Todays Biggest Business Challenge.

[Shopcat]

I have noticed several concerns shop owners all seem to be struggling with lately. My question to the entire ASO community is what specifically is the single biggest challenge your shop is facing right now? Is it finding qualified technicians, or maintainging car count, or something else. Also what if anything do you think needs to be done to resolve the challenge?

[mspecperformance]

From the feedback that I see the problem for most shop owners is finding qualified technicians.

 

For me it changes all the time LOL. I don't know what my one greatest challenge is as I see improvement that can be made everywhere.

[Shopcat]

M-spec, I tend to agree that for many shops finding and keeping qualified techs is the biggest challenge. I get the fact that you see many challenges, I'm like that...always looking to improve in every area possible area. Thanks for the response.

[mspecperformance]

If we have the right systems and processes in place, I believe my job as a shop owner is to stay on top of the marketing and ahead of my competition. That is paramount.

[Joe Marconi]

For me it is pricing. I think as an industry we are too cheap for what we do, what we need to know and how we service our customers. Labor charges has to be more in line with today's demands on overhead, tool expense and training.

 

Plus, we will always battle the tech issue until we can attract quality people. I am not saying it's all about money....but it does factor into it.

 

Collectively we need to convey to the customer value, not price. We need to deliver world class service and not lead with price or market our business by price alone.

[alfredauto]

The problem I have is human compassion disrupts the profit. I like my customers, they provide me with a good living. If I quote a job properly and get the OK it is very difficult for me to call back when we break off a bolt and ask for more money. Its necessary to bill for the extra time, but I don't like doing it. Especially when I know the customers income barely covers groceries.

[andresauto]

The biggest business problem is that on the small business level of automotive repair and the auto body industry there are too many criminal enterprises and transactions.

 

They can be recognized easily by "pay me cash and I'll save you the tax." Also by paying employees off the books.

Quoting dealer parts and selling cheap aftermarket parts instead. Selling not needed or untimely repairs, etc. Claiming to have installed parts but didn't, etc. Misdiagnosis seems to be big in the automotive repair area too. So on and so forth.

 

The reason this industry is so suppressed financially and distrusted is because there are too many unethical shops, unethical employees and unethical transactions creating unethical customers. I'm willing to bet that if we went to 10 shops in an area, 7 out of 10 would have these unethical practices if not more.

 

How do you build trust or get a customer or employee to trust you when your blatantly waving a pirate flag stating I'm willing to break the laws of the land and I'm doing it so you can save the tax? I'm willing to get arrested, go to jail, pay tremendous penalties, and this sacrifice is all for you the customer. It would take a jackass on both sides of this transaction to believe this fairytale to be the case. Selfishness has created criminality. If the shop owner is afraid he/she can't eat his piece of bread because he has to pay more taxes when he shows more money, or pay employees more money off the books to save money, then that shop owner is losing his game as shop owner and trying to win by cheating instead. So let's stop lying to ourselves about what has been created in our industry. To many people believe the automotive repair industry is a racket.

 

So to reiterate, the biggest business challenge is playing in a slanted game with an unfair playing field.

 

Picture this, you are playing a game of monopoly with family and friends. You think you're good or should be good. You realize though no matter how good you are or should be doing, you are losing. The guy next to you has more money and/or properties and you wonder how. You catch a glimpse at the right moment and you see his slight of hand towards the cash box. You say, "This person is a thief". "This game is a joke." And that is what your customer says and thinks as well when you give them a glimpse of your criminality. From that point on he/she thinks that everyone in this game is a thief or has the potential of being a thief and the whole game is distrusted and goes to hell. The customer you created, who is now criminal also for partaking in these unscrupulous activities of save the tax goes shop to shop looking to save the tax, get the deal, or take advantage of a losing and unsuspecting shop owner.

 

So the lack of consistency and standardization in the automotive industry is a problem I see. Automotive repair shops should play by a consistent, predictable, and scrupulous set of rules that customers can trust.

 

Cheaters don't have that, they have fear based systems and pricing. Through that fear they resort to unscrupulous activities. Through unscrupulous activities they create distrust in an area, activity or industry. That area, activity or industry then gets suppressed financially or oppressed by the government. It then appears to become less lucrative. But that is only the case for those who don't know how to play the game right.

 

In order to win in life you need to have self-confidence and self-respect. When you have self-respect and self-confidence you have power. People believe in you and people trust you to do the right thing and are willing to pay you to do the right thing.

