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What’s going on with tariffs, and how can that impact our industry
Technician efficiency, productivity, pay structures
Selling your shop may be one of the most important decisions for a comfortable retirement. Understanding and planning for this stage in your shop’s journey can lead you to achieve the maximum valuation possible and the easiest sale process.
BY IVAN RIOJA-SCOTT
Growing up around his dad’s shop ended up giving Carlos Zepeda the right ideas on what a top-quality repair business should look like
BY KACEY FREDERICK
Active listening creates engaged customers
KATHLEEN CALLAHAN
5 ways to avoid having an abandoned car in your shop
An award-winning shop owner shares how he makes employee well-being a priority
Discounting: sound strategy or bad idea?
BY IVAN RIOJA-SCOTT
The World Economic Forum identifies the first wave of modern globalization as spanning from the late 1800s to the start of World War I in 1914. After this period, the global economy entered a phase of deglobalization amidst the turmoil and destruction that followed the First World War. To shield local economic structures and industries from external, more competitive markets, a series of protective measures were implemented.
While the post-WWII era initially reversed this deglobalization trend, the period of globalization lasted only until around 1980, influenced by the Bretton Woods system. Subsequently, political changes in the U.S. and Europe, led by Ronald Reagan and Margaret Thatcher, combined with the opening of the Chinese economy, sparked a new wave of globalization. This wave of globalization was only halted by the 2008 global financial crisis.
History allows us to apply context into current events, but what is exactly deglobalization? According to the British international think tank, Chatham House, “Deglobalization is a movement towards a less connected world, characterized by powerful nation states, local solutions, and border controls rather than global institutions, treaties, and free movement.”
Over the past decade, a combination of public and private sector actions has fueled a growing deglobalization trend across various economic sectors. Governments have implemented protectionist tariff policies, while businesses have pushed initiatives to bolster local economies of scale. Together, these measures have cultivated a stronger social preference for domestic products.
The recent tariff imposition only reinforces the trend that’s been happen-
ing for the past decade—even if we really weren’t paying attention to it. For our sector it can mean a lot of change, and it’s up to each party involved to determine whether that change is good or bad, and analyze what opportunities can come from that change. Let’s not forget that regulatory measures that are implemented on a broad-based scale, with little or no room for exceptions, will almost always create uncertainty in the market. And when uncertainty is the predominant feeling within the business community, it will generally lead to halt imposed by an abundance of precautions. The question is, can we afford to sit still and wait to see what happens?
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The recent 25% tariff on foreign cars and auto parts can have a significant impact on the auto repair industry
BY KACEY FREDERICK
Since the beginning of the U.S. presidential election last year, there has been endless discussion over tariffs proposed during Donald Trump’s 2024 campaign. His administration has outlined plans to implement tariffs on China, Canada, Mexico, and other countries—though these plans have rapidly changed with each week as different industry sectors voice various concerns.
In the meantime, the automotive industry has anxiously waited to see what will happen. While there would be
obvious impacts to automotive manufacturing, many experts believe there will be ripple effects that independent repair shops will feel.
Here’s a concise breakdown of what the current state of tariffs is looking like, and—if implemented—what it will look like for repair shops across the country.
According to the Associated Press’ reporting, before Trump took office, he released plans for a 25% tariff on Canada and Mex-
ico to be enforced via an executive order once he took office. On Jan. 20, 2025, he said that a 25% tariff on Canada and Mexico would take effect on Feb. 1.
February saw a lot of shifts and changes in tariff news. On Feb. 1, the President signed an executive order for an additional 10% tariff on Chinese imports, and a 25% tariff on imports from Mexico and Canada, effective Feb. 4.
However, two days later, the administration declared a 30-day pause on the proposed tariffs for Mexico and Canada,
while the tariffs on China went into effect on Feb 4.
The following week, the White House then announces plans to tax all steel imports at a minimum of 25%, as well as raising tariffs on aluminum from 10% to 25%, with Trump stating later that week that tariffs on countries such as India could be possible, as well.
Fast-forward into March: it’s been 30 days, and the tariffs on Canada and Mexico have officially taken effect. The government also increased tariffs on Chinese imports to 20%. But, the next day, the White House said that automakers will be exempt from the Mexico and Canada tariffs for one month.
On March 12, tariffs on steel and aluminum imports rose to 25%. Nearly two weeks later, on March 24, it was then announced that new tariffs would be imposed on Venezuela, and that imports from any country buying oil or gas from Venezuela will be subject to a 25% tariff— though this is still pending, according to data from the Auto Care Association.
On March 26, AP reported that the
White House would impose a 25% tariff on auto imports. It covers imports from all countries, with exceptions for U.S.-content under USMCA. Products that will be impacted by the tariff include passenger vehicles such as sedans, SUVs, crossovers, minivans, and cargo vans; light trucks; and auto parts such as engines, transmissions, powertrain parts, and electrical components.
Tariffs on passenger vehicles and light trucks took effect on April 3. An exact date has yet to be announced for auto parts, but tariffs will kick in for them no later than May 3. Implementing such tariffs is an effort to boost domestic manufacturing, but it’s left auto manufacturers scrambling to work around an established global supply chain. In just the past couple months, industries have been unsure of whether tariffs would happen, but with the current administration moving forward with implementing them, it raises one important question many shop owners have: how will these tariffs impact my operations, if at all? It’s impossible to know with certainty what any outcome
may be, but many analysts and industry experts have shared how automotive repair is likely to be impacted.
Experts predict that tariffs will increase prices of new vehicles, leading consumers to keep their existing vehicles longer, a Fortune report this month explains. “U.S. consumers will likely hold on to their existing cars for longer, and may switch to buying used cars, so used-car prices will rise,” says Paul Donovan, chief economist at UBS Global Wealth Management.
