Ratchet+Wrench - January 2023

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01.23

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

PERKS THAT WORK PAGE 30

EV REPAIR SAFETY PAGE 34

STOKES

RISSY SUTHERLAND ON GROWING UP IN THE SHOP, LEADING A FRANCHISE AND LIVING HER BEST LIFE

RAMP UP REVENUE PAGE 36

PAGE 34

PAGE 26

‘I’ve just always liked a challenge’ Rissy Sutherland has succeeded in mutiple industries, but the auto industry was her fi rst love.

RATCHETANDWRENCH.COM

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01. 2 3 / R + W / 3

JANUARY

1.23

VO LU M E 11 NUMBER 1

07 EDITOR’S LETTER Small steps, great distances

9 BREAKDOWN Tech trends to watch in 2023

13 NUMBERS A look at industry labor rates

12 SPEED READ MEMA Reorganization Aims to Strengthen Aftermarket Future

15 ADAPT Electrification takes center stage at AAPEX/SEMA

16 SHOP VIEW Ellis Automotive Aurora, Colorado

19 STRAIGHT TALK Preparation is key to outlasting economic downturns JOE MARCONI

20 FEATURE The role of non-profit shops in the auto care landscape

26 PROFILE

A Helping Hand Second Chances Garage helps individuals and famiilies below the poverty line with discounted auto repair.

Rissy Sutherland on her passion, purpose and plans

30 HUMAN RESOURCES 7 great perks when full benefits isn’t an option

32 CASE STUDY One shop’s approach to making digital marketing work

34 EDUCATION+TRAINING

F E AT U R E

20

26

Two nonprofit shop leaders talk about how their shops began, the importance of their work and its community impact.

For more than two decades, Rissy Sutherland has displayed an insatiable passion for the auto care industry.

BY CHRIS JONES

BY ALISON JOHNSON

FEATURE

PROFILE

How to work on EVs safely

36 THE FIXER Forecast, and then execute A ARON STOKES

ON THE COVER: RISSY SUTHERLAND, OWNER OF DRIVE AUTOMOTIVE PHOTOGRAPHED BY GERALD DAVIS

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EDITORIAL CONTENT DIRECTOR Matt Hudson EDITOR Chris Jones CONTRIBUTING WRITERS Joe Marconi, Aaron Stokes, Kimanzi Constable, Nolan O’Hara and Alison Johnson PRODUCTION SR. ART DIRECTOR Jonathan Ricketts ART DIRECTORS Emme Osmonson, Molly Van Brocklin PRINT PRODUCTION ASSISTANT Hana LeBrew SALES VICE PRESIDENT AND PUBLISHER Chris Messer 651.846.9462 / cmesser@endeavorb2b.com ASSOCIATE PUBLISHER Andrew Johnson 651.846.9459 / ajohnson@endeavorb2b.com MARKETING STRATEGISTS (NATIONAL ACCOUNTS) Marianne Dyal 706.344.1388 / mdyal@endeavorb2b.com Chad Hjellming 651.846.9463 / chjellming@endeavorb2b.com Bob Marinez 216.533.8747 / bmarinez@endeavorb2b.com Martha Severson 651.846.9452 / mseverson@endeavorb2b.com Kyle Shaw 651.846.9490 / kshaw@endeavorb2b.com Dan Thornton 734.676.9135 / dthornton@endeavorb2b.com Sean Thornton 269.449.0257 / sthornton@endeavorb2b.com ASSOCIATE MARKETING STRATEGIST (NATIONAL ACCOUNTS) Kenzie Verschoor 651.846.9472 / kverschoor@endeavorb2b.com REGIONAL SALES MANAGER Matt Harper 651.846.9551 / mharper@endeavorb2b.com SENIOR MARKETING STRATEGIST (REGIONAL ACCOUNTS) Melody Todd 651.846.9468 / mtodd@endeavorb2b.com CLIENT SERVICE SPECIALIST Jen George 651.846.9465 / jgeorge@endeavorb2b.com CUSTOMER SUCCESS REPRESENTATIVE (REGIONAL ACCOUNTS) Autumn Morey 651.846.9460 / amorey@endeavorb2b.com ENDEAVOR BUSINESS MEDIA GENERAL MANAGER AND PRODUCTION MANAGER Mariah Straub BOOKKEEPER AND CLIENT SERVICE SPECIALIST Meghann Moore SENIOR DIGITAL MEDIA STRATEGIST Tiffany Fowler ADMINISTRATIVE ASSISTANT Karley Betzler EDITORIAL ADVISORY BOARD Ryan Hillebrand, Urb’s Garage; John Miller, Fifth Gear Automotive; Rob Choisser, Choisser Import Auto Services; Doug Grills, AutoStream Car Care Center; Lucas Underwood, L&N Performance Auto Repair; Bruce Howes, Atlantic Motorcar Center HOW TO REACH US ENDEAVOR BUSINESS MEDIA 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web endeavorbusinessmedia.com The annual subscription rate is $90 (U.S.A. only) for companies not qualified to receive complimentary copies of Ratchet+Wrench.

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EDITOR'S LETTER

1% Better Everyday CHOOSE MEANINGFUL LEAD MEASURES THAT CRUSH YOUR LAG MEASURES

In his best-selling book, “Atomic Habits,” Michael Clear argues that the great-

est successes come from compounding marginal habits. That by getting 1% better each day, you’ll become 37 times better by the end of the year.

This takes us to lead and lag measures.

Your shop’s financial goal is tied to your team’s efficiency. Your ARO is tethered to your technician’s ability to inspect and your Google Reviews are connected to the thoroughness of your technicians and your customer service.

Imagine focusing your 1% improvement on inspections. What would your shop look like if it were 37 times better on Dec. 31, 2023, as a result of performing better inspections? Choosing the right lead measures—and getting your team behind them—makes all the difference.

Along those same lines, Aaron Stokes uses a similar concept to encourage shop owners to set powerful income goals based on a proven method to elevate their shops to new heights in his column, “The Fixer” (p. 50). He warns shop owners who don’t set goals or plan that, “If you don’t make revenue plans for your shop, somebody else will—be it a more aggressive shop down the street or a dealership.”

Speaking of goals (and dreams), Ratchet+Wrench writer Alison Johnson sat down with auto care industry icon Rissy Sutherland, CEO and president of Drive Automotive Services in this month’s Profile (p. 34). Southerland shares how she got into the industry as a young woman, her passion for the auto care industry, and going from repair auto repair shop to running a $40 million dollar automotive repair chain located in four states. You don’t achieve that sort of growth without having goals, measures and accountability.

In this month’s feature, you’ll read about a pair of nonprofit garages—The Lift Garage in Minneapolis, Minnesota, and Second Chances Garage in Frederick, Maryland. These two auto repair shops operate with the same level of service,

equipment and integrity as their for-profit counterparts with two exceptions—repair rates and target market. While transportation scarcity shouldn’t be a thing in 2023, it is, and these two shops provide deeply discounted rates and vehicle purchasing options to help underprivileged individuals and families meet their basic needs without concerning themselves about costly auto repairs.

