Carm Capriotto

Carm Capriotto’s Friday Town Hall Academy #265 streamed live on February 25, 2022. The subject was “Coaches Lab: Turn Around a Struggling Shop”. The guests Chris Cotton (AutoFix), YNR’s own Brian Gillis, and Murray Voth (RPM Training) circled around the mic to discuss the ways that automotive service centers can turn their fortunes around.

Opening Up About Struggling Shop Issues

Murray Voth opened up the discussion, emphasizing that your employees probably have an idea that the business is struggling. This may be a conscious or subconscious suspicion, but generally, owners control the flow of information. There is such a thing as telling your people too much about the status of your business. However, if rumors about your auto service center closing are swirling, you need to set the record straight. When you’re having trouble keeping up with the channels of communication, hiring a business coach may be necessary.

Do you see signs of an unavoidable downturn in business? Don’t wait until it’s too late to seek help. Chris Cotton detailed some shop owners calling him when they were three weeks away from closing. When he asked how long they were on the decline, they told him six months. They should have called at the first sign of trouble. Depending on the actual issues, a few weeks may be enough reverse course, but it’s unlikely.

Brian chimed in to agree that no automotive shop owner is an island. We can’t do it alone. Sharing the overall health with your team creates buy-in from them. Your transparency and honesty will motivate your employees to help improve your business’ fortunes. Regularly scheduled, mandatory meetings help accomplish this goal.

How NOT To Fix Your Issues

Murray reiterated that delegating more tasks to your team needs to happen, so you can focus on improving the business. Chris agreed, adding that flat rate technicians can work more hours, but it will only help them and not the business. When systems and processes within the business are broken, working harder just means hastening the inevitable.

Chris mentioned that we must ask our team members for help, but reaching out to other shop owners is also crucial. Many of his referrals have come from shop owners in  Facebook Groups.

When inquiring about a struggling shop’s financial records, Murray often finds out there are none. Many shop owners think a CPA or Bookkeeper isn’t affordable. They often learn the hard way that not hiring one is even less affordable. Shops in financial trouble may or may not be salvageable. Again, the key is catching your problem early.

Another issue many struggling shop owners face is the temptation to pay themselves last. While caring for your employees and their families is important, when you don’t cash your own checks, you are putting your own family last. Sometimes, showing compassion means helping a technician find another job when you truly can’t afford to keep paying them. Do what you need to do to keep your business going, but don’t neglect your family at home.

Bottom Line – This Is Your Passion. Get Help If You Need Help.

If you need help, ask for help. We in the auto repair industry are independent. Often, we auto service center owners haven’t felt like we fit in, be it in school or past jobs. We landed in a niche that catered to our learning challenges, and we are passionate about it. This is too important to you to keep spinning your wheels.

Do You Own A Struggling Shop? Can A Coaching Company Really Help Your Auto Repair Business?

Even in a struggling shop, technicians still work their hardest.Have you owned a struggling shop for years? Then you have probably had some bad experiences with business coaches that serve the automotive service industry. After all, not every one of the auto repair shop coaching companies out there are created equal! For instance, some coaching companies are strong with financial matters, yet weak regarding phone sales techniques. We here at You Net Results want to help you focus on the total picture and get the results you need. Contact us today for a free strategy session.

Is Your Auto Repair Shop Ready For The Next Step? Book Your FREE Strategy Session!

Brian Gillis - You Net ResultsYour independent automotive repair shop is lacking in direction. Maybe your business plan has stalled out. You are definitely not meeting your shop’s goals for financial growth. You need an experienced automotive industry coach who can guide you along the way. Then why not schedule a FREE business strategy session with You Net Results guide Brian Gillis? You’ve got absolutely nothing to lose, so sign up today!

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Our chief strategist Brian Gillis recently made a return appearance on the Town Hall Academy podcast. This time on the automotive industry standard show, Brian discusses how to create and execute procedures and systems (SOP’s) for your shop. If you need to get organized and create your shop’s how-to manual, then this episode is for you!

Systems and processes podcast discussion

First of all, Brian gives host Carm Capriotto the low down on how to get started with SOPs. If you start out by organizing the systems you will need to run your business smoothly, that will save you headaches later on. Starting with the basic “SOP on how to create an SOP” will be a valuable to resource for you and your staff when you need to write new systems. Create a template with the key questions (how, what, when, where, why, and how) that the SOP will answer for your business. Store all of your documents in either Dropbox or Google Drive.  Then link all of your team members up to them for quick access.

Brian and Carm then go through a sample system, the Incoming Phone Call SOP. This process details who needs to answer the phone, as well as scripts they can use, depending on the customer’s needs.

Why are SOPs so important? Staff turnover is inevitable. Easily accessible documents can help both new recruits and employees changing positions to quickly learn. When your staff members know how to do tasks consistently, they improve their value. Down the line, this will also increase your business’s value to clients and potential investors.

This is how we do it! Get buy-in from your staff on documenting the systems and processes. Well defined and organized SOPs are the first step to create a culture of success and efficiency in your shop.

Interested In Learning More About Our Services?

Organized systems are crucial to a successful automotive business. You Net Results is a coaching group that helps you navigate and apply these processes. Why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!

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Recently, our own Brian Gillis appeared on the Remarkable Results Radio podcast Town Hall Academy. This show features a roundtable discussion amongst automotive industry experts on a single topic. Carm Capriotto and Bob Greenwood discussed all of the ins and outs of labor rates with Brian on this special episode.

Labor Rates podcast discussion

Brian elaborates that shop owners want to look at the end goal result first. Shop owners must first know the true cost of doing business in order to arrive at their labor rate formula. In fact, as Bob states, it is important for you to employ not one, but at least three labor rate formulas. Today’s automotive industry is more diverse than ever. Thus, you need employ different rate formulas for maintenance, diagnostic, and reflash.

Bob then presents the cost per billed hour (CPBH) formula. Every dollar must have a name, and every expense needs to be accounted for in order to know rates that are right for your shop. Finally, you should net 20% of gross sales after paying yourself (first!) and your employees a professional wage.

Brian and Cam reiterated that you are in the labor business! Therefore, you must give special attention to your team’s rates. Bob then gave examples of the three door rates he mentioned earlier. He presented formulas for setting those door rates, which are based on competency rate and/or efficiency of business operation.

After discussing these key stats, Brian discusses the concept of labor matrixes, specifically accurately charging for the time that’s spent. Then, the hosts welcome shop owner Bill Nalu to discuss the emotional aspects that go along with the numbers. Courage, as well as knowing your worth as a technician, are essential.

Subscribe to the Remarkable Results Radio podcast for more valuable auto repair discussion.

Interested In Learning More?

This all may seem complicated, but you can do it! You Net Results is here to help! Why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!

 

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