Steve Birkett, consumer advocate and EV specialist from FindTheBestCarPrice.com, told Fortune that both vehicle replacement costs and repair expenses would increase because of tariffs.
Indeed, a substantially lower number of automotive parts are compliant with the United States-Mexico-Canada Agreement, making suppliers more susceptible to being hit by tariffs, per a report from CNBC.
Collin Shaw, president of the MEMA
Original Equipment Suppliers association, affirmed this to CNBC, adding that the current supply chain lacks the profitability to absorb tariffs. Earlier this month, a survey conducted by MEMA found that 97% of smaller suppliers were concerned with the potential financial impacts of tariffs.
While the automotive supply chain has proven to be resilient, Shaw noted that abrupt policy changes are a big vulnerability for the industry. “What I’d say is very difficult, is the whipsaw back and forth. The notion that we can very easily bring these things back—it can be done. It takes time though,” says Shaw.
An increase in the price of parts would, naturally, lead to the cost of auto repairs rising, as Edmunds analyst Jessica Caldwell recently told Reuters. “Many vehicle parts are sourced globally, which would increase repair costs for car owners, and reconditioning costs for dealers,” says Caldwell.
Some members of the auto care industry have spoken out on how their businesses will be affected, too.
In February, ABR Houston put a press release out to inform its customers of how the tariffs could potentially impact operations. The company’s sentiments echoed that of most analysts, which is that the price of parts could inflate, and availability of parts may decline. Being a shop that specializes in European vehicles, businesses like ABR Houston are especially impacted by the tariffs.
The Auto Care Association has been a sounding alarm for what the tariffs could potentially bring, and has done a great job breaking down what the repair industry can expect. The organization stated that upfront tariff costs will impose significant financial strain on businesses. For small and medium-sized businesses, ACA warned this may lead to cash flow challenges, delayed payments, reduced capacity and inventory, and potentially having to scale back operations.
ACA has a list of the top product categories imported from Mexico, which includes certain ignition wire sets, seat parts, brake systems and components, gearboxes, catalytic converters, suspen-
sion shock absorbers and parts, sparkignition reciprocating piston engines, and automotive air conditioning parts.
Top product categories imported from Canada are certain spark-ignition reciprocating piston engines, gearbox parts, suspension system parts, and clutch parts.
With cost of repair already being the top roadblock to consumers seeking automotive service, according to the 2025 Auto Care Factbook, a potential 25% to 100% increase in parts will likely result in more drivers postponing necessary service as well, ACA has noted.
Shop owners such as Sam Darwich, owner of Northwestern Auto Repair in Farmington Hills, Michigan, have agreed with this. Darwich told WXYZTV Channel 7 that parts in most vehicles he works on come from either China or Mexico, and is concerned that higher prices on those components will lead to problems being ignored. “You hear a squeak or squeal, (you say) OK you know what, I do need brakes, but I’m gonna push it another week or two,” says Darwich.
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Despite dealership service departments maintaining satisfaction levels, the latest J.D. Power 2025 U.S. Customer Service Index Study highlighted areas where dealers are struggling with their customers, as shared in a recent press release.
Appointment wait times have continued to be an issue with dealers, with the average number of days that customers must wait for an appointment being longer than what was tracked from 2018 to 2022, and is only marginally better than 2023 and 2024.
Owners of electrified vehicles also continue to have lower satisfaction rates than owners of internal combustion engine vehicles, with satisfaction (on a 1,000-point scale) among mass market BEV owners being 51 points lower than their ICE-driving counterparts. A lack of EV-trained technicians has played a key role in this, noted J.D. Power.
Twelve percent of repairs performed at dealerships were incorrectly done on the first visit, with 30% of customers finding the problem unresolved and 28% facing unavailable parts. Only 50% of customers said they did or would return to the dealer after receiving incorrect repairs. Five percent of those customers had the issue resolved by an aftermarket service facility.
Additionally, the study found that customers’ satisfaction improves when recall notices are addressed during routine maintenance visits, such as an oil change.
Of the 10 most important key performance indicators measured by J.D. Power, four of them center on communication: completely focusing on customer needs; keeping the customer informed of service status; contacting the customer after service to ensure satisfaction; and service advisor immediately meeting with customer upon arrival. The latter is something dealership service departments have been lacking in, with customers being greeted upon arrival only half of the time.
An increased level of trust in dealership departments was displayed by those in the boomer generation, with younger generations being progressively less trustful, especially Gen Z.
“While it’s no surprise that customers
gravitate to operations that serve them well, the study clearly shows that good service leads to loyal customers,” said John Tenerovich, director of automotive retail at J.D. Power. “This phenomenon proves true across all service types—oil changes, repair, tires and brakes. While complimentary maintenance programs drive strong retention, the level of intent to return for actual customer-paid service depends on the service experience delivered by the dealer.”
Advance Auto Parts is restructuring its supply chain system in an effort to bounce back from lackluster sales, reports The Wall Street Journal.
To offer a wide array of parts that can get where they need to be quickly, Advance is transitioning to a system that will have goods delivered from distribution centers, to regional market hubs, and finally to traditional stores.
This decision came from studying Advance’s competitors, and finding they were able to deliver parts more efficiently using similar models.
“This market-hub node helps solve for that,” said Chief Executive Shane O’Kelly. “What it introduces is about 85,000 parts that are available to a store, and hence a customer, inside of the same day.”
With 19 market hubs currently in the U.S., Advance plans to expand that number by 10 this year, and to have a total of 60 hubs by mid-2027.
