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IVAN RIOJA-SCOTT
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Let’s be data-driven!
BY IVAN RIOJA-SCOTT
As the year comes to an end many of us find ourselves evaluating what has been achieved, and often setting goals for the coming year. I tend to find that when I ask people about their new year’s resolutions, they are all very vague and generic (I want to grow my business, or I want to get in shape, I want to be a better daughter or son …). And let’s be honest, those goals are usually explicitly vague so that the follow-up on the actual results can be just as vague as the goals themselves. So, I pose a question … What if we decided to only measure ourselves by exact, measurable, numerical data? In a recent podcast episode I recorded with Dylan Williamson, a seasoned fiscal and business advisor that specializes in auto repair shops, he mentioned to me how many shop owners don’t look regularly at “the books”. How many shop owners (his customers) have the “Aha!” moment when their books are dissected, and the information within them is presented to them with clarity and simplicity. This is that exact split second of time when many of those shop owners, without even knowing it, become data-driven decision makers. Having all the numerical information allows them to make better strategic decisions, negotiate better pricing
deliveries, and improve their businesses, all from a data standpoint.
We’ve all been “guilty” at one point or another of allowing ourselves a break from measuring everything by the numbers. Maybe it’s a little extra holiday spending, or some little luxuries on a vacation that weren’t accounted for in the budget. Well, I think that’s actually a good thing, a healthy little treat. But we can’t distract ourselves from the fact that data-driven goals, objectives, and decisions offer a measurable point of evaluation. Using data-driven decision making can really maximize our results. And yes, we can apply that not only to the shop setting, but also to our personal lives—to achieve those goals that can really help us grow personally. As human beings we cannot separate emotions completely from our decision-making process, but what we can do is shift our mindset into making the data come first. Looking at what objective numbers tell us, interpreting those numbers as absolute values for growth, and developing a strategy around them to produce the desired outcome.
On behalf of all of us at Ratchet+Wrench, we wish the best for 2025!
CORRECTION NOTICE:
An earlier version of Owings, T. (2024, November). Pass the Baton. Ratchet+Wrench, was accompanied by an image that was inadvertently run without permission from the rights holder, Auto Service Leader. As a creator and publisher of content, we take the rights of copyright holders seriously and we apologize for the oversight in our process that failed to catch the error.
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JUMP START
MAINE’S RIGHT TO REPAIR: THE WORK BEING DONE TO IMPLEMENT IT
The Right to Repair has been at the forefront of the industry for some time now. The federal level has yet to respond to the widespread industry petition, but some states are already acting in favor
BY KACEY FREDERICK
The fight for Right to Repair at a federal level continues, but in the meantime, states like Massachusetts and Maine have fought to make it law on a state level—the latter of which most recently passed its own Right to Repair bill in 2023.
Being one of just a few states that has Right to Repair legislation, there are a lot of questions that need to be answered before it can start being fully enforced. The law passed will require the creation of an oversight committee to ensure automakers are providing data to repairers.
But before that can happen, Maine’s bill has laid out phases of implementation: the first of which being the for-
mation of a working group to determine how this committee will operate.
The group, consisting of roughly a dozen individuals, includes a member of the Alliance for Automotive Innovation, a director of engineering from Tesla, the owner of a large car dealership in Maine, and representatives from the Attorney General and Secretary of State’s offices.
Tim Winkeler, CEO and president of VIP Tires & Service, serves on the group as a representative of the independent auto repair industry. He’s joined by Jeff Groves, who has worked with O’Reilly Auto Parts and is representing aftermarket parts companies.
“In a nutshell, the group we’re in right
now is charged to create an entity, decide where that entity is going to reside, how it’s going to be staffed, how it’s going to be financed, and then what their level of authority and decision-making is going to be,” explains Winkeler. “We’re still in that first phase.”
The next phase will commence in February, when the working group finalizes its guidelines and submits them to Maine lawmakers. Those guidelines will serve as a foundation for how legislators should implement the law moving forward.
Issues Impacting Independent Repair
Before that can happen, the issues Winkeler outlines must be addressed, and it’s critical for the group to have a diverse range of opinions to fully understand these obstacles. Though Winkeler is not involved in lawmaking, his presence has given voice to the concerns of independent shops in Maine.
One major issue Winkeler has highlighted in the group is the need for repair data to be accessible through standard scan tools. However this oversight entity decides to enforce Right to Repair, it will need to ensure that independent shops have access to this data without any
unforeseen costs like having to purchase new scan equipment.
“We can’t allow this solution to require, for example, that a technician go and buy a separate tool that’s a Chrysler tool, and a GM tool, and a Toyota tool, and a Tesla tool, and for the other 20-orso car manufacturers,” Winkeler says. “It has to be something that’s feasible and that fits within the current way that our industry operates.”
Enforcing the Law
Already embedded in Maine’s Right to Repair law is a penalty for auto manufacturers that don’t abide by the legislation, with a $10,000 fine being incurred for each violation. If a shop is struggling to access repair data, a process will be needed to report these instances. This is where the Maine Attorney General’s involvement with the working group comes into play: to ensure the state can enforce this law.
While the working group is still ironing out guidelines, it’s possible that a platform could be created for repair
shops to submit problems that the Attorney General’s office would then review.
Looking Ahead
The working group is on track to determine the structure, location, power, and authority of the oversight committee by the turn of the calendar year, followed by figuring out how it will be funded and who will lead it.
After that, this oversight committee must figure out how it will ensure that automakers are providing a remote access platform to obtain repair data through— which automakers will need to do by law.
“So if you buy a car that produces data that has to be accessed remotely, through the internet or through some other remote means, in order to repair it and diagnose the problem, then the car owner themselves, through this law, can provide access to that remote data to their independent repairer. And the car manufacturers have to agree to create a remote access system to enable that,” Winkeler explains.
Going Into the Great Unknown
Though a memorandum of understanding was signed by automakers and aftermarket groups in 2014 stating that independent repairers may have access to necessary data, there’s been no real way to enforce it.
This is at the core of the need for Right to Repair legislation, and Winkeler hopes that the progress being made in Maine will motivate Right to Repair movements in states across the country.