 

We get paid very well and handsomely at my shop. We attract many high end clients. I have never marketed to any of these people. They have been referred by other high caliber individuals.

 

I am proud of this. I bought my first shop and cleaned up the previous owners BS and criminality, business doubled the first year and then doubled the second year from the first years numbers. I did that through ethical practices. I bought the next shop over and did the same thing. Both of these places were dumps from the get go. I am buying another shop a few blocks away that has been sold twice in the last few years. How am I doing it? Ethical practices. Self-confidence. Self-respect. Ethical environment - people, places, things.

 

So my solution is:

 

Have some self-respect and do the right things. Take survival actions. You will feel strong.

 

Have the self-confidence to believe in yourself. That you can make it in an honest manner and do it and keep on keeping on with honesty and integrity.

 

Create an ethical environment that you can trust in and people around you can trust in. This is how you make it in life and in business.

 

Try it for a week, the worst thing that can happen is you feel better about yourself and like a more able human being.

[xrac]

There are cheaters. We priced a regular customer hub bearings (Moog) on his pickup. He said the guy back home could do it a whole lot cheaper and was using Moog bearings. We told him to be sure because we couldn't buy the moog as cheap as this guy was selling them. Speed forward 8 months later. He came in for an aligment or something and we find that both of his new "moog" hub bearings already have play and need to be replaced. Does anyone want to bet that these were really Moog? You can't compete with people who lie and cheat.

[Shopcat]

Joe Marconi said: For me it is pricing. I think as an industry we are too cheap for what we do, what we need to know and how we service our customers. Labor charges has to be more in line with today's demands on overhead, tool expense and training.

 

Plus, we will always battle the tech issue until we can attract quality people. I am not saying it's all about money....but it does factor into it.

 

Collectively we need to convey to the customer value, not price. We need to deliver world class service and not lead with price or market our business by price alone.

 

 

I agree, and if we would get better at charging accordingly in line with what it costs to run a shop, we would have more money to attract the better techs and provide more competitive benefits as well. Seems like a win, win.

[Elon Block]

Create an ethical environment that you can trust in and people around you can trust in. This is how you make it in life and in business.

 

Try it for a week, the worst thing that can happen is you feel better about yourself and like a more able human being.

Andre, I have been thinking about your post - ever since you posted it.

 

There's gold in your post and is really the answer to most problems I see.

 

My latest blog post here came as a result of me thinking about you (and

other shop owners like you) that have have shifted their thinking and

are now reaping the rewards of it:

http://www.autoshopowner.com/blog/16/entry-188-attracting-the-best-employees-and-marketing-for-new-customers/

 

It does take a leap of faith because it's counter-intuitive and contrary

to what's typically being suggested to run a successful shop.

[skm]

As I read the posts on this page I see things from a different prospective as most, I am a Master Tech, L1 , Master Emissions license , state inspection license. As some may know from reading my posts. I have been at the same shop for 25 years and am so fed up with the business practice and pay that I am looking to open my own shop, but want to find a shop that need to be taken over or the owner is retiring .

 

Problem being it is very hard to find one that people aren't asking crazy money for, so the search continues. My problem is nobody wants to pay what techs are really worth, How can I be paid the same commission as a 21 year old with no schooling or training what so ever?? anyway I think the good tech problem is only going to grow and grow until there is some sort of licensing implemented to weed out all the street mechanics and rip offs. Every other career needs to be licensed (plumbers, electricians , doctors, pilots, cdl truck drivers and so on...)

 

I for one am very honest and treat peoples cars as if they were my own, I won't over sell, I won't lie, in fact I get a lot of state inspections referred to me (I hate doing them not enough money very boring ) since I am honest.. State inspections are not for the purpose of making money they are for the safety of the vehicles on the road, if people really understand the inspection process they will see that every thing is the bare minimal needed to be considered safe..

 

I get customers that come to me after someone (possible another guy at the shop) have worked on their cars and they still have the same issue , I always point out my certificates that are hung not really in view over my tool box, and let them know I have many years of experience and am a Master certified tech. I then tell them you get what you pay for. None of the other guys here are certified or would I let work on my car , now many of you are now saying that I am probably killing the business or as an owner are pulling their hair out saying you can never talk bad about the business , well I do and will until things change.

