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Changing the Industry PodcastMay 25, 2026 · 61 min

Episode 270 - Overcoming Shop Owner Struggles: Hiring, Training, and Shop Management With Shaun Tipton

Shop ManagementHiring & TrainingLeadership & Culture

With Shaun Tipton

Now playing — Changing the Industry Podcast

0:000:00

About this episode

Don't get to the end of this year wishing you had taken action to change your business and your life.Click here to schedule a free…

Key takeaways

  • —Understanding your labor rate is crucial for shop profitability.
  • —Investing in technician training leads to better performance and job satisfaction.
  • —Hiring for attitude and cultural fit is more important than technical experience.
  • —Addressing toxic behavior in the workplace promptly is essential for team morale.
  • —Building strong relationships with clients enhances their experience and loyalty.

Frequently asked

What should I consider before starting my own shop?
It's important to understand the financial responsibilities and challenges that come with ownership. Many technicians underestimate the overhead costs and the need for a solid business plan.
How can I find and retain good technicians?
Focus on hiring individuals with a positive attitude and a willingness to learn. Invest in their training and create a supportive work environment to retain them.
What is the best way to handle toxic employees?
Address toxic behavior immediately to prevent it from affecting the rest of your team. If necessary, don't hesitate to let the problematic employee go.
▸Full transcript

Hey folks, David here, and I'd like to thank you for joining us for the Changing the Industry podcast. Lucas and I started this podcast with the goal of capturing the frank and open conversations you typically have at industry events. Those conversations cover the challenges we face in our business and lives, as well as difficult repairs, new products and services, and everything in between.

We hoped that these recordings would spur our listeners to enact the change they'd like to see in their own lives and businesses. That's also why we've partnered with the Institute for Automotive Business Excellence. My first management class was with Cecil Bullard, and his genuine passion for helping others in an honest and ethical manner permeates his entire organization. And if you need some of the Institute's help, they have a special offer for our listeners.

Click the link in the show notes and get signed up for a free business analysis. They'll go over your current situation and give you advice on your next steps. And they have everything from free resources and online classes to peer groups, one-on-one coaching, and specific help for MSOs. So don't miss out on this great offer. Click the link in the show notes.

And now on to the podcast. Fellas, how are we this morning? Good. Very good. My electrolytes. You're going to take your electrolytes? Yeah, you probably need some electrolytes. Oh man. Well, this morning we're here with Mr. Sean Tipton. Sean, how about you tell us a little bit about yourself? Uh, so let's see, where do we start? I've been in the industry for a total of 28 years now.

Okay. I started as a tech like most shop owners. Yeah. Um, had some interesting times, man. It's been a journey that has started from technician to here, and I know you guys have probably heard these stories a million times, but man, the things you learn along the way that you thought you knew that you just just don't know. No kidding, man. That's such a good point too, because like we hear so many technicians who want to go start a shop and they get frustrated at David and I because we say, hey, we don't think you understand what you're getting into.

Like, let's slow down for a minute, make sure you understand what you're getting into. We're not saying don't do it, we're saying go into it with a little bit of knowledge first so you understand, so you know what you're getting into, right? And so many people don't. So where were you working as a tech, Sean? So it's funny because I started out at a dealership.

Okay. Which is where everybody thinks that's, you know, let's go to the dealership. That's a great place to work. That lasted about 6 months. I quickly realized that what I wanted to do as a career and what they wanted me to do was completely different. Yeah. The opportunity for advancement, which it's gotten better. Yeah, over the years I can actually say that it may still be tough at a dealership, but it's a lot better.

In '98 it was, man, I had stories, man, I could write a book. It's crazy. But I started a dealership, 6 months later went to work for an independent. The guy called me up, he's like, hey, I've got a guy that gave me your name, thought you might be interested in coming to work. And I'm like, Okay, not really what I planned to do, but you know, it'll work.

So I went and met the guy. Guy was a real nice guy. He turned out to be just an old school hot rodder from the '50s, man. This guy built NASCAR engines. He'd been around the world. So, uh, went to work for him. He was a diehard domestic guy. Like this was your V8 turbocharger, supercharger, 454s. I mean, that was him. He was a Chevrolet guy.

After a couple years, I was kind of like, hey, have you ever thought about maybe getting into Euros? He's like, why? He's like, I want to mess with those cars, man. Like, I kind of like working on them, and it could be another revenue stream, and it could be good because, yeah, hot rods are cool, but it's not a lot of stuff going on, man.

Like, the shop has projects and we've got engine builds and those are nice, but what about daily stuff? Yeah, for sure. That kind of fodder that feeds you and makes you feel like you're actually accomplishing something. Exactly. And back then we weren't, he wasn't on flat rate, which is kind of one of the appealing things, but in a way it wasn't like we got paid a set amount per week.

So back then I think it was like $800 a week, which, you know, back then was pretty good. So, um, It was kind of a weird shock to him that I was concerned about that at the time because it didn't really affect my pay, but I was bored working on the stuff that he had. So he made a change, we did get into it, and he quickly started taking on a ton of these cars.

Like, I don't think he realized the amount of European vehicles that were in our market. Right. That he was missing out on. And so it really helped out. And I was with this guy for, Oh man, probably 6 years. Okay. And after about 6 years, I felt like I'd reached my potential and tapped out. And I had this wild idea. It's like, hey, let's go start a shop.

Right, right. In theory, it sounded great. I know, doesn't it all? You go, it's like, hey, I'm gonna be my own boss, man. I'm gonna be able to take off when I wanna take off. I can make all this money. Like nobody can tell me what to do. You don't have to go to work 3 a.m. You can get up in the middle of the night and go, how am I gonna pay the bills?

Exactly. So, uh, with no plan whatsoever, and I think 2 paychecks in the bank, I made this stupid move. It's, it's not stupid now, but at the time, if I could go back and punch myself in the face, that would probably be something to do. Um, so jumped out. I actually started at my house, which is weird because I would never do that now, but I started out at home.

I had people coming to my house, you know, they would drop cars off, we— I would do repairs. And then I had a guy who owned a Corvette and Viper shop. That's all he worked on exclusively. Okay. He's like, hey, I've got a stall for rent if you want to come, you know, work over here. And I was like, oh, that's kind of cool.

