Ratchet+Wrench - February 2023

02.23

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

MANGO AUTOMOTIVE’S GRAND PLAN PAGE 9

LET YOUR CUSTOMERS RANT PAGE 30

STOKES:

WHY YOUR TECHS AREN’T EFFICIENT PAGE 40

Her Father’s Daughter As a little girl, Tonnika Haynes hung out in her father’s shop. Now she owns it.

OUT IN FRONT TONNIKA HAYNES GUIDES BROWN'S AUTOMOTIVE INTO THE FUTURE PAGE 20

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In this business, downtime isn’t an option. Nobody knows that better than NAPA. That’s why we’ve built America’s largest network of parts and care, here to give you the support you need to keep your business firing on all cylinders. © 2022 National Automotive Parts Association LLC

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FEBRUARY

02.23

VO LU M E 11 NUMBER 2

07 EDITOR’S LETTER The cycle of mentorship

09 BREAKDOWN Jesse Jackson wants to take Mango Automotive national

17 NUMBERS Social media and shops

19 ADAPT Electrifying the educational journey

20 SHOP VIEW Brown’s Automotive, Chapel Hill, N.C.

23 STRAIGHT TALK What keeps you up at night?

JOE MARCONI

24 FEATURE As Right to Repair heats up in 2023, advocates talk next steps

30 PROFILE Nicole Jones learned that business sense is transferrable

34 CUSTOMER SERVICE How to manage your customers’ expectations

36 CASE STUDY

Come Together Bob Redding, who represents the ASA in Washington, D.C., wants automakers to value all repair shops.

The best mentors and coaches began as mentees

38 FINANCE+OPERATION Growing your shop takes being intentional

40 THE FIXER

F E AT U R E

24

FEATURE

In November 2022, Bill Hanvey of the ACA announced at AAPEX another judicial delay on Right to Repair. What can the automotive aftermarket expect in 2023?

BY CHRIS JONES

30

Improving technician efficiency A ARON STOKES

PROFILE

Nicole Jones of Anderson Automotive in California rolled up her sleeeves and helped her technician husband turn their shop into a profi table business.

BY ALISON JOHNSON

ON THE COVER: TONNIKA HAYNES, OWNER OF BROWN’S AUTOMOTIVE PHOTOGRAPHED BY NITISH SINHA

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EDITOR'S LETTER

Who’s Corner Are You In? An unlikely, but familiar figure emerged

from within the shadows of the dark gym.

“Apollo?” called out a confused Rocky Balboa. Indeed, the fighter from whom he gained his now-lost world championship stood before him in a suit and trench coat.

“Right,” Apollo Creed snapped.

Apollo explained the nature of his visit to Rocky. “Why you?” Rocky asked. “Because I’m the best and you need somebody to teach you differently,” said Apollo with conviction, insinuating that they could win back Rocky’s title—together.

If you continue watching Rocky III, through the training and mentorship of Apollo, Rocky not only reclaims his title but that aggressive, street-smart style he learned from his former adversary—that eye of the tiger, as Apollo coined it—would be the defining e dge R ocky w ould t ake into the remainder of the franchise’s films and that phrase continues to be the definition of focus and motivation decade later.

What I love about this dialogue is that it shows the cycle of mentorship in living color. From Apollo identifying Rocky’s weaknesses, turning them into strengths and making him into a formidable champion to Rocky doing the same for Apollo’s son, Adonis, many films later. It can be like that in the auto care industry, too. The older experienced shop owner takes a young shop owner under his wing and elevates him to success and in turn that young shop owner becomes a coach once he reaches maturity and raises up the next generation of shop leaders who have come after him.

In “From Mentee to Mentor” (p 36), you’ll read about one such story. Servando Orozco, owner Orozco’s Auto Service, tells how he fumbled around as a young shop owner, got coached and now returns the favor by mentoring other shop owners.

Another story that surrounds teaching is “Let them Be Customers” (p. 34).

T his story features a pair of top service advisors

sharing strategies for helping customers deal with labor and parts shortages and other discomforts. They e ncourage o ther advisors to allow room for customer frustration while using it as a teaching moment to educate customers about how shops operate and are responding to the shortages.

Finally, along the lines of the eye of the tiger, you’ll meet Jesse Jackson of Mango Automotive in Albuquerque, New Mexico (p 9). She’s on a mission this year to acquire 30 shops as part of Mango’s mission to become a nationally-recognized automotive brand. She talks about her vision and how other shop owners can approach acquisitions as a business model for growth.

There’s a n o ld s aying t hat w hen t he student is ready, the teacher appears. My hope is that you find a l ot o f a ctionable inspiration within the pages of this issue and if you need a shot in the arm, find your Apollo Creed or become someone else’s.

SCHEDULE A DISCOVERY CALL

CHRIS JONES, EDITOR CHRISTOPHERJ@ENDEAVORB2B.COM

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JUMP START

N E WS I D E AS PEO PLE TRENDS

Opening Doors Jesse Jackson aims to help auto repair shop owners without succession plans to seamlessly join the Mango brand.

ACQUIRED TASTE Mango Automotive’s Jesse Jackson on Her Mission to Build a Net work and Reshape the Industr y

BY CHRIS JONES

PAIGE NEWTON

Jesse Jackson wants Mango Automotive to become the go-to

national brand for auto repair.

Her plan is to develop a network of shops across the United States, starting in the Southwest, that are traditional mechanical repair shops geared toward electrification. Since opening her first location in Albuquerque, New Mexico, in December 2021, she and business partner Brian Walden added two new shops in 2022 before taking the final two quarters of 2022 to concentrate their forces on 2023.

“In six months, we did three acquisitions… Next year, will we build out our master franchising plan; we’ll do 30 shop acquisitions in the Southwest,” she says, defining the geography as Texas, Colorado, Utah, Arizona, Southern California, and of course, New Mexico.

“And then we’re going to be rolling out franchises across the rest of the U.S.”

One of the criteria she outlines for which shops she identifies for acquisition surrounds succession. According to the 2022 Ratchet+Wrench Industry Survey, 27% of repair shop owners indicated that they had no plan for succession while 56% said they had no retirement plans at all. Jackson wants to be able to help owners who have no succession plan exit their businesses confidently knowing their employees and their families are taken care of.

“We really want to help owners who don’t have a succession plan, who are ready to retire but are not sure how to retire,” she says.

Acquisition the Mango Way

One of the saddest things she sees in her own backyard are business closures that spring up when a ready-to-retire owner does not know how to sell the business and simply closes the doors for good.

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value is, they don’t have a succession plan and they close the doors and walk away. We want to help those owners,” Jackson says. “I just want them to do what’s right for them and their family as they move on to their next stage of life.”

She says acquisitions can be an emotional process, one which she and Walden handles with care.

“It’s quite an emotional process for a business owner to leave their baby, essentially something that they’ve built over the last 20, 30, sometimes 40 years... and move on to something else. So, we’re accustomed to working with owners who are unfamiliar with how to retire and unfamiliar with selling their businesses. It’s something most business owners only do once in their life and helping in that process by continuing to give them an income essentially after they retire,” Jackson says.

Maybe the most sensitive aspect of acquiring an auto repair shop is how the employees of the newly-absorbed shop will receive new ownership. Jackson says that Walden is magic when it comes to these

situations, and it goes a long way toward helping newly acquired team members get comfortable.

