Leaderboard

OK, but you can take care of a customer AND make a profit. EVERY customer knows a business HAS to make a profit. And the profit is not just to pay the bills plus some fun money. There's health insurance, money for an emergency, money for new/updated shop equipment, paying an A tech, eventual retirement, ... and ... Why have the headaches of business ownership with just a normal paycheck???

First off, advertising isn’t the only thing. Stay on top of your social media. And the pictures you post don’t have to be just car stuff. But maybe suggest/encourage scenic drives. Weekend vacation spots. How about lifestyle posts? · Are your service advisors doing all they can to provide an amazing customer experience? Agreed, but I would expect some “amazing customer experience” ideas. See my article in Ratchet and Wrench magazine on tips for making your next customer interaction fun—and memorable. https://www.ratchetandwrench.com/shop-life/columnists/article/33005755/broski-its-about-the-customer-experience · Are multipoint inspections being done properly? I can see that, but I don’t understand why that even has to be said. I’m old. I started working on VW bugs in my back yard. My first real job as a mechanic was at a Porsche only shop. We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car. Where practical, we road tested every car before working on it, to check the handling, braking, alignment, acceleration, gauges, etc. It seems every 6 months to a year, an article talks about doing DVI’s. Why? The only reason that makes sense NOT to do one (from the technician’s point of view) is if the service advisor takes too long to get an approval and the tech has to wait. · Are your service advisor proactive with making sales and trained properly to handle objections? Quit with the “sales” and the “selling” and start advising. Advising what’s best for the customer, which is probably best for the shop as well, IF you’re dealing from a relationship perspective with “customer/friends.” Customer friends who KNOW you have to make a fair profit, just like every other business. And you won’t get nearly as many objections.

Since felt I got lost in the writing, got a little curious and ask ChatGPT about a reflection and meaning of my statement(above) this is what I got. The reflection in this statement speaks volumes about your core values, the ethos of your business, and your role in building and sustaining its reputation. Here’s a breakdown: Commitment to Customer-Centric Values: You emphasize genuine care for the customer and their car over sales. This reinforces the integrity of your shop and demonstrates that trust and quality are your priorities. Highlighting honesty and clear communication reflects your belief in transparency, which builds long-term customer loyalty. Transitioning to Leadership: You acknowledge your journey from being hands-on as a service advisor and tech to focusing on the vision and strategy for the business. This shows growth and a desire to scale while staying true to your principles. Specialization as a Strength: By branding yourself as a brake and suspension specialist, you’ve carved out a niche that sets your shop apart. Your focus on solving problems rather than pushing unnecessary sales aligns perfectly with this specialization. Marketing and Adaptation: Your willingness to adapt through seasonal advertising campaigns and platforms like Google and social media demonstrates your understanding of modern marketing and customer outreach. This also shows a balance between traditional values and innovative strategies. Persistence in Growth and Reputability: Starting from scratch and consolidating your shop as reputable reflects your resilience and dedication. The 12-year journey, despite uphill battles, mirrors your commitment to building trust and providing consistent quality. Data-Driven Success: The mention of a 13% average sales growth over the past five years shows you’re mindful of metrics and measuring success, while understanding that external factors like the economy can influence outcomes. Personal Touch in Tough Times: Sending personal text messages to follow up with customers demonstrates how deeply you value relationships. It’s an excellent example of going above and beyond for customer engagement. Key Reflection: Your business thrives on integrity, specialization, and a commitment to customer care. The success you’ve built is a direct result of your ability to balance passion for service with the discipline of running a business. Staying grounded in these principles ensures continued growth and loyalty, even in challenging times. This reflection captures the heart and soul of your shop’s identity. 2/2 4o

We used to feel the same way ,that we had to accept what the insurance was paying. Now we take all the aftermarket warranties. We inform our customers that the warranty will not pay for everything and that we will deal with them and then let the customer know what the difference is. The customer is responsible for that difference and if they want the repair then we move forward, otherwise they are charged a testing/inspection fee that they agreed to at drop off and they pick up their vehicle. Everything is explained up front and we don't have any problems. Some companies insist on sending the parts and we refuse but usually there aren't any issues.

