Your Due Season

Your Due Season

By

Eric Twiggs

"And let us not be weary in well doing: for in due season we shall reap, if we faint not."  The Apostle Paul

Imagine you are planting a Chinese bamboo tree.  You plant the seed, water and fertilize it for an entire year, but nothing happens!   You repeat this process the second year, and still don't see any results.  Year three, you begin the same steps of watering, and fertilizing, but see no evidence of a tree.  Frustrating right?

Fast forward to year five and it starts with you continuing to do the right things to grow your tree with no visible progress.  Have you ever felt like you were planting a bamboo tree?

Then halfway through the fifth year, everything changes.  Suddenly, the tree sprouts and grows ninety feet in six weeks!   If you trust the process and keep doing the right things, you will reap the harvest in your due season.  It's the law of the bamboo tree.   

Laws are unique because they affect you whether you believe in them or not.  This is why clients who don't believe in what we teach, tend to see the color "red "on the profit lines of their portal!    So what are the laws affecting you and your shop?

  

Below are two universal laws to leading a successful shop:

Having The Right People 

 How would you rate the overall performance of each person working for you on a scale of 1-10?  Anyone you score in the 9 to 10 range is an "A" player.  7 to 8 would be a "B", and 5-6 would be a "C".  You should strongly consider replacing anyone who scores below a 5!  

The more "A" players on your team, the easier it will be for you to achieve your goals.    If you and I are playing chess, and I have all pawns on the board and you have rooks, knights, and bishops, you would win even if I had a better strategy.   

 Having The Right Profit Margin

Your costs of doing business are always increasing.  If your costs exceed your margin dollars, you lose money.   Period!  There are two ways to increase your margin dollars: 1. Work on more cars.   2.  Charge enough on the cars you work on.   Keep in mind that you have to improve gross sales by 30% to generate the same net income you would get from increasing your gross profit by 5%.

For example, if your shop averages $10k a week in gross sales at a $350 ARO, you would have to find an additional 9 cars a week to achieve a 30% sales increase. 

Charging correctly on each vehicle gives you the chance to increase your gross profit without decreasing your efficiency by adding all the cars to the mix.  The math doesn't lie.  It affects you even if you don't believe in charging more for your services. 

Summary

You may be thinking:”I look at the pictures on my vision board every day, so I don’t need better people or margins!”

Your vision board will only work if you are committed to working for your vision.  Otherwise, your poster is just a picture of what you don’t have!  

If you commit to keeping the right people and profit margins, you will experience your due season.   

Sincerely,

Eric Twiggs

www.autotraining.net

PS.  I have a 7 step checklist to help you grow your bottom line.  Email me at etwiggs@autotraining.net to get your copy!