Mike the Mechanic

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 We do not quote jobs broken down.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.

My first boss was very Victorian in his employment practices. It was assholes and elbows at 8 am. It was the same at the end of the day. Last 15minutes you stopped and put your stuff away and grabbed a broom or mop. That being said everyone in my operation is on time or early.......that is our culture. I have 3 employees that have different starting times as the have family needs to get kids to school. That time is scheduled and they are reliably there when they say the will be. If someone is 2 hours late I am not worried about the $50 bucks he looses, I am cranked about the $400 lost opportunity. Most of my staff is flat rate and they are motivated and conscientious.

Coming into 2022 we were able to see the direction inflation was going. I scheduled quarterly labor rate increases of 2.5% this year. I also scheduled 10 1% increases for pay across the board for the staff. It was not a "pay raise". It was just trying to keep even with inflation. A cost of living adjustment. It was recognized and appreciated by the staff. The unfortunate part is that it probably is not enough. Our inflation is calculated differently that it was in 1979+. Currently energy and food increases are left out of the cost of living. How can you live without energy and food? I believe from my observation our actual inflation rate is 15%. The good news is the no one has complained about the rate increases and business seems to be holding up well. Our market is higher end Euro and Asian products. Regards to all Mike

Kimball Midwest has been excellent. We also us Wurth as an import shop they have Euro stuff. Mike

We just finished the shop floor. The surface was ground to remove the old surface. Tuff Top waterborne epoxy for the first coat. 2 coats Rust Oleum waterborne Catalyzed Urethane top coat. Its gasoline and brake fluid proof. It is very resistant to scratching and forklift traffic. Mike

Please use all or part as you see fit. Good luck

This is the most recent add that we put up on a number of locations. It was effective for me: Regards, Mike Import repair Technician well versed in diagnostics. Company Type: Independent Repair Service Start Date: Immediate Posted by: Michael Moench Technician would be responsible for inspecting, diagnosing and estimating repairs while working with a top notch service manager. Technician would be trained on all shop diagnostic equipment. Training and continuing education from multiple sources is available and is paid for by employer. $18 to $30 per hour plus benefits. Vacation pay plus shared health care. We believe in hiring the right talent and letting them make their money! Tired of working someplace where you're just a number? We are a family owned and operated shop that's looking for you! We are looking for an experienced Technician who wants an environment where they can be the professional that they are. Pay is based on experience and ability. Great opportunities for all Techs and we are e$pecially interested if YOU have European and Asian import experience. Why else consider J B Import Automotive Repair? How about: 5 day work week NO Saturdays or Sundays; our Techs make great pay without cutting into family or personal time Modern shop Well-maintained equipment Plenty of room and lifts for our Techs Bright well maintained work areas All the latest software and computer terminals in our shop Professional Service Advisors who respect our Techs Our customers trust our shop so we always have plenty of good business for our Techs year-round *Even if YOU have never worked in an independent shop, we invite you to talk to us to find out more about our shop, our work and our area! *Techs, retail warranty work here. Get paid fairly on EVERY job! *Submit YOUR resume with confidence that all contacts with us are completely confidential. Do it TODAY! Our benefits include: Health Insurance Disability Coverage Paid Vacation Paid Holidays Provided Uniforms Continued Paid Training

Let me begin by saying that I have been in similar circumstances myself. Don't feel like the Lone Ranger. I have met a lot of shop owners that have been in similar states of mind. Doctors have told me that depression is often repressed anger. For me I was working as hard as I could expecting things to change and improve. As the saying goes "doing the same thing over and over and expecting change is the definition of insanity". My suggestion: Visit your Doctor and make sure you are physically OK. If your business is crushing you there are a number of automotive business coaching firms that will help you identify whats wrong. They can provide immediate help. I have learned that the automotive repair business has little to do with fixing cars. Managing your business is a different skill set than fixing cars. Keep us posted on your situation. Regards Mike

I will put it on my calendar to remind me. There is always something to discuss in the Automotive world. I have a hard time remembering on Sunday evening. Usually watching some football/TV I do not even care about.

Greetings, I would advise hiring a Master Tech on a flat rate / bonus plan. I will never go back to the hourly plan with Techs. You will be occupied writing service and being the parts man. You are then free to do the smaller jobs as well as the shop owner tasks. A good tech will find legitimate work on every car he works on. Implement an inspection system / sheet on every car. Employee job description and procedures are a necessary thing as well. It sounds like you have put considerable thought into the process. I have worked with ATI for a number of years now and I have found it very beneficial for me and my business. Mike

Good article Gonzo. I have noticed that some of the manufacturers are quoting warranty / repair time in "units", not hours. A unit is an unspecified block of time. Some mechanics are faster than others so the block of time which is based on 1/10 hour is variable unit. What we sell are labor and parts. It is the bottom line that is important. Sometimes shoppers completely miss this idea. Mike