06.19
STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS
HOW TO INJECT
‘FUN’
INTO YOUR CULTURE PAGE 44
STOKES:
DO YOU KNOW WHY YOUR EMPLOYEES LEAVE? PAGE 70
THE KEY TO REDUCING DAY-TO-DAY STRESS
Navigating Change After splitting with his business partner, Ken Gamble was forced to gain a deeper understanding of how to run his South Carolina business.
PAGE 53
REWRITE INDUSTRY MISCONCEPTIONS PAGE 54
COURSE CORRECT Push past limitations— and reinvent your business PAGE 38
LOCAL RESIDENCE. NATIONAL PRESENCE. TechNet gives independent shop owners the power to compete and grow their businesses. With exceptional resources like a 24/24 Nationwide Warranty and roadside assistance reimbursement, the possibilities are endless when you are a TechNet Member.
10,000 Members and growing, TechNet Nation is an elite group of owners backed by industry leading solutions. Visit TechNetprofessional.com/RW to learn more.
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FOLLOW US @TechNetPros
2 / R + W / 0 6 .19
“I can honestly say it was the best business decision I could’ve made.” Michael Urban | Urban Automotive Oakville, ON • Member since 2017
“Being able to offer services like tire road hazard and a good warranty really helps make a customer feel comfortable, and that product sells itself.” Timothy D’Innocenzo | TJ’s Auto Repair Colorado Springs, CO • Member since 2015
“Road Side Assistance has been a huge revenue opportunity for us. It’s a great way to ensure we retain Customers.” Jason Dickerson | Dickerson’s Service Center Creedmoor, NC • Member since 2014
“Being a TechNet Member has helped my business immensely—primarily with the Nationwide Warranty. It gives our customers the ability to support a family owned-business and still be warrantied.” Gabriel Garcia | Auto Angel Incorporated Sante Fe, NM • Member since 2000
“TechNet offers a community to talk with other business owners and their customer care and service has always been outstanding.” Jennifer Notts | Nott’s Automotive Sarasota, FL • Member since 2014
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SEE WHAT 10,000 MEMBERS ARE TALKING ABOUT ROAD HAZARD TIRE PROTECTION
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Is your profit indicator light going off? Full synthetic and high-mileage oil changes are growing—and so is your opportunity. As the #1 driver of automotive service visits, oil changes can increase your car counts, capture higher sales revenue and generate even greater profit for your business.
Get more value from your biggest little ticket at Havoline.com/ProfitLight Š 2019 Chevron. All rights reserved. All trademarks are property of Chevron Intellectual Property LLC or their respective owners. 0 6 .19 / R + W / 5
PARTS PLUS CAR CARE CENTER 2019 PROGRAM ADDITIONAL PLATINUM BENEFITS • Warranty: 36 Months / 36,000 Miles Parts & Labor • (4) Mile 1 Warranty Claims for Labor • Double ASE Reimbursement: $50 per Qualifying Test • $200 Enterprise Rent-A-Car Reimbursement • (4) No-Cost Injectronics Technician Training Webinars • Double Points for All Repair America Promotions • Customized Hood Wall Sign (New Enrollment) ONE OF THE FOLLOWING OPTIONS • Identifix Direct-Hit (4 Months) • Spectrio Digital Menu Board Subscription (1 Year) • (4) Additional Mile 1 Warranty Claims for Labor (1 Year) • LoyaltyTrac Standard Tier Subscription (3 Months) FIND OUT MORE: o: www.partspluscarcarecenter.com e: ccc@networkhq.org
06.19 VO L . 7 N O. 0 6
J U N E Helping Hand Co-owner AnnMarie Aristigue looks out for staff coaching opportunities.
F E AT U R E
P R O F I L E
C A S E
38
44
58
66
Establishing a culture that’s not only productive, but also downright fun, can pay huge dividends when it comes to recruiting.
When making the decision to expand, finding the right location is vital to business success.
For AnnMarie Aristigue, finding ways to create career opportunities for local students has become a recent focus.
LEARN FROM THE BEST
Evolving your strategy as an owner is vital to continued business success—three owners outline how they did just that.
PLAY AROUND
S T U DY
LOCATION WOES
BY KILE Y WELLENDORF
BY KILE Y WELLENDORF
R E PA I R
L I F E
YOUTH ORIENTED
BY KILE Y WELLENDORF
ANDREA D. CASTAÑON
BY NOR A JOHNSON
PRINTED IN THE U.S.A. COPYRIGHT ©2019 BY 10 MISSIONS MEDIA LLC. All rights reserved. Ratchet+Wrench (ISSN 2167-0056) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. Ratchet+Wrench content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: Ratchet+Wrench, 571 Snelling Avenue North, St. Paul, MN 55104.
ON THE COVER: KEN GAMBLE PHOTOGRAPHED BY NILL SILVER
0 6 .19 / R + W / 7
TA B L E O F C O N T E N T S
Top industry challenges
S TA R T
22 BREAKDOWN
20
10 ONLINE
26
J U M P
Lyft to open repair shops
15 NUMBERS
25 VIEWPOINT
16 AWARDS INSIGHT
28 SPEED READ
18 EDITOR'S LETTER
32 SHOP VIEW
How location affects profitability
Icahn Automotive’s technician solution
Finding more training avenues
Consumers prefer indys over dealerships Green Toad Tire & Auto
The value of new experiences
35 STRAIGHT TALK 25
Don’t forget the human element of business JOE MARCONI
The 2019 Ratchet+Wrench RW To Go app is the most efficient way to improve your business. Gain access to podcasts, videos, articles and more. All in one spot. Wherever you go.
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D O IN W A A N N P LO D P R S AD O T ID O F R O A E R N S F D F R iO O EE S R
FAST TRACK YOUR BUSINESS
T O O L B OX
65 THE BOTTOM LINE
53 SHOP ADVICE
Become a better advocate for customers
Easy ways to de-stress your day
MITCH SCHNEIDER
54 HUMAN RESOURCES
70 THE FIXER
How to recruit younger generations of techs
The real reason your employees are quitting
57 INDUSTRY INSIDER
A ARON STOKES
Rick Black’s passion for giving back RISSY SUTHERL AND
62 EDUCATION+TRAINING
Put a stop to negative industry misconceptions
53
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Intrepid Direct Insurance operates as Intrepid Direct Insurance Agency, LLC. CA License 0K95913. Products and services are provided by one or more insurance companies that are rated A+ (Superior), Financial Size Category XV by A.M. Best Company, Inc. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance companies through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
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EDITORIAL VICE PRESIDENT, CONTENT AND EVENTS Bryce Evans EDITORIAL DIRECTOR Anna Zeck ASSOCIATE EDITOR Nora Johnson SPECIAL PROJECTS EDITOR Jordan Wiklund CONTRIBUTING WRITERS Joe Marconi, Mitch Schneider, Kiley Wellendorf, Aaron Stokes, Rissy Sutherland, Alayna Baggenstoss PRODUCTION ART DIRECTOR Zach Pate ASSOCIATE GRAPHIC DESIGNER Lily Risken GRAPHIC DESIGNER Nicole Olson PRODUCTION ASSISTANT Lauren Coleman SALES VICE PRESIDENT AND PUBLISHER Chris Messer 651.846.9462 / cmesser@10missions.com SALES MANAGER Nathan Smock 651.846.9452 / nsmock@10missions.com REGIONAL ADVERTISING SALES Ross Kirgiss 651.846.9485 / rkirgiss@10missions.com CUSTOMER SUCCESS REPRESENTATIVE Shayna Smith 651.846.9460 / ssmith@10missions.com CLIENT SERVICE SPECIALIST Jen George 651.846.9465 / jgeorge@10missions.com 10 MISSIONS MEDIA PRESIDENT Jay DeWitt GENERAL MANAGER AND PRODUCTION MANAGER Mariah Straub BOOKKEEPER AND CLIENT SERVICE SPECIALIST Meghann Moore EVENT COORDINATOR Katie Cornet SENIOR DIGITAL MEDIA STRATEGIST Tiffany Fowler MARKETING COMMUNICATIONS SPECIALIST Kasey Lanenberg ADMINISTRATIVE ASSISTANT Amanda Nicklaus EDITORIAL ADVISORY BOARD Leigh Anne Best, Mighty Auto Pro Andy Bizub, Midwest Performance Cars Greg Bunch, Aspen Auto Clinic Ryan Clo, Dubwerx Ron Haugen, Westside Auto Pros David Toole, Toole's Garage HOW TO REACH US 10 MISSIONS MEDIA 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of Ratchet+Wrench. BACK ISSUES Past issue single copies are $8. Go to ratchetandwrench.com/backissues LETTERS TO THE EDITOR editor@ratchetandwrench.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@ratchetandwrench.com. Opinions expressed in Ratchet+Wrench are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.
New Ratchet+Wrench Podcasts.
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4 SERIES WITH NEW EPISODES EVERY MONTH.
HOW I DID IT. Series featuring a rotating guest each month. Hear about the challenges, opportunities and success stories from shop owners who found a way to thrive. New episode this month.
GROW. Series hosted by industry superstar Rissy Sutherland. Inside the processes, systems and operational strategies that have allowed the industry’s top shops to thrive.
S P O N SO R ED BY:
New episode this month.
LEAD. Series hosted by shop operator Aaron Stokes. The go-to resource for leadership lessons, philosophies and success stories. New episode this month.
INNOVATE. Series featuring a rotating guest each month. An introspective look at the industry’s most pressing topics from the people who know them best. New episode this month.
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ONLINE 06.19 COMMENTS, DISCUSSIONS, FEEDBACK AND MORE FROM AROUND THE WEB
FE AT URED COMMENT:
TOP INDUSTRY CHALLENGES
—
In response to Mitch Schneider’s April column “Three Things,” Robert Choisser, owner of Choisser Import Auto Services, posted a comment on ratchetandwrench.com/ three and shared what he believes to be the top three industry challenges: “The top three challenges I have identified are as follows: 1) Attracting talented and passionate individuals to serve in the automotive industry. I believe the lack of a defined career path is one of the most critical obstacles in this attraction, or lack thereof. 2) Deciphering the copious marketing tactics being used to sell parts to shops, that are not equal on one aspect or another. There are so many shades of grey when it comes to part quality, fit and function that shop owners often choose based on price and availability alone. 3) Technical training to manage the advanced technologies being deployed on modern automobiles. There are so many changes every model year that even if you are dedicated to knowing the nuances of system function, it is unrealistic to understand how they truly feel or respond to the owners’ driving scenarios.”
FEATURED POLL:
P O D C A S T:
RADIO
TAKING A RISK
—
Making the decision to expand one’s business will always be a risk, but is it a risk worth taking? In this month's Lead podcast, Ratchet+Wrench columnist Aaron Stokes details what every shop owner needs to consider before taking a large risk in their business. “Lead: The Danger with Taking Risks” can be found at ratchetandwrench.com/podcast
RW INTERVIEW SERIES:
INTERVIEW GREG BUNCH
—
TO CHARGE OR NOT
—
Weekly, the Ratchet+Wrench Facebook page hosts a poll to survey its readers. Toward the end of March, roughly 150 people weighed in on whether or not their shop charges for diagnostic work. Ninety-nine percent of readers responded with “yes.” One percent of readers responded with “no.” On top of the votes, readers shared what method their shop used to charge their customers in the comments. Look out for the next Facebook poll to add your input. 12 / R + W / 0 6 .19
In the third edition of the Ratchet+Wrench Interview series, sponsored by AutoZone, Greg Bunch explains the mindset every shop owner needs to have before beginning the expansion process. Over the past 16 years, Bunch has grown Aspen Auto Clinic from a one-man operation started in his home garage in 2001 into a five-facility, nearly $10 million–peryear business in central Colorado. Along the way, Bunch has mastered the art of measured business expansion, and founded a networking group for independent owners of multiple repair shops. The full R+W Interview Series video can be found on the Ratchet+Wrench Facebook page.
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What Keeps Shop Owners Up At Night? Coast to coast, shop owners face the same urgent dilemma regardless of scope, size or scale: a rapidly changing industry, lack of trust with customers, and an ongoing technician shortage that forces shops to overcompensate and hurt their efficiency and productivity. BOLT ON TECHNOLOGY can help solve these problems. For over 10 years, BOLT ON TECHNOLOGY has equipped the automotive repair and maintenance aftermarket with award-winning technology and tools to improve customer communication. The company’s technology instantly transmits photos, videos and text messages to communicate automotive repair details, thereby increasing customer trust, boosting sales and empowering shops to build long-term customer relationships. Along with ongoing training and support, BOLT ON’s mobile and digital tools also reduce problems inherent in the service process, while increasing shop productivity, revenue, and customer satisfaction. Below, several shop owners share their insights about how BOLT ON has helped them succeed where others have failed. For many, it starts with the right tools, but that’s only the tip of the iceberg.
No. 1: Achieve Optimal Effective Labor Rate. At the 2019 Automotive Training Institute (ATI) conference in Baltimore, Pat Connell is considered a Mastermind. Well, he and 19 other industry luminaries. Connell is part of a top-tier 20 Group championed by ATI, and after a day of brainbusting and problem solving, he had this to share: “Did you know dogs don’t tire from physical activity? They’ll zonk out from mental activity, though, after creating new habits and problem solving.” Thinking about why you do what you do can be exhausting, but it fuels owners such as Connell. Connell is the president and CEO of ARS Fleet Service (New Castle, Delaware). ARS has both a collision repair center and a mechanical shop and understanding why it works the way it does has been key to its (and Connell’s) success. Connell bought ARS in 2006 and within a decade had accelerated its annual revenue from around $800,000 to almost $10 million. He cites one shop factor as the primary cog in his wheelhouse: effective labor rate (ELR), or the amount of total labor sales ($) divided by total labor hours billed. “We focus on it every day—it’s the only rate that really matters,” he says. Connell understands that if you know what your efficiency is and how you perform in the market, you can really get creative with your hourly rates to produce the best opportunity for profitability as well as the best client experience. Connell cites two factors to understand when committing to ELR. First, it affects the profitability much more than you think, and second, ELR is a function of the counter, not the technicians. “Most of the time the situation is ‘we need to work harder or longer and get more cars,’ and that scenario erodes ELR even more. Now you’re in overtime and you’re creating inefficiencies. Focusing on the counter and monitoring techs’ production and behavior with discounts and services drives ELR.” To help increase efficiencies, Connell and ARS look to BOLT ON TECHNOLOGY for convenient (and cutting-edge) shop tools and services. “Our team embraced it immediately,” he says. “We’re a solution-oriented company and desire new
SPONSORED CONTENT
and better strategies to get organized. Vision is huge for us, and [Mike Risich] and the BOLT ON staff are visionaries.” Connell doesn’t focus on just one service from BOLT ON TECHNOLOGY—he uses them all. He uses digital recommendations, text to pay and more. PRO Pack software specifically eases communication between the counter and the bay, improving efficiency and empowering owners to better manage ELR.
