Joe Marconi

13 minutes ago, bantar said:

I'll make this easier for you....  No for Mitchell - Most Mitchell folks are happy after switching and wonder why they waited so long.    Protractor is very complex and can be overwhelming if you are not used to a SMS.   Protractor has a builtin accounting system too (that I don't use).  When you need complexity it is your friend.  At the beginning, it can be a foe.  When they finally release an integrated DVI, they would be worth considering.  ShopWare and TekMetric are liked by many, but I've seen people try it and leave it too.  For you, I'd start with these 2.  No one is 100% happy with any SMS.  

Remember this:  Once you start using an SMS, switching to a new system can be a disruptive effort for the shop.   Unless required, don't be wishy-washy.  Pick a long-term winner.  

QB's is an accounting program.  It works well.  Use it for accounting.    Some people integrate with back office to pull data into QB's.  We don't do this.  We make a daily sales entry into QB's manually.   I balance my parts accounts using Protractor and when it's balanced, I transfer over the total owed for each vendor.  This approach reduces the noise in QB's.   I let the SMS be the expert Parts Handling System and Sales Management System.  I let QB's do the books.   Good luck.

Great advise!

Let me add something. I used Quick Books along with Mitchell.  Quick Books is a full accounting program and works really well for most small businesses. And most systems can export the data to Quick Books, such as labor sales, part sales, inventory, and sublet sales.  Quick Books will allow you to pay your expenses and together with the information from your business system; you can generate reports such as Profit Loss, Balance Sheet, and cash flow statements.  Among other reports.

The reason why you need a Business System for other reasons: Looking up labor times, parts, tech time, the use of can jobs, managing estimates, scheduling, and so many other tasks that Quick Books does not do. 

My opinion.  Choose a business system (look at previous posts for companies) and also use Quick Books for the accounting side of your business. 

4 minutes ago, bantar said:

Bah-humbug.  Those cars were great money makers for your shop, but maybe before you truly figured out that 4-letter word:  Profit.   We all work on piles of junk from time to time.  Like that hunk-o-junk in my shop right now:  2015 Range Rover with a blown head-gasket.  Customer says that we blew her head gasket, not here driving it while overheating!  LOL   Besides, all the folks in that picture are happy with their cars.  Now, don't call their babies ugly!  😁

You are 1000000% correct!  I was really referring to my age. Those cars broke down a lot back then, and we did capitalize on it. 

Many shop owners have increased their labor rates in the past year or so. That is great news. Now, what's your next move? 

Anyone who knows me knows that, in my opinion, in general, we have been too cheap for too long.  But, determining your labor rate is not the only consideration to attaining a profitable business. 

What about productivity, efficiency, keeping expenses in line, gross profit, and net profit? 

What are you doing to ensure you are meeting the financial needs of your business and also paying your employees the money they desire? 

19 hours ago, cooterdavenport1 said:

Looking to get off of pen and paper for ROs and estimates but unsure what tools to take a look at. Can some people tell me what they use, what they like about it, and what they don't like?

There are many programs out there, and some are better than others, depending on the size of your business and the type of work you do. From what I hear around the industry, a few of the top names are Tekmetric, Shop Ware, Protractor, Micthell1 (only to be used with Bolt On Technology), Auto Leap, and Shop Boss. There are others, but I would say these what I hear are the most popular. 

I used Mitchell, but there are a lot of drawbacks. Now that I coach, from my perspective, many clients are happy with Tekmetric, Protractor, Auto Leap, and for smaller shops, Shop Boss.

Let's see what other ASO members say about this. By the way, any company you are interested in will do a demo. 

4 hours ago, bi0h4z4rd said:

Absolutely. I will also fill in the gaps in my original post. Posting on here was a last minute thought and only had my cell phone or her tablet as options at like 1am. Actually some what impressed looking at it from my PC now lol.

I have not officially declined from the owner at this time for the record. I will offer a counter proposal. Give ma a day or so and I will update this thread. 

Anxiously waiting, thank you. 

