Ratchet+Wrench - August 2024 by Endeavor Digital Editions

GOING STRONG

Linda Sosebee and daughter, Ashley, leaned on one another to keep her husband’s dream and legacy alive.

LINDA SOSEBEE LOST HER HUSBAND, DAUGHTER, AND SON-IN-LAW BUT GAINED A SHOP AND COMMUNITY PAGE 36

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AUGUST

AGING OUT

With Baby Boomers entering retirement age, auto repair shop owners need to plan on how they can use these experienced techs to not only train their teams, but pass down their wisdom.

BY ALISON JOHNSON

LIFE AND LEGACY

Linda Sosabee endured the losses of three close family members one after another. She found strength in her daughter Ashley, her shop team, and the community who all rallied around her as she picked up the pieces and continued husband Danny’s dream.

BY ALISON JOHNSON

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NEW NAME, NEW ENERGY

BY CHRIS JONES

In 1964, heavyweight boxer Cassius Clay converted to Islam and adopted the name Muhammad Ali. This change aligned with his newfound Muslim faith, marking a profound personal transformation—but not everyone accepted or respected it. One such person was longtime rival Joe Frazier.

In 1971, leading up to what was dubbed, “The Fight of the Century,” Ali felt disrespected by Frazier’s insistence on calling him by his former name despite repeated warnings. As Ali dominated the bout, he demanded with each punch that Frazier say his name. For Ali, it was about garnering respect, dignity, and recognition for his new identity and not being tethered to a previous identity that didn’t accurately reflect who he now was.

In the working world, as time and technology advance, job responsibilities and titles also evolve: secretaries are now administrative assistants, computer programmers are software developers, stewardesses are flight attendants, psychologists are now behavioral health specialists, and in automotive repair, mechanics are automotive technicians.

In “Putting Respect on the Name,” (p. 11), automotive aftermarket influencer Carm Capriotto advocates for a forwardthinking view of technology’s impact on the industry, namely technicians. As technicians are now tasked with more than turning wrenches, Capriotto argues that the term auto technician should evolve into perhaps “mechanical and technology specialist” to better accurately reflect the relationship auto technicians have with the advanced nature of their work. This new

identity, much like when Ali adopted his new name and faith, demonstrates the hard work and expertise that comes with learning and using the skill and builds confidence in technicians and consumers alike.

Similarly in this month’s Case Study, “Raising the Bar,” Andrew Marcotte of American Pride Automotive talks about putting the American Pride name and standard on an acquired shop and how the team leveraged its existing reputation to overcome that shop’s poor reputation (p. 47).

So, what’s in a name? Much. It’s how we present ourselves to the world and how we want to be perceived. As technology continues to descend upon the industry and change the nature of work, how many other roles, responsibilities, or forward-facing processes in the shop should be redefined to reflect higher professionalism happening within auto care? Think about it. It’s worth consideration.

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JUMP START

PUTTING RESPECT TO THE NAME

Carm Capriotto discusses his recent declaration, ‘The Rise of the Mechanical and Technology Specialist,’ and the vision he has to promote professionalism in the repair industr y

BY KACEY FREDERICK

For years now, there’s been talk of what professionals in automotive repair should be called, and it’s something that Carm Capriotto, host of the Remarkable Results Radio Podcast, began to see as a growing weakness for the industry.

Titles that demonstrate expertise earn not only the confidence of customers but the inspiration of those seeking a career path: something that Capriotto has explored in depth in his recently released deceleration, ‘The Rise of the Mechanical and Technology Specialist.’

PHOTO

Seeing Room for Growth

The language used in the repair industry affects not only how those on the outside view it, but sets a standard for those within the field. It’s a concept that first struck Capriotto while watching the Netflix series, ‘The Bear,’ which revolves around a professional chef named Carmy who steps in to take over his late brother’s sandwich shop.

Coming from a world of Michelin stars—an award to restaurants for outstanding cooking—Carmy has a defined view of his role in the cooking industry. He comes into the kitchen dressed in a white chef’s coat, contrasted by the T-shirts and jeans of those surrounding him.

One scene stood out to Capriotto, in which Carmy refers to one of the restaurant’s employees as “chef.” Though the rest of the restaurant had been aggressively opposed to any sort of change since Carm arrived, it was at that moment that the employee looked at Carm and replied, “Yes, chef,” and showed how much weight that title holds.

“Right there it hit me,” recalls Capriotto. “I wrote down the word chef, and I said, ‘What’s our word?’ And I couldn’t find it.”

It’s something the industry has contended with for a long time. Terms such as ‘mechanic’ or ‘wrench’ are now viewed as outdated, and Capriotto has never been a fan of these labels. ‘Technician’ has been on the rise, though with it being used across various industries, he realized that the word itself doesn’t imply the full scope of what repair professionals do. He was led to pull inspiration from the medical field and how there are dedicated specialists for different areas of care.

All these words continue to float around in Capriotto’s mind–chef, technology, specialist–before he realized the language currently being used in the industry doesn’t reflect the diverse skill sets needed.

Accurately Reflecting the Industry

At the heart of this language shift is the change that’s already in motion with vehicle technology. As cars become more computerized and software based, there is a growing demand for those who know how to handle those aspects–Capriotto calls these individuals technology specialists.

But there will still be a need for those in the shop who work with their hands, and the technology specialist cannot exist without that counterpart.

“They’re kinesthetic learners, they love what they do. ‘Just give me a wrench, give me a tool, give me something to take apart and put back together,’” explains Capriotto. It’s one thing to perform diagnostics and understand what may be going wrong with a vehicle, but it’s a separate task to dive into the machine and repair its inner workings. A technology specialist does not sum up what these individuals do, and Capriotto has no desire to revive terms like ‘wrench’ or ‘mechanic.’

These people are specialists in their own right–they are mechanical specialists.

Capriotto hopes the impact of such a change will be to empower the image of those in the repair industry. Amid a push for more young professionals to join the field, there is an importance in the job titles offered to entry-level techs that must be recognized.

“We got a career path lined up, (he) goes home talks to his spouse, significant other,

mom or dad, brother or sister—he says, ‘Hey, I got a job at Bob’s Garage down the road’ … ‘What, are you going to be a mechanic?’ ‘No, mom, I’m going to be a mechanical specialist.’ ‘Oh!’ There’s the power of the language shift. There’s the power of defining what it is that we do,” Capriotto says.

His declaration has been through several revisions already, continuing to grow and expand with the more shop owners he speaks to about the topic. The response he’s received has been overwhelmingly positive, and he’s only gained insight on how to improve upon the concept.

When Capriotto had the opportunity to share his declaration with ASE President and CEO Dave Johnson, he was met with immediate interest. Johnson reached out for a meeting, leading to Capriotto presenting his ideas to the ASE’s Board of Governors. The response was much in line with what he’s seen up to this point: supportive and enthused to find ways to improve it.

Making an Idea into Reality

The only issue shop owners have raised concerns over is how titles like technology

specialist and mechanical specialist will impact the outreach of job listings. The SEO of these terms can extend into other fields, such as software designers–which can be a strength, but it needs to be clear that these are automotive service technology specialists.

