By Elite Worldwide Inc.
By Bob Cooper
Given the uncertainty many businesses around the world are currently experiencing, we must look for ways to save as much money for our shops as possible, while also making sure we are maintaining and building a more profitable business in the long haul. Here are 4 powerful tips to help you save on your shop’s expenses.
1. Review your profit and loss statement, and take a look at each and every line item. For each line item, you should ask yourself up to 3 questions: First, ask yourself if the line item is going to lead to an immediate profit. An example of this would be parts purchases or labor. If the answer to this question is no, then ask yourself if the line item will lead to a potential profit in the near future. An example of this would be your advertising or marketing investments. If the answer to this question is no again, then ask yourself if the line item will lead to any foreseeable profit at all. Examples of these items would be insurance investments, utilities, and your water cooler payment. Once you have the answer to these questions, it will be much easier to see where you can scale back or even put certain items on hold for the time being.
2. This tip comes from Dean Kuhn, a successful transmission shop owner and one of Elite’s rockstar Business Development Coaches. He recommends taking a look at the top 2-3 most expensive items on your financial statements each month. When you look at these expenses, really dive deep into every single line item that goes along with it. This way, nothing will slip through the cracks and you can get a complete picture your business’s finances, which will help you determine areas where you can save.
3. Always remember that your vendors are your partners, and it’s important to treat them this way. I would highly recommend meeting with each of your vendors and having an honest conversation with them to make sure your partnership is as mutually beneficial as possible. During these discussions, set clear expectations for the vendor and make sure that you are meeting theirs. This will save you valuable time in the long run and will make both of your businesses more successful!
4. To save on what’s likely one of your biggest expenses, I recommend that you sit down with your landlord or mortgage owner and have a conversation with them to see what can be done to reduce this cost. You’d be surprised how often an agreement can be made to help in situations like the one we are currently facing.
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 the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, 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'm Ricardo from Complete Auto Reports. You may have heard about the shop management software that we made at a shop in Linden NJ.
We've been really busy over the last year trying to refine the process at a shop through the software. We have come up with something we think that people can and will benefit from. We want to start with smaller auto repair facilities who are looking for something to transition out of paper and pen, as well as word documents and/or excel spreadsheets.
We've taken our software and made a free package that allows the following from any device with a updated and functional browser:
Take appointments from your customers Digital Vehicle Inspections - Included in every service request and sent to each customer if performed Workflow - Pending, Under Process, Awaiting Approval, Approval Completed, Work In Progress, Completed Ratings - Customers can communicate ratings directly to you Messages - You can communicate with customers through the platform Customer App - All service history available, can schedule appointments with the app, transfer vehicle records to new owners Sales Reports 100% mobile - Works on everything from your 5inch iPhone to your desktop.
You can presently upload all of your customer information: name, address, phone numbers, email.
Paid for versions offer parts ordering through PartsTech.com and Employeement modules that track employee time on jobs.
Are there members here who are interested in trying the free platform to see if it's a fit for their business? Anyone interested in the paid for versions, can also get 60 days of free use and discounted rates available from our SEMA promotions.
Our 3 plans can be broken down into these simple differences: Free: No inventory, no online parts ordering through PartsTech, only one photo/video per service request, one login, no employee management $50 per month (also have yearly options to save $): Includes online parts ordering through PartsTech and includes inventory, one login, no employee management $100 per month (also have yearly options to save $): includes everything with 5 logins to access the system. We often get asked, "What use can a bigger shop possibly get from the free plan?"
With the free plan, you can take appointments digitally from your customers and then upload a copy of their receipt from your existing system to their profile in CAR. Reducing paper waste and creating a digital record for your customer to always have. You can also use the free plan to send your customers a video or photo of the services you are performing, complete with billing the customer through the free plan at the end of the service. These are all features that you pay for with add on systems, they are all available for free with us as you learn to adapt to smarter, more efficient technology.
The data you enter is yours, we do not have any agreements presently to share it with anyone and we certainly will never be sharing any personally identifying information with anyone. Majority of the data we are interested in is to build better features to serve you better.
Should you ever decide you no longer want to use our platform, your account will be available to you for free for one year at minimum. In addition to that, we can and will provide you a complete data dump of all of your records within 72 hours of the request. These companies that make it impossible to recover YOUR data is the reason for our open policy. We want everyone to change their practices and we're leading by example.
