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Listen to an accountant, not the tool truck rep for Tax savings
At the end of each year, it's typical of tool reps and salespeople to give you tax advise. Often they will tell you that buying tools and equipment can be used as a way to lower income taxes. While this may be true, no one has a better handle on your financial situation that a good tax accountant. Listen to the expert, not the tool truck rep. Spending money to save on taxes also reduces your cash flow. I am not an accountant, but sometimes its better to pay a little extra in taxes and maintain a cash reserve. Your thoughts?By Joe Marconi, in Accounting, Profitability, & Payroll
- auto shop finance
- auto shop financial management
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Article: Breaker-Breaker--- back in the day of the CB... things were a bit different
Breaker, Breaker… In my many years of repairing cars I’ve helped out a countless number of other shops with their electrical problems. Some shops I would see a few times a month, and others only once in awhile. This was years before the internet was around, and cell phones were only a fad and way to expensive to have. So, most everything was done by a land line or over the CB radio. Back in the mid 80’s and 90’s I had one shop that I talked with nearly every day. Great guys, but not so great as mechanics. The owners name was Joe. His shop was small and seemed to be a place for wayward towed vehicles and obscure customers looking for dirt cheap repairs. His main business was his tow service, and the repair shop seemed to be there just to fill in the gaps on those slow days. One afternoon I got a call from Joe about a car his crew had given up on. They threw the parts cannon at it, but couldn’t get this car to come back to life. Joe was with tows, and needed the mechanics he had to drive the other tow trucks. This particular car had been in his shop for quite some time and I don't think the customer was too happy about it. So, to speed things up a bit, he dropped it off at my shop. “I’ll be on the road all day. I've got to get back out there. I've got tows lined up all day. If you get it going, could ya run it back to my shop,” Joe said, as he made a dash for his tow truck. “No problem Joe, I’ll get right on it,” I said, just as he drove off. The car was an 80’s GM. I could see all kinds of shiny new components under the hood, and could tell they put a lot of effort into swapping parts to find out what was going on. The symptom was; if you flipped the key to the crank position it would immediately start, but die just as quickly. The parts they changed were the predictable parts cannon fodder that the typical parts slapper would try. Tune-up parts, an IAC, TPS, MAP, ECM, etc… etc… all of which might, could, should’ve, probably, maybe, and of course, eventually with enough darts thrown at it, could have hit the target and fixed it. But it didn’t. I wasn’t about to go that route. Time for some real diagnostics and not just shoot from the hip. Why not start with the basics- fuel, air, and fire. Spark was good, timing looked good, and the intake had a good air pull. I gave it a shot of carb. cleaner, and as long as I kept spraying… it kept running. Ok, time to check the fuel pressure. Interesting... there was pressure. Hmmm, now what to do? The next obvious thing (to me) was to check fuel volume. I disconnected a fuel line and gave the key a flick into start. The fuel shot out into the drainage bucket, but then trickled to a stop. I did it a second time. Not as much fuel made it out this time, but the scenario was basically the same. It was always a quick burst followed by a trickle. Maybe I should look at that gas gauge. Well, wouldn’t ya know it, the gauge is ready E. It had just enough in the tank to pressurize the fuel lines but not enough to keep it going. Might as well grab a gas can, and put some in the tank. I’ll try it again… vroom, vroom, vroom, alright! It’s running great! Looks to me as if the entire problem was that it was out of gas. However, with all the new parts they installed, I couldn’t be sure if this was the 'only' problem or an after affect of having the car in the shop so long while trying to solve another problem. It could have been any one of the other components (within reason) they changed that really 'did' need to be changed. Later that day I drove the car back to Joe’s shop. He wasn’t there, but his dispatcher was in the office sorting out tow tickets and monitoring the CB with the volume up full blast. In the background you could hear the CB chatter from all the area’s tow companies. About then I heard Joe’s voice over the CB, “Did Gonzo call yet? Need to check in on him, we need to get that car back to the owner.” “He just walked in Joe, over,” the dispatcher told him. “So what was wrong with it,” Joe asked between the squelch of the CB radio and all the other chatter from the other tow companies. The dispatcher turned to me and pointed at the mic. So, I told him . The dispatcher, with a stunned look on his face, said, “I can’t tell him that. He is going to be so pissed.” “I don’t think you should either. At least not until he gets back,” I said, while breaking into an ear to ear smile. The CB comes back to life with Joe’s voice again; “So what did he find out, over,” Joe's frustration was showing through as his voice barked out of the CB speaker. The dispatcher said to me, " Old Joe sounds pretty pissed." I don’t know whether it was the