Land-based Engineering
Considering
The Cost of Losing a Skilled
Technician
A Report Commissioned by
A.E.A
Training & Education Committee
Compiled by David Kirschner Consultancy March 2007
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Table of Contents
1
Introduction
2
Skilled Technician Overview
3
The Technicians Influence on The Business
4
The Financial Impact of Losing a Customer
5
The Technicians Contribution to The business
6
The Training Investment
7
Considering The Economics of Replacing a Technician
8
Templates For Projecting the Cost of Losing Your Skilled Technician
9
Summary and Conclusion
10
Acknowledgements
1
1. Introduction
The skilled technician working within the Land-based Engineering Industry today plays a
pivotal role in the success of his or her employers business.
Economic pressures within the sector many of which are beyond the customers control
have served to focus customer attention on the selection of machinery deemed to be
efficient and cost effective. The dealership’s ability to offer professional technical support of
the product supplied has also become an important consideration in the overall efficiency /
cost purchase equation
The customer’s quest for greater efficiency and the manufacturer’s drive to gain commercial
advantage by employing cutting edge technology has delivered the industry to a point
where the importance of the land-based service technician’s role and the expectations of
his abilities have escalated dramatically in the past 10 years. This period of change has
seen many customers move from a position of having spare machinery capacity to sole
reliance on one or two prime movers to establish, maintain or harvest a crop e.g. large
tractor, high capacity combine, self propelled forage harvester etc.
The considerable capital cost of these high capacity machines and the customers reliance
upon having them at work when the situation demands brings additional pressures for
manufacturers and their dealers alike who have a commitment to keep the customers
machine at work with minimum downtime. With few modern day dealerships having the
capacity to finance and stock a fleet of large prime mover machines kept in readiness to
use as customer support units, it is plainly obvious that having skilled technicians at your
disposal is essential if you are to avoid customer dissatisfaction and possible litigation.
2. Skilled Technician Overview
It is likely although not mandatory that the skilled technician will have completed an
advanced modern apprenticeship achieving level 3 NVQ or an equivalent qualification. This
provides the underpinning knowledge that forms the basic foundation upon which the
technician’s skills have been built. Work place learning combined with the under-pinning
knowledge will have fostered an appreciation and understanding of the principles of
electrics, electronics, hydraulics, power units and transmissions these skills being
necessary to facilitate a logical approach to technical problem solving.
Following completion of an apprenticeship the technician will have continued within the
dealership through the improver stage for 3 - 4 years and graduated having accumulated
workplace experience and knowledge from the attendance of manufacturers’ training
courses to become a skilled technician aged approx 23 - 24 years old. At this stage the
technician will have the ability to work both within the dealership workshop and out on site
without technical supervision.
Possessing the ability to diagnose machinery and system faults using computer based
diagnostic equipment in an effective manner and carry out efficient repairs to the highest
standards of proficiency will be a quality that has been attained. Inter personal skills
allowing effective communication and a degree of customer care will also have been
achieved.
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Further advisory skills may well have been accumulated through experience gained whist in
the daily course of business. These will include the capacity to deliver guidance to
customers on both technical matters and machine selection, technical reporting, training
capabilities gained through mentoring younger workshop members and the education of
customers in machinery operation.
A technician having a blend of these skills will be an invaluable member of the company
and have a high value adding capability for the business.
Further knowledge gained by the skilled technician working within a dealership will fall into
several categories
1)
2)
3)
4)
5)
6)
The dealership
The customer base and area of influence of the dealership
Product knowledge of the franchises held by the company
Contacts with suppliers
Technical development
Specialist knowledge such as LOHLER and Installation training
Elaboration of the above categories follows.
2.1 The Dealership
Each dealership has their own unique set of operating criteria. For example chain of
command, job card systems, departmental procedures, time sheets, overtime rotas,
reporting procedures, vehicle policies, Health & Safety policies and general house keeping
rules. This knowledge will have been gained by an exiting technician over a number of
years and will have been taken for granted.
A new employee will require an introduction to the company, this takes time and causes a
double drain on resources one being the management time to carry out the induction and
the second being valuable technician chargeable time lost through training and unfamiliarity
with procedures which will continue for a period of time.
2.2 The Customer-base
The skilled technician will have knowledge of the dealership’s customers, their buying
cycles, their farms, their staff, the machinery currently operated and their likely
requirements for the future. Added to this it is quite likely that the technician has the
customer’s contact details and conversely the customer may well have the technician’s
home or mobile number.
