05.20
STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS
THE SECRET TO FLAT RATE BUY-IN PAGE 62
MASTER YOUR GOOGLE RANKING PAGE 48
STAY TRUE TO YOUR ROOTS
COVID-19’S INDUSTRY IMPACT PAGE 20
Continuous Improvement Dick Gordon has managed to grow and evolve—without changing his shop’s identity.
PAGE 40
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05.20 VO L . 0 8 N O. 0 5
M A Y
A Place to Grow BA Automotive has been a staple in the community of Columbia, Md., since 1978.
F E AT U R E
P R O F I L E
C A S E
34
40
62
70
When it comes to taking over the family business, it’s important to maintain what was built, but also create your own vision in the process.
Frustrated with his shop’s efficiency, Stephan Cairl, owner of Lonsbury Garage in Angola, Ind., decided to switch his employee’s pay plan to a flat-rate system.
Applying what he learned from his own mentor, Ben McMillen is adapting to life in a new leadership position as shop foreman.
HIRE RIGHT
From reaching out to candidates to asking the right questions, this revamped guide to hiring will freshen your approach and help you identify and sign top talent. BY TESS COLLINS
BALANCING ACT
B Y A B B Y PAT T E R S O N
S T U DY
A NEW WAY TO PAY
R E PA I R
L I F E
LEARN TO LEAD
B Y A B B Y PAT T E R S O N
COURTESY BA AUTO
B Y A B B Y PAT T E R S O N
PRINTED IN THE U.S.A. COPYRIGHT ©2020 BY 10 MISSIONS MEDIA LLC. All rights reserved. Ratchet+Wrench (ISSN 2167-0056) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. Ratchet+Wrench content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: Ratchet+Wrench, 571 Snelling Avenue North, St. Paul, MN 55104.
ON THE COVER: DICK GORDON PHOTOGRAPHED BY DANIEL J. SMITH
05.20 / R+W / 5
TA B L E O F C O N T E N T S
J U M P
S TA R T
11 ONLINE
20 BREAKDOWN
12 NUMBERS
23 VIEWPOINT
14 AWARDS INSIGHT
24 SPEED READ
Economic downturn survival tips
COVID-19 industry trends
The business impact of the pandemic
Handling pandemic repercussions Stimulus package passes
Win customers for life
17 EDITOR'S LETTER
28 SHOP VIEW
Overcoming obstacles
Henn Automotive in Waxhaw, N.C.
31 STRAIGHT TALK
The difference between price and value
31
JOE MARCONI
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What a crisis teaches us
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66 CUSTOMER SERVICE
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69 THE BOTTOM LINE
MITCHELL 1
HI-TECH TOOLS MAKE THE SHOP
Tech drives your business forward
The one question you need to ask yourself MITCH SCHNEIDER
The future outlook
INDUSTRY-LEADING SOLUTIONS
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48 SALES & MARKETING
82 THE FIXER
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SHOP -WA R E
SHOP-WARE IS CUTTING EDGE
Revolutionize the parts matrix (& more)
A ARON STOKES
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EDITORIAL VICE PRESIDENT, CONTENT AND EVENTS Bryce Evans EDITORIAL DIRECTOR Anna Zeck ASSOCIATE EDITOR Tess Collins STAFF WRITER Abby Patterson SPECIAL PROJECTS EDITOR Jordan Wiklund SPECIAL PROJECTS EDITOR Nora Johnson CONTRIBUTING WRITERS Hanna Bubser, Joe Marconi, Mitch Schneider, Aaron Stokes, Rissy Sutherland, Courtney Welu PRODUCTION ART DIRECTOR Zach Pate GRAPHIC DESIGNER Lily Risken GRAPHIC DESIGNER Nicole Olson GRAPHIC DESIGNER Morgan Glisczinski PRODUCTION ARTIST Lauren Coleman SALES VICE PRESIDENT AND PUBLISHER Chris Messer 651.846.9462 / cmesser@10missions.com ASSOCIATE PUBLISHER Andrew Johnson 651.846.9459 / ajohnson@10missions.com MARKETING STRATEGIST Matt Walz 651.846.9463 / mwalz@10missions.com REGIONAL ADVERTISING SALES Ross Kirgiss 651.846.9485 / rkirgiss@10missions.com CUSTOMER SUCCESS REPRESENTATIVE Shayna Smith 651.846.9460 / ssmith@10missions.com CLIENT SERVICE SPECIALIST Jen George 651.846.9465 / jgeorge@10missions.com 10 MISSIONS MEDIA PRESIDENT Jay DeWitt GENERAL MANAGER AND PRODUCTION MANAGER Mariah Straub BOOKKEEPER AND CLIENT SERVICE SPECIALIST Meghann Moore EVENT COORDINATOR Katie Cornet SENIOR DIGITAL MEDIA STRATEGIST Tiffany Fowler MARKETING SERVICES MANAGER Miranda Jama MARKETING COMMUNICATIONS SPECIALIST Kasey Lanenberg ADMINISTRATIVE ASSISTANT Corey Steinhoff EDITORIAL ADVISORY BOARD Jimmy Alauria, 3A Automotive & Diesel Repair Leigh Anne Best, Mighty Auto Pro Ryan Clo, Dubwerx Dwayne Myers, Dynamic Automotive Ricky Jordan, Fifth Gear Automotive Bryan Gossel, BG Automotive HOW TO REACH US 10 MISSIONS MEDIA 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of Ratchet+Wrench. BACK ISSUES Past issue single copies are $8. Go to ratchetandwrench.com/backissues LETTERS TO THE EDITOR editor@ratchetandwrench.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@ratchetandwrench.com. Opinions expressed in Ratchet+Wrench are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.
New Ratchet+Wrench Podcasts.
RADIO
4 SERIES WITH NEW EPISODES EVERY MONTH.
HOW I DID IT. Series featuring a rotating guest each month. Hear about the challenges, opportunities and success stories from shop owners who found a way to thrive. New episode this month.
GROW. Series hosted by marketing expert Frank Leutz. Inside the processes, systems and operational strategies that have allowed the industry’s top shops to thrive. New episode this month.
LEAD. Series hosted by shop operator Aaron Stokes. The go-to resource for leadership lessons, philosophies and success stories. New episode this month.
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INNOVATE. Series featuring a rotating guest each month. An introspective look at the industry’s most pressing topics from the people who know them best. New episode this month.
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POCKET CASTS 05.20 / R+W / 9
Explore the products, training and solutions that Advance and our TechNet program offer to help you stay on the leading edge of technology at my.advancepro.com/future.
10 / R + W / 0 5 . 2 0
ONLINE 05.20 COM M EN T S , DISCUSSIONS , FEED BAC K A N D MORE FROM A ROUN D T H E W EB
MORE OF WHAT YOUR SHOP NEEDS
FEATURED TOPIC:
SURVIVING IN THE WAKE OF COVID-19
—
Ratchet+Wrench has dozens of coronavirus-related stories online, including: Tips for reaching out to customers: ratchetandwrench.com/reachcustomers An index to see how your shop measures up: ratchetandwrench.com/stateofindustry Marketing inspiration: ratchetandwrench.com/creativemarketing For more tips and resources for leading your business through COVID-19, including a look at the Paycheck Protection Program, head to ratchetandwrench.com/COVID-19
PODCASTS
—
—
While working remotely, associate editor Tess Collins shared how the industry inspired her during the outbreak of COVID-19.
Toward the end of March, when shop owners were scrambling to figure out what to do with their businesses, Jimmy Alauria, owner of 3A Automotive & Diesel Repair in Phoenix, shared helpful tips for staying proactive during the coronavirus outbreak.
Read this story and more insights from shop owners and industry experts at ratchetandwrench.com/reportersblog.
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GETTY
TODAY
0 5 . 2 0 / R + W / 11
NUMBERS THE
TOPICS,
TRENDS,
AND
METRICS
DRIVING
FINANCIAL IMPACT ON BUSINESS
YOUR
OPER ATION
HAVE YOU ALTERED PROCESSES?
POSITIVE
NO IMPACT
2.31%
9.25%
NO
22%
YES
78%
NEGATIVE
88.44% 94%
DO YOU REMAIN CONFIDENT ABOUT YOUR BUSINESS' FUTURE?
CHANGES IN CAR COUNT
Mid-March, Ratchet+Wrench sent out a survey to its readers to see how business was being impacted by COVID-19. Nearly 1,000 readers from across the nation responded.
NO CHANGE
5%
INCREASE
1%
NO
24%
YES
DECREASE
76%
94%
More on the Subject For tools, resources and news about the coronavirus, follow Ratchet+Wrench’s coverage. — ratchetandwrench.com/COVID-19
12 / R + W / 0 5 . 2 0
GETTY IMAGES
INDUSTRY IMPACT OF COVID-19 —
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NOW ACCEPTING NOMINATIONS! Know someone deserving of a Ratchet+Wrench All-Star Award? Nominate them today at ratchetandwrench.com/awards
ALL-STAR NOMINEE
BO B BY M ORRIS — OWNER/OPERATOR HOME TOWN AUTO CARE BLOOMINGDALE, GA.
A Loyal Following BY TESS COLLINS
FULL TRANSPARENCY “Honestly, it’s just being up front and honest,” Morris says of the secret to his success with customers. Tell customers what’s going on. If it’s going to take longer than they expected, let them know. If there’s more work that needs to be done, let them know (see a pattern here?). The customer deserves to have all of the available information. That being said, there’s a way to deliver it so it doesn’t feel overwhelming or all doom and gloom. If, for example, a customer comes in for a coolant leak and there’s a problem with the brakes, Morris will give him or her the news, and let him or her know that—if there’s not enough time or funds available to do both jobs that day—the brakes should be a priority because it’s a safety issue. A thorough explanation of what’s 14 / R + W / 0 5 . 2 0
going on will help the customer prioritize the work that needs to be done and will also be appreciated, Morris explains. GET ON THEIR LEVEL That explanation is only useful to the customer if he or she understands it, Morris explains. You should never assume that a customer knows what you’re talking about. That’s why Morris has trained his entire staff to thoroughly communicate issues and use terms that they can understand. Visual aids are a huge help. Customers can understand a lot better if they can see the problem for themselves and using them also goes a step further in showing them that the repair is needed and the repair shop isn’t just out to get more money. Morris utilizes a few programs through
NAPA that show videos of repairs and he also encourages his staff to take photos and videos on their own mobile devices to send to customers. “This way, they can visualize the problem and it helps with sales,” Morris says. STAY CONNECTED Although Morris has changed jobs and facilities throughout his career, he always stayed connected with his customers. Until he opened his current location, he ran a small repair facility out of his own home, which customers continued to visit until the workload got too large and he opened the first Home Town Auto Care location in 2000. Morris gives his personal information out to his customers, so, even when he changed jobs, his customers knew how to reach him personally. Nowadays, the internet has made it much easier for him to stay in touch with customers and bring them back in. Although most customers are good about scheduling their next appointment and usually bring their vehicles back in within a few weeks if additional service is needed and he hasn’t heard from a customer in a few weeks, he’ll pick up the phone and reach out. He also sends emails and coupons throughout the year as a way to stay top of mind.
COURTESY BOBBY MORRIS
Bobby Morris, owner of Home Town Auto Care in Bloomingdale, Ga., has worked at six different automotive repair facilities (and owned two of the six) throughout his career and has had customers follow him from place to place. In fact, he has two customers that still come to him that he first met at his very first job when he worked at a Toyota dealership. “He’s developed a loyal clientele that follows him to different work locations throughout his career,” Morris’ Ratchet+Wrench All-Star Awards nomination reads. Even though the address on his business card may have changed, the level of care that Morris gives to his customers has not. Morris now owns two locations, which between the two, see roughly 150 repair orders per month, and has an estimated customer retention rate of 75 percent.
“OVER THE LAST 19 YEARS, OUR PARTNERSHIP WITH TECHNET® HAS BEEN INVALUABLE FOR OUR BUSINESS. We’ve grown from a four-bay shop into a successful, 12-bay shop. We couldn’t have had this business growth without TechNet helping us and our customers along the way. The support we get from TechNet makes us stand out from other shops.
”
MIKE FALLON SR. & MIKE FALLON JR. Fallon Automotive, Sterling, VA TechNet Member Since June 2001
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16 / R + W / 0 5 . 2 0
EDITOR'S LETTER
Out of Your Comfort Zone
THE OPPORTUNITIES, REVELATIONS AND IMPROVEMENTS THAT CAN ONLY COME FROM DIFFICULT TIMES
LEAH QUINTO
I’m a process-oriented person, like I’m sure many of you are. And in
Ratchet+Wrench every month, that’s an important element to nearly every single story. To be successful, to sustain success, what you do has to be repeatable. You create strategies and systems that allow you to overcome any challenges and bottlenecks you foresee. That last word is the key, because, now, what do you do when you run into an obstacle you never imagined facing, like, say, a global pandemic? That question has run through my mind quite a lot in the past several weeks of hunkering down in my basement workroom that, amid quarantine, has become a makeshift office. Our “normal lives” have been turned upside down. Many of our businesses, markets, and communities have been completely disrupted. These are surreal times. The present state of our lives didn’t seem fathomable a few months ago. But here we are; what are we going to do about it? When we’re faced with new and unique challenges that we weren’t prepared for, I think we only have one option: to improve. Our sole mission at Ratchet+Wrench is to be your trusted resource for the information and strategies you need in order to improve your businesses. And as we all deal with the myriad challenges presented by the COVID-19 pandemic, we’re more focused than ever on helping you and your teams during this stressful and chaotic time. We know you have concerns. We know many of you are reeling from the uncertainty. And we know there is no SOP or playbook to follow in a situation like this. That’s why we’re committed to helping you through it. Our team has already started to amass a wide range of content in various formats (go to ratchetandwrench.com to find it all, or to p. 25, and we’re not slowing down any time soon. There’s already too much hysteria, hyperbole and misinformation out there. We want to focus on solutions, and we want to answer your questions. Please let us know what’s on your mind. Email, call, whatever you can do—but please do it, and tell us how we can help. We’re as focused as ever on pursuing our mission here, and the only way we achieve our goal is to help you hit yours. And you will. It’s one of the many reasons I love being part of the team that creates this content for you, our readers, the small business owners and operators who keep our communities and economy running. The unfailing, indomitable spirit you all carry into your businesses each day is motivating and inspiring. And I know it won’t slow down. I know we’ll get through this. Let’s do it together. Stay safe.
BRYCE E VA NS, VICE PRESIDENT, CONTENT A ND E VENT S BE VA NS@10MISSIONS.COM
0 5 . 2 0 / R + W / 17
05.20 / R+W / 9
J U M P S TA R T NEWS
SHOP VIE W
/
IDEAS
/
PEOPLE
/
TRENDS
28
BREAKDOWN VIEWPOINT SPEED READ
PAUL BOSKOVICH
SHOP VIEW
A Growing Business Since opening in 1999, Henn Automotive in Waxhaw, N.C., has almost doubled in size.
