I don't think we are going to stop the EV from becoming "somewhat" mainstream. But there are a few things that many people don't fully understand.

For one, while the EV has no emissions rolling down the road, BUT how it got to be an EV is a process that does take a toll on the environment. We talk about fossil fuels and renewables; Well strip mining entire mountains for the elements needed to manufacture the batteries is NOT following a clean, renewable energy-source protocol.  

Another factor is the infrastructure.  I was born and raised in the Bronx, NYC.  The apartment buildings in the City many have hundreds of families, all who own a car, maybe two cars. How are they going to charge their cars?  Throw an electric cord out the window from from 12th floor and hook up their car.  I know a lot of this will be figured out, but it will take time.

I don't know where the industry is ultimately going, the more we know and stay engaged, the better we will be, 

I think that we are going to see more of this, especially with the lack of rebuilders, and the fact that many of these engines have problems. 

I remember many years back when the auto repair industry was split up into different repair/service categories: There were Oil change shops, Brake shops, Alignment & steering shops, Electrical shops, Speed shops, tires only stores, exhaust shops, tune up shops, Carburetor shops, Radiator repair shops, Transmission shops, and probably a few more that I forgot. 

All of the above segmented repairs shops prospered at one time because there was so much mechanical repair and service work. 

Things have changed. Better? Worse? Or does it even matter these days? 

Scary. 

12 hours ago, Transmission Repair said:

Once we hit 1.2M/yr. in annual sales, I didn't have much to worry about.  We were at our production limit without putting on a second shift.  Just the thought of that kept me up more at night than anything.  We were at capacity and were hitting $1.2M year after year WITHOUT setting a goal.  I just simply had it in my head to do more and more and more with no real number in mind.  But when we hit our production maximum, wanting more was a moot point.  We were a transmission repair only shop, no G/R.  I learned from a good friend who worked for Aamco corporate for 33 years that we were #5 in the nation for gross revenue.  I couldn't believe it.  We were #1 in our state.  Until he told me all this, I just sort of took it for granted.

I didn't really lose sleep during those years because everything was so automatic.  Most job were repetitive.  Most jobs were "canned job" and all we had to do on each job was to edit the parts list as needed.  We sold by YouTube.  I would shoot a short 3-minute video after the transmission was disassembled and either Email or text the link to the customer.  Once viewed, I would send the final estimate which was always spot-on.  In the seven short years we were at that location, our YouTube channel had grown to over 2,200 videos.  It was the assumptive sale.  Half the customers would either Email or text me back asking when their car was going to be done and the other half would call.  Remember these are big tickets.  Half of all customers would give me their CC info over the phone before we even started the repairs.  That was from being in an affluent area with a freeway location with a traffic count of 250K vehicles per day.  Lucky us.  To see our "Show-N-Tell" customer videos, check out https://youtube.com/user/LarryBloodworth

Now that I'm retired, nothing keeps me up at night. 🙂

Things that keep shop owners up at night is another topic we should discuss. 

Your ability to have a solid marketing plan that conveyed trust and transparency through video is amazing. Video is a great way to build that strong bond with customers. 

2 hours ago, Transmission Repair said:

Here's an ad out of the old Sears catalog.  This was waaay before baby seats and seat belts.

https://drive.google.com/file/d/1nO9OhyHJVT4hC1LVWx-uN-fLtWhTH-e_/view?usp=sharing

Wow! How times have changed! 

The more we learn about Sears, the more we understand how out of touch this company was. 

Below is an article I wrote found in the recent Ratchet and Wrench Magazine. Read it, I am sure all shop owners will relate. 

www.ratchetandwrench.com/articles/12124-marconi-shop-owners-what-keeps-you-up-at-night

Marconi: Shop Owners, What Keeps You Up at Night?

 

Joe Marconi

January 28, 2022

It’s 6:15pm, Friday night. As you lock the door to your shop, you reflect on the week and happy that it has come to an end. The events of the past few days consume your mind: Employee issues, expenses going up, and every other detail about running your business. You get into your car, turn on the radio, take a breath to relax, put the car in drive, and you begin your ride home. All is good. Or is it? 

While you may have locked the door to your shop, you haven’t locked out all the emotions and issues that are still stirring around in your brain. A few hours later, it’s time for bed, you’re tire and your body needs sleep, but that becomes an issue too. The hours pass and now it’s the middle of the night and you find yourself staring at the ceiling. Sound familiar? You’re not alone. 