 

i agree with the need for better pay , and getting the public to realize why auto repair is expensive, it's not like the 50's thru the late 80's cars are very advanced now and need some one who know what they are doing to fix them. Also that there needs to some sort of licensing so that the public can have some sort of confidence in taking there cars to be repaired. too much stigma out there of how we are rip offs. I say if your are not ase certified then another License must be obtained to be able to work as a Technician/Mechanic

Edited September 27, 2015 by skm

[ScottyP]

As I read the posts on this page I see things from a different prospective as most, I am a Master Tech, L1 , Master Emissions license , state inspection license. As some may know from reading my posts. I have been at the same shop for 25 years and am so fed up with the business practice and pay that I am looking to open my own shop, but want to find a shop that need to be taken over or the owner is retiring .

 

Problem being it is very hard to find one that people aren't asking crazy money for, so the search continues. My problem is nobody wants to pay what techs are really worth, How can I be paid the same commission as a 21 year old with no schooling or training what so ever?? anyway I think the good tech problem is only going to grow and grow until there is some sort of licensing implemented to weed out all the street mechanics and rip offs. Every other career needs to be licensed (plumbers, electricians , doctors, pilots, cdl truck drivers and so on...)

 

I for one am very honest and treat peoples cars as if they were my own, I won't over sell, I won't lie, in fact I get a lot of state inspections referred to me (I hate doing them not enough money very boring ) since I am honest.. State inspections are not for the purpose of making money they are for the safety of the vehicles on the road, if people really understand the inspection process they will see that every thing is the bare minimal needed to be considered safe..

 

I get customers that come to me after someone (possible another guy at the shop) have worked on their cars and they still have the same issue , I always point out my certificates that are hung not really in view over my tool box, and let them know I have many years of experience and am a Master certified tech. I then tell them you get what you pay for. None of the other guys here are certified or would I let work on my car , now many of you are now saying that I am probably killing the business or as an owner are pulling their hair out saying you can never talk bad about the business , well I do and will until things change.

 

i agree with the need for better pay , and getting the public to realize why auto repair is expensive, it's not like the 50's thru the late 80's cars are very advanced now and need some one who know what they are doing to fix them. Also that there needs to some sort of licensing so that the public can have some sort of confidence in taking there cars to be repaired. too much stigma out there of how we are rip offs. I say if your are not ase certified then another License must be obtained to be able to work as a Technician/Mechanic

I don't know about your state but in Michigan you have to be licensed, state or ASE either way you have to be certified and pass the tests and your work is limited to the extent of your license. Also my shop has to be a state licensed repair facility to operate in this business.

[FROGFINDER]

The biggest business problem is that on the small business level of automotive repair and the auto body industry there are too many criminal enterprises and transactions.

 

They can be recognized easily by "pay me cash and I'll save you the tax." Also by paying employees off the books.

Quoting dealer parts and selling cheap aftermarket parts instead. Selling not needed or untimely repairs, etc. Claiming to have installed parts but didn't, etc. Misdiagnosis seems to be big in the automotive repair area too. So on and so forth.

 

The reason this industry is so suppressed financially and distrusted is because there are too many unethical shops, unethical employees and unethical transactions creating unethical customers. I'm willing to bet that if we went to 10 shops in an area, 7 out of 10 would have these unethical practices if not more.

 

How do you build trust or get a customer or employee to trust you when your blatantly waving a pirate flag stating I'm willing to break the laws of the land and I'm doing it so you can save the tax? I'm willing to get arrested, go to jail, pay tremendous penalties, and this sacrifice is all for you the customer. It would take a jackass on both sides of this transaction to believe this fairytale to be the case. Selfishness has created criminality. If the shop owner is afraid he/she can't eat his piece of bread because he has to pay more taxes when he shows more money, or pay employees more money off the books to save money, then that shop owner is losing his game as shop owner and trying to win by cheating instead. So let's stop lying to ourselves about what has been created in our industry. To many people believe the automotive repair industry is a racket.

 

So to reiterate, the biggest business challenge is playing in a slanted game with an unfair playing field.

 

Picture this, you are playing a game of monopoly with family and friends. You think you're good or should be good. You realize though no matter how good you are or should be doing, you are losing. The guy next to you has more money and/or properties and you wonder how. You catch a glimpse at the right moment and you see his slight of hand towards the cash box. You say, "This person is a thief". "This game is a joke." And that is what your customer says and thinks as well when you give them a glimpse of your criminality. From that point on he/she thinks that everyone in this game is a thief or has the potential of being a thief and the whole game is distrusted and goes to hell. The customer you created, who is now criminal also for partaking in these unscrupulous activities of save the tax goes shop to shop looking to save the tax, get the deal, or take advantage of a losing and unsuspecting shop owner.

