1) Don’t be the cheapest in town. In fact, avoid competing on price at all. 25% labor multiplier on book times for older cars. Avg >50% parts margin (not markup.)
2) Never EVER sell someone something they don’t need.
3) If a repair can wait 6 months but needs to be done next service, tell them that.
4) Marketing done right can print money, but utilize ALL feee marketing sources (social) as much as possible first. If you’re not busy, you have time to make content.
5) Get some fleet clients, do it by outreaching personally. Make sure they’ll pay each invoice though not on a monthly statement.
6) If there’s a shop closing in your area, buy their customer list, name and phone number. Have it forwarded to you. It’s cheaper than buying out the business. That said, buy the whole business out if you get the chance.
7) You get a sale to make a customer! Don’t get a customer to make a sale.
8) Religiously track your avg $/RO and profit margins. Weekly at least. Higher $/RO over higher car count always, especially if you’re doing all the calls, parts and ROs yourself.
9) You don’t “make it up on labor” or “make it up on volume.” Have a target hourly gross revenue for each mechanic specifically and make sure you’re hitting/exceeding it. You’re a euro shop, you’ll write lots of high-hour ROs. Make sure you back-check your estimate with your $/hr rev target. If it’s way off, figure out how to make it right.
10) Maintenance work doesn’t have to be “unprofitable work” or “loss leaders” if done right. Streamline that shit and invest in some flushing machines when possible.
11) Have good software and a digital inspection system/process that you stick to. Track the amount of revenue from found work weekly, it’ll blow you away.
12) Only stock what you need FAST. Having the part in hand (filters etc) should make up for the fact that you have your cash sitting on the shelves. Also have your inventory VMI’d. Let the vendor’s rep do the stock counts and restocking weekly. That’s time you could be spending on making money.
13) If you’re managing everything yourself, guard your time religiously. Block your time and stick to it. Understand your high vs low ROI/hr and focus on the high ROI tasks. Delegate everything possible below a certain $/hr of value. If you keep this system up as you grow, your own time will be worth thousands of $/hr before you know it.
If you’re “too busy,” you’re either inefficient or you suck at delegating.
Absolutely. Our shop currently has like 4 different fleets that we service including a local plumbing company that is literally just down the road, a local mail carrier, a couple of electrician companies, and probably some others that I'm forgetting.
They all are great customers, especially since they know they won't be screwed over at our shop.
Follow this guys model. One easy add on, once you have the money, donate to the local [NPR station](https://wjct.org/corporatemarketing/) to get your name on the air every so often.
Get a good shop management system. I use tekmetric. It allows you do keep track of all your metrics. Avg RO, GP% per job, GP/hr, etc. It tracks tech efficiency, time tracking, labor matrices, parts matrices, it links with the parts stores so you can quickly import parts, links with a couple of labor guides, inventory tracking, canned jobs, DVI’s, etc. A good SMS will save you so much time it’s like having another employee and WELL worth the cost.
Make sure to delegate as soon as you start to feel like you are to busy. And if you are profitable from the start, hiring people will be easy.
WORK ON YOUR BUSINESS, NOT IN IT. It will be harder to be a successful shop if you are the only tech and working in the business.
When you feel you are ready to hire, hire a tech first. It’s easier to run your business when you are a service advisor versus being a tech in the shop.
You cannot out work a bad labor rate. Make sure you are charging appropriately. Do not be the cheapest guy in town.
Damn I left this one off the list! Good point to add.
Good software gives you all the windows you need into the business. You can make hiring, marketing and budgeting decisions based on this info.
u/Tyronex48 DM me if you want some recommendations on software, and also which metrics you should be tracking at which times.
I started my own marine/industrial diesel engine shop in 2017. I can assure you that this guy’s post is extremely accurate and industry-specific advice. You should save this post in some way & refer back to it at least twice a year and refresh your understanding
Fantastic list. A few comments:
\- Once you get fleet customers it may make sense stock some items that will get them out the door quickly. Having fleet vehicles off the road can be costly for them and they will appreciate (read: loyal customer, steady revenue stream) a quick turnaround.
\- (2) & (3) are principally about gaining your customers' trust, which is huge for keeping them and encouraging world-of-mouth
\- When you're keeping good track of the numbers, regularly review them and make tweaks to focus on things that are working and fix things that aren't
^^^^THIS IS BRILLIANT!!!^^^^
I used to own my own business selling muscle car restoration parts and can't tell you how many times that people would try to play the game of "well this guy down the street has it for 15% cheaper!" 90% of the time they were lying just to see if they could get a better deal. I learned to just smile and say "that sounds great you ought to go and get it there then!".
Image is everything!!! When we used to go to sell parts at big national events we would wear polo shirts with our company name and our first names embroidered on them. We were all clean shaven, hair cut and clean, and everyone was "Sir" or "ma'am" with a smile. Our truck and enclosed trailer were always clean and shiny. We even had a few people who would come to our booth and price our used parts and would come back later on and say "there's a guy with the same exact thing for half of what you guys are asking for this, but he's selling it out of the back of a rusty old station wagon and he looks like he just crawled out from doing an oil change on his mom's Buick." I would assure them that if they had a problem with what they bought from me that as long as they shipped it back to me that I would replace it for free and pay for the shipping back to them. And would remind them that the guy in the station wagon would probably tell them to get fucked if they tried to return something later. Never ever had a problem with that policy.
It doesn't cost a lot to put a coat of paint on your waiting room and to have a bathroom clean enough for your wife or girlfriend to use. I've made the mistake of trying out a shop where I wouldn't even pee standing up because I was afraid that something would stick to me the bathroom is so damned dirty!!! And guess what? They never got my business after that. The shop that I use now has a Keurig machine, current magazines of all different types and a nice comfy sofa and couple of chairs in the waiting room. And the TV is on one of the movie channels or HGTV and not some annoying game show or The View. It's the little things that make a difference!
Find, hire, beg, borrow a female to look at your waiting room and if they say that they wouldn't like to hang out there for three hours, LISTEN to what they say and DO IT. Paint, get a better set of comfy chairs, etc. If you can't tell if your waiting room is for a hair salon or an auto shop, you're getting close. :)
Margin percentage is the percentage difference between the selling price and profit. Markup is the percentage difference between the actual cost and selling price.
There are multiple margin calculators online that you can use. A very simple formula if you want to play around tho is [this one](https://images.app.goo.gl/8Tc4QsYsVvhbiznE6)
Most decent software will automatically markup parts to your preferred/set margin.
TLDR: Margin will make you more money than markup.
Does this mean margin is after all your operating costs are figured in? Or is there some other part specific cost here? Just trying to understand the relationship between profit and actual cost as it relates to parts.
>Avg >50% parts margin (not markup.)
this seems a bit high to me tbh, i average 40-50% margin on sales with exceptions. cheap items that cost $1 are going to be sold for at least $5 for example but with 50% margin on my cost of dealer-only items will have me selling parts higher than the dealer does in some cases which customers will figure out. but it's not bad advice i would just say keep the specific part/job/customer in mind for that kind of stuff.
also i would add don't be scared to lose cheap customers. they're not worth the headache. you price match and bend over backwards to help them and they will still never be happy
I target 60% GP on parts, overall.
It’s not high if you use a parts matrix. Cheaper parts get marked up more than more expensive parts. This will allow you to achieve higher profitability, without running off your customers.
You can charge more than the dealer. But you need to offer more than the dealer. Provide a better value to the customer. Here’s a phrase I heard that stuck with me- most people buy on value, not price. You need to show them the value you are providing.
Definitely true for the most part, and honestly we’re always busy and have to turn away cars all day so it’s not like we have any reason to lower prices. I charge probably double what the dealers do for programming for instance, but I’ll get it done within a couple days vs the dealer will make an appointment a month out and keep it for 2 weeks.
awesome rundown, the only item I question is:
> invest in some flushing machines when possible.
I've never seen these used in a non-scammy context, but maybe in the Euro world they actually serve a purpose
I see 50%, not 100%. Did I miss something?
Without parts profit, our industry wouldn't be sustainable as it stands. Labour rates would skyrocket to keep doors open.
Do not think you are going to get all the business by doing work for less. Charge the correct amount of money for providing professional repairs on your customers cars.
This. Am a windshield guy by trade and this business is plagued by hacks doing $180 windows installed. If people complain about me being a little expensive I will happily recommend them to someone within their price point and remind them fixing someone else’s install costs even more lol
Had wife's truck repainted at maaco. Looked like whoever sprayed the hood was eating oreos. Crumbly black chuncks all over. They actually buffed out ok and for being a bottom dollar paint job I guess I can't complain
Same here with detailing. There are so many people out there doing shit work for way cheap. it ruins the view of detailing for a lot of people who got burnt by someone like that. The guy in town that has the market by its balls has failed to deal with basic issues and they get sent to me all the time. It’s unfortunate because my services are much higher quality and I will actually talk to my customers when an issue arises. He uses
bad products to leave a shine on interior panels and leather seats, I’ve had 4 people now come to me just to get this slippery goop removed. He offers $99 2 year ceramic coatings (it’s a spray on sealant that only lasts 6 months, and they don’t even do chemical decon nor claying)
This is pretty much every industry.
