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We've been searching for a new lube technician since October and I am beginning to wonder if we will ever find someone. We have had at least 5 not show for an interview, a few that showed up late and the best one was doing a working interview and never came back. If this a preview of what we have to look forward to with this generation of up and coming individuals wanting to get into the autmotive industry, then we are doomed.
Hope everyone is having good week with great sales. I am in the process of renegotiating my employee’s uniform contract. It is sorta the same old thing start low then get higher. Could I get some feedback on how you guys are handling this. I have looked at buying uni’s for my guys. In my area it is expensive and they do not want to update my guys. Just lchecking some ideas . Thanks guys. David
By Elite Worldwide Inc.
By Bob Cooper
According to a recent article in the Wall Street Journal, some CEO’s are starting to understand the price they have to pay for quick profits, and many of them are now taking a different approach. Although all companies should consider their long-term growth and financial stability, there has been an ongoing challenge that today’s CEO’s face; the relentless demand for immediate profits that is put on them by their stockholders.
Look at it like this. Publicly traded companies (i.e., Delta Airlines, General Motors, etc.) are owned by stockholders just like you and me. Although small investors like us don’t have a voice with such large companies, there are Wall Street fund managers that do have their ear. These are the people that buy and sell stock in staggering lump sums, and in order to entice those fund managers to invest in their companies, and to then keep that money invested in their companies, the CEO’s need to show strong profits not just for the year, but for quarter after quarter. The CEO’s know that if they miss their earnings (profit) mark, then there is a strong probability the fund manager will consider pulling their investment, and investing their money elsewhere.
In summary, investors like you and me put pressure on our stockbrokers to generate good profits for us, and in order to do so they put pressure on the fund managers, who then put pressure on the CEO’s. The end result? The CEO’s know if they don’t deliver, they may very well be out of a job, which is why so many of them are far more focused on short-term profits than long-term success.
Are their exceptions? You bet, and the late Steve Jobs is a classic example of someone who had a long-term vision and who invested his profits back into Apple. Of course there are others who do so, such as Warren Buffet of Berkshire Hathaway and Bill Gates of Microsoft, but they are few in numbers compared to the CEO’s that are driven by short-term success.
So now that the Wall Street Journal is reporting a shift in how CEO’s think about squeezing the golden goose, you may want to revisit your shop’s business strategy as well. Since Steve Jobs is considered by many to have been the greatest CEO of all time, you and I should certainly feel comfortable following his lead.
How you view and operate your shop is certainly a personal decision, and I understand everyone is going to have different goals in mind, yet I feel there are some principles in business that are too good to be new. As Steve Jobs showed us, one of these principles is that we can’t let short-term interest or a quest for immediate rewards overcome our better judgement. Let your competitors make that mistake. Instead, just as Steve did, you need to set long-term goals that you believe in, you need to create a plan for reaching those goals, and then you need to constantly invest in your future. Some examples would be investing in training programs that address the newest vehicle technology, or taking the time now to implement an apprenticeship program that will help you develop your own superstar advisors and technicians in the coming years. I’d also recommend launching marketing campaigns that build your brand and focus on your principles, rather than campaigns focused on discounts that are designed to generate immediate sales. These are all surefire ways of investing in your future, and keeping you well ahead of your competitors.
If you follow the example that Steve jobs set for us by reinvesting in your company, and if you live by the principle of never putting money ahead of people, you will see what your competitors will more than likely never see; a more profitable, successful business that is good for you, your employees, your customers and the industry. I am sure you will agree that beyond the great products, Steve Jobs gave us quite the gift; a lesson in how to build an incredible business.
“Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with online and in-class sales, marketing and shop management courses. You can contact Elite at [email protected], or by calling 800-204-3548."
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I just felt I had a reason to tell this story if it helps 1 person in here. I was a frequent user of Auto shop Owner 2 years ago, I have been absent for a while dealing with another issue for the first time in my 40 years. I have been in the situation with a 16-year assistant manager who I would have trusted with my last dollar. I thought i ran a pretty tight organization, I am fortunate enough to have a brother who spent 25 years in the business do a lot of the hard CPA type stuff and works very closely with our CPA. Anyway, some issues came up on Quickbooks at the year-end my CPA was not ok with. He called my brother and looked at some of the data issues, my brother in turned told me we need to come back up here tonight and look at a few things. After doing audits for 1 year, long story short my trusted employee thought he had figured out a way to beat the system until it all collapsed on him. It has been the most trying 1.5 years of my life. After a 1 year investigation, they arrested him last week, 2 felony counts with more to come. Trusted employee, friend, church-going guy. Not a drinker or druggie, Law Enforcement says it is a disease, guys it is rampant in today's business world. What are people thinking today, the computer will catch you. If I could prevent just 1 guy from going through this it is worth my time to write this. It is hard to catch a guy that you trust like family, in a way it was bittersweet although the scheme and coverup is what just gets in my craw. I was not my computer program " Quickbooks" or anything like that it was just a good guy who turned bad. I beg you guys to watch everything and run the business like a big corporation. As we all know and here the trusting guy or gal is always the one to get you. It happened to me, we turning the page now. See ya
I have a new employee that needs to get some tires & asked if he was able to get them at cost or a discounted rate. We don't put much profit on the tires so not a lot of room to offer a discount. I do have other employee's that get for the cost, but they are also family members & in management. I'm curious what do other shops do or offer the employee's.