“Companies like BOLT ON are advancing us quicker than we ever have before.” —Patrick Connell, President and CEO ARS Fleet Service “They know the business, and BOLT ON designs products that really assist the shop owner to create the best shop possible. They listen to shop owners and create solutions. Companies like BOLT ON are advancing us quicker than we ever have before.” Like the lessons learned at ATI, Connell knows that implementing change can sometimes be an arduous process within the shop, but the results will show, especially when it comes to ELR. Don’t check last month’s numbers and account for it next week; check Monday’s numbers on Tuesday to improve on Wednesday, he says. “When do they say to train your dog? Immediately. It’s the same thing in business; duplicate that training. Train today for what happened yesterday and see what happens. “I guarantee it will be good.”
To learn more about the tools to boost ELR, visit boltontechnology.com/pro-pack.
14 / R + W / 0 6 .19
No. 2:
Hire, Train & Retain Talented Technicians.
One of the most troublesome aspects of modern car repair is the dearth of talented technicians. Vocational school enrollment has been in decline for years and some industry outlooks report that by 2026 the repair industry will be almost 50,000 technicians short. Frank Leutz, owner of Desert Car Care (Phoenix), knows the struggle. He wants his technicians to know that they’re valued, that he wants to see them grow, and that he’ll do everything he can to help them achieve their goals. He feels technology and modern shop equipment is a clear signal to his staff that he has their long-term interests at heart. “Creating self-awareness is key and critical; we already have a shortage of technicians and we’ll just push them away if we don’t address their needs,” he says. Hiring, training and retaining skilled technicians isn’t just a private incentive for a more lucrative shop—it’s a public good in service to the community. Here are some strategies to find (and keep) the best techs around:
1. Offer competitive compensation. According to the U.S. Bureau of Labor Statistics, the annual average wage for automotive technicians is $36,950. While many technicians achieve twice or even triple that, the numbers don’t lie—the average opportunity lies, well, elsewhere. “My lead techs make $100,000 per year,” Leutz says. “We pay well and I don’t have turnover. New hires everywhere can leave for a different industry section and make more money right now. Gone are the days when you start someone at minimum wage, hand them a broom, and say, ‘Hang out with this for two years and we’ll see what happens.’” Out with the brooms; in with the tablets. Leutz gets his team on board with digital tools as soon as possible to help position his shop as modern, cutting-edge and a desirable place to work. Coupled with the training BOLT ON shops receive to maximize customer relationships through transparent and easy-to-understand data, Leutz has dynamically differentiated himself from other shops in the minds of his technicians and customers.
2. Learn what motivates your team. Understanding what motivates your technicians—money, benefits, time off, flexible working hours, or some combination of them all—will work wonders for deciphering individual pay plans, incentive programs and work schedules. Everyone has different priorities, goals and dreams—enable your techs to achieve them, and they’ll reward you with hard work and long-term employment.
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“Learn from the people in your organization,” Leutz says. “Most problems that will tilt your ship are three feet in front of you, and that’s your people. As operators, you’re constantly looking for ways outside the box to do better, but it’s what’s in the box—your shop—that matters.”
3. Provide an employment roadmap. No technician works in a vacuum, but for decades if often felt that way. What is the way forward? Can a young technician become a shop manager in 10, 15, 20 years? In other words, give your staff an answer to this question: Why should I stay here? “The key factor is identifying who the person is outside the resume,” Leutz says. “Once we create that mindset, KPIs and other shop indicators will be secondary, and the money will come. And your team will be happier than they’ve ever been before.” “Each business needs to identify what it wants, what it can do, and how to change accordingly,” Leutz says. “That usually means tools, technology and best practices, and the value to your customers will be evident.”
To learn how to equip your staff with the right tools and empower them with the right training, check out blog.boltontechnology.com/topic/training-and-advice
No. 3:
Increase the Value of
your Business.
When Ratchet+Wrench spoke with Kent Smith, president of the International Midas Dealers Association, he was en route to the Mediterranean. He’s taking his family as well as a cadre of trusted employees. After over 40 years in the business working his way up from a 17-yearold Midas employee to assistant manager, manager, and, finally, MSO owner and president of IMDA (1,100-plus shops), he knows a thing or two about fostering relationships that
lead from the shop floor to unexpected places (such as Europe). As a self-described entrepreneur, Smith learned the business from the ground up, learning from mentors and seizing opportunities until he found himself mentoring others. Smith believes in people—surround yourself with the right people, and the results and revenue will come. He knows BOLT ON TECHNOLOGY believes it, too, enabling Smith’s shops to thrive in a crowded marketplace. “They key with BOLT ON is the right people,” he says. “I have six of 18 shops with BOLT ON TECHNOLOGY, and I’d like more. BOLT ON is a benefit to the customer.” He describes digital inspection forms as a game changer for shops. For years, Smith has been known as “the turnaround guy,” tweaking a shop’s process to turn ledger rust into ledger revenue. “It’s about transparency and trust—transparency of the process, and trust with the customers,” he says. “Digital inspections—and the data, ease and recordkeeping they provide—bridges the gap from the repair order to the repair itself, educating customers about how and why their vehicle broke and needs fixing.” It’s now easier than ever to build trust by sharing photos and notes with the customer via mobile shop tools, transforming the customer/technician relationship into consultative instead of transactional. Many customers are also more apt to respond to a text immediately instead of a voicemail, so the shop can more accurately plan for authorized work instead of waiting for tomorrow’s voicemails. Tools such as Mobile Manager Pro are made to do this. Smith’s father used to tell him, “Common sense is uncommon.” For Smith and the shops, owners and technicians under his wing, common sense rules the day, and the common-sense approach to data and transparency has led to success. “Once you have a good process, you can expect results. That’s why I like BOLT ON—it’s part of a process and system that is the recipe for a successful repair shop,” he says. Smith looks forward to a time when anything but digital inspections will be considered archaic. Remember when you had to hit the number “6” on your mobile phone three times to get the letter “O”? “I can’t imagine anyone looking at this technology from a practical standpoint and saying, ‘why wouldn’t this be the future, and good for the customer?’” he says. “These tools enhance the customer experience.” Smith isn’t just waiting for the future to roll around to Midas and the stores under his purview—he’s actively embracing it, welcoming change and implementing processes today to protect his customers tomorrow.
For an uncommon experience, consider what digital inspections can do for you. Check out boltontechnology.com/mobile-manager-pro for more information.
SPONSORED CONTENT
Evolving Shops Through Technology Mike Risich is founder and CEO of BOLT ON TECHNOLOGY. In a brief discussion he shared his inspiration and vision for the auto repair industry.
How did you get started in the industry? This version of BOLT ON TECHNOLOGY was founded in September 2009. I’m a software engineer by trade, and I started helping repair shops in the mid to late ’90s and now find myself serving over 5,000 shop owners. Out of all the places I could have gone as a software engineer during the web boom around the millennium, I chose auto repair because I fell in love with the people. I worked for a boutique consulting firm in Philadelphia, and it didn’t have the same reward—there was more impact for me personally helping the automotive market solve its challenges and embrace opportunities.
What appeals to you about helping shop owners? Many times, the guy who hung the shop shingle is also the guy who works under the hood. Having his own place may be better than working for someone else, but there’s not enough hours in the day to do all the jobs, wear all the hats that you need to wear as a small business owner. That’s where our strengths come from—we leverage technology to help with all the micro competencies. The evolution from tech to service advisor to manager to owner is a common path in our industry, and we provide solutions that help all areas of those job descriptions. Technology empowers you to get more done in the same time period. By embracing it in ways where you can implement systems and best-practice procedures, you can eliminate many hoops you had to jump through. That’s been a focus of ours for 20 years—we believe that the greatest tool shops have is the one with a screen in front of them. Automate routine tasks so you can focus on the repair work.
So, BOLT ON provides tools, tech and resources to more fully track what’s going on in the shop? Absolutely correct. Some owners work in their business, not on their business. They “own a job,” you might say, instead of a shop. There are points in a career where that’s exciting and attractive, but it gets old very soon. I’ve been there! You need to evolve and build a team that supports the mission you’re trying to achieve. You must talk about those points and execute them as well. That’s what BOLT ON is all about.
What’s next for BOLT ON TECHNOLOGY? The path we’re going down is to simply help eliminate the challenges that face shops today. Our customers trust us—they trust us so much they tell us exactly what to work on. Let’s create solutions that fit our customers with an eye toward the best practices of industrial juggernauts such as Amazon and Apple. Text to pay, for example, is frictionless—nobody
®
really enjoys paying for their automobile to be serviced, but they do enjoy that it’s painless. The biggest challenge in the entire industry is the perception that the vehicle owner is being taken for a ride, and that the repair work being performed is unnecessary or falsified. If we can continue to innovate and bring solutions to market that lower the anxiety during that transaction, create transparencies and build trust between the owner and the shop, everyone wins (the customer most of all). We don’t just sell software—we help shop owners improve their lives. We have invested tons of time and resources into training and mentoring shops to break down that monoculture. Software has the ability to transform the business, but only if used properly. BOLT ON UNIVERSITY is a huge resource for owners savvy enough to take advantage of it; it’s all well and good to have the best hammer on the market, but you need to know which end strikes the nail. That’s what BOLT ON UNIVERSITY provides. Soon, you’re going to need a software engineer in the bay. We need to help this industry convey the message that a fair exchange of dollars for service is achievable. And if we can do that, we’ll have accomplished something monumental. Mike Risich Founder & CEO BOLT ON TECHNOLOGY
NUMBERS THE
TOPICS,
TRENDS,
AND
METRICS
DRIVING
YOUR
OPER ATION
BREAKDOWN OF SHOP LOCATIONS
—
Many factors contribute to how shops around the country perform: weather, road conditions, population density, class and more. But what are the hard numbers on how shops are doing regionally? Data from the 2018 Ratchet+Wrench Industry Survey has been broken down and compared to showcase the regional difference of sales volume and ARO.
Unanswered
T O TAL Y E ARLY SALES VOLUME
MW
NE
SO
WE
Under $250,000
8%
11%
10%
11%
$250,000—$499,999
15%
17%
18%
8%
$500,000—$744,444
20%
16%
20%
17%
$750,000—$999,999
18%
11%
9%
9%
$1 million—$2.4 million
26%
37%
38%
45%
$2.5 million +
10%
8%
5%
10%
Unknown
3%
0%
0%
0%
FILE GRAPHICS
DOLL AR AMOUNT OF AVER AGE REPAIR ORDER
MW
NE
SO
WE
Less than $200
4%
2%
5%
3%
$200—$399
57%
51%
33%
30%
$400—$599
28%
31%
38%
41%
$600—$799
3%
11%
13%
16%
$800—$999
4%
1%
2%
4%
$1,000 +
4%
4%
9%
6%
Beyond the Stats For an in-depth look into which cities have the highest and lowest repair costs across the country—as well as the contributing factors—take a look at the RepairPal study, “America’s Best and Worst Cities for Car Repair.” — repairpal.com/blog/best-worstmetros-car-repair-study-2019
0 6 .19 / R + W / 17
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AWA R D S I N S I G H T
Bring the Training to You BY NORA JOHNSON
GET OTHER SHOPS INVOLVED. Marquardt says the key to getting the local training classes in his small town was by working with other nearby shop owners. He explains that, although the shops around him more or less go after the same customer base, he doesn’t quite see them as direct competitors. “Other shops in my area are not my competition; they are my colleagues,” Marquardt says. From day one, Marquardt says he has believed in having good working relationships with other local shops and dealerships near him. This core belief aided in him finding the owners needed to bring training to Rhinelander. “I was actually surprised by how many people were embracing the idea of getting training in our own backyard,” he says. “It just takes a shop owner to take the lead and say, ‘Listen, I want to go around and talk to other shops.’" INVEST IN YOUR TECHS’ ATTENDANCE. In order to support his staff in attending the training, Marquardt pays his technicians their hourly rate for the time they are in classes. In the past, he, like many other shop owners, believed that 18 / R + W / 0 6 .19
technicians shouldn't be paid to go to training, but, in the last year, has shifted his traditionally “old school” mindset on the subject. “I came to the realization that in today’s world—especially with millenials and younger people—time is a very valuable asset. We’ve got young technicians that have families, and pulling them away from their family and expecting them to work all day to then go to another four-hour class at night and not get some sort of compensation for it is just not fair for them,” Marquardt says. The training has given Marquardt’s technicians more confidence, he explains, and appreciation in the fact that Northwoods Auto Techs invests in their training. ASK FOR DEMONSTRATED KNOWLEDGE. To best take advantage of the training, Marquardt has started a new program at his shop. Whenever one of his technicians attends training, he or she is given a week to demonstrate the learned technique or test the shop’s other techs. Marquardt explains that this has been added to the training process because, all too often, new techniques or processes will be forgotten by the time the techni-
ALL-STAR NOMINEE
PAUL MARQUARDT — NORTHWOODS AUTO TECHS RHINELANDER, WIS.
cian is actually faced with an opportunity to apply it. “We’d go to a class and see a new technique or a new test, but we didn’t bring it back to the shop and apply it,” he explains. Marquardt now has his technicians take 15–20 minutes to demonstrate something they learned during the training. Everyone wants to do hands-on training, Marquardt says, but that’s very difficult to do consistently—so this is his version of having his techs physically run the new test. CONTINUE THE EFFORT. In order to keep the local training session, 10 shops must be in attendance at the Rhinelander location. Marquardt says they try to keep the numbers to 11 or 12, to cover the cost of the sponsor and food. He says shops come in and out, but consistently has steady attendance. “The biggest thing we run into is shops not being informed that we have training in our own backyard,” he explains. To get those shops in and aware of the trainings, shop owners interested can sit in on their first session for free. Marquardt says that once the individual sits in on classes, hopefully he or she will see the value and will sign up his or her shop to get involved as well.
