Ep 117 - Coaching Call #21 | Mike Started Charging for Diag. Here’s What Happened

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Mike Allen sits down with Matt Lofton at ASTA 2026 for another Carfix coaching call—and this time they finally have data from Mike’s decision to start charging for diagnostic work at one location. They break down what happened to car count, gross profit, effective labor rate and average repair order before diving into the much bigger debate around flat rate, hourly pay, technician trust and whether pay plans actually motivate employees. Matt explains why incentive programs often create a short-term bump without changing long-term behavior, why writing an SOP is not the same thing as training, and why repetition and accountability matter more than another complicated compensation plan. Mike also admits that sometimes the recurring employee problem might actually be an owner problem. It’s a conversation about diagnostics, technician pay, leadership, training and what it really takes to build a team that consistently executes.

Timestamps:
00:00 – The Technician vs. Shop Owner Problem
00:56 – Live From ASTA 2026
01:30 – The Free Diag T-Shirt Conspiracy
04:25 – Mike Defends Free Diagnostics
08:44 – We Started Charging for Diag: Here’s What Happened
12:09 – Should You Quote Diagnostic Fees Over the Phone?
18:25 – The Complimentary Consultation Strategy
20:15 – How to Sell the Value of Diagnostic Testing
25:57 – Should a Faster Technician Cost Less?
28:03 – Flat Rate Isn’t the Problem
33:46 – Changing a Technician’s Pay Plan Without Losing Trust
36:06 – Does Money Actually Motivate Technicians?
39:01 – The Cobra Effect: When Incentives Backfire
40:49 – What Actually Motivates Employees?
43:49 – Are Shop Processes Becoming Too Complicated?
44:49 – Writing an SOP Is NOT Training
47:29 – Why Great Shops Execute Better
51:33 – Mike’s 72-Page Parts Manual 😂
52:36 – “I’ve Told Him 22 Times!”
53:10 – Mike Admits He’s Been the Problem
54:40 – Matt Has Screwed Up Just About Everything
56:57 – Why Small Shops Struggle to Train
58:12 – Scale Gives You Time to Train
1:00:11 – What Mike Needs to Fix Next