Quantcast
Jump to content

Recommended Posts

Posted

I newer to managing an auto shop i opened the one we are in on Jan 18 of this year. About two weeks ago i was contacted by the local Air Force Base to make a bid to take over their car care center. It is a two bay shop that currently only does tires, batteries and the occansional oil change. I've met with the technician they curently employ he can only manage three sets of tires installed in a day. monthly sales average $21,000 and he is three weeks behind. They are projecting sales at $55,000 a month and was wondering how realistic that is out of 2 bay shop. My other problem is the bid consists of a promised percentage of total sales. my question is can anyone assist me on how to figure out what that percentage should be. their will be no building cost, it has 2 lifts, 2 tire machines, 2 balancers, 2 coolant flush machines and some smaller pieces, they cover all utilities except for communication lines(phone, internet, fax). They cover all of the marketing and there is no competetion on base short of the hobby shop.

 

My background is ASE master tech and factory certified in Audi/Volkswagen Land Rover, Hyundai, GM, Ferrari, and Saturn.

Other than running my current location for the last 11 months i have no business training and very little knowledge of this side of things. To do this contract i would to need to go from 2 Employees to a total of 7 or 8. (the AFB wants us to be open 6 days A week 60 hours total)

 

I found this website about a month and a half ago and have put a lot of knowledge found into play. Last month after doing so was first month to show any profit and have actually caught up completely from rest of the years losses.

Posted
  On 12/2/2011 at 11:15 PM, Joe Marconi said:

First of all, Welcome to AutoShopOwner.com.

 

I really don't have an easy answer for you. Working for the Air Force Base will mean you will be getting paid by the Government and having to place a bid always makes me a little uneasy. I think there is an opportunity; I just don't know what type of work and who you will work for. As far as $55,000 for a 2-bay shop, that can be attained, but it take some doing with high productivity. How many techs will you need? You said they are only doing tires, batteries and oil changes. Is there a chance to do more work? Work that is more profitable?

 

This will not be your business, but will get paid a percentage of the sales? Maybe you should figure out an hourly rate for yourself and calculate what that would be in percentage. In other words, if you want to make $25.00 per hour per each tech, that would be the money you would need. I am new to this too and just trying to brainstorm an idea.

 

Who sets the prices and who will be your customers. Maybe we need more information to get a better understand. One more thing, you would give up your business to do this?

Thank you for answering let me try to answer question as they were asked

 

This would basically be a second location for me my business. But they get set percentage for providing building and some equipment. Example i

contemplating giving them 5% gross sales.

 

I will be in charge of what services we provide and at what prices, except i have to be between 5% and 10% below area average . Example if firestone has ac service for 79.95 i have to be 10% below that.

Lof services have to be 5% below area average.

 

Now tires are an area of concern for me they control what i can charge for those and how much to mount and balance.

 

I;m thinking between 4 and 6 employees for this location based on hourly pay and them mandating being open 60 hours a week 2 service writers and between 2 and 4 techs for rotation and not to over work them.

 

I do have a industry standard of 14.43 per hour minimum wage to pay techs and must provide paid vacations and 3.59 hour toward health and welfare which i'm assuming is health benifits

 

I hope this clears some up, because its just a little overwhelming for me by myself

Posted
  On 12/3/2011 at 2:37 PM, Joe Marconi said:

As a second location, it looks a little more promising. I am concerned about the pricing, but if it is managed well, you can use this has an additional income stream. Because it's another location, any profit is a plus. You will need someone to manage it or you will need to bounce back and forth between locations, which can be an issue.

 

How far are the locations from each other?

 

Is it possible to speak to anyone who has done this in the past?

 

You mentioned that the facility has 2 bay and 2 lifts, and you would want that many employees? Is it because of the amount of hours and days required?

Can you clarify the amount of bays, the size of the facility and the amount of lifts? Does is have alignment equipment?

 

I have two facilities, a 4-bay and a 6-bay. Both are opened 6 days, 56 hours

 

In my 4 bay shop we have 3 techs (rotational) and 2 advisors. One advisor also doubles as the manager. Our car counts for this shop is 110 to 125 per week, and we do brakes, preventive maintenance, axles, tires, steering, suspension, LOF's, alignments. This shop does not do any large repair work.

 

This is why I want to make sure of the number of lifts and bays, this will determine the potential and then we can figure the manpower needed.

It is two Bays two lifts maybe 35' X 35' total shop area no rack and truthfully i'm nervous because of how small it is. But there is a store room that is probably 15X 20 for storage of inventory tires, parts, etc...

 

So basically it would be like your 4 bay but without alignments. the base is located about 5 miles from my current location.