I get over there and this guy's shop is like completely finished. It looks like the inside of a house. Like it's got wood paneling inside. It's got, you know, all this nice finished stuff. It looked better than any dealership I'd ever stepped in. And it was air-conditioned. I've never been in an air-conditioned shop, so I'm like, I'm in. So started there, quickly grew in client base, and basically he got to a point where he's like, look, you got to find something else, man.

My whole yard's full of cars. Right. So moved into a shop, a 3-bay shop next to a dealership, and was there for a year. Funny story, this is kind of where the story twists a little bit. The guy that I started out with years before approached me during that time and he said, hey, um, I'm retiring, do you want to buy my shop?

I was like, that's cool, yeah, what, get, throw me a number. And I'm thinking a high number, you know, I'm up there because this is a, an 8-bay shop, uh, very nice size, has a full machine shop in the back, it had it was close to 2 acres of land fenced in the back. I mean, it was a nice size place. He comes back with this super low number and I'm just like, yeah, I want it.

And so I jumped on. So jumping back in time, man, I'm back where I started. I'm back in the same building. I love that. Do you think that he was doing that out of, out of homage, if you will, or to support you and help you get a leg up? What was his reasoning for it being so low? I think so. I— all the people I've met in this industry, I think that I have the most respect for him.

And it's mutual. He respects me and he's— Lucas and I have been telling you about PartsTech for a while now and how it gives you access to unlimited parts and tire vendors and direct integration with over 35 shop management systems. And now they've just launched a new referral program. All you have to do is open your PartzTech account, go to My Shop, and click on the Rewards tab.

There you'll find your referral URL, which you can share via email, text message, or on your social media. If your referral signs up for a new account and places 5 orders in the first 30 days, PartzTech will send you a $100 gift card. That's it, nothing else is needed. Your referrals can get you $100 just for using PartzTech. Which by the way is absolutely free to get started with.

So if you're using PartsTech already, start sharing that referral link. And if you haven't signed up for PartsTech yet, what are you waiting for? Click on the link in the description or go to partstech.com/podcast. That's partstech.com/podcast. Hey, one more thing. If you find out that your shop management system doesn't integrate with PartsTech, it's time to upgrade. David and I use what we believe to be the very best system on the market, Shopware.

With unmatched features like Parts GP Optimizer and DVX, which is their digital vehicle experience, Shopware really is way more than just a shop management software. With it, you'll be able to create an immersive and interactive experience for your client, setting you apart from everyone else using run-of-the-mill software. Are you ready to upgrade? Click the link in the show notes to get started.

Well, he's never come out and said, hey man, I'm really proud of you. But you know, you get that feeling. Like he's like, he's glad I made it. That's awesome. And to me, that, that's, that's a lot because he's, he's an old school guy, man. He doesn't have the best personality. So like he doesn't get along with everybody. He's kind of disgruntled.

He's an old guy. He's just, yeah, he's not a friendly guy. So to get into a relationship with him and it's just kind of weird. But yeah.— you know, that pathway. And so like, one of the things I want to ask about is, because you've talked a lot about the fact, hey, I was a technician, I was in dealership for a while, and then I went other places.

What surprises were there when you moved into that ownership role? Because like, there's a lot of technicians who listen to the show, and I just want them— I want to do everything I can to make sure they're prepared for the surprises. And yeah, a lot of them won't believe us, and they're like, nah, guys, you guys are just trying to hog all the money for yourself.

No, I wish I could figure out where I'd put it at this point, you know, but still, like, what surprises do you think were the biggest ones for you coming into this, you know, being a tech to an owner? There were a ton of surprises. I think if I could give a couple pieces of advice to anybody starting out, number one, check your labor rate.

These guys coming out, man, I thought the same thing. I started out, you know, I was like, oh, this guy's charging $110. I can do it for $50 and still make more than I was making working for this guy. But then you don't take into account overhead, insurance, expenses. Stuff adds up so fast, uh, and everybody wants to be the good guy.

That's the thing. That's what we want to do. We want to help people. That's what we get into this to fix cars and help people. And so I think we get a little carried away in how we help these people. Um, I think that we sometimes sacrifice for ourselves and, and take the hit in the beginning because we, we want to do a good job and we want to be what we consider fair at the time, but we don't understand what fair is until you're in this, in this role of an owner and you have to deal with these things on a daily basis.

You don't really comprehend fair. For sure. Fair is not charging $50 an hour and cutting him a deal because there's other things on the back end that you're robbing from that client. Yeah. Like you're not providing certain, something goes wrong. Amenities, things that are external that you have to pay for that you're not supplying and providing. Like, these are things that you need to think about.

So you need to be in a fair rate. Like, make sure you're in the same market area as everybody around you. Don't try to come in super low because you're, you're gonna get a lot of work. But I can attest to this, like, your labor rate's gonna attract your clientele. Dude, if you're at $50 an hour, dude, you're going to get $50 an hour clients and you're not going to enjoy it.

You're going to hate your life. You're going to hate it. And here's the thing about it, right? And what they don't understand, I've talked to a lot of other shops about this and they said, yeah, but you're slower than I am. I said, right, I am slower than you are. But if you look at my revenue and your revenue, I did more revenue than you with less work.

I'm making 3 times as much money. And I can sleep at night because the other side of that is then they say, well, You know, you're robbing these people. But, but no, it takes money to provide the services we provide. Yeah, I want for first and foremost, my guys make top wage. I have to pay these guys. I want them happy. I want my technicians happy to come in.

I don't want them coming in worrying about how they're going to pay their light bill. Like, that's not something they should be concerned about when they're on my time. They should be concerned about— here's the thing, is think about how many technicians right now are complaining about it, saying, I don't earn enough, I'm going to go start my own thing. And then they do that.

It's worse. It gets worse. Yeah, exactly. And I don't think they're grasping it. I don't think that they understand it. And they say, I'm going to go start my own shop. All right, well, look, the reason that the industry is where it's at right now is because of jackasses like you going and starting a shop without understanding the financials. Exactly. Charge a subpar rate and then you figure out you get jaded, you start treating your techs like shit because you're not doing what you need to do to be able to pay them.

