Quantcast
Jump to content

general heavy-duty 728x90


general heavy-duty 468x60


general heavy-duty 250x250

Will This Recession Turn Into a Depression?


Recommended Posts


Start LLC for $0 at IncFile


Start LLC for $0 at IncFile


Start LLC for $0 at IncFile

You know, at the start of this year I would have told you that we have turned the corner. But, it seems that those companies that have a good handle on business and provide the very best in customer service will be fine. However, I see the economy taking its toll on a lot of businesses that were weak to begin with. For those, it will be hard to ride the storm. We are not out of the woods yet and will take some time for the economy to recover. It may never be the way it was either. Especially with the current administration.

Link to comment
Share on other sites

I always fear consumer confidence. To me, it's the one indicator that can have the biggest negative impact. Bad news spreads fast and people react more to the perception than actual events.

 

 

Bad news travels fast... that's so true... I sometimes wonder if a lot of people always live in fear and doubt rather than in confidence and working towards the future.

 

One comedian I heard years ago made the joke that all his relatives hid in the cave while the big old dinasour walked by looking for any easy meal... If they didn't hide they were dinner...

 

That could be true... but I think aggresive thinking, working out problems and dealing with the pitfalls is part of business.

"If ya can't stand the heat... get out of the kitchen."

Link to comment
Share on other sites

Bad news travels fast... that's so true... I sometimes wonder if a lot of people always live in fear and doubt rather than in confidence and working towards the future.

 

One comedian I heard years ago made the joke that all his relatives hid in the cave while the big old dinasour walked by looking for any easy meal... If they didn't hide they were dinner...

 

That could be true... but I think aggresive thinking, working out problems and dealing with the pitfalls is part of business.

"If ya can't stand the heat... get out of the kitchen."

 

There is a lot of truth to what you say, but today with all segments of the auto industry...from quick lubes to transmission shops, to muffler shops and new car dealers....wanting of peice of our service pie, it is not getting any easier.

Link to comment
Share on other sites

Sorry to hear that! I know a insurance agent in South Florida who has been cold calling small businesses. He says what he is doing is really tough because almost none of the businesses he is calling on are making any money at this time. Fortunately unemployment where I am at is not that high (about 8%).

 

What type of problems are you having? Car count? Back outs? Competition? etc?

 

 

Jeff, hang in there... I've been 2 minutes away from bankruptcy for 25 years.... LOL But aren't we all....LOL so don't feel bad... it's all in a day.

 

"Like a duck on pond.... graceful on the top side where all can see... and paddlin' like hell underneath it all...." Gonzo

Edited by Gonzo
Link to comment
Share on other sites

Joe I believe it a combination of things. The local unemployment is said to be 12-13%. But a recent paper article figured it closer to 20-20% after taking into account those who fell of the unemployment rolls and were no longer looking for work. We also are very seasonal here with the "snowbirds" coming in late Sept and staying into April. But our illustrious leaders decided to raise taxes on property that was not decalred a pemanent residence there by driving many of them to sell or just not come back. Then when the housing bubble burst a lot of folks just walked away and went back to where they came from. Last year was the first time in Florida history there was a decline in population. I suppose there are a lot of other things but it is mostly unemployment and HIGH taxes.

 

Jeff, I am not going to be one of those guys who will attempt to try to analyze your problem and give you a magic bullet. I have too much respect for you and that would not help matters. After reading your situation I truly believe that you are in a tight spot and it must be eating you up inside. I remember in the early 90’s when the whole world came crashing down on me and I could not make payroll. I good week was when I could pay my 2 mechanics, but still did not have enough money in the bank account to bring a check home to my wife and three little kids. We all know how humiliating that is for a man, don’t we. So please, with all due respect, I do know how you must feel and I wish I could help.

 

Are there any other businesses or shopping mall in the area you can go to and try to work out a deal with them? Do you specialize in any area that you can market to other businesses or other shops? I am just trying to see if there is any way you can find new work.

Link to comment
Share on other sites

Jeff, I am not going to be one of those guys who will attempt to try to analyze your problem and give you a magic bullet. I have too much respect for you and that would not help matters. After reading your situation I truly believe that you are in a tight spot and it must be eating you up inside. I remember in the early 90's when the whole world came crashing down on me and I could not make payroll. I good week was when I could pay my 2 mechanics, but still did not have enough money in the bank account to bring a check home to my wife and three little kids. We all know how humiliating that is for a man, don't we. So please, with all due respect, I do know how you must feel and I wish I could help.