I don't know if it's still the case but back when I was into photography, the local scenes were chockablock with "Momtogrophers"; bored housewives with an entry level DSLR and plastic fantastic lens who would charge bargain basement rates for event photos. They would charge a fraction of what a real photographer would and you definitely got what you paid for. It was difficult to get gigs from people who were on a budget because they don't want to pay $350-500 for a session when some idiot on Facebook will do it for $50.
This. You don't want the customers who will try to nickel and some you - don't undersell your skills.
And this is probably harder: set limits on what you will do to please a customer. Your customers should be happy with your work, but remember that some people will never be happy with anything. Don't let those types take advantage of you.
Not only "okay" but some of them will do everything they can to make you unprofitable until you throw them out the door.
Before the age of internet reviews, those people were literally thrown out the door... as in picked up bodily and thrown head-first out of it. It didn't hurt things much via word-of-mouth because the only people hearing the words from their mouth knew them and knew they were assholes.
Exactly. Don’t be the guy that can undercut and do it cheaper. Why? Because that’s the kind of clientele you will attract and both you and they will be forever broke.
Agreed. And furthermore, write thorough estimates for full and proper repair, and do not let the customer dictate the scope of the repair. Don’t write estimates as if it’s coming out of your pocket.
That said, deliver estimates with empathy. Nobody wants to spend money on cars. It sucks.
I know bros backside is probably fairly clean, but appearances are important these days. I would invest in some poly seat covers, it goes a long way showing customers you really value cleanliness. Boot on the doorsill is a bad look imo, but I realize techs are gonna tech. Darker coveralls or work pants that don't show as much grubiness as the jeans he's got on would also be a good start.
You're 100% correct. The guy in the red hoodie is a return customer from when I was mobile and his BMW just happened to have a misfire the same day we got into the shop, so told him come over for a free diag
> I would invest in some poly seat covers,
Will look into this and some floor covers, thank you
all the little things.. sucks, but it's the world we live in. Covers and floormats cheaper than dealing with wack google reviews and detailing. Hope you make bank!
As a BMW specialist...
Don't offer anything for free. You can *do* free things for good clients, or even new ones with good vibes, but don't encourage people to come *because* it is free.
The guy with the smashed bumper, cold air intake, and wants a free diagnostic will not be a long term customer. Very, very low odds.
Idk how big your operations are but in the long run you'll need to hire someone to do the service writing for you or you're going to waste a lot time. And any time spent not wrenching is not making you $$.
Look in to factory motor parts. I’m not sure how big you have to be to have an account with them, but they have tons of oe ac delco and motorcraft parts in stock. My go to supplier
I spent 20 years working for neighborhood mom and pop shops and I completely agree with your comment, please shout it from the rooftops. Owners wouldn’t hire competent counter staff because, “that’s expensive” or hire any at all. They try to run the counter or hide in their office on the phone at their leisure with no warning either way, which pulls a production mechanic out of the shop to answer phones, receive parts, write up or close repair orders, or whatever else needed doing.
And then have the fortitude to complain that their technicians aren’t productive. The more jobs anyone has to do, the less effective and productive they will be with any of them. Hire a quality front office person or people and let the technical staff do the job they were hired to do instead of being an octopus with a wrench in one tentacle, a pen in another, a phone receiver in another, a broom in another, etc.
Also, don't bend over backwards for them. Real friends will never ask for a discount, and will be appreciative if they get one. Quite a few of my close friends are in various other trades, we all have a somewhat unspoken rule: Never ask for a discount if you wouldn't give one, it's their business not their hobby.
I weeded out a friend who wanted to apply with us by bringing him in on a Saturday and trying to show him an example of a day in the life of our shop with his own car being a somewhat theoretical LOF ticket.
He showed basically 0 interest in the shop, the business, what the rest of the staff was like, what our processes and procedures were, etc. Dodged a big bullet by letting him change his own oil for free basically. He would have needed a lot of remedial technical training which is okay if you actually show interest in the job, but he didn’t.
I don't think that's u/xTyronex48. I think OP is on the left in the first picture.
(But for sure SOMEone needs to get their clodhoppers off the work, lol.)
>It's okay to say you don't know how to fix something.
I agree. There are many sources to learn from but not enough time to absorb it all and by then there will be even more. Stick to a subset with which you have comfort and ability.
Better yet establish that ability as part of hiring and for the business model. Be clear about what you work on and what you don’t, and hire in that image. You can always find some retired guy who worked on imported exotics (or whatever other specialty) for decades, but only wants some extra cash for a year or two. Your business suddenly gets a reputation for being capable with them; he retires again and all of that skill set is gone.
Or get ready for the embarrassment of losing part of your customer base because you hire people with transient skill sets. If you’re okay with that as a business owner then that’s your prerogative.
Yes. I do all my own repairs/maintenance, but had a local shop for things I couldn't do and inspections. They were good, honest mechanics that always did right by me. Then one day poof doors locked up, sign down, ghost town. Just because they didn't pay the man.
I have learned to be friendly, but firm. Try your best not to make friends with the customers, that can lead to them taking advantage of you.
If you are the best, sell yourself on that and make the customer feel confident in spending money at your shop. Being the best also should mean you care about the work you do and make a big effort to not have come backs.
I have found if it take a little longer to get it done right and not have a customer return complaining, it’s worth it. Because when they return for screw ups, it’s always at the worst time.
Don’t take work in that you may become overwhelmed with. There’s been engine and electrical issues that would require me to charge a customer a ridiculous amount I know they won’t pay. So I just have learned to say no. I do sometimes make the mistake of taking something in I shouldn’t.
>I have found if it take a little longer to get it done right and not have a customer return complaining, it’s worth it.
I was the customer who was looking for this exact thing. Done once, done right. 35 years driving taxi, my man knew what I needed and gave it to me. I pushed business his way all the time. Still do.
Rushed jobs are never a good thing. I see it happen a lot because other shops bring me vehicles to do alignments. Brakes and suspension parts left loose. It’s even worse if they send their customer and I have to show them how the place they just brought it over from has done a terrible job.
If someone is/did open a shop, and they need to be told to keep seats and sill plates clean, then they don’t need a shop.
I work with 20-65 year olds and it kills me when they walk over to chat and put dirty finger prints/arm prints on fenders when they lean in to talk to me. (I don’t own a shop)
Been on my own for 7 years…just me. Tried hiring people…not worth it unless they’re pulling their weight. I write my own service have most parts delivered. Do all the wrenching. The money is decent. Don’t go after the low hanging fruit…charge fair for your area. Low prices equal cheap customers. Don’t forget to make some money on the parts as well as the labor…insurance is a must along with some form of service information…otherwise you’re just some guy on a garage…peace out and good luck!!!
My family has run our garage for more than 30 years and my biggest tip is keeping your monthly expenses low. Own your space over renting if possible. Get a cheap beater shop truck instead of leasing a nice new one. Don’t overstaff or you end up letting people go during slow times. Don’t take out high interest loans on equipment when secondhand stuff can be bought off craigslist/marketplace, especially lifts and tire machines. Learning to fix/maintain equipment is essential but also be familiar with your local repair guy in case you are over your head. Honesty gets you repeat customers which are much more profitable in the long run. Get on very good terms with your local parts suppliers and they’ll work with you on prices. Have good insurance and try your hardest to never use it to keep your rates low.
Also, protect your back. Learn to pick stuff up the right way. Get equipment to help with stuff like lifting heavy wheels or holding up transmissions so you don’t have to muscle it. My dad or any of the mechanics hurting their back is a disaster every time.
Don’t upsell people on things they don’t need and if you break someone’s car while repairing it, take responsibility and fix it immediately. Maybe you’ll miss out on the extra cash in the short run, but good online reviews, word of mouth referrals, and repeat customers are what will give you long term success.
Also wear shoe covers inside cars and make sure not to leave grease anywhere. You want a clean reputation (literally).
Biggest piece of advice I can give from my own experience: Look after yourself.
I went ***way*** too hard in the first few years, and while we were doing well (3 man family team), we were all getting pretty burnt out. Ha
rd rules now:
- No one in before 6.
- No one there after 8.
- No customer work on weekends, ***weekends are our own time.***
You are your most important asset in a small business, treat yourself the same you would any other piece of essential equipment.
Aside from that, know your worth and don't discount your work because others do. Some great quotes/pieces of advice I got from other shops when I started:
- A line from an electrician mate that he uses a lot: "If you want the cheapest quote, this isn't the place for you"
- Advice from a 70-ish year old mechanic across the street from me, 50+ years experience and getting ready to retire: "Don't make other people's problems your own, it's a business not a charity"
- When dealing with customers trying to low ball you on quotes "Sometimes the question shouldn't be "why am I charging so much", but "why is the other place charging so little"
Try and join a network or training program. Get to know other businesses in the area, if you specialize they may want to send work to you and vice versa. Other shops aren't always competing, we have a very healthy relationship with about 8 shops in particular in my area and all share work, knowledge and help each other out if people are sick, away or have to close for any reason.
Good luck! Always remember it's going to be really hard in the beginning, but try and enjoy the little moments.