Capriotto’s deceleration lists name suggestions for a variety of positions that may exist throughout a shop, but he deliberately calls them that: suggestions. Every shop does things a little differently.

Capriotto spoke with one shop owner who had a team that could handle both mechanical and digital jobs, who concluded to label them all technology specialists.

“I bless the fact that the shop owner was willing to adopt the new language, but I wasn’t going to get in his way on how he defined what they do. That’s between him and his people,” Capriotto says. “So I was just thrilled that they embraced it, and that they wanted to be technology specialists–stop and think what that could mean to their commitment of culture and training.”

Capriotto’s declaration isn’t meant to provide hard and fast rules, but rather a

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foundation on which to build–so to see shops taking the concept and using it to their benefit is the most important result of it all, and it’s something Capriotto is seeing plenty of.

As he was developing his declaration, he reached out to around 25 to 30 shops, sharing his first drafts and asking for their thoughts. He heard back from shop owners who sat down with their team, discussed the idea, and had already had new business cards made up for everyone by the time they responded to Capriotto.

As his message builds momentum, Capriotto expects it to go through many more changes as it adapts to the industry’s needs. Regardless of how it may grow, Capriotto believes he’s advocating for a movement that will bolster respect for the repair industry.

“It’s refreshing. It will have an impact both on customer perception and culture inside the business,” Capriotto says. “And, dammit, let’s become more professional. In the things that we do, the value prop that we give, and job titles. Let’s be more professional.”

UTI Offering Free Intro Courses to Automotive Repair Across U.S.

Universal Technical Institute once again launched its annual Summer Ignite program in partnership with NAPA to help introduce high school students to a career in automotive repair, according to a press release.

First established in 2018, the program allows high school juniors to partake in a free, three-week intro course to automotive or motorcycle repair. Those who complete their end-ofcourse exams will earn credit towards future programs they may enroll in at UTI, which can help alleviate some of the cost of attending.

The program has seen significant results, with almost 50% of last year’s students going on to enroll at UTI and pursue automotive or motorcycle repair.

Additionally, NAPA has partnered with the initiative since 2021, providing each student with three uniform shirts at no cost to them.

Join industry leaders for business building exclusively for auto repair shop owners, operators, and managers.

Summer Ignite has offered courses across the nation, at campuses in Texas, Arizona, New Jersey, Pennsylvania, Illinois, California, Florida, and North Carolina.

“As the demand for skilled technicians remains strong, and Gen Z is considering educational paths outside of a traditional four-year degree, Summer Ignite is a valuable opportunity for hands-on training that exposes students to hands-on, technology-driven careers,” stated UTI Division president Tracy Lorenz. “This annual program underscores our commitment to cultivating more talented technicians for this dynamic and ever-evolving industry.”

ATI Awards $1M to Independent Shop Owners

Automotive Training Institute awarded $1 million in scholarships to almost 400 independent shop owners, according to a press release.

The scholarships were granted to shops that joined ATI’s Re-Engineering Program in 2023, which provides insight into a shop’s financial status and a business plan tailored to their needs.

The scholarships from ATI are meant to help cover the cost of the program’s training and coaching services, according to ATI President Craig Montgomery.

“At ATI, we believe in more than just providing coaching services; we see ourselves as partners in driving growth and excellence for your automotive service business,” stated Montgomery. “By removing financial barriers, we enable shop owners to gain the skills and knowledge needed to enhance profitability and achieve long-term success.”

Virginia Becomes First State to Reverse Adoption of California Auto Emission Standards

Virginia has become the first state to back out of California’s emission standards, prompting recognition from the Specialty Equipment Market Association in a recent press release.

Governor Glenn Youngkin announced the Commonwealth would not go through with adopting California’s emission standards, which would

prevent the sale of new gas and dieselpowered vehicles by 2035.

In 2021, state lawmakers passed a law saying Virginia would abide by California’s emission standards under previous Governor Ralph Northam. Upon being elected as Northam’s successor later that year, Youngkin condemned the decision during his 2023 State of the Commonwealth address.

Seventeen states have agreed to California’s emission standards, and many have opposed them–but Virginia is the first state to reverse its decision to adopt them. With SEMA having pushed for laws in nine states that would prevent stricter emission standards from being enforced, the organization’s President and CEO Mike Spagnola commended the move from Virginia.

“We applaud Governor Youngkin for this bold action that rejects the notion that California should determine policies for nearly half of American consumers. We urge other states to follow Virginia’s lead,” said Spagnola.

Automotive Aftermarket Saw 8.6% Increase in Sales Last Year, Despite Economic Pressure on Consumers

The Auto Care Association, in collaboration with MEMA Aftermarket Suppliers, has released its 2024 Joint Forecast Model, prepared by S&P Global.

The report highlighted 2023 as a strong year for the aftermarket, with total sales rising by 8.6% to $391 billion, despite continued inflation. General auto repair sectors, as well as dealership service centers and auto parts stores, outpaced initial predictions for growth.

Rising inflation has allowed businesses to charge more for their services to keep pace, though this is expected to gradually decline and meet the Fed’s goals by late 2025. Despite inflation, rising wages, and a strong labor market have kept consumers spending, though they remain pessimistic about their finances.

Looking to this year, raised inflation will continue to prevent potential federal rate cuts from being implemented, and consumers will remain pessimistic. The labor market is still performing strongly, and wages are still on the rise, though, meaning customers will be more willing to spend.

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The report predicts a 5.9% increase in sales for the aftermarket in 2024. From 2025-2027, an average growth rate of 4.5% is expected as the effects of inflation die down.

“The data reveals promising growth prospects for our industry, showcasing resilience in the face of challenges,” said ACA President and CEO Bill Hanvey. “As we navigate the evolving market dynamics, industry stakeholders can expect a wealth of opportunities to emerge, driven by consumer demand, the aging vehicle population, and technological advancements.”

U.S. Electric Vehicle Charging Initiative Has Made Little Progress in Three Years

Though a $5-billion U.S. government program to expand electric vehicle charging across the nation was established three years ago, only seven stations have been deployed since its inception, reports Reuters.

The seven charging stations are equipped with a combined total of a few dozen charging ports, according to Shailen Bhatt, head of the Federal Highway Administration.

When this information was disclosed during a recent Senate Environment and Public Works Committee hearing, it prompted Senator Jeff Merkley to express harsh disappointment.

“That is pathetic. We’re now three years into this ... That is a vast administrative failure,” remarked Merkley. “Something is terribly wrong, and it needs to be fixed.”

Merkley continued to criticize existing federal highway rules preventing EV charging stations from being placed at rest stops. Bhatt concurred, adding that FHA is working with states on formulating plans for EV charger development, though it can be difficult when states are handling multiple programs.

The U.S. had 183,000 public charging ports as of December. Since the beginning of Biden’s administration, there’s been a 90% increase in the number of fast-charging ports. The government’s current goal is to expand the number of charging ports to 500,000, placed no more than 50 miles apart.

