Should Dealers Pay Service Advisors and Technicians During Lockdown? (Service Drive Revolution)

Chris Collins and Jeremy O'Neal debate whether dealers should pay service advisors and technicians during COVID lockdown as volumes drop. They discuss digital inspections, labor rates, and how service departments can shift online while manufacturers constrain dealer websites.
Questions this video answers
profitableserviceadvisor.com and advisorfix.com
An 80% drop this month.
Chapters
Foreign.
Welcome everybody to Service Drive Revolution. We have an exciting show for you today. Coming from. I'm from Quarantine and Jeremy is actually at his shop. They are open and busier than ever. Say hello, Jeremy.
Hello, everybody. Thanks for having me, Chris. Yeah, we have cars everywhere and people need our essential service. So it is rocking up here. Of course we are taking the proper precautions. I don't want people to think that we're just out there, you know, doing our thing and driving car count. No, we're being safe and all that. I've got more on that later in the show.
You kind of look like a doctor, bro. Like you could probably like diagnose a car and maybe test people for STDs.
We could do that. Yes. Although if you have all the STDs.
That you have, which one's your favorite?
I can't tell you that one, Chris, because they'll hard to pick. It's hard to pick. Yes, it is very hard to pick.
Oh, I understand. Well, the show today we're going to talk about. We're going to talk about how the industry is changing and there's a. There's an interesting article that, that we read about some things that I do agree with and some things I don't, but I'm curious what your opinion is on that. And also we're going to answer your questions and anything else that that comes up. I'm a little jealous, Jeremy, that you're so busy and I've kind of been quarantined. So besides having a morning meeting with, with my team every morning at 7 because, you know, a few of them are on the east coast and in the central region, we've been having a zoom meeting every morning and kind of talking about coaching calls and what's going on. I've been playing a contest with them also coming up with different subjects and things like that. But beyond that, I've just been writing. So I was writing this leadership book called I lead, you follow. And then I've had this book for a long time called Pet the Dog, which is the customer service book. And I always just kind of felt like it was missing something. And then I, I just got like super inspired and I, I think I've figured out like how to fix the book and make it really good. And so I'm almost done with that, which I'm really excited about. And you kind of know from creating the, the advisor training that you did, which was called the profitable Service Advisor, but we might have to change it.
No, we don't have to change it. No.
Didn't we get a cease and assist letter for servicing?
No, we did not get a cease and desist letter on that. We're getting, I'm getting harassed from another, actually from Satan who lives on this planet. And it was just.
Wife is harassing you.
Yeah, she is, man. Believe it or not. No, the profitable service Advisor is fine. We just have some things we got to take care of beforehand.
So we could change the name, like who cares, right?
Yeah.
What's important about that is how great the content is.
Oh, do the content.
I'm gonna say like you, you, when you were writing all that, like it's really hard to write that sort of stuff. Like it's really hard to write a book.
It is. And the thing is when you get into the creative mind, like service advisors were out there catching business all day long. We show up to work and the business comes to us. But when you're creating, you really have to sit down, think about the process, think about the systems. And you're really good at systems, right? Like I'll show up to work and just do, I mean do stuff. But you're good at building the systems, which I love, you know, that's why I love working with you. And then the creativity has to come out. So I mean to write a book, literally, you could have years put into that. And to produce a five minute video, people don't realize there might be 20 to 30 hours of work behind the scenes.
Oh man, you work so hard on that training. Like, I don't know, like it took it took over six months to write it and record it and do it, but if you, it turned out great. So that Advisor training, different than the Advisor training on the Chris Collins website is it's for independent shop. So if you have an independent shop, that's Jeremy's specialty and he has, I mean it's unbelievable. There's people going on there now on the, on the training and I think the pilot's over and he's launching it and it's available to the public. So code, where, where should they go? If they want to check it out.
They can go to profitableserviceadvisor.com so just type that in. No www.it's just profitableserviceadvisor.Com also my website, Advisor Fix has a link on there with a code and it's got our latest videos in a feed there. So you can go to Advisor Fix as well and check that. And that's Advisor with an O, not an e. So it's advisor fix.com.
