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I was a one man shop with 2 bays for about 10 years and just last year hired my 1st tech. I made money from day one but my overhead was extremely small compared to yours. I started out small with no debt and bought tools as I went along. I also didn't have issues with having enough work. My focus has been quality and honesty. Sounds like you need different customers. Whenever I have someone complain about price I usually don't end up working for them. They are the price shoppers and are only loyal to their wallet. Don't let them persuade you to lower your markup, that's a dead end street. You may need to raise your prices which may scare those price shoppers away and attract good customers that don't ask how much is it going to cost but when can you do it. If you could bill 30 hours a week that's $14400 a month. Some weeks I would bill 30 and some I would be able to bill 40 plus, just depended on the jobs. It takes some serious organization when you're by yourself to bill 30 to 40 a week. I usually don't work late either. My production went up when I switched to Shop-Ware for my management system. Wish you luck!

I purchased my shop from my friend and boss in 2000. There were 4 of us. My brother wrote service, 2 techs and myself. In 2005 I joined ATI. Today there are 13 of us and we purchased our own property in 2006. With the cost of overhead and the high rate of inflation you must find a way to charge more for your service. We do not quote jobs broken down. We quote the finished job. Do not make it easy for people to shop around. We charge $48.75 per 1/4 hour. Seems a lot less than $195 per hour. We use a parts matrix. This allows you to charge more for low price parts. a 20 cent fuse should sell for $2. A 10 X mark up. Obviously you can not charge this for a $100 part. Your average margin at the end of he day needs to be above 50% and shoot for 65%. How are you calculating your margin? Part cost X 1.5 is not a 50% margin. Part cost divided by decimal percent yields the correct margin. $12.50 cost divided by .50 % margin is $25 . You cannot survive on the suggested margin of the parts store or dealer. Remember your competition is manipulating the hours charged for jobs even though they may have a lower rate. Also if you cater to cheep customers that is all you will ever have. Never sell on being cheep. Always sell on the high quality parts and skills you provide. You must take off your mechanic hat and put on your businessman hat. If you do not learn how to charge appropriately you will never grow and likely not survive.

OK, but you can take care of a customer AND make a profit. EVERY customer knows a business HAS to make a profit. And the profit is not just to pay the bills plus some fun money. There's health insurance, money for an emergency, money for new/updated shop equipment, paying an A tech, eventual retirement, ... and ... Why have the headaches of business ownership with just a normal paycheck???

First off, advertising isn’t the only thing. Stay on top of your social media. And the pictures you post don’t have to be just car stuff. But maybe suggest/encourage scenic drives. Weekend vacation spots. How about lifestyle posts? · Are your service advisors doing all they can to provide an amazing customer experience? Agreed, but I would expect some “amazing customer experience” ideas. See my article in Ratchet and Wrench magazine on tips for making your next customer interaction fun—and memorable. https://www.ratchetandwrench.com/shop-life/columnists/article/33005755/broski-its-about-the-customer-experience · Are multipoint inspections being done properly? I can see that, but I don’t understand why that even has to be said. I’m old. I started working on VW bugs in my back yard. My first real job as a mechanic was at a Porsche only shop. We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car. Where practical, we road tested every car before working on it, to check the handling, braking, alignment, acceleration, gauges, etc. It seems every 6 months to a year, an article talks about doing DVI’s. Why? The only reason that makes sense NOT to do one (from the technician’s point of view) is if the service advisor takes too long to get an approval and the tech has to wait. · Are your service advisor proactive with making sales and trained properly to handle objections? Quit with the “sales” and the “selling” and start advising. Advising what’s best for the customer, which is probably best for the shop as well, IF you’re dealing from a relationship perspective with “customer/friends.” Customer friends who KNOW you have to make a fair profit, just like every other business. And you won’t get nearly as many objections.

We provide major equipment and some specialty tools, but for the most part, the technicians are responsible for providing their own tools. Having said that, Offering a spiff or a bonus of a credit on the tool truck can be a great incentive to increase performance or productivity. Especially for a tech in his first few years trying to build up their tool collection.

