xrac

1 hour ago, Transmission Repair said:

Yes they were.  The last Sears location in Utah was at their downtown SLC location and it became a Sears parts depot for Sears and Craftsman.  It soon closed after the one I had applied at closes.

Reminds me of Carl Icahn's automotive holdings.  He bought Aamco, Cottman, Precision Tune, Pep Boys, Auto Plus, Just Brakes, and CAP (Consumer Auto Parts).  I've worked for the first 3 in the past and wasn't impressed.  Aamco used to have 900 locations.  Now they're down to 400.  A very good friend of mine worked for Aamco as their operation manager.  His wife was their general council (lawyer).  I was talking to him yesterday and he said all but 2 people in corporate are working from home and it looks like a ghost town at the corporate office.

Many of Carl Icahn's automotive holdings have gone down in value since he purchased them.  Like you said about Sears, I think he's (they) are out of touch as well.  See https://www.icahnautomotive.com/leadership.html

Pep Boys in our area is a shell of what it once was and a joke as far as repair is concerned.  I can’t see them staying open much longer. I think Icahn acquires companies and sells off assets and real estate. 

That is why the faintest ink is better than the longest memory. 

I am more interested in selling my business and leasing the property out then I am in selling the property. If I could get a ten year lease from someone who can make the payments I would be set. A lot of people could afford the business.  The key is someone who can be successful enough to keep the rent paid. 

23 hours ago, newport5 said:

Trust from a long time, loyal customer is almost a given. The trick is to create that trust earlier. I believe it takes a few steps to get there.

First, become a friend of your customers. I don’t mean a beer- or coffee-drinking friend, but that is not out of the question. There’s a general belief that friends don’t take advantage of friends. Find out about their kids, their interests, their vacations. That is, find out about them. It helps if you share something about you.  Seek to learn something new at every phone call.

Second, don’t try to sell every repair recommendation now. If you’re worried about no work, there’s probably a customer coming in tomorrow with work you recommended several months ago. This builds huge trust. It shows you’re looking out for their pocketbook (and their family) and not just yours.

Next, transparency: explain everything. I like this loose template. Put in layman’s terms: here’s what’s wrong, here’s how it’s supposed to work, here’s how this will fix it. You aren’t hiding anything nor hiding behind technology or jargon.

There’s more, but let’s end with: demonstrate customer commitment, integrity, quality, respect for people, teamwork, personal accountability, and the like.

In addition to building the all-important trust, all this makes it much easier for them to refer new customers to you.

That pretty much sums up my operating style and how I sell. 

1 hour ago, Transmission Repair said:

I retired 7 years ago at the age of 60 after 40 years of transmission repair.  I'm currently 67 and my wife is 69 and an accountant w/2 degrees.  Let it be known that she was as much a part of our success as I was.  She was a single mom raising 3 boys while working 2 and 3 jobs at a time.  Although I was a production transmission rebuilder for the first 15 years of my career, I've been self-employed for the majority of my life.  We sold our business in 2015 to a local multi-shop competitor.

Another stroke of luck for both of us is that we met in 2007 on Match.com.  Crazy, huh?  She invested most of the real estate proceeds into high-yielding mutual funds to give us a nice monthly income.  The house and cars (including her 2021 RAV4 Hybrid) are all paid for.  Before we met, I didn't plan, save, or set goals much.  I just lived week to week with a management style I call "management by checkbook".  Enough can't be said for the women in our industry.

If I had to offer some advice, I would say to own your own shop real estate.  We bought ours from our landlord on an owner-financed deal.  We rented the first 5 years.  Call it luck or destiny, I still think it was more luck than anything.

J. Larry Bloodworth, CMAT

Draper, Utah 84020

[email protected] 

Sometimes it’s better to be lucky than smart. 

13 hours ago, Transmission Repair said:

Thanks Joe.  Like I said, I just got lucky.  Tripling my money in only 7 years of owning real estate is more the exception than the rule.  Just to be clear, I only cleared $1.9M.

J. Larry Bloodworth

Draper, Utah 84020

Lucky or l smart that is a tremendous achievement.  Congratulations!