Other considerations will be the local knowledge of the area of influence and all the short
cuts and quickest routes between service calls, including knowledge of where machinery is
based in the case of customers with large estates or multiples of farms. The benefits of this
experience will promote the timeliness of repairs. This local knowledge may not be
considered important whist working on retail work but in the case of warranty repairs every
hour lost in travel is a potential loss of revenue for the company.
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2.3 Product Knowledge
The technician having completed his apprenticeship and advanced to skilled status will
have been in employ for a minimum period of 6 -7 years. The product knowledge that the
technician will have accumulated during this time will not relate just to the machines
produced within this time. It is quite possible that the knowledge held will span machines
produced in the last 15 years or possibly longer. Whilst with financial investment it is
possible to train a new technician on the current machinery available, replacing the
knowledge required for the older machinery is by no means so easy.
Another factor to be considered is that there is no substitute for experience when being
called upon to diagnose and repair a machine this is particularly relevant in this industry.
Often experience will save hours in repair times and the components used in a repair. This
can have a huge impact on the recovery of warranty costs and the likelihood of customers
questioning or asking for revision of a repair invoice.
Furthermore whilst a technician will know the strengths of a machine he will also take away
the knowledge of weaknesses of the machines that he has been called upon to repair. This
information has the potential to be commercially damaging if used in sales arguments by a
competitor.
2.4 Contacts and Suppliers
Whilst difficult to quantify, a good technician has a personal list of contacts that are used
when seeking information, these can range from technical advisors and trainers within
manufacturers organisations to specialists who work within diesel injection and electrical
repair shops etc. Contacts like these take time to develop but are part of the armoury of a
good technician who needs to access specialist knowledge from time to time.
2.5 Technical Development
As technology marches on and the complexity of machinery increases it has become a
necessity to continuously train key technicians to undertake specific diagnostic duties and
repairs. Financial constraints and the dealer’s portfolio of machinery on offer often prohibit
training all technicians in all things This raises the vulnerability of the workshop to respond
to repair requests should a key technician with specialist knowledge chose to leave.
Depending on the franchise held manufacturers recommend between 1 – 10 days of training
each year as being required to stay abreast with their respective products.
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2.6 Specialist Training and Qualifications
Increasingly today as professional standards are being raised the skilled technician will
have been developed to meet specialist demands placed upon the dealership. LOHLR
qualifications, machinery installation qualifications, certification of competence to handle
refrigerant gasses and the like are all becoming common place. It is a certainty that as time
progresses the range of personal development training programmes being offered will
increase, these will in turn increase the value of each technician. It goes without saying that
whilst these skills are required by the industry to meet the challenges of today the value of a
fully trained technician will increase which will directly impact on the cost of losing and
replacing a skilled technician.
3. The Technicians Influence on the Business
Having a skilled technician at hand inspires customer confidence and reinforces the
customer’s buying decision. A stable sustainable business must grow and foster repeat
business, positive efficient after sales support and the relationship between technician and
customer will be a consideration for the customer when he next purchases.
It is not uncommon for the technician to have formed a close working relationship with key
customers. The technician will more often than not have greater exposure to the customer
than other members of the dealerships staff.
The customer will trust and respect the skilled technician’s ability to carry out effective
repairs and to impart sound advice. The skilled technician is always welcome at the
customer’s premises as he is invariably there to help, not to influence decisions or
persuade customers to make new purchases. Skilled technicians are often approached by
customers for what is considered to be ‘impartial advice’. This relationship between the
dealership and the customer is a valuable asset to the company which cannot necessarily
be retained if and when a technician leaves the companies employ. In fact history shows
that skilled technicians leaving a company to start their own business or to join another
employer have indeed taken key customers with them.
A further consideration is that loss of key company personnel can destabilise a workforce
and cause dissatisfaction. A key member of staff rarely leaves for less pay and poorer
working conditions. Although not considered as good practice, it is not unheard of to use
personal contacts to approach employees and workmates from a previous employer to also
entice them to leave.
4. The Financial Impact of Losing a Customer
Should a customer choose to follow the exiting skilled technician and transfer his business
to a competitor what effect will this have on the business?
The first consideration is that not all customers are equal and that there are indeed
customers many dealers would be happy to lose.
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The harsh economic fact is that 80% of the business is generated by 20% of the customer
base and it is these customers who should receive first consideration as their loss will
impact on the business very quickly.