Joe, I can see that for invoices above $2k or $3k, if the customer knows ahead of time. I see how that makes sense to the business owner (and their accountant). But I’ll bet to the customer for the lower invoices, you’re trying to eek out another $10 or $15. AND, they could think, where else are you eeking out an extra few bucks (or more)? Apparently you are not profitable enough to absorb that. Why? Not enough (good) customers? Why? It’s a convenience for them. So they’re stuck paying that or write a check or go to the bank and get $1000 in cash??? Plus many get cash back or flight miles, which you’re also taking. Remember searching airline prices, comparing prices, making your decision, only to find out at the very end there are additional charges? Taxes, fees, and those darn baggage charges. Did you like that? I doubt it. I think credit card fees fall into that category (for the customer).

I have done my own for years with good success. The past 7 months or so it seems to be falling off. My spend is almost double for the same results. I am curious to see if anyone offers advice in this thread.

What matrix are you pricing your parts at? Our company marks up a minimum of 50-65% on aftermarket parts, 30-40% on special order and dealer parts. (We are located 10 minutes from D.C.). We offer a 2 year/24k mile warranty and remind our customers that we offer that warranty only for parts that we supply, no warranty on customer supplied parts. Our labor rate varies from $149-185 depending on whether it's a standard vehicle or a larger fleet vehicle, but we also keep our labor rate a bit higher as a cushion to cover payroll, parts, rent, etc. and also so that we can offer our loyal customers a 10%-15% discount depending on their affiliations. We work with multiple different referral and affiliate programs such as AAA Automotive Program, Costco Auto Care Program, and RepairPal for referrals as well. Maybe try targeting a specific consumer in your area, ex. 1/2 off oil change for local teachers to pinpoint your desired customer base. You could also get certified to become a state inspector, or Uber/Lyft if you have them in your area. Hope 2025 is a great year for you!

I did the same exact thing. Sometimes we need to take the emotions out of the situation, and do what is right and for the greater good.

I would say yes, but my issue was I kept a tech to long because I liked him, he was a nice personable guy, just took advantage. I had several talks with him but he continued his non productive ways. Issues that arise from that are: the other guys in the shop think that they can do the same because he got away with it and they did not see me doing anything about it. So you could say this is a culture issue from poor management.

We switched to Tekmetric 1 year ago. It is ergonomically easy to use. Most other shops around this area have done the same. We previously had and liked Mitchell, although we like Tekmetric overall better, as it seems to flow better once used to it. A steeper learning curve(than Mitchell) for me, but then everything seems to be increasingly so these days! The other users like it, and learned it quicker. Like a microwave oven, we probably only use and need 25% of what it can do overall. Previously had Mitchell 1 for about 10 years. 2 others for about 7 years each before that. All seem to lose support when something changes or they get acquired and purchasing company vision changes (like a lot of things). Hope Tekmetric hangs in there for a while.

The shop that I own now was using MItchell1 and after about 6 months we switched to Tekmetric as our system. Took about 2 weeks to adjust and would never look back. The online based systems work so much smoother and integrate to so many different programs that make integrating your marketing, followup and communication almost seamless. I like that I can pull my shop information up on almost anything that has an internet connection.

Good afternoon, I am using Tekmetric right now, I have used NAPA and Alldata in the past. I like what I have but... always a but, the cost is out of control for these monthly subscriptions. I am paying around $400. with the tire add on. Then you add on CRM and it another $300 per month. I am very happy with the program and all of the features. It flows well, easy to train new employees. It is just the cost of these things is crazy.

I just dealt with a warranty company for a small amount, $400 and it went very smoothly. He said his higher-ups said not to be too picky for small amounts: not worth it. Don’t know what "small" means. Under $1000? He agreed to MY labor time. AND he somehow “saw” our labor rate at $145. I said I don’t know where that came from. We’re $185. He easily agreed. And agreed to my parts price. We’re $20 over normal labor. YEARS ago a warranty guy said I could post a sign that says: Insurance labor rate is $$$.

We deal with them. Shop rate is $20.00 per hour more and we add the time we have to hassle with them to the bill. Also inform them and the customer that the customer has to pay us what they will not pay. I do not take any crap from them at all.