If you decide to cancel your subscription for any reason, all of your data can and will be exported and delivered to you via a USB stick you provide or through email in the way of an Excel file(s). Additionally, you can access ALL OF YOUR information on our server for one year without any interference from anyone at CAR. Most of you may not know, but I actually own a shop and if it's one thing I can not stand behind, it's these companies getting access to all of our information for secretive reasons or keeping us from having the very data that belongs to us in the first place. You will never encounter this experience with us.
By Jeremy Glassco
I get asked this many times. How would I use a custom mobile app if I had one for my shop?
Take a moment to think about that.
Imagine what you could do IF you had a custom mobile app for your vehicle owner customers to download, interact with, and engage with your brand?
I'm noticing this trend in the food industry, retail industry, and now even in the medical industry.
What about our auto repair industry niche?
We're working on version 7.3, and part of what I love to do is get great feedback and build it into our upcoming versions.
What about you.
What type of features would an auto repair professional like yourself want in your dream app?
Please share your ideas here and my hard working team of app gurus will get on it!
Hi guys, first time posting to the forums.
I am a new shop owner, recently purchased an A/C machine.
Do you guys have standard pricing you follow? Pricing for leak checks, price per pound of refrigerant, top up if required? Let me know your A/C pricing matrix. Thanks so much for the help!
Is your business down 40 or 50% like many on this forum? If so, I have an idea to help a bit now, but especially in the future. And even help the impression of our industry.
You probably have more time available to spend with your customers. It’s the perfect time to build or cement a great relationship, to create that illusive trust with your customer, that’s mentioned in just about every trade magazine, but they never tell you how. May I suggest “The How” that I’ve been using for years? This will be handy now and in the future when this is over.
Learn more about your customers. Become “friends.” Talk about everything: the lousy situation we’re in, ask about their job, their kids, their past vacation, their future vacations, their weekend jaunts. Exchange good news. Exchange not-so-good news. Listen. Talk about what comes up.
I treat our customers like friends, like former high school friends. And these friends know we have to make a profit (EVERYBODY knows that!)
For me, it’s a given that we’re going to take care of their car. If they tell me their dad just went into the hospital or nursing home, we’re done talking about their car. I ask, “How’s dad?”
But still do your (digital) inspections. And write down everything, even the stuff that can wait six to nine months. This may affect the service writer or shop’s approval percentage, but so what! Your percentage will be lower, but you will do more work on the car this way. (Notice that I didn’t say you would sell more work. I don’t “sell.”) No decision now on the future stuff, it can wait.
If their car came in with a problem, this is what will fix it (there’s no selling: this is the solution). I point out the other thing that needs attention now. There will be some explanation, but no selling: it needs it. No decision for the customer, actually. Their car needs it.
Next I say, “Here are the things that can wait six to nine months, but I want you to be aware so there are fewer surprises.” No selling, no decisions on their part. Plus, I’m the trustworthy guy who’s telling them they don’t need everything now.
“Now let’s come up with a plan for these other things I found about your car.” I’m explaining, not selling. “You can do these now or in two or three months.” NOBODY wants to come back in two or three months so they are leaning in that direction, but no pressure from you. They will probably ask; “What would you do?” I say, “If you hate bringing your car in, do it now.” (this is where you would bring in a little value, benefits and safety) Again, not selling, suggesting; letting them make the decision. Notice that the first two issues didn’t involve them making a dreaded decision: It needs this, doesn’t need that.
If your inspection has 5 things, they will do 2 to 4. If the inspection has 8 things, they will do 3 to 5 – with no selling. You are their friend, you are advising. List everything!
Now think about that phone call. There is only a little selling value or benefits: maybe some safety. So there’s no pressure on you, no bad news. You are the car detective, reading the cars clues and helping your friend thru this.
When you take care of the customer in this fashion, you come from a place of trust, like taking care of a high school friend.
You will be happier because that call back won’t be stressful, you will have more work, and they are more likely to refer your trustworthy, easy-to-work-with shop, which means even more work.
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By Mark Johnson
According to The NY Times, you should have a well-padded cushion of savings by age 50 if you want to retire comfortably.
