By Joe Marconi
We, automotive shop owners of America, must take the opportunity of a lifetime and turn it into a bunch of success stories. What opportunity? Look around you. The world is in turmoil. COVID-19, social unrest, uncertainty about the presidential election, the economy, how are we going to get out kids back to school, on and on and on.
While the world is spiraling out of control, we have the power to make big changes to our auto repair shops. And it can all be positive!
First, the average age of a car in the U.S. is about 12 years old, attaining well over 200k on the clock.
Second, Uber, taxis and limo companies are suffering. Guess why?
Third, the motoring public in the foreseeable future will be traveling by car, taking road trips like they have never did before.
Fourth, the roads are packed with motor vehicles, as more and more people prefer their own car as their primary means of transportation.
Fifth, as the cars get older and older, more of them will be out of factory warranty.
Sixth, independent auto repair shops have a vast amount of training, resources and replacement parts.
Seventh, the overwhelming majority of cars being build and sold today are still internal combustion engine powered cars. If you factor in the expected average age of car these days, we can safely bet that those gas engine cars being sold today will still be on the road in 2033 and beyond!
Eight, You need more? That's not enough!
Get your plan in place. Get your prices in line with making a profit. Don't give anything away anymore (I am mostly referring to checking, testing, diags of any sort!) Offer world class customer service. Be a leader of your employees. Show the world what you are made of!
By Joe Marconi
For many of us, it's been a wild ride the past few months. We had to take care of everything, making tough decisions, dealing with banks and the SBA and running the shop from the trenches. But, with things looking better each day, it’s time that we get back into the role of building and operating the company.
For many, the COVID-19 crisis is far from over. However, the sooner we begin to adjust and build for the future, the better off we will be.
Shop Owners are among the hardest working people on the planet. We find ways to get through the most difficult situations. I have no doubt that the lesson’s learned from this crisis will make us stronger and more successful.
By Elite Worldwide Inc.
By Bob Cooper
During difficult times like these it's important to look for creative ways to keep your shop's name in the minds of your community members. Here are 3 easy-to-implement tips that will help your shop build its brand recognition in today's climate.
1. If you have a shuttle or any type of vehicle that features the name of your shop, it's important to get that vehicle out in your community. There are plenty of charitable organizations you could partner with that may need delivery assistance, such as Meals on Wheels. You could also provide a shuttle service for local retirement homes and any other group that may need assistance getting around your community, or you could even deliver groceries or household items to these groups. Getting your business's name out there and helping your community will certainly help people remember your shop.
2. Host an online course for people who are currently stuck at home. One specific idea is to host an online car care clinic for new drivers, teaching them things like how to maintain a car, how to deal with a flat tire, how to read and use their car's owner manual, and other similar topics. Not only will this help them learn vital information, but it will give them an indoor activity to focus their attention on, which I'm sure their parents will thank you for.
3. Now more than ever, it's important to have the right attitude each day. This is crucial not only for your own well-being, but for the well-being of everyone around you. A positive outlook will permeate throughout your staff and your community, and show people the type of business you have; one that views each day as a new opportunity to build a wonderful life and a wonderful company.
For additional help building a more successful auto repair business, feel free to give us a call at 800-204-3548 or visit the Elite website.
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I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.
By Joe Marconi
Shop owners, you have a little less than two months before the end of the year. And that means it's time to start thinkning about your Tax Planning for 2019. Don't procrastinate on this. Meet with accountant. Review the year, review profit. Consider things such as major equipmenet purchases and other major investments you made in 2019. Look at bottom line profit and determine if you set aside enough cash to pay your taxes come April 15, 2020.
One thing, Cash is King, So, before you purhase any major equipment before the end of the year, listen to your accoutant, not the Tool Sales-person. In many cases, it's better to pay some tax and hold on to cash for a rainy day.
A little planning now will save you big time in 2020, and also help you sleep better!