THE POWER OF TECH AND TALENT
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Helping entry-level technicians integrate in
The impact of tariffs
Understanding the valuation of your shop
The power of empathy in customer service
Using
BY IVAN RIOJA-SCOTT
KACEY FREDERICK
Laughs that last: how humor can drive customer engagement in your auto shop
to selling big jobs
Labor rate: the other side of the
THIS OE FIX™ IS THE ONLY REAL FIX.
The oil filter adapter on millions of Chrysler, Dodge, Jeep and Ram V6-powered vehicles often leaks oil when its plastic housing warps from harsh underhood conditions. As the plastic eventually degrades from heat and chemical exposure, it can even crack from simply tightening the oil filter cap during oil changes. When it fails, replacing it with an OEM housing could mean the same issues again in the future.
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THE MINDSET OF EXPOSURE
BY IVAN RIOJA-SCOTT
During my formative years , I experienced a bicultural upbringing. Growing up between Tucson, Arizona, and Madrid, Spain, I was exposed to vastly different cultural, linguistic, and social nuances. Far from being encumbered by this duality, our family flourished, readily integrating ourselves into diverse modes of life. We were, and remain, fortunate to have cultivated a mindset of open exposure, an understanding that myriad perspectives on life’s scenarios exist, many yet undiscovered. Indeed, the principle of exposure acts as a powerful catalyst for growth, particularly within the dynamic landscape of the business world. Witnessing firsthand the diverse strategies employed by industry peers can illuminate previously unseen pathways to innovation and efficiency. Delving into their decision-making processes provides a crucial understanding of the underlying philosophies that drive success. Furthermore, observing the tangible execution of concepts in varied settings can spark fresh perspectives and inspire novel approaches within one’s own enterprise.
This act of learning through exposure, however, presents a tangible dilemma for busy shop owners. Their days are already brimming with the immediate demands of running a business, leaving little room for exploration. The prospect of dedicating valuable time to activities with uncertain returns can feel like a significant gamble. It requires a willingness to step outside the familiar, to potentially challenge established routines and even question the very foundations on which their business is built. This leap of faith, though potentially transformative, demands careful consideration and a belief in the long-term benefits of broadened horizons. However, it’s important to note that
exposure doesn’t require relocating family and business to a country across the globe (while some people may be tempted by this idea). It can be as accessible as attending a conference or webinar or listening to a podcast. Even simpler is walking to a nearby shop and initiating a conversation—yes, a face-to-face exchange in which we can actively listen to someone else and understand their vision through their experience.
The key lies in embracing these readily available avenues for learning and connection. These small, deliberate steps can significantly broaden our understanding of the industry and foster a more exposure-driven approach to our own operations, even if the exact benefits aren’t immediately clear.
Hopefully, we can continue to find ways to expand our exposure, even if we don’t really know what that will bring for us.
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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
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HELPING ENTRY-LEVEL TECHNICIANS INTEGRATE IN YOUR SHOP
Uncover effective strategies for recruiting and developing entry-level technicians in the auto industry
BY KACEY FREDERICK
There’s a growing need for people entering the industry. For many shops, balancing the need for seasoned technicians with onboarding entry-level technicians can be challenging. However, investing time in developing newcomers acts as an investment in the long-term health of your business.
Phil Webster, owner of Webster Tire & Auto Service in Teutopolis, Illinois, has always emphasized recruiting and training young technicians entering the
field. Most of his technicians are in their early 20s, and he wouldn’t have it any other way.
The Right Way to Recruit
Webster has an extensive hiring process. Applicants first complete a 10- to 15-minute online survey to assess their personality, demonstrating the level of commitment Webster seeks from potential team members.
“When someone applies, are they going to do a simple step of, ‘Hey, here’s a survey that I need you to take?’ That’s part of my process,” explains Webster. “If they can’t spend 10 minutes taking a survey or following those instructions, that tells me they’re not very interested in putting in the work to get the job.”
It’s essential to use multiple channels to reach potential talent, including online job postings, networking with parts stores and tool truck drivers, and exploring state-funded training programs that can help offset hiring costs.
Webster is involved with the community by teaching driver’s education classes
at schools, participating in career fairs, and more, allowing him to identify and encourage potential auto industry professionals—be they technicians or many of the other roles needed in the service industry.
“There are also sales jobs, accounting jobs. There are a lot of different jobs available that you might not consider when you think about automotive. So we approach it that way,” says Webster.
Webster’s shop provides an in-house apprenticeship program, which plays a significant role in helping entry-level technicians grow comfortable in a shop environment. The program lasts about two weeks, during which an A-level technician provides training and guidance. Technicians are provided tools they can keep if they stay on with the shop.
The business also participates in a local program where 15 high school students rotate through five different local auto businesses, including auto body, detailing, and a salvage yard. They spend three weeks at each business, learning basic functions. During that time,
Webster’s shop teaches them about tires, alignments, and brakes.
“It gives them good options to feed right into our shops from that, because they get several weeks working in the different areas of the business,” says Webster.
In Illinois, resources are available to fund such practices, helping pay for 75% of technicians’ wages while they’re in Webster’s training program.
Don’t Throw Your Techs to the Wolves
Once a technician is brought into the fold, Webster remains attentive. On their first day, he sits down with them and shares his own story of getting started in the industry. Then, he gives them a book—“How to Win Friends and Influence People” by Dale Carnegie—along with a special note.
“I have a little stamp in the front of that book. It says, ‘A gift for your brain, from Phil Webster,’” he says. “Because I try to pour into them the fact that your mindset and what you put in your mind is going to affect the outcome and results
of everything you do. That’s how I try to get people believing in what we’re doing: that we’re helping people and changing their lives by fixing their car.”
At Webster Tire & Auto Service, most of the technicians are under the age of 25, and it’s no coincidence. With a two-year auto tech program at the local community college, Webster pays for technicians to pursue education there while working at his shop. This is also supported in part by state-funded programs.
Training technicians is undoubtedly an investment for a shop, but it can pay off significantly, even for just one apprentice. Within six months, Webster has trained individuals inexperienced with automotive work to perform C-level tasks such as tires, brakes, suspension, and alignments.
“If you have the time to work with them, then you can quickly have a guy that can turn 20 or 25 hours within three to six months. Then he’s bringing in the billed hours to pay for himself and maybe making the shop some money at that point,” says Webster.
Straightaway Tire & Auto Launches Employee Assistance Program for Unexpected Hardships
Straightaway Tire & Auto has launched an employee assistance program to provide financial relief to team members facing unexpected hardships, as shared in a recent press release.
The Straightaway Assistance Fund for Employees offers direct grants of up to $5,000 for scenarios including housing emergencies, major vehicle repairs, medical expenses, and educational pursuits not covered by employer funding.
The board overseeing the program is made up of representatives from each of Straightaway's five founding brands, alongside platform leadership, the company said.
Funding for the program comes from a combination of Straightaway funding, vendor sponsorships, and voluntary employee donations. The company is also offering a 2:1 match of up to $5,000 for employee-led fundraising efforts.
Current employees, their family members, and former employees who left in good standing within the past 12 months from any of Straightaway’s over 65 locations across seven states are eligible to apply for SAFE assistance.
“We created the SAFE Foundation to invite participation from a wide range of partners who share our belief that supporting people during times of hardship is simply the right thing to do,” said Cameron Chernikow, chief customer officer and president of the SAFE board. “As we launch the SAFE Fund, we're especially highlighting to our vendor community in particular how meaningful this initiative is to us and that this is an important part of doing business with Straightaway, and we’re incredibly thankful and encouraged by the support we’ve received thus far.”