Since felt I got lost in the writing, got a little curious and ask ChatGPT about a reflection and meaning of my statement(above) this is what I got. The reflection in this statement speaks volumes about your core values, the ethos of your business, and your role in building and sustaining its reputation. Here’s a breakdown: Commitment to Customer-Centric Values: You emphasize genuine care for the customer and their car over sales. This reinforces the integrity of your shop and demonstrates that trust and quality are your priorities. Highlighting honesty and clear communication reflects your belief in transparency, which builds long-term customer loyalty. Transitioning to Leadership: You acknowledge your journey from being hands-on as a service advisor and tech to focusing on the vision and strategy for the business. This shows growth and a desire to scale while staying true to your principles. Specialization as a Strength: By branding yourself as a brake and suspension specialist, you’ve carved out a niche that sets your shop apart. Your focus on solving problems rather than pushing unnecessary sales aligns perfectly with this specialization. Marketing and Adaptation: Your willingness to adapt through seasonal advertising campaigns and platforms like Google and social media demonstrates your understanding of modern marketing and customer outreach. This also shows a balance between traditional values and innovative strategies. Persistence in Growth and Reputability: Starting from scratch and consolidating your shop as reputable reflects your resilience and dedication. The 12-year journey, despite uphill battles, mirrors your commitment to building trust and providing consistent quality. Data-Driven Success: The mention of a 13% average sales growth over the past five years shows you’re mindful of metrics and measuring success, while understanding that external factors like the economy can influence outcomes. Personal Touch in Tough Times: Sending personal text messages to follow up with customers demonstrates how deeply you value relationships. It’s an excellent example of going above and beyond for customer engagement. Key Reflection: Your business thrives on integrity, specialization, and a commitment to customer care. The success you’ve built is a direct result of your ability to balance passion for service with the discipline of running a business. Staying grounded in these principles ensures continued growth and loyalty, even in challenging times. This reflection captures the heart and soul of your shop’s identity. 2/2 4o

Business has slowed a bit for us, so I decided to look at me. I have gotten lax in making sure our processes are being followed. The techs have slowed a bit in getting their next jobs, they got a little lazy in the vehicle inspections and documentation. (A missed low brake measurement is a big deal.) So I wrote a new SOP for documentation while working on a vehicle, it includes road test expectations, post job discussion with the front office, etc. We just need to get better at finding and selling work. It was all on me, the boss.

We used to feel the same way ,that we had to accept what the insurance was paying. Now we take all the aftermarket warranties. We inform our customers that the warranty will not pay for everything and that we will deal with them and then let the customer know what the difference is. The customer is responsible for that difference and if they want the repair then we move forward, otherwise they are charged a testing/inspection fee that they agreed to at drop off and they pick up their vehicle. Everything is explained up front and we don't have any problems. Some companies insist on sending the parts and we refuse but usually there aren't any issues.

I would say WOM is just as effective as it was. But that doesn’t mean don’t use Google or social media. Here’s an example that surprised me. I was chatting with a first-time caller who was referred by a good customer. As we were talking, I suggested he check our great reviews. There was a slight pause. He said he’d already checked our reviews. Wow! Even after being referred. So yes, BOTH are valuable.

We chose not to deal with aftermarket warranty companies at all. Not work the hassle for our small shop.

During the last half of my career, I learned to not accept work for ANY extended warranty company for reasons too numerous to mention. I would typically steer the customer towards one of my competing shops that would accept extended warranties. Problem solved.

My first time the topic of a radio/music came up was over 30 years ago and I was an employee. Most transmission shops have a "building room" and transmissions aren't built in the open shop. I have always preferred to NOT HAVE any radio/music when building transmissions. To me, it's too distracting. I prefer total silence. The only noise I would hear when building transmissions was only the sound of blowing parts dry or the parts washer running. I've always been that way. Ever since I became self-employed, I let the employees work it out between themselves. It has never been a problem that I'm aware of. I've never seen the use of earbuds or headphones by any employee. Maybe I'm just lucky. What HAS been a problem is when an employee performs a road test, they sometimes change the customer's radio station to their own and/or turn the volume up so loud, it blasts the customer's eardrums. I had to institute a "don't mess with the customer's radio" policy. It's bad enough when they change all the customers' mirrors. Over the years, I finally got smart and included my radio/mirrors policy in the employee manual.

