By Joe Marconi
One of the lessons from COVID is for repair shops to have a strong cash reserve. Shop owners need to budget their money each week, and allocate money to different bank accounts, such as payroll, operating expenses, taxes, etc.
Another account I would recommend is to have a Cash Reserve account, where money is allocating each week, and not touched unless their is a emergency, such as an economic downturn and or if an economic emergency occurs in your area or with your company.
While no one could have predicted the affects from COVID 19, I think we can all agree that being cash strong is a viable strategy.
You should have anywhere from 3 to 6 months of covered expenses in a separate bank account. I know, I know....it's a lot of money. Start slow and build each week. Anything set aside is better than nothing.
Of course, to have a reserve means that you need to have the profit to put away. Right? Well, another reason to know your numbers, revisit your pricing and make sure your labor rate is enough to support your payroll, operating expenses and have enough left over to set aside money for the unexpected.
Trust me, you'll be glad you did.
By Jonathan Ganther
Hey guys. I'm new to the forum and was looking for this subject but couldn't find it. Sorry If I'm posted something that's already been discussed. I own a brake shop in Austin, TX. We do anywhere from 10-20 brake jobs a day. We only do brakes so I don't know how much full service auto shops deal with this problem but... Customers are constantly calling in claiming they've bought the best parts or they want to provide their own parts because they've done research and know what is best. This drives me crazy. First of all they don't know whats best. Then after being told no they get offended and act like tons of shops allow this. What is the best way to handle these customers? Just send them away? I'll quote them a price using our parts and they act as though its a rip off. What shops are doing this for their customers? I feel like I'm letting jobs get away from me. Any experience with this?
By ASOG Podcast
Brian Walker of Shop Market Pros explaining what makes them different at the TOOLS Conference 2021.
Dan Garlock, President, CEO, Silver Lake Auto, 4 locations, WI. As a second-generation owner of Silver Lake Auto & Tire Centers, Dan Garlock developed his love of the industry, working in his dad’s repair shop from a young age. Today he serves as president and CEO, expanding the multi-shop company to 4 locations and $7 million in revenue alongside his brother Darren. Dan enjoys the challenges of evolving an established business and pushing the standards of success by investing in leading-edge technologies and great people. Dan also serves as the board of directors president for the Lutheran High School Association of Greater Milwaukee in his spare time.
Scott Brown, Cardinal Plaza Shell, Springfield, VA. The second-generation owner of Cardinal Plaza Shell, a 2,700 square feet, 5 bay independent repair shop and LEVEL 5 Solutions, an automotive technology company. Celebrated 50 years in business during 2019. Scott is a Member & Past President of Virginia Automotive Association, Member of Car Care Professional Network through the ACA. and founding partner of the Blue Ocean Buying Group for independent repair shops. Listen to Scott’s previous episodes HERE
Mike Bennett has been in the industry since 1985. He is an ASE Master Tech who has worked for GM as Technician, Shop Foreman, Service Manager and Service Director for 2 locations. Mike bought his current shop, Mike’s Kars, in Gettysburg, PA in 1999. It is a a four-bay shop with 3 technicians. In 2011, he became a full-time coach with Automotive Training Institute helping shop owner’s to re-engineer and grow their businesses. Mike Bennett’s previous episodes HERE.
Key Talking Points
The difference with CEO Group- elevate to different space/language, knowledge, understanding the role of CEO, dynamic with other CEO’s in same and different industries. Create more diversity and build and learn about yourself. Seeing possibilities and tailoring them to your business. Committed to concepts you learn. Curiosity and willingness to learn- understand impact places in your business Self-awareness of weaknesses and strengths- how do you see yourself? How does your team view you? Former Pepsi CEO “The distance between number 1 and number 2 is always constant. If you want to improve the organization, you have to improve yourself. By default, the organization gets pulled up with you.” Being more vulnerable- ask feedback about yourself from your team, what do they want as well? Avoid “Make it say uncle” strong-arm approach to initiatives CEO and COO- has developed operation leader. Developing strategy, tactics, and execution. COO group- align what the CEO is working on and execute (separate meetings with COO and CEO) Connect with the show:
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