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[Podcast] What Worked – What Didn’t – Success Has Its Ups and Downs [RR 500]

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I want to thank the thousands of listeners who make our purpose meaningful. We do it for you. To the sponsors of the podcasts over the years. THANK YOU.

Guests for the 500th Episode

Amy Mattinat is the owner and manager of Auto Craftsmen in Montpelier, VT. Her shop is an ASE Blue Seal Shop, AAA approved and she is a member of ASA, SBN & WiAC. Along with running her independent repair shop, she is able to combine her three passions: teaching small business owners how to run a successful business, teaching car care and safety to the general public and educating young people about the many career opportunities available in the auto care industry.

Amy was awarded the 2012 Top Female Shop Owner of the Year by the Car Care Council Women’s Board, Honored as a 2014 Professional Woman of the Year by the National Association of Professional Women, Awarded the 2015 U.S. Small Business Administration’s Vermont Women-Owned Business of the Year, Awarded the 2016 AAA Business of the Year in Vermont and served as President of Women in Auto Care 2014 through 2016. Listen to Amy’s previous episodes HERE.

Judy Zimmerman Walter is co-owner with her uncles and the CFO of, this 57-year young service business. Zimmerman’s Automotive, Mechanicsburg, PA is a true blue ‘family enterprise’ with 12 out of a team of 29 team members that are ‘IN THE FAMILY’. Zimmerman’s is a top automotive repair facility along with a quick lube and a used car division.

Among her involvement: Women’s Board of the Car Care Council, AASP-PA Alliance of Automotive Service Providers, and the Auto Care Association. Listen to Judy’s other episodes HERE.

Jerry Kezhaya from The Auto Shop in Plano Texas has been in business since 1981. Plano is a northern suburb of Dallas with a population of 280,000. According to Jerry, it is the top growing county in the US. His 35,000 sq ft shop has 21 lifts with two flats per lift.

Jerry is a business coach and prides himself for getting out of the shop between 80 and 120 days a year to work with clients, attends seminars and enjoys wine. Listen to Jerry's previous episodes HERE.

Brett Beachler, is Vice President of Beachlers Vehicle Care and Repair, Peoria, IL. Brett has been in the automotive industry for 30+ years and is third generation family. He started in the family business at about age 13 maintaining the business property.

Brett graduated from Bradley University with a bachelor of science in business. He departed the family business to work in the corporate world for four years. His Dad, Terry, asked Brett to re-join the family business. Since that time, Brett has not looked back and has enjoyed almost every minute of his time in the family business. Listen to Brett’s previous episodes HERE.

Kirk Richardson is a young and successful entrepreneur. Born into a blue-collar, hard-working family, he was a below-average student in high school and college. At the age of 22, he left school and started his first business. He bought his first three-bay shop at the age of 24. Seven years later he bought his second shop, South Street Auto Care in Rochester, MI.

Richardson really prides himself on his ability to create a family culture within his businesses. The culture is a blend of hard work, accountability, fun, and hi-jinx, which combine to make loyal and dedicated coworkers. Kirk loves business and people in general and will talk for hours about business! Listen to Kirk’s previous episodes HERE.

Dwayne Myers With Dynamic Automotive, This MSO group was selected top 10 automotive shop in 2014 from Motor Age and has just opened their 4th shop. Dwayne invests time in the industry with the Auto Care Association and serving on the education committee with CCPN (Car Care Professional Network). Dwayne was recently honored as one of only 17 outstanding individuals that qualified for the prestigious 2017 World Class Technician Award presented by The Auto Care Association and ASE.

Dwayne was on episode 2, 3 and 4 with his partners Jose Bueso and Lee Forman and A Round Table on Technician Training in Episode 59, and on a Supplier Needs Roundtable (118). Listen to episode 222 with Dwyane as we talk about his 2017 World Class Technician honor and more. Listen to Dwyane's other episodes HERE.

Key Talking points:

What worked well in the last five years:

  • Amy MattinatUndercoating. A job given to her tire person and to supplement during the slow times. She uses Corrosion Free Undercoating out of CanadaRe-done every 18 months accounts for retention
  • Kirk Richardson100% profit-sharing plan based on the power of the collective team
  • One direction, one team  
  • He was always wired to be a business person, yet stood at his counter and did everything when he started 15 years ago
  • Profit-sharing is the best way to grow technicians
  • Judy Zimmerman WalterStarted morning meetings to best understand her team’s needs and to develop and compliment the team
  • Jerry KezhayaBeen an absentee owner for sometime
  • You have to inspect what we expect
  • As owners, we get what we earn
  • Dwayne MyersGoal Map ReviewsWhere do our people want to be? Their Goals for the next 3, 4 and 5 years
  • This has changed their company more in the last five years than anything they did
  • Stop looking at your people leaving and think about how they will stay with you
  • Invest in your people while you have them
  • Brett BeachlerAdvisor pay system he created
  • He measures many KPIs and they get a bonus production
  • He is legal for wage and hour by using Mike Davidson's spreadsheet as a guide. See this episode RR 4466 https://remarkableresults.biz/e466/
  • Owners get paid on net profitability so he has a similar plan for his people
  • He wants to take more time off but he has to have better systems and procedures
  • His program works on a percentage of sales but would like to convert to a gross margin incentive if he can get the right GP from his SMS

What did not work for me and what I learned:

  • AmyShe almost sold her business and backed out. She felt her business was going to become a ‘McDonalds’
  • She wants a win-win for staff and customers when she does
  • She realized she has a five-year window ahead of her
  • Kirk RichardsonHe was always a business person but sucked at it early on
  • Developing leadership, grooming, and choosing is painfulYou have to be worth following yourself
  • It is a perpetual process, it never ends
  • Understand that there is always lapses in judgment that you learn from
  • Being a leader can be a lonely place
  • Most discussions on this episode failure issues were mostly the people of the soft side of our business
  • Judy Zimmerman WalterTo lead her team she wants her people to know that:Judy worked in the quick lube and did a lot of light-duty work at the shop
  • She assumes that here people know that she has paid her dues. She has been there and done that
  • Dwayne MyersEarly in his career, he went into protection mode and he held onto it for too long
  • They had not grown in 10 years and he and his partners were holding their team back. It was fear and stubbornness
  • He realized that grow was what he needed to survive
  • Brett BeachlerHe regrets his priorities as it relates to supporting his wife or the business when she had a life-changing accident
  • He put the business ahead of his wife and that was a critical mistake
  • Jerry KezhayaDid not fire fast enough
  • Did not listen to his gut or intuition
  • He got stuck in the buzz that there is no one to hire
  • He needs to think of his business like a sports team who is working to get to the Superbowl. Always need to evaluate the talent to take you there

Resources:

  • Thanks to Amy Mattinat, Judy Zimmerman Walter, Jerry Kezhaya, Brett Beachler, Kirk Richardson, and Dwyane Myers 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.
  • The Queen's Code by Alison A. Armstrong
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.
  • Love what we do, buy a cup of coffee HERE.

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Buy Carm a Cup of Coffee 

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. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com

Click to go to the Podcast on Remarkable Results Radio

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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