CMillet86

1 hour ago, AndersonAuto said:

This thread started (actually I think may have been peeled off another thread) with you talking about closing your doors. We all go through ups and downs, and we've all been there, done that. It seems to me there are some really basic things you can do to steer things in the right direction. Here's what I would do.

First and foremost, get your waiting room and write up area in order. You don't have to spend a lot of money on this, but clean and organized goes a long way toward customer confidence and their willingness to be back and tell their friends. SOAP, PAINT, LIGHT. You can buy an inexpensive service counter online, or you can make one from lumber, drywall, and a bit of countertop from home depot. Pick up some waiting room chairs on the cheap through craigslist or Govdeals.com and you're in business.

If your shop isn't the cleanest shop in town, make it that way. Get rid of any "good" junk. It's just junk and technicians are notorious for hanging on to it as if the next car rolling in your door needs a "good" used steering gear with 200K on it. If you have that sort of junk laying around the shop, inside or out, get rid of it all.

Get your web site redone. Focus on getting mom and dad to work, and minimize the performance work. You said 90% of your work is "regular" cars, make your web site reflect that. Take pictures of your happy customers standing next to their nice car, and get permission to put it on your web site.

Get google reviews. The easiest way is to ask them to review you from their phone while they're standing at your counter. People would much rather do this on the spot than do it later after they get home. It's amazing how easy this is, and how much good it will do for your business.

Become the biggest "yes man" you've ever met. Any time a customer needs something, you need to find a way to say yes. Say yes, then find a way to make it happen. Customers call you because they want to be in your shop NOW, not 2 weeks from now. But once you say yes, it's on you to make it happen. Figure out a way.

It's been a long time since I've had a 2 bay shop, but these things have always served me well no matter what size the shop.

I'm working on the waiting room right this minute, I cleaned it up immensely. Looks like a whole new place actually. Cleaning the shop is always a ongoing project, but something I'm also working on. I've already spoken to my website guy about shifting the focus of the website, that will take place in the next couple weeks. The google reviews I will make a point of to get, just need to figure out how to do it in a way that I feel comfortable. I understand the Yes man mentality, at the same time I have to say no more in my opinion. To keep jobs that I think are going to be unprofitable out of here. 

4 hours ago, AndersonAuto said:

I figured you were going to say most of your work is daily drivers. I almost addressed it in my last post.

I wonder then, why doesn't your web site reflect what you do? Your web site is dedicated at least 50% to the DIY performance crowd, not getting mom and dad to work.

Why aren't you soliciting google reviews from those daily driver customers? Reviews are important, but when I read your reviews, it looked to me like they were from your performance customers.

If 90% is daily drivers, then let your marketing and web presence reflect that. You're currently trying to draw in your least profitable customers, I suspect because you like doing performance work. I used to like it too, but I had to learn the hard way that it's a lot more fun to pay the bills and have money in the bank.

Also, what does the inside of your shop look like? If it's clean and tidy with a decent customer waiting area, show it off. If it's not, make it that way. SOAP, PAINT, LIGHT.

The website is honestly an afterthought. It's something that I've neglected because I've mostly just forgotten about it. I'm terrible at soliciting reviews. Both are things I'm going to actively work on going forward. The waiting room needs work. I tend to try and tackle too many things at once and fail to accomplish most of them. When I'm slow I can focus on doing things a certain way, when It does get busy I have a bad habit of throwing everything out the door. 

14 minutes ago, AndersonAuto said:

Since this thread has been revived, I might as well chime in. 

Looking at your web site, reviews, competition, and demographics, it seems to me that you might want to change the focus of your operation. It looks like the focus is on performance, and catering to the DIY hot rod crowd. This can be profitable in the right market, but you're in a smaller town and I doubt you're going to see enough car count with enough GP to make life good.

Your web page clearly markets to the DIY performance crowd. 3 of 4 panels on your home page market to them. 3 of the top 4 panels on your services page markets to them. Your entire customer gallery markets to them. Your google reviews also indicate that your DIY performance customers love your work when they need someone other than themselves or their buddies to work on it. Not what I'd call a recipe for steady car count and great profit.

In my experience, the DIY performance crowd shops for parts on the internet constantly, and expect that you'll sell them the parts for very near the same price that they can get them online. They also do most of their own work, and as a result will undervalue your work. Even when they know the job is over their head, the simple fact that many of them believe an hour of your time is roughly equivalent to an hour of their time in the driveway is a real problem.

I would try to shift the focus to daily drivers. People need to get to work every day, and if you can make sure they get there, they'll pay you enough to make it worth your while.