This transition has also involved the consolidation of warehouses and store closures. Since O’Kelly started with Advance in 2023, the company has closed 10 of 38 U.S. distribution centers, and will close another 12 this year. Advance plans to have a total of 12 warehouses nationwide by the end of 2026.
Additionally, about 500 corporate stores and 200 independently owned locations were expected to have closed by the end of last month.
Rather than stock stores based on what has sold in the past, Advance is restructuring its assortment-planning process to prioritize items likely to be in demand in a particular region. If a given area has a proportionally large number of truck owners, a local Advance store will likely have more parts specific to trucks.
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BY IVAN RIOJA-SCOTT
The Ratchet+Wrench Industry Survey found a clear correlation between technician pay structure and efficiency/ productivity. Hourly pay is the most common approach (27%), followed by hourly plus commission (22%). Only 3% of technicians receive a salary plus commission.
The data shows that 43% of flatrate and salaried technicians achieve efficiency rates over 100%, compared
to a significant decrease for hourly and hourly-plus-commission structures. However, the highest productivity over 100% is seen in flat-rate and salary-pluscommission technicians, at 29% each.
The survey results suggest that the type of technician pay structure impacts their efficiency and productivity levels. Flat-rate and salary-plus-commission arrangements appear to yield the best results.
Some of the other forms of remuneration that were reported in the Ratchet+Wrench Industry Survey were: flat rate plus guarantee, flat rate plus bonuses, multilevel flat rate, hourly plus bonus, and flagged hours.
Mango Automotive has grown from scratch into a seven-store company with an eight-figure revenue
BY KACEY FREDERICK
First opened in Albuquerque, New Mexico, by Jesse Jackson and Brian Walden, Mango Automotive now operates seven different locations throughout New Mexico and Arizona. Since it began, the brand has always had a clean, modern, yet colorful and welcoming design that is found in every building.
The shop’s first store in Albuquerque at 9620 Eagle Ranch Rd. NW has set the standard for all the Mango stores that have come after it. When customers first walk in, they often do a double take, wondering if they entered an auto shop or a salon.
Send a few photos and a brief description to submissions@ratchetandwrench.com and we might feature it here.
Owner: Jesse Jackson & Brian Walden
Locations: New Mexico & Arizona
Total Locations: 7 Annual Revenue: Over $10M
A pink wall greets customers upon entering the shop, along with a coffee bar, fridge, and plants throughout the area. It instantly creates a warm, comfortable feeling that Jackson and her crew call “the pink wall effect.” For that reason, the pink wall is a key characteristic found in every shop.
Past the service advisor’s desk, the waiting area features a mango themed wallpaper and mid-century furniture, with essential oil diffusers and soft music playing. Jackson collaborated with a close friend and commercial designer to formulate the shop’s vibe.
“We try to create a space that is welcoming to all humans. And we try to contrast the traditional automotive repair shop, where you might walk in, find a pot of burnt coffee, a 10-year-old Sports Illustrated sitting on the coffee table, and grease stains on the seats. So, we’ve come away from that and focus more on being a spa-like experience,” describes Jackson.
One of the most iconic aspects of Mango Automotive is Mia, the brand’s mascot. A little mango character, she
was named by Jackson’s daughter, and can be found on various merchandise like keychains. A plushie Mia often inhabits the lobby for kids to play with.
“She’s very personified, and we think of her as a piece of our brand,” says Jackson.
To maintain a clean, comfortable shop area, Mango regularly conducts back of house cleanups on weekends, where the crew moves all the equipment, scrubs the walls and floors, and even applies a fresh coat of paint.
Mango has also worked to ensure its technicians feel comfortable, with changing rooms and restrooms available to men and women. With an emphasis on having men and women on both sides of the counter, ensuring everyone feels welcome as an employee is crucial.
“We were looking to elevate the customer experience in automotive repair and bring equality into the space by putting men and women on both sides of the counter,” says Jackson.
BY KATHLEEN CALLAHAN
In keeping with our theme of improving and delivering exceptional service and how small changes will build deeper relationships with our clients, I unexpectedly fell down a rabbit hole when researching the word tone; more on that later.
The first interaction we have with our clients is listening to them explain why they have come to us–whether it is a scheduled service or an unexpected issue. This means the first thing we all need to focus on improving (and it is a constant improvement, not something anyone ever completely masters), is active listening. In a nutshell, it is giving a client your undivided attention, understanding their needs, providing feedback, and deferring judgment. Whether in-person or over the phone, these key elements are critical to actively listening, and the benefits are improved client satisfaction, enhanced relationships, and a reduction in misunderstanding and conflict. This allows your technicians to have better information to solve issues more effectively. We talked last month about always smiling while on the phone, and here are some other basics:
• Pay attention:
Multi-tasking is off-limits when interacting with clients. You are not paying attention if you are doing three things while they are talking.
• Make eye contact: Looking people in the eye is one of the most essential elements in making someone feel like you are hearing them.
• Use verbal and non-verbal cues to show you are engaged in the conversation: Nodding, body language, and eye contact are critical elements.
• Ask clarifying questions: Ensure you are capturing what they are trying to explain to you. Feel free
to email me and ask for my easily printable noise sheet; you can laminate it and hand it to a client when they have trouble articulating a specific noise. This form is also helpful for clarity within your shop and consistency across job functions.
• Paraphrase and summarize: Reading your summary back to the client ensures you truly understood what they were explaining and assures them that you will communicate their concern to your team and that you care about solving any challenges for them.
• Avoid using industry jargon or acronyms: While you know what you are talking about, using phrases that your clients may not know will only alienate them. My friend Carm Capriotto has a great resource for shifting our industry vocabulary by using words like testing instead of diagnostic, vehicle performance inspection versus DVI, and service rate over labor rate.
