Ratchet+Wrench - April 2019 by EndeavorBusinessMedia-VehicleRepairGroup

04.19

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

COMPETE WITH YOUR LOCAL DEALER—AND WIN

PAGE 38

3 HR MISTAKES DRIVING AWAY EMPLOYEES

PAGE 54

MARCONI:

STOP BEING A PRODUCTFOCUSED BUSINESS PAGE 35

BECOME BELOVED

HOW TO BE THE MOST DESIRABLE EMPLOYER—AND SHOP—IN TOWN PAGE 44

Think Outside the Box After achieving his dream of opening his own shop, Matthew Roayaee knew he wanted to try a different strategy when it came to customer and employee loyalty.

FINDING THE RIGHT FILTERS JUST GOT A LOT EASIER.

2 / R + W / 0 4 .19

TS608

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A PERFECT FIT. A PERFECT PRICE.

EVERYTIME/

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04.19 VO L . 07 N O. 0 4

A P R I L

Customer Insight Matt Lachowitzer, owner of the three location Matt’s Service Centers, uses a loyalty card program to gain a better understanding of his customers.

F E AT U R E

P R O F I L E

C A S E

With an increase in competition, independent shops need to do everything possible to stand out. One way to do this is to look at the competition, such as dealerships, for inspiration.

When Matthew Roayaee decided to open his own shop, he knew he wanted his building, staff and customers to reflect his unique vision.

As vehicle maintenance becomes increasingly important, finding new strategies to retain customers is key.

BY NOR A JOHNSON

BY KILE Y WELLENDORF

A LEG UP

CARRY OUT YOUR VISION

S T U DY

ENSURE LOYALTY

R E PA I R

L I F E

LESSONS FROM A MENTOR

When faced with a situation he didn’t see coming, Robert Ohlmann found the guidance needed through a coach.

LEAH QUINTO

BY KILE Y WELLENDORF

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: MATTHEW ROAYAEE PHOTOGRAPHED BY MATTHEW ROOD

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TA B L E O F C O N T E N T S

J U M P

10 ONLINE

Handle negative reviews

14 NUMBERS

S TA R T

22 BREAKDOWN 32

The ROI on technical training

16 AWARDS INSIGHT

Make the most out of technology investments

18 EDITOR'S LETTER

Overcome stereotypes

The shutdown of Google+

25 VIEWPOINT

Student debt’s effect on vehicle ownership

28 SPEED READ

Auto Care Association survey released

32 SHOP VIEW

West Point Auto Works

35 STRAIGHT TALK

Deal with pricechecking customers JOE MARCONI

2 0 1 9 R A T C H E T + W R E N C H A L L- S T A R

R E C O G N I Z E Y O U R T E A M ’ S A L L- S T A R S B Y N O M I N AT I N G T H E M F O R T H E 2 0 1 9 R A T C H E T + W R E N C H A L L- S T A R A W A R D S . N O M I N AT I O N D E A D L I N E I S J U N E 1 5 . GINA STAMMERS A MASTER MECHANIC 2018 ADMIN SUPPORT WINNER

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T O O L B OX

65 THE BOTTOM LINE

53 SHOP ADVICE

The issue with the lack of unity

The power of 20 Groups

54 CUSTOMER SERVICE

MITCH SCHNEIDER

Hire the perfect CSR

66 THE FIXER

57 INDUSTRY INSIDER

Juggling the front and back of the shop

Q&A with an industry up-and-comer

A ARON STOKES

RISSY SUTHERL AND

58 HUMAN RESOURCES

Keep employees from leaving your business

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EDITORIAL VICE PRESIDENT, CONTENT AND EVENTS Bryce Evans EDITORIAL DIRECTOR Anna Zeck ASSOCIATE EDITOR Nora Johnson STAFF WRITER Kiley Wellendorf SPECIAL PROJECTS EDITOR Jordan Wiklund EDITORIAL INTERN Alayna Baggenstoss CONTRIBUTING WRITERS Joe Marconi, Mitch Schneider, Aaron Stokes, Rissy Sutherland 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 ASSOCIATE PUBLISHER Alysia Nelson 651.846.9463 / anelson@10missions.com SALES MANAGER Nathan Smock 651.846.9452 / nsmock@10missions.com REGIONAL ADVERTISING SALES Jon Schave 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 SALES SERVICE REPRESENTATIVE AND BOOKKEEPER Meghann Moore EVENT COORDINATOR Katie Cornet DIGITAL MEDIA STRATEGIST Josh Jaskulka 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.

RADIO

New Ratchet+Wrench Podcasts. 3 SERIES WITH NEW EPISODES EVERY 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.

GROW SERIES SPONSORED 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 hosted by a rotating special guest each month. An introspective look at the industry’s most pressing topics from the people who know them best. New episode this month.

LISTEN AND SUBSCRIBE S E A R C H “ R AT C H E T + W R E N C H ” I N A P P S FOR APPLE AND ANDROID

AUTOMOTIVE GROUP

PODCASTS

STITCHER

POCKET CASTS 0 4 .19 / R + W / 9

SEE THE DIFFERENCE IN OUR PARTS.

ONLINE04.19 COM M EN T S , DISCUSS IONS , FEED BAC K A N D MORE FROM A ROUN D T H E W EB

FEATURED COMMENT:

LOVE, SERVE AND CARE

—

In response to Aaron Stokes’ February column “Complacency and Selfishness” (ratchetandwrench. com/aaron), Joe Sevart shared his thoughts in a comment on ratchetandwrench.com about retiring from the industry: “I have been in the industry since 1976, back when your parents told you what to do and you did it or else. I would consider myself and the shop successful mainly in the last 10 years after hiring a business coach. Our shop is just staring its third generation and I am retiring and passing the business on to my nephew who will take it to the next level. My last day will be September 30, 2019. What I have learned over the years is it time to invest in others by volunteering my time. “What I do know is, money doesn't make most people happy, and when you have your retirement setup you should go on to enjoy life because you never know when your time’s up. It's very easy to give money to charities and donate cars, sponsors little league teams but to give your time is the ultimate gift. My value is to LOVE, SERVE & CARE others by giving my time. That’s what I am going to do with the rest of my life. [...]”

WEEK LY DISCUSSION

Carquest® Platinum Professional Brake Pads Maximize stopping power. Eliminate noise.

RESPONDING TO NEGATIVE REVIEWS

—

In an effort to spark discussion and create a space of community support, Ratchet+Wrench asked readers on the Facebook page to share what they do when their shop receives a negative online review. Commenters shared how they react to the situation, as well as how they respond to the reviewer.

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RADIO

THE NEXT APPOINTMENT

—

Every Wednesday, the Ratchet+Wrench Facebook page hosts a poll, sponsored by BOLT ON TECHNOLOGY to survey its readers. In late February, roughly 50 people weighed in on whether or not they set up their customer's next appointment as she or he picks up their vehicle.

RE ADERS ' RESPONSES:

YES

Look out for the next Poll of the Week to add your input.

JOIN US ONLINE

OLD-SCHOOL MEDIA FOR NEW-SCHOOL CUSTOMERS

—

Jeff Matt is the owner of Victory Auto Service & Glass, a six-shop operation in Minnesota (five) and Florida (one). Matt shares his experience working at a shop where customer service was nonexistent, and how he leveraged that experience into a successful multi-shop business (and the old-school media he uses to keep it going). Listen on your favorite podcast streaming app, or at ratchetandwrench.com/podcast.

WEBSITE: ratchetandwrench.com FACEBOOK: ratchetandwrench.com/facebook TWITTER: twitter.com/ratchetnwrench LINKEDIN: ratchetandwrench.com/linkedin INSTAGRAM: instagram.com/ratchetandwrench

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Access to over 300,000 Genuine Mercedes-Benz Parts. A dedicated wholesale team. Customer-centric delivery options. Technical resources and repair assistance. Find a certified PartsPro dealership at mbwholesaleparts.com/partspro. 12 / R + W / 0 4 .19

itâ&#x20AC;&#x2122;s a partnership.

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NUMBERS THE

TOPICS,

TRENDS,

AND

THE ROI ON TECHNICAL TRAINING —

METRICS

DRIVING

YOUR

OPER ATION

HOW OFTEN DO OTHER MEMBERS OF YOUR TEAM ATTEND INDUSTRY-SPECIFIC TECHNICAL TRAINING?

Choosing to invest in technical training for your employees is an important decision. Is the cost worth the outcome? And if so, what training should be invested in? In the 2018 Ratchet+Wrench Industry Survey, readers were asked whether or not members of their team attend industry-specific technical training and what type(s) of training they attend. Leaving the question: Is attending technical training correlated to higher sales and technician efficiency?

Q U A R T E R LY A N N U A L LY WITHIN THE L AST 5 YEARS M O N T H LY O R M O R E NEVER UNKNOWN

All numbers below correlate to the following: NEVER

Q U A R T E R LY

Y E ARLY SALES VOLUME

30%

$250,000–$499,999

21%

10%

$500,000–$744,444

21%

16%

$750,000–$999,999

15%

$1 million–$2.4 million

14%

47%

More than $2.5 million

Didn’t know

WHAT IS YOUR AVER AGE TECHNICIAN EFFICIENCY PERCENTAGE?

Less than 80%

26%

21%

80–99%

14%

36%

100–119%

20%

120–139%

140%

Don’t track

51%

17%

WHAT T YPE OF TECHNICAL TRAINING DO YOU AND/OR YOUR TEAM ATTEND ON AN ANNUAL BASIS?

50%

68%

54%

P A R T/ E Q U I P M E N T M A N U FAC T U R E R

P A R T/ E Q U I P M E N T SUPPLIER

INDUSTRY A S S O C I AT I O N

33%

36%

39%

ASE

OEM - SPECIFIC

OTHER VENDOR

Beyond the Stats Looking for a budgeting and selection guide for sending your employees to technical training? Check out our past article, "Finding Success through Employee Training,” at ratchetandwrench.com/training for tips.”

