MWACA Magazine - May 2019 by EndeavorBusinessMedia-VehicleRepairGroup

MWACA’S SOLUTION TO RECRUITING GREAT TECHS

FIVE SECRETS TO AN IMPROVED EFFECTIVE LABOR RATE— AND HIGHER PROFITS

WHY BUILDING A SOLID CULTURE NEEDS TO BE YOUR TOP PRIORITY

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The Driving Force for Automotive Service Professionals

ACHIEVE YOUR POTENTIAL

MAGAZINE

Profit Master At Travis Troy's Iowa shop, transparency and an eye for the numbers have elevated profits.

THE KEY TO TURNING AMBITIOUS DREAMS INTO ACHIEVABLE REALITY PAGE 14

T H E OFFIC IAL P U BL IC AT ION OF

MAY 2 0 1 9

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CONTENTS

ISSUE 01 NUMBER 01

FROM THE PRESIDENT’S DESK A note from MWACA president Jerry Holcom

MWACA MOMENTS News, notes, opportunities and events of MWACA member shops

LEAD FEATURE How MWACA is helping to solve the technician shortage

MEMBER SPOTLIGHT For Travis Troy and Honest Wrenches, honesty yields success

TOP: RYAN DAMMAN; BOTTOM LEFT: COURTESY COMPLETE AUTOMOTIVE; BOTTOM RIGHT: COURTESY MARK KISER

Q&A Brian and Kim Walker share their insights for smart (and simple) digital marketing

ACTION PLAN: EFFECTIVE LABOR RATE A systematic approach is key to increase your effective labor rate

ACTION PLAN: SHOP CULTURE At Mark Kiser’s shop, culture keeps his team happy

MEMBER COLUMN James Copeland reveals how industry associations can grow your business

The driving force for today’s independent service professionals. Formerly operating as ASA-Midwest, the second largest affiliate, our leadership responded to our members’ concerns and created a regional association designed to provide new and innovative benefits, resources, and support to shop owners and managers. Visit mwaca.org to become a member today.

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FROM THE PRESIDENT’S DESK

WELCOME TO THE FIRST ISSUE OF MWACA MAGAZINE!

VP CONTENT AND EVENTS

Bryce Evans

EDITORIAL DIRECTOR

Anna Zeck

SPECIAL PROJECTS EDITOR

Jordan Wiklund

PRODUCTION ART DIRECTOR

Zach Pate

ASSOCIATE GRAPHIC DESIGNER

or MWACA.

Lily Risken

If you don’t know anything about us, I’ll give you an extremely brief summary:

PRODUCTION ASSISTANT

Our organization was formerly the Midwest affiliate of the Automotive Service

Lauren Coleman

Association. We had an idea that we could serve our members better if we were

SALES

on our own, so we set the wheels in motion and on September 14, 2018, we

VP AND PUBLISHER

Chris Messer 651.846.9462 cmesser@10missions.com

became MWACA. Shortly after we started MWACA, I met with Sheri Hamilton, our executive director, along with Chris Messer and Bryce Evans from Ratchet+Wrench, to discuss the possibility of having our own dedicated magazine. We had experience with them and we knew they published one of, if not the, top

ASSOCIATE PUBLISHER

J E R RY H O L C O M PRESIDENT

industry magazine. You are holding the results of those discussions in your hands right now. MWACA Magazine will be printed quarterly and mailed alongside that month’s Ratchet+Wrench to over 7,500 industry professionals within the Midwest. The contents of MWACA Magazine will vary from issue to issue. We will have a pre-selected main feature and a message from the MWACA president. In successive issues we will rotate through MWACA shop and member profiles, articles and commentary submitted by members, educational/training calendars, chapter meeting information, shop management tips, interviews with various instructors and speakers, and much more. And it goes without saying that you will be kept abreast of any VISION information. None of this is free, however, so we will feature advertising in the magazine that represents an opportunity for supporters to direct advertising messages to such a specific readership. Allied Members,

Ratchet+Wrench advertisers, and VISION exhibitors will get a discount on the already reasonable rates. This issue’s main topic is the shortage of qualified technicians. The shortage seems to be on a lot of people’s minds, and MWACA has already devoted time and money to finding answers. One thing we do annually is to award scholarships to deserving students and working technicians to help them continue their automotive training. In other venues I have asked for donations to our TTEF (Technicians of Tomorrow Educational Foundation) to allow us to continue or even expand our scholarships. At VISION this year, we hosted a panel discussion with some of the smartest people in the indus-

Alysia Nelson 651.846.9463 anelson@10missions.com ADVERTISING SALES MANAGER

Nathan Smock 651.846.952 nsmock@10missions.com ADVERTISING SALES

Ross Kirgiss 651.846.9485 rkirgiss@10missions.com CUSTOMER SUCCESS REPRESENTATIVE

