Jay Huh

11 hours ago, xrac said:

Jay,

I am not in the Triangle or even in NC but if I am ever near you I will be sure to hunt you up.  I have really enjoyed your contributions on the forum and wish you the best success.  My prediction is great things for you.  Just don't burn yourself out. 

Thanks! I appreciate that. My best friend's in-laws lives in Evansville and they visit them a few times a year. They've invited us there jokingly but now I have a reason to go!

Yea when I first started and if it was something I didn't know or felt comfortable with, I told the customer and recommended a shop for them. I sent away a lot of customers......

22 hours ago, HarrytheCarGeek said:

What is your end goal? Are you growing for the sake of growing?

Growing is not a problem if you know what you are doing, this is one of those ironies of life, and the only way to learn how to grow in to plow forward.

What are you going to do once people are stealing from you?

How are you going to make payroll when you don't have enough sales to cover payroll and you are over extended?

With whom do you have enough shared experience to trust them when you are not around to run the whole enchilada?

How much net profit is enough per location to call it a success?

What if your crew gets sick and you have to close the doors for a few days?

What is sales are rocking and spending gets out of control?

How many shops are enough, how many employees do you want to help feed? And their families?

The hardest, dry, and boring step is the planning and drawing phase, what if? What if that, what if this, or that...? What if the city doesn't allow my sign? What is the city doesn't agree with this or that, etc.?

See if you can plan for one shop, two shops, five, ten, twenty, one hundred. If you get good at this, you will see that you can grow as big as you wish, but will it be worth it? What are you willing to sacrifice? Time, health, family, youth, etc...?

If it is in your blood, there is no other answer than to do what you have to do, just as you can't tell a Lion not to do Lion things, he must do what Lions do.

Whatever you choose, I wish you a fun, prosperous, and exiting journey.

Thanks Harry. Those are some solid questions and there are some I have not thought about so thank you for that.

I don't know if anyone else feels this way but I don't want to just make a living. I want to leave a legacy. If it was just about money or a comfortable living, I think I would have just stopped with my first shop. I'm not sure as of yet how many shops I want to have but I do know that I want 1 out of 4 people in my city (Raleigh, Durham, CH) to have heard of my shop and recognize the logo by next year. It's hard or almost impossible to gauge that but that's what I want

Thanks guys. Few other people have said the same thing, to wait. I did put in an offer and heard back today. I asked for first 3 months free for setup, they came back with giving me 2 months. I was adamant for 3 months- should hear back again next week. I feel like I have a formula that works so we will see.... if they dont take my deal then it makes it an easy decision

Joe, can you please chime in on this?? Since I didn't get to hear the whole lecture, want to know if this was what you were getting at 

My software sends out email 5 days, 30 days and 90 days -We get email addresses from every. single. customer. Only about 1 in 200 dont have one but I don't believe the, lol. I tell them we don't send junk mail and we email them invoices in case they lose their hard copy

So I watched this teaser video from last years 2016 Ratchet + Wrench conference. The guy is banning the word "diagnostic."

Personally I think the guy is GENIUS.

Diagnostic is such a watered down term now. People think the guys at Autozone "diagnose" their cars for free.

I've told my advisors and techs to use the terms "test" and "analyze" like the guy mentioned in the video.

For example, if customer comes in for an overheating issue and wants to know why: previously we said "it'll be $38 to diagnose why your car is overheating." Problem with this is that it could be so many different things, if we use the words  "test" and "analyze" it becomes:

"Hey John, we need to TEST your cooling system by pressurizing it and ANALYZE it for any leaks. It'll be $38 to do this test." This is GENIUS! Why? because the customer will be happy because he knows what we are testing and feels that his money is being well spent instead of a "diagnostic" which conjures up images of a guy just sticking the code reader to the obd port.

If it ends up NOT being a leak: "Hey John, we tested the cooling system and the good thing is, there's no leak. WE need to now make sure you are getting good coolant flow and test to make sure there's no clog in the lines... or test the water pump.... test head gasket by anazlyzing combustion bubbles entering the system... etc"

Let's be honest, how many times have we pulled out our hairs diagnosing vehicles and only getting paid/charging .5?? Not only do we get what we deserve with "test" and "analyze" but the customer is happy too! 

Can anyone that went to the conference last year chime in?? This is from watching the first 7min of the video (have to pay to watch the rest, which I don't mind but thinking about buying the all access pass for 2017) and I'm thinking this is where the instructor was heading.... correct me if I'm wrong and what do you guys think??? Let's get some good discussions going

4 hours ago, kenk said:

Must be the extra stress put on a car while in the shop. Like when you go to the doctor and have your blood pressure taken. It is always high in the office! "The White coat syndrome!"

