Challenges and Opportunities
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Article: Efficiency, Efficiency, Efficiency
By Jim Murphy of Elite We continue to hear that it is important to be more efficient in our shops; more efficient at the front counter, more efficient techs, more efficient with our time in general. What are we truly doing about it? Expenses and costs keep increasing. The collision industry has already learned that they cannot charge more because the insurance industry has capped their ability to do so. 6 to 7 hours per technician is not going to cut it any longer; the collision shops now need to get 10 to 12 hours per day per tech. How is mechanical repair going to survive? Customers are beginning to reach the upper barrier of what we can charge. We need to improve proficiency by 50% without increasing the charges to the customer. How do we do that? We need to re-evaluate processes, people, equipment and technology. We then need to reassess and improve some more. The collision industry efficiencies were increased, now it is our turn! We need to reconfigure workspaces for the shop and customer service areas. Analyze paper and people flows to minimize steps and remove the barriers that make your staff slow down or stop. We need to constantly review equipment, tools, technology and IT to speed up processes. We need to look for improvements in products to minimize comebacks, and most importantly, we need to continue to upgrade training. The best performing businesses have the highest quality people, the right people for the right positions. Training plus experience equals a highly trained staff. Make sure that you have a training plan in place for each employee. You want to source the right training at the right time for the right price. Don’t just accept whatever becomes available to you at the time and expect that this will be right for your staff. Do your homework and procure what each team member will need this year to become more efficient. Your business is going to depend upon it! This article was brought to you by Jim Murphy. Jim the leader of Elite’s prestigious Pro Service, a peer group made up of 90 of the most successful shop owners in North America. To learn more about the industry's top peer group, visit Elite's Pro Service page: https://www.eliteworldwide.com/20-group.html
View full articleBy Elite Worldwide Inc., in AutoShopOwner Articles
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BOLT ON TECHNOLOGY and Elite Partnering to Elevate Industry
Elite is proud to announce that we are partnering with BOLT ON TECHNOLOGY to help auto repair shop owners become more successful. When choosing to partner with a company we always take a careful look at their principles, at their ability to help shop owners, and at the impact they're having on the industry. BOLT ON has been able to exceed our most optimistic expectations in all of these categories, so it's truly an honor to be able to partner with them. BOLT ON and Elite will elevate the auto repair industry by making it more sophisticated, attractive to a new generation of shop owners, perpetuating ethics-based business practices, and overall creating better opportunities for success. The valuable technology and education provided by the companies will give shop owners the critical tools needed to improve car counts, AROs and customer trust. BOLT ON provides an award-winning suite of shop management products that makes shops more attractive to prospective employees and customers. Each tool helps shops operate efficiently by streamlining scheduling and updating customer information, producing more accurate reporting, strengthening customer communication through digital inspection capabilities and allowing managers to stay on top of business performance. Elite provides shop owners premium training in business practices such as recruiting courses, marketing courses, phone skills and sales training, peer group meetings and comprehensive coaching programs where every Elite coach is the past or present owner of a very successful auto repair business. “We’re proud of our partnership with BOLT ON TECHNOLOGY because of all the synergy between the two companies both in our cultures and overall goals,” says Bob Cooper, founder and President of Elite. “Our belief is that every shop owner needs both the right people and the right systems to reach their potential, and this partnership helps them achieve both objectives.” “The key to fulfilling our mission is making every resource available to our customers that will improve their business,” says Mike Risich, founder and CEO of BOLT ON TECHNOLOGY. “We’re extremely excited about our partnership with Elite because the best solution for a shop that wants to grow is not just to train management or implement new technology, but to utilize both.” About BOLT ON TECHNOLOGY
BOLT ON TECHNOLOGY equips the automotive repair and maintenance aftermarket with award-winning technology tools to improve customer communication. The company's technology instantly transmits photos, videos and text messages to communicate automotive repair details, thereby increasing customer trust, boosting sales and empowering shops to build long-term customer relationships. Along with ongoing training and support, BOLT ON's mobile and digital tools also reduce problems inherent in the service process, while increasing shop productivity, revenue, and customer satisfaction. For more information, visit www.boltontechnology.com or call 610-400-1019. About Elite Elite was founded in 1990 with two primary goals in mind: To help shop owners build more profitable, successful businesses, and to give back to an industry we love. Elite’s services help shops identify business challenges, and improve in the areas of sales, marketing, employee management, recruiting and all facets of shop management so that they may reach their full potential. Elite hires only coaches and trainers with extraordinary track records of success, who share these goals and have the same passion for making this industry a better place by improving the lives of shop owners, their employees, their customers and their communities. For more information, visit www.eliteworldwide.com or call 1-800-204-3548.By Elite Worldwide Inc., in General Automotive Discussion
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Article: Doctor's Orders - an actual letter from a dentist...
