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[Podcast] RR 409: AJ Nealey: Living the Dream. Turned His Vision Into His Reality. No, is Hard To Say for AJ!


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AJ Nealey got the mechanical bug at a young age playing with Legos. The bug quickly escalated to wrenching on his own car in high school, to his first full-time job as a technician and also to a racing career.

He started Nealey Auto Service, Edgewater, MD, out of his one bay garage in 2011 after his racing career came to an end. After he married his wife, Stephanie, in 2014. AJ and Stephanie decided to focus all energy and resources to grow Nealey Auto Service. It all started with taking RLO Training’s Guerilla Shop Management course. Since then, they have grown to a 9 bay facility with 8 employees and have increased sales a total of 1172% since then.

Key Talking Points:

  • Passion for cars
    • Always had a passion for cars since got a license to drive- wanted to learn how everything worked
    • 2008 wrenched on the side out of house garage
    • 2009-2010 professional race car driver career-learned about marketing during a racing career  
  • Started shop in 2011
    • Scouted and wanted a new location in 2015- had 30 days to put in a bid
    • $900,000 facility from the ground up.
    • Purchased existing location- was a transmission repair shop, built in late 50’s early 60’s
    • Learned buying power isn’t about current credit history/buying power, it’s about what you could make in the future with a business plan and you must surround yourself with the right lawyers, bankers and financial advisors
    • 3 customers invested
    • Wrote a heartfelt letter to the seller
    • Got property but environmental inspection showed contaminated soil and tanks that needed removal- started at 150k to start removal of issues
    • AJ paid for environmental studies
  • Took Guerilla Shop Management (GSM) course with ROL training- a life-changing event for running the business
    • Hired business coach after GSM course
    • 123k in sales in 2014- jumped to 1.441M in 2018
  • Reaching goals
    • A goal setter. Short, Mid Range and Long Term and his BHAG (Big Hairy Audacious Goal)
    • Positive attitude and surround yourself with people you aspire to be- they will hold you accountable
    • Execution- get things done
  • Best book to read
    • The E-Myth- Michael Gerber
    • Traction- Gino Wickman
    • The Ideal Team Player- Patrick Lencioni
  • Reaching goals
    • Positive attitude and surround yourself with people you aspire to be- they will hold you accountable
    • Execution- get things done
  • Best book to read
    • The E-Myth- Michael Gerber
    • Traction – Gino Wickman
    • The Ideal Team Player- Patrick Lencioni

Resources:

  • Thanks to AJ Nealey 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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Click to go to the Podcast on Remarkable Results Radio

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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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