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[Podcast] The Difference: Dealership Tech Now Works for an Independent. Why? [RR 588]


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Jim Fleischman and his wife Shelly own Automotive Alley in Arcade, NY. Jim attended Alfred State College for Automotive Tech. He went to work for a Ford Dealership as a shop foreman. Jim’s racing and organizational experience came by being part of a race team that ran Busch and NASCAR. He was recruited from his alma mater, Alfred State College, and became an instructor. Jim always wanted to teach and it was fate. He spent fourteen years as an instructor. He loved building relationships with his students.

He was balancing his teaching job and owning a shop while Shelly ran the business for him. Jim ultimately left his teaching job and went to work full-time in the business. Shelly’s background was accounting which was good for the business overall.

Jim believes in a strong process-driven company. He is all about improving efficiency. Saving steps for productivity gains. Anyone can study their inefficiencies and make changes to improve productivity. He templated his systems against NASCAR. Immaculate, organized and tools quickly reached and found. Jim perpetually works on streamlining to increase his productivity.

Automotive Alley also specialized in street rod, hot rods, upgrades, and restorations. For Jim, the word “can’t” is not in his vocabulary. Listen to Jim’s previous episodes HERE.

Matt Manzone graduated from Wyotech trade school in Blairsville, Pa. Shortly after graduation, Matt started at a local Japanese import brand dealership. Eventually becoming Expert level brand certified and achieving ASE certified Master automotive technician status. After 14 years at the dealership, Matt left to take a position at an independent repair shop called Automotive Alley in Arcade, NY as a technician and service writer in the vintage/restoration shop. Listen to Matt’s episodes HERE.

Key Talking Points:

  • Technicians at dealerships vs independent shopsDealerships have a specific type of vehicles and is flat rate- 70% of students from tech schools go directly to work in dealerships
  • Most technicians that leave the dealerships leave the industry completely  
  • Independent shops have a broader spectrum 
  • Hiring more techniciansJim used Facebook Ads and Indeed for hiring 
  • Matt posted his resume on Indeed to see what other opportunities were available- was open-minded and wanted a challenge
  • Matt researched the shop prior to the interview- Facebook posts, reviews, and podcast interview 
  • “Working interview”-Spent half a day interviewing and then worked with other technicians in the shop and with Jim
  • Culture of businessClean, sterile work environment instead of stereotypical “greasy fingerprints”
  • Take time to invest in the environment and properly working equipment   
  • Everyone at Jim’s shop says “goodbye” to one another, something Matt was not used to at first- creates positive attitudes and cohesive culture 
  • Leaving after 14 years for the same but new jobEveryone is afraid of the unknown and what could happen
  • Matt didn’t leave because of money, left because it was time and unhappy with the culture of the dealership- the dealership had a counter offer for him when he put in his 2 week notice which was more money. More money didn't change the issues of why he wanted to leave.
  • Be careful making choices based on money- often times it will not make you happier
  • If you are burned out from your job always remember there are other opportunities available 

Resources:

  • Thanks to Matt Manzone and Jim Fleischman 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.
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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?

         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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