Right. Like you become the problem that you supposedly hate. Exactly. That's what it's all about for us, is educating them so they don't do that. Well, and they don't take into account that this is also— when they do that, say you have— I've had a couple lately, they've left shops and opened shops in my area. It's a huge market disruption. Yeah, it's huge.

And it's temporary because those people that flock over there because they're like, oh, it's the newest, latest, and greatest, and they're way cheaper than this guy, and they're certified, and But yeah, in 6 months when they close because they can't pay their bills because they're not charging you accordingly, you're back at my shop. You're back here. Yep. And I'm cleaning up the messes.

Exactly. And it's not good. Most of the times it's not good. But to go back, you're talking about how bad it is in the beginning. I'll tell you a really funny quick story. True story. In the very beginning, it was so bad that for a period of 2 months, I had 2 of my daughters were born at the time. They were very young.

I'm thinking like 6, 8, uh, 5, 7, somewhere around that age group. We had to live in the shop for a 2-month period. Holy cow. We had to. We, we could not afford rent. We couldn't afford water. So for 2 months we lived there. There was a room off to the side that was private, and I don't tell very many people this story because it's kind of embarrassing, but people need to know just how bad it can get.

Like, from people looking at me now would be like, oh, you never did that. Yeah. Oh yeah, I absolutely did. My wife, myself, and two kids lived in one room for two months inside my shop. It happened. And we were taking showers in the sink. It was terrible. It was terrible. If you knew how many people have been in that spot. And I don't know about you, because like, if it hadn't been for family, I would have been there too.

Right? Oh yeah. And, and the thing is, is like, it was just for me a lack of knowledge. It was a, it was a lack of understanding the financials of the business, right? And you know, it's like we were talking to a guy yesterday, like the seasons of your life. When I was, when I was 17, 18 years old, buddy, I didn't have a care in the world.

I was full of piss and vinegar. I was going to take over the world, right? And then like, you know, I get to 25 and like, ah, this is not what I thought it was gonna be. And like, this shop ownership shit is not like where I thought I was gonna end up. Like, I thought I was gonna have millions by now, and I was gonna— like, things were gonna be moving better.

And, and I went to training and started kind of trying to like turn things around. And then like, here I am at 41 saying, you know, like, the trajectory for my life that I had at 17 and 18, the trajectory I had for my life at I had for my life at 35 and now 41 are all very different, right? Like what I'm trying to accomplish, what I want.

And what I've learned is having the right people for the right season in your life. You know, I'm, I'm going through all this stuff with the finances and trying to make things work. And now I'm saying, okay, the businesses are big enough now that I don't need to be trying to handle the finances and be a COO, right? I don't need to be trying to be a CFO for the business.

I need to find somebody to help me manage those things and do those things. For the financial aspect of the business because it's too big. It outgrew me, right? Yeah. And see, I think when I was 18 years old, when I was 25 years old, I didn't have any plans of it outgrowing me. I didn't think that was possible. I thought I knew everything I needed to know.

Now I'm looking at it saying, hey, I'm not capable of doing what this business needs me to do. I need somebody that's specialized and knows what they're doing, you know. Need help. Yeah, you're, you're right that the seasons I don't know where I was going to go with that, but I had a thought for a moment about the season because you're right about that, that the people that I started with absolutely couldn't be the people I'm with now.

Amen. They worked for the time that they were meant to work for and that was it. And now we're here. And I know every shop says it, man, but I'm telling you, I've got the absolute best crew of people right now. Sure. We recently had to let a guy go. Because of toxicity in the workplace and it was creating a lot of friction.

But man, when that guy got removed, everybody blossomed. This place is smoking. These guys are on fire. The techs are killing it. The service provider's killing it. My service manager's killing it. Everybody's happy. So the other piece of advice I was going to give is like, be careful who you let in your circle. Yes. Don't hire a guy that's got a toolbox.

Don't hire him because he's got 35 certifications. Don't hire him because he's got 20 years experience. In most cases, I found 20 years experience is terrible. Yes. That's the guy you don't want. That guy's got 20 years of bad habits. And here's the thing, he's been in it 20 years and you start looking at his resume and you're like, in 20 years he's been at 7 shops.

Why has this guy been at 7 shops? If he is this good, why has somebody not kept him? Because if I've got a guy that is that good and he tries to leave, I'm going to fight tooth and nail. I'm going to be like, hey, what's going on? Are you not happy? And it's a manager problem? Is the money a problem? What's the problem?

If it's something in my control that I can fix, man, I will fix it. Yeah. Sometimes it's not, you know, they're moving out of state, you know, a family member dies and they got to go help somebody. That's understandable. You don't want it to happen, but it happens. But the crew that I've got right now, man, I wouldn't replace a single one of these guys, man.

Yeah. I'm 100% with you. Now, Let me ask you this, because like that trajectory and right when we talk about exactly what you're describing right now, the toxic tech, the 20-year tech that's bounced around all over the place. I mean, I'm kind of to the point right now because of all the comments I get all the time about like, hey, you don't understand how bad the industry is.

Every single one of those that's describing all those issues, it's all dealership. What I was going to say, but is it interesting? But is it really that bad? Is it really that bad? I think it's a bandwagon. I think it's, it's a snowball effect. You get a couple of guys complaining and then this guy starts thinking, you know, well, maybe it isn't as good as I thought it was.

Of course, we've all got hopes bigger than what we got in reality. It's never going to be what we want it to be. But is it good? That's, that's the question, man. Am I going to live in— am I— now, now here's the thing, right? Because I'm with you and that, that, see, that's why I couldn't couldn't grasp it when we were talking about the independent world.

So I started asking more questions and dropping, dropping videos that would attract that commentary, right? Like to try and get to the bottom of it. I follow your videos, so I see them. I watched one this morning. I'm like, yeah, this guy sits on it. Well, so like, here's the thing is like, now that I go back and I'm asking those questions, right?

I'm starting to say, now wait a minute, it sounds like all these problems are dealership problems. Well, it's flat rate. Well, I, I, it's gotta sit there for 2 days waiting on approval. It's got a— and I'm like, who would do that? Like, why would you? It's sitting on the lift waiting for parts for 4 days. So I don't know, man. I've tried to have this conversation before, but the problem is it is so multilayered and complicated.