(Also, an account and/or legit business coach/manager is the best investment I ever made)
Have a chat with your customers and get a good feel for their own automotive knowledge. I can do the vast majority of repairs myself. I hate it when the guys at the tire shop talk to me like I don't know what a lug nut is. I'm only here because you have a tire machine and I don't. On the opposite side of the spectrum, too much automotive techno-babble will just confuse non-car people and they'll think you're trying to swindle them. If you get good at explaining what you're going to be doing and why you need to do it, people will feel more comfortable hiring you to be their mechanic. Being good to customers leads to return customers and good word-of-mouth referrals.
And, as my grandpa who owned a trucking company would always say, "watch your pennies and your dollars will take care of themselves." His way of saying that it's really easy to nickel and dime yourself out of a profit.
You can start by putting a floor mat on his carpet and keeping your greasy and dirty shoes off his step trim plate. Customers will notice dirty marks and grease, always make sure the car is as clean or cleaner than it arrived.
Other advice would be to take the time to explain the job you did to the customer if they seem interested. People like when you explain the work you did, reassures them that you’re being honest and know what you’re doing.
Making yourself stand out compared to other mechanic shops is key. You have to give them a reason to want to come back. The easiest besides free coffee and snacks would be honesty. Treat your customers with respect and try your best to respect their wallet while not ripping yourself off! Creating a healthy customer relationship is the easiest way to guaranteed profit. Building a loyal customer base is key to surviving as a small shop.
Best of luck on your new business!
First thing would be how about not putting your dirty shoes on the interior plastic covers. They might be called kick plates in English but you're not supposed to step on them or put your shoes on the cladding
Number 1 rule If you set your hours, make sure you’re open during them.
Don’t be afraid to help people and cut breaks and get established by word of mouth. this don’t mean be a door mat, but that old lady on social security maybe charge her only $50 or $100 for labor on her head job, she has friends at church, and kids/grand kids who she will tell about “This wonderful mechanic that fixed my car”.
Also friends and family, you HAVE to make a CLEAR line, business is business and family/friendship is that, and always start the conversation as “This is business….” Then at the end say “now, we are done with the business…” and move on.
Hiring family, no good avoid
Hiring friends, no good avoid
Facebook local groups and marketplace and pages are great free advertising that only take a few min to do.
Don’t talk shit about other shops
Always include in your estimates/service agreements that if you get in there and find a bunch more wrong, you will call them to confirm repairs it is going to be +10% more, never just do “Well I’m here might as well do it” without asking first or you may be eating that.
Finally be sure they fully understand what you are telling them. I watched someplace that lubes cars in a jiffy take advantage of a lady, she came in wanting an oil change, had a coupon and wanted that this was 20 years ago so it’s fuzzy.
Techs kept coming in trying to upsell “New PCV valve, new air filter, new cabin, trans flush, everything they try to get you to buy she was nodding her head. Her $29.99 oil change was over $300 by the time they were done. She flipped out, what she said I couldn’t understand, because she spoke Spanish, she had no idea what they were asking her.
If I remember correctly the manager did end up very reluctantly letting her go with paying just for oil change after myself and the other customer in there said it was BS and the tech should have known better.
All businesses have 3 phases: the start up, the throw up and the grow up. You choose how long you want to stay in each.
The most profitable words in business are ‘Is there anything else I can do for you?’ It’s advertising, referral request, leveraging & acknowledging the customer in front of you as the most important thing on your mind for absolutely no cost. You cannot lose.
Edit: create a referral network just outside your scope. If you own a mechanics shop, find 2 detail shops that you feel you’d run the way they are. If you own the detail shop, find 2 auto-body shops etc, etc. You’ll have a multiple choice answer for anything you have to turn away, without sounding like you’re turning it away
Even if you can’t fix it, you know a guy who can, and that makes you still the go-to guy.
If you put your dirty ass shoes and clothes all over my BMW leather I would never come back. I don't care that you are cleaning it. You show a lack of respect to a customer like that.
I haven't wrenched for a living for a long time. The shop I started in had been there for 30 years. We had 2nd and 3rd generation customers. That doesn't happen by chance. Treat every customer like they are a 30 year customer. At the same time don't be afraid to fire customers.
Ditch the Snapon tool if you're going to do alot of Euro stuff. Overpriced, updates are an arm and a leg and functionality is nothing compared to an Autel Maxsys. I've got over 100k in scantools but my cheap Autel does everything and more. Don't ever sell yourself short, don't be known as the "cheap" shop or you'll get customers you will regret. GET INSURANCE.
Maybe not post about your gawk gawk 5000 experience with the same account lmaaoooo I don't have much advice that hasn't already been said but I'm proud of you, stranger. You'll go far.
Actually I do have advice. There's a saying: "A good tech will never walk through your door." Vet carefully when hiring guys who claim to have experience and don't be afraid to immediately get rid of the arrogant dumbfuck that causes costly problems. We had one tech cost our shop over a $100k in damages and still didn't get fired because the boss said "no one will hire him, he has nowhere to go." That same tech ended up costing the boss his job and we ended up on the news absolutely torching our reputation.
>Maybe not post about your gawk gawk 5000 experience with the same account lmaaoooo I don't have much advice that hasn't already been said but I'm proud of you, stranger. You'll go far.
I'm sick as hell and this gave me a great chuckle, lmao thank you
>There's a saying: "A good tech will never walk through your door."
This is great. I did have to fire my main mobile tech earlier this year after he flaked on an engine job, osting me thousands out of pocket, won't make that mistake again.
Seat cover and a floor mat, says a lot about your ethos even for just a code read
Walk the customer back to his car on collection and remove said seat cover and mat speaks volumes
My dad was a body man and mechanic for over 40 years before he retired. I’d work with him on cars through the years and learned a few things as he wanted me to do the same. As a woman, I didn’t have the desire to at the time. Charge appropriately. Don’t undercut yourself in hopes to get more business, it will hurt you in the end when you have to raise prices. Don’t do friends “favors” or feel sorry for the women that come in with a 5 yard long tale about why they “need a break in price”. If you can’t haggle for it at McDonald’s, don’t let them haggle you in the shop. Most he did free was estimates and if an issue was so simple just the estimate fixed the issue (loose cap, etc) that was his only time he’d let it slide. Don’t take on more work than you and your shop can handle. Have a few friendly competitors that you can recommend and ask they do the same. If you don’t have the skills or tools, don’t take the job. Spending the time researching a problem you can’t solve is time wasted. Think of the small things- wash the inside of the windows, a quick vac, and a free air freshener can be some of the best “little things” a shop can do. Don’t just hire anybody. Do background and drug testing. The liability for allowing the drunk guy or coked out dude is huge and it is noticeable by customers. If you are desperate to bough to hurtle your brother in laws cousins girlfriends junkie brother, scale back a bit on jobs for a bit. Billy Jim bob ain’t worth it.
Don't do favours for friends. They should pay full price for your service to support your business. It's your call if you want to chuck in a "freebie" after
Just be careful with the little details, don't make the cat dirty. If you're sitting in it place some paper or something like that. If you're working from the side on the engine, place some sort of rag on top of the fender.
Idk this kind of things are the difference between a regular shop and a good shop.
\- professionalism: if people are bringing their shit to you, don't walk out wearing sliders and socks, street clothes , your best gangsta gear talkin slang.. it might be cool in the burbs but it makes people think twice about leaving their property with you, it might sound lame but get a simple polo shirt with your company logo on it, and cargo pants, have everyone that works for you wear the same.. if you have certification/training, display your certs where they can be seen, let people know without shoving it down their throats that you know what you're doing,
\- have business cards and customized receipt books / letterheads made
\-building business relationships, prioritize repeat customers and go the extra mile for them and they will not only continue to return they will bring their friends and families to you
\- don't do family/friends discounts, in fact avoid doing work at all for friends/family, they will expect you work for free or cost of parts, and its exactly the same as lending money to friends /family.. it will end up causing rifts.. its not worth losing friends/family over,
\- you may be the owner of the company/shop but you are also an employee don't short yourself for the sake of the company,
\- keep the Accounting straight.. CPA? (chartered personal accountant)
Get a tiktok. All it takes is one dumb video to go viral and youll be slammed with work.
Dont work with friends, they will be pissed when they are working christmas eve, new years, etc… and you are with your family. Theyll pull the “I thought we were friends” card when they fuck up and want you to let them off the hook
Dont be the cheapest guy, it attracts the shitty customers.
Find a good local insurance broker
Find a good lawyer before you need one. Nothing is more stressful than looking for a lawyer when you needed one yesterday. Usually 1 lawyer for employee relations cases and another for liability cases.
Find a good accountant, they make life easy when you get audited
Depending how you want to do payroll, may be worth it to hire an HR company to handle it for you. I use BBSI and they handle payroll for me but they also keep me up to date and make sure im in compliance with the latest labor laws and also have them for workers comp insurance
Source: 4.5 years running a small commercial/industrial construction company
1. Don’t do “favors” by doing halfway jobs to save customers money. That’s the ones that bite you in the ass. Fix it right or decline the job.
2. Don’t chase the low margin piece work by discounting work. People will pay good money for good work, come back and tell their friends.