Auto Care Association Releases Auto Parts Tariff Calculator Tool
The Auto Care Association has launched a tool for shops to calculate potential tariff costs they may face on parts, as shared in a recent press release.
Available exclusively for ACA members, the Auto Parts Tariff Calculator tool will help shops determine which tariffs apply to them, such as Section 301 tariffs on China, International Emergency Economic
Powers Act tariffs, reciprocal tariffs, Section 232 tariffs on auto parts, and Section 232 tariffs on steel and aluminum.
The calculator also provides a stepby-step process to determine potential tariff exposure based on stacking rules, exemptions, and product-specific considerations.
“The recent rounds of tariffs on automotive imports have introduced additional complexity to supply chain planning and cost management,” said Lisa Foshee, ACA’s senior vice president of government affairs and general counsel. “U.S. automotive companies are reviewing sourcing strategies and production logistics to maintain operational efficiency and meet regulatory requirements in a shifting trade environment. We are pleased to be able to offer this new tool to our members to simplify the process.”
US to Make Certain Exceptions for Tariffs on Automotive Sector
U.S. President Donald Trump will be rolling back some of his proposed tariffs on the automotive sector, reports Reuters.
The news follows a letter sent last week by a coalition of U.S. auto industry groups representing GM, Toyota, Volkswagen, Hyundai, and others, urging against a 25% tariff on imported auto parts.
“Most auto suppliers are not capitalized for an abrupt tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” stated the letter. “It only takes the failure of one supplier to lead to a shutdown of an automaker's production line.”
Through an executive order, the U.S. will provide credits and relief from other levies on parts and materials. The 25% vehicle tariffs will offer credits for up to 15% of the value of vehicles assembled domestically, which may be applied against the value of imported parts.
A senior administration official said this would lead to automakers importing duty-free parts worth approximately 3.75% of the sticker-price value of domestically produced cars sold in the first year, and 2.5% in the second year. Retroactive to April 3, the benefit will be phased out in its third year.
In addition, autos and parts subject to these tariffs will be exempt to other tariffs, including 25% duties on Canadian and Mexican goods, 25% levies on steel
and aluminum, and 10% duties on most other countries. Duty-free exemption is also offered to North American parts compliant with the U.S.-Mexico-Canada trade agreement.
Tariffs on Chinese parts will remain in place, though, and will still face tariffs of at least 145%, although as of May 12 a 90-day hiatus on reciprocal tariffs was announced.
The move has been heralded by automakers, though some anxiety remains in the industry, noted Lenny LaRocca, KPMG’s U.S. auto industry leader.
“Automakers would welcome any exemption, but the volatility continues with the trade policy uncertainty,” said LaRocca. “As we have seen, tariffs can be proposed and revised on short notice. That also doesn't change the broader business strategy questions facing automakers.”
Toyota Owner Claims Vehicle Data was Sold to Third Parties Without Consent
A Toyota owner is seeking class-action status for a lawsuit alleging the automaker collected and sold his data to third parties, according to Car Scoops.
The plaintiff claims that Toyota, Progressive, and Connected Analytic Services are collecting driver data to justify increased premiums on auto insurance policies.
Toyota vehicles have had technology to track driving habits since model year 2018. The plaintiff’s 2021 RAV4 XLE in particular was equipped with a ‘telemetry’ tracking device, collecting info on location, fuel levels, mileage, speed, tire pressure, window status, and seatbelt status.
The plaintiff’s lawsuit was prompted by an incident this past January, when signing up for insurance with Progressive. Though he opted out of its data sharing program, he then received a notice that Progressive had his driving data as recently as Jan. 20, 2025. He was told by Progressive that this data came from Toyota.
When the plaintiff reached out to Toyota, the company said he had signed up for a trial program to share driving data when he purchased his vehicle, but he claims he was never made aware his data would be sold to third parties.
The lawsuit was made in Texas, with the plaintiff now seeking class-action status.
THE IMPACT OF TARIFFS
Discover how auto repair shops are adapting to increased costs and pricing pressures due to tariffs. Learn about the impact on supply chains and regional variations in the industry.
SOURCE: IMR ENDEAVOR BUSINESS
The recently imposed tariffs on foreignmade auto parts are starting to trickle down to auto repair shops. Smaller shops are finding it more difficult to maintain pricing—passing the extra cost to the customer, while larger shops are able to absorb a higher percentage of costs.
Business Operations Affected by Tariffs
Overall, 39% of shops reported some impact from tariffs, with the remainder (59%) experiencing no effect. Cost increases were the most cited issue, affecting 38% of shops, particularly those with eight or more bays (74%). Larger shops with four to seven bays also noted cost pressures (45%), while smaller shops with one to three bays reported a lower rate (16%). Other changes impacted 1% of shops, with no significant issues like part unavailability or lower customer demand noted.
Pricing Strategies Shift Due to Tariffs
Tariffs influenced pricing for 41% of shops, with 37% raising product prices because of cost increases—most prevalent among shops with eight or more bays (70%). Larger shops with four to seven bays followed at 44%, while smaller shops with one to three bays saw 17%. A smaller 3% absorbed costs to maintain prices, and less than 1% lost customers because of price changes, with no influence reported by 59% of shops overall.
Supply Chain Challenges Emerge
Supply chain effects were reported by 26% of shops, with higher shipping costs impacting 20%—a notable 63% among shops with eight or more bays, 21% for four to seven bays, and 5% for one to three bays. Part shortages affected 2%, and shifts in cus-
Impact of Tariffs on Independent Repair Shops by
Size (April 2025)
tomer purchasing behavior impacted 3%, with larger shops that have four to seven bays feeling these effects more (4% for both). The majority (73%) reported no supply chain issues, with smaller shops with one to three bays at 88%.
Regional and Size Insights
The data highlights disparities by shop size: larger shops with eight or more bays were hit hardest, with 74% facing operational costs, 70% adjusting prices, and 63% dealing with shipping costs. Smaller shops with one to three bays showed resilience, with 81% and 88% reporting no impact on operations and supply chains, respectively. These findings suggest tariffs may disproportionately challenge larger operations with greater part volumes. Alternatively, larger shops may simply be more aware of pricing impacts based on volume and reporting practices.
While tariffs have not universally disrupted independent repair shops, cost increases and pricing adjustments are significant concerns, especially for larger facilities. IMR remains committed to tracking these evolving tariff trends to provide timely insights in an ever-shifting landscape.
Understanding the Valuation of Your Shop
Discover the importance of EBITDA, balance sheets, owner addbacks, and more in maximizing the valuation of your business for a potential sale, as explained by Jack Paeglow.
BY IVAN RIOJA-SCOTT
Jack Paeglow is the channel partner manager at Kaizen CPAs + Advisors, specializing in accounting and tax services for independent auto repair shop owners. With a lifelong passion for cars, Paeglow brings a professional background in accounting, finance and business development.
Here, Paeglow talks about some of the main aspects to take into account when getting your financials prepared for a potential sale.
As told to Ivan Rioja-Scott
When it comes to selling your business , a large part of the valuation hinges on its EBITDA. There are numerous small decisions on financial statements that impact directly and influence that valuation number, specifically the multiplier you’ll receive based on your EBITDA.
“So, what is EBITDA? It stands for
earnings before interest, taxes, depreciation and amortization, and it’s essentially your operating income,” Paeglow says.
“On your financial statements, you’ll typically see sales or income, followed by cost of goods sold, which leads to your gross profits. Subtracting your operating expenses from gross profits gives you your operating income. Interest, depreciation, amortization and tax expenses are then deducted after operating income.” Therefore, EBITDA is a multiplier of your operating profits. For auto repair shops, this EBITDA multiplier can range from about 2.5 to 3.5 times the annual operating income.