0 5 . 2 0 / R + W / 19
J U M P S TA R T
The Path to Recovery What industry trends signify about the impact of COVID-19 and how to move forward
Many of you reading this may be con-
cerned about the months ahead for your business. The COVID-19 pandemic took the world by surprise and hit small business owners hard. Auto repair shops were lucky in the fact that they were declared “essential businesses,” but with millions filing for unemployment and stay-at-home orders throughout the nation, the spring of 2020 has been anything but business as usual for the majority of automotive repair shops. In fact, a survey issued by Ratchet+Wrench found that 88 percent of shops across the nation saw a negative impact on business and 78 percent had altered business in one way or another due to the circumstances. Here’s a look at what’s been going on 20 / R+W / 05.20
across the nation and some inspiration for the future. Immediate Impact During the time when states were beginning to issue stay-at-home orders and the nation started practicing social distancing, electronic management software provider Tekmetric put out The Tekmetric Index to monitor economical trends and see how the industry was performing as a whole during the wake of the pandemic. The index collected data from 500 auto repair shops of varying sizes in the U.S. and Canada measuring ARO and car count. At the beginning of March, the index found that, on average, car count was at 10
and ARO was $414 (all information was taken from Wednesday, to control for day of the week). After the first week of social distancing, average car count dropped slightly to 9, but ARO actually increased to $444. Two weeks in and car count took more of a hit, with an average of 7, but ARO remained the same. “Overall, March was a mixed bag,” Jim Murphy, pro service coach for Elite, says of what he’s seen with his shops. Some, he says, saw record months, while others took an immediate hit. He’s not been able to draw a correlation with the size of the community or the geographical location, he says it’s been “erratic.” Bob Wills, owner of Wills Auto Service in Battle Creek, Mich., and the
GETTY IMAGES
BY TESS COLLINS
chairman of the Automotive Service Association (ASA) board of directors, says that he spoke with another member of the advisory board for ASA, Todd Black, whose shop, Unlimited Service, is located in Washington. Wills says he and Black saw similar trends in March, despite being in different parts of the country, with scheduling down (Wills says he’s scheduling at about 50 percent) and fewer cars coming in, but that ARO seems relatively the same. The first day of April and the third week into social distancing measures, car count remained at 7 and ARO was at $413, according to the Tekmetric Index. An ARO in the $400 range is pretty typical—in 2019, 34 percent of Ratchet+Wrench Industry Survey respondents reported being in the $400– $599 range, with only 24 percent reporting a higher range. On Wednesday, April 15, ARO rose to $445 and car count also increased to 8, showing signs of an upward trend that will hopefully continue. Wills projects that May will be a cushion month, much like January or
February is after Christmas. People will be recovering financially and have bills to pay, so car count may pick up slightly but he doesn’t see it getting back to seminormal until June. Moving Forward “Eventually, we will get out of this induced coma that we’ve been placed in,” Murphy says. Murphy likens this situation to a natural disaster. Afterward, there’s always a hit to businesses, but eventually, everything sorts itself out. The difference is, with this pandemic, the exact timeline for “business as usual” is unknown. The positive for automotive repair shops is that new cars sales were on a downward trend anyways, and in times of financial distress, people aren’t buying vehicles, which means they’ll need to maintain the ones they already have, Murphy explains. So, moving into the summer, businesses may see more vehicles than normal. In order to make it through, small business owners need to continue to mar-
ket and remind customers that they’re open, Murphy, Wills and Tekmetric CFO and co-founder, Prasanth Chilukuri, say. One effective way to do this is by helping out in the community, something that Murphy says many of his clients are doing. “It’s been encouraging to see how many have embraced doing community events,” Murphy says. “[shop owners] are working with oil and filter vendors and seeking donations and supporting medical and first responders for free oil changes and picking up and delivering their vehicles.” Another important lesson is to learn from this experience, Chilukuri says. “This is a refreshing lesson for all of us,” Chilukuri says. “We can see where we can cut down costs and where we can be more efficient. Make sure you maintain enough cash in the bank. I think what shops need to be aware of is that this [the virus] could come back in the Fall when it cools down again. Those that survive need to take that into account.” 0 5 . 2 0 / R + W / 21
NOMINATE BEFORE
JUNE 15! Recognize your talented peers by nominating them for the highest award in automotive repair: the Ratchet+Wrench All-Star Awards*
SUBMIT YOUR NOMINATIONS AT RATCHETANDWRENCH.COM/AWARDS *all nominators will receive a discount code for the 2020 Ratchet+Wrench Management Conference 22 / R+W / 05.20
J U M P S TA R T
Lead With Hope Tips for handling the economic repercussions of COVID-19 BY TESS COLLINS
Dave Schedin CEO CompuTrek Automotive Solutions
There is not one person reading this who
is not impacted by the COVID-19 pandemic. The need to close down businesses and create social distancing will change the economy for the foreseeable future. Small business owners are some of the most vulnerable to this. “Every business is going through this,” Dave Schedin, CEO of CompuTrek Automotive Solutions, a coaching company for the automotive industry specializing in cash flow, says. Although it may seem bleak at the moment, automotive repair shops may actually have an advantage. While many small businesses had to or continue to be shut down, auto repair shops have been deemed “essential businesses” by a number of states, allowing them to stay open. In order to come out of this in the best way possible—and learn a valuable lesson for the future—Schedin shares his tips on how you should go about handling your relationships with your staff, customers and vendors. How should you approach difficult conversations with your employees
when they’re unsure about their—and the company’s—future? No. 1, shop owners need to make sure their team feels safe. Not just from the coronavirus—safe in the longevity of their job. Speak hope into people. Leaders need to create a clear plan of what he or she is doing to handle the current situation and communicate what they’ve done in precaution already. Daily meetings are a great idea. Even more than one per day. Don’t let unspoken thoughts not be spoken. Check in with your employees and let them know what’s going on. It’s important to let them know the financial stability of the company. If you don’t have cash reserves, it can be a challenge. What should you do if you’re not financially stable? You can still build hope—but you need help from everyone. Communicate the importance of banding together. Let your employees know that everyone is impacted by this, so if they’re thinking of going somewhere else, chances are that other places are not hiring. As a leader, you need to put a plan in place and the truth is, it’s going to be difficult. Many shops will have to cut wages—maybe 25–50 percent in some cases. Rotational schedules and reduced salaries and wages will help, in some cases, keep the doors of a shop open, so communicate that to your employees. We need to make sure everyone’s core livelihood is protected, even if that means dropping employees down to part time. Owners can’t be afraid to spell the truth out. If we band together, we have a better chance of surviving and coming out the other side. If you are in financial trouble, what can you do? As soon as possible, start reaching out to lending institutions. Reach out to the Small Business Administration (SBA). Reach out to your accountant. They have resources that can help you. The great thing about any obstacle is that it teaches you something. One of the lessons from this is the importance of building up a cash reserve. This is my philosophy: In your cash reserve, you should have anywhere between $20,000–$30,000 for each tech you have in reserve, depending on your business model. You could also do it per bay. For example, $15,000 in reserve per bay.
Let’s say you have $100,000 in cash reserve. That will allow you to operate for 2–3 months with almost no income. However, this is the key: When that reserve drops to $99,999.99, you need to think of your reserve as a penny short. You need to keep building more. You need to build a reserve for marketing. This doesn’t mean you can’t use your reserve—don’t go into debt when you don’t need to—but remember to build it right back up again. If business is slow, what should shop owners do to keep businesses afloat? If you’re slow, now is the time to take advantage of training. Now is the time to upgrade and start servicing hybrids. Get your people trained. This way, when things get back to normal, your staff can perform on higher levels. Another piece of advice that will help get customers in and hopefully prevent layoffs is get customers through the door. You can have someone work remotely and call customers. Get on the phone and go after your database like you never have before. Say before all of this, you were closing 10–12 cars per day and now you’re closing 4–5. With some phone calls, you could bring it up to 6–8, which can make a huge difference. Now is also a great time to make updates to your shop or equipment. If you’ve always wanted to paint, pay your staff to paint rather than paying a company. Make sure that when it is business as usual, you’re ready to go full force. What about customers? How can shop owners reassure them and get them to continue to come to their business? By this time, everyone has heard the same message over and over. Keep a fresh perspective and reach out to customers. Remind them that you’re still there for them without making a sales pitch. Businesses should reach out and explain what they are doing to ensure their safety. For example, offering pick-up and drop-off delivery, no-touch payment and authorizations and no-touch key drop boxes, to name a few. Also, find a way to differentiate. One shop I work with, when they pick up a vehicle, they’re also offering to fill the customer’s car up with gas. It’s the customer’s money, but they’re making it so the customer has one less place to go and preventing them from going out when they may feel unsafe. 05.20 / R+W / 23
J U M P S TA R T
$2 TRILLION STIMULUS PACKAGE PASSED The U.S. House of Representatives passed the third Coronavirus stimulus package, the Coronavirus Aid, Relief and Economic Security Act, (CARES Act) worth $2 trillion, according to a press release from the Automotive Service Association (ASA). The legislation includes increased funding and relief for small businesses and loan forgiveness programs.
TRUMP ORDERS GM TO MAKE VENTILATORS On March 27, President Donald Trump activated the Defense Production Act, telling his administration to order General Motors to prioritize contracts to produce breathing ventilators, reported The Detroit Free Press. He issued a memorandum telling Health and Human Services Secretary Alex Azar to use “any and all authority available under the Defense Production Act to require General
Motors to accept, perform, and prioritize Federal contracts for ventilators.” The Defense Production Act allows the president to force industry to accept and meet federal contracts and prioritize production to meet emergency preparedness needs, according to the report.
GM CUTS WORKERS’ PAY In March, General Motors told its entire salaried workforce, which is about 69,000 employees, that it will temporarily cut 20 percent of their salaries amid the coronavirus outbreak, reported CNBC. About 6,500 U.S. employees who cannot work from home will go on paid leave, which the company is calling a “salaried downtime paid absence.” The workers will receive 75 percent of their pay, keep seniority and retain health benefits. Executives are also taking cuts of 5 percent or 10 percent to their cash compensation, excluding bonuses, stock options or other incentives.
REPORT: AMAZON CAPTURES MILLENNIALS According to a Lang Marketing report, Amazon was rated the most relevant brand for millennials. In the report, millennials rate Amazon as the most relevant brand, beating out tech giants like Apple and Google, along with consumer product/service brands like Sony, Starbucks and Nike to name only a few. Amazon’s interest in the aftermarket is based largely on the access it can provide to the much bigger mobility market, which in the future will amount to trillions of dollars. “Amazon's top ranking by millennials has significant implications for the development of auto parts sales by Amazon, which has shown a growing interest in the aftermarket and the access it can provide to the trillion-dollar mobility market,” said Jim Lang, president of Lang Marketing.
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K E Y I N S I G H T S , T R E N D S A N D S T R AT E G I E S F O R T O M O R R O W ’ S I N D U S T R Y—T O D AY A D A P TA U T O M O T I V E . C O M
A D A P TA U T O M O T I V E . C O M / FA C E B O O K
T W I T T E R .C O M /A DA P T_ AU TO M OT I V E
THE ADAPT INTERVIEW
Blockchain’s Horizon ADAPT produced two stories that explored the potential for blockchain technology in the automotive industry. One area that’s already getting traction is the digital vehicle identification, which would change the way shops interact with vehicles. Lucy Hakobyan, head of program at the Mobility Open Blockchain Initiative (MOBI), has been working with tech and automotive stakeholders to develop standards around this idea. “We are exploring the lifetime events that will become part of the vehicle identity,” Hakobyan says. “That includes repairs that are made. That includes part replacements, accidents and claims. And repair shops are one of the stakeholders in this ecosystem, and potentially one of the adopters of blockchain technology going forward and enabling, really, the concept of vehicle identity.” Developing the standard means that there will have to be an agreed format for how shops enter data, how parts are logged, whether or not the reason for a repair is logged, et cetera. That way, the vehicle identity is consistent and easier to use no matter who is working on the vehicle. To learn more, head to adaptautomotive.com/blockchain.
ADAPT TREND REPORT Head to the ADAPT website to sign up for the ADAPT Trend Report newsletter to have the latest news, strategies and transportation trends sent to your inbox every week. adaptautomotive.com/newsletter
Registration and hotel accommodations are now open for The ADAPT: Automotive Technology Summit. The full two-anda-half-day schedule is available at adaptsummit.com.
GETTY
DECEMBER 6 - 8 NASHVILLE, TENN.
Check out the growing list of episodes on the ADAPT Podcast. In one recent episode, Automotive Service Association’s Bob Redding lays out the need for vehicle data regulations, as well as the laws of OEM repair procedures. In another episode, collision shop owners Kye Yeung and Mark Olson give tips and tricks that any shop owner needs to know about taking their shop further into the 21st century. adaptautomotive.com/podcasts
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J U M P S TA R T
1
Henn Automotive BY TESS COLLINS PHOTOGR APHY PAUL BOSKOVICH
SHOP S TAT S
1 / Community Growth
Owner: Mike and Susan Henn
When Mike and Susan Henn opened their shop, Henn Automotive, in 1999, it was 4,800 square feet. A year and a half into owning the business, they added four bays, two heavy duty alignment racks and a little over 3,000 square feet. “Our town was growing and there was a need for it. There’s so much growth in this town, we knew it [the shop] would expand,” Mike says
Location: Waxhaw, N.C. Size: 8,000 square feet Staff Size: 14 (including parttime workers) Average Monthly Car Count: 415-420 ARO: $400 Annual Revenue: $2 million
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2 / A Popular Pastime The town of Waxhaw, N.C., is what Mike refers to as a “heavy horse community.” Because of this, the Henns saw an opportunity for an additional revenue stream with the amount of larger trucks in the area used to pull the horse trailers. The shop has two heavy-duty racks— an alignment and a heavy diesel/large vehicle capacity rack. The shop also serves trailers. There are two full-time employees and one part-time employee who exclusively does trailer work. Each year, the shop services roughly 600 trailers.
4 3
HAVE AN OUTSTANDING SHOP? Send a few photos and a brief description to submissions@ratchetandwrench.com and we might feature it here.
3 / Past to Present One of the most commented-on areas of the shop are two framed photos in the lobby, Susan says. They are aerial photos of the shop, taken the year it was open and then 10 years later. The photos show the growth of the shop and the town. In the first photo, the shop was the only building visible in the middle of the woods; since then, the community has expanded quite a bit.
4 / Hometown Feel
2
Susan designed the lobby to have a “hometown country theme.” The lobby is small, which was intentional. The Henns believe it makes customers feel more connected to the staff and makes it feel more homey. “I’ve noticed people are taken aback when you try to do too much,” Susan says. “When it’s overdone, I think people think you might overcharge. It’s nice and middle-of-the road.” 05.20 / R+W / 29
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Columns
STRAIGHT TALK Joe Marconi
IS IT REALLY ALL ABOUT PRICE? When the perception of value diminishes, price becomes the focal point
GETTY, MICHAEL HOEWELER
Nick is on the front lines of customer
service each day. He is a talented service advisor, with a passion for helping others. Nick and I often debate what’s more important to the customer: price or value? He’ll often tell me, “I know you preach value, Joe, but people care about price, too. In the end, price is a major concern.” I always respond, “Nick, it’s not all about price; it’s really about value. Build a strong relationship, reach the customer emotionally, have them believe in you and they will trust you. And when that happens, price will not be the focus.” Here’s the reality. I would be lying to you if I told you that price has absolutely no bearing on a person’s decision to buy from you or not. However, are consumers only interested in price? I know that sometimes it may appear that
way, but the bottom line is this: being competitive and profitable is a fine line we walk each day. When the perception of value diminishes, price then becomes the focal point. Nick, who debates me on the philosophy of value, learned a valuable lesson recently, which made him a believer that there is most definitely a difference between value and price. About a month ago, a first-time customer called us to ask if we could take a look at her son’s tire, which was losing air pressure. Nick took the call and said, “Sure, we would be happy to help you.” He took down all the needed information and let her know that he would follow up with a phone call as soon as her son arrived. When the son arrived, Nick wrote up the car and dispatched it to a technician and then called the mother to let her know that her son had arrived. He also
Joe Marconi has more than three decades of experience in the automotive repair industry. He is the owner of Osceola Garage in Baldwin Place, N.Y., a business development coach for Elite Worldwide and co-founder of autoshopowner.com. j.marconi@eliteworldwide.com ratchetandwrench.com/marconi 0 5 . 2 0 / R + W / 31
STR AIGHT TALK / JOE MARCONI
let her know that he would call her as soon as he knew something about the tire.