Shayna Smith 651.846.460 ssmith@10missions.com CLIENT & SALES SERVICE SPECIALIST

Jen George 651.846.9465 jgeorge@10missions.com

MWACA LEADERSHIP PRESIDENT

Jerry Holcom jerry@ssservicecenter.com EXECUTIVE DIRECTOR

Sheri Hamilton 816.413.9800 sheri@mwaca.org MWACA ADVISORY BOARD

Tim Davison Chumbley’s Auto Care Summer Guerrero Affinity Automotive Services Ron Haugen Westside Auto Pros Mark Schlueter Schlueter’s Auto Service Sherri Stock inMOTION Auto Care Travis Troy Honest Wrenches

try discussing methods of growing and retaining our automotive workforce. Many great ideas were

10 MISSIONS MEDIA

exchanged, and hopefully you, our primary audience, left with a plan to be more involved in the growth

Jay DeWitt

of our industry. Another new MWACA benefit began in January stemming from a meeting with Sheri Hamilton, Chris Chesney with Advance Commercial/CTI Training, Kyle Holt with S/P2, and me. Chris and Kyle are making MWACA the beta site for an unbelievable mentoring/apprenticeship program that will help match students with shops that are willing to “grow their own.” When it was announced at a chapter meeting in Kansas City in February, more than half of the people present expressed an interest in participating in the program. Please keep your eyes and ears open for more information on this important endeavor. Now, sit back and enjoy the first issue of MWACA Magazine. If you have any comments or suggestions, feel free to send them to me at jerry@ssservicecenter.com.

PRESIDENT

GENERAL MANAGER AND PRODUCTION MANAGER

Mariah Straub

SALES SERVICE REPRESENTATIVE

Meghann Moore

ADMINISTRATIVE ASSISTANT

Amanda Nicklaus

MWACA HEADQUARTERS 5950 N Oak Trafficway, Suite 201 Gladstone, MO 64118 816-413-9800 mwaca.org and visionkc.com

COURTESY JERRY HOLCOM

I AM JERRY HOLCOM, PRESIDENT OF THE MIDWEST AUTO CARE ALLIANCE,

EDITORIAL

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MWACA .ORG

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ISSUE 01

MOMENTS

During the three-and-a-half day event, over

29,300 hours

VISIONâ€™S RECORDBREAKING YEAR MWACA FILE PHOTOS

DURING THE FIRST WEEKEND OF MARCH,

Kansas City was once again home to the annual VISION Hi-Tech

Training & Expo. Shop owners, technicians and vendors gathered to share industry insights, discuss the challenges and opportunities of contemporary auto repair, greet old friends and make new ones. The sprawling exhibition halls and main floor featured cutting-edge management, technical, educator, and heavy-duty training courses. VISION also featured a 60,000-square-foot exhibit hall

of training were taken by

3,500 attendees from

44 U.S. states, 7 Canadian provinces,

Australia, Brazil, Guatemala and Zimbabwe. .

showcasing the latest tools, equipment, and technology. 7

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ss e n i s u B r u O ’ s It t c e t o r to P s Your ®

Face to face, eye to eye, delivering a modern level of service.

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M WA C A M O M E N T S

UPCOMING MWACA EVENTS Highlights of upcoming MWACA events. To register or find out more information about these and other MWACA events, visit mwaca.org/events. ELECTRICAL ESSENTIALS DATE

Saturday, May 11, 2019 TIME

8 a.m.–5 p.m. CHAPTER

Des Moines LOCATION

Chumbley’s Auto Care, 110 S Jefferson, Indianola, IA This class covers electrical circuit construction and operation, as well as a thorough understanding of how volts, ohms and amps work together and can be utilized to our utmost advantage. This course will assist you in building diagnostic strategies and enhance your diagnostic abilities. Develop dynamic test procedures using non-intrusive means to rapidly and accurately diagnose vehicles today. Recommended equipment to bring for class: DVOM with good lead set, back probes, amp probe, scan tool, load device. HANDLING COMEBACKS ROUNDTABLE DATE

Tuesday, May 14, 2019

your bottom line and shop morale, all while improving the image of our industry. SCAN TOOL PROFICIENCY DATE

Tuesday, May 14, 2019 TIME

6–9:00 p.m. CHAPTER

Wichita LOCATION

TBD

This class will focus on getting the most out of your scan tool. We will show how to interpret data and which PIDs can be used to quickly and accurately determine drivability problems. We will look at scan tools for many manufacturers, including OEM models, as well as J2534 applications. Learn how and when to use Mode 6 and other information from the OBD-II generic side of your tool. The class also covers real-world case studies using real diagnostics to repair broken cars, security, programming, communication and PID display choices for quick data acquisition.