 

So the lack of consistency and standardization in the automotive industry is a problem I see. Automotive repair shops should play by a consistent, predictable, and scrupulous set of rules that customers can trust.

 

Cheaters don't have that, they have fear based systems and pricing. Through that fear they resort to unscrupulous activities. Through unscrupulous activities they create distrust in an area, activity or industry. That area, activity or industry then gets suppressed financially or oppressed by the government. It then appears to become less lucrative. But that is only the case for those who don't know how to play the game right.

 

In order to win in life you need to have self-confidence and self-respect. When you have self-respect and self-confidence you have power. People believe in you and people trust you to do the right thing and are willing to pay you to do the right thing.

 

We get paid very well and handsomely at my shop. We attract many high end clients. I have never marketed to any of these people. They have been referred by other high caliber individuals.

 

I am proud of this. I bought my first shop and cleaned up the previous owners BS and criminality, business doubled the first year and then doubled the second year from the first years numbers. I did that through ethical practices. I bought the next shop over and did the same thing. Both of these places were dumps from the get go. I am buying another shop a few blocks away that has been sold twice in the last few years. How am I doing it? Ethical practices. Self-confidence. Self-respect. Ethical environment - people, places, things.

 

So my solution is:

 

Have some self-respect and do the right things. Take survival actions. You will feel strong.

 

Have the self-confidence to believe in yourself. That you can make it in an honest manner and do it and keep on keeping on with honesty and integrity.

 

Create an ethical environment that you can trust in and people around you can trust in. This is how you make it in life and in business.

 

Try it for a week, the worst thing that can happen is you feel better about yourself and like a more able human being.

I drew a line in the sand when it comes to integrity. I worked for a family owned independent shop as service/parts advisor for 26 years fighting for what was honest and right. I would wash customers cars on my lunch and breaks. I promoted the business on my off time, cut the shop lawn and solicited $250k more business per year. I would not lie cheat or steal. The owner would damage peoples cars, loosen bolts, burn up clutches and engines for his profit. He was mad that I would not sell his "jobs". The stress made me sick and I had a stroke at work and pinched nerves in my spinal cord in 2005. In 2014 the owner hired a thief as mgr that was "horny for money" to replace me and sell his "jobs". My retirement was "TURN IN YOUR KEYS" NOTHING! I am now disabled and caring for my ill mother in law and wife but I can look myself in the mirror and sleep at night. I hope to work in this industry again but it has to be "Do unto others as you would have them do unto you"

[xrac]

Frog there are more important things than money. All I can say is good for you.

[FROGFINDER]

Frog there are more important things than money. All I can say is good for you.

What blows me away is hearing his own family members and even some of his customers say that his lying, cheating and stealing is just "business" because everyone does it!

[alfredauto]

For some people money is the only thing that matters. They all have the same issues, that is no matter how much they have its never quite enough. So they keep finding ways to make more, and the faster easier path to riches is cheating. Some folks don't have integrity, they are not held back by ethics or morals. My advice is forget about these crooks, they have been around since day 1.

[tirengolf]