“IF YOU WANT TO MAKE MORE SALES... SELL VALUE, SELL RELATIONSHIPS AND SELL A POSITIVE EMOTIONAL FEELING.” JOE MARCONI OWNER OSCEOLA GARAGE
About 10 minutes later, the tech informed Nick that the tire was damaged from riding with too little air pressure and that the tire would have to be replaced. He also said that the other three tires looked new and that it would not be a problem replacing the one tire. Nick prepared an estimate for the tire
and called the customer. Nick explained why the tire needed to be replaced and let her know that we could have the tire installed and have him on his way in about an hour or so. Nick then gave her the price for the job. The mother replied with, “OK, give me five minutes and I will call you right back.” Fifteen minutes later the mother called, and said, “Nick, I found another shop that will install that same tire for $50 less than you can do it for. So, can you put air in the tire so I can have my son drive it to the other shop?” Nick thought for a second and responded, “putting air in the tire and having your son drive his car to the other shop is not safe. Here’s what I will do. I will have my technician put the spare on the car. He’ll also check the tire pressure in the other three tires. After all, we want to make sure that your son is safe.” The mother thanked Nick and hung up the phone. A few minutes later, the mother called again, asked for Nick and said this, “You know, Nick, you were so nice to me from
the very beginning when I first spoke to you and right up to now, and you put my son’s safety first. You also didn’t try to force me into buying your tire. Please install the tire at your price.” Nick, now on cloud nine, hung up the phone and told the tech to finish up the job. Nick learned a valuable lesson that day. He learned that he didn’t sell a tire— he sold something much greater. He sold an emotional feeling. He reached the customer on an emotional level and the price of the job became less important. Does this work with everyone? Of course not. But, if you want to make more sales and build the right clientele, sell value, sell relationships and sell a positive emotional feeling. Later that day, Nick told me what happened. I could tell that he was proud of how he handled the situation. And he should be. I just listened as he told me the entire story and relived the moment. After he had finished, I calmly asked him, “So Nick, is it really all about price?” Nick just smiled.
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S H O P S P OT L I G HT
Prestige European Auto Service: Eric Rutherford K E E P I N G T H E W H E E L S T U R N I N G AT A C R I T I C A L M O M E N T
19 years W dealership. After 1 years of working on both Audis and BMWs, he was ready to be his own boss and purchased an auto repair shop known today as Prestige European Auto Care.
Eric Rutherford got his start in the auto repair business when he was
SHOP PR L ES T A T S SO HF OI P
old at a BM
Prestige European Auto Service Owners: Eric Rutherford, Mike Difato
After a few years of operating Prestige European, Eric realized that he was tied to the shop. When a friend told him “You don’t own a business, you own a job,” Eric realized he needed to get out of his own way if he wanted his shop to grow.
Location: Ft. Lauderdale, Florida Staff: 7 Average Monthly Car Count: 140
p with business partner Mike Difato and began to restructure s g Automoti瘀e by using inno瘀ati瘀e tools to empower his team. Their shop has grown from ¿300,000 in annual re瘀enue to about ¿1.· million in f瘀e years.
Average Repair Order: ¿9·0
Eric teamed u Pre ti e
In recent months, Prestige European has been put to the test and had to quickly adjust business practices to address COVID-19. Luckily, Eric, Mike, and his team ha瘀e acted quickly and worked together to continue pro瘀iding ser瘀ices to guests in a safe manner.
Number of Bays: 9 Shop Management System: Tekmetric
“We're going to use this time to make our shop better.”
W h = Auto " e p a i r i s Es s e n t i a l
How
p still need to work. They still need to pro瘀ide for their families. There are of 瘀ehicles that still need to be on the road. It’s not just emergency 瘀ehicles. We're working on plumbers' cars, grocery store employees' cars, pharmacists, nurses, and doctors' cars, all of whom are on the front line helping our communities and their families. These are all essential businesses that we need to be there for.
We’re doing e瘀erything we can to limit the spread and keep each other safe. I y guys to abide by the six-foot rule. We're in a big enough shop where we don't ha瘀e to be on top of each other. My shop foreman can dispatch work right from Tekmetric, and e瘀erybody can see it from their own workspace.
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P l a n n i n g To g e t h er a s a Te a m
y team brought their concerns to me and Mike. A lot of ideas and suggestions came from them. We're being 瘀ery upfront because there's so much unknown out there. As we entered April, we made sure that they knew what our plan was. We had two weeks worth of cars to work on, and I presented a list of two weeks worth of shop projects like painting the walls, landscaping, and pressure washing the oor. I told the guys,
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We put a parts table out by the gate, so the parts guys can dri瘀e up, drop off the parts and go. We switched to touchless payment processing with Tekmerchant, so we can now use text-to-pay with our customers. I ordered a cell-phone locker to use for guest pickups. We text the customer the code, park their car in a neighboring lot, and let them grab it. We e瘀en ordered 1,000 little boxes of hand sanitizer with our logo on it to put in e瘀ery car after we're done with them along with our Thank You note. y team, my shop management system, my 瘀endors, and my guests all played n helping us stay in operation.
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to read the full story. For more info about Prestige European Auto Service, visit PrestigeEuropean.com.
05.20 / R+W / 33
THE HIRING HANDBOOK 14 tips to revamp your approach to seeking talent BY TESS COLLINS 34 / R+W / 05.20
avid Roman, owner of Done with Care Auto Repair in Merriam, Kan., used to hate hiring. Why? “It’s the most difficult thing to do—there’s so much risk,” Roman says. “There’s an immense amount of work and very little payoff. Most of the time, the person doesn’t work out. It’s very difficult to do successfully.” Roman’s views on hiring have changed quite a bit, in fact, he now teaches classes on how to find the best candidates possible. However, he didn’t get to this place overnight, he (just like you) had to put the work in. In 2019, Roman had to replace a tech. He did the usual; he put out an ad and got a variety of candidates, including those that were “ridiculously underqualified.” Being fed up with the entire hiring process, Roman decided to take a different approach and create a system that would allow him to be more successful. He decided to begin targeting applicants as he would potential customers and has since created a marketing-based approach to hiring. “Currently, at this moment, we’re in a buyer’s market. The tech has all the power,” Roman says. “But, as shop owners, we have the mindset that we hold all of the cards.” That is not true, Roman emphasizes. With a tech shortage, a top-quality candidate has his or her “pick of the litter” when it comes to where he or she wants to work because he or she is in such high demand. Not only that, but the workforce is changing. Millennials and Gen Z are the current talent pool, and the way they look for jobs is different than the generations before them. It’s time to stop putting out the same job posting for A-techs that you’ve been posting for the past 10 years. In order to hire well, the process needs a complete revamp, and that starts with bringing the candidates in.
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THE POST “Nobody likes to put together a job rec (a job posting); they take one that they’ve done in the past and post again,” Casey Welch, CEO and co-founder of Tallo, a hiring platform, says. Stop. Your job posting most likely needs a complete overhaul and should be adjusted for each position. Here are tips for creating a job ad that will attract the best-of-the-best.
1. DON’T GET FANCY WITH THE TITLE.
The title is critical, according to Jackie Ducci, author of Almost Hired: What’s Really Standing Between You and the Job You Want. “People will call it something like a ‘sales ninja,’ but they [the potential applicant] won’t see it,” Ducci says. Keep keywords in mind and what potential job seekers will type in. If you’re looking for a technician, state that in the title.
2. SELL THE JOB SEEKER ON THE COMPANY.
As Roman mentioned, the good hires have their pick of where to work, so the job ad needs to sell them on why they should apply to your shop. Welch says to put an emphasis on the different benefits that your company has—and that doesn’t just mean healthcare. If there’s opportunity for growth, state that. Ducci agrees. “If there’s something special that sets you apart from competitors, be sure to write that up,” Ducci says.
3. BE HONEST ABOUT THE POSITION.
One quick way to get someone to leave your company is to misrepresent the position in the job post. It’s critical to be honest about what the role is, what it isn’t and what the expectations are, Ducci says. 36 / R+W / 05.20
4. IF IT’S NOT AN ACTUAL REQUIREMENT, DON’T LIST IT AS SUCH.
This is a big one. An A-tech with 15+ years of experience is ideal, but is that actually what you need? “They assume people will apply if they don’t meet the qualifications,” Welch says. If a candidate meets 9 out of 10 requirements, for example if they only have two years of experience and it “requires” three, many will not apply. “When people see one thing they don’t fit, they think they’re wasting time with that employer,” Welch says. That candidate could have been perfect, and most of the businesses that listed three years of experience would gladly take someone with less if they were the right fit. Welch says that the requirements need to be broader. If it’s a firm requirement, put it in; if there’s flexibility, it’s not necessary, Ducci says.
5. APPEAL TO YOUR IDEAL CANDIDATE DIRECTLY.
When it comes to hiring, quality is better than quantity. Rather than trying to get the most candidates possible, write a job posting that’s directed at the right person, like Roman does. Part of his marketing approach to hiring is creating an avatar of his ideal candidate. This includes what motivates the person and what their passions are.
To do this, think of people who have been good hires and what they have in common. “What can I provide that they’re not being provided right now?” Roman says. Once you’ve answered that and figured out what motivates them, write the ad around that and make the tech (or whatever position you’re hiring for) the central character of the story. “They become the hero of the story,” Roman says. “Every ad you read is about the shop—it’s not about the tech.”
6. ELIMINATE BARRIERS.
Don’t make it difficult to apply. Welch says that he often sees companies ask for a long list of different information that creates an extremely long application process. Don’t give an applicant a reason not to apply. the story continues online Improving the reach of job ads: ratchetandwrench.com/improvereach Writing an effective job ad: ratchetandwrench.com/writeaneffectivead Brian Sump’s tips for hiring top employees: ratchetandwrench.com/hiretopemployees Listen: Leigh Anne Best, Ratchet+Wrench Editorial Advisory Board member and marketing director for Mighty Auto Pro, shares her thoughts on job requirements: ratchetandwrench.com/ jobrequirements
THE INTERVIEW If you do the first step correctly, it will dissuade the wrong candidates from applying, says Roman. The ad should be written in a way that it speaks to a very specific type of individual—the right person for your business. When deciding who to bring in, Ducci advises not to get stuck on the “perfect candidate” because that person won’t always come in. Be open and willing to train someone. When making the decision, Welch says it’s helpful to make a list of the characteristics and qualifications of past successful hires and to bring in similar candidates. Once the field has been narrowed down, it’s time to get to know the candidates on a more personal level. Ducci, Roman and Welch share their tips for executing a successful interview.
7. CONDUCT A PHONE INTERVIEW AHEAD OF TIME.
If you can’t decide whether or not to bring someone in, a phone interview can be helpful. Part of Roman’s new approach to hiring includes phone interviews for all of his candidates. Roman is so confident in his screening process, that he feels an effective job posting and phone interview can determine the right fit. So, once they’re brought in, they’re coming in to get an offer. This may not work for everyone, but a phone call can be an effective way to get the standard questions out of the way and help weed out anyone that doesn’t seem like a good fit.
8. GET TO THE ROOT OF WHO THEY ARE.
Any candidate that’s done any research will know the standard questions and have a rehearsed answer. Get to know him or her on a personal level and find out who he or she actually is, not the person that he or she is presenting themselves as in an interview. “You’re just swapping war stories,” Roman says of his approach to getting to know the person. He suggests asking questions like these: “What’s a really difficult car you’ve worked on?” “What kind of cars do you like working on?”
“What kind of cars do you hate working on?” Questions like these will usually give more context as to how a candidate would handle a certain situation, as well as whether or not they’re a good fit for the shop. “If someone gets frustrated with older vehicles and that’s all you get, that’s not a good fit,” Roman says. Roman asks these types of questions on the phone to weed out these candidates. Ducci says you should ask about previous experience and what they liked or didn’t like about a job because that can be very telling about whether or not they’ll be a good fit.
point,” Welch says. “When you bring them in, have those conversations right off the bat and understand how they want to be managed.”
9. MAKE THEM A PART OF THE PROCESS.
the story continues online
Don’t just fire off a list of questions, Welch says. “Make them feel like they’re part of the team,” Welch says. “Allow them to ask a couple of questions. Why are they interested in the job? You can understand what makes them tick.” You can also set yourself up for success later on by asking questions about what drives them and how they prefer feedback, Welch says. “A lot of techs want it straight to the
10. STRUCTURE THE INTERVIEW BASED ON THE POSITION.
Every person is different, and the amount of interviews and how those interviews are conducted is up to the shop owner, but it’s important to make sure you’re doing it in the most effective way for that position. Technicians, for example, Welch says, need to have certain abilities, so having them come in for a working interview would be beneficial. This may not be the case for a service writer.
Technician interview tips: ratchetandwrench.com/techinterviewtips Making a surefire hire: ratchetandwrench.com/asurefirehire 4 Things to Watch for During an Interview: ratchetandwrench.com/interviewredflags Listen: Leigh Anne Best marketing director for Mighty Auto Pro, shares the interview process that she uses at her shop: ratchetandwrench. com/interviewprocess
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THE OFFER Congratulations! You’ve decided on a new hire. But the hard work isn’t over. Once you’ve decided on a person, it’s important to make sure that person is interested in working for you and comes onboard and you avoid “ghosting,” as Roman calls it. If the person you’ve decided on is working somewhere else, the general rule is to give two weeks' notice. Roman says this time period can be enough to lose the candidate. One of two things usually happens, he explains. The first is that the person seeking a job is looking for a new position because he or she is upset at his or her current employee. In this case, the current employer usually realizes what they have and bends over backwards to get him or her back, which can result in that person staying. The second situation is where a job seeker is using other job offers as leverage for a pay increase at his or her current position. “The minute they accept the job, you start eliminating the possibility of ghosting,” Roman says. Here’s a look at how to avoid ghosting and successfully bring a new hire on board.
11. MAKE THE OFFER QUICKLY.
Once you’ve made the decision, offer the position. Don’t wait. Roman sets up his hiring process so when the candidate comes in, he already has a job offer for him or her, which is a point of differentiation and helps him stand out among the competition. Remember, you don’t hold all of the power—a quality candidate does, Roman says. Don’t wait for someone else to snatch him or her.
12. SET THEM UP FOR WHAT WILL HAPPEN.
As mentioned above, many will happily accept a new position, only to be coerced back into their old position, which is comfortable. Others may be scared to leave and never actually put in their notice. Roman helps his hires through this by letting them know exactly what to expect. Roman says that he tells the new hire that when he or she puts in notice, he or she may be asked to leave on the spot. Let the person know that’s fine, he says. He or she can start working immediately and he lets 38 / R+W / 05.20
his new hire know that he will help transport all of his or her tools and equipment.
13. OFFER INCENTIVES.
Roman offers a cash bonus—which comes out of his own pocket—for a candidate that shows up on his or her first day. He lets him or her know that he or she can start immediately and that he’ll help with anything he or she may need to make the transition from his or her old position to his or her new one as seamless as possible.
