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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.

Click to go to the Podcast on Remarkable Results Radio

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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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