 

Are there any other businesses or shopping mall in the area you can go to and try to work out a deal with them? Do you specialize in any area that you can market to other businesses or other shops? I am just trying to see if there is any way you can find new work.

 

 

Jeff, I would have to agree with Joe on this one. I've been there... making the last job of the week just to make payroll and not enough left over for the guy who started the whole thing... ME. I feel your pain buddy... I wish I could help... but that's not possible... but I can give you moral support to let you know that things DO turn around... If you can hang in there... I'm sure things will work out for the best.

 

Keep your chin up.. just remember .. it's not your fault... it's more likely the economy that brings you to this decision.

Check and see if there are other shops in the area that you could "farm" jobs for. Go to the used car dealers, stop by the vo-tech schools... car rentals, check with plumbing,electrcial and or any other business that would have a fleet of trucks.

 

There might still be a way to get thru this. Even if you have to move back home... I think you'll keep all that you've done as part of a learning experience and will be able to see any pitfalls in the future... life is a learning experience... and this is one of them.

 

Good luck my friend... I'm pullin' for ya. Gonzo

Link to comment
Share on other sites

Jeff, I would have to agree with Joe on this one. I've been there... making the last job of the week just to make payroll and not enough left over for the guy who started the whole thing... ME. I feel your pain buddy... I wish I could help... but that's not possible... but I can give you moral support to let you know that things DO turn around... If you can hang in there... I'm sure things will work out for the best.

 

Keep your chin up.. just remember .. it's not your fault... it's more likely the economy that brings you to this decision.

Check and see if there are other shops in the area that you could "farm" jobs for. Go to the used car dealers, stop by the vo-tech schools... car rentals, check with plumbing,electrcial and or any other business that would have a fleet of trucks.

 

There might still be a way to get thru this. Even if you have to move back home... I think you'll keep all that you've done as part of a learning experience and will be able to see any pitfalls in the future... life is a learning experience... and this is one of them.

 

Good luck my friend... I'm pullin' for ya. Gonzo

 

Gonzo is right, it's not your fault....if we could we would be right there in the trenches with you. The key thing is to do something. My father (a World War II vet) said that in battle when all things seemed impossible and it looked liked the end was near, the only thing that kept most of them alive was to do something, anything. When you are pinned down with bullets whizzing past you, it's hard to make a move. But if you stay there trapped, you will surely die. In business the same is true.

 

Just get out there, pound the pavement, go to every business, school, organization, church and hand out your business card.

 

Do something, don't get pinned down! And please, use this forum as somewhere you can let off some steam and vent. It will do a world of good and actually, the process of venting may reveal possible solutions.

Link to comment
Share on other sites

Thanks guys. I have been trying to get "outside" work. The downside to all that is with the dealer closings in the area there are several "shed" shops that are working for $20-$30 an hour and using/selling "discount" parts at cost. I have offered my services at 20-30% discounts and still cant match what the under-the-table guys are doing. Quality has gone out the window. And with the advent of OBD2 the dealers are keeping work in house. All factory scanners now have OBD diagnostics. Believe me I would much rather stay in the sun than go back north to fight the tornadoes and blizzards :( . I have started over before and believe me I have learned. I could fill a book on philosophy and business. I guess the biggest mistake I made was not looking far enough into the future and not planning for the very worse. Just 5 years ago I had over 80k in the bank. On paper I am worth a 1/4 mill. It aint funny but I still laugh. I believe my faith and GOD will take me where I need to go. I will succed!

Have a Great 4th and thanks again. I will be watching, if not from the front, then from the sidelines.

 

 

Jeff, it takes a real man to admit when 'he' alone is repsonisble for the world around him, and you are that man. Just one more thing to add; you mentioned faith and God, that will help you too. You need to be positve, it's not how hard you get knocked down, it's how quick you get to your feet and how you react that will make the difference.

 

Enough said, no matter what happens from this day on, I know you are already headed in the right direction.

Link to comment
Share on other sites

  • 2 weeks later...

