Joe Marconi

I remember reading the the 1980s that hydrogen cars, not EVs, will dominate the future of the automobile. What happened to change that.? There are companies doing research into hydrogen cars, but it's funny how the EV took over. And, the other funny thing is when people say we need to get away from a non-reusable energy source (oil). I get that (to a degree), HOWEVER, I would bet that not many people understand all the non-reusable resources needed to build the batteries for the EV!

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?

Major car makers are fighting back and want to push the implementation of the Right to Repair Act in Massachusetts from 2022 to 2025. Two proposals are now being considered. This would only hurt the aftermarket by delaying much-needed information to repair and service vehicles. I urge everyone to stay informed and if you agree with Right to Repair, do what you can to voice your opinion. Thoughts and comments? Here's an article about what's happening in MA, with Right to Repair: https://www.wired.com/story/fight-right-repair-cars-turns-ugly/

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

Let me lead first by saying that success is subjective. We all strive to be our personal best. With that said, every repair shop is different. A heavy truck shop will work on different margins than a general repair shop. A quick lube is also a different business model. I was in the general repair business, servicing and repairing mostly Asian cars, domestic cars, and light trucks/SUVs. For MY model, my goal was 50% to 55% on parts, overall, 28% on tires. My labor goal was 70%, which became more difficult when we extended into working on more car lines, like BMW, Mercedes, Audi, etc. In regard to raising prices; your labor and part profit must be taken into account when setting your prices. Your business must be profitable. I hope this helps. Great question!

Frank, first of all...I wish you a long a happy life. For many around the country, your situation is accurate. The internal combustion engine will be here for a while yet. EV's will make an impact, but it will slow and incremental.

Back in the 1990s, some shop owner's feared that fuel injection, 100 mile spark plugs, the elimination of the Distributor cap, rotor and extended fluid services would be our demise. But, that didn't happen. Now I hear many in our industry state that "There is no needed work on an electric vehicle, they are problem free." My opinion, let's not fall into thinking that the EV car will run forever of even for years without needed service. The EV still has tires, suspension, brakes, and a whole new area of opportunities. It will be different, but there will be a need for the Automotive Technicians and for repair shops. Your thoughts?

I think to increase labor rates incrementally is a solid strategy. It gives time for your employees to get adjusted, and won't make a big immediate impact on your customers. The main thing is to do the math, and charge accordingly.

Oh Boy! There are some things that transcend business, and that human decency. Why can't people just respect each other? I tip my hat to your service manager. It's not about the mask at this point, it's about respect for others. Let's get back to values, morals and ethics. Please.

I think we know more now about this virus, and ways to deal with it. One thing is for sure, the lessons with regard to the economy and incentives not to work, will be looked out for years to come. I too believe that it is a choice, not to be mandated. Especially now. I am all for safety, but not to a point where common sense no longer exists.

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In order to grow your business and maximize your selling price, you will need to remove yourself from the day to day operations. That does not mean you need to be an absentee owner, that's your choice. What I am referring to is this; if you are too invloved with the daily operations, you are too deep in the trenches. You will not be able to work on all the things you need to in order to grow a more profitable business, and anyone looking to buy your business will have resistance. Why? No one wants to buy your job. Empower others to perform all the duties of running your company. Have clearly defined processes and procedures. You, the owner, will monitor and hold others accountable. Trust me, by removing yourself from the day to day, you will find out that you will still be invloved in your business, but will have a more profitable business with a lot less stress too. And one that will be more attractive to a potential buyer. Stayed tuned for more posts on Exit Strategies.

Nice to see! $153.00. And I agree with you, it is great to se that rates are trending in the right direction. Long over due.

Many shops have adopted that same strategy; small raises throughout the year. It's a great way to keep pace without a huge impact.

From my experience, used car companies want to do minimal repairs and want deep discounts. Too many short cuts are taken. I stopped working for most because I did not want to compromise the quality of my work.

Wow, you did the math! Nice, great job!

You bring up good points. All too often, if not all the time, the labor guides a not even close when it comes to big jobs.

This is a great topic, and one that every shop owner must understand. We do not work for the insurance companies, we did not sell the policy to the customer, and we will not undermine our work and submit to the insurance company sub-standard policies. Let's be totally transparent with our customers, and let them know upfront what to expect. And that most likely THIER insurance policy will probably not pay for the entire repair. Let's all stick together when it comes to insurance companies.

It is amazing to see that so many shop owners are increasing their labor rates,. Long time overdue. One thing I want to bring out: When it comes to the customer, we need to focus on value, not price. We need to bring the attention to what we are doing in terms of value the customer receives. In my experience, whenever a customer questioned the labor price or price on parts, it was due to either it was the wrong customer, or I did not do a good enough job a conveying the value for what I was doing. One last thing, in the sales presentation, promote the benefits, warranty, and value. Price is the last thing the customer hears. And don't break up parts and labor, one total price.

Best of luck to you, there is great opportunity in the Auto Repair business today. Perform your due diligence and take your time. Make the best choice for you. Happy Holidays!

Do you have an insurance broker?

There is no system that has all the features that all your needs, however, there are newer companies that are making an effort to bring newer technology to the modern repair shop. My advise is to create a list of all the companies and then ask for a demo, and see if you can actually use the system hands on. This is a big step for many shops that have been in business for a while.

Wise words.

This is great to see. One point I want to make; we are seeing more multi-tier labor rates with shops across the country. For many aftermarket independents, they do a variety of different makes and models and skill levels. As you can see in this post, EURO and pre-1971 cars command a different labor rate. Shop owners, you need to look at your business model, do the math and ensure that your labor is in line with what YOU NEED to earn a profit. Amazing posts! Let's keep this going!

Great points, great post! I agree with you. Let's hope more and more shop owners change their mindset.