Doctor's Orders The field of automotive repair and body work has always been plagued with a few unscrupulous individuals. But, I would say that every trade has their share of them as well. I pride myself on doing the best that can be done for my customers and I don't take kindly to anyone who thinks this job is anything but a professional. This is not a job that can be mastered overnight; it takes years of experience and understanding. Even though I carry the title “ASE Master Technician” I don't consider myself a “Master” of the automotive field. I may have “mastered” the trade but not the technology that continually changes. That's an ongoing education which each and every mechanic deals with. But, with that said, there are still some individuals that still look down upon the automotive trade as some sort of second class job. Recently I received an email from one of those type of individuals. Several years ago I wrote an article titled, “Diagnostics Fee or Diagnostics Free” which was published in a variety of magazines. The article was primarily about the issues of a diagnostic fee for testing and evaluating a vehicle. A copy of one of the magazines was in a waiting room at a repair shop where this guy was getting his car to be repaired. He happens to be a dentist, which I consider as much a professional field as mine. However, this guy... doesn't see it that way. His email went something like this: I read through your 'two cents' on engine diagnostics and I could not agree more. However, I do have a bone to pick. Charging for a diagnostic is fine but where do you draw the line? I am a general dentist. For a new patient I charge $39 for an exam (cleanings from a hygienist are $60). I take roughly 25 minutes to complete an exam on a patient. Some patients take longer as they have a more difficult case and sometimes they just have more questions. I have spent 9 years in college, at a cost of over 200k, and roughly 600K on my practice (I have lots of fancy equipment too, even more expensive than the 'diagnostic computer') AND I am dealing with the actual health and well-being of mankind (screenings for head neck cancer, dental caries, oral path., etc., etc.) If I used your kind of math I guess I should charge more in the neighborhood of $500 for an exam (my education alone was probably more than 20 times yours so the math is still WAY low). But I don't charge that much. A true professional would realize when a charge is ridiculous and when it is not. A diagnostic charge from a mechanic should be in the neighborhood of $20. If you are charging in the near $100 range I would consider removing the self-titled "professional" from your website. Which I found funny that you brought it up anyway. Your computer is a one-time purchase. You don't throw it away when you are done so quit trying to factor in the computer cost like it is a consumable. A mechanic's pay at best is $35 an hour. A $20 diagnostic over 5 minutes is more than enough for that and even overhead. Actually, you just gave me an idea. I am going to tell my patients I now have a "parts, labor, and supplies" fee. That would be great. Imagine the next time you come into my office and I say that my labor fee is over $500 an hour. My patients would leave. I can't believe a mechanic thinks charging $100 an hour or labor is reasonable when everything else is also marked up 300% PLUS!!!! ... It is laughable. Anyway, I agree....but let’s get realistic. This is a junk email and address, no need in trying to contact me with your response. He agrees? Realistically, I find that hard to believe. These are the typical misguided perceptions that still linger in some peoples conceptions of the auto mechanic. Apparently, according to this guy... I'm not worthy of calling myself a professional because I'm “just” a mechanic. It's sad to say that there are still people out there that take this dim view of the automotive mechanic world. It could be this guy is only retaliating from a previous experience with his car that didn't go right, or it could be he was at one of those “unprofessional” shops that tried to tackle a job they shouldn't have been taking on. Maybe he thinks all mechanics alike, and not one of us is a true professional in our trade. Obviously, after reading this, I have come to realize that all dentists are not alike. I know my personal dentist respects my profession... and has a great amount of appreciation for my trade, just as much as I do for his skills and abilities. Even though in the email he stated there was no need in a response, well, there is a way to respond. Here it is. Those years you spent in college almost equals my years of training... your investment into your field is acknowledged and is definitely a part of both our trades. Mind you, the countless changes and improvements in the equipment and procedures in the auto industry (and dentistry as well) doesn't offset the cost of doing business in any shape or form. You'd think it would, but, as fast as the auto manufacturers introduce new systems so does the equipment to diagnostic them change. Honestly, I feel sorry for this guy. He seems kind of bitter. As a mechanic, I work on everything from the front bumper to the rear-end of the car. This guy... using a car as the comparison... only works on the shiny grill that everyone first sees. I mean really... he only has two models to work on and the last time I looked both models have the same 32 components to deal with. But, let's not reduce ourselves to his level of explaining the differences between the two professions. Oh wait… I already did. My bad… I guess it’s a lot easier to be condescending than it is to pull teeth, huh, Doc.? Sorry Mr. Dentist, I don't think I'll be following “Doctor's Orders” as you clearly state them in your email. I think this time you should take my advice and try to be more respectful to the guys and gals that keep your cherished ride on the road. There's no set fee for diagnostics, there's no 300% mark-up on parts, and there definitely isn't any magic one time purchased machine that will diagnose a car. Maybe you should try to be a little more understanding and a bit more professional, because right now... you're not!
