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 Joe Marconi
For the first time in a VERY LONG time, I see a lot of positive news with regard to labor rates. More and more shop owners and managers are crunching their numbers and increasing their labor rates to better ensure their companies achieves a profit and also to be able to pay their employees what they deserve.
Profit is needed in order to build for the future and to be able to attract quality people.
I really think that this is perhaps the best time in our recent history to revisit your labor rates and bottom line and adjust your rates accordingly.
Have you adjusted your labor rates recently, or plan on it?
Kevin Syed, Owner of Integrity 1st Automotive, 8 Locations, Dallas Fort Worth TX, grew up with an entrepreneurial father and was always encouraged to lead. Having successfully earned a Bachelor’s degree in Business Management from University at Buffalo, Kevin went on to become a franchisee with Getty Petroleum / British Petroleum service centers for the better part of a decade in New York City. After gaining the knowledge, experience, and funding required to produce his own operation, Kevin went on to operate his own independent shops in New York. Kevin sought to find a new place to call home with his wife and twin girls; he longed for the community values and environment of the South and so his family made the decision to move to Texas. Integrity 1st Automotive was then born in Texas and Kevin has scaled his business to multiple locations across the Dallas Fort-Worth Metroplex. When he’s not working, Kevin enjoys local car rallies (e.g. Lamborghini Club Dallas), traveling, and hunting. Listen to Kevin's other Episodes HERE
Carl Hutchinson, Owner, Complete Automotive, 2 locations, Springfield, MO has been in the car industry since 1982, but has worked on vehicles long before that time. He has a passion for engineering, for understanding how vehicles operate, and how to repair a customer’s concern. Earlier in his career, Carl started working at a GM Dealership, then went to work at independent repair facilities as a technician and eventually became a service advisor. Carl’s experience in the automotive industry led him to his current position as co-owner with Maureen Hutchinson of Complete Automotive in Springfield MO., where he works every day to provide high-quality, valuable service to all customers. Carl is an Alumni with Ozarks Technical Community College, Springfield MO Campus. He currently sits on the Automotive Advisory Board with Ozark Technical Community College, a member of South East Rotary, and a member of the Springfield Midwest Auto Care Alliance chapter. Carl has his Master ASE Certification, L1 and Service Advisor certification and is an AMI Graduate. Listen to Carl’s previous episodes HERE Kenny Wedow, Owner, Fine Tuned Auto, 2 Locations, Broomfield and Erie CO knows cars. A natural talent even at the young age of 17, he pursued it auto repair in shop classes in school then slipped right into the work field. Working for dealerships such as Saturn, and Nissan, as well as other independent shops, has afforded Wedow with extensive and well-rounded education. More importantly, before Wedow branched off to open the doors of Fine Tuned Auto in 2013, he already learned the importance of patient diligence. Many dealerships and independent auto shops can default to make generalizations about the problems with your car, sometimes not always seeing the things that really might put you in danger on the road. The patience Wedow has to pull everything apart if need be to find the root answers makes him unique in his field. It is a quality that got him promoted to foreman at a Nissan dealership when he was only twenty-three. It wasn’t that the six technicians under him weren’t experienced, in fact, some of them had worked considerably longer than Wedow. However, his attention to detail and follow-through put him above and beyond. Listen to Kenny's other episodes HERE
Key Talking Points
Building Trust- Focus on relationships, not transactions. Reviews, book of business, referrals etc. People always like to try something new, wow them. Make customers feel better- don’t fake it. Location Location Location- be selective. Walk-ins at an easy location will increase with oil changes etc. First chance to gain customers for life. First impression marketing- Kenny uses poker chips with his information to attract new customers. Signage, uniforms, customer waiting area etc elevate the professionalism. The image plays a huge role in sales, female-friendly bathroom/lobby, cleanliness, smell in the waiting lobby, convenience etc. Be mindful of female customers, educate and simplify. Direct mail, google ads, geofencing- who is your clientele? What advertisement is right for your area? Once you have multiple growing businesses- what is your year after year retention? Why do people choose certain careers/trades? What is the reason? Look at different industries and see what they provide. Focus on the relationship, not the transaction Be involved in the community Connect with the show:
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Champtires – one of the leading e-commerce used tire sellers – is not facing supply chain issues. In fact, over the past several months, Champtires’ inventory has grown exponentially.
“Luckily, we are still able to source really great tires right now,” said Brad Rea, president and founder of Champtires. “Ninety percent of our inventory has 7/32 tread or above, and we’re adding hundreds of Michelins, Pirellis, Continentals – tires in every brand really – every day.”
