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[Podcast] RR 438: My New Shop – From the Ground Up – Doug Callaghan


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Doug Callaghan, CEO of Vic’s Service Centre in Wainright, Alberta Canada is the winner of the 2016 Auto Care

Original 3 Bay

Association ACE (Automotive Career and Education) award.  Doug shares his story of transformation, recognized by Auto Care, that earned him this recognition.

Doug made a significant decision in early 2015 when he took how his business was operating and threw it all in the garbage. He started from scratch. Everything. He says, “a lot of owners that ask for the help and invest in the outside training yet fail to provide the leadership to make those ideas and plans become reality, I was not going to let that happen. I wanted to see an increase in our net profit and a better life for myself and my team”. He continues that commitment today. Doug has experience working with disaster plans with the Credit Union Board that he chairs. Find other episodes that feature Doug HERE.

Doug-Callaghan-Business-New-Build-1-001.

Original shop surrounded by the new building

Doug made a significant investment of $1,000,000 in his business with a new building. He shares his story.

Key Talking Points:

  • 20-year mortgage- make dream work within the budget, developed building from budget
  • Builders involved with the budget- saved on architecture costs by having specs already done
  • Used money saved for better insulation- original shop 3000 square feet, now 10,000 square feet and heating bill only increased $100/month
  • Built around the existing building
  • Customer retention during the build and demolition- used social media, advertisements, construction updates to let customers know they were still open for business
  • A great relationship with the bank- has worked with the same person for many years, The banker wanted to see the business succeed with building a new facility
  • New features- air conditioning, wired and
    Doug-Callaghan-Business-New-Build-2-001-

    Lobby in the new shop

    wireless in each bay, customer wireless, air exchange system in bays, bay doors are clear for natural light

  • $50,000 incidental expenses (signage, service counter, waiting area etc)- an opportunity for suppliers to partner with the business. Agreement with NAPA
  • Employees had a lot of input with a new facility- which bays they wanted, how it’s set up, manage the location of equipment
  • Training room- an important part of the construction
  • Grand reopening- great feedback from customers, more new customers
    • New import vehicles to service- correlation with a new clean building
  • Best advice- find people that believe in you and share your vision, don’t be afraid of making a move

Resources:

  • Thanks to Doug Callaghan for his contribution to the aftermarket’s premier podcast.

    Doug-Callaghan-Business-New-Build-3-001-

    Street view

  • 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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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion AAPEX_logo_CMYK_with_tagline-1440x621.jpglobal 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. 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 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo in Las Vegas. More than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals from 135 countries are projected to be in Las Vegas during AAPEX 2019. For information, visit aapexshow.com

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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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