I don't know. I. I feel like you could accomplish both. Like, you. One thing as an advisor is, like, you got to be coachable. Right. So I don't know the whole story here, but I'm guessing that what they're saying is maybe you're taking too long with each customer. And so I would say that there is probably a happy medium and you should listen to what they want and still achieve what you're good at, which is making friends and petting the dog. Right. So you could do both. So maybe just reframe how you think about it and try to do both. Someday when you're a manager, this will be a subject that you'll have to address as a manager. And so try to see it not just from the perspective of an advisor, but try to understand what is it that they're trying to accomplish and how can I accomplish it? Not losing my gift or what I'm good at, which is connecting with customers and still represent them since they're giving you a paycheck and providing you that opportunity. You know, do both. Right.

I agree. And I. You don't want to be robotic. Right. So I understand that you want your natural personality and style to come out, so. Absolutely. But I think you've got to conform to the culture of the business as to what they're trying to deliver to the clients there, and then bring your own personal style into it as well. I like the fact that you talk about being coachable and. Yeah. So you're a hybrid service advisor now. Great term.

Yeah. But think as a manager, too. Like, think as a leader now. Like, you know what? Would you try to understand the intention of why they're saying that in the spirit of it. And don't take. You don't always have to take it so literal. You can get. You can achieve both.

Yeah. And I always ask specific behavioral questions. What specifically did you notice that I did that? You didn't, like, you know, did I use a slang word? Did I, you know, touch somebody, you know, inappropriately? Like, I don't know, just stuff like that.

I don't know how. Why get accused of touching people inappropriately?

No, but you know what I'm talking about, right? Like, some people are huggers.

Don't tell me. So. So how do you touch them that's inappropriate.

Like, if you give people hugs and they don't want hugs. Stuff like that.

Yeah. You can't do that anymore.

Holy moly. Getting myself in deep water there.

I don't touch anybody anymore. No matter.

Especially with the coronavirus going around out there.

I'm not touching you, bro.

But you understand what I'm talking about with the behavior, correct?

Yeah.

Specifically, was it a word you used? Was it, you know, the way that you talk to somebody, your behavior is what they're getting at and you can change behavior and make it better, so. Great question.

And I think most of the time that the cause of what you're probably getting is that you're taking too long.

Yes.

Right. You need to speed up so you can do both.

Well, if I was a manager. Absolutely. You know, if you're taking 15 to 20 minutes to get the initial write up done, we've got to move that. Move that along. Absolutely.

Yeah. And if I have. If I have 10 advisors in a drive and one guy takes 30 minutes to write up a customer, I can. I can survive. But if I got two advisors and one takes 30 minutes, you're gonna choke out the shop. So you have to take into consideration how many advisors that. That sort of thing too. But. Good question. Thanks.

Absolutely.

Thanks, Don. So we'll come up with a plan for you to get a raise, but there's got to be less laying around and drinking and. And more work. I think that you would be better at asking these questions if you went and worked in Jeremy's drive a little bit.

Yes, absolutely. But do keep in mind that three of my limbs are not functioning, so that does make mobility a little bit.

You can't discriminate against that, Jeremy, you have to, like, provide.

Why would I? I heard a rumor that he's training for a marathon. Don Rito, is that correct? Are you going to run the LA marathon next year?

No. That is a cruel lie.

Who started that rumor?

Thanks, Don. We'll see you again next week.

See you next week. Although I may have to leave the state abruptly. You know how it is.

I don't.

So should we do terms you should know now? What do you think? Are you. Are you feeling good about this new bit? The terms you should know?

Absolutely. I like it.

I think that they're good to cut up and put on YouTube. So if somebody's like, searching like, hey, what is effective labor rate or whatever.

Absolutely.

That this will be out there. Because a lot of terms are misunderstood. Just like the term we're going to talk about today.

Hours per ro, hours per repair order.

This one is one that service providers get beat up on all the time and confused. Okay, where's the confusion come in at?