“I think that’s one of the biggest opportunities for other shop owners who have a presence in other states. I think we need a lot more states to be picking up the baton and running with it,” says Winkeler. “And so I would encourage anybody who’s in a position of owning a shop or multiple shops to really look into how to get active, how to either get this on the ballot, or get enough lawmakers in their state educated on the topic so that they can get it on into their own state legislatures. I think that’s really important for the industry.”
Congresswoman Pushes for Auto Technician Tools to Be Covered in Education Savings Plans
For many, the cost of tools has proven to be one of the biggest barriers to entry for the auto repair industry—but one Congressperson’s recent bill aims to alleviate that burden for technicians.
According to a recent press release, the Fairness for the Trades Act, introduced by Rep. Marie Gluesenkamp Perez of Washington State’s third district, would expand eligible uses of a 529 education savings plan to cover the cost of tools needed for technical careers.
Funds from 529 education savings plans may be used at any accredited college, university, vocational school, or other post-secondary educational institutions in the U.S. It’s also recently been expanded to cover costs associated with registered apprenticeships.
A former shop owner and Right to Repair advocate, Rep. Gluesenkamp Perez’s bill would expand 529 education savings plans to cover the purchase of qualified business expenses in auto repair and maintenance fields, as well as construction, plumbing, electrical, logging, fishing, and farming.
“For hardworking young people who have access to a 529 savings plan, it’s important they can choose their own career path where they do what they love and are skilled at,” said Rep. Gluesenkamp Perez. “Buying the tools to start a career or business in the trades is expensive–and these plans need to support toolboxes, not only tuition.”
ASE Partners With WrenchWay to Expand Recruitment Platform for Automotive Technicians
The National Institute for Automotive Service Excellence, the ASE Education Foundation, and WrenchWay have partnered to promote the School Assist platform as a solution for shops to get involved with local automotive programs, according to a recent press release.
Created by WrenchWay, School Assist serves as a platform connecting high schools and post-secondary schools to industry professionals. Schools can post requests for guest speakers, shop tours, tool donations, internships, and more,
while shops are able to view requests on School Assist and connect with a school.
One thousand shops and dealerships currently use School Assist alongside over 1,100 participating schools. As a result of the newly-formed partnership with ASE, 2,000 ASE accredited training programs will be integrated into School Assist thanks to the ASE Education Foundation.
Additionally, School Assist will now be offered at a lower price for shops, dealerships, and other industry partners who would like to use it but have no need for the full WrenchWay Top Shop program.
“Our partnership with WrenchWay, utilizing School Assist, allows us to super-charge those connections previously enabled by our Adopt-A-School program,” said ASE President and CEO Dave Johnson. “It provides schools with the tools and resources they need in one centralized platform.”
Survey: Dealerships Narrow Gap, While Independent Shops Maintain Lead in Customer Satisfaction
While independent repair shops still lead dealership service departments in customer satisfaction, a recent study from CDK Global suggests that gap may have slightly shrunk in the past year, but also highlights the strengths independent shops have over dealerships.
Dealership Pain Points
The CDK Service Shopper 4.0 study surveyed over 2,000 customers who have received car maintenance and repairs on their opinions of dealership service.
Dealership service departments’ Net Promoter Score, which represents a customer’s likelihood to recommend a business, was 59. It marks a 14-point increase from 2023.
Independent shops still outrank dealerships with a NPS score of 66, but their former 11-point lead decreased to seven points this year.
For the first time, CDK evaluated the role phones play in a customer’s experience with booking an appointment.
Sixty-four percent of customers will opt to use their phones for scheduling visits. Many respondents reported experiencing issues with being able to arrange dealership appointments on their phone, which negatively impacted their
chances of recommending the business to others.
Additionally, customers who were put on hold by a dealership had a 20% lower NPS score on average, with the average hold time for dealership customers being over eight minutes.
Respondents expressed much negativity surrounding the transparency of pricing at dealerships, with personalized offers and discounts ranking at number two on what customers want from their auto service provider, marking a first for the survey.
What Appeals to Customers
In turn, CDK underscored the value of artificial intelligence tools to assist with generating custom discounts for customers, as well as helping answer phones or responding to inquiries.
The study also emphasized the importance of offering a waiting room with amenities such as Wi-Fi and refreshments to customers, with most preferring to wait on their vehicle as it’s serviced.
Independents Versus Dealers
In terms of advantages independent repair providers have over dealership service departments, pricing has not played as big of a factor, falling from the number one reason consumers chose an independent in 2022 to fourth this year.
While the top three reasons consumers chose a dealership were service staff knowledge, existing relationships, and a good reputation, for independents, good reputation, convenient location, and existing relationships ranked as top reasons, in that order.
Fisker Was Victim of North Korean Money Laundering Scheme
An operative from North Korea conducting an elaborate money laundering scheme was reportedly employed with Fisker among hundreds of other U.S. companies, according to Jalopnik.
An employee named Kou Thao was first hired on to Fisker in October 2022 as a remote IT worker. Though Thao had an address listed in Arizona, it was actually the residence of a woman named Christina Chapman.
Using a laptop sent to her home by the company, Chapman set it up so the
computer could be accessed remotely from China and Russia. Paychecks would be sent to Chapman, who in turn funneled the money back to North Korea.
In between completing work, these actors would access sensitive company info, which would be used for extortion upon termination from their position.
Eventually, the FBI became aware of the scheme and alerted Fisker, who terminated Thao in September 2023. This wasn’t the only automaker to be targeted, with one DOJ filing suggesting that one of the Big Three were victims as well.
In total, over $6.8 million in wages were taken from more than 300 U.S. companies within the automotive, technology, cybersecurity, aerospace, media, retail, and food delivery sectors. Operatives also attempted to gain positions within the U.S. government, including the Department of Homeland Security and Immigration and Customs Enforcement, but failed.
Stellantis Sues Fifth Automotive Parts Supplier, Brose
Stellantis is suing its parts supplier Brose over price increases, according to CarScoops.
Having threatened a shipment pause in August 2023 unless Stellantis agreed to a price increase, Brose reached an agreement with the automaker in Nov. 2023; but now, according to Stellantis, the company is going back on its word.