CLEAN AND CLEAR FINANCIAL STATEMENTS
Business owners often zero in on the income statement, likely because it directly reflects profitability. However, for
someone considering buying a business, the balance sheet is just as crucial, if not more so, as it reveals the company’s financial health and underlying assets and liabilities.
I think business owners sometimes overlook the balance sheet, focusing more on the profit and loss statement. While highlighting consistent revenues is key on the profit and loss statement, especially explaining any fluctuations— like the typical January and February slowdown for an auto shop followed by a spring and summer surge—keeping the balance sheet up to date is equally vital.
EBITDA AND A THREE-YEAR PERIOD
At this stage, if someone is considering selling their business, there’s a real need to have complete financials for the past three fiscal years, along with up-to-date
figures for the most recent quarter.
The most important factor in the valuation for sale of a business is the EBITDA multiple. This multiple exists as a range, and that range will be significantly lower if potential buyers lack confidence in the financial figures that shops may present.
A well-substantiated financial picture can lead to a more favorable multiple. “For example, an auto repair shop’s EBITDA multiple might typically range from 2.5 to 3.5. It could be potentially higher or lower depending on various factors,” Paeglow says.
Beyond just clean and accurate financials, cash flow statements are important if available. Knowing what cash a potential buyer can utilize or withdraw from the business at any given time is crucial, as this will also impact the valuation multiple you can achieve.
OWNER ADDBACKS
“Forgetting about owner addbacks is a really easy mistake to make, or perhaps overlook entirely,” Paeglow says. An owner addback is an expense or compensation a business owner takes that a typical buyer or management team would not incur. So, if the subsequent buyer intends to take profit distributions rather than drawing an owner’s salary, that’s where the relevance of those addbacks becomes apparent.
Addbacks can significantly skew a proposal or valuation, perhaps even more so than other factors. Therefore, ensuring the accuracy of what’s included and excluded is crucial.
On the flip side, if you’re working as a de facto general manager, wearing multiple hats and putting in significant hours, but aren’t recording a salary for that role, that general manager’s salary needs to be added back into the expenses. These adjustments, though seemingly minor, can significantly impact the financial picture.
THE DIFFERENCE BETWEEN “BOOK” AND “TAX” DEPRECIATION
That’s a nuanced area, and the approach will vary significantly. It’s also important to distinguish between tax depreciation and book depreciation. “Tax depreciation is the method used for tax purposes, while book depreciation reflects the as-
set’s actual value,” Paeglow says. “If a business has a $10,000 piece of equipment and can write off 80% in the first year for tax, only $2,000 remains for tax depreciation in subsequent years. However, the book value might still be around $9,000, more accurately representing its worth.”
Accounting software depreciation typically captures only the tax depreciation aspect, and the fixed asset schedule is often based on this, not the book value. So, the type of equipment matters. A new laptop, for instance, might be almost fully depreciable in the first year. Similarly, vehicles can have different depreciation schedules depending on factors like gross vehicle weight, referencing concepts like the “chicken tax.” A company’s loaner vehicle fleet represents significant assets. Tracking the fair market value of these vehicles over time is important because they can be sold for capital. Book depreciation reflects this value, which is often of interest to potential buyers.
STAFF AND PAYROLL CONSIDERATIONS
From a financial statement standpoint, a crucial area to consider is staff and payroll. This encompasses a wide range of factors that vary depending on the type and size of the operation. Key questions to address include the number of staff on payroll, their specific roles, and whether there’s a need for additional personnel. Understanding the compensation methods, the key staff members and their responsibilities, and the details of the wage and benefits structure is also essential.
“While turnover rates are a secondary consideration, providing data or key performance indicators related to staff retention can significantly strengthen a business proposal or valuation,” says Peaglow. In newer businesses, where roles might be less clearly defined, particularly if the owner-operator is still actively involved in various aspects of the business such as service and accounting, a thorough understanding of these staff and payroll elements is particularly important.
DEBT AND LIABILITIES
Beyond assets, it’s important to consider the company’s debt and liabilities. “Your debt’s going to be scrutinized very, very
heavily. It’s going to be one of the key factors for your valuation of your business,” says Paeglow.
While the specific amount will vary, ensuring the accuracy of these balances is crucial. Furthermore, the nature of the debt carries significant weight. For instance, an SBA loan used for capital improvements like adding service bays and lifts presents a different financial picture than a maxed-out credit card used for day-to-day operating expenses.
Jack Paeglow is the channel partner manager at Kaizen CPAs + Advisors, where they specialize in providing accounting and tax services tailored to independent auto repair shop owners. With a deep-rooted passion for cars, Jack grew up immersed in the automotive world but has a professional background in accounting, finance, and business development. When not working, he’s usually found at a car show, the local dirt track or in his garage working on the latest project.
JPaeglow@KaizenCPAs.com
Jack Paeglow Channel Partner Manager, Kaizen CPAs + Advisors
MEASURE, MANAGE & MASTER
The Power of Empathy in Customer Service
BY KATHLEEN CALLAHAN
Continuing our series on exceptional customer service, let’s dive into one of the most powerful tools you have, empathy. Last month, we explored the impact of tone in communication. This month, we’re taking it a step further with empathy. This is an essential skill for creating positive, long-lasting relationships with your clients and even those around you. Empathy is more than just understanding someone else’s emotions. It’s about connecting with them, acknowledging their feelings, and responding in a way that makes them feel heard and valued. It’s easy to empathize when someone’s sharing good news, but it’s even more important, and often more difficult, when your client is frustrated, upset, confused or simply doesn’t understand. Here’s why empathy is so critical:
• Building trust: Clients feel more comfortable when they know you understand their situation and care about resolving it.
• Difusing tension : A little empathy can turn a challenging situation into an opportunity to demonstrate your dedication to customer satisfaction.
• Strengthening relationships: Clients who feel understood are more likely to return to you for future needs and recommend your services to others.
But how do you practice empathy effectively? Here are some key strategies:
• Listen without interrupting: I’ve previously written about the importance of active listening. When clients are upset or
frustrated, allow them to express their feelings without rushing to solve their problem or speak over them. Sometimes, people just need to feel heard before they’re ready to work toward a solution.
• Acknowledge their feelings: Use phrases like, “I can understand how frustrating that must be” or “I see how that would upset you.” These statements let your client know that you’re not just hearing them, but you’re truly recognizing their emotions.
• Offer reassurance: Clients want to know you’ll work with them to resolve their concerns. For example, “We’re here to help you get this fixed, and we’ll do everything we can to make it right” can provide comfort during stressful situations.
• Stay calm and nonjudgmental: When a client is upset, your first instinct might be to defend yourself or your business. Resist that urge and focus on keeping your response neutral, calm, and understanding. The goal is not to “win” the conversation but to make the client feel better about their experience with you. This applies to responding to online reviews as well.
• Follow through: After empathizing, it’s important to take action. Promise and deliver solutions that align with what the client needs. When clients see you’ve truly heard them and acted on their concerns, trust is built and relationships are strengthened.
Remember, empathy is a skill you can continue to develop, and it’s not just valuable in business. It’s something that will benefit all of your relationships—personal and professional. Like any muscle, the more you practice, the stronger it gets.