“When we’re in the due diligence period, between when we have a signed LOI, or letter of intent, and the time that the business actually transfers hands, we work with the owner to develop a plan that works for their employees and works for the owner.

So usually a few weeks before closing, the owner will announce to the employees that he or she is retiring and often this comes not as a surprise because the owners are at retirement age,” says Jackson.

She and Walden then visits the shop to answer all employee questions and share what employment will be under the Mango Automotive banner, including new compensation plans, which Jackson says are typically an improvement from what they had.

“We’ve been lucky that generally, we’re able to give our new employees a raise, and we’re able to offer them health, vision, dental and life insurance, which are some things that the employees don’t always have the option to have,” Jackson says.

The partners instill excitement about Mango Automotive’s mission, sharing how each employee’s role will shape the future of auto care.

“As we see automotive repair shops transition from traditional repair into electric vehicles, some shops are going to be left behind, but not the shops that have become Mango shops. Those shops are going to continue to live on and transform and grow how they need to so they can be part of that current climate of automotive repair,” Jackson says.

How Shop Owners Can Model Mango

For shop owners looking to try their hand at acquisition, Jackson says setting some baseline standards goes a long way into ensuring the sustainability of the business model.

“They need to consider location, and then the thing they need to understand is what’s their minimum acquisition criteria. So, for me, I said I’m looking for a shop that’s doing a million in revenue and has seven or more bays,” Jackson says.

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She says the right amount of revenue helps to ensure that you’re buying a profitable shop from the get-go, which should be top of mind. She says she chooses shops that are already profitable.

“I know any shop is limited in the amount of revenue that they can produce by the number of bays that they can that they have. So even if I have a shop that’s slower in revenue, I know that I can increase the revenue to a certain level based on the number of bays in that shop,” Jackson says.

She believes shop owners who want to enter acquisition can do it if they plan well. Shop owners just need systems and processes in place for governing multiple locations, especially if they can’t be in each shop daily or even weekly.

“My general thought is if you have one shop, you can easily manage two shops, you can probably pretty sustainably manage three shops if they’re all in the same general metro area. But once you grow beyond that number of shops, you really have to have solid operating procedures in place because you as the owner

of four, five, six, seven shops are not going to be able to scale yourself,” Jackson says.

“So, you should really think about what kind of lifestyle you want. If you love touching base with customers and knowing all of your employees by name, you want to think about you know what number of shops feel sustainable at that level because your role as a shop owner changes as you acquire more and more shops.”

With its exotic and delicious-sounding name, Mango is a name to watch. Jackson, who comes from the tech world where she built software for the electric vehicle repair and maintenance space, says this is just the beginning of her dream of going full circle—from development to dynasty.

“I thought the most fun way to do that would be to acquire automotive repair shops, convert them into having EV capabilities, and then on the backbone of that network of automotive repair shops to build that EV software,” Jackson says.

And if all goes according to plan, Mango Automotive will become a household name.

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

Cold Spell Means More AAA Battery Installs

Kia Dealerships Get an ‘F’ from Customers

The recent arctic temperatures that have affected much of the U.S. has AAA technicians installing more batteries for motorists.

“The cold can get into the batteries, that’s really low on cell capacity; it will affect that battery,” said Evron Brown with AAA. “We’ve been hammered. We’ve been hammered. That’s all it’s been mostly, was batteries.”

Brown told NSB-TV 2 Atlanta that frigid temperatures can hurt vehicles that are not used to brutally cold temperatures. His customers recently learned this the hard way.

“The cold weather gets in and hurts the cells inside the battery. So when the battery is not being recharged enough, the cells inside with the cold weather, they won’t reactivate,” Brown said.

He added that battery change requests have been especially high since the pandemic.

A new J.D Power consumer survey ranks Kia dead last for customer satisfaction across all mass-market brands.

The survey, which polled 37,000 dealership customers, scored Kia 754 on a 1,000-point scale. An industry average score, which the Korean automaker missed by 18 points, is listed as 782.

According to Jalopnik, Kia’s chief operating officer for the U.S., Steve Center, called the findings “absolutely the most unacceptable business outcome. We don’t want to be Sears.”

Internal Combustion Engine Vehicle Ban Not In Updated Colo. EV Plan Colorado will not follow California’s protocol in banning the sale of new internal combustion engine (ICE)-powered vehicles.

According to a SEMA press release, despite being a CARB state, the Colorado Energy Office (CEO), Colorado Department of Public Health and Environment (CDPHE) and the Colorado Department of Transportation will not set a mandate against gas-powered vehicle sales in its new Electric Vehicle plan.

GM Dealership Owners Opt to Sell Rather Than Invest in EVs Buick dealership operators who would prefer to not invest the money, time and effort it takes to sell and service electric vehicles are instead opting to sell their locations.

As reported by the Detroit Free Press, General Motors is getting outside offers to purchase the dealerships from owners not on board with the brand’s transitions to all-electric by 2030.

General Motors declined to say how many owners of its nearly 2,000 Buick dealerships nationwide intended to sell, but, according to the report, “Buick is asking dealers to commit a minimum investment of $300,000 to $400,000 to prepare their stores to sell and service EVs.”

Auto Executives Losing Confidence in 2030 EV Adoption A recent survey that polled 900 auto industry executives found that confidence in EV adoption was lower than one year ago.

As reported by Jalopnik, confidence continues to wane significantly as executives think that just 10 to 40% of new vehicles sold by 2030 will be EVs. That’s down from 2021 where they believed 20 to 70% would be sold during the same timeframe.

They all agreed, however, that Tesla would be the market leader by 2030, and some even stated that Apple could be a leader as well.

Auto executives polled said supply chain and economic issues were the biggest determining factor to their lowered confidence as well as inflation and high-interest rates.

EV Restorations Booming The Associated Press covered some of the driveway mechanics and enthusiasts who are converting classic cars into electric restomods.

The recent story includes some business owners like Sean Moudry, co-owner of InspireEV near Denver. He recently restored a 1965 Ford Mustang with an electric powertrain. The project cost upwards of $100,000.

In addition to cost, the story notes some of the hazards related to this new field of independent customization, including the lack of institutional knowledge and the dangers of working with high-voltage components. But it’s clear that the custom EV market is a growing one.

“The early adopters of this would take a crashed Tesla and pull the motor and harnesses and batteries and all that out of the vehicle and find a way to shoehorn it into whatever vehicle they wanted to

build,” one source told the AP. “But today there are many manufacturers now starting to make components.”

2023 Prius Comes with Catalytic Converter Shield Option The 2023 Toyota Prius hopes to deter theft by including a catalytic converter shield add-on.

According to Jalopnik, catalytic converter thefts have been a problem for years as thieves disproportionality target the Japanese hybrid vehicle due to its high black-market value (as much as $1,000).

The new shield, a $140 accessory that owners will have to pay to have installed, is designed to make theft hard and peace of mind easy.

Despite the shield, there is no guarantee that it’s theft-proof, only more difficult to steal thus making it a deterrent. Made

by MillerCAT, the Cat Shield is made from 5052-grade aluminum, which is used on boats, and promises “excellent strength and corrosion resistance.”