The latest lawsuit from Stellantis was prompted after a two-day shutdown at Brose’s Windsor facility.
“It has become increasingly clear that unless the court orders otherwise, Brose will refuse to honor its contracts with FCA and will continue to demand more money for its goods as it desires, leaving the continuous operation of FCA’s plants at risk,” the lawsuit stated.
This marks the fifth supplier Stellantis has sued. Prior to this, the most recent supplier the automaker sued was in July, also over price increases. In August, a lawsuit was also filed against a dealership that attempted to return unsold fleet vehicles, with Stellantis facing another legal challenge later that month from shareholders disappointed with declining profits.
“We recognize that the volatility in the
automotive industry has significantly impacted relationships between the supply base and OEMs,” Brose said in a statement. “Our main goal is to protect our business and employees, as we are committed to finding reasonable solutions to support our customer relationships. We remain hopeful for a resolution that allows our partnership to continue.”
Missouri Shop Explosion Leads to Death of Owner, Employee Injured
The community of Excelsior Springs, Missouri, is honoring the life of a shop owner who recently lost his life in a shop fire, reports KCTV 5.
A little after 1 p.m. on Oct. 16, the owner of Hart’s Auto Repair Shop had been cutting into a 55-gallon drum with a cutting torch when it exploded. Investigators say this was possibly due to flammable material inside the barrel.
Residents nearby recalled hearing a loud boom and seeing smoke. An apartment building close to the shop was evacuated while authorities arrived and got the fire under control.
Though not connected, this is the second fire erupting from an explosion within Excelsior Springs in less than three months.
One employee was also injured, though was taken to the hospital and is expected to recover.
Following the incident, automotive enthusiasts and all who knew the owner of Hart’s Auto Repair have shared what a great loss his death is for the community.
“He was all about his customers. We’re visibly shaken by it when I heard about it because he was there for his customers. He wasn’t there for himself,” said local resident Kevin O’Connell. “Everyone wanted his help; they wanted his expertise,” O’Connell said. “And he was always willing to share his knowledge and build the industry up in a positive manner.”
Shop Hero Award Winners Honored at AAPEX/SEMA
Shop-Ware, Shop Boss, Protractor, and Tire Guru announced the winners of their Shop Hero Awards, with the winners honored at AAPEX and SEMA 2024, according to a press release.
Shop Hero Award: Liz Perkins
The first of the five titles, Shop Hero recognizes a pivotal figure in the community who is advancing positive change in the industry. Liz Perkins of Level 1 Automotive in Tulsa, Oklahoma, was selected as this year’s Shop Hero. From providing tools for her team members and paying for them to attend training events, to helping compose ASE tests and sponsoring a local soccer team, Perkins has made an impact not only on her staff, but her entire community.
Customer Champion : Toole’s Garage
Customer Champion, sponsored by Shop-Ware, recognizes a Shop-Ware user who has best utilized the software to improve the customer experience. This year, the winner was Toole’s Garage of San Carlos, California.
Breakthrough Business : CFS Truck & Diesel
Breakthrough Business, sponsored by Shop Boss, spotlights the Shop Boss user with the most year- over-year growth, with CFS Truck & Diesel in Erwin, North Carolina, being this year’s winner.
Elite Entrepreneur : Stress-Free Auto Care
Protractor sponsored the Elite Entrepreneur title, which recognizes the Protractor user that has added the most new rooftops in the past 12 months. This year, the winner was Stress-Free Auto Care—whose founder and CEO recently shared the brand’s strategy for rapid acquisition with Ratchet+Wrench earlier this year.
Sales Superstar : Performance Plus Tire
Finally, the Sales Superstar title, sponsored by Tire Guru, commemorates the Tire Guru user with the strongest sales over the past 12 months. This year’s honoree was California-based Performance Plus Tire.
Recognition at AAPEX/SEMA
All five winners were recognized on Nov. 6, at an invitation-only reception at Sugarcane in the Venetian. The Shop-Ware,
Shop Boss, Protractor, and Tire Guru teams were present in the Joe’s Garage section of AAPEX, and in the Business Services section at SEMA.
“I believe I speak for the entire aftermarket industry when I say that these shops are all inspirational leaders for our business,” said Cavan Robinson, vice president of the aftermarket division of Vehlo, parent company of the sponsoring brands. “We couldn’t be more proud to highlight the positive impact they’re making on their customers, their staff, their communities, and the automotive sector as a whole.”
Meet the AAPEX 2024 Service and Repair Award Winners
AAPEX 2024 saw the announcement of this year’s Service and Repair Award winners, as shared in a press release.
The recipients were named during the first day of AAPEX at the opening keynote session.
AAPEX Shop Owner of the Year : Jeff and Shari Pheasant Jeff and Shari of A Master Mechanic in Sparks, Nevada, were selected for this title. The two have been shop owners for 20 years and oversee 14 employees, offering mentoring and training opportunities for their staff members.
“Our goal every day is to provide a place for our team to come to be inspired, to do the work they love to do and do it well,” said Shari. “To be honored for what makes us thrive as a team is one of the biggest honors we can be given.”
AAPEX Service Advisor of the Year : Samantha Schearer-Higdon
A service advisor at Schearer’s Sales & Service, Inc. in Allentown, Pennsylvania, Schearer-Higdon has worked in the role for six years now. The daughter of 2024 Ratchet+Wrench All-Star Winner Tom Schearer, she goes out of her way to mentor those new to the field and make customers happy.
“I look forward to continuing to share my knowledge with others in the future and continuing to advance the automotive aftermarket industry as a whole by changing the way we, as Service Advisors, interact and build relationships
with our clients, helping them care for and maintain their vehicles. I can’t wait to see what the future holds for myself, as well as the rest of our industry!” said Schearer-Higdon.
AAPEX
Technician of the Year :
Johnathan Bemis
Bemis is a tech at VIP Tires & Service in Bangor, Maine, and holds 12 years of experience working in the industry along with at least 26 ASE certifications.
A lead master technician, he continues to dedicate time to both in-person and online training, as well as mentoring others.