It'S the real spelling.
It's the real spelling. Absolutely. Yeah.
No, you guys. You guys will love it. It's great. It's great stuff. And get in early. There's specials and things like that. So. Yeah. So I'm excited about this book. You know, I've had the COVID to the book because I had Chip Kidd design the COVID And did you hear the episode of Business Outlaws where he talks about how he created it?
I did, yes.
Yeah. So I have this cover and, like, I was super inspired, but I got so busy before. Before this virus, I was flying all over the world, and I never, like, got to decompress. I feel like I have my creativity. Like, I'm just writing stuff like, crazy. It's been really fun. So what I do is I read Bukowski for a while. Have you ever read Bukowski?
No. I'm writing that down right now.
My process is crazy. Jeremy, if you. If you're curious. So I will read Bukowski. And I read three chapters, my favorite book. And people listening. It's a dirty book. You don't need to read it. I don't want to hear your comments that it's dirty because it's Bukowski. And I don't know what you expect, but the book, Women, for some reason, that book, the cadence of it and, like, it's, you know, a lot of the really good writers, there's a certain rhythm, like, to it. Like, it's jazz in a way. And so Hunter S. Thompson was that way. Bukowski, Sedaris. David Sedaris is kind of more like trance music than jazz. But I'm a drummer, so everything to me is a rhythm, right? And so I read Bukowski. I get in that rhythm, and he's very. The way he writes, and he's very descriptive, and I try to get that kind of programmed in my head. So it takes three chapters. I just randomly open it up and start reading. And then I start writing. And I have this typewriter that's like a digital typewriter that you can't. There's no email. There's no Facebook. It's just a digital typewriter that uploads to a cloud, and I use that. So I sit out on the deck, I smoke a cigar, and I. I wrote a chapter yesterday that will be the second chapter and pet the dog that I am so excited about. I've only read it to one person, but it does exactly what I wanted it to do because I was worried that the pet the dog Book being about customer service is really for a younger audience. And I want that book to be a tool that our clients, dealers, service managers, shop owners, anybody could take that and give it to a 19 year old kid that doesn't really understand customer service. These younger kids are kind of introverted. Did you know that, Jeremy?
I'm seeing that for my own children. Yes, absolutely.
Yeah, they're.
Well.
And it's your fault. You guys are technically terrible parents. Everybody listening.
Hey, come on, man. They don't give you a manual when the kid pops out. They don't give you the manual when the kid pops out. Dude, here we go. I have an excuse for everything, just so you know.
Yeah, no doubt. So you give it to this 19 year old kid that's on Facebook all the time. Really isn't good at human interaction. They're better at spelling.
Right.
They're not actually good at spelling. They're good at asking Google or Siri for everything.
Then how do I grab their heartstrings and get them to care about customers? The other problem with these kids nowadays, and I'm trying to solve with this book, Jeremy, is they're not loyal to companies. How many times do you interview kids now and they have a new job every six months or every year. They just think it's there. Like that's the way it goes. Like you just jump from job to job.
Well, you know what it is? Every position and everything they work on is another stepping stone on their way up. That's how they view it. So they don't, yeah, they don't want that 30 or 40 year job. They're looking for the big payday, they're looking for the experience and they're looking at their next thing. So it's just, you're just a rung in their ladder or a stone on their, their path.
So the problem I'm trying to solve, let's recap. Introverts from bad parenting. They're more social media oriented than humor.
Connect.
Human connection.
Right, right.
And then the fact that they don't stay somewhere long enough or care enough about a company to care about the customers. Right. Like you kind of got to care about the company to care about the customers. And so I'm trying to bridge those gaps.
Nice.
And I feel like I really had a breakthrough yesterday and I'm excited. So I'm gonna, when we're done here, I'm gonna go back to writing and I'm, I'm hoping my Monday I can piece this thing into a pretty good outline and Then the last thing I do when I'm writing a book is you go through it, you know, 10 times because you change the order and cut stuff and there'll be little pieces, little segues that are. That are missing, and then you completely forget about it. People walk up to me and they're like, you know that part in the Irreplaceable Service Manager where you say, blah, blah, blah, and I'm like, that sounds genius. But I do not remember, because as soon as you're done writing a book, you hate the book because you spent so much time.