It's not— there's no simple answer for this. It's— there's a lot of problems going on and some of it's management, some of it's service advisors, some of it's parts department, some of it's the technicians, some of it's the client. It's a lot of things factored in, but you've got to know, you've got to address these things one by one. You can't fix all of it at one time.

You've got to find one thing to focus on, get that correct, then move to the next. If everybody's doing their job and they're doing it to the best of their ability and they're functioning and everything is going as it should go, these problems don't exist. Yeah. A lot of these problems are from people that just, you got people in place that don't care about their job.

And now not only is it affecting them and your company, now you're affecting your other people. Well, I mean, look, here's what I'm seeing, at least from my perspective and talking to all these guys. I think it's got to start with the compensation plans. It's got to. I think in dealerships, I think the problem starts with the service managers. And I think that it drips down from there.

Because the service managers— look, I've had firsthand experience with a dealer service manager in my facility, and he was a sweet guy. I'm not saying anything bad about him, but his belief system, the way that he was compensated previously, it— for him, it was, I'm against the techs, I'm against the advisors. Why? I need them to make lots of money, but, but I'm gonna, I'm gonna nitpick everything they do.

I'm looking because I'm trying to get my bonus. I care about my bonus. I care about my bonus. And so everything they did, right? Like, and I started asking questions of these other dealer guys and it's like the toxicity starts at the top, right? Like in the independent world, we're talking about toxicity at the technician level, at the service advisor level. But where'd it come from?

We're finally getting into a good roll and here comes Lucas interrupting the episode. Folks, now you know exactly why I hire Shop Marketing Pros to do my shop marketing. It's that I am spastic and all over the place and I lack consistency. But here's the thing, that doesn't work in marketing. You see, marketing takes 30, 60, sometimes 90 days to be effective, and I was all over the place with my marketing.

There was no consistency at all. Caused these waves in my business because I was so inconsistent. And that's why I am so happy to refer Shop Marketing Pros They bring consistency. They are true professionals. I'm going to encourage you, go down to the link below and get your free digital marketing inspection. Just like we do digital vehicle evaluations for automobiles, they're doing the same thing about your marketing, and they will help you get your business turned around.

To get that out of our shops, but in the dealer world, it's starting to sound like all the toxicity's at the top and just dripping down all over everybody else, you know. Well, and that mentality is, is a terrible way to think about it because we're— you got to think of it's not a me, I situation. We're on a team. Yeah, we're all on the same team.

Yep. It's just like a football team. It, you know, this guy, if he's not doing well, it's going to affect this guy and the whole team loses. It's not a one-man run. And the problem too is in, in this, it's crazy because the setup It's weird that a person would think solely about themselves in a situation where you're involved with such a bigger picture like a shop, because I had early on— I think this may be one of the reasons why my original guy that hired me, we get along so well, because I actually cared about his shop.

And he asked me one day, I think I'd been there like a year or two, and he sat down one day at lunch because we used to go on Fridays and we'd go eat lunch and hang out. And he said, he said, why do you worry so much about the things in the shop? And why do you worry about this? He said, that's, that should be my job.

And I said, I work here. If this shop doesn't do well, I don't do well. Why would I not care about how this shop looks and performs and, and how things are done? If, if I don't care about it, it's affecting me. Yes, some of this is your job, but if you're busy I'm not doing something. What does it hurt me to pick this up and do this?

It's going to help me. It's going to help the shop as a whole. Why not? If, if you fail, I fail. Well, I mean, I, I think that, that the way the compensation structures are set up in some of these organizations, right? And it's one of the reasons that I've kind of made a rule at this point that I'm not going to hire dealer technicians anymore, uh, between ability between attitude, between expectations, like lots of different things.

And, and what they've started doing recently is they just keep raking up on what they pay people. And it's like, so you're going to go to a shit environment because they pay you more? And they've got this concept, this mentality, it's all about the money. We'll see what they don't understand is, is while it can be all about the money, the toxicity is creating this need for it to be all about the money, right?

The attitude from the top and driving it so hard just for the money, like they're, they're pinching the pennies on the technician and they're trying to figure out every way they can improve the profitability of the business. So they pinch the technicians, they reduce what the technician earns. The technician then becomes toxic because he feels like they're constantly after his money, right?

It's, it's a dog eat dog world and the advisor gets paid more. That's not fair. And all of this noise, all of this stuff, but it all starts at the top in the compensation package for the manager. So he creates compensation packages for everybody else that reward him. And so if it, if it's constantly this drip down and all he cares about, his only focus is the money, it's not about taking care of the people.

And, and I mean, watch some of these coaches that have come out of the dealership world. Look at some of these 20 groups. Look at what they, they talk about. I saw the money. It's all about them, right? Like, and, and what the techs don't understand is it doesn't have to be like that. Well, there's a guy, I can't remember the guy's name.

Now, obviously I'm not going to say it on here anyway, but there's one guy in particular I thought about when you said that he does videos. And this guy is, I guess he's a service advisor trainer. Yeah. And the techniques that I've seen this guy talk about as far as like selling, and you know who I'm talking about. I'm like, why would you even say that?

First of all, that's not ethical at any point. Second of all, you're saying this on a public content. Yeah. Why would you do that? Why? It makes no sense. Look like jackasses. Thanks. Exactly. And then— and now we're already having to fight this reinforced notion that every shop is trying to rip you off and every shop is unethical and every shop is, you know, doing it wrong.

I've been fighting this for years, man, and I'm still fighting it. And I'm— and the thing is, we educate them one at a time. You can't save everybody, but if you've walked through my door, you're going to get educated. You're going to get educated. You're going to find out how you should be treated and how it should have been from day one and the way it should be done correctly.

And going back to what you were saying about the compensation plans, I— we got away from flat rate a long time ago. Uh, my guys are on salary, my techs, and then they have a comp plan. So They get an hourly wage once they surpass their salary. So let's just, for example, let's just say they made $500 a week, which is not true.