14 / R + W / 0 4 .19

THINKSTOCK

Under $250,000

HELPING LOCAL SHOPS STAY LOCAL

Discover how with TECHNET • Nationwide Warranty

• Training

• Exclusive Promotions

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technetprofessional.com/membership FOLLOW US @TECHNETpros

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NOW ACCEPTING NOMINATIONS! Know someone deserving of a Ratchet+Wrench All-Star Award? Nominate them today at ratchetandwrench.com/awards

AWA R D S I N S I G H T

Investing in Technology and Customers BY NORA JOHNSON

WHY TO INVEST One of the largest reasons Allen chooses to constantly invest in the newest auto repair technology is because of his rural shop location. “Obviously, I can't rely on [just] my town supporting me, so we have to go outside of the community,” he explains. Allen says that, “hands down” the updated technology and tools help to bring in individuals from outside of Hampton. Customers from surrounding communities bring their vehicles to Allen because his shop has all the equipment needed to fix their cars in a timely fashion. “We try to purchase everything to make our job easier,” he says. Beyond the timeliness factor, the updated technology allows for Allen’s shop to have stronger communication between his team and their customers. Allen says they have begun using electronic check sheets, which help improve how they communicate. “We used to use our cellphones constantly for sending pictures, but then the customer would want to reply to the cellphone,” he explains. 16 / R + W / 0 4 .19

CHOOSING INVESTMENTS Investing in technology can be costly—especially if done constantly. In order to know which new programs and tools to purchase, Allen stresses the importance of research. “I read every trade magazine,” he says, “that’s when you see the new stuff coming in.” Allen also looks to his Snap-on tool dealer for information and recommendations. “The key thing is to try to have the right stuff before you need it,” says Allen. “Because when that job comes in and you're like, ‘Oh my god, I don’t have this [tool I need],’ you'll be scrambling to borrow it.” Allen says that, luckily, his shop has a great rapport with the local dealerships in his community, so they tend to be open minded about lending a tool, but they usually invest in everything they could possibly need. Schools are also a great resource for information on new technology for Rick Allen Auto Repair. “A lot of times at schools, they will come up and say, ‘Hey, this is something that you're going to have to invest

ALL-STAR NOMINEE

RICK ALLEN —

OWNER RICK ALLEN AUTO REPAIR HAMPTON, N.J.

in, not should invest in, but have to,’” says Allen. KEEPING UP-TO-DATE Technology is ever-changing, and a lifelong investment, says Allen. “The main thing is, you have to invest in (technology), and you have to invest in it constantly,” he explains. “If you fall behind in technology, or tools, or equipment—it’s so difficult to keep up.” Allen has shop owners turn to him on advice for keeping their shop up to date with the newest and most useful technology and tools. “I tell them all, ‘You have to read trade magazines see what’s going on, and [you have to] get your guys into training so they can see what’s going on,’” he explains. Rick Allen Auto Repair continues to bring in surrounding communities’ business because of its ever-updated technology and tools. “The main thing with the results is the turnaround time of the vehicles—getting them in and out as quick as possible, and the technology and the tooling allows you to do that,” Allen says.

FUE VANG

Rick Allen Auto Repair sits between a church, a cemetery and a farm in a community of only 1.5 square miles. With a direct market of only 1,400 residents and 900 households, how does Rick Allen Auto Repair continue to be so successful? The answer: owner Rick Allen, and his determination to keep his shop up to date with the latest technology and tools. Allen has owned his shop for 34 years and has always strived to fill his Hampton, N.J., facility with the newest and up-to-date technology. Just a few of the newest integrations include the use of Identifix, Mitchell 1, ALLDATA, diagnostic scan tools, electronic check-in sheets and a plethora of high-tech tooling.

NOTHING SHAMELESS

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January 2018 0| 4 .19 fenderbender.com 7 / R + W / 17

EDITOR'S LETTER

Consistency, Truth and Reputation HOW WE OVERCOME THE STEREOTYPES THAT TOO OFTEN DRAG US DOWN

nalism and auto care—have far more in common than most would think; primarily, we both tend to start from a position of disadvantage in far too many “new customer” interactions. There are certain perceptions (or, as I prefer to think of them, misconceptions) of our work habits and intentions that create an automatic level of mistrust or skepticism. Stereotypes are often the issue. Journalists and auto care professionals alike deal with this to a large degree. And like we’ve written about in past issues of Ratchet+Wrench, most often, those stereotypes come from a lack of knowledge, understanding and appreciation for the process, skill and care that go into your work. The average customer doesn’t understand the nuances of his or her vehicle and what it takes to fix it; this causes any estimate to be met with apprehension and concern. To some degree, it makes sense, and you break down that barrier through education, transparency and, ultimately, performing quality work that provides true value to your client. We (at Ratchet+Wrench) like to take that same approach. Most people are leery of the “media” and the intentions of those who work in it. Granted, many placed in that category deserve their negative reputations, just as there are shops that have rightfully earned their own negative reputations. Still, there are many of us who work hard to do things the right way—and we have to work even harder to avoid direct association with those who don’t. (Sidenote: There’s also a clear distinction between “media” and true “journalism,” but I’ll save that rant for another time.) Now, I bring all this up for a couple reasons. One, I recently received a stark reminder to all of this in the form of some negative feedback (and sharp criticism) from a reader. All’s fair, and I welcome critique whenever we’re lucky enough to receive it. At the very least, someone reaching out with a complaint (whether founded or not) gives me the opportunity to respond in a similar 18 / R + W / 0 4 .19

fashion as you might with your customers—with education, transparency and quality work. We take our reputation as a publication very seriously, and it’s why we operate in the way we do. It’s why we have a team of journalists produce our content (rather than accept submissions). It’s why we have an editorial advisory board to hold us accountable to our work. It’s why we have a strict separation of “church and state” in our company between sales and editorial. We want to earn your trust as an objective, third-party source for information to improve your businesses. The only way we achieve our goal is to help you hit yours. Hopefully, nearly seven years into our magazine’s life, we’ve earned that trust with you. But hearing criticism offered another reminder to me (and is the second reason I brought all of this up): Sharing our “why” shouldn’t be reactionary. It needs to be carried out every day in all our interactions, whether with a customer at your service counter or one of our interview subjects on the phone. We need to make our intentions clear, and we need to ensure that those negative stereotypes are quickly thrown out. When we take control of it and live it out each day, we alter the perception. That disadvantage I mentioned earlier now becomes an advantage, because we’re not focused on all the negativity that inevitably gets thrown at our industries. We focus only on what let’s us rise above that.

BRYCE E VA NS, VICE PRESIDENT, CONTENT A ND E VENT S BE VA NS@10MISSIONS.COM

LEAH QUINTO

I’ve mentioned it before in this space, but our professions—jour-

0 4 .19 / R + W / 19

THE TECHNICIAN

SHORTAGE W IL L N OT D E FE AT U S

autojobcentral.com 2 0 / R + W / 0 4 .19

J U M P S TA R T NEWS

SHOP VIE W

IDEAS

PEOPLE

TRENDS

BREAKDOWN VIEWPOINT SPEED READ

SAVANNAH BUTLER

SHOP VIEW

Become an Expert At West Point Auto Works, investing in new technology has increased credibility.

0 4 .19 / R + W / 21

J U M P S TA R T

Google Makes SEO Changes ALTHOUGH GOOGLE+ WILL BE ELIMINATED, A NEW PROGRAM IS SAID TO MIMIC THE SAME SEO FUNCTIONS BY KILEY WELLENDORF

Change is frequent in today’s digital

era. Recently, Google announced that its social media platform Google+ will shut down at the beginning of April. According to Google, the platform disbanded due to “low usage and challenges involved in maintaining a successful product that meets consumers’ expectations.” The company reported that Google+ accounts, along with Google+ pages, created will be shut down along with the deletion of its content. However, those who are looking to save content from Google+ are able to download the data via Google’s “Download your Google+ data” page. The app has already begun to dissolve as users were no longer able to create Google+ profiles, pages, communities, or events as of February 4, according to Google. In addition, content on Google+ pages, including comments, will also be deleted starting April 2. And while Google+ as a community or social media platform may not have been widely used, for many businesses—including shops—it was an extremely valuable way to boost SEO and Google search rankings. Jennifer Filzen, owner and operator of Rock Star Marketing in Monterey, 2 2 / R + W / 0 4 .19

Calif., has worked with auto repair clients who previously utilized Google+ in their business. “As a marketer, I loved it and I promoted the crap out of it,” Filzen says. “Anything that’s a Google product is great for SEO [and] a great resource.” Filzen isn’t surprised by Google’s change of heart in signing off on Google+ for social media. “Ultimately Google+ was always a far distant second place to Facebook because Facebook started off as social and that’s where it’s strengths lie,” Filzen says. “Google has always been the search engine.” For shops who are preparing for the loss of Google+, Filzen discusses the importance of bringing the auto

repair business online as well as what to expect from Google’s latest venture: Google My Business. Struggle to Stand Out As social media continues to change, Filzen says there’s a race to be at the top for social media users. For Google, challenges arose when it came with competing with Facebook, Filzen describes. “Companies are jumping in to become ‘the thing,’” Filzen says. “We’ve seen that Google is ‘the thing’ now after many other companies failing before them, and Facebook is like standing on the shoulders of other forums and chats.” The two companies, however, have grown since their initial start, Filzen describes.