View full articleBy Gonzo, in AutoShopOwner Articles
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Article: Challenges Of The Auto Repair Business
As the auto industry moves on into the modern age, repair centers all around the country are experiencing pressure with the tech world and our world colliding. We are all trailing nationwide franchises and dealerships that have endless resources working at their disposal. For most smaller auto repair businesses there isn’t enough time, money, or energy to attempt to constantly and actively secure the new business. We’re mostly worried about attempting to maintain the existing business we have, which has newer cars and increasing demands. Most of our time is now spent adjusting to the learning curve of advanced vehicle systems. However, that’s just a shop problem. The front office of your shop has its own issues to contend with that didn’t exist 15 years ago. Make no mistake about it, our industry is in the middle of a revolution and with 3D printing knocking at the door… the amount of balls to juggle are going to be considerable and it's all just getting started. Today’s auto repair businesses need to worry about the following: Location – Securing a proper location and the authorization to conduct business there over the long term ensures survival. Tools – Without the proper tools, we just can’t work on today’s vehicles. Training – Without the proper training, we put ourselves and our customers at high risk. Employee Engagement – Keeping your employees as interested in your success as you are is critical to the elements that keep people returning and employees from leaving. Employee Advancement – Providing an environment where employees know they can grow with your business, whether financially or moving up within the organization, is the key to keeping and securing talent. Marketing – This is the most complicated element in today’s world. It involves a mix of a strong web presence, good advertising ethics, social media profile, and following up with customers. Advertising – Can be expensive and very confusing. The best method to start is to get your feet wet with small budgets that keep your name in front of your potential customers, constantly. Software – Without good software, it is difficult to run any business. Good software is and always has been subjective. Our experiences indicate that good software saves you time and builds trust with your customers. Most importantly, it should work for you and not against you. This article originally published in CAR's News Section
View full articleBy CAR_AutoReports, in AutoShopOwner Articles
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Article: EGO vs. Abilities --- Sometimes your ego is your worst client
EGO vs. Ability For some reason, especially in the auto repair business, there’s a tendency for the ego to overshadow the actual abilities for a lot of mechanics. Sure, I can say my ego has stepped over the line a time or two, but for the most part, the ever changing industry usually keeps a person humble. For some guys, there’s no stopping their ever-unchecked ego from stepping out beyond their tool box. Especially, if they’ve landed a position that is far above their abilities. Some of them reach beyond the typical, “I know more than you do” level, to a status where their ever-enlarging ego has no boundaries, regardless if they are even qualified for such a position. If you ever have wondered if you’re that type of person or not, take this little survey and let’s see. Answer the following questions as truthfully as possible. Answer each question – yes or no. 1.I know all there is to know about cars. 2.All the other mechanics are below my abilities. 3.Customers come to me because I’m the best there is. 4.Have you ever said to another mechanic, “Get out of my way, I’ll take care of this.” 5.I don’t need to take advanced classes, I should be teaching them. If you answered any of these questions with anything other than ‘NO’, you probably need to check your EGO at the door. It’s not hard to spot these egotistical mechanics though. We’ve all ran into one at some point in our careers. You know, that one guy that runs his mouth all the time, or walks by each service bay shouting louder than everyone else while making claims he could fix that problem faster than you can. That one guy who, when given some authoritative position, turns into a ‘mini-Hitler’. Or, the one who can’t seem to finish his own work, but at the same time, he’s awfully chummy with the boss. The kind that swings into action if the boss says ‘jump’, but never actually accomplishes a thing. Yes, we all know ‘that’ guy. Worse yet, is when these type of individuals break their ties to the tool box and move to other aspects