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INTERSTATE AUTO CARE

A Midwest success story

Madison Heights is about 14 miles northwest of Detroit. Approximately 50% to 60% of Interstate Auto Care’s customer base is within a three-mile radius of Madison Heights, with the remainder within an hour’s drive. At age 16, shop owner Bill Nalu purchased his rst car, which broke down the day he bought it. Following his father’s advice, Bill followed the path of being self-su cient and took an auto mechanics’ course in high school, learning skills that allowed him to pay for college. M west of Detroit. Approximately 50% to 60% of Interstate Auto Care’s customer base is within a three-mile radius of Madison Heights, with the remainder within an hour’s drive. At age 16, shop owner Bill Nalu purchased his rst car, which broke down the day he bought it. Following his father’s advice, Bill followed the path of being self-su cient and took an auto mechanics’ course in high school, learning skills that allowed him to pay for college. A er graduating from Wayne State University in 1990 with a degree in business, Bill worked as a tech support rep for VW/Audi of America. A er realizing that he wasn’t cut out for the of ce politics aspect of corporate life, he jumped at the opportunity to manage a Shell service station, enjoying the chance to manage a business and to have a say in workday scheduling and operation. Two years later, he partnered with brother Steve Nalu to purchase their own Shell gas station, which they operated successfully for the following six years. In 2000, Shell decided to eliminate all of its service retailers, opting for a gas and convenience store format. At this point, Bill purchased a former tire store that his parts supplier had suggested, which was the start of Interstate Auto Care. As a result of his outstanding customer service reputation, 80% of his customers from the previous 22

The Interstate crew, from left to right: Joe Lerchenfeld, Norm Schultz, Mark Adams, Nick Nalu, Casey O’Sullivan, Bill Nalu.

location travelled the several miles to new location, giving him the running start when the doors rst opened in the fall of that year. “ e majority of these customers who have remained loyal are the ‘baby boomers’ who appreciate skilled service and honest dealings. Today, too many people seem armed with plenty of content but little context and apparently don’t take the time to understand what’s involved in diagnosing and servicing today’s vehicles. And who can hardly blame

INTERSTATE AUTO CARE

Madison Heights, Michigan

Owner(s) ..................................................Bill Nalu Business founded...........................October 2000 Number of bays ..................................................7 Number of certi ed technicians ........................4 Shop size (square feet) ...............................7,000 Number of vehicles serviced per month ........200 Hourly labor rate ..............Variable, $115 to $145 Average job ticket price ....................About $550 Gross pro t....................................................58% Average spent on tools and equipment annually ................................$20,000 Vehicle makes serviced ............American/Asian/ European/medium-duty diesel

The service desk and waiting areas are spacious and impeccably maintained.

them? Every minute of the day and at every turn, they are being promised anything and everything for nothing down, and nothing a month.”

Does your shop o er general automotive repair, or do you tend to specialize in speci c makes or types of repairs?

General service, but with some diesel eet maintenance emphasis.

What is your business philosophy?

I believe that our success has been grounded in the decades-long commitment to provide hightech/old-fashioned customer service.

What does that look like, you ask?

It means that we treat people with the respect that they deserve. is is accomplished by our employees who are “people-people” — highly skilled technicians who are servants at heart, and diligently strive to service and maintain today’s modern automobile, arguably the most complicated consumer product in history.

Where do you buy your parts?

My main supplier is Maxi Automotive Warehouse, a subsidiary of AutoWares Parts Distributor out of Grand Rapids.

What in uences your parts buying decisions? Rank from 0 to 3, with 0 having no in uence and 3 having the greatest in uence?

Price ................................................................1 Brand name recognition .............................3 Promotion in racing .....................................0 Perceived quality...........................................3 Availability/time ...........................................3 Supplier (marketing program) support ....3

Supplier support is my main determinant, hands down.

What do customers want/expect from your Owner/founder shop? Bill Nalu.

Many expect everything for nothing. ey expect it done on time, every time. ey expect nothing to go wrong along the way. My job is to set their expectations at a level where I can deliver on them the rst time, every time. If and when I fail to do that, I have a customer who may not leave our shop a satis ed customer, which is way too prevalent in the overall retail service industry.

What is your approach to technician training?

As the owner of an ASE Blue Seal-certi ed facility, I am proud to say that I pay for my technicians to attend online and o ine training, as well as paying when they pass certi cations. Why do I do that, you ask? Because #1: Someone has to set the example that certi cation means something. If I don’t, then who does? #2: What better way is there when a customer at the counter asks why something costs what it does, than to point them to a wall lled with ASE credentials and set yourself apart from the average shop out there?

How does ASP bene t your business?

I really appreciate manufacturers, associations and publications that support our industry image. As a service professional, I encourage my employees to seek out information that makes them a better technician, and a better service advisor respectively, and Auto Service Professional is de nitely a contributing factor. ■