“I would look at those two as they were born, and we’re watching them going from little babies to toddlers,” Filzen says. “Now I would say that Facebook in particular since its had such a challenging year, it’s kind of like a gangly, pimply-face teenager, and Google also would be like the bigger brother; they’re definitely growing up and maturing.” Through their growth in social media, comes challenges to find a particular niche, in this case, Google’s struggle with becoming more of a social place for users. “In the race to dominate the market, Google has always kind of had the leg up because it’s a search engine, but Facebook is like the social aspect so

Google’s like, ‘Well, we can be social too,’ so they introduced Google+ way back in the day. “They’ve really changed the game and then sometimes I see Facebook trying to catch up.” A New Platform for Users Following the departure of Google+ comes the next social media venture for users: Google My Business. More recently, Filzen was invited out to Google’s San Francisco campus where the company discussed the new program. “I think of Google My Business as a one-stop-shop; they’ve taken a lot of the features and they’re trying to put it in one place. It definitely has the

maps, the business hours, it has all of my reviews, place to put your offers, you can do your advertising, calendar events. It’s evolving—I think it’s great,” explains Filzen. According to Google, “Google My Business” is designed for businesses as a way to “serve customers at a particular location or serve customers within a designated area.” Following a location verification, customers will essentially be able to find the business. “What I recommend to my clients is to make sure that you do fill out your Google My Business information,” Filzen says. “When you fill out the information, you’re putting in your address, your hours, your phone numbers, website, and all of the services.” It’s important to have all information filled out in your Google My Business as it could potentially steer customers away if he or she is unsure of what your hours of operations are in the instance that they’re not listed. “You can also improve your standing by having that filled out because believe it or not, in this digital age, I’m still running across auto repair shops that don’t believe in social media marketing,” Filzen says. “I think it’s critical [to get] Google My Business listings filled out and maximize it.” 0 4 .19 / R + W / 2 3

READ WHAT THE PROS READ

Grow your mechanical business with ideas and insights from industry experts. “I like Ratchet+Wrench because the articles are about current topics and really focus on owners and running a business. The topics are new, interesting and thoughtprovoking and I always take away something.” - Troy Minske, Owner Rum River Automotive, Princeton, MN

SUBSCRIBE OR RENEW FOR FREE TODAY! VISIT RATCHETANDWRENCH.COM/SUBSCRIBE 24 / R + W / 0 4 .19

J U M P S TA R T

Debt's Effect on Millennial Purchasing A RECENT STUDY FOUND THAT STUDENT DEBT IS CAUSING GENERATIONS TO SHY AWAY FROM VEHICLE PURCHASING BY KILEY WELLENDORF

A recent survey by Bank Rate revealed that student debt has caused a resistance in millennials to make large purchases, resulting in a delay in at least one life or financial milestone. According to the survey, nearly 3 in 4 millennials have delayed a major milestone due to student debt, including 28 percent delaying the purchase a vehicle. That last bit of information is critical for shop owners. As millennials continue to become the dominant purchasing demographic, this delay could affect the amount and type of customers coming into the shop, as well as how much theyâ&#x20AC;&#x2122;re able to spend. The survey was conducted on 3,885 adults, according to Bankrate.comâ&#x20AC;&#x2122;s senior economic analyst, Mark Hamrick, and took place over the span of a five days. The goal was to get an overall snapshot of the American public, Hamrick says. 0 4 .19 / R + W / 2 5

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Semi-metallic or metallic brake pads are composed of a mixture of steel, graphite, iron and copper for superior stopping power, but they are naturally more noisy. Ceramic brake pads are substantially more quiet and produce less brake dust. No matter the style, Duralast Gold brake pads are designed with longevity in mind. They undergo rigorous “torture tests” long before they’re approved, packed and distributed. Testing the friction block is crucial to delivering a quality brake pad. “We test them for all conditions,” says Daniel Sanders, Continuous Improvement Manager for AutoZone, “and quality control is key; if the friction block fails our noise, stopping distance, wear, or stress tests, they never enter production.”

Similar to the pad itself, backing plates endure the long-term, repetitive application of physical force. Duralast Gold backing plates are engineered to withstand this stress and prevent shearing from the friction block. They undergo rigorous extreme speed and simulated weather conditions to help ensure that they function like new on the road. Duralast Gold backing plates are also powder coated like the OE, to prevent rust and corrosion.

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Aiding in noise reduction, performance improvements, and increased surface area, the slots and chamfers on Duralast Gold brake pads are designed to match the OEM pads.

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SHIMS: Many OE brake pads use only one- or two-layer shims. Every Duralast Gold brake pad uses a three-layer shim and are tested to ensure that they better dampen vibration and eliminate brake noise.

HARDWARE: Every Duralast Gold brake pad is a one-stop shop for total brake pad repair—hardware included. If the pads fit more than one application, all applicable hardware configurations are included in the box.

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D E ALER SH I P ST R AT EG I E S â&#x20AC;&#x201D; ST R A IG H T F R O M T H E SOU R C E The secrets to competing with dealership service centers and winning back those lost customers

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BY NORA JOHNSON

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Borrow Ideas To be competitive, independent shop owners can look at what dealerships do successfully and draw inspiration.

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D E A L E R S H I P S T R AT E G I E S — S T R A I G H T F R O M T H E S O U R C E

EXPERT TECHNICIANS hen readers were asked on the Ratchet+Wrench Facebook page what they believe pull customers into independent auto repair shops over dealerships, answers ranged everywhere from “friendliness” and “price” to “trust” and “speed.” It is no secret that dealership service centers and independent auto repair shops continue to be each other's biggest competition. Both have their own advantages and disadvantages for customers—and with dealerships receiving the criticism of being less personable than independent repair shops, service-focused trends have become commonplace in the world of fixed operations. So what are the specific factors bringing potential customers over to the competition? Cox Automotive, a global automotive technology and services company for dealers, conducted an online survey of 4,455 participants to discover what consumers are saying about the subject. The Maintenance & Repair Study lists the top five reasons customers choose to give their business to dealerships as: • Vehicle knowledge • Certified/highly qualified technicians • Knowledgeable staff • Use of genuine parts, tools, and diagnostic equipment • Explanation of services rendered/ comfortable waiting room Ratchet+Wrench spoke to industry consultant Bill Haas, successful dealership owner Evelyn Chatel, and “dealership alternative” repair shop owner Mike Keane to break down and identify some of these factors as well as identify current strategies they believe are driving dealership success—and what independent shops can do to compete. “I think that consumers believe that when they have a new car, dealerships are more prepared, in terms of the technology and the training for the technicians, and things like tooling and equipment,” says Bill Haas, owner of Haas Performance Consulting. “They do that without understanding what the capabilities are outside of the dealership.”

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The Dealership Strategy Evelyn Chatel, owner of Freedom Toyota, emphasizes the importance of training at her dealership in Harrisburg, Pa. “Training is a big thing for us,” she says. Each of Chatel’s employees has the opportunity to attend technical and leadership training, all at the cost of the dealership. She says this helps the Freedom Toyota technicians become more well-rounded and successful employees. Chatel believes in training so much so that the topic becomes a large part of each employee’s yearly review. “We make sure that yearly evaluations are based on the employee’s participation in training, and what they’ve done to get themselves more training,” Chatel explains. Employees will be asked how much training they have participated in during the year and how much they put forth to better improve themselves. Chatel says that at the end of the day the improvements that employees make only help to improve the experience of the dealership. A 17-week training program on how Chatel’s employees can learn to communicate and trust each other has also been added to Freedom Toyota. The ACT program stands for accountability, communication and trust, and aids to her employees understanding the unique cultures and environments that different individuals bring to situations. This program has become wildly successful for Freedom Toyota’s culture. The Independent Solution According to the Ratchet+Wrench 2018 Industry Survey, over 77 percent of independent repair shops have their employees attend industry-specific training at least once per year. As much as this percentage could grow, it is apparent that a majority of shops have members of their team attend training. The opportunity arises in how shops can publicize this training to potential customers, says Haas. If one of the largest reasons customers choose dealerships over auto repair shops is “trained and highly qualified technicians,” those customers need to be aware that the technicians in auto repair shops are equally as trained and qualified. “The [training] information has to be prominent on your website, so that the first impression [customers] get when they go there, is that you are capable of taking care of their car,” says Haas. “The consumer today is going to spend time checking you out before they come in to you for service. No matter

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ADDITIONAL CONVENIENCE

how it happens, potential customers are going to get to the shop’s internet presence before even making an appointment.” Mike Keane, owner of Keane’s Autoworks in Bedford Hills, N.Y. and Ridgefield, Conn., has the phrase “The Dealership Service Alternative” front and center on his website. Keane says a customer gave his shop that title, and ever since, it stuck. Keane says locals now treat them like every other dealership. Keane’s website also profiles their technicians’ training. On the bottom bar of each website page it says “Experienced Technicians” with a short description of their knowledgeable staff. More information on the specific trainings their techs have is below the title “Our Technicians Have the Auto Repair Experience You Want” under keanesautoworks.com’s “Services” tab. This information is readily available to all that visit Keane’s website. Haas says other opportunities to broadcast your talented and knowledgeable technicians can come in the form of blogs, videos and social media posts. “If I just had two technicians go to training on some new technology, I should share that with everybody,” explains Haas. “That should be on my Facebook, that should be on my Instagram, I should be putting out Twitter messages. You need to use all of those vehicles to communicate that message.” Videos and blogs can be as simple as explaining that the shop’s technicians have recently been certified in hybrid vehicles, and what services are now offering, says Haas. These additions to the shop’s online presence will let potential customers know that

