bstewart

Started using Smotgo about 6 months ago. Like any software of this kind there are pros and cons. Some of the features seem a little tedious to me (inventory/purchase orders) - but overall I really like it.

Scott is very responsive to questions and suggestions for improving or changing things. The appt page was a big plus for me - I used to keep an excel spreadsheet - but I had to key everything in - it's great to just pull the customer and vehicle from the database when scheduling.

i agree to ability to access the info from basically anywhere is great. I've used my iphone countless times on the way in to the shop in the morning to check the schedules and order parts I forgot about the day before or to call customers if we have an issue getting in by opening time (are we done with winter yet?)

My only real concern is that if Scott closes shop - what happens to the site and all my info? And obviously, if the integration with labor times could be accomplished I might just be in heaven.

I would definitely recommend it.

Right on! This is exactly the type of thing I was looking for!

I'm glad you like it, and I've already found out that Scott is quick to respond.

Look at my post a few down. These guys will give great advice, research everything they say and you'll be in a good spot. From what you have described so far, my first thoughts are that you better be getting a smoking price and you'll want to have a solid understanding of what you'd be getting yourself into.

Agreed. This place sounds so bad, that I'd be looking to pay for basically the inventory + 10-25% of what he thinks his equipment is worth (because it's probably all over 10 years old and obsolete, he more then likely thinks it's worth what he paid for it).

No cash flow = no business value. Database/customer list & location isn't worth anything, it falls under goodwill in a business sale.

Just like Rambiss found out in his other thread, be prepared for both techs to jump ship if you try to change anything, and be prepared to have a very difficult time replacing them as well.

None of the independent shops around our area charge for diagnostics either. Except for us. And you know who get's a bunch of diagnostic work? We do! Apparently the other shops diagnostics are not worth paying for. When you charge for diagnostics (correct diagnostics) you eventually get a good rep around town and people will come in willing to pay to have there car fixed correctly. The people who have a problem with it are C or D customers most likely. I had a guy once tell me that if someone is not willing to pay $70-$100 to find out what's wrong with his car then he probably ain't serious about getting it fixed anyways.

Well said! The last sentence is 100% true in my opinion, I've heard it many times before.

http://www.motor.com/article.asp?article_ID=369

This is the most interesting article I've read to date about charging for diagnostics.

I'm not sure whether it's viable or not, and I'd like to hear what you have to say (preferrably from shop owners who already charge for diag, I'd rather not hear from naysayers who refuse to charge for it)

Well said, Scott.

As I was playing around with the demo, I was rather impressed with the appointment page, it seems to work well.

I like the idea of anyone in the company being able to check the schedule before coming to work.

Is there any data stored on the server unencrypted? For example, if a credit card was put in as a note on a customer's account.

If godaddy was ever hacked, would the credit card be visible in a text file, or is everything encrypted on the server side?

Do you do all the programming yourself? That's impressive if you do.

I'll probably be sending you an email with a bunch of questions and some suggestions, but I have to say, great job.

Many of the software packages I've seen truly do have less features, and a lot are WAY overpriced for what you get.

As a future shop owner hopeful, I could definitely see myself using this software to get things going, and maybe continuing to use it with a few extra features added in the future!

Ps. Not sure if you thought I'm in Edmonton Kentucky, I'm actually in Edmonton Alberta Canada. Not exactly close to Maryland haha.

How new is the equipment, and does he have receipts for what he paid for it when he bought it? This will really help you figure out what it's worth.

Here's a link for how to calculate depreciation on a piece of equipment:

http://www.ehow.com/how_7624348_calculate-depreciation-equipment.html

Here's several ways to calculate the value of an auto repair shop:

25-30% of annual sales + inventory

2 times SDE* + inventory * Sellers Discretionary Earnings, also known as Sellers Discretionary Cash Flow, SDCF.

1.5 to 2 times EBIT (earnings before interest, tax)

2 to 2.5 times EBITDA (earnings before interest, tax, depreciation, amortization)

2 to 5 times monthly net revenue

1 to 3 times owners annual cash flow

3 times monthly gross + inventory

2 times hard assets + owners salary

33% of annual gross revenue

As you can see, most of these are based on the owner's cash flow and tangible assets such as inventory. The EBIT and EBITDA ones are probably more for larger shops with higher then 1mil in sales.

For the SDE one, google how to calculate SDE, it's somewhat complicated, but very realistic for small businesses, because most of the value is directly related to the owner, rather then the assets. This is probably one of the most important formulas in the list.

I'd calculate every one of these on the guy's business, see what adds up and what doesn't. You might find that his offer is low and you're getting a deal, or maybe way out to lunch and you need to renegotiate or walk away.

Copied from their FAQ:

Does anyone have any experience with SMOTGO - Shop Management on the Go?

It's 100% free web- and cloud-based shop management software that seems to have a lot of features included.

There is a robust series of videos on their website demonstrating everything it does.

As far as I can tell, the biggest thing it doesn't do is integrate with parts suppliers or labor guides.

However, if you're willing to do the legwork, the price is right on this software.

It might be a better alternative to using Quickbooks premium as a low-cost solution for a struggling or new shop?

As a future shop owner (hopefully), I've toyed around with it a bit, not enough to make any decisions, I've just played on the demo account a bit to see what it looks and feels like.

It might be a good way to get things off the ground and making money, then being able to afford one of the more expensive shop management software suites within the first year or two, instead of a huge investment before making any profits?

I was hoping that someone actually uses it in their current business and has an opinion to voice.

www.smotgo.com

www.smotgoinfo.com

Here are a few things to consider and to discuss when you meet:

You are going to have to see all his financials, any loans he has on equipment, inventory, what equipment stays, NON-compete agreement, if there are any liens, lease, and information on his customer data base.

If he has a second shop, then how would a non-compete agreement work? He'd be automatically competing.

Even with a non-solicitation agreement, I'd be worried that many of the "good" (A and B customers) would go to his other shop anyways, even without him making first contact after the sale.