Spence

The money is there it's what you are targeting. We do a lot of the ones that don't know how but like having these modified vehicles. Or with the DIY'ers it's doing what they can't do. Also what they thought they could do and failed at it. Whatever the service is you can say no if it's not profitable. I have done this early in the conversation and found it to work well. If they find out they can haggle the cost of repair you are sunk from then on.

Happy Thanksgiving to all. Remember to thank the Lord for what you have!

Early End of Year Tax Tip 2012

 

With the end of the right around the corner, we all need to think about any items, tools and equipment we are considering to buy in the near future and purchase those items before the end of year to maximize deductions for this year. If cash flow permits it, it is recommended that you act before the end of the year. As always, speak to your accountant to discuss this and other tax tips.

Couldn't agree with you more Joe! I do this every year during October after we look at where we stand once the 3rd quarter is done. This year with the two storms pushed us to this month. Account is headed to our shop Monday. With the management software we already can see much of what we need but depreciation needs to be taken into account.

Have a good Thanksgiving!

Spence

We do performance work for both gas and diesel. It is a different bunch to deal with for sure.

Thanks for starting the thread.

Spence

What do you mean by 10k of expenses off the bat?

I think he is picking that up off of your post. If you look back at post #3 is where the comment is.

After all the posting you focus on this one... OooooHhhhhkay... Both of ya may need to brush up on some business training. That's not meant to be sarcastic but more on the constructive side.

Enjoy your day!

Thanks to all that have served to allow us what we have!

thanks for the reply spence,

 

You're welcome

 

Im not actually buying the business im just buying at the equipment.

 

Got it

 

I would be changing the name of the current business since the owner now focused mainly on foreign cars hense name " Foreign Auto doctor".

 

Which brands does he focus on?

 

I work mainly on Ford products, i would be working on alot of cabs and livery cars.

 

Do you already do these or where is "a lot of cabs and livery cars" going to come from? Depending on how you answer this question would have me giving one of a couple different replies.

 

Im willing to work on any product though. He said he is willing to stick around for a month and introduce me to his customers and so on. I also would be taking over his same phone number too. Hes has his shop open for 32 years in this location.

 

If worked right this could be a good benefit to let you get on your feet

 

I would not be transfering the lease i would be making my own deal with the landlord.

 

Has this been done already and/or at least have it done with at least two conditions.

 

The alignment machine cant be updated anymore hunter told him that was the last update for the machine.

 

It doesn't need to be in order to do an alignment, Camber, caster, toe, SAI, IA, setback, thrust angle and so has not changed.

 

How many are you thinking you are going to do?

 

Spec are available on an information system,

 

If you are going to go newer I would NOT recommend the new target systems! With a lot of places being sucked into buying them you could pick up a good 4 or 5 year old system that if you really feel the need to have the latest spec and be updated.

 

He said his average is 30k a month. 10k for expenses, 10k parts and 10k profit.

 

The numbers do not sound right. You need better proof of this. If you are not buying the business then it's really a mute point. It would play a big point to me in the consideration of if this is a valuable move.

 

Its just him and one other guy thats been working for him for 17 years.

 

Will you be retaining this employee?

 

I have never ran a business i am an auto tech trying to move on from the dealer scene and do my own thing.

 

GET BUSINESS TRAINING NOW!!! Without it your chances are greatly reduced that this will be successful. There are some basics that are not to hard to learn. Picking up 3 or 4 courses are a minimum I would suggest to enter into this thought you have. That's a bare minimum,

 

If you could do me a favor and break up your different thoughts of information into paragraphs instead of running them all together it would make it easier.

Have a good day

Spence

Ok so im in the process of looking at a shop to start my business. I came across a shop that the owner wants to retire.

 

How long has he been at this location and working this business?

 

He has gave me the option to buy all this stuff thats in the shop.

 

Fair enough

 

So basically i would lease the biulding from the landlord and go to work .

 

Is the lease transferable?

 

How much longer is the lease good for?

 

Is there an option to renew the lease at the end?

 

Are there any price increases built into the lease?

 

There is some stuff thats older and wouldnt be much use anymore,

 

Then it is not worth adding it into the price if you can't use it to make a profit.

 

like the alignment machine is snap-on and is really old.

 

It says Hunter on one of the two scans... Did I read it wrong?

 

only does vehicles up to 2001 or something.

 

This is a myth... Why can it not do newer then 2001?

 

Is it because the specs only go to 2001?