So if you ask an advisor, most of the time you say, what is the formula for hours per ro? They'll say hours, but it has nothing to do with hours really.

Okay, so the formula, it's a piece of the calculation.

Barely.

Well, you have to have billed hours to calculate it.

Yeah, but it's. Yeah, it's figured on the effective labor, but not the hours. Okay, so it's your labor sales divided by your RO count, divided by your effective labor rate. So let me say that again. Your labor sales.

Oh, I see where you go.

Divided by your effective labor rate divided by the RO count or the RO count by the effective. It doesn't matter what order you do it in, but that gives you your hours per ro. So the. The spirit behind it is more what are you averaging per ticket than it is how many hours.

Right.

Because it also the thing too is like a lot of times you can go into a shop and their effective labor, it's really, really low.

So quick calculation. If I had $20,000 in labor sales divided by 200 ros divided by $100 an hour effective labor rate, I'm averaging one hour per ro.

Yep, that's it. So that's the formula for hours per ro. It does not really have anything to do with shop hours, although effective labor it resent represents.

I like how you calculate that. A lot of shops will take their build hours out of their management program and then divide that by the ros, and then that's how they're calculating their hours per hour. But then they're not looking at the profitability of it, which is designed in the effective labor rate.

Yeah, and you know, a fun thing to do here too is if you really want hours per RO to be immeasurable, which I. It's immeasurable in some of our advisor competitions, but I never put it in pay plans.

Okay.

Because I don't want advisors walking by an oil change or a tire rotation.

Come on. They never do that.

They would do that.

Larry.

I don't put it in pay plans. But the. You could figure it instead of effective. You could figure it on your posted too. So, like, if your posted labor, it's 120, but your ELR is 89. Just for fun, figure it on your posted and see what happens. It makes it.

We used to lose 20% of our pay if we weren't within 5% of.

The posted rate at Commonwealth. Volkswagen. Those dirty dogs.

Oh, no, it was a Penske store. Now it is, Absolutely.

Did you know that?

I did. Speaking of effective labor, I had a coaching call this week and we were looking at the effective labor rate.

Well, who is this coaching call with?

One of our clients up in Nova Scotia.

They don't have a name. Nova Scotia, Canada.

Yeah.

Did they say sorry a lot?

No, they're great people. But labor rates are interesting. Right. So, like out here on the West coast were 135 to 150, 200 bucks an hour. No problem. They're still at 83 an hour. So I was looking at some numbers and I'm like, okay, number one, we need to do a labor survey because I just feel that that labor rate's a little low. Just my personal opinion. But then the effective labor rate for the month was down at 72 an hour. So what's happening to the profitability of the store? So I'm looking at it going down the drain. Right. If I think the labor rate's low already and we're getting 88% of what we should get on the effective rate, we're giving money away. So it's just a small calculation. We're estimating these tickets to move that number up. And realistically, customers don't even notice the additional labor charge on a ticket. They're going to say yes anyways. It's not about. This is not about fleecing customers or overcharging them. It's about getting the shop fairly compensated for the labor that we're providing, which is a specialized skill and a specialized team. We have to protect that labor today. We can't give it away.

I agree. I mean, what does it cost to get your computer worked on?

Depends on if you have a Mac or a PC.

Either one, though, it's over. It's like 150 bucks an hour.

Well, plumbing, for instance. How much has plumbing changed in the last 40 years?

I don't know. How much?

Not very much. They use PEX now or plastic pipes. And I mean, they've always used that, but.

Oh, but how much is it an hour?

Some are 150 to 200 bucks an hour.

Yeah. So you, you know, it's all in your head. Correct.

Mindset.

Who's the prime minister in Canada?

I have no idea.

Jordan Peterson.

Okay. Have you watched the news up there? I mean, when you go to Canada, it's very fascinating to turn the news on because they totally make fun of Americans.

What's fascinating to me is how much we're. Our politics are in the news up there.