The Most Badass Way to Get More New Customers for your repair shop Without Wasting a Dime on Advertising This is The Most Badass Way to Get More New Customers for your repair shop Without Wasting a Dime on Advertising…even if your last promo, postcard orf digital ad was nothing more than a Big Waste of Money! I’m hosting a brand new LIVE Training Sunday, September 29th at 7:00pm Eastern. It’s totally free and you’re welcome to join! I’ll show you things nobody else will! I promise Register here: https://carcounthackers.com/badass Can’t wait to see you on the call! Matthew “The Car Count Fixer”

The 2024 Ratchet and Wrench Management Conference has already taken place. You can put the 2025 conference on your calendar... OCTOBER 8-10, 2025 Renaissance PHOENIX GLENDALE RESORT GLENDALE, AZ

Actually, I was recently on a zoom meeting hosted by Joe (Marconi) and the focus was about selling service and maintenance. The discussion quickly escalated to booking the customer's next service appointment. In the discussion, people talked about educating the customer... you know... why do I need my brake fluid changed or flushed; do I really need to get my oil changed every XXX so many miles, etc. I couldn't agree more! In fact, just staying in touch with the customer is HUGE! Current stats prove that over 68% of repair shop customers leave businesses because of INDIFFERENCE! In other words, they think that you don't care! My comment was based on the fact that because today, video is so easy, could anyone send me a link or show me the bunch of "customer support videos" they made - and I'm talking about YouTube Shorts - 1 minute or less - made on a phone- where you can say (and show) a customer... this is what happens with whatever... this is what it looks like... and here's how to prevent it! Guess what? Nobody had anything! (Boy... that was a surprise!) Lot's of talk - no action. Then they wonder why.... Look, I could go on and on... but I've got work to do. As for your comments on DVI and pictures, I don't know a shop using that technology... I run a Text Message platform that is guaranteed to put car count in the shop... (as in it works your your money back guarantee!) and I can't tell you the struggle it is to get repair shops to even listen! Matthew "The Car Count Fixer"

Ha! YouTube as a sales tool! 100% Agreed! Just can't understand why repair shops don't do a lot more of that. It's not a quick win, but people get to know, trust and like you... then they bring their car in for service. Sheesh... sometimes feels like you gotta literally draw it out for them! Thanks! Matthew

Now me! I got sucked into the photography game. There's always a new lens, filter or something. Almost as bad as golf! Anyway, I move around local car shows and try to create the picture that the car manufacturer may have used when they were trying to get you to buy the car! Expensive hobby, but I enjoy it! Matthew

My shop is air conditioned. It adds approximately $250 per month in the summer to the electric bill. When the heating system was replaced it added about $6500 to the cost. My previous shops were not air conditioned, we did try the swamp coolers, fans etc. When it gets hot like it has been some days we saw a 50% loss in productivity, normal hot days maybe 15 to 20% loss. Now we have no loss in productivity, we have happy employees, a happy boss and a happy wallet. To see the employees happy not complaining and productive really is priceless.

In regard to employee retention.... it depends upon the employee's attitude, but I'd say it's a net win for the shop. We've been doing the tool allowance for the last 6 years. New guys, especially young guys can be a little funny. We try to hire people in their early 20's (Gen X-ers) which means it's inherently impossible for them to see the big picture. Things like KPI's, profitability and efficiency are not even on their radar much less what it truly takes to build on a career and self-reliance. We try to teach and mentor them on every aspect of not only our business but their career as well. Taking a young man and opening his eyes to the monumental scope of our business is no small chore. Nor is opening his eyes to forward-thinking the scope of his career and his life in general. If a guy can be observant, see the big picture and make it past the first year, then they start getting a little hungry for that allowance and want to see the 2nd year through. By the time the 2nd year is up they should be taking more notice of how well the rest of the shop is kept equipped, how bonuses are paid out when we surpass our sales goals and how they can improve their situation at the shop through their own initiative. We pay hourly at our shop and work as a team. On days where there is more work than a man can say grace over, the best suspension man does suspension work, the best AC man does AC work, the best diagnostics man diagnoses. On days where there is not enough work to go around, the best diagnostics man or the best AC man or the best suspension man will teach what he is doing to anyone with an interest in bettering himself (and we notice who is trying to better themself and who isn't). Also, nothing is below any man's pay-grade. If I need one of my L1's to do an oil change because my B-techs are hoofing brakes and ball joints, then the L1 does the oil change.... and an L1 level PMA. Where the teamwork pays off is at BONUS time. Through the years we have deduced what annual sales figure we need to achieve to cover all expenses and make a nominal profit. Once we've achieved that goal, each team member receives a 3%-5% bonus for every dollar in sales beyond that number. We also pay for ASE Tests and give pay raises for successful passage of the tests. The mechanic needs to take the initiative to study and schedule their tests, but they can ensure a yearly raise if they take an interest in becoming a professional, well-rounded mechanic. On the other hand, if a new hire turns out to be your average booger-picking, mouth-breather.... they're not observant, cannot see the big picture or is generally unmotivated he's not going to last long. Unfortunately, there is no avoiding these people. They can ace the interview, talk a big game about how they want to learn, be enamored with the goings-on for the first few months and then totally implode. We've had guys quit after 1 year and we've had guys quit after 1 day.... lol. This is after we've invested a few thousand dollars into bringing them on board and giving them every tool they need to succeed (not just physical tools in this case but training, mentoring, etc). Even in those cases, we're glad to see them go, we pick up our tools to help the rest of the crew with the workload and go back on the lookout for the next potential winner. So, facts of life.... turnover is going to happen, 1 out of 3 hires is going to be a long-term hand, not everyone is going to get your program and appreciate it. We believe our hiring process, our willingness to help our guys be better mechanics, our work hours and our compensation plan are superior to just about anything the competition has to offer and by that standard we don't get our feelings hurt when a guy moves on because we just move on too.

