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Well, I'm in the middle in installing 2 new (made in the USA: Fort Worth, TX) lifts (for a total of 6), and 3 Big Ass Fans (1 12' and 2 smaller spot fans).   All should be turned on Monday after the electricians wrap up.   Our building is not conducive to AC, as it is a wind tunnel with doors on both sides.   Works well in the heat when there is wind, but when it's still, it's terrible.

I think I've turned away enough 1234yf AC jobs already this year that I might hit my magic number of 10 declines later this year.   Next up (spring of '23) is a 1234yf rig, with multiple leak detection upgrades (nitrogen tank, Inficon Stratus leak detector, digital Fieldpiece manifold set).   I've told my MAC tool truck that if he can help me sell my Hunter SmartWeight Touch Tire Balancer, I'd buy his unit immediately.    (My business is not compatible with Tires, so we gladly refer them to the tire stores and generally, they refer folks back to me.   I think this is a GREAT tradeoff. )

I don't have the clearances in my shop to tackle ADAS, so we are turning away ADAS jobs while looking for a reasonable outsourcing solution.

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Posted
10 hours ago, Joe Marconi said:

Question: When you say your business is not compatible with tires, why?  To play devil's advocate; won't tires and related repairs become an important part of our business with the increase in EVs? 

Tires are labor intensive.  Used tires require storage.   This means moving them somewhere, which is more labor. Tire machines require floor space.  I have 6 high volume, low margin tire stores within 3 miles of me.   Tire delivery is slow... today or tomorrow, sometimes requiring shops to go pick them up for faster delivery.   Tires are often a need-it-now.  Failed state inspection and want to pass today.   I have a few friends that have added tires, but it's not been a strong revenue stream.

Using less labor, I can generate more profit in my QL than I would with tires.    We do paid tire rotations, but even this is labor intensive and ties up a lift.  We only do this to be a single stop for routine maintenance.   Luckily, most folks are not regular tire rotating types, or they get it done for free at the high volume tire stores.  I charge more for stand-alone tire rotations as a disincentive.  I don't want to be a tire store, but also, it increases the profit of these slower services, so I grumble less.   Overall, this is more of a pick your battles exercise than an actual distaste of tires.

So, wrapping this up in an EV umbrella....   my revenue streams are not EV and I won't be selling tires to EV's.   I might have to pivot at some time in the future, but for now, EV is not my bag of tea. 

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Posted

We have 3 main revenue streams: 

  1. Quick Lube - Oil Changes, Batteries, Wipers, Brake Fluid, Coolant, Power Steering Fluid, Transmission Fluid, Differentials....   I call this one the farm
  2. (1a as it's tracked as QL) State Inspections - I used to hate these, but it's a high volume, low $ cash cow and brings in lube business too
  3. Repair Shop - Mechanical, Driveability and Electrical Repairs - No body, no glass, no tires, limited transmission repairs (no rebuilds), no more project cars (have 3 sitting here now that need to leave)

Revenue between QL and Repair is about 55%-45% leaning either way.  Some months repair leads and some months QL leads.   While I lump state inspections into my QL profit center, by it's self, it's 10% of my monthly revenue.   With labor and machine costs burdened in, it's runs about 91% GM.   Profit wise, the repair side still owes me more.   We're now doing enough steady work that it will start performing better.   YTD, QL profit has outpaced Repair, but 2 of the 6 months, it was opposite.  Still 45%-55% flip flops.  I'm hoping for repair to steadily out-perform the QL.   What makes this difficult to explain is that QL dominates in volume and it's not fully tapped yet.

The QL allows us to establish a trust relationship with our customers and this helps to feed the repair side.  The real magic is that we are indeed trustworthy and not a badly run QL.  Some of our repair work is farmed routine maintenance, but the bulk is broke cars.

We're still growing both businesses.  Adding the lifts should help us with throughput.  We already use the spaces outside of the bay doors as flat bays... being creative with space.  But the Texas sun won't let you work outside without melting.

--brian

 

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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