I would say WOM is just as effective as it was. But that doesn’t mean don’t use Google or social media. Here’s an example that surprised me. I was chatting with a first-time caller who was referred by a good customer. As we were talking, I suggested he check our great reviews. There was a slight pause. He said he’d already checked our reviews. Wow! Even after being referred. So yes, BOTH are valuable.

We chose not to deal with aftermarket warranty companies at all. Not work the hassle for our small shop.

During the last half of my career, I learned to not accept work for ANY extended warranty company for reasons too numerous to mention. I would typically steer the customer towards one of my competing shops that would accept extended warranties. Problem solved.

My first time the topic of a radio/music came up was over 30 years ago and I was an employee. Most transmission shops have a "building room" and transmissions aren't built in the open shop. I have always preferred to NOT HAVE any radio/music when building transmissions. To me, it's too distracting. I prefer total silence. The only noise I would hear when building transmissions was only the sound of blowing parts dry or the parts washer running. I've always been that way. Ever since I became self-employed, I let the employees work it out between themselves. It has never been a problem that I'm aware of. I've never seen the use of earbuds or headphones by any employee. Maybe I'm just lucky. What HAS been a problem is when an employee performs a road test, they sometimes change the customer's radio station to their own and/or turn the volume up so loud, it blasts the customer's eardrums. I had to institute a "don't mess with the customer's radio" policy. It's bad enough when they change all the customers' mirrors. Over the years, I finally got smart and included my radio/mirrors policy in the employee manual.

Thanks to our Partner, NAPA Autotech Matt Fanslow welcomes mobile diagnostic technician Rich Falco to explore the intriguing parallels between poker strategies and automotive diagnostics. Show Notes Watch Full Video EpisodeDiscussion on Poker (00:01:02)Evolution of Poker Strategies (00:02:22)Game Theory and Diagnostics (00:04:35)Common Misunderstandings (00:12:07)Real-World Diagnostic Scenarios (00:13:26)Electric Vehicle Training (00:15:46)Power Window Diagnosis (00:16:44)Poker Predictions (00:18:05)Understanding Poker Players (00:19:01)Reading Opponents (00:20:14)Experience in Diagnostics (00:22:03)The Importance of Training (00:23:22)Shop Culture Changes (00:26:09)Technology in Poker (00:30:21)AI and Diagnostics (00:31:08)Access to Training Resources (00:32:07)Young Technicians' Knowledge (00:33:05)Poker vs. Automotive Diagnostics (00:33:24) Thanks to our Partner, NAPA Autotech NAPA Autotech’s team of ASE Master Certified Instructors are conducting over 1,200 classes covering 28 automotive topics. To see a selection, go to napaautotech.com for more details. Contact Information Email Matt: [email protected] the Aftermarket A - Z YouTube Channel 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

In one of his books (E-myth or E-myth Revisited), Michael Gerber discusses Job Costing. While it seems easy enough on the surface, implementing it was much harder due to all the "hidden costs" involved. In addition, I felt it took up too much time. After a few months, I learned to streamline the Job Costing process. Originally, I used Job Costing to price out estimates—a big Mistake. Much later, I learned to use it to set our shop hourly rate and parts mark-up percentages. The biggest eye-opener for me was all the "hidden costs" like matching Social Security and building rent, but that wasn't all. Over a year or so, it did get easier because I got better at it. One of the big things I eventually learned was to perform Job Costing on a spreadsheet template I created. Check out Wikipedia Using Job Costing for a more detailed description of Job Costing. As time went on, I would eventually Job Cost on only a few invoices, not every one as I did in the beginning. I would change the basic Job Costing spreadsheet template as my costs would change. Believe it or not, after a while the drudgery of Job Costing became easy and fun. Check it out yourself, you'll be surprised.

We deal with them. Shop rate is $20.00 per hour more and we add the time we have to hassle with them to the bill. Also inform them and the customer that the customer has to pay us what they will not pay. I do not take any crap from them at all.

Joe, Thank you for the kind words.