The Dealership Strategy To add ease to the repair experience, many dealerships offer additional services to their customers. “It’s not about price anymore,” says Chatel, “it has to be the treatment that they receive during the whole process.” Shuttles and loaner vehicles are commonplace in the world of dealerships. On top of loaner vehicles, Chatel offers her customers something different—a pick-up and delivery service. “The customer doesn't even have to come into the store, we pick up and deliver their car from work or home, so they don't have to have the inconvenience of coming in,” explains Chatel. She says that this service has always been a part of their model, but in the past year they have been really talking it up to potential customers. This service has become especially helpful for mothers with young children, says Chatel. “We try to make it as convenient as possible,” she says. The Independent Solution Additional convenience services have been popping up in independent auto repair shops for years. “I think we see that car dealerships have done a lot of things for their customers that we are finally seeing independent shops do,” says Haas. “Car dealers were the first to provide shuttle services, or to offer loaner cars. Auto repair shops had to catch up to that.” An extra convenience that auto repair shops can advertise, is their ability to be a one-stop-shop for their customers. All members of the family with all brands of cars can be serviced at the same shop, unlike dealerships. If the vehicle is under warranty or has a recall, customers can come to independent repair shops for their service, even if the car needs dealer work. “Tell your customer, ‘Bring your car to us and let us do your maintenance, let us do your service, and even for your brand new car while it’s under warranty,’” says Haas. “‘Anytime your car has a warranty issue, a recall, or anything like that, we will take it to the dealer and have the warranty or recall service performed. If you need anything automotive, you come here.’” That message and added service keeps the car from getting into the dealer service department. Haas says the importance of this is unmeasurable, not doing it risks your customer receiving unknown service. Regardless if the dealership service the customer receives is good or bad, it isn’t worth the risk. Haas says it’s about creating barriers to exist. 0 4 .19 / R + W / 41

D E A L E R S H I P S T R AT E G I E S — S T R A I G H T F R O M T H E S O U R C E

U P DAT E D FAC I LI T I E S

The Independent Solution “You’re seeing today, a lot of independent repair shop [waiting rooms] are ratcheting up to very much the same (as dealerships),” says Haas. Regardless if a shop has a large or small budget, Haas says the prominent goal is creating a welcoming environment that make guests want to stay there. “Keep it clean, put in some comfortable chairs and put a fresh coat of paint on the walls,” says Haas. “To me the most important thing is keeping it so the customers can get away from all the noise, all the dirt and the traffic.” Haas says that one of the things he sees when he goes into independent shops and looks at their waiting room, is that they tend to be in the middle of everything. Customers are placed in an environment right in the center of the chaos. He suggests putting the waiting area out of the way of the work being done. “This environment, if you think about it, is number one going to be dirty, and number two going to be noisey,” says Haas. “Find a way to get them into an area that is clean—and stays clean, and find a way to minimize the amount of noise and the amount of business that takes place [near it] so they can read a book, or be on their phone/computer.” How one views their facilities will help cement the mindset of a reputable business and enforces how customers will see the business in comparison to dealerships. “You need to start thinking of your business as a store, it’s not a shop, a shop is only a portion of the business where work is done. But the reality is, the business is a store and your store sells automotive 42 / R + W / 0 4 .19

A Strong Emphasis Evelyn Chatel (left) puts a large focus on her dealership's employees and customer service.

ALAN WYCHECK ALAN WYCHECK

The Dealership Strategy “When you look at the dealers’ facilities, you look at the customer waiting areas and they have coffee bars for instance,” says Haas. “To where if you had to be at the dealership getting your car serviced you could actually, if you had your laptop with you, you could be in an a fairly quiet area and do some work.” At Freedom Toyota, the waiting room is adorned with TVs, comfortable seating, and even massage chairs. This all aids to Chatel’s goal of providing customers with a comfortable place to wait. They also offer fresh fruit everyday, as well as nutritional bars and teas, instead of donuts and junk food. “We want to try to give people an experience that’s also healthy for them,” she explains. These small additions add to the customers’ overall experience and comfortability. “All of those things are important to us because we feel like if they have to come in, we want the experience to be really special,” says Chatel.

ENHANCED S E RV I C E The Dealership Strategy In the process of hiring new employees at Freedom Toyota, Chatel makes sure to include an explanation of their customer service priority. “It always has been, and always will be about the people—we hire people with those intentions,” says Chatel, “we hire people that have customer satisfaction and customer goals before anything else.” She says that’s what drives their success, the relationships they build from the time of purchase— from the phone operator, to the greeting, to the follow-up with the service advisors, to the availability of the service managers. “It’s really about spending time with the customers and educating them on where to go and who to call,” says Chatel.

“It’s really about spending time with the customers and educating them on where to go and who to call.” —Evelyn Chatel, owner, Freedom Toyota

The Independent Solution To continue to give great service and stay on top of customer retention, Haas recommends attempting to be aware of when a customer is planning on a purchasing a new or used car. “It is important to know when a consumer is thinking of changing cars,” he says, “ in some cases the shop is probably recommending to the consumer, ‘hey it’s probably time for you to consider replacing this car.’” If a relationship is formed between the repair shop and the customer, knowing when and what kind of car he or she is planning on purchasing will give the repair shop a great advantage. The shop can now be positioned at the front of the line for the vehicle’s service, by telling the customer to bring the car in to get a comprehensive inspection, it’s a great opportunity says Haas. Above all, it’s about the service being provided to the customers. “You have to continue to give great service, that is the reason that people come to the independent shop, because they know they are going to get great service,” says Haas. 0 4 .19 / R + W / 4 3

Meet Your Goals Matthew Roayaee created a facility and a culture in his first shop that is the epitome of business ownership for him. 4 4 / R + W / 0 4 .19

BUILD YOUR dream SHOP How one shop owner brought his ideas to life BY KILEY WELLENDORF PH OTO G R A PH Y BY M AT T H E W RO O D

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B U I L D YO U R D R E A M S H O P

years, Matthew Roayaee had a singular goal: build his dream shop. At the time, in 2005, he was working his first job at a repair shop, and as he gained more and more knowledge and more confidence alongside it, he realized that he wanted to own his own shop— and fast. Within five years, to be exact. It wasn’t lost on Roayaee what a large undertaking this was. “I worked at the shop from 7 a.m. to 6 p.m., and then I worked at a restaurant from 7 p.m. to midnight, including Sundays,” he says. “I was able to accumulate cash, I didn’t have kids, and my wife was my girlfriend at the time [and] we didn’t have a lot of big expenses; I went to the bank, presented my business plan, and they lent me the money.” After accumulating $40,000– $50,000 for the business, Roayaee became owner of the eight-bay shop and realized the importance of being on the same page as staff members. “My goal was to have a successful business,” Roayaee says. “Every change that I made in the shop was to provide a better service for the customer, and I had people that didn’t want to take orders from me or believe in what I wanted, and that didn’t work for me. Eventually, I had to clear house.” But, clearing house was also an opportunity—an opportunity to actually build the business the way he wanted to with a team that believed in what he was trying to accomplish. Today, Roayaee operates Auto Check Elite in Katy, Texas, an operation that recently brought in $2.5 million with only eight members on his team. His shop, now the fourth business he’s operated as an owner, is considered his “garage,” and a place that he’s happy to arrive to early in the morning, as well as stay after late in the evening. Since day one, Roayaee has worked to create a brand that is not only customerfirst, but loyalty-first in every aspect of the or

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business. And he’s done that in a number of unique, creative ways—including his building, his customers and his staff. Those three components are how he’s folded comradery and loyalty into the making of his operation, creating a place that is fun to work at for his team and enjoyable to visit for his customers. The Building Roayaee’s fourth shop was a work in progress for Roayaee. When it came time to building “the garage,” it was important to bring all of his lessons to life and ultimately create a facility where his business continued to thrive. “I had a vision for what I wanted,” Roayaee says. “It was a very stressful two years of my life (finalizing decisions for the shop).” In order to create a facility that emphasized growth, Roayaee decided to think outside of the box and create a place where those in the industry could stop by for industry training. During the construction of the building, Roayaee decided to replace plans of having a 2,200-square-foot upstairs loft area with an educational, classroom setting that could be used by his staff members as well as those in the industry. In the past, Roayaee says there were numerous inconvenience related to sending staff members to outside training:

employees had to sit in traffic after hours, it cost money for the shop, and employees lost portions of their evening. “Instead of us going to all of these training courses after hours when we’re tired, what I do is I tell the instructors to come and do their class upstairs,” Roayaee says. “I don’t want any money; they are welcome to use our facility, our bathrooms, our kitchen—the only thing that I ask is that my guys go for free.” The loft has been used by the shop to put on classes, and every class that is hosted in the loft is attended by Roayaee’s staff members. “People that put the class on advertise it and they let people know that the class is at this address,” Roayaee says. “Everybody that comes here just loves the place.” Last year, the shop held roughly six training session in the classroom, saving the shop an estimated $400–$600 per session. Owner takeaway: By hosting classes inhouse, Roayaee’s staff has gotten the chance to attend educational seminars for free. The Staff Out of the eight staff members at Roayaee’s shop today, three staff members are from the first shop, two are from the second shop, and the last two were hired at the location.

AUTO CHECK ELITE Owner: Matthew Roayaee Location: Katy, Texas Size: 9,000 square feet Staff: 9 Average Monthly Car Count: 620-650

A Dream Come True After years of hard work and budgeting, Matthew Roayaee turned his dream shop into a reality when he opened Auto Check Elite in Katy, Texas.

“I don’t have a lot of turnover because I really take care of my people,” Roayaee says. One night after work, Roayaee was talking with employees when one men-tioned he had never been to SEMA, and the other said he had never been to Vegas. To inspire his staff, Roayaee de-cided to create a goal that resulted in a trip to SEMA. “I was trying to motivate them and this goal was one they could achieve,” Roayaee says. “They were ahead of time, so I put a little cherry on top: if they did this next goal within the next quarter, than I would fly [them] first class.” Sure enough, the service goal was reached, resulting in three staff members flying fi rst cl ass wi th Ro ayaee fo r The SEMA Show in 2015. “It was a very expensive week for me,” Roayaee says. “Most of our equipment is what we as a team purchased at SEMA, [so] therefore, they’re so proud of it; they feel like they had the right to choose and their opinion matters. “A majority of it is in use today and they still tell the story.” Bonding is important for Roayaee’s staff, a nd h e s ays t he t rip i s o ne o f t he many outside events his employees have embarked on together as a team.