Finally, in a story that reaches into our 2022 Ratchet+Wrench Industry Survey, we look at at what shop owners can do when they can’t provide full benefits to their team members. From Costco memberships to massage and chiropractic care, these shop owners shared their creative compensation tips that keep their technicians happy and satisfied (p. 39).

I hope you’re as excited about 2023 as I am. I look forward to making new connections across the industry and finding better and more effective ways to serve you.

Cheers.

SCHEDULE A DISCOVERY CALL

CHRIS JONES, EDITOR CHRISTOPHERJ@ENDEAVORB2B.COM

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JUMP START

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N E WS I D E AS PEO PLE TRENDS

EMERGING TECH TRENDS FOR 2023 Industr y experts weigh in on vehicle trends and technology for the incoming year

BY HANNA BUBSER

01. 2 3 / R + W / 9

It’s officially 2023. While the modern

world may not look quite like the one predicted by “The Jetsons” television show, technology has still crafted much of today’s society and that certainly includes the automotive aftermarket. Just because flying cars aren’t the norm doesn’t mean vehicle technology isn’t vastly different than it was even just a few years ago, and shops are paying attention.

All it takes is one look at the 2022 Ratchet+WrenchIndustrySurveytounderstand how shops are engaging with vehicle technology. For example, 32% of respondents noted a shop specialization of hybrid repair and 13% said that they specialized in electric vehicle repair.

Additionally, 61% of survey respondents cited ADAS as their intention for investment in the next five years, and 41% said it would be EVs. As the industry settles into a new year, these responses have the potential to become an especially vital component of the approach to automotive repair. That’s because innovative technologies are not going to stop emerging. The way vehicles are repaired willcontinuetoshift,anditisimportantto stay informed.

So, what exactly is the forecast for vehicle trends and technology for 2023?

Ratchet+Wrench reached out to a few industry experts to hear their thoughts.

Ben Johnson, director of product management at Mitchell 1

“In my opinion, the same two trends we started 2022 with will be the same two trends that will be prominent in 2023: The continuedgrowthofelectricvehicles(BEV, HEV, PHEV) and vehicles equipped with ADAS coming into the shop.

For ADAS, the realization has to come that whether a shop knows it or not, they are working on ADAS just by doing routine

“

I WOULD SAY THE CHALLENGES ARE REALLY, AS THEY’VE ALWAYS BEEN, FOR THE SHOP OWNER TO ACCEPT AND EMBRACE THAT NEW TECHNOLOGIES MEAN NEW OPPORTUNITIES.” BEN JOHNSON DIRECTOR OF PRODUCT MANAGEMENT AT MITCHELL 1

thrustanglealignmentsandmanyother‘nonADAS-specific’typesofrepairs.Inadditionto those,vehiclesequippedwithADASfeatures are now aging to the point we should begin to see some sensor failures, etc. Shops are going to have to ask themselves how they are going

to ensure these vehicles are returned to their owners in proper operating condition.

Regardingelectricvehicles,again,whilethe popularity of these vehicles varies regionally, shops need to understand it’s not a question of ‘if;’ it’s a question of ‘when’ these vehicles start showing up in your service bays. Turning them away is not a solution for growth.

Addressing them, like many other emerging technologies we’ve dealt with over the years,willrequiresometrainingandsome gear, but most of the repairs are going to be repairs we’re used to (brakes, suspension, steering, CV joints , etc.)

To summarize, I would say the challenges are really, as they’ve always been, for the shop owner to accept and embrace that new technologies mean new opportunities. Ignoring them has never been a good business decision.

Embrace them and reap the long-term rewards!”

Allison A. Whitney, content manager at AUTEL

“I think the challenges facing shops in the next year will include how to service new energy vehicles such as electric and hybrids and enabling technicians to access the education, training and tools needed. Another challenge will be servicing the increasing number of vehicles with advanced driver-assistance systems such as automatic emergency braking, lane keep assist and blind spot monitoring.

Calibrating the input devices (camera, LiDar, Radar) inherent in these systems requires a shop to have significant space and a comprehensive calibration frame system, and skilled technicians.”

Duane ‘Doc’ Watson, technical trainer at Bosch Automotive Aftermarket

Ben Johnson director of product management at Mitchell 1

“With this surge in electric vehicles, automotive repair shop owners and technicians will need to make decisions on electric vehicle-relatedtrainingandtools/equipment.

Of course, these decisions are not easy and whatever a shop owner decides will be based on many factors including the following: Does investing in EV tools and equipment make sense for my market/customer base?

An automotive repair shop in California, the state with the largest density 10 / R + W / 01. 2 3

of EV drivers, will most likely consider investing in tools and equipment given electric vehicles are likely to come through the shop. On the flip side, a shop in a rural region/state, where there are far fewer electric vehicles on the road, may not have to invest in certain resources until EVs become more prominent in that area.

Should I be an early adopter–regardless of market?

When we view automotive technology historically, there is no shortage of shifts that challenged shop owners to adapt to new norms. For instance, when ADAS was first introduced, many shop owners across the country viewed it as a niche. Today, pretty much every new vehicle sold has some level of ADAS and it has become vital technicians are trained and up to date with tools and techniques.

Electric vehicles will be the norm one day and for many automotive repair shops, especially in rural areas, it may be smart to invest resources into technician training and equipment that’s applicable to EVs and gaspoweredvehicles–high-capacityliftingtables for instance are a perfect example of equipment that is essential for EV repairs yet can be used in gas-powered vehicle repairs.

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How can EV equipment be a marketing option to draw new customers?

Being capable of servicing electric vehicles is very niche, however, the market for it is there. Servicing and providing amenities to EV owners–including offering charging stations–could be used as a way to attract and retain new customers.

Cars are becoming more like computers every year, which means shop owners will have to pay attention to tool and equipment updates, as well as make sure their technicians are properly trained and up to date with new technology If shop owners aren’t up to date on industry news, tool updates and new requirements from OEMs then they run the risk of missing out on vital information which could directly correlate to how they service their customers. For instance, ADAS recalibration is becoming ever more important, but the processes can change with new vehicle models and are not the same across manufacturers. That’s why it’s important to have technicians of all skill levels to be enrolled in multiple training sessions a year.”

Allison A. Whitney content manager at AUTEL

IF SHOP OWNERS AREN’T UP TO DATE ON INDUSTRY NEWS, TOOL UPDATES, AND NEW REQUIREMENTS FROM OEMS THEN THEY RUN THE RISK OF MISSING OUT ON VITAL INFORMATION WHICH COULD DIRECTLY CORRELATE TO HOW THEY SERVICE THEIR CUSTOMERS.” DUANE ‘DOC’ WATSON TECHNICAL TRAINER AT BOSCH AUTOMOTIVE AFTERMARKET

Duane ‘Doc’ Watson technical trainer at Bosch Automotive Aftermarket

01. 2 3 / R + W / 11

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

MEMA, North America’s leading trade association for representing motor vehicle component manufacturers, announced it will reorganize its four divisions Aftermarket Suppliers Associations (AASA), Heavy Duty Manufacturers Association (HDMA), MERA - The Association for Sustainable Manufacturing, and Original Equipment Suppliers Association (OESA) under its primary umbrella.

