Labor Matrix

[Importbry]

Hello, We have been running napa Tracs for 15 plus years. Currently in the 10 day transport for Mitchell SE. One large question that I have is in Napa Tracs It allows for a Labor Matrix based off the Technician skill level. When you look up labor in Prodemand it gives a skill level. So at that point your labor for the job will go up or down based on the skill. Does Mitchell not support this? IF not I will pump the brakes on the whole change over. Why would any shop owner want to change the same labor for an engine rebuild Skill Level A as they do for a coolant service skill level d?

[ricmorin]

Welcome to the Forum.

Manager does not assign a labor rate automatically based on the skill level presented in Estimator. While I applaud your technique and share your vision, a vast majority of shops out there simply have one labor rate, and the ones that have multiple rates often apply it multiple ways. Leaving multiple labor rates open allows shops to do how they see fit, even mixing rates based on skill level AND other factors like age, make and customer disposition.

[Importbry]

Welcome to the Forum.

Manager does not assign a labor rate automatically based on the skill level presented in Estimator. While I applaud your technique and share your vision, a vast majority of shops out there simply have one labor rate, and the ones that have multiple rates often apply it multiple ways. Leaving multiple labor rates open allows shops to do how they see fit, even mixing rates based on skill level AND other factors like age, make and customer disposition.

Don't get me wrong I absolutely agree, canned jobs and such with different labor rates are a great idea. However you cannot possibly have a canned job for a timing belt on a Audi that would be anywhere near correct

[sandersonm1]

It would be great to have labor rate calculate base off of skill level of technician.

[Importbry]

It would be great to have labor rate calculate base off of skill level of technician.

absolutely. Had it with Napa Tracs Legacy..

[Cory]

A labor matrix based on vehicle age would be great. Once vehicles reach 5 years everything gets rusty. It would be nice to mark labor times up by a set percentage.

[Rich]

A labor matrix based on vehicle age would be great. Once vehicles reach 5 years everything gets rusty. It would be nice to mark labor times up by a set percentage.

Rust factor!!!!!!!!!!!! I use one all of the time. Gas tank? plus an hour - at least..... the joy of living in the rust belt i guess.

[Sauvageaus]

A labor matrix based on vehicle age would be great. Once vehicles reach 5 years everything gets rusty. It would be nice to mark labor times up by a set percentage.

So much this!!!

[ricmorin]

Another matrix application is based on the number of hours a job takes. The premise is the more hours the higher the liability. I've thought of trying that one.

[timbre4]

I would add that the Labor Matrix topic was mentioned in our workshop event this past weekend. Since the vehicle age factor has been added to this discussion that could add to the complexity of the design. More discussion is required obviously, therefore we cannot provide parameters that will be factored or a date of delivery for the feature.

In the meantime, I would remind users of this simple setting that anyone can use right now. Add a new labor rate and assign it to vehicles you deem additional effort is required for: [your terminology may vary]

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[GUTHTIRE]

I would add that the Labor Matrix topic was mentioned in our workshop event this past weekend. Since the vehicle age factor has been added to this discussion that could add to the complexity of the design. More discussion is required obviously, therefore we cannot provide parameters that will be factored or a date of delivery for the feature.

In the meantime, I would remind users of this simple setting that anyone can use right now. Add a new labor rate and assign it to vehicles you deem additional effort is required for: [your terminology may vary]

rusty.png

Would be nice if you could have the default "Your labor rate" then within the RO have functionality to toggle all Labor lines to "Rusty POS(5+Yrs Old). This way you could just switch one or two lines, where/if needed back to "Your labor rate". I could be wrong but as far as I can tell switching is on a Labor line by line basis. If someone knows of another way please let me know.

[Silky7]

Dan,

Just hop back to the vehicle tab and change the rate there. It will permanently change for the vehicle (but not like it'll get better over time, right?), and then prompt you to update the order levels when you return to the Order tab.

[GUTHTIRE]

Dan,

Just hop back to the vehicle tab and change the rate there. It will permanently change for the vehicle (but not like it'll get better over time, right?), and then prompt you to update the order levels when you return to the Order tab.

Gotcha, will try on the next one. Thanks!

[timbre4]

My suggestion above was to add (or edit existing) a labor level that would address older vehicles - going forward.

If one wants to be proactive about existing older vehicles in the shop database, the Reports - Followup = *MM - Create Data Export File option would provide the means to list and sort customer vehicles by year and then you have a map to adjust the labor rate for any or all of those older vehicles.

