MWACA - Winter 2023 by EndeavorBusinessMedia-VehicleRepairGroup

NURTURING GROWTH AT VISION

CREATE A POSITIVE CUSTOMER EXPERIENCE

PREP YOUR SHOP WITH PROFIT FIRST

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The Driving Force for Automotive Service Professionals

MAGAZINE Following a lifechanging diagnosis, Summer and Mark took control of their careers and became business owners

SUPPORTING ROLES HOW SUMMER AND MARK GUERRERO, OWNERS OF AFFINITY AUTOMOTIVE SERVICES INC., SUPPORTED ONE ANOTHER TO MEET THEIR CAREER GOALS PAGE 12 T H E OFFIC IAL P U BL IC AT ION OF

W INT E R 2 0 2 3

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First impressions happen online now. Whfifififififififiufifififigfififififififififififififififififififigfi fibfiufifififiufifibufifififififi?fi ODMfififivfifififififififififiufifibfifififififififigfivfifififiufififififififififififififififififififififififififififififififi fifififififififififififififififififififififififififififififififififififififififififififififififififififififififififififififi     

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CONTENTS

ISSUE 05 NUMBER 04

FROM THE PRESIDENT’S DESK Together We Succeed

MWACA MOMENTS

LEAD FEATURE Your Path to Automotive Excellence

12 17

ACTION PLAN: DRIVING PROFITS THROUGH THE CUSTOMER EXPERIENCE How to Successfully Sell to the Customer

PHOTO BY RIVER CITY VISUALS

MEMBER SPOTLIGHT From Dreams to Reality

ACTION PLAN: EMBRACE PROFIT MANGEMENT IN YOUR SHOP Implementing "Profit First"

Q&A Fighting for Your Right to Repair

MEMBER COLUMN Preparing for Economic Downturn

The driving force for today’s independent service professionals. As a leading association in the industry, MWACA created the Auto Care Alliance (ACA) in January 2022. Joined by other previous affiliates of ASA, the state and regional associations collaborate on new and innovative benefits, resources, and support for shop owners and managers. Visit mwaca.org or autocarealliance.org to find out more and become a member today.

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FROM THE PRESIDENT’S DESK

MWACA: TOGETHER WE SUCCEED PRODUCTION ART DIRECTOR

Emme Osmonson

Auto Care Alliance (MWACA). As a founding member, my passion and focus mirrors our association's. In my first letter, I want to share my

SPECIAL PROJECT EDITORS

journey, struggles, and unwavering commitment to our industry as a

PRODUCTION MANAGER

repair shop owner.

Emily Kline, Leah Marxhausen Mariah Straub

AD SERVICES MANAGER

Jen George

SALES

My first encounter repairing a car consisted of a large oak tree and a come-along to pull the engine out of my husband Mark’s 1971 Chevrolet Nova. Mark's gift of educating others through his passion for

VP AND PUBLISHER

the automotive industry empowered me to be an independent woman

ASSOCIATE PUBLISHER

I found my passion for helping others and advocating for the consumer.

Chris Messer 651.846.9462 cmesser@endeavorb2b.com Andrew Johnson 651.846.9459 ajohnson@endeavorb2b.com MARKETING STRATEGISTS

Chad Hjellming 651.846.9463 chjellming@endeavorb2b.com Dan Thornton 734.676.9135 dthornton@endeavorb2b.com Kyle Shaw 651.846.9490 kshaw@endeavorb2b.com Marianne Dyal 706.344.1388 mdyal@endeavorb2b.com Martha Severson 651.846.9452 mseverson@endeavorb2b.com Sean Thornton 269.449.0257 sthornton@endeavorb2b.com

MWACA LEADERSHIP PRESIDENT

Summer Guerrero 316.425.8684 summer@affinityautomotiveservices.com EXECUTIVE DIRECTOR

Sheri Hamilton 816.413.9800 sheri@mwaca.org OTHER EXECUTIVE COMMITTEE:

Travis Troy – Vice President Kim Auernheimer – Secretary James Copeland – Treasurer Jerry Holcom – Past President