According to Energy Secretary Jennifer Granholm, 27 states have submit -

ted commercial requests for EV charging stations, and 1,000 in public spaces are expected to launch by the end of the year. With many of the proposed areas not yet having access to electricity, obstacles remain–but Bhatt affirmed that the U.S. would meet its goal for EV chargers regardless.

Sun Auto Tire & Service Acquires Caliber Auto Care

Sun Auto Tire & Service has acquired all 33 Caliber Auto Care locations in Texas, according to a press release.

The acquisition comprises 16 stores in Dallas, 13 in Houston, and four in San Antonio, further adding to Sun Auto’s ongoing expansion throughout the state.

Sun Auto COO Chris Ripani recognized Caliber for having a company culture that prioritizes its staff and customers.

“Our decision to acquire the Caliber Auto Care business, and Caliber’s choice to sell to Sun Auto, highlights the mutual respect both companies have for one another,” said Sun Auto CEO Tony Puckett. “I look forward to welcoming Caliber Auto Care teammates into our Sun Auto family.”

ASA Commends Michigan Bill for Alleviating Requirements on Shop Owners

The Automotive Service Association has put its support behind a piece of legislation in Michigan, according to a recent press release.

Senate Bill (SB) 867, introduced by Senator John Cherry, is a bipartisan piece of legislation that would alleviate some of the requirements enforced on repairers in the state.

The law would make it so that shop owners who open an additional facility for their business can register it under the same registration and registration number as their primary facility, so long as it meets three requirements: being located within a reasonable distance of the main facility, serving as an extension of the main facility, and does not operate independently of it.

ASA claims that this will save repair facilities from paying repeated registration fees, as well as having to put up

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extra signs and needing duplicates of customer forms, contracts, or statements, potentially saving them up to $500 per facility. In addition, the law will also extend registration renewal from being required annually to every four years.

Additionally, while current state law requires businesses owned by corporations to report to the state if 10% or more of their stock has been sold or transferred, SB 867 would increase that requirement to 25%.

“SB 867 would help repairers like me immensely,” said Tom Piippo, owner of Tri-County Motors in Rudyard, Michigan, and an ASA Board member. “Anyone who runs a small business knows that time is money, and that adage is especially true for small independent auto repairers. Time spent completing detailed paperwork and dealing with government bureaucracy is time spent away from repairing my customers’ vehicles.”

Over 211K Chryslers Recalled for Potential Disabling of Electronic Stability Control

Chrysler is recalling over 211,000 vehicles over a software malfunction that can potentially impact the electronic stability control system, reports Reuters.

The recall applies to certain 2022 Dodge Durango and Ram 2500 and 3500 vehicles.

According to a statement from the National Highway Traffic Safety Administration this past Saturday, the software issue can lead to the Anti-Lock

Brake System control module disabling the electronic stability control system, presenting the risk of a crash.

Stellantis is instructing dealers to update the control module software in all recalled vehicles as a remedy.

Increasing Average Vehicle Age Brings Business for Aftermarket Repair and Parts

More and more Americans are opting to preserve their vehicles for as long as possible rather than purchasing a new one, creating an expanding customer base for the aftermarket, reports WTVA 9 News.

The driving force behind this is the continued rise of the average car payment, which has hit an all-time high this year. Monthly car payments for new vehicles amount to $700 for many drivers, with used cars being closer to $500 a month. Average interest rates for a loan on a new car sit at around 6.3%, and APRs for used cars are currently 11.9%.

“A lot of young kids are burdened with a lot of car debt, because they got excited, got credit and could afford a car,” said Chris Keith, owner of a used auto parts store in Pontotoc, Mississippi called KARS. “Now, the car payment and the insurance is kicking their hind end.”

It’s a trend that’s bringing more customers to seek out repairs, especially outside a dealership to save money.

Chris Ruth, owner of Ruth’s Auto Repair, frequently makes trips down the street from his shop to visit KARS in search of affordable parts for his customers.

1 billion

Ruth has seen an increase in the price of new parts as opposed to used ones, and with him seeing an influx of customers holding onto their vehicles to save money, he does what he can to help them.

“With the cost of everything going up it’s become more reasonable to repair the cars than it has been to just run out and buy another one and get a car payment,” explained Ruth.

Hydrogen Fuel Cell Technology Rivals Electric Vehicles in Japan

As a push for electric vehicles grows in the United States, the automotive industry in Japan has been looking at other alternatives, according to ECOticias.

Through collaboration between the country’s government and industry leaders, research and development on hydrogen fuel technology has surpassed that found domestically.

It led Toyota, a known proponent of hydrogen technology, to develop the Toyota Corolla Cross Hydrogen Concept: a prototype based on the Corolla Cross that has an advanced hydrogen fuel cell rather than an internal combustion engine.

The vehicle is powered by an electric motor, which receives energy from the reaction between hydrogen and oxygen. This process emits only water vapor, making it harmless to the environment. Additionally, each fuel cell stack can power a vehicle for 300 miles.

Hydrogen energy is something Japan has been looking to invest more into,

with the potential for it to be utilized in not only transportation, but for power generation, industry, and domestic use, as well as cutting the country’s dependence on imported fossil fuel.

Turbo Tim’s to Offer Free Emission Repairs to Low-Income Minnesota Drivers

Turbo Tim’s Anything Automotive has partnered with a nonprofit organization to provide free emission repairs, reports the St. Paul Pioneer Press.

The initiative is part of Project Clean Air Repair, a project from nonprofit group Environmental Initiative to provide free repairs on emission controls and exhaust systems for low-income drivers through partnerships with local auto shops.

Besides Turbo Tim’s, several other local shops are also participating in Project CAR, including the Lift Garage, Cars for Neighbors, the Leech Lake Band of Ojibwe Small Vehicle Garage, Nghia’s Auto Service, and Newgate School. Those qualified for emission repairs

through Project CAR may have them done at any of Turbo Tim’s three locations in St. Paul Midway, West St. Paul, or Northeast Minneapolis.

“Joining forces with Project CAR aligns perfectly with our mission to serve the community,” said Turbo Tim’s owner Tim Suggs. “By providing emissions repairs at no cost to qualifying Minnesotans, we’re hitting the road running toward cleaner air and a brighter future.”

U.S. Senators Pressure Federal Trade Commission for Action on Right to Repair

U.S. Senators Amy Klobuchar (D-MN) and Mike Lee (R-UT) sent out a letter to the Federal Trade Commission (FTC) this week seeking clarification on steps the agency has taken to address unfair repair restrictions.

Lee shared the letter penned by him and Klobuchar on social media earlier this week, in which they recognize the awareness raised by FTC surrounding the lack of protections for consumers seeking

STRATEGIES FOR

repairs for vehicles, smartphones, farm equipment, and other personal property.

Part of this action taken by FTC includes the 2021 release of a Policy Statement on Repair Restrictions Imposed by Manufacturers and Sellers, in which FTC outlined intentions to devote more resources toward dismantling unlawful repair restrictions.