Research for this report supports the 80 / 20 rule with the maximum deviation being 2%
when looking at the customers contribution to workshop and parts turnover
To fully appreciate the impact of losing one or more customers it is crucial to understand
their contribution to the business. By banding customers into turnover groups and
identifying Key customers, Core Customers and Occasional Customers a clear picture can
be gained.
This enables a calculation of the minimum effect of losing a customer in each banding. It
should be borne in mind that Key Sales Customers logically may not be key parts and
labour customers as the machinery that they operate is newer, under warranty and may not
need frequent workshop repairs.
It is also important to note that the key labour and parts customers may contribute more
profit to the dealerships bottom line that the key sales customer.
To produce an illustration of the value of customers in each banding the following
assumptions have been applied
Net profit on whole-goods sales 7%
Net profit on parts sales 26%
Net profit on labour sales 45%
Customer
Category
Key
Customer
Core
Customer
Occasional
Customer
Annual
Whole goods
purchased
£50,000
and Above
£25,000 to
£50,000
£5,000 to
£25,000
Min Annual
Whole goods
Net Profit
£3,500
£1,750
£350
Annual
Labour
purchased
£10,000
and above
£5,000 to
£10,000
£1,000 to
£5,000
Min Annual
Labour
Net Profit
£4500
£2,250
£450
Annual
Parts
purchased
£10,000
and above
£5,000 to
£10,000
£1,000 to
£5,000
Min Annual
Parts
Net Profit
£2,600
£1,300
£260
As clearly illustrated losing a customer who fits into the key status in one or more categories
represents a major quantifiable loss to the company. This will be felt very quickly and
requires serious consideration in the calculation of the cost of losing a skilled technician.
It is extremely unlikely that lost customer accounts can be regained in the short term, it
should be remembered it costs the business far less to retain a customer than to conquest
a new one.
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5. The Technicians Financial Contribution to the Business
The technician’s financial contribution to the business in terms of labour sales is a straight
forward calculation involving understanding the amount of labour purchased or paid to the
technician and the recovery of labour invoiced to retail customers, suppliers (warranty) and
internal customers (other departments)
5.1 Theoretical Example
In a standard working week the technician is paid 37.5 hours, only a percentage of this time
being available for resale.
In a year without overtime a total of 1950 hours (52 weeks x 37.5 hours) is paid to the
technician. There is however non productive time to be considered for each employee:8 days Public Holidays
60.0 hours
20 days Annual Holidays
150.0 hours
3 days Sick / doctors / dentist etc
22.5 hours
10 days Product Training
75.0 hours
2 days Meetings / shows / demos etc
15.0 hours
Total 322.5 hours
Total hours available to sell being 1950 hours – 322.5 hours resulting in a theoretical 1627.5
hours to sell
This represents saleable labour availability of 83.5% of that employed
If we take that available time and call it 100% we can calculate a recovery rate of the 100%
of the time the technician has available to sell.
It should be remembered that labour time unlike spare parts does not have a shelf life and if
not sold immediately will be lost forever.
It is rare that a labour recovery rate of 100% is ever achieved as there is always some
wastage. (Usually booked to the workshop) A recovery rate of 90% or 1464.75 hours sold
is therefore nearer reality in the most efficient of dealerships.
The following assumptions are made for the purpose of this illustration
Technicians pay rate £9.00 per hour
Labour sold split 50/50 between retail and internal / warranty work
50% (732.375 hours) being retailed @ £40 hour = £29,295
50% (732.375 hours) internal and warranty work @ £25 hour = £18,309
Labour sold 1464.75 hours = £47,604
The cost of skilled technicians labour 1950 hours x £9.00 per hour = £17,550
Labour hours sold £47,604 – £17,550 labour hours purchased from technician.
Total contribution of technician’s labour sales @ 90% recovery rate = £30,054
The resulting £30054 can be further enhanced by the sale of overtime labour.
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The table below illustrates what happens to profitability as labour recovery rates fall.
%
Recovery
Rate
90%
80%
70%
60%
50%
Hours Labour
Sold
Labour Sales
Revenue
Internal Labour
Sales Revenue
Technician
Cost
1464.75
1383
1139
977
814
£29,295
£27,660
£22,780
£19,540
£16,280
£18,309
£17,288
£14,238
£12,213
£10,175
£17,550
£17,550
£17,550
£17,550
£17,550
Contribution
to Bottom
Line
£30,054
£27,398
£19,468
£14,203
£8,905
Consider that each days labour lost represents a 0.5% reduction in labour availability it is
now possible to grasp the cost implication of reduced labour sales brought about by
replacing a skilled technician. The following points will all have an influence.
