flacvabeach

Let me tell you what's hard. Switching from one management system to another. They all say they will convert your data, but don't believe it. Do your homework (like studying this forum) and don't go cheap. We went through two "economy" systems before we went to ROWriter. Their progressive parts and labor matrices put a fine edge on our margins (51% GP last week) that help pay the premium price of the program. I'm sure other programs do this too. Transitioning from one program to another is PAINFUL, so be careful with your decision process.

I wouldn't put too much stock in gross sales. ARO and margins tell you more about how your business is performing. If your advisor's incentives are based solely on sales, you have to watch that they aren't discounting to make sales. A few years back, we saw our sales numbers increasing, but our margins stunk, so we started working on margins and ARO and sales actually dropped, but we ended up taking more home. Once we felt we had a handle on the fundamentals we started pushing car count.

Strict rule - no outside parts. I want to be able to guarantee the whole job. Nine time out of ten, the parts are wrong anyway! Say you do put in his parts and they fail, who's going to pay for the labor to get things right? Thomas Jefferson said we should avoid "entangling alliances." Outside parts can only make you unhappy.

I second what Tires Too said. ATI saved my butt years ago and we have been with them for about seven years. They do training for online marketing that is mind-boggling. I'm in the ramp-down mode as I pass my business on to my older son and his wife. They have been to two superconferences and she helps run a twenty group. Became franchisee of The Hybrid Shop through our relationship with ATI. We are achieving numbers that looked impossible to us five years ago and I credit it to our training and coaching from ATI.

Our Advisors are not allowed to give prices over the phone. The goal is to get folks to bring their car in and allow us to make them a customer. We will do a basic diagnosis for free.. You are wasting your time competing against other shops when you don't even know what they are offering for the price they give. For instance - "how much for front brakes?" I use the on-car lathe and premium pads on every one I do. Why should I bother to quote that price to somebody who just got a price for a pad slap with some economy parts? We sell value. Best parts, trained techs, great nationwide warranty, and super advisors who are going to help keep your car going for the long haul.

They approached me years ago. They had a membership rep at the time who went around recruiting new members. Now they rely on word of mouth. Another group I'm involved with is NAPA Autocare Business Development Group. I'm currently chairman of the local group. On the Autocare website, I see there are groups in Hastings and Omaha.

Look for state/local associations. I am on the board of the Virginia Automotive Association. Terrific group composed of nearly 300 members. I feel guilty because I am getting more out of it than other members because they have so much more experience than I.

It costs about $80/month. To exploit it fully, you need to have all of your techs punching in and out of the jobs they are doing and every time they go to lunch or take a smoke break. If you enforce that, you, your techs and your SAs will be able to see where tech time is going. It color codes productivity on individual jobs so if a tech is taking 4 hours to do three hour jobs, you know you need to look at his performance or your estimating. An added benefit is that it gives you an automated timeclock for wage/hour purposes. If you are not going to make your techs punch work and breaks in and out it probably is a waste of money. For any fans of Vin Waterhouse, a tool like this will help you fine tune your factory. Takes discipline.

Definitely need an accountant and one that understands your business. Quickbooks is a great product, but you still have to understand accounting principles to make it work. A good accountant can give you advice on large equipment purchases and associated depreciation. Our tax code has made it complicated to run a small business. You don't want to be surprised by a big tax bill each year, so find an accountant who can help you plan for the future.If you want a recommendation for one of the best in the business, email me.

If you can measure it, you can manage it. We use a product called LPM as timeclock and a tool to measure tech productivity. It lets techs and management see where their time is going.