TIME

6:30–8:30 p.m. CHAPTER

St. Louis LOCATION

Jammin J’ Automotive, 10188 Page Ave, St. Louis, MO Comebacks will never go away entirely, but what if you could drastically minimize them? In this round-table meeting, we’ll discuss the numerous reasons for comebacks and the effects they have on your shop, your staff and your customers. This discussion is designed to boost

THE ART OF CHECKING IN A CUSTOMER DATE

Tuesday, May 14, 2019 TIME

6:30–8:30 p.m. CHAPTER

Central Missouri LOCATION

D. Rowe’s Restaurant, 1005 Club Village Drive, Columbia, MO This presentation dissects the process of checking in the

customer. All too often, the service writer/adviser checks in the customer using only the information the customer is prepared to provide. • Coaching your team is more efficient and effective if you are using an established system. • Learn how logically arranged questions will influence the customer to provide more information. • Define how using an established process is more efficient and will positively affect workflow and billable time SALES PLYERS & AFTER THE YES DATE

Tuesday, May 21, 2019 TIME

6:30– 9 p.m. CHAPTER

place after the customer has agreed to do the work. INDUSTRY NIGHT – SPRINGFIELD CARDINALS GAME DATE

Tuesday, June 11, 2019 TIME

5:30–8:30 p.m. CHAPTER

Springfield LOCATION

Hammons Field, 955 East Trafficway, Springfield, MO Come cheer on the Cardinals as they take on the Midland Rockhounds! Join your fellow MWACA Springfield and Joplin Members and enjoy a great evening of baseball, which includes food, non-alcoholic drinks, and a Springfield Cardinals souvenir!

Lincoln

LOCATION

inMOTION Auto Care, 131 Russword Parkway, Lincoln, NE Sales Plyers: This is a presentation describing how and why benefits and features are designed to work together. Attendees will learn how to utilize benefits, identify that the customer will buy based on the benefit and not feature, and how to create benefit statements for all recommendations. After the “Yes”: Research indicates that the cause for most customer complaints occurs after they agree to have the work completed. Most training focuses on greeting and customer commitment, but fails to emphasize the importance of what should take

LEGISLATIVE UPDATE: MO VEHICLE SAFETY INSPECTIONS Your voice is needed. Missouri automotive service professionals need to contact their legislators to oppose three bills that would repeal the current Missouri vehicle safety inspection program. Sheri Hamilton, MWACA Executive Director, testified in opposition of HB451, along with Ron Reiling with AASPMissouri; Roger Boyles and Mike Moehlenkamp, MWACA members, and Barb Kinder and Ben Steinman, both retired automotive shop owners. House Bill 451 has now been sent on to the Senate. In addition, there are two Senate Bills, 359 and 381, which have been sent to committee. For the latest updates, visit keepmissouriroadssafe.com.

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F E AT U R E

SOLVING THE TECHNICIAN SH MWACA TEAMS WITH INDUSTRY PARTNERS TO DRIVE NEW TALENT TO AUTOMOTIVE BY

J O R D A N

W I K L U N D

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E SHORTAGE 11

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F E AT U R E

virtue of simply graduating with

CHRIS CHESNEY HAS SOME THOUGHTS ON THE TECHNICIAN SHORTAGE. “Five years ago, I would have said, ‘No, just a quality tech

some minor knowledge in their field haunt job fairs, blast dimea-dozen basic resumes to online career resources such as Monster and Indeed. “It’s society’s payback for guiding everyone down one rabbit hole and pulling away from the skilled trades,” he says. “The data clearly shows that

shortage’,” he says. “The truth is there’s a people shortage. It’s not just our indus-

a decent wage doesn’t require a college degree—it requires a

try—it’s our country, our economy.” Chesney is the senior director of customer training at

Chris Chesney

skill set. We live in a time when

CARQUEST Technical Institute, a subsidiary of Advance Auto

technology is rampant and accelerating at a pace that no one

Parts. He’s an industry veteran, a board member of the National

envisioned. The skills required to design and implement that tech-

Automotive Service Task Force (NASTF) and, at the 2019 VISION

nology and also to service it just aren’t there.

Hi-Tech Training and Expo in Overland Park, Kansas, a hard guy

“It’s not due to lack of people wanting to come into the indus-

to reach. Chesney is a mover and shaker—you can see the gears

try; we have enough kids in vo-tech school today to solve the

turning above his head as he holds forth on a variety of subjects.

technician shortage, to satisfy the need. The delta is caused by

In 2019, no subject is hotter than the technician shortage.

boomers retiring and defections from the industry. The problem

Chesney believes the dearth of qualified technicians, though, is

is we eat them. We eat our young.”

indicative of a larger problem—for the past several decades all across America, many tech/vocational schools have been seen

THE MYTH OF “PAYING YOUR DUES”

as an inferior alternative to a four-year college degree. Now,

What Chesney is concerned about isn’t fearing the future but

however, ambitious young graduates who were promised jobs by

reconciling the past. Since the dawn of the Model T over 100 years

FAST FACTS

— According to the 2018 NPR story “HighPaying Trade Jobs Sit Empty, While High School Grads Line Up For University,” students with technical skills are making more than most of their four-year-degree counterparts. • Three out of 10 high school grads nationwide who go to four-year public universities haven’t earned degrees within six years. At four-year private colleges, that number is more than 1 in 5. • In the U.S. alone, over 30 million jobs earn $55,000+ that don’t require bachelor’s degrees.

• Job seekers with technical educations are more likely to be employed than their counterparts with academic credentials. States around the country have seen the data and are responding: • Iowa businesses and community colleges are working together to increase the number of “work-related learning opportunities,” including apprenticeships, job shadowing and internships. • Tennessee has reduced the cost of tuition at technical colleges to zero.