FUE VANG
Paul Marquardt started working at a two-bay gas station in high school. Eleven years later, he bought the place. With added bays and additions, Marquardt is now the owner of Northwoods Auto Techs, a NAPA AutoCare Center, in Rhinelander, Wis. “My wife and I joke that I’m still working my high school job,” he says. Marquardt explains that his shop’s investment in tools, equipment, and training is what makes Northwoods Auto Techs successful. But conveniently getting his staff to training posed a challenge for Marquardt. “One of the issues that we were running into in our area was that the closest training facility was over an hour away, one way. So it was a two-hour round trip for an evening class,” he says. By realizing that this obstacle affected his shop, as well as the other shops in the area, Marquardt took the issue into his own hands. He began contacting NAPA to get training sessions in his own town. After years of hearing “no,” Marquardt inquired about the number of shops NAPA needed to make the training location near him viable—after getting his answer, Marquardt got to work. Rhinelander now holds six trainings per year at a local technical college, with 30–40 attendees—in a town of only 7,000 people.
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EDITOR'S LETTER
Never Grow Up
WHY THE SOLUTIONS TO OUR PROBLEMS ARE IN HOW WE APPROACH THEM Don’t judge from the picture accompanying this letter. That photo
BRYCE E VA NS, VICE PRESIDENT, CONTENT A ND E VENT S BE VA NS@10MISSIONS.COM
LEAH QUINTO
is from months ago. As I write this, depending on whom you ask, my face either looks “a little rough” (my wife’s take) or like the Batman villain Twoface (my 8-year-old son’s opinion; granted, he thought this was a good thing, or at least an improvement). I’ll try to make this story short: I crashed on an electric scooter—after only riding it for about 10 feet. In my defense (if there is a defense for a grown man getting hurt riding a scooter), someone stepped off the sidewalk right in front of me, forcing me to turn abruptly and, well, face-plant into the pavement. Despite all appearances (and by that, I mean the bloody, scraped mess that replaced the right side of my face), I was, more or less, uninjured. Apart from having to retell the story a couple dozen times over the last few days, the only real harm done has been from the goodnatured (I assume?) needling I’ve gotten about it. This all took place a day before my birthday, and as my wonderfully snarky colleague, Anna Zeck, put it, “Oof, a scooter accident right before your birthday—how old are you turning again, 12?” So, I do have a point in bringing all of this up, because the entire situation truly has reinforced a couple of my core philosophies I strive to follow. Both are very simple to grasp, but far more difficult to keep up. The first: Never take yourself too seriously. I often amend this one to our team here at Ratchet+Wrench as, “Take your work very seriously, but not yourself.” The idea is to eliminate (to the best of our abilities) the ego and pride that get in the way of doing work that represents our best selves. When you do this, you open yourself up to improvement, collaboration, change and innovation. And that plays into the second, simple philosophy: Say yes. By that, I mean to have a true willingness to try something new. Don’t ignore opportunity because it’s different, challenging or frightening. Don’t focus on problems; look for solutions. Sure, I didn’t necessarily need to smash my face to remind myself of these concepts. But in the somewhat juvenile way this all came about, it reminds me of the need for a youthful exuberance in all that we do (no matter our age)—get over our mistakes, laugh it off, and move on. Hopefully, you get that message in a much clearer way from the success stories in our cover feature, “How I Did It” (p. 48), this month, or elsewhere in this issue. Still, here’s to pushing forward, and not growing up.
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J U M P S TA R T NEWS
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BREAKDOWN VIEWPOINT SPEED READ
COURTESY GREEN TOAD TIRE & AUTO
SHOP VIEW
In the Name Green Toad Tire & Auto reuses and recycles more than just shop materials.
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J U M P S TA R T
Lyft Enters Repair Market LYFT PLANS TO OPEN 36 OF THEIR OWN REPAIR SERVICE CENTERS BEFORE THE END OF 2019 BY NORA JOHNSON
Francisco, has a goal to launch and run a total of 36 repair shops—or vehicle service centers—throughout the U.S. According to the Lyft representative that spoke with Ratchet+Wrench, there are currently two test service centers—one in San Francisco, and another in Philadelphia. The service centers will offer general maintenance and car washes. Lyft also mentioned the goal of having a majority of the centers additionally offer collision repair. Lyft’s objective is to cut expenses for their drivers, as well as make their timeuse more efficient. According to Lyft, their service center repairs will cost drivers 50 percent less and take 50 percent of the time to complete. 24 / R + W / 0 6 .19
UNSPLASH
By the end of the year, Lyft, the transportation network company based out of San
and to educate the employees we got, but then to find the next generation of employees we need to educate and keep.” The technician shortage will come into effect when Lyft begins hiring technicians, just like every other shop in the industry, predicts Fiffick. This shortage may be even more difficult to navigate for Lyft. Most of the technicians in the industry are getting paid very well, and wages are increasing rapidly, explains Fiffick. With the discounted prices Lyft plans to offer its drivers, he predicts technician wages will most likely be lower than traditional indy shops, and won’t be able to hire the best of the best at discounted wages. “The industry has already sucked up all the good guys,” says Fiffick. He predicts a lot of the employees will have to be entry level, or have a lack of knowledge of the industry, because of the shortage effect. “If they get a workforce that are trying to do the menial things, you are doing a disservice to the client and the vehicle,” he says. Complexity Constraints Lyft’s representative says that the goal of these service centers will be to offer services at cost, with discounts up to 50 percent on maintenance, repairs, car washes and more. They also plan to complete the maintenance and repair services in 50 percent of the time. Lyft says the fast time is due to the exclusivity of the centers solely servicing Lyft drivers—as well as the centers’ setup. Their goal is to design the centers with smaller repairs entering the building through a separate entryway than larger repairs, to maximize flow, says the representative. Fiffick sees the “assembly line” fashion Lyft plans to complete their repairs and maintenance, as difficult to successfully sustain in this day and age of advanced technologies and ADAS features in cars today. “Basic needs of their drivers would be tires, alignments and brakes,” explains Fiffick, “some of the cars [these days], you have to have computers to even change the brake pads. For them to set up an assembly line to do this, is not in line with what’s going on in the industry, of things getting more technical, not simpler.” But, how will these new Lyft repair shops affect the world of independent auto repair shops? According to Andy Fiffick, member of the ASA Mechanical Operations Committee and president of Rad Air Complete Car Care, an 11- store operation in Northeast, Ohio, not by much. Below, Lyft shares more of their plan, and Fiffick explains his concerns on how Lyft will accomplish their goal ,as well as what the news could mean for the automotive aftermarket repair sector. The Tech Shortage Effect On top of the two current test centers, Lyft plans on opening up 34 more locations throughout the country—quickly, Lyft told Ratchet+Wrench. But Fiffick has concerns when it comes to their accelerated growth. “Where are they going to get qualified people to open all these shops,” says Fiffick. “There are no extra people in the pipeline right now to run those facilities. Our whole industry is struggling right now, tooth and nail, not only to keep the employees we got
The Industry Aftermath In 2017, Lyft had 1.4 million drivers on the road. The transportation network company says that their service centers will be placed where drivers frequently pick up passengers—mobile service opportunities are also on the horizon. Currently, Lyft service centers are viable to any Lyft driver—there are no restrictions on how many miles are driven or number of passengers picked up. “I don’t know how much it will really impact the industry, it’s very difficult to say,” says Fiffick. With the number of Lyft drivers compared to the number of vehicles on the road, he thinks there really won’t be much of an impact on indy shops. Although, he sees a possible effect on quick lube locations, and those of the like. “This may hurt the lube stops, the fast oil change places, the discount tire places a little bit more,” says Fiffick. “I think, long term, it really won’t affect the establishments all that much [. . .] unless they pull it off and do extremely well with a very talented group of people.” 0 6 .19 / R + W / 2 5
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Fighting the Technician Shortage ICAHN AUTOMOTIVE LAUNCHES NEW PROGRAM TO ENCOURAGE INDUSTRY PARTICIPATION BY ANNA ZECK
THINKSTOCK
In efforts to combat the technician shortage, Icahn Automotive launched the "Race to 2026," an initiative designed to encourage men and women to pursue skilled trades by partnering with technician training schools. President of service and real estate for Icahn Automotive, Brian Kaner, is leading the way, representing the largest number of automotive service networks in North America and well-known brands such as Pep Boys, AAMCO and Precision Tune. Since joining Icahn Automotive as a senior vice president overseeing strategy and corporate development activity, Kaner has been instrumental in more than 1,000 service-related acquisitions and integrations. Recently, Kaner led the launch of Pep Boys Mobile Crew, a state-of-the-art mobile repair unit that provides customers convenient, on-location maintenance and repair services by ASE-certified automotive technicians, as well as several new professional installation agreements for tires purchased from leading online retailers. With more than 10,000 service bays across 2,000 company-owned and franchised locations, Kaner is driving the company’s expansion of its service model through acquisition, new business initiatives and the improvement of existing locations by focusing on people, programs, training and technology. Kaner recently sat down with Ratchet+Wrench to discuss the motives behind "Race to 2026," as well as how the program will assist in filling the hiring gap that affects many in the automotive industry.
Why was now the right time to launch the program? Why did Icahn Automotive feel it was their duty to help address the issue? We know what’s going to happen in the marketplace and what’s been happening in the past two years. The gap continues to grow. There are 75,000 jobs open every year and only a portion are filled. The gap is going to grow to 46,000 unfilled roles by 2026. That represents 5 percent of the
workforce. Plus, there’s a generation of people retiring out. We’re not filling it with new people excited to be part of a skilled trade. A lot of that has been part of the de-emphasis going back as far as high school. We want to create some energy around it and help people better understand the opportunity and the careers available. We’re a large national provider with 2,000 locations, so for us not to play into this would be a miss
on our part. We know people are the key to our success. Without people taking on these roles, it will cause a fair amount of pain in the future. How will this help the image of some of your brands, like Pep Boys? Was part of the idea to broadcast the opportunities afforded by working for a company like Icahn Automotive? I think that makes us a very attractive 0 6 .19 / R + W / 27
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he data from the 2018 Ratchet+Wrench Industry Survey represents a cross-section of shops across the country and provides a glimpse into how the average shop performs, how its leadership manages the shop, and the tech and tools the shop uses. Though over 90 percent of survey respondents report providing tools, equipment and technology for their technicians, almost one quarter (24 percent) of shops have no specific annual budget to keep up with the growing technological demands of the repair market. Exactly one-third (33 percent) of shops report allotting just 1–5 percent of their annual budget to technology. Over 95 percent of shops subscribe to an information repair service, and almost the same amount (85 percent) report having access to reliable OEM information. Ninety percent of shops use telematics services, indicating a positive response to and preparation for the ongoing technological tide sweeping today’s vehicles. One-third of all shops report having over five scan tools (33 percent), while the remaining twothirds (66 percent) keep 1–4 on hand. Less than 1 percent report owning zero scan tools. Most importantly, almost 100 percent of shops with scan tools charge for diagnostic work (over 94 percent), indicating that not only are consumers aware of the growing technological demands of repair, but they’re willing to pay for them, as well. Ensure your shop commits to accessing the right OEM data. With RepairLinkShop.com, you get parts illustrations directly from the OEM, so you can buy the correct parts you need the first time, every time.
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J U M P S TA R T / V I E W P O I N T
opportunity for people choosing this path. We are one of the few players in this space that you can come in at a tech level, work up through the ranks and also pivot your career to management or own a franchise location. Being able to paint the picture for students that it doesn’t have to end at a technical career and can span beyond that is important. How will you work with the students throughout the lifecycle of entering and graduating school? One of the things we’re really stressing is the opportunity to work part time in our shops while you’re in school. With so many locations, we are pretty uniquely positioned and with the store hours we have (open 7 days per week, being open late), that gives lots of flexibility. It also provides on-the-job training and compensation while they’re in school. That’s a bit of how we’re trying to create connectivity with students.
“WE HAVE A ROLE IN THE INDUSTRY TO REPOSITION THE ROLE AS A STEM CAREER.” BRIAN KANER PRESIDENT OF SERVICE AND REAL ESTATE ICAHN AUTOMOTIVE
With a large amount of master techs, partnering them with the master techs who are doing the technical diagnosing and fixing some of those difficult jobs is also key to get some of that exposure early so they can see the complexity of the repairs. It’s not just oil changes. I keep trying to reposition that this is a STEM career. As the vehicles have evolved, the code lines in a vehicle are more complex than the code lines in a Boeing 787. If you step back and think about a software engineer, this is no different. We do have a good opportunity to reposition the role.