13 hours ago, Transmission Repair said:

We raised $25 per hour in December and probably will look at it again in the summer. 

5 minutes ago, Joe Marconi said:

Nice Mason!  it is truly inspirational to see how so many shops are doing the math, looking at their operating expenses, and payroll, and increase their labor to what's needed to earn a profit! 

On a facebook forum I just read of another shop that went up $20.00 more per hour.  The current environmental help wise does not give us any alternative. Anyone who wants to be the cheapest choice in this environment has lost their mind is my opinion. 

The company I was working for had to get licensed in all of those states and they knew I could pass the tests. 

I do not see that ASE certifications are very valuable.  I have employed 2-3 really bad ASE Masters.  It is kind of like when I worked in the environmental consulting cleanup industries.  I came into the business with no experience.  I did have a science degree from a major university and 2 years experience working for USDA where I receive rudimentry Civil Engineering training.  Two years later I was an REM (Registered Environmental Manager), a CHMM (Certified Hazardous Materials Manager), a licensed Florida Pollutant Storage Contractor, a licensed California Class A Contractor, and held other license for Kentucky, Indiana, Ohio, Arizona, Virginia, Tennessee, and Illinois.  I had all of those designations and license because I had enough experience on paper to set for the tests and was smart enough to pass the tests.  On paper I looked like a world class environmental consultant but what I was really good at was test taking.  ASE is gravitated to by technicians who are good at test taking.  

The other issue was that most people don't know what any of that stuff that I had meant.  ASE is the same way.  Unless you are in and around this industry ASE doesn't mean anything.  I think it has very poor recognition.

On 2/24/2022 at 7:18 AM, Joe Marconi said:

Step 8- Don’t Rely on the Sale of your Business for your retirement

I know this sounds contradictory, but the proceeds from the sale of your business may not be enough to financially support you into retirement.  Your business must be profitable while you are in business and must financially support the things you want to do and need to do, while you are in business.  However, to expect a big payout from the sale of business to secure your financial future in your retirement years is not advisable.

Here’s what I suggest. Build wealth while you are in business. Whether that’s investing in real estate, through an investment portfolio or by establishing a retirement account.  In other words, you need to sit down with a qualified financial advisor and plan out what you will  need in retirement and build up the cash needed to support that.

The proceeds from the sale of your business should be a bonus for you. Something to feel proud and will allow you to enjoy the years of hard work and dedication you had to your customers, employees and your community.

One last thing, if you own your property, this opens up different opportunities. You can sell the property or lease it back to the buyer.  For this, you will need to sit down with your accountant, a real estate attorney and your financial advisor.

Stay tuned for Step 9!

Joe, I have been able to save approximately $25,000 per year for the last 15 years plus lesser amounts before that.  It was very hard to do that some of those years but I did it religiously.  We also own the property where our business is located which is prime real estate.,  I am now 69 years old and trying to exit the business.  If I I had not saved and invested and if we did not own the property I would be in deep trouble.  The proceeds from a sale of the business at asking price would not be something to live on.  I would basically be in a position of probably having to work till I can't work anymore.  Now I may continue to work at something different if I exit the business but it won't because I have to but because I want to.     

We are getting more customers currently than I can handle.  Our marketing is mostly word of mouth through networking groups.  We are also seeing tons of new construction around us with lots of new businesses and apartments being constructed.  We are definitely not running any type of loss leader.  I don't see us doing much in the way of advertising unless I can grow our workforce. 

If you have techs that have been with you 40 years I salute you. 

Joe, are you completely out of your shop?  How has it been emotionally to turn loose and walk away?

This can be a really tough business. If you have too much help you can’t make money and if your have too little it gets stressful real fast. 

The scandal certainly didn’t help. However, the Bottom Line the whole Sears demise is a management failure, failure to adapt to changing markets and competition. I remember what a giant Sears was and in those days we would have never believed what has happened to them. 

The following are no no’s: remote starts, light kits, tuners, and keyless entry for us. 

Any time we have ventured to after market accessories we have regretted it. 

19 hours ago, Joe Marconi said:

Wow, I feel for you.  Sometimes those curve balls that life throws at you are tough to hit. Remain positive my friend. It will work out. 