MWACA MAGAZINE ADVISORY BOARD

Summer Guerrero Jerry Holcom Scott Pelava Devin Kelley

MWACA SUPPORT STAFF

COURTESY SUMMER GUERRERO

I AM HONORED to address you as the first female president of the Midwest

Heather Sebben Anna Tiemann Brady Netzel Val Cadabunda Jody Adams

in doing my repairs and helping others. Performing my repairs is where Mark and I opened our shop, Affinity Automotive, in Wichita, Kansas, in 2008 and quickly learned we did not know how to grow a business and would need industry-specific help if we were going to succeed. With the help of MWACA, we learned how to grow our business through industry-specific coaches, training to keep up with the technology of vehicles, peer groups, industry networking events, mentorships, and friendships with other shop owners nationwide. MWACA also helped by allowing us to combine our membership power to get better pricing and tremendous opportunities. It’s exciting to know that the knowledge Mark and I have gained through the years can help grow the next generation as we pass on our own experiences and prevent others from making the same mistakes. If you have an area in the automotive industry that interests you more than others, please consider volunteering at the local or executive levels of MWACA. Over the years, through my involvement with MWACA and the local chapters, I have discovered my calling beyond the repair shop. I have become a motivational speaker, a business mentor, and an advocate for the future of the automotive industry. My mission is to be a great leader within our company and empower other shop owners to break through their own barriers and thrive in this ever-evolving industry. I am excited about the opportunities ahead as we look to the future. Our industry will continue to evolve, and we must grow with it. Let us use this opportunity to adapt to change and support one another on this journey. Together, we will survive and thrive in the independent

MWACA HEADQUARTERS

automotive repair industry.

816.413.9800

importance of unity within our organization. We are stronger and can

5950 N Oak Trafficway, Suite 201 Gladstone, MO 64118

mwacamagazine.com and visionkc.com mwaca.org

SUMMER GUERRERO PRESIDENT

Today, as I take the role of president, I want to emphasize the overcome the challenges that lie ahead. We must remain neutral to the obstacles and differences that may try to divide us and instead focus on what unites us. 5

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3,500+ ATTENDEES

◉ 43+ STATES ◉ 60,000+ sq FT exhibit hall ◉ 100+ COURSES ◉ 140+ exhibitors

Feb 29 - MAr 3, 2024

Kansas City

www.visionkc.com Management and Technical training including live car and hands-on tradeshow and networking

THURSDAY ALL-DAY PACKAGE

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4-DAY POWER PASS

All Management and/or Technical Courses offered Sat. & Sun Refreshment Breaks Saturday General Session Breakfast & Lunch Sunday Breakfast Expo Registration.

4 days of Management and/or Technical Courses, Refreshment Breaks, Thursday General Session & Breakfast, Thursday Lunch, Friday Continental Breakfast & Lunch, Saturday General Session & Breakfast, Saturday Lunch, Sunday Continental Breakfast. Also includes Expo Registration.

BONUS...Add Awards Dinner/Comedy Night for only $50

regular

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$250

$430

regular

$450

early bird

$750

regular

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hosted by

The industry’s premier automotive service event MWACA_1223.indd 6

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ISSUE 01

MOMENTS SHOPCARE: YOUR KEY TO A HAPPIER, HEALTHIER WORKFORCE FOR ONLY $30/YEAR

ity, enhance engagement, and address critical safety and security issues. Moreover, integrating ShopCare into your benefits program can significantly reduce costs related to employee turnover, absenteeism, workers' comp claims, healthcare, accidents, and grievances. This program is not just an investment in your employees' well-being;

IN TODAY'S FAST-PACED SHOPS, the well-being of employees is para-

it's an investment in the sustainability and success of your business.

mount. Auto Care Alliance proudly offers ShopCare, an Employee

For only $30 per year per employee, ShopCare offers an unparalleled

Assistance Program (EAP) specifically tailored for shop owners,

opportunity to enrich your benefits program. It's time to make a

service advisors, technicians, and their families. Available to ACA

positive change in your workplace and show your employees that their

Shop Members and Allied Members, ShopCare is more than just a

health and happiness are your top priorities. Visit autocarealliance.

program; it's a commitment to enhancing the life quality of your team.

org/shopcare for more info and drive your business towards a brighter,

Why ShopCare? The answer is simple. This innovative EAP offers

healthier future.

solutions for mental and whole health, ensuring that your team and their household family members have access to crucial support services. These services include 24/7/365 live immediate assistance, telephonic mental health support, counseling options (in-person, telephonic, video, or chat), and a vast network of over 20,000 approved counselors nationwide. But ShopCare goes beyond traditional EAPs. It includes a member portal and mobile app, virtual program orientation, training, worklife resources, legal and financial referrals, life coaching, a personal

MWACA SPRINGFIELD CHAPTER AT TENDEES AT TEND AN ELECTRICAL DIAGNOSTICS CLASS BY DUSTIN ATWOOD.

assistant, and medical advocacy. These comprehensive features are designed to improve your shop's culture, boost employee productiv-

M WA C A U P D AT E S & N E W S

UPCOMING EVENTS

NEW MEMBERS SINCE FALL 2023

Mark your calendar for these upcoming events. To register or find out more information about these and other MWACA events, visit mwaca.org/events

Only $275/year. For more information about joining, please visit mwaca.org/join.