Don't forget to send me a preview of that chapter, please. As soon as you get off on our recording here, maybe.
Maybe tonight when you're falling asleep, I'll call you and I'll read it to you.
Yeah, that perfect, man. That'd be great.
You can put me on speaker and I can read it to you and your wife.
There we go. That'll work.
You let your kids sleep in bed with you.
Yeah, we still do.
Look, I'll just read it to the whole family.
All five of us are in one bed.
That's a queen size bed or twin or. What is it?
It's a cow king, sir.
Wow, the whole family. What about the dogs? Do you let them on the bed?
No, the dog's down on the floor.
Okay.
The dog has.
I don't know what. I don't know what's worse for your. For your adult relationship with your wife or we could say sex life. A dog on the bed or kids on the bed?
All of the above, sir. But here's the thing, though. It's no different than time management. You just have to be very specific with what you want, set your goals, and then take action and achieve those goals. So it's no different, the sex.
So you're just on the spot. You're just Action Jackson. Like, you don't need a lot of. You don't need a lot of warming up. Nobody needs a blowing.
No, see, you schedule foreplay in. It's like a whole thing that you.
Oh, how romantic. Oh, honey, the Google calendar says it's time for you to rub my neck and blow in my ear.
Well, no, see, you set the. You send the flowers out early. You leave a little handwritten card at home.
You, you know, having sex once every three months. You're not sending your wife flowers twice a week. Three times a week.
I send it every week if I have to. It doesn't matter. She's the.
You're having sex once a week. That's what we learned here, everybody.
Oh man, you just have this a really awesome way of making me very uncomfortable. So thank you.
But you're. If you, if anybody's watching this. Jeremy's a little red right now.
The cheeks just a little bit. It's all good.
The red.
The doctor, Jeremy, totally fine. Jeremy, you do look like a doctor, bro.
Hey, speaking of these younger generation 19 year olds, you know, I think they had a part in creating the COVID virus because they are very transactional, not relationships. So they got together with Trump and sold him on the idea of having the CIA release this virus over in China so we could blame it on China. And remember, this all goes back to Trump and the CIA. But the 19 year olds are in on it. They. Because they don't look. People think we're going to go back to normal. Chris, we're not going to go back to normal. The.
Jeremy, I think I owe you an apology.
Why is that?
Because it does look like, it does look like the thing was created from, well, not from the CIA, but it looks like. And I don't know, I'm only like, I only know what is reported when I read. I'm not, I'm certainly not in the White House getting briefed by the CIA, but it does look like that somebody in that lab there and Hunong or Huong or whatever was selling meat of the animals they were testing on into that market because they were so poor they were selling meat for extra money. And it looks like that might have been the cause. So it might. I might have underestimated your conspiracy intellect. I might have, might have looked past it too hastily and you might now it's not the CIA though. No, no, nothing has come out about that. But it's great to know that China's, you know, just experimenting with chemical weapons in the middle of a city with no protection or safeguards. Like we have better, we have better control of our shop supplies it sounds like.
Right. We do in the whole thing on.
This we're more worried about window washer fluid.
We can't even buy windshield washer fluid that doesn't freeze in Southern California because we're not cold climate. Right. So it's crazy. You know, it's interesting how where we're at with everything right now and how they shut everything down and this thing has to be a lot more serious than people think it is. Otherwise why would you shut the world off and let it go on months. We've extended it so far that, you know, going back to Nor they're even talking like, this is I one reason I hate California. I love and hate California. The mayor of Los Angeles leads all these crazy ideas, then our governor backs him, and then it rolls out to the nation. But the mayor of LA said that there's probably not going to be a major sporting event in California until 2021. And I don't think he knows how powerful the NFL owners are. But I have a feeling the NFL is going to play their season. But it's very interesting. I don't think we're going to go back to normal. I think we have to adjust.
Have you heard what they're thinking about doing with baseball?
No, I have not.
Like locking them all into like three stadiums together somewhere in Phoenix or somewhere.