You're right!  I just got to keep working but it’s hard on an old fart. 

The biggest month we ever had was a February but that’s when people were getting early tax refunds. This February is terrible. Lost 4 man days to snow, lost 2 man days to a death, lost 3 man days to a new baby and 2 to an employee conscioussion plus fired a guy. Lots of business absolutely buried but no sales due to all the time lost and parts delays. 

Hopefully you work through this. I know you researched FMLA and know that all that is required is unpaid leave. 
 

The Family and Medical Leave Act (FMLA) entitles an eligible employee to take up to 12 workweeks of job-protected unpaid leave for the birth or placement of a son or daughter, to bond with a newborn or newly placed son or daughter, or to care for a son or daughter with a serious health condition. See 29 USC 2612(a)(1).

In the last few months I have had two babies born to my guys and I paid for three days off each. I thought that was generous.  When my kids were born I never had a day off but it was a different day and different expectations. 

2 hours ago, bantar said:

Again, I don't know what the future will bring, but it is way easier to retrofit 10,000's of gas stations with hydrogen tanks than it would be to add charging stations. Fuel cells could win the infrastructure game easily, if they become viable. How many states have enough excess power to absorb all EV?  Here's a real tell... how many states believe that all EV is here and are building NEW power plants in anticipation?   I think that infrastructure is the biggest hurdle for all EV adoption.   However, as you mentioned, the wildcard is if the government says I don't care how much it costs and uses our taxes unwisely.  Lastly, as EV adoption climbs, gasoline consumption drops and we will see very affordable gas, if the government does not first bankrupt the fuel stations.  The free market will keep the playing field level.   The government is the disruptor.   But every time they step in to help us save (fuel economy, toilet flushes), it's a false economy.

 

You piqued my curiosity and I took a look at the charging options for EV.   What I found is that your charging rate is a function of your supply amperage (makes sense).  If you look at their charging tables, it shows various options from 11 miles per hour of charging up to 44 miles per hour of charging.  With a 110V plug you can get about 100 mile charge overnight.   Not exactly terrible if you are a local commuter.   Now, I peeked at my 2 service panels and they are both loaded up full.   My costs to add a higher amperage charger would be higher than others that have excess breaker power.   To get to the 44 mile charging, you need a 100A breaker and probably draw 60-80A I'd guess.   I think we're really seeing the Tesla as a 2nd car for local commutes and not the primary vehicle for the family.    And, if this is the case, then what are my service opportunities on a low-miles-driven-commuter car?

You are right. At this juncture being a second car and local driving is all of the charging ability most people can access.  If someone gets careless and let’s their battery run down there is no walking to get a can of gas. Everything becomes towing. 

3 hours ago, Joe Marconi said:

I think there are a lot of unknows at this point. There are still no specific standards either.  And what about city dwellers?  In NYC you could have a hundred families in one apartment building.  If you live in an apartment, how do you charge your EV?  I think all the issues will be figured out, but not without a price to someone, and if the government takes over, it will be through taxes. Or, will innovation jump over the EV and invent something else? 

Joe you are absolutely correct. What do people in apartment buildings do? Think if all the cars are EV and have to be plugged in somewhere.  Think about the capacity that has to be added to the electric grid. 

I belong to a BNI networking chapter and we have an electrical contractor in our chapter.  He has been talking about install EV charging stations lately.  Seems that business people are coming to our town from larger cities trying to drive EVs.  They are finding few convenient charging options in our town.  He is being contracted to install EV charging stations for a few companies.  Now I know what this guy charges and he is not cheap.  I would make a guess that most of what he does will cost $3000-$5000 at least.  That is if the place where it needs to be installed has a large enough service panel.  This could get real expensive depending on where it has to be located and what capacity is available.  I do not think politicians and other people ever think about the cost they will incurr to install a charging station at home, at work, at the vacation home, etc.  There is way more cost involved with these EV's than the purchase price and kilowatt hours of electricity used. 

8 hours ago, Joe Marconi said:

Wow! You did your homework. Great insight on this topic! 

Joe is right! My hat is off to you bantar.