WICHITA CHAPTER

CEDAR RAPIDS CHAPTER

EVENT NAME

ANTERO AUTOMOTIVE Andy Emery Greenwood Village, CO

GLENWOOD AUTO SERVICE Kurt Blight Saskatoon, SK

Practical Labscope Application Testing with Jim Wilson

PicoScope: Tests and Techniques with Matt Fanslow

MC FLEETS LLC Missy Cottle Columbia, MO

PRO TRUCK & TRAILER REPAIR LLC. Sam Wallace Burleson, TX

DATE

WASHINGTON AUTO CENTER Jim Zieglowsky Washington, IA

GEARHEADS AUTO & DIESEL REPAIR Amy Ybarra Jackson, MO

AZTEK ENTERPRISES LLC Roberto Ibarra Fremont, CA

THE MOTOR WORKS OF DEKALB INC Meghan Huber DeKalb, IL

PLATINUM AUTOMOTIVE LLC Matt Reid Lansing, KS

JAR PERFORMANCE AUTOMOTIVE Jeffery Reitz McPherson, KS

January 9, 2024 5:30-9pm

EVENT NAME

Take Your Business to the Next Level with Shop Coaching – Virtual DATE

February 10, 2024 9am-3pm

January 9, 2024 6:30-8:30pm

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F E AT U R E

YOUR PATH TO

AUTOMOTIVE EXCELLENCE

2 024 V IS ION HI-TECH TR AININ G AND E X PO BY

E M I LY

K L I N E

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FOR THE 32ND CONSECUTIVE YEAR, the Midwest Auto Care Alliance (MWACA) will host its VISION Hi-Tech Training and Expo in Kansas City. VISION is a must-attend event for automotive

general service technicians to re-learn/learn the basics of auto repair. The General Service Technician Academy will cover the following topics:

industry professionals because it aims to help them gain knowledge about the technical and service sides of the industry, build a

• OSHA and Shop Safety

network of experts, and teach the importance of professionalism.

• Tire Safety

MWACA can effectively assist automotive industry professionals

• Tire Pressure Monitor Basics

in achieving these goals, leveraging its extensive experience built

• Lift Safety

over 32 years of VISION.

• Basic Air Conditioning

THE EVOLUTION OF VISION In 1992, VISION started as VISION 2000 — a local training event

• Fluid Identification and Proper Use • Basic Electricity • Digital Vehicle Inspections

for automotive professionals in the Kansas City area. Only three classes were offered over two days. No one foresaw its success or

All the classes, including the General Service Technician

the demand it would generate among automotive service profes-

Academy, will kick off on the first day of the event after the

sionals for additional training.

opening general session. This will be the first time in 25 years that

When Sheri Hamilton started as MWACA’s executive director in 1998, VISION 2000 had grown from a small, local event to a

VISION will have its general session on Thursday — in the past, the session didn’t occur until Saturday.

national four-day event with over 350 attendees. Since VISION

“Attendees will want to be part of this year's opening event

2000 surpassed the year 2000, the MWACA board changed its

because we have a phenomenal keynote speaker who is coming in,

title to VISION Hi-Tech Training and Expo. In 2023, VISION had

and this will finally be an actual kick-off to the event,” Hamilton said.

over 3,500 attendees and more than 100 courses on technical

“The excitement and energy we plan to build at the opening session

training, management, and service advisor training.

will keep everyone motivated throughout the rest of the event.”

TRAINING OPPORTUNITIES For the 2024 VISION, MWACA plans to host training sessions for technicians, shop owners, and service advisors throughout the event. For each of the sessions, MWACA will offer entry-level, B-level, and advanced training courses for all shop employees. “We want to ensure that there are growth opportunities for our attendees and that people can experience VISION for many years and always come away with new knowledge, which is why there are different course levels,” Hamilton said. There will be a variety of topics covered in the classes, including how shop owners can successfully manage succession planning, scheduling and workflow, and marketing and communication needs. Many of the technical sessions will address hot topics such as Asian/European vehicles, electric vehicles, and ADAS, helping attendees to stay well-informed about present and future changes in the industry.

GENERAL SERVICE TECHNICIAN ACADEMY In addition to the topics mentioned above, VISION plans to offer the General Service Technician Academy for the second year. This two-day program enables shops to send their less experienced

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F E AT U R E

SECURE YOUR SPOT To ensure your spot at the opening session and in your preferred classes, visit visionkc.com and click on the registration tab. It is important to register as soon as possible as classes are filling quickly after experiencing a record-breaking opening to registration with over 700 registering in the first 32 hours of opening. “As far as registration options go, we have what’s called a four-day power pass, and that's where you will get the best value,” Hamilton said. “The four-day power pass allows you to register for classes each of the four days for a set price. If you can’t attend all four days, then you can also choose a specific day or weekend package.” If you opt for individual sessions, instead of purchasing one of the packages, you won’t be able to register for classes until February when individual class registration opens. “We don’t open à la carte registration until a month before VISION because we want to ensure there is space available for people coming in for the entire event,” Hamilton said. “We want to make sure that prime classes have availability and they're not taken up by people who come and attend a single class.”

