Ratchet+Wrench - February 2025

02.25

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

FROM TECHNICIAN TO SHOP OWNER Sal Garcia has had a long journey in the industry where he has prioritized education, training, and standards of excellence

PERSONAL COACHING WITH SHOP EMPLOYEES PAGE 11

TRUST BUILDS A BRAND PAGE 22

THE WELLNESS FORMULA PAGE 35

A ROAD WELL-TRAVELED SAL GARCIA, OWNER OF FREMONT AUTO CENTER PAGE 28

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FEBRUARY

02.25

VO LU M E 14 NUMBER 02

08

EDITOR’S LETTER

11

BREAKDOWN

18

SHOP VIEW

20

THE CUSTOMER EXPERIENCE

Revenue per employee

Personal coaching with shop employees: a discussion with Tony Perez

Ken’s Automotive, Wilbraham, MA

PHOTO BY JULIE LARSON

Auto repair industry upgrade VICTOR BROSKI

F E AT U R E

P R O F I L E

22

28

TRUST BUILDS A BRAND Creating and maintaining a strong automotive repair shop brand starts with trust and continues with consistency B Y I VA N R I O J A - S C O T T

FROM TECHNICIAN TO SHOP OWNER. A ROAD WELL-TRAVELLED Sal Garcia, owner of Fremont Auto Center focused on education and training in his road to shop ownership

35

WELLNESS

39

CASE STUDY

42

THE 35,000-FOOT VIEW

3 ways Josiah Martin balances auto repair and family health challenges

A successful customer loyalty program can be as simple as downloading an app

Five ways to keep healthy finances

D U T C H S I LV E R S T E I N

B Y I VA N R I O J A - S C O T T ON THE COVER:

Sal Garcia, owner of Fremont Auto Center photographed by Mario Fimbrez Valley Oak Design.

Ratchet+Wrench (USPS 9957), (ISSN 2167-0056) is published monthly 12 times per year by Endeavor Business Media, LLC. 201 N Main St 5th Floor, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Ratchet+Wrench, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: $90.00 per year (U.S.A. only). All subscriptions payable in U.S. funds. Send subscription inquiries to Ratchet+Wrench, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at ratchetwrench@omeda.com for magazine subscription assistance or questions.

Printed in the USA. Copyright 2025 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

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EDITOR’S LETTER

EMPLOYEE HAPPINESS B Y I VA N R I O J A - S C O T T

I can’t start off this editorial in any

other way than thanking Greg Bunch, our esteemed columnist, for his column last month, in which he talked about the concept of revenue per employee.

Within the context of the metrics of running a business, this particular KPI is quite interesting, but I wanted to explore a different side of this very same concept. I recently listened to a VP of a big industry supplier talk about employee happiness and satisfaction. Many bigger companies survey their employees to figure out different perceptions of their jobs, their day-to-day, and how they feel about their jobs. You’ll allow me to doubt these surveys, as the fear of speaking out negatively outweighs the benefits of actually telling the truth without repercussions. With that stated, it’s not always an easy road for leaders of companies and organizations to make their employees happy. We could go into the different aspects of what makes a job “good.” Salary, benefits, flexibility, work/life balance … yes, they are all important. But in my opinion, there’s one more aspect here that trumps them all, a detailed and specific career path. And I firmly believe that this aspect of employee satisfaction can have a direct impact on the revenue per employee.

Many stages of life are just steps into bigger and better. Sometimes we don’t know when or what will be bigger and better, and we just rely on the faith that arises from our day-to-day effort. Does this mean that we need to have a clear path forward constantly? No, it doesn’t.

But when we know where we are going, what our next goal is, and we have a road map of how to achieve it, we have an added reason to go the “extra mile.”

And as usual, easier said than done.

Creating and crafting a career plan, or better said, career advancement plan, requires a mindset of growth, systems and procedures to accommodate that growth, and proper training. So how can you do 8 / R+W / 02.25

this when you run a single shop and don’t have plans to expand? Unfortunately, I don’t have the answer to this. And maybe there isn’t a single correct answer, but I’m also sure that if we are creative enough, open-minded enough, and look for the right guidance, we can find that solution that suits each case. Understanding our employees, their career aspirations, the growth that they want to see, both financially and personally, will make a better employee. It will make road to the goal that much faster, that much better, and that much more relevant as factor the everyday work task. Thus likely increasing our revenue per employee, and employee satisfaction. Two birds with one stone.

EDITORIAL EDITORIAL DIRECTOR Chris Jones EDITOR-IN-CHIEF Ivan Rioja-Scott ASSISTANT EDITOR Kacey Frederick CONTRIBUTING WRITERS Tess Owings, Leona Scott EDITORIAL ADVISORY BOARD Tara Topel, Topel’s Towing and Repair Andrew Marcotte, American Pride Automotive J.J. Mont, J.J.’s Auto Service Rachel Spencer, Spencer’s Auto Repair Tonnika Haynes, Brown’s Automotive Lucas Underwood, L&N Performance Auto Repair SALES ASSOCIATE PUBLISHER Andrew Johnson / ajohnson@endeavorb2b.com ASSOCIATE SALES DIRECTOR Mattie Gorman-Greuel / mgorman@endeavorb2b.com DIRECTOR OF BUSINESS DEVELOPMENT Cortni Jones / cjones@endeavorb2b.com ACCOUNT EXECUTIVES (NATIONAL ACCOUNTS) Diane Braden / dbraden@endeavorb2b.com Darrell Bruggink / dbruggink@endeavorb2b.com Marianne Dyal / mdyal@endeavorb2b.com Chad Hjellming / chjellming@endeavorb2b.com Lisa Mend / lmend@endeavorb2b.com Annette Planey / aplaney@endeavorb2b.com Kyle Shaw / kshaw@endeavorb2b.com Sean Thornton / sthornton@endeavorb2b.com ADMINISTRATIVE ASSISTANT Ryan McCanna ART AND PRODUCTION ART DIRECTOR Emme Osmonson PRODUCTION MANAGER Mariah Straub AD SERVICES MANAGER Jen George ENDEAVOR BUSINESS MEDIA, LLC CEO Chris Ferrell COO Patrick Rains CRO Paul Andrews CDO Jacquie Niemiec CALO Tracy Kane CMO Amanda Landsaw EVP TRANSPORTATION Kylie Hirko EVP ENDEAVOR BUSINESS INTELLIGENCE Paul Mattioli VICE PRESIDENT - VEHICLE REPAIR GROUP Chris Messer SUBSCRIPTIONS Send address changes and subscription inquiries to: Ratchet+Wrench PO Box 3257 Northbrook, IL 60065-3257 SUBSCRIPTION CUSTOMER SERVICE: 877-382-9187 ratchetwrench@omeda.com LETTERS TO THE EDITOR editor@ratchetandwrench.com Opinions expressed in Ratchet+Wrench are not necessarily those of Endeavor Business Media, and Endeavor Business Media does not accept responsibility for advertising content.