of the auto repair industry. Like the front office. When I was first starting out, I worked at a small local dealership as a helper. I wasn’t even what you might call an apprentice because I wasn’t assigned to a mechanic or strictly to the mechanic shop. I was more the guy who cleaned up the bays, held tools, and brought parts from the warehouse to the service bays. Everybody was great, and encouraged me to learn more and more. All but this one guy. It wasn’t long before it was universally known throughout the entire building that ‘this’ was our egotistical wrench head of the shop. This guy had something to say about everything. You couldn’t even sweep a floor or roll up a hose without him saying something demeaning or repulsive. But, it only got worse. Apparently, his boisterous attitude made it all the way to the front office. But, being the ‘non-car-front-office-people’ that they were, and since this guy couldn’t stay in his own bay long enough to finish anything, they made the assumption he must be their gift from the wrench gods. Which, in turn, must mean he deserved a promotion to bigger and better things. They made him the shop super. Now, his ‘little-Hitler’ mentality came out with a vengeance. Nobody was safe from the torrential down beating this guy dished out. Even with numerous complaints, the dealership head honchos still believed he walked on water. His greatest skill was not wrenching, or diagnosing, but getting rid of anyone that said anything against his ideas, or even remotely showed any signs of intelligence beyond his mental capacities. (Didn’t take much by the way) It wasn’t long before his ever oppressive antics started to affect the quality of work and the number of customers that used the dealership service department. Soon, every tech that was left had had enough. They were all packing up their tool boxes and heading down the road. After a while, even the need to have some young kid sweeping floors and running parts back and forth wasn’t needed, because there were more empty bays than full ones now. This egotistical maniac even thought he could teach the other mechanics and helpers something about the auto industry that apparently … only he understood. His method of instructing was appalling. It usually consisted of him shouting at the top of his lungs from the front of the room, while showing the aspects of some out of date process. He even had his own homemade jargon and squirrelly nicknames for these long forgotten components which only fit a cars that haven’t seen a service bays for decades. All the while, pointing a three foot long piece of dowel rod like if it were some sort of magic wand. It was more like watching a circus clown trying to explain advanced quantum physics. His true attitude was even more apparent if you asked for help on something. Instead of helping, he would come over and take whatever it was you were working on and rip it completely back apart, then telling you that you did it wrong. Ya know, if you already ‘knew’ you did something wrong, how is starting over from the beginning ever going to help? Two wrongs don’t make a right, and you ‘still’ don’t have any clue what you’re doing. But, as with a lot of these ego driven socket jockeys and little Hitler attitudes, it’s just a matter of time before upper management takes notice. However, for this dealership, it came bit too late. The place closed due to lack of work. Like ya didn’t see that coming. So, why am I bringing this up? It’s not funny, it’s not technical… what gives? What’s the whole point of this story? It’s for you to consider the results of your actions when you’re talking with a customer or for that matter another mechanic. The fact that a customer or fellow mechanic doesn’t know what you know, is probably the very reason your customer or that mechanic was asking you for your advice. You may find that technology is starting to pass you by because you’ve spent way too much time telling everybody that you know it all, instead of studying that very technology you claimed you knew. (You can only BS them for so long) Maybe, it’s time for you to eat a little humble pie and accept the fact that you need to advance your training just to be able to do what you thought you already knew how to do. It’s easy to find yourself in this business thinking you’re above reproach. But, honestly, we all can learn a lot about the make-up of today’s cars and even more about helping other technicians and mechanics without going to the point of becoming the next little Hitler. Years ago a mechanic’s job was all about turning bolts, twisting screws, and adjusting cables. Today, the stereotypical mechanic doesn’t really have a place in the service bay on a daily basis. Tomorrow’s tech is here today. That’s the guy or gal that is heavily involved with advanced electronics, data lines, and computer strategies, but they still need to turn those nuts and bolts just like before. Above all, the auto repair business is on the brink of being so sophisticated of a career choice that the shade tree adventurer will be hard to find. Every mechanic needs to learn and understand today’s vehicles to be profitable and to be respected in the industry as well as with their clients. It may take a while to bring the world of automotive repair up a few notches from that old stereotypical mechanic we all knew. But, we could all start by showing a little more respect to others, as well as ourselves and especially to our fellow mechanics.