Kathleen Callahan has owned Florida’s Xpertech Auto Repair for 20 years. In 2020, she joined Repair Shop of Tomorrow as a coach to pursue her passion for developing people and creating thriving shop cultures. Callahan is the 2018 Women in Auto Care Shop Owner of the Year, nationally recognized by AAA for three consecutive years, testified for Right to Repair on Capitol Hill, and is vice chair of Women in Auto Care.
kathleencallahanfl@gmail.com
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THE POWER OF TECH
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Norwood Auto Service effectively manages workflow in its dual-location setup, optimizing space, staff allocation, and service specialization to enhance customer satisfaction and business performance
BY IVAN RIOJA-SCOTT
Many auto repair shops located in bigger cities face the challenge of adapting their workflow to the layout of their location. This is even more prevalent in inner-city shops that have either adapted older buildings to suit their needs, repurposed a building into an auto repair shop, or adapted a shop from the standards of yesteryear.
This is the case for Norwood Auto Service. Established in 1971, the shop has become a trusted fixture in Chicago’s Norwood Park neighborhood, a community where local relationships and reliability are paramount. In the late 1980s, Fred Scheidt took over the business, bringing decades of experience as a mechanic to its operations. In early 2025, his son, Erik Scheidt, assumed full ownership of the shop. While Erik has always been actively involved in the shop, he is not a technician by trade. Instead, he has grown the business by learning from his father’s example and focusing on continuous improvement and innovation.
As a second-generation shop owner, Scheidt has taken Norwood to the next level, increasing automation, raising the average repair order and creating a wellrun dual-location shop.
Mastering Car Flow with a Satellite Location
One of the unique challenges that shops like Norwood Auto Service face is not being able to expand their shop or move into a new location within the same geographical area. This situation required the shop to take up a second location destined only for working on cars, located just down the street.
“Divide and conquer” is never more true than at Norwood Auto Service, where properly assigning work ensures bay time and space are maximized at both locations. The satellite-shop scenario has inherent challenges, and while it represents an opportunity to expand the business, maximizing the workflow in terms of staff and bay flow is key to increasing the opportunity.
“I have two technicians at our satellite location and three at the main location, where the office is. There’s no customerfacing area or desk at the satellite spot,” says Scheidt.
At Norwood, the day starts with an early meeting at the main location at 7:50 a.m. for a morning huddle. Then, the staff breaks out to assign cars. The two technicians heading to the satellite location take their assigned vehicles, or their own if they’re already working on something there. At the shop, they have three loaner cars, plus a “back and forth” car for shuttling vehicles or parts as needed. “It’s not the easiest setup, but it gets the job done,” Scheidt says.
For the longest time, the satellite location primarily served for storage and overflow. Currently, one of the two technicians that work at the satellite location is an A-level technician who handles much of the larger work. If there’s an engine job—though Norwood tries to avoid them—it will be sent to the satellite location. That space has significantly more room, allowing a vehicle to sit on a lift for days if needed. In addition, the satellite location has a general maintenance C-level technician who handles many of the fleet or large vehicle maintenance services. This means Norwood Auto Service must stock a good amount of supplies and parts at both locations—a deterrent sometimes, but necessary.
Larger, more complex repairs are handled at the satellite location, while quicker tasks, such as tire repairs, are performed at the main shop. This division allows each facility to specialize and operate at optimal capacity.
Despite no longer being affiliated with Firestone, the original Firestone sign remains on the main shop’s facade. This signage continues to attract customers seeking tire services, which doubles as an opportunity to get more cars through the shop’s doors.
This operational model has been refined over time, adapting to customer needs and shop requirements. By aligning each location’s capabilities with specific service types, Norwood Auto Service has created a streamlined, profitable system that enhances customer satisfaction and business performance.
Tandem Bays: A Working Challenge
At Norwood Auto Service, the main location’s workshop layout presents an extra set of challenges due to its tandem-style consecutive bay configuration. This design necessitates a higher level of coordination and automation to ensure that vehicles are not blocked, allowing for smooth operations and efficient workflow management.
Managing tandem bays requires meticulous planning to maximize technician productivity while minimizing disruptions.
To address this, Norwood Auto has implemented a strategic approach. “We designate our front bay for larger vehicles or jobs that will tie up a lift for an extended period,” says Scheidt.
This strategy ensures that smaller, quicker jobs can proceed without delay, optimizing the use of available space and time.
Recognizing the dynamic nature of a busy workshop, where vehicles are frequently repositioned, sometimes even stacked, Scheidt emphasizes the importance of constant vigilance and precise coordination. Assigning vehicles to the correct bays is a skill that has been honed over time, ensuring that the workflow remains uninterrupted.
To further enhance efficiency, Scheidt has fostered a culture of direct communication among technicians. Rather than re-
lying solely on management to coordinate movements, technicians communicate directly with each other to determine who will be done first or if someone can wait. This approach allows technicians to have more control over their own workload and ensures that space is utilized effectively.
Incorporating automation systems has also played a crucial role in managing the complexities of the tandem bay layout. These systems help with scheduling, inventory tracking, and customer communication, streamlining operations, and reducing human error. By automating routine tasks, technicians can focus more on complex repairs and customer service, leading to improved productivity and customer satisfaction.
The integration of technology into the workflow has not only improved operational efficiency but has also contributed to a safer and more organized work environment. With real-time data and automated systems, the staff can quickly adapt to changing demands and ensure that vehicles are serviced promptly and accurately.
Going Fully Digital
According to the 2024 Ratchet+Wrench Industry Survey, 87% of auto repair shops use a shop management system, and 63% employ digital vehicle inspections. These tools significantly affect key financial met-
"MY PRIMARY GOAL IS TO PRIORITIZE OUR CUSTOMERS. WHEN WE FOCUS ON TAKING CARE OF THEM, EVERYTHING ELSE TENDS TO FALL INTO PLACE."
— ERIK SCHEIDT, OWNER OF NORWOOD AUTO SERVICE
rics, enhancing operational efficiency and customer satisfaction. Scheidt recalls, “My dad and I used clipboards with keys and hand-wrote tickets. Now, we’re fully digital; we don’t really have any paperwork, unless it’s the invoice.”
Transitioning to a fully digital system has allowed Norwood Auto Service to streamline operations, reducing the time spent on preparing estimates and obtaining work authorizations. This shift has increased the number of vehicles serviced, contributing to higher throughput and improved financial performance. Digital systems facilitate quicker approvals, enabling the shop to handle more customers efficiently.
Implementing digital vehicle inspections has further enhanced the shop’s operations. Technicians can document vehicle conditions using tablets or smartphones, capturing detailed images and notes. This transparency builds trust with customers, as they can review the inspection findings in real time. Studies indicate that shops using DVIs often see a 15% to 30% increase in average repair order value due to improved customer understanding and approval rates. This becomes even more relevant at shops like Norwood Auto Service, where space is limited and the shop configuration requires an additional level of logistical planning.
The Ohio Shop That Exclusively Services Electric Vehicles:
Great Lakes
Great Lakes EV
Great Lakes EV’s innovative technology and expertise is redefining EV service and filling a gap in the industry
BY KACEY FREDERICK PHOTOS CONTRIBUTED BY SUZI MILO
Electric vehicle service is something repair shops across the U.S. are either considering or have already started integrating. However, many worry if there is enough demand for EV service yet.
Great Lakes EV in Dayton, Ohio, isn’t having this problem. The shop has a sole focus on electric vehicles.
Launched just last year, the business is the product of Suzi Milo’s career with Tesla and Pete Milo’s experience in electronics and computer programming. This culminates in an innovative duo defining what EV service looks like in the aftermarket.
A Tesla Expert and an Electronics Whiz
Pete actually did not get his start in automotive but in the entertainment industry, working in lighting design. From there, he went to work in an area referred to as “architainment,” where he handled power control systems, custom lighting systems, designed electronics, wrote software, and troubleshot obsolete power control systems for more than a decade.
“So really an eclectic electronics and troubleshooting background,” Pete says.
His interest in electronics has branched into automotive before, though. His father, an aircraft mechanic, worked with him on a myriad of different projects.