When a general service tech comes into a store their first job is the oil change—that stuff that feels mundane. You have to put forth the effort and believe you can take it beyond where you’re at. What do you think is the key to filling this hiring gap? How do we change that mindset regarding trades? I think it goes back to the high schools regarding the mindset. We have a role in the industry to reposition the role as a STEM career. As cars continue to evolve and the technology continues to evolve, you’ll find yourself in a position and you’ll see the technology in the stores isn’t the same technology that existed 50 years ago. Educating the high schools and counselors and students that these vehicles are really heavily tech-driven now and showing them what that means is important. Getting parents to lose the perceptions of the industry and help them reposition it. This is more of an opportunity for people who have great minds and like to work with their hands. You see it with the counselors but you don’t see it with the investments. The vo-tech is continuing to be cut. That’s putting pressure on them. We see counselors being receptive and pushing students, but there needs to be more of it. There are other organizations that are working hard to raise awareness and we’re partnering with them as well. What is the goal of the program? How will you determine the effectiveness of the program? The goal is to continue to promote growth through tech schools. The other goal is that you’re changing the perception. The ultimate objection for Icahn is that we have skilled techs coming out of these schools. We know in an industry where convenience is important, the numbers of techs at a shop is a big driver in speed. Our shops need to be filled with the best trained techs. We’re trying to help fill the pipeline with the early promoting of the program. That will ultimately lead us to a position of being nicely positioned.
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J U M P S TA R T
Openbay Launches AI-Powered Service Advisor Openbay Otis is an automated artificial intelligence (AI) and machine learning application designed to serve as a powerful and knowledgeable virtual automotive service advisor. “We’re trying to modernize the website of a shop without replacing it with an entirely different website,” Rob Infantino, founder and CEO of Openbay told Ratchet+Wrench. Openbay describes Otis as, “supporting the needs of vehicle owners interacting with automotive aftermarket businesses and automotive dealership service departments, by delivering important intent-matching capabilities and information about a business.” “We came up with this product because we feel that there is a need for alignment with automotive service professionals and millennials,” Infantino
said. “Millennials don’t like to speak to anyone, they like to text or message.” Otis understands and responds with human language, he told Ratchet+Wrench, but is “entirely different” from chatbots. “We have the ability to feed information to Otis real-time from many different data sources to generate service quotes, book appointments, and text back and forth,” said Infantino. He explained chatbots as having “static information” and only able to respond to questions it knows the answers to, like the hours or location of the shop, and generally, will eventually need to be handed off to a person because of their limited ability. Otis runs on dynamic information, and has multiple data sources feeding it at every second. “It’s similar to Alexa. Alexa self-learns every day—Otis self-learns every day,” Infantino said to Ratchet+Wrench. At the end of every conversation, Otis
asks the customer if they would like to come in and set up an appointment. “What we're seeing is that appointment bookings for these locations where Otis is deployed has gone up through the roof,” Infantino said. According to a press release, Openbay Otis is available as a subscription service having multiple tiered plans to meet the needs of a variety of businesses from single location, multi-location and enterprise.
Registration Doubles for EVs Registration for electric vehicles has doubled since 2017, TechCrunch reports. According to the publication, 208,000 electric vehicles were registered in the U.S. last year. TechCrunch reports that the growth in EVs are primarily located in Calif., as well as additional nine states that have adopted SPEED READ CONTINUED ON PAGE 31
THE TECHNICIAN SHORTAGE W IL L N OT D E FE AT U S
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the Zero Emission Vehicle (ZEV) program. California was the first to launch the ZEV program—which requires automakers to sell both electric vehicles and trucks— as well as Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Vermont. An IHS Markit report estimates that more than 350,000 new EVs will be sold by 2020 in the US, TechCrunch reports, where it's predicted that the number will increase to 1.1 million by 2025. “A rapid increase in EV nameplates is the catalyst behind the projected growth throughout the next decade,” Devin Lindsay, IHS Markit powertrain analyst, said in a statement to TechCrunch. “While relatively successful models such as the Tesla Model 3 mature in the market, other traditional automakers will be rolling out not just one EV as we have seen in the past, but multiple models off dedicated EV platforms.”
Report: Independents Top Dealerships and Franchises According to the Repair Shop Websites’
2019 Repair Shop Customer Survey, which asked nearly 600 repair shop customers about their most recent shop experience, independent shops beat out dealerships and franchises. Compared to customers of franchises or dealerships, independent shop customers were more likely to rate their experience as excellent across every one of the five measured categories: price, service quality, trustworthiness, speed of service, and convenience. Among the five, the widest gap was in price–81 percent of independent shop customers rated their shop’s pricing as excellent, while only 64 percent of dealership customers felt the same way. “Most independent shops don’t have as much invested in their building as dealerships, which also need to attract customers buying vehicles. All of those glass-walled offices and high ceilings you see in showrooms don’t come cheap, and the service center helps to pay for it,” said Jeremy Spivey, market research analyst for Repair Shop Websites. Among the five categories, convenience
and service quality had the least significant differences. Between 80 and 90 percent of customers at independent shops, dealerships and franchises each rated their shop as excellent in these two categories. “Convenience can be measured in many ways. There are more independent shops than dealerships or franchises, so they’re more likely to be close to a customer’s home or business,” said Spivey. “On the other hand, they’re less likely to have late hours or be open on Sundays, which is an important factor for many customers.” While independent shops fared best in the survey, the results are good news more generally for an industry that has been plagued with customer skepticism in the past. “It’s great to see that most people are happy with their repair shop’s pricing and trustworthiness,” said Spivey. “It’s a sign that service writers are doing a good job helping customers understand the value in both the maintenance services that led the customer to the shop and any additional services they are recommending.”
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J U M P S TA R T
Green Toad Tire & Auto BY NORA JOHNSON PHOTOGRAPHY COURTESY GREEN TOAD TIRE & AUTO
1 / find a name Two years ago, Jeremy Smith remodeled an old rundown 1940’s dealership in Conway, Ark., to open shop as Green Toad Tire & Auto. “We had a lot of plans to make it stand out. I didn’t want it to be your typical shop,” Smith says. “I wanted it to be a place that people talked about.” Years later, people do talk about the unique touches of Green Toad. “Somebody once said it looked like Pinterest threw up in the lobby,” says Smith, with a laugh. Smith also wanted the shop’s name to stand out, with ”Green” signifying the shop’s eco-friendliness and “Toad” being a reference to a local spot in town. The shop stays green by recycling everything possible, as well as repurposing vintage items throughout its lobby as decor and furniture.
2 / get creative When you walk into the front door of Green Toad Tire & Auto, the first thing you will see is the shop’s service advisor sitting at a 1964 Fairlane. “I wanted to take that historical connection—being an old dealership and now auto repair shop—so I thought, ‘How cool would it be if I could get a car from that era inside the lobby, but make it utilitarian?’” After searching, Smith landed on the vintage car and brought it to the shop, cut it up, welded it together and turned it into a front desk. The backend of the car was made into a sofa, and can also be found in the shop’s lobby. 3 4 / R + W / 0 6 .19
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3 / make it loud After careful research, Smith added audio and video to Green Toad. To showcase the additional services, a “green toad” demo car sits out front, that Smith says is, “crazy loud.” Inside the shop sits a 1975 Chevrolet truck bed, up right, with flashing tail lights of different colors. The front of the truck bed is covered in cedar plank boards to simulate the wood bed and has all its audio features displayed: a radio, subwoofers and amplifiers. Sitting atop the bed is a 42-inch TV used for shop and recreational services.
Owner: Jeremy Smith Location: Conway, Ark. Size: 6,000 square feet Staff Size: 5 Average Monthly Car Count: 175 Annual Revenue: $500,000
HAVE AN OUTSTANDING SHOP? Send a few photos and a brief description to submissions@ ratchetandwrench. com and we might feature it here.
4 / WORK IT OUT To create a comfortable and useful space in the shop’s lobby, Smith built a work bar with USB and power plugins, so customers can charge their laptops or phones. Customers can sit at the bar and work by the window while waiting for their cars to be finished. Above the bar is some homemade chandelier lighting, with shades made out of old license plates. And near the workstation, is a coffee bar made of a repurposed 1970s tool cart that Smith’s dad used back in the day. For an extra space for creamer and sugar, Smith placed a 1970s Dodge Challenger Scat Pack tool box atop the old tool cart. “It’s really using what you got available and making it work for you,” he says.
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5 / WELCOME, EVERYONE One wall of the shop features artwork of a big tree and little owls, which can only mean one thing: a kids’ corner. The area also includes a kid-sized sofa, a miniature version of the adult work bar—including tablets, and a bookshelf filled with both toad and car books—to match the shop. To continue the welcoming theme, Smith also made his shop accessible to everyone. “My youngest son is in a wheelchair so I’m very aware of disability needs,” he says. When Smith added the bathroom during the original remodel, he designed it to be large enough and accessible to wheelchair users. He also included a baby changing station for parents, and a place for women to hang their purses. “I wanted people to walk into the lobby and kind of have their guard removed, so they don't feel like they are necessarily in a shop,” Smith says.
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STRAIGHT TALK Joe Marconi
THE BIG PICTURE Focus on the things money cannot buy
MICHAEL HOEWELER
Roughly a month ago , two events
happened on the same day that reminded me that there are things that are so precious, you cannot put a price on them. Those events also reminded me that some of the things we stress over, really aren’t as important as we think. And in the end, it all comes down to the importance of life itself. I got a call that day from Paul, the person who picks up our scrap metal. He asked if he could speak to me in private. Now, being a seasoned business owner, that’s usually not a good sign. But, this had nothing to do with business. I met Paul in my office a few hours later. He appeared very uncomfortable and upset. After exchanging a few words about business and the weather, he told me that his brother died last year. He was one of three other brothers that died within the past five years. He went on to tell me that none of his brothers had any savings or insurance, so it was up to him to take care of all the burial expenses for all the brothers. As Paul spoke, I could see that he was emotionally drained. Then he said to me, “Joe, I really hate to ask you this. I am tapped out. I cannot support all my financial obligations at this time. Would it be possible to lend me the money to purchase the gravestone for my brother? You can make the check out directly to the gravestone company, not to me.” I have known Paul a long time. He’s one of those hard-working, tough-talking guys that you would never imagine asking for a handout. I didn’t hesitate and wrote out the check and handed it to him. He held back the tears as he shook my hand and told me, “Joe, I will never forget this, and I will pay you back.” About an hour later, the owner of a local tow company walked into my office manager’s office to pick up a check we
owed him for last month’s tows. I wasn’t paying much attention until I overheard my office manager say, “Oh, my God, I am sorry, Dave. I didn’t even know you were sick.” Dave is 42 years old, married with kids, and has brain cancer that is not responding to treatment. Dave has a great attitude, but understands the reality of his illness. He’s doing his best while on the treatment, but admitted that, some days, he finds it hard to function. He told us how he started his tow company right out of high school and has worked hard his entire life. As he was leaving, I told him to reach out to us if he needs anything. He told me prayer might help. I told him I would do that. Before the two events that day, I was dealing with a few business problems. And I need to be honest: I was not in the best of moods. After speaking to Paul and Dave, those issues that seemed so daunting before, didn’t seem all that important anymore. I sat back in my chair, looked over at a photo of my grandkids on my desk, and told myself that I need to do a better job at arranging life’s priorities. As shop owners, we get caught up in the day-to-day struggles of running a business—sometimes at a cost to our families, friends and ourselves. We anguish over bad online reviews, disgruntled employees, slow days and declining car counts. We sometimes find it hard to sleep at night, reflecting over and over again in our minds, the problems of the day. And we repeat this cycle over and over, year after year. Let me tell you, no business issue is ever all that serious that it cannot be overcome. But, when life throws you a curveball, as in the case with Paul and Dave, those problems are not so easily overcome.
There are many reasons why each of us go into business. For many of us, it’s the passion for the work we do. For others, it’s the burning desire to improve the automotive industry. While I cannot say that we are in perfect alignment in every area of business, I do know one thing with certainty: We all need to stop and reflect from time to time on all the things that have nothing to do with business, but everything to do with life itself. Those are the things that no amount of money can ever buy. Those are the things that are priceless.
Joe Marconi has more than three decades of experience in the automotive repair industry. He is the 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 0 6 .19 / R + W / 37
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HOW I DID How three of the brightest industry leaders turned their business strategies around—and added to their success By Nora Johnson
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OW D
W HEN BRUCE HOWES, OW NER OF ATL ANTIC MOTORCAR Center in Wiscasset, Maine, initially started his
first business, he ran the shop the way he saw his dad run the family business—like a solar system. “The sun is the owner, Mercury is the employees, and everything orbits around the owner,” explains Howes, “The problem is, if something happens to the owner—if they become ill, or injured or go on vacation—the business ceases operation.” Howes has been in the industry for a while—he’s opened shops in two different states at two different points of his life, and has made each one successful. But throughout his time as an owner, he has shifted and changed along with the changing industry—including how he leads his business. Evolving ownership strategies are vital to success. Howes’ service side of his shop pulls in $1.8 million per year, and he attributes this to the structural change he has put in place. Shifts can be made throughout all facets of shop ownership. Ken Gamble, owner of North Hills Automotive, went through a process of altering how he runs the business side of his shop after he expanded to too many locations too quickly. He now owns two extremely successful shop locations in Greenville S.C. And Nannette Griffin, owner of Griffin Muffler & Brake Center in Fort Madison, Iowa, changed her involvement in the industry to gain a network and access to strategies aiding in the growth of her shop. Whether it be a shift in leadership structures, business knowledge or industry involvement—these three shop owners are now more successful in what they do because of it. Here’s how they did it.
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HOW I DID IT
HOW I DID IT:
LE A D I N G T H E O PE R AT I O N Bruce Howes quickly realized that as his shop grew, his “solar system” management mentality was not tenable. He grew up in family businesses, first watching his grandfather and then his father, use that strategy—with all functions of the business circling them as the owners. And Howes followed in their footsteps, initially, serving as the focal point for his shop in New York. But with a move to Maine, a fresh start, and a rapidly growing business, Howes overhauled his approach with Atlantic Motorcar Center in Wiscasset. “We’ve built our business very laterally. I’m definitely the owner but I have managers for each department and they are all empowered to make decisions,” Howes says. He wanted a different philosophy, and says the operational change was a “lifestyle decision.” “At the end of the day, you really need to design your business so you can work five days per week to have a healthy life balance,” Howes says. “If you can’t do that, you need to change your paradigm—how you operate. You need to get people in there and get people to delegate.”
customers for a follow-up. The map includes the reason why the call should be made, the people responsible for making the call, the supplies needed, an overview of the process and then the exact steps. This allows for Howes—or any of his staff members—to be out and still have someone step in and follow the process maps to complete their tasks. “We even have a process map of how to make a process map,” Howes says. This is because each team member is responsible for his or her own maps. The documents are shared on Google Drive, and accessible to those who need it. The maps are dynamic and not static, explains Howes, so as processes change, the maps can be easily changed and updated along with it.