‘We are taking steps to position for the future, and more importantly, we’re taking steps to better help our members be prepared for a changing future so we can serve them to help our members be successful, and to be an association that helps our members be ahead of the curve,” said Paul McCarthy, president and chief executive officer of the Automotive Aftermarket Suppliers Association (AASA).

The organization will now represent these four divisions in two groups: MEMA Aftermarket Suppliers Group and MEMA Original Equipment Suppliers Group.

“We will integrate our three aftermarket 12 / R + W / 01. 2 3

groups into one aftermarket supplier group, and we will be stronger by association,” he said.

In a press release distributed by AASA, Bill Long, president and CEO, MEMA. reinforced that the quality of the organization’s education and its commitment to serving its members would remain strong.

“No other organization can compare with MEMA’s longevity, respect, depth of knowledge, and commitment to the supplier industry,” says Long. “With these changes, we leverage one MEMA, providing more services to all members in each respective market segment, greater platforms for industry dialogue, and one collective voice on behalf of our members.”

McCarthy also indicated that aligning the groups would present a stronger more united front in Right to Repair, stating that coming together “allows us to speak up and fight for the interests of the aftermarket and of aftermarket suppliers.”

According to Long, MEMA’s mission, vision, and dedication to its members and the automotive, commercial vehicle, and remanufacturing industries have not changed.

It remains focused on advancing the business interests of vehicle suppliers and working to successfully navigate the future of transportation and sustainability.

The association will launch its new brand and organizational structure in January 2023.

ASE launches ADAS Specialist Certification Test (L4) The National Institute for Automotive Service Excellence (ASE) has introduced a new ADAS Specialist Certification test (L4).

The certification is aimed at automotive technicians who “demonstrate the technical knowledge to diagnose, service, and calibrate advanced driver assistance systems on automobiles, SUVs and light-duty trucks,” according to ASEs website.

Technicians pursuing the certification must have passed either the Automobile Electrical/Electronic Systems (A6) or Collision Mechanical & Electrical Components (B5) test and can expect content focusing on “diagnosis, service and calibration of radar, camera, ultrasonic and other advanced driver assistance systems.”

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MEMA Reorganization Aims to Strengthen Aftermarket Future

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

GETTING PAID PROPERLY

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Increasing your labor rate can be scary, but not as frighting as not being paid what you’re worth

— Diagnosing today’s vehicles involves more than turning a wrench. Technicians need to perform computer-based diagnostics, learn new tools and still do the basics well. Car repair isn’t cheap— nor are the tools and training. Learning to charge what you’re worth is paramount to running a successful shop.

Raising rates can be scary, but when properly done and explained to the customers, it’s a natural procession of serving them to the best of your ability.

As we get closer to 2030 when EVs are expected to become more common, 41% of shop owners are planning to be prepared for them in the next five years.

A closer look at labor rates

Shops charge under $100 per hour

Shops that have labor rates more than $130 per hour

Shops that have raised their labor rates in the past two years

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Contact your local dealer to place your Genuine or Advantage Select parts order today.

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23

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

SEMA/AAPEX 2022 Spotlight Electrification

The annual events were a hotbed for conversation surrounding electric vehicles and technology

BY HANNA BUBSER

In November 2022, the annual Specialty Equipment Market Association Show (SEMA) and Automotive Aftermarket Products Expo (AAPEX) took place in Las Vegas. ADAPT was on the trade show floor to report on the latest and greatest information regarding emerging technology, electric vehicles and more.

There was a lot of ground to cover, but here is an overview of a couple of key areas from each show.

SEMA Showcases Electric Vehicles The SEMA Show is known for its cars.

Everywhere you turn, be it inside the Las Vegas Convention Center or outside in the lots, there are impressive vehicles.

Some are customized and others are new to the market, but they each have a story to tell. Not to mention they all make for great photos on social media feeds.

While the car-spotting element of the show is a huge draw, there was another theme throughout SEMA 2022 that drew some attention: electrification.

SEMA Electrified drew a crowd within a 21,000-square-foot area dedicated to over 35 vehicles and nearly 60 different exhibits. SEMA Electrified is an electric vehicle hub that debuted in 2019. In 2022, it was the largest it had ever been.

SEMA Electrified showcased a multitude of custom EVs as well as new EV options such as the Karma GS-6. There were new versions of beloved classics

like a re-imagined 1965 Ford Mustang from Inspire EV and a 1964 Ford Galax-E 500 from Conductive Classics that has a Tesla Model 3 drivetrain, brakes, wheels and single rear motor.

AAPEX Tackles EV Batteries The future of the aftermarket is a topic that looms over nearly every industry interaction these days. It’s a vast subject full of unknowns, which can be understandably intimidating. But with those unknown areas comes untapped opportunity, and that was a big takeaway across AAPEX this year.

There was an educational session on the final day of the show called, “Preparing for Battery Service on Electric Vehicles” that exemplified this notion. It was presented by Keith Hospodarsky, global EV platform senior manager at Midtronics.

Hospodarsky leveled with the audience as they listened to his presentation.

He said that those in the audience may be wondering why they should pay attention to this kind of vehicle service, and he was prepared to tell them the reason.

“These vehicles are going to be on the road and they’re going to need service,” Hospodarsky says.

He outlined a general approach that shops should have regarding EV battery service, which included the following steps: Familiarize yourself with the technology, select a service strategy

HANNA BUBSER

and investigate the service applications, equipment and training that is needed to be successful.

AAPEX also featured a New Product Showcase that included various products relevant to new technology and EVs. Some of these relevant products were the Autel MaxiCHARGER Commercial Charger for Level 2 EV and plug-in hybrid vehicle charging, Electric Vehicle Charge Cables from WAIglobal, an EV Braking Kit from Brembo, the PulseQ charger and Augmented Reality Glasses from TOPDON and many more.

2 0 2 3 D AT E S C O M I N G S O O N !

GO TO ADAPTSUMMIT.COM FOR UPDATES A D A P TA U T O M O T I V E . C O M

A D A P TA U T O M O T I V E . C O M / FA C E B O O K

T W I T T E R .C O M /A DA P T_ AU TO

01. 2 3 / R + W / 15

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

Ellis Automotive

BY CHRIS JONES

P H OTO G R A P H Y BY M E L A N I E WAT S O N

Founded in 1995 by Rod Ellis, Ellis Automotive in Aurora, Colorado was the recipient of a 2017 AAA top shop award, as well as the 2020 Top Shop of Colorado award winner. Semi-retired today, Rod Ellis helps the shop with its marketing while son Kiley runs the day-to-day operations alongside his long-time technician, Jim Marler, who came with the shop and continues to serve many of the same legacy customers.

Elis Automotive has six bays, “three in the front and three in the back,” says Kiley Ellis, and has ample parking typically—30 spaces—but he points out that he’s having trouble with parking due to a high influx of vehicles on the lot for repair.

The lobby at Ellis is spacious, featuring white walls trimmed in red with a large red accent wall at the entrance. Couches and an easy chair make for comfortable seating for waiters.

“We try to manage to do all of our waiters between 7 and 8 in the morning. Most of the time, I will schedule any waiters at 7:30 and they will be done by 8:30, and that’s just oil changes,” says Kiley Ellis.

The service area is in clear view of the entrance making it easy for his staff to connect with customers as they enter.

