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Need Some Quick Advice Please Read


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Hey Guys,

 

Here is the background to my question:

 

I just graduated college with a 4-year business degree and am looking to start an automotive repair shop in central Kansas in the near future. I have always enjoyed mechanic work on my own vehicles and my friends and family's as well but I have no formal training, education or experience in the field. I chose to start a mechanic shop because I want to get into a service industry and I like the business model for an auto repair shop. I have done a little bit of my own education in automotive technology but not near enough to feel completely comfortable doing full-on mechanic work.

 

My business plan is set up in a way where I will be hiring a master mechanic to do the complex automotive work and I will run the business/customer side of things as well as doing some minor repairs/services such as oil changes, tire rotations, etc.

 

Here is my question:

 

Do I absolutely need to go back to school for a whole 2 years for an auto tech degree to be successful in running the business? Has anyone else started from my same position? did it work or not?

 

Please just give me some general opinions and advice in this area.

 

Thanks

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Completely agree with XRAC, you need to experience working at a shop. Do you know what numbers you need to hit to be profitable? How will your mark up parts? How will you decide your labor rate? What warranty will you offer? Will you specialize in a specific car line or do general automotive repair? Will you charge shop supplies? What types of fluids should you stock? How much?

 

Just a few questions to help create food for thought.

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I totally agree with both of you. I am currently seeking employment as an automotive service writer to learn the business and customer side of things.

 

But what I guess I am more worried about is do I need more experience in the actual automotive technology side of things? Do I need to be able to diagnose problems over the phone for customer? Do I need to be able to cover for the mechanic at my shop someday when he is on vacation? Etc... How do I handle this side of the business model?

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First off I have to say that lesson one is NEVER try to diagnose anything over the phone. You will NEVER win. You only make money if the vehicle is at your shop. Over the phone, all you can do is guess and that never works and all you get is an angry customer because they swapped the part you told them COULD be the problem and it didn't help.

 

You don't need automotive training to run a shop but like many have said you do need experience in the field. If you are worried about coverage when your tech is out maybe you should look deep in your plan to see if you can have a lube tech on hand as well.

 

Business plans are great, but you have to make sure you are honest with yourself and account for all possible scenarios. Make sure the plan accounts for down markets and unforeseen occurrences. When I started, I put together a plan, then ran a scenario that revenue dropped by 20% to make sure that I still could remain profitable.

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First off I have to say that lesson one is NEVER try to diagnose anything over the phone. You will NEVER win. You only make money if the vehicle is at your shop. Over the phone, all you can do is guess and that never works and all you get is an angry customer because they swapped the part you told them COULD be the problem and it didn't help.

 

You don't need automotive training to run a shop but like many have said you do need experience in the field. If you are worried about coverage when your tech is out maybe you should look deep in your plan to see if you can have a lube tech on hand as well.

 

Business plans are great, but you have to make sure you are honest with yourself and account for all possible scenarios. Make sure the plan accounts for down markets and unforeseen occurrences. When I started, I put together a plan, then ran a scenario that revenue dropped by 20% to make sure that I still could remain profitable.

 

This is awesome advice, thanks so much. If I may dig just slightly deeper into your answer, how do you handle someone calling in for a diagnosis over the phone? just simply tell them "hey we try not to diagnose the problem over the phone but bring it on in and we will look at it?"

 

I do have a lube tech built into my plan so I do think that will help.

 

Great advice planning for all situations, thanks so much!

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When someone calls fishing for diagnostic over the phone I simply state that we would need to see the car to give them an answer. There are to many variables to diagnose over the phone. I also tell them they are better off bringing it in because then I can guarantee to them that what I tell them is needed will in fact fix the issue they are bringing it in for.

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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