Subaru Recalls 270K Ascent Models for Fire Risk Subaru has announced a recall for 271,000 Ascent vehicles, according to Reuters.

The recall impacts some Ascent vehicles from the model years of 2019 to 2022. Reportedly, Subaru said a “wiring connection may have a production-related defect that can cause a fire while the heater is in operation because excessive heat could result in melting the ground terminal and surrounding components,” according to Reuters.

Owners are being urged to park their Ascent vehicle away from buildings and structures, and Subaru said drivers should avoid letting the engine run when their vehicle is unattended. The National Highway Traffic Safety Administration said drivers should park their vehicles outside.

NHTSA also said that drivers should stop their vehicle and turn the ignition off if they smell smoke or see it emerging from the dash or driver’s footwell.

Two fires have been reported, but the automaker is not aware of any injury or crash reports. In order to fix the issue, Subaru dealers will need to replace heater ground bolts. It may also be necessary to replace the ground wire and connector holder.

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Chrysler, Dodge Owners Get ‘Do Not Drive’ Order After 5th Air Bag Death Chrysler-parent Stellantis is under fire from the National Highway Traffic Safety Administration following a fifth Takata air bag inflator crash death.

U.S. auto safety regulators have issued an urgent call for owners to get their devices repaired, echoing Stellantis’ November call to its owners of 276,000 older U.S. vehicles.

According to Reuters, more than 67 million Takata air bag inflators have been recalled in the United States in the last 10 years with more than 100 million worldwide making it the largest auto safety recall in history.

The latest death was in a 2010 Chrysler 300, one of three Stellantis deaths in seven months. Chrysler’s “Do Not Drive” affects Chrysler 300, Dodge Magnum, Challenger and Charger from the model years 2005 through 2010.

problems than other vehicles in the minds of consumers.

The report placed the Kia EV6 at the top of the list with Tesla Model 3 as the second most reliable EV and the Nissan Leaf third as ranked by consumers. The Kia EV6 topped the list primarily for its newness more than its reliability, which has yet to be determined.

Buttigieg Urged to Speed Up ‘Connected Car Technology’ Two top-ranking politicians—Democratic Representative Peter DeFazio and incoming Republican chair Sam Graves, the top Republican on the House of Representatives Transportation and Infrastructure Committee—pushed the Biden Administration to help automakers get “connected technology” to the public to help curb automobile crashes, sited a report from Reuters.

According to Reuters, both politicians asked Pete Buttigieg to move swiftly to slow U.S. traffic deaths.

Tesla, Nissan Most Reliable EVs, Says Report

Kia Recalls Nearly 900 EVs for Coolant Leak

A Consumer Reports ranking for most reliable EVs placed Tesla and Nisan as head of the class. According to the survey, as reported by Green Car Reports, EVs are still widely regarded as having more

A recall has been issued for a coolant leak in some Kia Niro EV models, according to CarScoops.

The recall includes 872 vehicles from the 2020 model year. Reportedly,

the Electric Power Control Unit in these models “may have been produced by a supplier with improper sealing, meaning coolant could internally leak in the EPCU and contact its circuit board,” Kia said, according to CarScoops.

The existence of this issue could lead to the EV stalling. There have been no crashes or injuries reported to Kia. There have also been no fires or fatalities reported. Owners included in the recall were informed in January.

RepairSmith acquired by AutoNation in $190M Deal RepairSmith, a mobile auto repair company, has been acquired by AutoNation, Inc. According to the financial website, Seeking Alpha, the deal is expected to close a the end of Q1 2023 and is worth a reported $190 million.

“Earlier this year, we added captive financing capabilities and initiated the development of mobility solutions to expand our customer offerings. RepairSmith is the next step in our plan,” CEO Mike Manley said. “It expands AutoNation’s ability to penetrate the extensive After-Sales service market and conveniently respond to our customers’ needs by broadening the reach of our existing After-Sales network.

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

PREFERRED SOCIAL MEDIA PLATFORMS

BY CHRIS JONES

GETTY

— In the old days, word of mouth could take your business far. Today, word of mouth is the digital space and the need for websites, social media tools and ways to interact with customers through their mobile devices is paramount. Here’s a look at which social media platforms shops are using to reach customers and prospects.

Facebook

Instagram

Twitter

Pinterest

LinkedIn

Snapchat

82% 19% 15%

33% 3%

2%

None 17%

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

Electrifying the Educational Journey

Social enterprise Electrified Veronika spreads electric vehicle awareness, knowledge and opportunity

BY HANNA BUBSER

The conversations surrounding vehicle electrification are just as important as the actual construction of electric vehicles. It is the axis of knowledge and action that gives change an opportunity to happen. Sometimes, the conversation and the construction can even go handand-hand.

This is a familiar concept for Veronika Wright of Electrified Veronika, which is a social enterprise focused on fueling electric vehicle adoption and spreading awareness about electrification and renewable energy. Education is a key component of the work that Wright does, and the way in which she does this work keeps her busy.

Wright is a content creator, author and electrification consultant. She also has her Ph.D. in technical physics. Wright is originally from Austria where she previously worked for Austrian-based powertrain development and testing company AVL. “I really just developed a passion while I was doing that,” Wright says. “A passion for batteries and the opportunities that we have with them not only in the transportation sector but also on the energy side. I was super excited, and at the same time I saw that there were lots of challenges still, lots of things we don’t understand even down to the electrochemical level of batteries.”

This is part of the thought process that led her to where she is today, living

in Wisconsin and running Electrified Veronika. Wright works on a lot of different projects with Electrified Veronika. She does some consultation work, including work that she is currently excited about revolving around the life cycle of batteries. Additionally, she is working on converting a 1999 Jeep Wrangler to electric.

In addition to all this hands-on work, she also makes content for her various social media platforms to inform her audience about electrification topics as well as the progress she is making on her projects.

“I use social media as a marketing tool just to get my name out there and (show) what I’m doing,” Wright says. “At the same time, I really enjoy combining that with the fact that I can educate people about things that I’ve learned about [through] my expertise that I’ve built up in this space and I always had this educational piece and mindset. It’s just a great way, especially on YouTube, to pass on our adventure (and) the conversion of the Jeep Wrangler and see how excited people are for it.”

Wright says she has received feedback from audiences who are thankful for her transparency. They appreciate being able to see the process, and Wright is happy to show it through her online videos and social media content.

“The educational piece is really important to me,” Wright says. “It’s just a very big opportunity to do that through

VERONIKA WRIGHT OF ELECTRIFIED VERONIKA

social media. You can really reach a lot of people and I’m growing more and more and it’s very exciting.”

Another way in which Wright gets information out there is through her book.

She wrote “The Drive to Electric,” which explores the opportunities surrounding an electrified future.

“I decided to go out there and just interview all sorts of different experts in different areas that I haven’t covered before,” Wright says. “For example, the charging sector and the energy generation sector … and (I) went out there and interviewed all those incredibly amazing people around the world, so it’s very international.”

Through these various interviews, Wright says she spoke with her subjects about their own personal journeys as well as the potential provided by electrification.

She says they tackled topics such as the recycling of batteries, the supply of lithium for battery production and how electric vehicle charging works overall.