“My dad and I did Subaru swaps and old Vanagons, and I daily drove stupid stuff, like an old MGB,” Pete recalls.
While Pete had much experience working with electronics, Suzi brought to the table an extensive career with Tesla, working in sales, delivery and service for nearly eight years, with duties split between individual contributor positions and leadership roles.
It was during her time at Tesla that she would sometimes encounter diagnostic issues her colleagues were struggling to resolve. She would often present the problem to Pete, who would manage to figure it out, leading Suzi to realize just how valuable his technological skill set is in the world of EVs.
“Pete would just solve it, out of nowhere. He’d be like, ‘Well, did they try this?’” Suzi says. “He has this skill set that works very well with the architecture of these cars.”
Finding a New, Better Way for EV Service
As the end of her tenure at Tesla approached, Suzi had discussed the possibility of her and Pete opening their own auto repair shop together. When she retired from her role in April 2024, they took the leap and pursued shop ownership.
There wasn’t much debate about what kind of shop they would be operating. From the get-go, they were on the same page about just wanting to service EVs. As Suzi explains, it simply made the most sense with the experience and talent she and Pete were bringing to it.
“We wouldn’t be in the automotive industry in any other capacity. We have
classic cars kind of as weird side projects—but it wasn’t a matter of, ‘Hey, we want to open a shop. What kind of shop do we want?’” Suzi says. “It was, ‘Hey, we have this EV skill set and industry knowledge. How do we leverage it now that I’m not at Tesla?’”
Having been in business for just a year, Great Lakes EV is still rapidly evolving. For the past nine months, they’ve operated out of a rented 6,000-square-foot warehouse space, equipped with one bay. The Milos specifically selected this location over something more common, such as a three-bay garage, due to the need for greater wwinternal space when working with EVs.
“When you’re removing a battery pack, you have to have an area almost as big as the car to pull that pack back out and maneuver it into another location to work,” Pete explains. “I can imagine trying to do that somewhere more traditional, like the chains that have a row of garage bays with one lift per garage
bay. And it wouldn’t really work, because then you’d be taking packs outside. And if it’s raining or cold ... no, you gotta keep that inside.”
As they develop the shop, Suzi and Pete have co-opted the “first principals” method promoted by Elon Musk, which entails adopting what has been working in the industry and looking for ways to improve things that aren’t.
“We’ve been evaluating every decision from that perspective, and not just doing something because that’s the way it’s always been done,” Suzi says.
Possibly the biggest example of this is how Pete has developed all the shop’s internal software, consisting of their own custom inventory system for parts and a custom ticketing system, all connected to the same database. It was their answer to existing commercial products not offering them exactly what they needed.
Pete saw a way for the shop to utilize old Tesla software, identify the needed
specifications and order the serial hardware from China, rather than spending the money on an expensive scan tool.
“It’s basically all dongles, cables and laptops. We don’t even really use traditional scan tools. They’re just not useful to us,” Pete says.
Pete and one of the shop’s technicians even work together to construct custom tools unique to Great Lakes EV’s needs, such as motor stands, jigs and extraction tools for bearings.
The shop has learned to be self-reliant and highly innovative as it seeks to pave a new path and fill a gap in EV service that OEMs can’t accommodate. This largely involves work on motors and batteries, as well as an entire parts teardown operation that supplies them with parts for older Teslas. This is an especially powerful practice, allowing the shop to keep parts in stock that Tesla itself does not even have on the shelves.
Suzi and Pete are looking to make a greater impact beyond just launching
a successful shop. They want to play a role in preparing the industry at large for EV service, with plans to conduct both front- and back-of-house training in EV service for other shops.
Ultimately, vehicles are more electric and digital than ever. Even internal combustion engines are adopting complex electronic systems that technicians and shops will have to be ready for. The Milos realize that there is a compounding need for more individuals who can not just handle these vehicles but who can see ways to innovate processes as well.
“The biggest gap is that these skill sets are actually very, very different. And we’re trying to get creative about how to recruit people in the IT side of things, the electronic side of things, and not just the traditional automotive background—and then how do we give back to the community and bring more of these skills to the auto industry?” Suzi says. “It’s a really big puzzle.”
LAUGHS THAT LAST:
HOW HUMOR CAN DRIVE CUSTOMER ENGAGEMENT IN YOUR AUTO SHOP
Shadetree Automotive’s fun and humorous marketing tactics have set them apart in the competitive auto repair shop market
BY LEONA SCOTT
In an industry often associated with technical jargon and unexpected repairs, a little humor can go a long way. For shop owners like Tom Lambert and Braiden Reich, his marketing manager, leaning into lighthearted, funny marketing has not only caught attention but helped build loyal customer relationships that keep business booming.
Humor That Hits Home
When customers first saw the headline “Your wife is HOT!” on a Shadetree Automotive ad campaign, many did a double-take—and then smiled. It was a playful reminder to get their air conditioning checked, and it worked.
“We had a lot of people talk about it,” says Tom Lambert, a second-gener-
ation owner of Shadetree Automotive, a three-location Layton, Utah-based auto repair business. “It went over really well. It was memorable, got people in the door, and gave us a fun way to connect with our community.”
The inspiration for Shadetree’s humor-driven approach came from a simple truth: their shop culture is fun.
“We are who we are,” Lambert says. “We like to have a good time, and we treat everyone the same—with honesty and some laughs along the way. Our branding reflects that.”
Fun with Purpose: How to Do It Right
Of course, being funny in business—especially in a traditionally serious industry—comes with a few ground rules.
Humor should never come at someone’s expense. During their quarterly campaign brainstorming sessions, the shop brainstorms carefully but also creatively. Some questions to consider: Is it inclusive? Could it be misinterpreted? The shop runs its ideas through its branding filter to reflect who it is.
Their approach to humor is intentional, not accidental. The team holds quarterly “greenlight” sessions, where they gather around a whiteboard to toss out fresh campaign ideas—many of which involve fun contests, animalthemed posts, or videos that make people laugh while reminding them of routine car care.
The shop’s approach to humor? It’s not just about being funny—it’s about being approachable. They want people to feel comfortable reaching out. A funny post can be a helpful conversation starter.
Humor as a Marketing Multiplier Lambert says they see customer engagement whenever their marketing has a more humorous tone.
“It’s helped with calls and conversations,” Lambert says. “When we do something fun, like a giveaway tied to a funny video or a contest with our taco truck, it creates buzz and brings people in.”
For example, one recent campaign invited customers to come in, chat with a service adviser and receive a voucher for tacos from the taco truck at their shop. “All they had to do was drop their name and phone number,” Reich says. “It was simple and fun, and it helped build connections in a lowpressure way.”
Social media is their primary playground for humor, and Lambert ensures content is consistent and varied. A glance at their social media reveals videos, memes, animal pictures—it’s all part of the strategy to keep the
shop top-of-mind even when customers aren’t actively needing repairs.
Getting Team Buy-In
A humorous marketing approach only works if it aligns with the customer experience. That means staff must reflect the same warmth and authenticity the brand projects online.
“We’re lucky to have a team who has fun and enjoys what they do,” Lambert says. “We’re clear about expectations— we take the work seriously, but we also create a culture where it’s OK to have fun.”
By keeping the internal culture light, goal-driven and collaborative, they’ve created an environment where marketing doesn’t feel like a chore—it feels like an extension of who they are. “We coach organically,” Lambert says. “We talk a lot about tone and presence and making people feel good about walking through our doors.”
Advice to Other Shop Owners: Start Light, Stay True
For shop owners wondering whether humor could work for their brand, Lambert offers a few words of wisdom:
• Know your audience. Start with humor that’s relatable to your local
community and easy to understand.