Only a shop owner knows how it feels to be a shop owner. The challenges and struggles of running a business are ongoing, even after years of working on the business to get every detail dialed in just the way you want it.  This can lead to a condition that plagues many shop owners; the dreaded 2:00am unplanned wakeup call.    

There are many reasons why shop owners have a tough time sleeping. Worry about their business, the feelings of being responsible for so many people’s lives, the second-guessing yourself if you made all the right decisions, and perhaps the most harmful of all are the “What-ifs.” What if Larry, my manager, leaves? What if my lead technician decides to quit? What if we don’t hit our sales goal?  All these what-ifs increases brain activity, and while you are desperately in need of sleep, your conscience mind is in high gear, wondering and worrying, sometimes until the sun comes up. I know it’s aggravating, and while I don’t wish it on you, not being able to sleep at times means you care.

As business owners, you are committed and responsible for not only the success of your business, but for the success of others around you. The worry and fear that things make go sideways at any time can haunt you. So, your brain continues to review and relive all conditions and situations that have occurred and wonder about the things you think may occur. Your body gets stuck in fight or flight mode, a natural human response to perceived or real threats. This condition overcomes you and prevents you from getting a good night's sleep. 

What do we do about this condition? First, we need to recognize it as part of who we are and then identify the reasons why we can’t shut off our brains. It usually boils down to issues and problems we feel we are not in control of. For example, you feel something isn’t right with your staff. You feel there’s a morale issue. Then the thought of losing employees enters your mind, and that scares the hell out of you. 

The best way to approach this fear, and any fear, is to confront the issue head on and do something about it. Make it a top priority to sit down with your employees. Find out if your fears are true, and if so, deal with them head on. Getting employees engaged and improving morale will and calm down your fears of people leaving you. However, you should also consider a recruiting plan, to build a pipeline of potential future employees. The point here is to be proactive with any issue that’s bothering you and not sit on your hands hoping and praying that things don’t go downhill.  

There will always be challenges in business. Have faith that you can overcome those  challenges. Build a company with a strong culture and with great people around you. Also, learn to rely on your employees to take some of the load off of your back. I know you feel that it’s your shop and that the buck stops with you, but trust me, your employees want to help, and they can help.

One last word, make sure you have clearly defined goals. Goals give you purpose, a clear direction, and provides a sense of accomplishment for you and your team when they are reached. This will go a long way in keeping you in a positive mindset, which will help with getting a good night’s sleep.  

Tonight, when you mind begins to shift to business issues, remind yourself that this is a normal reaction. However, it’s also important to be thankful for all the good in your life. It’s far better to focus on positive thoughts about family, friends, and accomplishments. Remember, your business should never consume your life, your business should enrich your life. Now get some sleep!  

17 hours ago, Transmission Repair said:

The technical training classes might have been less than optimal, but the training trip was great for team building and morale.

I do hear that a lot, about morale and team building. 

Great comment! Call tracking can literally be a goldmine. Thanks for the post! 

More shop owners are crunching the numbers and realizing that in order to thrive, it will come with the right labor rate, and labor dollars.  I too have seen shop owners more concerned with labor margins, than part margins. This is a step in the right direction, in my opinion, especially when so many jobs today require little to no parts, such as complex electrical problems and computer-related issues.

I also agree that with increased labor rates, shops can pay their techs better, and in fact, all employees. 

Continuous training is one of the keys to success in any profession.  Everyone needs to grow, whether they are business owners or employees.  It's too bad that you had a few bad experiences with training, but I guess there is good and bad in everything. 

16 minutes ago, xrac said:

That is why the faintest ink is better than the longest memory. 

Ha! Love it!

Take a look at the Forgetting Curve chart below.  Does anyone need a better argument for continuous training?  

4 hours ago, Transmission Repair said:

What does it matter what other shops charge?  To me, that's not even relevant.  I base OUR labor on OUR costs.  I say piss on the competitors' labor rate.  Their labor rate is mostly based on competition and what the market area can bear.

I base our labor charges on the job, not by the hour because we are a transmission repair specialty shop.  There's a whole lot of the same thing over and over.  Business volume, production capability, and efficiency rate will affect labor rates.  I use the following profit model: 

Parts = 20%
Labor = 20%
Expenses = 40%
Profit = 20%
And I work backwards with those percentages to calculate parts and labor rates.  G/R is different but that's how it's done in the transmission repair industry.

Amen.  A shop should always base their prices on what they need to earn a profit, never the shop down the street.  I guess it's nice to know what other shops are doing, but in the end, you need to know the numbers of YOUR business, then set your prices accordingly. 

