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Showing content with the highest reputation since 04/03/2024 in Posts

  1. I was a one man shop with 2 bays for about 10 years and just last year hired my 1st tech. I made money from day one but my overhead was extremely small compared to yours. I started out small with no debt and bought tools as I went along. I also didn't have issues with having enough work. My focus has been quality and honesty. Sounds like you need different customers. Whenever I have someone complain about price I usually don't end up working for them. They are the price shoppers and are only loyal to their wallet. Don't let them persuade you to lower your markup, that's a dead end street. You may need to raise your prices which may scare those price shoppers away and attract good customers that don't ask how much is it going to cost but when can you do it. If you could bill 30 hours a week that's $14400 a month. Some weeks I would bill 30 and some I would be able to bill 40 plus, just depended on the jobs. It takes some serious organization when you're by yourself to bill 30 to 40 a week. I usually don't work late either. My production went up when I switched to Shop-Ware for my management system. Wish you luck!
    4 points
  2. I purchased my shop from my friend and boss in 2000. There were 4 of us. My brother wrote service, 2 techs and myself. In 2005 I joined ATI. Today there are 13 of us and we purchased our own property in 2006. With the cost of overhead and the high rate of inflation you must find a way to charge more for your service. We do not quote jobs broken down. We quote the finished job. Do not make it easy for people to shop around. We charge $48.75 per 1/4 hour. Seems a lot less than $195 per hour. We use a parts matrix. This allows you to charge more for low price parts. a 20 cent fuse should sell for $2. A 10 X mark up. Obviously you can not charge this for a $100 part. Your average margin at the end of he day needs to be above 50% and shoot for 65%. How are you calculating your margin? Part cost X 1.5 is not a 50% margin. Part cost divided by decimal percent yields the correct margin. $12.50 cost divided by .50 % margin is $25 . You cannot survive on the suggested margin of the parts store or dealer. Remember your competition is manipulating the hours charged for jobs even though they may have a lower rate. Also if you cater to cheep customers that is all you will ever have. Never sell on being cheep. Always sell on the high quality parts and skills you provide. You must take off your mechanic hat and put on your businessman hat. If you do not learn how to charge appropriately you will never grow and likely not survive.
    3 points
  3. 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???
    3 points
  4. 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.
    3 points
  5. We provide major equipment and some specialty tools, but for the most part, the technicians are responsible for providing their own tools. Having said that, Offering a spiff or a bonus of a credit on the tool truck can be a great incentive to increase performance or productivity. Especially for a tech in his first few years trying to build up their tool collection.
    3 points
  6. Thanks! This is CRITICALLY IMPORTANT. This filing is due by Dec 31, 2024. Penalties start on Jan 1, 2025 at $591 / day for not filing. By Jan 17, you will have hit the maximum penalty of $10,000.
    3 points
  7. Joe, I can see that for invoices above $2k or $3k, if the customer knows ahead of time. I see how that makes sense to the business owner (and their accountant). But I’ll bet to the customer for the lower invoices, you’re trying to eek out another $10 or $15. AND, they could think, where else are you eeking out an extra few bucks (or more)? Apparently you are not profitable enough to absorb that. Why? Not enough (good) customers? Why? It’s a convenience for them. So they’re stuck paying that or write a check or go to the bank and get $1000 in cash??? Plus many get cash back or flight miles, which you’re also taking. Remember searching airline prices, comparing prices, making your decision, only to find out at the very end there are additional charges? Taxes, fees, and those darn baggage charges. Did you like that? I doubt it. I think credit card fees fall into that category (for the customer).
    2 points
  8. I have done my own for years with good success. The past 7 months or so it seems to be falling off. My spend is almost double for the same results. I am curious to see if anyone offers advice in this thread.
    2 points
  9. What matrix are you pricing your parts at? Our company marks up a minimum of 50-65% on aftermarket parts, 30-40% on special order and dealer parts. (We are located 10 minutes from D.C.). We offer a 2 year/24k mile warranty and remind our customers that we offer that warranty only for parts that we supply, no warranty on customer supplied parts. Our labor rate varies from $149-185 depending on whether it's a standard vehicle or a larger fleet vehicle, but we also keep our labor rate a bit higher as a cushion to cover payroll, parts, rent, etc. and also so that we can offer our loyal customers a 10%-15% discount depending on their affiliations. We work with multiple different referral and affiliate programs such as AAA Automotive Program, Costco Auto Care Program, and RepairPal for referrals as well. Maybe try targeting a specific consumer in your area, ex. 1/2 off oil change for local teachers to pinpoint your desired customer base. You could also get certified to become a state inspector, or Uber/Lyft if you have them in your area. Hope 2025 is a great year for you!