14. FOLLOW UP DAILY.
If your new hire needs to stay at his or her job for two weeks, check in every single day, Roman says. Text, email or call and ask him or her how their day went. “If you stop having contact with that tech—they’re going to ghost you,” Roman says. “When the toolbox is inside your shop, that’s when you can calm down.” the story continues online Writing an offer letter: ratchetandwrench.com/theofferletter Setting expectations with an employee contract: ratchetandwrench.com/ employeecontracts Get your new hire on board: ratchetandwrench.com/onboardeffectively Wondering what to do next? For information on onboarding your new hire, head to ratchetandwrench.com/step4
Hiring Podcasts
On your next drive home, listen to one of these podcast for tips on hiring How to Navigate the Tech Shortage: ratchetandwrench. com/navigatethetechshortage Recruiting the Best: ratchetandwrench.com/ recruitingthebest Attracted the Next Generation: ratchetandwrench.com/ attractthenextgeneration Tips for attracting GenZ candidates: ratchetandwrench. com/attractgenZ
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A Lasting Tribute Dick Gordon has honored his father’s memory while making Gordon’s Auto Repair his own.
MA 40 / R+W / 05.20
A IN TA ININ G A LEGACY How to maintain a shop’s image while getting ahead of the curve
BY ABBY PATTERSON PHOTOGRAPHY BY DANIEL J. SMITH PHOTOGRAPHY 0 5 . 2 0 / R + W / 41
M A I N TA I N I N G A L E G A C Y
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rowing up in his father’s business, Gordon’s Auto Service
in New Brighton, Pa., Dick Gordon was preparing to someday take it over. For over a decade, he worked sideby-side with his dad, making the big business decisions together, bouncing information off of each other and learning from one another in the process—an owner with years of experience and a fresh set of eyes in the industry. But when his father became sick and passed away in 1994, Gordon was in his early 30s and wasn’t as prepared as he thought he’d be to take on his role. He had to choose between giving up the business or picking up the pieces and running with it on his own. “That is the hardest thing, when you are put in that situation and you have to make it or break it,” Gordon says. “Before, it was me and him. It was up to me from there forward.” With Gordon’s mother helping him through the transition, he was able to take over the business the same year his father passed. Since then, he’s been able to keep the shop’s values in tact while making it his own. Now, his son, Ashton, has the opportunity in the near future to take over the business and create his own legacy, too. Gordon is now paving the way for his son to succeed.
Maintaining His Father’s Legacy “He was a wealth of knowledge and people respected him,” Gordon says. When Gordon decides to hang up the towel down the road, he wants the principles his dad built to be carried on. Working alongside his father for over a decade, Gordon came to know him as a respected business owner in the community. His father maintained a close relationship with his customers; he knew every customer that walked through the door. And, with this, people trusted his father, especially because they knew he would take care of them and their vehicles. When Gordon took over the family business, he wanted to keep that same value in his shop, but he knew it wouldn’t be easy. It started with gaining the trust of his dad’s customers. Gordon knew that just because he was his father’s son didn’t mean he was going to automatically inherit those customers. He knew he needed to earn them and the best way to do that was through trust. To gain that trust, he focused on the shop’s professionalism. Gordon trained his staff to be extra thorough with services, making sure nothing was missed and everything was explained in detail to customers. And as an owner, he wanted to ensure he knew every single customer’s name and face that walked through the door—just like his dad. “It’s not about gaining new customers—it’s about keeping your current ones happy,” Gordon says. “And it’s not them just trusting you, you have to trust them.” Gordon says he’s even turned away customers that weren’t comfortable with him fixing their car. To gain everyone’s trust, you have to weed some customers out that won’t add that trust back. 42 / R + W / 0 5 . 2 0
Three Generations Dick Gordon (left) would love for his son, Ashton (right), to one day take over the business.
“You want to leave a legacy of always keeping yourself to the highest quality standard that you could,” Gordon says. Creating a Path of His Own While he first focused on gaining the trust of his father’s customers, Gordon’s also wanted to find a way to stand out from the crowd. “We wanted to be the shop that someone looked up to, not following the trend,” Gordon says. “We already had a great reputation, so I had to live up to that more than anything and take it to the next level with innovation and technology.” Eight years after taking over, Gordon added 1,200 square
GORDON’S AUTO SERVICE Owner: Dick Gordon Location: New Brighton, Pa. Shop Size: 3,500 square feet Staff Size: 5 Lifts: 5, 2 alignment Average Monthly Car Count: 150 Annual Revenue: $700,000
feet onto the original building and redid the office and lobby. Although he updated it to make it more family-friendly, the extra space allowed him to add more revenue streams that kept them up to date. For example, the shop added new alignment racks and a state-of-the-art tire machine to install tires, a service the shop never had before. The shop even offers vehicle restoration, which Gordon says breaks things up and keeps work exciting for his crew. “It keeps you sane being in a family business: changing the shop and making it better,” Gordon says.” If you don’t make changes, you go crazy, because that’s what fuels you to go to work.”
On top of maintaining what his father built, he wanted the shop to be the top dog in town, which meant continuing to invest one way or another in the business, like the latest equipment, the overall look and feel of the business, and having quality staff on board. “You have to put a lot into your business every year to be successful,” Gordon says. “We wanted to be the shop that other shops looked up to and we’ve accomplished that through the years.” Paving the Way for His Son At 57, Gordon is looking to take a step back. One thing is for sure, however: he realizes he needs the right people on board to follow through on everything he and his dad have built. Like Gordon, his son, Ashton, has always been invested in the business. When the day comes, he could see Ashton taking it over. And when—or if—he does, he wants him to create his own legacy from there. While he hopes his son takes it over in the near future, Ashton also has his own business on the side. Through working with his son, he hopes to pass down what he’s learned over the years to him and that Ashton puts his own spin on it. “You have to evolve slowly, but you have to remember where your roots are,” he says. While he’s made sure to instill his and his father’s values into his son, his goal before he passes the torch is to use his son and others in the shop as young, fresh set of eyes, just as his father did with him. At 57, Gordan says he now needs new, young talent to keep driving the business forward. “You have to get people in the shop with the right personality and the right talent,” Gordon says. “A younger person’s ideas open your eyes most of the time.” 05.20 / R+W / 43
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SHOP ADVICE SALES+MARK E TING CASE STUDY C U S T OME R S E R V IC E
COURTESTY LONSBURY GARAGE
Switching Pay Plans As a newfound leader, Lonsbury Garage owner Stephan Cairl quickly realized that, sometimes, the best choice for a business isn’t the most popular.
CASE STUDY
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I N T E R V I E W
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INTERVIEW SERIES The industry’s most prominent leaders discussing the most pressing issues.
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T O O L B OX / S H O P A D V I C E
Reach Your Goals The best route to achieving what you want Nowadays, technology has made it easy for us to find the best route to where we want to go; all you have to do is type in an address on your map app and you’re guided to your destination, turn by turn. But when it comes to achieving your goals, Google isn’t much help. Jim Murphy, service coach at Elite, says identifying your goals and finding a way to achieve them requires going old-school and taking out his handy-dandy map.
ARO, or organize files, do you think there would be enough owners out there that would be motivated by that to get up in the morning? Probably not.
“What happens nowadays with folks is that they are looking for instant answers,” Murphy says. “In my mind, you need to have a route—have all of the things in place to get where you want to go.” As a business coach for 21 years, he’s helped many auto repair shop operators identify and plan out how to achieve their goals, and he’s given Ratchet+Wrench his clues on how to find your path to success.
Your employee’s goals will help you achieve your goals. You have to get with
A S TO L D TO A B BY PAT T E R S O N
It starts with assessing your personal goals so you can apply them to your business goals. The one thing that I
ask my clients to do, before they start anything else, is that they should go find a quiet place to be alone and to write down their personal dreams and wishes. I ask them to write down what they want; something that gets them out of bed in the morning, and it shouldn't be making more money. It should be about what that money will get you. Maybe they have a specific goal of living in a certain neighborhood in a specific house or they want to send their children to a good university—start mapping out those things. Then, you put a business plan to achieve those goals.
GETTY IMAGES
I think if there are too many goals, you could be distracted. I think it’s important
on a personal note to have lifetime goals; this is what people have a hard time doing. I did this back in my 20s with the help of a mentor. He told me to write down everything I wanted to accomplish in my
lifetime. With this, you start looking at that list and start hammering out what’s really important. Create SMART goals—specific, manageable, attainable, realistic, timely. This is
a guiding document to help you conduct how you run your life. Personally, I wanted something very specific so I don’t get mixed up in doing something different. For example, one of my goals is to visit every national park. My friends reach out to me and ask if I want to go on a trip to Jamaica. Yes, it sounds fun, but it doesn’t align with my goal. Your goal would have to be to travel and have fun with friends, but that’s not specific enough. Be more specific as to what you want and that will help keep you on track and act as a guiding document on how you want to create this wonderful life plan. That’s what you are doing with your goals—creating a life and business plan. You have to look for an emotional reason to get out of bed in the morning. If a goal is to build up marketing, increase
your team and help them figure out what their goals are, not just your own. For example, if I went to my staff and said, “I want to buy my wife a new house, so my goal is to net $500,000 this and we have to strive as a team to get there,” how do you think they’d feel about that? Not too motivated. By encouraging employees to define their goals, it will take little to no effort for an owner to complete the smaller steps to reach their bigger goals. Look at your goals constantly. Have
them on your wall or your desk as a motivation to achieve certain things in your life. One of things I do with my wife, Sherri, is we sit down and assess our goals every year, and decide if these goals are still important to us. There’s certainly times you are going to reassess how you are going to get there, but your lifetime goals aren’t going to change all that much. There are different aspects of life that I think you should focus on. For example, my wife and I focus on family, business, spiritual, social, personal, health, leisure, wealth. We have goals that address each of those aspects of life so we stay in balance. If you focus too much on business and wealth, you could have health go away. If you pull some of those aspects out, it’s really easy to get out of balance in how you operate your life. 0 5 . 2 0 / R + W / 47
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SEO Pitfalls Get your business to the top of the search page by avoiding these mistakes BY TESS COLLINS
You’re on a road trip and your stomach starts to rumble. It’s time
to eat. What are you in the mood for? Maybe Italian. No, Chinese. Definitely Chinese. Being unfamiliar with the area—you’re on a road trip, afterall— you whip out your phone (or have your co-pilot do it if you’re driving—safety first) pull up your search engine and type in “Best Chinese food nearby.” Your customers are the exact same way. Only, they’re looking for a repair shop. If you’re in Edgewater, Md., and you type in “repair shop,” AJ Nealey’s shop, Nealey Auto Service is at the top of that list. “You need to stand out and convert a search into a lead,” Nealey says, who has a conversion rate (the number of visitors that take action, such as call or visit the shop) of roughly 56 percent. 48 / R+W / 05.20
The times have changed, as has the way potential customers search for business. Twenty years ago, it was all about physical location, explains Kirk Richardson, owner of South Street Auto Care in Rochester, Mich. Back then, he had the best location possible. And, he still does, but he’s now dominating a different corner, and that’s SEO. SEO is shorthand for search engine optimization, which is the process of increasing visibility of a website. “Google values us high as an organization, which makes me show up on searches and produces a ton of leads for my company. I dominate all of the corners,” Richardson says. Richardson estimates he gets roughly 30 new customers per month that can be attributed to SEO rank alone. To reach customers, you need to reach them where they are, and that
means ranking high on Google. To do that, attention to SEO is key. Nealey and Richardson share some common pitfalls when it comes to SEO and what to do instead. The Pitfall: Trying to do it all on your own Years ago, both Nealey and Richardson were trying to get to the top of Google on their own by reading articles and pulling out any trick they could think of. However, Google constantly changes its algorithms, which makes it difficult for an amateur (or, even a shop owner that’s well-researched) to stay at the top without spending an incredible amount of time on it. Both Nealey and Richardson both employ a marketing company and suggest finding a company that can help [See Sidebar: A Helping Hand].
Photos play a major role in SEO. The actual content of the pictures and whether or not it’s accurate may not matter to where you rank in the search, but it will definitely matter to the customer if they come into the shop and see something they weren’t expecting. What will impact your rank is actually having photos on all of your sites—Google My Business, for example—and paying attention to the captions. Captions are a prime place for keywords, so make sure to take advantage. The way you name your photos also factors in, so be sure to include keywords in the name of your photo.
“Find the right person to do it for you,” Nealey says. It doesn’t have to be a company. Both Nealey and Richardson say that if you’re good at it, go for it, but if it’s not your forte, the best route is finding someone that can help. “The amount of things that change— you’ll pull out your hair,” Nealey says. Nealey says an in-house marketing manager can be a good person to put in charge of managing SEO. Either way, investing in help is a cost that will pay off in the long run. The Pitfall: Putting a false face forward Those stock photos with models aren’t doing you any favors, Nealey says. “Don’t have models. Show what you actually have,” Nealey says.
The Pitfall: Overloading with keywords Speaking of keywords, almost everyone knows that it’s key for SEO. But, what’s the secret to it? Do you want to jam pack your site with every single keyword you can think of? No. It’s all about relevancy. Nealey says keywords should represent the type of work that you actually do. One tip that he has is when responding to reviews, put in words that will get out the type of vehicles and services that you specialize in. For example, if you have a customer that came in and was blown away on the service on their Honda Accord, in the response, type, “Thank you so much for bringing us your Honda Accord and allowing us to check the brakes.” It’s an organic way to get in keywords (Honda Accord, brakes) that will help improve your ranking. The Pitfall: Lack of consistency Bob’s Auto. Bob’s Auto & Repair. Bob’s Auto Repair Garage. It happens more often than you would think, but businesses often list names differently on different sites. Take the above example. The first one could be the website, the second could be its Facebook page and then the third could be Google My Business, and they’re all for the same business.
“Continuity is key,” Nealey says. Make sure your business is listed the same way throughout the web. Nealey suggests using a platform, like Yext, a business listing tool, that will crawl the web for you and let you know if there are any inconsistencies. The Pitfall: Ignoring the need for additional content Videos, blogs and backlinks (any time a webpage links to another page) are all ways to rise in the ranks. Richardson has someone that writes consistent, relevant content for his website. Nealey is a big proponent of backlinks. For example, since his shop is a NAPA Auto Care shop, they backlink to NAPA. They do the same with AAA. It’s also a great opportunity to backlink to a story that a local paper did (Or, shameless plug, Ratchet+Wrench) did on your business, Nealey also wants to add more videos to his website and get more involved in YouTube advertising, as these are helpful ways to boost SEO. The Pitfall: Tricking Google As mentioned, one common “trick ” for SEO is to stuff your website with as many keywords as possible. Google has caught on to this, and to other common tricks and shortcuts people were using to get to the top of a search page, says Richardson. “If you’re trying to outsmart Google—you’re not,” Richardson says. “Google is in the business of being relevant. If you’re gaming them, they’ll make you irrelevant.” It may sound ominous, but it’s true. Ten years ago, it was easy for a less-thanreputable business to get to the top of the search page if they knew the right tricks. Now, it really is about reputable businesses that know what they’re doing (or have found someone to partner with that does) when it comes to marketing. 05.20 / R+W / 49
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No matter what type of repair you are working on, the expectation of the customer is the same—they want the vehicle repaired and restored to its original performance and state. And usually, they want it done as fast and as inexpensively as possible. That means thorough, complete and expedited repair processes, with original-equipment sourced parts that are instantly available. If every repair included a blank check, this expectation would be no problem, but anyone in the auto repair industry knows it takes a lot of time, skill, and money to meet those OE expectations. There is, however, a more achievable, efficient and profitable solution to OE-quality repairs. Together, Duralast parts and ALLDATA OEM repair software offer two shop-forward solutions for maximum ROI that deliver every customer’s dream of original equipment performance.
