Reader Profile
INTERSTATE AUTO CARE A Midwest success story
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Madison Heights is about 14 miles northwest of Detroit. Approximately 50% to 60% of Interstate Auto Care’s customer base is within a three-mile radius of Madison Heights, with the remainder within an hour’s drive. At age 16, shop owner Bill Nalu purchased his first car, which broke down the day he bought it. Following his father’s advice, Bill followed the path of being self-sufficient and took an auto mechanics’ course in high school, learning skills that allowed him to pay for college. After graduating from Wayne State University in 1990 with a degree in business, Bill worked as a tech support rep for VW/Audi of America. After realizing that he wasn’t cut out for the office politics aspect of corporate life, he jumped at the opportunity to manage a Shell service station, enjoying the chance to manage a business and to have a say in workday scheduling and operation. Two years later, he partnered with brother Steve Nalu to purchase their own Shell gas station, which they operated successfully for the following six years. In 2000, Shell decided to eliminate all of its service retailers, opting for a gas and convenience store format. At this point, Bill purchased a former tire store that his parts supplier had suggested, which was the start of Interstate Auto Care. As a result of his outstanding customer service reputation, 80% of his customers from the previous
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The Interstate crew, from left to right: Joe Lerchenfeld, Norm Schultz, Mark Adams, Nick Nalu, Casey O’Sullivan, Bill Nalu. location travelled the several miles to new location, giving him the running start when the doors first opened in the fall of that year. “The majority of these customers who have remained loyal are the ‘baby boomers’ who appreciate skilled service and honest dealings. Today, too many people seem armed with plenty of content but little context and apparently don’t take the time to understand what’s involved in diagnosing and servicing today’s vehicles. And who can hardly blame
INTERSTATE AUTO CARE
Madison Heights, Michigan
Owner(s) ..................................................Bill Nalu Business founded........................... October 2000 Number of bays .................................................. 7 Number of certified technicians ........................ 4 Shop size (square feet) ............................... 7,000 Number of vehicles serviced per month........200 Hourly labor rate .............. Variable, $115 to $145 Average job ticket price .................... About $550 Gross profit....................................................58% Average spent on tools and equipment annually ................................$20,000 Vehicle makes serviced ............American/Asian/ European/medium-duty diesel
