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Rick Levitan shares his experience and insights on real estate in the automotive industry. He discusses the importance of developing a strategy when expanding and finding new locations, as well as various methods for finding potential sites. Rick advises against falling in love with a specific location and highlights the option of leasing with an option to buy. He also discusses the role of real estate investment trusts (REITs) and the importance of demographics when considering a new location. Rick emphasizes the need for careful planning, good advisors, and transparency when acquiring a business or property.

Rick Levitan, Managing Director, Auto Stream Car Care, MD.

Show Notes:

  • Searching for the Next Location (00:06:07) Rick discusses various methods for finding new locations, including online websites, business brokers, real estate brokers, vendor connections, employee referrals, and driving around to scout potential areas.
  • Identifying Markets and Opportunities (00:07:51) The importance of identifying target markets and opportunities, but also highlight the need for flexibility and evaluating the financial feasibility of each site.
  • Buying vs Leasing Real Estate (00:08:50) The discussion explores the preference of most shop owners to buy real estate upfront, but acknowledges that market conditions and location factors may necessitate a mix of leased and fee properties.
  • The importance of demographics (00:11:18) Discussion on the significance of demographics in determining the location for a new shop and the factors to consider.
  • The evolution of competition in the automotive repair industry (00:14:10) Exploration of how competition has become less of a concern over the years and the focus on improving operations and customer service.
  • The site potential rating worksheet (00:15:51) Introduction to a tool used to evaluate potential locations based on various factors and assign a numerical rating for comparison.
  • The importance of having good advisors and attorneys in acquisitions (00:20:15) The need for good advisors, including attorneys and CPAs, to navigate the legal and financial aspects of acquiring a business.
  • Strategies for informing employees and customers during a business transition (00:21:51) Strategies for smoothly transitioning employees and customers during a business acquisition, including waiting to rebrand and being transparent with employees.
  • The importance of a pro forma (00:27:38) Discussion on the significance of using a pro forma and where to find templates online.
  • Factoring in upgrades and negotiations (00:28:22) Exploration of the costs associated with rebranding, equipment upgrades, and negotiating the price based on necessary repairs.
  • Learning curve in growing a multi-shop operation (00:30:12) Insights into the challenges and learning experiences when expanding from one shop to multiple locations.

Thanks to our Partner, Dorman Products. Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour

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-The Aftermarket Radio Network: https://aftermarketradionetwork.com

-Special episode collections: https://remarkableresults.biz/collections

 

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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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