OE OR BETTER QUALITY PARTS Duralast, known for providing OE or better quality, is the brand more technicians choose for parts in the automotive aftermarket*. The Duralast line covers over 20 part categories from brakes, chassis and vehicle electronics (ignition and engine management) to cooling, shocks and struts, tools and more. With an average 98 percent coverage of vehicles on the road today, these OE parts are readily available through one of the country’s largest supply chains and therefore reasonably priced, too, so shops can satisfy expectations on time, cost and quality while also keeping their profit margins up. The Duralast name has to be earned. The high standards that you and your customer hold for reliable quality repairs is a catalyst for the strict quality standards Duralast holds, which is why they are produced by tier-one and trusted category-leading manufacturers, delivering state-of-the-art, uncompromised proven tough parts. The brand standards of premium quality and reliability infuse every aspect of the engineering, design, manufacturing, and testing processes. In some cases, where there are known OE design flaws, Duralast parts have actually innovated to improve over the OE, so every Duralast part is designed to be OE or better quality. Your shop’s reputation relies on consistency. Standards of quality and performance are ensured through category specific rigorous real-life testing. Testing includes punishing life-cycle tests and various torture tests like corrosion and temperature extremes, ensuring OE or better quality, every part, every time. Duralast built their brand to protect yours. From high quality standards enforced by testing to innovative design, Duralast parts will help you restore OE performance. You can confidently decrease installation time while increasing efficiency, customer satisfaction, and profits. It’s no wonder that More Technicians Choose Duralast Parts*.
THE MOST RELIABLE DATA AVAILABLE ALLDATA is the industry’s No. 1 solution of unedited OEM repair information—period. ALLDATA provides reliable, up-to-date automotive OEM diagnostic and repair information such as factory-direct diagrams, repair procedures, TSBs, DTCs, industry standard labor times, and much more, available in a single source. In fact, ALLDATA Repair® is a top-tier technology solution that includes original licensed OEM repair information as well as reliable information from trusted partners. ALLDATA includes multiple repair solutions such as ALLDATA Collision®, ALLDATA Diagnostics®, ALLDATA Manage Online®, ALLDATA Mobile®, and ALLDATA Tech-Assist®, all geared toward providing top-level OEM information and tools to repair every vehicle back to like-new status, resulting in fewer comebacks, more efficient repairs, swift bay turnover and greater profitability every day in your shop. To help mitigate the increasing technological complexity of contemporary vehicles, ALLDATA Repair features over 300,000 non-OE full-color wiring diagrams to help navigate the miles of wires snaking through today’s vehicles. Furthermore, ALLDATA Tech-Assist can provide initial diagnostic troubleshooting before the repair even starts, detailed stepby-step repair assistance, and can even utilize live video streaming to see, discuss and advise on the repair. Whether turning a wrench under the hood or diagnosing trouble codes from within the passenger compartment, AutoZone supports every estimator, technician, service advisor and owner by providing leading brands for every repair. To minimize comebacks and ensure maximum return for your shop, trust Duralast—the brand technicians choose more—and ALLDATA, the industry’s No. 1 software for OEM repair information.
*According to the Proprietary Consumer Study of Automotive Aftermarket Parts Conducted by The NBD Group, 2019
Columns
INDUSTRY INSIDER Rissy Sutherland
ADOPTING A NEW MINDSET Lessons learned during a crisis will benefit you long term
FUE VANG
I hope by the time everyone is reading
this that we are back to a world of normalcy (whatever that is) but with a much more appreciative mindset. As I sit here today, we have all entered into a new world of the unknown in everything we do. Most of us have been through some personal and business hard times. Some of the biggest ones were operating after 9/11 and the last great recession. Both of those were hard for different reasons. However, in both cases, it impacted parts of our businesses and lives but it didn’t completely remove all freedoms as we knew them. With both of those, I still was able to go to church, volunteer and work. I still had people to meet with and family and friends to spend time with to relieve the stress. What’s going on right now has made me reflect on what is truly important and these are a few lessons that I’ve learned. One, now is not the time to have all the answers or have a narrow-minded view. I have learned to listen to others, communicate better and, most of all, be open-minded. At first, I tried to get all the information, do the work, make fast decisions and just move forward. However, things were moving so fast and changed everyday and I was pushing out directives too quickly, which was taking away others ability to be a part of the decision and caused more fear because everyone felt out of control. Also, for every five decisions made at a time, only two were the right ones and the other three would probably change the next day. Lesson learned. The new pathway was to over communicate and include everyone in decisions or brainstorming. I had to admit that I didn’t have all the answers and I realized that nobody expected me to. What resulted was an entire team that showed they had a lot of skill sets that I didn’t even
know about—some didn’t even know it themselves. Empowerment took the place of fear. Finally, the new mindset of we are all in this together came to the forefront. The second lesson I learned was to become much better at prioritizing. In the past, I have always been able to power through by putting in more hours, working fast and getting enormous amounts of new things pushed out and implemented. My biggest mistake was always pushing out too much new stuff before actually perfecting and following up on what we had already done. By working together more as a cohesive team, I am held back when needed. Others are holding each other accountable to get the new processes pushed through and the team has either new ideas or better ways of doing the things that need to be done. Third, I have relied on past relationships, vendor relationships and the good of humanity now more than ever. I have been overwhelmed by the mass number of past relationships coming back to talk on the phone, discuss business and sharing ideas. Others have called to share successes in cost-cutting, new marketing ideas, how to handle the ever changing information that is coming out and, most importantly, just helping to do the best each day. Our vendors have truly become the best business partners I have ever had. They have helped to reduce costs, increase business, provide feedback on ideas and so much more. Finally, I have learned to start each day with a plan of the top three things that must be done that day. If I can get other things done, that is great, but nothing can take me off these other priorities. Because we are all in such crazy times, I would have over 100 things thrown at me weekly, then daily and finally hourly. It caused me to
Rissy Sutherland has opened more than 400 shops in her career as the executive for nearly a dozen automotive brands and now the president of SRS + Co. She is one of the industry's foremost experts in shop operations. sutherlandrissy@gmail.com ratchetandwrench.com/sutherland
prioritize. If something comes up, then I must push it off or delegate because each day there are really only a few things that will make the biggest impact. Ending my day writing out what was accomplished and planning what must be done for tomorrow helped me do this. I feel strongly that we will all come out on top of this. Our industry has always performed the best in these times. Recessions help to push automotive repair to the positive and rarely to the negative. Today, I feel so blessed and filled with gratitude that as of now we are still open, considered an essential business and have the opportunity to serve our community at this time. I appreciate the small things in life now more than ever. I never want to forget that we really are all in this together. 0 5 . 2 0 / R + W / 51
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TOOLS, TECHNOLOGY & MORE NO MATTER HOW SUCCESSFUL YOUR BUSINESS IS, THERE ARE ALWAYS SERVICES AND PRODUCTS THAT CAN BE IMPROVED UPON THAT WILL TAKE YOUR SHOP TO THE NEXT LEVEL. Whether that’s marketing more effectively in your front office, communicating more directly with your customers or making use of the most cutting-edge tools on the shop floor, there’s always an opportunity to improve your bottom line. Ratchet+Wrench’s Shop Goods section has compiled several products to help foster relationships with your vendors, increase clarity with your customers and bolster efficiency, productivity and revenue. Inside, you’ll find companies that have found strategies to better the industry through their goods and services. Take a look for the tools and technology that will help make your shop successful in the 2020s.
TABLE OF CONTENTS
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INDUSTRY-LEADING SOLUTIONS FOR CUTTING EDGE SHOPS Ensure fast, accurate and more profitable repairs with ALLDATA and AutoZonePro.com
HI-TECH TOOLS MAKE THE SHOP From boat racing to auto repair, Randy Waitman knows that tech is king
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A SOLID HOME BASE Throughout the years, and with multiple new companies and products entering the industry, Ryan Clo relies on Kukui as his base platform
REPAIR LIFE AT THE CUTTING EDGE Shop-Ware enables Autowerkes Maine to stay on top of tech, tools, parts and more
AUTOZONE
KUKUI
MITCHELL 1
SHOP-WARE
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REV UP PROFITS WITH OUR WINNING TEAM
Quality parts and industry leading coverage On demand delivery to help turn bays 48-hour guaranteed parts and labor reimbursements Efficient online ordering with enhanced account management tools
Industry leader for up-to-date, unedited OEM automotive repair information Includes repair and maintenance procedures, diagnostic information, TSBs, DTCs and more Trusted by more than 400,000 automotive technicians worldwide ALLDATA’s suite of products also includes a shop management system, diagnostic scan tool and hotline
©2020 AutoZone, Inc. All rights reserved. AutoZone and AutoZone & Design are registered marks of AutoZone Parts IP LLC or one of its affiliates. ALLDATA is a registered trademark of ALLDATA LLC. All other marks are property of their respective owners.
AUTOZONE
INDUSTRY-LEADING SOLUTIONS FOR CUTTING EDGE SHOPS ENSURE FAST, ACCURATE AND MORE PROFITABLE REPAIRS WITH ALLDATA AND AUTOZONEPRO.COM
For over forty years, AutoZone has helped shop owners across the country reduce comebacks and provide the safest, most reliable repairs. Then, in 1996, AutoZone made another leap forward by acquiring ALLDATA, continuing to support shops through cutting-edge repair software and solutions, and though the game has changed—yesterday’s storefront is today’s virtual shop—the quality has not.
COURTESY OF AUTOZONE
TOGETHER, AUTOZONEPRO.COM AND ALLDATA CAN HELP TAKE YOUR SHOP TO THE NEXT LEVEL.
AutoZonePro.com is a one-stop solution for faster, more efficient parts ordering. Compatible with most shop management systems, the site provides 24/7/365 ‘round-the-clock instant parts procurement from any computer or mobile device. The AutoZonePro mobile app is even more convenient and allows users to order parts from anywhere, including license plate scanning, and enables shops to manage their profitability like never before. AutoZonePro.com enables: • Online bill pay enables payments to be instantly applied to your balance, so ordering isn’t stopped by a credit limit
• Quick account overview offers full transaction history with a single log-in, including online and offline transactions, estimates, orders, invoices, payments and returns • Mobile app purchasing to allow convenient parts ordering from anywhere with real-time pricing and inventory Combined with ALLDATA’s labor time information, estimating out a job has never been easier or more efficient on AutoZonePro.com. Enhanced search abilities mean you’ll find what you need when you need it. VIN and license plate decoding ensure accurate vehicle lookups with real-time pricing and inventory availability to help speed repairs and increase productivity. Users can even search for parts by past history, frequently ordered parts, custom repair templates or pre-populated common repair lists. The mobile app (available from the Apple App Store or Google Play) will help you meet your KPIs and make the most of every repair. And behind every repair stands ALLDATA—the industry’s No. 1 source of unedited OEM repair information. ALLDATA provides nearly real-time automotive OEM diagnostic and repair information such as factory-direct diagrams, repair procedures, TSBs, DTCs, industry
standard labor times and much more, all available in a single source. ALLDATA includes multiple repair solutions such as ALLDATA Repair®, ALLDATA Collision®, ALLDATA Diagnostics®, ALLDATA Manage Online®, ALLDATA Mobile® and ALLDATA Tech-Assist®. Together, these tools are greater than the sum of their parts and help restore vehicles to like-new status, resulting in more efficient repairs and greater profitability and ROI every day in your shop. To help mitigate the technological complexity of contemporary vehicles, ALLDATA Repair features over 300,000 non-OE fullcolor wiring diagrams. ALLDATA Tech-Assist provides pre-repair and diagnostic clarity with detailed step-by-step repair assistance, and can even utilize live video streaming to see, discuss and advise on the repair. Whether using AutoZonePro.com or the mobile app to order parts or diagnosing a new repair correctly the first time with ALLDATA, AutoZone supports every estimator, technician, service advisor and owner with a litany of industry-leading repair solutions. To tackle any problem and ensure maximum return for your shop (as well as superior speed, accuracy and profitability), download the AutoZonePro app today and fire up ALLDATA when the next repair arrives—after forty years of quality service, the future is bright.
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xxxx 2019 | fenderbender.com 7
KUKUI
A SOLID HOME BASE THROUGHOUT THE YEARS, AND WITH MULTIPLE NEW COMPANIES AND PRODUCTS ENTERING THE INDUSTRY, RYAN CLO RELIES ON KUKUI AS HIS BASE PLATFORM
Many readers of Ratchet+Wrench are familiar with Ryan Clo. As an extremely successful owner, coach, and contributor to the publication and industry as a whole, Clo has shared his knowledge and success with many. He has been able to transform his business, Dubwerx.inc, from a small operation to an impressive, two facility business in Ohio. “I enjoy the industry and want to see it thrive,” he says. Throughout his years in business, Clo has worked with many different companies and systems that have aided in his growth. One of those companies being Kukui. Since 2015, Clo has been using Kukui to build and maintain his website and online presence, as well as track the data of his growing business. “I’m aware that there are other companies out there, and there’s a lot of different systems,” Clo says. “But I keep Kukui as my base.”
COURTESY OF KUKUI
RELIABLE RELATIONSHIP “A lot of us automotive people are a little old-fashioned and like things that are relationship-based,” Clo says. Throughout his years with Kukui, Clo says he has been able to build a strong relationship based on reliability and trust with the company and individual team members. “My personal rep— I’ve had her for years—her name is Rhonda, and she has never let me down,” he says. Clo looks to Rhonda for anything he may need regarding his website. Having one point of contact, and not needing to
wrangle together a designer and AdWords person, has been really helpful and convenient, he says. “If I need a banner added to my website, two days later it’s there,” Clo explains. “Kukui gets it done.” The Kukui team has always been incredibly helpful and involved with Clo and his business, especially when he was first designing his website. I went back and forth [with Kukui] a few times when making my website, and I’m really happy with the design,” he says. “They were willing to put in the work, and kept [tweaking it] until I was happy with the design and functionality.”
ALL-IN-ONE PLATFORM Clo primarily looks to Kukui to manage his website and the multiple different factors that go into the front- and back-end of tracking and marketing his online presence. But Kukui offers even more services to help grow a business. “They also offer call recording, email campaigns, Google AdWords, heat mapping—I mean the list goes on and on,” Clo explains. Tracking ROI through his dashboard has been extremely useful to Clo and was one of the original reasons he began using Kukui. “It’s been tremendously helpful,” he says, “I like my point of sale, but not everybody’s point of sale is great. I think a lot of Kukui’s data is probably even more helpful for people whose management system has some limitations.”
Being able to track the analytics of Clo’s marketing efforts helps to determine which campaigns and platforms are successful and worth his investment. He and his team are then able to make adjustments to the marketing budget based on the data from his dashboard. “So many shop owners are busy, and I think owners are exploring lots of different options out there,” he says. “If you had to pick somebody, Kukui is an easy choice because they do so many things with one fell swoop and they make things easy.”