• California is spending $200 million to improve the delivery of career and technical education. • In February 2017, Gov. Rick Snyder of Michigan announced a $100 million proposal he compared to the Marshall Plan that rebuilt Europe after World War II to account for the skilled trade shortage. National Student Clearing House Research Center Georgetown Center on Education and the Workforce Hechingerrport.org Michigan.gov

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ago, most vehicles didn’t require ultra specific training in order to repair them. Technicians grew from the same starting point at the beginning of their careers, able to ply their trade on most any vehicles that came through the shop, learning as they went and eventually growing into the masters who could fix anything, opened shops of their own, maybe handed them down within the family or sold them to trusted employees. Those days are gone. Gone, too, is the idea of “earning your keep,” according to Chesney. “We used to put them on the lube rack or told them to push a

Additional Resources For more information, please visit: MWACA Apprenticeship Program mwaca.org/apprenticeship NASTF & The Road to Great Technicians nastf.org Universal Technical Institute uti.edu/programs/automotive Automotive Institute of Science and Technology automotiveinstitute.org

broom and empty the trash. You gotta earn your way to be a tech -

nician and pay your dues. This is 2019! Those old analogies and

Over time, students will have the opportunity to develop more

old ways of learning a trade was stagnant in those days,” he says.

specific skills germane to their specialty of choice, empowering

Chesney is adamant that the complexity of today’s vehicles

each and every technician to shape their future within the industry

simply cannot be reasonably taught in a two-year general program.

and becoming powerful, proficient and professional members

“You can’t even be taught to service the maintenance side of the

once hired.

vehicle in two years, yet we rely on the same two-year education model that we used 50 years ago to prepare a young person to be an

THE FUTURE IS COLLABORATIVE

automotive technician,” he says. “As a shop owner, we expect them

For Chesney, another key piece of the future is the Automotive

to do an inspection, oil change, tire service, brake job, maybe some

Institute of Science & Technology, in Colorado Springs, Colo.

suspension work—you can’t do that in a two-year environment.”

Plans are in motion to launch a groundbreaking new school and institutional model for others like it around the country in an effort

BUILDING THE SOLUTION Another solution lies within: MWACA is in the early stages of a robust apprenticeship program.

to produce educated, highly skilled technicians. Formalized by Congress several years ago, the program allows for public school districts to work in tandem with vocational commu-

Partnering with over 50 allied corporate sponsors (including

nity college and various industries to provide six years of publicly

Chesney’s employer, Advance Auto Parts/Advance Professional),

funded high school education in addition to skills-based learning and

the MWACA apprenticeship program combines the strength and

accreditation. The school in Colorado Springs already has a charter,

collected know-how of MWACA’s member shops with Carquest

an agreement with the school district, and the first students will

Technical Institute and Worldpac Training Institute (CTI-WTI).

enroll in 2020.

Together, they also count S/P2 as the third contributing organization for a triumvirate that’s as credible as it is visionary. “We’re putting that into action,” Chesney says, excited about the future he’s helping to craft.

Chesney describes an atmosphere in which students will work as teams to solve increasingly complex problems. The curriculum is being written based on contemporary projects/problems they’ll encounter during their entire tenure at the school. The first two

“[Advance] is committed to carrying the banner. We want to

years include a lab-based class of their choice, as well as lifestyle

create ‘the ask,’ I always say—that’s how you solve problems and

prerequisites teaching such skills as balancing a checkbook/bank

keep people interested, keep things moving. The best problem

account, owning a car, and more.

solvers ask the right question, find the answer, and keep asking questions.”

“We want to overhaul technical education in America,” he says. “It’s an audacious goal, and I don’t have any aspirations to remodel

Together, the group is poised to provide modern, high-tech

education, but if we can remodel automotive education and create

training and skills-based knowledge assessments programs to

a curriculum that’s meaningful, we can provide a pathway forward

the greater Kansas City metro area and grow from there. The

not only for our children, but for the entire industry.”

pilot program will provide all participating shops with a blended

He describes the NASTF synergy with the proposed educa-

learning program of classroom/hands-on training as well as online

tional model. The scope is large and the ambition vast, but it boils

mentorship and assessments to establish base competencies for

down to critical work NASTF is doing to design a framework for

its students, beginning their path to mastery of the basics.

education that meets the needs of today’s shop owner. 13

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MEMBER SPOTLIGHT

HONESTY IS THE BEST KPI FOR TRAVIS TROY AND HONEST WRENCHES, TRANSPARENCY YIELDS SUCCESS BY

J O R D A N

P H O T O S

W I K L U N D RYA N

D A M M A N

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Ultimate Transparency At Travis Troy’s Des Moines, Iowa, shop, honesty isn’t just in the name. In fact, it’s ingrained in every aspect of the shop, from how the staff interacts with customers to how Troy works with his staff.

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MEMBER SPOTLIGHT

Slam. Travis Troy’s fist hits the table. “I like to be around a bunch of mad people,” he says with a laugh. “I love this stuff. I like to open ‘em up and make ‘em smile.”

Forming a Team Travis Troy’s team is made up of a hard-working group of individuals who are highly skilled and trained.

