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Are there any AfterMarket Shop Owners in here?


TTP

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On 11/15/2022 at 12:58 PM, TTP said:

Hi,

I was wondering if there are any aftermarket shop owners on this forum? If so please respond to this thread. 

Let me introduce myself, my name is Joe Pazdera, I have been in the aftermarket game since 2005, but I have been self-employed for over 40 years. Currently, I own and run two companies Texas Truck Performance and TTP Coatings. I have found over the years that there is not alot of resources out there for shops like ours. Everything is geared to the normal auto repair shop. Which is like trying to fit a sqare peg in round hole, we just don't fit the mold. We have different obstacles, to overcome that a normal repair shop doesn't.  Like installing a lift, most manufacturers do not give a labor time, you just have to guess. Even if they do its not always correct and you either over bid and lose the job or underbid and lose your profit. So in the days to come I want to explore how other business owners are doing it. I hope you will join me in the quest to make us the best and most profitable we can be. 

First, Auto Shop Owner is primarily comprised of aftermarket auto shop owners from around the world and also companies that support the aftermarket.  

You have a unique business and one that does not fit into the "normal auto repair shop," as you state. With that said, it's important to understand your numbers: your labor costs, material/parts cost, and operating expenses to start with. Then you need to establish your required gross profit on labor and parts in order to pay for your operating expenses.  And of course, you need to have a decent net profit(bottom line)

I don't want to trivialize your business model; I just want to start the conversation. 

I would like to hear from businesses that are similar to yours. I ran a traditional multi-store auto repair shop for 41 years, and now work as a business coach. 

 Great Topic!!! 

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Good Day Joe 

...We are a brake and front end shop.

I know what you are talking about. We don't do lifts for that reason.

We do leveling kits and considered the job as replacing Struts and it's base on the time plus some.

A lift kit leaves a lot of work with out been paid for.. 

I think is more of guess on the amount of work and hours combine. 

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On 11/29/2022 at 11:46 AM, TTP said:

YES! EXACTLY! TY for the reponse.

I usually look at the labor rate, it as a strut replacement in the front along with a front diff R&R. Then in the back shock replacement and the track bar then add an hour or two. 

I personally do not like Rough Country but on their lift description if gives you an estimated install time give or take a couple of hours. My problem is when you sell a high end kit, like BDS, there are several more parts/steps than a cheap entry level kit. So that's where it gets a little tricky to bid, but its a starting point. 

 

I think that the labor side of this is much more important than the part side.  Would you say that labor time can get eaten up fast when you come across a problem? 

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  • 1 month later...

Perhaps have the vendors you use do the legwork for you.  That's an added benefit they can provide you, as a buyer.  I have a vendor that does just that...I can order parts online, see availability, and even check labor guides, interchanges, and fitment.  Because of that, it's my first place to shop.  Really where I get nearly everything, because it is consistent, and they have shown they take us seriously by providing us with tools to help the ordering process.  If I know part prices, associated labor, etc., it means many times I can make a decision on the fly.  We are a mom and pop and do straighforward stuff with some classics thrown in (and the occasional tractor dropped off in the lot).  It also helps in a small shop, if your front-end person is not necessarily a car guy (me).  By providing that info to the desk person, the wrench doesn't have to stop and weigh in on an estimate (increasing bottom line).  Just a thought...the information must be out there...ask and you just might receive, if they can see how it would cement a relationship with you!

Cheers

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1 hour ago, Jodie said:

Perhaps have the vendors you use do the legwork for you.  That's an added benefit they can provide you, as a buyer.  I have a vendor that does just that...I can order parts online, see availability, and even check labor guides, interchanges, and fitment.  Because of that, it's my first place to shop.  Really where I get nearly everything, because it is consistent, and they have shown they take us seriously by providing us with tools to help the ordering process.  If I know part prices, associated labor, etc., it means many times I can make a decision on the fly.  We are a mom and pop and do straighforward stuff with some classics thrown in (and the occasional tractor dropped off in the lot).  It also helps in a small shop, if your front-end person is not necessarily a car guy (me).  By providing that info to the desk person, the wrench doesn't have to stop and weigh in on an estimate (increasing bottom line).  Just a thought...the information must be out there...ask and you just might receive, if they can see how it would cement a relationship with you!

Cheers

There is some truth to what you said, referring to not being a car guy. The best service advisors and front counter people I have hired were not former techs. 

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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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