That's One of the only things they have to talk about besides the snow outside.

We're entertaining to them. We are trump.

Of course, they do play a real sport up there, which is hockey. So we could talk about that.

That's a real sport.

It is.

What are you trying to say? Soccer isn't real or what? What. What sport are you picking on by.

Saying I'm not picking on any sport?

Because who said hockey wasn't?

Well, hold on. I got to be careful because this conversation is probably going to go down the path where you start to play. Point at my dark spot on my soul or my soul.

That really hurt your feelings, didn't it?

I thought about that all winter. Yeah.

What do you think I meant about a dark spot in your soul?

I. I don't know. Maybe you were talking.

I don't remember the context. What were we talking about?

Oh, I don't know. Religion and politics, something like that.

Oh, here we go.

Absolutely. Okay.

What's the name of that independent chain.

Of Christians Brothers Automotive?

How many locations do they have?

I think they have over 200 now.

We should start one just called do the Right Thing.

My friend Chris has Golden Rule Auto Care. Two locations in Dallas, Texas. Chris doing a great job out there. Keep it up.

Is that a Christian based thing?

No, it's just the right thing.

Is he a Satanist?

We rock out together a lot. We should have him on the show. He's a great musician. He's. He used to be in a rock band called. His band was called Monkey Shine.

Monkey Shine?

Yeah. They're pretty good. Chris a good singer?

I don't know that I support that name. Monkey Shine. What does Monkey Shine mean? I don't know.

We'll have to bring Chris on the show and ask him.

What do you think it means?

I could call him right now and find out.

When I say Monkey Shine, what's the first thing that comes to mind?

I think everybody in the band.

So what comes to mind when I see Monkey Moonshine. Oh, okay. Well, that's okay.

I was thinking of all the band members having bald heads and their heads.

Shined and they're monkeys.

Yeah.

They're referring to themselves.

Yes. Let's talk about something else now.

Let's talk about the secret fourth labor type.

This one is really growing legs in the industry. Not just in the independent, but in dealerships as well. So do you want to tell them what it is? There's four different types of labor that we sell. What are they?

They are competitive. So that would be like your oil changes Things that drive traffic.

Yep.

Get people in the door.

Absolutely.

There's maintenance.

Yep.

There's repair.

Yep.

And the fourth one is diagnostic labor.

That's something I learned from, from Jeremy is.

Yeah, go ahead. Like I, I, I totally learned this from you and I think it's great.

Well, diagnostic services, we all provide it. And realistically now if you are a repair shop or a repair dealership and you get a lot of repairs, repairs, your technicians are doing diagnostic services all day long. Now the challenge with diagnostic services, when we're generating the diagnostic labor, what are we not generating revenue wise for the shop?

Parts.

Parts. Because when the diagnostic. Yeah, you gotta, Yeah, I should give you a sticker, right. Or a gold star. When your technician is performing the diagnostic service, there's no parts labor generated with that repair. So if I could do a franchise that was timing belt king.

Right.

Like we did timing belts all day long and we. All I did was timing belts. I had four timing belt jobs a day. I could be super efficient and I can knock out hours all day long. Give me four timing belt jobs to start my day. I'm super happy. Give me four intermittent drivability stalling issues to start my day out with. I'm going to take in about eight more cars for the day because I don't know when the revenue is going to hit the cash register. Now what I've noticed is this independent shops sometimes can struggle with fixing cars. So then when we get stumped on a car, where do we turn for help?

The dealer.

Yes. So we'll send a car to the dealer. What I noticed over the last, say five years with dealerships is I could send you a car and you charge me one hour of your labor time to diagnose the car. It's a hell of a value for an independent repair shop. I don't care if I pay you 200 bucks to tell me what's wrong. Well, it doesn't matter, does it?

Yeah, it does.

Why?

I'm just like. You mark it up.

Right. Well, of course, yeah. I mean, typically you'll double it and you know, pass the bill over to the customer. You got to make profit on stuff, right? You're providing a service.

