Tires Too

We do use Snap-On equipment and some Bosch scanners. The aftermarket tools are definitely getting better, but the factory tools are still the best. The difference is not so much in the engine management areas where much of the info is mandated by the EPA, but we see more holes in airbags, body control modules, HVAC controls, VSC, ABS etc. Many of the OE's have made there tools and subscription much more affordable. Initial software purchase seems to be $3,000 to $4,000 per manufacturer. Most domestic and Asian platforms will run $1,000 to $2,000 per year for subscriptions to the manufacturers site for reprogramming etc. We put several makes on 1 laptop to save some hardware cost.

I sit on the local high school's advisory board for the automotive program. The problem that they have, just like we have, is getting kids with the needed skills and aptitude involved in the program. What the solution is, I do not know. The perception of auto techs, just like many of the trades, is that it is below many of the better students. Maybe we, as shop owners, need to open a dialog with the guidance counselors at these schools so they understand the needs of the industry and what the benefits of a career in the industry are. We have worked with several Vo-Tech schools to do an internship with some of the students. It has been a mixed bag. Some should not have been in the program, but I have hired several of the kids as they graduated. The high school and Vo-Tech programs in conjunction with AYES and NATEF have worked to change their programs so that these kids can be productive with light repairs and maintenance work when they start.

We have used the diagnostic trees on All Data or Identifix as a sales tool. When we pull the code(for free like the parts stores) we will then print out the tree. We will then show the customer the"tests" we will be performing and letting them know the cost associated with that test. Once we have the results of that test we may have the cause and the repair needed, or we may need to move on to additional testing. The customers may not quite understand what we are doing, but it at least gives them an idea of how the process works to diagnose a car.

We need to let the "Retail Parts" Houses know how we feel. DO NOT BUY FROM THEM. Joe, I know you have been in contact with Advanced Auto and their purchase of Car Quest and World Pac, but I'm having a hard time continuing to buy from them for the same reason. These Retail parts houses continue to put the perception out there that they can buy an alternator for $49.95, brakes are $19.95 etc. They make it seem like it should take 5 minutes to diagnose any problem on a car. Either they are with us or they are against us. They can't have it both ways!

I always though New England had some of the highest costs of living and that wages were higher here than in many parts of the country. Around here a fast food worker is going to make around $8.00 per hour, $320 per week, $16000 per year. None skilled labor worker are maybe $12.00 per hour, $24K per year, if it's year round work. I haven't had issues finding good techs at our pay levels. We do pay 50% of the health insurance premiums, match dollar for dollar up to 3% of pay for retirement, pay for uniforms, training, ASE certifications etc. What's an entry level teacher making in your area? Around here $30k. That's with a 4 year degree and possibly $100k in student loan debt.

Robbie, Make the most out of it. Like many things in life you will get out of the process what you put into it. Do you know who your coach is going to be? If you have questions, need to vent, want another opinion from someone who has been though the process call or email me. Russ

slowtech, I don't believe that is true. An entry level tech is going to make 20K plus with the expectation to move up pretty quickly. Within a year that tech should be making 30K or there is a problem with their skills or their employers pay schedule. After several years a good tech should be making 50K or more. I don't know to many burger joints paying that kind of money.

Both NAPA and AAA require a 24/24 for their approved shops. We do a 36 month, 36,000 mile warranty.

Thanks mmotley, It'll be interesting to think outside the box a little bit.

I have been discussing it with some of my "A" list customers. They really do not care how we break it out on the invoice. They know they are paying for our "service" and they find value in what we do. Parts for free or for $250 doesn't really matter to them. I believe I can speak for the majority of shop owners in saying that we do not get much push back on our labor rates, but do hear about parts pricing, so why not change the dynamic on how we structure our profit model? I've have a 20 group meeting May 21-22 and I'm going to bring it up for discussion again, I'll let you know what I get for feedback. Russ

bstewart, Now that's the rub, I haven't worked up the testicular fortitude to implement that program yet. I've been throwing it out for discussion for some time, but have not really gotten much feedback from other shop owners or even my coaches at ATI. I'm looking for some input from others, should we hijack this thread or start a new one? Russ

I agree with you mmotley. We quote prices for the job (brake job is $350). The customer is OK with the price until they pick up the car and see $220 for parts and $130 for labor, that's when they start to complain about the parts pricing. I know many shops do not break out parts/labor on their invoices and I have thought about doing that, but it feels like I am not being honest or transparent with the customer. I am seriously considering going to the pricing model that mmotley is suggesting. At the end of the day we still collect $350 for that brake job, now it's $250 for service and $100 for parts. Makes some sense to me. What do you guys think?