21 hours ago, Ambrose You said:

Long time no see! I wish everyone a smooth and successful year in 2023!
As a manufacturer of replacement switches, I also want to share my thoughts on this topic.
From my perspective, 2023 is a challenging year for both the manufacturing and service industries. The shortage of labor caused by the COVID-19 pandemic, as well as the escalating tensions between the United States and China and the war between Ukraine and Russia, have directly caused a rise in costs by impacting the supply chain. The downturn of the stock and housing markets has also indirectly led to a reduction in consumer spending.
As Asia is currently the main manufacturing center, we are facing a severe round of layoffs, with the exception of Vietnam and India which have benefited from supply chain shift.
Our factory is facing a situation where customer orders are expected to decrease by 20%, and our production capacity has already been reduced by 40% in 2022. I feel that, as an Asian manufacturing center, we are facing a severe round of layoffs. I also have the idea of moving the factory to Mexico.
Anyway, we have to move forward bravely in the future. This year may be a difficult one, but let's cheer up together!
And, since a large part of our products are classic car parts, if you have spare time, fix up an old car! Think about the road trips of the past, and make your classic car great again!
I am currently studying AI-related applications, this article is basically translated by openai, and the picture below is generated by Midjourney by inputting text.

Wow, fascinating how those images were generated, and thanks for your take on the future.   And sad to admit I worked on those cars! Years back! 

Question, do you think the auto repair business is as "recession-proof" as people claim it is? 

Qualified techs are in demand and demand high pay. Cant blame them. As shop owners, it is crucial that we know our numbers and adjust for the higher payrolls. And all shops need to do this. The days of undercutting your labor rate must end.

Let's face it, in general we have been too cheap for too long. 

What are your predictions for 2023? Will it be that we will face an economic downturn?  Will EVs increase market share?  Will the tech shortage get worse or better?  

Having lived through many evolutionary steps in the auto industry, I have faith the auto aftermarket will always find a way to succeed.  EVs will bring big changes, but not anything that we cannot overcome.  Great information. 

10 hours ago, bi0h4z4rd said:

From the regional manager mentioned above. 

Sorry I didn't get a chance to reply to the first response, but I've been here for a day and a half and it didn't take long to determine that coming to work for this franchise would not be in my best interest. 

Thanks for the update. And, thankfully you found out soon enough. 

9 hours ago, bi0h4z4rd said:

Hey guys,

I have always appreciated this forum and not sure how I didn't think to ask this question here to begin with!

I received an unexpected phone call from a gentleman whom I've never spoken to or met before the day after Christmasz but he was aware of me and my recent achievements while managing an independent franchise of a national auto repair chain (honestly doesn't make a difference to me if you know where u can msg me if u want. Just didn't know the rules on it) 

In less than 60 seconds he was able to explain who he was, where he was from, and that he would like to move me out there for the purpose of taking over his shop and running it for him until he retires at which time I could buy it if I wanted it and I told him it is certainly a discussion we can have and would get back to him the following day. 

Our next conversation I had the chance to interview him about the shop and a little about himself to which I have no objections and went on to inform him that picking up my life and moving out of state would not be a quick decision and would require a process in which 3 things would need to take place.

1.  We would need to meet in person obviously, but also spend a decent amount of time in an environment outside of the work setting to get to know a little more of each other and assuming no red flags (very doubtful there are any to find) move forward 

2.  I would need to see the shop and be able to shadow how it's currently operated for a day or 2 and if no issues were to come up that within a few days at most I woulr let him know what it would take and the cost needed in order for me to commit to this and move. 

3. We would both have to mutually agree to or re negotiate a deal to be out in writing and signed and any upfront requirements fulfilled. 

Until late May I had spent the last 3 1/2 years as general manager for another franchise of the same chain that was nearly bankrupt when I started and lead it on to achieve new reocrds parts and labor sales . I wrote out a business plan outlining all new policies, procedures, products, and pay structure that changed everything from the ground up. 

The first year reflected an increase in more than 150k of gross sales at just shy of 1m and the second was the highest gross sales recorded at 1.29m, and I parted ways respectably in late May on track to exceed 1.5m. (sadly, they did not make this mark)

During this time my compensation was a base salary of $1000/week, 1% of gross sales, and a weekly kicker of $250 per week gross sales ended over $20k, and an additional $250 for each $5k after for that week. 2021 I grossed $109k and this year was on track to end at $150k if I had remained. 

There was nothing negative involved or that created the reason my departure. The regional manager for the 166 stores or whatever it is in the NW asked me long ago if I would ever be willing to relocate and run another "franchise store"  and I had a couple people email me that I couldnt even take seriously, but never let them go any further. 