No problem hiring experienced dealer techs as I was one too for 25 plus years, some times they do get a little slow not being on flat rate anymore but with my motivation and guidance they figure it out that what I ask for is to get all work done for the day and done right we can all have a good time at work and get paid well. I have 6 techs and 2 writers plus me and the wife. We do 2.5 mil a year and my guys love me. Life works out good treating customers and employees good.

I still recall a comment from a customer (back in the '90's) re our Porsche repair shop that had a fair location. He said: This place is a "find." We did well, possibly because we specialized in one car brand. That owner also bought the land.

My first body shop gave me the same delemia, spend the big bucks for a great location, or save that expense and go to a lesser exposed location. Talked to an established business owner who I thought knew more than me and I asked go to the best location or on a back road? He said that "IF" you are really good at what you do, priced fairly and run a honest business, folks/customers will search you out. I went the off the main road route and did exceptionaly well. He was right, at least in my case that the money we saved rent wise went into equipment and the best materials I could obtain. We were as new as anything, but after every customer we got more, and allowed us to grow at a nice pace. Might not work for all businesses, but just look at the amount of small businesses on side roads, they all can't be doing poorly. And in many cases, I search them out like folks did for me.

Well, I am old, been in business 55 years. What I have found and continue to do. You know what has worked in the past, because you always monitor it. If it doesn't work, get rid of it. We are on the west coast. As of today, we are up 39% for the year. That includes being shut down a whole week for a storm. I will say it has slowed down to the effect of we were making appointments out a whole week, now we are working on the current week. A couple things I will say is, know when it might be slow and do what it takes. For us it is our rebate check $39.23 mailed out in 3 groups, February, March and April. Our new snail mail to new customers 3 times over 6 weeks. Probably the best thing we have done is have the phones forwarded to either my daughter or me. We have Log me In on our home computers and can make appointments on the week-end. We have almost every month something going on from coat drives to Free brakes with donations for the food bank. Loaners were are biggest thing, especially after Covid. No more rides. We have a really small parking lot. We encourage our customers to pick up as soon as possible . No care leaves without paying.

3:16

Good afternoon... 2nd half of April was challenging... Our Sales were close to last year but not enough. We were short 9%... We're doing google ads and that works for us.. Again, we're a Specialty shop, We're a brakes & front end shop big challenges for this year. We have to keep in mind, we're in a Presidential year. It has been my experience that in this type of year Sales are more of a Challenge. Also every things is very expensive, as consumers, we don't have the buying power, which creates a big problem for the consumer.. I am really good about finding solutions to the problems but at this point my view is very cloudy and gray, which makes it very difficult to have a clear view. We live in an area where there are several small town within our town and we advertise in the surrounding areas. I am going to consider to reduced our advertising area to just within town and see what results throws this approach Thanks JP

Having loaner cars is a large expense but they defiantly are worth having. I have 3 of them currently. I usually just do two year leases on equinoxes as I lease many cars and usually can get a very good deals on them. I have 2024 Equinox EV that I did a two year lease on and just did a one pay that cost $1900 for 2 years. So like free. Insurance is costly on them- around 200 bucks a month each. But I do mostly higher end vehicles- Euro / exotic etc. so my average RO is well over 2K. The best part of having them is never having to worry about getting stuff done and I can schedule customers as I see fit and keep the week rolling. I would not want to put customers in older cars as taking care of those would just be too time consuming etc. So my advice is that it will generate you way more money than the cost of having them and will keep good customers forever. But putting a bad customer in one would be a mistake. I am at the point in my business where I vet my customers and just turn away the problem child loser cars. If the customer does not value me and my time I just tell them they are not my customer base. Time is the hardest think for any shop to manage and wasted time is lost revenue.