5 hours ago, Transmission Repair said:

We use YouTube to help sell transmission work because transmissions are usually big money.  I shoot a short 2-3 minute video and either Email or text the link, followed with a .pdf of the final estimate.  Final estimates are always written in stone.  If we find something else that needs to be done, we eat it.  The video is basically a bench sale after a teardown of the customer's transmission to let them know what the parts will run.  They already know the labor.  In only 7 years, I ended up with over 2,200 "Show-N-Tell" videos on my channel. ( https://www.youtube.com/user/LarryBloodworth )  Transparency sells.  Half the time I either get a phone call, text, or Email giving me an indirect approval by the customer asking "When will it be done?"  No conversation needed.  The other half the time I need to handle sales objections, usually over price.  YouTube is our secret weapon for transparency and increased sales.  I like assumptive sales much more than conversational sales because I'm not that good of a talker.

 

I really do believe this type of advertising/marketing promotes overall value. You mention transparency, that too has value to the customer.  We did something very similar, using a company call True Video. The tech would make a quick video of the inspection, which was sent to the customer showing any needed work and why.  In my opinion, anything that engages the customers and moves their mind away from price is a win. 

5 hours ago, Transmission Repair said:

The best way to find out if they pay their rent on time is to ask their current landlord.  Look at how they pay their property taxes; it's public record in most states and readily available.  I would think twice before I sold or lease to someone who has never been in business before.  List you business/property on BizBuySell.com and LoopNet.com.  They work really well.  I had a buyer for our real estate within 3 weeks on LoopNet.com.  You can also find buildings/real estate to lease on LoopNet.  Today, in 2022, it's much easier to find something to lease or buy than ever before.  It sure beats the old fashion method of just driving around and looking.

Another thing to consider is the daily traffic count.  We were blessed being on I-15, the only north-south interstate in Utah.  The daily traffic count was around a quarter of a million vehicles a day.  A good location with a high traffic count is very important to the success of any shop.  No matter what, do your due diligence whether you buying, selling, or leasing a shop.  Don't do like I did and half-ass it. 

Great advise!  I agree, you need to perform your due dillegence, and also speak to the right professionals.  Put the plan on paper, it becomes real at that point. 

16 hours ago, Transmission Repair said:

I only half-assed qualified him.  I saw he was years behind in property tax on 3 of his other locations.  So, I set the rent with an extra $1K/mo. more at $11K/mo. which gave me enough money to pay the property tax.  Everything else, like you suggest, he let go to hell in a handbasket.  In 5 years, sales went from $1.2M/yr. to $400K/yr.  That now made his rent 33% of his revenue and was the reason for him skipping out of a 10 year lease.  I should have exercised more due diligence.  Let this be a lesson for all.

I have seen this before, and yes, let this be a lesson for all! 

Shop Owners, do you have an apprenticeship program at your shop?  If not, why not?  

With so many shops looking for techs these days, perhaps one of the best ways is to grow your own. On of the best programs out there is the NAPA Apprenticeship Program.  https://member.napaautocare.com/getmedia/3f59adca-04c7-4be1-9f79-c551a25f0065/1-AutoCare-Apprentice-Program-Handbooks.pdf?ext=.pdf

I know, I know, you may have immediate needs for a tech, I get that. But if we all start today to hire an apprentice, we are building for the future. And with the right program, you can get a tech up to speed in a lot less time than you think. Plus, how long have you been looking for that tech you need?  

I would like to hear from shop that have an apprenticeship program, and how it's working for them. 

21 hours ago, Transmission Repair said:

I'll say!  It's terrible, sad, and pitiful all at the same time.  I don't really like talking bad about anyone, but this guy takes the cake.  I've been taken to court by a customer ONE TIME in my career and that's where I met this guy.  He had 2 customers in a single day.  He goes to court regularly, usually monthly.  He usually wins because his R.O.s and warranty have so much "fine print" and conditions.

Half his shops don't even have lifts, they have oil change pits with drive-on ramps.  How'd you like to R&R a FWD transmission without a lift?  Most of his installers are novices and don't know any better.

I've never been a landlord before selling my business and leasing my building to this guy.  I couldn't have picked a worst tenant if I'd tried.  Lucky me, huh?  I sold my building to a young plumber with a fleet of 40 trucks that was a pure pleasure to deal with.  I only wish I could have had him as a tenant.  

If I had to offer some advice to others, I would suggest to do a background check on tenants and not just take money from the first guy that has it like I did.  Investigate the buyer.  Be selective.