This is how it should look:
By age 50, have five times your annual salary saved. ( ie. $100K income = $500K savings)
By age 55, have six times your annual salary saved. ( ie. $100K income = $600K savings)
By age 60, have seven times your annual salary saved. ( ie. $100K income = $700K savings)
The Times also reports that less than 13% of Americans have a pension or a solid retirement plan.
How does your situation looks? Are you on track to retire comfortably?
If not, no need to panic.
We can guide you in getting there.
If a shop owner who is currently 50 years old starts putting away $2,700 every month until he retires at 67. He would have amassed $1,245,344 by the time he retires.
Now you might be asking where will I get the money from to save? Well, most of the shop owners that I encounter are overpaying an average of $22,679 in taxes yearly.
This amount alone could easily be used to fund your retirement plan.
When we met Henry he was 62 and his shop was netting a little over $283K per year. We were able to find tax savings which allowed him to save $84K per year and in 8 years he had over $1.1M in retirement savings.
To learn how to use your tax savings to build your retirement portfolio message me directly or book a free consultation via my website.
By Mark Johnson
He had been working with his accountant for 6 years. That’s over $134k in over-payments.
The reality is most CPAs only do tax preparation not tax planning, there is a HUGE difference!
I am offering free tax planning assessments to all group members.
Where we will look at:
Deductions review & Strategy planning Legal Entity Optimization Retirement Option & Plan to Hit Extra 1M by Retirement Insurance Review & Assets Protection TCJA (Trump Tax) Review Message me direct or book your slot on my website.
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In may I quit my job of 9 years and purchased an auto repair shop. I was previously employed as a field mechanic for Cummins. At my shop we focus on general repair. It's been a whirlwind since I bought the place but i couldn't be happier to be here. I've included some pictures of the shop.
Hi! I'm looking to open a new automotive repair shop and I could use some help assessing a specific opportunity from the experts here. To put this in perspective, I would be a new owner without prior repair shop experience, however, I understand repair work and have done almost all of my own work on my personal vehicles for nearly 30 years. The scope of work I have personally performed included transmissions swaps, suspension, brakes, ignition systems, fuel systems, computer diagnostics and so on. My formal training is in science and management and I've been in corporate positions for 20+ years. I also have experience running my own real estate rental business. I've always been interested in auto repair and I believe this business would be a very good fit for my aptitude, skills and experience. I would plan to operate as the business owner and bring in skilled staff to handle repairs and customer engagement under my leadership.
Here is the scenario I could use help with. I found a 10,000 sq. ft. building which is split up between 6 existing bays (3 front and 3 rear), office space and retail area. The section with the bays has about 5000 sq. ft. , about 1000 sq. ft. of office space and another 4,000 sq. ft. of retail area. The property has not been used for auto repair in a long time but could be converted back very quickly along with opportunity to do something interesting in the retail area. I have many potential ideas for the property. I am running into two primary challenges in evaluating the opportunity. The first is the competitive landscape and the second is how quickly I could ramp up the business along with how much business I would likely do from the location after ramp up.
The property is located on a main road with 20-40k total vehicles/day depending on the day of week. About a mile up the road, in a cluster, there are 6 name brand auto dealerships. On the same road, within just a few miles from the site, there are three tire shops, one local and two name brand, along with a Midas and another local 6 bay garage. Think of this as 5 competitors, each with 6 bays plus the new car dealers. There are a handful of smaller local shops with 1-2 bays locally as well. Also, there is a State DMV location, with inspection services in the same zone. The overall geographic area is in a town that contains a Wal-Mart, Lowes, BJ's and a Costco plus restaurants, etc.. These stores are all within 10 minutes from the potential new location. The next closest big retail areas are 30 minutes north or 40 minutes south of the target area described. The demographics of the area skew affluent and population density is moderate - this is not a big city - however people are drawn in from at least a 30 minute drive time radius due to the shopping and other resources.
I have a few ideas to differentiate my business from the rest in the area although on Google, it appears that most of the competing businesses have decent reviews overall. My shop would do all types of repairs including the heavier stuff and the bays are very tall so we could potentially accommodate trucks too.
So, my questions are:
Is this an opportunity worth considering given the competitive landscape? If I were to open a shop, how quickly should I expect business to ramp up? I am really looking for solid feedback from folks with deep experience in this industry to help me evaluate if this is a business proposition worthy of consideration at this location.