That was spring 2011. Troy and Mullins decided to go into business for themselves, and Honest Wrenches opened its doors on May 1, 2011. “We were still in college!” Troy says. “We were in class from 8 until 11 in the morning. Then we’d run to the shop, open the windows, and make it look open. We did that until we graduated, and we also had our full-time jobs.”

Troy sat down with MWACA Magazine shortly after the publica-

Troy and Mullins continued to work full-time jobs for three more

tion announcement of at the VISION Hi-Tech Training and Expo in

years. In 2014, however, they quit. After three years of business, it

Overland Park, Kansas. As shop owners milled around the ground

was time to give Honest Wrenches their full attention.

floor bar of the Sheraton Overland Park Hotel and Convention Center, striding to and from a litany of classes, meetings, and the

FROM PIT TO PROFIT

expo floor, Troy’s eyes grew bright as he described his story.

Every day, Troy asks his employees what business they’re in.

“I am not content,” he says, smiling. “I don’t stop; I don’t sleep.”

“It’s not the car business,” he says.

Troy is the owner of Honest Wrenches, a four-bay repair shop

“We’re in the people business, and people drive cars. The car

at the crux of Interstates 35 and 80 north of Des Moines, Iowa. To

doesn’t call us— people do. The car won’t come if the people aren’t

Troy, opportunity is everywhere and everything is an opportunity.

first. So, which business are we in?”

People, most of all. “Our core values formed the name,” he says. “If we’re honest with every customer, we knew we’d be successful.” But when everything looks like an opportunity, it can be hard to know how to spend your time—especially at the beginning. “It can be a very lucrative business,” he says, “but if you don’t do things well, it can bury you.”

Like any shop owner, Troy knows the bad days come. Early in his career, he describes trying to keep all the balls in the air at once:

Sales. Red ball. Marketing. Yellow ball. Overhead. Green ball. Car count. Orange ball. Sanity. Big fat black ball. In his own words, Honest Wrenches was a ball pit at first. “I’ve learned to step away and let the balls drop,” he says.

BORN TO RUN

“I became frustrated, until I realized that it’s not my employees’

Troy met his business partner, Josh Mullins, at Des Moines Area

fault—I need to look in the mirror and blame myself. As a shop

Community College, in nearby Ankeny. They began working on

owner, you get really overwhelmed because you want to fix every-

cars together and felt they were truly a step ahead of most of their

thing right away, and that’s impossible. You have to figure out the

fellow students.

problems, get a game plan to achieve them, make a path way, and

“Every class was eight weeks long,” Troy says “and the last two weeks we were always helping everybody. It’s not natural, but we had a passion. We’d do the extra work when no one else would.”

give yourself deadlines. And then follow up.” Troy hosts two weekly team meetings—one based on the service advisors, and one functioning as a more general shop meeting. In

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HONEST WRENCHES LOCATION DES MOINES, IOWA OWNER TRAVIS TROY STAFF SIZE 8 (3 TECHS, 2 SERVICE ADVISORS, 1 CUSTOMER SERVICE COORDINATOR, 1 SHUTTLE DRIVER AND TROY) SHOP SIZE 2,400 SQUARE FEET NUMBER OF BAYS 4 AVERAGE MONTHLY CAR COUNT 150 ANNUAL REVENUE $1.5 MILLION

both settings, Troy and his team review the previous week, discuss the struggles and opportunities, and then review the processes. “We tweak,” Troy says, raising his hands above the table to grasp two invisible dials.

They all deserve to make more money. “I’ve got a passion for success, and if I can make the people around me successful, I will become successful. If you don’t have people, you don’t have money.”

“You have big dials at first, but over time those dials get smaller

Troy cites the industry’s increasingly helpful community

and smaller and smaller until you’re only fine-tuning things from

(especially among independent shops) as another cornerstone

day to day, week to week. Because now the big stuff”—slam!—“is

of his success.

behind you.”

“Somebody in MWACA helped me one day and it changed my life for the better. I only have that to give back. I can have the worst

THE FUTURE AHEAD

day ever, and if I’m helping another shop owner, that’s the best

Today, Troy cites roughly $1.5 million as his shop’s annual revenue.

thing I can do,” he says.” If we can make this industry better—

He has a solid team around him and is excited for what’s ahead.

there’s enough for everybody—I’ve done my due diligence.”

As with his customers, Troy believes honesty and transparency are how to find—and keep—the best technicians. “Technicians should work in a shop where their owners care,” he says. “I tell employees if you’re not happy here, that’s OK—I will help you. I know other owners. It allows them to be more open about their personal and professional lives, and my techs deserve that.

Troy isn’t certain what’s next for Honest Wrenches; he’s considered expansion. But more space means more balls in the air once more. “I’m a fly-by-the-seat-of-the-pants kind of guy,” he says. “I make sure I’m prepared. I’ll have a life event or a lightbulb that goes off, and it’s just”—slam!—“we’re doing it. “Then you start making a plan.” 17

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Q&A

EFFECTIVE ONLINE MARKETING STRATEGIES Navigating social media, landing pages and how to master the web BY

KIM & BRIAN

WALKER OWNERS

W I K L U N D

What are the new marketing strategies

quality content you can; that’s the goal

shop owners need to master?

of Facebook and Google as well. You will

Kim: As far as the industry overall, shop owners tend to compartmentalize their

rise above your competition. Content is always king.