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PHOTOS COURTESY OF TONY PEREZ

N E WS I D E AS PEO PLE TRENDS

PERSONAL COACHING WITH SHOP EMPLOYEES:

A DISCUSSION WITH TONY PEREZ Taking care of your employees will help them succeed in every way

BY KACEY FREDERICK

Auto shop ownership is a role that requires

a vast array of skills. Nobody comes into the role knowing what to expect, but once you’re there, you have an entire team of technicians, service advisors, and more, who are counting on you the same way you count on them.

When Tony Perez started his California-based shop, Euro Car Doctor, he knew that in order to provide stellar service, he needed to recognize who his most important clients are: his employees.

inventory. He was much more interested in working with people.

“I was on a hunt for a great industry that was—like I said, economy isolated—but more importantly, I didn’t have to deal with inventory,” says Perez. “The only inventory I needed to worry about was my people inventory, and that is something that I’ve

always said, ‘Okay, I can focus on that one.’

Because it is something that you have to foster, you have to seed, you have to grow, and the good people will come to you.”

From the beginning of Euro Car Doctor, Perez has been aware of how important it is to recruit only the best talent he can find. He won’t settle for just

Business of People

Perez doesn’t have prior experience working in automotive. Rather, he has a background in import and export, which has taken him on four million miles of travel in a decade. After years of working in the field, Perez decided he wanted to pursue something not requiring him to move around as much.

Ideally, Perez was seeking to enter a market that was economically resilient, and one where he wasn’t handling so much 0 2 . 2 5 / R + W / 11

J U M P S TA R T / B R E A K D O W N

anyone from a dealership—he wants the best one there.

It’s not just enough for someone to be a good technician, though—automotive skills can be trained and taught. What typically can’t be taught is having a good attitude.

Though one technician, for example, may have fewer certifications than another tech, their energy and willingness to help others can go a lot farther.

“I can’t train you to be an amazing human being. I can’t train you to be a servant to the person that’s next to you and help them when they’re in trouble as well,” Perez explains. “So when we go after looking for that person, we establish the fact that, ‘Hey, this is a true teamwork environment.’”

At Euro Car Doctor, technicians are expected to keep their workplaces always organized, ready for someone else to take over if there’s a personal emergency pulling them away from work. Perez has been careful to craft an environment that accommodates staff members when personal life interferes—but it can only work if everyone is committed to helping.

When an employee is first brought on, Perez takes the time to ensure that they understand everything expected from them as a team member, providing a contract that outlines not only what the requirements of their position will be, but also that they will be working in a team with others, and are expected to always be honest.

“That first day is everything. That first day of hire sets the pace for everything,” says Perez.

Rewarding Ambition

In addition, he also provides new hires with a goal sheet on their first day for them to list their biggest goals. If they work there and commit to giving their all, Perez works with each of his employees to help them draft a plan for achieving their goals.

Just this past year, Perez has helped three of his technicians and a service writer with purchasing their first home. He helped another two staff members get out of debt, with one of them even going on to start his own business with the help of Perez.

Perez will sit down with his employees and their spouses and go over their finances

with them, creating a plan to help them achieve their goals. He assists them with drafting letters for loans, and if they have bad credit, he’ll help them figure out how to improve it.

The coaching Perez offers his employees is a creative way for him to use the training he’s received throughout his career, outside automotive work. Having owned another business before, Perez brings a deep understanding of finances, and his work as a real estate agent for the past 20 years

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and owning over 13 rental properties has made him qualified to help others navigate homeownership. “Because I’m doing it, it’s easy to mentor other people to do it as well,” explains Perez.

A Supportive Learning Environment

Another crucial part of Euro Car Doctor’s shop culture is viewing mistakes not as something to be punished, but a learning moment for the whole crew. Each month,

2410RW_Powertrain.indd 1

the team gets together and share their wins, as well as lessons.

“I don’t say losses—we go over the lessons as well,” tells Perez. “Good or bad, we share them with everybody. Somebody grenades a transmission and went the wrong way in a diagonal, we share it with everybody, so it’s learned as a lesson and not as a penalty.”

This is important in fostering an environment of trust and honesty. Additionally, Perez uses these round-robin meetings to

ask his staff what he can do to help make their job better. He always urges employees to share at least one thing that the shop can improve on, whether it’s an issue with a new quoting process or improvements to the restroom.

One thing Perez knows for sure, though, is that he’s on the right track: he’s fostered an environment of teamwork, that values family and a work-life balance. Holding true to the servant-leadership mindset, Perez works hard to provide everything his employees could need to succeed. In exchange, he’s formed a trustworthy crew that has each other’s backs, no matter what.

“One thing I continuously hear—and it lets me know I’m going in the right direction with the way we’re doing it—is a lot of the times that people just go ‘Look, this is the best team I’ve ever worked on. I’ve worked in independents, I’ve worked in dealerships; I’ve never been in an environment where I can be me. 100% me,’” tells Perez. “‘I’m not in a race against anybody else but myself, and I can make a mistake, and I can be honest about it, and I’m not going to get fired.’”

0 2 . 2 59/9/24 / R+W 13 9:40/AM

J U M P S TA R T / S P E E D R E A D

Auto Care Association Holding Webinar on Proposed Tariffs From Trump Administration The Auto Care Association held a webinar on what the aftermarket can expect from tariffs proposed by the incoming Trump administration, according to a recent press release.

Topics covered in the webinar included how tariffs will impact U.S. industries, consumers, and global supply chains, and how it will impact the U.S.’ trade relations in the long-term.

Trade agreements, renegotiations, and disputes from Trump’s previous term were also be examined and evaluated.

Subject-matter experts Patricia Paoletta and Kent Bressie, partners at law firm HWG, lead the discussion, offering their professional insights.

Though the session was especially useful for those who import and/or export, source raw materials, parts and components, or finished goods from international markets, and those with global supply chains, ACA encouraged all auto care industry professionals to attend.

Bosch, Honda, Panasonic Energy Speak on Impact of Trump’s Tariff Plans Automotive suppliers and manufacturers recently spoke on the potential impact of the Trump administration’s proposed tariffs on their operations at CES in Las Vegas, according to a Reuters report shared by NADA. Paul Thomas, North American president for Bosch, shared that the company could be looking at moving production of something like an electronic control unit from Malaysia to Mexico or Brazil, where the company has already established itself.

“Anyone can do the math,” Thomas said. “If it’s 10%, 20%, 60% (tariffs) ... you have to say, ‘OK, how many scenarios make sense for that and which ones do we act on?’”

The company will wait until the administration takes office on Jan. 20 before it makes any decisions, as are other suppliers and automakers.

Honda Executive Vice President Noriya Kaihara shared at CES that it’s possible the company could shift exist14 / R + W / 0 2 . 2 5

ing production in Mexico to elsewhere, depending on tariff levels—potentially to Japan.

“We have not formalized what we can do, but we are elaborating what we will be able to do,” clarified Kaihara.