View full articleBy Gonzo, in AutoShopOwner Articles
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By brian lorenzo
I have an opportunity to rent a 3rd location in a fairly busy area with a lot of potential. Problem is the current shop that is there owns the building and is moving 3 1/2 miles down the road will be the land lord.
Is this a good idea? anyone else have this situation?
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By Elon Block
Hi everyone,
In case you hadn't heard, here's something you need to be aware of...
AAA is making some changes, in the way they are doing business.
Within the last few years, AAA has decided to build their own company-owned facilities.
Here is a link, with an example of search results, drivers will see when they type in a zip code:
http://bit.ly/2bk7prG
Pay special attention to the search results marked (AAA Owned Facility).
The facilities are impressive and are gaining traction:
http://midatlantic.aaa.com/Automotive/ClubOwnedRepair/Aboutus/New
As you can see, their slogan is, "Auto Repair From A Name You Trust".
This is genius marketing, on their part...
Because customers equate the AAA logo, as a shop they can trust.
The other major change they've made is...
The new requirements for the AAA certification renewal.
Many shop owners did not read the fine print or notice the changes to the agreement.
In other words, the fine print requires certified shops to give AAA access to the shop's customer database.
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They now have a built-in customer base they can market to.
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This a major conflict of interest because now, they have all of your customers' information, which they can use to actively market and essentially steal your customers.
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By Elon Block
Hi everyone,
New blog post on this very important topic here:
http://www.autoshopowner.com/blog/16/entry-190-did-you-see-the-latest-goodyear-tire-rubber-announcement/
All major pricing changes like this one, affects everyone in the auto repair industry.
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By Elon Block
New announcement from Michelin. Looks like they're getting into the online game with a new and
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http://www.moderntiredealer.com/news/story/2015/08/michelin-pilot-program-sells-tires-online-and-offers-concierge-service.aspx
Even if you're not a tire dealer, this move is a game-changer, What are your thoughts on this?
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By ncsvoboda7
Hey guys,
So I am still working on a business plan for a central Kansas startup shop and I am looking around and am thinking to myself, how on earth am I going to rise to the top and be better than every Joe Shmoe that knows how to turn a wrench and has a garage on that busy little corner lot.
Before I go any further in planning my business, I want to decide whether or not I can compete with all the different competition and I would really like everyone's input on this.
We have everything from the "best price in town but here is a Ziploc with some extra parts we didn't know what to do with" to the "would you like a refill on that shade grown Columbian imported coffee?" shop in town.
Where can I fit in? How do i build my own niche to make money and gain market share? What can I do to compete or rise above the rest? How can I stand out from the rest and nudge my way in to gain some share in the auto repair industry?
I am planning for a slightly higher end shop, I don't want to be the lowest price shop in town for sure but I also don't quite want to be the most expensive. I want to charge a little more for a quality job, great customer service and a few extras like maybe pickup and dropoff services or free coffee and cable in the waiting area. How can I make sure I can succeed in an already saturated and very competitive market?
Thanks!
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