Make maps that anyone can follow. One of the large operational changes Howes has made in running his businesses over the years, was a strategy that he took from large corporations. His inspiration came from the franchise business model of operations manuals. Howes says the idea of these manuals is to be able to take them anywhere within the regional area and be able to replicate the business, which he says is his goal. “You don't build a business around people—people are your most valuable asset—but you build a business around processes,” Howes says. Atlantic Motorcar Center uses process maps, which he says are similar to SOPs, but follow more of a recipe structure. “An SOP would say, ‘Don't turn off the lights until it’s dark outside,’ but that doesn't give a lot of information,” Howes says. “A process map is like a recipe, and tells you the initial purpose of the map.” Howes gives the example of a process map on how employees should call
“OUR MOST VALUABLE CAPITAL IS HUMAN CAPITAL.”
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Encourage the right team. Having a strong team is critical to Howes’ success, and he says the best way to do that is by properly motivating, training and encouraging employees.
BRUCE HOWES, OWNER, ATLANTIC MOTORCAR CENTER
“I don't think we [as an industry] pay enough attention to valuing our employees, training our employees, and investing in our employees,” he says. “Our most valuable capital is human capital.” If you fix the employees, you fix the customers, Howes says. He makes sure to walk out and say “hello” to every employee each morning to make sure they feel valued. He also has each staff member sign a code of conduct about
ATLANTIC MOTORCAR CENTER Owner: Bruce Howes Location: Wiscasset, Maine Size: 3,000 square feet Bruce Howes
Staff: 9 on service side Average Monthly Car Count: 150-170 Annual Revenue: $1.8 million on service, $4.2 million total
how they will behave to one another, as well as customers. When bringing on a new employee, Howes gets his team involved by having key members join in to help make decisions. On the third step of the Atlantic Motorcar Center interview process, select employees will meet with the potential candidate to speak with them or grab lunch. Howes says he included this in his interview process because it makes his employees feel more invested in the decision, and valued. Candidates also tend to let their guards down more around people they view as peers, and share things they normally wouldn't to Howes or the shop’s general manager. Set a training plan. Employees need to be trained properly in order for a shop to be operational during the leave of an owner. To make the training process as in-depth as possible, and to add to retention, Howes has created a 30-, 60and 90-day training plan. Each of the steps of the training process includes a goal sheet with what the employee needs to accomplish during the set timeframe. For example, Howes includes some simple operational checkboxes for the 30-day goal sheet, like learning the email system, how to use Google Drive, how to do a vehicle inspection, where the forms are in the shop and how to use some of the
HOW I DID IT:
JO I N I N G T H E N E T WO R K diagnostic tools. The employee then sits down with Howes to discuss progress. Anything the individual didn’t complete in the 30-day goal sheet gets rolled onto the 60-day sheet. “By the time they get to 90 days, they should be fully spun up and operational,” Howes says. Howes adjusts the employee’s payment to where they are in their training process. The first 30 days the employee is on an hourly rate. After that and up to 60 days, he or she is on hourly plus performance, and after 90 days, he or she is reliant on straight performance. You want to invest in these people, you want to train them up and you want to help them to succeed, Howes says. “I worked hard because I grew up in a family business, and I saw my father and my grandfather working 24/7, missing ball games and things like that, so I worked hard to try to build a business that didn't run like a solar system,” he says.
FIND INSPIRATION Bruce Howes says he has taken a lot of his business principles, including HR and management, from his favorite publications, books, and authors. Below is a list of some of Howes’ favorites that he says have helped build Atlantic Motorcar Center:
The Daily Drucker by Peter F. Drucker Harvard Business Review Author Stephen Covey Author Dale Carnegie Author W. Edwards Deming
Nannette Griffin has been in the automotive repair business since 1984. She has always had a fascination with how vehicles run and how they break down. After meeting her husband, she took her passion and opened up shop—he did the exhaust and she did the breaks. After a tragic fire burnt down Nannette’s first shop, Griffin Muffler & Brake Center was rebuilt four times larger, and the first employee was hired. But as the shop began to expand, Griffin says she still worked in her own little bubble. That’s when she received an email titled, “How to Fall in Love with Your Business Again.” This email brought Griffin to her first shop owner conference. There, she was introduced to trainings, tools, and technologies that she said she never knew existed. This opened up a whole new world for Griffin and her shop. “I don't operate in my own little bubble anymore,” she says. Get involved in the Industry. That first conference introduced Griffin to the realm of networking, and has helped expand her management and technical knowledge, as well as form community. Griffin has joined the Midwest Auto Care Alliance (MWACA), and encourages other shops to join similar associations near them. She now has a goal of starting her own chapter of the organization in her part of the state so she doesn't have to drive three hours north to attend the meetings. In the process of doing so, Griffin goes to other shops in her area and introduces them to the organization to get them involved in the community as well. This year, she saw two of the shops in her area that signed up at VISION Hi-Tech Training and Expo (MWACA’s annual conference). “Part of my goal is to bring our industry to a higher standard,” Griffin says. The organizations, conferences and networking groups have helped Griffin learn what other shops do: What they use for their vehicle inspections, what kind of warranties they offer, and how they conduct their follow-ups. She then implements those techniques and processes into her own shop. Griffin’s husband once said that
GRIFFIN MUFFLER & BRAKE CENTER Owner: Nannette Griffin Location: Fort Madison, Iowa Size: 4,200 square feet Nannette Griffin
Staff: 5 Average Monthly Car Count: 150 Annual Revenue: $740,000
the conferences allow him to “learn more in three hours, that he did in 30 years.” Utilize a Consultant. Griffin met industry consultant Bill Haas at the first conference she attended. She has since hired him—and now talks to him weekly. “I really can’t say enough about having a coach,” Griffin says. She says that Haas has helped her bring new mindsets and strategies on how she runs her business. As an example, Griffin Muffler & Brake Center used to take everybody that walked through the door as a shop customer. But Griffin has since learned that it’s OK to fire a customer, and Haas helped her learn why—you are then able to give your energy to good customers, she says. The shop has since lost a few customers, Griffin says, but says it was best for the shop that they now don’t serve everyone that comes in. Find connection. Running a repair shop is hard, Griffin says, and there are some days you’re going to hate it. But reaching out and having a network of people to go to for support and help is important to running a business. “You don’t have to do it alone, people have been in your shoes,” Griffin says. “Reach out [to other shop owners], and don't worry about thinking they are competition. The top shops are looking to help.” 0 6 .19 / R + W / 4 3
HOW I DID IT
Knowing Best Throughout the years, Ken Gamble has been able to fill his shops with strong employees—by learning who is right for his business.
HOW I DID IT:
After Ken Gamble left his job at a dealership, he decided to open up his own repair shop in 1986. But there was one problem: Gamble didn’t know anything about business. “When I opened my shop, I had passion for repairing vehicles. I was a pretty good technician and knew how to treat customers, but I had zero business experience,” he says. He jokes that he didn't even know what a financial statement looked like. By 1991, Gamble ended up with four locations—he may not have been business savvy, but, clearly, he knew how to attract customers. In order to help with the financial side of Gamble’s business, he found a partner 4 4 / R + W / 0 6 .19
with an MBA and business experience. At first, the partnership was going well, but once his partner’s children grew up and joined the business, problems began to arise. Gamble was forced to make the decision to “divorce” his business partner and learn how to run North Hills Automotive, in Greenville S.C., partnerless. Learn when to expand. Currently, North Hills Automotive has two locations: one on Butler Road and another on Augusta Street. But, at one point, Gamble owned a total of seven. After Gamble’s son, Jacob, pushed
him to make the difficult but important decision to divorce his business partner, Gamble bought out the business and subsequently took on loads of debt. By 2012, he had high overhead and could hardly make enough money to support the business, so he began systematically closing locations and consolidating. Some of his locations were doing well, and others weren’t. Gamble now says he expanded too early. Soon, he was able to get North Hills Automotive down to two locations, and he then began bringing in decent money, he says. “When it comes to expansion, locating your shop is like buying a house. The
NILL SILVER
B EC O M I N G B U S I N E S S SAV V Y
NORTH HILLS AUTOMOTIVE Owner: Ken Gamble Location: Two locations in Greenville, S.C. Size: Augusta Street: 4,400 square feet Butler Road: 12,000 square feet Staff: 25 (total) Average Monthly Car Count: 1,000 (total) Annual Revenue: $4.1 million (total)
building has to look like you are somebody,” Gamble says. “Like Chick-fil-A, you know what you’re gonna get when you walk in. So, if you can't afford to do it, then don't.” Beyond expanding to physical locations, Gamble stresses to also beware of expanding and diversifying your services. He had also been in the used car business since 1991, but Gamble said it started to take his eyes off the service business and was not making any money. “Do what you do, and do it well,” he says.
This sentiment of letting go of the people holding back his business has bled over into both the employees and customers of his shop. At the beginning of owning his own shop, Gamble says he held on to poor employees for too long. He has since learned that it is best to get rid of the people holding your business back. “Listen to the people around you,” he says. Firing people is no fun, Gamble says, but sometimes it has to be done when the individual isn’t right for the shop.
Let go of the wrong people. Venturing forward without a partner was a tough decision for Gamble, but it ended up being vital to the shop’s growth. Gamble stresses the importance of being careful when choosing a partner. “You’ve got to know if you want to be married to this person forever, because getting out is just like a divorce,” he says.
Increase your business knowledge. Although the business partnership didn’t end up working out, Gamble did become more invested in business strategies over the years. Now, to continue to make the two North Hills Automotive locations successful, Gamble puts large focus on production and pricing.
The North Hills Automotive team pays attention to daily numbers and average ticket goals. They also have 15 KPIs they watch every day, and keep track of on a spreadsheet. When Gamble first started his business, he regularly gave work away for free. He would extend credit to those who couldn't afford the work they needed on their cars. Gamble had to learn the fine line between being a “good guy” and being an enabler. He now stresses the importance of charging what you’re worth. “Don’t be afraid to change your labor rate. Be right there with dealerships,” Gamble says. “You’ve got more to offer customers, and a warranty they can't provide.” Gamble follows his son’s philosophy when it comes to parts: Once you touch it, it’s worth more—and most customers rarely question prices. 0 6 .19 / R + W / 4 5
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INSPIRE GROWTH THROUGH CONSISTENCY How one shop owner worked to establish a culture that his staff appreciates BY KILEY WELLENDORF PHOTOS BY RYAN HUMPHRIES
EVERY SINGLE STAFF MEMBER OF SCHERTZ AUTO SERVICE IN SCHERTZ, TEX AS,
Pushing Progress Mark Roberts creates opportunities throughout his shop to help his employees grow.
volunteered to play a part in a music video filmed at the shop. The idea, owner Mark Roberts says, was inspired by his service advisor, Wayne Whitworth, who wrote an auto repair-themed version of Bon Jovi’s “Wanted Dead or Alive”—a song that was stuck in his head often throughout the day—that Wayne called “I’m a Car Guy.” In the video, staff members belt out the lyrics and can be seen tending to different elements of the business: working on cars, answering phones, and assisting one another. Whitworth laughs when he’s asked about the video. Following a Christmas party where he wrote a shop-themed poem of “A Night Before Christmas,” Roberts asked if he planned on doing the same thing this year. “‘I have a crazier idea I want to run by you,’” Whitworth recalls asking Roberts. “No sooner than I finished the last sentence had he said, ‘Do it.’” Roberts isn’t surprised that his staff members wanted to participate in the video—his team is dedicated to the craft and to each other. “I have never lost a technician to another job,” Roberts says. Prior to the creation of “I’m a Car Guy,” Whitworth penned an op-ed for repair shops on the power of empowerment: “Imagine a dynamic within an automotive repair facility where workers at the front desk have the authority to solve 99 percent of any issues that may arise, the technicians have a ‘whatever-it-takes’ attitude, customer service is absolutely everything, and handson micro-management is unheard of,” Whitworth wrote. “There is such a place located just north of San Antonio named Schertz Auto Service.” The shop is something special, Whitworth notes, as the overall employee attitude is to do whatever to improve the business. “The culture is based on the fact that it really is a team,” Whitworth says. 0 6 .19 / R + W / 47
INSPIRE GROW TH THROUGH CONSISTENCY
Close-Knit Mark Roberts and his two business partners make sure company culture is at the forefront of their shop's values.
Bringing the Shop to Life While Roberts operates as an offsite owner today, he has two on-site business partners who share the same belief as Roberts: Company culture is important. Roberts felt a push to make two staff members—John Long and Dave Bacek— partners in the business as the company grew. In Robert’s career, the opportunity to hold the title “owner,” was something he had previously wanted when he was in their shoes. “I worked very hard and treated the business like it was mine and it wasn’t,” Roberts recalls. “The owner always told me nobody would ever own any part of the business, and if I owned just a small part than I would [have been] happy.” Inspired to offer up the opportunity he never received, he began to craft plans for ownership. In 2015, Roberts created a plan where both could buy into the business and own 20 percent of the company. “We came up with a 10-year plan for them before [they] invested, and the plan is for me to exit at some point,” Roberts says. 4 8 / R + W / 0 6 .19
Long started in 2005 and worked in both the business’ prior body shop and also the mechanical shop. “I kind of always ran the day-to-day side of the mechanical [business] even as a service advisor before I came on as a partowner,” Long says. Long and Bacek officially became part-owners in 2017. “In all reality, it didn’t hardly change my outlook at all,” Long says. “David and I kind of grew up running the business together; we always looked at it as our own even though we weren’t officially owners.” Making both Long and Bacek partners was an easy, smart decision for the business, Roberts says. “They’re definitely talented people,” he says. “They run all day-to-day operations and have full authority to do what they need to do.” Although one reason Roberts got into business was to work in a set shop, he ultimately realized the importance of creating a culture that welcomes opportunity, unity, and is ultimately a comfortable place at which to work.