These guys make more than that, but $500 a week. So we would give them something like a flat rate hourly, you know, rate of $45. So once they say they did 40 hours, obviously by flat rate standards, they made more money than their salary. That's what they would take home. But in the event that they didn't, these guys are still making a good paycheck.

If they turn 5 hours, I take the hit. Yeah, I take the hit. 100%, man. So it's a win-win for them. They're going to— if they don't turn hours, they're going to win. If they turn hours, they're going to win. So there's— I had a guy, he questioned that a while back. We had a conversation. He goes, but that's not fair. You're going to lose money.

I'm like, no, because here's the thing. Once these guys know that they can trust you, and that they're gonna make money, they're gonna make you money. That's what they're gonna do. They don't have to no longer— my old boss had a saying, he said, if I don't have to worry about my money, I can worry about your money. Yep. And if you can get the technicians in that mind state so they're not worrying about their money, they can focus on your money.

Yep. When they're happier, they're more productive and they do their job efficiently. Well, I mean, but it's terrible that we're to the point in the industry that the technicians are so jaded. They don't ever believe believe that somebody would actually try to take care of. Yeah, that they don't believe. And, and, you know, my question— I posted that video saying that no technician needs more than one bay.

And so it was a bit of a troll video, right? Because there's others coming out after it. But the point is, is like, why would we need to push that hard if our industry charged what it needs to charge, right? Let's think about this for a minute. If we charge what we need to charge and we build appropriately and we set things up in a efficient and productive way, the technician doesn't have to scramble that hard to make a living, right?

So if he's in one bay, hey man, just put it back together and get it out. I'm paying you 40 hours anyway, right? Like, it's not that big of a deal to put this back together. And let's try not to go so deep that we can't push a car back out. I'm not asking you to do extended warranty. I'm not asking you to tear something down to prove to a warranty company that this needs to be covered.

I'm saying let's get this car back outside. Let's get another one in. Let's take the time. We've got equipment to move cars. You don't have to kill yourself to do this. Let's make sure you earn enough that you don't have to run 3 bays to survive. Right. But, but notice what they all did. They all went to, you're trying to take money away from me.

You're trying to destroy what I've got. You're trying to make me inefficient. You're trying to— it's all about take, take, take, take, take. And if you start asking questions, you figure out like every single one of those commenters, was from the dealership. I need 5 days to survive in the dealer. Well, that's a you problem, boo. Get out of that dealer. Like, if you're not figured out that they're the people who treat people like that, I mean, come on now.

Exactly, exactly. And I've got— that's another thing you have to overcome in this industry, man. When you, when you hire people in, the last guy, last couple guys I've hired, like, they come in, they're gun-shy, man. They're like some of the clients that come through our doors, you know. They've been burned, they've been abused, they've beat. So when they come in, it's hard to get them to trust you.

It takes a little while to get them to that point, but once they see, they're like, man, this is great. My service advisor just yesterday, he's like, dude, you're the best boss ever. And I'm like, why? He goes, I've never been treated like this. I'm like, really? Like, you've never been treated like a human being? He's like, no, I really haven't. Yep.

And it blew my mind. And I'm just like, I'm like, I I don't know, man. So much. So we can go so far off onto that one. Yeah. I think it's so lacking in this industry, treating another person like a human being. I think they're, they're seen as production numbers. Yeah. Right. In, in that world, they're seen as production numbers and people get mad at me because I push back against some of these coaching companies.

I push back against dealerships and it's like, right. When you start seeing human beings as numbers and that's the only way that you can see them. I get that a big organization, it's almost impossible to know your people and, and all of those things. But see, for me personally, that's not what I desire. No, that's not the type of organization I want to run.

That's not where I want to be. I want to know my people. Exactly. My people are taken care of. And so if you want that experience— now look, plenty of technicians, all they care about is the money. All they care about is what they can get. They don't care about the quality of work they're putting out. They don't care about putting their name on shit.

Right? They care about like, hey, I'm just trying to get this out of here. Great, you're a great fit for a dealership. You're a great fit for a chain. You're a great fit for one of these people that's coached by these coaching organizations. Hey, just get them in the door, just get them in the door, turn it fast, turn it fast, turn it fast.

Great, go work for them, right? And you can make a bookoo of money doing that. Yeah, exactly. But I'm saying like, that's not what I want, you know? So I've had a lot of experiences with coaching companies over the years, and I'm not going to say that they're all bad. I'm gonna say that you quickly will outgrow them no matter who you pick.

I've actually used 3 different ones. There was good things, there's bad things. There's things I kicked back on and they don't like it when you kick back. Yeah. They're like, well, what are you paying us for? We're trying to tell you how to make money. That's great. I wanna make money, but I wanna do it the right way. I don't wanna, you know, abuse my guys and have them quitting.

And now I'm down to one tech because we made 'em all mad and they've left. That's not good. I want to do it within my ethics and morals. Exactly. I don't want to lose myself in this. I don't want to like marginalize what I like about myself and my belief system because it's exactly money. I mean, it's money, dude. Like, I don't think they understand that when you die— I was talking to my aunt the other day and she said, you know, I'm gonna be cremated and I'm trying to figure out what to put in my mausoleum.

And she said, all I'm gonna have is pictures because I don't have any money left. So I'm gonna have you guys take all of these pictures and put in the mausoleum. Yeah, for safekeeping and whatnot. And I'm like, I— it was just like a wake-up call to me that, oh my God, here we are, we're so focused on this money aspect of things, we're so focused on, yeah, on what we're gonna get.

One day you're gonna be dead and it's not gonna matter. Like, that— I get building generational wealth, I, I get that, I understand that, but that's a strategy that's not seen in these organizations. No, they're not trying to teach generational wealth. They're trying to keep you growing so you can continue to pay them. Exactly. And part of that too, you're right, man.

Like at the end of this deal, do you really want to be 55, 60 years old? I've seen a lot of techs retire out, man, and they just wasted their whole lives being miserable. Like, why? Like you wasted everything to gain what? Yep. Yeah. A couple of good years of fishing. Across the back wall. Worth but $5,000 now. What are they gonna do?

They're gonna have to sell that off so they can bury you now? Bury you in it? Put you in the box and put it in the ground? I mean, what are you gonna do? Yeah, yeah, there's so much more to this, man. It's not, it's not all about money. Money is primary. I mean, we got to have money. We have to live, we have to operate.