We have been ATI clients for about seven years off and on. We were on the brink of financial disaster about three years into shop ownership, primarily because we didn't know what we were doing from a business perspective. I always thought that hard work and common sense would bring success, but there are so many forces working on you that you can't achieve real success without expert help. We joined ATI seven years ago and spent two years being C students and learned enough to dig ourselves out of the hole we had dug. Then I decided I could use that money elsewhere. Big mistake. After about a year, we found ourselves still struggling and missing the help we had been getting, so we joined back up and we won't go without some form of tutoring and business coaching again. Even the best athletes have coaches to keep them focused and to sharpen their game. We have had different coaches at ATI, but the gentleman we have been working with for the past few years is amazing. He guides you, but makes you do the decision making and he holds us accountable for the things we commit to. A couple of years ago, we joined an ATI twenty group composed of shops similar to ours. We actually look at each other's numbers and we have all found that shops have similar problems. The group sets group goals and as a member, you have to commit to work on achieving them. ATI has allied themselves with companies who are experts at every aspect of competing in this business. If I sound like an advertisement, it's because I credit these guys with saving my butt. We now have two shops with great car count, great margins, but we struggle every day with ARO - but we're not struggling alone. It may seem expensive, but if you put aside ego and take advantage of what they have to offer, it's free. Go to the one day class.

"Work on your business, not in your business"

Get a professional coach to set standards and help you attain them.

Have fun!

We have had great success with Mudlick, but this is the first I heard about this event. Thanks.

We used Alldata Manage - not much there. Used Napa TRACS, - . Don't want to talk about it. Settled on RO writer. Expensive but worth every penny if you use it right.

NAPA provides us with labor reimbursement for defective parts. NAPA Autocare is a great program. We pay our techs based on a matrix that encompasses certs and production hours. It was set up with the help of our coach. Mostly, it insures that we can still be profitable if a tech goes into overtime. Make employees punch a timeclock and pay overtime. Don't bother trying to find tricks to bypass the OT requirement. If an angry employee decides to file a wage - hour complaint, you are guilty until YOU prove you are innocent.

We are a franchisee of The Hybrid Shop. Definitely a profit center, primarily for Prius - not so much for Honda. Margins for Prius battery conditioning are great. THS is a fractional franchise. They don't try to muck around in my business. They trained us and sold us specialized equipment. We pay them fees for the batteries we condition. The batteries have brought us a stream of income for other hybrid maintenance. as a sideline we became a used car dealer specializing in hybrids. Webuyuglyhybrids.com

Productivity is important, but it's equally important to manage the profitability of the work you are doing. We all have loss leaders like oil changes and state inspections. You have to make sure you are getting these done with the cheapest labor possible. We struggle with the master tech who doesn't want to give up the oil change that's on a big ticket so we end up paying him $30 per hour to do lube tech work.

Used DF for years and like them as far as they go. Recently switched to Kukui. Amazing program. They do it all - website, CRM, SEO, social content, adwords.

Mark Anderton

First Landing Autocare

Virginia Beach

We use a product called Labor Profit Management. It tracks productivity and makes your techs aware of their performance. It also fulfills the requirement for a timekeeping system for wage and hour purposes.

Mark Anderton

First Landing Autocare

Virginia Beach

I'm sorry, but using common sense left me with mediocre margins and low profits. Get a management system that employs price matrix and stick to it. Train your SAs that discounts other than planned promotions are not allowed. Fire them if they continue to discount just to make sales. Get a coach who will sit down with you weekly and make you compare your numbers to established baselines. We average 59% or better margin on parts and 56% or better GPM by strict adherence to established processes.

Mark Anderton

First Landing Autocare - two locations

The Hybrid Shop of Hampton Roads

First Landing Auto Sales

firstlandingautocare.com

hybrid757.com

webuyuglyhybrids.com

firstlandingautosales.com

Our waste oil heaters have been very reliable with annual maintenance. Each of our shops has double wall tanks with extraction systems to move the oil. Heaters pull from these tanks in the winter. In the summer we are paid by a company that comes and pumps it out. You have to be very careful to NOT let them pump it in the fall and leave you hanging on that first cold day.

Mark Anderton

First Landing Autocare

Heck, it took me three years to figure out I wasn't making any money. I would not be in business today if I had not enlisted the help of a coach. Get a good one, put aside your ego and do what they tell you regarding marketing, margins, hiring, etc. No one is a genius in all of the skill sets needed to be a success in this business. My family and I have been coached for seven years and will continue to be. It has more than paid for itself in increased car count, sales and terrific margins. I will be happy to talk about who I use offline - not going to promote here.

Mark Anderton

First Landing Autocare