Annual Revenue: $2.5 million

“What helped the most besides the experience we gained at SEMA and the memories that we made, the technicians that went with me choose the equipment [for the shop],” Roayaee says. “I did it just because they take ownership of it now, they’re proud of it and they’re the guys that said, ‘Let’s get this.’” Owner takeaway: When you bring your team together to help your business, it inspires growth inside your shop as well as teamwork among the whole staff. The Customers In order to create a successful business, you have to be a place to which customers want to bring their vehicles. At Roayaee’s shop, customers are able to get a glimpse of who is working on their car by the way the lobby is set up. “In our lobby, there’s three big tool boxes as a service advisor desk, and above every desk is a giant TV,” Roayaee says. “Most will put their menu or prices [on the screens], but mine doesn’t say that.” When customers are waiting in the lobby, they can learn about different elements of the shop through the following television broadcasts such as animations of work that is done in the shop as well as candid moments around the business.

“The one on the left shows a profile of everyone that works here: name, last name, where they’re born, what they’ve achieved in their lives,” Roayaee says. “Below, it shows what their hobbies are and we [also] have nicknames for everybody—it’s something that I’ve been doing for everybody.” According to Roayaee, having everyone’s profiles up on the television screen allows customers to really get to know who is working on his or her car. “It’s awesome because the customer sits in the lobby, sees that there’s only 7-8 of us and it’s a very good bonding experience between the team members and the customer,” Roayaee says. The last two televisions feature an educational video or animation explaining a certain repair to customers, as well as candid shots from around the shop. “The third one shows us at work; it could be us working on a cool car, it could be a big project, or we have an oil barrel that spills and I’m the one taking a picture of it,” Roayaee says. “Customers love it because it makes us human.” Owner takeaway: When your customers know who is working on their vehicles, they build a further connection with the shop and are motivated to come back in for future business. 0 4 .19 / R + W / 47

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Branch Out HOW PEER NETWORKING CAN TRANSFORM HOW YOU RUN YOUR OPERATION Staying on top of industry trends is not only essential, but also a valuable part of making your business successful. In order to grow your automotive business, you must be willing to change. Jeff Odom, shop owner of Evergreen AutoWorks, a dual mechanical and collision repair shop in Bothell, Wash., has worked to actively grow his shop by staying in tune with what’s going on in the industry as well as how others are doing business. “To build the business, create an environment where people want to work, and have something that can live beyond the owner—I think that’s [where] personal development, to me, is really important,” Odom says. Aside from focusing on in-house training and making a point to create leaders out of his staff, Odom has spent a majority of nearly 20 years hanging out with a crew outside of his business that has inspired him to grow: a 20 Group. “It’s been so many years and I’m still learning,” Odom says. “Not only learning, but I need that accountability; as a shop owner, who is holding you accountable?” To stay ahead in the industry and make the most out of your time, Odom shares his suggestions on how to participate in an automotive group and what to do in order to effectively bring lessons back into your shop. AS TOLD TO KILEY WELLENDORF

THINKSTOCK

No matter where the meeting is at, make sure you have a pen and paper on hand.

I’ve been going to meetings for years now, and I still learn something new each time. When I take notes, I always end up having pages and pages by the end of the meeting, so it’s nice to make sure you have necessary materials in order to bring lessons back to your shop. Talking to other shop owners gives me inspiration, and when you’re associating yourself with other successful people, then you’re also learning about how those people became successful in the first place. You never know what type of scenario you’re walking into when meeting with a group of shop owners or checking out someone’s shop. One time I visited a shop and took note of a bathroom that I thought was absolutely filthy. At the end of the visit, I brought my notes back to my shop and

made a plan to redo my bathroom because I realized that there were improvements that I should be making as well. There are always lessons that you’ll learn, you just have to be open to recognizing that it might mean you have to make changes to your business along the way. Avoid your cell phone and stay the entire meeting. At the end of the day, it can

be hard to leave behind your business, especially when you have a device that can keep you in the loop. I’ve seen people sit on laptops and check their security cameras, or head out before a meeting wraps up, and I just don’t think that is right. To me, there is so much knowledge being shared that there is no reason why anyone should want to head out of a meeting early. I would encourage full participation because you never know when you’re going to hear

something that could change the course of your business. I would encourage you to speak in the meeting when there’s an opportunity. This

can be about anything—when you have the confidence to talk about your business, other shop owners might feel compelled to share as well. If you’re in a situation where you’re asked to bring back information about your security systems, then I wouldn’t shy away from going all out and creating a PowerPoint. If you come to a group with other shop owners, be willing to participate and present something that others can learn from. You want to be prepared when you’re talking about your business, so I would come with something to share. If you don’t fully participate, it’s hard to get anything out of it and make an outside meeting worthwhile. We learn from one another when we participate. When you’re given a suggestion, take it into consideration and follow through. If you get

the chance to hear advice from other shop owners about how to improve your business, it’s important to listen and be open to hearing how your shop can change. It’s sort of like answering to a board of directors—as owners, who do you really answer to besides your shop? When you’re able to take advice and use it, you might find that your shop benefits from an outside source. Also, if you make a goal for yourself and announce it to the group, make sure you actually do what you say. Think of it as a motivator, because there’s nothing worse than getting asked about how your new plan is going when you haven’t even started it. 0 4 .19 / R + W / 5 3

T O O L B OX / C U S T O M E R S E R V I C E

Director of Wow WHY YOUR SHOP NEEDS TO INVEST IN A FULL-TIME CUSTOMER SERVICE REPRESENTATIVE BY NORA JOHNSON

founder of Repair Shop Coach and owner of Auto Repair Technology in Brook Park, Ohio, took a leap of faith and hired a team member that most repair shops don’t invest in—a customer service representative. In any small business, the nature of a small team means that employees tend to take on multiple roles; and although every staff member should be great with customers—a designated customer service representative can help increase sales and customer retention. Frank took the risk in hiring a fulltime, what he calls a “director of wow” to help answer the phones and drive his shop’s shuttle. “Director of wow” is the nickname Frank jokingly gave his customer service representative (CSR), who he now says was their first key hire. Frank’s CSR does things that his shop was unable to do before. Auto Repair Technology sends a handwritten thank you card to every single customer, instead of an email that can sometimes come across as impersonal. The shop also now takes the time to personally call each customer to thank them, and talk to them while they wait for their vehicle. “You never know what the customer is dealing with, so taking the time to be kind to them can make all of the difference in the world,” Frank says. They also started giving out car care gifts, their CSR began stepping away from the counter and handing each customer a red rose before walking them to their car. “Our business changed from being in the car repair business, to being in the people business,” he says. Frank details how owners can identify 5 4 / R + W / 0 4 .19

if a customer service representative is an advantageous investment for their shop, as well as the process of hiring and assessing a successful CSR. “A customer service rep is a cornerstone in your business. It’s probably, in my opinion, the most important position,” Frank says. Identify the need. Frank says that the first sign that he needed to invest in a CSR was the ample amount of extra hours he worked each week. “As most typical shop owners, I was doing everything. I was working 50 to 60-plus hours per week wearing all of the hats, and I was having trouble keeping up,” he says. “Things were slipping through the cracks.” And then there were the phones. Each time they rang, Frank says he would see it as an inconvenience. “That’s a bad place to be. If you think about it, that phone is directly attached to your bank account,” he says. This sparked Frank to begin the search for a CSR to help take on some of the customer-focused roles, as well as answer those constantly ringing phones. Find the ideal candidate. “First, you need to clearly know what you are looking for,” Frank explains, “If you don’t know, you will hire someone for all the wrong reasons.” Early on in the search for his shop’s “director of wow” Frank knew exactly who he wanted in the role. “I really needed a ‘people person,’

somebody that had a customer service background was important,” he says. He also knew that he was interested in hiring a woman for the position. Frank explains that a large majority of customers are women, and he thought that hiring someone they could easily relate to would help build customer relationships. Weed out the poor listeners. Frank explains that the process of hiring a CSR completely differs from the process of hiring a technician. The job posting, selection process, and interview are all unique to the position. This is partly due to the excess of interested candidates. “When you are hiring a technician, they are very scarce,” says Frank. “When you place an ad for a customer service representative, you are going to be overwhelmed with responses. Hundreds of people will apply.” A large number of applicants means a larger pool of talented individuals to choose from, but the high number of applications can quickly make sorting through them a daunting task. Frank makes this step less overwhelming with one simple trick: He gives a very specific instruction in his ad postings.

GETTY IMAGES

Fifteen years ago Gerry Frank, co-

THE JOB POSTING

Gerry Frank has shared his CSR job posting with Ratchet+Wrench, and can be found below: Customer Service Representative Do you have a great personality? Are you outgoing? Would you enjoy a small business atmosphere where it’s like a great big family? Do you have good phone skills and really like people? Our clients are treated with an extreme high level of customer service—would you be good at that? Are you good on a computer? If you answered “yes” to all these questions, read on: Do you have a clean driving record? Would you pass a background check? Would you qualify to work in a drug free workplace? If you answered yes to all those questions, give me a call! My name is Gerry, call me at (XXX) XXX-XXXX to hear more about this position and let me know you're interested. I would like to talk to you about a customer service opportunity in Brook Park at a local small business. No weekends, no evenings, five-day workweek, paid vacation and holidays, too! DO NOT reply to this posting; it will not be seen. Rather, call (XXX) XXX- XXXX.