MAXIMIZE YOUR EXPERIENCE If you are new to VISION, registering early will enable you to get the most out of your experience. Coming well-rested and with an open mind will help you feel more prepared and ensure growth in your professional life, so you can become a better employee or employer within the automotive industry. An additional way you can prepare for VISION is by joining the Facebook VISION alumni group. “Even though you're not alumni, you will soon be,” Hamilton said. “It's an opportunity to connect with other attendees, ask questions, and establish relationships so when you come on-site, you’ll be able to put faces with names.” Instead of immediately returning to your hotel room after class, make sure you’re available for the training and networking that

motive service professionals as the professionals that they are,”

happens in the hallways, bars, and restaurants after sessions

Hamilton said. “So, when they come to VISION, every experience

and into the evenings. When talking to others remember that

from their registration, every connection that they make through-

networking with peers is just as important as networking with

out the event with our team — with any part of the program

superiors. Sometimes peers can help teach you things that your

— they're treated as professionals. We hope that they go back

superiors can’t.

to their shops and feel respected and appreciate being treated

TRANSFORMING PROFESSIONAL STANDARDS

that way.” VISION didn’t always have such high expectations for profes-

MWACA understands the importance of dressing the part and treat-

sional wear. It wasn’t until MWACA held its Best Dressed Contest

ing others as professionals — and the impact this has on careers.

at the event that attendees started to hold themselves and others

“Our philosophy for VISION has always been to treat auto-

in a higher regard. Those who participated in the contest were

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asked to dress professionally as a business, which meant that

Dressed Contest helped to blend the two concepts that we

company employees all had to be wearing similar — if not match-

value: Treating our attendees like professionals and helping

ing — professional attire. By hosting this contest, VISION encour-

support the shops in becoming the professionals they are when

aged automotive industry attendees to master their business

they return home.”

aptitude at the Expo and to take it home to their shops. MWACA

Encouraging professionalism is one of the many ways MWACA

eventually had to stop holding the Best Dressed Contest because

helps attendees build their reputations and develop new skills at

many shops came well-dressed, which made it difficult to find a

VISION. By providing an educational space for networking and

group that stood out.

learning, VISION is a must for any automotive professional who is

“The progress in professionalism from the year we started

looking to grow their career in the industry.

the contest to when we ended it 10 years later was outstand-

To learn more about VISION Hi-Tech Training and Expo and

ing. We upped the dress code game and level of professional-

get more information on the different courses offered, visit

ism within the entire event,” Hamilton said. “Starting the Best

visionkc.com. 11

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FROM DREAMS TO REALITY:

A Family's Inspiring Journey to Business Ownership HOW A TRAGIC LIFE EVENT ACTED AS A CATALYST FOR CHANGE FOR THE GUERRERO FAMILY BY

L E A H

P H O T O S

M A R X H AU S E N BY

R I V E R

C I T Y

V I S UA L S

A N D

J E N N I F E R

RU G G L E S

P H O T O G R A P H Y

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SUMMER AND MARK GUERRERO HAVE DREAMT OF OWNING A BUSINESS since they started dating

in high school. As they grew older and started

a family, their priorities shifted, and their

goal of business ownership was placed on the back burner.

Summer was working as a firefighter —

something she had always hoped to accom-

plish — while Mark had used his skills as a technician to work at a dealership. Despite

his discontentment at work, they were doing

what they needed to do to support their family.

LIFE CHANGES

The Guerreros' life turned upside down when

Summer was diagnosed with stage 4 breast

cancer. After recovering from an aggressive chemotherapy treatment plan, Summer gained a new perspective.

“Mark supported me in my dream to be

a firefighter,” said Summer. “Following my treatments, I realized the path that I was

taking was not our true path. It wasn't our dream. Once I was well enough to think straight again, I realized that Mark had supported me to live my dream and follow

a career path I was passionate about, and I wasn’t helping him live his dream. That became our main goal. You realize that life is short, and you have to go and get it.”

STARTING THE FAMILY BUSINESS

This realization prompted Summer to take the first step towards business ownership.

“One day, I surprised Mark at his work,”

said Summer. “Mark was at the dealership and frustrated with how things were going, and I said, ‘You know, I think it's time we

found a building.’ There was a building we

always looked at as we passed by every day. It was a two-bay shop, and we knew that'd be a great startup. I put the money down one

day, grabbed the keys, and headed to the dealership. I told Mark to pick up his toolbox

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M E M B E R

S POT LI GH T

and handed him the keys and said, ‘This is your new job.’”

Although this was a huge step forward,

Summer and Mark had a long road ahead. They would have to build their shop from

the floor up before they could fully open for business.