“Right as you come in, you’re greeted by somebody … it’s very open,” he says.

To the left of the service desk is a door leading into the shop, which Kiley Ellis says is full of much of the latest equipment on the market.

“For the most part, all my lifts are new so we are really focused on also having the best equipment possible. So, over the last two or three years, I think I’ve put two or three new lifts in, so each guy has their own new lift. I bought a brand-new brake lathe for them. The tire balance machine is like 10 years old, but I mean it was the latest and greatest technology when we bought it. The tire balance or the tire mounting machine is pretty much brand new, or it’s 10 years old too. I have two brand new Zeus scan tools. I have another Snap-On scan tool, a Solus. Two of everything: two transmission jacks, one for dropping fuel tanks and one for transmissions. I mean everything is brand new,” Kiley Ellis says.

16 / R + W / 01. 2 3

ELLIS AUTOMOTIVE Owner: Rod Ellis Location: Aurora, Colorado Staff Size: 10 Shop Size: 6,000 square feet Number of Lifts/Bays: 6 Average Monthly Car Count: 500 Annual Revenue: $2 million

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

01. 2 3 / R + W / 17

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Columns

STRAIGHT TALK Joe Marconi

YOU CAN (AND WILL) SURVIVE AN ECONOMIC DOWNTURN

MICHAEL HOEWELER

Speaking with shop owners around the country, it appears that the recent surge in

business may be showing signs of vulnerability. For most automotive repair shops, the past few years have been a comfortable ride with sales and profits exceeding expectations. While no one can predict what will happen in the future, should we be concerned at this point?

The COVID pandemic may have been a challenge for businesses in general.

However, it proved to be a minor blip on the economic radar screen for most repair shops. Yes, there were some areas around the country where business slowed to a crawl and some repair shops had to close their doors permanently. But for the most part, the conditions caused by the pandemic created the perfect opportunity for most auto repair shops. Will this perfect opportunity lead to the perfect storm?

Let’s take a closer look.

Due to the pandemic, many repair shops received some monetary relief in the form of the Economic Injury Disaster Loan, the Payroll Protection Program, and more recently, the Employee Retention Tax Credit. The concern is what these programs are having on the economy. Another issue is this: Did these programs give us a false sense of accomplishment, boosting our cash reserve when most shops experienced an increase in business?

If we are honest with each other, then we need to consider two things. How many of us were prepared for such an extraordinary event as COVID? And how much of the recent boon in our businesses resulted from anything we did? Most shops are reaping the rewards of ideal conditions caused by factors that were mainly out of our control Today, we face high inflation, rising interest rates, parts shortages, a technician short-

age, rising wages and a possible recession.

Is this all doom and gloom? No, of course not. As a former shop owner who spent 41 years working in the trenches, I have lived through many economic downturns and survived.Fromeacheconomicdownturn,the hardships endured led to valuable business and life lessons for those willing to view the tough times not as stumbling blocks but as stepping stones to a better future.

The strategy now for shop owners is to build their companies to prepare and withstand the unknowns. You cannot assume things will stay the same. They never do. Complacency can be just as damaging as fear and negativity. Revisit your key performance indicators to ensure you continue earning a profit. Build a healthy cash reserve. If needed, adjust your pricing, margins and labor rates. Get your personalfinancesinorder,too.Continueyour marketing efforts, especially if you feel you are heading into a slowdown. Don’t make the mistake that so many companies make and pull your advertising budget to cut expenses.

Bump up your training programs and invest in new technology. Perhaps the most important component in preparing for the future is assembling a great team of employees and creating a workplace environment that tells your employees, we care, and we want you to stay Our economy goes through wild swings, combined with good and bad times. The truth is that no economic situation is sustainable forever. The companies that prepare and grow their companies in the best of times will make it through the tough times. However, surviving is not the goal; thriving is. Become diligent with your approach to your company.

Work hard today to grow your business in every aspect. Preparation, combined with hard work, will always pay off in any economy.

Joe Marconi has more than four decades of experience in the automotive repair industry.

He is the former owner of Osceola Garage in Baldwin Place, N.Y., a business development coach for Elite Worldwide, and co-founder of autoshopowner.com. j.marconi@eliteworldwide.com ratchetandwrench.com/marconi

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HOW NONPROFIT SHOPS work independently & collaboratively with for-profit shops to

MEET THE NEEDS OF THEIR COMMUNITIES

BY CHRIS JONES

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Cathy Heying saw the effect transportation scarcity had on poverty firsthand. As a social

worker who was also a ministry volunteer, she witnessed repeated encounters where having basic transportation would directly affect the person’s quality of life and upward mobility. “A running car could help them get out of the shelter and into a job,” Heying recalls.

Seeing how the stress of unreliable or nonexistent transportation had on the people she served, Heying decided to do something about it—she pursued a career change into automotive repair.

“I went back to technical school when I was 38 to get an associate degree in auto technology because I saw a need for low-income folks to have access to really affordable car repair, and I wasn’t seeing that need being met in my community,” Heying says.

After graduating, she worked as a technician to learn the ropes before moving forward with her greater philanthropic plan of helping the underserved with their vehicle repair needs. That happened in 2013 when she founded The Lift Garage in Minneapolis, Minnesota, opening one day per week

Over the next five years, the shop grew.

Heying subleased two additional bays from her property owner, and then a third, before taking over the lease to the building. In 2018, she moved the shop into a larger location—3,200 square feet with five bays—and purchased the space within two years. Today, The Lift Garage sees 130 cars per month, though because of the demographic it serves, not every vehicle is fixable.

“About 20 of them that we see we recommend that the customer doesn’t invest any further. A lot of times, especially here in Minnesota, cars have a lot of rust that can get to a point of being unsafe and not fixable without replacing the entire subframe,” Heying says, mentioning that the shop also doesn’t place a proverbial bandage on broken arms. “We see a lot of cars that maybe the transmission is slipping, and so we don’t feel in good conscience that we can put a pair of brake pads on a car [where] the transmission can go any time.”

Since Lift Garage is a nonprofit servicing those in need, income requirements must be met before repairs can happen. Customers must be 150% of the federal poverty guideline or below, which means a single-person household’s maximum income should be $20,000 per year or less. The income baseline increases based on the number of people in the home. Once the requirement is met, customers are free to visit as needed.

One aspect of the service The Lift Garage offers that’s especially helpful to Heying’s customers is free pre-purchase inspections.

“The folks we’re seeing are on the low end of the economic spectrum; some are looking to buy a car and bring it to us for a free inspection before they buy it. We can help them make the best decision they can with their limited funds, and they can bring us as many cars as they need to feel good about their purchase,” Heying says. While Lift Garage does a variety of repairs at a fixed cost—$15 per hour for labor plus parts at cost—they focus on needed repair and not cosmetic repair. Those customers are referred to standard auto repair shops.

“We focus only on safety and drivability. So yeah, if your radio isn’t working, or your rear passenger window is stuck down, we’re 01. 2 3 / R + W / 21

NOT FOR PROFIT

going to help you get that window back up.” Heying says.

