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Posted

I hope everyone had a great month. April seemed to be off for a lot of shops, so if yours was one of them I hope it turned around for you.

I had a great month!  My guys turned in an all time record month. They beat the snot out of the previous record by $15K, and had a higher GP doing it. Car count is up, ARO is up, and I spent most of the month at the lake working on my boat while my guys took care of business.

Tomorrow is one of my favorite times. I get to go in and write some serious commission checks. I'll probably flip everyone a Benjamin while I'm at it.

Life is good.

  • Like 7
Posted

We did record numbers! My people are a bit stressed but hanging in there strong. I keep telling them, let's shoot fish in a barrel while we can. We haven't seen the A/C work load I have been expecting due to the rainy weather, but I am sure it is coming soon. Congratulations y'all!

  • Like 3
Posted

May was okay.  I monkeyed with my marketing in April so my car count was lower than budget but still up over last May.  I changed it back.  ARO is up 12%.  Would have been a record if I would have left the marketing alone.

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Posted

I've been in business 9 years and may was my best month ever by about 40%.  I did start advertising with yelp a few months back so maybe that's some of it 

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Posted

May was very good. We started with ReviewDriver about 6 weeks ago and it gave us a huge uptick in reviews, which I think translated into a lot of new business. 

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Posted

After a record January and March, I suppose it was no surprise that May was also a new record!  February and April were good, but not record-setting.  Expecting the trend to continue this month...  But YTD is up 6.5% so I am happy!!!

 

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Posted

And just reading through this thread echoes what I seem to be hearing in conversations with my peers in the area - a lot of us that have been around for awhile and have tried different things are realizing that maybe business is just streaky now and it will be hard to attribute a good month to an advertising program or promotion since business doesn't seem to follow any pattern at all anymore.  Still good to advertise and try new things but I wouldn't necessarily count on the observed results being what you might expect, either way!

  • Like 2
  • 3 weeks later...
Posted

June was awesome for me as well. We set another all time record month for both gross sales and GP$. Second month in a row we've done that.

Time to pass out Benjamin's to everyone again!

  • Like 3
Posted
18 hours ago, xrac said:

Too bad you ain't closer I would love to see your operation!

It would probably be a big let down. It's a nice shop and all, but I've seen a lot of really nice shops. There's nothing amazing or complicated about it. It's mostly a combination of getting great people, designing a pay plan that encourages them to do what you want them to do, and a 100% commitment to the marketing. There are other aspects of course, but that's the core of it.

My friend Tommy in Texas just creams me on gross sales, and his net profit is crazy. I finally got to see his shop about a year ago. It was underwhelming to say the least. But it showed me without a doubt that if Tommy can get it done in his shop, I should be able to do it blind folded with one hand tied behind my back in mine. So far I'm not, but I'm catching up.

  • Like 1
Posted

June was a slow down from the previous pace we were on, it was up 2.9% over last June. People are telling us that they are uncertain about the economy and they are only spending on "must do" items.

Posted

June was our best month ever by about 20%.  Not seeing any hesitation to repair but the main used car dealership in town went under in May so I'm wondering if people are slowing down their car purchases a bit in this area.

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Posted

May was a record breaking month for us in every way. We added another service writer and another tech and needed the month to be good. We over doubled last May, up 110% in gross sales, and nearly tripled GP, up 180%. June was also good compared to last June, gross sales up 50% and GP up 44%. However, with adding a service writer and a tech we need to be up. We are currently booking almost a week out, so I'm very happy we increased staff when we did. We are a relatively new shop, so we've been up every year. I don't expect it will always be this way.

Richard G

  • Like 2
Posted
1 hour ago, xrac said:

Congratulations. Hope it continues. Our June was strong but July has opened weak. 

July has opened weak for me as well. But... When I compare to last year, which was a good July, we're ahead and not by a little. Like 45% ahead. You'd think I would remember last year starting out so weak. I need to go back and look at my daily sales from last year to find out when we came on strong.

Posted
On 7/14/2017 at 10:22 PM, xrac said:

Despite some really hot weather AC work is not very strong in these parts.  

I am in Northern Florida, it also seems to be starting slow although my whole year has been a bit strange.  My business is down a little, first time in 15 years. Sure is waking me up. July is starting down a little as well. Good Luck to all.

Posted
On 7/14/2017 at 11:22 PM, xrac said:

Despite some really hot weather AC work is not very strong in these parts.  

Same here, any heat related demand has been very weak. July is running on par with last year's numbers, could change if we get a heat wave but I am not holding by breath.

Posted
11 hours ago, PartsTech said:

From the Merrill report posted above.  

"Vehicle mix could be a long-tailed headwind. While the market has grown increasingly concerned over a potential decline in the older vehicle population (which continues to age, now 11.7 years, see chart 6) from weakening used vehicle prices, a coming “off-lease tsunami” and lower new car sales, we see a bigger issue in the mix of cars sold. More specifically, we believe a shift away from SUV’s which are more costly to maintain and into sedans and CUV’s (cross-utility vehicles, which are based on car chassis) could be a long-tailed drag on aftermarket auto part demand for many years. As an example, the annual maintenance cost of an SUV is 23% higher than a small sedan and 10% higher than a medium sedan. For total operating costs (also including gas, insurance and depreciation) this jumps to 56% and 19% higher.

...

In the charts below, we analyze the number of vehicles by type that turn seven years old in each year. Seven years is the approximate sweet spot for the auto part retailers as this is when cars are typically out of warranty and begin to see higher maintenance and failure parts demand. Starting in 2015, there was a sharp drop off in the number of SUV’s turning seven years old, a function of the great recession when consumers shunned costly SUVs. More specifically, in 2015-2017 there are 3.1/2.1/2.4mn SUVs that turned seven years old in each year compared with an average of 5.7mn in the prior ten years. While there are many factors that have contributed to sluggish auto parts demand, we believe this could be an important and perhaps overlooked contributor."

Does that theory jive with what you're seeing?

PartsTech, I have thought about a bunch of theories from this report, I am located next door to the Oreilly's hub for our area. They built next to me about 7 years ago. I have noticed and spoke to their manager and parts guys about this topic for years. I have noticed the amount of cars coming in their parking lot is down.  I guess it does not surprise me that the retail parts business is slowing, I really think in few short years the walk in hard parts customer will be slowing down even more. These cars are getting very hard to work on and the consumers have no idea where to start. As you can imagine being next door I see horror stories daily. People spending hundreds just guessing. I really felt this would be a good year for my business, we have been at the same location for 55 years although we are down this year, first time in 15 years. I cannot put my finger on it. My customer base is rather extensive, maybe they are waiting for the last 6 months of the year. I sure hope so. We are really starting to look at expenses at this point. I guess sometimes it is like that. You have some good points. I have had a lot more parts salesman in my doors this year than ever before. It is going to be interesting this time next year. Have a good one. David.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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