PHOTO PROVIDED

DECEMBER 4 - 6, 2023

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

Brown’s Automotive

BY CHRIS JONES

PHOTOGRAPHY BY NITISH SINHA

Ask Tonnika Haynes, owner of Brown’s Automotive, what attracted her to the auto care business, and she’ll tell you plainly— “I’m a daddy’s girl.”

Her father, William Brown, started the business in 1980 as a collision center and by 2000, he expanded into automotive repair. The elder Brown, now retired, turned over the reins to Tonnika in 2016.

A Shop in Her Image One touch Haynes added was an outdoor waiting area with a greenspace. Haynes says green plants are her thing. She also built an extension to the original shop to handle new customer growth.

“In the original shop we have three bays, three lifts, an alignment rack; all Hunter equipment. We’ve got our Hunter aligner, Hunter mount and balancer and tire mount. Behind each of the three bays, we have an additional bay,” Haynes says.

BROWN’S AUTOMOTIVE Owner: Tonnika Haynes Location: Chapel Hill, N.C. Staff Size: 5 Shop Size: 5,100 square feet Number of Lifts/Bays: 5 lifts, alignment rack/ 4 bays Annual Revenue: $1.25 million

Tools & Training for Success Each tech at Brown’s is given a computer and tools.

“They have access to Identifix, ALLDATA, Mitchell and we use Tekmetric so they’re able to walk themselves through the repair process,” Haynes says.

And while ADAS isn’t on the menu yet, training for it has begun.

“We’re going to start with the Car Gurus guys every other week, and then we found some online classes that we’re going to participate in and some onsite training,” Haynes says.

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

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MIDWEST NORTHEAST 12/22/2022 2/8/23 8:47:53 1:47 AM PM

Columns

STRAIGHT TALK Joe Marconi

SHOP OWNERS, WHAT KEEPS YOU UP AT NIGHT? Confronting the fears that cost you sleep will give you immeasurable peace of mind

MICHAEL HOEWELER

It’s 6:15 p.m. on Friday night. As you lock

the door to your shop, you reflect on the week and are happy it has come to an end.

The events of the past few days consume your mind: Employee issues, expenses going up and every other detail about running your business. You get into your car, turn on the radio, take a breath to relax, put the car in drive and you begin your ride home. All is good. Or is it?

While you may have locked the door to your shop, you haven’t locked out all the emotions and issues stirring around in your brain. A few hours later it’s time for bed, and you’re tired and your body needs sleep, but that becomes an issue too. The hours pass and now it’s the middle of the night and you find yourself staring at the ceiling. Sound familiar? You’re not alone.

Only a shop owner knows how it feels to be a shop owner. The challenges and struggles of running a business are ongoing, even after years of working on the business to get every detail dialed in just the way you want it. This can lead to a condition that plagues many shop owners; the dreaded 2 a.m. unplanned wakeup call.

There are many reasons why shop owners have a tough time sleeping. Worry about their business, the feelings of being responsible for so many people’s lives, the second-guessing if they made all the right decisions and perhaps the most harmful of all are the “What-ifs.” What if Larry, my manager, leaves? What if my lead technician decides to quit? What if we don’t hit our sales goal? All these what-ifs increase brain activity, and while you are desperately in need of sleep, your conscience mind is in high gear wondering and worrying sometimes until the sun comes up. I know it’s aggravating, and while I don’t wish it on you, not being able to sleep at

times means you care.

As business owners, you are committed and responsible for not only the success of your business but for the success of others around you. The worry and fear that things make go sideways at any time can haunt you. So, your brain continues to review and relive all conditions and situations that have occurred and wonder about the things you think may occur. Your body gets stuck in fight or flight mode, a natural human response to perceived or real threats. This condition overcomes you and prevents you from getting a good night’s sleep.

What do we do about this condition?

First, we need to recognize it as part of who we are and then identify the reasons why we can’t shut off our brains. It usually boils down to issues and problems we feel we are not in control of. For example, you feel something isn’t right with your staff.

You feel there’s a morale issue. Then the thought of losing employees enters your mind and that scares the hell out of you.

The best way to approach fear is to confront issues head-on. Make it a top priority to sit down with your employees. Find out if your fears are true, and if so, deal with them. Getting employees engaged and improving morale will calm your fears.

However, you should also consider a recruitment plan to build a pipeline of potential future employees. The point here is to be proactive with any issue that’s bothering you and not sit on your hands hoping and praying that things don’t go downhill.

There will always be challenges in business. Have faith that you can overcome those challenges. Build a company with a strong culture and with great people around you. Also, learn to rely on your employees to take some of the load off of your back. I know you feel that it’s your shop and that the buck stops with you, but trust me, your employees want to help, and they can help.

One last word, make sure you have clearly defined goals. Goals give you purpose, a clear direction and provide a sense of accomplishment for you and your team when they are reached. This will keep you in a positive mindset, which helps with getting a good night’s sleep.

Tonight, when your mind begins to shift to business issues, remind yourself that this is a normal reaction. However, it’s also important to be thankful for all the good in your life. It’s far better to focus on positive thoughts about family, friends and accomplishments. Remember, your business should never consume your life, but enrich it. Now get some sleep!

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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RIGHT TO

LOOKING FOR C

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O REPAIR:

OR COMMON GROUND Right to Repair advocates continue to seek ways to collaborate with automakers

BY CHRIS JONES

P

rior to the Commonwealth of Massachusetts passing Right to Repair in 2012, on the heels

of an 86 to 14 vote by its citizens, automakers entered into a memorandum of understanding with independent repair shops across the country. The crux of this memorandum was that the automakers would grant independent repair shops the same data access as dealerships at a reasonable price compared to the OE dealers and in a standardized format. Muddying the water, however, was the introduction of telematics, which happened midstream. It was the one thing missing from the memorandum and its implications weren’t fully understood by advocates for independent repair shops.

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R I G H T T O R E PA I R

Today, the debate over telematics access has the aftermarket and automakers in a seventh judicial delay in November. The automakers say they cannot follow the rules for providing independent repair shops equal access to this vehicle data, citing security concerns regarding independent repair shops. It’s an issue Bill Hanvey, president and CEO of the Auto Care Association (ACA) and Bob Redding, the Automotive Service Association’s Washington, D.C. representative have spent the past decade trying to resolve.

For starters, the automotive aftermarket is a $400 billion-plus industry that employs upwards of 4.5 million people, says Hanvey. He and Redding hope to work with automakers to find that middle ground where the automotive aftermarket and OEMs serve customers together with dealerships and independent repair shops being granted similar data access. Hanvey says on an industry level, that begins with everyone getting involved.

“It’s really important for our industry to raise their voice. We’re not necessarily going to be able to outspend the automakers, but we certainly can mobilize more employees and we actually have more employees on the auto care side than they do on the automaker side and the dealer-

ship side combined,” Hanvey says.

“We knew at the time that if we included that telematics data into the memorandum of understanding we would get nowhere.

So, we signed the memorandum of understanding, knowing that we would have to come back eventually and acquire the same access for telematics data as we did for the data that was acquired through the OBD-II port.”

If anything, the automotive aftermarket has been adaptable to new technology and has displayed a track record of excellence, improving upon many OE designs, attests Hanvey. He believes these successes show why automakers should find sharing information with the automotive aftermarket advantageous, adding that access is critical to the future of independent repair shops.