Right.
Just. They all play on tv so they get their. Their TV rights. People have nothing else going on that are quarantined. So they'll watch it, but nobody comes in, nobody comes out. Kind of.
I think they should do that. I think, you know, the one thing, if I own a major sports franchise, you're. Yeah, the ticket revenue is key, but these television contracts. And look, they've. Everybody's watched every rerun that's ever been on television. It's time to get some fresh content out there. Let the guys go play. Do it. Make it happen.
Five games isn't gonna matter, bro. I don't know. I don't. I was so brokenhearted last year. I don't. I wouldn't mind if the Seahawks took a year off. Like, we still don't have a defensive line. We're. I don't know. Let's. Let's do the draft and then I'll tell you if I think the NFL season should go or not.
I agree. I think the NFL season should go on. And whether you're. Whoever your team is, the season's great. And it doesn't matter where you place. There's only one ultimate winner at the end of the season.
Does matter. It does matter. Okay, so there's this article. CNBC.com the gentleman's name is Michael Wayland, who wrote this article. The headline to this article is Coronavirus Pushes Auto Dealers to Embrace Online Sales. Like Tesla and Carvana. Key points. US Auto dealers have been slow to embrace online sales. However, the coronavirus is changing that. I don't agree with that. I don't think that you. That dealers have been slow. I mean, listen, you got in. In the U.S. i don't want to have 18,000 dealers. And in Canada, you have 7,000 or something. Maybe a little less.
When you take 25,000 or whatever it is, you take that many dealers, you're going to have the losers and you're going to have the winners. But I think the average dealer across the country and you also have to think about the market they're in. Right. Like, not all the markets want to buy online. So the market you're in is different. If you're in la, yeah. You're going to have more people online than if you're in Pocatello, Idaho. Right, Pocatello, Idaho. People come down and they're like, jim, what, you know, what are you doing for F150s this month? And it's time for me to get a new one. So it's a little, it's a little different. Once again, you can't, you can't take a wide brush across everything. But for the most part, I think the dealers have embraced online sales. The thing that I think is consumers haven't necessarily braced it and that what we're really not talking about is how consumers trust for dealerships is the problem, not online sales. So I think he gets it wrong. Probably not a car guy writing this. I don't know.
You know, and it's, it's no different than when we talk about the service drive and creating digital sales. We. I sold a brake job today and I didn't even talk to the customer.
I said brag like that. Just like, oh, I mean, come on, brake job today. Look at me.
Hold on.
You know how many people listening to this didn't sell a brake job? How inferior they're gonna feel?
Well, no, I'm trying to illustrate a point here.
There's people at home quarantine. I can't celebrate job, Jeremy.
Yes, you can.
No, I can't. There's Kris.
No, you can't. I can turn you into my shop management software, give you a login. You can build estimates, send them to customers they can approve with the push of a button.
You can, you don't have to busy trying to write a book for kids that don't want it.
But my point is this. I think consumers, the car buying process is very interesting. So buying cars is a tangible asset that you want to touch and feel. Talking about STDs and you want to go experience it. So yes, you may want to do a lot of that purchasing up front, but you're still going to want to touch the asset. And I think one thing with service sales is the more that we can get out of the old drag the customer through the mud talk about all the recommendations and all that BS and let the customer drive the sale digitally. I think that's going to drive and increase sales because that's what consumers want. Now what's going to happen is this, this is what with lockdown. What drives me crazy is my experience with my local Volkswagen dealer where I had a customer that wanted to buy the car. I had the car picked out, I had the stock number and they told me, no, we can't sell you a vehicle. That should have never happened. The other thing too, with the shutdown, why are restaurants absolutely shuttered? They could do something different to still drive revenue. So I think we have to look at this whether it's on demand online or in person. It's just a pillar to your success. You have to have a strong online buying process to allow consumers to buy from you no matter what product you're selling. And then you got to back that up with a nice feel good touch. The asset delivery when it's time to give the product to the customer.