In their letter, Klobuchar and Lee–who serve as chair and ranking member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, respectively–ask for further details on what steps FTC has taken since its Policy Statement to address repair restrictions.

Specifically, the letter asks for information on what the FTC has demonstrably done for right to repair, and what resulted from those actions, as well as whether it has determined if manufacturers should make parts, tools, manuals, and other data and equipment available to consumers and independent repair shops.

The Senators ended by requesting clarification on how FTC will hold manufacturers accountable, and what

the agency requires from Congress to accomplish that.

Volkswagen Developing New Hydrogen Fuel Cell Vehicle Technology

Volkswagen has released plans to develop hydrogen fuel cell technology in vehicles, according to ECOticias.

The automaker recently submitted a patent for a vehicle and hydrogen fuel cell stack that could reach a range of 1,243 miles.

The technology, developed jointly with German company Kraftwerk Tubes, would substitute the polymer membrane that Toyota and Hyundai currently use with a less expensive ceramic membrane. Additionally, it would allow vehicle owners to switch from gasoline to hydrogen without a conversion kit.

Volkswagen CEO Thomas Schäfer has claimed that hydrogen may be a more cost-effective alternative to battery-electric vehicles, particularly for passenger cars. With this technology

currently still being developed, however, the automaker isn’t dismissing plans to continue with EV production.

Electric Vehicle Charging Stations Nationwide See Increase in Vandalism, Theft

Access to electric vehicle charging may have just run into another obstacle as thieves have begun to steal charging cables for the copper they’re composed of, reports the Citrus County Chronicle.

It’s an issue that’s being seen across the nation, with reports of people clipping charging cables from their stations in areas of Nevada, California, Arizona, Colorado, Illinois, Oregon, Tennessee, Texas, and Pennsylvania.

It’s something that’s only recently picked up traction as well. In Houston, police had received no word of cable thefts until just a month ago. Since then, they’ve responded to eight or nine such cases. The issue isn’t exclusive to urban areas, with rural Sumner, Washington, seeing two incidents of cable theft at a

Puget Sound Energy charging station. In late May, demand for copper hit a record high as a push grew for more copper wiring in EVs to reduce their carbon emissions. It’s presented an easy opportunity for thieves: charging stations, which are typically tucked away in corners of parking lots, and their cables that contain copper.

However, those who steal these cables aren’t raking in a fortune. They typically go for around $15 to $20 apiece. It hasn’t deterred theft but has only motivated thieves to steal large quantities of them at a time, wreaking havoc on EV drivers in need.

With the cost to replace a charging cable being around $1,000 each, charging companies are taking action to try and curb these thefts.

Electrify America, which operates the second-largest network of directcurrent fast chargers in the U.S., is working on installing more security cameras at its sites–something Sgt. Robert Carson, leader of a police metal theft unit in Houston, noted it as being the most effective precaution.

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CASH IS (STILL) KING

BY CHRIS JONES

In 2024, more consumers are choosing to repair their existing vehicles rather than purchase new ones. This trend is driven by soaring prices for new and used cars* and continued economic uncertainty.

Independent auto repair shops provide consumers a more economical alternative, supported by the availability of highquality aftermarket parts and skilled technicians. Repair shops that effectively

meet customer expectations remain profitable and sustainable.

As shown in the 2024 Ratchet+Wrench Industry Survey Report, in the 400 shops polled, median annual revenue fell between $750,000 and $999,999 are the median business model.

MARTIN’S TIRE & SERVICE

A closer look inside Martin Woods’ customer-centric Michigan shop

BY EM I LY KLINE

PHOTOS BY PAT DURHAM

With a father as an auto repair shop franchise owner, Martin Woods was immersed in the automotive industry from a very young age.

Later in his life, after a long 13 years in retail loss prevention, Woods felt called back to his automotive roots. As a result, he left his job and opened an auto repair shop in the same building as his father’s.

“It was split right down the middle,” Woods says. “The front five bays were his business, and the back five bays were empty. I took over those and started my shop. After three years my father said that he wanted to retire. As a result, I purchased the building from my grandfather, knocked down the wall dividing the two sides, and opened all the bays. Presently, we’re a 10-bay fullservice facility.”

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

EYE-CATCHING EXCELLENCE

When visiting Martin’s Tire & Service, one of the first things that you notice is the eye-catching color scheme. A decision driven by his experience in retail.

“We paired black and safety orange to make sure that the shop popped,” Woods says. “When people come in for the first time, they’re like, ‘I’ve lived in this area this whole time and I never knew you were here.’ Because our building sits sideways from the road, it’s sometimes hard to see. We have small road frontage which means our sign is also small, so I wanted to do anything I could to grab customers’ eyes as they drove by. The orange pops not only in the logo but also inside the bays, when the doors are open, you can see the orange stripe around the inside.”

BEYOND AESTHETICS

When choosing the color scheme, Woods also kept in mind the importance of a clean look.

“The color scheme keeps the uniforms looking nice and clean so that customers don’t see our techs in a filthy uniform,” Woods said. “Quality and making sure that everybody’s vehicle is in a neat and clean environment— from our lobbies to our bays is important to us.”

GOING THE EXTRA MILE

In addition to its cleanliness and desirable colors, the value Martin’s Tire & Service offers its customers is highly important.

“Our partnership with TechNet Professional allows us to offer our customers a lot of perks,” Woods says. “These include a three-year, 36,000-mile nationwide warranty, free roadside assistance for a year, free towing reimbursement, and tire replacement coverage nationwide.”

Other added benefits to Wood’s shop are that they offer loaner vehicles—free with repairs— ADAS calibrations, and constant training for the employees.

Woods is always sending his staff to several training events and makes sure his front-of-house staff and technicians are enrolled in continuous training programs. When asked why he and his team invest so much into the shop, Woods says: “Because we want to make sure our customer experience is unparalleled.”

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Stop Time Bandits from Stealing Your Productivity

Are

these three thieves of time slowing down your shop floor?

BY KATHLEEN CALLAHAN

Creating systems and procedures is critical for any business, and there is no “one-size-fits-all” option since every shop has a slightly different culture, client base, and regional fluctuation. There are, however, some universal parts to build on. Think about the life cycle of a client visit (also known as a work order life cycle).

From the initial phone call or webbased appointment to the follow-up text or email asking for feedback, there are some points we all need to hit consistently to provide the same service to every client on every visit. This doesn’t happen accidentally. It comes from creating systems and procedures that every staff member, including the owner, follows every time. Think of your favorite coffee or burger chain. They gained national popularity by creating a specific process for every item on their menus, so the final product is the same whether you order it in New York City or Garrison, Minnesota. They train all employees to follow those processes and ensure they are followed consistently.

Why is this important in a single repair shop? The client experience is a large part of why, but a more important reason for creating processes is to increase efficiency and productivity in your shop. Technician productivity is the No. 1 way to generate income; nobody has a job without it.

Let’s look at some of the technician time bandits.