I am scheduled to leave by train this Monday 1/9 where he has provided me with a hotel and rental car for a 3 day stay to complete the other steps needed to move forward. 

Below is a general idea of what I have in my head as far as what I expect out of a relocation package, but I've never had to hire or been hired this way before. Needless to say I could use and would appreciate any insight from anyone that has experience or any history with this process and reasonable expectations. 

1. Move in costs including first and last months rent, security deposit, and any application fees.

 (I was going to put a cap on the amounts, but the cost of living there is ridiculously higher than here and I don't feel like moving from a nice 3 bdrm house that I have here to go live in some cheap 1 bdrm apartment there is the right direction lol)

2. All personal property will be prepared and packed by myself and then loaded and delivered at owners expense. 

3. Pay structure to remain the same as previous Midas employer with a $250 increase to weekly salary. 

4. Employee discount will be all products and parts at cost.

5. One time payment of $15,000 as incentive to ease the complications that come with relocating. 

(,Thought of splitting up? 1/2 up front and other half dispersed with regular pay over next 6 mos?)

Any feedback or thoughts is welcomed and appreciated. 

 

 

 

 

 

 

 

 

 

 

 

 

 

I have to admit, this topic is a little different from the usual topics posted, which are from the perspective of the business owner.   However, it is an interesting post! 

There might be a great opportunity here, but there are a few red flags too.  And you need to move cautiously.  Mostly to protect yourself.  You did a good job at outlining the details, but something tells me there is more to this story.  

From my perspective, as a business owner, to reach out to someone that I don't know and offer them a deal like this, would be extreme.  I would want to build a solid relationship that takes time to develop.  And there are a lot of steps in between to make an offer like this. Trust me, I have been there with people that I knew, that I "thought" were good candidates to run my company and someday buy it, but it did not work out. 

I don't know you, but I would bet that based on what you said in the post, you are a qualified person who has the experience, talent, and skill level to run an auto business. 

I would suggest that you seek advice from a business attorney, an accountant, and a business consultant knowledgeable in the franchise model and independent model. Also do a lot of research on this person, his business, and anything else relative. 

This is a big deal in your life, and if it leads to ownership someday, you need to do all you can and perform your due diligence to protect yourself.  I don't want to sound negative, in fact, I wish you the best of luck and hope this is the opportunity of a lifetime. Just move slowly. 

Please keep the conversation going, and hopefully, we can all help you.

1 hour ago, Jodie said:

Perhaps have the vendors you use do the legwork for you.  That's an added benefit they can provide you, as a buyer.  I have a vendor that does just that...I can order parts online, see availability, and even check labor guides, interchanges, and fitment.  Because of that, it's my first place to shop.  Really where I get nearly everything, because it is consistent, and they have shown they take us seriously by providing us with tools to help the ordering process.  If I know part prices, associated labor, etc., it means many times I can make a decision on the fly.  We are a mom and pop and do straighforward stuff with some classics thrown in (and the occasional tractor dropped off in the lot).  It also helps in a small shop, if your front-end person is not necessarily a car guy (me).  By providing that info to the desk person, the wrench doesn't have to stop and weigh in on an estimate (increasing bottom line).  Just a thought...the information must be out there...ask and you just might receive, if they can see how it would cement a relationship with you!

Cheers

There is some truth to what you said, referring to not being a car guy. The best service advisors and front counter people I have hired were not former techs. 

12 hours ago, TonyGatto said:

I raised my rates gradually over the year.I’m up to $140 hour on my retail customers, and $175 on National accounts as they all want a 10% kickback to be considered a preferred provider. 
No one usually check labor rates. If they actually ask what the labor rate is it’s $75.00 per half hour, so at least they know there is a charge to look at it  

 

jmho

 

Good for you!  I also agree with multi-tier labor rates. And I also agree that in spite of what shop owners think, most people do not question labor rates. Parts are a different story, thanks to the internet and part companies marketing to consumers. 

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Believe it or not, technology may replace some of the jobs that humans traditionally performed.  

Do you welcome robots to the workplace?  Would this harm or help our industry? 

Happy New Year to all Auto Shop Owner members and their families!  It's been a wild ride the past few years, but automotive shop owners and their staff are amazing and resilient people! 

Let's make 2023 and beyond our best years! 