Reselling used tires with significant tread life left saves them from ending up in a landfill. And it allows consumers and auto businesses to save drastically compared to new tire prices.
“Relying on premium used tires is a responsible way to use recycled products while saving yourself a lot of money,” Rea said.
High quality used tires are perfect if you need to match one or two to a remaining set or when replacing all four tires. Every tire that enters a Champtires facility goes through a thorough three-step inspection process. Free FedEx shipping is included on all website orders to the continental U.S.
Learn more and shop now at Champtires.com.
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By Joe Marconi
Got your attention? Good!
Take it from me, a shop owner for 40 years; before you invest a dime on advertising, get your internal marketing in order....in other words...get your house in order.
No amount of advertising or marketing means more than what you do each and every day. And that is creating an amazing customer experience that gives your customers a compelling reason to return.
Make sure that each customer contact point creates a positive experience. The phone call, the drive up to your shop, the parking lot, the customer write-up, the upsell, the car delivery and every other point of contact with the customer.
These things I speak of means more than any money you spend on advertising. So, before you spend that dime, get your house in order. And remember, everyone in your shop is an important part of your marketing strategy!
By Ron Ipach
December spells the end of 2018, and hopefully you're wrapping up what was a fantastic year for your auto repair shop and business.
Now… it’s time to start thinking about how to make 2019 an EVEN BETTER year. (Heck, let’s go ahead and plan on making it your best year ever! Right?)
By attending for this special Live Online Webinar, you're going to get the proven 4-step process that will practically GUARANTEE 2019 to be a blow-out success for you.
With these four steps, you’ll be able to…
👉 ==> DOUBLE your take-home pay (Yes, that’s not a misprint. I’ll show you how.)
👉 ==> Magnetically attract more (and even better!) customers to your shop
👉 ==> Easily sell your services at higher prices than your competitors
👉 ==> Find, hire, and keep that elusive tech you’ve been searching for
👉 ==> Put the fun back into running your shop!
If you're interested... there is absolutely ZERO cost to attend this training.
All you'll need is 45 minutes of your day set aside in order to watch this webinar live.
For the dates, times, and registration details, CLICK HERE
By Ron Ipach
Let me ask you a few questions about your year to this point…
Has 2018 been the killer breakout year that you hoped for? Are you still tired of not having enough quality car count in your shop every day? Are you wondering why you’re working so hard, yet not making the money you should be making? Is the endless ‘feast or famine’ of this business driving you nuts? Are you frustrated with running around your shop all day putting out fires – instead of getting any ‘real’ work done? Are you ready to get a proven plan handed to you on a silver platter that will help you attract an endless supply of customers, crank up your profits, and get your shop running in tip-top shape – while working fewer hours than you’ve ever worked before? If so, you’ll want to do everything humanly possible to clear your schedule and join us at the upcoming High Performance Workshop (August 18th & 19th)
- UPDATE: EVENT HAS PASSED. CLICK HERE TO WATCH AN EXCLUSIVE SALES TRAINING
You’ll be exposed to the TRUTH about what it takes to be successful in today’s environment from an actual million dollar shop owner.
This workshop is a 2-Day LIVE intensive training where we take you by the hand and walk you through every step of what it takes to run a KICK-BUTT, smooth running, and HIGHLY PROFITABLE repair shop!
Click here to learn more and register today!
By Ron Ipach
It's finally time for you to enjoy less stress and take more time off, all while putting more money in your pockets.
Would you like to know how? After helping over 6567 repair shop owners achieve the shop of their dreams, I've put together my most anticipated Webinar yet:
What The Top Auto Repair Shop Owners Know That You Don’t:
How a Small Minority Are Pocketing Six-Figure Incomes
I'm Interested - Sign Me Up! Need More Incentive?
On This Free Online Training Webinar, You’re Going To Discover:
The 4-step business model that’s been quietly converting struggling shop owners into multiple $100,000+ per year earners, while enjoying their businesses more than they ever have before… How making a few important shifts in your business RIGHT NOW will protect you from being swallowed up by the massive changes coming in the industry… Why most advertising efforts by shops today are a total waste of money…and where you should be focusing all of your efforts right now to attract the best high-quality customers to your shop… A simple process for converting those annoying price shoppers into paying customers…and selling your services at higher prices than your competitors… And much, much, more! Don't waste any more time, take the steps to change your life, and better your business!
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