• Empathize and validate: Conveying that you understand someone’s frustration surrounding challenges helps a client feel more comfortable and at ease. This one is sometimes tough, especially when something as simple as a flat tire feels like the end of the world to the client. We have no idea what else is going on in people’s lives, and a simple bulb being out could be the one thing that sends them over their tolerance edge.
• Defer judgment: We have all heard it in our shops, “That person is an idiot!” Please remove this junk from your vocabulary. People can feel it when you are speaking to them (even over the phone).
That leads us to the next step in delivering exceptional service–how we communicate, more specifically our tone. But this was a lot, so let’s take some time to digest all of it, and we’ll discuss our communication and tone next month.
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
BY IVAN RIOJA-SCOTT
Auto shop owners may decide to sell their businesses for various reasons, such as a lack of a generational successor, the prospect of retirement, or the intention to capitalize on their years of hard work through a future sale. While selling one’s shop can provide a path to a comfortable retirement, it requires careful planning and executing the right steps at the right time. Unfortunately, the decision to sell often comes unexpectedly, and not all owners have a well-defined succession plan in place.
Chris Garman, VP of business development for Sun Auto Tire and Service, has extensive experience in the auto repair merger and acquisition sector. In 2001, he sold his family’s shop, which had been in operation for 89 years across nine locations and three generations. When Garman and his business partner/uncle decided to sell their shop to what is now Sun Tire Auto and Service, they faced many of the challenges that he now advises on from the buy-side. Sun Auto Tire and Service has recently surpassed 500 stores, making it one of the largest auto repair group companies in the country.
Attractive businesses are those which operate independently, with owners that work on the business instead of in the business. “We seek a business we can acquire and immediately oversee without needing to replace the manager, front office staff or broader team. The team’s capability to operate independently of the owners is a critical consideration,” says Garman.
The financial side is the most crucial factor when preparing a business for sale. Industry experts emphasize removing any personal expenses linked to the business, identifying assets that won’t transfer, and developing a structured debt plan, if applicable. Many shop owners seek financial and business experts to assist in this multi-year process. While a solid financial history isn’t the sole determinant, it demonstrates continued performance to potential buyers.
Finding the right buyer is intrinsically
linked to the goal of business ownership. What is the potential buyer planning to do with your people and your team? What are their plans for your brand? These might seem like decisions that lie only in the hands of the buyer, but for many shop owners, the future of their employees is almost more important than their own, and finding a buyer that will maintain that well-being into the future becomes more relevant.
“There are many potential buyers for your business beyond just strategic acquirers. In addition to larger companies, you may find interest from managers, family members, or smaller consolidators operating in your market,” says Garman.
Identifying the right type of buyer is relevant for the future of your shop. While securing a buyer with the appropriate financial resources, transition plan, and potential leaseback arrangements (if you own the building) is important, understanding what each buyer brings to the table is essential.
As Garman states: “If you can’t identify a strategic buyer, that doesn’t mean you won’t be able to find another suitable purchaser—there is a wide pool of people looking to buy businesses today.”
The valuation of your shop typically starts at three times the profit margin but can increase based on several key factors.
Larger shops, multi-store operations, more service bays, higher per-bay billing, and stronger profit margins often lead to higher valuations as a non-linear multiple of the initial metric.
“The business’s location and physical structure are important topics to address. What does the facility look like, and where is it situated?” says Garman. When his team analyzes potential acquisitions for Sun Auto Tire and Service, they take a strategic approach to ensure that shops fit within the territorial and market strategy. This is the case for strategic buyers, which may not align with the objective of other types of buyers.
“Customers typically seek good customer service, high-quality management, a strong reputation, and a reputable brand when choosing a company. Ultimately, these key factors are essential considerations for determining a shop’s value,” says Garman.
The value a buyer is willing to pay can vary greatly based on these factors, even if several potential buyers are in the same market competing for the same acquisition target. A buyer with a stronger strategic fit may be willing to pay more than a buyer for who’s looking for a specific shop as a market entry.
Owners in the best position to sell are those who own the property their business occupies. Ideally, they can lease
the property to the new owner. When a shop’s valuation ratios are three times its profit or higher, owning the property can significantly increase the business’s value.
While owning real estate may be desirable for some shop owners, leasing with long-term contracts may be a more viable option if the costs of both real estate and business operations are prohibitive, as they are in parts of the country. This approach allows owners to focus on growing their enterprise without the financial burden of property ownership. Garman highlights that property control over an extended period signals stability and community trust in the business.
A poorly maintained property can be detrimental to closing a deal, as it may represent a substantial investment for the buyer and deter them. Conversely, a wellkept property is a valuable asset. Many multi-store operators include purchase options in their leases. If you plan to sell your shop in the future, securing the option to buy the underlying property can help you command your desired price.
Private equity-backed buyers often have more capacity to purchase the property along with the business, if this is what the seller wants. But it’s important to choose the right tenant in case a leaseback is going to be the desired option for the property.
“If you want a long-term lease you will prefer a tenant with a strong credit history and national presence. A national tenant like Sun Auto Tire and Service could add value to your real estate,” says Garman
The purchase price is a critical factor for everyone involved. However, if shop owners are willing to consider alternative financing options, such as accepting seller notes or carrying a portion of the note for someone who cannot pay cash at closing, or needs to finance the transaction, this can raise the valuation.
To evaluate a potential acquisition, Garman’s team will often send secret shoppers to stores who will assess the team and their customer service skills. “They look for the little things that shop owners are encouraged to focus on, knowing that attentive staff who take care of customers is a key indicator of the business’s success,” says Garman.