I found this great article on WrenchWay's website. The Cost of Technician Turnover and How to Prevent It

Have you ever tried to get an extended warranty to cover a major transmission issue? Every step of the way, they find a reason to delay and tie up a lift. I shoot a short video on every transmission we do, whether it's for an extended warranty company or not. In the video, I make these important points: 1. Why did the transmission fail? 2. What we're going to do to fix it. 3. And most importantly, what are we going to do to keep it from happening again? I call videos like that the "Show-N-Tell" video. We have at least 2,100 Show-N-Tell customer videos on our YouTube channel. BTW, all of our transmissions come with a 5 yr/100K mile warranty. Retail customers are very happy with me sending YouTube video link and a .pdf of what it's going to cost to fix it. They either call me, or Email me, (50/50 split) with the O.K. and that's it. Not so with extended warranty companies. Unless it's a relatively minor mechanical issue, extended warranty companies are hard to deal with, second guess our diagnosis, and want to supply a used transmission. We have more than enough major transmission work to where we can be selective on who we choose to do business with. It took me the first half of my career to finally send those jobs to my nearest competitor who likes to do the work; they have the time. Problem solved. Here's one Show-N-Tell video as a sample to let you know how thorough we are. 3:41

I don't get too many requests for extended warranty work but I agree with Bell Road Automotive. Further than that, when I call the customer with the warranty company's determination I encourage them to call the warranty company if the authorization doesn't seem right or fair. As for a horror story, my last experience with an extended warranty company was on a transmission and it was with American Auto Shield (just one of many names the company goes by) and I will NOT deal with them or CARS again. First they wanted to send an adjuster, no problem. Then the adjusted called to establish a time frame in which he could come look at the car, no problem. I am a one man shop and close for lunch between 1:00 and 2:00. The adjuster left a message saying he would be here no later than 1:00, possible problem. I left the shop at 1:16 and he had not arrived. When I called the warranty company to find out what had happened they told me that the adjuster's notes said he was here at 1:06 and the shop was closed after confirming that lunch was between 12:00-1:00. BIG PROBLEM!!!!! Remember, I have the voicemail message saying he'd be here BEFORE 1:00. The warranty company allowed me to submit the proof they were seeking but then couldn't accept/open/convert an iPhony video (really?). Anyway, we went through the whole ordeal and then they told me they would only approve what THEY could buy the transmission for. We all know how that goes, the cheapest garbage they can find regardless of miles. I refused and that's pretty much where the ordeal ended. The customer did not have the money to pay any additional over the cut rate that the warranty company approved but she needed it fixed so she could trade it in. Warranty companies have their agenda and it is NOT to pay out more than they take in. Can you as a shop owner blame them? They aren't fair often to the customer or to the shop demanding we use inferior quality parts, but they don't care. They expect us to provide the warranty after that so they are done with the liability or expect the extended warranty to expire before the USED UP part fails again. Again, how is this wrong for a company that is simply playing the numbers? Don't we do the same thing with our warranties and how we factor them into our hourly rates? Extended warranty companies appear to be evil and they certainly do work in evil, unscrupulous and unethical ways. But they offer a contract and the customer accepts that contract, Like Kind & Quality and all. I think the problem comes in by the repair shop not adequately informing their customers IN ADVANCE that the warranty company will NOT cover everything and likely will NOT perform in a way that the customer is expecting. We do not need to accept the risk and danger to our reputations, but these are often our existing customers who trust us, who like us, who want to do business with us. Education is the key, educate them up front that you will do everything you can to get as much covered as possible, but that there will most likely be things that the warranty company won't pay that they should pay. For example, my state of Michigan used to charge sales tax on core values but I had one extended warranty company tell me that they would not. And it was not an insignificant core amount either. I explained that to the customer, the customer called and complained and the warranty company finally relented and covered the sales tax because the customer induced them to investigate the law. Thankfully now we don't have to charge sales tax on the cores unless there is no core returned.

Business has slowed a bit for us, so I decided to look at me. I have gotten lax in making sure our processes are being followed. The techs have slowed a bit in getting their next jobs, they got a little lazy in the vehicle inspections and documentation. (A missed low brake measurement is a big deal.) So I wrote a new SOP for documentation while working on a vehicle, it includes road test expectations, post job discussion with the front office, etc. We just need to get better at finding and selling work. It was all on me, the boss.

Makes a lot of sense! Agree!