TOOL TRUCKS

I’ve heard shop owners and managers complain about the time their technicians spend on the tool truck since before I was in the industry! If each tech spent only 15 minutes a week on four tools trucks, you’ve lost one hour of potential production multiplied by each technician you employ. How do we remove this necessary evil as a pain point? I can’t tell you how to eliminate it, but you could work out a tool truck schedule with your tool providers by asking and answering a few questions:

• Do they need to show up weekly

when bi-weekly or monthly would probably garner the same results? Most of them have credit cards on file to collect payments on accounts and could text your tech to authorize payments.

• Do they show up randomly? Work with these vendors to set a scheduled day and time window for them to come by your shop.

ORGANIZATION

The storage location for items within your shop can be a giant production killer. Do you keep your service machines in a centrally convenient place accessible to everyone? Ask your staff for input on this.

I recently read about the Banana Principle. A large company provided fresh bananas and oranges in their break rooms. By 10 a.m., the bananas were all gone, and the oranges were left. After researching, they found that people chose bananas more frequently, not because the staff didn’t like oranges, but because they are easier to peel and eat. Humans will generally choose the path of least resistance, and if a piece of equipment is challenging to access, I bet that service gets recommended far less than if it was in a place that was easier to get to.

INTERRUPTIONS

Asking a technician to handle minor tasks “real quick” can disrupt one of the shop’s primary revenue generators: momentum. The task may be fast, but the time it takes for your technician to get back into the groove of the repair or service is a far longer delay. Those small interruptions to check tire pressure or pull codes for an engine light have them returning to a job and needing to recall where they were the moment they left. Did they torque the bolts properly? Are all wires plugged back in? Add the time it took to wash their hands, complete the task that stopped their momentum, and getting back into the headspace they were in, and you have

several hours lost daily. How much lost revenue through poor production did a “real quick” distraction cost your shop?

Take a look at these items this month and create processes, rearrange equipment if needed, and train customer service or service advisory staff to top off air in tires or check fluids to eliminate some of the interruptions. I’ll bet you’ll see happier technicians, fewer mistakes, and higher productivity.

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

PREPARING FOR AN AUTO TECH'S RETIREMENT

AUTO

How

two auto repair shops are proactively readying their teams for the loss of tenured techs

BY ALISON JOHNSON

PHOTOS BY ASHLEE FICKLIN

THIS PAST JUNE,

Denny’s Auto lost an automotive technician of more than 30 years to retirement. Yet thanks to a new apprenticeship program created by the Utah-based business, the position never went unfilled.

In 2022, shop owner Mitch Moncur brought in two recent high school graduates to train with his technicians over a two-year period. He paired them with mentors on eight different skills modules, ranging from basic shop safety to tool operations to complex repairs.

As the apprentices grew more proficient, Moncur gradually increased their hourly pay from $12 to $20 an hour. He ultimately hired one of them to replace his retiring tech, while the other found a job at another shop within a day of finishing his modules.

Those are the type of proactive steps that shop owners should take as a high number of experienced auto technicians begin to reach retirement age, Moncur believes. “We can’t just sit back and wait for it to happen,” he says. “We’ve got to get out in front of what’s coming and get these young kids interested in this industry.”

The Boomer's Exodus

According to a TechForce Foundation report, the technician shortage is exacerbated by the retirement of baby boomers, with nearly 40% of the current workforce expected to retire by 2030.

The Bureau of Labor Statistics, meanwhile, projects a 4% decline in the overall auto technician field through 2029. At the same time, vehicles are becoming more complex and costs for parts and employee wages are rising.

To meet customer demand and prevent long wait times for repairs, shops need to hit the accelerator on recruiting new talent while tapping into the expertise of older techs still on the job, according to Darrin Barney, president and CEO of Elite Worldwide and co-owner of Barney Brothers Off-Road and Repair in Grand Junction, Colorado.

The first step is to get to know the team members they have, says Barney, who employs five technicians at his business.

“It seems obvious, but some shops unfortunately still do see techs as replaceable,” he notes. “If you look at them as people—as family members, really—and have good, regular conversations, hopefully you’ll know their future plans well in advance and avoid a sudden departure. Nobody wants that two-week bombshell being dropped.”

At Barney Brothers, owners hold a 10-minute team huddle before the shop opens every morning. They also do frequent longer check-ins with technicians about how they’re feeling physically and mentally and what’s happening in their lives outside work.

“We ask, ‘What are your long-term plans and goals?’ What’s your timeframe for considering retirement?’” Barney says. “You’re forming basic human connections, and once you know that information, you can plan for a departure and talk to them about mentoring younger techs.”

Even if a tech is no longer up for fulltime repair work, they could still have considerable value to a company, he adds. One of his older techs, for example, recently cut back to four days a week; others might want to move into a less labor-intensive position such as shop foreman or, if they enjoy interacting with customers, service writing.

“Don’t assume they just want to be

TOP (L): Chad and Darrin Barney, owners of Barney Brothers Off-Road and Repair

TOP (R): Darrin Barney in the shop with technician Tim Logel, who is planning to retire.

BOTTOM (L): Jarom Coon did an apprenticeship at Denny’s with Mitch Moncur. He is now working at a franchise store called Burt Brothers as a C level technician.

BOTTOM (R): Mitch Moncur, owner of Denny’s Auto, believes that seasoned techs are critical in helping train young techs.

“WE CAN’T JUST SIT BACK AND WAIT FOR (TECHS TO RETIRE). WE’VE GOT TO GET OUT IN FRONT OF WHAT’S COMING

AND GET THESE YOUNG KIDS INTERESTED IN THIS INDUSTRY.”

- Mitch Moncur, Owner of Denny's Auto

done altogether,” he says. “In fact, don’t assume anything with team members ever. Talk to them.”

Filling the Pipeline

Like Moncur, Barney is a proponent of establishing formal mentorship and/or apprentice programs. Many experienced technicians are happy to help pass the torch to younger generations, they have found.

One of Barney’s approaches is to incentivize mentorship through performance-based rewards. A shop owner might give an older tech a percentage of a mentee’s work during a training period, for example, especially as the newer tech becomes more efficient.

Meanwhile, if an older technician has a specialized skill set or owns a tool not otherwise available in the shop, owners need to take that into account, rather than only consider overall productivity and billable time and income.

Without a plan to pass that knowledge along, the business will lose the ability to do certain work—and therefore likely lose even formerly loyal customers. A shop that thinks ahead, on the other hand, can partner the retiring tech with younger employees for training and make a financial plan to buy the tools in question from an outside source or from the exiting tech.

The same goes for considering a tech’s intangible personal qualities, Barney continues. If that person is known for attributes such as leadership or moraleboosting with encouragement or jokes, an owner can approach other employees about stepping up to fill those gaps.

“It’s often a fragile ecosystem in our

shops, and removing even one person can be trouble,” Barney says. “Having enough time to make those moves is the key. Without time, you’re really going to be scrambling.”

Another crucial step is to maintain an active pool of job candidates. Moncur does that by conducting interviews in an ongoing process throughout the year, regardless of whether or not he has a current opening.

