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Joe, I think this is a smart move for you. You and Autoshopowner.com have a lot of potential but that is a time committment. You could easily move into an expert role through the forum and yyour writing. I could easily imagine you an author, speaker, consultant should you have the inclination to do something like that.

Glad you found us! Welcome!

Why They Stay, Why They Leave Employees...

This is an ok article but really pretty basic. My guess would be that the authors never have had a lasting relationship with one shop. Having been in this business for eleven years and having been on the other side of the counter previously I can say that to me the best thing is for the consumer to find a shop they can trust and build a relationship with. I think that is the kind of place most of us on this board are.

The shops in the article below are the top 10 shops in the 2010 Motor Age Top Shops Contest. The number one shop is actually in the town where I live: Menke's Automotive - - Motor Age - Automotive training, certification & parts info

Welcome back Joe! We really did miss you. You keep things stirred up. Glad you had a good time. All I did while you were gone was work and make money!

You make a good point. Having a wide enough profit margin helps insure that comebacks and warranty items can be handled without stressing the business. Prior to opening our shop eleven years ago I spent about 10 years working in environmental consulting and contracting. Part of my job was estimating. We bid on literally hundreds of private and Federal, State, and Local governmental jobs. After all costs associated with a job were totaled we did 25% markup to cover overhead and we did 10% markup for profit. We were very competitive and while we made some money we never got rich. Where you tended to make your money was with change order and unit price items. In my opinion a shop that only charges 25-35% markup on parts will always struggle and it will never be much more than a job for the owner.

Besdides the doctor has never had to deal with Swedish or German or Italian engineering!

As a general rule we do not install customer supplied parts. Occasionally we make exceptions if we are exceptionally slow or if there are extenuating reasons. We are busy enough that we do not have to do this. The people with their own parts are not the people we want. I turned a guy down today who had his own brake parts. If we make an exception we usually up the labor.

Here are earlier discussions of this subject that you should read. Parts markup - AutoShopOwner - Automotive Management Network

Is this poltical correctness gone too far? A service shop owner in Limerick, Ireland, (stop laughing, it’s a real place) was ordered by authorities to take down his nudie calendars or be shut down. Nudie Calendar

Oh by the way I forget to welcome you to the forum . WELCOME! Tell us a little more about yourself and where you are located!

I do not know what your overhead is but my overhead is such that if I went to a 20% parts markup I would soon be out of business. In my opinion that is too cheap. For example on dealer parts shops are usually able to buy at a 25% discount over the general public. In my mind that is a bare minimum that should be charged on any part although on most things we try to do much more. The way our shop pay is structured at 25% I am breaking even on a part. I think one of the biggest mistake that small shops and start ups make is to not charge enough. This leads to a lot of issues. The owner has to work way to many hours to be profitable. You establish a reputation for being cheap and attract a clientele that are all price shoppers. The whole pricing structure is not profitable enough to allow investment in technology, equipment, more qualified personnel, better buildings, and locations. You do not have a great enough return on your investment. We have been working on our pricing because we have just not been profitable enough. As far as the $9.95 oil change it will attract a customer you may not want in the long run. While you are doing the $9.95 oil change the shop at $70 an hour will be fixing the cars of people who want their car FIXED. The $9.95 oil change customer is often the one who says just change my oil and DON'T look at anything else. How about offering something like an oil change and tire rotation for $25.95. That is the promotion I favor. It is not too cheap but it is attractive to someone who wants to take care of their tires. This is a customer more than likely to take care of the car.

While Government 'Acts,' Dealers Take the Reins Here is an article that I found informative. While we sell very few used tires (only the very best of our take offs) we do sell about 40% of our takeoffs to a local used tire reseller. We get $2-$3 each which saves us disposal fees plus makes a few bucks. However, in the current economy and with the rise in tire prices we are seeing more and more calls then ever about used tires.

It does seem like overkill to me!

GeeZ, welcome to the forum. Those are all valid points. What is your involvement with healthcare and how are you involved in the automotive business?

Ben it sounds like you are well on your way! I am glad that you do not have a partner. In the long run you will find that is for the best. Congratulations! Good luck and welcome aboard!

Me three!!!!!! With Joe gone we have lost the life of the party!

A few years ago a woman in her late 40’s to early 50’s walked into our shop with a friend asking to have a tire repaired. As I studied her face I could see she looked tired and drained, as if she carried a great load. I had the car pulled in, went out into the shop returning a few minutes later with the news that the tire was unrepairable and that she needed four tires on her car because they were all bald and worn out. The woman’s friend stepped in a quickly explaining that the woman’s husband had just died from cancer. All her money had been spent on the funeral and she had no money and no job. All the husband had left her was medical bills, debt, and a car with worn out tires. He said friends and family had been helping out as much as possible but they were tapped out. When I heard this I offered to install four good used tires the size the woman needed for only $20 each (they were in very good shape). The woman said she would be back on Monday but would only replace two tires because it was all she could afford and she couldn’t get the $40.00 until then. My heart was sad as I listened and watched this scenario. The woman was slump shouldered and she left the shop. She did come in on Monday and got the two tires. What disturbed me most was this thought: When she was married her husband was this what she saw as her future? Was this the plan? Was this the way her husband had intended to leave her? Did he want her to remember him only for leaving her with a pile of debt, no way to pay the bills, no income, and four bald tires on the car? I have said all of that to remind all of us that we need to be sure that we have plans in place to take care of those we love when we pass from this earth. I am so happy that about four years ago I took out enough life insurance to make certain my wife of 36 1/2 years is taken care of. It hurts every March when I come up with the premium but I tell myself this is a guarantee that my wife will never have to work at Walmart. I strongly encourage everyone of you to take a serious look at what you need to do in this area of your life and business.

That is better. Thanks!

This is not my website but it belongs to some friends who use to be Car-x Franchisees but withdrew in 2006. What do you think about this website. I really like it: Welcome to QC Auto Service - Brakes, Mufflers, Tires, Suspension, Alignment, Oil, A/C, Engine Diagnostics & Transmissions

Bye Bye American Pie http://www.brasschecktv.com/page/810.html

Since this thread is about Tequila I thought I would drop this one in here:

Phone quotes for undiagnosed problems are truly a waste of time for everybody. As often as possible I try to talk the caller into the shop. I do this by using humor, showing interest and compassion about the customers problem, educate them on the complexity of vehicle problems, and indicating that potentially the problem may be less than what they think. Often this will work or will invoke more information such as the dealership told me this is what I need but I am trying to find a better price.