As AutoShopOwner.com begins its third year, we would like to take time to thank the contributions from all its members. You have made this website the “go-to” website and forum, for the automotive service business. AutoShopOwner.com was created as an automotive management network of shop owners and affiliates to share and exchange ideas and opinions. It is our belief that together we can make a positive difference in the auto service business.

The forum topics have been great and the dialogue priceless. It is truly amazing how much knowledge there is among us. AutoShopOwner.com has proven to be a viable medium where shop owners around the world can come to ask questions, gripe about issues, and help their fellow colleagues.

New enhancements already made to AutoShopOwner.com for 2010:

• We’ve revamped the site for easier use and increased the services offered within the community.

• New Reputation system – Posts can now be rated, earning the author reputation points which can be highlighted with titles and badges.

• New Personal Conversations – Users can now create private topics, accessible only to themselves and anyone else they choose to invite. (replaces the default message system)

• New Mini Profile Popup – Wherever you see on your board (which is just about everywhere a member name appears), it can be clicked for a handy mini-profile popup. Send a PM, check reputation or find posts – without needing to leave the current page.

• New Social Network Icons – Social network icons added to the top of posts, to easily add content to your favorite network.

• New Live Chat – Integrated new live chat system

• Blog section Updated – various new blogging features

• Photo Gallery Section Updated – various new photo features

• Downloads section Updated – Layout and operation updated

• New “Who visited today” section – Added a section that shows who visited the forum today. Located on the main page of the forum, at the bottom of the page

• New Text Editor added

• New – Log in with your Facebook or OpenId account!

• Synchronize FaceBook Account- Added the ability to sync your FB account to AutoShopOwner.com.

• New Status Updates – Add “what’s on your mind” to show on the forum home page and in your profile

• New Forum main page layout – new block additions, recent topics, etc. Right column can be closed or opened.

• Event Calendar Updated – new features added. Add any events easier.

• New Main Menu – Added new drop down main menu.

Planned enhancements to AutoShopOwner.com for 2010:

• Increase checklists and downloads for Premium Members

• Create more extensive business tips and management information

• New Articles section

• Member Locator

• Twitter Integration

• More to come….

Another goal this year is to increase membership in order to boost the AutoShopOwner.com experience. You can help. Spread the word to fellow shop owners. Forward the monthly newsletter to other shops, industry associations, and colleagues. If you belong to an automotive trade group, talk about the benefits of joining AutoShopOwner.com.

As you can see, AutoShopOwner.com is dedicated to you, its members. However, the strength of AutoShopOwner.com lies in its members and the interaction within the forums. The more people that use the services, the stronger the site will become. This will benefit everyone.

Help us spread the word about AutoShopOwner.com. We also welcome your comments and suggestions. Remember, together we can make a difference.

If you’re reading this article that means that you are still in business and have weathered the economic storms of 2009. While we are not out of the woods yet, things are definitely looking better than a year ago. 2010 will continue to bring us challenges and obstacles, but we all know that whatever doesn’t kill you will only make you stronger.

Independent shop owners across this nation have proven their resolve and refused to participate in the recent recession. When thousands of dealers shut their doors and unemployment tipped 10%, automotive shops found a way to survive. I am not saying it was easy. I have heard from many frustrated shop owners this past year that questioned whether they should go on. Some did give up, but most did not. The fight goes on and 2010 will once again test your resilience.

Many of your customers are still out of work and many small local businesses and local contractors are suffering. Both business and personal bankruptcy is still rising. These issues will no doubt continue to impact your day to day operations. We have already seen taxes go up in many areas and who knows what the health care calamity will bring us. The government will continue to spend like a drunken sailor on shore leave, which will have deep, long lasting affects on our economy for generations. The housing market had a few up ticks in 2009, but is still a long way from a recovery. Too many years of unrealistic growth combined with too much subprime mortgage lending nearly killed a once-touted safe haven for your money…real estate. Also, let’s not forget the war on terror, the global warming issue, the green movement, the volatile stock market or emerging Chinese dominance.