Tesla’s EV battery supplier, Panasonic Energy, has already been moving more of its production to North America. But the company’s North American president, Allan Swan, said Trump’s election means it is now looking to eliminate any and all materials sourced from China in its U.S.made batteries.

Tonnika Haynes Joins the Ratchet+Wrench Editorial Advisory Board Tonnika Haynes, owner of Brown’s Automotive in Chapel Hill, North Carolina, has joined the Ratchet+Wrench Editorial Advisory Board as the newest member.

Having first opened in 1980, Haynes is the second-generation owner of the 4,000-square-foot, family-operated shop. Having grown up in her family business, Haynes is trained in not only automotive repair, but expertly handling customers as well.

Haynes is a UNC-Greensboro graduate, now serving on the NC Automotive Service and Tire Alliance board. She’s vocal about the need to prevent burnout among business owners, promoting practices to help those operating shops manage their stress.

Haynes is also passionate about encouraging more women to enter the automotive field, seeking to expand representation of those in the industry and creating opportunities for more to find their own career.

Honda Executive: Merger With Nissan Offers Expanded Production Capabilities Honda executives recently shared some of the company’s motivations behind merging with Nissan at CES in Las Vegas, reports The Verge.

During a roundtable discussion, Noriya Kaihara, director and executive vice president at Honda, explained that such a merger would help Honda to reduce costs for its software-defined

vehicles by sharing resources between itself and Nissan.

Additionally, the presence of large SUVs like the Armada and Pathfinder in Nissan’s lineup is something of interest to Honda—particularly, adapting the hybrid technology currently only seen in Honda’s midsize vehicles to Nissan’s larger models.

Honda has also been experiencing overcapacity at its production plants serving the U.S., and the available space in Nissan’s factories would help Honda achieve its production goals.

“I’m not in a position to make comment (on Nissan), but they have capacity,” said Kaihara.

Merging Honda’s resources with Nissan may also help it to compete with China, with Honda having concerns over China’s advances in EV and autonomous driving. “(The) rise of Chinese automakers and new players has changed the car industry quite a lot... We have to build up capabilities to fight with them by 2030, otherwise we’ll be beaten,” stated Honda CEO Toshihiro Mibe last month when Honda and Nissan entered a memorandum of understanding to establish a company together.

Automakers Likely to Cut Production in Europe and North America in 2025 Automakers in Europe and North America face a bleak future, with several car factories at risk of closure or sale this year, according to a report by research and advisory firm Gartner. The industry is struggling with overcapacity and intense price competition.

Gartner VP Analyst Pedro Pacheco told Reuters that closures or sales are more likely in high-cost countries, where political and societal pressure will be offset by mounting competition. “This is a little bit like a pressure cooker,” Pacheco said. “The pressure increases, increases and... that will push the number of automakers to take more pragmatic decisions.”

Automakers will likely cut production capacity on the two continents by 2025 as they face emissions targets and tariffs. Meanwhile, China’s electric vehicle dominance is expected to

grow due to its edge in software and electrification. Chinese brands could buy plants to overcome trade barriers, or open new factories in lower-cost European countries and free-trade partners like Morocco or Turkey, Gartner predicted.

Fearing disruptions from 2025 European Union CO2 emission rules, the CEO of German auto supplier Bosch, Stefan Hartung, told the publication Auto Motor und Sport that the bloc should abstain from fining companies that fall short of targets. Luc Chatel, chairman of the French car lobby PFA, warned that Europe’s auto industry is no longer on track to reach its 2030 and 2035 EV targets. “The risk is that we end up reducing combustion engine vehicle sales to artificially beef up EV sales,” he told Reuters.

More Americans Support Stricter MPG Standards According to a recent Consumer Reports survey, a majority of Americans support stricter fuel economy regulations. The survey, conducted from August to September 2024, polled 2,191 U.S. adults, with 91% of respondents driving internal-combustion vehicles.

The results suggest these car owners are keenly aware of the environmental and economic consequences of burning fossil fuels.

Fuel economy was the top priority for respondents across eight nationally representative surveys conducted by Consumer Reports over the past nine years.

This bipartisan perspective held true, with majorities of both Democrats and Republicans saying automakers should continue to improve fuel efficiency.

Respondents also felt these improvements should be federally mandated, with 64% saying the government should continue to increase fuel economy standards. This sentiment likely stems from a lack of trust in automakers to improve efficiency on their own, as only 27% agreed that automakers care about lowering fuel costs.

While many Americans would consider paying more upfront for a hybrid if the fuel savings over the ownership period made up the extra cost, they represented a slimmer majority of just 52%.

Steadily increasing fuel-economy standards have already delivered significant savings for consumers, regardless of the vehicles they are buying. In a separate analysis, Consumer Reports found that tougher standards have provided over $9,000 in fuel savings compared to 2001 models. An additional $6,000 in savings could be achieved by the 2029 model year if current standards remain in place, the organization noted.

An update to Corporate Average Fuel Economy standards confirmed in 2024 covers model years 2027-2031 and calls for fuel-economy improvements of just 2% for passenger cars and 2% for light trucks. The EPA estimates its corresponding rules will require 56% EVs by 2032, plus an additional 13% plug-in hybrids­— a slower rollout than the 67% EV share originally proposed.

These small improvements could be threatened by an incoming Trump administration that favors Big Oil over reducing emissions. However, as Consumer Reports points out, such policies could also deprive voters of savings at the pump.

OEC Acquires PartsTech to Enhance Service Offerings OEC, maker of RepairLink, has acquired PartsTech, a company that connects auto repair facilities to a network of more than 225 parts and tire suppliers across 30,000 locations through its e-commerce procurement solution.

Like RepairLink, PartsTech’s platform provides repair shops with access to one of the industry’s most connected, accurate and efficient mechanical parts procurement systems.

As the automotive aftermarket continues to evolve, this acquisition will provide the industry with an expanded network of suppliers and buyers for all part types, as well as access to special pricing and loyalty programs. Together, RepairLink and PartsTech bring industry-leading fitment information to repair facilities, streamlining workflows for quoting and ordering to boost repair efficiency. The combination now better serves their expansive network of shops across mechanical repair, collision, and refurbishment.

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LITTLEKOP / ISTOCK /GETTY IMAGES PLUS

J U M P S TA R T / N U M B E R S

MAKING THE SALE The metrics regarding sales are some

of the most important for a shop’s success.

The average shop in the US has an annual per bay gross revenue of $203,000. Taking this average revenue number in mind, one-third of auto repair shops report an average repair order of $400 to $599, while a similar percentage of shop owners say they have vehicle repair opportunities of $1,500 or more.

“Revenue Jumps 35,000 Per Bay When Shops Have Two Advisors.”

Adding a second service advisor can substantially boost annual gross revenue per bay, with an estimated increase of about $35,000. However, further increases in advisors, from two to three, three to four, and four to five, do not yield significant per bay revenue gains. The most notable jump in revenue occurs when going from one to two service advisors.

