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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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com
Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?
Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop. Visit www.getbroadly.com/chat to learn more.
Click to go to the Podcast on Remarkable Results Radio
Hunt Demarest, CPA Paar-Melis. Hunt is Accredited in Business Valuation and a licensed Certified Public Accountant that has been with the firm since 2006. He specializes in business taxes, valuations, and does consult work with our clients all across the country. When he’s not in the office, Hunt enjoys spending time with his family, golfing, working on and racing his cars. Look for Hunt’s other episodes HERE. Brian Bates, the owner of Eagle Automotive Service, 5 locations, bought the neighborhood shop in Columbine Hills back in 2004 as a way to serve the community by offering quality repairs and services while living out his dream of running his own business. Brian has served as a President of the local NAPA Autocare Business Development group, served on the national AutoCare council with the president and directors of NAPA Auto Parts, and is proud of his team’s achievements in becoming an AAA auto repair certified and holding a BBB A+ rating since the inception of the grading system in 2007. Listen to Brian’s previous episodes HERE Joe Hanson owns Gordie’s Garage. Joe has attended Management Success, NAPA training, Lawrence Tech University and most recently he is a member of the RLO 20 Group 13. He has earned his ASE C1: Automobile Service Consultant Certification. Under his father’s leadership, he has seen what it really takes to make a business like this work. Listen to Joe’s Episodes HERE. Key Talking Points
Value your business before you sell or begin to think about selling- need to figure out value today so that you know what to do to change the value of the business in the future. Find an objective process to value your business before you start talking to a seller. Use an objective third party to negotiate with buyer and seller- CPA/accountant/business valuators. “Higher than what you want to pay and lower than what you want to sell.” Work together instead of against. The best tool to evaluate/estimate what a shop is worth- multiple of net income, what does it make at foundation over 3-5 years? Multiply 2.5-3X SDE- seller discretionary earnings, do you add it back in? If the owner is an integral part of the organizaion (owner and service advisor/technician etc) then you can’t justify adding back payroll. Financial forecast- creating a roadmap for bank/SBA, prepare financials, marketing campaigns, write assumptions for expenses The end game isn’t closing on the business, it is succeeding in new business Know your buyer- price is important but the representation of price is where the value is Key advantages- finding out what motivation of the seller, most time it is about legacy and wellbeing for employees and customers. Trust and transparency with both parties Take emotion out- need to be in a logical state of mind, you are purchasing and selling an asset Growing after purchasing- as an owner, business, and employees Support during venture- at home, professional network as you go through all the ups and downs. Learn from other people’s successes and failures. A special thanks to Hunt Demarest, Brian Bates and Joe Hanson for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook Twitter LinkedIn Instagram Youtube Email Mobile Listening APP’s HERE Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE. Buy Carm a Cup of Coffee This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few? Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop. Visit www.getbroadly.com/chat to learn more.
Click to go to the Podcast on Remarkable Results Radio
New guy here, looking into opening a new repair shop. Been in the industry for 15 years as a tech/manager.
I am looking into a new building/ piece of land to have a shop built on at hard signaled corner with 50K per day traffic count in an affluent neighborhood, over 40K households in a 3 mile radius with average income of $125K per year. Not any high end modern repair shops a 5 mile radius other than a few standard dealerships. Location is really great, or so it seems.
I am pricing out rent/mortgage to be between $36 and $50/sq ft for this shop. Proposed to be 7500 to 10,000 sq ft. The shop/brand we be marketed as an alternative to the luxury dealership, higher end with modern amenities compared to the normal 30 year old never updated repair shop and cater to the performance car community as well.
Plan is to have 4-6 techs with 1-2 writers. I have run numbers through a P&L statement and if the techs produce 8-10 hours per day the numbers work to pay the bills and make a 15-20% net profit.
My question is, is my rent too much? Depending on my labor rate and hours billed, my rent expense is between 15% and 20% of gross revenue. I know I have read and heard that auto repair should be closer to 5-10% but I know that location can affect this greatly along with many other factors. I know that the number work in my spreadsheet but I want some real world opinions if possible. Maybe someone is in a location or situation like mine and it is working great or maybe it isn't.
Let me have it!
By Joe Marconi
This tip actually comes from a fellow Elite Business Coach; The Tire Rotation is the New Oil Change Service!
I agree! With extended oil changes and people waiting until the oil change maintenance light to tell them when they need an oil change, rather than your Windshield Oil Sticker, shops need a way to get people back into the bays. Also, let's face it, the average consumer DOES NOT change their oil as often as they should.
One of the best ways to get your customer to return to you is to schedule a tire rotation every six months. Wrap the tire rotation around a vehicle multipoint inspection and you now have a new powerful sales strategy and customer retention plan.