 

And the 4 post rack is older and its only does compact cars an f-150 or bigger wont fit on it so i would have to purchase and new rack and alignment machine.

 

I would agree on the rack... Does it have to be new? If so why?

 

He threw me a ball park price of 40k. The shop is set up really nice, shelving and and cabinets full with assorted nuts,bolts,washers,hose clamps exc. He has inventory as well oil tanks and transmission bulk about half way full.

 

All well and good. Look at what is worth something to you and put a value on it. Do your homework here. Look up what a used piece of equipment in the same condition is worth. Be fair in your pricing and compare to what he is offering.

 

I attached two scanned copies of the basic stuff i will be getting for the price.

 

Ok

 

Let me know what you guys think.

 

What is this business doing in gross sales?

 

What is the overhead costing so you can figure out if this business is making a profit?

 

How many employees are working at this location?

 

Will the guy retiring be staying on to help in the transfer of customers?

 

Are the customers vehicles line up with what you are trained to work on?

 

What are your plans? Remember people in business usually fail to plan not plan to fail. The ones that don't plan usually do fail.

 

Have you ran a business before and have training in doing so?

 

thanks

 

You are welcome

 

I hope I have given you something to think about. I'll check in later to see if you have answered this post and any others that may comment.

I wish you well in your quest

Spence

You can not fix stupid!

I've decided to do the following;

I will concentrate my focus and efforts on the things I can impact/control. I will not waste effort bitching about the government and what they are doing or not doing. People still need to have their vehicles serviced, I will concentrate on doing that to the best of my abilities, at a price that allows me to make a living and profit.

I know this is simplistic and some may say naive, but I will not become a victim by not concentrating on the things I can control and blaming others for my troubles.

Sweet! I like it

On Saturday we installed a cooling fan assembly in a 2001 Honda Accord as a fix for an overheating problem. I received a call this morning from the young lady saying that on Sunday she noticed a strong smell of gasoline in her car. I told here I couldn't imagine that anything associated with the repair was the problem but to bring it in and we would check it out. She brought her car in and we found the problem. We found a can of gasoline in the trunk leaking. She is blonde!

I once got a man who dropped his Chevy S-10 off to find out why the AC didn't work. WE found out that the truck he bought during cold weather never had AC to start with.

You have issues with the water in your area?

She did not have the invoice with her from the dealer, but she said that she did everything that was listed on the dealer 15k. She would not tell me what she spent, but said it was "a lot".

I think it was a good move to back off a bit when talking to her. The comment she made as "a lot" speaks volume! I doubt she feels it a good value. This may be the angle to go at.

Give her a week and make a call to show her you have been thinking of her and wanted to thank her for taking the time to share. It'll keep your face in front of her as a caring shop owner and the dealership thought she has for what it is. You have a leg up on the dealership though you might not feel it right now. She came to you and seems to show trust. She seems to also have a distrust for the dealership from how you are telling the story. Build on this.

The next question I have is what is this customer worth to you? Put a realistic value for a year. In other words start thinking what a customer is worth to you per year. Not just this one but any of them. Would it be worth 40 or 50 bucks to re gain her business to you? Think on that...

I think I'll stop there for now, Thanks for the response Joe.

Spence

Yes, I explained to her that the 15k service the dealer sold her was a "Dealer written" service, not the factory service. I also added that many of the services she had done, were not needed at that mileage.

 

But people react funny when you present them with the facts, especially if they think you are questioning their decision. It becomes a power play, they almost want to defend their decision, rather than admit they were misled.

 

The more I spoke the more I could see the anxiety increase in her face, so I explained to her (and showed her) the factory schedule. But again, it becomes MY WORD against the DEALER'S WORD. And while deep down I put doubts in her mind, ego tends to cloud people's view and that FREE thing keeps coming up as a way to rationalize everything else. She actually said at one point, "Well I guess they got to sell you something for all the free stuff they give you".

 

This is a tough one, tough for me at least. The dealer has an advantage because the sell the car and more and more dealers understand that if they get the customer to come back for service, they not only increase the overall profit of the dealer, they greatly increase the odds that the customer will buy another car from them in the future.

My question still remains... Did she have to pay(which I think you answered here) and if so how much?

It's time to VOTE!

We have a Norco power train lift.

http://www.norcoindustries.com/products/model/72675.html

We use it for a lot of things. Such as gas thanks, rear diffs, etc.