Ok… I got the bad news out of the way. Now, here’s the good news. When the dust settles, who do you think will be there as a shining star? You will. Because the success and survival of your business rests totally on the person you look at each day in the mirror….You! You have no bail out. You rely on your own resources to make things work. You are tested each day and somehow get things done. That makes you strong. We are all sitting on a gold mine of opportunity. It may be hard to see, but it’s real. However, it’s an opportunity, not a gift. You will need to prepare for it and act swiftly. Those of us that plan now will reap the benefits later.

There has never been a better time in history for the automotive service and repair industry. The motoring public is confused. They have lost faith in the American car companies. The government bail out to GM and Chrysler has made them look weak in the eyes of the consumer. Ford stands alone, not accepting a bail out. This may prove to be their silver lining. New car sales in 2009 were dismal for most car companies, including Toyota and Honda. Empty new car dealerships sent consumers scrambling for alternatives.

We need to take advantage of what is happening in the economy and use it to our benefit. We need to show strength. Our day-to-day attitude must be positive toward customers and with our employees. Take a look at your operation, everything from the exterior facility appearance, waiting room, bathrooms, shop appearance, uniforms and everything else about your business. Make sure that your shop looks top-notch. I know it’s hard, but spend the money and make improvements to your operation. This will help boost your image and help increase confidence from your customers and the potential customers in you market area.

Review your advertising and marketing strategy. Be consistent with your advertising. While others are pulling back on advertising, you need to keep forging ahead and stay in the consumer’s eye. Provide the very best in customer service. This is an area where you must not fail in. People will judge you more on how they are treated at the front counter than what brand of parts you install or what type of equipment you use. Trust me on this one. Customer service will make or break your business. Listen to your customer, they will tell you in which direction you will need to go. Your success in the coming years will be directly related to the level of customer service you provide. Make sure you have the right people at the front counter and answering the phone.

Lastly, work on your leadership skills. As the business owner, you are the company’s leader. This puts you in a tough position where hard choices and decisions will have to be made. Make those decisions with the best of your abilities and don’t second guess yourself. You can’t be right all the time and being too fearful of making a mistake can cause indecisiveness, which will hold you back from achieving your goals. The good thing about making a mistake is the knowledge you gain from it. Be supportive of the people who work for you. Encourage them to be the best they can be. Promote the good things they do, rather than focusing only on what goes wrong. People want to be appreciated and recognized for the work they do. Remember, happy employees boost morale, which increases productivity and creates happy customers.

Being in business is not easy, if it were, everyone would be in it. Being an auto shop owner in today’s economy is extremely difficult, but this career was our choice. The reward for being in business is making your enterprise your personal success story. Don’t worry about the size of someone else’s business. It’s not about building an empire like Disney World or McDonalds; it’s more about you and building your empire. That is the true measure of an entrepreneur.

We have now come to a crossroad. The Right to Repair Act is more than a disagreement between the car manufacturers and the aftermarket auto repair industry. It is about the basic right of the people to choose where they want their car serviced. It is about preserving free enterprise. We cannot let an industry, such as the car manufacturers, hold hostage the citizens of this country. We cannot let any industry create products and systems that destroy the basic principles of free enterprise. There must be a level playing field. Competition brings out greatness. Without it, brings demise.

Letting car makers hold back certain information and build complicated systems that force people back to the new-car dealerships will destroy the right to choose. It takes away the rights of the people and the spirit of business.

And let’s not make a mistake in believing that if we let the new car manufactures enter into an honor system to provide information, that all will be ok. That’s like letting the opposing team set the rules for the game. It will not work. I am not for big government, but this is not about big government. This is about preserving an industry that the people in this country have chosen to patronize for more than 100 years: the automotive aftermarket industry.

The automotive aftermarket greatly contributes to the economy of this country. The aftermarket independent repair facilities are the preferred choice of the motoring public. The aftermarket auto industry keeps this country rolling. Independent shops have never interfered with the process of manufacturing or engineering new cars. Independent shops across the country continually learn new technology, invest in tools and purchase new equipment: all for the purpose to serve the motoring public. All the aftermarket asks is the right to compete fairly.

