7 Tax Prep Tips for New Shop Owners

Transmission Repair · 2024-02-01T18:18:19+0000

Another great article from Ratchet & Wrench magazine... https://www.ratchetandwrench.com/running-a-shop/finance/article/33019164/7-tax-prep-tips-for-new-shop-owners

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The Technician Shortage Is Our Fault, And It's Time We Own It

By Joe Marconi in Joe's Blog
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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.

Similar Topics

Building Great Teams with J.R. Portman [E161] - The Auto Repair Marketing Podcast
By carmcapriotto

Thanks to our Partners, Shop Boss and AppFueled
Thanks to our Partners, Shop Boss and AppFueled
This episode is sponsored by Shop Boss. You know, other shop management software makes you work, but Shop Boss works for you.
AppFueled at appfueled.com. “Are you ready to convert clients to members? AppFueled™ specializes in creating custom apps tailored specifically for auto repair businesses. Build your first app like a pro.”
Aftermarket Radio Network
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim
Walker Work with Shop Owners to Take it to the Next Level.
Auto Repair Marketing Podcast | SHOW NOTES
Guest Names: (this is the master doc for the spelling of names)
J.R. Portman
We all want great teams, but most shop owners don’t realize that a high-performing team doesn’t start with talent; it starts with culture. In this episode, I sit down with my right-hand man, J.R. Portman, and we unpack the real story behind building and keeping a team that not only performs but thrives.
JR’s been instrumental in shaping the culture here at Shop Marketing Pros, and together we walk through what it takes to build a team from scratch, the brutal cost of hanging on to the wrong people, and how to create an environment where your team steps up even when you’re on vacation.
We’ll get into hiring for character vs. capability, how tools like EOS and DISC can transform your business, what “core values” actually mean in the real world, and the moment when your team starts running the business better than you do.
This isn’t fluff. It’s real talk about what culture is, what happens when you get it wrong, and how it feels when you finally get it right.
This episode is sponsored by Shop Boss, manage and grow your shop with top features like integrated payments from 360 payments.

Are you ready to convert clients to members? AppFueled specializes in creating custom apps tailored specifically for auto repair businesses. Build client loyalty. Get started today with your own customer loyalty app. Visit Appfueled.com

Lagniappe (Books, Links, Other Podcasts, etc)
EOS (Entrepreneurial Operating System)
Shop Marketing Pros - Core Values
The Five Dysfunctions of a Team Book
DISC Assessments

Show Notes with Timestamps

How To Get In Touch
Join The Auto Repair Marketing Mastermind Group on Facebook
Meet The Pros
Follow SMP on Facebook
Follow SMP on Instagram
Get The Ultimate Guide to Auto Repair Shop Marketing Book
Email Us Podcast Questions or Topics

Outro
Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, and many others
Tune in for another episode next week. Until then, go fill those bays!
Click to go to the Podcast on Remarkable Results Radio
Bonus Episode - The Mechanics Behind Developing Great Software With the Team from Shop-Ware
By Changing The Industry

Bonus Episode - The Mechanics Behind Developing Great Software With the Team from Shop-Ware
Making Great First Impressions [E137] - The Auto Repair Marketing Podcast
By carmcapriotto