After briefly describing the CSR position, and a few general requirements, a bold statement at the end reads, “DO NOT reply to this posting, it will not be seen. Rather, call … ” followed by his phone number. Any respondent that sends his or her resume and doesn’t call is quickly eliminated. “If they aren't good at following directions, they aren't going to be good at following directions with you,” Frank says. He says this process has eliminated 75 percent of the applicants who fail to follow instructions. Listen and evaluate. Once the applicant calls Frank, he or she is met with a voicemail detailing more about the job, before asking to leave message if he or she feels it’s a good fit. “There is no better way to find out if somebody is a ‘people person’ or not, than to be able to listen to them,” he says. Frank says that he listens for a few things in the voice recordings. He is able to distinguish if the applicant has a good voice, and isn’t short or impatient sounding. He also wants to hear him or her fight for the position. “If they can’t sell themselves to you on

the phone when they want the job, they aren't going to be able to ask that customer for the appointment,” says Frank. If the candidate is charismatic and can form a relationship with you in the message, you know they will be able to build relationships with customers. Frank then narrows down the candidates and asks him or her to come in for an in-person interview. There, he asks more general questions about past customer service interactions and experience. Most questions revolve around Frank getting to know how the applicant deals with people in tough situations, and otherwise. He also looks at how the individual represents themselves through attire and professionalism. “This person is going to be representing your business,” he explains. Frank says you then trust your gut and follow your instincts in hiring the best “people person.” Check in and assess. Once a candidate has been hired, Frank then frequently checks in to evaluate how he or she is performing. He listens to how he or she interacts with customers

and looks into Google reviews. Are reviewers talking about their customer service experiences or mentioning the CSR by name? “You’ll know really quickly if you got the right person or not,” he explains. Frank also does something quite unique. Every Wednesday, he chooses a handful of incoming and outgoing calls to sit down with his CSR and evaluate together. They spend roughly an hour going through and listening to the recent phone calls, while the CSR self-evaluates: “Was the phone call answered in less than three rings?” “Am I asking the customer for his or her name?” “Am I building relationships or simply taking orders?” And an informal question, that might actually not be on the report card, “Is that how I would want my mother to be treated?” The importance of a CSR is apparent, Frank says. “When you look at reviews, barely will you get one that says, ‘I go back there because they have the best technicians,’ or, ‘They fixed the car right the first time,’ because they expect that—it’s all about the experience,” he says. 0 4 .19 / R + W / 5 5

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INDUSTRY INSIDER Rissy Sutherland

THE NEXT GENERATION This young shop owner is poised to make an impact on the industry I don’t often get to spend time with

another female in the industry (especially one that is such a humble, smart powerhouse) like Ashleigh (Lucas) Civitello. I first had the privilege of meeting Ashleigh when speaking at an event. I noticed everyone in the room gravitated toward her in general, asked her opinion often, and I could tell she really cared about the people she was talking to. The reason this story is so strange is that she is in her early 30s, a leader in the automotive industry and has already worked as a consultant and speaker to other shop owners. It’s a path you just don’t see often, if ever. Ashleigh grew up in the business, with her dad opening Lucas Auto Care in 2007. She was in the shop growing up and didn’t even realize that she was learning the business by default, going from bookkeeper, service writer, manager, and, finally, as an operator in 2015 when her dad closed on a second shop in Austin, Texas. Today, Ashleigh’s location has eight bays, 12 employees, and does $2.5 million in revenue. It has become so successful that she currently coaches other shop owners around the country. I was so excited to get learn more about this amazing woman and how she’s come so far in such a short time.

FUE VANG

What was the best and worst part of growing up and running a family shop?

The best part was having the ability to naturally learn the business and not even realize that it was happening as I worked in it each day growing up. I was able to learn the automotive industry, bond with my family and learn business overall. The worst part is that I sometimes make emotional-based decisions when it comes to the impact on family members that I may not normally make if it would be someone else in the position.

What has been the best and worst part of being a young female running a shop in the automotive industry?

The best part is I feel that I have a natural ability to empathize more with my team members, which has resulted in an amazing shop culture that was lacking in our shop before my tenure. I feel that when issues escalate, my presence and demeanor naturally helps to diffuse the situation in a way that may be different than a male in the same role. The worst part was when I took over operations; I had to replace most of my staff because the team at that time didn’t want to have the previous boss’s daughter calling the shots. So, I had to make the tough decision that if they weren’t on team Ashleigh then they couldn’t be on the Lucas Auto Care team. Why do you think that the shop has become wildly successful since you took over operations?

Having the clear focus to create processes and systems that would allow for me to be a multi-shop owner. I knew I had to have systems so streamlined that I wouldn’t need to be at the shop every day, allowing me to focus on growth. By focusing on perfecting these systems I’ve made our business operations much more efficient in the process. Why do you want to continue to be a consultant, trainer and speaker in addition to running your shop?

I love giving back to others the way that other coaches selflessly gave to me, first and foremost. Secondly, I find that as I coach and train other shop owners, it helps me to be even more successful. As I coach a business owner to get better at a certain process or system, I find myself really examining my business to see if I’m practicing what I’m preaching.

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

Secondly as I talk to other owners, I learn new things every day that they are doing well from marketing, operations, hiring, training and so much more. It keeps me engaged and excited about the business. Why do you think Euro shops are more successful than domestic general repair locations?

I don’t think they are more successful necessarily, but it is different. I draw from a much larger area because a high-end European owner will drive 20–30 miles to get his or her car fixed by an expert in that area. We don’t have the issue of our customers not being able to afford their repairs usually. If they can afford that high-end car, they can usually afford to fix it. Next, we generally attract topof-the-line managers and technicians. The high-end, specialized nature of our vehicles and customers really draws the best of the best in the talent pool. What does the future hold for Ashleigh Civitello?

I’m so excited to continue opening more locations and learning more about acquisitions and real estate. Since I now don’t need to be at the shop as often, I will continue to do more coaching, training and speaking. I love what I do every day. 0 4 .19 / R + W / 57

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

Discover how one shopâ&#x20AC;&#x2122;s referral and loyalty program increased its customer base BY KILEY WELLENDORF PHOTOGRAPHY BY LEAH QUINTO

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Knowing Your Customer Understanding his shop's customer demographics has become vital to how Matt Lachowitzer runs his three shop locations.

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All in the Card Matt Lachowitzer now offers his customers a multipurpose loyalty card to gain insight and offer rewards.

esides keeping track of your customers’ history in your system, how else are you able to tell if a customer frequently uses your services? Whether it’s a familiar face in your shop or a name that writes a review after her appointment—it’s important to know where your loyalty lies when running a business. For Matt Lachowitzer, MSO of three Matt’s Auto Service Centers in North Dakota, really understanding his demographic was important in running his business, and something he strived to get a handle on consistently. In 2010, the shop invested in a paper hole-punch card that identified how often a customer came through to the shop. “We made a paper card and it had a punch on it and that’s how we did it because it was the easiest and cheapest way,” Lachowitzer says. While it was cheap and provided the shop with insight into how often customers were taking their vehicles into the business, Lachowitzer looked to do more, and ultimately give back to the customers who relied on them for repairs. “As we got bigger, I started looking at, ‘How do we do this with a card?’” he says.

THE BACKSTORY

Matt’s Auto Service Center was started in 2009 by Lachowitzer, who spent a majority of his time in the industry working at Ford and GM dealerships. The first shop started as a two-bay shop, moved to a four-bay shop, and today is an eight-bay shop. “In 2012, we opened our first Fargo location, which is our second location, a fivebay shop, and we were in there until 2015 when we moved to our biggest facility, which is a 10-bay shop,” Lachowitzer says. “This year (2018), we actually purchased a body shop and we remodeled it, so now it’s half body, half mechanical, so I do collision and mechanical.” Between all three stores, the business has 30 mechanical bays and seven collision bays.

THE PROBLEM

While the paper copy showed staff members how often customers were coming into the business, it was unable to properly track customers electronically. “For me, I like the marketing side of stuff and I want to understand where my customers came from and why they’re coming to us,” 6 0 / R + W / 0 4 .19

Lachowitzer says. “When you have a great customer that tells [other people] about you, they’re a good customer. It was a big deal on, how do we identify those customers and find a way to get more people like them?” In addition, Lachowitzer was hoping to find a multipurpose card that could serve as a gift card and offer more to his customers. “As we got bigger, I started looking at how do we do this with a card,” Lachowitzer says.

THE SOLUTION

In 2011, the shop decided to invest in a card that serves as a branded rewards/gift card that can be used for both services. The all-in-one card caters to all three shops and can be used as both a gift card as well as a loyalty card that rewards customers for their business. Instead of having two cards on hand— one rewards card and one gift card—the two-in-one card eases up stock, making it easier to organize and less of a hassle for the business. When looking for the right card company, the shop sought out a card that they could design on their own in order to

further build on their brand, later partnering with Heartland Payment Systems. “It’s all stored by card number, and when we load a card, we can put all customer’s information in there, and I can log in on the back and see, ‘So and so’s card number is this and has this many dollars and points on it,’” Lachowitzer says. “It makes life easy, especially when you have a good customer that loses their card. I can actually log in and find out what’s on it.” The card features both a loyalty and referral opportunity where customers can earn back money that is spent with the shop. Since implementing the card, the shop has created an in-house procedure to make sure the referral card is paired with the right customer. Shop Tip: Determine the Right Customer Although the program is available for all customers, Lachowitzer finds that some customers might be a better fit for the referral program than others. “Not every customer is our ideal customer, too, so we want to make sure we find

MATT’S AUTO SERVICE CENTER Location: Matt Lachowitzer Location: Fargo and S. Fargo, ND; Moorhead, Minn. Size: 7,500 square feet Staff: 27 employees (total) Average Monthly Car Count: 1,000 (total) Annual Revenue: $5 million (total)

the customer that really gives the five-star reviews and tells people [about us],” Lachowitzer says. In deciding on the right customer, Lachowitzer says his shop strives for a positive experience that leaves an impact on both the customer and staff member. “Internally we strive for a hug or highfive moment with everything we do,” Lachowitzer says. “So, if our staff feels like they have that moment with a customer, that’s when we start to bring stuff like this up, or if we notice the last time they came in, they left a five-star review or things like that. Or if they were in two weeks ago, one of their friends from work came in because they had a great experience—those are the kind of people that we send those names right to our marketing team who then send stuff out right away.” Shop Tip: Check Customer History When a customer checks in for an appointment, part of the internal process is keeping track of background information such as how they heard about the shop. “Every customer gets asked (during the

checkout process) how did they come to us, so our service advisors cannot write an RO without getting that information—it won’t even let them write down customer complaints,” Lachowitzer says. “So, from there, what they do is say, ‘Who referred you?’ and we immediately react and send a gift card out.” After the follow-up, the traction generally picks up because of customer excitement, Lachowitzer says. “The first one you get, if you do a really good job with that customer, when that referral comes in, we immediately call so-and-so, we get it out the same day,” Lachowitzer says. “Then we follow up, thank them for doing that, and what that created is an, ‘They really care about us,’ and then they go tell five more people. And that’s where it’s created its own direction; it doesn’t need a lot of push for us.” Shop Tip: Discuss After Appointment After determining if the program is a right fit for the customer, Lachowitzer says customers are approached at the end of their checkout time at the shop about the opportunity.