I urge everyone to support the Right to Repair Act. Let the people of this great land decide where they want to take their cars for service and repair, not the car manufacturers.

Below is a link for more information on the Right to Repair Act and information on how to contact your public officials:

http://www.aftermarket.org/Government/RighttoRepair.aspx

To be honest I didn’t know how to reply to the email. After years of being in business, this shop owner has not grown his business to a position that allows him to take time off, without the worry that the shop can’t run on its own. I’m not talking about leaving early on Friday afternoon. In this case this particular shop owner is scheduled for surgery the next day and while his main concern should be on his personal health and well being, he has the added stress of finding a tech to take his place while he’s out recuperating. And to make matters worse, his other tech has a full time position and career in a different trade. Is this the way a business should be run?

It may sound like I’m passing judgment on this fellow shop owner, but please understand, I know exactly what this person is going through. Back in 1988, I broke my foot playing basketball with a group of friends. Back then my shop centered on me. My job positions included everything from answering the phones, lead tech, service advisor, shop foreman, bookkeeper and janitor. So, when I broke my foot I had no choice but to suck it up and go to work. I was supposed to be on crutches for at least 4 weeks but rarely used them. I didn’t take any time off. My doctor told me to rest a least a week and use the crutches, but I told him I had a business to run. My foot never healed properly and to this day it gives me pain. Another time, I was cutting a piece of steel with a torch to fabricate a section of frame, when the jig broke and a piece of hot metal shot into my hand. It was a serious injury, which required minor surgery and stitches. Again the doctor told me to rest for a few days, but you know the rest of that story. I’m not saying I was wrong with my decisions, at that time I did not know any other way.

The difference is that I learned through the years that if I were the center of my business universe, I would never grow. If all the daily tasks of running a business were solely my responsibility, I would eventually fail. For the first 11 years of my business career, I never took time off, worked 6 to 7 days a week, worked holidays and put in a minimum of 12 hours a day. By 1991 I was physically and emotionally burned out at the ripe old age of 36.

It took me years to turn things around and run my company like a true business. Today I have every position filled by trained, qualified people. My business grew dramatically when I let go of total control and put the right people in the right positions. I learned that a well-run business is one that runs without me!

I urge you to ask yourself these questions: Could your business survive if you had to take time off for an extended period of time due to illness or another crisis? Would you still draw your usual income if you could not work for an extended period of time? Do you have people in place that could run your business the way you want it to, without you? And, do you have systems and policies in place to insure your business runs smoothly until you return?

If you answered no to any or all of theses questions, your business needs help. The only possible exception to this would be shop owners that work alone or have one other employee. But, regardless of your size there still needs to be a system that allows the owner to take time off, for either health reasons or just for a well-deserved vacation.

We will be faced with many challenges in the coming years. The better you become at running your business, the better chance you will have at thriving, and not merely surviving. Look at your business and do some sole searching. Not just for you, but for your family too. You made the choice to go into business, that doesn’t mean you need to be a slave to it. Have the strength to hire people, put yourself in a position that allows you to grow the business, and take time off. It won’t happen overnight, but it will work. To be successful you need to let go and not let the business control you.

As for my fellow shop owner, I replied back that I would keep my eye out for anyone looking for temporary work, and that if I could help in anyway, to please let me know. When he recovers, I plan on talking to him. By the way, I changed the story details, as not to embarrass or insult him.

This month, AutoShopOwner.com celebrates its first year anniversary as a web-based automotive management network and forum, dedicated to the success of automotive shop owners around the world, through shop owner networking and the exchange of ideas. I want to take this time to thank all members, welcome new members and wish everyone great success in the coming year.

We all know that 2008 has brought many economic challenges to not only our industry, but also to industries around the globe. It appears that the economy will not begin to recover for a while. It seems that every sector of the economy is affected. We haven’t seen a downturn like this, since the great depression. Whether you are for or against the “bail out” of American corporations, the fact remains that, what ever happens in the short term will greatly affect us all, well into the future.

Many businesses, large and small, will fail in 2009 and more people will loose their jobs as companies trim the fat and become leaner; something that should have been done years ago. More domestic new car dealerships will close their doors. For many of them, they have no choice. Their business model just doesn’t make sense anymore.