One of the best benefits customers get from The Lift Garage is its educational offerings. Customers can take classes to learn more about basic car maintenance and when they can make repairs or should bring the car in for a diagnostic. This allows customers to better care for their vehicles, so they last longer.

“The class is designed not so much to teach people how to fix their cars, I would say it’s basic knowledge about how cars run so that you can do some of the basic things yourself, but also, you can know when you need to panic and when you don’t. It’s helping people understand the differences: what are your options if this light comes on and should you keep driving or not? It’s about how to be a good vehicle owner,” she says.

Working with Outside Shops

Since Lift Garage is a nonprofit auto repair shop, there are times when it needs to enlist the help of outside shops to help with advanced repairs it’s unable to perform “One of the things that we are exploring with a shop here in town is they have agreed to take one car a week that we send over to them. They will charge the customer the same rates we charged them,” she says, pointing out that the other shop doesn’t lose on profit in the end. “So, let’s just say one of our customers gets referred there and it is a threehour labor job. The customer is going to pay $45, but the shop needs to get $153.

We subsidize the other $108 so that tech is not losing out. The customer is still getting service at the same rate, and it helps us to expand our services, and that shop gets to participate in making the community better.”

Heying believes this partnership between The Lift Garage and neighboring for-profit shops is a working model that shops all over can replicate to do good and elevate their communities without feeling like they’ll lose profitability doing reduced-cost work.

“We’re just trying to be creative with how we engage with neighborhood shops because we do think there are ways that they could be great partners without having to do a huge amount of sacrifice or starting their own nonprofit or losing a lot of money.”

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Collaborative Environment JoHanna, operations director, works together with Steve, one of the shop’s technicians.

Care Package The Lift Garage offers free winter car packages for customers to take as needed.

BRE MCGEE

Uplifting Cathy Heying left social work to roll up her sleeves and make a measurable difference.

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NOT FOR PROFIT

A Second Approach

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Serving the People John Grupenhoff takes great pride in providing low-cost auto repair to a community with transportation needs.

When Transportation Lack Becomes Life or Death —

As told to Chris Jones

“We’ve had a customer who’s been with us since 2014. When he first started coming to us, he brought us this car that a relative had given to him that wasn’t running very well. He had been diagnosed with anal cancer and did not have a good prognosis.

His cancer treatments were at a hospital in the suburbs, and he had to have a colostomy bag.

He was having to get on the bus and ride for an hour to his chemo treatments (with a colostomy bag hanging). It was just wildly undignified, plus painful. We got this car running for him—a 2002 Kia—and we’ve kept it running all

these years. We just did a timing belt on it, and he stopped in my office to tell me he had just been to the doctor and has been in remission for some time, and they have declared him officially cancer free. He believed that we played a role in his healing because he said he was in hospice—the prognosis was death— and he [felt] having some of the stress removed of how to get to his appointments and the embarrassment and lack of dignity of being on the bus with a colostomy bag and knowing he would not be late for my treatment because the bus was late and

LAMAR GOODWINE

While some nonprofit shops, like The Lift Garage, focus strictly on repair and maintenance, others, like Second Chances Garage in Frederick, Maryland, restores and sells vehicles to those in need. Founder Rick Trawick adopted this model after being inspired by Cars for Clunkers, a service that paid for and disposed of junk cars.

Trawick believed he could build from that foundation by purchasing unwanted vehicles, repairing them, and then selling them to low-income individuals and families at an affordable price.

“It was a small organization taking in donated cars, fixing them up, and getting them back to the community for originally $300. Today it’s $500 plus taxes, title and tags, and our recipient gets a car for $780,” says Sales Manager John Grupenhoff, who joined the nonprofit in 2016 as a technician.

Like The Lift Garage, Second Changes provides a reduced repair program at a deep discount to ensure that low-income people can get back onto the road quickly without breaking the bank.

“That labor rate is about half of what the other shops charge and lower markup on parks for people who are qualified. And the qualifications are just federal guidelines for low-income individuals. So, if they’re lower income, we can work on their vehicle for a reduced rate. [We offer] the same services and same shop environment as a regular shop, we charge less for those customers,” Grupenhoff says.

Customers find out about the program through any one of the nonprofit’s 50 local partners who identify the customer’s needs and point them to Second Chances if they meet the income requirements. This external vetting process saves Second Chances time and effort and helps them to serve customers faster.

“They tried to qualify the people here at the shop and they just found it was just difficult. So, we rely on the community partners and some of the nonprofits here in town to do that for us. What we want to do is take care of transportation for people,” Grupenhoff says.

One area of goodwill provided by Second Chances Garage is through its apprenticeships. They see it as providing an opportunity of training young technicians in their vocation and for community service.

“We take on one apprentice per half a year just for training purposes out of the

local high schools. The way that works is GearWrench gives us actual funding to pay the salaries for the person and then at the end of their hours with us, we’ll give them a toolbox outfitted with tools. GearWrench gives it to us, and we give it to them,” he says.

Grupenhoff loves his work at Second Chances, saying that working at a nonprofit garage is rewarding. Meeting the transportation and vehicle repair needs of low-income individuals and families is an aspect of service he encourages all repair shops to do.

Finding people in need is the easy part of this business, he says.

“Maybe a church or some organization is going to know as somebody who has a car that needs repairs or is trying to get a car on the road or do an inspection or something,” Grupenhoff says. “It’s very rewarding. This is the year when maybe more people are in need. Because now, it’s crunch time. If you can, if there’s ever a time where you wanted to help

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Auto care news

where you need it, when you want it.

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THE ICONIC R I S SY S U T H E R L A N D Rissy Sutherland talks candidly about her auto care roots, becoming a shop operation expert and what makes her happy

BY ALISON JOHNSON

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PHOTOS BY GER ALD DAVIS

Shop Girl After growing up in the shop, Rissy now owns several shops across six states.

At age 12, Rissy Sutherland’s daily wish

was to answer phone calls at her father’s automotive repair shop in South Carolina.

“I kept asking him if I could please, please answer the next one, until he finally said yes,” Sutherland relates. “Turns out, that ‘call’ was him posing as a customer, seeing if I could do it. I was so mad, but he said I passed the test.”

She pauses to laugh at the memory, speaking by car phone on a drive between business sites in Houston and Dallas. “So, clearly, I never wanted to do anything else but be in this industry,” she concludes.

Two decades later, Sutherland has become one of the automotive industry’s foremost experts in shop operations, opening and operating shops in the hundreds during her career to date.

She’s CEO and president of Drive Au-

tomotive Services, an Atlanta-based corporate office that runs repair shops for all major vehicle brands across six states and under a handful of operating banners.

Drive has a team of more than 350 team members to support and provide maintenance and repair services to more than 140,000 vehicles annually.

Within the next year, Drive plans to build or acquire 55 more locations, focusing on high-growth metropolitan markets such as Atlanta, Denver, Houston, Dallas, Austin, Nashville, Knoxville and Phoenix (with a few more yet unnamed). In 2024, the company is on track to have at least 78 locations, with more than 120 under review.

In August 2021, Drive solidified its financial backing by recapitalizing with Silver Oak Services Partners, a private equity firm based in Illinois.

“This partnership allows us to grow in the best areas and choose which shop owners we want to work with,” Sutherland notes. “If I meet a good operator who wants to expand or retire, I want to help. But if I’m not the right person, I’m going to say so.