THE RIGHT FIT Over the past five years Clo has been using Kukui, he has experienced large amounts of growth. Although there has been physical expansion within his business, he also attributes Kukui to his overall growing success. “I certainly feel that they have been a critical component to the growth,” he says. “Marketing being a main piece to that success—and Kukui as the central part of my marketing has helped me make decisions on how to spend my money.” Along with experiencing success within his own business, Clo also recommends Kukui to a majority of his clients. “For so many, it’s a really good starting point,” he explains. “When I think about all of the providers out there, they’re still at the top of the list.” If you would like to learn more about Kukui, visit kukui.com/rw or call (877) 695-6008
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THE WIRING DIAGRAM RE-INVENTED — AGAIN
Wiring diagrams have never been so complex—or so easy to navigate! Get into the diagnostic fast lane with the all new Interactive Wiring Diagrams in ProDemand. Link to the complete component information you need from right INSIDE the wiring diagram. Click the component to see: › Component location & testing › Common failures & Real Fixes › Specifications — and more!
Learn more & get a free demo now! Call: 800-275-4417 | Visit: mitchell1.com Or find your local sales rep: mitchellrep.com © 2020 Mitchell Repair Information Company, LLC. All Rights Reserved. Mitchell registered used herein under license. 5 81® / isRa+ W / 0 5 . 2trademark 0
repair information | shop management | shop marketing
MITCHELL 1
HI-TECH TOOLS MAKE THE SHOP FROM BOAT RACING TO AUTO REPAIR, RANDY WAITMAN KNOWS THAT TECH IS KING
“The tech world is incredible,” says Randy Waitman, owner of RAE and Automotive Service Co. Inc. (Ramona, Calif.). Waitman would know. He used to be on the cutting edge of some of the most advanced vehicles in the world—high-speed drag boats. According to Waitman, there are three kinds of boat racers: dead ones, paralyzed ones and retired ones. After finishing first in the drag boat racing world championship in 1989 and 1990, he chose the third option and has stuck with automotive and boat repair ever since. As for tech, he gets all he needs at the shop.
COURTESY OF MITCHELL 1
THE MOST CRITICAL TOOLS Waitman has been a Mitchell 1 customer since 1996 and has seen the industry go from paper to digital as the cars have evolved into computers on wheels. Through it all, he’s stuck with Mitchell 1. “ProDemand with SureTrack? It’s imperative we have that!” Waitman says, referring to some of Mitchell 1’s most powerful shop technology and tools. “We’re 200 percent more efficient and effective with Mitchell being there for us. We’re just human beings and we can’t go 110 percent every day.” ProDemand and SureTrack can, however, and Waitman reports they help him prepare for each and every vehicle that comes through his shop. “I can’t even imagine being without them; it’d be impossible,” he says. “It would be like shutting the lights off and working in the dark.” ProDemand provides complete OEM repair information, while SureTrack harnesses the power of the Mitchell 1 repair community to help troubleshoot unknown or unseen repair problems when all else seems to be working.
Waitman is adamant that the combined OEM and technical repair information available is critical to his business and to his clients’ cars and safety. Waitman uses the Mitchell 1 Manager SE shop management software to seamlessly connect to his computer network and shop management tools, simplifying and organizing everything from estimating and VIN decoding to instantly accessing parts catalogs. It even provides marketing data and eases parts purchasing while integrating with ProDemand to inform estimating and repair.
WIRE TO WIRE One of the most useful aspects of the ProDemand software is the advanced colored wiring diagrams. “Mitchell’s interactive wiring diagrams are fantastic—you click on one wire, and it will show you the path through other actuators and sensors, and the info is all there on one page,” Waitman says. “Our efficiency and effectiveness of repairing cars goes through the roof.” Most cars today have miles of wires and circuits snaking throughout them. Being able to make sense of it all is not only sensible but increasingly necessary. ProDemand offers comprehensive—and simple—interactive color diagrams that highlight specific component locations, connector views, replacement procedures and much more. Toggle individual wires on and off to highlight their paths and see how and where they work within the overall system. Components within the diagram link to complete component information, while zoom and view orientation is adjustable for maximum clarity. “Being able to accurately read and interpret the wiring just makes our jobs so much easier,” he adds.
SOCIALCRM & LOCAL SEARCH The marketing aspect of Mitchell 1’s software suite is extremely impressive. “If I had had this information 10 years ago, we’d be so much further ahead. You can practically forecast what to do as far as marketing and advertising. It’s absolutely a five-star system,” Waitman says. In an instant-review, one-click world, Waitman is thankful his clients have a place to offer their praise and do the work of advertising for him. “You have to constantly market to your demographic,” he says. “The people you want to do business with are out there, and we want the customers who want to take care of their vehicles, who want to keep them in good shape.” With SocialCRM, he can ensure his shop is front and center to the people who need—and value—his services most. As for navigating social media, Mitchell 1 has that covered, too, putting the power of social media at your fingertips every morning. Integrated Google Ads target the vehicle owners most likely to frequent the shop, and comprehensive data tracking and reporting allows Waitman to adjust his budget, marketing needs and platforms as often as needed. “We can respond to reviews and questions through texts and emails,” Waitman says. “It’s actually a little ahead of its time and customers are sometimes hesitant to use it, though the majority grasp it and understand.” As for the overall experience with the full suite of Mitchell 1 products, Waitman is more than satisfied. “I wouldn’t trade it for anything,” he notes. To learn more, visit mitchell1.com.
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30 minutes could transform your shop. www.getshopware.com/rw 60 / R+W / 05.20
SHOP-WARE
REPAIR LIFE AT THE CUTTING EDGE SHOP-WARE ENABLES AUTOWERKES MAINE TO STAY, ON TOP OF TECH, TOOLS, PARTS AND MORE
As a self-described tinkerer, Mike Bergeron has always fiddled with the details. As service manager at Autowerkes Maine, a Euro-centric shop just north of Portland on the eastern coast of Maine, he has every opportunity to do so. Autowerkes is a state-of-the-art, 9,000-square-ft facility designed to repair the most cutting edge European marques. To keep up with the 225+ monthly vehicles at the $1.8 million annual revenue shop, Bergeron and owner Voit Rich needed an equally impressive management system. Enter Shop-Ware.
COURTESY OF SHOP-WARE
CLOUD-BASED COMMUNICATION AND RECORDS “The first thing we noticed about Shop-Ware was its impressive cloud-based approach,” Bergeron says. Bergeron and Voit are able to reach their customers under any circumstances— if the power goes out or they simply want to notify customers about upcoming service or an existing RO during the weekend, they can do so through Shop-Ware’s suite of mobile services. “We can talk to customers from anywhere in the world, see their repair numbers or our estimates, and keep moving forward,” Bergeron says. No more leaving endless voicemails or waiting days for approvals—Shop-Ware has revolutionized how Autowerkes Maine conducts business and communicates with the customer, akin to moving from a beat-up country road to the Autobahn. Former paper processes can now be accomplished electronically, instantly speeding up rote paperwork and helping to eliminate human errors. Shop-Ware allows fine customizations—tinkering, in a sense—with repeat or canned jobs, enabling
accurate, bespoke multi-point inspections per customer or vehicle, cutting down on further paperwork. “Shop-Ware is also quick to input all those jobs at the time of the phone call; the appointment is made within five minutes,” Bergeron says. The pre-estimate is immediately available for the customer, and in the shop’s old system, that paperwork and appointment setting would require another person to write the RO and to find parts. “Shop-Ware has eliminated wasted time doing non-productive tasks,” he says, and transformed how Autowerkes communicates with its customers. “A picture is worth a thousand words, especially in real time with the customer,” Bergeron says. “Sharing photos speaks to our transparency and credibility. We ask how to communicate and often it’s email or text, which also speeds up approvals. We can share the repair, allow customers to check in throughout the day, and work with remote approvals, keeping ROs moving through the shop and eliminating downtime.” Bergeron even believes the software helps with customer retention and CSI scores, cementing the shop’s great reputation even more by showing the cutting edge repair work as it occurs.
PARTS HEADER Bergeron also uses Shop-Ware to streamline parts procurement, pricing and optimization. “We check pricing across different vendors, add parts to the RO, and then place the orders,” he says, “allowing for maximum efficiency; you don’t need to pick up the phone.” Bergeron and Voit are particularly impressed with Shop-Ware’s Parts Gross Profit Optimizer tool. “It’s a smart
parts matrix that’s always adapting,” Voit says, “and it helps you set and achieve a standard goal for parts profitability.” Autowerkes Maine had been trying to increase its profitability on parts and, within just a few days of working with the Optimizer, they had boosted the profitability line from 46 to 50 percent. They’ve now been hitting that goal for months. “We set the goal and Optimizer in an hour and now it just works in the background, moving and adapting and changing according to the ROs and our current inventory. If I want 52 percent tomorrow, all I have to do is adjust the goal and the Optimizer will do the rest.” The Optimizer functions as an advanced pricing matrix, something many shop owners are accustomed (and often frustrated) by. “It’s like an entire extra employee,” Voit reflects. “It’s a floating matrix that utilizes algorithms from the history built into the program specific to our parts. It’s built off our data. The longer we have it on, the more we use it, the more accurate it gets. It’s incredible.” Autowerkes Maine also enjoys the support Shop-Ware offers its clients. When Bergeron has a question, ShopWare answers. They also interact via Facebook and connect Autowerkes to other Shop-Ware users, so they can post to and benefit from others’ knowledge and experiences as well. Looking ahead, Voit is thrilled his shop has endured and that the 35th anniversary is near. “The market will dictate where we go; I look ahead to where the market is headed as well as behind. We just need to be able to react.” And with Shop-Ware, he knows he can.
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T O O L B OX / C A S E S T U DY
MAKE FL WORK F 62 / R+W / 05.20
LAT RATE FOR YOU Get your employees on board with flat rate pay BY A B BY PAT T E R S O N PHOTOGRAPHY COURTESY OF LONSBURY GARAGE
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T O O L B OX / C A S E S T U DY
THE BACKSTORY
Cairl is the fourth owner of Lonsbury Garage. He actually worked at the shop in high school before going to work at a truck dealership. In 2017, he had an opportunity to take over the business that mentored him from the start. When he took over, he wanted to implement his own rules, but keep some of the same ones in tact so as not to cause too much friction. At first, he decided to keep the hourly pay system that was already set up. The shop was always hourly pay and so was the truck dealership he worked for, truly, it was all he knew and the employees of Lonsbury Garage knew when it came to pay plans.
THE PROBLEM
As an owner, how would you like to pay a technician for working 70 hours on a vehicle when a job should have only taken 20? No owner does. But that’s exactly what happened to Stephan Cairl, owner of Lonsbury Garage in Angola, Ind., and it wasn’t the first time something like that had happened. He was frustrated with his shop’s efficiency and knew he needed to make a change, but he was worried how his staff would react—especially when it came to pay. The moment he finally decided to take the plunge was at a Shop Fix Academy seminar. Aaron Stokes, the founder of Shop Fix Academy and a Ratchet+Wrench columnist, pulled a shop owner on stage to talk about his shop’s current issues. Most of what this owner said resonated with what Cairl’s issues were—staff members were taking advantage of his hourly pay system and productivity was at an all-time low. How strongly Stokes felt about using flat rate blew Cairl away and pushed him over the edge. This was Cairl’s sign to officially go all in and change his pay plan. Now, he just needed to figure out how to go about doing it.
64 / R+W / 05.20
Once he got into his ownership role, he started to understand more of the behind-the-scenes workings of a business. One of the largest problems he faced was paying technicians for work that wasn’t completed in an efficient manner. Cairl was paying technicians for hours they weren’t even producing work, and at $16 per hour, it was a hefty difference. And not only did the numbers work against him, but what really irked him was seeing no effort from technicians to get jobs done sooner. After paying one technician 70 hours for what should have taken only 20, it was the final straw; he needed to figure out another option.
THE OPTIONS
There were a couple of different pay options that came to Cairl’s mind: • The first involved profit sharing, a system in which staff who work for a company receive a direct share of the overall profits. • The second pay system he considered was a bonus for productivity, which would essentially get rid of the productivity issues in the shop. • And finally, he looked into flat rate. With this system, techs get paid for a set fixed rate for every repair. For what he wanted to change about his pay system, flat rate seemed to fit what he was after; it was the most fair and the easiest to understand, he felt. The problem? It’s
not always popular with technicians. According to a survey by Carlisle & Co., only one in four techs are satisfied with their careers, citing flat rate pay as an issue in their roles. “When you sit down and look at it from a numbers standpoint, the technician gets paid what the company gets paid for the job,” Cairl says. “I tried to put myself in the techs’ shoes and look at it from an owner prospective and found it was the most fair for everyone.”
THE SOLUTION
When he got back from the Shop Fix Academy conference, he got to work, pulling each one of his techs into his office to lay down the new game plan. For starters, he knew he was going to have to find a way to sell this to his staff—he knew they weren’t going to be too happy. To combat this, he raised their pay to $3 more per hour and allowed technicians to work unlimited hours to collect during the week. This way, if they wanted to repair 50 hours worth of repairs, they had the green light to do so. From there, he explained that the faster technicians worked, the more money they could make. “With $3 more per hour, the tech’s wage has a really good chance at having a significant increase in productivity and pay,” Cairl says. During this period, he met with each one of his staff to go over their five-year goals, as he usually does. Cairl decided to use this time to go further into how flat rate could help them meet those goals. Essentially, he framed it by saying they would be able to pretty much be their own boss—more money and more control over their earnings. Cairl says he had to sell it this way to get his staff to buy-in. “It’s a lot more than just punching in on the time clock and going and doing your job,” Cairl says. “It allows them to structure their own bay. They can see what they can attain and see how they can get there.” Three out of five techs were excited about the system, and the two that weren’t were older and stuck in their ways, so to speak. Because of this, he didn’t want to jump right into flat rate for his staff’s sake,
Adapting to Change For the staff at Lonsbury Garage, switching from an hourly to a flat-rate pay system took some getting used to.
so he gave them a little cushion to implement the process full-on. Starting July 1, 2019, he slowly integrated the flat rate system in 30-, 60-, and 90-day increments. For the first 30 days on flat rate, he guaranteed his staff 35 hours per week. So, even if they didn’t turn that much, they were guaranteed that pay (anyone that turned more was paid for those hours as well). Between 30 and 60 days, techs were guaranteed 25 hours, and for the final 30 days, it went down to 15 guaranteed hours. After 90 days, there were no guarantees on pay.
THE AF TERMATH
Not only did the 30, 60, 90 plan work out with ease, but after slowly implementing the system, Cairl saw an instant difference in productivity and billed hours—the ones he thought would struggle actually thrived. Within two weeks, one of his techs doubled his hours. Before implementing flat rate, the tech (who was one of the ones that didn’t want to switch to flat rate) was ranging between 20 and 28 hours; now, he’s averaging 50. Cairl said that tech used to struggle with hours, simply because he didn’t have confidence in him that he could do it—he was his own worst enemy. Once he realized he had the capability, he took off with it.
On the other hand, one tech took a little longer to get the process down. Cairl says it came down to the 19-year-old tech not accepting responsibility, so it took a little coaching to help him understand this. “It’s as much effort as you want to put into your job is what you’re going to get back,” Cairl says. When it came to his sales, there was nothing but going up. ARO was up by $100 and sales were up by $35,000 in December 2019 compared to December 2018. And after netting $0, he netted $125,000 after just six months—three of those six months were the biggest sales months Cairl has ever had.
