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Will This Recession Turn Into a Depression?

xrac

By xrac
in Non-Automotive Discussions

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Gonzo Grand Master

Gonzo

Posted
Posted

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."

Gonzo Grand Master

Gonzo

Posted
Posted (edited)

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
Gonzo Grand Master

Gonzo

Posted
Posted

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

  • 2 weeks later...
Gonzo Grand Master

Gonzo

Posted
Posted

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

RickM Apprentice

RickM

Posted
Posted

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.

RickM Apprentice

RickM

Posted
Posted

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?

  • 3 weeks later...
DewayneP Contributor

DewayneP

Posted
Posted

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.

  • 4 weeks later...
Gonzo Grand Master

Gonzo

Posted
Posted

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.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's 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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