Thank you to our friends at RepairPal for providing you this episode. RepairPal’s Certified
Network of shops are trusted by millions of customers each month. Learn more at
RepairPal.com/shops
Are you ready to convert clients to members? App fueled specializes in creating custom apps tailored specifically for auto repair businesses. Build client loyalty. Get started today with your own customer loyalty app. Visit Appfueled.com
Are your customers getting the right first impression of your shop? In this episode, Brian and Kim Walker explore how to make every touchpoint count, from your website and Google Business Profile to your waiting area and phone calls.
With personal stories and practical tips, they’ll guide you through the customer journey, sharing ways to improve everything from cleanliness to communication. You’ll even hear about Kim’s checklist for first impressions and why small details—like a fresh-smelling lobby or updated photos—make a big impact.
Get ready to see your shop through fresh eyes and take steps to leave a lasting impression. Tune in now!
Thank you to our friends at RepairPal for providing you this episode. RepairPal will help you
grow your auto business and you can learn more at RepairPal.com/shops.
Are you ready to convert clients to members? App fueled specializes in creating custom apps tailored specifically for auto repair businesses. Build client loyalty. Get started today with your own customer loyalty app. Visit Appfueled.com
Lagniappe (Books, Links, Other Podcasts, etc)
https://www.autoops.com/ - Online Scheduling for Auto Shops
https://shopmarketingpros.com/ep-131-branding-your-shop-as-a-concierge-auto-repair-shop/ - Branding Your Shop As A Concierge Auto Repair Shop
https://shopmarketingpros.com/ep-108-part-4-a-service-advisors-take-on-customer-retention-with-michael-doherty/ - Part 4 – A Service Advisor’s Take on Customer Retention with Michael Doherty
https://remarkable.com/ - Remarkable notebook
Show Notes with Time Stamps
Introduction to the Podcast (00:00:01) The podcast episode begins with an introduction to the Auto Repair Marketing Podcast. Welcome and Topic Introduction (00:00:10) Brian Walker welcomes listeners and introduces the topic of making great first impressions in auto repair. Secret Shopper Concept (00:01:03) Kim discusses the idea of offering secret shopper services to evaluate first impressions in auto repair shops. Frog in Boiling Water Analogy (00:01:20) Brian uses an analogy about a frog in boiling water to illustrate how business owners can overlook issues. Personal Experience with Shop Cleanliness (00:02:26) Kim shares a personal story about noticing cleanliness issues in her shop after sitting on the floor. Origin of the Episode's Topic (00:03:13) Kim explains that the episode's topic originated from a class she taught about hosting events in auto repair shops. Creating a First Impression Checklist (00:04:08) Kim mentions her intention to create a first impression checklist based on customer journey insights. Importance of Online Presence (00:04:51) Discussion shifts to how potential customers first experience a business online, including websites and Google profiles. The Grunt Test (00:06:39) Brian explains the "grunt test," where a stranger should easily understand what a website is about. Evaluating Website Impressions (00:08:04) Kim emphasizes the importance of assessing what feelings a website evokes in potential clients. Social Media's Role in First Impressions (00:10:12) The conversation covers how social media contributes to first impressions and customer perceptions. Content Strategy and Audience Alignment (00:12:08) Brian shares a client's unconventional marketing strategy and the importance of aligning content with audience expectations. Google Business Profile Importance (00:12:59) Kim highlights the significance of maintaining an accurate and complete Google Business Profile for attracting customers. Customer Experience in a Hurry (00:14:01) Kim discusses how potential customers often search for auto repair services quickly, emphasizing the need for accurate information. Improving Waiting Area Appearance (00:15:02) Discusses the importance of updating photos of the waiting area to enhance customer impressions. The Importance of Phone Etiquette (00:15:38) Emphasizes listening to phone calls to ensure service advisors are friendly and professional. First Impressions Over the Phone (00:16:38) Highlights how the tone and manner of answering calls can significantly impact first impressions. Customer Experience During Calls (00:17:18) Explores the importance of a welcoming greeting and attentive service during phone interactions. Listening to Recorded Calls (00:19:22) Encourages shop owners to review recorded calls to improve customer service quality. Customer Experience in Shops (00:21:36) Discusses a personal anecdote about poor customer service and its impact on first impressions. Evaluating Online Scheduling Experience (00:24:26) Stresses the importance of user-friendly online scheduling systems for customer satisfaction. Drive-By Assessment of Shop Appearance (00:26:23) Encourages shop owners to evaluate their business from a customer's perspective for first impressions. Parking Lot and Vehicle Presentation (00:27:27) Discusses the significance of a tidy parking lot and appropriate vehicles for attracting customers. Signage and Branding Consistency (00:29:03) Highlights the importance of maintaining updated and clear signage to reflect the brand accurately. The Story of the Old Shop (00:29:52) Brian shares a humorous anecdote about visiting an old shop and its rundown appearance. The Importance of Cleanliness (00:30:46) Discussion about how exterior cleanliness impacts first impressions in auto repair shops. Creating a Welcoming Atmosphere (00:31:27) Kim emphasizes the significance of the waiting area’s atmosphere and sensory experiences for customers. Sensory Experiences Matter (00:31:47) Exploration of how smell and touch affect customers' perceptions in an auto repair shop. Comparing Experiences (00:34:29) Kim discusses how customers compare their experiences to other businesses like Chick-fil-A. Details Matter (00:35:28) Highlighting the importance of small details in creating a positive customer experience. Creating a Family-Friendly Environment (00:36:55) Discussion on accommodating families and making kids feel welcome in the shop. Comfort in the Waiting Area (00:38:39) Brian stresses the need for comfortable seating and a welcoming environment for customers. Responsibility for Cleanliness (00:39:23) Discussion on who is responsible for maintaining cleanliness in the shop. Bathroom Cleanliness (00:40:20) A personal story about the poor state of a customer-facing bathroom and its impact. Thoughtful Amenities (00:41:24) Kim talks about providing thoughtful amenities for female customers in the bathroom. Impression of Cleanliness (00:43:19) Discussion on the importance of maintaining high standards of cleanliness in customer-facing areas. Shop Area Cleanliness (00:44:11) Importance of maintaining a bright, clean, and organized shop environment for clients and staff. Efficient Shop Layout (00:45:02) Discusses the necessity of an efficient layout to enhance workflow and client experience. Client Interaction (00:46:05) Emphasizes tailoring conversations with clients based on their vehicle ownership goals. Permission for Inspections (00:47:58) Importance of asking for permission to perform inspections to enhance client trust and experience. Client Follow-Up (00:48:59) Discusses the significance of following up with clients post-service to ensure satisfaction. Team Appearance (00:49:48) Highlights how professional attire of staff can impact first impressions on clients. Importance of First Impressions (00:50:45) Stresses that consistent positive impressions lead to long-term client relationships and referrals. Final Thoughts and Checklist (00:50:46) Introduction of a PDF checklist for staff to enhance awareness of shop cleanliness and organization.
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Click to go to the Podcast on Remarkable Results Radio
What's the Best Way to Get Great Online Reviews?
By Joe Marconi