Giving Staff the Torch At Schertz Auto Service, Roberts’ business puts an emphasis on employees making decisions. While it seems easy, it’s a challenge that the staff has watched employees deal with and come out stronger in the end. “The shop is constantly evolving and willing to listen and act upon suggestions for improvement,” Whitworth says. “We’re flexible but not limp. The reason this works is because we hire the right people, and management monitors, but does not intrude.” According to Long, he initially saw decision-making hesitation from Whitworth, but with coaching, Whitworth has grown into a strong leader and helped build an even stronger team, as a result. “Wayne worked at a few other shops before he came to us, and it took him awhile to buy into how we do things over here, and now he bought in,” Long says. “We just try to empower our employees to do what is right.” It’s a different mindset to be able to make decisions on your own as an employee, Whitworth admits. When dealing with a customer, the freedom allows staff to focus on the customer’s needs and not second-guess their approach because they don’t know how management would react.
SCHERTZ AUTO SERVICE Location: Schertz, Texas Size: 5,800 square feet Staff: 12 Average Monthly Car Count: 600 (130–150 are state inspections) Annual Revenue: $2.1 million
“I can stay focused on what the customer is saying and what it takes to fix it,” Whitworth says. The business pushes for outside effort and trusts employees to do work that the company can be proud of. “We want [employees] to make decisions and it just carries down what it takes to make decisions,” Roberts says. “We have guidelines, rules, and policies, [but] you’re still going to have stuff that doesn’t fit that.” Employees come before the customers, Roberts says. When employees are happy, the work they produce will, in effect, create a happy customer. Diminishing Shop Competition Flat rate isn’t for his shop, Roberts says, and as a result, his employees get along. “Everybody gets along very well because we don’t pay flat rate,” Roberts says. “I believe that’s an outdated system and I don’t think it’s the best for the customer. We don’t have the competitiveness of flagging hours.” Flat rate can pose issues that are out of the technicians’ hands, Roberts says. “It’s hard for people to budget when their pay is going up and down, [and] I just never liked it,” Roberts says. “I like consistency, and I think most people like consistency, especially when it comes to pay.” In Whitworth’s article, he wrote that he believes flat rate’s competitive goal can become an issue for shops. “Many managers/owners believe that competition between workers will increase productivity and therefore increase profits. This is not necessarily true,” Whitworth wrote. “The right people don’t need shortterm games or contests.” Roberts wants his employees to know that they’re taken care of while they’re working for the company. When employed
with the shop, employees receive benefits such as 401(k) and health insurance, as well as uniforms. In addition to benefits, the shop focuses on an hourly payment plan for technicians, which has been successful for the shop’s growth and overall staff comradery. “Everybody works together,” Long says. “[The pay scale] helps breed comradery.” Blending Personal and Professional Lives Employees’ personal lives aren’t paused the moment they walk into the door, and Roberts recognizes that. Roberts is extremely family-oriented, he says, and has never wanted to have a business that takes away from family time. “I do not want to create all of this stuff if that’s taking these guys out of their homes,” Roberts says. “I want them with their families—I’m probably overprotective.” While the shop can be busy at times, Roberts pushes to have employees leave the shop at the same time everyday, and encourages staff members to put family events before work. “Anytime my kids were doing something, I was always so grateful that I had staff in place so I could take off,” he says. “I don’t want anybody that works for me to not have the opportunity to go [and] participate in something that their children are doing because it’s during the day.” Consistency is common practice around the shop. When employees head into work for the day, they know one thing for sure: The shop closes at 5:30 p.m. and they’re not allowed to stay any later. Every Wednesday, Long cooks the staff lunch and when it’s someone’s birthday, the shop celebrates it. “It’s a culture and everybody gets along well,” Roberts says. 0 6 .19 / R + W / 4 9
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More Than Expansion Nick Sallas expanded his business by adding a second location which helped create opportunities for himself and his staff.
58
SARAH BAILEY
CASE STUDY
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T O O L B OX / S H O P A D V I C E
Effectively Address Stress
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Take a moment for yourself and become a better leader It’s important to have a handle on your emotional state when you’re faced with an unexpected or stressful situation. When it comes to mental health, it’s critical to not only take care of yourself, but also ultimately remain grounded when faced with a difficult decision or circumstance. Deborah Snider, nurse practitioner and holistic life and wellness coach, says stress can take physical hold of your body and affect you greatly. “Stress gives us headaches, stomach aches and it makes us tired,” she says. Throughout Snider’s career, she’s spent time working in stressful situations that have often caught her off guard or made her reevaluate her emotions. “I can't tell you how many times on a busy day—when there’s a possible conflict that I'm going to be in front of or an important task—that I will take just a moment to take two deep, slow breaths before I respond and step into my task,” she says. “I take a couple of deep breaths and now I'm centered.” According to Snider, when you take time to focus on yourself, then you’re able to show up refreshed later on. “Anything that nurtures me as a human being is going to increase my happiness and my peace,” she says. “Interestingly enough, with a business, [self-care] increases productivity and efficiency.” Snider shares tips on how to deal with stress, as well as ultimately come back into the moment and leave on a positive note. AS TOLD TO KILEY WELLENDORF
When an issue comes forward, give your full attention. As a business owner,
it’s important to take time to listen to your employees when they need assistance or have an issue that arises. Give your employee your full attention and try to determine what his or her needs are, as well as what is getting in the way. You want to show your employees that they’re valued and that their issues matter to you and the company. When you show empathy, it lets the employee know that you care about them, you recognize that their wellbeing is important, and you’re going to resolve the issue. If you feel out of control in a situation, put the conversation on a temporary hold in order to reflect. When you
experience a stressful situation, it can be difficult to concentrate or formulate an answer to the situation—that’s OK. To bounce back after a stressful situation, take a break and come back to later revisit the conversation. Before you head out, let the individual know that the conversation is important to you and you need to take a few moments before you come up with an answer. If it makes you feel more comfortable. Schedule a time slot for the conversation so it gives you a timeframe to develop an answer. Retreat to a comfortable, quiet place that allows you to think about the situation. I would highly suggest going to
a quiet space or moving outdoors so you can breathe for a moment and also get a good bit of fresh air. If possible, I would encourage
business owners to meditate, as it can be easy to get caught up in the crisis happening at the business. Meditation can decrease anxiety; it makes people happy. Meditation can take a hold of your emotions after you’ve entered a stressful situation and your adrenaline is pumping. When you get to a comfortable place, take a moment to really breathe. When you take those moments to breathe, it can help calm someone and make them feel centered again. As a business owner, work to take care of your employees and the space they operate in. When you think about your
business, it’s important to have a space that is safe, but also allows for a quiet place for employees to retreat to. It can be as simple as reevaluating what is needed for safety and what is needed to create a pleasurable work environment. When your employees can take time for themselves and recollect their thoughts, you might see a better outcome with your business, further eliminating stress on your end. I would really encourage meditation for your employees and yourself. If you don’t have the funds to bring someone in to teach meditation, it can be helpful to have pamphlets that discuss ways to focus on mental health and meditation. Another small thing you can do is focus on bringing healthier foods into your operation. If you’re in charge of filling the vending machine, try to offer healthier options that encourage positive energy and won’t slow employees down. 0 6 .19 / R + W / 5 5
T O O L B OX / H U M A N R E S O U R C E S
Recruiting Younger Generations The top five millennial and Gen Z recruitment tips BY NORA JOHNSON
entering the auto repair industry, millennial recruitment is more important than ever. This issue of successfully attracting younger employees is becoming a challenge for more than just the automotive field—and it comes down to the key generational differences of the needs, desires, and expectations they have for their employment. “We believe that trends are going to be shifting more and more to employers— and entire industries struggling to attract younger talent,” says Ben Varquez, Whistle Work partner. Varquez has been in the business of millennial and Generation Z marketing for a little over a decade now. He and two other partners developed Whistle Work, with the goal of improving the future of work for millennials and Generation Z job candidates, as well as helping organizations and industries with their hiring and retention needs. Varquez and Whistle Work have worked with clients including Google, American Eagle Outfitters and Capital One. Varquez shares his top five tips for shops looking to recruit and hire young candidates. Tip No. 1: Know the generational differences. Understanding the core differences between millennials and Generation Z is vital in knowing how to message to them, Varquez says. Although it may seem easy to lump all 5 6 / R + W / 0 6 .19
young people together, Varquez explains that millennials and Gen Zers have key differences that shape what they look for in their employment—and can ultimately alter potential recruitment strategies. Millennials are well into their adulthood (roughly ages 24 to 36) and knew a life where the internet wasn’t always easily accessible. A majority of them have been sold a vision of their future that didn't quite become a reality, considering they entered the workforce at the peak of the depressed job market. Millennials tend to seek job flexibility and largely participate in the “gig economy.” On the other hand, those in Generation Z are either still in high school, or recently graduated (under the age of 24) and haven’t lived in a time without accessible Internet. They have seen the effects of the recession and typically had entered the workforce during the recovery of the economy, which has largely given them more accurate job expectations. Those in Generation Z tend to seek solid employment pathways and are more career path orientated. There are also quite a few similarities that run between these generations: both expect a lot out of their employers, Varquez explains, in terms of the way that the employer positions and presents themselves—so transparency is key. Shop owners should tell the potential employee exactly what the position entails, what will be expected from them and what the company culture is like. “Authenticity in presenting who you are,
what you do and what your expectations are in terms of a career or employment [is vital],” Varquez says. Tip No. 2: Respect work-life balance. Like all ages, benefits are important to younger generations. On top of the traditional health care, retirement, ect., millennials and Gen Zers largely look for the benefits offered and company mission to match their own personal values, Varquez says. Above all, a lot of younger generations value work-life balance, he explains. This includes work flexibility, and possible remote work. Considering it’s almost impossible to offer technicians the ability to work from home, presenting these younger potential employees a feasible schedule that values and respects their time away from work is crucial. Millennials and Gen Zers, as a whole, really tend to value and prioritize family, Varquez explains. So, including a set time that he or she will have to spend time away from work with family will aid in the recruitment process. Tip No. 3: Integrate technology. The two youngest generations in today’s work force were either born into a time where the Internet was always easily accessible, or only shortly knew a time when that wasn’t the case—but both millennials and Gen Zers look for jobs that are specifically technology centric and innovative.
THINKSTOCK
With a shortage of young people
RECRUIT “Technology-centric doesn't have to mean that you're hiring computer science majors and coders, but it does mean you have to integrate technology into your business functions and business operations,” Varquez says. “Everything needs to be heavy on digital, just because we are talking about two generations that grew up digitally native.” This technological integration extends to onboarding, what systems are used to communicate and how employees are asked to execute and deliver on their work. Shops that use digital inspections, online communication, and other innovative and new technology should present these during the recruitment process. Shops can even perform candidate interviews over video chat to showcase their tech integration, Varquez suggests. Tip No. 4: Expand recruitment platforms. In order to advertise the job position to recruit potential young candidates, Varquez suggests that shops take a wellrounded approach. Of course, digital needs to be a huge component of the recruiting and integrated into every step of the process, he explains. So, posting the job ad on LinkedIn, Indeed, and other online job searching websites is crucial. But the search shouldn’t end there. “There are still very real, valuable opportunities for in-person recruitment,” Varquez says.
High schools and technical colleges are a great place to recruit young potential employees offline. Even if the search doesn’t end in a promising candidate, getting the word out and showing up will still help to grow your pipeline for the future. “It’s never too early to start building your pipeline. Any effort that can be made through local community outreach to expose young people to the industry is valuable,” Varquez says. Tip No. 5: Present your business properly. Whether online or in person, there needs to be consistency in how employers present the business, says Varquez. Young job seekers are far more educated now than ever; this is largely due to the amount of available information there is on the internet. Business information is largely available online to recruits via shop websites and job postings. The potential employee can explore everything from the shop’s mission, values, culture, benefits and team members, Varquez explains. Shops should make sure their information is updated in order to present the business accurately, and should be consistent across all mediums. The key is working to find core characteristics and leveraging those to create an entire story to attract these younger candidates, Varquez says.
TIPS FROM WITHIN Josh Bird’s automotive journey began in the dealership industry—but just last year, Bird opened his own repair shop, Bird Automotive in Oak Grove, Mo., in search of more fulfilment. While service managing at a previous dealership, Bird was faced with filling a majority of the new business with staff, almost all being millennials and those in younger generations. Below are some recruitment tips he picked up during the process: 1 / Highlight community involvement Employees in younger generations look for positions where they are able to make a difference in the world and give back to the community, Bird says. He suggests shop owners get involved in community events and present that to the young employee. 2 / Gauge their willingness Bird says that, generally, younger employees are very open to learning. To gauge this, Bird asks potential employees if they could drive a manual transmission. With that taking out too many applicants, Bird began asking them whether or not they would be willing to learn how to drive a manual. “It’s something small, but it lets you know how willing they are to learn,” says Bird. 3 / Offer a career path Younger employees are not the typical “nine to five” generation, Bird says. They want a path in their career. Offering a set direction for where the potential employee could go within the business is an important factor in the hiring process.