    2 points
  10. I did the same exact thing. Sometimes we need to take the emotions out of the situation, and do what is right and for the greater good.
    2 points
  11. I would say yes, but my issue was I kept a tech to long because I liked him, he was a nice personable guy, just took advantage. I had several talks with him but he continued his non productive ways. Issues that arise from that are: the other guys in the shop think that they can do the same because he got away with it and they did not see me doing anything about it. So you could say this is a culture issue from poor management.
    2 points
  12. We switched to Tekmetric 1 year ago. It is ergonomically easy to use. Most other shops around this area have done the same. We previously had and liked Mitchell, although we like Tekmetric overall better, as it seems to flow better once used to it. A steeper learning curve(than Mitchell) for me, but then everything seems to be increasingly so these days! The other users like it, and learned it quicker. Like a microwave oven, we probably only use and need 25% of what it can do overall. Previously had Mitchell 1 for about 10 years. 2 others for about 7 years each before that. All seem to lose support when something changes or they get acquired and purchasing company vision changes (like a lot of things). Hope Tekmetric hangs in there for a while.
    2 points
  13. The shop that I own now was using MItchell1 and after about 6 months we switched to Tekmetric as our system. Took about 2 weeks to adjust and would never look back. The online based systems work so much smoother and integrate to so many different programs that make integrating your marketing, followup and communication almost seamless. I like that I can pull my shop information up on almost anything that has an internet connection.
    2 points
  14. Good afternoon, I am using Tekmetric right now, I have used NAPA and Alldata in the past. I like what I have but... always a but, the cost is out of control for these monthly subscriptions. I am paying around $400. with the tire add on. Then you add on CRM and it another $300 per month. I am very happy with the program and all of the features. It flows well, easy to train new employees. It is just the cost of these things is crazy.
    2 points
  15. I just dealt with a warranty company for a small amount, $400 and it went very smoothly. He said his higher-ups said not to be too picky for small amounts: not worth it. Don’t know what "small" means. Under $1000? He agreed to MY labor time. AND he somehow “saw” our labor rate at $145. I said I don’t know where that came from. We’re $185. He easily agreed. And agreed to my parts price. We’re $20 over normal labor. YEARS ago a warranty guy said I could post a sign that says: Insurance labor rate is $$$.
    2 points
  16. 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.
    2 points
  17. 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
    2 points
  18. 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.
    2 points
  19. 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.
    2 points
  20. 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.
    2 points
  21. We chose not to deal with aftermarket warranty companies at all. Not work the hassle for our small shop.
    2 points
  22. 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.
    2 points
  23. 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.
    2 points
  24. The Most Badass Way to Get More New Customers for your repair shop Without Wasting a Dime on Advertising This is The Most Badass Way to Get More New Customers for your repair shop Without Wasting a Dime on Advertising…even if your last promo, postcard orf digital ad was nothing more than a Big Waste of Money! I’m hosting a brand new LIVE Training Sunday, September 29th at 7:00pm Eastern. It’s totally free and you’re welcome to join! I’ll show you things nobody else will! I promise Register here: https://carcounthackers.com/badass Can’t wait to see you on the call! Matthew “The Car Count Fixer”
    2 points
  25. The 2024 Ratchet and Wrench Management Conference has already taken place. You can put the 2025 conference on your calendar... OCTOBER 8-10, 2025 Renaissance PHOENIX GLENDALE RESORT GLENDALE, AZ
    2 points
  26. Actually, I was recently on a zoom meeting hosted by Joe (Marconi) and the focus was about selling service and maintenance. The discussion quickly escalated to booking the customer's next service appointment. In the discussion, people talked about educating the customer... you know... why do I need my brake fluid changed or flushed; do I really need to get my oil changed every XXX so many miles, etc. I couldn't agree more! In fact, just staying in touch with the customer is HUGE! Current stats prove that over 68% of repair shop customers leave businesses because of INDIFFERENCE! In other words, they think that you don't care! My comment was based on the fact that because today, video is so easy, could anyone send me a link or show me the bunch of "customer support videos" they made - and I'm talking about YouTube Shorts - 1 minute or less - made on a phone- where you can say (and show) a customer... this is what happens with whatever... this is what it looks like... and here's how to prevent it! Guess what? Nobody had anything! (Boy... that was a surprise!) Lot's of talk - no action. Then they wonder why.... Look, I could go on and on... but I've got work to do. As for your comments on DVI and pictures, I don't know a shop using that technology... I run a Text Message platform that is guaranteed to put car count in the shop... (as in it works your your money back guarantee!) and I can't tell you the struggle it is to get repair shops to even listen! Matthew "The Car Count Fixer"