Yeah, I think a lot of times there's this desire to make things simple, right? We want like the magic pill and we want, you know, one word metaphor for things. But the truth of the matter is, is when you say Carvana and Tesla, it's different than, than car dealers in the sense that Tesla and Carvana are going direct to the consumer. Believe it or not, a lot of the more progressive dealers struggle because the manufacturers dictate their website. The website, company, what the website. Like literally if you have a Toyota dealership, you have to use the Toyota cookie cutter website with the company that they use. Most manufacturers are like that and so they control all of that. And so if you want to be progressive online, you still are held back by the manufacturer. So in some cases the dealers are holding back the, the manufacturer and in, in some cases like this one, the manufacturers are holding back the dealerships. And like I had.
I was doing this, this speaking thing with, with this amazing guy from Google, Tony. Shout out Tony. He, we're going to have him on the show as soon as this thing lifts because he was actually, he was actually going to come on. And then right when all this happened, everything got canceled. But one of the things that he was explaining to me from Google's point of view is you kind of have three tiers of online sales. You have the manufacturer and the advertising they do of pay per click, right? Then you, then you have the dealers that have their agencies or they do it in house or whatever. And then you have the aftermarkets doing it also in the independents. And so you kind of have these three layers, and none of them are coordinating the. The manufacturer is sending leads to the dealers, but they're not coordinating the message. And just think, like, if you have different messages, different agendas out there, you're not. You're not really. Really using the power and the spending power that. That you have on having one message and one, you know, one unified marketing plan. And so it's very. It's. It's very.
Fragmented in a lot of ways. And I don't. It's not that the dealers don't want to be more progressive. It's that they. They're locked up by the manufacturers on what websites they can use, all that. I know when I was running Crevier, we were the second dealer in the country to do Google Pay per click. And we used to think that we needed to redo our website every three to six months to have a new look. And then BMW comes in and says, no, the only website you can have is this one from these idiots in Atlanta or whatever that have a web hosting company that's owned by Reynolds and Reynolds or something like that, then really are 10 years behind you guys in what you're doing online. But it's part of the, you know, the dealer. The dealer agreement, and that's how it has to be. So I think one thing that you're missing here, Mr. Wayland, in this article is the fact that it's not that the dealers don't want to. It's the fact that the. The setup and the overall nature of the environment is unintentionally. I don't think the manufacturers intentionally are doing that because, like, you got 10 more on dealers that would have a terrible website and would do weird things and not, you know, not do it. Right. So they're trying to. They're trying to protect their brand. Right? BMW is trying to protect their brand. And, yeah, I remember one thing that they said is the. We launched this new website, and it was black. And they came back and they said, well, only porn sites are black.
Your website has to be white. And I was like, I never ever, Never, ever that would have never thought of that.
Never. Never crossed my mind. Right.
Okay.
We're selling a lot of cars off of a black website because nobody else but you've ever said that it, you know, was mistaken for porn. But whatever.
Well, that's the thing this ties into. I think one of the questions today, which is, even though. And I agree with where he's going with the, the article and the fact that more dealers are turning on. They've always been doing that. They're just. When we bought my wife's Toyota RAV4, we contacted four different dealers. And yes, you're right, the websites looked the same. But it was after that initial contact that the fragmentation just completely blew it apart. And the way that they handled the online shopping experience was completely different from one dealer over to the next. So I think the message is, no matter what business you're in, you've got to master your digital sales process and have it in a way that can funnel revenue to your business and master it. Like you said, you guys were early adopters at Crevier and you can still do that today.
Yeah. And I mean, I had a great team at Krevi, but the reason why we sold so many cars online back then is we looked at online sales as an away from the showroom experience. We thought, hey, if somebody goes online and they want to buy a car, they don't want to come into the showroom. So the first email, the attention to detail with a copy in the emails, the pictures we would send them, we were trying to sell them on the idea of it was hassle free. We would bring the car to you to test drive if you wanted. But it wasn't away from the showroom experience. Even when we'd make an appointment, we'd say like, hey, you know, you're coming in. This isn't away from the showroom experience, so make sure you ask for me, that sort of thing. And the customers felt different. So our actually our grosses back then on online sales were higher than the floor, which is a tribute to our manager, Sean. She was amazing in what they did. But it just proves the point that if you selling away from the showroom experience and try to appreciate people's time and the way they're there, you're getting them and not treating everybody the same. Right. You can pick up some gross.