“Not being one to crave the limelight and attention, it was hard for me to want to complete the essay and put my name in the ring. However, now that I have won, I’m looking forward to this entire experience and am very excited to be part of the VIP team while in Vegas!” Bemis said. “A big thank you to my wife and family for always pushing and supporting me to achieve new career highs, and to AAPEX and VIP Tires and Service for this entire experience.”
AAPEX Showcases Positive Industry Numbers
The early-morning event hosted by AAPEX show co-owners, Bill Hanvey, Auto Care Association President and CEO and ASA President and CEO Paul McCarthy, presented promising data for the coming years.
The growing rate of EV drivers is something the industry has been facing increasingly with each year. According to the information shared at the event from U.S. Consumer Reports, hybridpowered vehicles have 149% more problems than ICE vehicles, and full electric vehicles 79% more problems. Proving that moving forward, the opportunities for shops and their market pool will grow.
These facts also support the need for electric vehicle training—one of the main focuses of AAPEX training sessions in 2024 through Joe’s Garage.
The industry currently employs 915,000 technicians across the country, while McCarthy highlighted the need for a 258,000 technicians per year, the industry still has a high and healthy demand for technicians.
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TECHNICIAN EFFICIENCY
Helping a technician achieve his or her potential can really pay off in terms of optimal efficiency, and a stronger bottom line
BY IVAN RIOJA-SCOTT
The 2024 Rathcet+Wrench Industry Survey includes the Tech Report section. In this section we ask our readers about the performance of their technicians from different measurable KPIs. As we can see from the results, efficient shops are profitable shops. As reported by survey respondents, 42% of auto repair shops hit an efficiency between 80%-100%, and 37% hit productivity in the same range. Under the hood, 58% of technicians spend between two to three hours on a repair.
FERBER’S TIRE & AUTO SERVICE
Having just opened their fifth shop in Richmond, Virginia, Ferber’s Tire & Auto Service aims to bring their standard of service to even more Virginia residents
BY KACEY FREDERICK | PHOTOS BY CHRIS BEST, MARKETING MANAGER AT FERBER
After taking over Ferber’s Tire & Auto Service from his uncle, Rob Ferber has spent the past 19 years expanding the business to new locations throughout Virginia. The company’s newest store in Richmond, Virginia, is the biggest store they’ve had yet, and has been a blank canvas for them to create a comfortable environment for both their customers and staff.
Ferber’s Chief Operating Officer Kent Von Schilling, who has been with the company for 16 years now, shared how the company has designed its shop to be both professional and practical.
A SIGN YOU CAN’T MISS
The existing building for the Richmond store was originally built in the 1970s. The brick exterior has been painted gray, and on the side of the building, a large,
blue, LED-illuminated F is mounted on a stucco surface.
Since taking over the business, blue has always been the signature color for Ferber. It looks especially spectacular in the early morning hours, or at dusk.
ULTIMATE COMFORT
With a bigger space, the business can offer more options in its waiting area than in previous stores. Across every location, Ferber places a lot of value in the presentation of its customer lounges. Von Schilling likens it to something like a doctor’s office: clean, comfortable, with amenities, and entertainment for those waiting. Creating a comfortable space for customers while they wait contributes substantially to the customer experience as a whole.
FERBER’S TIRE & AUTO SERVICE
Owner: Rob Ferber
Location: Richmond, Virginia
Staff Size: 5
Shop Size: 8,800 square feet
Number of Lifts/Bays: 10
HAVE AN OUTSTANDING SHOP?
Send a few photos and a brief description to submissions@ratchetandwrench.com and we might feature it here.
“We had a fleet customer that came in and said he didn’t want to leave. He’s like, ‘I’ll just stay here and take a nap.’ So they must be that comfortable, then,” tells Von Schilling with a laugh.
Customers enter the lounge after checking in with service advisors at the front desk. They proceed through a partition of frosted glass doors with Ferber’s signature F imprinted on them. Blue flooring and accent colors adorn the area, as well as awards the business has earned over the years.
A WELL-OILED MACHINE
Ferber’s has a total of 10 bays at its Richmond location: four bays on each wall, and two in the back.
As at Ferber’s other locations, the shop has a parts area with a dedicated employee who checks parts in, delivers them to the technicians, and essentially services the technicians with anything parts related.
Another unique aspect of the Richmond store, though, is that it’s allowed for Von Schilling, his recruiter, and marketing director to have offices, as well as a lunchroom large enough to double as a training room.
With a goal of operating around 10 stores, it won’t be long before a sixth Ferber store opens—bringing the professional, independent repair brand to even more customers in Virginia.
MEASURE, MANAGE & MASTER
A Year in Review
BY KATHLEEN CALLAHAN
Over the last year, we have seen many challenges. No year is really without them, but how we look at things often makes a giant difference. There is a quote by Tony Robbin’s, “Where focus goes, energy flows. And where energy flows, whatever you’re focusing on, grows.” I hope you will take some time this month to reflect on areas where you could focus and improve. Here are some ideas:
PERSONAL HEALTH
Taking time to care for your physical body improves everything around you. When you feel good, you are able to accomplish more and be a better leader in the world around you. A small shift like increasing your daily step count, intentionally drinking more water every day, or ensuring you get a sufficient amount of sleep can have an intensely positive effect on your overall attitude and ability to get things done.
EMOTIONAL/MENTAL HEALTH
An often-overlooked part of our health is our emotional and mental health. I am not saying you need therapy, unless you do —then go! What I mean is ensuring you take time to be mindful of all the things around you. Beginning your day by writing a gratitude list of three to five things you appreciate sets your mind toward positivity, which brings more positivity. Being mindful of how you’re feeling is important too. We aren’t all sunshine and rainbows every single day, and being aware when you’re “off” can help avoid unnecessary stress or disagreements. Other ways to work on improving your emotional or
mental health is to have a hobby. I like to create art. Some of my friends like to take walks in nature, some meditate or practice yoga, and others build legos or coach or play in local sports teams. No matter what you choose, something that gives your mind time to focus on something outside of work, politics, news, or other stressful things counts as self-care.