“When we first opened, there was nothing

in this shop,” said Mark. “We had to cash out our 401(k) to purchase everything to get up and running. I felt like we needed to start

without any loans right out of the gate. I knew

if something happened and the shop didn't do very well, I could go back to working and still maintain what we had taken on finan-

cially. We spent the first two months getting the shop set up.”

The first few months were slow. Being

first-time business owners, Summer and

Mark didn’t know how to manage the workload and build a customer base.

“We didn't know anything about adver-

tising,” said Mark. “We didn't know anything

about getting the word out. It took probably three months or so before it was consistent. I learned pretty quickly that we can't do it

with just one person. Answering the phone

and getting cars checked in and worked on was impossible. We still didn't hire anybody because we didn’t have the funds. Had I

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known then what I know now, I would have hired somebody — that would have helped bring the funds in much faster.”

Mark worked long and hard to keep the

shop in business, while Summer worked as a firefighter to support them.

“I worked from anywhere from four in the

morning until midnight, seven days a week, just to keep work moving along,” said Mark, “I

was reaching burnout pretty quickly because it was a lot of work.”

CALLING FOR HELP

With little energy left and an uncertainty of what to do next, they knew they needed help. “Within six months, we had exhausted our

knowledge,” said Summer. “We didn’t know the next steps. We didn't know how to get

employees, the right time to get employees,

or how you know that you can afford to add staff. We had so many questions.”

One day, Summer and Mark received an

advertisement for a consulting agency.

“We are firm believers that things happen

for a reason,” said Summer. “We got a mailer for an industry-specific consulting company.

We thought it was too good to be true. It was so amazing that I threw it away.”

After thinking about it, they decided

this was what they needed. They pulled the pamphlet out of the trash and called their new business coach.

“If you feel like you have plateaued and

don't know what to do next or where to get answers, you know it's time for someone industry-specific to guide you,” said Summer. It wasn’t always easy to take their coach’s

advice. The first few meetings were filled with disagreements. Mark felt he knew what was best for the business and didn’t trust an

outsider to guide his decisions. The coach

provided useful insight to help guide their staffing decisions, a problem they had been experiencing for far too long. After this

advice proved helpful, they built a healthy

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M EM BER

SPOTLIGHT

relationship with their coach and started to see real change in their business.

“If they're not being blunt, then they're not

the right coach for you,” said Summer. “Since

our first coach, we had some coaches that were not holding us accountable to the degree we needed, so we didn’t progress.”

By 2011, Summer and Mark moved to a

six-bay location, and two years later, Summer came to work at the shop full-time.

CONTINUING TO GROW

Summer and Mark hope to continue to grow

their business and add additional locations in the area.

The Guerreros credit MWACA and its

support for all independent shop owners

in the Midwest for continued success. The training and peer support available to inde-

pendent shop owners are valuable tools that can help change the industry.

Summer and Mark have been involved

with MWACA since 2000, and Summer is thrilled to continue to support the industry through her role as MWACA president.

“I love this industry, and I love the busi-

ness owners — they're so smart,” said Summer. “It's crazy to see all the different visions and ideas they can come up with.”

With an insider perspective of the indus-

try, Summer understands the impact organizations like MWACA have on its members.

“We do not always get the recognition

we deserve,” said Summer. “MWACA does

a good job of showing us how to keep going and to be better and to be the leaders of this industry and make changes for the better.”

Whatever your motivation is for becoming

a shop owner and growing your business, don’t be afraid to reach out and ask for help.

Through the assistance of industry experts and peers, the Guerreros harnessed a life-al-

tering event as motivation to live their dream and succeed as a family business.

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Rattankun Thongbun / iStock / Getty Images

ACTION PLAN: DRIVING PROFITS THROUGH THE CUSTOMER EXPERIENCE

DRIVING PROFITS THROUGH THE CUSTOMER EXPERIENCE CLIENT-CENTRIC STRATEGIES FOR AUTO REPAIR SHOPS BY JARON KLEBER

can achieve the results wanted. Unfortunately, there is no one-sizefits-all book on SOPs. Shop owners have the final say and need to be the agents of change. However, it is critical that shop owners also get team members involved and create processes that fit specifically to their organization. Once processes are in place, shop owners should be comfortable knowing that their clients will be getting consistent and valuable experiences every time they visit the shop. Selling an Experience

IN AN AUTOMOTIVE SHOP, no single employee can have more of an effect

As I travel across the country visiting shops, the first thing I think

on your sales and profits than your service advisor. Yet too many

of when I pull into the parking lot is, “Why would a client choose to

times we place people in jobs with little or no training and expect

do business at this repair shop?” It may sound harsh, but we know

them to deliver superior results. At its core, the service advisor job is

clients have many options, so why are they choosing you? Within the

straightforward. Every day, service advisors are expected to separate

first 30 seconds of walking into the shop, I can normally tell how my

clients from their money. This task is more difficult than it seems

experience is going to be. Was I greeted promptly and positively? Is

because many clients have emotional ties. To effectively and effi-

the lobby clean and inviting? Is the facility utilizing modern technology

ciently perform this task, advisors need to better understand what’s

to enhance the experience (digital menu boards, free Wi-Fi, etc.)?

important to their clients and recognize their needs.