“Our industry has always embraced technology. And as the vehicle became more sophisticated, and as more diagnostics were being made available through the OBD-II port, we found it necessary to ensure the future of our industry by guaranteeing that we would have the same type of access at the same type of price through the OBD port for repair and maintenance data that the OE dealerships got,” Hanvey says.

The auto care industry prefers to be seen as a collaborative service partner alongside

automakers and dealerships, however, continual failures in agreeance between the parties—“stonewalling,” according to Hanvey—sent the representatives of the automotive aftermarket back to Massachusetts voters for a second time. The ballot question this time sought to inform consumers that a vote to approve Right to Repair would 1) give them the ability to choose where they could have their vehicle repaired, 2) control who could access their telematics data, 3) make new car owners aware at the time purchase that their data was being sent to the automaker. It also required a standardized open data platform to access telematics from model year 2022, which OEMs felt was a cybersecurity concern without proper boundaries in place.

Massachusetts voters approved by a 75-to25 margin.

“Ultimately, we had to go back to Massachusetts,” says Hanvey. “[And] we did not lose a county in Massachusetts and immediately following the ballot question and the victory in Massachusetts, we reached out to the automakers and asked them to come to the table so that we could figure out an implementation plan. The ballot question called for implementation of the Right to Repair for model years 2022.”

Feeling like they couldn’t comply with the

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AUTOCARE.ORG

Advocate for the Industry Bill Hanvey, CEO and president of the ACA, seeks a win-win for the aftermarket and automakers.

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AUTOINC.ORG

R I G H T T O R E PA I R

Championing the Cause Bob Redding of the ASA represents the automotive aftermarket on Capitol Hill.

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ruling, the automakers filed a lawsuit against the Commonwealth of Massachusetts.

“They said No. 1 that there was federal preemption. In other words, there were federal laws in place that superseded the law that was passed in Massachusetts. No. 2, they also said that the 2022 implementation date was an impossibility for them to adhere to,” says Hanvey.

This sent both sides back to trial in June of 2021 with the attorney general of Massachusetts defending the case this time.

The Auto Care Association does, however, continue to work with the attorney general’s office.

“Since the trial in June of 2021, the judge has delayed his verdict or his ruling five times now,” says Hanvey at the time of this writing.

This implication of this new lawsuit is high stakes in the eyes of the automakers. Consumer data carries value beyond auto repair. Automakers believe there’s a risk that comes with sharing telematic data with the aftermarket, says Redding.

Would independent repair shops use customer data for their own purposes?

Hanvey doesn’t think so and has encouraged automakers to be forthright with consumers about their data.

“The car today generates 25 gigs [gigabytes] of data each hour. And that includes everything from speed, braking, geolocation—which is a big thing—and all the way down to airbag deployment, how much you weigh, and so on. All these types of personal information are extremely valuable to the automakers and insurance companies ... that data is really gold for the automakers.

Let’s reiterate the fact that we are not denying them access to that, all we’re asking for is that the consumers be made aware of it and that the auto care industry be granted access to the repair and maintenance data in a real-time fashion,” Hanvey says.

A Case for Optimism

As Hanvey alluded to at the beginning, the aftermarket is a necessary partner for the OEMs and the dealerships on all fronts. For the automakers to only entrust telematics and repair data to the dealerships would lead to high consumer dissatisfaction when repair times and service scheduling waits start to go from days to weeks or even months. This is especially the case when cars are past their warranty and owners would typically use independent repair shops since they pres-

“I THINK A NATIONAL DECISION, EITHER A NEW FEDERAL LAW OR AN INDUSTRY AGREEMENT THAT COVERS ALL 50 STATES, WOULD BE THE MOST HEALTHY FOR OUR MEMBERS FOR INDEPENDENT SHOPS.” BOB REDDING ASA WASHINGTON, D.C., REPRESENTATIVE

ent a more economical solution.

“What we’ve seen and what we hear is when a car comes out of warranty, we repair 70to-80% of those depending on who you talk to. If you’re a Volvo manufacturer, BMW manufacturer, or a GM manufacturer when that car goes into our shops, they’ll want our folks to be able to repair them properly for a lot of reasons,” says Redding.

For automakers, allowing independent repair shops access to telematics and OE data needed to repair cars makes sense.

The automotive aftermarket is ready and has proven its willingness to adapt to changing times and undergo any necessary training as cars evolve. But OE cooperation is a necessary first step, not defiance, such as the case with Subaru in 2021, when it voluntarily disabled telematics featured in vehicles sold in Massachusetts.

“Somebody in there at some point has to have access to the OE information. So, we think we think we’re going to get there and if we don’t. We are very supportive of a legislative solution if there’s not an industry solution, and we’ve shown that, but it should be at the national level,” says Redding.

One potential way of helping both find a collaborative solution is through a recently formed Vehicle Data Access Caucus, a bipartisan committee formed by Rep. Earl L. “Buddy” Carter (R-GA). The goal of this group is to put together a playbook of sorts for vehicle data privacy.

“This [caucus] will be inclusive to all parties and various views,” says Redding. “So, let’s bring the parties together.

Let’s figure this out because this might

require a law and it might not. We know, at the end of the day, when many of these technologies are in play for the aftermarket for independent repairs, we need the data to repair them.”

He supports the end game being fully legislative.

“I think a national decision, either a new federal law or an industry agreement that covers all 50 states, would be the most healthy for our members for independent shops,” says Redding.

Advocating Until Something Changes

For independent auto repair shops, this junction of Right to Repair is about their customers. Hanvey and Redding encourage owners to take time to educate customers on the power they have over their personal data and the ramifications of Right to Repair if the automakers’ lawsuit is upheld by the court—the likelihood of splitting time between their favorite repair shop and a dealership, if not fully the latter.

“I think the first piece is education. You know, many vehicle owners never meet the Congressman or don’t have a relationship, like getting in touch with that staff in Washington or their district staff and communicating with them and saying, ‘Look, there will be in ‘23 a dialogue between members of Congress over vehicle data access, and I want you Congressman X or Senator Y to be part of that’,” says Redding.

Hanvey adds that consumers need to be made aware of this through the shop owner.

“It’s not a quick fix. It’s something that just has to continually be promoted; it needs to be continually brought forth to the consumer,” Hanvey says.

No matter the outcome, the battle will continue.

“We know either side is going to appeal this case. We find it hard to believe that the court could ignore the voice of 75% of the voters.

So, we feel that we’ve really done our homework and the automakers’ contention is well, we don’t trust these folks. And you know, it’s cyber secure. A dealership undergoes the same types of analysis that an independent repair shop does, they’re no different. And what makes the independent shops any different than a dealership?” Hanvey says.

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P R O F I L E / B R A N D N E W AT T I T U D E

Stepping In Nicole Jones understood business, which gave her a leg up when coming to the shop.

Brand New Attitude

Once an industry outsider, Nicole Jones didn’t let what she couldn’t do stop her from doing what she could do

BY ALISON JOHNSON

P H O T O S B Y E M I LY D I A Z

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Prioritizing the team Nicole and Nick Jones are deliberate about making sure their team feels appreciated.

Nicole says a toxic workplace isn’t an option.