Yes, Agee.  As a landlord, it's your responsibility to qualify the tenant.  Plus, never assume that the tenant will take care of the building and property the way they should and obligated to do as per their lease agreement.

Trust But Verify! 

2 hours ago, newport5 said:

Trust from a long time, loyal customer is almost a given. The trick is to create that trust earlier. I believe it takes a few steps to get there.

First, become a friend of your customers. I don’t mean a beer- or coffee-drinking friend, but that is not out of the question. There’s a general belief that friends don’t take advantage of friends. Find out about their kids, their interests, their vacations. That is, find out about them. It helps if you share something about you.  Seek to learn something new at every phone call.

Second, don’t try to sell every repair recommendation now. If you’re worried about no work, there’s probably a customer coming in tomorrow with work you recommended several months ago. This builds huge trust. It shows you’re looking out for their pocketbook (and their family) and not just yours.

Next, transparency: explain everything. I like this loose template. Put in layman’s terms: here’s what’s wrong, here’s how it’s supposed to work, here’s how this will fix it. You aren’t hiding anything nor hiding behind technology or jargon.

There’s more, but let’s end with: demonstrate customer commitment, integrity, quality, respect for people, teamwork, personal accountability, and the like.

In addition to building the all-important trust, all this makes it much easier for them to refer new customers to you.

You just outlined the secret to great customer service! With this stratgey, which really isn't a strategy, it's just be a good human being, you will also remove price from the customer's mind. Value up, sales are made, and the price fades from the customer's mind. Great stuff! 

The past few years have been like a wild roller-coaster ride.  What was normal in 2019 no longer holds true today.  And while many of have a hard time sitting down and writing out of goals, I feel that now more than ever, shop owners need to plan out their future with clearly defined written goals. This is especially true for shop owners who plan to be in business beyond 2030.

What are your business goals? Improve your existing shop? More locations?  

What plans do you have for your personal life?

How much longer do you plan on working in the business? 

5 hours ago, Transmission Repair said:

Thanks Joe.  I've always rented and didn't start owning until 2013.  Better late than never.  The guy I originally sold the business to just turned 80 and is still in the daily grind with no relief in sight.  He once had as many as 10 transmission shops.  He's now down to only 4 shops.  He has a stack of customer complaints, law suits, and  an 'F' rating with the BBB.  I have an $85K judgment against him that isn't worth the paper it's written on.  He's in a sad, sad, sad position.  I feel sorry for him and his wife.  Even his son quit and went to work for somebody else.  

Here's a lesson on how to single-handedly wreck your own retirement:  https://www.bbb.org/us/ut/salt-lake-city/profile/transmission/tanner-transmissions-inc-1166-85050006

Wow! BBB complaint, not good!

13 hours ago, Transmission Repair said:

When do you sell?

In my 40-year career, I've owned 3 different shops, all with the same name, and in the same business of transmission repair.  In the first two, the top line was growing, but the bottom line kept shrinking.  I thought I could "turn things around" and hung on to the bitter end.  I ended up with nothing to sell because who wants to buy a job?  I had nothing but equipment to sell.  

My 3rd shop was the charm.  However, I saw the same pattern start to happen all over again.  Instead of hanging on to the bitter end, I chose to sell why I still had something to sell.  I was 60 and had enough.  It took me 7 months of doing mental gymnastics  to finally decide to pull the trigger and sell.  I called my 3 largest competitors and told them I was selling.  They all knew our shop was the highest grossing transmission shop in the state.  My competitor with 6 location came over the next day.  A week later he sent his CPA in to audit the books to make sure I wasn't blowing smoke about our numbers.  From the time I decided to sell to the day we signed the papers with the multi-shop owner and I got my money was only 6 weeks because I had something to really sell other than equipment.  I had cash flow and an accountant for a wife and business partner.  Having impeccable books is key, especially if you choose to sell.

My advice?  Don't hang on thinking you can turn things around.  Sell your business while you still have something to sell.

More words of Wisdom!

Your story is common with so many shop owners. The thing that other shop owners should take notice to is that you realized when it was time to exit and you did something about it, and that you built a business worth selling.  As I tell ALL shop owners, "You are never too young to plan your exit stratgey, and build your business as if you are going to sell it tomorrow."

Thanks for sharing! Great information! 

No matter where go, there is a common theme. It seems that every shop owner is looking to hire a technician.  So, I thought that a poll would be a benefit to all of us, and plus get a gauge on where our members are at with regard to hiring.

Please take the Poll so we can all share and learn.