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Posted (edited)

So Right now I am in a 30x30 space with a small office and one lift. We do everything from engines and transmissions to power steering lines and alignments. At the end of July we will have an addition completed to our building that is going to be an additional 30x60 I was thinking 15x30 for office and 45x30 for 3 more bays making it a total of 4.

 

Here is my conundrum, The guy that i use to take care of my transmission stuff is the tranny guy at the dodge dealer by day and moonlights as a Transmission rebuilder. This transmission rebuilder has asked me if I would rent a space to him in my addition. Now he is a hard working S.O.B. that wants to open his own shop one day but needs a stepping stone. He is also the kind of guy i would let run my business.

 

So the question is do stick to my plan of a total of 4 bays and a larger office or 5 bays and a small office. And would you allow someone like that to work out of your shop.

 

Also on average how much space do you give each of your technicians. I was thinking 2 techs to 3 bays would make for a nice work environment.

Edited by John Pearson
  • 2 weeks later...
Posted

The issue of renting to someone is the potential impact his work may have on your business. The customer will not separate his work from yours, they will just identify the building and your name. If he does a job that doesn't meet your quality standards, you will pay the price. I would either hire him to do transmission builds for your customers, bring him on as a partner, or help him find a small location somewhere. These situations always look good in theory, but they always seem to end up in a bad way. If he is doing work for his customers, you have no say in the quality of his work, when he works, or how he works...he is renting the space. Safety, housekeeping, tools, money, customers, and time are all factors that matter a great deal. Basically its like getting married to someone who squeezes the toothpaste, when you prefer to flatten it from the bottom. If you do decide to let him rent, I would have all this lined out in a contract or agreement.

Posted

The customer will not separate his work from yours, they will just identify the building and your name.

 

I completely agree with this. It is only a matter of time before reviews for his work start showing up on your review pages.

 

What you want is a clean, consolidated brand name in the customer's mind for you location. i.e. "Let's go down to Pearson's on the corner, they do great work." Instead, you are going to get, "Let's go down to that spot on the corner where they do transmissions and some other auto work."

 

Believe me, I know. When we bought our shop, 3 bays were an auto shop, 2 bays were smog inspection, 3 were a window tint shop, and 2 were a car wash. Try to reconcile that in in your mind ............... the outside of the building looked like someone barfed a rainbow of vinyl logos against it. 4 competing brand names with multiple offers for every service imaginable.

 

I have rented part of my shop before and from experience I am going to strongly suggest this.... DON'T DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

I'd love to hear some stories on this one.

  • Like 1
Posted

 

I completely agree with this. It is only a matter of time before reviews for his work start showing up on your review pages.

 

What you want is a clean, consolidated brand name in the customer's mind for you location. i.e. "Let's go down to Pearson's on the corner, they do great work." Instead, you are going to get, "Let's go down to that spot on the corner where they do transmissions and some other auto work."

 

Believe me, I know. When we bought our shop, 3 bays were an auto shop, 2 bays were smog inspection, 3 were a window tint shop, and 2 were a car wash. Try to reconcile that in in your mind ............... the outside of the building looked like someone barfed a rainbow of vinyl logos against it. 4 competing brand names with multiple offers for every service imaginable.

 

 

I'd love to hear some stories on this one.

 

 

Your wish is my command!

 

Back when I first started out I had absolutely NO IDEA what I was doing. At the time we were in a 3 bay shop converted gas station very small, 1500 sqft which is still not insanely small for my area. The rent was high at $3800 and I we were not doing so well financially so I decided to rent out a bay. The bay was actually an addition to the building and it had its own motorized gate. I put an ad out on craigslist and found someone to rent the space for $1600 a month.

 

At the time we were only working on BMWs and this person told us he specialized in Nissans, Mitsubitshi and he worked on some BMWs. We had a discussion about how since we only worked on BMWs that as long as there is no interference with our work and customers there shouldn't be any problems. Amongst many many many other things I had to deal with between this tenant and I, the major problem was that people would confuse out shop with his. BMWs would pull up and by the time their vehicle was on his lift I would walk outside look at the car, look at the customer and shake my head. The customer would then do a double take and realize he went to the wrong place!! I had discussions, arguments, etc with my tenant and he didn't seem to understand what he was doing wrong. I'll never forget what he said, "I am not going to turn away a paying customer."

 

In 3 years he ended up going with long bouts of no business, getting physically assaulted by one of his customers and generally sat around for months with no work. He was also 1-2 months late on his rent due to his lack of business and the best decision I made was to not give him any advanced notice when I finally left my old location otherwise he would have ditched me on even more rent.

 

Moral of the story is DON'T EFFING DO IT!

Posted

We rent to a transmission rebuilder and that is all he does. He runs a reputable business and has insurance and is busy all the time. The building has 7 bays and his two were added on specifically for his transmission business so there is a wall between the two business with separate entrances. It has worked out well for both parties and we both send each other business.

Gary

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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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