    2 points
  27. Ha! YouTube as a sales tool! 100% Agreed! Just can't understand why repair shops don't do a lot more of that. It's not a quick win, but people get to know, trust and like you... then they bring their car in for service. Sheesh... sometimes feels like you gotta literally draw it out for them! Thanks! Matthew
    2 points
  28. Now me! I got sucked into the photography game. There's always a new lens, filter or something. Almost as bad as golf! Anyway, I move around local car shows and try to create the picture that the car manufacturer may have used when they were trying to get you to buy the car! Expensive hobby, but I enjoy it! Matthew
    2 points
  29. My shop is air conditioned. It adds approximately $250 per month in the summer to the electric bill. When the heating system was replaced it added about $6500 to the cost. My previous shops were not air conditioned, we did try the swamp coolers, fans etc. When it gets hot like it has been some days we saw a 50% loss in productivity, normal hot days maybe 15 to 20% loss. Now we have no loss in productivity, we have happy employees, a happy boss and a happy wallet. To see the employees happy not complaining and productive really is priceless.
    2 points
  30. In regard to employee retention.... it depends upon the employee's attitude, but I'd say it's a net win for the shop. We've been doing the tool allowance for the last 6 years. New guys, especially young guys can be a little funny. We try to hire people in their early 20's (Gen X-ers) which means it's inherently impossible for them to see the big picture. Things like KPI's, profitability and efficiency are not even on their radar much less what it truly takes to build on a career and self-reliance. We try to teach and mentor them on every aspect of not only our business but their career as well. Taking a young man and opening his eyes to the monumental scope of our business is no small chore. Nor is opening his eyes to forward-thinking the scope of his career and his life in general. If a guy can be observant, see the big picture and make it past the first year, then they start getting a little hungry for that allowance and want to see the 2nd year through. By the time the 2nd year is up they should be taking more notice of how well the rest of the shop is kept equipped, how bonuses are paid out when we surpass our sales goals and how they can improve their situation at the shop through their own initiative. We pay hourly at our shop and work as a team. On days where there is more work than a man can say grace over, the best suspension man does suspension work, the best AC man does AC work, the best diagnostics man diagnoses. On days where there is not enough work to go around, the best diagnostics man or the best AC man or the best suspension man will teach what he is doing to anyone with an interest in bettering himself (and we notice who is trying to better themself and who isn't). Also, nothing is below any man's pay-grade. If I need one of my L1's to do an oil change because my B-techs are hoofing brakes and ball joints, then the L1 does the oil change.... and an L1 level PMA. Where the teamwork pays off is at BONUS time. Through the years we have deduced what annual sales figure we need to achieve to cover all expenses and make a nominal profit. Once we've achieved that goal, each team member receives a 3%-5% bonus for every dollar in sales beyond that number. We also pay for ASE Tests and give pay raises for successful passage of the tests. The mechanic needs to take the initiative to study and schedule their tests, but they can ensure a yearly raise if they take an interest in becoming a professional, well-rounded mechanic. On the other hand, if a new hire turns out to be your average booger-picking, mouth-breather.... they're not observant, cannot see the big picture or is generally unmotivated he's not going to last long. Unfortunately, there is no avoiding these people. They can ace the interview, talk a big game about how they want to learn, be enamored with the goings-on for the first few months and then totally implode. We've had guys quit after 1 year and we've had guys quit after 1 day.... lol. This is after we've invested a few thousand dollars into bringing them on board and giving them every tool they need to succeed (not just physical tools in this case but training, mentoring, etc). Even in those cases, we're glad to see them go, we pick up our tools to help the rest of the crew with the workload and go back on the lookout for the next potential winner. So, facts of life.... turnover is going to happen, 1 out of 3 hires is going to be a long-term hand, not everyone is going to get your program and appreciate it. We believe our hiring process, our willingness to help our guys be better mechanics, our work hours and our compensation plan are superior to just about anything the competition has to offer and by that standard we don't get our feelings hurt when a guy moves on because we just move on too.