FINANCIAL HEALTH
I write often about ways to improve your KPIs, but I haven’t touched much on what to do once your numbers start to improve. I found great value in reading “Profit First” by Mike Micalowicz, where he gives a clear plan to pay yourself, save for taxes, and plan for profit to reinvest in your business. There are many other fantastic financial books out there to learn from, and also some wonderful podcasts that teach small steps that lead you toward financial freedom. Check out Hunt Demarest, CPA, and his podcast “Business By The Numbers.” His advice from the perspective of a dedicated automotive field is incredible and easy to understand. Focusing on your financial health seems boring to some people, but having lost 10 working days this year to hurricanerelated closures, I sure am glad I had some savings so I could make sure my staff didn’t suffer immensely with the loss of work.
I know I am not always great at keeping a focus on all of these things all the time, but I am a work in progress and focusing on small improvements in each of these areas has improved my home life and professional life. I have
become more productive, and I think am able to make a bigger impact in my community and our industry by taking care of myself. I hope you will too!
Kathleen Callahan has owned Florida’s Xpertech Auto Repair for 20 years. In 2020, she joined Repair Shop of Tomorrow as a coach to pursue her passion for developing people and creating thriving shop cultures. Callahan is the 2018 Women in Auto Care Shop Owner of the Year, nationally recognized by AAA for three consecutive years, testified for Right to Repair on Capitol Hill, and is vice chair of Women in Auto Care.
kathleencallahanfl@gmail.com
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BY IVAN RIOJA-SCOTT
Our industry first heard about the idea of bumper-to-bumper as a marketing concept developed to describe—in quite a literal way—the full coverage nature of a car warranty. The reassurance that this concept provided to the consumer allowed many manufacturers to boost sales, with the confidence that customers would not have to worry about their new vehicle’s repairs for years to come.
Applying the concept of efficiency to the shop setting can create challenges, but the proper end-to-end (or bumper-tobumper) application can have many, even unexpected, benefits. The obvious one is the bottom line, but happier employees, a smoother-run operation, and better supplier relations, are just the beginning. A good start can be focusing on the jobs you do most of, on the throughput, and on putting systems in place.
SCHEDULING
According to the 2024 Ratchet+Wrench Industry Survey, 60% of auto repair shop customers in the U.S. schedule their appointments online. Shop owners specify that younger customers not only prefer to book online, but also make the booking after regular business hours. The survey also points out that 33% of customers make their appointments using mobile devices, and that 29% of shops that use automated reminders experience a reduction in the frequency of no-shows. Choosing the correct CRM system for your shop becomes even more relevant. A proper scheduling process utilizing the correct tools will help the shop run smoother.
David Askwith, managing director of AutoStream Car Care, a multi-store company with 10 shops based out of Maryland, notes: “You have to have a CRM platform and make sure that your team is checking that throughout the day, and fully utilizing the tools these platforms offer as a way to communicate with your clients.” This becomes even more necessary when it comes to weekend scheduling requests, “over the weekend clients are putting in appointment requests when we’re not working. On Monday morning we need to be able to confirm those appointment requests or to reach out to the client and find a suitable scheduled time.”
Working with the right system and software providers and adjusting the system as much as possible to the needs of the shop will result in a more streamlined booking process. Askwith also reiterates the known idea of morning scheduling, “you want to schedule as much as you can before 10:00 in the morning. The more that you can schedule on the front load, and understand that you’re going to get these vehicles checked out ahead of time, the better you’re going to be able to manage your day.” This heavy-loaded morning
scheduling strategy will allow a shop to evaluate, in that moment, whether they can take walk-ins, afternoon appointments or just forward-schedule to another day.
RECEPTION AND DVI
The auto repair shop industry grapples with finding a balance between the car count and a high enough ARO. Increasing one of these measurements can often lead to decreasing the other, and vice versa. When it comes to car count, the emphasis should be on the speed of service. According to Askwith, “We see that speed of service is a highly pressing issue. We benchmark ourselves versus other shops, and there are shops out there in which there just isn’t that sense of urgency to get a car in and out. We aim for one hour and 10 minutes from the time the car is handed to us until it’s decided what service will be performed, and it’s in the hands of the tech for the work to begin.”
AutoStream Car Care has the advantage of having one of their ten locations generate enough volume to support hiring an estimator, who is working alongside the technician and service advisor, with the latter being the one in charge of selling.
As Askwith refers to this: “We call it the rotting banana, the longer the car is in our hands without communication with the clients, the less like you are to have a win.”
SERVICE ADVISORS AND WRITING UP ESTIMATES
Preparing the estimate, making the sale, and doing so in a timely manner is one of the main challenges of a smaller shop. Reaching a sale conversion rate equitable to the industry standard while keeping up the car count can be difficult for smaller shops. Service advisors need to be more and more independent as shops aim to operate at a higher level. When service advisors require authorization for lowering certain estimates, or other procedures, the process is slowed down, it can affect them in making the sale, and ultimately, this affects the rest of the shop’s workflow. Kathleen Callahan, owner of Xpertech Auto Repair in Englewood, Florida, has a different approach, “my service advisors and technicians work together to prepare the most accurate estimates possible.” Of course, this depends on each shop and the way in which they maximize the time of their employees. In a recent column for
Ratchet+Wrench, “Budget, Effective Labor Rate, and Cost Savings,” Callahan emphasizes the calculation of the effective labor rate as an important KPI for technician productivity and efficiency. These KPIs can sometimes be affected by their role in assisting the service manager. According to the 2024 Ratchet+Wrench Industry Survey, 42% of auto repair shops hit an efficiency rate between 80%-100%, and 37% hit productivity in the same range. According to Askwith, there’s not a single set way to approach this: “The challenge that you have is that there are different philosophies out there. Some shops are concentrating on fixing what’s broken, then coming back for a second swing to talk about safety, and lastly coming back again to talk about maintenance, and trying to forward schedule that. The way that we operate at AutoStream, and I have firm belief in this operating concept, is that we understand that the client needs to make an educated decision, and that educated decision cannot be made by piece mail. For example, If I told the client that we’re going to take care of a starter, and it’s only going to cost $750. The client agrees, and after that, when
Effective Labor Rate
Understanding your effective labor rate is very important as a measurement of the overall efficiency of your shop. By definition, the effective labor rate is the total labor dollars collected divided by the total number of labor hours that are billed in the shop. In an ideal scenario, this calculation would equal your posted hourly labor rate or more. This would mean that your shop bills 100% of the actual work hours that your technicians spend working on cars according to what your work orders state. If this number is below your hourly labor rate, it would mean that you are billing less hours than what your technicians are actually spending working on cars. Once you have this number you begin the process of evaluating where and why you are not at 100% or above. If you are above, it likely means that your technicians are very efficient, and sometimes can complete work in less time than what is estimated for them. If so, that’s a great scenario. If your calculation is below your hourly labor rate, then you know your effective labor rate is not at 100%, and you can start searching for the reason why. There are many jobs, especially the small ones, like simple oil changes, that negatively affect the effective labor rate. And at the same time, other jobs that may be the result of external factors, such as defective parts, can cause your effective labor rate to be lower if you have to repeat jobs in which you cannot bil the labor hours. Properly identifying the reason or reasons for the inefficiency can be difficult, but the corrected result will directly affect your bottom line.