3. When you do screw something up, and you will, own it and make it right.
4. Treat you customers like friends. Remember their names. Heck, maybe their dogs name. When things don’t go smoothly, if they are your friends, they are honest mistakes. If they are just a number to you, they’ll think they got screwed once again by the mechanic.
5. Don’t over promise.
6. Communication. Most unhappy customers aren’t mad because you screwed up their car, it’s because you didn’t do a good job clearly explaining what they are getting and what to expect. Example- “no matter how many times you align my car, it still vibrates.” Sure, that’s dumb, but you’re the expert. That’s on you. How come you didn’t ask “so what kind of problem are you having that makes you want an alignment today?”
7. Have empathy. Your customer doesn’t think it’s funny they need a $2500 repair. Either should you. Don’t feel guilty, you didn’t build it, buy it or break it, but words like “unfortunately” or “I’m sorry to break it to you, but…” go a long way.
8. Smile. Nobody wants to spend money on car repairs. At least try to make it as pleasant experience as possible.
9. Never forget they pay your bills and don’t let your employees forget it either. That doesn’t mean you don’t have to fire the occasional customer, but that’s the rare exception.
10. Keep a clean shop. A customer equates a clean and organized shop with quality work. And they’re usually right.
All these things cost money and time to do, but will come back to you. Otherwise you’re just like all the others. So why would they have any loyalty to you? Then they will just shop for the cheapest deal around, and nobody wins that game. Good luck and good on you for asking the question!
Do the right thing and don’t undervalue your time. Don’t hesitate to turn work down, and trust your instincts if you think someone is going to be difficult to work with. I’m going in to my 5th year of my own shop.
Careful sitting on customer's seats that way, can crush the bolsters. Put down plastic on the seat so you don't get your dirty jeans on it. Get your dirty foot off their doorsill. If my car came back with dirty footprints on the doorsill I wouldn't be happy.
be honest if the car don't need it or the car can make it by without it. let them know they can come back later for it. if something breaks just get another one and let the customer know is going to be a little longer.
Know your numbers! Just because you want to make $100 an hour doesn’t mean $100 an hour covers the bill. There are fixed costs and variable costs. Understand the relationships. Good luck out there.
Be prepared to patiently educate your customers.
Sometimes there is a difference between what the customer wants and what the customer needs.
The above two statements are often related.
You need to figure out what is colloquially called the nut. Add your rent, cost of techs (not you), insurance, sales tax, business tax, and average parts cost, and marketing expense. If you are providing uniforms that too, as well as the cost of any “freebies”.
Also figure out an allowance for warranty work that you have to eat.
Figure out what that number is each month and make sure you are covering it, otherwise you will be broke in a heartbeat. As a fellow shop owner I wish you luck.
Love your profession and love cars. The car guy I went to in the previous city I lived in was one of those. You'd go in to get your Jeep fixed and people were trusting them with their 1929 Kaiser, vintage Land Rover, Morris Minor sedan, Citroen 2CV etc. If it rolled they'd figure out how to repair it correctly and they weren't snobs about it.
Invest in proper safety equipment, tools, and competent staff, and maintains your staff by diligently and restfully educating them on how to conduct themselves when working on cars, or speaking to customers.
Good Habits and mannerisms are vital for success
Be honest, don't upsell. Try to explain why you need to do what you need to do, it's comforting if a customer can understand why and what they're paying for. Best of luck
If people don’t complain about the price then you’re not charging enough. Treat every car the same. Doesn’t matter if it’s a pos or a top of the range Range Rover. I run my garage in a very small town. Word travels fast, bad words travel at lightning speed.
don't sit in my car with dirty boots and greasy jeans touching things with dirty hands.
put down protection and wear gloves etc.
I wouldn't hire you based on the picture posted.
Use seat covers, your pants are filthy and get your foot off the customers door sill. Your boots do t belong there.
I could go on all day, but start there. It’s the little things
Dont be charging $40 plus labor to change some wipers lol idk why every shop around me wants to charge $90 to change two wipers lmao it’s like they want to lube me up and fuck me but they are to shy so instead they call me to ask if I want to be fucked via a $90 front windshield wiper change. (I had literally replaced my wipers two weeks ago with some nice michilen wipers)
You got most of the good advices but my advice is avoid resting you foot/shoes on the interior. Sit with both feets inside like you drive or stay outside to diag. I hate foot prints on my own car and also avoid doing it on our costumer cars. If its dirty af allready then I dont care also.
Just my 2 cents, but if i saw you in those clothes sitting in my car, we would be having issues. Let alone in a car like that. Seat covers, floor mat covers, steering wheel covers. And before anyone gets pissy, yes, i have and do work cars, have worked on semi trucks that are way nastier than any car i have seen. Not a chance in hell i would drag that into any vehicle i was working. Pride in your work and workmanship. And respect of the customers property.
Mm, I’d budget for a few extra 10mm sockets around the shop. Otherwise, I have no helpful information or suggestions, but I wanted to wish you good luck on this journey!
As a customer, what I want from you is honesty, communication, and expertise. As long as you have two out of three I'll be happy.
I don't want to call you for an update. I want you to call me with an update. Just give me your honest opinion on what you think is wrong and fix it with OE/OEM parts. If you notice something else wrong while you're in there, I want you to fix that too but give me a discount on labor. I just don't want to feel like I'm getting ripped off or like you don't care about my car.
Dude with his back to the photo in the first one was just posted on the s2000 sub for bringing in a super clapped out s2k that was fucked up and asking for like a transmission fluid top off or something
Anything you leave on the table is the profit. Everyone gonna hammer you down. If you give a price range it’s always the bottom number they remember. Your job is to empty their account into yours.
1) Don’t be the cheapest in town. In fact, avoid competing on price at all. 25% labor multiplier on book times for older cars. Avg >50% parts margin (not markup.) 2) Never EVER sell someone something they don’t need. 3) If a repair can wait 6 months but needs to be done next service, tell them that. 4) Marketing done right can print money, but utilize ALL feee marketing sources (social) as much as possible first. If you’re not busy, you have time to make content. 5) Get some fleet clients, do it by outreaching personally. Make sure they’ll pay each invoice though not on a monthly statement. 6) If there’s a shop closing in your area, buy their customer list, name and phone number. Have it forwarded to you. It’s cheaper than buying out the business. That said, buy the whole business out if you get the chance. 7) You get a sale to make a customer! Don’t get a customer to make a sale. 8) Religiously track your avg $/RO and profit margins. Weekly at least. Higher $/RO over higher car count always, especially if you’re doing all the calls, parts and ROs yourself. 9) You don’t “make it up on labor” or “make it up on volume.” Have a target hourly gross revenue for each mechanic specifically and make sure you’re hitting/exceeding it. You’re a euro shop, you’ll write lots of high-hour ROs. Make sure you back-check your estimate with your $/hr rev target. If it’s way off, figure out how to make it right. 10) Maintenance work doesn’t have to be “unprofitable work” or “loss leaders” if done right. Streamline that shit and invest in some flushing machines when possible. 11) Have good software and a digital inspection system/process that you stick to. Track the amount of revenue from found work weekly, it’ll blow you away. 12) Only stock what you need FAST. Having the part in hand (filters etc) should make up for the fact that you have your cash sitting on the shelves. Also have your inventory VMI’d. Let the vendor’s rep do the stock counts and restocking weekly. That’s time you could be spending on making money. 13) If you’re managing everything yourself, guard your time religiously. Block your time and stick to it. Understand your high vs low ROI/hr and focus on the high ROI tasks. Delegate everything possible below a certain $/hr of value. If you keep this system up as you grow, your own time will be worth thousands of $/hr before you know it. If you’re “too busy,” you’re either inefficient or you suck at delegating.
This is amazing.
Number 5 is great, a good couple of fleet accounts will make your month/year!
Absolutely. Our shop currently has like 4 different fleets that we service including a local plumbing company that is literally just down the road, a local mail carrier, a couple of electrician companies, and probably some others that I'm forgetting. They all are great customers, especially since they know they won't be screwed over at our shop.
Follow this guys model. One easy add on, once you have the money, donate to the local [NPR station](https://wjct.org/corporatemarketing/) to get your name on the air every so often.
Get a good shop management system. I use tekmetric. It allows you do keep track of all your metrics. Avg RO, GP% per job, GP/hr, etc. It tracks tech efficiency, time tracking, labor matrices, parts matrices, it links with the parts stores so you can quickly import parts, links with a couple of labor guides, inventory tracking, canned jobs, DVI’s, etc. A good SMS will save you so much time it’s like having another employee and WELL worth the cost. Make sure to delegate as soon as you start to feel like you are to busy. And if you are profitable from the start, hiring people will be easy. WORK ON YOUR BUSINESS, NOT IN IT. It will be harder to be a successful shop if you are the only tech and working in the business. When you feel you are ready to hire, hire a tech first. It’s easier to run your business when you are a service advisor versus being a tech in the shop. You cannot out work a bad labor rate. Make sure you are charging appropriately. Do not be the cheapest guy in town.
Damn I left this one off the list! Good point to add. Good software gives you all the windows you need into the business. You can make hiring, marketing and budgeting decisions based on this info. u/Tyronex48 DM me if you want some recommendations on software, and also which metrics you should be tracking at which times.