Yeah, and we want people to be successful and happy, but there's a way to do it. Yeah, that's— and if you focus solely on it, you're going to go the wrong way. You can't. Yeah, absolutely right. Like, well, you just, you can't see the forest for the trees when that's the only focus that you have. Yeah. You just cannot. The loss of your ethics and morals to gain more money will not net you a better result.

I promise. Right. It's not worth it. I've seen people do it. It like, you can stack that pocketbook full, but the more of the ethics and morals that you lose, that perspective, that, that guiding light, if you will. As you lose those things, you start making decisions which put you in peril. They do. And it's a snowball all the time about the coaching companies and, and how it's like a frog in a pot of boiling water, right?

They get these shop owners in the pot of water, it's cold, it's not that big of a deal, and they start turning the heat up a little bit. They're, they're encouraging them to do things. They're, hey man, it's making money, things are good, things are good, things are good. And eventually they look up The pot's boiling. Yep. And you know, there were a lot of shops who went out and they implemented some of the things that were taught by some coaching companies.

And then they message me and they say, hey, like I don't have any clients and all of this is really kind of going downhill. What do you think happened? What, where did I go wrong? Well, you followed a coaching model that was designed for a metro area that doesn't care how it treats people, that doesn't care about the income, doesn't or about the outcome for those people.

It's only focused on the money. And the idea is, is I can replace a tech, I can replace a client, I can replace a service advisor, and all you have to do is keep replacing them over and over and over again, and you'll just keep making money. And they, they don't really come out and say it like that, obviously, because they wouldn't have any clients if they did.

But, but then they tried to implement that in rural North Carolina. They tried to implement that in rural Florida. Yes. It's not going to work. It doesn't work. It doesn't work for it. I've had this argument. I've had this argument with coaches in the past. They're like, like, great, it works in Las Vegas. Cool. Doesn't work here. Yeah. Like, we know this is a small area.

We know everybody. Everybody knows everybody. So you make one guy upset and everybody knows it. You can't, you can't do that. Like, we don't have the people to burn through. Right. So we have to build relationships and we have to gain trust and we have to do things correctly and we can't abuse that person's trust while they're in our shop. Like, we have to do it this way.

And the other thing is too, the amount of money some of these coaching firms charge, man, it's ridiculous. And they're, and they're so underhanded because you'll get logged in and signed up and then 7 months down the road you're like, I don't think this is working anymore. Like, oh yeah, by the way, you're in a 2-year contract. You go ahead and default and our lawyers will be contacting you.

Oh, great. So now not only am I unhappy and I can't use the advice you give me because half of it's garbage, now you're going to, you know, basically take my money for the next 2 years. So great. Yeah, good job. Good job. That's everything that your company is about right there. And they're teaching— they're teaching shops to do the same thing in one way.

Exactly right. Like that. Exactly. And then we look up and we say, why is the industry shit? Why does everybody hate it? Exactly. That makes sense. Well, let me ask you this, like, what was your journey when we talk about like shop management software, stuff like that? Because that's one of the things some of the shop owners who started years ago, one of the things that I think is important is, is there was a trajectory where we were on pen and paper and we began to move through shop management softwares.

Tell us a little bit about your journey through the shop management software. I knew you, I knew you were gonna hit on this topic. So, Yeah, it started out exactly. We started out with paper and pen. My first work order was a little pack of work orders you would buy from Walmart in a little plastic wrap. They were like two-piece copies. Yep.

That's what we started with. And then I think I upgraded from there, had a Mitchell rep come by. This is way early on, man. We had a Mitchell rep come by and he's like, hey, we can do this software. It's only this much money and You get all this technical info with it because you can have on ProDemand or whatever it's called.

Right. It comes with it. I was like, oh, that's cool. So we started there. We grew, we moved on. I went from that software to, man, I'm trying to remember who the second software company I was with. I can't remember now, but it was right about the time I started doing my coaching. So it was probably, uh, like Pace Software or something like that.

Yeah, for sure. Very antiquated, very hard to maneuver. Uh, I think for the year that I had it, I fought more with inventory problems. It was never right. You couldn't make it right. There was no way to audit it. It was a nightmare. So we left that. Uh, and then we moved on to, uh, MaxTrax, which was not bad. MaxTrax was not a terrible software.

Um, could it have been better in a million ways? Absolutely., but it was great for the time. We used it for several years. We moved through that system and then, uh, moved into some other things. We went to, uh, Shop Monkey. Who else did we use? Went through Shop Boss. We went through several, uh, and I ended up hearing from a friend about Shopware.

That's kind of where we've been for quite a while, for years. And I was like, man, I don't know. I've been through this before. I don't like having to pay all this money to onboard the information from my current software. It's a big deal. If I don't like it, then I'm screwed. I got to go back and pay, you know, to get all this stuff reintegrated to the old software and to make this move.

And it's disruptive to the techs. It's disruptive to my clients. And after about a month of conversation, he talked me into it. He's like, I'm telling you, if you swap over, You're not going to regret it. I'm like, I'm going to take your word on this, man. I'm going to do it. And I did. I swapped over and man, I think the biggest selling point for me that finally got him to tip the scales was he's like, look, man, this was like created by a shop owner.

Yeah, for sure. And I'm like, for sure. I'm like, well, it's got to be good because they know what we need. Yeah. And but, you know, all the years I was burned with other softwares, man, it was like I had this reservation and I'm like, I don't know if I want to do this. And then finally I made a decision to do it.

And man, I, I only thought about leaving it one time, and I had a rep call me up and he's like telling me about his software. And I think it was, it was ShopBoss, which I think is actually a sister company. Yeah, but it is now. So yeah, I think they bought them. But at the time they're like, yeah, you should do this.

I swapped over and then, man, biggest mistake of my life, dude. It was tough. It was tough for months. And finally, Thank God over the years I was smart enough to know, hey, I'm going to move over to ShopBoss, but I'm not going to cancel my subscription with Shopware. I'm going to keep paying it. Yeah, just in case, man. There's a safety net.