I always tell people my true opinion. The best deals and partnerships are the ones that equally benefit both sides.”

Drive’s growth keeps Sutherland, 44, and many of her team members on the road for days if not weeks at a time. Asked where she lives these days, she answers, “hotels,” but quickly adds that she embraces all of the adventures and opportunities.

Sutherland credits her past mentors and current team members, her educational background–she has master’s degrees in real estate and human resource development–and strong relationships with 01. 2 3 / R + W / 27

PROFILE / RISSY SUTHERL AND

Taking Charge Rissy is a much sought after industry expert and leader who’s known for her wisdom and ability to connect with people.

city officials and reputable contractors in targeted expansion markets.

“This is a small industry,” she says. “If I do a bad deal, word is going to spread, and everybody would know. I also grew up as an auto technician myself, as the daughter of a shop owner. I’ve been on all sides of operations.”

The next six months should be a sellers’ market, Sutherland adds. Valuations, while still high, are falling. Loan and real estate markets are tightening. Meanwhile, a coming influx of new cars will give more people the option not to repair older cars.

“There will always be cars to fix, but it’s

2 8 / R + W / 01. 2 3

not going to be the abundance of easiness that it has been,” she predicts. “If anyone is thinking of selling, now would be the time.”

To understand Sutherland’s success, it helps to understand her life. Growing up in Anderson, South Carolina, she had five older brothers and a family with an automotive franchise business; an older stepsister, now deceased, was the only sibling to resist the pull of cars.

Before Sutherland was in high school, she was learning how to change oil and repair transmissions. “You didn’t see a lot of women in the industry back then,” she recalls. “As for me, I had no idea that I was a girl

until at least ninth grade. I did all ‘boy’ things.”

Once Sutherland’s father trusted her to work his shop’s front desk, he noticed her promise and enrolled her in Automotive Training Group classes. The 18-year-old, who eventually would open her own shop, studied day and night to outperform much older men.

Sutherland also took time out to be a college student. At Clemson University, she earned a degree in biological sciences with minors in psychology and physical therapy.

She later received her two master’s degrees at Clemson and taught human resources and real estate classes for more than 10 years (she still flies in for every home football game).

The automotive industry, however, remained Sutherland’s true passion. When Moran Industries purchased her family’s franchises, she moved to Chicago and began writing and implementing training programs for all shop owners, soon becoming VP of operations/training. In nine years, she helped open, support or operate more than 200 locations.

In 2008, Sutherland partnered with Jack Keilt, an executive for Jack in the Box and several other large corporations, to create Honest-1 Auto Care. Her goals were to better serve a growing number of female customers and introduce more environmentally-friendly fluid lines and buildings. H-1 ultimately opened 75 locations.

After selling her equity in the company, Sutherland looked for new roads during a contracted non-compete period. Hired as a consulting COO for three struggling companies in three different fields—health care, inflatable play equipment for kids, and maid service—she turned each around in less than a year.

“I’ve just always liked a challenge,” she explains. “With five brothers, I guess I’ve always had to figure out how to make my

voice heard.” (Not surprisingly, many of Sutherland’s hobbies are adventurous, too: surfing, motorcycles, wake-surfing, hiking and deep-sea fishing. Plus, golf.)

Sutherland has been Drive Automotive’s CEO for five years. Her top piece of advice to shop owners is to spend 60 percent of their time on people: recruiting and training employees and developing good relationships with them and customers. That leaves 30%for sales and 10% for profits, as taught to her by one of her mentors.

“That last piece should fall right into place if the first two are solid,” she states.

In addition, owners should plan days out first thing in the morning as much as possible: “Be there at least 30 minutes before opening. Listen to messages, deal with equipment issues, come up with strategies. Otherwise, it’s too easy to get overwhelmed. You want to be working ON the business, not IN the business.”

Sutherland also is a person who cares deeply about others. She has been involved in foster care ministry for many years, founding and supporting organizations that provide kids with mentor-

ship, scholarships, career training and gift packages.

“I felt God calling me to serve them before they age out of the system at 18 and don’t know what to do,” she explains.

“They should know a world where we all love each other.”

Today, Sutherland owns a therapy dog–Crusher, a 10-pound Shi Tzu-Bichon Frise mix–that works with abused children during stressful interviews and medical examinations by law enforcement and physicians. “We all need each other sometimes,” Sutherland states.

That’s why, no matter how high she rises in the automotive industry, Sutherland loves to visit repair shops that have good reputations–big or small. “I just ask, ‘Can I come in and learn from you?’” she says. “Luckily, most people are generous about opening their doors.”

As Drive Automotive continues to expand its footprint, Sutherland is excited about the future. “I love everything about this industry,” she says. “The customer base, type of cars and equipment are going to change, but there’s always going to be clients who need us.”

01. 2 3 / R + W / 2 9

TOOLBOX

MAKE M O N E Y. WO R K SMARTER.

No Benefits, No Problem

7 perks shop owners can provide if offering health care isn’t feasible Health care costs in the U.S. are expensive and continuously increasing. For some shop owners, the cost to provide health care plans for employees is beyond the budget. Though your employees may prefer health insurance, there are alternative perks shop owners can provide in place of health care benefits. These perks would 3 0 / R + W / 01. 2 3

be valuable to your employees and show appreciation for the work they’re doing to help build your business.

If you’re not in a position to provide full benefits, trying offer a combination of these perks to beef up your benefits package. to beef up your benefits package. Here are nine perks shop owners

1. Offer Costco Memberships A membership to Costco is a perk employees could use at any time, and they would understand the value of this perk.

“We are all about trying to help our employees and their families with day-to-day expenses.

If this inexpensive add-on membership that I already have helps them, why not?” says Angie Jenkins, co-owner of Hookset Automotive & Tires with her husband, J.C. Jenkins.

2. Offer Chiropractic Care and Massage Packages Each Month Supplementing chiropractic care with regular massages can have your technicians feeling and performing better. Shop owners can offer chiropractic care and massage packages every month, quarter or a certain number of times per year.

“We’ve all experienced a lot over the last few years. The stress is huge, and it is easy to internalize it. Having an outlet where employees feel safe to seek help is important,” says Lisa Eckler, co-owner of Foreign Car Specialists with her husband, Kevin.

“We’re a small business and value our employees a lot—we’re a family. We support our staff and want to make sure they feel appreciated. We use an HR company offering employee assistance plans as a benefit.

It’s affordable for us to provide and offers a confidential benefit for our employees. If they have personal problems or family issues, this program is there to help them. Things that add emotional stress could be brought into work.

Consider offering a certain number of chaplain services and access to mental health programs each month. You can send employees to a local chaplain, offer virtual meetings or use mental health apps that offer appointments.

Your employees are human beings navigating through the complexities of life, both personal and professional. These problems can range from alcohol to financial struggles to family challenges. Offering employee assistance programs is a benefit that helps employees to become better people and better employees.

6. Offer a Reasonable Amount of Flex Time

“Technicians can’t work from home like other professions. As shop owners, we have to find ways to make things a bit easier for them. Flex time is becoming an industry standard in almost every industry; why should technicians be left out?” says Nick Morabito, co-owner of Gearheads.