“We base our purchase prices on the profitability of the business. However, the people at the counter are what drive in the customers, they’re the ones the customers come in and see. If you have a well-run shop, you are likely to have good people working there. The staff and the business’s reputation go hand in hand.”
A good online reputation often stems from having quality staff who provide excellent customer service. They greet customers, address their needs, and ensure they leave satisfied. That customer care is crucial, as it translates to good sales and repeat business—the ultimate goal.
The owner’s level of involvement and the extent of family participation in the business can be detrimental to the valuation of the shop. Many buyers wish to make a clean break in the ownership, which can be complicated if family members will remain in the business after the sale. The strength of the management team is another key factor that will impact the valuation.
“Generally, we view positively a business with strong financial performance, a focus on customer service, limited owner/family involvement, and a capable leadership team,” says Garman.
For a shop owner who’s thinking about selling their business, it will likely take them at least a year’s time to prepare. The first step is to get the financials in good shape. “Get your financials in order, going back several years, so a potential buyer can see a three-to-five-year history of your business’s performance,” says Garman. This may be the process that takes the longest since many buyers will be looking for several years of performance history.
If you’re involved in the day-to-day operations, you’ll need to be able to transition yourself out of the business. Strategic buyers will want to see that you haven’t been uninvolved for just a brief period, but rather for at least 12 months. In the case of private buyers, this could be less relevant, but that depends on the level of involvement that they plan to have going forward. This demonstrates you can recreate the company’s financial success without being the one running the show. “Preparing your business in this way is crucial
“If you haven’t given any thought to selling your business, you’re probably a good 12 months from being prepared to sell.”
— Chris Garman, VP of buiness development for Sun Auto and Tire
when it comes time to sell,” says Garman.
Building a strong automotive repair brand is key to succeeding in the industry. The strength of said brand can be helpful when it comes to selling your shop, but it can often depend on the buyer whether that brand is kept alive or merged into another brand.
“From Sun’s perspective, we’re buying great businesses and have no intention of destroying value. When a strong brand in a good market is available, we’re happy to operate it,” says Garman.
Sun Auto Tire and Service currently operates over 40 different brands across the country. When they decide whether to change a brand, the key question is the strategic value of that brand for the company in that market. If they already own
and operate a brand with higher strategic value in that market, they will likely change the acquired brand and keep our existing one.
Smaller private buyers may choose to retain the existing brand, recognizing that the value and reputation within the community outweigh the benefits of rebranding. Conversely, buyers expanding on a store-by-store basis may opt to replace the brand with their own. In contrast, multi-store brands like Mango Automotive or AutoStream Car Care follow a unified branding strategy, implementing their own brand across all acquired locations.
As Garman notes, “Consumers care less about a brand’s overall image and more about the people behind the counter. Customers often return because of the employees, not the brand itself.”
The generational transition can be challenging but rewarding at the same time
BY KACEY FREDERICK
Asa young child, Carlos Zepeda came to the U.S. from Mexico with his family, where his father, Ramon, founded none other than Zepeda Auto Service. Over 30 years later, the business is thriving in Chicago, now guided by Zepeda himself.
Though he didn’t initially see himself entering the industry as a young child, as he grew more ambitious in adolescence, Zepeda began wanting to enter the field for himself and make improvements he knew the shop would benefit from. After receiving professional automotive training, he managed to transition the shop from antiquated practices, training its technicians to perform more electrical jobs and introducing services like digital vehicle inspections.
Zepeda sat down to share what it is about the auto repair industry that has drawn him in, and how he’s taken the business his father built and prepared it for modern, computerized vehicles.
In the 1980s, when Zepeda was only 6-years-old, his father opened his first shop out of a back alley store. In his home country, Zepeda's father worked as an industrial mechanic and had experience in vehicle repair. As a kid, Zepeda spent much of his time hanging out in his dad’s shop. Having an interest in art, he considered becoming an architect once he grew up. But in high school, the more time he spent in the shop, the more he began innovating ways for it to improve.
“As I got involved more, as I was growing up, I kind of saw the potential and also saw the struggles,” recalls Zepeda. “I was like, ‘I want to help out.’ So, I got involved.”
This motivated Zepeda to enroll in an automotive training program at Lincoln Tech immediately after graduating from high school. Upon his return in the mid2000s, Zepeda’s father began to incorporate him into his duties as the owner, giving him an opportunity to transition into that role and eventually take over.
Zepeda realized there was much around the shop that could be updated. He had a new computer brought in for keeping track of parts and labor, and implemented improvements to how they calculated their labor rates.
The shop’s technicians were not yet trained to perform electrical work such as diagnostic calibrations, so Zepeda began attending seminars, classes, and whatever resources he could find to help him prepare his team as he slowly began incorporating services like digital vehicle inspections into his family’s shop.
Some of the older technicians left during the transition, leading to Zepeda and his father helping in the shop more. It was difficult for a bit, but necessary to grow the shop’s capabilities. They rebuilt their team, and hopes were on the horizon for a second location potentially opening soon.
The shop’s biggest challenge came in 2008, when an investment by the family fell through during the global financial crisis. As the shop continued to improve its equipment, the Zepedas suddenly found themselves having to find a new space to operate out of.
Their plans to launch a second location would be postponed another eight years as they worked to recover—but, as always in tough situations, Zepeda managed to keep a level head and make a plan forward.
“At the time, in 2008, the struggles that we went through—I remember telling my father: ‘They took the hard work that we built, but they couldn’t take our hands, our feet, or our brain,’” tells Zepeda. “I got my hands, I got my feet, I got my brain. Let’s make it happen.”