we perform the DVI and find that it actually needs $5,000 worth of work, then that client may not have made the decision to spend the $750 knowing that he would need to spend an extra $4,250. We make sure the client is presented with 100% of the information.” The fact that this process takes more time is the reason why some shops may “cherry-pick” the items they present to the client, leaving them open to having undiagnosed or unreported issues.
TECHNICIAN EFFICIENCY
Efficient shops are profitable shops. As reported by survey respondents, shops that have a car count of over 300 have 51% of their AROs at over $600. Under the hood, 58% of technicians spend between two to three hours on a repair.
Some of the most efficient technicians in the industry apply simple organizational principals. As Askwith states in regard to one the most efficient at his shops: “This technician treats his work as if he were a doctor. He has every single tool, machine, and piece of equipment ready before he gets into the actual job.” But that’s just the beginning, according Askwith: “This technician walked twice as fast as any other technician in the shop, and he could bill up to 150 hours per week.” Askwith acknowledges that most of the technicians that he sees don’t operate at this level of efficiency or apply that thought process. AutoStream is not immune to the industry-wide technician shortage issue. In fact, the Marylandbased company has an apprenticeship program. “Within our apprenticeship program we have a lead technician that creates flat rate technicians for us at a very high rate. This process has to start young, and as this industry has talked about, we do need to grow our own technicians. When these technicians see what right is from the beginning, it’s easy for them to parlay that into normal process when they are on their own," says Askwith. Technicians are likely to be passionate about cars, but they too can suffer from the fatigue of working on the same vehicles, and doing the same jobs over and over again. Being able to incentivize them can help their day-to-day workload and improve overall job satisfaction. In addition, proper training, especially within the current wave of new EV and hybrids in the
42% of auto repair shops hit an efficiency rate between 80% to 100%, and 37% hit productivity in the same range.
market, is an asset to their ability to perform their jobs in a more efficient manner.
PARTS SUPPLIER(S)
The relationship with your parts supplier(s) is often overlooked in terms of efficiency. The availability of parts within a reasonable amount of time will influence both the amount of time that a car spends occupying a bay, and the space within the shop that could be occupied by another vehicle. Some shop owners have the expectation of parts delivery under 20 mintues, but that can often be impossible depending on the location of the shop. Forging a strong working partnership with part suppliers can help improve time and supply. Callhan takes an additional step in assisting Xperech’s parts suppliers to become better. She shares, on a monthly basis, her parts spend with other their other suppliers so that they can better complement their offering to Xpertech. This kind of communication transparency helps parts suppliers understand the shops core and secondary lines of business to better serve them in the future.
With a much larger operation at AutoStream, the bargaining power with suppliers is much stronger, however Askwith requests, on a monthly basis, that his managers inform him of any parts supplier issues: “Without getting too much in the weeds on our part suppliers specifically, we have we have a 1 and 1A. So because we have the 1 and the 1A, it allows us to create accountability on multiple
aspects. The first one is pricing, in which we run a quarterly analysis on ten random items. The second, also very important, is the speed of service. We want to create that accountability and make sure that we are getting parts in timely manner.
“If I have one parts source that’s delivering in 45 minutes, and another parts source that takes one hour and 15 minutes, this time split allows me to put pressure on the second source. You just have to be able to discern where the information’s coming from and what’s driving it, and if you have valid information then it’s really a partnership with your parts vendors. Whether you’re a single operator or a multi-store operator, most people are not putting enough pressure on their parts supplier. However, I do think there’s some organizations that do a nice job of partnering.” When it comes to speed of service, partnering with your supplier is a two-way road, as the benefits of being more efficient affect both parties. Askwith implements systems that make sure there’s a steady and consistent monitoring process so that they can constantly improve the partnership, and maintain accountability: “Every week I send out what our spend is with our primary and our secondary parts house, and then I encourage my team. I need to know; are there any delivery time issues? Are there availability issues? Is there anything that I need to know? And then I’m pressing that button with those relationships to make sure they’re delivering on the promise.”
STRENGTHEN YOUR LEADERSHIP MUSCLES:
10 MUST-READ BOOKS TO FUEL SUCCESS IN 2025
BY LEONA SCOTT
Kick off the new year with insight and inspiration from fellow shop owners on their top book recommendations that have helped them stay fit mentally while refining their leadership, operational excellence and customer service strategies.
As the new year approaches, many people make resolutions to hit the gym, adopt healthier routines or level up their fitness goals. But what about fitness for the mind? Just as regular workouts build physical strength, consistently challenging ourselves to read and learn can sharpen our skills. For shop owners and managers, setting time aside for personal and professional development is an investment in their business and themselves. Studies show that 85% of successful entrepreneurs attribute part of their growth to regular reading—a powerful tool to gain new perspectives, spark fresh ideas, and keep competitive.
Picking up a book is like stepping into the gym for the brain—a workout designed to improve leadership, sharpen operational skills, and enhance customer relations. This year, gain some powerful “reps” for your mind with these top recommendations from fellow industry pros.