You guys were delivering exactly what the client want. You were delivering the buying experience how they wanted it. They were buying from you not being sold. That's a huge difference. And we can do that in the service drive as well. We can create process where the customer wants to take care of their car, they understand how long they're going to keep it. We customize a maintenance and repair plan, tailor fit for them in their car and we deliver it how you want it. If you want to have a phone call, I'll call you. You want me to text you, you want pictures, you want videos, you want a digital vehicle inspection, you want me to send you the estimate via email or text? I can do that. We're going to cater to you, Mr. Customer, and give you the exact experience that you want. It's all about matching your customer's personal preferred communication style, how they want to be communicated with. We have to deliver that. Whether you're 19 or 79. Everybody takes an information differently and you've got to be able to deliver across all platforms today.
Yeah, the other, the other two things he says on here. Online sales is one of the last chances for salvation for some dealers that have had to close their showrooms due to the pandemic, which is true. And J.D. powers expects U.S. retail sales to drop 80% this month.
Well, yeah, there's no question about that. Do you know how many customers are waiting to buy brand new cars right now? Like once things kind of lift there, the floodgates are going to open. We're not ready for what's get the activity that's out there.
What's the note I wrote down, bro? They're not trading in their cars for tennis shoes.
No, they're not.
It's pent up.
It is. There's so much and it's only been what, four to five weeks. This activity that is sitting in this economy is massive and huge. So we can't rest on our laurels. That's why we're staying busy because we like to run.
The late great Bob Crevia used to say that you go, they're not trading in their cars for tennis shoes.
Did he have a cigar in his.
Hand when he did that or no? No, he was just. No, he didn't, he didn't smoke.
He.
But great. I mean one of the great car dealers and like loved the business, but he, he was all. Always had an attention to detail for lease returns. He always wanted to know what our conversion was of people coming off a lease because he would say they're not trading in their cars for tennis shoes. Like, where are they going? What are they buying? Why would they want a Mercedes? They're too young to buy a Mercedes. He would say.
Oh, that's cool. He was, he was great. But yeah, they're not trading in their cars for tennis sheets. So it's bent up and the ones that aren't going to trade in are going to come in for service and we're going to get them.
Absolutely.
So our business is going to be crazier than ever.
It is. Absolutely.
Okay, let's should we. Should we do some questions?
Yeah, but hold on. I've got to be 100% compliant, and I don't want to offend anybody. So because we're going social and we're going to talk questions, I'm going to.
Get ready and you can't catch corona through zoom.
Well, you don't know that. That's not proven. So I just, I want to be conscious of the people out there that.
Are worried if you're just wearing pants or not. I don't care if you have a mask and eye protection.
Dude, I'm at the shop. I got my Doc Martens on and my work pants. I, you know I have pants on. I just. I want to be sensitive to the people that want us to take the proper precautions, and I want you guys to know that we take this stuff serious.
You're gonna, you're gonna give me a prostate exam with the way you're doing that?
Can you turn your head and cough, please?
Yeah. Right.
My glasses.
Okay, we need somebody the. To read these questions. We need the voice of God to. To read them. Are you there, voice of God?
This is the voice of God question number one. This first question comes from Link.
God is Scottish.
Is that Sean Connery that we hear there?
In your episode about the fourth labor type, you said that in order to get a true hours per ro, to divide labor dollars by number of ROS and then divide by current ELR with an ELR of 9428, that math produces 22.46 hours per ro. When I calculate the normal way with MTD numbers, I also get 2.46 hours per ro. My door rate is $119. Is there a benefit or reason for calculating it one way or the other?
Thanks.
Okay, so if I understand the question, Jeremy, should you. Should you calculate hours pero using the posted labor rate or the effective labor rate? My understanding this, right?
That's the question. Yes.
Okay, now let's. Let's get something out of the way. What does posted labor rate mean?
Well, in California, that's just being Bureau of Automotive Repair compliant. It's a target rate. It doesn't mean anything.
