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By Joe Marconi in Joe's Blog5 commentsI recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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By bi0h4z4rd
Hey guys,
I have always appreciated this forum and not sure how I didn't think to ask this question here to begin with!
I received an unexpected phone call from a gentleman whom I've never spoken to or met before the day after Christmasz but he was aware of me and my recent achievements while managing an independent franchise of a national auto repair chain (honestly doesn't make a difference to me if you know where u can msg me if u want. Just didn't know the rules on it)
In less than 60 seconds he was able to explain who he was, where he was from, and that he would like to move me out there for the purpose of taking over his shop and running it for him until he retires at which time I could buy it if I wanted it and I told him it is certainly a discussion we can have and would get back to him the following day.
Our next conversation I had the chance to interview him about the shop and a little about himself to which I have no objections and went on to inform him that picking up my life and moving out of state would not be a quick decision and would require a process in which 3 things would need to take place.
1. We would need to meet in person obviously, but also spend a decent amount of time in an environment outside of the work setting to get to know a little more of each other and assuming no red flags (very doubtful there are any to find) move forward
2. I would need to see the shop and be able to shadow how it's currently operated for a day or 2 and if no issues were to come up that within a few days at most I woulr let him know what it would take and the cost needed in order for me to commit to this and move.
3. We would both have to mutually agree to or re negotiate a deal to be out in writing and signed and any upfront requirements fulfilled.
Until late May I had spent the last 3 1/2 years as general manager for another franchise of the same chain that was nearly bankrupt when I started and lead it on to achieve new reocrds parts and labor sales . I wrote out a business plan outlining all new policies, procedures, products, and pay structure that changed everything from the ground up.
The first year reflected an increase in more than 150k of gross sales at just shy of 1m and the second was the highest gross sales recorded at 1.29m, and I parted ways respectably in late May on track to exceed 1.5m. (sadly, they did not make this mark)
During this time my compensation was a base salary of $1000/week, 1% of gross sales, and a weekly kicker of $250 per week gross sales ended over $20k, and an additional $250 for each $5k after for that week. 2021 I grossed $109k and this year was on track to end at $150k if I had remained.
There was nothing negative involved or that created the reason my departure. The regional manager for the 166 stores or whatever it is in the NW asked me long ago if I would ever be willing to relocate and run another "franchise store" and I had a couple people email me that I couldnt even take seriously, but never let them go any further.
I am scheduled to leave by train this Monday 1/9 where he has provided me with a hotel and rental car for a 3 day stay to complete the other steps needed to move forward.
Below is a general idea of what I have in my head as far as what I expect out of a relocation package, but I've never had to hire or been hired this way before. Needless to say I could use and would appreciate any insight from anyone that has experience or any history with this process and reasonable expectations.
1. Move in costs including first and last months rent, security deposit, and any application fees.
(I was going to put a cap on the amounts, but the cost of living there is ridiculously higher than here and I don't feel like moving from a nice 3 bdrm house that I have here to go live in some cheap 1 bdrm apartment there is the right direction lol)
2. All personal property will be prepared and packed by myself and then loaded and delivered at owners expense.
3. Pay structure to remain the same as previous Midas employer with a $250 increase to weekly salary.
4. Employee discount will be all products and parts at cost.
5. One time payment of $15,000 as incentive to ease the complications that come with relocating.
(,Thought of splitting up? 1/2 up front and other half dispersed with regular pay over next 6 mos?)
Any feedback or thoughts is welcomed and appreciated.