And several months later, after we swapped over, I was like, that's it, we're back. And I called Shopware up and I can't remember who I talked to, man. And I think I talked to Nicole. Who's the person I deal with mostly. And I was like, look, I made a mistake. I was wrong. I was wrong. Take me back. I'm sorry. I'll never do it again.

And I do. Honestly, if anybody calls me with a software referral right now, they're wasting their breath. I'm not going anywhere at this point. And honestly, the two things that I had fault with the inspection portion of it. Yeah, they literally fixed it a month after I left. I'm like, are you freaking kidding me, man? Like the one thing that I had a problem with, I leave and you guys fix it the next month, man.

So I think so many people go through this, right? And what we all fall victim to is we like the new flashy bells and whistles and all the things. Yeah. We don't understand the complexities that come along with that. Right. And so for me, right? Like what are the big things that I look at when I'm choosing a software like that? I want something that's easy to onboard my people.

People with. I want something that's easy to use. I don't want all the buttons. I don't want all the bells and the whistles. I want the product to do what I need it to do. Yeah. And see, everybody that comes into shop management softwares, they expect it to work like their process works. They don't know how shop management softwares work, Bubba. Yep.

What the way it works is, is you build your process around the product. And so like Carolyn, when we, when we first signed up with Shopware, I was having troubles. She sat down and said, hey, here's how I designed this to work. We implemented that, and dude, it's been smooth sailing ever since. I mean, that's our whole workflow. Yeah, and I was going to say too, the, the good point is if you do want the bells and whistles, they've got them.

Yeah, I just recently switched my CRM over to Shopware, and, uh, actually swapped through Shopware, I was able to get my website swapped over to Autoshop Solutions, right? So now we are completely Shopware exclusively. Like, we've swapped everything over to those guys and we don't have 3 or 4 programs running, which was another issue too, because with the inspection process not being what I wanted it to be or expected it to be at the time, we had a separate company for that.

And then for my CRM website, we had another company. So the issue becomes you're touching your clients too much because you've got notifications coming from 3 softwares And it's confusing. It's confusing. So my service advisor is running like this rat race. He's like, I've got stuff coming in on email. I've got stuff coming in from here. I've got stuff. I can't keep up with all this.

Too many messages from too many places and things were getting dropped. So when they, when I talked to them a month or two ago about the CRM and everything, and we decided to swap over, I was like, man, this is so good, man. Like we're going to be able to put everything in one house, one communication, one system, done. And do not regret it at all.

It was a little bumpy moving into the CRM because obviously new softwares are different, you got to get used to them. Yeah. And so we've got all the bugs worked out, it's working great now, and man, it's, it's perfect. Everything works great. So you— let me ask you this, what kind of cars are you— are you still Euro? Because I know you went to Euro when working for the other Right, so that's all we do exclusively.

So our main focus is Porsche. That's our number one. So we're a Porsche-driven shop. Like we do a ton of Porsche. We have our shops divided into two. So we've got half the shop is Porsche exclusively. That's all those guys do. And they also do like exotics. So Ferrari, Aston Martin, Lamborghini. Those cars. And then on our back shop, we've got the remaining Euro stuff.

So the BMW, the Audi, the Volkswagen, the Mercedes, the Land Rover, those guys do that. But we're strictly Euro with a Porsche focus. I love that. So let me ask you this then, because that clientele, especially when you get into exotics, is expecting something very different from their experience. Yes, right. It is. And, and I don't care what anybody says, it's a lot of work to get them to the point and to hold them— I don't want to say like to keep them happy, but like they have very high demands compared to a standard walk-in client, right?

They really love the car, they spent a lot of money to get the car, right? That car is something very special to them. right? Do you think that when we talk about like shop management and process flow and all of those things, that you have to run different processes and the shop management software has to be a little more astute? In other words, you have to have the process flowing really well compared to standard domestic, even standard European, right?

Do you think it makes a difference? I think it absolutely makes a difference. I think that I, I have to give credit to Shopware because That's part of what makes us stand out. Like the updates, the communication through the system, the way it's set up, the way that the repair orders are laid out. Like it really helps out. And we, it's weird because we get compliments because you would think going to a dealer, they should be the best.

They should have the best systems. They should have the best communication. They should have the best repair order information. And time and time again, we get compliments all the time to the service advisor. Hey man, your system is great. We love it. We love the text. We love the fact that, you know, we can go into our repair order anytime and look at it and look at the updates.

Like, they love that stuff, man, because they can see it in real time. Once you send them and share that repair order, it's a live link. It's a living document. So, you know, they can go in there and look at the status. They can say, oh, he's still waiting on parts. Oh, look, there's a note here. Let's see what the technician said.

They love that. They love getting that update and being able to see that stuff. And it also, it kind of makes them feel involved with the process more, right? Which is great because we want them involved with every step, especially in the line of work that you're in. Now let me ask you, how do you find— because like everybody's out here saying, I can't find technicians, I can't find service advisors, there's nobody out there.

But here you are, you've got a shop full of techs that can work on exotics. Yep. And high-end cars. How did you find a staff? So I'll tell you the secret. You ready? Yep. Quit hiring technicians, man. Quit hiring technicians. The last guy I hired was a lube guy. Yeah, we brought him in, we've trained him up, he's been here for a while.

This guy's working on everything now. He's doing diagnostics, he's— we sent him a training, that's That's another key thing that people leave out. Independent shops are terrible at this. Spend the money on your guys, man. Send those guys to training. Spend the money. They're scared. I talk to shop owners all the time and they're like, yeah, man, but you know, training's expensive.

And if this guy leaves in a year, who cares? He's representing your shop right now. Who cares what he's doing in 2 years? Spend the money, dude. Send that guy to class. $500, $1,000, who cares? Right. Get him up to speed. Give him the— equip him with what he needs to do his job. Yeah. And let me ask about that though, because I think this is important, right?

You were a technician. Yeah. How are you determining it? And I don't want to say worthy, right? I shouldn't say worthy. Right. But, but we all know there are some technicians who come in and they really want it, right? Like, I don't know if you know anything about the EOS operating system. Wants it, gets it, has the capacity for it, right? There's some that want it and they get it, but they don't have the capacity.