• Be true to your culture. If your team is already having fun, let that shine through in your marketing.
• Test and tweak. Try light humor in a few posts or emails and monitor how customers respond.
• Get your team involved. Whiteboard sessions or team brainstorms often surface the best, most authentic ideas.
• Stay respectful. Humor should never come at the cost of inclusivity or professionalism. Lambert is clear on their intention with their humor— they’re not trying to be stand-up comedians. They see humor as a way to connect with people more easily.
A Laugh Can Build Loyalty
In the end, Lambert has found that a little laughter goes a long way in building a business. Their shop culture—rooted in authenticity, service and fun—has created a brand identity that stands out in a crowded market.
“We’re not afraid to be ourselves,” Lambert says. “And when customers see that we’re real people who enjoy what we do, they’re more likely to trust us with their cars—and come back when they need us again.”
Tom Lambert, Owner of Shadetree Automotive
SECRETS TO SELLING THE BIG JOBS
Selling major repairs as a service advisor becomes seamless when you combine confidence with genuine rapport
BY TESS OWINGS
It’s a conversation that nobody likes to have, but everyone in this business has to do it—sometimes multiple times in one day. That repair the customer thought would be roughly $200? It just shot to $2,000. Wouldn’t it be great if there were a secret to selling these big jobs? A simple solution to leave you and your customers happier with the entire situation? Victor Broski, service advisor at Newport Motorsports in Costa Mesa, California, may have the answer: Approach it as if you know they’re going to say yes.
Broski recalls being trained at a previous high-end race shop, where he was told a customer would be coming
in the next day for a recommended service that would make a small difference but cost a lot of money. He was told the customer was going to say yes. So, the next day, when Broski spoke with the customer, he did so with confidence. Was the customer for sure going to say yes? Did they know something Broski didn’t? Maybe, and maybe not, he says. Either way, it worked.
“That stuck with me,” Broski says. “That’s something I can apply at any shop.”
Sure, there are a few other keys to getting it right—as Broski will share—but confidence sells.
BACKSTORY
Broski has over four decades of experience working in different shops and holds a degree in speech communication, which has helped him approach customers and understand the art of persuasion and negotiation.
PROBLEM
Broski wasn’t always comfortable selling larger jobs. When he started out, there wasn’t a lot of training available, and he dreaded that conversation just as much as anyone else. Selling a larger job just puts more pressure on the line, making it more difficult.
SOLUTION
“Your mind is racing,” Broski says. “How do I say it? They’re not going to like it. You approach it differently, but you shouldn’t.”
These tips for selling a big job can be applied to any job, but they can help alleviate the stress.
• Build rapport: The sale happens before the selling, Broski says. You’ve already presented yourself and your shop to your customer before you have that conversation. If you’ve made a poor impression, you’re not getting that yes. However, if you’ve taken the time to build trust and create a relationship, there’s a very good chance the customer will really listen to what you have to say, and the probability of the sale is very likely.Broski answers every call at the shop. He always has a notepad next to him to write down the potential customer’s name and anything he should remember. He can then
say the person’s name back to them, which is huge. When someone comes into the shop, he makes sure to engage in conversation and really listen to what they’re saying. If they mention kids, follow up on that. If they talk about a big trip they’re taking and need their vehicle in good condition, ask about it.”When someone wants to tell a story, you listen to it,” Broski says. “When someone is telling a story, their brain produces happy chemicals. They’re talking to a repair shop and they’re happy. Can you imagine that?”
• Show confidence: Here’s Broski’s key: When you approach the customer, assume they will say yes. Have total confidence, and that will rub off on the customer. Your voice, he says, has a tendency to go down if you don’t believe someone will say yes to you, and customers will pick up on that.
• Create a plan: Tell them what their car needs. “I don’t say recommending,” Broski says. “That’s too soft.” Broski lists all the work that was found on the car and categorizes it for the customer in a now, soon, and later way—this is what your car needs today, this is what it will need soon, and this is what can be held off on for a while.”You can do it now or in two or three months—lots of times they do it now,” Broski says. “But they’re the ones making the decision. They love that. They know I’m not trying to just sell them things.”
• Write down what works: Throughout Broski’s career, he’s had plenty of time to try new strategies, and he always writes down what has worked for him. A specific phrase he uses because it’s always been positively received is “I’ll take care of you.”
AFTERMATH
Broski says nine times out of 10, he doesn’t even think twice about selling a big job. “I’d like to say, ‘I don’t get bothered by that phone call—but that’s a stretch,’” he says.
By creating positive relationships from the start and approaching every sale as though they’re going to say yes, Broski says everything has been easier. The call is easier because it increases the chances that a customer will say yes, going home is easier because he’s less stressed out, and overall, everything is just better.
TAKEAWAY
Broski describes his approach to selling big jobs as “a little arrogant,” but that’s the key. Walking into a conversation with a customer with confidence not only makes the seller feel better, it puts the customer at ease because they feel they’re talking with someone they can trust who really believes in the work being sold.
Broski’s mentality is one that can be used by everyone at any shop.
“I’ve got this.”
For many years, Ratchet+Wrench’s Shop Goods section has fostered relationships with vendors and supplied information about products to customers. In 2025, we are happy to continue to do just that. We hope that this issue provides you with the information you need to stay ahead of the current trends in the automotive industry.
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SUPERCHARGING YOUR SUPPLY CHAIN
NEXPART MULTI-SELLER HELPS SHOPS SOURCE PARTS AND TIRES ON ONE SCREEN
Today’s repair shops are faced with many different challenges. With ongoing supply chain shortages, and looming uncertainties around future tariffs, it might be time to take a look at how your shop manages its supply chain.
When you’ve got multiple tabs open checking each of your suppliers websites one by one it can be tedious and time consuming. Meanwhile, that vehicle is up on the lift with a technician waiting on parts. Luckily, there’s a better way. Since 2003 Nexpart has been helping shops find the right parts, fast. Nexpart Multi-Seller customers see real-time inventory, wholesale pricing, and detailed product information all on one screen. With your entire supply chain at your fingertips, you can find parts fast and keep work moving through the shop.
The Largest Parts Network In the Industry
Nexpart has been a long term partner of the aftermarket. They host the largest network of parts suppliers in the industry. Connecting shops to over 53,000 aftermarket parts suppliers, OE dealers, Heavy Duty Suppliers and most recently Tires!
Parts & Tires On One Screen
“We’re very excited to roll our new tire catalog.” Chris Evans, Product Manager for Nexpart said “Tire ordering has been one the most requested features within Nexpart Multi-Seller. Now, shops can see real time inventory and wholesale pricing from ALL of their tire distributors in one quick look-up.”
This new feature connects Nexpart Multi-Seller shops to over 50 North American tire distributors, including big names like ATD, TireRack Wholesale, Tirehub, and others. Nexpart Multi-Seller gives busy shops all-in-one access to the largest network of parts distributors in the industry. “You get a bird’s eye view of your entire supply chain on one screen.” “Find aftermarket parts, OE parts, and now, tires on Nexpart Multi-Seller.”
Getting set up on Nexpart Multi-Seller is easy, you can sign up and configure your suppliers in a couple of minutes. Nexpart Multi-Seller also integrates directly with over 50 shop management system, enabling a streamlined workflow. Get started today at Nexpart.com or email getstarted@nexpart.com
SHAPING PERCEPTION
THE POWER OF ONLINE REPUTATION MANAGEMENT
In today’s digital-first world, your business reputation is no longer just about what people say in person—it’s about what shows up online. Every online review, social media post, or news article creates a lasting impression. Online reputation management is the practice of shaping and maintaining how your brand is perceived across the internet.
