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tyrguy

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    133
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tyrguy last won the day on October 20 2017

tyrguy had the most liked content!

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About tyrguy

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    Advanced Member

Business Information

  • Business Address
    955 Singletary Drive, Streetsboro, Ohio, 44241
  • Automotive Franchise
    None
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    Firestone
  1. Anyone have a repair plate ?

    39 years doing this and I have no idea what you are referring to?
  2. Employees get cost on everything.
  3. I don't agree with those numbers. Most shops I know doing 1.0M to 1.5M have at least 8 employees. We hit close to 1.5M a few years ago with 8 employess. Myself, 2 advisors, 3 techs, and 2 tire changers. Since the 5 car dealerships opened across the street we have declined to 1.1M with 7 employees when my first tech hired in '79 retired in '16. When we were doing the 1.5M my techs were billing over 95% of their hours so there wasn't much more capacity to gain. However, we have since raise our parts matrix and hourly rate but even with that our sales would only increase to 1.7M if we were still billing the hours we used to. When I read shop profiles in the trade mags it appears that any shop doing over 2M has 10-12+ employees. 4M would need at least 15- 20+.
  4. Damage to customers vehicle

    So I talked to the insurance company today. They left it up to me. They said if you feel responsible we'll pay the claim. As much as I wanted to say that I didn't see how in the world it could fall off after 2k miles, I said I just couldn't see any other explanation other than vandalism which I doubted. So I guess they'll be paying for everything except the oil change on the used engine.
  5. Damage to customers vehicle

    Going to handle it. Called my insurance agent and he said it's covered....maybe. If they deem it could indeed be our fault it's covered. If they say we aren't responsible they won't. So it's a catch 22. I'll be happy if they say there is no way it's our fault but then I take the hit. In that case it will really make me look like a hero. On the other hand, if they say it could be our fault and they cover us, it makes us look incompetent.
  6. Damage to customers vehicle

    When it rains it pours. Has anybody ever had an oil filter fall off 2000 miles after an oil change? Yesterday a good customer's car was towed in. His daughter was driving it and she started to smell something "hot". She thought it was overheating so she pulled into another shop. They racked it and found the oil filter was gone and there was no oil left. They put a new filter on and filled with it oil but of course now there is a rod knock. My tech of 36 years just can't believe it could happen after 2k miles. I tend to believe him but I don't see any other option but to put an engine in it at no charge. Comments?
  7. Damage to customers vehicle

    This happened this week. A customer had their vehicle towed in...cranks but no start. They didn't call in advance or leave a note. We just find this 09 Caliber in our lot, unlocked with the keys in the ignition. My service manager goes out to the car and opens the door to get the mileage and such. Unfortunately, the guy had a door hinge problem that would only allow the door to open partially. When my service manager opened the door fully, the front of the door and the back of the front fender had a disagreement. Damage done, our fault according to the customer. I told him to get an estimate and we'd work something out. Probably be covered by insurance less the deductible. Since the hinge will be repaired as well I'm debating making him pay something.
  8. No real health issues but it's only 4 months.
  9. Damage to customers vehicle

    Negotiate. They needed a windshield before it ever came to you and he admits that.. The guy was going to need to replace it anyway so have the job done for him and have him pay 1/2 the retail price. He should be pleased as punch about that.
  10. I'm with ya Xrac, I turn 65 in April and I'm looking forward to Medicare. My insurance just took another jump of $100 to about $950/mo with a 4K deductible. I expect to see a decrease similiar to yours.
  11. And one more thing as long as I'm on my rant. Consider this..... At an average of 38.94/unit versus $20/unit, I can sell half the units and make the same amount of profit. Lastly, Whenever I think that just maybe I'd sell more tires by lowering my price I do this calculation. Lets say I lower my retail price 10%. JUST 10%. In this case that's about $16. That means my profit per unit is now $22.94, a 41% decrease. That means my friends that I now have to sell 226 units instead of 133 units to make the same profit. That's 70% more units with just a 10% retail price decrease.
  12. It always amazes me why guys use a parts matrix and get a hefty GP on parts but are willing to sell tires at cost or a few dollars above. If you are marking them up $20 as you say, which is indeed the price of a mount and balance, then you are selling them at cost. Why in the world would you do that? Hell. at least mark them up $30 so you are making $10 on the tire plus a mount and balance. As for putting internet tires on, you would make the same amount of money and not have to stand behind the product. Sounds great to me. Thru yesterday, we have sold 133 units this month, at an average profit of 38.94/unit. That's $155.76/set. That's a whole lot better than $80/set. And don't tell me it's because I don't have competition. I can throw a baseball from my bays into a Super Walmart's bays. Okay I'm exaggerating, it's probably 150 yards. And I also have an NTB 1/2 mile down the street. Lastly there is another strong independent 1.5 miles up town. Using my matrix that I have outlined on this forum, we can compete with anybody. I just tell the customer that we will meet anyone's price if the total package [lifetime tire services] is comparable, and we do. Sometimes we have to knock a few bucks off to compete but it's not much. The only thing that still grips my ass is that they won't level the sales tax field when competing on the internet. It's coming though and that will hit the Tire Racks of the world hard. Lastly, I never consider the back end manufacturer's money into my markup. That's mine, period.
  13. credit card machine fees

    That's not what he was referring to as "scam". He said " Everyone pays the same % for the bank /service charges and each card has different processing fees. What you pay over that is the scam ." So what he's really saying is every service passes the same bank costs along and what you pay over that is their profit. Actually, not even net profit, just gross profit. He said nothing about contracts or fee creep. My comment was just that you always hear people refer to some industry's charges as a scam or ripoff when they have no idea of the costs of doing business in that industry. As we all know, it happens to us all the time.
  14. credit card machine fees

    Kind of funny how whenever someone talks about a industry they are not part of profit is referred to as a "scam".
  15. Tire Road hazard

    Who says tires have to be a flat markup. Although we use a few tire matrixes for our program brands, they only vary by a few points. But here is a generic tire matrix we use. Cost 0-49.99 /63, 50-74.99 /66, 75-99.99 /69, 100-124.99 /73, 125-149.99 /74, 150-174.99 /76 and so on. Resulting retail prices include valves, mount, balance, alignment check, taxes, lifetime rotation, balancing, flat repair and road hazard. Obviously when quoting tires it's important to point out everything that's included. So, last week the average tire that went out of here had an average invoice cost of 97.89. We'd retail that tire for 141.95. Profit on a set of 4 would be 176.24. Now, we run sales every month where we give "instant counter rebates" of 40-60 off a set which might bring the profit per set down to 136.00-116.00.


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