 

Currently my business now is about 50% wholesale I do Warranty work and getting cars ready for 5 car lots. which is what i only had in mind when i started my current location. But i quickly found out it is WAY more profitable doing retail. my current location doesn't even have an office. just a desk in the corner of the shop and no lifts. We average between 35 and 50 cars a month. Average monthly income is between 13,000 and 20,000 So going fully retail would be a newer experiance for me so i greatly appreciate all of the help.

Posted

the afb would be 100% retail.

i'm currently working on marketing to increase retail customers at my current location. at the moment i've been subleting my alignments to another shop that only does alignments.

also joe if you have time would you send me some additional info on ELITE

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
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
  • Similar Topics

    • By carmcapriotto
      Thanks to our Partners, NAPA TRACS, and Today's Class Recorded at the NAPA Now Conference celebrating NAPA Auto Care’s 100th anniversary, this conversation dives into the realities of emerging automotive technologies, especially ADAS (Advanced Driver-Assistance Systems). The discussion emphasizes the critical need for proper calibration procedures, equipment, and technician training to keep pace with rapidly evolving tech. From static vs. dynamic calibrations to the integration of AR/VR tools, the panel explores the industry's struggles to adopt new technology and the personal traits, like hyperfocus, needed to thrive in today’s complex diagnostic landscape. The takeaway: adaptation, education, and investment are no longer optional; they’re essential for staying competitive.
      Bill Weaver, NAPA Autotech Trainer. Listen to Bill’s previous episodes HERE Matt Fanslow, Riverside Automotive, Red Wing, MN, Diagnosing the Aftermarket A to Z Podcast Show Notes:
      Watch Full Video Episode Introduction to Town Hall Academy (00:00:00) NAPA's 100-Year Legacy (00:01:19) Emerging Technologies in Automotive (00:04:29)r. ADAS Calibration Challenges (00:08:06) Industry Ignorance Towards ADAS (00:11:11) Frustration with Industry Changes (00:13:01) Fear of New Technologies (00:14:44) Calibration Concerns (00:18:06) Dynamic Calibration Challenges (00:18:19) Legal Implications of Calibration (00:20:02) Tire Repair Liability (00:20:25) Importance of Following Procedures (00:21:24) ADAS Responsibility (00:24:01) Collaboration Among Shops (00:25:40) Cost of Living Awareness (00:27:16) Spinning Plate Syndrome (00:31:06) ADHD and Hyperfocus (00:35:27) Job Security and Continuous Learning (00:41:02)
      Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on X: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      July’s here, and while the calendar might look quiet, your marketing shouldn’t be! In this episode of the Auto Repair Marketing Podcast, Brian Walker and Caroline Legrand share real strategies to keep your shop top of mind and your bays full during the summer slowdown.
      From summer travel prep and college car check-ins to back-to-school drives and fun offbeat holidays like Chicken Wing Day and Tattoo Day, this episode is packed with creative, low-effort ways to stay connected with your community.
      You’ll also learn how to use slower days to plan, boost team morale, and build content that connects.
      Hit play, get inspired, and keep that summer momentum rolling! ☀️
      Thank you to our friends at RepairPal for this episode. RepairPal will introduce your shop to new customers through repairpal.com, the largest site for auto repair. Learn more at
      RepairPal.com/shops.
      Declined repairs don’t have to be lost revenue. AppFueled’s call center schedules follow-up calls and equips your team with everything they need to close the deal. Get started now at appfueled.com 
      Lagniappe (Books, Links, Other Podcasts, etc)
      July Social Media Content Topics
      Days of the Year
      National Calendar
      Show Notes with Timestamps
      Preparing for July Marketing (00:00:25) Discussion on the importance of planning marketing strategies for July, focusing on themes like freedom and summer safety. Engaging with the Community (00:01:10) Emphasis on keeping customers engaged during a slow month and using social media effectively. Back to School Promotions (00:02:04) Importance of early planning for back-to-school promotions and community involvement in school supply drives. Vehicle Maintenance for College Students (00:03:22) Encouraging vehicle check-ups for college students returning home for summer before heading back to school. Utilizing CRM for Client Communication (00:04:40) Using customer relationship management tools to remind clients about vehicle maintenance for college students. Busy Summer Months (00:05:26) Advice on managing busy summer months and scheduling maintenance during slower periods in August and September. Summer Safety and Vehicle Maintenance (00:06:37) Highlighting the importance of vehicle safety checks during the hot summer months. Creative Marketing Ideas for July (00:07:08) Suggestions for fun marketing content ideas, including engaging