Transmission Repair

I've posted about this before, but here are more benefits of using QuickBooks Desktop Pro as your accounting software. I started “playing” Quickbooks Pro Desktop in 1999 while I was using a transmission shop-specific shop management program. I had heard of QB before and thought it was more for accountants than a shop owner. As I used it more and more I discovered so many customizable features, I likened it to more of a minefield of rabbit holes. On top of that, I was forced to learn accounting. I didn’t like it at first, but in the end, it turned out to be a blessing in disguise. Fast forward a few years and I had somehow managed to design my own estimates, repair orders, reports, and chart of accounts. I eventually abandoned my shop management program (and the monthly payments) for QB. Out of all the good things I could say about QB, the most important benefit was the ability to print a highly accurate profit & loss statement along with a balance sheet in real time. I didn’t have to wait days, weeks, or months for an accountant to supply these to me. The accountant’s P&L and balance sheet were effectively an obituary of how we were doing in the distant past, not an accurate reflection of up to the minute in real time. I could accurately measure how we were doing day to day, week to week, and month to month with a few mouse clicks. Unbeknownst to me, over the years QB had become the gold standard of small business accounting. Our CPA loved it and charged less than his other non-QB clients. Lastly, not only was I free of a monthly fee for shop management software, I was free from accountant fees. The only thing that cost was our CPA for the annual tax return. All in all, I felt like I was in more control.

Last year my wife and I purchased a fully loaded 2021 Toyota RAV4 Hybrid with all the bells and whistles. Just for a frame of reference, what started out as a base price of $37K ended up being slightly over $53K. Ouch. One of the first things I noticed was the power of the engine was proportionate to the 2.5L engine size. It seemed to have the power of a larger V-6 than the little 2.5L 4 cylinder. I was curious so I set out on a research quest. The first thing I learned was it was an Atkinson Cycle engine, not the Otto Cycle I've known all my life. What was weird was the intake stroke was shorter than the exhaust stroke. It turns out there's this mechanical linkage between the rod and the crank that allows for this. Here's the part that blew my mind: The Atkinson Cycle engine completes all 4 cycles (intake, compression, power, & exhaust) in just ONE revolution of the crankshaft, not two. It's as if it's a 2-stroke, but not. Although the crank only makes 1 revolution, the piston goes up and down twice. Here's an animation of the Atkinson engine... 2:11

Excellent post, Joe. Many shop owners don't consider factoring in certain costs to every job. For instance, shop supplies. Most shops I know have shop supplies as a separate line item in a R.O. In those cases, many shops track the shop supply account. I just factor it in to what we bill for labor. Many headaches can be solved by just what you suggest.

We are a transmission repair shop. We don't have a big issue about broken parts, nor have a sign. The biggest "broken parts problem" for us is oxygen sensors that throw a code AFTER the repair. This almost always happens on vehicle we have to drop the exhaust on. O2 sensors like light bulbs; if they get bumped, then POOF they're gone. If we don't drop the exhaust; no problem. I figured I couldn't make a sign for 100% of my customers for issues that happen to <10% of our customers. What to do? I came up with a video on the shop's YouTube channel that fully explains the situation. When I would tell customers they need oxygen sensors (whether they objected or not) I would send them a link to the video. Never had a problem since. Why High Mileage O2 Sensors Fail After Transmission Work

I've used 3 different shop management programs over the years, including Mitchell. Around 2000, I started using QuickBooks in lieu of my shop management program. For a couple of years, I ran both programs in parallel because I didn't know QB very well. I slowly learned that I could tailor QB to the way I ran our shop, not the other way around. I discovered that I could design my own estimates, repair orders, reports, chart of accounts, not to mention accounting. It was a revelation to me. I'm speaking of QuickBooks Pro Desktop, not the online version. To me, the online version is a very "lite" version of QB Desktop. The more I used it, the more I learned I could do with it. I've attached a sample estimate I designed. To be clear, we are a transmission specialty repair shop, not GR. No more monthly fees or having somebody holding your data hostage. While there IS A HUGE learning curve, but I found it's well worth it. QuickBooks is the gold standard when it comes to small business accounting. Although my wife is an accountant, we still had a CPA. We could simply email a copy or our books to the CPA and he loved it. Actually, he gave us a discounted price because we were less hassle. As far as I'm concerned, QB is the best shop software. For the first year, I paid a small fee for customer support. After that, I just took the ball and ran. Drew Clarke Estimate_Redacted.pdf

Just in... The Google My Business app is being replaced. Replaced with what, a new app? No, Google My Business is being replaced by Google Maps.