Hey Folks. Just dropped in to give ya'all an update. Landlord came in Tues and asked me to move out. Figuered something was up when they wanted me to pay month to month when the last lease ran out. At least it gave me the direction and answer I was searching for. Gonna spend next week in Ohio looking around. Hope to at least find a job at a dealership. If it all works out run back to Fl grab a 28foot Budget truck load up and run back to Oh. Unload. grab a bus ticket, run back to Fl and get my p/u and go back. Kinda reminds me of my days of over the road truckin. The landlord askin me to move out actually brought some relief. We were able to work out aa deal on a lift for the past due rent. Really werent lookin forward to tearin down a 4 post! Anyhow all is good and I am planning to reopen in a year or so in the Buckeye. As I stated before I have learned a great deal from this experience and will be better equipped for the next go. And you can bet I will be checkin in here for advice and direction. I was once told that to be sucessful you must learn to use OPM (ther peoples money) and OPB ( other peoples brains). I am sure there aint no one in here ready to finance an auto repair shop that is not theirs! But the brain power in this forum is far above par! THANK YOU one and all! Have a great Day! Jeff

 

Sorry to hear this news... but, it sounds like you have your future game plan mapped out. Good luck, and stay in touch.

If ya ever make it to Tulsa, come by and say HI.

"Keep it between the ditches and off the tow trucks." Gonzo

Link to comment
Share on other sites

Hey Folks. Just dropped in to give ya'all an update. Landlord came in Tues and asked me to move out. Figuered something was up when they wanted me to pay month to month when the last lease ran out. At least it gave me the direction and answer I was searching for. Gonna spend next week in Ohio looking around. Hope to at least find a job at a dealership. If it all works out run back to Fl grab a 28foot Budget truck load up and run back to Oh. Unload. grab a bus ticket, run back to Fl and get my p/u and go back. Kinda reminds me of my days of over the road truckin. The landlord askin me to move out actually brought some relief. We were able to work out aa deal on a lift for the past due rent. Really werent lookin forward to tearin down a 4 post! Anyhow all is good and I am planning to reopen in a year or so in the Buckeye. As I stated before I have learned a great deal from this experience and will be better equipped for the next go. And you can bet I will be checkin in here for advice and direction. I was once told that to be sucessful you must learn to use OPM (ther peoples money) and OPB ( other peoples brains). I am sure there aint no one in here ready to finance an auto repair shop that is not theirs! But the brain power in this forum is far above par! THANK YOU one and all! Have a great Day! Jeff

 

Sorry to hear the news…however, some of the best things in life come out of hard times. We tend to learn more from failure than success. Remember, it’s not how hard you get knocked down; it’s how quick you get back on your feet. I have a strong feelings you are going to be fine.

 

Good luck and keep in touch. Stay part of ASO too, we all want to hear from you and keep tabs on you. Ok?

Link to comment
Share on other sites

Jeff, if it is any consolation we went through a three year period where we were losing money and were actively trying to sell our business.

 

 

Xrac, I'm sure Jeff is as interested as I am in what you did to turn things around. I'm not to the point of wanting to sell but you sure didnt hear me say I'd turn down an offer.

Link to comment
Share on other sites

Unashamedly I will say I hired a world class service manager and 90% of the credit goes to him. Over time we got rid of all the help we had before he came. We hired better qualified people with better skills and attitudes and paid them better. We expanded our service offerings and developed a very positive and up beat attitude. We cultivated positive relationships with key vendors. We worked hard on customer service. We did women's seminars. We learned how to sell and how to properly present the need. We concentrated advertising where it seemed most effective and jazzed up our ads and offers. We have tried to offer something catchy and different from what competitors are offering. How about a camel and a gas pump and something about beating the pump. We did that in one ad. How about my picture on the face of a ten dollar bill that was actually a coupon. We have used that as well. We started opening at 7:00 a.m. in the morning. We started rotating our work schedules so a tech gets at least one 3 day weekend per month. We became better organized.

 

I think you hit the nail on the head when you said you hired the right person to manage the business and hired the "right people". Too many of us have this notion that our entire business world revloves around us and we (because we are the owners of the business) are solely responsible for its sucess. While this is true to some extent it is not the whole picture.

 

When Yogi Berra was asked, "What makes a great coach", Yogi replied, "Great players". It's the people around you that make you great. Yes, you need to do your job, but to be really successful, there has to be a team effort.