Once Moncur has interviewed a candidate and identified them as a good match, he touches base about once a month to see how a job search or employment situation is going. If the person wants, he will offer updates on potential future openings and even advice on improving their resumes with training and continuing education.

“It benefits all of us to have good techs working in our industry,” he explains. “And if I do find myself down a technician, it’s so much easier to draw from candidates you’ve already talked to and formed a relationship with instead of starting from scratch.”

Turning to Gen Z Moncur, who has a total of six technicians at his two shops outside Salt Lake City (one tech is about five years away from retirement) also urges shop owners to adopt a positive attitude about the Gen Z generation, defined as those born between 1997 and 2012.

As with the previous millennial generation, Moncur worries that owners tend to dismiss a whole group of people before getting to know them.

“They’re a different breed, yes, but I’ve

found they want to work once you show them what’s needed and support them,” he says. “They’re pretty rock solid. You’ve got to meet them where they are and not talk down to them. Ingrain in them that we’re going to sweat together and do great work together. Then just give them time.”

In fact, Gen Z is sometimes called the “Toolbelt Generation” because they’re more willing to embrace trade programs over a more traditional college path. “It’s the perfect time to start pursuing them,” Moncur says.

To recruit students for his inaugural mentorship program, Moncur communicated with local school districts and high school shop instructors. He evaluated six candidates through his usual three-part interview process for new technicians before choosing two.

Moncur’s shop technicians and the apprentices themselves helped him write curriculum for the program. To complete a module and advance to the next, apprentices had to get signatures from both their mentors and Moncur.

“It was a good amount of work for us, but it was a lot of fun, too,” Moncur relates. “The fact that both of these young people got jobs immediately was proof that it worked the way it was supposed to. That was proof to me that we were doing the right thing.”

As he considers starting another apprenticeship program next year with either trade school students or more high school graduates, Moncur encourages other shops to simply dive in on such efforts: “You can always pivot and make changes along the way.”

Another way to attract quality job candidates is to stay active in the community and on social media. “Keep that pipeline full,” Barney says. “Make sure your business’ name is out there and that people know you’re committed to serving and bettering their community.”

And back inside the shop, a final piece of advice from Barney: always plan a celebration for a retiring technician, especially if he or she has been honest and transparent about a timeline for departure.

“It shows the rest of the techs—and everyone else in the shop—that you care about them and their future, and that all of them are valued and important as human beings,” he says. “That message will carry over long after one person is gone.”

BY ALISON JOHNSON | PHOTOS BY KELLY ALLEY PHOTOGRAPHY

Playing the Hand You’re Dealt

Linda Sosebee, the 2024 Ratchet+Wrench VISION Cover Contest Winner, and her staff talk about how the shop came together following three tragic deaths that rocked the shop

After Linda Sosebee’s husband and business partner, Danny, died of cancer on Nov. 13, 2022, their shop’s longtime employees and customers kept her going.

Danny Sosebee’s passing at age 63 was one of several devastating personal losses due to cancer. Linda’s daughter, Julie Hitchcock, had passed away in 2010, and Julie’s husband, Ryan Hitchcock, died just 10 days after Danny. Ryan had been a service writer for the family business, Lindan Auto Mechanical & Body Shop, for 19 years.

“It was hard to think about doing this without them, but so many times I heard people in the shop say, ‘We’re really glad you’re still here,’” Sosebee recalls. “That meant so much. So many amazing people stuck by us in that tough first year.”

Rebounding After Tragic Losses

Today, Sosebee is the sole owner of the shop in Merriam, Kansas, which she and her husband opened together in 2001. Danny was the mechanical one, while Linda drew on her accounting background to manage the books.

Since Danny’s death, Linda Sosebee has grown into a new leadership role at Lindan Auto alongside her adult daughter, Ashley Chasm, office manager at the family business for the past decade.

With 14 team members, a 21,640-square-foot building, 20 bays and 17 lifts on a 1.1-acre site, Lindan Auto accepts all makes and models of individual and company vehicles. The shop services an average of 6,700 cars a year–roughly 560 a month–with a focus on building close, trusting relationships with customers.

That is Danny’s lasting legacy, according to Chasm. “Dad was never interested in having a second location, because he couldn’t be present at both,” she explains. “He wanted to stay small and see everyone face-to-face. He was never too busy to talk to somebody. He knew his customer’s names, and he knew about their families and lives.”

In fact, Lindan Auto has never advertised in its 23-year history, adds Larry Byrd, a service writer there for 17 years. “Danny didn’t believe in spending money on ads,” Byrd notes. “It’s all been word-ofmouth recommendations. It’s turned into a big family.”

"I miss Danny every day, but I think he would be proud of us."

-

Linda Sosebee, owner of Lindan Automotive

Danny’s Dream

When Danny and Linda Sosebee married in February of 1988, Danny shared his dream of owning his own automotive repair shop. He had grown up in a large family without a lot of money, so he learned to be self-reliant, handy and enterprising at a young age.

Danny’s loved ones also describe him as someone who never met a stranger and thrived on helping people. So, at age 42, Danny took a leap and launched Lindan Auto after managing several other shops, at first operating out of leased space in a multi-tenant building.

Sosebee decided the name “Danny’s” was on too many other shop signs, so he combined his name with Linda’s to form the more unique “Lindan’s.” Quickly, he earned customers’ loyalty by making himself available whenever they needed him.

While Danny had a desk in Linda’s office, he was rarely there during workdays. During evenings and weekends, his wife remembers multiple meals interrupted by calls about a vehicle that wouldn’t start or was making funny noises.

“Danny would try to walk customers through solutions on the phone, or he’d go over and check it out,” Linda Sosebee relates. “Right away, they’d know if it was a simple fix, or they needed to come into the shop.”

By 2006, Lindan Auto had enough revenue to purchase their building and gradually took over the entire space as other leases ran out. With just three or four employees in the early years, Danny Sosebee did much of the work on cars himself. Even as his shop grew, he still frequently handled repairs and consulted with other technicians on complex jobs.

“He could fix pretty much anything,” Chasm says. “He could do plumbing, electrical, home repairs, cars–he just loved a good puzzle.”

Chasm grew up working on cars with her dad, especially his prized 1970 Chevrolet Chevelle. A big fan of classic vehicles, Danny Sosebee had owned the car since he was a 17-year-old high school student.

“That Chevelle still runs today,” Chasm notes. “It’s how we bonded.”

While Chasm majored in anthropology at the University of Kansas, she worked part-time at Lindan Auto through college and joined the team full-time after graduation. She now handles a variety of daily operations, including answering phone calls and emails, checking on security equipment, and overseeing timecards and receivables and payables.

As for Linda Sosebee, she is still not mechanical but has been more proactive about communicating with technicians. She aims to help solve problems such as missing parts and listen to ideas for shop upgrades and training opportunities.

“I am surrounded by good people,” says Sosebee, who also is busy as legal guardian for her 15-year-old grandson, Julie and Ryan Hitchcock’s child. “That’s

the only way I can be a good boss. I miss Danny every day, but I think he would be proud of us.”