“If you want to keep good technicians, you must make adjustments. Many employees have more family commitments and a working spouse these days, and it takes more work to manage schedules. Flex time is a benefit that can make an immediate positive impact on their lives. The repair industry always seems to be last on the list with changing times. Life doesn’t always happen as planned, and we need to be able to adjust.”

3. Invest in Chaplain Services and Mental Health Programs

4. Offer Employee Assistance Plans

“Our vacation stipend gives our team members $1,000 per year to use toward an actual fun vacation so that they can relax and recharge and spend time with family or friends.”

One benefit employees appreciate is having a flexible schedule. Having some leeway in their schedule to take time off for themselves or to attend family events. It adds convenience to their life and is an excellent perk.

“It just makes sense to offer chiropractic care and massage plans because business and work are hard on a mechanic’s body,” says Justin Wentworth, owner of Wentworth Automotive ,”We worked out a deal in which she charges a subscription monthly and handles all the scheduling. Her handling the scheduling helps busy technicians take advantage of this benefit.”

“When we consider benefits, we must understand that at its core, it is to help our teammates flourish,” says Joe Valind, owner of Auto Safety Center. “Just like a sore muscle can cause pain and low performance, emotional wellness can do the same. Offering the chaplain visits provides a confidential outlet for teammates to express and receive help working through life’s tough spots.

It’s another way we steward our most valuable resource, our people.”

“Too often, technicians will spend their vacation time working around the house or doing repairs on family and friends’ vehicles. When they return to work, they are just as tired and burned out as when they left,” says Denise Stanley, co-owner of Quality Automotive with her husband, John.

7. Create a Tool Allowance Program

You can provide employees with confidential help and make them feel valued.”

5. Create a Vacation Stipend You probably offer vacation time to employees after they’ve worked for a certain amount of time. One benefit you can offer atop that is a yearly vacation stipend. You can give your team members a certain number of dollars or certificates to be used on vacation. Your employees will appreciate this as it gives them time to relax and enjoy time away from work. The added benefit is that they’ll come back refreshed.

Tools are expensive, and some technicians prefer to use their own tools. Providing a tool allowance is a perk that helps techs get their tools with an assist from the shop. The amount of tool allowance you provide is up to you, and this type of program can be linked to performance or time with your company. Look through your numbers and the number of employees and create an allowance that works for everyone.

“Excellent technicians are hard to find; a tool allowance adds value to good technicians and is appreciated,” says Jim Neff, owner of All Season Auto.

“We offer a performance-based benefits plan that takes into account their hours of 01. 2 3 / R + W / 31

GETTY

T O O L B OX / E D U C AT I O N +T R A I N I N G

Working on EVs is Safer Than You Think It comes down to the right procedures and equipment

BY NOLAN O’HARA

3 2 / R + W / 01. 2 3

As a master tech with extensive experience

in the auto industry, Jake Sorenson knows the importance of reading the repair procedures and service information. Sorensen, the shop manager of McNeil’s Auto Care in Sandy, Utah, says it’s even more true when dealing with hybrid and electric vehicles.

Sorensen says this is the case for two reasons: first for safety, and because some of the old-school repair tricks just aren’t acceptable when dealing with electric vehicles.

Safety is an added concern for techs workingonhybridandelectricvehiclesbecausemost techs are not accustomed to working with high voltage,andimproperlyhandlingcomponents of the electrical system could cause series injuries. When understanding the risks involved in working with high voltage without extensive experience, it can be easy to jump to the worstcase scenario.

While acknowledging there are those very real safety concerns when working on hybrid andelectricvehicles,Sorensensaysthedoomsday talk can at times be overblown.

“Alotofpeoplewanttomakeitsoundlikeit’s really easy to make mistakes that it’s going to kill you,”hesays.“I’mbynomeanssayingthat’snot possible,butsomebodywithelectricalknowledge, automotive knowledge, common sense, being careful is going to be OK.” Sorensennotesthatmanyhybridandelectric vehicles will have redundancies built in where even if someone was not following the proper repair procedures, they would be safe.

“That’s not to say that you should do that … Not to say, ‘Well, there’s redundancy, so just have at it, you’re not going to hurt yourself,’” Sorensen says. “You do still need to be careful, know what you’re doing.”

Sorensen says working on electric vehicles isactuallyquitesafewiththepropertrainingand the right equipment and preparation.

Training First

Sorensen describes himself as a big proponent of training, but even more so when it comes to repairing hybrid and electric vehicles, for the same reasons—safety first and foremost—it’s importanttoreadtherepairproceduresandservice information.

Training is the first step you can take to ensuresafetywhenworkingonanything—hybrid and electric vehicles included.

Sorensen says he initially had a difficult time finding training, but after some searching, hefoundseveral,includingWeberStateUniversity’s hybrid-electric vehicle bootcamp, which hesayswas“phenomenal,”andtheAutomotive TrainingGroup’sfour-hourbootcamp,whichhe

Other Tips

said provides a good baseline for working on these types of vehicles.

Sorensen did however warn that not every training was a great experience.

The Right Equipment

Another key to ensuring safety when working onelectricvehiclesisusingtherightequipment.

However,Sorensensaysyoudon’tneedasmuch stuff as you might think.

“I think a lot of places want to scare people awayfromworkingon(hybridandelectric)cars bytellingthem…there’sallthisstuffyouneed,” he says. “When it comes to things like tires and fluids and suspension components and all that, it’s all the same stuff.”

In terms of working with the electrical system,Sorensensaysthemostimportantthingyou need would be a pair of high-voltage gloves and glove protectors.

Thehigh-voltageglovesprovideprotection from electrical currents when working with the battery or other components of the vehicle’s electrical system.

The glove protectors are leather gloves that go outsidethehigh-voltagegloves,andthey’rewornto prevent rips and tears in the high-voltage gloves.

Glove protectors are important because batteriesofelectricvehiclescontainsharpsheet metal, which can rip right through the rubber high-voltage gloves. The tough leather glove protectors eliminate that concern.

Sorensen also notes the importance of getting high-voltage gloves tested regularly. You can’t just buy one pair and use them forever.

Theyneedtobetestedfrequently,andeventually either need to be recertified or thrown away in favor of a new pair.

When techs begin to jump into the world of hybrid and electric vehicles, Sorensen says they typicallybreakintotwocamps:thoseinterested in doing it all, but also those who say they’ll just work on anything unrelated to the electrical system.

“Stageoneispeoplethatwanttojustdorepairs not relating to the electric systems on the vehicle andthinkthat’sgoingtobeOK,”Sorensensays.“I would just suggest that they still get at least some basictraining,understandthatthemaintenanceis a little different … even if it’s a system that they think is straightforward.”

While many of the non-electric systems functionprettymuchthesame,Sorensennotes that the service procedures may be slightly differentthanworkingonaconventional,combustion-engine vehicle.

For example, when working on hydraulic brakes,there’sadifferentapproachtoinspecting them on an electric vehicle.

And at McNeil’s Auto Care, they offer a service where they will clean and lubricate the slide pins — something that wouldn’t be done onacombustion-enginevehiclebecausebythe time it’d be needed, the brake pads would need to be replaced.