AVERAGE OPPORTUNITY PER VEHICLE

AVERAGE REPAIR ORDER

Below $800

8%

Less than $200

3%

$800–$999

9%

$200–$399

20%

$1,000–$1,100

9%

$400–$599

33%

$1,200–$1,499

11%

$600–$799

19%

$1,500–$1,999

18%

$800–$999

11%

$2,000 and above

14%

$1,000 or more

14%

Does not measure

25%

Does not know what this is

6%

Source: 2024 Ratchet+Wrench Industry Survey Report

0 2 . 2 5 / R + W / 17

J U M P S TA R T / S H O P V I E W

KEN’S AUTOMOTIVE Creating a welcoming space for customers makes all the difference

WARM AND INVITING Upon entering the shop, customers are greeted with the service advisor desk. The waiting area has comfortable chairs, high top tables for those with laptops, and a coffee bar placed on custom-made wood countertops.

In the winter, Bernard goes to extra lengths to keep customers in the lounge area comfortable.

“It’s cold up here in the Northeast, we’re like 19 degrees today. I’ve got two heaters here that support and make sure that it’s always toasty warm.”

For the past couple of years, Bernard has kept what he calls a “vision board,” compiling ideas for what his shop would look like, such as color scheme ideas or different flooring to use. Being in a colder region, it’s especially important to maintain a warm atmosphere in the shop.

18 / R + W / 0 2 . 2 5

PHOTOS COURTESY OF

Having worked in the automotive field for 25 years, Ken Bernard made the decision in 2006 to open his own repair shop. From just one bay, he amassed a customer base of over 400 loyal customers, leading him to lease a five-bay shop in 2012. Around 2015, he purchased the building for himself, upgrading his number of bays even higher.

Located on the high-traffic Boston Road, the building was originally connected to a gas station, which has since been removed. A lot of work has been done on the facility to modernize it and give it the clean appearance it has today.

“We have done tons of construction.

It didn’t look this pretty when I moved in,” tells Bernard. “We had to rip out the gas tanks, redo the entire parking lot—new roof, new heating, new A/C. I have all new lifts. Everything’s been gone through.”

LE ANNE BERNARD, GENER AL MANAGER , KEN’S AUTOMOTIVE REPAIR INC.

BY KACEY FREDERICK

KEN’S AUTOMOTIVE Owner: Ken Bernard Location: Wilbraham, MA Staff Size: 5 Number of Lifts/Bays: 9

CLEAN AND EFFICIENT

HAVE AN OUTSTANDING SHOP? Send a few photos and a brief description to submissions@ratchetandwrench.com and we might feature it here.

Since purchasing the facility, Bernard has upgraded the shop to have seven working bays. It’s also equipped with some of the latest in auto repair technology, including the latest Snap-On tools and a Hunter alignment machine with a 16,000-pound capacity. All lifts have been replaced with Rotary Shockwave lifts.

An extension of the building that was once used as a car wash has now been utilized by Bernard to operate as a section for light maintenance

and tires, equipped with two full bays.

Doing such a large volume of cars, it’s helped the business remain organized and tidy, which Bernard underscores as essential for success.

“Organization and cleanliness: that’s what we do,” says Bernard. “The organization, for sure, has helped us reach a next level of success. I’m always preaching that, whether it’s up front with the service advisors, ordering parts on time, making sure the shop is always organized; you can’t be efficient if you’re not organized.”

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COLUMN / BROSKI

THE CUSTOMER EXPERIENCE

Auto Repair Industry Upgrade

BY VICTOR BROSKI

A survey conducted by the AAA from

2016 that stated that two-thirds (63%) of U.S. drivers didn’t trust auto repair shops.

That same survey also stated that twothirds of U.S. drivers found a repair shop they can trust. Those conflicting results make me question that survey. However, browsing on-line I found another survey online that read: The majority of Americans don’t trust car repair shops to treat them fairly.

The article continued: “nearly 9 out of 10 respondents admitted to feeling overcharged or suspecting they’ve been overcharged at some point.” I didn’t like the wording, “at some point.” When? In the last 10 years… More vague wording: “feeling overcharged or suspecting they’ve been overcharged.” So, they felt overcharged?

They don’t know they were overcharged?

Does that mean they saw the parts cheaper online? Big surprise! Also, “more than half believe they’ve paid for services they didn’t actually need.” How would they know?

Again, no certainty, just a feeling.

Wait! Did they get this feeling from the interaction with the service advisor? Ouch!

It’s certainly food for thought.

Here’s my theory. I believe the public has linked auto repair to car sales because they both deal with cars. Especially used car sales where there’s a lot of negotiating and what seems like underhanded stuff and manipulation. Many independent car dealers sell cars with problems, but I’ll bet few people enjoy buying a car because of that.

I just talked with two people who recently bought cars from a dealership. Our lady customer called ahead to get the exact price because her company was going to write a check, which she brought in with her. They still sent her on to the finance guy. He tried to sell her an expensive extended warranty. She said no. He tried to sell a lower priced warranty. She reminded him she had the check already written. He continued to offer more upselling products.

She said it took an hour to get through all the pushy sales. Ouch! Notice the selling and the dealing with objections. Does that sound familiar?

A friend of mine, who was a Porsche technician back in the day, went to a Subaru 20 / R+W / 02.25

dealership to buy his granddaughter a car.

He knew the negotiating game and didn’t want any additional items for the car. The same thing happened to him, he was sent to the finance guy. The finance guy went from expensive warranty to medium priced warranty to which my buddy politely said no. The finance guy said, “OK, here’s what most people go with.” And he handed him the tablet to sign. I think most of you know the drill: sell, sell, deal with objections.

I’d guess the motoring public believes auto repair falls under the umbrella of car sales because similar tactics are used. Heck, shops are selling, upselling, and also dealing with objections when a customer says no to things, just like the car sales guys. It’s no wonder we have a bad reputation.

I have some ideas and suggestions to solve this problem. First off, quit selling and quit using the word selling! We don’t have to sell because the car is already in our shop and most of the time they are already a customer of ours. If we build up a great relationship with the customer, we just need to advise, that is, to explain what is needed now and what can wait. We are not like a mattress store or any other one-time retail outlet. What percentage of mattress store shoppers are regular customers? They have to sell.

An independent car lot isn’t trying to help you buy a (used) car. They are trying to sell you one of the cars on their lot. If the car salesman doesn’t sell you a car, they have to answer to somebody. Few of those car salesman care about you, they just care about their job and their commission, and we can’t fault them for that. I hope you care about your customers.

How about when you get a cold call at work? They want to sell you something auto or business-related. If you’re polite you say no thank you. Then they launch into more benefits of their item. Does that sound familiar to what the advisors are taught to do? If you say you’re not interested because of any given reason, they launch into dealing with objections. Again, isn’t that what old-school coaches advise you do?