SHOP MARKETING PROS

marketing to one thing, or one strategy.

HAMMOND, La.

Few campaigns are thought-out and

What are some basic strategies to turn

planned and integrated; that’s common.

web/social browsers into clients?

SHOPMARKETINGPROS.COM

Kim and Brian Walker owned and operated Peak Automotive (Apex, N.C.) for almost 10 years before selling. Now, they specialize in marketing and digital content through their company, Shop Marketing Pros. Many shops struggle with the basics of social media marketing and how much time, energy and effort to put into their integrated marketing campaign. Kim and Brian COURTESY KIM & BRIAN WALKER

J O R D A N

answered a few common questions and encouraged shops to establish a presence, be themselves, and gain more clients and revenue.

If all they’re doing is using Facebook,

K: It’s about acquiring more customers. If

they’ve just given their marketing over to

you’re on Google, they’re looking for you.

Facebook. When Facebook changes its

I type in a city and a mechanic and there

targeting and publication rules—and it

they are. On Facebook, however, you’re

happens every day—shop owners need

interjecting your business into a conver-

to be informed.

sation with family and friends. Be smart

Co-branded content is new. Facebook has to be more transparent now. Now,

about how you’re presenting it. On Google, people show up organi-

anyone can go to any Facebook page and

cally as well as on the top as ads. If I’m

see what ads are running.

paying for that ad, I want to send people

Brian: Shops need to invest more in their

directly to a landing page, for example,

own online property—their email list, for

and give them one option—an email

example. When you have your own list,

address for more info, or a number.

no one will ever take that from you—

Turning web browsers into clients comes

that’s yours. Reach your clients as you

down to capturing their information in a

want to. Posting on Facebook to a Page

permission-based way—they’re giving it

is great—and you should have one—but

to you. You’re not proactively acquiring

relying too much on it, as opposed to

it. Lead generation can be based on

creating audiences that you truly own,

implied consent.

puts you completely at the mercy of

B: But it’s also different from platform

Facebook.

to platform. Facebook ads may bring

You just want to produce the best

them to an opt-in page—a lead magnet 19

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Q&A

like a downloadable PDF in exchange for

put all your time, energy, and money

Brian, what about you?

their email, for example. From a Google

into one tactic. Smart marketers under-

First, solidify your foundational

ad, however, I’m not giving them that

stand their audience, where to reach

marketing. Get a great website that

option. They’re already searching for us,

them and how. Emphasize quality over

works on all devices. Get on social

especially in the auto world—their car

quantity, and you must use video.

and mix up your post types—don’t

is already broken. They need something

Next, be consistent in logos,

now. Give them what they need and

messaging, and voice. Be consistent

there’s nowhere else for them to go.

across the board. Be real, be authentic,

just share everyone else’s content. Make your own. To that end, create better

The text and the image on the page

be yourself. People work with whom

content. Create it often and use a

are going to be really important. Make the

they know, like and trust. Facebook,

variety of mediums (written, video,

content about the client; show empathy.

email campaigns and print ads give you

audio, graphics, and more).

Remind them gently what failure looks

a chance to be real; your shop should

like, and instead of talking about how

reflect that.

great your shop is, talk about the client.

Finally, generate leads. Take control

Be genuinely nice. Give something away once in a while. Sponsor a little league or soccer team. Host

of what you can own. Use your market-

a cookout at your shop or take

Kim, what are three top strategies for

ing to write real, valuable content and

clients to an event. People will

effective online marketing?

offer it in exchange to nurture a relation-

remember you and return when

One, use an integrated approach. Don’t

ship and capture a customer.

they need help.

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KEYS TO IMPROVING YOUR EFFECTIVE LABOR RATE

Achieving optimal effective labor rate comes down to maximizing efficiency, shop transparency and the ability to communicate as a team BY

J O R D A N

W I K L U N D

EFFECTIVE LABOR RATE IS A KEY INDICATOR for

understanding the prof-

itability of your business. The simple calculation (total labor sales

out higher than the base labor rate by paying attention to a few aspects I will describe.”

divided by total hours billed) tells you what your shop is actually

He says an effective labor rate of 100 percent is the ideal

making per billed hour. Improved efficiencies will enable more

benchmark, which can mainly be achieved by decreasing techni-

hours to be billed out in the same amount of time.

cian’s downtime, and working to speed up customer authorization

Anything you can do to increase the efficiency of your techs will increase your effective labor rate, which, in effect, will directly

of repairs, rather than simply charging more. Rupp breaks down his keys to maximizing this vital KPI.

change your bottom line without changing what the customer is

GETTY IMAGES

being charged.

FIVE WAYS TO INCREASE ELR

“Effective labor rate (ELR) is the sales numbers divided by sold

In Rupp’s eyes, the world has become a faster, more efficient

hours for a period of time, expressed in dollars per hour,” says

place, mostly by necessity and driven by technology. There is

Paul Rupp, owner of New Concept Auto Service in Overland Park,

no time to rest on our laurels.

