Joe, that’s hogwash, Techs make BIG bucks!

Have YOU ever turned wrenches for a living? I have. I put myself through college working on everything from race cars to diesel trucks and heavy equipment. And I am still a weekend warrior tech at age 66 working on cars and trucks for a friend’s hot rod shop. I can attest with scars on my arms and hands, it is HARD WORK. (By the way, as much experience as I have, at age 40 I could no longer even come close to flat-rate, never mind today.)

On top of my tech background, I have a history of being one of highest producing dealership Service Advisors. That earned (or cursed) me with all sorts of Fixed Ops Manager dealership positions through the years.

In my many years of dealership experience, I have had to: break up technician fist fights, was nearly run over in the service drive on purpose by a tech’s girlfriend who was mad at me because I back flagged her boyfriend tech, had a tech lure me out to the parking lot, pulled his 44 magnum out his vehicle and warned me not to screw with his pay, jumped into cars and finished fixing them after hours because a tech screwed up the repair.

You get the idea …..

So when I read articles by self-proclaimed stable genius “experts” who say most good techs make a great living and have the potential to make $100k+  like it is common, I want to puke.

Can they make that much? YES, but indulge me. You must understand the perfect storm that has to happen in order for this vision to become reality.  

The tech MUST:

• -Flag at least 50+ hours every single week NO MATTER the repair difficulty, rechecks,  warranty rate reductions, low paying recalls, weather, sick days or holidays
• -That includes in the middle of summer and it’s blasting hot in the shop (my techs’ production fell 15% the 1st day it hit 90 outside), to an ice cold floor and snow dripping on techs’ faces from melting
• -Tech needs to work on at least 2 to 3 cars at a time and plenty of carry-overs
• -Tech must have the lifts and flat stall space to support cars that are apart, or are waiting for approval, or waiting for parts
• -Techs’ Service Advisor MUST have a strong following of customers and not afraid to present in a very professional way, all recommendations the tech lists on the inspection sheet
• -Did I mention there must be plenty of car count each day? Just a couple of slow days in the beginning of a tech’s pay week and it deflates the tech’s attitude for the rest of the week
• -Parts fulfillment or parts delays kills production too
• -And how many times have you said “do me a favor” (translation: do this for me or a customer for free)

So if techs are paid this amount hourly (flat-rate) / this is how much they make at 50 hours annually. And remember, it MUST be done each week:

$24/$62,400

$27/$70,200

$30/$78,000

$35/$91,000

$40/$104,000

What is the average flat-rate dealer pay? About $24 an hour. Despite the recent N.A.D,.A. study, most other studies on the internet show the average dealership Tech makes $49k a year. When you average that figure out, that is way below our 50 hour week average.

Now you may say “Joe, I have Techs who turn 60 and 70 hours a week, most weeks”. I did too. However, their warranty was always bumping the rev limiter. Also we did not have “fluids for life” back then so does your menu ignore this dilemma?  PLUS I had a customer following from years of customer relationships that bought most anything I presented.

The lowest hanging fruit is now spoiled

Where are my techs today? Almost all of my seasoned techs are: disabled, retired early, in management, or in another field. And over the years, I managed 50+ techs.

When those Techs came into the industry, high schools were still providing options of trades vs. college. How about now? You know the answer. ….

There is no more deadly trap than the trap we set ourselves. Let’s stop doing that!

I know I sounded louche so far. But here is my two pronged approach to try to correct the Titanic’s course:

1 – MOST IMPORTANT, RAISE YOUR DOOR RATE and submit a warranty rate hike so you can have the gross to save the techs we have from leaving the industry. Let’s start visualizing paying and treating techs like the professionals they are. Granted, we can’t slay all of their dragons, however we HAVE to get their job satisfaction up in order to promote this trade to others.

2- Start thinking about establishing a weekly 40 hour guarantee. Yes, A and B level techs probably want to stay on flat-rate or production bonus. But study after study of techs’ job dissatisfaction shows the NUMBER 0NE BUZZ KILLER is flat-rate! You see that in the tech forum above. Also, I just read where the state of New Jersey is sponsoring a tech apprentice program and the director has already found that pushing these entry-level candidates off of a guarantee in 6 months, washed most of them out like a rinse cycle. D techs, C techs, and even some B level techs can’t keep up on flat-rate these days. But why lose a tech by shoving 25 to 35 hour paychecks in their hands when they have been in your shop for 40+ hours a week?    

We have to have more door rate for more gross so we can think about weekly hour guarantees. But until we participate in conflict resolution with our current techs in the hostile environment, we will continue to drive down a cul-de-sac, in a speeding car, with bad brakes …….

Easy/Hard          

It’s easy to get into debt/hard to get out

It’s easy to gain weight/not so easy to shed the pounds

Easy to make a Technician career look attractive/hard to make that image a reality

Warning: This op-ed is not a ‘Flower Power’ piece, it’s tough love.

Auto Industry Operates in the United States of Amnesia

Unless you have lived under a parts counter for the past three years, most everyone in dealer world heard that Chicagoland’s Tech union Local 701 declared a strike  in August of 2017 in over 140 dealerships.  The seven week strike caused dissention and scar tissue on both sides.

As if that trauma was not enough, recently a consolidator took over some of the Chicagoland dealerships. The consolidator breached the agreement and the Union took the case to court…. and won. But the technician blog boards and social media groups light up like a summer lightning storm.

The expression “You can run from yourself, but you can’t hide!” applies here.  You can’t imagine how vile the messages were from techs about dealers on forums. 

Mamas don’t let your babies grow up to be Technicians

Actions by employers continue to raise the high watermark on why Techs hate their jobs A small splash causes BIG waves on social media.