I just think it's good for them to hear that.

It is.

Yes.

Yeah. I mean, and I'm not ashamed of our pricing at all. And I think the one thing that, and this is important, no matter where you're at as a service advisor, your success is all determined by the relationships that you build. So for instance, you were at Crevier BMW. If I knew you as a service advisor there, I would build a relationship with you as my BMW guy. So I would have your cell phone, I wouldn't have to go through reception. If I had a problem with BMW, I'd text you, hey, Kris, I got an M5 I need help with. Can you get it in the shop today? And you'd be like, yeah, bring it over, we'll squeeze it in. So guess what I just did for my client. Instead of waiting two weeks to get in the shop, I just, with my special relationship with you, got you on the fast track. Now here's what's changing. I took a car to a Japanese import dealership where they used to charge me $135 diagnosing. I got a call from the advisor. He says, you have three concerns. That is 135 for each concern. Your total's $570 or whatever it was. I was like, okay, you've been to my diagnostic class. Awesome. I love it. Great. I'm changing the industry, right?

It's awesome.

Then I took another vehicle to the local Chevy dealer and the Guy quoted me $900 to diagnose a wiring issue. 900 bucks in diagnostic time up front.

Is there like rat damage?

No, no, just it's a ABS speed sensor issue. Shouldn't be that hard to figure out.

So do you think they're doing that because you're a shop and you're a competition?

I don't think so. I think that more shops and dealerships are understanding that we can't take a loss on diagnosing cars. I can't let my technician spend four or five hours figuring out somebody's concern and not drive the right revenue.

Yeah.

So take that timing belt job. If I can in a four hour period. If I can do a timing bell job for $1,500 and I'm going to make so much more gross profit per hour. Same advanced drivability for four hours is even at 200 an hour is only going to generate $800 in revenue. The profit's a lot lower. And my cost is hard because it's my most highly skilled technician doing the work. So that's where the industry is changing. So with our diagnostic labor, there's a couple rules that I recommend for service advisors and shops to understand. Number one, price it properly. So I recommend a 25 to 50% markup on your regular labor rate. So this is going to help your effective labor rate out. So let's just take a hundred bucks for Instance, let's say a hundred dollars is the average door rate at a shop and you follow my model of increasing.

So that's your posted labor.

Yes, your posted labor.

Right.

So now your diagnostic rate is going to be 125 or 150 for an hour. Yes.

Right. So price it like it's a fourth labor type.

Yes. Now what am I capturing with that markup? The lost parts gross profit that we're not generating during the diagnostic time.

Yeah. And so what do you think about the idea of.

Doing like. So I've done this before, doing check engine lights for free.

Well, I believe in, believe in a lot of things. First one I believe in with helping customers is there is a time where you need a lead capture tool.

So that goes into competitive.

Yes. But to drive traffic, if you're gonna do it, it's not a full on diagnostic service. It's an initial assessment at no charge.

So if I were pulling the codes. Yeah, yeah.

And I'm gonna pop the hood and look under the hood and see if there's a rat or. We've had a lot of rabbits under the hoods recently.

Rabbits.

Rabbits.

Do they chew wires?

They do they eat everything? Yeah. Cottontail bunnies, Bugs Bunny. Yes.

Yeah. So in my experience with good advisors in an independent or a dealership and obviously it's different like in a dealership because you're doing the same make. Right. So 4 Ford is a Ford, but it's a little harder in independence because you know, the check engine lights are different on a BMW than on a Chevy or whatever and it can require different skills than the technicians. Yeah, they the, you know, just a little different. But usually you close three out of four in that scenario.

Okay.

So if you.

You know, if you give away the check engine light diagnosis, three of them are going to leave it and have the work done and one's going to take it out. So it's just batting average, right?

