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Posted

Please post your shop's monthly average car counts.

 

Please include:

 

Average monthly count: 180

How many bays: 3

Hours of operation: M-F 8-5 Sat 8-12

  • 2 weeks later...
Posted

Monthly Car counts: 1

Bays: 1

Hours of operation: most weekends some weekdays

Number of employees 1/2 + 1/4

 

this is some slight humor. Good to see what you guys are putting through the doors

Posted
Monthly Car counts: 1

Bays: 1

Hours of operation: most weekends some weekdays

Number of employees 1/2 + 1/4

 

this is some slight humor. Good to see what you guys are putting through the doors

 

 

That was a good one.... :lol:

Posted

4 Bays - average 210 cars monthly

Mon - Fri 7:30-5:30

Every other Sat 8:00 - 2:00

  • 3 weeks later...
Posted (edited)

2 bays + alignment bay

167 cars monthly

1 "A" tech

1 "C" tech

 

M-F 8-5

 

Send me cars!!!

Edited by davidlee
  • 1 month later...
Posted
2 bays + alignment bay

167 cars monthly

1 "A" tech

1 "C" tech

 

M-F 8-5

 

Send me cars!!!

 

Hey Davidlee, how many cars keep syour guys busy and productive? Did you ever think about Saturdays to increase car count? I always ask this of shops that are open M-F only. B) Just curious.

  • 4 months later...
Posted
Are sales for 2009 better, worse or the same as 2008?

 

Have you ever openned up Saturdays? Would you consider it to increase sales?

 

Sales are up 7% over 2008, not great but a nice increase

 

We have never opened on Saturdays and I would never consider it unless I was facing going out of business.

I opened a shop to avoid all the Saturdays that I had to work at a dealership. I wont go back down that road again. Plus I enjoy the outdoors and my family and most of the time 2 days does not seem like enough!!!!

  • 1 month later...
Posted

3 locations-----

 

#1 - Service and Tire sales (new location so I only have October's numbers)

 

Monthly count: 75 (Oct. 09)

How many bays: 4

Hours of operation: M-F 7:30-5:30

1 A Tech

1 Tire tech

 

#2 - Tires Only

 

Monthly Count: 750 (give or take)

2 Bays

8-7M-F, 8-5 Sa

3 Tire Techs

 

#3 - Tires Only

 

Monthly Count: 450 (give or take)

4 Bays

8-7M-F, 8-2 Sa

3 tire Techs

 

Keep in mind that 75% of our tire sales are used tires and we are doing only tires at #2 and #3. Hence the fast turnaround and the high counts.

Posted
With the recession and chinese embargo are you having a hard time coming up with enough used tires? The guys around here just about kill to get a hold of 14" and 15".

 

 

Well, we operate a little differently than most used tires shops. Most of them will get their tires from salvage yards or they pay new tire dealers for their usable take-offs. The larger shops sometimes buy their tires in bulk wholesale loads.

 

We go the wholesale load route but we do it a little differently than most. I am partnered with 7 shops throughout South Louisiana and we pool our resources to purchase bulk loads. We have a processing facility where we sort, clean, test, repair, and distribute according to each shop's inventory. The advantage of this is we are able to have a steady supply of limited quantity, fast-moving sizes (14", 15", some 16" cars). A single shop would have to sell roughly 55% of a bulk load to break even on it and, once they do, all of the good selling sizes are already gone leaving only slower moving tires. We avoid that by spreading that slow moving stuff out amongst the partners so we are able to keep those highly desired sizes (195/70/14. 235/75/15, 215/70/15, 225/60/16, etc.) on hand much more than our competitors.

 

With the implementation of the Chinese tire embargo, we have actually seen an increase in business as more people are bargain hunting. Supply has not been an issue and we don't expect it to be.

Posted
Your # 1 location is a different business model?

 

Well, it is currently being run a dual business model. I took the former owner's service model and put in my tire sales model and haven't really done too much to combine the two yet. To be honest, I am not a mechanic and have taken the cautious route with the management of the service side. I am learning every day with the help of a great manager that I hired but I am still a little weak on the overall model plan.

 

I am currently viewing the operation as a generic business, looking at overall gross profit margin rather than productivity, parts margin, etc. I do intend to use more traditional metrics as soon as I find out what the hell they are and what they mean!!!! That is why I am here. I will have questions to this effect shortly.

Posted
Joe it is a totally different market in the deep south. I have only been to northern LA but I once did contracting work in Jackson, MS. It was totally different. A lot of vehicles there would probably not be allowed on the road in NY. Because the weather is warm snow and ice is not an issue and people tend to get by with tires that would get you in toruble in the north.

 

 

It is true. In fact, we buy our used tires from the Northeast. You wouldn't believe what people come in on all the time. It is a very good market for used tires.

Posted
I never considered the use tire market. Do you have major tire stores in the area? Firestone? Goodyear? PepBoys? Etc?

 

 

Both of my tire-only stores have 3-4 major chain stores with 5 miles of them. In fact, they are a major source of new customer leads. Many of them give out our cards to customers who can't afford or aren't willing to pay new tire prices.

 

It is really a different business and their is some liability risk. In fact, the last issue of Tire Business had an short section from the SEMA show discussing dealerships selling used tires. Many of the dealership owners agree that if it is done right, there is a tremendous upside. As long as you have a good quality control system to screen tires, the risk is relatively low in my opinion.

 

What do you do with your take-offs that are potentially reusable Joe?

Posted
All tires are sent back to my supplier. I don't know what they do with them. My tire supplier is a major wholesaler tire distibutor for new tires in my area.

 

Year ago in the 70's, (when I started in this business) I worked in a gas station in the Bronx, NY. We did save used tires that were later sold. But, since I opened my business in 1980, I have always sold new.

 

 

So your new tire supplier actually picks up every tire junk tire that you have? I've never heard of that. Is that common practice?

 

Here in Louisiana, every tire sale must have a $2 disposal fee attached to it. We pay the state monthly and we must use a state designated tire recycling company to haul off the junk tires. We get audited yearly and you darn well better have proof showing that you paid for the number that you disposed of or more. In my case, I pay for about 20% more in disposal fees than than actual tires that I dispose of. This is mostly because many of the tires that I remove on new tire sales are able to be resold so they don't get disposed.

Posted
Of all the business I can think of, an illegal used tire business is not one of them.

 

 

It wouldn't surprise me one bit if this is more widespread than just this one guy. I know for a fact that some of guys on the collection trucks "lose" some here and there. That is one thing, but defrauding a state governing body? Not smart.

  • 3 weeks later...

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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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