For Zepeda, it’s crucial that he views times like that as a lesson that can be learned from; a philosophy that’s only helped him become a more capable business owner.
“Yeah, it was a hard time,” adds Zepeda. “Sometimes you want to say all these negative words, but it doesn’t matter. At the end, what matters is how are you going to resolve it? How are you going to take this? Are you going to dwell on this? Or are you going to turn that negative into a positive, learn from that and hope that you don’t make the same mistake again?” Though he is officially retired, Zepeda’s father—referred to as patrón, or “boss” by the team—still comes in the shop, helping out around the place as if nothing’s changed; except that he’s taking it a little easier these days, deservedly so.
“The day we don’t see him, it’s like, ‘Where he’s at, what is he doing?’” says Zepeda.
For Zepeda, he is motivated to build on what his father established and maintain his family name’s legacy.
“Whatever motivates you to move forward with good intentions, don’t stop pursuing them, but don’t forget your beginnings, especially. Don’t forget your people. Without our people, we can’t do anything.” reminds Zepeda. “Whatever inspires you, just keep doing it—and just be happy. I mean, at the end of the day, I think that we’re just borrowing a little bit of time from this world and this life. So make the best out of it.”
Implementing some simple measures can help offset the costs and time investing in dealing with abandoned cars
BY LEONA SCOTT
It’s an unfortunate reality in the auto care industry: A customer brings their car in for repairs, and when the job is done, they disappear. No calls, no emails, no payments. Abandoned vehicles take up valuable space in a facility and can create financial and legal headaches for shop owners. While state laws vary, here are five practical ways to avoid–or at least manage–the problem of abandoned vehicles in your repair shop.
1. Set clear payment expectations upfront
Sergey Beihul, owner of EProGarage in St. Peters, Missouri, has learned through experience that requiring deposits from new customers can help prevent abandonment. “If the repair is over $500, we ask for a deposit,” he says. “The amount depends on the shop and the owner’s preference, but it helps ensure commitment.”
Summer Guerrero, co-owner of Affinity Automotive Services in Wichita, Kansas, follows a similar approach. “If something
doesn’t seem right with a customer, it probably isn’t,” she says. To avoid complications, she recommends having customers prepay for repairs whenever possible, especially for first-time visitors.
2. Maintain thorough documentation
A well-documented intake process can protect your shop in the event of an abandoned vehicle. Guerrero emphasizes taking detailed notes at every step. “We log everything–time, date stamps, and all communication attempts,” she says. Keeping track of correspondence ensures you have the necessary records to proceed with legal options if a car is left behind.
3. Establish a communication and fee structure
Frequent communication keeps customers engaged and aware of their vehicle’s status. At Affinity Automotive Services, Guerrero and her team reach out to customers by the
third day of non-payment. “We tell them about storage fees, which vary by state,” she explains. “The fees can wake them up, because they add up quickly.”
Shop owners should check their state’s regulations regarding storage fees and notify customers early on about any accumulating charges. Many shops set a structured timeline, such as contacting customers weekly and flagging unpaid jobs in their system at 30 days (yellow alert) and 60 days (red alert).
4. Understand your legal options: Mechanic’s liens vs. lien sales
When a vehicle remains unclaimed, shops often turn to a mechanic’s lien or a lien sale to recoup their losses.
• Mechanic’s lien: According to LegalClarity.com, mechanic’s liens are a legal tool that allows service providers to secure payment for labor and materials. The shop can place a lien on
the vehicle until the repair bill is paid, but this does not guarantee immediate payment.
• Lien sale: This process transfers vehicle ownership to the shop, allowing them to sell it to recover costs. Guerrero warns that while this is an option, the process is time-consuming and requires compliance with state laws.
“Dealing with the Department of Revenue, the DMV, and the Highway Patrol takes time,” she says. “It’s not always worth it unless the vehicle has resale value.”
Beihul has had cars abandoned for months and has taken losses on them. “You can tow the car to a salvage yard and just be out the tow fee,” he says. “Or you can go through the legal steps to claim and resell it.”
5. Turn abandoned vehicles into an opportunity
For some shops, abandoned cars present a creative opportunity. Guerrero has used lien-sale vehicles as loaner cars for her shop. Other shops fix and resell them if they can
obtain the title legally. However, these options require careful planning to avoid tax implications and additional expenses. Additionally, regularly auditing invoices and ensuring service advisors close out jobs promptly can help prevent vehicles from slipping through the cracks. “Accountability is key,” Guerrero says. “If a service advisor doesn’t follow up, it affects their commission and pay plan.”
While abandoned vehicles are a frustrating reality for many shop owners, having
a structured approach to payment policies, documentation, communication, and legal recourse can make all the difference. The goal is always for the customer to pick up their vehicle, but when they don’t, being prepared can minimize losses and even turn a problem into an opportunity. Each state has different regulations, so shop owners should check with their local DMV or Department of Revenue to ensure compliance. By implementing these strategies, shops can protect their business, reduce financial losses, and maintain efficiency in their operations.
BY SPIRO MOROGIANNIS, BG TRAINING PROGRAM MANAGER AND BGU INSTRUCTOR
Effective time management improves shop efficiency, customer satisfaction, and profitability. Let’s discuss low-hanging fruit to create more time in your shops.
Time “opportunity” is a shop’s greatest revenue-producing tool that can be impacted by best practices. We can never get time back, and we never have enough. What if we could streamline everyday practices to free up more time? When time management opportunities are maximized, production and profitability skyrocket.
