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Study Reveals Many Auto Shops with Financial Hardships


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I must be an outlier, my business has zero debt. Of course I have 30 day accounts for parts but that's it. My thoughts are if the business can't pay for itself something needs to be done immediately. I went through some lean times, the cause was trying to become too big. I slimmed down to bare bones; one tech and myself. Most "experts" would say I went in the wrong direction but I disagree. Both my guy and myself take 4 weeks vacation every year. I do my own payroll, with one guy its simple. I stopped doing non profitable jobs, easy to say no to the b.s. work when there's only one guy to feed.

 

Honestly I make more profit doing half the amount of volume. I can keep one guy busy cheaply and easily, trying to keep a crew busy was a major stress which involved major cash outlays to keep everything going.

 

The only drawback really is I'm changing flat tires and mopping the floor on a regular basis. I'd be doing that for someone else if I kept going like I was.

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I am 160k in debit with my shop. I needed a small loan when it came time to buy new equipment when we added 4 more bays. the other 120k is a piece of land that we plan to build our own building on in 5 years.

 

Thats another shity situation though, I bought it for 150k and then 6 months later the state comes in saying they need it for a road improvement and will only pay 40k for what they need and are taking 3/4 of it and not leaving me enough space to build anything. we are still fighting that.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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