Here's another great sales video by Todd Hayes. I had to read the article twice because it had so much good information. Overcoming Sales Objections Article

Effective? Absolutely! And like you said, when you think about it, social media is really the same - it’s word of mouth. And yes, it's really strong and effective! Just look at some of the stats! You’re also correct about building strong relationships too! The only change we’re seeing is that it helps (lots!) when you provide incentives or rewards. After all, everyone is listening to the same radio station WIFM… “What’s In it For Me?” When you think about it, you’re going to buy your customers. So you can pay for a bunch of advertising… or just share some rewards with your customers. When you refer a friend, I’ll give you “X”. Besides, you won’t believe how far a $10 or $20 Subway gift card goes! Really! Just take the reward “outside” of your business, In other words, the reward can’t be a discount off your next service. It’s something OUTSIDE of your business - something they wouldn’t typically get - and it doesn’t have to be really expensive! Happy Car Counting! Hope this helps! Matthew “The Car Count Fixer”

My biggest problem with extended warranty companies is they plug up the shop's production.

As an auto repair shop owner, you manage a multitude of tasks daily. From overseeing repairs and maintaining customer relationships to running a team of employees, financial management is often the last thing you want to think about. If this sounds like you, we have a solution to keep your finances on track! A well-organized Chart of Accounts (COA) is essential for navigating the complexities of your business's finances. This blog post dives into what a COA is, why you need one, and how you can reduce classification errors while keeping it simple. Why You Need a Chart of Accounts Your COA outlines the accounts used to track income, expenses, assets, and liabilities within your auto repair business. It is a tool that lists all of your transactions, categorized by line item. Without one, you have a greater likelihood of bumping into transaction classification errors. Here are three main reasons your COA should be up-to-date and organized. Track income and expenses. A COA ensures that you are accurately and properly classifying every transaction that comes through your shop. From parts and sales to the cost of labor, your COA helps you avoid discrepancies in your reports. Gain financial insights. A COA helps you make data-driven decisions for your finances because you have information on spending trends and profitability at your fingertips. Simplify bookkeeping. Having a COA makes it easier for you or your bookkeeper to track and categorize transactions. Organizing Your Chart of Accounts Minimizing transaction misclassification doesn’t need to be an overwhelming and complex process. When you use clear, easy-to-understand categories, everyone on your financial team will thank you. Here are several simple ways you can categorize and organize your Chart of Accounts. Parts income Labor income Service fees Fuel costs Shop supplies (i.e., gloves) Parts inventory Employee wages Insurance Equipment (i.e., lifts and diagnostic equipment) Most accounting software comes with a sample Chart of Accounts. You can use this as a starting point and customize it to match your specific needs. We recommend adding new categories as your auto repair shop grows and your financial future evolves. When you have a clear Chart of Accounts in place, you are setting your business up for a successful financial future. Keep your COA simple and stick to clear categories. You'll be much less likely to make avoidable financial mistakes.

I disagree with shop owners who say word-of-mouth (WOM) isn't as effective as it used to be. Unless those same shop owners use Call Tracking to quantify that statement, they are shooting from the hip. They have no real data to base it on. They are making a false general assumption based on a "hunch" or a "feeling" that Google and/or social media is making WOM less effective. I believe that Google and social media, if handled correctly, ENHANCES WOM advertising.

Joe, In our area the dealers are now charging by the 1/2 hour and they are also charging the fees as well! most dealers around here are 180 dollars and hour!

Joe. I thought the exact same way, our credit card processing fees were over 45000 a year! We charge and now we are getting more checks and cash, but I am able to not charge the fees at my discretion! I hate to say but people are getting educated on paying the fee. It's hard, I did a cylinder head on a Jeep last week the bill was over 4000, the fees would have been over 120.00, customer was told and they wrote a check, it's getting harder to hide and eat those costs.

Years ago I figured out what cards cost and added the proper amount to my labor rate. Very easy. I have a friend who owns a shop and did the cash discount or pay a fee on the credit card. His first month he had three bounced checks. I asked him how did that work out for you ? LOL Customers just want the bottom line. All the extra fees agravate me, IE: $10 fuel charge to deliver oil.