    2 points
  31. No problem hiring experienced dealer techs as I was one too for 25 plus years, some times they do get a little slow not being on flat rate anymore but with my motivation and guidance they figure it out that what I ask for is to get all work done for the day and done right we can all have a good time at work and get paid well. I have 6 techs and 2 writers plus me and the wife. We do 2.5 mil a year and my guys love me. Life works out good treating customers and employees good.
    2 points
  32. I still recall a comment from a customer (back in the '90's) re our Porsche repair shop that had a fair location. He said: This place is a "find." We did well, possibly because we specialized in one car brand. That owner also bought the land.
    2 points
  33. My first body shop gave me the same delemia, spend the big bucks for a great location, or save that expense and go to a lesser exposed location. Talked to an established business owner who I thought knew more than me and I asked go to the best location or on a back road? He said that "IF" you are really good at what you do, priced fairly and run a honest business, folks/customers will search you out. I went the off the main road route and did exceptionaly well. He was right, at least in my case that the money we saved rent wise went into equipment and the best materials I could obtain. We were as new as anything, but after every customer we got more, and allowed us to grow at a nice pace. Might not work for all businesses, but just look at the amount of small businesses on side roads, they all can't be doing poorly. And in many cases, I search them out like folks did for me.
    2 points
  34. Well, I am old, been in business 55 years. What I have found and continue to do. You know what has worked in the past, because you always monitor it. If it doesn't work, get rid of it. We are on the west coast. As of today, we are up 39% for the year. That includes being shut down a whole week for a storm. I will say it has slowed down to the effect of we were making appointments out a whole week, now we are working on the current week. A couple things I will say is, know when it might be slow and do what it takes. For us it is our rebate check $39.23 mailed out in 3 groups, February, March and April. Our new snail mail to new customers 3 times over 6 weeks. Probably the best thing we have done is have the phones forwarded to either my daughter or me. We have Log me In on our home computers and can make appointments on the week-end. We have almost every month something going on from coat drives to Free brakes with donations for the food bank. Loaners were are biggest thing, especially after Covid. No more rides. We have a really small parking lot. We encourage our customers to pick up as soon as possible . No care leaves without paying.
    2 points
  35. Good afternoon... 2nd half of April was challenging... Our Sales were close to last year but not enough. We were short 9%... We're doing google ads and that works for us.. Again, we're a Specialty shop, We're a brakes & front end shop big challenges for this year. We have to keep in mind, we're in a Presidential year. It has been my experience that in this type of year Sales are more of a Challenge. Also every things is very expensive, as consumers, we don't have the buying power, which creates a big problem for the consumer.. I am really good about finding solutions to the problems but at this point my view is very cloudy and gray, which makes it very difficult to have a clear view. We live in an area where there are several small town within our town and we advertise in the surrounding areas. I am going to consider to reduced our advertising area to just within town and see what results throws this approach Thanks JP
    2 points
  36. For me the most difficult one is Failure to Adapt to Market Changes , While running the shop day to day it is difficult to look down the road 3 months, 6 months or longer. We tend to make adjustments reactionary not proactive, : OMG its busy lets hire a tech, OMG were dead, lay off a tech. So I have learned to have about 30k in the bank for winter just to be safe. Proper planning is the key. I will always remember a story about a toy store that would have a line of credit to make it through the summer, then pay it off during the holiday season. The problem was a couple of slow holiday seasons and they could not repay the loans and lost their business. so save money for the slow times and it helps to keep the cash flowing.
    2 points
  37. So far this year through February the shop is up 7%. Profit is down a bit. Everything has gone up in cost. labor, parts, Insurance, dumpster, management systems, uniforms, etc, etc. So watch the margins.
    1 point
  38. We use Autovitals & RO Writer & just did the update last week to RO 3.1 and had no issues. Your Carfax will stop working soon and you will continue to get error messages if you don't do the update. RO Writers next update will be cloud based thankfully! Since the two systems communicate and both keep time, I personally would perform the latest RO update, then schedule a call with Steve from Autovitals or whichever tech support specialist is available to obtain the reports that you are looking for. We track different metrics and I'm not sure how your system is set up, but I can tell you that Autovitals is able to run more reports on the back end than I personally imagined and those reports can be exported to excel, which can analyze the data and key metrics to give you the data that you are looking for . I highly recommend a training session with them because the data that you are looking for is likely already available on the back end! RO Writers new portal is a great resource as well. Good luck!
