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In this episode of Under the Hood CPA, Eric and Clay discuss why increasing revenue does not always lead to higher profit or cash flow.

They break down technician efficiency, productivity, pay plans, job tiering, shop processes, and the hidden costs of interruptions, comebacks, and turnover. They also explain how tools, training, DVIs, and AI can help shops keep up with increasingly complex vehicles.

The conversation highlights the importance of knowing each technician’s true loaded labor cost and using that number to make better decisions about staffing, pricing, and productivity. The goal is simple: fix the process, not the person.

Timestamps:

00:00 Complexity Needs Investment
00:40 Show Intro and Setup
01:10 Audio Glitches and Banter
05:48 Efficiency and Turnover
09:37 Pay Plans and Comebacks
11:30 Tech Tiering and Dispatch
15:20 DVI and New Tools
20:28 Define Efficiency Metrics
24:53 Cost of Inefficiency Math
26:02 Productivity Hits Profit
27:20 True Technician Costing
30:25 Calculating Loaded Cost
34:45 Rates vs. Efficiency
35:39 Costing Tool and Setup
38:39 Complexity and Training Edge
40:01 Tools as Retention Strategy
44:41 Turnover and Tax Benefits
48:16 Wrap Up and Productivity Playbook
51:39 Final Takeaways and Outro