Identifying the importance of time creation allows you to see areas of shop opportunity without making drastic operational changes. Shop owners all have a common goal: Get more customers. As great as this sounds, the greatest opportunities lie within existing time management practices and processes with your existing customer base.
If you get more customers but aren’t thorough and concise with the ones you have, why add more? To overlook more vehicles or deal with more chaos? Maximize your shop’s basic processes to create more time and labor opportunities.
The areas of instant time improvement are as follows: scheduling, MPI quarter time process, and tech downtime practices. Consider applying changes with one key point in mind: We never get time back. Maximize every time opportunity without sacrificing quality and improve it to reduce potential comebacks. Your customers will thank you and your good reputation will speak for itself.
In the fast-paced shop environment, distractions make it easy to glance at your shop’s numbers, not truly dissect them. A few metrics can show the true pulse of your shop’s time efficiency:
1. Labor efficiency/tech efficiency. Take your tech’s total billed hours and divide by the hours physically worked. If your shop stays busy and your flat-rate technicians aren’t close to 100%, there’s a problem:
• You may be doing too much heavy line work with slow turnaround time.
• You have excessive downtime between jobs.
• Techs aren’t assigned to other vehicles when waiting on parts or approvals.
• Techs aren’t working a proper balance of high-labor efficiency maintenance jobs to large repair work.
• The repair work isn’t maximizing the shop’s time efficiency. Are you doing lengthy electrical diagnostics? Or fast-turnaround suspension, brake, and maintenance work? This matters when maximizing every tech’s labor efficiency numbers.
2. Time management via MPI. Quarter-time inspections create more sold labor. Hold your techs (especially lube techs) to this process, and it will change the course of your shop’s time efficiency and upselling opportunities. Give the advisor time to talk with the customer about items found during the MPI. This sets the table for future work.
3. Effective check-ins and drop-offs. Set customer expectations with check-in and drop-off times instead of appointments: “We will get you checked in. Once your vehicle is written up, our technician will perform a safety inspection and we’ll communicate the results, along with the vehicle concerns you came in for. We want you to know everything we see so you can make an informed decision.”
4. 10:30 a.m. and 2:30 p.m. call-backs. Allow time for customers to make accommodations if they have to. Perform your morning customer call-backs at 10:30 to give them time to plan around lunch or for the rest of the day. Contact afternoon check-ins by 2:30 so they can plan to pick up their vehicle or get it a different day. These time management exercises allow cars to get in and out fast—with better customer communication.
5. Digital shop management programs. The right shop management system is the ULTIMATE time management gift. Companies offer different features, but digital inspections, estimates, and notifications save incredible amounts of time upfront and better orchestration of the back end, which all contribute to better shop time management.
A clean, organized shop is more-efficient—fewer misplaced tools and parts, less chaos, and a much safer work environment. Designate time at the end of each day to allow techs to reset for the next day. For hourly techs: Add to their job descriptions that they manage shop tooling, cleanliness, trash duties, sweeping, and general shop cleanup when bays are slow.
Effective communication processes must exist between technicians, service advisors, and customers. If you can keep techs on task while advisors stay on course, you’re maximizing time.
Even these small-time management steps create opportunities that will drive business. Smart scheduling, proper communication, accountability of processes, and shop management exercises create time we have otherwise lost.
Time management is a continual shop effort. Regularly assess and refine these strategies into long-term benefits in shop efficiency, customer satisfaction, and increased shop revenue. Challenge yourself to implement (or fine-tune) these small strategies, and let the results speak for themselves.
BY TESS OWINGS
Every day, millions of Americans wake up dreading the thought of going to work. Luckily, for the five employees at Yeck’s Tire & Auto, that’s not that case. That’s because owner Mark Lowe has made his employee’s safety a priority. So much so that the shop recently took home top honors at the 2025 VISION Hi-Tech Training and Expo event for Best Place to Work.
“Yeck’s Tire & Auto has been there for me and supported and trained me through many things that a normal
company would just expect you to know/do. Still to this day, if I have a question I am unsure about, if asked, they will answer and teach so I have the knowledge needed the next time that issue arises.”
This is just a small excerpt from the nomination form that the staff filled out for the award but it shows just how much employees appreciate feeling safe and knowledgeable in their workspace. Every week, the company has
safety discussions and Lowe makes sure the atmosphere is comfortable to work in. During the summer, a swamp cooler and fans keep cool air moving through the shop and cold water and sports drinks are available to all employees. During the winter in Nebraska, the shop is heated and coffee and warm drinks are provided. The lot is always plowed and ice melt is applied so it’s safe for the clients and team members to enter the shop. Small steps like this can make a huge difference for employees and Lowe is a great example of putting his employee’s well-being first.
Mark Lowe has been working at Yeck’s Tire & Auto in Bellevue, Nebraska, for 45 years. He started by pushing brooms and worked his way up to partner and then in 2010, he took
over the business fully. He currently has three technicians and two service advisors working for him.
According to the Center for Advancing Health, 44% of people would describe their workplace’s environment as dangerous, unsafe, and unpleasant. That number may be even higher for automotive technicians as the Bureau of Labor Statistics describe the job as having “one of the highest rates of injuries and illnesses of all occupations. Injuries may result from incidents such as slips, falls, and overexertion. Workers reduce the risk of injury by following safety procedures and practices, such as using proper lifting technique and steel-toed shoes.”
Luckily for Lowe, he says it’s never been much of an issue for him and even before he took over, he generally felt safe. However, he does acknowledge that there are always days where it’s hard to come into work and an unsafe environment definitely contributes to that.
While Yeck’s Tire & Auto has done a good job of keeping its employees safe, accidents do happen. Lowe says that years ago one of the employees slipped on the floor and knocked his head. After that, there was an increased push for safety and the team began having weekly safety check-ins.