Here’s another tactic I disagree with, giving your customer a good compliment about the great shape their car is in ex-

cept for a few things. You know, to soften them up for the additional expense. Quit trying to get the approvals for everything on the DVI. You would naturally fall into the selling mode, therefore dealing with objections, both of which irritate customers. Do a search for “everybody likes to buy but nobody likes to be sold.” Suggest a few things that can wait, which will relax your customer, knowing you’re not trying to sell them everything. The trust that’s created makes everything better.

I recall one automotive writer who said it’s the few disreputable shops that are ruining our reputation. I don’t think so. I think it’s the nature of our business, pointing out the additional things that need attention on their car. Unfortunately, the current method of bringing up those additional items sounds like we’re doing it for our own benefit, to make more money.

We’re not taking the psychology of the customer into account. It’s time to upgrade our methods.

Victor Broski has more than four decades of experience in the automotive repair industry.

He worked at five different German car repair shops, learning something from each. As a service advisor with a degree in speech communication, he figured out how to easily get customers to say yes to the additional (DVI) work and be happy about it. Victor learned that great customer service brings great customer reviews, which brings inquiring phone calls that convert to new customers. victor.broski@gmail.com

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F E AT U R E

Trust Builds a

22 / R+W / 02.25

Brand

Building a strong brand takes time, but the results can lead to generational benefits

BY I VA N RIO JA - SC OT T | PHOTOS BY JU LI E L A RSON

Creating and maintaining a strong automotive repair shop brand starts with trust and continues with consistency. Our industry continues to suffer with a lack of trust and a bad reputation.

Earned or not, it’s a major issue faced by many shops and the industry as a whole.

Having strong brands in the industry is a starting point for helping build the trust to overcome this challenge. Strong brands come with one commonality, trust. Without trust in our automotive repair shops, we cannot properly tend to our customers’ needs and requirements.

02.25 / R+W / 23

F E AT U R E

Scott’s Automotive & Tire Centers is a family-owned and operated brand with ten stores across Colorado and Arizona. Established in 1993, it’s been a trusted automotive repair brand for over 30 years. But that trust has been built over time, with a strong value system of service to the community, honesty, transparency, and quality work. Over the past year the shop has been through some brand consolidation, unifying small aspects of the brand identity to ref lect equally at all 10 locations.

“As I think about our brand, my mind goes right to the question that I’d asked myself, ‘what do we want our brand identity to say about our business?’ For Scott’s Auto it was clean, quality, trust, attention to detail, consistency, and 24 / R + W / 0 2 . 2 5

community,” says Julie Larson, chief marketing officer at Scott’s Automotive & Tire Centers, Inc. Maintaining consistency across a multi-store operation is one the aspects that qualifies successful brands. This consistency has several different branches, and one of them is the visual aspect of the multistore shop. Scott’s Auto decided on gold and black, with gold representing the gold standard in auto repair. “We had slightly different logos for each of the locations and we were lacking that visual continuity,” says Larson. Of course, the logo is just one step into building a strong brand identity. “In all of my marketing pieces, and in store, this has to be, again, consistent in look and feel,” states Larson.

A Deep Dive into Understanding your Customer Successful shops always understand who their customers are, they understand what their needs and concerns are, and how to effectively communicate with them. “You can do all the brand recognition and marketing you want, but if the owner isn’t invested in his/her people, it’s a waste of money. After all, we’re in the people business.” Shop staff are the visible face of a brand, and how they interact with customers, suppliers, and the community as a whole, is what can make that brand relatable.

“Two things I believe strongly in.

“Some shops just have a name, not a brand.”

One, your employees are your best advertisers (if treated properly), and second, find ways to make people want to represent your brand! We’ve done a lot with apparel, which is an awesome way to be seen by clients and prospective clients,” says Larson.

Brands speak to people, and catering to today’s multigenerational customers has obligated auto repair shops to adapt to different forms of communicating with these customers, opening new channels, and creating 24 hour and seven day per week convenience.

“Everything in and around your shop says something about your brand,” says Larson. Adapting to newer ways of customer interaction also speaks to the value of an auto repair brand.

What Stage is your Shop in?

Whether your shop was started from scratch, you took over an existing business, or the brand has been passed down, understanding the stage of your automotive repair brand's development is crucial when building a strong brand identity. Your brand may not always align with the shop's longevity—newer shops are often in the process of establishing a presence in their community, while more established brands may be expanding or working to overcome a lack of trust or poor reputation.

02.25 / R+W / 25

F E AT U R E

Brands, especially those with multiple locations, require consistent trust and service. Customers expect the same level of convenience, pricing, and quality across all your shops. Assessing your brand's current stage takes time and effort to deeply understand how you are perceived in your area of operation.

Most shops start modestly, with limited resources to dedicate to marketing and brand-building. While visual elements like a website and logo can be designed, the true brand is def ined by the shop's values and daily interactions with customers. Building a strong, reputable brand is a gradual process, but essential for success in the automotive repair industry.

“Some shops just have a name, not a brand,” says Larson. Many older shops in the industry have relied on word of mouth as their main source for new customer growth. At the expense of investing time and money into building a brand.

The Digital Footprint According to experts, if you are not on the first page of a google search, your visibility drops from 75% to 25%.

Google has become one of the most important search tools for consumers looking for auto repair shops, and reviews are a fundamental part of maintaining a positive brand presence. Whether it’s Google, Yelp, Facebook, or any other online platform, understanding and responding to potentially negative reviews shows active engagement on behalf of shops. Not all reviews are always going to be positive, and everyone will have an unsatisfied customer from time to time. Addressing these reviews in a constructive and positive explanatory manner can help other consumers see how your shop addresses issues.

According to the Ratchet+Wrench Industry Survey Report, 79% of shops use Facebook as their main social media tool. And yet, this platform is not the preferred channel for gen z customers. Only 39% of shops use Instagram, and even less, only 7% use Tiktok (*information provided prior to the de jure 26 / R+W / 02.25

nationwide ban in the United States on January 19, 2025). There’s a clear disconnect regarding the channels used to communicate with younger generations. According to a recent column

by Ratchet+Wrench columnist, Mike Bennett, a nationally certified executive trainer, and former shop owner, “younger generations—millennials, Gen Z, and even “digital-adopter” Gen Xers, have entirely reshaped purchasing decisions.” According to Statista, 62% of Gen Z and Millennials made a purchase due to branded social media or inf luencer content.

Scott’s Auto has taken a proactive approach to social media. Their presence can be seen across social media platforms showcasing staff at a very personal level. This strategy appeals both to the younger generation as well as serving a brand recognition platform.

Utilizing social media should be seen as an opportunity to showcase a shop and strengthen the brand it represents.

According to Captiv8, 85% of Gen Z shoppers say that social media inf luences their purchases. Shops need to be present in these channels if they want a strong brand and further reach.

PROFILE

From Technician to Shop Owner, a Road Well-Traveled

Fremont Auto Center started with the skill and talent of Sal Garcia, a seasoned professional with unstoppable hunger for a challenge.

