The Expert Podcast

…Here's one small example of why prices and costs for services Go up. This is from the automotive industry. Talking about retaining texts which are basically mechanics That's what they call. mechanics in dealerships are technicians automotive technicians, and they interviewed a bunch of dealership service managers about what's going on with technicians And you may have seen that repair rates. For vehicles have gone up. Even insurance rates go up because technicians are the biggest costs in repairing vehicles. that have been in a collision. why is retaining techs important for dealerships technicians are the single most valuable asset to a dealer…More so than the cars salespeople managers, the single most valuable asset to a dealership. Think about that. To emphasize the point. This article. Research said losing one tech. Cost of dealership $172,000. Considering loss production revenue and a price finding a replacement. The average dealership would find three additional techs If they could find them. Since there's 16,000 dealerships in the us, the industry is short $50,000 techs So side note. If you know somebody that is looking for a career. Automotive technicians a good one The pay rate is huge There are some places that pay 60 70 $80 an hour. For a good technicians especially for diesel or high-end technicians…And the job carries a lot of perks. There's 401ks insurance tools. And…training is usually included…So when you look at the cost of different things going up. One of the reasons for it is the cost of the labor cost of the employees that provide that service. Technician is just one example but it doesn't stop there. Manufacturing plants need highly skilled workers. So even if you…Count. Or discount the fact of higher materials I mean everything's inflated. Fuel. Groceries And even the materials that companies buy to make things you know the parts that dealerships buy to fix your car. Separating that out The cost of labor for providing the service has gone up as well. Which is another factor in why inflation is going up and will continue to go up. For the near future.