NTK is listed as the OEM (Original Equipment Manufacturer), AC Delco is listed as OES (Original Equipment Service) but I believe that NTK makes them for AC Delco. I am getting that information off of the WorldPac site.

I have not used them specifically, but have done this type of marketing in the past with good results. I know that ATI and NAPA have recommended Moving Targets specifically as a vendor.

NTK is the OEM Supplier for these sensors.

We worked with 4 other NAPA Auto Care shops in the area on the car. NAPA donated the parts, we donated the labor. At retail we had over $5,000 into the car. We have definitely created some buzz about the event and will see what it brings in the future. One of the best things so far has been working together with the other shops. Hopefully we will continue to work together to promote and market our businesses in the future. As we went around to other local businesses to promote the event a number of future cross promotional ideas have been discussed. We are looking at doing a local car show with a couple of businesses that share a large parking area. Just getting out and talking with other local businesses was worth the effort.

Our Car Care Awareness Event was a success. We posted some pictures on our face book page facebook.com/RockinghamCountyAutoCare take a look at them. We inspected 35 cars during the event and had another 15 - 20 people that stop by to talk with us. The local news paper is doing a story about the car that we fixed up and presented to the young mom at the event. Hopefully we will get some good press out of this versus the type of story much of the media likes to run about the auto repair industry.

I have run into the same situation. I called the local Chevy dealer a few years ago to get Dexos oil for a customer's car. They didn't know what I was talking about even though GM was very specific in the oil specs/requirements for their cars. I have run into many new vehicles that spec 0W20 synthetic that dealers have been servicing with 5W20 conventional oil. On a slightly different note, I've quoted a number of 30,000 mile services for Toyota and Honda vehicles that I was told I was very high on compared to the Dealer. I have found that the Dealers are quoting $160 - $180 for what amounts to an oil change (most likely with the wrong oil) and tire rotation, maybe an air filter. The cabin air is additional. Any additional services are extra. Anybody else seeing this?

We are hosting an event next Saturday the 19th. We have been working together with 4 other shops over the winter fixing up a car that we will be presenting to a single mom at the event. We have a facebook page set up for the group, it's facebook.com/RockinghamCountyAutoCare. It's the first time that we have hosted an event so I have no idea what kind of a turnout we may have, but it's been great involving some other local businesses together to work on the event.

Shouldn't we make on oil changes? I'm not saying I do, but dam, we offer a lot of value for a $35 oil change. I've been trying to change how my shop and my customers think about oil changes. It's not an oil change it's a "5k or 7.5k service". I wish I could say that I've been successful in implementing this but I haven't YET. We will continue to try and remove "Oil Change" from our service offerings and move toward maintenance services. I do see owners of European cars more receptive to this type of service(but we do very little Euro), Asian import car owners can be educated but Domestic car owners are very hard to get through too.

Our basic rate is derived by using a standard formula in the industry to make a 60% gross profit on fully loaded tech cost. The tweaks are based upon some marketing considerations(Brake work, state inspections), difficulty of the work(oil change services, fluid services - lower, diagnostic - higher). This is an attempt to be competitive on services that are "Marketed" in our area and also to maximize revenue in areas that are less price sensitive and/or more difficult. It is a "First Step" in the process.

The closest thing to a standard shop rate is $89.67.

The short answer is absolutely. It's not just the alignments that you will do, it's all the other steering and suspension work that you get that makes you money.

We have sub categories for our labor operations, oil changes are $25.00 per hour, State safety inspection 60.00, standard brake work 81.88, A/C Work(not electrical) 84.93, Timing Belts $92.83, Electrical work 99.98, Diagnostic work 119.95 etc. We are not required to post a shop labor rate so it may be an issue in those states that require a posted labor rate.

Corghi was one of the first rim clamp machines available. I had one years ago and had good luck with it. Service was a bit of an issue. I have been using Hunter for the last 15 years because they do have good service available, but we rarely need it.