THE TAKEAWAY
Now, he realizes that he should have initially put his feelings aside and did what was best for the business right away. In other words, if you have an idea that will better your shop, he suggests—like many owners had told him—to stop being a baby and just do it. With this, he says it’s important to sell your vision to your techs and make it worth their while. A decent increase in pay and a cushioned structure to get them comfortable with it can go a long way. “I could tell you my biggest tip and it’s what everyone else told me: quit teetering back and forth just do it,” Cairl says. 05.20 / R+W / 65
T O O L B OX / C U S T O M E R S E R V I C E
Appeal to the Senses Create a pleasing lobby by appealing to your customer’s sensory needs BY A B BY PAT T E R S O N
book by its cover,” but when it comes to a business—it’s the opposite for customers. Nowadays, a business’s aesthetic is what gets them in the door. It’s all about creating an attractive atmosphere that’s all around pleasing to a customer while they’re waiting for their vehicle to be serviced. “It’s about having good curb appeal that will draw clients in,” Bhavana Bhimavarapu, a lead designer at Martha O’Hara Interiors in Minneapolis, Minn., says. “It’s a reflection of your business.” When Juke Ball, owner of Juke Automotive in Austin, Texas, was building his new 10,000-square-foot shop in 2015 for his staff of 23, he wanted to make his shop standout from the rest, and it came down to knowing his customers. “Austin is a progressive city,” Ball says. “People want things done in new ways and want something that’s better than usual.” And it’s not just about appealing to sight, but other senses, too. Keeping this in mind, Ball was able to go from $1.9 million to $2.6 million when he opened his new shop because of its strategic curb appeal. Ball’s shop now sits at an annual revenue of $3.7 million with a $500 ARO and 160 monthly car count. With the help of Bhimavarapu and Ball, here’s some tips on how to make 66 / R+W / 05.20
your business more attractive to customers’ senses. Sight How a business looks is important. Bhimavarapu says it’s very important that your shop not only reflects what goes on inside, but the people there, too. It all starts with your presentation. Bhimavarapu says you can create visual interest, but it doesn’t have to be just with color; you can add texture for visual interest; whether that means adding wallpaper to give the walls a little texture or your building itself as a sculpted work of art, adding texture is key. With a funky architecture—making it look more like an art museum than an auto repair shop—and a pop of color on the exterior, Ball knew the shop would stand out. “What I wanted was for it to really pop,” Ball says. “I wanted people to recognize the building from advertising and say, ‘Oh yeah, I recognize that place.’” Your signage is also a reflection of your business. Too much signage, the shop seems chaotic and overwhelming. But not enough, and you could leave customers confused. “How you display logos outside creates a huge difference,” Bhimavarapu says.
Before, Juke’s customers would get confused as to where the lobby entrance was. To ease confusion, he put up a funky 1950s sign pointing to the front door. For new customers, it can take a while to build up trust with a new shop. To give customers an insight of the shop, Bhimavarapu suggests displaying a couple of customer reviews. Even better, Ball has a whole folder in the waiting room with the words “Our Customers Love Us” labeled on the front. In this folder holds every thank you card the shop has received for when customers are feeling apprehensive. It not only helps put customers at ease knowing they are in good hands, Ball says he wanted to show that the shop appreciates its customers, too. “It’s like an intangible Yelp review,” Ball says. “Someone looking at one of those is like getting 10, five-star reviews.” The Psychology Behind Sight Ninety-three percent of purchasing judgements are made on visual perceptions and 80 percent of consumers think color increases brand recognition, according to information gathered from Colorfast.
Smell When it comes to smell, less is more. You don’t want your shop to smell like
JUKE AUTO
You know the saying, “Never judge a
Customer Choice Juke Automotive in Austin appeals to its customers in a number of ways, including a wide variety of seating.
garbage, or overpowered with a perfume-like aroma; meet in the middle. Bhimavarapu says to add an essential oil diffuser—a device that disperses essential oils into their air—even a plant or two, for a light, natural smell. For Ball, he took all-natural to the next level. Outside of his shop, he planted red oak trees, cacti plants and modern prairie grass along the street view of the shop. Because they are in Texas, Ball wanted to plant greenery that didn’t need to be watered often. His most prized plant, however? Texas green sage, which helped Ball reach his goal of adding softer elements and a nice, natural smell. “It blooms multiple times per year and smells amazing when you walk in the door,” Ball says. The Psychology Behind Smell Smell is closely linked to memory. According to Psychology Today, a recent study found evidence to suggest that memories triggered by a smell (like the scent of a rose) were accompanied by greater activity in certain areas of the brain.
Touch When a customer is sitting at your shop for a couple of hours, it’s important to make them feel comfortable and calm. In the waiting area, adding softer elements will make it feel more like home. Bhimavarapu says the materials you use really make a difference, whether its a comfy, leather couch, a cozy throw, or a fuzzy pillow, adding in softer elements will make your space feel like home.
And comfort also comes down to the type of seating you offer at your shop. Not everyone may want to sit and lounge around; some customers bring their laptops to get some work done. Bhimavarapu suggests having high-top, low-top, and lounge seating so customers can have options. In his shop, Ball offers a variety of chairs mixed with other chairs to handle lots of people; some comfy chairs for customers looking to relax, chairs with counter space to work, and smaller chairs available just in case. The Psychology Behind Touch According to a study from the University of Sam Ratulangi, Manando, one of the biggest influences for a customer choosing a movie theater to attend is comfortability and seating.
Hearing When someone thinks of an auto repair shop, the sounds of clanking, drilling, and metal-on-metal may come to mind. But it doesn’t have to be this way. While customers wait for their vehicles, it’s important to provide a peaceful space to unwind or where customers can get some work done. Typically, shops can provide some background music on a surround-sound system. It’s important to note, however, that the music doesn’t overpower the space. “It needs to be soft and subtle, something that doesn’t bother customers,” Bhimavarapu says. Unlike a lot of repair shops, Ball’s waiting room is TV-free. He wanted a calm environment for his customers to sit back and relax without any disturbances.
The Psychology Behind Sound According to the study “Music Congruity Effects on Product Memory, Perception, and Choice,” playing different types of background music can influence shopping behavior. Research suggests there seems to be some qualities of music that can influence buying behavior in a retail environment: tempo, pitch, volume and genre.
Taste Who doesn’t love a good cup of coffee and treats to snack on (especially when customers have to wait a couple hours for their car to be repaired)? Therefore, it’s important that your customer waiting room has some sort of refreshments to keep customers occupied and satisfied, making their experience more enjoyable. The one thing to stay away from though is adding a vending machine. “I would never put in a vending machine,” Ball says. “It is way too impersonal and would send a message of trying to nickel and dime people.” Ball makes sure to provide coffee and bottled water for his waiting customers, and his next project includes putting in a snack bar filled with treats from local businesses, like snack bars, a fruit tray, kid snacks, even a little kombucha (a trendy, fermented tea that’s all the rage nowadays). The Psychology Behind Taste Amenities are important for the customer experience, and a J.D. Power study found free food and beverages were the most popular amenities, with 60 percent of customers saying they “definitely will” return to a business where free snacks were offered. 0 5 . 2 0 / R + W / 67
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Columns
THE BOTTOM LINE Mitch Schneider
THE KEY TO SURVIVAL Make it through this difficult time by asking yourself one important question
MICHAEL HOEWELER
Designated as an “essential business”
or not, this is a difficult time for automotive service businesses. It’s almost impossible to market automotive repair, service or maintenance when the majority of your clients and potential customers are sequestered. There are, of course, elements of your messaging that can help you remain relevant. Top of mind. But you have to wonder how much they are likely to help when all but a very few of your clients feel comfortable leaving the safety of their homes. Harder yet to imagine they will reach into their pockets for any non-essential services when the economic forecast is dire at best. It’s hard to compete with the “Safer at Home” messaging that is central to the coronavirus crisis we’re all dealing with. A message that is consistent across two-thirds of our state borders as I write this. Certainly, we can communicate the steps we’re taking to keep our clients and our team members safe. Like disinfecting contact surfaces, door handles, seats, steering wheels, and controls. Or, the use of plastic steering wheel covers, floor mats, and seat covers. We can show them we are wearing gloves, masks, and using face shields. Or, remind them our team members are continually washing, sanitizing, and disinfecting the contact surfaces of both their environments and ours. We can create awareness of the many services we offer safeguarding the integrity of the stay-at-home directives they have received. For example, picking up their vehicles for service and then delivering them safely when service is complete. Or, the ability to complete transactions remotely, online or over the phone. And, we can remind them that
productive maintenance will ultimately save them money. We can go the extra step and provide extraordinary services far beyond anything that was offered before, like picking up and delivering groceries or medications. We can communicate all of these things clearly, concisely, and often. But the question that will still remain is whether or not our ability or willingness to provide any of these services is really what our clients want or need. The problem is what we may have missed. Perhaps, the most fundamental element of all successful marketing programs. A question that provides its own answer. “What is it that I can do for you that you are unable or unwilling to do for yourself? What do you need that only I can provide?” What happens if you decide you aren’t in the business of automotive repair, but shift your business model to provide freedom and mobility as your product instead. What kind of a difference would that make? I would argue the difference is profound. Freedom and mobility are far more compelling as an offering than service, maintenance, or repair, no matter how well done. Don’t misunderstand. Every one of the services described earlier are essential. Cleaning. Sanitizing. Pickup and delivery. Shopping for groceries. Or, delivering medication. They are all powerful marketing tools. Especially, in times of crisis, disruption, challenge, and change. But it would be hard to argue that you couldn’t amplify their value if they were offered within the context of ensuring a client’s freedom. If you aren’t sure, if you remain unconvinced, think about freedom and mobility in terms of your seniors. That segment of
Mitch Schneider is a fourthgeneration auto repair professional and the former owner of Schneider’s Auto Repair in Simi Valley, Calif. He is an industry educator, seminar facilitator, blogger, and author of the acclaimed novel Misfire. Contact him at: mitch@misfirebook.com. mitch@mitchschneidersworld.com ratchetandwrench.com/schneider
your customer base that needs to know that the under-utilized vehicles sitting in their driveway or parked on the street absolutely must get them where they need to go. Particularly in an emergency. Especially, when freedom and mobility translate as independence. So, while you’re considering all the services the very best shops among us are offering during the pandemic, ask yourself the one critically important question that may yet remain unanswered. “What can I offer that no one else is offering?” If it turns out to be freedom and mobility, communicate that to your customer base. Build interest. Create desire. Confirm that you and your team are their best resource. And, then, deliver. 05.20 / R+W / 69
“I TRY TO HELP PEOPLE WHEN THEY NEED HELP.” Repair Life
B E N M C MIL L E N PHOTOGR APHY COURTESY OF BA AUTO CARE
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ecoming a leader in your shop doesn’t mean you have to be the shop’s owner. No, a leader can be anyone in a shop that others look up to for guidance, and moving into that position takes time and training in itself. And, as Ben McMillen stepped into the role of BA Auto Care’s (in Columbia, Md.) new shop foreman, he made sure to take what he learned from his mentor to become one on his own, and learn what his mentor did that he thought he could do even better. A S TO L D TO A B BY PAT T E R S O N
I wanted to actually learn. My senior year
of high school, I worked at a gas station; all I did was change oil and clean floors. After high school, I attended Lincoln Tech, but I quit halfway through because I wasn’t learning anything. When I left, I was still interested in working with cars, so I looked at working for different dealerships and independent repair shops in town to learn from. I came into BA Auto Care three times before I got a job; they just weren’t hiring when I’d come in. By the third time, however, they decided to bring me on and create a whole new apprenticeship position just for me. After a few months working in the summer, they officially brought me on board full time. After a couple of months in the bays, I wanted to learn even more, so I asked the owner how I could move forward. The owner then set me up with a mentor, Dan Hopkins, the shop foreman. He was at the shop for 25 years and for the last 10 years that he was here, I worked underneath him. I think one thing he was very good at was explaining things. He was patient and if you
weren’t sure of something, he would say to put it to the side and focus on other things, then we’d come back to it; he didn’t rush into things or jump to conclusions. Every time I thought I screwed up, I was able to go to him and he would help me fix it, letting me know what I was doing wrong and how to fix it. I feel like I didn’t have to hide anything from him. I truly could go to him for anything, negative or positive. He also wanted me to learn on my own. At the time, I was taking night classes through a local community college. I would go into work the next day and tell him what I learned, and he would relate his topics for the day to what I had just learned in class the night prior. He supported me through my training by paying for it, even paying for parts that I broke while learning on the job.
A TYPICAL DAY IN THE LIFE Ben McMillin, shop foreman for BA Auto Care in Columbia, Md., breaks down his typical day 5:306 a.m.
Wake up
7 a.m.
Arrive at the shop
8 a.m.
Discuss daily workload
9 a.m.
Work on cars, assign out work
12 p.m.
Lunch
1 p.m.
Work on cars, check in on mentees
4:30 p.m.
Check in, road test cars
5 p.m.
Leave shop
6:30 p.m.
Make dinner
7 p.m.
Relax
10 p.m.
Bed
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R E PA I R L I F E / B E N M C M I L L E N
Leading the Pack Ben McMillen (left) has found himself in a new position among the staff at BA Auto Care–shop foreman.
The biggest thing I learned from Dan was looking at different ways to approach jobs.
After a car left, we kept talking about that same car or incident and looked at different ways to approach that job. Doing it so many times over and over, I look at different ways to tackle a job before I begin working on the car. Dan retired roughly nine or 10 years ago. It took some time to move into his role. There was another guy who took over his role at first, but he moved shortly after and left the shop. I was then asked to be the shop foreman in 2014.
foreman position, I’ve been paired up with some of the younger kids that want to become technicians in the future. I’ve shown them the same procedures, encouraged them to read coursework, learn industry knowledge from books, and take what they have learned from class to apply it in the shop; just like my mentor did with me. All in all, I’m teaching them to look at different ways of approaching jobs. I think you have to be, especially in the independent shops, very creative with how you approach them. We can’t always afford all of the special tools it takes to do the special jobs.
I teach the same principles to my techs as he taught me. Since moving into the shop
I’m a little more open with communication than my mentor was. If you make a mis-
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take, I want my techs to come and tell me. Dan never told me to come straight to him, but I wanted to be straightforward with my techs and tell them they’re not going to learn unless they are able to come to me with issues. If I tell them how to do something 15 times, they need to know that they can’t sit there and not say anything. I understand that it’s difficult to try and remember every detail, so it’s better to have more questions than not. Last year, for example, we had two new techs and I worked with them closely for the first couple of weeks, then slowly stepped away so they’d come and ask me questions, either because they weren’t familiar with the car, didn’t
BA AUTO CARE
Owner: Brian England Location: Columbia, Md. Shop Size: 14,000 square feet Staff Size: 14 (5 techs, 2 service advisors, 3 receptionists, 2 shuttle drivers, 1 GM, 1 owner Lifts: 18 Average Monthly Car Count: 312 Annual Revenue: $2.4 million
have the tools, or didn’t know what tools to use. I try to help people when they need help; I don’t try to force myself on them. When
I do, I’ll go over and try to understand why they are doing it a certain way. I don’t try to make them do it the way I do it. What I started doing in the beginning after I was hired was, when they started hiring young apprentices and they would come to me with questions, I would show them how I would find that answer myself versus just giving them the answer right away. For example, if someone is asking me for help, I take them to the computer and show them how to look up the procedures
on how to do it, and explain how to do it exactly how the procedure suggests and just make sure to point out some of the ways I’ve noticed on how to approach it; little tips of mine. After I show them how I do it, I walk away to let them do it on their own. I think the hardest thing, still, is having patience. When I give them instructions
on a job to do, like taking something apart, for example, I tell them to come and see me when they have it all taken apart. Sometimes, it may take them four to five times longer than I’d like it to. I can’t just be on top of them and do it for them, otherwise they won’t learn. And, most of the time, they go a lot further
along than I told them to. I ask them to come and get me because sometimes they skip small steps when they don’t. I then have to explain to them that we have precise procedures on how to do this and why coming to me prevents them having to start over. For example, I’ve had someone take apart a car and then try to put it back together and it doesn’t work, so now when they ask certain questions, I try to figure out how they got to that point so they ask me the right questions. I have them take me through what they did from the start, and I soon find out we end up somewhere completely different from the original question they asked me. 0 5 . 2 0 / R + W / 73
YOU NEED
OEM PARTS. Which means you need
RepairLinkShop.com
With cars becoming more complicated, don’t take a chance on non-OEM parts. RepairLinkShop.com makes your repairs easier with: • • • •
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Your link to parts THE COMPLETE GUIDE TO REPAIRLINK SHOP
Inefficiencies can break the shop. Lost time and lost orders, wrong parts or a poor system only slows down repairs and slash critical KPIs that let you know how well your shop operates dayto-day. Reducing comebacks and keeping CSI scores high often comes down to one simple factor—do you have the right OEM parts at the right time?