way his day was going or how much time and money he's spent on this car. Either way, he’s not going to like this answer. “Go ahead… tell him,” I said to the dispatcher, still sitting there hold the mic button, “He wants the answer, so let him have it.” “Alright, Joe, are ya ready for this, over?" the dispatcher said, then waited for a response from Joe. "Yea, go ahead, over." "It was out of gas.” A dead silence came over the CB. No chatter, nothing, not another sound for what seemed to be an eternity. Then, all hell broke loose. Tow drivers from all over the city were razing poor Joe. The CB was full of laughter and goof ball comments, but not a word from Joe. Poor Joe, you asked for it, and now you got it. “Tell Joe to stop by the shop, he can settle up with me then,” I said, while trying to hold back the laughter. As I walked out the door, the CB chatter could be heard all the way to the parking lot, and the comments were still flying. It was one of the funniest moments I’ve ever had for doing nothing more than putting gas in a car. When Joe came up to pay the bill I told him I had a little something for him. I handed him a little tiny gas can on a key chain. I figured it might be a good reminder for him to always check the basics before loading up the parts cannon again. After all these years I’m sure he hasn’t forgotten about it, and I’ll bet he doesn’t tell too many people where he got that little gas can key chain from… but now, it wouldn't be so much on the CB, but over the internet.
View full articleBy Gonzo, in AutoShopOwner Articles
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Aftermarket Parts Issues Driving Me Up A Wall!!!
There are days I want to set the place on fire (sometimes just customers cars) ok just kidding. I seem to be getting a streak of problematic parts lately. I am so tired of reps telling me about quality, oem specs, warranty blah blah. My main supplier is AAP. Here are some examples below. - 2000 wrangler needing rear axles due to bearing failure. Ordered Dorman axles and both had fitment issues where once installed the differential pin wouldn't fit in due to improper clearances on the axle. Ordered another brand online Yukon Axles. - 1995 Lexus SC300 (mint cond, low miles) Felpro valve cover gasket was manufactured too thick and didn't fit in the groove on the valve cover. Ordered from Lexus and fit fine. - Forgot the year (Chrysler van) water pump with a pulley that wobbled and even the online reviews had the same issue. - 1993 Wrangler water pump machined incorrectly where once bolted to the block, the ears of the pump where the ps pump bracket bolts to was not machined correctly and if you tried to bolt it on it would bend the water pump. Ordered AC Delco (i think) from Cold air distributors and worked fine. - 1999 Lexus ES300 front left brake hose manufactured incorrectly. Ordered another brand, probably Raybestos from Cold Air Distributors, and all is well. - 2003 Taurus 3.0 OHV timing cover from Dorman 635-117. Online reviews had some issues but the oem unit was expensive. I ordered 3 before I found one that was machined good enough then installed. Came back a while later leaking. I ordered a replacement under warranty and the quality control was horrible. Just ended up getting the ford one and looked and seemed to work great. Time will tell - 2005 Honda Element Monroe struts all the way around (these are the ones) in the front like the civics where the strut has the bracket where the tie rod bolts to. Left front was fine. Right front couldn't get aligned properly as the bracket for the tie rod was welded on at the wrong angle. Went through a couple from the local parts store then I think Monroe sent me a strut that was tested to be ok on their manufacturing/ quality control/ measurement jig and it still failed. They paid to have the old Honda part sent back for inspection. I think i ordered KYB for the front and all was well. I use the AAP Wearever Platinum which have been great brake pad material and braking, but lately they don't fit properly and I have taken video to show the reps and I believe when the backing plate is cut, there are imperfections where it wont fit into the caliper bracket without me grinding the backing plate on the edges. The actual manufacturing company for them sent a rep to a local AAP BBQ event and I talked to him and he is very aware and they supposedly changed the manufacturing process to address this issue but recently I did a brake job and had the same issue then installed Akebono and all was well. I am considering switching to the Wagner TQ which they stock as well. They give me an across the board pricing on the Platinum pads of $34.99 on most vehicles. Has anybody got a good pricing structure on the Wagners? AAP gives a 3 month parts and labor warranty on pretty much everything they sell. The labor is reimbursed on my parts account at 1/2 my shop labor rate times the book time. The problem is I still have to write up an invoice showing that I replaced the part and didn't charge the customer, and spend time calling their hotline and explain what happened, then fax or scan and email the original invoice, warranty invoice, original parts invoice with the claim numbers and I still have to call and check in to make sure the claims have been processed and paid out. This takes time and is not very encouraging. Otherwise the parts themselves have the standard warranties, 2 year, 3 year, lifetime, etc. though this still requires me to redo the repair that should have