Along with Sosebee and Chasm, Lindan Auto has eight technicians, three service writers and a porter who moves cars, gives customers rides and cleans the property. Half of the team has been with the company for more than 10 years.

Byrd, a lifelong mechanic and Air Force veteran, is one of them. He joined Lindan Auto when he discovered that he and Danny Sosebee had the same philosophy about not saddling customers with extra repair bills.

“You fix what they come in here for, and that’s it,” Byrd says. “If there are other issues that need addressing, you can let them know, but those can wait unless it’s a safety matter. You don’t pile on jobs to get more out of their wallets.”

After Danny Sosebee and Ryan Hitchcock died, Byrd worked almost non-stop

until the company had regained its equilibrium, Linda Sosebee reports: “Not everybody could have pulled that off. I could never thank Larry enough.”

Linda’s Legacy

Lindan Auto has retained its emphasis on education and certification classes for technicians, given rapid technological changes in the industry. The company reimburses fees for completed programs, and more experienced technicians serve as mentors to newer employees.

Linda Sosebee also is happy to have a female technician on staff. “It’s a maledominated field, but a woman is more than capable being just as productive and knowledgeable as a man,” she says. “Our guys have been very welcoming.”

Along the same lines, Lindan Auto’s employees make it a point to speak to male and female customers with equal respect, Chasm adds: “We don’t want to

talk down to anyone. If we can show people exactly what we’re talking about on a car, we will.”

Sosebee aims to keep an open door for feedback and to organize regular gestures of appreciation such as staff cookouts and Popsicle giveaways on hot days. And every September, Lindan Auto hosts a Customer Appreciation Car Show with free food and drinks, where customers can display any car at the lot or drop by without a vehicle simply to relax.

“It’s always fun to catch up, and to let people show off their babies,” Linda Sosebee says.

Speaking of babies, the family is determined to complete Danny Sosebee’s pet side project, building a convertible from the frame up. Before Danny got sick, he had been tackling the challenging job in his limited spare time for more than 10 years.

“We will get that car up and running,” Chasm says. “No chance we quit.”

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ARE PROFIT-DRIVEN SALES GOALS BAD FOR BUSINESS?

Sales goals are essential, but execution is even more important

BY NOLAN O’HARA

In business, it’s essential to make a profit. That’s the reality for any shop owner. That’s why profit-driven sales goals are an industry norm. It’s crucial to make sure you’re hitting the goals needed to ensure your business is thriving. That’s the only way you can continue to support yourself, your employees, and your customers. But profit-driven sales goals also have pitfalls. They can become too much of a focus and lead to unethical business practices. They might motivate an employee too much to the point they oversell, and others simply might not be motivated by these types of goals. However, there are ways to use profit-driven sales goals to achieve the desired outcome and benefit your employees and customers while operating ethically and effectively.

Goals are Good

It’s important to have goals, and there is a reason profit-driven sales goals have become an industry norm. It’s impossible to

run an effective business without focusing on profits. While it’s necessary to keep a focus on profits and essential to have profit and sales goals, they can’t be the sole focus of your shop, says Jaron Kleber, the director of sales and business development at Repair Shop of Tomorrow. “What we need to avoid is: Profits are the most important,” Kleber says. “Because if all we’re thinking of is profits, then we’re probably being a little unethical to our employees, we’re being a little unethical to the customer, and ultimately, that puts a bad reputation, not only for your shop but for the industry as a whole.” Jim Saeli, a senior trainer and shop inspection manager at DRIVE, notes that it’s a fluctuating industry where costs change with regularity. That’s why it’s essential to have targets and know what number you need to hit to sustain your business. “But (the number) doesn’t have to be the be-all and end-all,” Saeli says. Sales goals are essential and are often positive, but it comes down to the execution of

those goals. And that execution should all start by putting the customer first.

Putting Customers First

One issue that can often come into play with profit-driven sales goals is that they can take focus away from the customer when the customer should be the first focus. Profit-driven sales goals shouldn’t lead to service advisors trying to sell the customer things they don’t want or need. They should be working with them to meet their needs. “First and foremost, service to the customer, doing the right thing, from that, the sales goal will actually be able to be met because people want to come to the shop,” Saeli says. Kleber notes that building relationships is important, and the sales process shouldn’t be something that’s purely transactional. Building relationships with customers is a way of building loyalty, and in turn, getting repeat business to sustain you long-term. Kleber also says that in his mind, the financials aren’t

Opportunity is the average amount of work found on a car—sold and unsold.

necessarily what makes a business successful. He says the true measure of success is customer and employee satisfaction. There’s always work that needs to be done and there’s no need to oversell, even if in the short term it might feel like a great success. But in the big picture, that type of approach can turn customers off and lead them to look elsewhere next time they need repairs. “What you should be doing is creating a situation in your shop where I’m looking for customers for life,” Saeli says. That starts with putting the customer first, which is also key in avoiding some of the negative outcomes that can arise from setting profit-driven sales goals. If you’re putting the customer first, the sales will inevitably come.

Training

Avoiding those negative outcomes that can come from profit-driven sales goals all starts with training. Your team needs to understand your objectives, and you need to make sure you have the right people, the right processes, and the right culture in place. “Having policy and procedure in place as to how customers are handled and how work is done in your shop need to be

clearly defined so everybody understands what our endgame is, what our goal is, what our culture is in the shop, what we provide to the customer,” Saeli says. “Focusing on that and then everybody will be doing the right thing.” When you have those clearly defined standards and a clearly defined culture, it all comes down to finding the right people who understand and fit your objectives. Make sure you have a sales staff that will put customers first and keep their needs in mind. When it comes to selling, it can be as simple as presenting the repairs to the customer in the order in which they need to be done. For example, bad brakes would be essential to fix, but there could be less dire maintenance work that could be done as well. You can present that in a list to the customer and work with them to see what their needs are. Ultimately, if you have the right people and processes and take a customer-first approach, the profit comes. And that approach will only bring your shop a positive long-term outlook. “At the end of the day, the profits are going to be a by-product of us doing the right thing for our customers and our employees,” Kleber says.

JARON KLEBER, REPAIR SHOP OF TOMORROW

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Raising the Bar

How American Pride Automotive turned around an acquired shop’s subpar reputation

BY TESS OWINGS | PHOTOS CONTRIBUTED BY AMERICAN PRIDE AUTOMOTIVE

Imagine being known as the “cheap repair option in town.”

That’s exactly how one of the shops that American Pride Automotive was known before the Virginia MSO acquired it.

That reputation comes with a lot of baggage–none of it good. It scared away the right kind of customers and attracted the type of people who wanted to get a state inspection sticker–without an actual state inspection.

American Pride Automotive has a stellar reputation for all of its locations and this one is no exception. Find out how the MSO was able to take a “cheap repair option” and bring it up to standards while increasing profits 400%.