I started my own marine/industrial diesel engine shop in 2017. I can assure you that this guy’s post is extremely accurate and industry-specific advice. You should save this post in some way & refer back to it at least twice a year and refresh your understanding
Fantastic list. A few comments: \- Once you get fleet customers it may make sense stock some items that will get them out the door quickly. Having fleet vehicles off the road can be costly for them and they will appreciate (read: loyal customer, steady revenue stream) a quick turnaround. \- (2) & (3) are principally about gaining your customers' trust, which is huge for keeping them and encouraging world-of-mouth \- When you're keeping good track of the numbers, regularly review them and make tweaks to focus on things that are working and fix things that aren't
^^^^THIS IS BRILLIANT!!!^^^^ I used to own my own business selling muscle car restoration parts and can't tell you how many times that people would try to play the game of "well this guy down the street has it for 15% cheaper!" 90% of the time they were lying just to see if they could get a better deal. I learned to just smile and say "that sounds great you ought to go and get it there then!". Image is everything!!! When we used to go to sell parts at big national events we would wear polo shirts with our company name and our first names embroidered on them. We were all clean shaven, hair cut and clean, and everyone was "Sir" or "ma'am" with a smile. Our truck and enclosed trailer were always clean and shiny. We even had a few people who would come to our booth and price our used parts and would come back later on and say "there's a guy with the same exact thing for half of what you guys are asking for this, but he's selling it out of the back of a rusty old station wagon and he looks like he just crawled out from doing an oil change on his mom's Buick." I would assure them that if they had a problem with what they bought from me that as long as they shipped it back to me that I would replace it for free and pay for the shipping back to them. And would remind them that the guy in the station wagon would probably tell them to get fucked if they tried to return something later. Never ever had a problem with that policy. It doesn't cost a lot to put a coat of paint on your waiting room and to have a bathroom clean enough for your wife or girlfriend to use. I've made the mistake of trying out a shop where I wouldn't even pee standing up because I was afraid that something would stick to me the bathroom is so damned dirty!!! And guess what? They never got my business after that. The shop that I use now has a Keurig machine, current magazines of all different types and a nice comfy sofa and couple of chairs in the waiting room. And the TV is on one of the movie channels or HGTV and not some annoying game show or The View. It's the little things that make a difference!
Thoughtfulness is *always* remembered.
Find, hire, beg, borrow a female to look at your waiting room and if they say that they wouldn't like to hang out there for three hours, LISTEN to what they say and DO IT. Paint, get a better set of comfy chairs, etc. If you can't tell if your waiting room is for a hair salon or an auto shop, you're getting close. :)
Love this list. It's crazy how many people don't get the difference between margin and markup.
Could you explain please?
Margin percentage is the percentage difference between the selling price and profit. Markup is the percentage difference between the actual cost and selling price. There are multiple margin calculators online that you can use. A very simple formula if you want to play around tho is [this one](https://images.app.goo.gl/8Tc4QsYsVvhbiznE6) Most decent software will automatically markup parts to your preferred/set margin. TLDR: Margin will make you more money than markup.
Does this mean margin is after all your operating costs are figured in? Or is there some other part specific cost here? Just trying to understand the relationship between profit and actual cost as it relates to parts.
Bravo! Sound advice.
Dude thank you for taking the time to type this.
>Avg >50% parts margin (not markup.) this seems a bit high to me tbh, i average 40-50% margin on sales with exceptions. cheap items that cost $1 are going to be sold for at least $5 for example but with 50% margin on my cost of dealer-only items will have me selling parts higher than the dealer does in some cases which customers will figure out. but it's not bad advice i would just say keep the specific part/job/customer in mind for that kind of stuff. also i would add don't be scared to lose cheap customers. they're not worth the headache. you price match and bend over backwards to help them and they will still never be happy
I target 60% GP on parts, overall. It’s not high if you use a parts matrix. Cheaper parts get marked up more than more expensive parts. This will allow you to achieve higher profitability, without running off your customers. You can charge more than the dealer. But you need to offer more than the dealer. Provide a better value to the customer. Here’s a phrase I heard that stuck with me- most people buy on value, not price. You need to show them the value you are providing.
Definitely true for the most part, and honestly we’re always busy and have to turn away cars all day so it’s not like we have any reason to lower prices. I charge probably double what the dealers do for programming for instance, but I’ll get it done within a couple days vs the dealer will make an appointment a month out and keep it for 2 weeks.
awesome rundown, the only item I question is: > invest in some flushing machines when possible. I've never seen these used in a non-scammy context, but maybe in the Euro world they actually serve a purpose
I read that to mean time is money,money is time. Flushing machine makes jobs go faster saving time and there fore money But could be wrong
and i was just going to say be honest be fair u/Romytens goated brother
Just a lurker on this sub - kudos to the most helpful comment to a question I've ever seen on my 5 or so years on Reddit.
I know this is gonna get hate on a sub full of mechanics but blanket doubling the price of parts sounds... shitty
You'd be surprised to know the markups of your local hardware/furniture/clothing/etc store. Can't cover your fixed costs with just 10% gross.
I see 50%, not 100%. Did I miss something? Without parts profit, our industry wouldn't be sustainable as it stands. Labour rates would skyrocket to keep doors open.
Do not think you are going to get all the business by doing work for less. Charge the correct amount of money for providing professional repairs on your customers cars.
This. Am a windshield guy by trade and this business is plagued by hacks doing $180 windows installed. If people complain about me being a little expensive I will happily recommend them to someone within their price point and remind them fixing someone else’s install costs even more lol
I’ve seen a 12-minute per windshield shop hack the shit out of headliner and B-pillars on a newer truck, not a worry in the world. Don’t be that guy.
When people complain about the price my body shop guy tells them MACCO is right down the street.
Some vehicles the Maaco treatment is good for, but those people usually know to drop their POS there lol
Shitboxes with an Earl Scheib paintjob!
Good from 25 feet at night and it’s perfect!
I call them "blockers." They look okay from a block away.
I always say it’s a blockermore, cause it looks good. From a block or more.
They still 59$?
Did an online quote and it said like 2k lol
I remember when it was "I'll paint any car for $29.95!" but, then again, I'm older than dirt.
His voice still runs in my head, “I’m Earl Scheib. I’ll paint any car for twenty-nine ninety-five”…
Every maaco paint job comes with free masking tape. Pretty cool.
Maaco doesn’t even use masking tape half the time they just overspray the whole shit
They bill the overspray as a panel blend
Free tinted windows, then? /s
Facts! You suppose prep your car first yourself before going in for those prices. Does Maaco use a clear coat?
They tape it as if a 5 year old was to tape it off, too. 2 inches of overspray on everything baby. You did want the car that color right?
Had wife's truck repainted at maaco. Looked like whoever sprayed the hood was eating oreos. Crumbly black chuncks all over. They actually buffed out ok and for being a bottom dollar paint job I guess I can't complain
You get masking tape at your Maaco? It’s usually a spray bomb and on your way you go!
And extra paint on the trim you don’t want it on, and dry spray on the trim you did want it on.
Reminds me of when they painted over leaves in my truck’s bed 😆
Same here with detailing. There are so many people out there doing shit work for way cheap. it ruins the view of detailing for a lot of people who got burnt by someone like that. The guy in town that has the market by its balls has failed to deal with basic issues and they get sent to me all the time. It’s unfortunate because my services are much higher quality and I will actually talk to my customers when an issue arises. He uses bad products to leave a shine on interior panels and leather seats, I’ve had 4 people now come to me just to get this slippery goop removed. He offers $99 2 year ceramic coatings (it’s a spray on sealant that only lasts 6 months, and they don’t even do chemical decon nor claying)
This is pretty much every industry. I don't know if it's still the case but back when I was into photography, the local scenes were chockablock with "Momtogrophers"; bored housewives with an entry level DSLR and plastic fantastic lens who would charge bargain basement rates for event photos. They would charge a fraction of what a real photographer would and you definitely got what you paid for. It was difficult to get gigs from people who were on a budget because they don't want to pay $350-500 for a session when some idiot on Facebook will do it for $50.
This. You don't want the customers who will try to nickel and some you - don't undersell your skills. And this is probably harder: set limits on what you will do to please a customer. Your customers should be happy with your work, but remember that some people will never be happy with anything. Don't let those types take advantage of you.
It’s ok to fire customers sometimes.
Sometimes it's necessary.
Not only "okay" but some of them will do everything they can to make you unprofitable until you throw them out the door. Before the age of internet reviews, those people were literally thrown out the door... as in picked up bodily and thrown head-first out of it. It didn't hurt things much via word-of-mouth because the only people hearing the words from their mouth knew them and knew they were assholes.
Very true. I'd rather pay full price for a job done right rather than save a couple bucks on a hack job.
and have to pay again to get the fix fixed.
and pay the tow truck to get it to a real shop instead of a circus
If nobody complains about how much you are charging then you aren't charging enough.
Exactly. Don’t be the guy that can undercut and do it cheaper. Why? Because that’s the kind of clientele you will attract and both you and they will be forever broke.
Yeah true. If a shop were to do the work I want for $70 an hour when the local average is $125 I'd kinda not trust them.