We asked top industry leaders to share their top picks for the new year, books that promise to sharpen leadership, enhance communication, and refine shop operations.
RACHEL SPENCER
Spencer’s Auto Repair, Krum, Texas
Spencer emphasizes the power of consistency in reading. She believes reading broadens perspectives and introduces new ways to tackle business challenges, whether for a few minutes each morning or through audiobooks during commutes. Here are her recommendations:
1. “Leaders Eat Last” by Simon Sinek Sinek’s book redefines leadership by emphasizing trust and empathy. Spencer found it transformative to understand how leaders can build a safe, collaborative space for their teams, enhancing loyalty and long-term success.
2. “Dare to Lead” by Brené Brown Brown’s insights on vulnerability and courage in leadership resonated deeply with Spencer. The book has helped her navigate tough conversations and build trust, creating a more resilient and connected team environment.
J.J. MONT
JJ’s Auto Repair, Waldorf Auto Repair, Waldorf, Marryland
J.J. Mont believes in servant leadership, an approach he lives out daily by supporting his team’s growth and fostering a collaborative work environment. Here are titles that Mont would recommend:
3. “The Art of Servant Leadership” by Tony Baron
Baron’s focus on service over authority has reinforced Mont’s commitment to building a supportive and empowering culture. It’s helped him foster trust and teamwork on the shop floor, improving overall morale and performance.
4. “The Intangibles of Leadership” by Richard A. Davis
Davis’s insights on traits like authenticity and emotional intelligence struck a chord with Mont, reminding him that these qualities are vital for effective leadership. The book’s focus on intangible leadership skills has enriched his approach to teambuilding and decision-making.
PHOTO BY CYNTHIA BURTCH
PHOTO BY AUTHORIZED SHOT PHOTOGRAPHY
BRUCE HOWES
Atlantic Motorcar Center, Wiscasset, Maine
Bruce Howes takes inspiration from military discipline and ethics, finding wisdom in books that tie leadership to integrity, resilience, and teamwork. Here are some books that have influenced Howes:
5. “Extreme Ownership: How U.S. Navy SEALs Lead and Win” by Jocko Willink and Leif Babin Willink and Babin’s insights on accountability have shaped Howes’s leadership approach, reminding him that a strong team relies on collective commitment and personal responsibility.
6. “The Warrior Ethos” by Steven Pressfield Pressfield’s book, rooted in ancient warrior culture, underscores the value of mental toughness and integrity in leadership. Howes finds it a guiding light for tackling daily challenges with resilience and purpose.
ANDREW MARCOTTE
American Pride Automotive, Yorktown, Virginia
Andrew Marcotte wasn’t a natural reader but has grown to appreciate reading as a tool for personal and professional growth. He reads to broaden his perspective and strengthen connections with his team and clients. Marcotte recommends that you include these on your reading list.
7. “The Mentor Leader” by Tony Dungy Andrew admires Dungy’s coaching philosophy, which centers on influencing others through empathy and encouragement. The book’s actionable advice helps him inspire his team to be their best selves.
8. “Unreasonable Hospitality” by Will Guidara Guidara’s approach to customer service set a new standard for Marcotte’s shop. With practical tips on creating memorable experiences, it has encouraged his team to aim for world-class service at every customer interaction.
TARA TOPEL
Topel’s Service Center, Lake Mills, Wisconsin
Topel believes in setting an example of continual learning for her team. Reading helps her stay adaptable and constantly improve her operations. Topel’s recommendations include:
9. “Buy Back Your Time” by Dan Martell Martell’s book has transformed how Topel approaches task management and delegation. It’s packed with actionable tips on freeing up time to focus on what matters most, from key business initiatives to personal well-being.
10. “The E-Myth” by Michael Gerber Gerber’s classic on small business management hit home for Topel. It clarified essential processes, helping her build a solid structure that supports growth without overextension.
These 10 books offer a wealth of knowledge for any shop owner looking to make 2025 a transformative year. From enhancing leadership and refining customer service to improving communication and personal productivity, these reads provide practical advice and inspiring insights tailored to the automotive industry’s challenges and opportunities. Consider adding a few of these to your reading list and see how a few chapters a day can drive meaningful change in your shop.
PHOTO BY LEAH QUINTO
FIRE YOUR CUSTOMERS
Jobs with low AROs in full-service shops can sometimes be inefficient and stress-inducing
BY TESS OWINGS
“He was old enough to be her grandfather,” Tonnika Haynes says of the customer that was shouting at one of her service advisors.
At first, Haynes, the president of Brown’s Automotive in Chapel Hill, North Carolina, let her service advisor handle it. But, when it reached a
point where he began being verbally abusive, she stepped in.
The shop was about to close down for the July 4 holiday and had been having a difficult time getting in touch with this customer. They were finally able to connect with the customer to get him to come in
and he had forgotten his wallet. The customer, already irate that he had been interrupted at the pool, did not understand why the service advisor was not going to let him take his car before receiving payment.
Haynes stepped in–remained calm and polite–and told the cus -
BY
PHOTO
JOHN MICHAEL SIMPSON
tomer to remove his glasses. She made eye contact with him and explained to him that he had options. He could leave and return when he had his wallet, or he could call his wife and pay over the phone. She also told the customer he would need to apologize, or he would not be allowed back. The customer calmed down, called his wife, apologized and has remained a customer of Brown’s Automotive since then.
This situation is extreme, but bad or unpleasant customers are familiar to everyone within the industry. Whether it’s the customer who always turns down work, the customer who is upset about price, or a customer who expects to come in and have the work done while they’re waiting. Everyone reading this has a customer that they would like to fire. Haynes has no regrets about letting her bad customers go.
BACKSTORY:
Haynes grew up in her father’s shop and started working there full-time when she was 16 years old. Eight years ago, he retired, and she took over the reigns and has six employees that work for her.
PROBLEM:
When Haynes took over, she felt she had to say yes to everything. Customers took advantage of her and they mistook her kindness for weakness, Haynes says. After attending industry events and taking advice from people she looked up to, she learned the power of saying no.
“If I did everything that came through here, I wouldn’t have time to provide proper service for the people that want to support my business,” Haynes says.