Finding a replacement Service Technician immediately is unlikely resulting in a period
where labour available for sale will decrease.
Training input will be significantly higher to ensure sufficient product specific knowledge to
enable the new technician to carry out his role effectively
Time spent on company induction and familiarisation
Slower diagnosis and repair times impacting on warranty recovery rates
Extended repair times or poor diagnosis on unfamiliar product leading to customer
complaints / reduction of labour booked to a job etc
The increased possibility of comeback jobs due to working on unfamiliar product
Profitability will be further impacted by reduced parts sales as there is a direct correlation
between the amount of labour sold and the value of parts used in the repair.
As companies within the industry are so diverse the retail rates, internal and warranty rates,
technicians hourly pay rates and the split of labour between retailed labour and internal
work vary considerably each company would therefore need to consider their own data to
appreciate precise costs.
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6. The Training Investment in a Skilled Technician.
Investment in technician training is essential, just as machinery requires regular
maintenance to ensure optimum performance the maintenance of the technician’s product
knowledge and work enhancement skills are required for the same reason
Investment in training is just that ‘an investment’ that yields returns in the following ways.
 Efficiency in diagnosis and completion of a repair
 The means to keep the company and therefore customers abreast of product
improvement and advances in technology
 Improved technician status, confidence and feeling of wellbeing
 Career progression possibilities encouraging retention of skilled staff
 Justification for a professional charge out labour rate
 Increased profit margins due to more efficient use of labour
 Higher customer confidence encouraging loyalty and repeat business
 Raised the perception of the company
What costs are involved in training a skilled technician?
The skilled technician’s training requirement from joining a company as an apprentice
through advancement to technician status is likely to represent an investment in excess of
£55,000 depending on the franchises held and the level of diversity of the technician.
A technician who specialises in one product will not necessarily need as much product
training as a technician who works on a wide and varied range of machines.
The apprentice will spend approx 150 days away from the workplace at college during
which time he will not contribute any income to the business. Depending on the franchises
held by the dealer the apprentice may also have been required to attended basic training
courses at the manufacturers training facility.
The employer will have lost labour sales revenue and undoubtedly incurred additional costs
associated with the education, accommodation and travel expenses of the apprentice. It is
not unrealistic to calculate the investment in an apprentice as being in the region of £20,000
for the dealer.
The additional technical, personal development and product knowledge training required to
secure the advancement from apprentice to skilled technician are likely to require a further
investment in the region of £30,000 - £35,000. It is wholly feasible that with some
machinery franchises this figure could increase.
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It is these costs or part of these costs that have to be considered when replacing a skilled
technician leaving the business. New applicants applying for the post of skilled technician
will undoubtedly have completed an apprenticeship or have a proven track record but
training will be required to aid the transition into the company and product franchises held.
Considering the cost of training new technicians joining the business
Assumptions for this illustration
Retail rate of £40 per hour
Average rate of £25 hour for interdepartmental and warranty work
Average hourly labour rate recovered £32.50
Labour sales split 50/50 between labour retailed and used inter department
Tuition fees £100 per day (Industry charges range £0.00 - £220 per day)
Mileage 100 miles each way at £0.40
Accommodation – subsistence costs £65 per day
Cost of Induction Day
Item
Induction
Days
1
Lost labour revenue
£243.75
£0.00
Cost of Each Product Training Course
Item
Product Foundation Course
Product Advanced Course
Days
5
5
Tuition Cost
Lost labour
revenue
£1218.75
£1218.75
Management
Time
£150.
Tuition
Fees
£500
£500
Travel
Total
0.00
£393.73
Accommodation
Fees
£325
£325
Travel
£80
£80
Total
£2123.75
£2123.75
The above illustration is a guideline of the costs likely to be incurred for each product type.
Major manufacturer’s product training courses are structured and presented at two or more
levels (Foundation & Advanced) therefore necessitating 2 or more visits to the training
facility for many of the product courses.
To appreciate the costs of training a new technician, multiply the man days of training
required by the illustrated costs.
