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[Podcast] Hiring a Business Coach [RR 596]


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Rick Williams got into the industry because of the passion he have for cars. He enjoyed modifying and racing. To this day he appreciate anything measured in horsepower. He graduated from Universal Technical Institute’s automotive technology program in 2002. After graduation, He co-founded an import race shop that was unfortunately only in business for just 4 short years.

Rick went on to work for a large and dealer group at one of their Honda dealerships here in Cincinnati. He completed Honda’s factory training program and became a Honda factory trained master technician. A couple years later he had the opportunity to become a service advisor and wrote service at the same dealership for about 5 years or so until he was moved to one of their Chrysler Jeep Dodge and Ram stores where he was a service manager for a year and a half.

He started RIX Automotive out of the detached garage here at home with 1 lift on January 2nd 2019 while also watching his kids during the daytime. He did about 70k in sales that year, part time. June 2020 he moved into a shop space. He rehabbed the space cosmetically and to allow for automotive service/repair. He have since acquired two part time master technicians. Since the move, the shop is doing what it used to do in a month in about a week.

Bill Haas, AAM, is the owner of Haas performance consulting LLC, with 40 years of experience in the automotive service and repair industry. Clients have access to Bill’s solution-based focus, expertise, unique perspectives and in-depth knowledge of the industry.

Bill began his career working part-time at a full-service gasoline station in Appleton, Wisconsin. His career includes time as a technician, shop owner, technical trainer and on the staff of the automotive industry’s oldest and largest association representing automotive service and collision repair businesses. While at the association Bill had the opportunity to work with all segments of the industry.

His knowledge of the industry has been shared on many occasions as he has been invited to speak at numerous industry events as well as providing testimony at hearings of the US Congress and several state legislatures on important legislation and regulation affecting the automotive industry.

Bill received the Accredited Automotive Manager (AAM) credential from the automotive management institute in 1996 and has been a member of the automotive management institute’s faculty since 2002.

Bill is also the business manager for NACAT, the North American Council of Automotive Teachers. His services include business management seminar development and delivery, keynote presentations, business consulting, performance coaching, and strategic planning facilitation. Listen to Bill’s previous episodes HERE.

Bob Greenwood, AMAM (Accredited Master Automotive Manager) is President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada at Georgian College located in Barrie Ontario Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in North Richland Hills, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation.

Bob has over 40 years of Business Management experience within the Independent sector of the automotive aftermarket industry in North America, consulting Independent retail shops on all facets of their business operations. His 18 years of running his own local consulting and accounting firm in Ottawa, Ontario Canada created some of the most productive and financially successful entrepreneurs within the Independent sector today.

Bob is one of 150 Worldwide AMI approved instructors. He has created Business Management development courses for aftermarket shop employers/managers, Jobbers and Jobber Sales representatives which are recognized as being the most comprehensive, industry-specific courses of their kind in North America. His courses address the creation of measurable bottom-line profitability and not just developing activity to keep busy, by covering the very detailed nuts and bolts issues that are required to be clearly understood by every level of the industry if an independent shop is going to financially prosper and enjoy a professional future. Bob’s previous episodes are HERE.

Link to Automotive Aftermarket E-Learning Centre Ltd. (AAEC) HERE.

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE.

Key Talking Points:

  •  Bob Greenwood
  • Setting foundation of business- internal processes and procedures
  • Look at numbers to see what direction where to go- math doesn’t lie, measure components of business, have right price for competency 
  • Internal business culture- continuously learn and build upon knowledge, average technician receives minimum 100 hours of basic training  
  • Averages shop is missing $25-30k net profit per bay per year out of current business 
  • Focus on productivity- which is knowledge based internally  
  • Calculate net profit on repair order before you close it off- focus on net profit than sales and gross profit and activity .
  • Average shop is understaffed by 3 people- bays, front counter and back office
  • David Justice
  • Building systems, operations and procedures 
  • Understanding data- where you are and where you need to go
  • Business flow chart- manager sheet (goals each month, sales, gross profit), daily tracker (average estimates and car count), and labor management (productivity, efficiency, effective labor rates, labor hours per car)
  • Working on business than in it
  • Perception of business- reviews, community, website, experience for customers 
  • Labor management- where you make net profit 
  • Gamification- getting everyone involved  
  • Bill Haas
  • What do you want to change that you haven’t done yet? Buried in day to day tasks- has two part timers, still looking for full time employees. 
  • Use data to push emotions out of equation  
  • Small incremental change over time will get you the results you want- 2 to 3 year journey

Resources:

  • Thanks to Rick Williams, Bill Haas, Bob Greenwood, and David Justice for their contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Find every podcast episode HERE.
  • Every episode segmented by Series HERE.
  • Key Word Search HERE.

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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever.

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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/carm

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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