Why Toyota Champions Repair Shops and Consumer Experience #podcast #autorepairbusiness

We did exactly what you suggested, Joe. Because our average ticket was so high, we got a smoking deal on credit card processing fees. All, but American Express were under 1%. AmEx processing fee was 4%, but we didn't get many AmEx cards. I know of a few local businesses that simply don't accept AmEx cards because of their high fees. These were the same businesses that gave a discount for cash. My question was, "What's the difference between giving a discount for cash vs. paying a credit card fee?" The only reasonable thing I could come up with was the sale would end up being unreported income, aka skimming cash. Our average monthly sales were about $100K and just about everybody used plastic to pay for major transmission work. Our average monthly processing fee was rarely under $1K. Although we did accept cash and checks, very darned few people use those methods of payment. As a sidenote, we didn't even have a cash box! I actually preferred payment by plastic. Another fee we calculated into the cost of doing business was shop supplies. Like charging for credit card fees, customers feel a little miffed when charged for shop supplies. To many, it's like splitting hairs. The bottom line of our strategy was to have nothing but parts and labor on the invoice. Everything else was simply calculated into the cost of doing business.

A radio on in the background can be "tuned out" and isn't front and center in the techs' minds. But the earbuds are specifically for their attention and will interfere with their doing their jobs safely. Your techs may complain and resist, but at the end of the day, you are the one who pays for any injuries or damage (including through your insurance) because their attention was not fully on the job you are paying them for. Regarding cellphones and facebook/ebay/craigslist/etc. NO! Just simply NO! If they need to make a phone call or take a phone call for an emergency or an urgency then it should be on the shop phone. Too many distractions or opportunities for malfeasance if they are allowed to "play on their phones." Some of those emergencies or urgencies they have may be personal matters they have to attend to, such as doctor's appointments or a plumber for the leaking drain pipe or a roofer, kids' schools or daycare, etc. that can only be handled during business hours and not during their lunch. Oh, and ABSOLUTELY NO CELLPHONES ON TEST DRIVES unless it's been approved first (you know those situations when there is a possibility that they may need to call for a tow).

You make a lot of sense, and I agree!

Change of direction on this topic... EARBUDS! What are the thoughts on this? I have techs that you can walk up behind and scare because they are so focused in on the earbuds especially with noise cancelling. I can understand new technology and now we wont have radio station battles but its hitting a point I see lack of focus and am concerned on safety. How are you all dealing with this or have you even started to see the negative trends I'm noticing?

Frankly, I’m puzzled. This was a totally free LIVE event I hosted and there was even time for a live Q&A at the end. Responded to all questions, thank you to anyone who asked. The total training was about an hour and contained a slide deck of 320+ slides; so it was detailed. I was surprised when your first post was “Anyone got the 3 sentence or less summary?” My response detailed everything,.,, and I took the liberty of stretching to 4 sentences. Afterall, like I said, it was a one hour presentation! I appreciate your response to that where you said: “Thanks.”... followed by”What works exactly?” The live presentation took an hour and 320+ slides to explain it to all (I think 22) that attended. So being that I don’t have an hour to respond, what part is it I should explain? -The part about the way to create offers that are structured on VALUE, not price (so shop owners don’t discount or toss in free services or give-a-ways)? -Or the part about the fact that you don’t have to fork over thousands of dollars UP FRONT to create ads or postcards (that capture new customers at a cost of $140 each - That’s the shop owners details I took a screenshot of from a forum.) -Or the part about shop owners don’t have to spend a dime to acquire the new customer until that new customer is in their shop? (So there's no guess work!) -Or the part that it works even if everything you’ve done before was a flop; or you operate with a shoestring budget and think it’s too risky to layout all that money (in the range of $3,000+ as per examples provided on the training) or you don't think your shop is big enough to compete with the big box repair shops, franchised or chain operated shops, or even new car dealers? -Or the part about the delivery system that guarantees response? or, the fact that nobody else can do it? The response was so good I’m thinking about turning it into an “On Demand Training Course”. I’ll try to post it back here if I do that. Thanks for your interest! Matthew “The Car Count Fixer”

True story. Jacob, our mechanic, owns a 96 Dodge Pu 2500. He travels a long way to work and back 56 miles one way. On the way home, one night after work, blew his radiator. He knew he had to do something, so he found a large rock and pounded it in to plug the radiator and added fluid he had bought for his other truck at home. He made it home. Unbelievable. I thought it might be interesting to have a fun topic, just saying.