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Mike Chung is director, market intelligence at Auto Care Association. With more than a dozen years of experience in market research, Chung and his team provide the industry with timely information on key factors and trends influencing the health of the automotive aftermarket and serving as a critical resource by helping businesses throughout the supply chain to make better business decisions. Chung has earned a Bachelor of Science in chemical engineering from Massachusetts Institute of Technology (MIT), a Master of Science in environmental health management from Harvard University and a Master of Business Administration with a concentration in marketing from Montclair State University.

Hunt Demerest, CPA at Paar-Melis. Hunt is Accredited in Business Valuation and a licensed Certified Public Accountant that has been with the firm since 2006. He specializes in business taxes, valuations, and does consult work with our clients all across the country. When he’s not in the office, Hunt enjoys spending time with his family, golfing, working on and racing his cars. Listen to Hunt's previous episodes HERE.

John Wafler has spent all of his working career in the automotive industry and has experienced almost every position in an automotive repair facility (yes, he started as a technician back in 1982) and also owned his own automotive repair business for several years. This background, in addition to the post-secondary education he received in Business Management, Marketing, and Computerized Management Systems gives him a unique perspective on what it takes to be a successful business owner in today’s challenging automotive aftermarket service industry.

John also worked as a Systems Integrator/Franchise Consultant/Management Trainer for Pace Automotive Systems in Canada for seven years and for Horizon Training and Management for the next five years, where he was introduced to RLO Training and the “Series One” Automotive Management Workshops developed by Bob O’Connor.

At RLO Training John started as a Bottom-Line Impact Groups Facilitator with Bob O’Connor back in 2001, and since then has helped hundreds of shop owners achieve high levels of success through his training, facilitation, and coaching. Listen to John's previous episodes HERE.

Key Talking Points:

  • AutoCare Association has been pulling data from it’s members regarding the impact of the pandemic to help them understand and cope. They’ve provided a few slides for this Town Hall Academy
  • Cash PositionIn early April 36% were highly concerned
  • In May and June, 16% were highly concerned
  • A very strong discipline for the service professional happened within the first two weeks or months when Covod-19 hit was to look at every expense.Called every vendor. They found items they were paying for and not enjoying
  • Many found a 20% reduction in costs
  • Too many shop owners were costing along as they become more profitableMargins, and getting fat with their fixed expenses
  • Budgets need to be reviewed
  • Every cent needs to be scrutinized, pandemic or not
  • Many shops that put cash aside did not worry about getting through this
  • The pandemic was the single most stress test on your business
  • Many shops got the PPP money and EILD has provided them a strong cash position   
  • The aftermarket is typically immune to certain downturns, the industry is cautiously optimistic.
  • Staff ReductionsSmaller companies were not going to reduce staff as much as the larger ones were
  • Service professionals do not have to go into board rooms to decide and they are closer to their people and their families to ride out their decision to reduce staffIf they did it was a short period of time
  • Reduced hours
  • Opportunities for the independent to hire technicians from dealership layoffsDealerships were always a smart and solid place to work. Covid-19 changed that
  • They were quick to shut down their service bays even though they were essential
  • A number of shops considered letting people go, were not great contributors to the business.
  • Many did whatever they had to do to keep their best people on the payroll
  • The tough problem is the extra amount of federal unemployment is making it tough to get people back to work. The extra $600 per week makes it hard to go back.
  • Many shop owners are rethinking wages
  • Labor rates need to go up
  • Charging for extra charges like concierge service is not the right moveIncrease your labor rate to cover any extra cost of doing business
  • The optics for the customer will feel they are nickel and dimed to death
  • Don’t be the cheapest in town
  • OverallMany shop owners are having the best June ever. Some are booked out a few weeks
  • We are not out of the woods and need to be cautious and be safe. Virus hot spots are growing
  • Very optimistic for the year at the service level
  • Road trips are being planed. May be safer than air travel
  • The RV industry is booming
  • Will the work from home and back to school have an impact on miles driven
  • Many shop owners have said that the pandemic is the best thing that happened to themWith PPP and EIDL monies smart operators have helped their cash position
  • They got caught up with debt
  • Opportunities to buy weaker shopsSome are using pandemic as an exit excuse

Resources:

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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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      How To Get In Touch
      Join The Auto Repair Marketing Mastermind Group on Facebook
      Meet The Pros
      Follow SMP on Facebook
      Follow SMP on Instagram
      Get The Ultimate Guide to Auto Repair Shop Marketing Book
      Email Us Podcast Questions or Topics 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others
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      How To Get In Touch
      Join The Auto Repair Marketing Mastermind Group on Facebook
      Meet The Pros
      Follow SMP on Facebook
      Follow SMP on Instagram
      Get The Ultimate Guide to Auto Repair Shop Marketing Book
      Email Us Podcast Questions or Topics 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others
      Thanks to our Partners,
      RepairPal at https://repairpal.com/shops. Quality Car Repair. Fair Price Guarantee.
      App Fueled at appfueled.com. “Are you ready to convert clients to members? AppFueled™ specializes in creating custom apps tailored specifically for auto repair businesses. Build your first app like a pro.”
      Aftermarket Radio Network
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
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      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
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      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
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      Lagniappe (Books, Links, Other Podcasts, etc)
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      Show Notes with Timestamps
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      Auto Repair Marketing Mastermind (00:26:01)  Invitation to join the Facebook group for sharing marketing ideas and support.
      How To Get In Touch
      Join The Auto Repair Marketing Mastermind Group on Facebook
      Meet The Pros
      Follow SMP on Facebook
      Follow SMP on Instagram
      Get The Ultimate Guide to Auto Repair Shop Marketing Book
      Email Us Podcast Questions or Topics 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others
      Thanks to our Partners,
      RepairPal at https://repairpal.com/shops. Quality Car Repair. Fair Price Guarantee.
      App Fueled at appfueled.com. “Are you ready to convert clients to members? AppFueled™ specializes in creating custom apps tailored specifically for auto repair businesses. Build your first app like a pro.”
      Aftermarket Radio Network
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
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