Obsidian Motors

On 11/13/2023 at 11:38 AM, Transmission Repair said:

The learning curve was long and slow.  I did a lot of research figuring out how the bidding system worked in AdWords.  They were using the Dutch auction, aka 2nd bid, method.  Only if I was the top bidder on a particular keyword, I would win the auction but pay only a penny more than the second-highest bidder.  It took me a couple of years to finally learn that.

I originally started bidding cheap with about 1500 keywords.  Over time, I learned that I only needed about 35 keywords.  Then I learned the power of negative keywords.  I put leaks, noises, and vibrations in as negative keywords, basically any minor work.

I also came to learn that no matter how much I wanted to spend, there were only about 1,500 clicks per week to be had in my market area.  The last 3 years we had before I sold our shop, I was spending about $1K/wk. on ad spend.  We kind of grew into an equilibrium of that much in ad spend with gross revenue of our small, 3K sq. ft. shop of $1.2M-$1.3M/yr.

I only used Google AdWords for the last 5 years we were in business.  We started out with $25/wk. ad spend and in 2 years we maxed out at $1K/wk. ad spend.  To answer your question, it took 2 years to get the results I wanted.

Google AdWords has changed a lot since I retired.  As I understand it, you can no longer have different bid amounts for different keywords.  Instead, you set up a weekly budget amount and AdWords does the rest.  My top #1 keyword was transmission repair.  I hope this can help others.

Interesting. How many other transmission repair shops were within a 5-mile radius of your shop?

On 11/7/2023 at 3:18 PM, Hands On said:

I give out free loaners also. I also bill $20 more per hour then the shop literally right across the street. It is pretty rare we have to do pickup drop off, the loaners are used way more often, and I use the loaners because it takes the pressure off of me.

I no longer offer loaner cars. Customer flipped the loaner on the freeway then she balked at accepting responsibility and having her insurance cover damage even though she signed the waiver for the loaner. I had to threaten to enforce what she signed in court before she bought her insurance company in to reimburse our shop for the total loss. I didn't receive tangible benefit for offering loaners when all was said and done. I do still offer local rideshare for regulars though.

Nice post! Only thing that's missing is follow-up contact info on accountants who are extremely familiar with the auto industry.  

1 hour ago, Joe Marconi said:

As mentioned earlier, my experience was not good. First, the clientele that it attracted did not fit our profile, and many were not even from our area.  The rate for installation, repairs, and removal was set by the company.  My techs did not like doing the work, and my service advisors had many challenges, as Bantar pointed out. Those people that needed the install came in already angry about it.  And none of customer became regular customers.  

Thanks for the insight. Really appreciate it. 

4 hours ago, Joe Marconi said:

I tried it, it was a horror show. In my opinion, not worth it. There are so many other ways to attract and retain your core, key, profile customers. 

Wow. That's interesting. Would you mind explaining a bit about what made the installations so bad?

Curious to know if anyone has experience with installing state mandated breathalyzers at their facilities? Was it worth it financially? After one DUI my state has a requirement that the device must be installed in the offender's vehicle and I'm wondering if this is something worth pursuing in terms of offering that service and registering with companies already certified with the DMV. Thanks in advance for any info.

11 hours ago, Joe Marconi said:

You will absolutely sell more tires by taking photos and documenting tread depth during the vehicle inspection process. And also by training your staff to discuss tire safety with your customers. If you want to sell more tires, do a little research in the tools and equipment needed, staff training and speak to tire reps at different companies. 

In the 1980s I would send all my tire business away. In the 1990s, when I expanded my business, I added tires to my list of services.  I did not compete with the tire stores, that wasn't my goal.  It was a way to keep my customers in my shop and provide a service to my customers. 

 

Thanks for the tip, Joe. We take pics and videos of inspections via TekMetric and send them to our customers to approve the needed repairs. Documenting tread depth during the inspection process can definitely be added. Will let you know if there's been any uptick in tire sales. 

There are three new and used tire businesses within a one mile radius of us. Two are directly across the street. We have an account with one of the tire shops but don't sell many tires. I do wonder if we would sell more if we pointed out any low tread during inspections, but we don't get many requests for tires at all.

We're also closed Thursday and Friday for the holiday. 

3 hours ago, Joe Marconi said:

Yes, I do go in about once a week to pick up mail and I am still cleaning out old files and personal items. But, for the most part, I am out.

Emotionally, it was and is hard.  I grew up in this business and in my own business for 41 years. I do miss the employees the most, and strangely, when I look back, it was the toughest times that brought the team together. For example, during a bad winter with many snow falls, when we spent hours in the cold and snow cleaning up. We would take a break from the cold and would huddle in the shop over coffee and egg sandwiches, and shoot the breeze.  That's what I miss the most.

Sounds like you've practically seen it all Joe. So I have a question; the landlord owns a small shop in front of mine that primarily does oil changes and smaller maintenance jobs. But he just recently added brakes. There is language in my lease that stipulates a clause that prevents me from advertising oil changes and I adhere to it. So I recently started advertising brake specials. So the landlord comes to me and says that I can't mention price. I believe he is way out of line here. I left the sidewalk sign up but wondering if going to "war" with him over this issue is worth it in the long run....although truthfully I want to since he appears to be a bit of a bully and the only way to beat a bully is to stand up to him.

We have signs up asking those who feel sick to not enter and respect the 6 feet apart rule. Also have masks and sanitizer available.  No specific demand for masks to be worn. Our bay doors are always open. Plenty of circulation. Rarely have more than 1 person waiting in the lobby. Everyone in our shop voluntarily got immunized so I feel good about that. 

The site below is a good option for you. Features all sorts of businesses that are available for sale. Nationwide too. Plenty of auto repair shops.

bizbuysell.com

Has being approved by an insurance company made a difference to your bottom line? I had a vehicle towed in recently and the customer's insurance company was to pay for the work done. About a day or two later an insurance adjuster showed up to the shop, gave an inspection and approved our location. The caveat was that the invoice he eventually submitted was a complete lowball. I'm wondering if it was that particular company (small and regional) or would a major insurance company provide a more realistic approved quote?

Also, do you guys think it's worth it to request to be on all area insurance companies list of approved shops in the long run?

Are there are any repair jobs your shop prefers to not do for whatever reason? 

On 12/26/2021 at 10:14 AM, xrac said:

The most popular shop software products currently seem to be Tekmetric or Shop Boss. 

We use Tekmetric. Nothing but positive things to say about it. Additionally, it's 3rd party integrations are super helpful. Would suggest Tekmetric to any owner looking to make a change in shop software.

Find A Wrench did not work for me at all. The techs that I reached out to didn't even respond. I'm actually of the opinion that those were fake profiles to begin with. 

Looking for additional help and have placed ads on Indeed, Craigslist, tech company sites & even reached out to tech schools in the area. And with all of that only 5 applicants called to set up interviews. And none actually showed up. Although one did call to say he couldn't make the interview because he accepted a job at another shop. 

Curious to know how other owners are dealing with the tech shortage? 

I've been told that this time of year is just slow and there's nothing to be done about it. Is low car count always to be blamed on the season?