Kansas. “A healthy, sustainable shop will have an ELR that comes

He uses an industry benchmark of 72 percent gross profit 23

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on labor, which he learned years ago from Bob O’Connor and RLO Training.

“On the other hand, if he spent nine hours completing the eight sold-hour job, he was only 88 percent efficient. The hour lost can

“We have always been right on,” he says. “A shop’s base

never be recouped,” he says. “You can see more sales dollars over a

labor rate needs to be high enough to pay competitive wages,

period of time due to high tech efficiency and a resulting higher ELR.”

yet low enough to attract the consumer. Labor inventory is how I like to look at it by shop. If a tech is available for eight hours,

According to Rupp, the following areas can be acted upon to help increase ELR:

then, ideally, he should at least flag eight hours. Scheduling

1. Systems: Well-defined and open policies and procedures

should always be viewed from the standpoint of how many sold

with an answer to almost any situation. If something new

hours there are versus who the customer is, taking into account mitigating circumstances.

crops up, simply make a policy to address it for the future 2. Staff: Having a staff that cares about each other and

“There will be exceptions. I track unfinished sold hours (USH).

wants to work together is key. Rupp holds a brief morning

The USH number is always positive; we have enough work in the

meeting to cover the schedule for the day to keep commu-

parking lot or out back, but not enough qualified help. That’s still a good problem to have.”

nication flowing. 3. Training: Rupp utilizes online relevant training through

Rupp says technician efficiency is one of the most important variables of ELR. Technician efficiency is measured by how fast

Automotive Video Institute (AVI) every Wednesday during lunch.

a tech can complete a job on the flat rate system; if the job pays

4. Facility & Equipment: Rupp’s staff cleans the floor and

eight hours and the tech completes it in seven hours, then he or

maintains equipment every Thursday morning. When a

she beat the clock and efficiency is 114 percent.

piece of equipment has reached its shelf life, he replaces it.

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Scan tools and software are the most commonly replaced/ updated gear in our shop.

Rupp says the service advisor has control and vision to many more variables in the shop than the technicians. The tech’s role is

5. Products: Rupp says his shop only purchases name-brand

to fix the car in an efficient manner, and he gets slowed down due

products, and says he relies on that personal relationship

to inefficiencies of the shop, not of purpose. Where’s the part?

with the vendors and really hold them to delivery times.

When is it due? Did the customer approve it? “The service advisor knows the answers to these questions—

Rupp says his technicians use electronic timesheets to track

or should know it—and should take these factors into account

their work. Expense time is paid time for building and equipment

for the day-to-day schedule,” he says. “It’s a real balancing act.”

maintenance, training, philanthropy, and other non-job endeavors.

Rupp cites his service advisor as top in the business, and

“It adds up each week, but is needed to keep the facility

stresses—as a team—there’s always room for improvement in

flowing smoothly,” he says.

every area and on everyone’s plate, not just the service advisors.

THE SERVICE ADVISOR COMPONENT

still don’t bust out eight hours per day sometimes because of

In Rupp’s experience, the service advisor has the biggest role in

all these little things. The best you can do is try to account

increasing ELR.

for them.”

“Inefficiencies occur; mistakes happen,” he says, “and we

“The service advisor needs to be constantly thinking, ‘What

The team at New Concept Auto Care wants to work smarter,

lift is available? What time is the appointment? When is the car

not harder. With an eye toward increasing efficiency and keeping

promised? Are we waiting on parts or customer approval? Do we

the staff happy, motivated and knowledgeable, Rupp has enabled

have the latest estimating tools?’” he says.

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SUSTAINED SHOP CULTURE LEADS TO SUSTAINED SUCCESS

For Complete Automotive, a vibrant shop culture is second to none BY

J O R D A N

W I K L U N D

TO MARK KISER, SHOP CULTURE IS A MOUNTAIN that

can only be climbed,

never conquered. “It’s about being positive,” he says. “Instead of, ‘I can’t,’ it’s,

COURTESY COMPLETE AUTOMOTIVE

‘What might I do?’ You never master that culture; continuing to work on staff buy-in is an ongoing goal.” He cites the perfect as the enemy of the good and alludes to the New England Patriots.

At Complete Automotive in Springfield, Mo., where Kiser has served as service advisor for the past three-and-a-half years, he says that shop culture is a combination of purpose, attitude, values, goals and habits. “If a person comes in with a bad mood, I want to know how I can help them to get them back on the positive-energy bus,” he says. “One person can bring down the whole energy of the

“No one here is a Patriots fan, but we use their concept quite

whole team. One negative attitude or comment can do that. When

often—they look at themselves as a family and a team,” he says.

people like what they do, they’re going to look forward to coming

“They have a system in place, and if you have the culture that

to work, doing a good job, and taking care of people.”

goes with the system, you can’t lose. This year, they only had

Last year, Complete Automotive (which pumps out 280 cars

two people on the Pro Bowl team, but they won the Super Bowl.”

per month with 11 employees and 5,000 square feet) finished as 27

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one of the top 5 places to work in the greater Springfield area,

philosophy. (Gordon was the keynote speaker at the annual VISION

and Kiser wasn’t surprised—by taking care of its customers and

Hi-Tech Training & Expo a few years ago.)

stressing deliberate, quality teamwork, the staff of Complete Automotive can fulfill its vision of good service and make a difference in the lives of its customers. “We offer the wow factor,” he says, “and I do care, we do

“We invite people to the ride; get on that bus!” he laughs. The 10 rules from Gordon’s energy bus are posted around the office. Some of the more salient rules include: • Desire, vision and focus move your bus in the right direction

care—is your family going to be safe in your car?” he says.