BACKSTORY:

American Pride Automotive has six locations in Virginia and has a unique way of growing. Rather than focusing on numbers and profits, the MSO

decides it’s ready to grow based on talent. Andrew Marcotte, American Pride Automotive’s vice president, says that the company’s trigger for acquiring a new location is when someone on the team is ready to take the next step in their career and move up to store-level leadership.

“Employee retention is high so acquisition is the necessary route if you want to keep people on the team,” Marcotte says.

In 2020, a service advisor was ready to move into a leadership position and a shop, right across the street from where he lived, went up for sale. It seemed like the perfect fit for American Pride Automotive’s fourth location–but it wasn’t necessarily easy.

PROBLEM:

The shop in question was known around town as “cheap” and also a place

where you could get a not-so-thorough state inspection. Because of that, the first year involved a lot of weeding out customers who weren’t necessarily the type of people that American Pride Automotive wanted. The shop also overstocked low-level inventory and had many aspects that Marcotte would describe as an “eye-sore.”

SOLUTION:

Turning around the old shop’s reputation in the community took around a year to fully do, Marcotte says. Here are the key steps that the American Pride Automotive team took to successfully revamp a “cheap repair option” into an auto repair shop with a stellar standing in the community:

1. Have a Sense of Ownership

“He has pride in that community because it’s his,” Marcotte says of service director Brock Lewis. Living

across the street from the shop makes the customers Lewis’ friends and neighbors, which helps customers trust the shop and also makes the team want to provide the highest level of service possible.

Not only that, but the team and their families were a part of the demo and remodeling of the shop, which made them even further invested. “They have a stamp on it,” Marcotte says of the shop.

2. Get the Word Out

Nothing formal was done to let the community know that the shop had switched ownership. The sign on the outside was changed, which made it pretty clear, and the team also used its social media presence and its connections within the community. Two of American Pride Automotives then three shops were close to the new location, so the footprint was roughly seven miles. Talking with its current customers made it easy to build up a customer base for the new location, as one of the close shops was already busy.

3. Make it Your Own

T he shop, as it was, was not up to American Pride Automotive standards and a lot had to be invested to make it look like its other locations. The team inherited a lot of low-quality parts inventory. It was, to put it nicely, an eye-sore, Marcotte says. The new

location underwent an exterior and interior remodel, had the parking lot re-done, and had the carwash from the previous owners gutted and turned into a production space. “It’s a high bar facility now,” Marcotte says.

4. Find Your Customer

The customers who had been visiting the shop before were not the kind that American Pride Automotive wanted to inherit. They were the type of customers who were looking for price and price alone, Marcotte says. Weeding them out happened naturally, he explains.

American Pride Automotive is more expensive, he says, because of its quality. The previous customers were getting upset when they found

out that their oil change would now cost $70 instead of $50–it didn’t matter that it was because American Pride Automotive uses synthetic. “We focus on value,” Marcotte says of its services.

The people behind the counter at American Pride Automotive don’t talk about the price. Instead, they talk about the fact that they use original quality parts, the certifications their techs have, the quick turnaround time, and the use of digital inspections. The type of customers that they want will want that over the cheapest price in town.

AFTERMATH:

Since taking over the shop, profits have increased close to a full 400%, rising from $600,000 per year at the time of acquisition to a projected $2.4 million for 2024.

TAKEAWAY:

Marcotte says that there are two ways to go about an acquisition. You could get an already fully profitable business or a business in need of some work–either way, you’re going to pay, he says. The profit ceiling is higher for the latter, as long as it has the demographics you want and the potential to be something different. “I like a challenge,” Marcotte says of this acquisition.

It really was a challenge, he says, but with the profit increase, he says that the ‘juice was definitely worth the squeeze.’

“Don’t be afraid,” Marcotte says. “We’re actively looking for operations like this because when you turn it around, there’s so much pride with the finished product.”

THE 35,000-FOOT VIEW

Breaking Down Equipment Costs

When you buy a new piece of equipment, what does it really cost?

BY R. “DUTCH” SILVERSTEIN

A fundamental calculation to make before buying or leasing a piece of equipment is to not only determine whether it will pay for itself but also if it will produce a profit. There is a terrible calculation that is often used by those selling the equipment to “help” the potential buyer make this decision, and it generally goes something like this: Sales revenue generated by the use of the product minus the cost of production in labor dollars for that operation. That number is then divided into the monthly payment to determine the break-even number. An example might look something like this:

• Equipment cost = $24,000

• Monthly payment = $845

• Sales price of service performed= $100

• Labor cost = $35

The equipment salesperson would likely say, “Divide your monthly payment of $845 by $65 ($100-$35=$65) to arrive at your break-even number of 13.”

He might then continue, “If you do the job 13 times you break even and pay for the equipment, and on the 14th time you make a profit.” With few exceptions, this is profoundly untrue in almost every case. What the salesman wrongly assumes is that all of the revenue aside from the direct labor cost is applied to the monthly payment as a result of the use of the equipment. But we know this is wrong. We have fixed expenses that must be paid irrespective of whether we have customers or not. We need to know how much revenue we must produce each hour we are open to meet our expenses including desired profit. Is there a quick way to approximate how much revenue a piece of equipment must generate to cover our obligations and make a profit? Yes, there is. Note your gross revenue for the last calendar/fiscal year and your pre-tax net operating profit, both of which are on your P&L. In its simplest form, your pre-

tax net operating profit is the amount you are left with after all of your expenses are paid at the end of the year before paying the tax needed to pay on your profit. If your business had a gross revenue of $500,000 last year and at the end of the year you had $50,000 remaining (before taxes), your business would have a pre-tax net operating profit of 10%. An industry goal is 20%, though most independent shops are below 10%.

When we buy a piece of equipment, we must generate additional revenue to pay for it or be compelled to take the money out of company savings. In our example, the shop owner has a monthly payment of $845. If their shop has a pre-tax net operating profit of 10%, (he keeps 10 cents out of every dollar) the equipment must generate an additional $101,400 per year/ $8,450 per month/$405.60 per day (based on 250 working days per year) just to break even in one year. To accomplish that, they have several choices: 1) divide that figure by their average R/O and figure out how much additional car count he needs to pay for the equipment, 2) determine how much is needed to increase the current ARO to cover the cost of the equipment based on historical average, 3) raise his labor rate to spread the cost over all of the shops total average monthly hours. There’s an old expression in business: “Gross revenue pay the expenses, Net pays the owner.” This calculation teaches us that the more we increase our net operating profit as a percentage of sales, the more we get to keep as owners. Additionally, it provides a barometer that we may use to measure our success and judge how well our business model is performing. As a bonus, it also helps to show us the true cost of the “discount” that we gave someone. Remember that $3 bulb you gave your customer? Well, if you have a 10% NOP, you need to sell $30 to pay for it. The calculation I mentioned at the beginning of this column works if all of your monthly fixed expenses have

been paid at a point earlier in the month. So, if you’ve had a great month, and by the Wednesday of week three (of a fourweek month) you’ve paid all of your fixed expenses, then and only then can you apportion more of the revenue earned by use of the equipment towards paying for that equipment.

It’s something to think about.

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