It's opposite for us. The parking lot is like a healing ground or something. Customer has a problem for us to diagnose but we can't ever duplicate it! Customer admits that they can't either 

10 hours ago, xrac said:

Gonzo, I have one of those cars right now.  It is a 2006 Toyota Tundra.  Came in for oil change and brake pullsation.  First the drivers window would not roll up. Never did that before. Keep it ovenight and a tap on the door and it started working.  Problem fixed right! Wrong. Owner picked it up and brought it back said it was running bad and wanting to die.  Never did that before.  Had check engine light on and a code for a Mass Air Flow Sensor.  Installed a Cardone reman sensor with no change. Waiting on a new MAF sensor just in case it is a junk Cardone reman.  At this point in time my tech thinks it may be the ECM which would explain both the window and running issue but I want to double eliminate the MAF.  Why does this stuff happen on our watch. The guy is a good customer and is driving my truck while we sort it out.  

Nice of you to lend out your personal vehicle. I haven't been able to do that. Too attached to my cars. That is great customer service though, especially for something that wasn't your fault!

2 hours ago, mspecperformance said:

The biggest hurdle is implementation. Making sure every vehicle is inspected. Whatever inspection process you actually have it is imperative it is done. Second part of this is making sure your Front end people are estimating ALL the work and presenting ALL the found work. At this point you become the consultant and help the customer make the best choice.  

Very true. Rest of my crew are kind of slow to jump on board with complete inspections. Sometimes my new guys find so much stuff that my advisors don't end up letting the customers know everything.

5 hours ago, xrac said:

The answer is BOTH?  I would not consider a third location unless I have all my procedures in place including the back office and have a strong manager for the location available. 

Thanks. Yea  I've been lucky and got some good people lined up. Main thing is cash flow - I have yet to take out a loan or pay any interest with this whole ordeal of opening a shop. I have a credit card maxed out but I always pay it all before interest hits. With this third one, because of the abrupt timing, I might have to take out a small loan.

I'm lucky, i have yet to have this happen in our shop but what I can imagine what a nightmare it would be. Especially if that customer has a trust issue (which is common in our industry) and one that tries to take advantage of every situation. Don't want to jinx it but really hope I won't see something like this for a while

My average RO increased significantly. We had a record month.... in FEB!! Statistically, Feb was slow for us and our car count was much less than our previous record.

Customer satisfaction wise? Hard to gauge right now but most seem appreciative to know what is going on with their vehicle. Our oil changes take longer now but still much less time than other chains. I tell our guys that inspection process should take 10min max and my advisors to price things out within another 10min. I don't want the customer waiting more than 30min for an oil change if that's all they are here for.  We don't use high pressure tactics or anything like that. Our policy is to "inform" not "sell." Customers see that, we don't show desperation, and most come back for the repair.

1 minute ago, bantar said:

Thanks, but ignore the floor.   He would have shown me the floor, but he was afraid that I'd see the shop layout.  He was alluding to the secret car repair techniques and procedures in their service shop.   That was my question.   If was sort of tongue-in-cheek as I doubt I would have learned anything new by looking inside his shop other than seeing his shop.    He made it sound like they've invented touchless repair procedures that needed to be kept locked in a vault along with the KFC recipe.

yea, i dont remember anything needed to be kept secret. The only thing I can recall is that I wanted to show a customer the really in depth inspection sheet a tech goes through when getting a car in the shop. Wanted to make a copy but they were very adamant that  I could only show them and the copy MUST return to the shop. Never seen another copy since.

Layout is the same as other dealerships. You got a parts counter out back, 1 or 2 shop formans sitting in the back. They use their own computer system called ERO. Really good software 

I hired a master tech and a GS from Mr.Tire. Those guys know how to do an inspection. Hire someone from one of those big corporate chains and you already improved your inspection process 10 fold. 

6 hours ago, bantar said:

I visited a CarMax today, wanting to see their shop floor.   About a year ago, they switched from epoxy flooring to polished concrete.    So, in speaking with the Shop Manager, I was told that he would not let me into their shop because it was filled with their proprietary secrets.   However, he was gracious enough to answer all of my questions regarding his year old flooring.    At the end, I asked if I could just peek in to see the floor without looking at the goodies and it was a firm no.    So, now, Inquiring Minds want to know.  "Show me what you got!"   I can't imagine anything in their shop that needs to be kept secret.   Anyone seen the goodies?

I used to work in the service dept for Carmax. The absolute BEST company to work for. It's not just chance that they are thriving as they are today. Now as for the flooring, I never paid attention to that while I was there lol. You should work there part time as an inventory associate lol, you'd be let into the shop then haha

On 10/12/2013 at 10:08 PM, Gonzo said:

Too funny... yea that was one of the first videos I did for them.

That's actually my shop in the background.

It took the better part of the afternoon to shoot it.