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THE TECHNICIAN
SHORTAGE W IL L N OT D E FE AT U S
autojobcentral.com 5 8 / R + W / 0 6 .19
Columns
INDUSTRY INSIDER Rissy Sutherland
WORK FROM THE HEART One shop owner’s passion for helping others
FUE VANG, GETTY IMAGES
I had the honor of meeting Rick Benton
at a recent NAPA-sponsored baseball game. Within 60 seconds of meeting Mr. Benton, I saw not only a strong business owner, but also someone who has a heart for people, his business and customers. Rick Black is the vice president of Blacks Tire and Auto Service and BTS Tire & Wheel Distributors, a company that grew from one location in 1929, to over 50 locations in three states doing business in North Carolina, South Carolina and Virginia. Mr. Black had a strong service manager, Ricky Benton, at a local gas station he owned. One day, he decided to give him the opportunity to run his tire and auto shop. In 1981, Mr. Black brought Ricky Benton Sr. in to take over running operations. After a decade, Ricky Sr. and his wife, Dianne, and their three sons were able to buy out Mr. Black. The Benton family teamed up and grew this business, along with their long-term managers continuously through the ’90s and 2000s. This is when the business exploded to not only more than 50 locations, but also an expansion into the wholesale side of the business. In 1996, the next generation entered the business. With his team, they not only expanded to 50 locations, but they also created a wholesale business with over 200 wholesaler partner dealer locations. This is one of the most successful
aspects of their business today. They are able to offer small independent shops (especially in rural areas) a model and process to become a successful tire shop in their area and a possible growth opportunity of over 50 percent with a proven team, training and business plan. In 2017, the BTS family built what is called today the BTS Training Academy. They offer their wholesale partners a full training program and facility (sales, parts, margins), a wholesale program for tires—including putting together the proper inventory based on cars in their area—but, most importantly, a true business partner! If you ask Rick or his customers what makes them different, they will say top-notch training, service and, most importantly, a second family. When I asked Rick what makes them different, he said their service and relationship with their partners. They truly care about each of their partner dealers and will do anything possible to help them be successful. You can see this even when you ask Rick about the business. When I asked him about being a family-run business, he told me, “Our family is now huge because it’s not just my brothers and our parents, but the other team members who have put in the work alongside us for years.” Finally, the BTS Team is there to make these automotive shops either successful
Rissy Sutherland has opened more than 400 shops in her career as the executive for nearly a dozen automotive brands and now the president of SRS + Co. She is one of the industry's foremost experts in shop operations. sutherlandrissy@gmail.com ratchetandwrench.com/sutherland
or more successful than where they are at today. Rick has seen that adding tires to their service can result in a 50 percent increase and he’s there to help his partners do just that. All in all, you could say this is an amazing family-run business turned into a very large successful corporation, or that they have one of the most successful support and training programs for their wholesale group. But, really, what makes them different is how they feel and treat their customers and partners. I know that, after meeting Rick, I would be honored to work or know more people and businesses like his in the world. 0 6 .19 / R + W / 5 9
T O O L B OX / C A S E S T U DY
E X PA ND Y OUR OP E R AT ION 6 0 / R + W / 0 6 .19
Room for More An expansion plan was put into place at Sallas Auto Repair in order to give more opportunities to the staff and the business as a whole.
How a second location provided opportunity for one shop’s staff members and business BY KILEY WELLENDORF PHOTOGRAPHY BY SARAH BAILEY
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T O O L B OX / C A S E S T U DY
SALLAS AUTO REPAIR
How do you know when you’re ready to expand? Whether you’re maxed out, or feel your company can grow in more ways with a second location, it’s important to put one thing into perspective when making the decision to morph: how your business will benefit. Nick Sallas, owner of Sallas Auto Repair in Kansas City, Mo., and Overland Park, Kan., has morphed his business frequently since he first opened. It was 1993 when Sallas rented a two-bay shop in Kansas City. “I knew I was going to open up a shop at an early age,” he says. Sallas stayed in the original location for five years and added three technicians. While the shop continued to grow, Sallas sought out ways to further maximize his team of eleven’s experience during their time for the company. “For me, it made more sense to do two different locations,” Sallas says. “I had people that I knew could do more; I had nowhere else for them to go here, so I opened up that second location and allowed them to spread their wings and give more opportunities.” In 2006, Sallas made the decision to open up another location. When nearby land opened up, Sallas jumped at the opportunity to own property and move the business. “The second location gave me the opportunity [to invest in] the future for employees and for my family and I,” Sallas says. “We all put a lot of time in our business and when you go to retire, you have your savings and real estate.”
THE PROBLEM
In the shop’s 12th year in business, during early 2006, Sallas took a step back to look at operations, as well as reflect on what he was hearing from customers about the shop’s location. According to Sallas, at that time, the shop saw roughly 380 cars per month and the business was doing well. However, the shop was unable to provide further opportunities for employees, as well as cover a wide customer reach. “You’re at a job and you can only go so far, so you want to try to figure out ways for them to grow,” Sallas says. Along with giving employees the opportunity to grow within the company and further bring more customers into the shop, Sallas thought about customers who made comments regarding the shop’s location. According to Sallas, customers began to ask about the likelihood of adding a store to Overland Park, a more suburban area of the city. 6 2 / R + W / 0 6 .19
Location: Overland Park, Kan. + Kansas City, Mo. Size: 5,000 square feet Staff: 17 (13 in Kansas City and six in Overland Park) Average Yearly Car Count: 7,000 (total) Annual Revenue: $2.8 million (total)
“The main location had a very good, steady group of customers,” Sallas says. “My first location was not in that great of a neighborhood, but it’s more of the destination where people would drive if they found a good repair shop.”
THE SOLUTION
While keeping his customers in mind during his search for the shop’s second location, Sallas began to research what the Overland Park area in Kansas had to offer. The first thing he did was drive out to Overland Park and look at different areas that could benefit his business. After locating the area, Sallas started looking for a shop that the business could either acquire or purchase. “There was already an existing shop that was [in the location I wanted],” Sallas says. “It was a little two-bay gas station that they had taken the pumps out.” The next step was to check out the demographics for the location, he says, where
he learned what the income was for that specific area. Following the demographics, Sallas spoke with the city to determine the traffic flow in front of the location. “It ended up being about 30,000 cars that drove by per day, and that was with the highway being blocked off, so it really slowed down some of the car count on that street,” Sallas says. Following his research, Sallas decided to speak with the owner who was in the location to discuss the potential takeover. “I did a lease with the option to buy at the end of three years, and I negotiated the price of the purchase of the building when I went in for the lease [meeting] in the very beginning,” Sallas says. In order to ensure that the location would work, Sallas focused on two important elements of making the shop a success: creating the right time and marketing to customers. According to Sallas, he thought about which staff members would thrive at the business as
Uniting the Two Nick Sallas has created a cross-training process between locations, so staff can move freely between stores when needed.
Growth Plan Nick Sallas, owner of Sallas Auto Repair, expanded to a second location, and has since seen great growth in car count and overall business.
well as have a more convenient commute to work. “I had a guy that lived in Overland Park and had been with me the longest at the point,” Sallas says. He was the top candidate to lead the new facility. Sallas knew that a large store would be difficult to manage, so the opportunity to manage a second, smaller store seemed to be the right fit. “We put him in [Overland Park] and it was perfect,” Sallas says. In addition to the store’s new manager, Sallas moved an employee who came to the shop from a community college and had trained in different roles throughout the business. Prior to opening the store, Sallas focused on direct mail to hone in new customers and inform them about the business. In the past, the shop had always done a monthly newsletter to the customer base, which had been successful, Sallas says. “[The direct mail] ended up being a lot of referral business,” Sallas says. “Google and the internet wasn’t as strong [as it is] now.”
THE AFTERMATH
While the shop was successful in the beginning, it saw an improvement with the Overland Park location after the rented area was purchased by Sallas in 2009. At the time, the rented location only had capacity for two bays, restricting the staff size to two employees. “I think the first three years were the hardest because we were functioning out of two bays and [we were] only able to bring two employees on,” Sallas says. “It’s difficult to get anything done out of the two-bay store.” Following the purchase of the location, the shop added an expansion onto the business which increased the shop’s
space, resulting in an increase in car count. According to Sallas, the second location began to show success in its third year of business. By 2009, the Overland Park location had a monthly car count of 140. Today, that number is 215–220 cars per month. The decision to add another business has also brought in more opportunities for the shop, Sallas says. Not only has he implemented a cross-training process so staff members can move between both stores, but there’s now the option to send customers to the other store if the first shop is swamped. “When you have technicians at one location that see different cars than the other, they can call the store [and inquire about questions],” Sallas says. “It’s more like a tech support line.” Ultimately, the business has grown in various ways that were unlikely with just one building. “We were doing a lot out of [the Kansas City] location and by opening up that second location, it purged some of those customers, moved them over there, and brought in more,” Sallas says. “Our count was about 3,400 customers per year, and now we’re servicing about a little over 7,000 people per year.”
THE TAKEAWAY
Adding in a second location is a learning process through and through. Although Sallas felt prepared for the move, he says it’s important to have a plan in place that lays out your procedures. “Not every shop is going to be the same, so it’s even more important to have procedures in place and make sure it’s correct before you make the move,” Sallas says. “You should have procedures to follow and they should get the same service [at both locations].” 0 6 .19 / R + W / 6 3
T O O L B OX / E D U C AT I O N + T R A I N I N G
Address Customer Misconceptions How to educate your customers and leave them with a positive industry image BY KILEY WELLENDORF
Customers often have opinions on what they believe the auto repair business is like, but that doesn’t make
it any easier to hear. And those perceptions can be difficult to change. Hayley Horn, Interstate Batteries’ consumer insights manager, works directly with automotive surveys that reveal consumer data and detailed common misconceptions. Part of Horn’s job is curating surveys for customers based on generic questions or data the company finds relevant. For Horn, she’s seen consumer opinions differ based on what generation they are part of. The baby boomer generation and Generation X view the world differently, she says, which often shows in survey results. “The meaning and the importance of cars is a lot different [for generations],” Horn says. “What we’ve seen in surveys is consumers do trust their service professional more than retailers; retail implies that transactional relationship.” For Erich and Lauralee Schmidt at Schmidt Auto Care in Springboro, Ohio, customer misconceptions range from how a repair is done to the technology used in a repair. “The biggest thing that I see [misconceptions with] is the testing process for warning lights that require a scan tool,” Erich says. “The other thing we get push back on is maintenance work. [We hear], ‘The shop is just trying to get money from us.” For the last 10 years, the shop has been dedicated to customers and providing stellar service. Today, 130 customers have rated their experiences at the shop, averaging 4.98 out of 5 stars with 96 percent saying they would recommend services to a friend, according to the shop’s website. Horn, Erich and Lauralee discuss common customer concerns, as well as how to address those issues and leave the customer happy in the end. 6 4 / R + W / 0 6 .19
C oncern : “You ’re trying to sell me something that I don ’ t need .” When a customer brings his or her vehicle into the shop, it’s likely that the customer does not believe any additional work needs to be taken care of during the visit. It’s important to not only educate your customer about the state of his or her vehicle, but also show evidence of your findings. At Erich’s shop, every customer is given photos and videos that details the state of the customer’s vehicle. The photo and video evidence adds another layer of validation to the shop’s recommended repairs, Lauralee says. “It basically states that there’s no questions about, ‘Do I need that?’” Erich says. “It’s visual, it’s right in front of your face, you know you need it, and there’s not really a question into the shop’s ethics at that point.” The photos and videos also show that technicians are not being unethical to customers, he says. “You’re not getting questionable things from your technicians’ inspection processes,” Erich says. According to Horn, customers are interested in reviewing materials following an inspection. “It is more compelling for consumers if [the shop] has photos and videos [of the inspection],” Horn says. the
The C oncern : “You only tell
me about what ’s
wrong with my vehicle .”
Customers want the full update on how their vehicle is doing, Horn says. According to a survey with Interstate Batteries,
customers are interested in seeing a longer inspection list compared to a shorter list. “Eighty percent of customers are more confident [in the inspection] if there’s a longer list versus a shorter list,” Horn says. To make customers more confident about the inspection, be transparent about what is covered and decide which items are the most beneficial for your customers to learn about, she suggests. “I would say the thing with [a longer list] is prioritizing what you communicate,” Horn says. “Go line by line.” According to Horn, it’s important to also highlight what items are in good working condition with customers. Additionally, update your customer on the progress of a declined service. “[You can say], ‘We delayed this one, but it’s getting to the point where we really should take a look at it,’” she says. “There’s informing and there’s pushing; when it comes down to it, [say], ‘This is a safety issue, so even if it’s not me, somebody has to take care of it.’” The C oncern : “You ’re trying to pressure me into a sale because I don ’ t understand what it means .” Customers are often unaware of certain vehicle parts, as well as how they work inside the car. When talking with a customer, it’s important to provide a clear explanation of the process and answer questions your customer may have. For Erich and Lauralee, the two put front-desk employees through training as well as trained them to focus on etiquette when talking with customers. “We implemented [a script] so there was consistency across the board,” Lauralee says. “There was more than one person now handling the phones, so we needed a consistent message, so that’s why we really sat down and implemented [a script.]” After Lauralee joined the business, her goal was to make the industry accommodating to women and families, and felt a script would help bring customers comfort while doing business with the shop. “When a customer comes to spend money, you want the same thing every time,” Erich says. “It’s no different than going to Starbucks or Lowes or anything you would do on a weekly basis; you’re looking for that consistency and want to know what to expect because people fear the unexpected.” When using a script, it helps to guide
the conversation with the customer, Lauralee says. “A client sometimes can steer you off track when you’re on the phone, so [the script] really hones back the message of what we need to get accomplished out of the phone call to clarify the rest of the repair,” she says. According to Horn, customers want to know why certain repairs need to be done. “We found that having a conversation with the mechanic [makes customers] more likely to fix things if the mechanic explained the results—they need context,” she says. “How they explain it is important.” The C oncern : “The only thing the shop wants from me is money.” Although a customer comes into your business to get work done, it’s beneficial to reiterate your goal for the visit: to put them back on the road safely. When customers know they’re taken care of, the shop visit becomes a more enjoyable experience and ultimately builds trust for the business. At Schmidt Auto Care, the shop puts a focus on creating educational opportunities for both women and millenials. “When I came into this business three years ago with Erich, for me, I really wanted to talk to women in the industry because I don’t know anything about cars outside of what my husband tells me, and we have a very high ratio of women that come in here,” Lauralee says. “I really wanted to talk about education to women and to new drivers—we really hone that to our clients.” In focusing on education, the business offers free classes to new drivers and is working to establish fun, light-hearted car care events for women to take advantage of. “We have a very comfortable room for children and women, “Lauralee says. “We’re really taking the time to think about the different things that maybe a woman or a young driver needs.” “We definitely gear towards that in many, many ways.” Outside of the classes, Erich writes as an expert car care contributor for a magazine and has seen an influx of women coming into the shop, Lauralee says. “We’ve gotten so many females to come back because they say, ‘You actually speak in layman's terms about car care and I understand,’” Lauralee says. “For us, education is very important.” 0 6 .19 / R + W / 6 5
New Ratchet+Wrench Podcasts.