Let me give you the backstory if I haven't written this before. I had 2 shops before this one. In both instances, everything started off going great guns. But after a while, the bottom line kept shrinking. I kept thinking, "If I can just hang on a little longer, I can turn it around." Eventually, the bottom line kept going more to the negative more and more. In the end, I had nothing to sell but used equipment because I only leased the property. 😞 My 3rd and last shop was the highest grossing transmission shop in the state and 5th in the nation. One year, we had a staggering 27% bottom line. But like the previous 2 shops, that percentage started to shrink. I knew from previous experience, it was headed toward ZERO if tried to hang on. I decided to sell it and lease the property because I did own it. Unlike G/R shops, customer lists, goodwill, blue sky, "the business", etc. has little if any value. Transmission repair is only a once or twice in a lifetime event. Believe it or not, the most common "repeat business" is warranty work. Customers who have multiple transmission failures is very rare. Most experienced transmission shop operators fear a flood of warranty work on jobs they didn't do in the first place. The average Aamco on BizBuySell was going for $110K at the time of the sale of the shop. Mine sold for $337K with $11K/mo. lease payments. However, as Joe stated before, that was enough to only semi-retire. Full retirement only came when we sold the real estate for $2.3M.

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Me too. Before that, I was hooked up with Larry Kuperman was also in San Diego. He was an attorney that used to work for California's BAR enforcement. His training was more transmission-specific. I quickly learned sales is sales. It's not about a big ticket repair. I started selling online. I would shoot a quikey 3-minute video and upload the video to YouTube and Email it to the customer. Super sales too.. I wouldn't do it on small ticket repairs. Check out my YouTube video channel Some of my later videos' are family-related, but 2,000+ are big-ticket sales related. https://youtube.com/user/LarryBloodworth In hour heyday, the ARO was $3,500+ and over /$1.2M/yr. We only wrote 25 tickets a week, G/R does that in one day.

Bob Cooper was instrumental to opening my eyes. It's more about thinking than doing.

Thanks, pal!

I was born and raised in Houston. My ex-wife bitched and moaned how much I was "wasting" on such classes, seminars, etc. Needless to say, that's why she is my ex. My current wife, Lorraine, met on Match.com. Holy cow! She has 2 degrees, one in accounting and another one economics. My ex, needless to say, was a financial idiot. I love to be married to a home-grown LDS gal that knows her numbers! I moved to Utah 34 years ago and I haven't looked back since. Mellow people, low crime, very few crazy drivers. I live in a suburb of Salt Lake City, Draper. Check out these demographics... Demographics | Draper City, UT - Official Website AND, another thing... The state prison is about to move and freeing up over 600 acres for high-tech development. They are naming it "Silicone Slopes." The current prison is right across from me. Too wild IMHO. When I go to sell a job, if they don't have the money, they damned sure have the credit.

I didn't ever start making any real money until I started hiring and/or attending seminars about sales, business, and management. Till then, as Michael Gerber so famously said, I was working IN my business and not ON my business. It took me a while to understand that the technically-only automotive sites are technicians working IN their business. Many members were 1 or 2 man operations. I just flat picked the wrong audience. Oh, well... we all learn something new everyday.

It's comfortable for me, Joe. I was banned from 2 other technical automotive sites for talking too much business. 😞 I found a "home". Thanks for all you do!

That's what Elon Must thought, "Surely some engineer has thought of this before." He did what was said to be impossible. Now he's a billionaire doing the impossible.

I have found so many good posts in this community. I love the fact that is this site categorizes different subject matter. Keep up the good work, Joe! J. Larry Bloodworth /[email protected] / 801-885-2227

A fully self-driving vehicle at that. No input needed! Thank for the post!!! I absolutely love it.

J. Larry Bloodworth /[email protected] /801 (Utah, MST) 885-2227

If you're a "shop manager for a friend of mine" now, I wouldn't consider it as retirement. Just sayin'... I love my non-working retirement! 67 and been retired since I was 60.

A charging idea I came up with on EVs is this: Why not have either a separate inverter ON THE VEHICLE that converts 220V house current (for faster charging, 110V is too slow) to DC current the EV can use? I'm no electrical wizard, but perhaps, just maybe, the inverter the EV already has could possibly used in reverse to charge the battery. I know it will add costs to the vehicle either way, but what do you guys think?

Well... it seems it was "user error". 🙂 Sorry for the confusion. Thanks.

I take back what I said about never saying "No" to a customer. We once in the early 2000s had a very young meth-head come into our shop. How did I know he was a meth-head? It was all but obvious. It was a mid-'90s F-150 with an E4OD and he had wiring problems. Before looking at the truck, the first thing he wanted to know was "How Much" to rewire it like the factory as he fidgeted. I instructed him to pull the truck into the shop and pop the hood, which he did. It looked like a bomb went off in the wiring harness under the hood as did under the dash. Long story made short, it had virtually ever electrical add-on in the book. Electric brakes for a trailer, boom-boom box stereo, remote start, cruise control, and etc. After just a peek at this rat's nest of loose wiring out of the loom, I simply told him "No, you need to take to the dealer to get a factory wiring job." The truck sat on my premises for over 4 months and I eventually had our towing company impound the vehicle. I never heard a word from the guy and assumed he just got locked up in jail somewhere.

OK, I got it. I was on this screen and not the home screen. This is supposed to be 16-point. How does it look on your end?

I set this for 14-point and it still looks the same default size to me. How does it look on your end?

Are you talking about the button that says "Size"?----------------------------^