Now, here is my challenge to you. As a shop owner, try taking

The first thing I ask shop owners is: "What is it that you are really

my approach the next time you pull into your shop and analyze the

selling?" In my opinion, you aren’t selling repairs or services, you’re

experience your clients receive when they walk through the door.

selling an experience. Does your current client experience live up

That initial client experience can make or break your shop. To ensure

to the hype? Is that experience met every single time? With over

a positive client experience, it is important your service advisors

280,000 shops across the country, client experience is one of the

follow these steps:

most important factors in determining success.

1. Acknowledge the client within the first 30 seconds. 2. Listen intently to their concerns (they are already anxious, and not

Standardizing Operations

paying attention to them only makes it worse).

Service advisors are typically the first line of communication between

3. Explain your process in detail and gather their preferred method

the client and the shop. First impressions are critical, especially for

of contact (Don’t let the client train you; you train the client).

new clients, and it’s important that shop owners deliver a consistent and memorable experience every single time. To do this, they need to

The 300% Rule

make sure their business has a standard set of systems, operations,

If these three basic steps are followed every single time, your shop will

and procedures (SOPs). When creating and implementing SOPs, shop

be able to drive higher profits through the service counter.

owners must make sure they are consistent and repeatable, so the shop

After shops have mastered the initial client experience, it is important 17

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ACTION PLAN: DRIVING PROFITS THROUGH THE CUSTOMER EXPERIENCE

to not lose focus and continue to provide superior service during the

and thank clients for their business. At the end of the day, the client is

rest of a client’s visit. One of the most important processes that needs

expecting that, when they take their vehicle to an automotive shop, it

to be implemented is a robust digital vehicle inspection (DVI) program.

will be fixed right the first time, and at a fair price. If your shop is just

Your DVI process needs to follow the 300% rule:

like the shop down the street, and not adding value to the experience,

1. 100% of the vehicles are inspected using your DVI.

shop owners take the risk of blending in and being just another auto-

2. 100% of the services found are estimated and priced out using your

motive shop. Shop owners should constantly be asking themselves: What does my shop do to stand out from the crowd and does my shop

Shop Management System (SMS)

deliver an experience that customers want to repeat?

3. 100% of the services are presented to the client in this order: a. What the car came in for b. Any safety needs

Jaron

c. Any preventative maintenance that needs to be performed

manager for Repair Shop Of

Kleber,

national

sales

The purpose of the 300% rule is to build value and provide a

Tomorrow and fitness trainer for

maintenance program for a client’s vehicle. Work on transforming

the aftermarket, is an industry

the shop from a reactive “fix what’s broken” facility to a proactive

veteran with over 13 years of

maintenance style facility.

experience. Jaron has helped

Just like the initial experience, the experience that the client

hundreds of shops implement best

receives when they are picking up their car needs to be exceptional. It’s

practices to improve employee

important that shops are organized, have flawless execution, review

retention, workflow management,

the work that was done, identify any exit schedule opportunities,

efficiency, and productivity.

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Thapana Onphalai / iStock / Getty Images

ACTION PLAN: EMBRACE PROFIT MANGEMENT IN YOUR SHOP

EMBRACE PROFIT FIRST MANAGEMENT IN YOUR SHOP HOW TO SUCCESSFULLY IMPLEMENT PROFIT FIRST TO PREP YOUR SHOP FOR FINANCIAL SUCCESS

compensating the business owner(s) for their efforts and work. It allows for a fair and consistent salary for the owners, ensuring they are adequately rewarded for their time and expertise. 5. Operating Expenses Account: This account, also known as an OpEx account, puts aside funds for daily operating costs such as rent, utilities, inventory, payroll, and marketing. Getting started To ease into the Profit First system, it is essential to gradually build a

BY ERIC JOERN, PARTNER, K AIZEN CPA S + ADVISORS

rhythm. Start by conducting an instant assessment to evaluate your

YOU MAY HAVE HEARD OF THE “PROFIT FIRST” METHOD, WHICH HELPS BUSI-

the target allocation percentages for each account. Once you have

NESS OWNERS MANAGE THEIR PROFIT MARGIN TO ULTIMATELY BECOME MORE

determined your target allocation percentages for each account, you

PROFITABLE . Implementing Profit First in your shop may initially seem

can act.

daunting, but it can be done systematically. By breaking down the

The first task we assign a shop owner is to open a profit account and

specifics of the different types of Profit First accounts and following

commit to transferring 1% of your deposits on the 10th and 25th

a step-by-step implementation process, you can prepare your shop

of each month. This small percentage is manageable and lets you

for financial success.