Correct. I think even the deeper issue that we're seeing today is we've got to get focused away from the component because the customers are going to, they're going to do some research, they're going to go to YouTube, they're going to go to the parts store, they're going to get the code and then they're going to want to sell them the part, the O2 sensor or whatever with a proper root cause analysis, which is a phrase that we've used for the last 10 years, RCA, you need a root cause analysis, not a diagnostic service. It's a root cause Analysis? Yes.

Have you ever had a root canal?

No, I don't do root canals.

Oh, root cause.

But we do root cause analysis because, Chris, it's important not only to understand that the O2 sensor needs to be replaced, but why does it need to be replaced? Because if we're missing something and we're just changing the component, let's say that the connection's bad up at the ECM and we miss that and it causes this O2 sensor to fail, it can cause other damage in the system and cost you more money. So what we need is the proper time for my technician to do the root cause analysis, the pinpoint isolation testing to find out what has failed and why it's failed.

Yeah, no, I totally understand that. The thing with doing the loss leader check engine line is it just says. So here's what, what it says. Now we need to dig in.

Yes, right, absolutely.

And the. I love your approach of the root cause analysis, but it gets them in the door.

It does.

That's the idea.

Yeah. And what I've discovered with it is there's two things. Time is talk time management for service advisors. I don't want to take 10 or 15 minutes to convert a lead. So I only have so many hours in my day. So when the phone rings and I'm dealing with a live client, the best way for me to help you is to bring me the car. So I'll do an initial assessment at no charge. Now, here's what I'm going to do. I'm going to pour some tequila in your coffee, pour you a nice cup of coffee, give you a tour of the place. But now I've got your car and your time. You made a decision to come down to our facility. If I can get you to do that, 90% of the time, you're going to do business with me. I'm going to win you as a client for life. There's no question I'm drunk. Of course. There you go.

Which we're not encouraging.

You heard it here on sdr.

Get them drunk.

No, don't get them drunk.

No, I totally. Yeah, I agree. And that's a good point. I love like.

The, Your whole approach to diagnosis. And it works. I've. I've been teaching it now, and it works. Like having that as a fourth one and having it up a little bit higher. So going 150 or 180 on it, and it doesn't. I mean, I haven't heard of one customer declining.

It works. It does work. Absolutely.

They're at the time of need. And the thing is too, like diagnosis is, is going down because the cars are made better. There isn't as much diagnosis as there used to be. There aren't as many electrical problems as.

There used to be. Right. Yeah, I agree with you. And you know, it's interesting to see taking care of the car. I like to follow the demographics of the car that we are attracting. So where is the sweet spot for your shop? So obviously right now for a lot of independents, we're seeing cars that are 2005 model year to 2012, 2015, and that window's moving. So now we're in 2020. So we're going to get some maintenance on some of the newer model years. But things that are 2010 and older, you know, the intrinsic value of the vehicle typically is not there, especially for people on the rust belt that have to deal with rust. So you've got to understand what you're dealing with, how to be profitable on it, be fair for the customer, but also be fair for the business. And I got to be fair for my technician as well.

Well, it's good. Great, great stuff. Hope that that gave you some food for thought, something to try out. You know, just try it for a week and see what happens. But so far I've been doing this for, I don't know, over a year since I heard it from Jeremy and it's worked. I had no negative feedback. It's genius. And it's just going to make your effective labor rate go up.

It does, absolutely.

We, we hope that everybody has a great week. Watch out for the drive by this Friday and have, have some fun.

Absolutely.

Not too much fun.

Can always have fun.

Do not pour tequila in your customer's coffee.

I didn't say that.

Yeah. Thanks, everybody. Have a great week. Thank you so much for watching this clip of Service Drive Revolution. Now you can catch the full episode on YouTube, iTunes or Spotify or wherever you consume your podcast. If you have any questions, go ahead and post them in the comments below. Make sure you subscribe and hit the bell icon so you're notified when we post new episodes. I'm Chris Collins and you can find me on Facebook and Instagram at Chris Bulldog Collins. And I'll see you again on the next episode.