I can't tell you how much tax season sucks. Thank god for accountants, they are my best friend when it comes to tax season. Running our auto repair shop is one of the enjoyable experiences of my life except when the tax man shows up 😂. It's all good and well though.

First post, apologies for it being on such an old thread. But I'm with Andersonauto! I've lurked this site for almost a year daily, and I have gained tons of useful information from the members here, but everything that comes from Marksas is pure gold! You can tell almost instantly that he is a man of due diligence and intelligence, and I appreciate that TREMENDOUSLY! I copy most of his posts and save them for future reminders. Marksas, if you did want to compile your entire business plan and philosophy, I would buy the second copy after Andersonauto got the first, and I would also pay premium! Thank you to ALL the members of Auto Shop Owner, this has been an invaluable tool to me as I'm a General Manager cuing up to purchase the business, I've contacted members privately, and everyone has been very helpful . I have to shout out Joe Marconi as well, a man with great experience in the automotive world, and life itself. It's very enjoyable learning from someone with such great experience, who also self reflects and realizes that everyday is a school day and there is always more to learn. I plan on posting moving forward, as I feel I also have gained some knowledge that others might find helpful! Cheers everyone!

I agree with your assessment. While we need to track and improve tech production, I too spent a lot of effort in making sure that we wrote proper estimates, and paid great attention to labor hours per invoice. Great assessment!

As a former shop owner turned business coach, this is a topic that I see often: A shop takes the time to establish their true labor rate, and in many cases, raises their labor rate significantly. While they get a short-term boost in labor profit, the long-term results are mediocre, at best. Why? One of the reasons is that the cost of doing of business has also increased, along with payrolls, and in many cases, at a faster rate then the rising labor rates. And then there is the issue with poor productivity. Has this happen to you and what are your strategies to maintain needed profits?

I couldn't find a place for book recommendations, so I started one. Here's a great list of "must-read" books for business. It's from Ratchet & Wrench magazine. https://www.ratchetandwrench.com/toolbox/educationtraining/article/55242667/strengthen-your-leadership-muscles-12-must-read-books-to-fuel-success-in-2025 https://www.ratchetandwrench.com/shop-life/columnists/article/33006771/bennett-10-must-read-books-for-auto-repair-shop-owners

Effective? Absolutely! And like you said, when you think about it, social media is really the same - it’s word of mouth. And yes, it's really strong and effective! Just look at some of the stats! You’re also correct about building strong relationships too! The only change we’re seeing is that it helps (lots!) when you provide incentives or rewards. After all, everyone is listening to the same radio station WIFM… “What’s In it For Me?” When you think about it, you’re going to buy your customers. So you can pay for a bunch of advertising… or just share some rewards with your customers. When you refer a friend, I’ll give you “X”. Besides, you won’t believe how far a $10 or $20 Subway gift card goes! Really! Just take the reward “outside” of your business, In other words, the reward can’t be a discount off your next service. It’s something OUTSIDE of your business - something they wouldn’t typically get - and it doesn’t have to be really expensive! Happy Car Counting! Hope this helps! Matthew “The Car Count Fixer”

My biggest problem with extended warranty companies is they plug up the shop's production.

Great points, Joe. I think a bigger problem is due to shop owners being afraid to charge what it costs to be profitable. There's plenty of articles stating one facet of inflation: vehicle repair costs. I'd rather have a shop that's not that busy, but profitable, than a shop that is busy, busy, busy, but not very profitable. The "profit" of a shop IS NOT the owner's salary. The profit of a shop is after ALL COSTS AND EXPENSES, including what the owner gets paid. I believe the fear of charging more is the biggest detriment to shop profitability than any other threat. This is especially true for shops that charge/bill flat rate. Flat rate was developed over 100 years ago and penalizes technicians for a shop's inability to market/advertise effectively, aka not busy. IMHO, flat rate no longer applies to today's technology, market conditions, or risks. Most repairs today involve a certain amount of research, reading, and studying; especially for first-time repairs. Has a TSB been issued? There's no flat rate time for that, let alone getting paid for it, but that's the reality of our industry today. Another profit-eater few think about is supply chain issues that tie up a bay or lift. Being a transmission shop, removing the front suspension and/or frame would really cripple our shop's production. My answer to that was to buy 10 engine hangers and 10 car dollies as shown below. It really upped our production and profitability even when supply chain issues befell us. I've posted this video before, but it bears repeating. 0:48 https://youtu.be/XhcSqfBsjJ8