become comfortable with the process. Aim to maintain this transfer

1. Income Account: This account is where all the revenue gener-

for three to six months until it becomes a consistent habit. By the

ated by your shop is deposited. It acts as a central hub for incom-

end of the trial, you will have accumulated a small amount of profit,

ing funds from sales, services, or any other sources of income.

showcasing the system's effectiveness.

current financial situation. This assessment will help you determine

2. Profit Account: The Profit Account is where a portion of your

Once you have successfully established the habit of transferring

income is allocated to accumulate profits. This account priori-

funds to your profit account, you can open the remaining accounts.

tizes profit and ensures you set money aside for your business's

This step ensures you have a dedicated place for every dollar entering

long-term sustainability and growth. The profit allocated to

your shop. Each account holds a specific purpose, which will help

this account is not meant for immediate spending but serves as

grow your business financials healthily.

a reward for the business owner's hard work and a buffer for future investments.

The next step in implementing Profit First is to reroute all your deposits to the income account. Initially, this may require manual

3. Tax Account: This account allocates funds to cover your tax obli-

transfers to your operating expenses (OpEx) account until you estab-

gations. By separating tax liabilities from operating expenses,

lish a smooth flow of funds through the income account. By consol-

you will ensure that you have sufficient funds to meet tax

idating your income in one place, you gain clarity on your shop's

requirements.

financial inflows and outflows.

4. Owner's Compensation Account: This account is dedicated to

With the accounts set up and your deposits streamlined, it's 19

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time to execute the transfer process based on the target allocation

In conclusion, while implementing Profit First may seem over-

percentages determined earlier. In the beginning, it is recommended

whelming, breaking it down into manageable steps can make the

to have a call or consultation session to ensure a clear understanding

process much smoother. You can successfully implement Profit First in

of the calculations and processes involved. This guidance can help

your shop by starting with a gradual approach, establishing a rhythm,

you navigate the initial transfers successfully.

and following the target allocation percentages. Embrace this financial management system and enjoy its benefits to your business.

Starting small yields big profits By following this gradual process, you can implement Profit First in

Eric Joern is a licensed certified public

your shop effectively. The key is to start small, establish a rhythm,

accountant (CPA) and key business

and gradually expand your implementation efforts. It is important to

advisor. Small business is in his

stay consistent to ensure long-term success. Stick to your designated

blood. Eric comes from generations

transfer schedule and monitor your accounts regularly to ensure you

of entrepreneurs and has spent his

stay on track.

professional career getting his hands

Implementing Profit First in your shop offers numerous benefits.

dirty working with concrete, increasing

It helps you prioritize profit, ensures you set aside funds for taxes,

profits and efficiency managing an

provides fair compensation for owners, and allows for proper alloca-

automotive service department, and is

tion of operating expenses. With a clear financial structure, you gain

currently a key resource for many small

better control over your shop's finances, improving profitability and

business owners. He puts his family

financial stability.

first and views his clients as family.

STRATEGIES FOR YOUR SUCCESS NEVER MISS AN ISSUE. Subscribe to

Renew/Update

COURTESY KATHLEEN CALLAHAN AND ROSS COLKET

Ratchet+Wrench Magazine.

RatchetandWrench.com/Subscribe or contact customer service at 847-559-7598.

If you are interested in the NAPA Auto Care program, contact your local NAPA sales representative.

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8/8/23 3:01 PM 11/21/23 11:12 AM

Q&A

FIGHTING FOR THE RIGHT TO REPAIR Understanding how the REPAIR Act could impact your shop As the Right to Equitable and Professional

MWACA: How would the Right to

we were unable to locate the required infor-

Auto Industry Repair (REPAIR) Act contin-

Repair legislation impact the automo-

mation in aftermarket information systems.

ues to gain momentum in Congress, shop

tive repair industry

As a result, we were forced to purchase a

owners are working hard to make a case

subscription to the manufacturer's website to

for easy access to important diagnostic

Callahan: I believe that if the REPAIR Act is

find the information we required to diagnose

information. The bipartisan bill will ensure

passed into legislation, we will be guaranteed

the vehicle properly. We are fortunate that we

that consumers have a choice in how and

equal access to data as the dealerships, and

are a larger shop and can afford to do this. We

where they get their vehicle repaired and

we will be able to remain competitive and

have been lucky that, so far, the subscriptions

prevent manufacturers from blocking access

continue to serve our clients in a professional

have been inexpensive, and we simply passed

to aftermarket parts and crucial diagnostic

manner. If it isn't codified, we are relying on

the cost onto the final receipt. Some of the

information. MWACA sat down with shop

the manufacturer to continuously provide the

subscriptions can be quite expensive, and

owners Kathleen Callahan and Ross Colket

data they feel is important to us, which, as

it would not be practical to pass the larger

to hear their perspectives on the impact the

we currently see, is not always the same as

subscription prices to the customer.