A technician joining a dealership representing a different manufacturers franchise to his
previous employers can be expected to require product knowledge and specialist courses
covering a number of the following subjects:Tractors
Material Handlers
Combine Harvesters
Balers & Grass Machinery
Self Propelled Forage Harvesters
Electrical systems and Electronics
Hydraulic systems
Diagnostics
Tier 3 Engines
Air Conditioning
Customer Care
Machinery Installation and Handover
2 or more courses
2 or more courses
2 or more courses
2 or more courses
1 or more courses
1 or more courses
1 or more courses
1 or more courses
1 course
1 or more courses
1 or more courses
1 course
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7. The Major Costs of Losing a Technician
When faced with losing a technician the situation is one that requires careful considered
management to reduce the disruption to the business and maintain continuity of service to
the customer. Each case will be different and the implications will vary depending upon:The size of the dealership,
The number and type of customers
The time of year
The dealership’s reputation
How amicable the technician’s departure was
The technician’s relationship with the customer base
The reason the technician has left the business
The location of the technician’s new employer
The calibre of the remaining staff
The existence of structured succession and apprenticeship programmes
Communication with the customer base
These are a sample of factors that will come into play, bringing with them their own
challenges and absorption of management time.
Taking time to consider where the costs can be incurred
Advertising for a new technician
Recruitment agency fees if these are used
Management and administration costs of interviews and the selection process
Higher remuneration packages to entice the new technician
Loss of labour and parts revenue whilst looking to appoint a new technician
Higher non recoverable cost of labour due to overtime working on sales and warranty work
to keep up with the workload caused by the loss of a technician
Induction day for the new technician, kitting out his van etc
The cost of training a new technician, course fees, accommodation, travel
Lost workshop revenue whilst the new technician is being trained
Lower warranty labour recovery rates due to slower repairs and poor diagnosis
Extended repair times of work in progress left stripped or part completed by the exiting
technician. This could include lost components and documentation
The immediate loss of key customer accounts sales, parts and workshop with the possibility
of further customers and dealership staff being enticed away.
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8. Templates for Projecting the Cost of Losing Your Skilled Technician
Considering the profile and role that the exiting technician played within the business
Exiting Technician's Profile
Years Product Experience
Yrs
Pay Rate
£
Attitude to the Company
Poor
Good
Excellent
Relationship With Colleagues
Poor
Good
Excellent
Career Prospects
Poor
Good
Excellent
Training Attended
Specialist Capabilities
Unique to This Technician
Yes
Yes
Yes
Yes
No
No
No
No
Yes
No
Over 50
Customer Contacts
0 - 20
20 - 50
Popularity With Customers
Poor
Good
Excellent
Projected Threats Posed To The Business
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Example of Spreadsheet Projecting Costs of Losing a Skilled Technician
Please Turn to Next Page to Fill Out Your Own Projections
EXAMPLE
Spreadsheet For Calculating The Cost of Losing Your Technician
Recruitment Costs
Advertising National / Local
Recruitment Agency Fees
Management Time Used Conducting Interviews / Selection Process
Administration / Arranging appointments / Correspondence E.T.C.
Higher Salary Package Required to Attract Applicants
Other Costs (e.g. Relocation expenses)
Totals
Company Induction Costs
Management Time
Other Staff Members Time
Technician Non Productive Time During Induction
Preparation of Vehicle ( Cleaning, racking, kitting out)
Preparation of Workshop Work Area
Other Costs (e.g. Collection of Technician & Tool Kit 1st day)
Totals
Training Costs
Labour Lost Attending Product Training @ Foundation Level
Labour Lost Attending Product Training @ Advanced Level
Labour Lost Attending Specialist Training Courses
Course Fees
Hotel / Accommodation Fees
Travel Costs (e.g. 200 mile round trip per course) x 7
Subsistence / Out of Pocket Expenses
Overtime Costs Whilst Travelling to Courses
Totals
Estimated Lost Labour Revenue
Lost Labour Sales Between Losing and Replacing Technician
Warranty Labour lost Through Slower Diagnosis / Repair Times
Estimated Loss of Labour Due Lack of Product Knowledge
Lost Labour Due to Unfinished Work Left In Progress
Other Costs (e.g. Wasted time locating farms / machine)
Totals
Time
4 hrs
4 hrs
Cost
£250
X
£60 hr
£20 hr
£20 wk
£1,000
12 hrs
Time
4 hrs
4 hrs
4 hrs
4 hrs
2 hrs
Cost
£50 hr
£32.5 hr
£32.5 hr
£32.5 hr
£32.5 hr
£50
Total
£200
£130
£130
£130
£65
£50
£705
Cost
12 days
£244 day
12 days
£244 day
2 days
£244 day
£70 day
£50 night
40p Mile
£10 night
14 hrs
£250
X
£240
£80
£1,040
£1,000
£2,610
18 hrs
Time
Total
£13.5 hr
Total
£2,928
£2,928
£488
£1,820
£1,300
£560
£260
£189
£10,473
28 days
3 wks
£244 day
24 hrs
£32.5 hr
24 hrs
£32.5 hr
8 hrs
£32.5 hr
8 hrs
23.5
days
£32.5 hr
£5,124
£780
£780
£260
£260
£7,204
Estimated MINIMUM Cost of Lost Customers
Estimated Minimum Cost of Losing Each Key Customer
Estimated Minimum Cost of Losing Each Core Customer
Estimated Minimum Cost of Losing Each Occasional Customer
Parts +
Labour
Parts +
Labour
Parts +
Labour
Per Year
£7,100
Per Year
£3,550
Per Year
£710
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Spreadsheet For Calculating The Cost of Losing Your Technician
Recruitment Costs
Time
Cost
Advertising National / Local
Recruitment Agency Fees
Management Time Used Conducting Interviews / Selection Process
Administration / Arranging appointments / Correspondence E.T.C.
