Where the Money Goes – The $100 Lesson [THA 210]

[carmcapriotto]

 

Patrick McHugh always tinkered with ‘stuff’. His dad bought an ’85 BMW. They learned all about that car together. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the CAR.

At 15 years old he started working in an airport, doing odd jobs, to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license

Patrick attended Purdue University where he studied aeronautical technology. He kept flying and earned his instrument license and became an instructor. He loves to teach.

As fate would have it, he became a pilot upon college graduation from Trans State Airlines a regional carrier for United. He was based in Richmond Virginia. With normal pilot downtime, he continued to tinker with BMW’s.

He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home. There were too many cars in the driveway, so he had to decide to stop or go into business.

Bimmer Rescue was created in 2008 in Richmond Virginia and generates a big portion of its business through referrals. They earn their business through their professional service and attention given to each customer.

Patrick’s goal is to develop a relationship with BMW, Mini, Audi, and Volkswagen owners that allows them to get the maximum amount of value from their vehicle rather than buying a new one. Listen to Patrick’s previous episodes HERE.

Key Talking Points

• What drove you to do this?Covid has created some tough times at our shop
• Being transparent
• Where does the money go when a customer pays
• Showed his employees where the money goes, some were shocked
• Concerned that his employees had a ‘gold mine’
• Is there a prerequisite to do this exerciseYour books have to be legit
• You gotta have Quickbooks or other accounting software
• Can’t inflate your numbers or cooking your books
• You want to use accurate good data or it won’t work
• Profitability for DummiesOnce I dived into my numbers and understand each one, it’s changed my business and changed my life
• Most people are not super great with money
• Profit and Loss StatementEach envelope is a cost on where expenses go on $100 repair billParts Cost
• Labor
• Owners Pay
• Marketing
• Sales & Support Costs
• Other Expenses
• Rent
• GM and Sales Support
• Credit Card fees
• Training & Professional Development
• Insurance
• Customer Transportation
• Sublet
• Utilities
• Net Profit means to me…Security
• Livelihood
• Growth
• Disaster
• Salary Increases
• New Equipment
• Safety
• Do this exercise once a year
• Respecting the return on sales numbers.

Download slides used in the presentation. Click Here.

 

Resources:

• A special thanks to Patrick McHugh for his contribution to the aftermarket.
• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

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