Is there only bad news? Not really. We happen to be in an industry that prospers in any economic climate: good and bad. 2008 was a terrible year for new car sales and ALL manufacturers, resulting in the greatest opportunity for service and repair work we’ve seen in decades. People may have held back spending money in “08”, but eventually they will need to get their cars in to you for service. And you need to be ready.

Now is the time to be aggressive in your marketing and advertising. Create ways to offer cost savings services to your customers. Give them options and be flexible. You don’t have to hit home runs to win the game. I understand money is tight, but the shops that stay strong and invest today will reap the benefits when the economy turns around. History as proven that the companies that maintain a positive outlook, continue to advertise and adjust to the changing times, are stronger after the economy picks up.

Maintain a constant watch on all the businesses in your area that are suffering, especially other automotive chains and new car dealerships. As these companies fail, this will create opportunity for you. Watch your overhead, but continue to invest in training, tools and equipment. You can’t afford to be left behind technologically these days. Playing catch-up may not be that easy. And of course, be accommodating to your customer and provide outstanding world-class service, anything else won’t cut it. In tough times, consumers can become fussy and demanding and won’t settle for sub standard service.

From the dialogues I have had on AutoShopOwner.com, throughout this past year, I am impressed by the resolve and strength of the typical shop owner and see a positive future for our industry. As a group, we are strong. Failure is not an option for us. We find ways everyday to solve the most complicated mechanical problems and that determination will be the reason why we will not just survive in the coming years, but thrive. The best of luck to all shop owners in ‘09’ and look forward to the forum discussions.

It seems everyone is looking to cut costs theses days, and for good reasons. With the economy in a recession, we need to make tough decisions. Cutting advertising during these times is simply the wrong thing to do and a great way to kill your business. Shop owners need to look at their expenese made during the last few years and find ways to cut the “fat” not the “meat”. We need to understand the difference between an expense and an investment. Investments will eventually add to your business, unnecessary expenses will hurt business.

Want another way to kill your business? Offer deep price discounts. We are all concerned about our customer’s wallets and hear the complaints about prices everyday. If you think that deep discounting is a way to sell work and bring in customers, think again. In past recessions, it hasn’t been the companies providing the cheapest goods and services that have done well. Consumers become very picky about how they spend their money during tough economic times.

Concentrate on value, not price. If consumers only cared about price, the Yugo would have outsold Toyota or Honda. Yugo was about price, not value. The end result: You don’t see a lot of Yugos around, do you? Being competitive in your market is one thing, giving away much-needed profits can be disastrous.

It’s better to offer a Winter Maintenance Package (which includes an oil change) for $49.95, then trying to sell $14.95 oil changes. Selling a Winter Maintenance Package has value and will give your techs the opportunity to look for other profitable service work. Work on increasing car counts, this will increase your opportunity. Don’t try to hit a home run on every car. The little things add up at the end of the day. Adding a few cabin filters, air filters, wipers and batteries will add much-needed dollars to your bottom line.

Here’s another way to kill your business: Worrying about all the bad things that might happen. When your thoughts are focused on all the things that can go wrong, a lot of the things you worry about actually occur. It’s like the kid in little league that walks up the plate and says to himself over and over again; “I’m going to strike out. I hope I don’t strike out. I always strike out”. And guess what happens…he strikes out!

Be positive. You are the leader of your company. You need to be strong and show confidence. This is equally important when talking with customers. Don’t complain about the economy, this makes things worse. People want to be associated with winners.

And here’s the last way to really kill a business? Ignore your two most important assets: your employees and your customers. Your loyal customers and your faithful staff were with you building your business during the good times. When things seem bleak, it’s easy to forget the good times. But good times will come again. Things go in cycles. Don’t take my word for it, just look at history and listen to people like Warren Buffet. So, take care of the people that made your business a success: your employees and your customers. Treat them with respect, show them you care about their well-being and they will be there when things turn around.