Link to comment
Share on other sites

Unashamedly I will say I hired a world class service manager and 90% of the credit goes to him. Over time we got rid of all the help we had before he came. We hired better qualified people with better skills and attitudes and paid them better. We expanded our service offerings and developed a very positive and up beat attitude. We cultivated positive relationships with key vendors. We worked hard on customer service. We did women's seminars. We learned how to sell and how to properly present the need. We concentrated advertising where it seemed most effective and jazzed up our ads and offers. We have tried to offer something catchy and different from what competitors are offering. How about a camel and a gas pump and something about beating the pump. We did that in one ad. How about my picture on the face of a ten dollar bill that was actually a coupon. We have used that as well. We started opening at 7:00 a.m. in the morning. We started rotating our work schedules so a tech gets at least one 3 day weekend per month. We became better organized.

 

Thanks for the insight, I believe that is the key to a lot of my problems. Better organized and more positive attitude. I feel like I will see a big difference if I can get my shop back to looking like and acting like a Professional Repair Facilty instead of the good ole boy garage. Even more reason to come and see how you guys operate right?

Link to comment
Share on other sites

  • 3 weeks later...

This is not good news.

 

I judge the economy by consumer confidence. And I can tell you first hand that it's low. My customer are very concerned over the state of the nation and blame a good portion on the current administration. I think we are in tough times the next few years. It will somewhat stabilze as we adjust, but it will be tough.

Link to comment
Share on other sites

Glad to hear from you! Welcome back!

 

I understand you need to do what you need to do in order to survive, but I still am not a fan of installing customer supplied parts. Do I do it on occassion...yes. But it's not the rule and my customer understand that. I had a customer come in just today, he tried to install his own shocks and found all the bolts seized. Now, he is embarrssed and asks me to install the shocks he bought already. Of course I am not going to refuse him.

 

Just put togther a game plan and do what is profitable. Stay away from things that are not profitable for you. Stick with with and "ride" it out. It will come around...it always does.

 

Good luck!

Link to comment
Share on other sites

Jeff, I see that you are in Florida. That is one of the hotbeds of mobile repair. I tried that up here in NY and just couldn't get it to work, but from what I understand it works very well down there. The people in FL already know about how it works and are willing to use it (mobile repair). I think that will help you out a lot. Compared to the other shops on AutoShopOwner I am very small and because of that I have a relationship with my customers beyond just as a customer. Because of this I have installed customer supplied parts. I make sure that they know they are paying for the labor if the part doesn't fit, doesn't work, is of poor quality and doesn't last, etc.. I also make sure, on those jobs, to follow the flatrate to a "T" and if the job goes longer they get charged actual hours. You have to do what you have to in order to stay afloat. If that means scaling back, longer hours for you, etc then that's what you have to do. This isn't a time for you to dig in your heals and say "I won't change". Do what you have to to get through this and when you come out on the other side you'll be a better man for it and your business will be stronger.

Link to comment
Share on other sites

  • 4 weeks later...

Cuba is realizing that the answer is not in government spending and is laying off 500,000 workers. Their roles are to be filled by PRIVATE INDUSTRY. Our government is headed the opposite direction.

 

 

Before this country was a country... Pioneers crossed this rugged land in search of a better life for themselves and their families... I don't recall anyone ever giving them a handout. I'm pretty sure each and ever step they took was of their own free will and thru their sacrifices they accomplished one great thing... This country ... as far as I see it... hand outs and "gimmies" are for the weak... This country wasn't started by the weak...

 

We need to get back to that thought process and not look for hand outs as a way of making our lives better.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By Transmission Repair

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Asking for help and admitting you need help is often the last thing struggling business owners want to do. They also might not know who or how to ask. My panel of coaches has experience in the shop business and has a huge tenure as successful aftermarket business coaches. They’ve seen a lot and have helped many find unrivaled business success and a path to financial freedom.
      Watch Episode on YouTube
      Chris Cotton, AutoFix Auto Shop Coaching and the Chris Cotton Weekly Blitz Podcast
      Murray Voth, RPM Training
      Brian Gillis, Chief You Net-Results Strategist
      Key Talking Points
      Ask for help. Surround yourself with like-minded shop owners who have similar goals and face similar struggles. You don’t have to be alone! Stay focused by holding regular meetings. Cast your vision, get buy-in through allowing team input, motivating the crew, improving retention, delivering outstanding customer service, setting goals, celebrating achievements, showing you care, training on process and system, staff development, etc  Who is your alter ego to get things done? The Rock is Chris Cotton’s Learning styles are different for everyone (dyslexia, ADHD, autism) Avoid the rumor mill in your community- gather your team, be transparent, and ask for their help and the help of others in a positive way. Delegate the work. Keep your ego, pride and self-defense in check “I can’t raise my labor rate” isn’t an excuse Get your financials and all reporting caught up, so you can see where you are at, and what you owe so you can make a plan. Especially your government remittances (taxes) "The Gift of Dyslexia" by Ronald Davis on the books page on the website  
      Important Episodes
      Ego Is The Enemy [RR 717] Stop Being Afraid – Bryan Gossel [RR 517] Are you a Shop Owner or a Business Owner [RR 525] with Ron Tinner Taking Your Toolbox Home with Justin Barrett [RR 644] The Courage to Make Tough Decisions [THA 243] Hitting Rock Bottom and Climbing out [RR 650] RR 386: Shop Talk 6 – Making it Work – Husband and Wife Partners THA 088: Everything I Did Wrong and What I Learned 10 Things That Require Zero Talent [THA 222]
       