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By carmcapriotto
David Eschbach, Spirt One Automotive, St. Louis, MO
Key Talking Points
Five Stages of Business- Obscurity, Awareness, Need, Change, Recommend Awareness- understanding your voice and message is powerful. Include the spouse as 3rd party evaluator with reviews. "No one works for me, they work with me." Forfeiting the Right to Emotion- The difference between emotion and compassion. Dollars are for the owner. Victories are for the team. Focus on Simple Victories Not Dollars Marketing, Advertising and Branding: must be done daily, everyone is a prospect, don’t stop marketing even if you are busy and booked weeks out. Are you “coca-cola?” “Success is detrimental to your daily efforts” “Triumph only means your next effort has to produce bigger results.” Creating a Marketing Calendar. Marketing Everyday- The Everyday Habit. Understanding how to attract new customers. The failure of discounts and rebates, instead market experiences. Becoming an Influencer, let the relationship build your business Your Health is the Health of your Business- your team counts on you for your decisions. The best decisions come from a healthy mind and body.
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By carmcapriotto
Greg Bunch is the owner of Aspen Auto Clinic, a five-location automotive and service business in Colorado. Greg started his passion for cars at 15 when he began rebuilding a 1966 Volkswagen Bug. Greg has moved from a Volkswagen mechanic to ASE Master Technician, to Management, to starting his shop 18 years ago in his garage, to an award-winning multi-location business.
Greg is currently a board member for the STEM-based charter school call “Automotive Institute of Science & Technology” and on the Advisory board of Ratchet and Wrench Magazine. Greg is also a board member of the Autocare organization and a certified instructor for the Worldpac Training Institute and Carquest Technical Institute. Greg’s unwavering passion for the industry has also led him to form a company called Transformers Institute, a coaching and training company dedicated to transforming the automotive industry.
Listen to Greg’s previous episodes HERE. Transformers Institute HERE.
Austin Miller. Tire Star opened the doors in 2011 in the back part of a grain elevator warehouse. Austin Miller started the business with the goal of providing trustworthy automotive repair at a fair price and timely manner. Since then Tire Star has grown to 3 locations and 40+ employees. This growth was made possible by employees willing to go the extra mile to provide a great customer experience. Austin is an ASE L1 Master Certified Technician and has received an ASE technician of the year award. Although he is not turning a wrench most days Austin is still very involved in learning about new technology and ensuring his staff gets the training they need to be successful. Listen to Austin’s previous episodes HERE.
John Manelas and wife, Karen Manelas,purchased their first location in April 2004. They expanded into their 2nd location in 2011. They bought out a former 20 group member in Maine in 2013 as their 3rd location. They purchased a former Chevy/Chrysler 14 bay dealership in 2014. In 2016, they purchased an import auto service business and converted it to an Auto Care Plus (store #5). In 2017, they purchased a Volvo Specialty Repair Shop which they decided to then re-brand and create a new brand for us calling it Euro Care Plus. In 2019, we did our first non-acquisition “build to suit” venture erecting an 8 bay facility with upstairs offices for their Corporate headquarters. They also decided to lease the rest of that building where we are preparing to open a Hybrid/EV specialty division to be named Electrified Auto Care. They now have 7 locations (5 of which they own the dirt). 6 Locations in NH and one in ME. Listen to John’s previous episodes HERE.