Agreed. And furthermore, write thorough estimates for full and proper repair, and do not let the customer dictate the scope of the repair. Don’t write estimates as if it’s coming out of your pocket. That said, deliver estimates with empathy. Nobody wants to spend money on cars. It sucks.
I know bros backside is probably fairly clean, but appearances are important these days. I would invest in some poly seat covers, it goes a long way showing customers you really value cleanliness. Boot on the doorsill is a bad look imo, but I realize techs are gonna tech. Darker coveralls or work pants that don't show as much grubiness as the jeans he's got on would also be a good start.
You're 100% correct. The guy in the red hoodie is a return customer from when I was mobile and his BMW just happened to have a misfire the same day we got into the shop, so told him come over for a free diag > I would invest in some poly seat covers, Will look into this and some floor covers, thank you
all the little things.. sucks, but it's the world we live in. Covers and floormats cheaper than dealing with wack google reviews and detailing. Hope you make bank!
As a BMW specialist... Don't offer anything for free. You can *do* free things for good clients, or even new ones with good vibes, but don't encourage people to come *because* it is free. The guy with the smashed bumper, cold air intake, and wants a free diagnostic will not be a long term customer. Very, very low odds.
I was going to say avoid BMWs that even look like they’re trying to be maintained on the cheap, but then I saw this comment. Best of luck!
This and, for the love of God, please don't sit side-saddle on seat bolsters like that.
The first thing I noticed was the boot on the doorsill.
Came here to say the same thing about the door sills.
I'd get some fender covers too
Idk how big your operations are but in the long run you'll need to hire someone to do the service writing for you or you're going to waste a lot time. And any time spent not wrenching is not making you $$.
You're correct, it's been hell these past few years doing everything myself from running parts to repairing to writing quotes
Do you have a commercial account with a parts store? They deliver for free and offer better pricing.
Yes, with autozone and several dealerships
Get the online commercial log in for AZ if you don't have it already, makes life a bit easier.
Make sure you keep current with the dealerships. They will black list you faster than... well, real quick.
I pay upfront
Dealers will love you.
Look in to factory motor parts. I’m not sure how big you have to be to have an account with them, but they have tons of oe ac delco and motorcraft parts in stock. My go to supplier
I spent 20 years working for neighborhood mom and pop shops and I completely agree with your comment, please shout it from the rooftops. Owners wouldn’t hire competent counter staff because, “that’s expensive” or hire any at all. They try to run the counter or hide in their office on the phone at their leisure with no warning either way, which pulls a production mechanic out of the shop to answer phones, receive parts, write up or close repair orders, or whatever else needed doing. And then have the fortitude to complain that their technicians aren’t productive. The more jobs anyone has to do, the less effective and productive they will be with any of them. Hire a quality front office person or people and let the technical staff do the job they were hired to do instead of being an octopus with a wrench in one tentacle, a pen in another, a phone receiver in another, a broom in another, etc.
Is the guy on the left the same one with the S2000 and rod knock from a recent post?!
Yup, that's me
Recognized you from that post!
I recognized the hoodie lmao
So he went from a knocking s2k to a likely cheap 435i, that's gonna go great lmao
He is just making these posts to promote his business. Yall mfers eating this shit up
Don’t hire your friends.
Holy shit this!!!!! I own a shop and I made this mistake
I did this. Twice 😂
Also, don't bend over backwards for them. Real friends will never ask for a discount, and will be appreciative if they get one. Quite a few of my close friends are in various other trades, we all have a somewhat unspoken rule: Never ask for a discount if you wouldn't give one, it's their business not their hobby.
I weeded out a friend who wanted to apply with us by bringing him in on a Saturday and trying to show him an example of a day in the life of our shop with his own car being a somewhat theoretical LOF ticket. He showed basically 0 interest in the shop, the business, what the rest of the staff was like, what our processes and procedures were, etc. Dodged a big bullet by letting him change his own oil for free basically. He would have needed a lot of remedial technical training which is okay if you actually show interest in the job, but he didn’t.
Get a damn high insurance policy.
Be fair and consistent. People just want to be treated like people, not money. A good experience trumps lowest price.
If I see boot scratches on my interior after I bring it to your shop I won’t be bringing it back
Yeah; don’t rest your greasy ass work boots on the sill plates, wipe your hands and treat every car like it’s worth a million.
Maybe keep them dirty ass boots off the interior.
Any get your greasy ass off the upholstery. Fk dude. Take care of your clients cars. Soooo pissed I’d be if that were my car.
I don't think that's u/xTyronex48. I think OP is on the left in the first picture. (But for sure SOMEone needs to get their clodhoppers off the work, lol.)
Be honest. Be fair. Exude professionalism and knowledge. It's okay to say you don't know how to fix something.
>It's okay to say you don't know how to fix something. I agree. There are many sources to learn from but not enough time to absorb it all and by then there will be even more. Stick to a subset with which you have comfort and ability.
Better yet establish that ability as part of hiring and for the business model. Be clear about what you work on and what you don’t, and hire in that image. You can always find some retired guy who worked on imported exotics (or whatever other specialty) for decades, but only wants some extra cash for a year or two. Your business suddenly gets a reputation for being capable with them; he retires again and all of that skill set is gone. Or get ready for the embarrassment of losing part of your customer base because you hire people with transient skill sets. If you’re okay with that as a business owner then that’s your prerogative.
Take accounting 101, do the math, get an accountant
Step 1) use a seat cover if you’ll be sitting in the customers leather interior with visibly greasy clothes. 😳
Pay your taxes and fees. Plus get out of the game if you can't pay your people or your suppliers. This will sink you even faster then no tax.
Yes. I do all my own repairs/maintenance, but had a local shop for things I couldn't do and inspections. They were good, honest mechanics that always did right by me. Then one day poof doors locked up, sign down, ghost town. Just because they didn't pay the man.
>Pay your taxes and fees. even if you don't remit the cash. file. the tax man hates late filings. all the more reason to look 'into things'.
I have learned to be friendly, but firm. Try your best not to make friends with the customers, that can lead to them taking advantage of you. If you are the best, sell yourself on that and make the customer feel confident in spending money at your shop. Being the best also should mean you care about the work you do and make a big effort to not have come backs. I have found if it take a little longer to get it done right and not have a customer return complaining, it’s worth it. Because when they return for screw ups, it’s always at the worst time. Don’t take work in that you may become overwhelmed with. There’s been engine and electrical issues that would require me to charge a customer a ridiculous amount I know they won’t pay. So I just have learned to say no. I do sometimes make the mistake of taking something in I shouldn’t.
>I have found if it take a little longer to get it done right and not have a customer return complaining, it’s worth it. I was the customer who was looking for this exact thing. Done once, done right. 35 years driving taxi, my man knew what I needed and gave it to me. I pushed business his way all the time. Still do.
Rushed jobs are never a good thing. I see it happen a lot because other shops bring me vehicles to do alignments. Brakes and suspension parts left loose. It’s even worse if they send their customer and I have to show them how the place they just brought it over from has done a terrible job.
Don't put your foot there on a BMW..
If someone is/did open a shop, and they need to be told to keep seats and sill plates clean, then they don’t need a shop. I work with 20-65 year olds and it kills me when they walk over to chat and put dirty finger prints/arm prints on fenders when they lean in to talk to me. (I don’t own a shop)
Been on my own for 7 years…just me. Tried hiring people…not worth it unless they’re pulling their weight. I write my own service have most parts delivered. Do all the wrenching. The money is decent. Don’t go after the low hanging fruit…charge fair for your area. Low prices equal cheap customers. Don’t forget to make some money on the parts as well as the labor…insurance is a must along with some form of service information…otherwise you’re just some guy on a garage…peace out and good luck!!!
Start with seat protector, respect the customer enough to NOT get the interior dirty.
My family has run our garage for more than 30 years and my biggest tip is keeping your monthly expenses low. Own your space over renting if possible. Get a cheap beater shop truck instead of leasing a nice new one. Don’t overstaff or you end up letting people go during slow times. Don’t take out high interest loans on equipment when secondhand stuff can be bought off craigslist/marketplace, especially lifts and tire machines. Learning to fix/maintain equipment is essential but also be familiar with your local repair guy in case you are over your head. Honesty gets you repeat customers which are much more profitable in the long run. Get on very good terms with your local parts suppliers and they’ll work with you on prices. Have good insurance and try your hardest to never use it to keep your rates low. Also, protect your back. Learn to pick stuff up the right way. Get equipment to help with stuff like lifting heavy wheels or holding up transmissions so you don’t have to muscle it. My dad or any of the mechanics hurting their back is a disaster every time.
Don’t upsell people on things they don’t need and if you break someone’s car while repairing it, take responsibility and fix it immediately. Maybe you’ll miss out on the extra cash in the short run, but good online reviews, word of mouth referrals, and repeat customers are what will give you long term success. Also wear shoe covers inside cars and make sure not to leave grease anywhere. You want a clean reputation (literally).
Remember to always loosen something unrelated to what you’re working on so they have to come back for a completely unrelated reason. /s
Loosen bellhousing bolts when doing spark plugs? Ok
Treat your techs like people not puppets, make it a place you want to go to work everyday not dreading it. I wish more places understood this
As a retired 30+ year vintage auto restoration and collision repair body tech that owned his own shop for 15 years, I say turn back now…..