      Connect with the Podcast
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:
      More Time. More Profit. Shop-Ware Shop Management getshopware.com

      See how Broadly can help YOU grow your auto shop. getbroadly.com/chat
       
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Key Talking Points
      Justin Fricke, CarTime Auto Center, Dundas, MN
      Stocks around 100 cars on lot for used car business in the same building The car buying experience has changed- the market isn’t full of new vehicles anymore, prices continue to increase month to month Justin started as a technician and is now part-owner Program through junior and senior high schools called Career Tech Education- job fair day of different businesses with displays. As a business, go to schools and ask about their programs available. Consider field trip to the shop Where do kids fit? Stereotypes around the trades need to be broken in school. Don’t push the kids that are the “bad students” into the trades. It is no longer a secondary career path. Also has detail shop- $200 for full detailing inside and out Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:

      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour

      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      Bob has over 40 years of Business Management experience within the Independent sector of the automotive aftermarket industry in North America, consulting ...
    • Advertise your services or products to passers-by attracting them towards your business
    • By carmcapriotto
      Terica Buckner grew up in Portland Oregon and now lives in Vancouver Washington with her husband Andrew and their two year old daughter Emrys. She started working on cars at Benson High School in the automotive program at age 15 and started working as the shop helper at Hawthorne Auto Clinic just before her senior year. Terica continued her education by completing her Associate degree in Applied Science for Automotive at Mt Hood Community College, working as an automotive technician apprentice at Hawthorne Auto Clinic as part of the program.
      Shortly after graduating she became a service advisor at the Clinic and later earned her Bachelors degree in Business Administration. Terica expanded her skillset by becoming the bookkeeper while continuing service advising, utilizing both her degrees and automotive technical experience. After 20 years of working at Hawthorne Auto Clinic she was offered the chance to purchase the shop and took over ownership 2 years later in January 2020. Terica continues working with passion in the automotive industry and is excited to now be in the position to set new standards in an ever changing field, especially with the current challenges COVID-19 presents. Look for Terica's Episodes HERE.
      Key Talking Points:
      Employee turned shop owner23 years total, started summer before senior year of high school  Was apart of the automotive program in high school then a scholarship to apprentice program for post-secondary schooling Passion for fixing things A succession plan for the previous ownerWanted to retire within 5 years, Terica wrote a letter of intent for buying the business Terica had the experience in many different roles in the business along with established relationships with the employees and customers Advice for other female technicians wanting to become an owner- open communication with the existing owner, learn as much as you can about all aspects and roles of the business. Share your dreams and passions with others.  Covid-196 months into owning business pandemic happens I the first week the town shut down the sales dropped 50-60%- put majority of staff on furlough, held onto 2 of their top technicians to continue working Each week got better with the support of customers Sent emails to customers to keep them updated on their sanitizing procedures and tips to keep car maintenance from not driving  Staff4 females, 4 males Technician training- 40 required hours of training per year, give feedback about training classes after completed Resources:
      Thanks to Terica Buckner for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP's HERE Find every podcast episode HERE. Every episode segmented by Series HERE. Key Word Search HERE. Love what we do? Buy Carm a cup of coffee HERE. Be socially involved and in touch with the show:
      Facebook   Twitter   Linked In   Email
      Join the Ecosystem - Subscribe to the INSIDER NEWSLETTER HERE.
      Buy Carm a Cup of Coffee 

      Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future.

      Learn more about TRACS Enterprise and the hundreds of other benefits the NAPA family has to offer. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...