    1 point
  39. Personally, I don’t want a bunch simply “satisfied” customer reviews; I want the thrilled customer reviews. I prefer the first time customer. We give them over-the-top service, helpful suggestions, and a fair price. We are in good spirits, joke with them, welcome them to “our family” of customer/clients. When we’re finished with them and they are heading to their car, I use the “Colombo” technique by walking out to their car as if I had an afterthought and say; “Hey, if we helped you today, please give us a review.” They are usually shocked that a repair shop can be so helpful. Which make for an exceptional review. I gotta believe that someone reading that says to themselves: “I GOTTA go there!”
    1 point
  40. Hi Joe, We've just decided to switch from Tekmetric to Autoleap. The main reason is that, when it comes to types of discounts, the way taxes are handled in Canada is different from how they're dealt with in the U.S., and Tekmetric is not willing to adapt their system to accommodate Canadian clients. Another reason is that Autoleap seems more flexible and versatile than Tekmetric. I’ll keep you posted once everything is set up to let you know if the change was worth it!
    1 point
  41. 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.
    1 point
  42. 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
    1 point
  43. 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”
    1 point
  44. We have been buy all this year. We have such a small parking lot, we have to plan our days very carefully. Sales are up, but some due to raised labor rates. Curious if every body is experiencing his. We are having problems with parts mainly
    1 point
  45. Please put this topic in a better place for me. I would like to know how many shops have air conditioning for their shops. Our office has air, but not the shop. If you have it, has it paid off and has it made a difference in you technicians.
    1 point
  46. When I look back at my 41 years as an auto shop owner, there is a direct link between my best and most profitable years to the quality of my employees. Contrary to that, the years I struggled in business was directly related to having the wrong team, more specifically, a bad apple or a few bad apples. If you want to truly achieve great things in business, you need to have great people around you. Take a hard look at the people you employ now. Would you hire them again? Think about this: If your auto repair shop is reliant on your skills, your intellect and solely on you, your business will eventually plateau and stall. You need great people around you to build your empire. The strategy of finding the right people for your company is ongoing. Lastly, once you have assembled the right people, then you need to do all you can to give them the training, the coaching, the support, the praise and recognition to bring out the best in them.
    1 point
  47. Also, don't forget about Social Security. People who get paid "under the table" are unknowingly clipping themselves out of a lot of S.S. pay later in life. Earlier in my career, I worked for a family who would pay us by check but insisted we cash the paychecks with them. They had a safe in their back office full of cash. They also had a construction company in Chicago that I now suspect took in a lot of cash, but who knows? Now that I'm collecting S.S., I've come to realize they weren't reporting my income on the 941. Thanks to those clowns, I'm now collecting much less S.S. than I should be because they weren't reporting my income. I came to learn that not reporting all income comes back to haunt a person much later in their life.
    1 point
  48. Jay, Owning the real estate is where you will make easy money. In my opinion there are two basic schools of thought when it comes to owning or leasing the real estate. They are both applicable in various situations and I could see using a combination of both strategies to your advantage. 1. It is a drag on your balance because of the capital required to purchase The asset is appreciating over time so it's a longer term investment with a stable return. 2. Leasing allows you to expand rapidly with less cash. In many cases you can lease a building and get 1-3 months discounted or even at no charge to ease cash flow on start ups. I prefer to own the properties in a separate company and lease to buildings and equipment to the operating companies. Part of that strategy is then I can set a reasonable (high cap rate) lease rate for the store which the manager can see and make them responsible for the entire P&L of the company. I don't run any type of personal expenses to his store, I do it through the property company. That way we have clean books in the operating companies and the managers don't feel like I am "stealing" profits from their company that they are responsible for operating. Any type of rebates, gift cards, or cash that is given to me for the store, gets handed to the center manager. This is so that they understand I am not taking anything from their company and I expect the same level of integrity from them. A couple of items to note is a number of owners run a great deal of personal expenses through their company and then wonder why they are not making any money. When you go to sell or think about selling you have dirty financials and the sales price will be discounted. All those personal expenses that you ran through the company ends up costing you much more than the actual benefit. I try to run financials as if I was going to sell the business today. Some of it is also physiological as I hear owner talk about how hard they work and that they are not making money yet the business is paying for all their toys, vacations and entertainment. They then cry to employees about how they are not making any money which hurts morale. By setting a higher lease rate then you can run your expenses through the property company which typically have very few expenses and it makes it much easier to value the operating company because you can make an easy adjustment to what you "overcharged" on the lease. My disclaimer is that I am not a CPA, Tax Attorney, Financial Advisory or anything of the sort, and you should consult with professionals before making any decisions affecting your future.
    1 point


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