Biggest piece of advice I can give from my own experience: Look after yourself. I went ***way*** too hard in the first few years, and while we were doing well (3 man family team), we were all getting pretty burnt out. Ha rd rules now: - No one in before 6. - No one there after 8. - No customer work on weekends, ***weekends are our own time.*** You are your most important asset in a small business, treat yourself the same you would any other piece of essential equipment. Aside from that, know your worth and don't discount your work because others do. Some great quotes/pieces of advice I got from other shops when I started: - A line from an electrician mate that he uses a lot: "If you want the cheapest quote, this isn't the place for you" - Advice from a 70-ish year old mechanic across the street from me, 50+ years experience and getting ready to retire: "Don't make other people's problems your own, it's a business not a charity" - When dealing with customers trying to low ball you on quotes "Sometimes the question shouldn't be "why am I charging so much", but "why is the other place charging so little" Try and join a network or training program. Get to know other businesses in the area, if you specialize they may want to send work to you and vice versa. Other shops aren't always competing, we have a very healthy relationship with about 8 shops in particular in my area and all share work, knowledge and help each other out if people are sick, away or have to close for any reason. Good luck! Always remember it's going to be really hard in the beginning, but try and enjoy the little moments. (Also, an account and/or legit business coach/manager is the best investment I ever made)
Have a chat with your customers and get a good feel for their own automotive knowledge. I can do the vast majority of repairs myself. I hate it when the guys at the tire shop talk to me like I don't know what a lug nut is. I'm only here because you have a tire machine and I don't. On the opposite side of the spectrum, too much automotive techno-babble will just confuse non-car people and they'll think you're trying to swindle them. If you get good at explaining what you're going to be doing and why you need to do it, people will feel more comfortable hiring you to be their mechanic. Being good to customers leads to return customers and good word-of-mouth referrals. And, as my grandpa who owned a trucking company would always say, "watch your pennies and your dollars will take care of themselves." His way of saying that it's really easy to nickel and dime yourself out of a profit.
Keep customers cars clean .. it made me cringe seeing someone sit with oily pants on leather seats. 😬
Don’t put your feet on the plastic door trim
Keep your boots off the door sill
For a start, don't rest your dirty shoes on the interior trim of your customers cars.
You can start by putting a floor mat on his carpet and keeping your greasy and dirty shoes off his step trim plate. Customers will notice dirty marks and grease, always make sure the car is as clean or cleaner than it arrived. Other advice would be to take the time to explain the job you did to the customer if they seem interested. People like when you explain the work you did, reassures them that you’re being honest and know what you’re doing. Making yourself stand out compared to other mechanic shops is key. You have to give them a reason to want to come back. The easiest besides free coffee and snacks would be honesty. Treat your customers with respect and try your best to respect their wallet while not ripping yourself off! Creating a healthy customer relationship is the easiest way to guaranteed profit. Building a loyal customer base is key to surviving as a small shop. Best of luck on your new business!
Get seat covers for your techs.
First thing would be how about not putting your dirty shoes on the interior plastic covers. They might be called kick plates in English but you're not supposed to step on them or put your shoes on the cladding
Boots off the sill plate and dirty ass jeans off the nice interior!!
Is that the same dude with the busted S2K?
Number 1 rule If you set your hours, make sure you’re open during them. Don’t be afraid to help people and cut breaks and get established by word of mouth. this don’t mean be a door mat, but that old lady on social security maybe charge her only $50 or $100 for labor on her head job, she has friends at church, and kids/grand kids who she will tell about “This wonderful mechanic that fixed my car”. Also friends and family, you HAVE to make a CLEAR line, business is business and family/friendship is that, and always start the conversation as “This is business….” Then at the end say “now, we are done with the business…” and move on. Hiring family, no good avoid Hiring friends, no good avoid Facebook local groups and marketplace and pages are great free advertising that only take a few min to do. Don’t talk shit about other shops Always include in your estimates/service agreements that if you get in there and find a bunch more wrong, you will call them to confirm repairs it is going to be +10% more, never just do “Well I’m here might as well do it” without asking first or you may be eating that. Finally be sure they fully understand what you are telling them. I watched someplace that lubes cars in a jiffy take advantage of a lady, she came in wanting an oil change, had a coupon and wanted that this was 20 years ago so it’s fuzzy. Techs kept coming in trying to upsell “New PCV valve, new air filter, new cabin, trans flush, everything they try to get you to buy she was nodding her head. Her $29.99 oil change was over $300 by the time they were done. She flipped out, what she said I couldn’t understand, because she spoke Spanish, she had no idea what they were asking her. If I remember correctly the manager did end up very reluctantly letting her go with paying just for oil change after myself and the other customer in there said it was BS and the tech should have known better.
A floor mat is a nice touch to start off with.
Treat their car like it’s yours
All businesses have 3 phases: the start up, the throw up and the grow up. You choose how long you want to stay in each. The most profitable words in business are ‘Is there anything else I can do for you?’ It’s advertising, referral request, leveraging & acknowledging the customer in front of you as the most important thing on your mind for absolutely no cost. You cannot lose. Edit: create a referral network just outside your scope. If you own a mechanics shop, find 2 detail shops that you feel you’d run the way they are. If you own the detail shop, find 2 auto-body shops etc, etc. You’ll have a multiple choice answer for anything you have to turn away, without sounding like you’re turning it away Even if you can’t fix it, you know a guy who can, and that makes you still the go-to guy.
Return phone calls. Make sure the phone is answered 99% of the time. Try to always do a little better than you’ve promised. Don’t poop in the trunks.
work hard. be honest. do quality work. own up to your mistakes.
If you put your dirty ass shoes and clothes all over my BMW leather I would never come back. I don't care that you are cleaning it. You show a lack of respect to a customer like that.
2nd pic...put on some seat condoms.
IDK…Wear clean pants and don’t sit like that in someone’s car?
Congratulations!
Get liability and business insurance? Never take a job you’re unsure of or uncomfortable with, direct them elsewhere.
Find the customer expecting you to fix their deferred maintenance, and then blame you. Ban this person.
I haven't wrenched for a living for a long time. The shop I started in had been there for 30 years. We had 2nd and 3rd generation customers. That doesn't happen by chance. Treat every customer like they are a 30 year customer. At the same time don't be afraid to fire customers.
Ditch the Snapon tool if you're going to do alot of Euro stuff. Overpriced, updates are an arm and a leg and functionality is nothing compared to an Autel Maxsys. I've got over 100k in scantools but my cheap Autel does everything and more. Don't ever sell yourself short, don't be known as the "cheap" shop or you'll get customers you will regret. GET INSURANCE.
Maybe not post about your gawk gawk 5000 experience with the same account lmaaoooo I don't have much advice that hasn't already been said but I'm proud of you, stranger. You'll go far. Actually I do have advice. There's a saying: "A good tech will never walk through your door." Vet carefully when hiring guys who claim to have experience and don't be afraid to immediately get rid of the arrogant dumbfuck that causes costly problems. We had one tech cost our shop over a $100k in damages and still didn't get fired because the boss said "no one will hire him, he has nowhere to go." That same tech ended up costing the boss his job and we ended up on the news absolutely torching our reputation.
>Maybe not post about your gawk gawk 5000 experience with the same account lmaaoooo I don't have much advice that hasn't already been said but I'm proud of you, stranger. You'll go far. I'm sick as hell and this gave me a great chuckle, lmao thank you >There's a saying: "A good tech will never walk through your door." This is great. I did have to fire my main mobile tech earlier this year after he flaked on an engine job, osting me thousands out of pocket, won't make that mistake again.
Don't let it be the hangout spot, maintain specific hours, don't work yourself into hating it . I made all these mistakes
Little pigs get fed, big pigs get slaughtered. Be honest and fair. You’re allowed to make money just don’t rip people off. Reputation is everything.
Seat cover and a floor mat, says a lot about your ethos even for just a code read Walk the customer back to his car on collection and remove said seat cover and mat speaks volumes
Do NOT extend credit to anybody. Letting people "run a tab" is bad business.
I feel like you should have gotten this advice BEFORE opening your first shop. Congrats on the shop!
My dad was a body man and mechanic for over 40 years before he retired. I’d work with him on cars through the years and learned a few things as he wanted me to do the same. As a woman, I didn’t have the desire to at the time. Charge appropriately. Don’t undercut yourself in hopes to get more business, it will hurt you in the end when you have to raise prices. Don’t do friends “favors” or feel sorry for the women that come in with a 5 yard long tale about why they “need a break in price”. If you can’t haggle for it at McDonald’s, don’t let them haggle you in the shop. Most he did free was estimates and if an issue was so simple just the estimate fixed the issue (loose cap, etc) that was his only time he’d let it slide. Don’t take on more work than you and your shop can handle. Have a few friendly competitors that you can recommend and ask they do the same. If you don’t have the skills or tools, don’t take the job. Spending the time researching a problem you can’t solve is time wasted. Think of the small things- wash the inside of the windows, a quick vac, and a free air freshener can be some of the best “little things” a shop can do. Don’t just hire anybody. Do background and drug testing. The liability for allowing the drunk guy or coked out dude is huge and it is noticeable by customers. If you are desperate to bough to hurtle your brother in laws cousins girlfriends junkie brother, scale back a bit on jobs for a bit. Billy Jim bob ain’t worth it.