Frog, As I have said on this forum before I am not a Certified master tech, We have been at this location for 55 years. Dad opened it in 1961, I started in 1975 at 15 years old, I still love it. Not being big headed, my customer base is the best ever. I have customers look at me and go this is unreal. I just sat in here and talked to a lawyer a doctor a housewife and a garbage truck driver. I am nice and honest to people, It is not that I am honest it is just who I am, I see some estimate's occasionally from other places that blow me away. I actually almost interrogate new customer's before I start work on there car. I have recently had to separate myself and a tech from my business, he has been with me 30 years, since he was 16. He is so talented it is heartbreaking he was starting to do some questionable things, and my friends , unethical business practices I do not tolerate. I know enough about this business to go look at a car and see whats going on , I have this sense when I look at a one of my techs estimate if something is not right. I am now looking for a tech and have found a 16 year retired military guy that I think is going to work out. You should see, as I think another poster has spoke about, some of the so called tech's that walk in my door, I almost laugh in there face , the job jumper. I have learned so many things on here from these guys just by reading there hiring practices, I would have to tell you , this guy I am talking to now, I would have probably overlooked, If I did not really read his resume and really went over it, I called him at 7 PM the first time just to sorta see his reaction. Another thing that gets me , is I called a few places about previous employment and some applicants and the business owner blows you off. If someone calls me I tell the truth about previous employment, we should all do that. This forum is all about us making our profession look professional and making more money. I was joking with one of my real good Doctor friends and customers the other day. I said to him, you guys are to dang expensive , he says man I went to school 12 years for being a Urologist, I said to him, I got a couple guys that have went to school 15 years and our patients "cars" keep changing , I said a good tech should make more than a Doctor, he looked at me and said Dave you got a point. I see such bright days and years ahead and really think if you do and run a ethical business and have a passion for it, you will make it , the money always takes care of itself. We must educate the consumer about how difficult cars are to repair today, sure you can through parts at cars all day but is that really the way to do it. I am going in this morning and show a new ,tech school trainny, tech how to test a crank sensor with a meter and show him how we came to the diagnosis late last night. This forum has taught me so much in such a short time that I have been on here, most all these guys are very knowledgable. You must get involved with the local tech schools, they have already ask me to be on the advisory board , I meet with them Thursday, man what I have seen they are so far off base with there curriculum , I guess the State has slashed there budget they are using outdated stuff, I am going to corner my Napa Owner and Snap On guy about this as well, actually you cannot teach somethings in a school, they do not even talk about ethics and just doing good honest business, that flabbergasted me. I am going to speak to these kids in the next few months and lay it out to them with facts, mostly, from what I have found here about the state of our industry and just the facts of doing good ethical business and passion . As you can tell I love this profession and I have a passion for it. You can always remember if you do the right thing nothing generally goes bad. I am not saying it is always a rose garden, I had the first small claims case against me 2 years ago , I got a lawyer buddy and went in and proved there was no way I scratched the wheel in this location with my machine , it does not come close to this area, these were 3 piece defective slow leaking wheels around the sealed centerpiece area. I mounted a used tire on the car, lady judge had no idea, I walked out of there and fist pumped my attorney buddy, I get a letter a month later from he judges ruling, the judge basically says you could have dropped something on it while it as at your shop. I did not pay the $1300 and never will . I know we did not do it and I am standing by on my principles. I have also now posted signs and make people sign a document to this effect we are not responsible for wheel damage.This guy has dogged me out bad review after bad review , even a "ripoff report .com" I did try to mediate initially. I am convinced the public and the judges think most all auto repair shops are a a bunch of crooks, we have to change that perception in the US. Forums like this does help tremendously. I personally think that the small independent is where it is at today, the dealerships are still sticking there foot in there mouth, the box stores are jamming people up, most all on this forum here and see the same horror stories I do daily. Get Involved with the local schools educate people and lets get this stigma turned around. I also did a NAPA TV show ,they begged me to do it, I just do not advertise much , I do not have to, I did this show, no charge to me, I spoke on ethics and PM service, that was a hit. Had a guy call me from NAPA headquarters and thank me and said no one has ever touched on the issues you did, I responded, Times Are A Changing. Thanks again for all you guys insight. You guys have a great day, I gotta go make some people HAPPY!

[Shopcat]

tirengolf, Great points. Small independent shops are where its at today.

[totalautocare]

Finding techs. Establishment of sops.

 

Sent from my SM-N900P using Tapatalk

[skm]

I don't know about your state but in Michigan you have to be licensed, state or ASE either way you have to be certified and pass the tests and your work is limited to the extent of your license. Also my shop has to be a state licensed repair facility to operate in this business.

I agree with this totally ! Where I am there is nothing like this in place. This is something that needs to be made nation wide.. Like I have stated before, to be a doctor, plumber, hvac, electrician, lawyer, massage therapist, taxi driver, bus driver, etc on and on you must have a license and past tests. to be a mechanic/tech you must be able to say " I am a mechanic " at your interview, if you are even given one .. I think it needs to be a nation wide program licenses or ASE or equivalent tests must be passed !

[Shopcat]

Not to take this this to a political level, but be careful inviting even more federal regulation into our lives. Lets look at how the government helps. Is healthcare better now that the government forced Obama care on us? How about the department of education? We spend tons on it and get one of the worst results worldwide. The department of energy, formed in 1977 in part to get the US off the dependence on foreign oil. all I am saying is lets police our own industry.

If you hire only ASE certified techs and have regular training, your shop will have a competitive edge over your competition. Lets do this for ourselves. Ronald Reagan said the 9 most terrifying words in the English language are " I'm from the government and I'm here to help". I for one an thankful we do not have more "government help". In my humble opinion.