BY I VA N RIO JA - SC OT T | PHOTOS BY M A RIO FI M B RE Z , VA LLE Y OA K D ES IG N

28 / R+W / 02.25

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S

al Garcia states with pride that he resides less than 50 miles away from his birthplace. He’s currently the owner of Fremont Auto Center in Fremont, California, a 2,500-square-foot shop that’s equipped to accommodate five technicians, two estimators, and one service advisor. Fremont is currently in the process of expanding to suit full capacity.

Garcia’s journey to shop ownership has been full of ups and downs, but his innate talent, desire for continuous improvement, and understanding of the value of maximizing your resources, has lead Fremont Auto Center to a position of success.

From a very young age Sal Garcia showed skill and talent for the mechanical aspect of objects. “My parents knew that I was going to be a mechanic, just not what type,” says Garcia. So, for him, it was not a question of choosing a career path but choosing the type of mechanical field that he would follow. Garcia received his California SMOG certification before finishing high school and has continued his educational journey throughout his career up to becoming a master technician.

Understanding the Importance of Education

It’s not uncommon at all for a technician to take the leap and start his own shop.

But all too often the technician lacks business acumen, in-depth shop management knowledge, leadership skills, and gets lost in the day-to-day running of the shop. It’s then that the importance of proper education and training comes to hand. For some shop owners, such as Tonnika Haynes, owner of Brown’s Automotive in North Carolina, it was delving into the internet and learning from peer groups and free resources. Coaching is an option that has shown to prove results time after time, however finding the right coach, or mentor, is not a straightforward process. Sal Garcia, a lifelong resident of the bay area, became certified as a SMOG technician for California regulations when he was still in high school. This allowed him to start working at shops at a very young age.

The exposure and experience helped him realize that obtaining the proper training not only gave him opportunities but helped him differentiate himself from the rest at his age. Throughout his career, he’s been able to transition from different

jobs relying on his skills as a technician, work ethic, and desire to do things right.

The Road to Shop Ownership

Garcia started his first shop at the age of 22. After working for tire centers, and a stint with a Volvo dealership, Garcia opened up on his own. “I was quite versed as a technician, but I didn’t know that much about business,” he admits. It was a tough start for Garcia, much like it is for many technicians that take the leap into shop ownership. One of the main hurdles that technicians face is understanding how to price their services correctly. Identifying and analyzing

the numbers in order to set the proper labor rate according the customer base, demographics, and type of work become vital in the long term. “I started charging lower rates to get customers in the door, and for some bigger jobs I’d lower the rate a little bit. In hindsight that was a mistake. Many technicians have that approach and mindset,” says Garcia.

This first shop ownership venture lasted four and half years for Garcia, two in his first location and the remaining two and half at second and better situated location. “During this time I did take on some coaching”, says Garcia. Hiring a coach is common for shop owners, however 02.25 / R+W / 29

PROFILE

“I love to give my techs really big checks because their work is based on productivity.” the timing in which the hiring is decided is sometimes a too late. When problems arise at a shop, coaching becomes a way to solve the urgent problems rather than to attack issues that are preventing actual growth and ease of operations. According to Garcia, “I learned a lot of things from that early coaching and only implemented some.” Many shop owners admit that implementing change is difficult, and more so when they have firm and concrete procedures in regard to how their shops should operate. Putting trust in a coach and sometimes making radical changes to the day-to-day operations isn’t simple for shop owners no matter how much experience they have.

By this time, Garcia had earned a reputation of being able to fix cars that nobody else could tackle. “I was fixing cars that were referred to my shop without even knowing where they were coming from,” recalls Garcia. This situation that Garcia experienced made his ego get in the way of running the business and ultimately, he decided to close the shop and return to working as an independent contractor. In his situation, given that he didn’t have any family that relied on him financially, he was able to be a true independent contractor with the ability to choose where and how to work.

In the late 90’s and leading up to the early 2000s the technology industry was a very attractive prospect for many young people. Garcia was not immune to this attraction and decided to go back to school so that he could find his way in this indus30 / R+W / 02.25

---

GENERATIONAL DIFFERENCES

try. Being an independent contractor and working with the guidance of Mike Hunt as an associate of ESI, it was impossible for him to maintain a fixed residence, and therefore attend school. For Garcia that meant returning to the dealership world.

“I joined a Mercedes-Benz dealership even though I had only worked on maybe one or two Mercedes ever”, states Garcia.

His belief that if you understand the basis of a system, how and why it works, you can solve any issue a car can have, maintains true to this day with Garcia.

Fremont Auto Center, from Paper Tickets to DVIs

In 2017 Garcia “reopened” Fremont Auto Center. The original shop was opened in

1989 and situated only a few doors down from the shop Garcia had worked for as an independent contractor. At that time the owner was winding down and had taken six months’ leave of absence to care for his health, and was ready to pass on the business. Upon taking over, Garcia determined that the name and reputation of the shop was strong enough to keep, even though the name rights had not been registered with the county for some years.

Lucky for him, the name hadn’t been claimed, so he was able to keep the Fremont Auto Center denomination.

Taking over a retiring shop is not an uncommon path into shop ownership.

In this case, aside from the name, the 2,500-square-foot space, four lifts, and

Technology has shaped the way we communicate since the inception of the telephone back in 1876. I know it’s a stretch, but the ever-changing communicational landscape shapes the way we interact with each other. Why is this relevant to the auto repair industry? Well, whether we like it or not, it’s very relevant. Independent auto repair shops are, after all, retail service stores, and this requires both interaction with customers and employees alike. And that interaction has to be flexible both in terms of the channel and the content.

According to the 2025 Ratchet+ Wrench Industry Survey Report, approximately 40% of shop owners are over the age of 40. And while we cannot take exact dates of birth for qualification into social generations, we could affirm that a sizable percentage of shop owners are millennials, gen x, and baby boomers. These generations have more in common than social generations that proceed them, and at the same time they have a similar way of communicating.

On the other hand, Gen Z, and generation alpha (those born after 2013), will soon be entering the workforce.

This represents a communication challenge, a new way to interact based more on technology than in-person, face-toface interaction. The Gen Z generation is also becoming a more prevalent customer in the auto repair shop business, and this represents an opportunity to create long-term customers from a younger age. That is, if we learn how to effectively communicate with them.

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PROFILE

“The moment we started using DVIs our ARO went up $200 dollars.”

a few random pieces of older equipment, Garcia was basically starting from scratch. As he recalls: “When I looked through the paperwork all the customer information was hand-written, in the owners original handwriting and there were no computers.” With his previous experience, Garcia’s first step was to install a shop management system. As an owner-operator, Garcia soon realized that he needed to hire the right staff, and with that hiring came the inception of the DVI. “When the new technician came on board he had experience with DVIs, and insisted that we implement 32 / R+W / 02.25

them in our operation. This had the immediate effect of raising our ARO buy $200 dollars,” as Garcias states.

“After implementing the DVI and observing the effect this had on the ARO I really started dialing in and looking at the numbers,” says Garcia. This change in mindset allowed him to look at entire set of new metrics, things like productivity per bay, and technician efficiency. Even as a small shop, these KPIs matter, and owners can really look at the parts of the business where there is room for improvement.

