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Are you ready to sign up and become a Hybrid Shop?

Joe Marconi

By Joe Marconi
in Auto Shop Franchises

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Tires Too Collaborator

Tires Too

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Joe, it is very cool technology. I did look into it, but I just did not see enough potential for me in southern NH. I have not had a customer with a battery failure that was out of warranty yet. Also there is now some aftermarket availability on these batteries.

flacvabeach Community Regular

flacvabeach

Posted
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I think my family and I might have been among the first handful of shops to sign up as Hybrid Shop franchisees. My son and his wife heard the initial pitch at the ATI Superconference two years ago and were sold on the underlying concept. Later that year we attended the initial training that was held at Curry Automotive in Northern Virginia and stroked a check for the down payment. That summer our equipment was delivered (they do offer financing) and Dr. Mark Quarto came to our shop with Bob Curry who is now President of the operation and trained us. We have an exclusive agreement for a 25-mile radius, which really gives us the southern half of Virginia and North Carolina because there is not enough hybrid population nearby to support another shop.

 

The battery conditioning process really works, except for Hondas. We were seriously disappointed early in the game to find that Honda batteries would appear to condition, only to come back in a few weeks with codes for pack degradation. Turns out the Honda batteries are technically inferior. Add to that the fact that they have inadequate cooling that causes them to be damaged during normal operation. Toyotas, GM, Ford, on the other hand are very robust and reliable and respond well to conditioning. Bottom line is that the Hybrid Shop process produces a reliable, balanced documented battery that operates at approx 95% of original capacity. I have yet to see an aftermarket battery, including the dealer replacements, that can make that claim. The margins on this work are, well, fantastic. Add to that the fact that this is very clean, safe work that techs love.

 

But the real benefit is that this brings a whole new population of customers to your shop. Hybrid owners, more than any other segment of the driving population, have felt that they are shackled to the dealer for all of their repairs and maintenance. We now have a steady stream of hybrids coming to us for routine maintenance and repairs.

 

The Hybrid Shop management has been supportive, but hands-off. They don't place any demands on us that are typical with a full franchise (this is a fractional franchise). Technical support is excellent. Dr. Quarto and his staff at AR&D are extremely well versed in all of the technical aspects of this process and respond to tech queries very quickly. They offer (and expect you to attend) SAE certification training in hybrid/electrical technology.

 

I was talking to another shop owner who was considering joining and the subject of the cost of the equipment came up. I tossed out the current figure and he said "Huh, that's an alignment machine!" He was right - most of us consider that a necessity and we make it happen.

 

Anyone considering doing this who wants to talk one-on-one about our experience can email me at [email protected] and I will provide my cell phone number. I'm just thankful that I'm not going to wake up tomorrow an find that my competitor down the street beat me to this opportunity

  • Like 1
Gonzo Grand Master

Gonzo

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I've talked to the Hybrid shop people many many times. I even attended a class on using their equipment to refurbish the battery packs. Very likely this will be something to think about. They did do a case study to see how many hybrids are in my area and their numbers came back very strong. So, I did my own checking, calling dealer friends, and sales people. The numbers I came up with were totally different. In fact, the number of sold hybrids was half of what they showed.

 

The next thing I did was check with the service departments at some dealers. Very few service calls on the batteries or the regenerating systems.

 

My opinion; "This is with out a doubt a great concept. However, I don't think there is a market large enough yet (in my area) to invest that much money into it. The mile radius guarantee they offer sounds great, but what it states is that they will not put another hybrid shop within your area, but that doesn't stop a competitor to open up a hybrid store from another company doing the exact same thing next to yours."

 

If I was younger, and had the ambition to stay in this biz for another ... say 20 years ... I might consider it. But, for the time being I believe there isn't enough market for it unless you're in a large city area with lots and lots of these cars.

 

An example for ya; I had a hybrid (Honda) in a few weeks ago with codes for a failing battery pack. The car had over a 100k on the odometer. Once I gave him a quote (a very low profit quote too) the owner couldn't see putting that much money in a car with that many miles, even though I did my best to explain to the owner that the engine doesn't have that many miles on it. There has to be a change of attitude by the consumers out there that a car with 100k is worn out and worthless when it comes to these hybrids resale value. (that includes banks and insurance companies).

 

FYI - O'Reillys is selling recond. batteries at a price similar to the refurbished hybrid shop batteries too.

 

Is it worth the 69k? That's a big question... As fast as technology changes I'm also concerned about how long their equipment will be viable and not become obsolete. Hard to dish out that much cash. I'm waiting to see some return of investment dollars before I do anything.

  • Like 1
flacvabeach Community Regular

flacvabeach

Posted
Posted

THS did give us an estimate of the hybrid population in our franchise area. I think it was a little bit optimistic and I don't have any idea where they got the data. We are not overwhelmed with hybrid business, but it has turned into a nice profit center for our shop.

This conditioning process only works on nickel metal hydride batteries. Toyota and others seem to be locked into that technology for at least the near future. Some of the new EV / HEV vehicles are starting to use lithium ion but it's going to take a long time for that technology to populate the market. In the meantime, Prius batteries are aging rapidly and Prius owners seem, more than other car owners, willing to spend big chunks of money to keep their little babies going. One of the first cars we did was a Gen 1 Prius that we converted to gen2 cell packs and replaced the transmission to the tune of 3500 dollars on a car with 250,000 miles on it.

Our Honda customers seem to be split 50 / 50 on their willingness to spend 2800 dollars to put a new battery in their car, but we have done a few of them.

You could go broke and crazy trying to second guess your customers' willingness to spend large amounts of money on their car. You give them the estimate and wait for the answer. Sometimes the answer will surprise you.

  • 1 month later...
alfredauto Experienced

alfredauto

Posted
Posted

I work on hybrids, no membership fee. Prius batteries last what, 150k-200k miles? Dorman makes a reman, takes an hour or so to install. Simple really. No forklift or electrician needed. I think when hybrids first came out there was a lot of mystery, now anyone with YouTube knows you take out the fuse and the bolts and your done.

flacvabeach Community Regular

flacvabeach

Posted
Posted

Alfredauto is correct. Anybody with tools can remove/install a hybrid battery, but any shop that goes into this without safety training and equipment is facing a major liability. Keep in mind these are lethal voltages we are talking about. When you turn off the master switch, the car is supposed to self-discharge - but does it? If not, those lethal voltages are still there.

 

With THS you get that training and more. Training covers control systems, inverters, DC to DC converters as well as drivetrain and battery theory. A week of theory and practical for your techs plus you get to send a tech to SAE cert training. Then you have ongoing access to expert support people.

 

As regards aftermarket batteries, I challenge any aftermarket supplier to let me run one of their off-the-shelf units through the THS testing process to document whether it is in balance and capable of supplying rated power and energy. Every battery I condition comes with documentation to show that it is performing at 95% of new specs. Also, these batteries discharge while sitting in storage. The battery should be charged to 60% of full capacity just before installation.

 

It's analogous to engine replacement. An aftermarket battery is like a used engine from a junkyard you trust. A THS battery is like a remanufactured engine from a reputable machine shop/supplier. Each cell pack has been tested for total performance (not just voltage) just prior to installation. That performance is documented and the warranty is backed by a nationwide chain of THS shops. The THS process and equipment let you control the quality of the product you are installing.

 

There is a lot of discussion on this forum about providing value for our customers. This is a classic example.

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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
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      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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