Look closely... the cars change...LOL

 

Got my big fat hands down in the car and wouldn't ya know it... we had to reshoot the seen again. LOL

 

It's a fun project, I'm supposed to be doing a few mores... haven't yet... but I'm sure I will...just a matter of timing.

Nice to put a face to the name! That alignment tool looks handy. Thanks for the tips too

Anyone here in the Triangle area in NC? I'd love to meet up and get coffee

11 hours ago, FNGJWS said:

I have had numerous opportunities over the years to get involved in the collision repair business but have always begged off.  The horror stories from friends in the business and the fact that numerous well-respected body shops in town are available for purchase for very reasonable sums tells me all I need to know.  Guys I respect and admire are hanging up their spurs because, while the insurance companies have always called the shots, they have now resorted to ruthless tactics in many instances and seasoned veterans are saying "screw it, I don't need this anymore". Forced to choose between knuckling under and accepting margins that are ridiculously unfair, or resorting to cutting corners and committing fraud, they are taking a bow and walking away.

Thanks for your input. Yea if you put it that way, it makes sense. I don't like dealing with insurance companies and to do that on a daily basis would be a nightmare 

1 hour ago, CMillet86 said:

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. 

I see. To me, I think it's almost impossible to run a shop alone. I was there less than 2 years ago and I remember thinking that I'll never hire anyone bc of the overhead. But now, even on a slow day I have to have a minimum of 3 people in the store. One busy day makes up for a the week of being slow. 

When its busy, you can't turn away business but if you're a one man shop, then that becomes the reality. 

I would hire help at minimum wage and offer to train them as a mechanic. There's a lot of kids looking for jobs like this. Have him help with phones and train him to do the simple stuff. I wasn't looking to hire but a kid came and begged me for a job. He was swapping out motors and heads since he was 12 and no one was giving him a chance. He promised me to be the best employee at minimum wage. Having that extra hand changed EVERYTHING

If the going rate is $65, advertise $60. Hell I'd do $50 and get my car count up. Once they see who you are and trust you, raise the price then. Looks like car count is the problem as ARO is great. I'm cheaper than all my neighbors and they come to me. 

Sam Walton, the founder of Walmart wondered if people would drive a little more, come and shop at a place that wasn't as flashy or nice to save a few dollars. People will do more than you think to save a couple dollars. In the auto repair business, I notice that people will go the cheap route and once burned they will look for a reputable shop and stick with them. I've only been doing this 2 years so I'm not an expert but that's my philosophy and so far it's working. I'm not making a killing but definitely a living 

6 hours ago, John Fabrega said:

I normally listen to Audiobooks -constantly- but saw the recommendation for Six Tires No Plan on the other thread and picked up a used hardback copy via Amazon. I happened to be traveling to present to a repair 20 group in Houston last weekend. Started reading when I boarded the first flight, finished it as I was landing in Houston. Good read. Planning to go by the local Discount Tires to talk to the manager and see if that great corporate culture described in the book appears to be reality.

I think that'll be my next read 

I started out cheap, I price things cheap, and I used cheap labor.... until now. Hired an ASE master tech whom I thought was out of my ability to pay.

Last week was his first week and he knocked out 63.5 hours of work!!!!!!! Previous record to that was like 43 hours? Had the highest grossing week in 2 years of business. I didn't give him 63 hours of work.. HE FOUND IT. My car count wasn't different, still the same customers, just a different attitude.

He brought his prodigy so I took 2 of my old guys to my new shop and hired these 2. We open at 8:30 am and expect techs to get there around 8:20, they show up at the shop at 6:45 am.... I had to give them a key lol

Haven't been excited about my business in a while. I pay him flat rate- he was making $28 before but I got him at $25 and promised him $28 in 2 months. I think a big factor was me being able to hire his friend as well. So far so good. Looking back, cheap labor ended up costing me more money with comebacks and inexperience.

Hey Brian, best of luck to you and glad you're here. Excited for you, looks like you are starting big

Long story short, been in business about 2 years and started mobile. Current location for about a year, just opened up a second location about 3 weeks ago- HUGE step for me.

In my area, auto shop locations are REALLY REALLY RARE. There'll be months before a single shop will pop up for lease.

Well.. I was looking for auto equipment on craigslist and stumbled upon a listing of a shop moving and selling all his lifts. Found the location on loopnet- 5 bays, previous business extremely successful, great location, great price too....

1st location hit record sales this past week, 2nd new location held its own (divided by week, came out on top after expenses). I got both stores running self sufficiently. I am pretty much maxed out and I hate taking out loans but I have a line of credit available. 

Am I crazy to want to do this? 

Didn't realize what a big part of my life this site has become in such a short period of time. Happy to see it back up and loving the update.

I'm sure I can't be the only one that feels this way