“My role in the business has evolved.

I used to be about 30% of technician, and

as of recently, I’ve left the shop floor to the technicians and I only advise them when they need help”, says Garcia. Optimizing the running of business has allowed owners like Sal Garcia to “level up” and participate more on an advisory role. In the case of Fremont, Garcia is actively looking for a second location and believes that he can achieve revenue goals of up to $20,000 dollars per bay per month with the right staff. He pays his technicians with a tiered bonus structure based on their goals. As he says proudly: “I love to give my techs really big checks because their work is based on productivity.”

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THE WELLNESS FORMULA: 3 WAYS JOSIAH MARTIN BALANCES AUTO REPAIR AND FAMILY HEALTH CHALLENGES Working through personal hardship as a shop owner is one of the biggest challenges we can face

BY LEONA SCOTT

Owning an auto repair business is demanding, but balancing work with family life is an entirely different challenge–especially when life throws unexpected curveballs. For Josiah Martin, coowner of Limitless Auto Center in Oley, Pennsylvania, finding that balance has been challenging, which has taught him to build resilience and learn his priorities.

Over the past few years, Josiah has grown his business from two to seven employees

while navigating significant family health challenges. His story provides shop owners valuable lessons on juggling work and family while maintaining personal wellness.

Building a Business During Uncertainty

Josiah Martin entered the auto repair industry at 16, rebuilding alternators and starters. His hands-on experience expand-

ed to heavy electrical work and eventually to a general independent shop where he worked for eight years as a technician.

Having a reliable business partner and a strong staff helped Martin balance the challenges of dealing with major health challenges with his young family.

In 2020, Josiah and a business partner, Burnell Zimmerman, made a bold move: they purchased an existing auto repair shop during the height of the pandemic.

“We started with just the two of us,” he recalls. “Now, we’ve grown to a team of seven.” The growth of Limitless Auto Center was impressive, but behind the scenes, Josiah faced significant personal challenges.

During this time, Martin’s family life changed dramatically. He became a father to two sons diagnosed with maple syrup urine disease, a rare genetic condition. In December 2020, his 18-month-old son– who is now 5 years old–underwent a liver transplant. Now, his youngest son, just 02.25 / R+W / 35

T O O L B OX / W E L L N E S S

one-year-old, is also awaiting a transplant.

Martin’s journey showcases the importance of balancing family priorities with business responsibilities.

Three Ways to Balance Work, Family, and Wellness

Josiah Martin shares three key strategies that have helped him manage his growing business while caring for his family’s health needs.

1. Know Your Priorities

One of the biggest lessons Josiah has learned is the importance of setting clear priorities. “My kids are only going to be young once,” he says. “You can get another job, but not another family.” This mindset shift is part of a broader generational change in how people view work-life balance. Martin recognizes that previous generations often lived to work, but he’s adopted a different approach: he works to live. When his son needed a liver transplant, Martin and his wife spent two months in Pittsburgh for the procedure and recovery. To keep the business running, his partner and part-time staff stepped up. “We couldn’t pay me for a while, but we made it work,” he says. Josiah emphasizes that being honest with yourself about your limitations is crucial.

“You have to set realistic expectations,” he advises. “Be flexible and forthright about what you can and cannot do.”

By prioritizing family, focusing on his health and wellness, and partnering with a business coach to build a self-sustaining business, Martin has navigated a challenging chapter in his life with resilience and balance.

2. Set Boundaries and Be Intentional with Your Time

Running a business requires long hours, but Josiah has learned the importance of setting boundaries to make time for his family. Last summer, Limitless Auto Center implemented a four-day workweek, giving Martin more flexibility to attend doctor’s appointments and spend time with his family. “You need to be specific about personal time,” he says. “When I came back from the transplant, I knew family needed a set amount of my time.” Martin intentionally prioritizes his health and wellness, which helps him manage stress.

He makes time for activities like reading, walking, and watching a favorite show 36 / R+W / 02.25

with his wife. “Stress is huge in this business,” he notes. “You’ve got to assess where your stress is coming from. Write down everything you need to do and prioritize it.” Josiah’s approach to setting boundaries also extends to his team. He’s created a family-friendly culture at Limitless Auto Center, understanding that his employees also have personal lives and family responsibilities. “I’m family-centered, and I’m flexible with the needs of families,” he says.

3. Leverage Support Systems One of the pivotal moments in Martin’s journey was when he began working with business coach Rick White, managing partner of 180Biz Solutions LLC . “Rick helped me set up the business to run without me,” Martin says. “That’s been critical.” White says that one thing that sets Martin apart from other younger shop owners is his willingness to implement new ideas genuinely. “I’m finding the shop owners reaching out for coaching to be younger today, and that’s amazing.” says White. “They aren’t getting jaded by their experiences like so many shop owners have done in the past. Asking for help and guidance doesn’t have the negativity surrounding it as it did for older shop owners, many of whom still need help but have either given up on their dream or are still trying to figure it out on their own.” Business owners of-

ten start their ventures seeking freedom but quickly become trapped by endless responsibilities. Martin said that working with a business coach helped him to visualize creating a business that doesn’t rely solely on the owner, which is essential for long-term sustainability. Martin also leaned on nonprofit organizations like the Child Organ Transplant Association, which helped fund his family’s stay during his son’s transplant. Building a network of support, both personally and professionally, has been key to managing his dual responsibilities as a business owner and a father.

Balance Requires Intentionality Josiah Martin’s story highlights that achieving a work-life balance is an ongoing process that requires intentionality and effort. It’s about recognizing what truly matters and setting boundaries to protect those priorities, which involves self-awareness. “You have to be honest with yourself,” he says. “Know your priorities and stick to them. Your family should come first.” Martin has found a way to grow his business while ensuring his family remains at the center of his life by being proactive about time management, setting boundaries and leaning on support systems. His story is a powerful reminder that it’s possible to thrive in work and family life–with the right strategies.

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+1 410.988.6409 contact@autotraining.net www.autotraining.net Scan the bar or visit www.autotraining.net/path-to-profit *These figures are calculated by taking the average performance achieved by all ATI shops as tracked from their financial statements.

Savings, rebates and profit lift vary by ATI shop. Profit lift requires minimum 12 months in ATI re-engineering program. Results may vary.

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T O O L B OX / C A S E S T U DY

CUSTOMER APPRECIATION A successful customer loyalty program can be as simple as downloading an app

BY TESS OWINGS

02.25 / R+W / 39

T O O L B OX / C A S E S T U DY

The average smartphone user has between 60 and 90 apps installed on their phone, according to recent data collected by Kurve.

Go ahead, open yours up and count. Now, break it down even further and count just the business apps. That’s a lot, isn’t it? Now, categorize them. Most of us have the big ones, like Amazon, and then a few retailers that we frequent.

Food is another very common one.

Service apps, like healthcare, also have a place on most people’s devices. An app that’s not very common? Auto repair.