2 hours ago, RYAN B said:

The Tesla EV's use a foam lined SCT tire, that is very expensive. I have replaced many tires on these cars and have been told by customers several times that they specifically wanted these same tires. The reason is that the cars are so quiet that any other tire is extremely loud on the car, and customers say they can't drive the cars with other tires on them. Crazy!

As time goes on, we will learn a lot about Tesla's and other EVs.  And there will opportunity there. 

13 hours ago, Transmission Repair said:

Yep, EV tires are different.  Watch the video I Emailed you.  ICE tires on an EV is a costly solution.   11:42

 

Thanks for the info!

3 hours ago, Martin said:

I feel his pain. We are extremely busy and in need of 2  Tech's. 

However i learned this lesson a long time ago., dont take the first available person. he will cost you dearly. 

2 Technician Positions advertised 2 months ago and still not filled, lots of applications though but none that meets my criteria.

Same with service advisors, it took 3 months to fill the two open positions but in the end i found what i was looking for.

Hang in there, the right candidate will come along.

I agree, sometimes waiting and looking for the right person, is the best long-term choice. 

17 hours ago, Transmission Repair said:

Virtually everything you say is true.  Reprogramming will be largely Over-The-Air updates.  Most EVs and some ICE vehicles will require a subscription of some type.  Our RAV4 Hybrid has a subscription to enable some options.  My prediction is that the dollar cost for maintenance and repair for EVs may possibly be less than a ICE vehicle, but never go away.  The reports I've read said Tesla vehicles are hard tire wear.  Why, I don't know.  One thing is for sure, EVs in general are all Version 1.0 vehicles and like everything else that is Version 1.0, expect the unexpected.

From what I hear from my contacts who own tire stores, Tesla and other EVs wear tires out sooner. The low center of gravity, the weight of the vehicles,  and the torque on acceleration all contribute to faster tire wear. NOW, will tire companies produce a different tire for EVs?  Long-lasting?  If that happens, the price must increase.  

16 hours ago, Transmission Repair said:

Has anybody used a written personality survey like StrengthsFinder 2.0 or something similar to find out the applicants fit for the shop?

https://www.gallup.com/cliftonstrengths/en/254033/strengthsfinder.aspx

 

I have the books and articles from Gallup and fully understand the concept, but never actually did the strength finder test. 

A friend of mine recently purchased a Tesla Model 3. I asked him, "Why?"  He responded, "I don't have to buy gas, and the Tesla requires no maintenance or repairs."

Oh really? If this is the public perspective of the electric vehicle, they are in for a shock. Yes, a fully electric car does not require gasoline, but they are far from problem-free or maintenance-free. 

EVs still have tires, steering systems, suspensions, a TON of electronics to repair and reprogram, a complex HVAC system, wheel bearings, differentials, brake systems, cabin filters, wiper blades, require wheel alignments, and on and on and on. 

Do we need to educate the public? Your opinion? 

24 minutes ago, JimO said:

Although this has not happened to me, be wary of the techs that seem good for the first 2-3 weeks then go sour. Quite often they are doing this on purpose to force you to fire them as a requirement to allow them to return to their normal life of sitting at home watching cartoons, playing video games and enjoying unemployment benefits. This happened to a friend with a trans shop near me. The new hire was great for two to three weeks then turned on a dime, late every day, extended break time, sloppy work area, poor workmanship. Naturally my friend had to fire him and later found out that this “behavior” was this guys way of beating the system. He would routinely live off unemployment benefits until they expired, get a job and work long enough to again become eligible for unemployment, then get discharged as opposed to quitting to once again secure eligibility for unemployment. On my way home from work I listen to talk radio. The topic last night was what the different states are paying people stay home and collect benefits. In my state, New Jersey, a person with a family can earn $109,000.00 a year in benefits without working! I heard this “news” while driving home after a 12 hour workday. Do we really need to wonder why we have a labor shortage? 

You bring up great points and a very concerning state of what is going on in this country. Good old-fashion work ethic is becoming a thing of the past? 

2 hours ago, xrac said:

Never go against your first instinct. I interviewed a guy who was so cocky it was a turn off. However, we needed someone so bad we hired him. However, for a short while it looked like a good hire. He knew more than we thought he did and could give him bigger jobs. But it only took a few weeks for the worm to turn.  He had a bad attitude, his jobs started coming back, and his productivity was non existent. He cost me a lot. What a huge mistake. 

Great advice! And I can safely bet that we have all been there!