Key Talking Points:
I think I’m successful, I think I wanna grow, but am I ready for this?Not for money, not for ego, but for a challenge Personal reasons for why Some peoples why is to build wealthThe challenge of it People are only happy when they are growing Private equity Add another location to justify the management teamGoing from 2 to 3 locations made you focus in on your process Day you realized to lock your processes downEstablish SOPs Use other people’s money to expandBuild to suit Pay it back in a lease arrangement Lean towards acquisitions Newer growing areas are better for build to suit Own the dirt whenever possible The creativity of doing a dealYou do need capital not just the paper Leverage other people’s money to make it happen What Covid has done to our industryAbsorption is an option If you’re gonna grow and acquire, you have to have the right peopleNot everyone fits your model Not every size fits your model Anticipate losing 10% of customer base Anticipate losing 90% of your employees During an acquisitionBuild an avatar of what the perfect customer looks like Build an avatar of what the perfect shop looks likeLean and mean 3 - 4 bay shops Garage-Mahal 7 - 8 bay shop Main street Backstreet Euroshop General repair Asian specialty Austin explains his why I enjoy the challenge The problem child car that no one could figure out at other shops Bored with only one shop The challenge of taking something that is not operating very well and making it profitable Single shop owner with an itch to grow… what do you tell me?I would ask you why? Passion has to be in there It can't be all about money It’s a long road Are there gonna be huge opportunities on the horizon?The potential this industry has in the future is tremendous Also gonna be filled with challenges Technology is changing The industry is going to change Recession proof business The word is “Cautious”91% of shops were affected by Covid Shop owners looking to expand, take advantage of opportunities Baby boomers are gonna get out early to retire (bcs of Covid) Take advantage but don’t be a predator Be prepared to lose 90% of your employeesLoyalty Fixer Upper Shops You don’t have a broken shop, you have a broken manager Assessment of BusinessNumbers don’t lie, people lie Look at car counts they are running Number of rooftops for competitors Location Never advise someone to buy their second store that isn’t going to be better than their first shop I wanna grow as a shop owner, I’ve done a self assessment and I’m ready…If you’re not profitable at your first business, you’re not ready Profitability is important How much involvement is the owner in the current operations You can’t have a investor hat on and a technician hat on at the same time Some people want a fixer upper, others want an established operation How many shops is too many shops, is there a sweet spot?Depends on the business model you are running Investing back into the business We can’t run a business if we can’t fix the cars Covid was a perfect opportunity to educate parents into the ‘college scam’ There is alot to prepare for going into multiple locations Final WordsAustin MillerThe 20 Group Ratchet and Wrench Attend conferences, sit at the lunch table and talk to people Greg BunchThe longer you wait to get help, the more expensive it will be Don’t jump into the deep end alone Need to have a passion for the industry Information is not transformation John ManelasMentors is #1 Get out and fight people that have been there done that Wife and or significant other, you need to have their support Attend seminars together Henry Ford attributes 2 things to his successHis mastermind group His wife
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A special thanks to Greg Bunch, Austin Miller, and John Manelas for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook Twitter Linked In Email
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By stephanie
Are you fed up with the day-to-day in the shop? Ready to shift gears and make money without breaking your back?
Our online store is for sale. Owner wants to put his sole focus on the projects we have in the shop so that he can wrap them up and retire. Our online store averages $2800 in sales per month with absolutely no advertising. There are many more items we could add to increase sales, but being that we are a two-person operation we have too much going on to properly manage and advertise the website.
Here are the details from the listing:
Brand has existed since the late 90s, re-branded in 2008 when we moved and expanded our offerings Well-known name in the Corvette community We offer solutions that no one else in the Corvette and GM high performance field offer Currently monetized solely through ecommerce transactions Site platform- WordPress with Ecwid for cart ($17 per month); Knownhost VPS hosting ($35 per month) Will include domain, Facebook page, and Twitter account Site currently only includes products we have researched and developed, but we have accounts with several major parts distribution companies and those parts could easily be added to the site and dropshipped to customers Training available for 30 days following purchase. Buyer has the option of continuing to buy products from us, or buying rights (cost of which is included in sale of site) to the proprietary info (preferred). Buyer will need to take over the before and after sale support. Owner is retiring and downsizing. The site has never reached its full potential because we also run a busy repair shop, write books, and travel to seminars, etc. We have not advertised because we do not have the proper time to devote to the website. Owner prefers to continue with the repair side of the business and sell the online portion of the business.
Please contact me if I can answer any questions. Thank you!
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By dasilks
Hey!
I am run a auto spare parts store in Canada, I with spares for all sorts of vehicles. I am in search for an inventory management software. I am finding it hard to get stock details. Any recommendations for such a software for my store? I could only find this software http://www.multiflexrms.com/. Anyone using it in their store? Any feedback ?
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