Higher Salary Package Required to Attract Applicants
Other Costs (e.g. Relocation expenses)
Totals
Company Induction Costs
Time
Cost
Management Time
Other Staff Members Time
Technician Non Productive Time During Induction
Preparation of Vehicle ( Cleaning, racking, kitting out)
Preparation of Workshop Work Area
Other Costs (e.g. Collection of Technician & Tool Kit 1st day)
Totals
Training Costs
Time
Cost
Labour Lost Attending Product Training @ Foundation Level
Labour Lost Attending Product Training @ Advanced Level
Labour Lost Attending Specialist Training Courses
Course Fees
Hotel / Accommodation Fees
Travel Costs (e.g. 200 mile round trip per course) x 7
Subsistence / Out of Pocket Expenses
Overtime Costs Whilst Travelling to Courses
Totals
Estimated Lost Labour Revenue
Lost Labour Sales Between Losing and Replacing Technician
Warranty Labour lost Through Slower Diagnosis / Repair Times
Estimated Loss of Labour Due Lack of Product Knowledge
Lost Labour Due to Unfinished Work Left In Progress
Other Costs (e.g. Wasted time locating farms / machine)
Totals
Estimated MINIMUM Cost of Lost Customers
Estimated Cost Per Year of Losing Each Key Customer
Estimated Cost Per Year of Losing Each Core Customer
Estimated Cost Per Year of Losing Each Occasional Customer
Total
Total
Total
Parts + Labour
Parts + Labour
Parts + Labour
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9. Summary and Conclusion
The successful operation of a dealership relies on the three revenue earning departments
Sales, Workshops and Parts employing skilled key professional personnel working
together to promote each other, the products sold and the company.
Whilst the loss of any key member of staff can have a disruptive and detrimental
consequence to the business the loss of a skilled technician presents by far the biggest
threat.
The reason for this is simple.
The technician delivers his personal knowledge and ability, in other words himself as the
product that he brings to the customer and the company. His ability has been developed
through a combination of years of training and experience which cannot be replaced or
recreated at a moments notice. The sales and parts department deliver pieces of hardware
that have a predetermined quality available and produced on demand. Spare parts and
machines can be sourced and replaced elsewhere and transported to the customer within
hours whereas the skilled technician with knowledge of the customer’s machines is a much
rarer more elusive commodity.
Will losing a skilled technician bring with it a cost? The answer is undoubtedly yes!
The costs will range between a few hundred pounds to tens of thousands of pounds a fact
substantiated by members of the industry who have contributed information for use in the
compilation of this report.
Can the loss of skilled technicians be avoided? Of course they can! In some cases
technicians may leave the industry or the country for a variety of reasons completely
unavoidable and beyond the control of the dealership.
The retention of skilled technicians however is something that both the industry and
dealerships can influence.
Question:
What does the technician provide to the customer and the company?
Answer:
His expertise.
Isn’t it time that the different levels of expertise were benchmarked, recognised and
rewarded?
10. Acknowledgements
I would like to thank the members of industry who have supplied data of a confidential and
sensitive nature to assist in the compilation of this report.
David Kirschner Consultancy 28-03-07
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