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4 SERIES WITH NEW EPISODES EVERY MONTH.
HOW I DID IT. Series featuring a rotating guest each month. Hear about the challenges, opportunities and success stories from shop owners who found a way to thrive. New episode this month.
GROW.
LEAD.
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Series hosted by industry superstar Rissy Sutherland. Inside the processes, systems and operational strategies that have allowed the industry’s top shops to thrive. New episode this month.
Series hosted by shop operator Aaron Stokes. The go-to resource for leadership lessons, philosophies and success stories. New episode this month.
Series featuring a rotating guest each month. An introspective look at the industry’s most pressing topics from the people who know them best. New episode this month.
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THE BOTTOM LINE Mitch Schneider
PATIENT ADVOCATE How to be there for your customers
MICHAEL HOEWELER
I’m ill. Seriously ill. It’s no secret. I’ve
written about it before. I’ve been tested, had blood drawn and seen a wide array of medical professionals close to 150 times over the past five years. The experience has been nothing less than overwhelming. With the exception of the very first couple of appointments, I’ve not been to the doctor without being accompanied by at least one other human being. In almost every case, I’ve been accompanied by my wife and my/our patient advocate—in this case, a very dear friend who has way too much experience dealing with doctors, hospitals, the Veteran’s Administration, pharmaceutical companies and who knows who else. Her experience comes from keeping her husband—one of my closest friends—alive for more than 20 years. As you may have guessed, I can’t tell you how important I think it is to have someone available to help navigate the dark and choppy waters of contemporary health care in America today. I can tell you for a fact that after I heard my oncologist articulate my diagnosis, I literally heard nothing else! Not one word. I watched his lips move and heard the sounds he was making, but all I could think of and the only thing I could hear was the trombone from the Charlie Brown animated specials that indicated an adult was speaking. Had I not had two other people with me, I would have walked away from that meeting with the name of my disease; the words “terminal,” “incurable” and “untreatable”; and little else. However, with at least four additional ears sitting there with me, I achieved a pretty good understanding of what I was up against. By now, you’re wondering what any of this has to do with you, the repair community or your shop. But, there is an undeniable, irrefutable correlation you just can’t ignore: the need to have someone
present who knows more about what you are trying to accomplish than you do. I saw this at our shop more times than I care to remember. I recognized that blank deer-in-the-headlights stare far too often when a client was confronted with problems and decisions, they were unprepared to deal with. You don’t know what you don’t know, and nowhere is that more obvious than when today’s typical vehicle owner is forced to deal with a mechanical or technological problem for which they have absolutely no understanding whatsoever. And yet, they are forced to navigate a host of difficult and enigmatic choices a veteran mechanic or technician would have difficulty with. If you want to understand the foundation of most client/service provider conflicts I think it would be safe to say they are grounded in a failure to communicate clearly and effectively. They sit atop the pile of unexplained, poorly managed expectations, alongside a boneyard of poorly made, illinformed decisions. In all too many cases, all it might have taken is just a few minutes and a better explanation. In others, a digital image or visual inspection results. Any way you look at it, the majority of conflict could be easily “repaired” with just a little empathy, a modicum of compassion, a clear head and the willingness to work things out. I think that’s why I was so impressed when I first saw the title, client advocate, on a service manager/service advisor’s business card. It was a powerful and positive statement of what this relationship could be: identifying someone inside the shop, working hard to help the client understand his or her choices and navigate their way through to the “right” conclusion. It says everything that needs to be said and provides a powerful psychological reminder that this particular position is all about the client and a powerful, positive and successful experience. It isn’t about sales. It’s
Mitch Schneider is a fourth-generation auto repair professional and the former owner of Schneider’s Auto Repair in Simi Valley, Calif. He is an industry educator, author, seminar facilitator, and blogger at mitchschneidersworld.com. mitch@mitchschneidersworld.com ratchetandwrench.com/schneider
about doing whatever is in the best interest of the client even if that means sending them down the road to another service provider. Quite frankly, I won’t make an appointment without consulting with my patient advocate. I won’t make or go to a doctor’s appointment without ensuring my wife and our patient advocate are available. Certainly, there is too much at risk. Decisions are literally a matter of life and death, which makes understanding even more critical. But, tell me something: How is that any more critical than a single mom working two jobs trying to scrape by when confronted with a blown head gasket, worn front or rear suspension components or a transmission that has failed? Is it any less important for her to understand not only the cost of the repair, but the value of the vehicle as well? Isn’t it just as important to have someone in the shop responsible for guiding the client through and to the right decision, especially if there is no friend or family member to accompany them? What would it be worth to establish the reputation for always acting in the client’s best interest: of always acting as the client’s advocate? My guess is, invaluable. 0 6 .19 / R + W / 67
Encouraging Growth AnnMarie Aristigue spends her time as an owner coaching and training her staff in order to create strong leaders within her team.
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“I WANT TO TEACH PEOPLE THAT THERE ARE STILL GREAT TECHNICIANS OUT THERE.”
Repair Life
A NNM A R IE A R I S T IG UE C O - O W NE R ARIZONA AUTO & R A D I AT O R R E PA IR
P H O T O G R A P H Y BY A N D R E A D . CA S TA Ñ O N
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R E PA I R L I F E / A N N M A R I E A R I S T I G U E
ARIZONA AUTO & RADIATOR REPAIR
Location: Sierra Vista, Ariz.
AnnMarie Aristigue believes that the automotive industry is one into which many should venture. As the co-owner of Arizona Auto & Radiator Repair in Sierra Vista, Ariz., Aristigue tackles the business side of the shop while co-owner and husband, Danny, can be found on the shop floor working side-by-side training technicians. Although the shop first opened its doors in 1997, Aristigue came into the business later. “I pretty much came aboard in 2006,” she says. “I did most of the bookkeeping and, as time went on, and the business started to grow, I saw that he was in need of assistance.” She moved into a service advisor role and then later transferred into a new job that she puts full emphasis on today: coaching and training staff members, as well as overseeing the financials. For Aristigue, the automotive industry is a place of opportunity where employees can grow once they’re set on the right path. “I want to change the perception of the industry,” she says.“The ‘mechanic’ terminology is long gone—we are now transitioning into technicians who now need to become highly skilled and trained. “I want to try to make [customers] understand why they pay for the services and why they pay for the diagnostics. I like to do a lot of educating.” For Aristigue, showing customers the professionalism that auto shops possess means putting a focus on training and education within the business. Today, Aristigue focuses on ways to create local career opportunities as well as create strong, successful leaders from within her staff.
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Size: 10,500 square feet Staff: 11 Average Monthly Car Count: 225 Annual Revenue: $1.4 million
Open Communication AnnMarie Aristigue hosts weekly meetings to check in with her staff and allow them to share feedback with one another.
As I walk through the door, I’m saying “good morning” to every single one of my staff members. I like to see how their positivity
is for the day and make sure everyone is greeted. After I’m finished greeting, I look over the schedule for the day before checking in with my service advisors to see if they see anything challenging lined up. In my job, I’m a coach, so I’m always looking to help out my team when they need guidance. On Wednesday mornings, we have a morning staff meeting for around 15–20 minutes. We use AutoVitals at our business, so we cover how everyone on the team is doing with car count, as well as who is producing what, and what needs to be adjusted and worked on. This has made our jobs as business owners much easier as we’re able to address immediate changes from wherever we are. We have had meetings for three years now and generally try to keep the meetings as positive as possible. The meetings became a process we wanted to implement after we started attending events with automotive organizations; we listened to shops sharing feedback with one another, and we heard that holding a team meeting once per week was beneficial. Outside of our weekly meeting, the technicians will get together with the shop foreman for a brief meeting every day. The meetings really taught us how to restructure our business. I also work on marketing for the business throughout the day, but we’re looking to hire someone so I’m not missing out on time to meet with and coach the team. Throughout the day, I look for coaching opportunities with my staff. I always try to catch staff in the moment so I can walk
them through how to make the process easier and more efficient the next time. When you address a situation head-on, then it’s top of mind and they grasp it quicker. I’ve asked all of my staff members how they would like me to approach a situation, and I’ve found that if you let them know about a mistake later, it’s not as effective. We have a lot of young staff members at our shop—two of whom are right out of automotive school, and we also have my younger son, 19, and oldest, 23, working with us. I have a service advisor who has been with us for two years, and he went through an Elite training course and is doing a phenomenal job. We have a lot of fun and I think having our children in the business with younger kids is a great mixture. Our staff acts like a family; we’re serious when we need to be, but we do have fun in the shop. We’re extremely lucky to have a team that wants to assist in educating our younger staff members. We have an
employee that has been with us since the start of the business in 1997 and he’s actually our oldest employee at the shop today. He works with the younger kids and helps train and educate them. It’s been really beneficial because they look up to him and they’re always willing to learn. Putting two generations together has been such a positive experience for our shop. We focus on training our staff members throughout the year. We
push 40 hours of training for our staff members throughout the year, and, if they hit that, then we offer our employees a bonus. It’s really a motivational thing and we try to make it fun. We’ll let them travel if training is offered elsewhere, and we try to make it a fun experience for our team. Along with our in-house training, we recently were approved by the state for an apprenticeship program. Before it was approved, I expressed my interest to high schools regarding a partnership that would bring students into the shop for hands-on experience. I let them know that I was willing to bring high school students into the shop so they could check out the industry early on. It’s actually really exciting because you get these students that are leaning toward entering the industry and the program gives them the opportunity to decide if its a good career move on their part. For our shop, we hope that they like the opportunity and if they do, there are opportunities to come on board and become a staff member at our business. Although it’s still fairly early, one of the benefits we’ve seen from the approval is being featured in our local newspaper and through the Arizona Department of Economics about being one of the first shops in our county that has an apprenticeship program in the automotive industry. It’s important for us to give back to the community. You start to realize that the more you’re involved with your community, the more your customers appreciate what you do. We do fundraising at our shop where we can give back to certain organizations like the local animal shelter. We actually recently donated to the animal shelter after a battery fundraiser and people absolutely loved that. People really want to do business with people that give back to the community. It’s really rewarding for us, too. 0 6 .19 / R + W / 71
Columns
THE FIXER Aaron Stokes
RELATIONSHIPS AND MISUNDERSTANDINGS Why your employees are quitting—and what you can do to stop it
You’ve known each other for years. He would never leave you. But he walks in, and tells you that he’s done. There’s no way to talk him out of his decision. You can’t believe it. After the fact, you do some digging and find out there were some things you said that offended him, and you didn’t even realize it. One of the biggest reasons you missed it is because there is no open communication in your company. You think there is, but there really isn’t. As you dive in and get further and further into it, you find out that the real problem is the lack of communication— everything is left up to interpretation. A lack of open communication leaves us with what we think a person is thinking, and what they think we’re thinking. We already have misunderstandings when we do communicate, so imagine how large those misunderstandings can become when we don’t communicate. Well, let’s go back to that long-term employee who quit. He left to go make $70,000 at a different shop—even though he makes $80,000 per year at your shop. Here’s where the misunderstanding comes into play: That employee thinks he only makes $50,000 per year. How is that possible? The employee went home, gave his check to his wife, and solely looked at take home pay. He didn't understand gross pay, or his pay plan because 72 / R + W / 0 6 .19
you only explained it to him once at the beginning of the relationship, and never rehashed it out for fear of him asking for a raise. This all resulted in the bitterness growing until it became a huge issue, and soon, he left you. Over and over, I keep seeing employees that think one thing, while their boss thinks another. You can see it coming if you're looking for it, but most people don’t see it. They just want to believe that everything is great and nothing is wrong. But the reality is, there are huge issues that no one is talking about. I encounter this situation all of the time when I go into repair shops. I’ll sit down and start talking to an employee, they dump all this stuff on me, and I go, “Have you said that to your boss?” Then I’ll talk to the owner, who will tell me a bunch of stuff and I’ll say, “Have you said this to your employee?” And it turns out that the employee has said something to the boss, but it was never what the employee intended. Because of this lack of communication, and the lack of wanting to face the music, this stuff just starts to compound and become more and more ridiculous. As it becomes more and more ridiculous, it becomes more and more out of hand. We have misunderstandings running amok in the business. The whole business is run off of nonverbal communication, with handshake deals that never had a handshake, understandings that never had an agreement signed, contracts
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
that one party signed and the other one never knew existed. All this fake agreement is what we base our whole company and culture off of. It’s not real. No one ever talked and nobody ever repeated back what they thought they heard. I have seen more employees leave businesses because of hurt feelings than anything else. One of the No. 1 ways you can start to clear this up, is to just walk out to the employee and talk to them. Ask them what’s going on, and then just stop talking. Let them talk, let them babble, don’t look at your watch—let them repeat themselves until you finally hear something you've never heard before. Then, when they feel like they can trust you and you didn't blow up on them, hopefully the next conversation they'll tell you a little bit more, and then a little bit more. We all have to remember: If we lose employees emotionally, we’re about to lose them physically.
FUE VANG
Your employee walks into your office.
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