Sim Another great post, Matthew. Similarly to you, I got into shooting videos a lot during the waning years of my career just before I retired. Yeah, the equipment was expensive, but I loved it. I started only after I learned of YouTube in 2006. I started posting on YouTube in 2007. Most of the videos were short, 3 to 5 minutes explaining what I found on the customer's transmission. Basically, I originally started using YouTube as a sales tool. Eight years later, I had over 2,100 videos on my YouTube channel. https://www.youtube.com/c/LarryBloodworth

Reacting To A Viral TikTok On The Cost of Auto Repair

We also provide all major equipment & specialty tools but at our shop we go a step further. My brother and I own our own shop and mostly manage operations and diagnose these days, but back in the day, we were wrenching every day. We still buy tools as though we may lose our best mechanic tomorrow. Our mechanics are free to use anything in our collection as they build their own. We give our new hires a $40/week tool allowance to facilitate their acquisition of tools and we expect them to match that. The tool allowance lasts for 2 years. We keep a ledger of the purchases and if the mechanic is still with us after 2 years, then ownership of what we've paid for on their behalf transfers to them. If they've done due diligence and matched our commitment, then they could have upwards of $8000 in tools of their own (not bad for a young guy who is only 2 years in). If they quit or get fired before the 2-year mark, then the tools belong to us. We also purchase tools with the mindset of a shop owner, not a mechanic. As we have studied KPI's like shop efficiency and the value of 1 minute, if a new tool pays for itself in the time it will save a man in potential labor hours, then the tool gets bought.... period. As an example, I remember a day my brother spent the better part of an hour looking for bolts that would help him pull a steering wheel (our old steering wheel puller didn't have the right sized bolts). In our shop, we know that our potential gross profit is $5.32 per minute per man (not that we gross $5.32 every minute of the day.... but that is the potential gross if work is unlimited). If a minute is potentially worth $5.32, then one hour is worth $5.32/min x 60min = $319.20. In our mindset, if a tool costs $319.19 and it will save a man hour and it will be used many times over….it gets bought. Needless to say, a new steering wheel puller was purchased that afternoon (Amazon: $98.56). Now, providing tools and letting guys borrow whatever they need whenever they need it demands a few things. Honesty: You can't have a den of thieves in your shop, or it will never work. We tell our new hires there is a ZERO Tolerance theft policy and repercussions are swift. We've never had an issue with tools going missing and I think it's because we also tell our new hires to respect a man's tools as you will want yours respected. Cleanliness: Put back what you have borrowed in a timely manner so the next guy who needs it can find it and cleaner than when you borrowed it. Organization: Put what you used back in its proper place. Benefits of shop ownership of a large tool collection: Mechanics appreciate not having to spend a significant portion of their paycheck on tools that won't be worth 25 cents on the dollar 20 years from now. Employee retention: If a mechanic gets a job offer for another couple dollars per hour, but in order to take that job they would have to purchase thousands of dollars in tools, they aren't very apt to leave. Worst-case scenarios: We've been in the business a long, long time. Long enough to once have our best mechanic pass away unexpectedly and long enough to have another best mechanic get himself fired for a reason that we could not overlook. By keeping our own mechanic skills sharp and our own toolbox current, while the worst-case scenario stings, we can still turn out cars and not be in a mad rush to hire. The mechanics learn mutual respect. Not just for us but for each other. Organization: Again, organization. Putting away tools leads to other good habits like mopping the floor, taking out the trash, etc. We get a lot of compliments from customers on how clean our shop is when compared with other shops in the area. It's a point of pride and we love it when the mechanics are in the office to hear it.

First, I applaud your honesty. I don't think there is a shop owner around that has not made a ton of mistakes. We reflect, hopefully learn and move on. I will take another point of view. My goal from the first day I opened my shop in 1980 was to purchase the land. I finally did in 1998. The property became a windfall years later when I sold my company (2 locations). I have to admit, though, that my first location was not the best, but as the business grew it did not impact my growth.

A great message. The customer's perception is the one we need to understand. It does all come down to marketing, and letting some terms go.

Raise your prices and eliminate the bottom 20%. Work less make the same amount of money is one thought on how to move forward. Maybe your labor rate is way too low?