with technicians during slower days. National Days and Events (00:09:09) Discussion on leveraging national days and events for creative marketing strategies in July. Community Engagement through Sports (00:10:45) Using local sports events to engage the community and promote the shop through giveaways or themed events. Sponsorship Mention - RepairPal (00:11:27) Highlighting the benefits of being part of the RepairPal certified network for auto repair shops. Sponsorship Mention - App Fueled (00:12:26) Introduction to App Fueled and how it can enhance customer loyalty for auto repair shops. International Chicken Wing Day (00:13:29) Ideas for celebrating International Chicken Wing Day with team cookouts and social media engagement. Local Wing Joints (00:14:36) Discusses supporting local wing restaurants instead of chains and engaging with the community. Air Conditioning Appreciation Day (00:15:29) Highlights a creative marketing opportunity related to air conditioning services in July. 4th of July Promotions (00:15:42) Ideas for engaging with the community during Independence Day celebrations and events. National Workaholics Day (00:16:00) Celebrating dedicated employees who go above and beyond in their work. Social Media Trends (00:16:11) Explores a social media video trend showcasing employee arrival times at the shop. Father-Daughter Walk Day (00:17:30) Encourages sharing personal stories to build trust with customers through family connections. Food-Related National Days (00:18:08) Lists various food-themed days in July for potential marketing content. Collector Car Appreciation Day (00:18:43) Promotes showcasing unique collector cars that shops work on. Cheer Up the Lonely Day (00:19:56) Encourages shops to engage with lonely customers and give back to the community. National Tattoo Day (00:20:14) Engaging social media campaign idea involving employees’ tattoos and their meanings. National Ugly Truck Day (00:20:46) Celebrating unique or old trucks associated with the shop and creating engaging content. National Hire a Veteran Day (00:21:48) Showcasing and appreciating veteran employees within the shop. All or Nothing Day (00:22:13) A brainstorming prompt for creative marketing ideas related to repair orders. Campaign Ideas Discussion (00:22:49) Overview of social media campaign strategies for engaging customers. Engaging Summer Campaigns (00:23:40) Ideas for interactive summer-themed campaigns to connect with customers. Importance of Year-Round Marketing (00:24:53) Emphasizes consistent marketing efforts to maintain business during slow periods.
      How To Get In Touch
      Join The Auto Repair Marketing Mastermind Group on Facebook
      Meet The Pros
      Follow SMP on Facebook
      Follow SMP on Instagram
      Get The Ultimate Guide to Auto Repair Shop Marketing Book
      Email Us Podcast Questions or Topics
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our Partners, NAPA Auto Care and NAPA TRACS  Recorded at Vision Hi-Tech Training & Expo, Kim Auernheimer shares insights from managing two shop locations in Brentwood and Monteagle, Tennessee, each with vastly different demographics and market dynamics. She dives into the unique challenges and strategies required to adapt to both environments, highlighting the importance of tailored marketing, community involvement, and a steadfast commitment to customer service and employee well-being. Kim’s story illustrates how strong leadership and adaptability can build a solid reputation across diverse markets.
      Kim Auernheimer, CS Automotive, 2 locations, TN. Listen to Kim’s Episodes HERE. Show Notes Watch Full Video Episode Vision Hi-Tech Training & Expo: https://visionkc.com/ Introduction to the Episode (00:00:00) Personal Interaction with Marcus Lemonis (00:03:14) Challenges in the Automotive Industry (00:05:10) Analogy of Automotive and Medical Fields (00:06:27) Three P's of Business (00:08:31) Market Differences: Tale of Two Cities (00:09:40) Demographics and Market Understanding (00:11:02) Adapting Strategies for Different Markets (00:15:35) Customer Service Approach in Monteagle (00:16:34) Community Engagement Strategies (00:20:06) Challenges of Remote Management (00:21:00) Marketing and Community Presence (00:22:00) Geofencing Marketing Tactics (00:22:39) Billboard Advertising Insights (00:24:04) Reputation Management Challenges (00:28:06) Building Customer Trust (00:29:56) Employee and Customer Care Philosophy (00:32:47) Business Name Evolution (00:33:28) Customer Experience and Joy (00:36:07) Upgrading Facilities for Service (00:36:29) Importance of Cleanliness (00:38:03)
      Thanks to our Partners, NAPA Auto Care, NAPA TRACS and Automotive Management Network Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/           Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      Episode 217 - Going From Management to Ownership At A Tire Shop with Michael & Anna Bellevue
    • By MikesPlaceAuto
      Hello from Montana. Longtime mechanic/technician, first-time shop owner. Reaching out to many sources for information and advice. Small shop in rural setting, specializing in electrical and electronics. Thanks for any good words. Mike


  • Our Sponsors

×
×
  • Create New...