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How to Know When Your Prices Are Too Low

If you are frustrated with your customer’s price focus or “always wanting a deal” type of mentality, Modern Tire Dealer columnist Dennis McCarron has some shocking news for you: Your prices are too low.

The average shop in North America has a labor or “door” rate of about $100/hour. Simple financials dictate technicians earn 30% of door rate by productivity. Special thanks: Tyler Utley, Conrad’s Tire
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It’s Time to Raise Your Labor Rates!

Politics. Religion. Alldata vs. Mitchell 1. Flat rate versus any other pay plan. Yes, I’m going there. I want to address pay plans, but not in a way you’re probably expecting.

The Best-One Tire Group jointly owns and manages more than 250 locations in 26 states.
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Wage and Hour Laws Catch Best-One by Surprise

The U.S. Department of Labor’s Wage and Hour Division may or may not be investigating automotive service shops for pay plan violations at a greater rate than other retail businesses. There is certainly evidence supporting such a bias, although all it takes is a complaint from a disgruntled employee to trigger an investigation.

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10% Net Profit: Get Your Fair Share

Every year, you have a chance to be fair to your customers, your employees, and yourself. Earning 10% net profit year-over-year is your fair share, and it’s your retirement. The "industry norm" of 2% to 3% net profits will not be enough.

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Benchmarks Are Not a Myth

A gross profit benchmark of 60% for a tire store is not a myth. Dennis McCarron explains how to reach it, from setting your shop’s labor rates to getting 50% margins on your parts sales.  

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Year-End Review and a Look at What’s Ahead

To 2019, Dennis McCarron says: Bring it. Low unemployment is likely to continue, and while that makes staffing harder, it means more people are driving to work and putting miles on their cars.

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What's More Important Than Consolidation and Wage Wars? Cash Flow

Tire dealers are feeling the heat. The big guys are growing bigger. Finding and keeping reliable technicians is getting more expensive. And technology is requiring more expensive shop upgrades. Doom and gloom? Dennis McCarron says no. "It’s not doom and gloom because this is awesome."

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Dennis McCarron: Reach ‘Younger’ to Find Technician Talent

Due to the boom of the internet, social media, and web 2.0, you are competing for the talents with every single other employer out there regardless of industry. What can be done to make sure a young, energized, and ambitious mechanically inclined young adult ends up working on cars?

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