Four years ago, Nicole Jones got into the

automotive industry knowing virtually nothing about cars.

She still doesn’t–and she doesn’t consider that a disadvantage.

Instead, Nicole’s passion is managing the financials and supporting the team at the California auto repair shop she runs with her husband, providing a positive work environment and helping employees grow professionally and personally.

As she has gained confidence in her management role, Nicole also has become a passionate advocate for drawing more women into the industry in a variety of roles.

“I want to help inspire other women who don’t think they’re capable,” she says.

“We’ve been told what we can and can’t do for a long time, but we can literally do anything. We have a lot that we can bring into this industry that can benefit both auto shops and customers.”

Paving the Way for More Women Nicole and her husband, Nick Jones, own Anderson Automotive Inc. in Anderson, California, and in 2023 plan to add a second location in nearby Redding. They hope to recruit and hire more female employees as service advisors, auto technicians and managers at both shops.

Nicole, 30, oversees Anderson Automotive’s budget and key performance indicators, along

with its human resources department. The business has 13 employees and recently hired its first-ever female automotive technician.

“A lot of our customer base are women, sometimes single women,” she notes. “Unfortunately, there is a stereotype of auto shops being sketchy and ripping people off, especially people who don’t know anything about cars. For our female customers who have that worry, my opinion is that it can really help them to see women on our team.”

Nicole also sees value in what she describes as women’s ability to check their egos at the door more easily than men, at least in general.

“To run a successful business, you need to not let your emotions get the best of you,” she says. “I believe men are more conditioned from childhood to have a strong ego and never show weakness, which can be a large issue when dealing with an upset customer or teammate.”

From Outsider to Outstanding Nicole’s non-technician perspective skills have been extremely beneficial to the shop, according to Nick. She has mastered QuickBooks and spreadsheets, developed a parts invoicing system to track purchases and return and organized parts based on what type of car they’d go to.

“I would literally attribute all of our growth to her,” he says. “Unfortunately, like most technicians-turned-shop owners, all I knew was how

to fix vehicles. She brought the business into line and really concentrated on numbers and systems, allowing me to grow as an owner.”

Born in Hanford, California, Nicole has lived in the Northern California city of Redding since she was 5 years old. Her mother had the mindset that to be a good wife, a woman had to stay home and do the cooking and cleaning.

“I had no idea that I could ever be a business owner, let alone an automotive business owner,” she recalls. “I don’t know how to repair cars, so how could I run an auto repair business?”

Nicole and Nick met at age 15, as high school freshmen in a class called “Personal Growth.” After graduation, Nick became an auto technician while Nicole, an animal lover, went into the dog bathing and grooming business. She ran her own grooming company for about three years.

In 2013, when Nick was just 21, the owner of the auto shop where he worked decided he wanted to retire. “He sold us the business basically overnight,” Nicole relates. “We were so young, and we didn’t know what we were doing. We dug ourselves into a big hole.”

By 2018, Nicole had closed her business to help her husband at the shop. The transition wasn’t easy: Nicole felt as if she’d given up her own dreams, and she also felt lost and overwhelmed in an industry that was foreign to her.

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P R O F I L E / B R A N D N E W AT T I T U D E

Everything began to change the following year when the Joneses joined Shop Fix Academy. The Tennessee-based community of shop owners assigned them a female coach, Ashleigh Civitello, who most recently opened her own auto shop in Colorado.

During weekly group calls, Nicole’s perspective and mindset shifted. “Ashleigh showed me that I could take ownership of this business, too,” she explains. “It wasn’t just my husband’s shop; it was mine. I had poured my blood, sweat and tears into this business, and I shouldn’t just be known as–or think of myself as–the owner’s wife.”

While she wasn’t a car expert, Nicole realized she had plenty of ideas for helping her community and employees feel valued.

On the Customer Service side, for instance, she has added a fleet of complimentary loaner cars.

“We care a lot about convenience for our customers, and we know how hard it is to be without transportation during the repair process,” she says. “We try to make it as easy as possible.”

Cultivating a Scalable Culture One of Nicole’s in-shop goals was to avoid a toxic work culture at all costs. She and Nick

have stressed open and honest communication to guard against drama, and Nicole holds goal-setting sessions with individual employees every quarter.

“We can talk about anything in their personal lives if they want to, including financials,” she notes. “We emphasize their ability to grow in our company, whether that’s moving into management positions or getting additional training.”

Drawing ideas from other Shop Fix Academy members, Nicole also has implemented perks such as quarterly employee celebrations. Recently, for example, the entire staff went to a local water park for a day.

“I think it is so important–and really underrated from the business sense–to have fun together, to bring out our inner kids,” she says.

“If we are happy with each other and happy at work, that will make the hard days much better.”

Additionally, all team members spin a giant prize wheel on their work anniversaries and birthdays to win big and small rewards, including free two-night resort stays, extra vacation days, gift cards and movie tickets.

Anderson Automotive’s current Shop Fix coach is another woman, Amanda Clements, who helps run multiple family-owned shops in Georgia. Clements has provided the Joneses with insights on business acquisitions and

opening new shops as they look to expand.

The couple’s next shop will be about 10 miles from their current location, and they don’t intend to stop there. “We want to have as many shops as possible,” Nicole states.

“We have a lot of confidence now.”

Sowing Seeds of Goodwill Connecting with the community is another expansion area. As the owner of five dogs and two cats, Nicole has spearheaded fundraising initiatives for a nonprofit called “Cassie’s Dream,” which rescues dogs from kill shelters, as well as a local animal shelter.

Anderson Automotive also hosts a free oil change and meal event each Veterans Day and this year helped families in need get Christmas trees and holiday gifts.

Moving into the future, Nicole’s message to other women is that they have plenty to offer to the industry, whether or not they can work on cars.

“Not a lot of women apply to any of our jobs, which needs to change,” she says. “The minute I realized that it was not just about fixing cars, I was all in. The amount of people we can build up and grow–and the impact we can have on our community–is what drives me.”

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

‘Let Them Be Customers’

How to manage customer expectations amid the ongoing parts shortage

BY NOAH BROWN

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The ongoing parts shortage, and the related issues it has caused the auto-

motive repair industry, have become all too common news headlines over the last couple of years.

In a National Auto Care updated report, released in February 2022, detailed how big an issue the shortages would be throughout last year and into this one, stating, “2021 was a challenging year for industries across the country … (and) the outlook for 2022 is going to be more of the same. The supply chain is now broken in those final miles, between getting part from the dock to the parts department door.”

Though nothing new, part shortages are still a major point of frustration for both shop and customer, and successfully navigating those shortages can mean the difference in a happy customer and a onestar review.

So how can your shop end up on the positive side of that dilemma?

Ratchet+Wrench spoke to two industry professionals to see how their operations were handling and navigating the shortage.

Get Creative

Victor Broski, a 30-year industry vet and service adviser for Newport Motorsports in Costa Mesa, California, says his shop is currently scheduled for a week and a half to two weeks out due to varying circumstances. To its credit, customers have largely become more educated on part shortages—at a bare minimum, most know that shortages are still happening. Because of that, many customers that come through Broski’s shop are able to grin and bear it.

“The customers seem to be working with it,” Broski says. “If it’s a week away, that’s what I tell them, and they usually say, ‘Well, I guess that’s what we’ve got to work with.’”

