Paying Attention to Inflation [THA 269]

We’ve all heard inflation is up 8%, as of this broadcast, but when you walk through the grocery stores and sit at a restaurant, it sure seems like it’s a lot higher …  don’t you agree? As prices continue to jump, what are we doing as an industry to adjust? And why are so many shop owners worried to raise their labor rates? My panel includes 2 shop owners and an auto shop bookkeeper with a wide-open discussion about labor rates, parts pricing, and even employee retention in the age of rampant inflation. Watch the Episode on https://www.youtube.com/watch?v=LVQ1Hs4NpVE&t=339s (YouTube) Natalie Paris, https://www.threeriversbookkeeping.com/ (Three Rivers Bookkeeping), Profit Strategist. Listen to Natalie's previous episodes https://remarkableresults.biz/?s=%22natalie+paris%22 (HERE ) Dave Kusa, owner of https://www.autotrenddiagnostics.com/ (AutoTrend Diagnostics) in Campbell, CA. Listen to Dave’s other episodes https://remarkableresults.biz/?s=%22Dave+Kusa%22 (HERE). Dustin Brown, https://www.brownsautoexperts.com/ (Brown Auto Experts), 3 Locations in New Mexico, Albuquerque, Village of Los Ranchos and Rio Rancho. Listen to Dustin's other episodes https://remarkableresults.biz/?s=%22dustin+brown%22 (HERE) Key Talking Points Parts - While parts costs are rising, our parts GP should take care of itself if we are using an effective parts matrix. 55-60% Unfounded fear for charging correct amount for parts Expenses - Expenses, in general, will jump up.  We need to monitor our expenses and possibly shop them to get the best value. Labor Rate Increases: Shop your competitors and monitor how the labor rates in your town are adjusting for inflation.  The dealership suggested retail isn’t always what they’re selling to their customers “Don’t trip over dollars to make dimes.” when it comes to expenses  Employee Retention- This year all office staff received a raise and some of our technicians. We did not give raises to techs that have been with us for less than 6 months.