“Typically we like to do them in person; we’ve done some over the phone and some via email, but I would say 95 percent of them are in person,’ Lachowitzer says. “We try to do that after the buying process is over so they’re done with that and they’re not thinking about that stuff.”

THE RESULTS

Since implementing the program, the shop has seen an increase in customers. “It’s pretty dramatic, actually, because when you look at how much it costs to acquire a new customer compared to using a referral loyalty program instead, it’s pennies on the dollar compared on what you spend on the advertising money,” Lachowitzer says. “Everything we’ve tried to do, I would rather give the money to my customer than put something on the radio because they’re the ones out there telling people about us.” According to Lachowitzer, on average, for the 1,000 cars per month that the shop sees, 50–75 of them are referrals. In addition, roughly 2,000 customers are part of the program. “It’s close to 10 percent of our business is referral customers every single month,” Lachowitzer says.

THE TAKEAWAY

When you’re looking to increase customers at your business, it can be beneficial to take note and recognize those who are loyal to your company. “If somebody wanted to try something like what we’re doing with our program, [I’d suggest to] make sure you show them how it’s beneficial for them,” Lachowitzer says. “That’s one of the things that we had to do.” Customers might be more willing to to continue bringing their business to you when they know that their service is appreciated. “This is one of the easiest ways to do that because you can tell your great customers that already speak from the rooftops about you and say, ‘Hey, by the way, you can get a reward if you tell people that are just like to come to us,’” Lachowitzer says. 0 4 .19 / R + W / 61

T O O L B OX / H U M A N R E S O U R C E S

Keep Your Employees Around HOW TO TACKLE ISSUES THAT MIGHT STEER YOUR EMPLOYEES AWAY FROM YOUR BUSINESS BY KILEY WELLENDORF

doesn’t mean that he or she is going to stay at your business forever. When it comes to retaining your employees, it’s important to look inward and determine whether or not your business provides enough support for your staff members. “I think more than anything, employees and human beings in general want to feel valued, we want to feel respected, we want to feel like our hard work is appreciated and it’s paying off,” says Bogi Lateiner, owner of 180 Automotive in Phoenix, Ariz. When walking into the business each day, it’s important for employees to feel a sense of validation that their opinions matter, their work isn’t overlooked, and they have support in the instance that something were to occur outside of work. Human resource expert Tim Trujillo of HR Focus in Tehachapi, Calif., and Lateiner discuss common issues that are off-putting for employees, and, unfortunately, reasons why he or she might decide to put in their two weeks notice with the company. Mistake 1: No Review Meetings “It’s an area within businesses that has been overlooked over the years,” Trujillo says. “I think [review meetings] are very important because your business is going to be successful depending upon the contribution of your employees; the employees need to have feedback on the good things 6 2 / R + W / 0 4 .19

they’re doing or the areas they need to grow or adjust in the business.” Conducting a one-on-one review meeting with your employee is essential in running a business. During the meetings, not only do you, the owner, get the opportunity to review your employee’s performance over a set amount of time, but you also get the chance to make suggestions to your employee regarding how to improve their performance, bringing further success to your business. For Lateiner, owner of 180 Automotive, in Phoenix, Ariz., meeting with staff members is important, even if it’s not done in a traditional, formal setting. “I can’t emphasize the team meetings enough; it creates culture as far as the individual meetings [go],” Lateiner says. “People crave structure as well, so as leaders, we need to give that to them and having the knowledge that they’re going to have the sit down meeting, it’s really important for their morale and sense of belonging.” At the start of their employment, inform employees of standard dates or time periods he or she can anticipate a review. “The ideal [review meeting] is to make it an ongoing process—daily, as necessary,” Trujillo says. “As things occur, it’s best to have the manager discuss it right away with the employee, [whether it’s] positive or negative. If it’s positive, you want to reinforce it, and if it’s negative, the employee needs to know when to adjust and what the issue is.”

All processes do not have to be formal either. “I, honestly, personally probably have good heart-to-heart meetings with each of my team members one on one on a monthly or more basis,” Lateiner says. “[There’s a] constant feedback process that we are kind of implementing on the regular that decreases the need for reviews.” Mistake 2: Working Employees Overtime Working overtime can happen often with a business: A customer comes in late, a project falls through last minute, or business is busier than usual—it happens. “Generally, overtime can be useful to the employer from the standpoint of, if it’s a temporary increase in a need for productivity improvement; the employer gains because they don’t have to hire brand new people, and when you hire brand new people, it’s very time-consuming, difficult, and you don’t know who you’re going to get,” Trujillo says. However, when employees are expected to work continuously past hours,

GETTY IIMAGES

When an employee accepts a job, it

it can pose damage to the employee’s satisfaction with his or her work and the company. “If someone needs extra income and they don’t have commitments outside of work, usually [overtime] is not a problem,” Trujillo says. “Let’s say somebody has a family or child-care issues that they have to care of, then that can be an obstacle. “If you have too much overtime with people, then it becomes stressful; humans need to eat, sleep, and play.” In addition, using overtime frequently in a business can be difficult to keep track of. “Recordkeeping is very important to make sure that employees are compensated overtime,” Trujillo says. “It’s really important for the employer to be cautious and keep track of.” To stay ahead, Trujillo suggests taking a step back to evaluate staff size and determine whether or not it would be beneficial to hire additional help. “It’s an imperfect thing thing forecasting what your business is going to be,” Trujillo says. “The more intelligently the employer goes about their forecasting

will really help the workforce because they should be staffed appropriately; the thing that I’ve always said is, ‘Let’s do overtime if it’s temporary, but if we see big business down the pipeline, let’s talk about adding staff where it’s necessary.’” Mistake 3: Not Offering Benefits Having employee benefits can help position your company ahead of others in the market because job seekers are often interested in what’s offered in addition to a paycheck. Depending upon the size of your business, if you’re able to finance benefits, then it’s important to keep those in mind in order to keep your employees around. “The bottom line is [that] it’s a competitive labor market and the better benefits you offer will attract and retain good people,” Trujillo says. “Unfortunately, it’s very dependent on the well-being of the business. The small employer, if capable, should try to offer competitive benefits.” Benefits can further solidify employee’s satisfaction with the company as well as knowledge that he

or she is being taken care of by his or her place of work. “It’s part of the whole employment package,” Trujillo says. “If the employee perceives that they’re being treated pretty well by the employer, that baseline will really assist the employer in retaining the employee and [the employee will] feel okay about their economic situation.” To stay in competition with other markets, Trujillo suggests seeking out your state’s reports generated from the Department of Labor to observe what other benefits are offered. “There are a lot of resources out there—federal and state reports generated like the Department of Labor puts out a lot of information for what employers are offering and what wages are paid,” Trujillo says. “There are a lot of associations that are private and the biggest one is the Society for Human Resources Management; if you’re a member, you can to their website and there’s just a wealth of resources for what’s available, what are trends in benefit offerings, and what benefits cost.” 0 4 .19 / R + W / 6 3

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THE BOTTOM LINE Mitch Schneider

THREE THINGS Identifying the top industry challenges

MICHAEL HOEWELER

It’s not often that I start writing

without a fairly well-defined subject line. In fact, from a purely journalistic perspective, I write backward, starting with a headline and then filling in the story that supports that headline. Realistically, I’m hoping that subject line will reveal itself as I try to work my way through this idea that keeps bubbling around in my head. The problem is that hasn’t happened quite yet. Instead, I’ve been haunted by what is quickly becoming a new, loosely formed project focused on the needs of the repair community and the role we—all of us—can and should play in the future of the industry we serve. This is not something I’ve just started wondering about. Our lack of unity has haunted me from the moment I first picked up an end-wrench. It’s something I’ve been obsessed with my entire career. Rather than recognize our failure to affiliate, instead of speaking with one voice, we raise our voices as individuals or through our countless affiliations. Everyone wants what everyone wants, and the result is babble. The air is filled with noise and as a result nothing gets accomplished. Let’s try something new. Let’s identify the three critical challenges you feel we face both as individual shop owners and as an industry. The three critical challenges that, if addressed, will forever change your current reality. I’m not sure there is a difference. I’m not sure the challenges we face as owner/ operators are different or can be isolated from the challenges facing our industry. I am trying to determine if there is a de facto, generally accepted and agreed upon hierarchy of issues plaguing our industry, inhibiting us from achieving our fullest potential. Are there three things we can all agree are significant enough to warrant our time, our energy and our effort? And, are there three things that can be fixed? I believe we can identify three things

all of us can agree needs to be fixed. If I’m right, one critical challenge will f loat to the top. It may be first on your list and third on mine, but it will appear somewhere on the majority of responses we receive. Can you imagine the power in that? Can you feel the energy and resources we could bring to bear on that one singular challenge? I’m starting here because this is the most accessible community available to me and because it is the most diverse and, yet, the most singular of purpose. And, of course, because it is mine. I’m hoping that you will respond with the three single most bothersome, most distressing, most critical challenges, issues or obstacles you feel must be addressed before we can move forward as individuals or as an industry. My guess is, regardless of the number of specific issues you are able to identify, three will ultimately bubble to the surface and, of those three, one will give us the focus we will need as an industry to come together and address them. I believe those three issues will help clarify where our industry and our associations can and should focus their resources to provide the most value and achieve the greatest benefit for the greatest number of shop owners. Perhaps it’s a way our associations can provide a clear and obvious reason to join. I’m starting here hoping to involve those of you who are not now affiliated or have never been affiliated. We need to know if there is a disconnect between what we know or believe we know (as those who are affiliated and involved) is best for the industry and the challenges the great majority of unaffiliated shops believe they are facing and where they need the most help. If there is, we need to align those beliefs to attract the greatest number