A good customer of mine just bought two new Hondas. They come with lifetime powertrain warranty if all the maintenance is followed and performed by the dealer.

 

This is difficult to compete with

At what cost is this maintenance?

Besides the two posts I made so far on this subject I wanted to add.

1. I have seen this in a couple different formats. By that I mean the free service was only at the dealership the car was sold at. Other makes it is with the manufacture and it is good at any of their dealerships.

2. If a customer owns 3 different makes... Lets say a Ford, a Chevy and a Toyota. And the Ford gives the so called FREE service. If that customer trys to take in their Chevy or Toyota could they get "FREE" service? Not likely and that speaks volume It means they are paying for it when they bought the car. Do they really want to deal with a place that pulls sneaky tricks like this? Or do they figure since I paid I should go back and get as much as I can?

3. Before the OE's had this so called FREE service oil changes where at 3,000 to 5,000 intervals. Have you noticed since they have been paying (meaning the OE's) that their oil change lights come on around 12,000 to 15,000? The cars are junk and don't last as long. Sounds like a good program for selling the next car if you ask me. Have you pointed this out to your customers?

4, Being as scheduled maintenance is pay and oil changes are free. Prices are a game where they hide some of this crap.

5. Dealer Techs are not happy. I have spoken with quite a few. Try doing the same and see if you are getting the same in your area. The so called FREE has been passed on to the techs. They are not getting the same time to do some of this work that they use to. This could backfire soon.

Good,,, No great subject to discuss!

I have a good customer that bought 4 Ford edges for his family. used late model. They claim that they are getting everything for free. brakes tires everything. I am going to try to monitor this one closely to see see exactly what they are getting.

Looking forward to what you find out Gary.

Because of the storm this week I made it a point to meet and speak with every customer who managed to come in. Many came by to check their car for damage, some even stopped by to charge their cell phones, since they had no power.

 

I spoke to a number of customers with new cars and asked them why they haven’t been in for service, but only for State Inspections and other minor issues, such as a tire light on. They told me it was due to their free service at the dealership. These car makes included; Toyota, KIA, Subaru, Volvo, and Audi.

 

I know this has been brought up before, but the question is, “How do we compete with free?” Another question is, “What is free?” Many consumers don’t realize that the oil change is the only freebie. The customer will pay for items such as tires, brakes, tire rotation, air and cabin filters and wipers. In fact, one customer showed me her 15k service on her Subaru which included spark plugs, transmission service, coolant service, tire rotation air filter, cabin filter and a whole lot more. That’s a 15k service! HOW'S THAT FOR FREE SERVICE, RIGHT?

 

So how much did the 15k service cost this Subaru customer?

 

We know what goes on, but the consumer does not. Why they can’t see thru the smoke and mirrors will remain a mystery, but the sad fact is that we may be losing the battle to this false marketing that anchors customers to the dealership.

 

A battle worth fighting! Staying in touch and asking to see work receipts is a good start! Look for the loop holes that the customer doesn't see and point them out. If the dealership ploy is exposed then the trust is lost also.

 

I don’t mind healthy and fair competition, but the questionable disguise of FREE service casts a voodoo-like magic over the consumer. It’s amazing how they recite the words from the sales person, “Everything is free, everything is free, I was told everything is free”. And when questioned about what exactly is free, they stare at you in silence.

 

That stare is your chance. You need the info I mentioned above and more to fill in the blanks of that blank stare.

 

So, how do we compete with Voodoo Free Service?

Thanks for bringing up the topic. Hopefully it will stir the pot with some better tactics of our own.

Good job at handling a delicate situation.

We have had WinWorks since 1999. Being as I have not compared in to anything else for years I don't know I could bring anything to the table except answer question about WinWorks.

For you guys that have changed to a different company how was the conversion? Such as transfer over of inventory, customer, etc. Or did you just run one beside the other for a year or two?

I think you answered your own question... It depends.

It costs us something like $120 per month. They will give you a free trial if you ask them.

I've seen the free trials. They are all over iATN as well as other places. We haven't ran into much trouble diagnostics. Then again we do a lot of training and have more equipment then anybody we know. Might even lead to techs becoming brain dead looking for silver bullets. Might not be fair to comment until I see it for myself either.

The jist of my first post is I felt like I was being baited when they can't post the cost up front. Good or not that's just how it struck me and as mentioned was a big turn off.

We do not use it. I went to their website and looked high and low for pricing and found nothing. Big turn off so I stopped looking.