You're right.
Yes.
Means nothing. So look at the example really matters is effective labor rate. So if you want the true measurement of what you're averaging per repair order, use the true measurement of effective labor rate. Your posted labor rate and your effective labor rate. If you have a pricing strategy and you're in our coaching program, your. Your effective might be a little higher than your posted labor rate. But if you don't, I mean, the. The. I've seen a gap of 80 bucks before between posted and effective labor rate.
Holy cow. So in his example, he. His door rate is 119, but he's. He's generating 94.
Yeah, see, that's way too big of a gap.
That's huge. Yeah, you should have literally no more than 5%. Slippage is the absolute best.
So you don't have a pricing strategy, and you're not executing on the pricing strategy. And the advisors probably aren't selling the stuff that they. That they should be selling. So you definitely need our coaching program or on demand, and we'll help you with that. But the true measurement, to me, the real way to do it is to use your effective, because that's really what you're collecting, and that gives you a truer number. Do you agree with that, Jeremy, or do you have another take?
No, I do agree with it 100%. I think looking at this, most cars on the road, I think the Car Care Council has this number. The average car sitting in a Parking lot needs 3 hours of maintenance or repairs. So that's just on average. So 2.4 is a little bit low. We want to push that number up. And if you're giving up $18 per hour, the one thing that I like to look at door rate or posted rate is that's what advisors judge their value based on. And what I mean by that is if I say, hey, kris, we charge $125 an hour, but we're actually effectively charging 95, we're not charging 1 25. So a lot of times there's that slippage there. And the shops aren't even getting the numbers that they should be getting. And we should actually increase our pricing and raise our labor pricing up. So I do like to look at the door rate for that reason. And. And then also you've got to calculate effective. But the profits lie in managing that effective rate.
Yeah. Well, you need to understand the different labor types and then how they're priced differently. And then you need to sell the ones that have the higher effective labor consistently also. Right?
Absolutely. Yes.
Good job.
And podcast. Let's be honest, we don't want to risk our lives to increase RO count. Maybe the best thing during this time is a couple of cars a day and less than half the texts. I am in the epicenter of the pandemic. I do not want to increase ros. Give me a video where you are telling the owners to pay their techs and advisors and parts specialists, extra during days off.
Not this.
Well, I mean, first of all, Willie, I want to.
Not assume in any way what you're going through or how you feel. And I think if you listen to that again, you. You would hear in that. I believe I said. I don't know, Jeremy, if you remember, I said not to make light of this and to be very, very careful and that our. That our people's safety should be priority one. Right?
Yeah.
Not say that.
No, you did.
Because I mean that from my heart. I really do. And I'm not making. Listen, we're putting. We're putting on a show here, and I don't think you guys want to hear me come on the show and talk about the people that we know that have been sick or people that have passed away or people that their companies are going under, restaurant owners that are going out of business. Our troubles, you know, in. In our business also, like, I don't. I don't think that that that's what. What you're tuning in for. I think Jeremy and I's role in this is to try to try to shine a light on the positive side. The. The other thing I. I would say to that is.
No, no dealership or shop across this country is in the same situation. So for you to ask me to tell everybody to do. To do one thing, to pay their people and only write two out, two ros a day, like, listen, Willie, people are going out of business. Like, I. I can't walk a day in everybody's shoes and give them broad advice. If a client comes to me with their actual financial statements, their cash flow, their sales numbers, I can come up with a plan for them. But, you know, you can't assume that dealers have enough money to go four months without selling a car. And you really have to understand the dynamic of a car dealership and how much money is in that inventory that you're paying flooring on. You know, you have $10 million worth of cars that you're paying flooring on, and you don't have a chance to sell them. And you have no income coming in except for service and parts, which is an essential business. This isn't a. This isn't a simple thing to talk about. You. You can't just come with some opinion because where you come from, you feel like you should be writing two a day because you're in the. In the, you know, heart of the storm.
You got to be careful. Just like I am very much feeling that you are having a hard time. And I'm sorry about that. And I feel with you, and we're in this together, we can't assume that. We know.