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[Importbry]

Tim that is a good solution for older vehicles and or rust buckets. But it still lacks the ability to have any kind true Labor Matrix. Mitchell does have the ability to set that labor rate by the individual year, or choose the rate from the order. However the key to choosing that is the Service writer has to pick it. There can always be mental hurdles and we all know price is a hurdle. If they think they wont get the sale they will not do it. That is why having a true matrix or having labor prices set by skill level automatically results in more to the bottom line. You remove the human emotions from the sale and eliminate the option.

[timbre4]

Tim that is a good solution for older vehicles and or rust buckets. But it still lacks the ability to have any kind true Labor Matrix. Mitchell does have the ability to set that labor rate by the individual year, or choose the rate from the order. However the key to choosing that is the Service writer has to pick it.

If the labor rate is assigned on the Vehicle tab for all work, there needn't be any further selection as that will be the rate for all work, unless someone actively makes an exception.

In regards to an actual labor matrix, please share how you envision that working in your shop. I'm gathering input towards documentation.

[ambertsi]

We actually use a lot of different labor rates with our matrix because we work on light, medium and heavy duty diesels and we do road service for heavy duty. If we can change the overall customer's labor type to one category we do, then all of the labor on their invoices from that point forward pulls correctly. If not, we just change the customer type on the labor screen within the RO. So, you could always re-word something like I have here to include a base shop rate as well as different rates for different skill levels. Since you're pulling the skill level form the labor guide, you could just assign the appropriate rate to the labor line once you pulled it onto the RO.

[timbre4]

Thanks ambertsi - i can see the logic behind your choices as a labor menu per conditions noted.

Importbry- still need an example or two of how you see a labor matrix behaving in your shop.

[Cory]

I would add that the Labor Matrix topic was mentioned in our workshop event this past weekend. Since the vehicle age factor has been added to this discussion that could add to the complexity of the design. More discussion is required obviously, therefore we cannot provide parameters that will be factored or a date of delivery for the feature.

In the meantime, I would remind users of this simple setting that anyone can use right now. Add a new labor rate and assign it to vehicles you deem additional effort is required for: [your terminology may vary]

rusty.png

My original comment was to mark the "Labor Times" up by a percentage once vehicles reach a certain age, not just the "Labor Rate". Adjusting just the labor rate would help the shop only in these circumstances, but adjusting the labor times helps everybody. If I was a tech, I would be upset if I was the one spending the extra time on the repair, and didn't get any of the extra money to go along with it. (Assuming that most techs today are on flat rate pay).

[Importbry]

Thanks ambertsi - i can see the logic behind your choices as a labor menu per conditions noted.

Importbry- still need an example or two of how you see a labor matrix behaving in your shop.

I absolutely apologize, with the world going crazy I turned my focus elsewhere and never checked this tread.
I would say the labor matrix by skill level is a sound approach, it is something that is already built into the Mitchell estimator. If they follow the process with Tracs Legacy it makes it easier and much simpler.

There is an issue with just adding time to a repair just because something is rusty. If higher skill level job pays 4.0 hrs (Skill level A) "A" tech there is a loss of time and money, So here is an example using round numbers for ease. Base shop rate 100.00 hr and our "A" tech is paid 25.00 Hr Flat rate. Keep in mind an "A" Tech is your best highest paid tech. You have spent $2,000 on tools to do this job, not to mention the training classes throughout the years. This is a premium repair that has more to consider than just hours and parts.

Time Billed
4.0 at $100.00 = 400.00
Tech cost is $100.00
Base profit made $300.00

Using an automatic matrix like what Tracs legacy had

4.0 hrs "A" Skill 136.22 = 544.88
Tech cost is still $100.00
Base profit made $444.88

That is how a shop thrives, having a decent labor margin is just one of the keys. Now you can afford that scan tool update, or that new A/C machine. If you just raise the hours billed to accommodate for an engine repair or for rust you still pay the TECH and there is nothing gained.. Customer pays more and the tech takes home more. The Shops bottom line does not change.

If there was a Matrix that allowed yearly breaks to increase time for rust and the fun things that happen with an older vehicle. That would be good for the tech and the shop
ie... Car is 10 years old 3% labor time increase ect...

As shop owners we know or should know what numbers should be to be profitable leaving it up to human error or whim is dangerous. Think about when the last time you were able to negotiate a price at BestBuy to get a new computer????? Yet how many of us get asked " Is that the best you can do??" Making an automatic labor matrix that is tailored with commonsense with factors like Rust, Skill, Tools is a must have.

Honestly if I had know Mitchell did not do the process like Napa Tracs Legacy I would not have switched. If I find software that will accommodate a true labor matrix and that had a secondary accommodation for age of vehicle.... I would be gone in a flash!!!!!!

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They have the coding... Just turn it on