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Put 2020 Behind you, Build a strong shop for 2021


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Let's face it, all of us were affected by COVID-19. Some more than others.  One of the biggest issue is the feeling of uncertainty....what we call the unknown.  But, humans are no strangers to tough times.  Tough times brings clarity and opportunity.  It forces us to create new strategies in an effort to improve both our business and personal life. 

We cannot turn back the hands of time. 2020 will be behind us in a few days.  Work hard now to make 2021 a banner year.  There has never been a time so important as now. Learn from the events of 2020. Create your new goals. Work on your people skills. Work on the numbers of the business.

I am sure all of us learned many lessons this past year, and one of them was to be financially prepared for a crisis.  While COVID was different, the financially-stronger shops did do better. 

Lastly, have a positive mindset at all times. And set the right tone as the leader of your shop. Your positive attitude will create the right culture and a pathway to better times.  

What lessons have you learned and would like to share? 

 

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Affected by COVID is an understatement! What's really surprising is the number of people this affected - and not just in a "business" way. Everyone has a personal story - good or bad.

I think one of the biggest lessons learned (overall) is that we all seemed to get back to what really counts - the people! In the heat of a busy day, we all tend to take a lot for granted.

But when it comes down to it, no matter if they're the "penny pinching" customer or the so called "bottom feeders" - everyone has a goal and from what I'm seeing. the goals are changing and there's more respect for those, even if their goals are different from ours.

Here's to a safe, healthy and prosperous 2021!

Matthew
"The Car Count Fixer"

 

Edited by JustTheBest
correct spelling ;)
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A lot has happened since last Winter.  In some ways it's seems like years have past.  Tough times reveals how tough people really are. 

My hope is that everyone learns from the events of COVID and takes those lessons to continue to push forward in business and in life.  And of course, take the time to celebrate the things that money cannot buy.  Life, health and family. 

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Joe is correct that Covid-19 has affected everyone to some degree. Our gas volume is still off by 30-40% which is both a concern and hardship but repairs have been good so I feel very fortunate. There are a handful of varied businesses that have prospered during Covid such us drug chains, Urgent Care facilities, testing labs etc. Sadly there are so many businesses such as restaurants, movie theaters, hair/nail salons, catering halls, fitness centers, hotels/motels ..... that have closed up permanently. A shopping mall near me has a severe failure rate with 40-50% of the stores shuttered for good. A Hilton in my backyard closed permanently. Huge corporate office buildings in my area still lay dormant with all employees working from home. The overall business climate is still very poor in our are and concerns me.

To answer Joe’s question as to what lessons I have learned - Adapt to change as quick as possible, do not financially over extend yourself, realize and react to untapped opportunities, increase and improve communication with customers and employees and be thankful to be able to come to work every morning because too many people are unable to do that.

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19 hours ago, JimO said:

Joe is correct that Covid-19 has affected everyone to some degree. Our gas volume is still off by 30-40% which is both a concern and hardship but repairs have been good so I feel very fortunate. There are a handful of varied businesses that have prospered during Covid such us drug chains, Urgent Care facilities, testing labs etc. Sadly there are so many businesses such as restaurants, movie theaters, hair/nail salons, catering halls, fitness centers, hotels/motels ..... that have closed up permanently. A shopping mall near me has a severe failure rate with 40-50% of the stores shuttered for good. A Hilton in my backyard closed permanently. Huge corporate office buildings in my area still lay dormant with all employees working from home. The overall business climate is still very poor in our are and concerns me.

To answer Joe’s question as to what lessons I have learned - Adapt to change as quick as possible, do not financially over extend yourself, realize and react to untapped opportunities, increase and improve communication with customers and employees and be thankful to be able to come to work every morning because too many people are unable to do that.

Great post and great lessons learned.

 

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8 hours ago, xrac said:

And it keeps on affecting. One of my techs and yours truly have tested positive.  I have the shop with no one to enter the building except people that I have no symptoms and are waiting on test results. Trying to clear out cars that are in the shop so people don't go days or weeks without them.  Maybe not perfect but I think it will be effective.   So far it only feels like a mild head cold.

Above all, Frank, the health and welfare of everyone is number one.  I hope that you and your tech recovers fast, with no continuing issues.  When I hear stories like this, it really opens my eyes once again as to the seriousness of this virus.  As a small business that relies on a constant input of customers, this virus will no doubt take a toll on many repair shops. Keep us updated and best of luck.  

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On 1/11/2021 at 9:58 PM, xrac said:

And it keeps on affecting. One of my techs and yours truly have tested positive.  I have the shop with no one to enter the building except people that I have no symptoms and are waiting on test results. Trying to clear out cars that are in the shop so people don't go days or weeks without them.  Maybe not perfect but I think it will be effective.   So far it only feels like a mild head cold.

As if getting Covid is not enough you also have to try your best to finish all of the “in progress” jobs and contend with being down for an unknown amount of time. Running a small business has it’s rewards but I bet right now you wish you could just go home and get paid for hibernating under the covers like the majority of the population has done. I wish you and your tech a quick recovery.

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8 hours ago, JimO said:

As if getting Covid is not enough you also have to try your best to finish all of the “in progress” jobs and contend with being down for an unknown amount of time. Running a small business has it’s rewards but I bet right now you wish you could just go home and get paid for hibernating under the covers like the majority of the population has done. I wish you and your tech a quick recovery.

I know what you mean, and I get it.  Shop owners, techs and other auto-related employees in our industry have always been on the front lines. We come to work in the middle of a snow storm, go to work when we feel sick, and try to drum up work when it seems impossible during an economic downturn. We work in conditions that makes us cold in the winter and hot in the summer. For once, it would be nice to hide and get paid for it.  It's just not us. But, I get it.

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13 hours ago, Joe Marconi said:

I know what you mean, and I get it.  Shop owners, techs and other auto-related employees in our industry have always been on the front lines. We come to work in the middle of a snow storm, go to work when we feel sick, and try to drum up work when it seems impossible during an economic downturn. We work in conditions that makes us cold in the winter and hot in the summer. For once, it would be nice to hide and get paid for it.  It's just not us. But, I get it.

Joe managed to capture an accurate description of our lives in a few sentences. I bet everyone read his words and thought “Wow...that’s me....that’s my life”. Given that should we really wonder why our trade struggles to find qualified employees? 

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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