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Value of the Ratchet and Wrench Management Conference
By bantar

I attended my first ever industry management conference. What a great experience.   If you've never gone, I would encourage you to add it to your do-now bucket list. There was a lot of open and detailed sharing.   For example, in a work session talking about bay efficiency analysis, they used real numbers from the audience.    Monthly Overhead, Gross Profit Percentage, desired bottom line profit.   It showed multiple paths to success that were immediately relatable.
None of the presentations were about perfection. As a matter of fact, most presenters shared information about how they did things stating that this may or may not apply to your situation. No one told you what to do, but rather offer tools for analyzing your own situation.   None of the presenters were making sales pitches.
In other sessions, real shop owners share tips and techniques on a number of topics that we see here.    Being a live event, these were more dynamic conversations.
I've returned from the conference with a renewed sense of urgency analyzing my numbers to see where we had success and where we need to improve.   I do expect to make real changes, but don't yet know exactly what changes I'm going to make.   Got to crunch some numbers first.
I signed up for the conference when it was first published, but sat on the CC screen for a while debating the value of this conference. Should I go, or should I stay?   I reluctantly pushed the GO button.   However, looking back, I should have enthusiastically smashed that GO button!
The next one is in Denver.   I recommend that you consider attending.

A side benefit is that I got to meet Joe Marconi and in a session that we jointly attended, I overheard Joe say that he was mentored by Jerry Holcom. Later in the conference, I had the pleasure of talking with Jerry as well. In the many networking sessions, we met many different shop owners and had great conversations.

--brian