• Invite people on your bus and share your vision for the road

FIND INSPIRATION.

• Enthusiasm attracts more passengers and energizes them

ahead Kiser says the book The Energy Bus: 10 Rules to Fuel your

during the ride

Life, Work, and Team with Positive Energy, by Jon Gordon, is a

“Don’t be an energy vampire!” Kiser says.

major influence and active catalyst of the Complete Automotive

ANALYZE YOUR CULTURE. You might think culture begins with the philosophy of the ownerSustained Culture Equals Sustained Success Many aspects contribute to staff buy-in and culture at Complete Automotive, leading to sustained customers and long-term success. Here are a few: • Over 500 5-star reviews

ship, but Kiser knows better. “Owners can say, ‘Hey, this is our culture,’ but everyone shapes culture. It’s not top-down—it’s bottom-up,” he says. Think about it—the owner can’t be everywhere at once, if he or she is even in the shop at all. Culture exists wherever the staff treads—in the lobby or main offices, the shop floor, even the

• Today’s paper in the waiting area

bathroom. When was the last time you assessed your bathroom

• 10% discount to active military members, veterans and students

to determine if it’s delivering a message—any message—about your shop? It’s the staff who’s there day in, day out that builds the

• Quarterly training for all mechanics and service advisors to keep up with the industry

business, interacts with customers, fixes the vehicles, and locks

• Work by local artists showcased within the shop • Annual community service endeavors by shop staff

up. Sun-up to sundown, culture starts with staff. “Everyone shapes it and contributes to it,” Kiser says, “and for a team to be successful, you need everyone thinking, talking, working and behaving in sync. “And if someone comes in who doesn’t share those values, they’re not going to last very long.”

PUT THE TEAM FIRST. Kiser says that “team-first” is a mentality everyone at Complete has to have, from the service advisors to the owners to the shuttle drivers and ASE-certified master technicians. What is right for the team?

• The Energy Bus: 10 Rules to Fuel your Life, Work, and Team with Positive Energy, by Jon Gordon • The Culture Code: The Secrets of Highly Successful Groups, by Daniel Coyle • Delivering Happiness: A Path to Profits, Passion, and Purpose, by Tony Hsieh (CEO of Zappos)

“Customers won’t return if they encounter people who don’t want to be there,” he reiterates. “You can have as much strategy as you want, but if you don’t have culture, that strategy will lose every time. We always stress culture over strategy. Culture leads to people. There is no strategy worth pursuing if your doors aren’t open and customers aren’t walking through them.” Kiser doesn’t even see nearby shops as competitors. “We make do with what we have,” he says, “and what we have is pretty good!”

GOOGLE IMAGES

Recommended Reading for Improving Staff Buy-In

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BILL’S AUTO SHOP BOISE, ID

T H E F I N A L WO R D

SERVICE TO OUR INDUSTRY own areas, and our regional affiliate has the power to implement

We serve our customers every day by repairing their automo-

larger projects that can impact the entire region and help push

biles and solving their transportation problems. Most of us work

that trustworthy, professional image we work so hard to achieve.

very hard to perfect our skills at servicing our customers and

Shop owners who network at meetings can build strong rela-

their automobiles and take pride in doing this, but a little extra

tionships that will benefit all who are willing to give and receive

service can go a long way in improving our industry and our own

advice. We’ve all made missteps and breakthroughs in building

businesses through participating in our trade associations.

our businesses and can help fellow shop owners navigate difficult

I know what you’re thinking: “I don’t have time for that and

times. We are in an industry that faces many challenges in the

what difference can one person make?” The truth is that one

future and it is much less difficult moving forward as a unified

person giving just a little time makes a huge difference to our

industry working together, as opposed to working alone and

association’s overall health and brings fresh ideas and insight in

hoping it all works out for the best.

ways to improve our industry for everyone involved in auto repair.

I implore you to get involved with your local chapter and make

Attending meetings and helping to direct your local chapter’s

a difference. It has been one of the most rewarding things that I

path will bring your business the technical or management

have done in my lifetime and has had such a positive impact our

training or information that you may need now or in the

industry and my life.

future. Your inspiration through your local chapter and your regional affiliate can make a profound difference in the image

We can all find many reasons to not get involved—you just need one reason to try!

and professionalism of the auto repair industry, and represent something you might have had trouble achieving on your own but through membership is doable. Local chapters can perform

James Copeland is the owner of Midwest Autoworx, a family-

relationship-building community projects that give back to your

owned, two-shop operation in Columbia and Boonville, Mo.

COURTESY JAMES COPELAND

WE ARE ALL IN THE SERVICE INDUSTRY.

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