REPAIR Act could have on the industry.

dealerships have available. MWACA: Would the legislation lead to Colket: It will level the playing field for the

more competitive pricing in the industry?

independents, franchises, and dealerships regarding knowledge level. As an indepen-

Callahan: I don't think legislation would

dent shop, I feel we have to be more skilled

lead to more competitive pricing. I believe it

than dealer-level technicians in working on

would continue the ability to keep pricing fair

all car lines instead of just working on one

between dealerships and independent shops.

car line. Having access to manufacturer-level

As technology advances, we are relying more

Ross Colket is the owner of Colket

information will absolutely help us to accel-

on programming and calibration. If legislation

Automotive Technical Services in

erate the repair process, thereby reducing

is not passed, dealerships would have the

Lansdale, Pennsylvania, and is the

repair times.

ability to charge any fee they wish for these services. The aftermarket keeps those prices

2022 Auto Value & Bumper to Bumper Technician of the Year.

MWACA: What challenges have you

fair to the consumer.

personally experienced that led you to support the Right to Repair Act?

Colket: Yes, I do think it would lead to more

COURTESY KATHLEEN CALLAHAN AND ROSS COLKET

competitive pricing. Everyone would have Callahan: My shop has made the decision

the same amount of information at that point.

to no longer service European vehicles due

Something that we have to keep in mind is

to the difficulty of obtaining accurate repair

that people may forget that the Right to

and diagnostic information. We recently paid

Repair will NOT include free access to repro-

Kathleen Callahan is shop owner of

an additional fee to AutoOps so we could

gramming. There will still be a cost involved

Xpertech Auto Repair in Engelwood,

access basic DTC data for a Jeep. Although it

in that. It is not fair to the manufacturer to

Florida, and highly involved in her local

was only $50, it is still an additional barrier to

expect this. They will have to increase their

community, the incoming vice chair of

entry that could significantly impact smaller

hardware to support the bandwidth of tech-

Women in Auto Care (WiAC), and in

shops, and the fees could keep small busi-

nicians accessing their information.

September 2023, testified as an expert

nesses from servicing their communities as

witness in front of U.S. House Committee

they currently do.

906: The REPAIR Act.

Check-in with your state’s legislation around the REPAIR Act as we continue to fight for the

on Energy & Commerce supporting HR Colket: There have been several times when

right to repair. 21

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T H E F I N A L WO R D

PREPARING FOR ECONOMIC DOWNTURN

A shop owner’s perspective on automotive industry resilience BY

T R AV I S

T R OY

the phrases "economic downturn" and

your team members' personal financial well-being. Think of your-

"industry challenges" are becoming increasingly prominent. It's

selves as a family working together, and when you look back on

crucial not to overlook these factors. While we've enjoyed a series

this article five years from now, you'll say, "That downturn was

of prosperous years in the automotive industry, the road ahead will

manageable; we hardly felt any adverse effects.”

AS WE APPROACH 2024,

not be as smooth, and we must prepare for more demanding times. Some of you might be thinking, "I haven't faced any challenges; everything is going well." That's fantastic, and I commend your success. However, it's important to recognize that not everyone shares the same situation. The key takeaway here is that if you can navigate the next few years without experiencing a significant downturn, you'll have positioned yourself for success. Recently, I addressed our team

P M B FA M 50 ES

about our future outlook. My intention wasn't to scare them but, rather, to assure them that, as their CEO, I'm proactively looking ahead to ensure we are prepared. I conveyed our commitment to taking every precautionary measure to maintain our financial responsibility and stability as a company. I also challenged our team members to apply the same principles in their personal lives. If your personal economy is stronger than the economic conditions around you, you won't "feel" the impact of an economic downturn as bad. Conversely, if your financial situation is weaker, you'll undoubtedly

W P W F

experience the ripple effects in your life. Now is the time to tighten your financial belt, make wise choices, trim unnecessary expenses, and lead a financially responsible life. During prosperous times, it's easy to overlook our shortcomings. However, in challenging economic times, you must strive for 100%, revisiting the fundamentals and giving your best effort in every aspect of your business or role. It's tempting to brush things off when times are busy and money is flowing, but your true character shines through when faced with adversity and slowdowns. How you present yourself and how your team members behave becomes evident. It's essential to keep everyone in sync and rowing in the

Travis Troy is an automotive industry professional with over 12

same direction to navigate any downturn successfully. Align your

years of experience as a co-owner of two Honest Wrenches

teams, ensure the financial stability of your business, and support

Automotive Repair LLC shops in Des Moines, Iowa.

MWACA_1223.indd 22

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