Quantcast
Jump to content

Recommended Posts

Posted

Hello everyone, I am 28 years old. I have been around the industry since I can remember. I watched my dad run the business for the past 25 years.

 

He is turning 65 and wants to retire. There is a lot that needs to be changed in this business. I am a little bit overwhelmed where to start...many of my suggestions have fallen on deaf ears since he would always say "you can do it." Well that opportunity is coming...

 

I will be around here a lot, and also tapping on as many sources as I can as I transition...

 

A few questions and concerns:

 

Our Master Technician

He ran the place for the majority of the time as the owner/operator, smog technician and lead diagnoser with two or three head technicians. In the past 8 years he hired a very capable head technician whose pay is flat rate and has steadily gone up. I have always said to put in a more robust payment plan in order to keep him involved in all aspects of the shop, rather than having him rake in hours on easy brake jobs. Well he always wants more pay, and recently one of our heavyline guys quit due to "bad chemistry" quoting him. Well our master technician was logging 45-50 hours because of it and now wants a 33% pay raise. I am not sure how that is realistic and said let him walk. While Dad is contemplating that he is "still worth it." He is an excellent diagnoser, probably one of the best in the city, always finds work...but I seriously doubt he will walk into another business and get what he is getting paid now, let alone after his raise. Finding a replacement will not be easy, since the craigslist prospects have been mediocre at best. Is paying a technician $100k take home unheard of, it seems preposterous to me.

 

 

Procedures, lack thereof

For the most part, he ran this place by sheer grit and a very agile mind, once he got too busy he couldn't keep it all under control. The place is chaos as soon as we get busy. Where do I start? The office is a mess, the lot is a mess, the curb appeal is minimal, the office is towards the very rear of the lot which I always thought was a bad thing. Customers park in the front, walk past most of the work areas...often times disrupting technicians. Where does one start? A full revamp, or chip away at everything slowly?

 

I know I have a lot of work on my hands, but I think the tough part will be changing things. The place makes money, but I think there is a lot of room for improvement and also without going through the chaos. I understand hard work, but making things easier and more efficient is my goal.

 

Posted

Sounds like you have a lot of potential there. I'm sure the changes will be questioned by the emploees so make sure to keep them in mind and let them know your goals.

Posted

Where are you located?

 

I agree with Joe, make a plan and write it down. As for the techs pay, that completely depends on the numbers. If your hourly rate is 100/hr and from hat it takes 20 to just run the business you can't pay him 80/hr or he's making you nothing.

  • 2 weeks later...
Posted

Lots of good ideas you have that will be implemented. I agree with others that it's important to keep your employees in the loop about the changes you are making and why. Also as a rule of thumb 70% gross profit on labor is what you should be shooting for. I.e if your employee is being paid $25/he then you need to charge @ $84 an hour to get the gross profit of 70%. 25 / .3 = 84.

Posted

Lots of good ideas you have that will be implemented. I agree with others that it's important to keep your employees in the loop about the changes you are making and why. Also as a rule of thumb 70% gross profit on labor is what you should be shooting for. I.e if your employee is being paid $25/he then you need to charge @ $84 an hour to get the gross profit of 70%. 25 / .3 = 84.

Not disagreeing, just curious. Where did you get that figure from? Also, is there a rule of thumb given for parts from the same source?

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • 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.
  • Similar Topics

    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      Is your shop struggling with fewer repair orders and dropping sales? It may not be about losing customers—your clients could just be driving less. In this episode of Business by the Numbers, Hunt Demarest, CPA, walks you through a real-life example of how customer driving behavior (and simple mileage tracking) revealed critical insights for a struggling $2M shop. Learn how to use your own data to better understand your customer base, track hidden metrics, and adjust your strategy—before your bottom line takes another hit.
      In this episode:
      Why fewer visits doesn’t always mean fewer customers How to calculate mileage trends using your shop management system The difference between customers and repair orders (hint: it matters) How remote work and economic shifts impact car care habits How to conduct a customer behavior audit—without creeping them out Action steps to track spending per mile and make smarter business decisions
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      The 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 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 Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      In this episode of Business by the Numbers, Hunt Demarest, CPA, dives into a major economic issue that could impact your auto repair shop: stagflation. With inflation staying high and economic growth slowing, what does this mean for your business? Should you be concerned about a recession, and how can you prepare? Hunt breaks it all down with real-world insights and historical comparisons to the 1970s economic crisis.
      🔹 What You’ll Learn in This Episode:
      What stagflation is and why it matters now. How inflation is outpacing wage growth and hurting the middle class. The impact of tariffs, oil prices, and fiscal policy on businesses. Lessons from past economic downturns (1970s and Japan's lost decades). How auto repair shop owners can stay profitable in a shifting economy.
      Stay ahead of the curve and make informed decisions for your business!
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      The 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 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 Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      The TRUTH About Business Coaching That Companies Don't Wants You to Know!
    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      In this episode of Business by the Numbers, Hunt Demarest, CPA, dives into the world of financial projections—what they are, why they matter, and how to build a solid financial story that banks will take seriously. Whether you’re looking to secure a loan, expand your shop, or simply set better financial goals, this episode will help you navigate the process with confidence.
      Key Takeaways:
      The biggest mistake shop owners make when creating financial projections. Why your story matters more than the numbers when pitching a loan request to a bank. The three key levers you can adjust in a financial projection: sales, margins, and expenses. How to build a realistic projection that a bank will trust. Why working with an accountant on projections can save you from financial disaster. Common red flags that make banks reject loan applications.
      Thanks to our partners, NAPA TRACS and Promotive
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      The 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 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 Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our Partners, NAPA Auto Care, NAPA TRACS and Automotive Management Network This episode focuses on the importance of planning ahead for selling a business in the auto repair industry. Bob Ward stresses that business owners should start identifying and training potential successors early—often from their current team. He walks through a clear four-step process to help with the transition, covering key areas like finding the right fit, determining the business’s value, securing financing, and handling legal requirements. Bob Ward, Perpetual Business, Bob’s Previous Episode HERE. Bob Ward’s Email: [email protected] Show Notes Watch Full Video Episode TST Big Event, March 29th, 2025: https://www.tstseminars.org/ Bob Ward's Ownership Essentials Class April 10-12, Phoenix, AZ: https://perpetualbusiness.co/product/ownership-essentials-phoenix-2025 Importance of Succession Planning (00:00:00) Challenges of Retirement (00:02:23) Value of Transitioning Ownership (00:03:23) Procrastination in Planning (00:05:01) Family Involvement in Succession (00:06:08) Role of Key Employees (00:07:30) Facilitating Ownership Transition (00:08:01) Four Steps to Succession (00:08:27) Retention Strategies (00:10:30) Equity Equivalence Concept (00:11:08) Managing Ownership Changes (00:12:53) Successor Responsibilities (00:15:09) Financing the Purchase (00:16:31) Process Simplification (00:17:31 Successor Concerns (00:21:53) Owner's Perspective on Successors (00:22:22) Missed Opportunities in Succession (00:22:49) Financial Realities for Successors (00:23:14) Perpetual Business Concept (00:28:39) Compatibility Assessment Importance (00:32:57) Essential Career Goals Discussion (00:34:11) Overcoming Fear of Ownership (00:36:40) Identifying the Right Successor (00:37:19) Valuation Metrics Discussion (00:39:36)
      Thanks to our Partners, NAPA Auto Care, NAPA TRACS and Automotive Management Network Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -Special episode collections: https://remarkableresults.biz/collections 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


  • Our Sponsors



×
×
  • Create New...