THE RIGHT PARTS, THE FIRST TIME How one shop has been able to speed up efficiency using RepairLink Shop.
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GROWING ACCESS TO INFORMATION A look into how RepairLink Shop continues to strive to provide OEM repair information to shop owners.
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PROVEN SUCCESS Quality parts and OEM repair information help to improve critical KPIs.
PEXELS
Electronic parts procurement platforms have modernized the industry's OEM parts buying process by allowing shop operators to efficiently—and accurately—locate, source and purchase OEM parts without making a single phone call. OEC has been an industry leader in parts procurement for twenty years. In this special section, Ratchet+Wrench sat down with a shop’s vice president who relies on RepairLink Shop to keep his expansive business in top gear. As well as the mechanical & retail director at OEC about where the industry has been—and more importantly, where it's going.
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your link to parts
THE COMPLETE GUIDE TO REPAIRLINK SHOP
Access Quality Parts and Increase Efficiency HOW ONE BUSY SHOP RELIES ON REPAIRLINK SHOP TO SAVE TIME AND ENSURE THEIR REPAIRS LIVE UP TO THEIR WARRANTY
To say Rick's Automotive is a busy shop is an understatement. The shop has over 40 employees, 28 bays, consists of three buildings and takes in around 1,400 cars a month. Anything Travis Comfort, vice president of the Missouri shop, and his team can implement into the front or the back of the business to help run Rick’s more efficiently helps the over 300 cars a week go in-and-out faster with more ease. Over time, procurement of parts began to slow down Rick’s Automotive flow—a bottleneck, per se. With time wasted on back-and-forth phone calls to local dealerships, chasing down a part that may not even be the correct one needed to complete the repair—something new needed to be implemented at Rick’s. Soon, through nearby dealerships, the shop’s team began to hear of a possible solution to their bottleneck, a new online connection. RepairLink Shop became an all-in-one place for Comfort and his team to order quality OEM parts, access diagrams and other repair information, and most importantly, increase efficiency.
The Search for Quality Parts Quality parts are important at Rick’s, and in order to ensure each part lives up to the shop’s warranty, about half of what they use are OEM. RepairLink Shop allows for the shop’s team to conveniently and easily order each needed OEM part. “We want to install the best quality parts in our repairs to make sure it lasts throughout our warranty,” Comfort says. “Providing the best quality to our customers is what we’re about—it’s our brand.”
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Mark Cummings, parts manager at Rick’s Automotive, is the team member who is primarily on RepairLink Shop, along with a few other service advisors (who use it for part estimates). The online ordering is fairly intuitive, says Comfort, and is simple enough for anyone in the shop to access and navigate if needed. And considering RepairLink Shop is web-based, it allows for 24/7 searching by either VIN or year, make and model (YMM) at any time. “The ease of use alone is why we recommend it,” he says. Comfort also mentions almost all dealerships in his area have adopted RepairLink Shop. “There were a few stragglers over the last few years, but everyone has gotten on board with it,” he says. “Also, a lot of the dealerships will offer discounts if you order through RepairLink Shop, since it also saves them manpower.”
A Complete Look Inside One of the most helpful additions to RepairLink Shop, has been part illustrations and technical diagrams. “All of the diagrams are right online,” Comfort explains. “You can pick out the needed part from the specific diagram and then easily transfer that part to your shop management system without manually entering in all of the part numbers, prices, and descriptions.” The diagrams and illustrations are well-organized within RepairLink Shop, and easily searchable, he says. His parts manager or technician can click on the specific category and get down to the correct diagram quickly. “Anyone can look up a part in seconds,” he says, “so it's really been a great tool for us.”
Mainly, these diagrams help to ensure part accuracy by removing the many steps and drawn out exchanges between his shop and each dealership. “When talking to dealerships back-and-forth, things can get easily mixed up. If they end up sending the wrong part, you have to wait a day or two to realize the mistake, and then start over from day one,” Comfort says. “It’s just nice to get all the diagrams dealerships use and be able to pick the correct part out with your own eyes.”
Speeding Up the Process Above all else, RepairLink Shop saves the Rick’s
"RepairLink Shop really just streamlines everything." —Travis Comfort, vice president of Rick's Automotive
Automotive team time and, as Comfort says, “time is money in our industry.” Before utilizing RepairLink Shop, a team member would have to take the time to individually call up each dealership and let them know what part they were looking for. They would then have to wait for a price quote to be written. Once written, another phone call to the dealer would have to be made—with the hope a parts person was available on the other end to order the needed part for them.
“Now all we have to do is click a button,” Comfort explains. Since RepairLink Shop is connected to Comfort’s shop management system, it allows for anyone in the shop to order a part through the software without even having to make a single phone call. “RepairLink Shop really just streamlines everything,” he says. The illustrations and technical diagrams, as mentioned above, also ultimately save time at Rick’s Automotive. “Not only has ordering the parts been faster, but our parts manager can look at the diagram with the technician and get the correct part, the first time,” he says. “It's been a huge timesaver.” And saving time is ideal at Rick’s Automotive— where efficiency is needed in order to complete the repairs of hundreds of vehicles each week.
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your link to parts
THE COMPLETE GUIDE TO REPAIRLINK SHOP
Looking Towards the Future
A LOOK INTO HOW REPAIRLINK SHOP STRIVES TO COMBAT FUTURE INDUSTRY CHALLENGES FOR REPAIR SHOPS
What is your background? How did you get to where you are now at OEC?
With OEC celebrating its 20th anniversary this year, Ratchet+Wrench sat down with Bonnie Coleman, OEC director of mechanical & retail, to discuss where the industry has been, where it’s going and how RepairLink Shop is adapting to the advancing technology.
So my background is probably a little bit interesting, people are usually surprised. I've worked in television recruiting and now in software. But my background has always been more project and product management. Before OEC, I had a job at Harley-Davidson—they have a software company here. I worked in the sales department, but I did some vendor management and installation. And then I found my way to OEC. Since 2001, I’ve basically worked in software, working with dealers. That's what I really liked about finding OEC; I still get to work within a dealer network, providing them solutions to help them do their jobs better and more efficiently.
What excites you most about the industry? The automotive industry is one of the largest industries in the world. So I would say that's pretty exciting. And it pretty much touches everybody—even if you don't own a car, you're reliant on some type of transportation that involves a part. Technologically advanced vehicles have accelerated with tech companies rapidly integrating their technology into the vehicle build. All the big boys are in, Microsoft, Google, Apple, Amazon, etc. This means changes come more rapidly, which show up in repair facilities at a faster pace, making dealerships' parts inventory that much more important to the repair industry. Figuring out the best ways to help the repair
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industry keep up with this new pace is quite challenging and exciting.
What do you believe is the biggest challenge facing the industry right now? I would say a challenge is definitely the lack of information. When we poll our customers and ask what they’re looking for, they typically say that they’re really looking for information from the automakers. There's a lot more technology in newer vehicles, and they need access to information on how to repair them correctly. It used to be that if you heard a certain sound, you
"We have over 100,000 shops registered with us, and we're at about 41,000 shops month-over-month that at least use RepairLink Shop to source information." —Bonnie Coleman, OEC director of mechanical & retail
knew exactly how to repair the vehicle. Now, it's different because of the technology. You really have to understand how to diagnose and repair these newer vehicles, and you need access to that information. We've improved the breadth and depth of available OEM parts information to shops in ways they can consume it. We need to continue down that path by also figuring out good ways for them to do the same with repair and diagnostic information.
How is RepairLink Shop working to overcome this challenge? We're trying to work with the automakers to include more information. We have over 100,000 shops registered with us, and we're at about 41,000 shops month-over-month that at least use RepairLink Shop to source information.
We have relationships with all of the automakers, so we can use our channels to disseminate information. We’re working with them to get more technical information, maybe some service information, in a format that we can hopefully, by VIN, start putting within our tools in the next year or two.
Where do you see the industry going in the next 5 years? Some things coming up are definitely connected vehicles and advancing technology—so more sensors. I’ve heard that by around 2025, there's going to be well over 100 sensors in vehicles. So shops are definitely going to need dealers, and again the access to the repair information, to make the needed repairs. Traditional aftermarket carries less than 10 percent of parts, and those parts can be used for 80 to 90 percent of repairs. As we continue moving with the technology increasing in vehicles, shops are going to need more and more access to the dealer's inventory, in order to acquire the parts necessary for future repairs.
Any exciting things on the horizon for RepairLink? So on average, we've been growing about 25 percent year-over-year, just on the shop side. So we’re looking at growing our marketplace. We also offer programs from the automakers. They’ll offer parts programs to compete against the aftermarket, so we're actually going to be adding some additional automakers' programs this year. I would say the other thing we're pretty excited about is delivery. Dealers are really good at getting parts to everybody later that day or the next. We're looking at leveraging new distribution models to help dealers deliver within the same day, within hours. So that's something on our roadmap, in the near term.
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your link to parts
THE COMPLETE GUIDE TO REPAIRLINK SHOP
By the Numbers
Access to OEM Repair Information
This data was pulled from the 2019 Ratchet+Wrench Industry Survey. This survey represents a cross-section of shops around the country and provides a glimpse into how the average shop performs, how its leadership manages the shop, and the tech and tools the shop uses.
— As the fight for repair information continues, some shops still struggle to access what they need to correctly repair certain vehicles. This lack of access seems to ultimately affect how shops perform. Shop owners with access to OEM repair information outperform shops without the information in almost every essential KPI.
86% of shop owners say they have
access to OEM repair information
49% of shops that have access to OEM repair information have an annual revenue of more than 1
million dollars
50% of shops that have access to OEM repair information have a gross profit margin on part sales of over 50%
14% of shop owners say they do not have access to OEM repair information
25% of shops that do not have
access to OEM repair information have an annual revenue of
more than 1 million dollars
42% of shops that do not have access to OEM repair information have a gross profit margin on part sales of
over 50%
Ensure your shop commits to accessing the right OEM information. RepairLinkShop.com gives you parts illustrations directly from the OEM to help your shop grow.
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Percentage of OEM Parts Used — Should your shop use OEM or aftermarket parts? This debate is as strong as ever, and a topic that shouldn’t be taken lightly. According to the 2019 Ratchet+Wrench Industry Survey, a majority of shops around the country use a combination of both, depending on the repair. Shops with a higher percentage of OEM parts tend to outperform those with less when it comes to profitability.
Shop owners were asked,
“What percentage of your parts use is made up of OEM parts?”
7% use 70% or more OEM parts
1% use no OEM parts
4% use 60-69%
15% use 1-9%
OEM parts
OEM parts
5% use 50-59% OEM parts
5% use 40-49% OEM parts
12% use 30-39% OEM parts
Of shops with 40% or more use of OEM parts,
26% use 10-19%
46% have an annual revenue of more than 1 million dollars. Of shops with less than 40% use of
35%
OEM parts, have an annual revenue of more than 1 million dollars.
OEM parts
25% use 20-29% OEM parts Gain 24/7 online access to original equipment mechanical parts from preferred dealership suppliers with RepairLinkShop.com.
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Columns
THE FIXER Aaron Stokes
THE BEST SUMMER EVER The next few months could be the light at the end of a very dark tunnel
March—in the middle of the COVID-19 pandemic and the hysteria. There's a lot of uncertainty right now. People don’t know if their businesses are going to make it through. Technicians, service advisors, managers—many are scared that they’re going to be let go. It’s a scary time, but, even as I write this, surrounded by panic, I have hope. Hope for the industry as a whole. Hope that this summer could be the best summer yet for auto repair shops. I hope that by the time you’re reading this, your town and business has come out of the situation on the other side. Only time will tell. But the fact is, things are never going to be what they were. Even if all of the restrictions have been lifted and we’re no longer social distancing when you read this, the fact is that there’s debt that wasn’t there before. There are some scary times we just went through and will continue to go through. We have to understand what that means for our industry. We just came out of some craziness and we’re wiser and stronger for it. After seeing your team pull together and the success stories of others in the industry, I hope you have found a new found pride for what it is we do. I also hope that between the time of me writing this column and it coming out, you found ways to work on your business. Maybe you took advantage of the down time and took part in some training you’d always wanted to but didn’t have the time for. Maybe you took time to upgrade your facility by adding a fresh coat of paint to the lobby or looking for a more efficient 82 / R+W / 05.20
way to set up the flow of your shop floor. Whatever the case, you’re here now and I have good news for you: I believe this summer could be some of the best months ever for your shop. During a time where many businesses were shut down, auto repair shops were able to stay open. It was steady. People now view our industry as a safe haven—it’s a safe place to get a job. Because of this, we can hire more talent than ever before. If you understand what’s happening, you can be really picky, and if you made it to May, I feel like you have a good understanding. Restaurant workers may be looking for a job, and they could be a great fit for a customer facing job, like a service advisor. Many shops, and dealerships, had to close down. Those people are looking for jobs. Take advantage of that. Not only will hiring be easier, but we’re coming off five years of record car sales. This year, we will see car sales drop off. During times of economic crisis—think the 2009 crash and 9/11—people aren’t running to the dealership to buy cars. They’re hanging onto them longer. Older cars require more maintenance, which means they’ll be coming into your shop to spend money. This summer, there will be more cars on the road than there have ever been and people will be looking for someone to take care of them. If you played your cards right and continued to market through this insane time, then the summer of 2020 could be the best time in auto repair ever. Be bold in marketing, hiring, in your business plan, because now is the time to
Aaron Stokes grew his business, AutoFix, into a six-shop operation that is widely regarded as one of the top repair businesses in the country. He is also the founder of Shop Fix Academy. aaron@shopfixacademy.com ratchetandwrench.com/stokes
go for it. Get excited and believe in yourself and have confidence. You survived a crazy storm that most weren’t able to. Rally around the best people you can find, build your team and go for it. This is the year that you step out and hit your stride and get to the next level. For those of you reading this that are shaking your head and saying, “Aaron, I’m in big trouble; this isn’t my situation,” pull yourself out of that mindset and realize that there will be enough business for everyone that survived this crazy time. Focus on selling your dream and vision and go for it—don’t let money get in your way. What’s about to happen in the next few months is going to be an exciting time in our industry. Now is your time to shine.
FUE VANG
I’m writing this column at the end of
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