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[Podcast] RR 467: Servando Orozco on Franchising


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Servando Orozco is CEO and founder of Orozco’s Auto Service. It is a four-store operation based out of Long Beach, CA.  He also founded Orozcos Franchise, he is a public speaker, he is an Author of Orozco’s Nuts and bolts, he is a consultant and personal coach for auto repair shops. Servando is an Experienced Owner with a demonstrated history of working in the automotive industry. He is a strong business development professional. 

Franchising is nothing new to business or even in the aftermarket. However listening to Servando explain his passion to franchise his business model, may just provide you a new insight on succession planning.

Key Talking Points:

  • Learn how and why Servando Orozcos created a certified Franchise in California
  • Franchising Disclosure Document- public document includes how the business runs, payment, expectations, royalties, marketing, regulations
  • Franchisee’s need assistance, guidance, support, operations
  • Each service operation has these basic personalities: Sales, Technicians and Who Runs the Show
    • You can’t do all three
  • Franchise owners can work on the future because the systems, marketing, processes and disciplines are already defined
  • 5 commitments: Profit, Production, Average Repair Order, Car Count, Happy Customers
  • He is looking for people who have a great attitude, aptitude, ethics and are willing to be coached
  • He believes marketing a shop is one of the most critical jobs that need to be done. He will help his franchisee’s with their marketing
  • Marketing franchise business- focus on helping people become business owners (technicians, service advisors, managers) and existing store owners that want a buyout
  • The franchise is a template for business- sharing systems, educating about business numbers
  • NAPA is supporting his Franchisee’s at becoming an AutoCare
  • This model may help shop owners with their succession plan
  • Looking for people with the same values and culture- franchise success is Servando’s success
  • The franchisee must be involved with the community (3% giving back)
  • The goal is to open 10 locations

Orozco’s Service Website

Talk soon,

 

 

 

Resources:

  • Thanks to Servando Orozco for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

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The NAPA Smart Sign, previously known as Digital Menu Board, gives your shop a professional, state-of-the-art look and feel. It’s a great way to educate and inform your customers about needed repairs and service, plus increase awareness of your current promotions. NAPA AutoCare NAPA-AutoCare-Logo-Vert-A.gifCenter that have installed a Digital Menu Board found one out of five consumers ask for a repair or service they’ve seen on the board. Targeted promotions resulted in double-digit increases. You choose the content from a library of auto care service and repair topics. The latest NAPA national promotions are downloaded to you automatically. And with the Digital Menu Board it’s easy to change your services, prices, and video content anytime you’d like. Talk to your servicing NAPA store to find out more.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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