After two days of winter storms I was eager to get some work produced in the shop. It was Wednesday, the third week in February, two years ago. The winter already had its share of storms, which was killing business. Winter storms might be good for future work, but at that moment I was looking ahead to Friday…Payday. And with little money generated so far this week, things became a economy industry people Recession repairlittle worrisome.

Among a few small jobs we had scheduled this Wednesday, we had a Subaru booked for a 60k service, a nice profitable job. I assigned a tech to the job, that returned to me about 20 minutes later, with disturbing news. The cylinder heads were leaking coolant. I now had to tell the customer that the pre-sold 60k service had a more pressing issue. I called the customer at her office and explained the problem. I also explained that it would be in her best interest to replace the timing belt, drive belts, and water pump, if we were to do the cylinder head work. After an endless series of “Oh my God, oh my God, oh my God”, she asked how much would it be to do all the work, including the 60k service. Were my ears hearing correctly? If I could sell this one job, it would bring in much needed dollars to the shop. I gave her the entire price and after a long pause she said, “Do it all”.

After printing an updated work order, I ran over to the tech and gave him the good news. As I was walking away back to the service counter, a depressed thought came to me. Is this Subaru covered under the extended warranty for cylinder head failures? If so, shouldn’t the customer be informed? I asked the shop foreman to find out. After a quick call to the local dealer, the foreman confirmed it: this customer was indeed entitled to have the cylinder head work done at the dealer, at no charge. My thoughts immediately again went to Friday…Payday!

What do I do? Tell the customer? Don’t tell the customer? This is when that devil shows up on your shoulder just like in those old Bugs Bunny cartoons and starts telling you things like: “Hey, don’t be stupid, you need the money for payroll and besides, the customer will never know”. But the angel on the other shoulder tells you, “Joe, do what’s right”. I have to be honest; at the time I was tempted NOT to tell the customer and began to rationalize in my mind that this is a matter of survival. But, the angel won out and I decided to call the customer and give her the news.

The customer was ecstatic. She could not thank me enough and said my honesty was refreshing. She called the local dealer, which sent over a flatbed. We all sadly watched as the flatbed drove away, fading into the winter sunset. I don’t know how we did it, but we somehow got through payroll that Friday.

We’ve all heard the expression, “Give and you shall receive”. What happened in the next few months was incredible. What I didn’t know at the time is that after I hung up the phone with the customer, she began telling everyone at her office about what I had done. The news spread like wildfire and I picked up a few of her coworkers as customers. The best news was that the dealer wanted to sell her the 60k service along with the cylinder head work, and she told the dealer no. She came back to me, to finish the 60k service. In retrospect, being honest was the right call. We’ve all had that devil on our shoulders from time to time, but my advice is not to give in. Always do what is in the best interest for the customer, even though the short-term loss for you appears unbearable.

If you have ever been involved with a networking association, a twenty group or a local business council you know the power of brainstorming among your peers. But what if we take this concept and expand it over the Internet to thousands of shop owners? What you would have is a network of shop owners around the world who can share and exchange ideas and best business practices. This is what AutoShopOwner.com is all about.

Did you ever have a question about labor rate, or technician’s pay? Or what about advertising ideas or issues on customer service? How valuable would it be to you to be able to find out what other shops are doing around the country? Why not tap into the greatest resource available today…. your fellow shop owners. AutoShopOwner.com has now made all this possible through its online forums.

I have no doubt that once you have experienced the power of online forums, the automotive business world will become more exciting and rejuvenate your company.

Here’s a list of some of the online forum categories we urge you to participate in:

• Paying Your Techs

• Entrepreneurship, Owner’s Responsibility

• Family, Recreation, Personal Growth, Building Wealth

• Marketing and Advertising your Business

• Growing your business

• Reinvesting in Your Business

• Sales, Job Costing

• Leadership, people management, and building you team

• Systems, Procedures and Polices

• Management Software

• Workflow, Facility Management, Shop Layout

• Scheduling and Dispatching

• Labor Rates, Labor Gross Profit, Cost of Labor

• Hiring and Firing

• Parts Pricing

• Inventory Control

• Customer Write-Up, Vehicle Delivery, and Customer Follow up

• The Irate Customer

• Quality Control

• Team Concept, Productivity

And More!