...if a tech turns 100 hours in a week, and he buys $400 worth of materials, that’s a $4 per hour cost in materials. Through the month we track this, and everybody tries to be the lowest. We give out gift certificates or buy lunches for those who are lowest every month.”
Similarly, the four-person paint teams on each shift are rewarded with a monthly bonus if their per-hour paint and materials costs stay under $14.
“So the two painters will share clear, and any extra base that’s accumulated they use as ground coats,” Dayfer said. “They really do a fantastic job.”
Rob Gehring, a consultant who suggested Automotive News highlight Dayfer’s shop on the webinar, said Northtown Collision produces more than $1 million in monthly sales from an 18,000-square foot facility.
“What I am so impressed with is that his gross profit margin on paint and materials is 70%,” Gehring said. “Frankly, I’ve never heard anyone do a better job than that.”