Despite that, Broski says there are customers at his shop who still ask for an immediate turnaround on their vehicle. At that point, getting frustrated won’t help anyone, Broski says, laughing it off and explaining clearly to the customer why that isn’t possible is the best approach.

“They want the part now. We have to let customers be customers,” he says. “It’s my job as the service advisor to be a resource to them and to go out of my way to help them. It’s my job to help educate them on the part shortage.”

A few years back, Newport Motor-

sports implemented a new scheduling tactic that intentionally leaves Mondays and Fridays light on scheduled work.

Though it was meant primarily to help manage the workload caused by accidents over the weekend, the reduced work on Mondays and Fridays now helps with shortage-induced backfill and keeps the shop running efficiently.

“If we’ve got four cars that break down over the weekend, we can work on those.

If none come in, we can work on cars that have been there for a while.”

For routine services, Broski asks a customer to pick a time two weeks out on a Tuesday, Wednesday or Thursday.

“If there’s something else, I can always sneak them in on a Monday or Friday,” he says.

Finding ways to structure vehicle intake and planning workdays around consistent trends in your shop can help increase efficiency and overall productivity.

Build a Relationship

Those creative strategies will only get you so far on their own. Having a relationship with customers, especially regulars, will go a long way toward getting them on board with new ideas and strategies to manage part shortages.

“That’s the biggest thing in our business: Trust. Hopefully, they trust that you’re being upfront with them,” Broski says. “If you share with them that you understand their concerns, their frustrations and that you’re also dealing with it, they seem to understand it.”

Greg Skolnik, owner of Motor Works Inc. in Rockville, Maryland, has been in the business for around 35 years and has gone through several parts shortages and other obstacles in his tenure. This pandemic-spurred shortage has been tough in a lot of places, though for his shop, which specializes in Honda, Toyota and Subaru, it hasn’t been insurmountable.

“This is happening in all sectors. The general public seems to be very aware that there are supply issues and that things are going to take longer. They already know this, and when we talk to them, they’re usually sympathetic as well.”

He says his customers are patient and understanding with him and his shop in large part because he’s been patient and understanding with them in the past, which he says has helped his shop develop a feeling akin to the 1980s sitcom “Cheers.”

“You want to go where everybody knows your name. That’s our shop—we want to know who these people are,” Skolnik says. “To manage their expectations, more than anything else, comes down to that relationship. We have many, many, many long-term clients, and that relationship is what we’re focusing on.”

That relationship building has to extend beyond just your customers, too. Making sure your employees and staff feel respected and are able to lead balanced lives. In a similar way to how Broski’s shop intentionally has light loads on Monday and Friday, Skolnik’s shop is only open four days a week.

“We’re doing it to balance our lives and be responsible to our employees,” Skolnik says.

That, he says, is attractive to potential employees and gives his current team an incentive to do the best work they can every day, which boosts the overall company culture.

“It’s crucial,” he says. “You have to find people that can adapt and are friendly and genuinely want to help people and who understand your business culture. The people at my shop get it.”

When his employees do their best work, Skolnik says, that gets noticed by the customers. That translates to trust that the shop is doing the best it can at all times, especially in the midst of a part shortage.

“That relationship is what’s going to make or break it,” he says. “Focus on the client as a person, treat them like you would want to be treated, and you’ll be fine.”

Keep Pushing

Unfortunately, supplies of parts and other materials probably won’t return to “normal” for quite some time—several industry analysts expect that shortages on new vehicles and parts could last well into 2024.

As the industry has already done many times over the last several years, shops will have to continue to adapt and find creative ways to manage workflow.

As long as shops are honest and upfront with customers, most will understand.

“Some of them don’t like it. Some of them want to bring the car in tomorrow,” Broski says. “Those are the tough ones but trying to see their side always helps. Let them be customers, let them be frustrated.”

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

COMING FULL CIRCLE: FROM MENTEE TO MENTOR A shop owner shares his journey of becoming a coach in the industry Servando Orozco is the picture of success for an auto repair shop owner. He's

amassed five locations in California with over 40 employees and earns close to $7 million per year in revenue. This didn’t happen overnight and the owner of Orozco’s Auto Service did not do it on his own. As a technician, he was sure of himself and confident he could fix any vehicle. Little did he know how different it would be opening his own location. Orozco struggled in the beginning as an owner and knew he needed help. After he got his business on track, he decided to pay it forward and coach other shop owners to help better the industry.

Backstory: Orozco’s leadership struggles stemmed from the fact that he started as a technician and that’s what he knew best. After 10 years of working as a tech in a Shell station, he opened his first shop in December of 1999.

frustrated him since he had fewer headaches and more money while working for someone else. Was this all a big mistake? He knew he needed to figure out what his future was going to look like and he knew he needed help getting back on track.

Problem: “I struggled because I was a great tech but not a good business owner,” Orozco says.

This is the same situation befalling many technicians turned owners. Fixing a complex vehicle and running a shop require different skills. Orozco couldn’t pay his bills, which

Solution: Orozco contacted NAPA who suggested he look into Elite Worldwide for training.

He did, and after joining the program, he was connected with a coach and began networking with other shop owners.

“To me, it was an epiphany,” Orozco

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BY TESS OWINGS

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says. “For years, my mentality was to work hard and make money, but I didn’t understand what it meant. When I worked with Elite, I found out the most important [thing] is not the goal, but who you become in the process.”

As part of the process, he learned the habit of writing down his goals and ideas.

“Back then, I wanted my kids and my wife to be proud of me,” Orozco says. “I wanted to be a good role model and the same for my business. During that process, I learned successful businesses are in the community.”

Orozco learned about ethics and values, processes and procedures and what it meant to be a good leader.

Aftermath: When Orozco started the training program, he owned half of a shop and was

doing $300,000 in revenue per year. After six months, he went from $36,000 per month to $100,000 per month. He now owns five locations and does almost $7 million in revenue.

After he realized how important it was to be in the community, he joined ToastMasters and Rotary Club, upped his marketing budget and started doing more fundraising. And after seven years of being coached, he decided to become a coach himself, which he still is to this day.

Takeaway: “If someone is looking for help, help them,” Orozco says. “It’s like payback.”

Orozco understands that some shop owners don’t want to coach fellow shop owners.

They see it as helping the competition. He says the only way to be successful is to help

others and if someone doesn’t want to help, that’s their own arrogance.

“The worst thing I see in the industry is that they believe that they know everything,” Orozco says. “They have been doing things the wrong way for 20 years and they’re not willing to listen because of that mentality.”

The industry has a stigma and shop owners need to come together to change it. Learning from each other can help new owners learn how to treat customers, market properly and connect with the community in new ways.

“We need to raise the industry to another level, it’s better for everyone,” Orozco says.

By joining a training program, Orozco learned what it takes to be a good business owner and decided to pass that knowledge along, which has been an extremely rewarding experience. It has helped not only his business as a whole but also his overall outlook on the industry.

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T O O L B OX / F I N A N C E + O P E R AT I O N

Hoping to Grow? It’s Time to be Intentional Managing a budget for a growing shop starts with belief

BY NOLAN O’HARA

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Michael Mole, the general manager of In-

tegrity Auto Repair in Savannah, Georgia, likens his shop’s philosophy on growth to a religious fervor.