These differences, while slight, are why Sorensen says it’s crucial for techs to get some basic hybrid-electric training, even if they’re uninterested in working on the electrical system.

Another reason for the importance of training is that parts for electric vehicles are quite costly, and handling them improperly in a way that would damage them would leave you on the hook for covering the costs.

That’s even more true when working on the electrical system, and the training is even more important when considering the safety component.

As a final piece of safety advice, Sorensen says it’s key to ensure shop awareness when working on electric vehicles. It’s crucial that everyone in the shop knows what’s going on.

If there’s a battery on the bench, everyone needs to know so no one will accidentally run into it. If everyone keeps each other in the loop, it’s easy to avoid accidents or other problems.

Ultimately, Sorensen says if you’re being smart, following the proper repair procedures, using the right equipment and preparing accordingly, working on electric vehicles can be incredibly safe. “[If]youreadtheserviceinformation,have just some light hybrid-electric training, I just don’t think there’s going to be safety issues,” Sorensen says.

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HOW I INVESTED IN DIGITAL MARKETING Andrew Knudsen, vice president of Coventry Motors, chose to recruit outside assistance to better target new customers

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Google Ads vs. Programmatic Ads What they are and when to use them Dan Vance, managing partner for Advanced Local, a marketing agency that specializes in digital marketing strategies, breaks down programmatic advertising and Google Ads.

Programmatic Ads: These are ads that pop up on your phone based on key factors that can be programmed in to create a target audience. Other terms that are sometimes used to describe these are mobile marketing or geofencing. These are the ads that pop up when you open your weather app, for example.

Better for: Recruiting customers or talent, as you can send the message to the target audience of your choosing.

Backstory: Knudsen, a client of Cecil Bullard, CEO of the Institute for Automotive Business Excellence, didn’t have a clear vision of what exactly he wanted to do with his website or his marketing strategy. He was successful but knew he could be doing more. He was also looking to hire more people and was interested in targeting potential talent through geofencing.

Problem: The internet is constantly changing and even the savviest business owners will have trouble keeping up with new algorithms and the latest strategies. Knudsen knew he needed help, so he told Bullard what he was looking for. Bullard put him in touch with Advanced Local.

Knudsen contacted the company and began working with Dan Vance, managing partner for Advanced Local.

Solution: When the two began working together in December of 2021, Vance looked at Coventry Motors’ website and let Knudsen know where it could be improved and made some suggestions on how. Knudsen gave him full reign and allowed him to take over the website and start fresh.

Google Ads: This type of advertising is based on searches. So, if a customer searches “what should I do if my check engine light is on?” businesses that have bid to display advertising will show up at the top, and they are usually local.

Better for: Since these searches go based on user intent, i.e. getting a tire rotation, they are better for creating quick opportunities for new customers.

Vance starteddoing more marketing for thecompany,includingtakingoverGoogle Ads. Knudsen has been thrilled with the outcome and increased traffic flow.

“Dan sent a list of keywords that have good rankings and he asked if I wanted to add some things,” Knudsen says of the process. “[I changed] it to oil service, I don’t do an oil change. We have certified mechanics, [so we added that], it’s more than a Jiffy Lube.”

Recently,hehadVancecreateaprogrammatic ad to recruit technicians to Coventry Motors.Programmaticadsbasicallyprogram factors into an algorithm and sort out people to match a certain category, Vance explains.

So, it can be used to target someone in a certain zip code, an age group, income level and even people that go to your competition. When a target audience is created the AI will find matches and deliver creative ads to the user on their cell phones, in apps, and in browser ad displays, Vance says. Knudsen took advantage of this and created a help wantedmessageandtargetedthetypeofcandidate that he wanted.

Aftermath: Every month, Knudsen says he gets 10 new customers off Google or the website and that quite a few people ended up coming

in for the technician position and he ended up hiring two people. He adds that he even had customers come in after seeing the ad for technicians because they liked how it was worded.

Working with a company has increased traffic and taken a lot of stress off Knudsen and he says it pays for itself quite quickly.

Knudsenestimatesthateverymonth,Vance pays for himself within the first week.

Takeaway: Both Vance and Knudsen agree that if shops aren’t investing in digital marketing, they need to start.

“The days of the pennysaver are gone,” Knudsen says.

Vance echoes this and adds that people love the internet. So, it only makes sense to market where people are actually looking.

Going at it on your own is possible, but it can be tricky.

“My job is hard enough. I don’t want to add to my plate. To be able to have a company that will deal with it, it eliminates the stress,” Knudsen says. “You can’t do it yourself. The algorithm is constantly changing. It’s changed five or six times since I’ve started working with them. The increase in sales you’ll see will pay for them hand over foot.”

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Columns

THE FIXER Aaron Stokes

WHAT IS YOUR REVENUE PLAN? What have we forecasted for the year that will take our shops to the next level?

gressive shop down the street or a dealership.

Start your plans by deciding on a revenue goal. You need to pick that number and base it on the car count you believe you’ll be generating, plus your average ticket. The simple way to view this is to take your car count from last January to December—and what you’ve seen that increase to be—and apply that same increase if you don’t think anything has changed inside of your business. Then you’ll want to take the internals of how your business is working and apply them to the average ticket. So, if you’re doing a better job of making sure your technicians are quoting everything on the cars, a better job of selling the quotes whenever they hit the front counter and a better job of taking care of customers and calling them back. Your average ticket will continue to increase. The basics are what makes money.

Once you understand what it’s going to take to make money the right way, in a simple way, then it boils down to: Are you doing the right things at the right time? And a lot of people do the right things at the wrong time. For example, let’s say you want to grow next year, so you increase your marketing. Well, are 3 6 / R + W / 01. 2 3

your technicians maxed out? Yeah, they are. Well, that’s not going to work, is it? If you want to grow next year, add another technician, and then get back to your marketing plan. So, doing the right thing at the right time is what will get the business going. But if you do the right thing at the wrong time, it’s going to fail, and then you’re going to blame coaches, your friends and the market saying, ‘Well, it didn’t work. I did everything they said and still didn’t work.’ Well, how did you do it? How did you apply it? If you didn’t apply it correctly, it’s not going to work.

I believe a lot of owners haven’t taken the time to slow down and apply strategy to their plans. Now, I’m not a big believer in budgets, I prefer forecasting. I don’t like using yesterday’s wisdom for today’s decisions. I like instead to use today’s wisdom on today’s decisions and then use what I’ve learned from the past to plan the future. That is one of the biggest things that has made me successful. So, once you’ve predicted what you are going to hit, ask yourself if you’re happy with it. If it’s not where you want to be, then you need to rethink it. A lot of people get hung up on what they did last year that they only grow 5-10% a year when they could have massive increases through better planning remembering that one small

adjustment could unlock hundreds of thousands of dollars in revenue. Remember, either your shop is in your plans or someone else’s plan! So, what’s your plan/ goal/ forecast? Better get after it before someone else does!

Aaron Stokes grew his business, AutoFix, into a six-shop operation that is widely regarded as one of the top repair businesses in the country. He is also the founder of Shop Fix Academy. aaron@shopfixacademy.com ratchetandwrench.com/stokes

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