Rather than being a reactive tool, online reputation management is a strategic approach. It involves consistently monitoring what is being said about your business, engaging with your audience, and actively promoting the best parts of your brand. It is not about hiding negative feedback, but rather addressing it with transparency and professionalism.
With the right tools and strategy, businesses can stay ahead of online conversations. Platforms like Mention, Google Alerts, and social media management tools make it easier to track mentions across the web. When you know what people are saying, you can respond quickly—whether it is to thank a loyal customer or to resolve an issue before it escalates.
Why does this matter so much? Because people are paying attention. A recent survey from PowerReviews revealed that over 90 percent of consumers read reviews before making a purchase, and more than 80 percent trust those reviews as much as a personal recommendation. That means what others say about your business can influence buying decisions more than even your own marketing.
Positive reviews help your business appear more trustworthy and credible. They also help with search engine visibility, as reviews often include keywords and phrases that make your business easier to find online. On the flip side, negative content can have a real impact. Just one negative article or review can drive away a significant number of potential customers.
That is why online reputation management is essential for long-term success. It gives you a way to steer the conversation, earn trust, and improve your brand's online presence over time.
Here are a few key ways to manage your online reputation effectively:
Monitor mentions:
Keep track of where your business is being talked about—this includes Google reviews, Yelp, Facebook, industry forums, and even blogs or news sites.
Engage with feedback:
Whether it is a glowing review or a critical comment, respond with care. Thank happy customers and work to resolve issues with unhappy ones. People notice when businesses take the time to listen and respond.
Encourage happy customers to share their experiences:
A simple follow-up message asking for a
review can go a long way. Most satisfied customers are willing to leave a review if they are asked.
Share valuable content:
Keep your website, blog, and social channels active with updates, educational posts, and behind-the-scenes content. This helps shape the story people see when they search for your business.
Be prepared for a crisis:
Mistakes happen. What matters is how you respond. Be honest, outline how you are fixing the issue, and follow through on your promises. A thoughtful response can actually strengthen your reputation.
Online reputation management is not about spinning the truth or covering up mistakes. It is about being intentional with how your business shows up online. By staying engaged, owning your narrative, and treating customers with respect, you can build a reputation that drives real business results.
BUILT FOR THE WAY YOU WORK
RUN A SMARTER, SMOOTHER AUTO SHOP – WITH LESS HASSLE
Let’s be real – running an auto repair shop isn’t easy. Between managing appointments, keeping track of parts, handling customers, and making sure your techs have what they need, your day fills up FAST. That’s where Shopmonkey comes in.
Shopmonkey is a shop management and point-of-sale system built to help you run your shop more efficiently – so you can spend less time on admin and more time doing what you do best: fixing cars and keeping customers happy.
A User-Friendly Software for Everyone
Imagine managing your scheduling, invoicing, customer communication, and inventory – all in one place. That’s what Shopmonkey delivers.
Whether you’re a single bay garage or a multi-location powerhouse, we keep everything running smoothly. Designed for shop life, which means your whole team from service writers to technicians can get up and running with ease.
“Shopmonkey is so intuitive. It didn’t matter if you were a shop tech or a front counter service writer – everybody caught on very quickly."
— Bre Braddock, RNR Tire Express Midwest
Everything You Need, All in One Place
Easy Scheduling & Workflow Management
Quickly schedule jobs, track their progress, and assign tasks to techs in real-time. No more guessing who’s doing what or when a job will be done.
Smart Parts Ordering & Inventory Tracking
Order the parts you need – when you need them – with built-in supplier integrations. Track inventory in real-time and avoid “out of stock" surprises.
Better Customer Communication
Send appointment reminders, updates, and invoices by text or email, automatically. Customers love the transparency, and you’ll love fewer no-shows and faster payments.
“Shopmonkey really helped to consolidate everything. We’ve been able to more than double the amount of work we can do with the same amount of people.”
— Casey George, Bus & Truck of Chicago
The
Platform
That Grows With You
Are you running a single-location family garage? Shopmonkey helps you cut down on paperwork, improve customer communication, and gets you back to hands-on service. Or maybe you’re managing multiple locations with plans to expand? You’ll love
being able to centralize operations, share information across shops, and keep everything consistent.
No matter your size, Shopmonkey grows with your business. Get end-to-end control over all aspects of your business from anywhere, any device, at any time.
“You don’t need to have different solutions to solve different problems. Shopmonkey hits it all very well — all the things you need to grow your business.”
— Will Helton, University Auto & Tire
Supercharge Your Shop Today
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35,000-FOOT VIEW
Labor Rates, the Other Side of the Coin
BY R. “DUTCH” SILVERSTEIN
As I write this month’s column it seems as if summer is rushing towards me at autobahn speeds. I can’t explain why it happens but the adage that time seems to speed up as we age certainly seems true. By the time you read this column, the Fourth of July holiday will be upon us, along with ubiquitous fireworks, barbecues, and social gatherings, there could be a popular chorus of “Raise Your Rates!” But now may not be the time to do so. Raising labor rates is typically an easy, effective and painless way to generate more revenue. It certainly seems to confirm another adage that “sales fixes everything.” A higher labor rate can allow us to avoid less undesirable or unprofitable work, while reducing our liability exposure by having the flexibility to reduce car count and risk of employee burnout. By raising your labor rate, you can afford to divest yourself of those customers who cause you the most problems. The name for this is the Pareto Principle, commonly called the “80-20 rule.” One variation of this principle states that 80% of customer complaints originate from the bottom 20% of our customers. In another variation it is said that the top 20% of our customers can provide 80% of our revenue. The higher labor rate allows us to focus our energy and effort on keeping those clients happy while also providing more time to introduce our service to our targeted ideal customer. Based on these attributes alone, it’s easy to see why raising labor rates is so attractive. But don’t kid yourself, there are pitfalls too. A typical dogmatic mindset of many shop owners is that since they have been underpaid for so long when compared to other trades, they are well past due for an increase. They compare their capital expenses for equipment to that of other trades and note that by comparison we have some of the highest expenses but are frequently the lowest paid. Raising labor rates therefore seems entirely justified and long overdue.
One of the many problems with this justification is that these rate increases are frequently arbitrary. They are seldom the result of a thorough analysis of the business financial statements or daily operations. Often times an owner will state that the increase corresponded with inflation, but he or she didn’t perform any meaningful research to determine what that inflationary increase actually was. It’s also not uncommon for coaches to suggest periodic increases on a quarterly or other schedule so that it outpaces actual inflation. In my 26-plus years of shop ownership, I have only heard one coach advise shop owners to not exceed a 9% increase at any one time because a 10% increase would likely yield push-back from customers.
A false assumption made by many shop owners is that there is no point in which a consumer can say no to repairs, especially if not fixing the vehicle means it won’t start, stop, run, or steer. Many shop owners insist that owning a car is an absolute necessity and the customer will simply have no choice but to pay. These thoughts, while emotionally satisfying, provide a false sense of security and are unrealistic. While the customer may refuse the repair at your shop, there’s generally always someone who will perform that repair cheaper. I recently read about the concept of reaching a customer’s “threshold of pain.” This was defined as the point at which prices are raised until customers say no. I believe that point for many shops has been, or very soon will be, reached but not by their own making. It’s no secret that concerns about the economy played a big part in this most recent election. Hastening arrival to that point by raising the labor rate within the next six months is ill advised in my view. According to a recent article in a specialized industry publication, just over half the population is reported to be living paycheck to paycheck unable to afford an unexpected car repair.