While I do a fair amount of that stuff, 90% of my work is normal service work. I have been doing a little marketing towards standard crowds as I'd call them. I haven't seen much difference in it though. 

I figured I'd come in and reply to this. I'm sure as shop owners we all have ups and downs. Earlier this year was definitely a down time. I did take a job working at an R&D place, it lasted all of 2 weeks. I've been back in the shop since, making a go of it. I'm still struggling but have been able to do some things to allow me to keep going. 

I have the stands, but I only have a small 2 bay shop. They do take a long time to set up correctly but It's a tradeoff for me until I can get more space. 

I'm feeling the same as xrac, I'm a state over from him. Very soft right now. Trying to ramp up affordable marketing solutions.

The Engine Dyno &  machine shop is technically a separate business. I do run a chassis dyno, but that is one reason I've been floundering, it's not making any money. My biggest issue's are marketing and me. When I do get busy I get behind as a one man auto repair shop. My car count only averaged 21 a month last year, now I have a high ARO at $508 for the last year, but profit margin wasn't there. I only averaged 26% on parts last year. I try not to cut my prices, but in my town it seems like everyone is selling parts at cost and only running a $65hr labor rate. I'm at $70 and trying to make a minimum of 40% on parts and everyone keeps telling me how high I am. 

why?

Not to clutter his thread, but I'm struggling to stay profitable. I'm a solo operation, but I can't get above 10K gross, which is barely putting $200 a week in my pocket by the time parts and overhead are paid.

Wow, some people are really cut out for this. I've been doing it in my 2 bay shop since 09, and I think it's time to close the doors.

This is going to be more a common issue in the coming years.

I don't think you are high enough for your area. I have been over $90 for at least 6 years now in Dayton, Ohio. It is not what you charge, it is the value of the service received for the price.

In my City of Piqua, The dealer is only $85, the highest shop I know of is $77/hr. I understand the value of the service but I don't want to price myself out of a job either.

Yep, I'm getting ready to make a raise myself. When I took over for my grandpa it was $55 and that was in 2009. You can only imagine the type of customers that brought, I'm up to $70, about to go to $75 soon. Thats getting upper end for our area.

I'm guilty of having cars for a month or more at times, as a one man shop, if it's a second vehicle and non critical the customer doesn't seem to mind. I work on it when I can, but I focus on cash flow jobs to keep everything flowing smoothly.

I'm sure there is money to be had not buying from the chain stores, the problem is, if you have an issue from one of those warehouses, how do they respond? You pay more for a part, but you also pay for the service, granted the service may not always be great, but hopefully they take care of you in a way that a warehouse can't.

I absolutely do not want to stay a single man shop. But in my current location I only have 2 bays. But the building is paid for, so moving entails another cost etc. I want to add on, but I've been trying to keep the shop updated with equipment. Purchased a new alignment machine, new tire machines etc, trying to stay as up to date as I can on Scanners and software. I've made a huge jump this year, as of right now I'm equal to last year sales for the whole year basically, but it's still not enough, if I maintain I'll do $150k as a one man shop, I'd like to do 200-225k.

I've Spoken to Elon Block and really like how he went about things, but even at his prices, it was just out of reach for me.

I would love to have one of the consulting companies give me a hand, but as a single person shop the cost just boggles my mind.

Staffing is number 1 in my mind. Number 2, as a one man shop, consistency in operations is my biggest struggle.

I prefer dedicated, that being said I refuse to buy from O'Reillys. The store near us is a joke, and I got ahold of one of the internal magazines they give employees, they brag about opening up stores near other ones and putting them out of buisness. Also there labor claim stuff is a joke.

I don't close out until I've recieved payment.

Yah In Todays buisness world, there is no reason for them to not use a credit card on transactions under a certain amount.

I deal with it some myself, Biggest thing is no Net terms anymore, you pay with a credit card or check when you pick the vehicle up, I don't care if it's a huge dealership or not. If you can't hire techs competetant enough to do everything in house and need me to do stuff, these are the terms.

That brake O Rama website is awful, this isn't 1995 anymore.

 

Why are you having trouble finding help? Is it salary or qualification issues?

Finding someone to even apply. Qualifications is also an issue. Called the local tech schools about students or past students, they won't even call me back. I'm willing to pay if they can get stuff done, but so far that's an issue. Last guy I tried couldn't do valve cover gaskets on a jeep in less time then it took me to swap an engine in a 3.8 Pontiac.

I've had my best year ever so far, were talking a 100% increase over last years sales at this point. This last month has been a little slower, but I'm not worried yet. I'm taking on as much work as I can by myself, my biggest issue is finding help.