Are there any AfterMarket Shop Owners in here?

[TTP]

Hi,

I was wondering if there are any aftermarket shop owners on this forum? If so please respond to this thread. 

Let me introduce myself, my name is Joe Pazdera, I have been in the aftermarket game since 2005, but I have been self-employed for over 40 years. Currently, I own and run two companies Texas Truck Performance and TTP Coatings. I have found over the years that there is not alot of resources out there for shops like ours. Everything is geared to the normal auto repair shop. Which is like trying to fit a sqare peg in round hole, we just don't fit the mold. We have different obstacles, to overcome that a normal repair shop doesn't.  Like installing a lift, most manufacturers do not give a labor time, you just have to guess. Even if they do its not always correct and you either over bid and lose the job or underbid and lose your profit. So in the days to come I want to explore how other business owners are doing it. I hope you will join me in the quest to make us the best and most profitable we can be. 

[Leon Martin]

Joe,

..always create your features and benefits list and there are a huge amount of benefits waiting to happen if you can present the experience and the solution in one paragraph 

Leon Martin

[TTP]

On 11/18/2022 at 1:24 PM, Leon Martin said:

Joe,

..always create your features and benefits list and there are a huge amount of benefits waiting to happen if you can present the experience and the solution in one paragraph 

Leon Martin

What does this have to do with what I am talking about? I am trying to recruit people, to exchange ideas. 

[Joe Marconi]

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[Transmission Repair]

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[TTP]

5 hours ago, Joe Marconi said:

First, Auto Shop Owner is primarily comprised of aftermarket auto shop owners from around the world and also companies that support the aftermarket.  

You have a unique business and one that does not fit into the "normal auto repair shop," as you state. With that said, it's important to understand your numbers: your labor costs, material/parts cost, and operating expenses to start with. Then you need to establish your required gross profit on labor and parts in order to pay for your operating expenses.  And of course, you need to have a decent net profit(bottom line)

I don't want to trivialize your business model; I just want to start the conversation. 

I would like to hear from businesses that are similar to yours. I ran a traditional multi-store auto repair shop for 41 years, and now work as a business coach. 

 Great Topic!!! 

WE are a unique business, this is true. Lets just say that you know your numbers, without a "labor guide" you are just guessing on these lift jobs. Unless you have years of experience like I do and can quote the job from repetition. It's the new comers that have no factual basis to turn to , like a typical auto mechanic does. So my question was how are other shops doing this? Guessing on the labor and hoping you covered your butt? DO you have a formula you use to bid these jobs? Something different , then please share your ideas with us.

Each lift job is different, even on the same truck. A cheap kit will have less parts than a higher quality kit that will have more parts to acheive the same goal. More parts means more labor time.  Which means higher cost. We always try to give the customer two or three different choices on the same heigth of kit. An economy kit, mid level and a high end kit. Explaining the benefits of each one. We also try to determine if its going to be a pavement princess or a real world use off-road vehicle. That all factors into what they truly need for their needs. 

[juanpablo4219]

Good Day Joe 

...We are a brake and front end shop.

I know what you are talking about. We don't do lifts for that reason.

We do leveling kits and considered the job as replacing Struts and it's base on the time plus some.

A lift kit leaves a lot of work with out been paid for.. 

I think is more of guess on the amount of work and hours combine. 

[TTP]

YES! EXACTLY! TY for the reponse.

I usually look at the labor rate, it as a strut replacement in the front along with a front diff R&R. Then in the back shock replacement and the track bar then add an hour or two. 

I personally do not like Rough Country but on their lift description if gives you an estimated install time give or take a couple of hours. My problem is when you sell a high end kit, like BDS, there are several more parts/steps than a cheap entry level kit. So that's where it gets a little tricky to bid, but its a starting point. 

 

[Joe Marconi]

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[TTP]

It can, but if its a unforseen issue that is out of the scope of our work like bad ball joints or a TRE. We notify the customer and tell them of the issue and the cost to fix it. Labor is reduced since we are already tearing it down. Most people will tell us to proceed, with the chang order.  

Our biggest problem is competing with other shops in the area. Seems like several have popped up overnight, and are doing lifts and leveling kits for insane prices. A normal level kit on an F150 4x4, quality brand parts goes for @450.00. I have guys offering to do it for less than half that. Now I know that they won't be in business for very long since they are barely making a profit and the new shop overhead is going to eventually shut them down if they don't raise their prices, but its the Billybob, working out of his house that is the most concerning. NO overhead, NO taxes, straight cash and cheap. We can't compete with that. They usually come in at 30-50% less than we have quoted. We try to sell on our reputation and service. But I have seen in the last few years, nobody cares about that, its just about that bottom line. 

Of course they complain when something goes sideways. I know this because they usually bring it to us to fix. And we hear the whole sad story how they were ripped off, when the other shop wouldn't fix it.   No warranty with that install....LOL. Then it costs them usually more than we first quoted to fix the issues. I have seen componets, not torqued at all but just hand tight, bolts missing on key componets. From a safety standpoint its really bad. 

Anyone else having these issues?

[Jodie]

Perhaps have the vendors you use do the legwork for you.  That's an added benefit they can provide you, as a buyer.  I have a vendor that does just that...I can order parts online, see availability, and even check labor guides, interchanges, and fitment.  Because of that, it's my first place to shop.  Really where I get nearly everything, because it is consistent, and they have shown they take us seriously by providing us with tools to help the ordering process.  If I know part prices, associated labor, etc., it means many times I can make a decision on the fly.  We are a mom and pop and do straighforward stuff with some classics thrown in (and the occasional tractor dropped off in the lot).  It also helps in a small shop, if your front-end person is not necessarily a car guy (me).  By providing that info to the desk person, the wrench doesn't have to stop and weigh in on an estimate (increasing bottom line).  Just a thought...the information must be out there...ask and you just might receive, if they can see how it would cement a relationship with you!

Cheers

[Joe Marconi]

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