What’s a solution? Look within. Instead of looking to raise our rates, let’s commit to the difficult task of seriously evaluating the deficiencies of our current operations and making improvements. By focusing on productivity and efficiency we can retain our current customer base while increasing revenue and customer satisfaction.
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
RWMC GOES WILD WEST RWMC GOES WILD WEST
THURSDAY, OCTOBER 9 • 4:30-7:30 PM
RENAISSANCE PHOENIX GLENDALE HOTEL & RESORT, GLENDALE, AZ
This year’s Ratchet+Wrench Management Conference vendor experience delivers business value and wild west hospitality all in one!
Our Wild West extravaganza features:
• Tons of games and activities
• Delicious southwestern-inspired vittles
• Exciting prize giveaways throughout the night
• Networking with fellow industry professionals in a relaxed, fun environment
OCTOBER 8-10, 2025
SCAN ME!
Giddy-up, partner!
We’re headed to the heart of the Southwest—the Grand Canyon State—for an automotive education showdown like none other.
And you’re invited! (So, hop on your mount and grab your six-shooter!)
You’ll join hundreds of automotive aftermarket cowboys and cowgirls from around the country for three days in the desert at the 2025 Ratchet+Wrench Management Conference at the Renaissance Phoenix Glendale Resort in Glendale, Arizona.
We’ll gather in the town square, where you’ll hear an opening keynote from Kinja Dixon, an author, film producer, consultant, and two-time Stevie Award Winner who was recognized as the No. 1 salesperson in the world.
From there, we’re fixin’ to get you focused on education, growth, and success with three days of instructional programming from 30-plus speakers. You’ll learn about leadership, marketing, culture building, succession planning, revenue growth, communication, shop expansion, and more.
On Wednesday evening, come wet your whistle at our Welcome Reception where you can mix and mingle, catch up with old friends and make new ones (but no mischief, or you’ll have to see the sheriff!).
We’ll pick things back up on Thursday, with more sessions and more networking, as we open up our exhibit hall for a night of rootin’ tootin’ fun at the saloon. You’ll get to meet and interact with our event sponsors and partners, all while having a good time playing games and enjoying good food.
We’ll ride off into the sunset on Friday after a final day of educational sessions and a closing keynote from author, executive leadership coach, and co-host of the Twins Talk It Up podcast, David Brown—also known as “The Evangelist of Authenticity.”
I’d like to invite you to join me at the 2025 Ratchet+Wrench Management Conference in Glendale, Arizona, October 8-10, at the Renaissance Phoenix Glendale Resort in Glendale, Arizona. It’s one you don’t want to miss!
See you there!
Chris Jones Group Editorial Director, Ratchet+Wrench
P.S. Come a few days early and catch the Arizona Cardinals and Tennessee Titans at State Farm Stadium, or drive balls at Topgolf, hit bullseyes at Lumberjack Axes Axe Throwing Bar, pop quarters at Dave & Busters, or visit PopStroke—a mini golf experience designed by Tiger Woods.
ALL NEW IN 2025 LL
The Ratchet+Wrench Management Conference delivers! You’ll get an unparalleled three-day educational and networking experience tailored for shop owners, operators, and managers. Join the industry’s best for an all-new program designed to elevate your business.
Why Attend?
• More than 30 hour-long sessions across three days presented by successful shop leaders
• Prime networking opportunities to build and grow valuable industry connections
• Winning business strategies and real-world success stories to inspire your professional growth and boost your shop’s performance
• Exciting new venue in Glendale, Arizona, adjacent to the vibrant Westgate Entertainment District
RWMC GOES WILD WEST RWMC GOES WILD WEST
Connect with Top Industry Suppliers
At the Ratchet+Wrench Management Conference, it’s not just about powerful sessions (though that doesn’t hurt!)— it’s your chance to engage with dozens of the best industry vendors showcasing their latest tools, technology, and services aimed at optimizing your shop operations. Join us on Thursday, October 9, from 4:30 to 7:30 p.m. to speak to these vendors, and while you’re on the floor …
Cut Loose at Our Wild West Party!
Dust off your cowboy hats, boots, and bandanas for an evening of western-themed fun! Our Wild West extravaganza features:
• Tons of games and activities
• Delicious southwestern-inspired vittles
• Exciting prize giveaways throughout the night
• Networking with fellow industry professionals in a relaxed, fun environment
This year’s Ratchet+Wrench Management Conference vendor experience delivers business value and wild west hospitality all in one!
SCHEDULE AT A GLANCE
This schedule is subject to change once the conference program has been finalized.
WEDNESDAY, OCTOBER 8, 2025
10:00 AM – 6:30 PMREGISTRATION OPEN
2:00 PM – 3:00 PMOPENING KEYNOTE
3:15 PM – 4:15 PM BREAKOUT SESSIONS
4:30 PM – 5:30 PMBREAKOUT SESSIONS
5:30 PM – 7:30 PMWELCOME HAPPY HOUR
THURSDAY, OCTOBER 9, 2025
7:30 AM – 8:00 AMWELCOME COFFEE BREAK
8:15 AM – 12:00 PMBREAKOUT SESSIONS
12:00 PM – 1:00 PMLUNCH
1:00 PM – 4:00 PMBREAKOUT SESSIONS
4:30 PM – 7:30 PM VENDOR SHOWCASE & RWMC RECEPTION
FRIDAY, OCTOBER 10, 2025
7:30 AM – 8:00 AM VENDOR SHOWCASE & COFFEE
8:15 AM – 11:45 AMBREAKOUT SESSIONS
12:00 PM – 1:00 PMLUNCH
1:00 PM – 2:00 PMBREAKOUT SESSIONS
2:15 PM – 3:15 PM CLOSING KEYNOTE
AND BOOST PROFITABILITY?
The Ratchet+Wrench Management Conference is the industry’s premier event for shop owners and managers ready to take the next step.
Join us for three high-impact days filled with expert-led sessions, proven business strategies, and meaningful networking with the best in the business.
• Over 30 sessions on leadership, operations, and shop culture
• Actionable insights from top-performing shop owners
• Designed for real-world results
SPECIAL PRESENTATION LOOKING TO GROW YOUR SHOP, LEAD WITH CONFIDENCE,
THURSDAY, OCTOBER 9, 2025 12:00 PM - 1:00 PM
Rob Pietrowsky
Endeavor Business Intelligence/ IMR Vice President, Research
VOICE OF THE SHOP: INSIGHTS ON TARIFFS, TRUCKS, TECHNICIANS AND MORE
The big change in US administrative direction is having a big impact on consumers and the automotive industry. We’ll look at data direct from vehicle owners and repair shops to see what’s changing and how shops are responding. The insights we cover will also help vehicle service and repair professionals prepare for what’s next.
JOIN US IN GLENDALE
This year, your conference headquarters hotel is the beautiful Renaissance Phoenix Glendale Resort, located in the heart of the vibrant Westgate Entertainment District.
When you step outside its front doors, you’ll find yourself surrounded by an array of exciting activities that await you in the Westgate Entertainment District—a fun-filled destination offering:
• Over 40 restaurants, eateries, and lively brew pubs
• Fun activities for the team—Escape Westgate, Dave & Buster’s, Stir Crazy Comedy Club—guaranteed to keep you entertained
• Arizona’s beautiful desert landscapes and stunning sunsets
Make the most of your conference by mixing professional development with Arizona’s charm and hospitality. Your chance to learn, grow, and unwind with colleagues and new friends awaits in Glendale.
NETWORK WITH LEADING VENDORS
Attend the Exhibitor & Sponsor Showcase to benefit from dedicated time with the industry’s top vendors and influencers. This dynamic platform provides invaluable opportunities to network with leading companies to learn about their latest equipment, products, technologies, and services.