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

of individuals to join together under one banner. If the three challenges that f loat to the surface are universal to all, we must identify exactly what it is we have to do to attract and include the greatest number of shops we can in the future of our industry. So, here it is: What are your top three concerns? What are the top three nightmares keeping you up at night? What are the top three things that if removed would change your life: your future, in a host of powerful and positive ways? Share your top three with me and I promise to share the three that float to the surface with you and the rest of the industry as soon as a pattern emerges. 0 4 .19 / R + W / 6 5

Robert Ohlmann Manager Tony's Brakes & Alignment

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TONY'S BRAKE & ALIGNMENT

Location: Louisville, Ky. Size: 13,600 square feet Staff: 15 Average Monthly Car Count: 400 Annual Revenue: $2.1 million

AS TOLD TO KILEY WELLENDORF

I’ve completely taken myself out of day-to-day operations. I start my day

off upstairs in my office, which is different than what I’ve done in the past. I used to make sure everyone was here and also greet everyone in the morning, then come upstairs to get started. Since realizing that I do some of my best work in the morning, I try to make a habit of starting work early before everyone gets here. Even though I still have the urge to be nosy and wander around the shop, I try to focus. Of course you get those texts and calls throughout the day, but I try to make a point to focus on my work in the morning. When I got involved with Elite coaching, one of the goals I had for myself was 6 8 / R + W / 0 4 .19

to not be as involved with the business on the front end. That really took time getting used to, and I still am trying to get used to it today. I used to work as a service advisor at the shop, so when you try to step away, there are customers that still seek you out even though it’s not in your role anymore. I’ve hired three great service advisors who now take care of meeting and greeting customers. One of the changes that I made to my business was designating days of the week to certain duties that I want to focus on at the shop. Now I have a day of

the week that I focus on a certain thing that I want to work on instead of working on everything at once.

On Monday, I work on reports in the morning from the previous week. Then,

on Tuesday, I do my quality control, so I pull work orders and make sure they didn’t have any comebacks. I check reports to make sure my service advisors are capturing all of the information, and check to make sure customers’ contact information is being inputted into our system. I believe that everyone in the shop gets along really well and that’s helped the

business. We have zero drama in the shop and it’s really common for the guys to talk outside of the business. We don’t have meetings in our shop yet, but that’s something that I want to focus on in the future. In the past, I was in the process of hiring a new service advisor and I had my two service advisors take him out to lunch, and he actually called me to let me know that he wanted the job—they had made that big of an impact on him.

TRENT & KENDRA PHOTOGRAPHY

In a span of four months in 2006, Robert Ohlmann’s father passed away from leukemia, leaving behind his auto repair business, Tony’s Brake & Alignment, in Louisville, Ky. Ohlmann transitioned from service advisor to manager quickly, uncomfortably, and without guidance. “I was 26 years old at the time and I became manager of the shop,” Ohlmann says. “We had a shop doing $2.2 million the year before and we had 21 employees at the time.” His father, an independent worker, kept business advice to himself. “We were left without our leader [and] left without a plan of who was going to take over,” Ohlmann says. “Being the son and next in line, I assumed that role. I think that role was put on me; I didn’t know what I was doing.” Two years later, in 2008, the recession occurred, ripping fleet business from plumbers and electricians right out of the shop’s hands. The shop lost $1 million in sales. It was the business’s lowest point, Ohlmann recalls. “I decided [that] I didn’t know what I was doing,” Ohlmann says. “I was working longer hours and shop morale was down; I really started at the point of looking to get out of the business.” In 2014, Ohlmann connected with shop owner Dave Justice, whose story of struggle particularly spoke to him. He needed a mentor, and Justice provided the guidance for which he had been searching. Today, Ohlmann manages a staff of 15, producing an annual revenue of $2.1 million. It took a while to find his footing, but today he abides by guidance—whether it’s 20 Groups or coaches. Through the help of others, Ohlmann was able to organize his shop and become a leader for the business and his staff. Ohlmann shares how he found light in the darkness and is able to lead his team today from a distance.

A New Approach Robert Ohlmann has learned how to take a step back and successfully manage his employees during his time as an owner.

Over the last year, we’ve focused a lot on marketing in our business in order to continue growing year after year. To emphasize its importance, I created a marketing budget which isn’t something that I’ve done in the past. Being in a family business that has been around for so long, we went off of wordof-mouth, which isn’t really effective in today’s world. I want to grow and continue the success of my business, so I’ve worked on putting together a marketing plan to accommodate the business. There are a few things that I’ve adjusted because I realized that what I was doing just wasn’t working for the business. I think that says a lot about our culture and everything that we have going on in the shop. I would say that we have a crew here that really cares about one another. I made a lot of adjustments to my shop because I quickly realized that yelling and screaming at my employees wasn’t getting me anywhere. I’ve learned how to handle situations and really take into account how to manage different employees. I’ve done a better job of taking a step back and taking a moment to myself whenever something comes up in the shop. How you approach your employees can really set the tone for how the conversation will go, I’ve learned. I want my employees to be happy with where they work. In some of my classes, I learned how impactful it can be to fully listen to your employees to understand what an issue is. I’ve found that work-life balance is a huge issue

in today’s industry, so that’s something that I’ve taken into account. When you really get to know your employees and recognize what their motivations are, then it’s easier to manage a person, in my opinion. On Wednesdays, I focus on marketing for the shop from all of the information I gather on Monday and Tuesday. I’ll

focus on who came in and what people typically came in for. I want to grow the business, so I spend more time working on marketing than I have done in the past. When I’m working on marketing, I really look to see what is working and what isn’t. We have a fairly large landscape of an audience. We have advertisement on the radio, postcards to our customers, social media, and we work with adwords. My approach is to see what’s working best and then to adjust from there.

I have a weekly meeting with my business coach on Thursdays, so I typically prepare for my meeting during the morning. We have a call on Thursdays,

so I spend the first couple hours getting everything ready for the meeting. After the meeting, I’ll take all of that information and develop a plan of action. In the past, I was tired of wearing so many hats because I believe that an owner, a manager, and a service advisor are all full-time jobs, and it’s not easy trying to take on everything at once. I was involved in everything in the business, which made it impossible to focus on other parts of growing the company, such as marketing and monitoring productivity and efficiencies in the shop. It was important for me to remove myself from those roles and in listening to smarter shop owners, I learned that as an owner, you have to work on the business—not in it. That’s really opened up my eyes tremendously. 0 4 .19 / R + W / 6 9

Columns

THE FIXER Aaron Stokes

THE DEPARTMENT LADDER The secret to dialing in your business

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dust settle, to then hire somebody for the office, or roll out a new office system. Shop owners want to do both at the same time, but that can cause side effects. Some of these side effects are positive, and some of them are going to be very negative. If you’re not careful, this process can really end up handicapping the business. Owners need to see if they can discipline themselves to say, “OK, which department is more broken than the other?” and then go to that department and fix it. As an example, let’s say you have a shop with three technicians, you're doing $90,000 per month, but you want to do $120,000. Your front counter can do it just fine—they might even be able to do a little bit more. Right now, the bottleneck is at the back. So, you go and increase your marketing, and then you go and hire somebody for your “factory.” Now that your factory is performing at top level and outrunning the front office, you go and hire somebody for the front or bring in a new system. And you continue to go back and forth and back and forth as you get your business dialed in. But, you never want both sides to be 100 percent dialed in. If both sides are 100 percent, your business has flatlined and stopped growing. Some of you may be thinking, “Hey, Aaron, that’s not true, my business is still growing by this small percentage every single year.” But is that because you are raising your prices every year? Don't get me wrong, if you have a bunch of C-level employees that are slowly

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

and surely getting better every year, then, yes, your business is growing because the talent of your current people is getting better and better each year. But eventually, that talent is going to level off. Eventually you're still going to cap out. The only true way to grow your company is to pick one of your departments that’s the most maxed out and provide more capacity, whether that's in the front or the back. We must understand that our business is unique to others out there because a lot of businesses have a sales department, but the sales department does not have to coordinate near as much as we do. A lot of businesses have a factory, but they don't have to coordinate with their customers’ schedules like we do. And, they have the benefit of performing a repeated task over and over and over. We do not. Because of that, our business is truly unique. Sadly, we sometimes don’t see it as unique. Every single repair shop out there is different from one another. There is no one size fits all. There is only a spirit behind the rule that you need to follow, not an exact rule.

FUE VANG

Recently, I got to speak at a conference on how owners can get their shops’ front and backend departments to work together. One of the biggest revelations I felt a lot of the attendees had, is that the front and back of the shop are totally different departments, and truly different businesses. Every shop owner out there has a factory departement and a sales department. And they really are run totally different. If we focus on that, and understand that these two different businesses need to be managed differently, talked to differently and are driven by different goals—a breakthrough can happen. But if we don’t, we are never going to get our desired workflow. One of the things that I push with everybody, is that whenever you fix your sales department, you have to get everything dialed in. And then when you fix the factory department, you have to also let the dust settle there. If you try to do both at the same time, you are going to end up breaking your business. Your company will go backward, you will lose money for a couple of months, and it’s going to cause major issues. The fact is, focusing on both departments at once will paralyze you. Now, wouldn’t it be quicker to focus on one department, and then the other, and then the other—like climbing up a ladder: left hand, right hand, left hand, right hand. Now, I understand that for a lot of shop owners it’s nerve wracking to have to hire a tech while the office is understaffed, and then wait to let the

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I’m driven by the families we keep safe. There’s nothing more important to me than doing right by our customers. My shop thrives on the trust and relationships we earn every time our bay doors roll up. Our reputation depends on it.

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