SMT007 Magazine

SMT007-Apr2023

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APRIL 2023 I SMT007 MAGAZINE 67 "Well, we'll see if you're right," Patty said about their intended visit to the repair shop. "Sam Grabowski is expecting your visit. He is very open and will help you to understand why he charges what he does." Two days later, Andy and Sue were at Sam's Auto Repair and were greeted by a very large, cheerful man with a red beard. "Sam's the name, but everyone calls me Bubba," he said with infectious enthusiasm. "Professor Patty wants me to help you youngsters understand how a small business develops its labor rate." "We are curious," Andy said, "how you came to know Professor Coleman." "My daughter Monica was a student of hers," Bubba said. "Professor Patty suggested that Monica's class do a group project to help understand how a small business is run. Monica offered my shop as a case study." "I love that idea," Sue replied. "I never thought I could teach anyone at Ivy U about anything, but I think they learned a lot by studying my shop," Sam/Bubba said. "The students even offered some suggestions to improve productivity. I implemented them and it has helped quite a bit. As a result of that project, I got to know Professor Patty quite well." "Our main task is to determine how you developed your hourly rate for your auto repair techs," Andy shared. "Okay, so I need to explain a little about the business and I will not give you the answer. You need to tease it out from our discussions," Bubba replied. "Sounds like a plan," Sue said. He began to explain, "I have 20 auto techs and I pay them $30 an hour. We not only repair, but also can replace tires and batteries. We have a small quantity of common tires, batteries, parts, and supplies. I can get most things I don't stock in a couple of hours."

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