Unless of course you happen to be a customer of Barebones Automotive, a two -location repair shop in Texas owned by John Blanton. Blanton launched a customer loyalty app in August that attracts roughly 100 new subscribers per month.

BACKSTORY: Throughout his career, Blanton worked for various shops and dealerships before getting his Bachelors in Business Administration and Finance from Sullivan University. In 2011 he founded Barebones in Denton and opened a second location in Krum in 2021.

PROBLEM: The idea of a punch card or blasting his customers with emails and texts never appealed to Blanton, so he never put a customer loyalty program in place.

That all changed, however, when he attended a convention and met Jeremy Glassco, founder of AppFueled (See Breakout Box: 10 Customer Loyalty Program Pitfalls).

SOLUTION: The app appealed to Blanton and he signed with the company and launched the app in August 2024.

Rather than having to dig around for a punch card, customers simply open up their app during their appointment and have all the necessary information ready at their fingertips. The app has already 40 / R+W / 02.25

been incredibly popular and has attracted roughly 100 customers per month and is as easy as scanning a QR code that’s located near the front desk.

The app costs $24.99 per year, but Blanton offers a coupon that gives customers the first year for free with two free state inspections included. So, even after the first year has ended, the membership pays for itself with the required state inspection and then more than pays for itself with the added bonus of 10% off for parts and labor for every repair that’s done and a 5% toward future repairs for up to $50 off. Breaking that down, if you have a $500 repair, you’d get $50 off of that repair and $25 off for a future repair. On top of that, you get $15 off on your birthday and you can collect stars for doing certain things within the app and redeem those stars for special rewards, like a free oil change.

Deals like that make it a no brainer for customers and the ease of an app also appeals to the majority of Blanton’s customer base. The coupon allows customers to try for free for a year and lets them decide for themselves whether or not they want to continue with it.

AFTERMATH: As of the middle of January, nearly 800 customers have signed up for the app. Blanton says that in this industry, there’s not a lot of customer retention through mailers and texts, so he thinks the app is a great idea. Apps aren’t for everyone, but in this day and age, they are for the majority of customers.

Launching in August, the app is still relatively new, but Blanton says they’ve received positive feedback and many customers have already come for their second and third trips since downloading the app.

TAKEAWAY: For shop owners that aren’t using an app -based customer loyalty program, Blanton says that they need to get with the times or be left behind.

10 Customer Loyalty Program Pitfalls Having a customer loyalty program is great– but only if it’s effective. Many shops have a program just for the sake of having one and it’s not actually doing them or their customers any favors. Jeremy Glassco, founder of AppFueled, shared what he has seen be the most common mistakes that he’s seen business owners make with member programs.

Don’t let your program fall into any of these categories:

1.

It is not simple

2. It is not customer driven 3. It is not customer managed 4. It is not easy to perceive member value 5. It has no easy renewal or recurring option 6. It is not enticing enough to get immediate action 7. It is not engaging enough to disrupt consumer behavior 8. It does not solve pain points or give real value to members 9. You did not factor in the cost of the membership into your margins 10. You are not tracking success, don’t monitor staff, and didn’t set goals If your program falls into even one of these categories, it may be time to re-evaluate.

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C O L U M N / S I LV E R S T E I N

THE 35,000-FOOT VIEW

FIVE WAYS TO KEEP HEALTHY FINANCES

BY R . “ D U T C H ” S I LV E R S T E I N

If you’re planning on going away

have a thorough understanding of your numbers and what you can afford.

for vacation this year there’s a pretty good chance you’ll be boarding a plane to do it. Before boarding you’d correctly assume that your captain would check the paperwork to ensure that the plane was airworthy and that there is sufficient fuel on board for the trip including any contingencies that might be encountered including the weather enroute and at the destination.

You make these assumptions because they are reasonable and by performing these tasks the likelihood of reaching your destination safely increases. And yet shop owners who are acting as the captain of their own businesses routinely fail to perform the same type of due diligence for their business.

By the time you read this it will be February or March and many shop owners won’t have created a budget.

I was a shop owner for over 26 years, I get it. It’s easy to ignore finances when you’re busy fixing cars, dealing with an ever-increasing number of crappy parts, employees, and customers issues. But failing to create a budget can lead to serious cash flow problems, missed opportunities, and in the worst case; bankruptcy.

If you want to get a grip on your shop’s finances and ensure you’re not just wasting your time spinning your wheels here are the top 5 financial mistakes auto shop owners make every day and how to avoid them.

Remedy There’s a motivational poster I saw decades ago that read: “Successful people do that which they don’t want to do when they don’t want to do it.” Make creating a budget and tracking your expenses a priority. There’s ample software available to help you create a budget and it need not be expensive.

1. NOT CREATING A BUDGET AND STICKING TO IT When I was a pilot I constantly cross referenced information to ensure that I was on the right course and we would arrive at our destination with the right amount of fuel.

Many shop owners prefer to “fly blind.”

They “manage their finances by checkbook.”

They look at their checking account balance at the end of the month and if there is more at the end of the month than there was at the beginning, they figure all is good. This is dangerous. By not monitoring your cash flow you often lack the resources to handle unexpected emergencies.

4. DISCOUNTING WITHOUT A PLAN Discounting is a pretty contentious topic in our trade. I’m not going to discuss its appropriateness now, perhaps that’s a topic for a future column. I will, however say this; if properly planned and executed by those who are keenly aware of their numbers, discounting is an effective tool to increase revenue and profit.

In my experience, however, discounting is frequently used by owners who haven’t a grasp of the cost of doing so and they hemorrhage money.

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.

Remedy Don’t employ discounts until you

dutch@dutchsgarage.com

42 / R + W / 0 2 . 2 5

2. FAILING TO SAVE FOR THE UNEXPECTED If you’ve been in this business for any length of time then you know that things can and do go sideways in a minute. Equipment breaks, the hot water heater dies, a parts problem hits at the worst time or there is an unexpected slow down and you find yourself pressed for cash, which can result in making poor decisions like borrowing money to meet your obligations.

5. NOT UNDERSTANDING THE IMPORTANCE OF MANAGING CASH FLOW There’s an expression her in the South “It’s not what you make, it’s what you keep.”

You can ruin a really great business by not monitoring your cash flow. If you consistently have “too much month at the end of the money,” you’ll eventually kill your business.

Remedy Keep track of your expenses and don’t let your clients get into arrears. Monitor your receivables weekly. Discipline is a key to your business’s long-term financial success. Creating a budget and understanding cash flow will help ensure you reach your financial destination.

Remedy Force yourself to save for a rainy day in a separate bank account. Your target is three to six months of operating expenses.

3. FAILING TO SAVE FOR TAXES, ESPECIALLY SALES TAX I’ve lost count of how many times I’ve heard of owners that have gotten in hot water with the IRS or their State because they didn’t pay their State Sales Tax, Payroll Taxes or their Federal Income Tax. Remedy Same as number 2: force yourself to deposit that money in a separate account.

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