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  • 2 weeks later...
autoguy Rising Star

autoguy

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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:

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  • 1 month later...
autoguy Rising Star

autoguy

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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.

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Jeff Monson Apprentice

Jeff Monson

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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!!!!

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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?

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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Southeast Tire Co. Contributor

Southeast Tire Co.

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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.

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    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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