Lowe says that at the beginning of the staff meeting, the team has a safety discussion. In the winter, it could be about watching for ice and in the summer it could be about hydration. The team is always encouraged to report if the first aid kit is running low on any supplies.
“If anyone sees anything unsafe, everyone has the ability to shut something down,” Lowe says of the power that he gives his team when it comes to safety.
If any of the equipment is starting to seem outdated or unsafe, the staff is encouraged to bring their concerns to Lowe. In fact, the day of the interview with Ratchet+Wrench, Lowe
was overseeing the installation of a new four-post lift because the old one was 25 years old and needed to be replaced.
At Yeck’s, all standard safety practices are followed. For example, the team does weekly and monthly inspections of all of the lifts. Whenever a new team member is brought on board, the senior tech will walk the floor with them to show how the equipment works. Floor techs will then follow up, as well as Lowe himself, to make sure that the new employee has a thorough understanding. Then, during the 90-day probation period, Lowe checks in to make sure they’re feeling comfortable on the floor and if there’s anything that can be improved. “If they have ideas, I’m going to listen,” Lowe says.
Feeling safe at work is about more than feeling physically safe. Employees need to feel like their employer has their back, and Lowe does 100%. He says he has an opendoor policy with all of his employees and he encourages them to come to him with any issues. “I’ve never locked my door,” Lowe says. “If they need to talk about anything. I’ve always had an open-door policy.”
Work life balance is very important
to him, he says, and he wants to make sure they’re not stressing themselves out or pushing themselves too far. Living in the Midwest, for example, he makes sure his employees are staying home if the roads are too bad. The mental well-being of his employees is so important that Lowe is looking at adding mental health resources for his employees.
Lowe has created such an amazing workplace for his employees that in 2025, Yeck’s Tire & Auto took home the Award for Best Place to work at VISION. What was even more rewarding for Lowe was the fact that his employees nominated the shop.
For any shop owner who’s not making their employee’s safety a priority, Lowe has very simple advice. “Don’t do it.” Lowe goes on to explain that it’s not worth it to put your employees at risk in any way. It may seem like a lot, but it’s really not, especially when you compare it to how it would feel to have an injury–or possible death–on your conscience. It can be as simple as having a safety talk once per week, and it makes all the difference.
BY R. “DUTCH” SILVERSTEIN
If you’ve been following my column for a while, you’ll likely note that I seldom shy away from discussing controversial topics. Discounting is a topic that generates plenty of impassioned discussions online, in casual conversation and in the classroom. Personally, I don’t like discounts, and with very few exceptions, I seldom offered them for reasons to be discussed later in the article. There are, however, many shop owners and coaching companies that firmly believe that discounting is an appropriate and necessary sales technique that, when properly executed, can yield impressive numbers and they have the data to prove it.
1. Attracting new customers
The most frequently heard reason for offering discounts is the ability to increase car count. At its core, the auto repair business is a production-based business. In order to increase production, you either need to sell more per car or increase the number of cars you sell to. A properly marketed discount can provide an incentive for a potential customer to choose your shop over a competitor. For example, a free visual brake inspection, a free tire rotation, or a $29.95 oil change promotion, may prompt someone to give your shop a try when they might have otherwise gone elsewhere.
2. Building customer loyalty
Discounts can also be used to encourage repeat business. By offering a loyalty program or discounts on future services, shops can create a sense of value and reward for returning customers. Airlines do it with frequent flier miles, coffee shops, car washes, movie theaters, restaurants, and many other businesses employ this tactic.
3. Increasing cash flow and volume
When discounts are carefully implemented as part of a structured plan and not an emotional reaction to a customer’s tale of woe, they can lead to an increase in volume, which in turn can result in higher sales. Although the individual yield on the service which is discounted is lower, the higher volume of business and increased opportunity for
upselling can offset the discounted price, resulting in greater overall profitability.
4. Filling slow times
Slow periods are common in our business. In some respects, our business is somewhat seasonal. For many shops, including mine, the winter months were slow. Offering a discount during these slow times can help fill the schedule and keep the techs busy. A discount during this period can be the incentive that some customers need to perform that service now instead of waiting until a later date. This helps ensure that the shop remains profitable even when demand is lower.
1. Reduced profit margins
Discounts that are not properly applied and not part of a plan, kill profit margins. Our fixed costs do not change based on the price of the service. Remember, the cost of production stays the same unless you’ve negotiated a deal with your parts vendor or your techs where they are willing to take less pay. When we reduce the price of a service through a discount, our yield shrinks. The math is pretty simple. For every percentage point discount that you offer to customers, that is a percentage that is coming off your bottom line.
2. Setting unrealistic customer expectations
Offering discounts regularly can set expectations in the marketplace that there is no “real price” or that the “real price” is the discounted price. This can lead to situations where customers may delay necessary repairs or maintenance until a discount is available. We see this occur in the retail commodity realm as people wait to buy gifts on “Black Friday.”
3. Attracting the wrong kind of customers
Discounts frequently attract people who value nothing except the lowest price. These individuals seldom buy anything other than the discounted service and in so doing they cost you money; twice. First by not producing revenue for that time in the bay that they occupy and secondly, the opportunity cost.
4. Negative impact on customer perception
Consistent discounts can send a message that the shop is in financial trouble and may not be around to honor their warranty should a problem arise.
Discounts are tools that we as shop owners have available to us to benefit both our customers and our businesses. But how the tools are used and when the tools are to be used must be part of a comprehensive marketing and sales strategy that is fact based. This is where a thorough understanding of a shop’s financials is of paramount importance.
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