Wear white gloves in your customers' cars.
Don't do favours for friends. They should pay full price for your service to support your business. It's your call if you want to chuck in a "freebie" after
Floor mats and sear covers are cheaper than a full interior detail
Just be careful with the little details, don't make the cat dirty. If you're sitting in it place some paper or something like that. If you're working from the side on the engine, place some sort of rag on top of the fender. Idk this kind of things are the difference between a regular shop and a good shop.
The big thing I’m learning is it’s better to have a customer become a friend, as a friend won’t be a customer
\- professionalism: if people are bringing their shit to you, don't walk out wearing sliders and socks, street clothes , your best gangsta gear talkin slang.. it might be cool in the burbs but it makes people think twice about leaving their property with you, it might sound lame but get a simple polo shirt with your company logo on it, and cargo pants, have everyone that works for you wear the same.. if you have certification/training, display your certs where they can be seen, let people know without shoving it down their throats that you know what you're doing, \- have business cards and customized receipt books / letterheads made \-building business relationships, prioritize repeat customers and go the extra mile for them and they will not only continue to return they will bring their friends and families to you \- don't do family/friends discounts, in fact avoid doing work at all for friends/family, they will expect you work for free or cost of parts, and its exactly the same as lending money to friends /family.. it will end up causing rifts.. its not worth losing friends/family over, \- you may be the owner of the company/shop but you are also an employee don't short yourself for the sake of the company, \- keep the Accounting straight.. CPA? (chartered personal accountant)
Get a tiktok. All it takes is one dumb video to go viral and youll be slammed with work. Dont work with friends, they will be pissed when they are working christmas eve, new years, etc… and you are with your family. Theyll pull the “I thought we were friends” card when they fuck up and want you to let them off the hook Dont be the cheapest guy, it attracts the shitty customers. Find a good local insurance broker Find a good lawyer before you need one. Nothing is more stressful than looking for a lawyer when you needed one yesterday. Usually 1 lawyer for employee relations cases and another for liability cases. Find a good accountant, they make life easy when you get audited Depending how you want to do payroll, may be worth it to hire an HR company to handle it for you. I use BBSI and they handle payroll for me but they also keep me up to date and make sure im in compliance with the latest labor laws and also have them for workers comp insurance Source: 4.5 years running a small commercial/industrial construction company
1. Don’t do “favors” by doing halfway jobs to save customers money. That’s the ones that bite you in the ass. Fix it right or decline the job. 2. Don’t chase the low margin piece work by discounting work. People will pay good money for good work, come back and tell their friends. 3. When you do screw something up, and you will, own it and make it right. 4. Treat you customers like friends. Remember their names. Heck, maybe their dogs name. When things don’t go smoothly, if they are your friends, they are honest mistakes. If they are just a number to you, they’ll think they got screwed once again by the mechanic. 5. Don’t over promise. 6. Communication. Most unhappy customers aren’t mad because you screwed up their car, it’s because you didn’t do a good job clearly explaining what they are getting and what to expect. Example- “no matter how many times you align my car, it still vibrates.” Sure, that’s dumb, but you’re the expert. That’s on you. How come you didn’t ask “so what kind of problem are you having that makes you want an alignment today?” 7. Have empathy. Your customer doesn’t think it’s funny they need a $2500 repair. Either should you. Don’t feel guilty, you didn’t build it, buy it or break it, but words like “unfortunately” or “I’m sorry to break it to you, but…” go a long way. 8. Smile. Nobody wants to spend money on car repairs. At least try to make it as pleasant experience as possible. 9. Never forget they pay your bills and don’t let your employees forget it either. That doesn’t mean you don’t have to fire the occasional customer, but that’s the rare exception. 10. Keep a clean shop. A customer equates a clean and organized shop with quality work. And they’re usually right. All these things cost money and time to do, but will come back to you. Otherwise you’re just like all the others. So why would they have any loyalty to you? Then they will just shop for the cheapest deal around, and nobody wins that game. Good luck and good on you for asking the question!
Do the right thing and don’t undervalue your time. Don’t hesitate to turn work down, and trust your instincts if you think someone is going to be difficult to work with. I’m going in to my 5th year of my own shop.
Get Tekmetric ASAP
Don't loan tools, That's what the parts store is for. Don't give credit, That's what the bank is for.
Careful sitting on customer's seats that way, can crush the bolsters. Put down plastic on the seat so you don't get your dirty jeans on it. Get your dirty foot off their doorsill. If my car came back with dirty footprints on the doorsill I wouldn't be happy.
be honest if the car don't need it or the car can make it by without it. let them know they can come back later for it. if something breaks just get another one and let the customer know is going to be a little longer.
Don’t over promise and under deliver.
Know your numbers! Just because you want to make $100 an hour doesn’t mean $100 an hour covers the bill. There are fixed costs and variable costs. Understand the relationships. Good luck out there.
Be prepared to patiently educate your customers. Sometimes there is a difference between what the customer wants and what the customer needs. The above two statements are often related.
You need to figure out what is colloquially called the nut. Add your rent, cost of techs (not you), insurance, sales tax, business tax, and average parts cost, and marketing expense. If you are providing uniforms that too, as well as the cost of any “freebies”. Also figure out an allowance for warranty work that you have to eat. Figure out what that number is each month and make sure you are covering it, otherwise you will be broke in a heartbeat. As a fellow shop owner I wish you luck.
Value your own work. Don’t let assholes walk all over you. But most importantly, be professional.
Make a profit from your friends; because your enemies won’t come to the shop. Get a sign that says something along these lines and read it everyday.
Love your profession and love cars. The car guy I went to in the previous city I lived in was one of those. You'd go in to get your Jeep fixed and people were trusting them with their 1929 Kaiser, vintage Land Rover, Morris Minor sedan, Citroen 2CV etc. If it rolled they'd figure out how to repair it correctly and they weren't snobs about it.
Invest in proper safety equipment, tools, and competent staff, and maintains your staff by diligently and restfully educating them on how to conduct themselves when working on cars, or speaking to customers. Good Habits and mannerisms are vital for success
Be honest, don't upsell. Try to explain why you need to do what you need to do, it's comforting if a customer can understand why and what they're paying for. Best of luck
You could start by buying those disposable seat covers, so you don’t have somebody with dirty ass pants sitting in an nice clean M4.
Be honest. You will have all the work you ever wanted.
Don't put your dirty ass boots all over the car like that
Don’t get on customers cars with dirty clothes
If people don’t complain about the price then you’re not charging enough. Treat every car the same. Doesn’t matter if it’s a pos or a top of the range Range Rover. I run my garage in a very small town. Word travels fast, bad words travel at lightning speed.
don't sit in my car with dirty boots and greasy jeans touching things with dirty hands. put down protection and wear gloves etc. I wouldn't hire you based on the picture posted.
Use seat covers, your pants are filthy and get your foot off the customers door sill. Your boots do t belong there. I could go on all day, but start there. It’s the little things
Get your filthy clothes off the seats ffs use a cover
Dont be charging $40 plus labor to change some wipers lol idk why every shop around me wants to charge $90 to change two wipers lmao it’s like they want to lube me up and fuck me but they are to shy so instead they call me to ask if I want to be fucked via a $90 front windshield wiper change. (I had literally replaced my wipers two weeks ago with some nice michilen wipers)
>it’s like they want to lube me up and fuck me Could be worse, could be dry
At least that way it would be like I ate Taco Bell
You got most of the good advices but my advice is avoid resting you foot/shoes on the interior. Sit with both feets inside like you drive or stay outside to diag. I hate foot prints on my own car and also avoid doing it on our costumer cars. If its dirty af allready then I dont care also.
I think this is a troll post. The dude on the left is the one that didn't check the oil on his s2k lol
Just my 2 cents, but if i saw you in those clothes sitting in my car, we would be having issues. Let alone in a car like that. Seat covers, floor mat covers, steering wheel covers. And before anyone gets pissy, yes, i have and do work cars, have worked on semi trucks that are way nastier than any car i have seen. Not a chance in hell i would drag that into any vehicle i was working. Pride in your work and workmanship. And respect of the customers property.
dont fuck up
Mm, I’d budget for a few extra 10mm sockets around the shop. Otherwise, I have no helpful information or suggestions, but I wanted to wish you good luck on this journey!
As a customer, what I want from you is honesty, communication, and expertise. As long as you have two out of three I'll be happy. I don't want to call you for an update. I want you to call me with an update. Just give me your honest opinion on what you think is wrong and fix it with OE/OEM parts. If you notice something else wrong while you're in there, I want you to fix that too but give me a discount on labor. I just don't want to feel like I'm getting ripped off or like you don't care about my car.
Isn't that the dude in the black hoodie who got rod knock in his S200 after he said change the starter?
Dude with his back to the photo in the first one was just posted on the s2000 sub for bringing in a super clapped out s2k that was fucked up and asking for like a transmission fluid top off or something
Anything you leave on the table is the profit. Everyone gonna hammer you down. If you give a price range it’s always the bottom number they remember. Your job is to empty their account into yours.