She learned that by saying no she would make room for more yes. However, that can be hard and scary.
SOLUTION:
An angry customer can be intimidating, and it can be difficult to turn a job away. In the beginning, Haynes says she felt she needed to take every job so that she had a high car count. She then came to the re -
alization that those oil change only customers were not adding to her bottom line and only adding stress. She now prioritizes the customers that respect her as a professional, and if a customer has a problem with that, she has no problem turning them away.
There is a two-strike policy at Brown’s Automotive. Examples of strikes include yelling at staff, lying about the shop not contacting them, or deferring work and having it done elsewhere. Haynes is able to track all of this in her shop management system. She’s able to highlight her top customers green and give them priority booking, yellow for those that will have to be booked out because they have one or two strikes, and red for customers that are not welcome back.
That’s not to say Haynes doesn’t allow customers to be upset. She just doesn’t allow them to be angry at her or her staff. After all, they didn’t mess up the customer’s vehicle. They’re the ones trying to fix it.
Haynes says she always remains calm and explains her processes with the customer and tries to make sure that everyone is on the same page. She speaks with a good tone, smiles the whole time and maintains direct eye contact and explains that she understands that the customer is upset and that she is there to help. She never steers away from her processes and if a customer tries to get her to do so, she ex -
plains that maybe this isn’t the shop for them.
“If I can’t service it (the vehicle) the way I need to as a professional then I will not do it. This is not the place for you,” Haynes says.
AFTERMATH:
In the beginning, Haynes felt she needed her car count to be 20 per day. That mentality led her to saying yes to every job and a low ARO. When she learned to say no, her car count did decrease–as did her stress level–and her ARO went up. From January 1, 2021 to October 8, 2021, she saw 3,338 vehicles with an ARO of $282.32. In the same time period for 2024, she saw 2,524 vehicles and her ARO is $503.92. This represents a 34.9% increase for 2024 over 2021.
TAKEAWAY:
“All money is not good money,” Haynes says. “When that customer comes in or that phone number shows up and your blood pressure and your heart rate rise–that’s not good money.”
The toll that a bad customer takes on your body is not worth it. Haynes says you might get $500 for the job, sure, but what is it doing to your health? If a customer is stressing you out that much, it’s not worth it.
“You have to learn to say ‘no’ and get rid of headaches,” Haynes says. “The people that respect you are the ones you need to make room for.”
THE 35,000-FOOT VIEW
The Value is in the Work
BY R. “DUTCH” SILVERSTEIN
It’s widely accepted by many that change is inevitable so we might as well get used to it. The corollary to this is that while change may be inevitable, change isn’t always good. Over the last several years, I’ve noticed a change in perception of the business of auto repair, a change as to what defines success and how to achieve it, as well as the role and meaning of work. While I certainly can’t speak for every one of my generation or background, in my family work was something that gave life meaning. Being able to work was a privilege and it afforded us the ability to provide for our families. It also set an example for our children of the concepts of discipline and deferred gratification. Work made nearly everything else that is worthwhile or achievable, possible.
Author Michael Gerber penned a popular sentiment that my parents and grandparents had mentioned years before in his book “The E-Myth”, first published in 1977: “There is no such thing as undesirable work,” he continued. “There are only people who see certain kinds of work as undesirable. People who use every excuse in the world to justify why they have to do work they hate to do. People who look upon their work as a punishment for who they are and where they stand in the world, rather than as an opportunity to see themselves as they really are.” Never is this more apparent than with online comments that question the belief in the very concepts that defined success, brought prosperity, and built this nation that our generation was a part of. Online discussions of the value of work and ownership focus not on sacrifice or deferred gratification, but on work/life balance. The idea of coming in early and staying late to get the job done is anathema to many younger people who have a different concept of what work means in their daily lives. Success is defined only in monetary terms and working in the business is viewed as being undesirable. There’s a popular saying that
in order to be successful, or to consider yourself a success in business, you need to work on the business, not in it. The idea that if you don’t distance yourself from performing the work, you’ve just bought yourself a job is becoming more prevalent in the industry. Despite what some coaches may tell you in their quest to follow a franchise business model, there are many owners who really enjoy working in their businesses. They like getting to know their customers, developing relationships, and producing a quality product or service. They enjoy true accountability and the freedom and confidence it can provide. I understand that I come from a different time in which there were more people pursuing jobs than available ones. We now face a shortage of people who choose to work. Aside from a lack of drive to achieve, what I see is a profound lack of gratitude. Gratitude was an integral part of the process. This “attitude of gratitude” and freedom to shape their own destiny was in large part what drove people here to seek economic prosperity from distant lands. A key component of that prosperity was availing yourself of the opportunity to own your own business and making the sacrifices needed to increase the likelihood of its success. A frequently heard saying made by owners who put in long hours away from their families was, “I’m sacrificing today for the blessings of tomorrow.” Deferred gratification personified. Going out on your own therefore was considered a courageous act. Working in the business and having that business thrive was something to be admired. It was frequently said that if a person was happy in their work, provided for themselves and others, had roof over their head, food on their table, and some money in the bank for a rainy day, they were successful. Not so any longer. Now people want more but they don’t want to work for it, they want others to work for them so they can enjoy the leverage that the franchise business model can provide. A
recent post by a 30-something said this, “If you are involved in a business, you have four choices: Employee, Self-Employed, Business Owner, and Investor. The first two, employee and self-employed, are traps. Business owner and investor are the only way to go. That’s it.” This doesn’t bode well for our trade, the welfare of the motoring public, or our society. It’s time to restore and reinforce the dignity and value of work.
R. “Dutch” Silverstein, who earned his Accredited Automotive Manager Certificate from AMI, owns and operates A&M Auto Service, a seven bay, eight lift shop in Pineville, North Carolina. Dutch was a captain for a major airline earning type ratings in a variety of aircraft including the Boeing 767/757, 737, 200, 300 and 400 series, Airbus 319/320/321, McDonnell Douglas MD80/DC9 and Fokker FK-28 mk 4000 and 1000. After medically retiring, he transitioned his parttime auto repair business into a full-time occupation.
dutch@dutchsgarage.com
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