It starts with belief.

“If you don’t have the belief right first, then all the best practices in the world are irrelevant,” Mole says.

Mole has belief in Integrity Auto Repair—he says it can be among the best small businesses in town. That’s why Integrity Auto Repair is intentional about prioritizing growth when making budgetary decisions.

That’s also why Integrity Auto Repair is in the process of “significant expansion,” adding eight bays to one of its two locations.

“If you want to be growing, then it has to be what your focus is,” Mole says.

It starts with that philosophical standpoint—Integrity Auto Repair’s focus on growth makes a direct impact on the company’s budgetary decisions.

That philosophy is the foundation, and once that foundation is set, there are a number of other aspects to consider when managing a budget for a shop that’s growing and scaling.

Here are some tips and advice from Mole:

Most of the time, investments take time to pay off. After all, they’re not running a getrich-quick scheme.

“As we’re looking at the investment property standpoint, and even from a new hire standpoint, they don’t have to pay off immediately,” Mole says.

Mole notes that some of the investments they’re making are meant to make their business more well-positioned and more dominant five to seven years down the line.

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Make Sacrifices

Mole says a lot of owners and managers talk a good game about wanting to grow and hire more people, but that they’re not putting their money where their mouth is.

Mole says he and his business partner Craig Spinks, Integrity Auto Repair’s store manager, pay themselves modest salaries below market value in order to reinvest money back into their business.

“Our vision requires a certain level of focus and sacrifices that we’re willing to make because we think that we can be not just one of the best auto repair shops in Savannah, but we think we can be one of the great small businesses in our town,” Mole says.

Mole’s philosophy is that by reinvesting that money now, it will make Integrity Auto Repair well-positioned for success in the future.

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Have Patience

By placing a focus on growth, Mole is making an investment in Integrity Auto Repair.

Keep Cash on Hand

While it’s important to take calculated risks and make your budgetary decisions from a philosophy centered on growth, you can’t bet the whole farm. Mole notes the importance of keeping a certain amount of cash on hand based on your fixed costs. He says at Integrity Auto Repair, they’ve never gotten below a month’s worth of payroll.

“If a hurricane hits, I can shut down for a month, bargain with all my landlords and power and all that kind of stuff,” Mole says. “But you can’t bargain with your people.”

Mole says he’ll sooner not pay himself before he gets below that number. However, he says the cash on hand number can be different for every shop, and it also depends on each owner and manager’s risk tolerance. It can also go up and down as time goes on.

But once that number is set, it provides a solid base for taking future risks.

What’s Your Demand?

When directly making decisions about growth and expansion, it’s crucial to pay attention to a key metric: demand.

Mole says when making those decisions, like adding bays, they’re looking at how many phone calls they’re getting and how many clicks are coming in on the website.

They’re trying to figure out what their demand is, and whether they’re capturing and maximizing it.

And if they’re booked out two weeks in advance, that’s a problem.

“I hate that,” Mole says. “I get so antsy … because that means that (the customer) is gonna go somewhere else, and they’re going to have a worse experience.”

Mole says when they’re booked out more than two or three days in advance, it’s time to start looking at adding someone.

Not Perfect Timing

While we may hope that everything in our lives will line up perfectly, falling into place at the right time, more often than not, that isn’t the case. The same is true when looking to hire.

However, if you’re building towards growth and managing your budget accordingly, then there are times when you should make a calculated risk and hire the right person at the wrong time.

“The help you need is not going to come usually at the precise time you need it. It’s going to come either too early or too late,” Mole says. “You got to be ready to snap it up when those people are available.”

That’s particularly true in the current job market, where unemployment is low and experienced workers are in high demand and finding jobs extremely quickly. Another step in being proactive in hiring is courting workers, something Mole likened to recruiting in college football. He says as a hiring manager you need to be active, willing to go out to dinners with good techs in your area and gauge if they’re a good fit and would be interested in coming aboard.

“If you aren’t willing to recruit your butt off, then you’re not going to steal good talent away from places where they’re comfortable,” Mole says.

And if you’re not approaching your budgetary decisions with an intentional focus to grow your business, you’re never going to grow.

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Columns

THE FIXER Aaron Stokes

TECHNICIAN EFFICIENCY STARTS AT THE TOP To improve your techs, improve your systems

Great Systems Keep Techs at Home You need to realize that in a normal market, every technician you have gets an offer from another shop every 60 days on average. If we think through that, we come to a couple of conclusions: 1) The longer they’re with you, the fewer offers they get because the fewer cell phone numbers they have of other technicians who are giving their cell phone numbers out. 2) As that technician stays with you longer, for someone to steal that technician from you, someone must offer your technician more money, a lot more money. So, you might be paying him $38 an

hour and a competing shop goes and offers your tech $50 an hour. Now, your technician might take that but let’s say your technician is a high-hour turner and they’re turning 300 hours a month. They’re going to stop and think, “I’m doing 300 hours a month.

I’m making 38 bucks an hour, that’s $12,000 a month, $140-something thousand a year.

The other guy’s offering me $12 more an hour, and if I could still turn 300 hours a month, that’s 15-grand-plus a month. But what if I get there and the new shop can’t sell? What if they have a horrible reputation?

What if the owner doesn’t market during slow times? What if I’m handcuffed with a poor team?” It’s more than just money.

So, you need to make sure you understand that if your shop is operating at a certain efficiency that allows the technician better workflow, even though they’re being paid a lower hourly rate, you’ll keep your technician because it’s about the systems and the people, not just the money.

It All Starts with Talent Higher efficiency means all shop positions must be filled by talented people. In my shop, I have eagles flying with eagles. I don’t have eagles flying with ducks. I don’t have high performers in the back of the house and low performers up front or high performers up front and low performers in the back.

It takes a whole team. And at the end of the day, if you don’t understand that it’s all the pieces around the technician that allows him to turn more hours, you’re missing the boat. There are technicians working with you right now that if they came to work for me would turn 20% more hours just because the system is easier. It’s that big a deal. Now that’s not all of you reading this but most would agree it’s most of the shops out there.

So how can you adjust to create a more highperformance environment? The answers are out there, dig until you find them. Your shop depends on it.

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

FUE VANG

A lot of owners say to me, “Aaron, I’m just trying to get more high-hour turning technicians. I want technicians who can crank out the hours. How do I get better technicians? How do I get my technicians to turn more hours?” It’s always hours, hours, hours; tech, tech, techs. Technicians are only a small part of it. What allows a shop to turn more hours is the efficiency of the system. How long does it take a car to get from the front to the back and from the back to the front, get quoted, sold to the customer, get the part ordered, sent back to the technician to get fixed, and back up front where the customer is told it’s done, and the car paid for and picked up? For a technician to turn so many hours, you have to have an amazing service advisor that can sell, somebody handling parts who knows what they’re doing, other technicians who are not slowing that technician down with tons of questions and a great clientele that can afford your repairs. Topping that off can you as an owner afford to market in slow times to keep that technician turning hours? Then you’ve got to do all the pluses.

You have to have A/C. You have to have heat. You need a nice floor and good lighting. Every technician needs a computer. A great technician is more productive for reasons other than their own ability.

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