been successful the first time. I am the owner and mechanic and I waste so much time in the office dealing with parts, Calling manufacturers tech support lines, taking measurements, sending pictures of parts problems. Then if I cannot get it resolved having to research another part. The Dorman timing covers were terrible. the metal was porous and i sent them a screenshot of their website talking about "High quality plastic or metal construction resists warping, cracking and porousness". I am surprised that these companies don't look at the reviews of their own products and correct the issues. I do need another technician so I don't have to wear so many hats but in the meantime how do you folks deal with these types of issues. The other issue is because I am not a high volume purchaser, although it is getting better as I grow, I have to purchase the majority of my parts from AAP to keep myself on a reasonable tier level. If I spread my purchases around then I can fall off the tier level in a short time. I like AAP and they have a warehouse near me and have a vast inventory available locally as opposed to other suppliers. Most of the stuff I get is name brand stuff to avoid junk parts. I like Moog, National, Motorcraft, Delco, Etc so its not like I am trying to be cheap on everything, I just seem to get burned a lot. When the commercial reps come by, it is usually to check up on business and try to sell me something or a service or a package deal, however when I show them the issues I am having, they really don't or cannot do anything other than listen and tell me about their "quality parts". I ask for the numbers to the engineering departments to try and at least get some of these issues resolved and I cannot get through. How do ya'll deal with these situations?By [email protected], in Automotive Products & Services
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Shop Owner’s need downtime to put things in proper perspective
I am writing this on my last day of vacation in California, spending time with family. It took me a few days to totally relax, but made it a point to not look at emails or call the office. We all need downtime. I know there will be a ton of work to be done when I return, but I also know that the time away has recharged my batteries and I will be more productive. Being away from business and spending time with family puts things into proper perspective. You realize that a lot of the things you stress over, are really not as important as you think. Take time to enjoy life. We all know how quickly time passes us by. And remember, no one on their death bed ever said they wished they spent more time at work.By Joe Marconi, in Joe’s Business Tips For Shop Owners
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Happy Mother’s Day to all our Mothers and Wives
Let me share a great story. The year was 1820 and Peter Richley was a grateful man. He had survived one of the strangest and most harrowing events known to mankind. The ship which he had been traveling on sank. He was rescued. By some strange twist of circumstance, however, this ship sank. He was rescued again. But, this third ship sank likewise. He was rescued for a third time. Yet, his fourth ship of passage soon sank. And unbelievably, he was rescued for a fourth time, but this fifth ship sank as well. It would have been laughable had it not been so serious. On the high seas, however, he floated with the serene confidence that somehow God did not want him to die. And sure enough, as if on cue, another ship came by and answered his call for help. This ocean liner, The City of Leeds, was named after it’s British city of orgin. It was bound from England to Australia and traveled the same sea lane as Peter Richley’s downed ships. The crew of The City of Leeds hoisted Peter aboard. Dry clothing was provided to Peter. The ship’s doctor gave him a cursory exam, pronounced him fit, and then asked an unusual favor. “There’s a lady on board who booked passage to Australia,” the doctor explained. “She’s looking for her son who disappeared years ago. She’s dying and she’s asking to see her son. She knows everybody on board and since you’re the only newcomer, would you pretend to be her son?” Peter agreed. After all, his life had now been saved for the fifth time. He followed the doctor below deck and entered into a cabin. There on a small bed lay a frail woman with silvered-hair. She was obviously suffering from a very high fever. Deliriously, she was crying out. “Please God. Let me see my son before I die. I must see my son!” The ship’s doctor gently pushed the young man toward the bed. Soon, however, Peter Richley began sobbing. For lying there on that bed was the reason that he couldn’t seem to die. Here was the lifeline that had kept him from drowning five times. For lying on that bed was none other than Sarah Richley—who had prayed for ten years to reconciled to her son, Peter. The ship’s doctor stood in amazement as the young man fell down by the bed and embraced the sick woman. “I’m here mom! I’m here. It’s me!” Within days the fever had subsided and his mother awakened to find an answered prayer seated on the edge of her bed. (This story was told by western writer Louis L’Amour in an interview he gave. This story bears out the saying, “truth is stranger than fiction.” In researching the Louis L’Amour website there were additional references that bear out this story to be a true story.)By xrac, in Outside The Shop
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