Let’s go look at some common, unedited comments posted on Indeed.com on one of their forums (By the way – why would any employer post their technician job on this board when techs can see these right near their job ads???)

(Forums > Job > Automotive Technician)

-Please, anyone considering this field, learn from what I have to say. This field is a black hole. The money isn't there, the UTI commercials are a lie to get you in the door so they can profit from your student loans.

-I flagged 13.7 hours last week...22.7 this week. I was there for 50 hours both weeks. I am drowning in student loan debt and tool debt. Customers are stupid blockheads who just look for the cheapest oil change deal that week and never do any needed maintenance. You go for broke. This industry is broken, you will be broken, this isn't fun like your hobby car, this is hard work, low pay and bull pay systems to make your pay even lower.

-I don't care how much you know or how much you love working on cars, you will be starved out at the beginning stages unless you live at home with mom and dad, no wife, no kids, and they feed you.

-Don't learn the hard way like me. I doubt I can afford rent this month.

-Couldn’t agree more, been doing for 12 years and the only thing I have to show for it is a busted back, bad knees, and a severed tendon in my hand. Flat rate is a total joke and should be illegal. I thank god every day they I will never have to turn wrenches for a living again!

-I have been turning wrenches since the early 80`s and couldn`t agree more. It was a good living in the beginning but as the years have gone by it has steadily gotten worse. I wish I could get into something else that has a more steady income (this roller coaster called a paycheck sucks!). 

-I have a friend who went to Nashville Auto Diesel school years ago and he was guaranteed $850+ per week at Ford for years until he quit and opened his own shop. You have to manage your money and he did it by working toward a goal of owning his own shop. Don't have a bunch of kids, wife that doesn't work, don't get too deep in debt, and try to save some money!

-You have not been keeping up on the laws have you? In CA your employer MUST pay you double the minimum wage for every hour NOT spent working on vehicles......waiting for parts is considered to be "not working on vehicles". Basically you are paid a flat salary with performance bonuses now. Flat rate alone IS illegal in CA.

-When I started 15 years ago I had a very different view of this job. I accept now that it's not the most interesting. But the worst part is it beats up your body and only getting 2 or 3 weeks off a year and lifting and smashing metal while standing on concrete all day destroys you. I'm 35 and tired of the boss saying I come to work sick why can’t you... Sitting behind a desk is a lot different. Plus the size of the vehicles now and what is expected. I'm officially done. And so many shops wonder why they can’t find good mechanics... If I got paid a fair wage then I would, but I make less now than I did before and the cost of living is higher as well. Sadly this is no longer a good trade, and my body aches. And I have to worry what I do on my off time because injuries in this trade can really hinder you and make life difficult.

One of the Contributors, Kevin Anderson, wrote a blog back some time ago about building trust with customers in service. There were great discussions concerning building customer trust and retention in that thread. I would highly recommend reviewing it, and start another here because of the following -

A NEW shocking AAA survey of thousands of their members reveals:

2 out of 3 U.S. drivers DO NOT trust auto repair shops in general

AAA found that the 1/3 of U.S. drivers (75 million!) have yet to find a trusted shop

Top reasons why drivers distrust - shop recommending unnecessary services (thanks factories for filling consumer's head with "fluids forever"), overcharging, negative past experience

Despite the 75 million drivers not finding a trustworthy shop, Baby Boomers are twice as likely to find a trustworthy shop than  Gen X or Millennials

Since this study reveals a big Achille’s Heal, what is your dealership doing to build trust with existing and new customers?  

If you have followed my published articles in the past about retaining Techs (based on being a former dealership Fixed Ops Manager and my 17 years of recruiting with over 3,000 dealer clients) you know I advocate that decent Techs today are as skilled as college educated Engineers.

When I preach that dealers must start raising their door rates to support $40 to $50 an hour flat-rate in order to keep Techs in the game, I have been called “A Visionary” to “A Wacko”, and everything in between. So go ahead and think anything you want, I am immune to criticism.

My point here is: As if you don’t already have enough assaults daily on your Tech’s mental health, here are a few more cyber attack-like events that have happened just in the past 30 days

1 Rebels without a cause – Unemployment just went down to 4.6% (U.S. Labor Department). This essentially means that no one who wants to work is unemployed. People who are collecting unemployment under these conditions have no cause to apply to your jobs. Trying to recruit from this area is as dry as this year’s California deserts.

2 Tokin’ Resistance – Medical and Recreational Marijuana referendums were more popular than any candidate on the ballot. 25 states now allow either medical or recreational. A great job with good pay better be worth a Tech to “Just Say No” to this temptation.  

3 Those Fracking Oil companies – OPEC decided to recently slow production and crude is now ascending like a homesick Angel. Already, domestic oil companies are gearing back up looking to swallow up Techs to put in their oil fields.

4 Train Gang – Recently I read an H.R. report that the railroads are on a nationwide search offering after only two years on the job: 100k + SALARY (no roller-coaster pay weeks depending on hours turned), Union style job security, plentiful benefits and a retirement plan. 

5 Outbreak of Trumpian Optimism - The new administration proposes (at last count) at least $275 BILLION in infrastructure programs. EACH billion will create around 13,000 jobs mostly for non-college educated males.

6 “What do you mean I can’t play games on my phone at work?” - A recent study by University of Chicago’s Erik Hurst and colleagues stated that nearly one-fifth of males between 21 and 30 who have not completed college aren’t working today and aren’t in school (an increase of 125% since 2000). Yet many of these young men are satisfied with their situation because it frees up time to play video games.

Bottom line, it is insane not to retain! The information above is NOT from fake news sources so I highly recommend you do more M.B.W.A. (Management By Walking Around) and really talk to your Techs. Let them know YOUR dealership appreciates them and is looking to have them into the $40 to $50 an hour range.