How do we judge that? How do we make sure that the people that we're putting in these bays have the capacity that we need them to have to be able to do the job that we need them to do? You're not always going to find the person with the capacity. You're gonna have to create that person. You're gonna have to mentor that person.

You're gonna have to, to shape that guy. I, I think I've tried different hiring models over the years. I've done it all. I've tried, you know, looking for qualified people. I've tried looking for people who have experience. I've tried looking for guys who have tools. I've done it all. The number one thing that I've found that works, man, if you find a guy who has a good attitude and he's honest and he doesn't come through the door and say, I work on everything, you know, I can fix everything, I'm a 20-year master tech.

I don't even want that guy. Yeah, I don't even have a second interview with them. When those guys come in like that, I don't— it's like, okay, good for you. Yeah, you're not a good fit here. Probably not the place for you, but you're not a good fit. My culture is above everything else. I value my culture in my shop higher than I value anything else.

So I'm not looking for a technician. I'm looking for a guy that I can make a technician. Yeah. If you find the guy that can be a technician who wants to do it, but he has the right attitude and he has the right morals, you have to ask the right questions during an interview. I talk about personal life things during interviews, man.

I'm not asking you, you know, have you ever changed the transmission on a, you know, a ZF and blah, blah. I don't get into that. I don't care. We have enough information. We have enough training. We have enough You know, systems and workshop manuals that you will figure it out. How's your home life? What do you like? What do you like to do?

What do you like to do when you're off work? You know, you know, what are your hobbies? That's what I want to know, because I can tell more about this guy asking those questions than I can asking him what he can work on. What kind of human being are you? What kind of person are you? Do you have pets? What kind of pets do you have?

Really? How many? You have kids? You're married? Oh, great. How long you been married? I want to know this stuff, man, because it's not a hiring process. This is like a courtship. Yeah, we're about to get married. Yep, 100%. We are about to get married. We are going to be one. Once I bring you in and you sign that paper, you're my responsibility.

Yeah. So I have to make sure this is a good fit. If we don't have the same values and we don't line up, I mean, it's going to inevitably be a problem. Yeah. Sooner or later it's going to become a problem. And these guys, you get the guys with the right values and morals and the guys that really want to do this.

I've not had one of those guys fail. Yeah. If they fail, you know what? It's my fault. It's not their fault. It's because I didn't do something. I didn't equip these guys. I didn't spend the time with these guys. I didn't get them what they needed. I didn't send them to training. That's the only way they can fail. Yeah. Yep. Absolutely. I think you're 100% right.

And I think that the thing is, is like, it's about that initial process. Exactly. It's about finding the person from the get-go. And then here's the other thing is if they start to turn toxic, if you realize it's a problem, you realize there's something going on, you realize they don't have the capacity once they're in there, the number one thing you gotta do is you gotta deal with it right now.

Immediately. I think shop owners, man, they feel bad and they, they don't want to hurt somebody's feelings, but what they're doing is they hurt the rest of the team. They hurt the client. And so we, we have to understand what's at risk when we let that person stay. I don't think that it's— destroy a shop, man. I don't think they're necessarily worried about the feelings of the people.

I think they're scared of losing a technician. That's, that's very true too. They don't want to be a man down. Right now that guy's a problem, but at least he's making me money. You know, he's turning cars. Yeah. But if you, like you said, if you let it go, now not only is he going to be a problem, he's going to affect the other guys and their production is going to drop.

Yeah. Is it— another thing that a guy told me years ago, and I'll never forget it, we had a conversation. I had a guy who was a problem back then. And I let this go on way, way too long. I put way too much in my early years. I should have cut it, but trying to do the right thing, man. You want to help people.

You don't want to see people fail. But I let it go on and the guy told me, I was like, you know, it's going to, if I fire this guy, this is what it's going to cost me this. I'm going to lose this. I'm going to have to hire another guy. I'm going to have to, you know, jump in the shop. I'm going to, you know, not be available for this and I need to be working on that.

He said, that's going to cost you a lot. He said, but what is it going to cost you to keep this guy? Okay, man, way more. And he was absolutely right, man. It was going to cost me way more money in the end if I kept this guy. I just cut the string, right? Like you're going to lose some peace over it.

You're going to lose some sleep over it. You're going to do sleepless nights. I have had so many, man. I remember a period of time where I had— I was running two shops at the time, man. And I had this one guy, he was a huge problem, and it was one of those kind of problems where you just couldn't walk in and fire him.

You had to walk in and handle this guy with gloves because he was that guy. Like, even though he didn't have a ground, you know, to stand on, he could really— he wanted to make my life miserable. And so I had to be careful about how I addressed this man. There was an entire week I didn't sleep. I would lay down at night, man, I would just be sweating.

And just staring at the ceiling, wanting to go to sleep. I'm exhausted, man. Mentally, physically, I'm done. But I can't. I'm just staring at the ceiling for hours and hours. And man, dude, it was not worth it. At the end of the day, man, if a guy starts showing signs he's a problem, address it immediately. If it happens again, fire him. Don't even ask him.

Don't even talk. Fired. Dude's done. 100%. You can't deal with it. I think that we like have it in our head, and, and I, I hear all these technicians that talk so poorly about shop owners, right? And I think we have it in our head that we almost work for them in some ways. Like, do you know how many shop owners I talk to that they're like, yeah, but he's this and I don't want to— talk to one the other day and he's like, you know, if I tell them what we're going to work on or I tell them when they have to be here, and if I say anything, they get very upset.

Really? Okay, like, hold up now. You can't be held hostage in your own shop. Like, you've got to be able— there has to be a leader. And if you're letting them lead, the— here's the problem is like, I know technicians love to believe that they are leaders, and I know that they love to believe that they know how to run a shop better than anybody else.

I get on old Jeff Compton all the time. They're doing this wrong and this wrong and this wrong and this wrong. I'm like, Jeff, the problem is, is you can't see everything. Like you only see your part of it and you don't see the advisor part of it. And then you don't see the owner part who sees your part and the advisor part and all the other parts.

And plus the bills that come out, right? Like you just don't see it. Exactly. You don't have the perspective. And so I think that if we don't have as owners, this leadership component and, and look, I'm gonna tell you that no matter what, as a business owner, business owner, you must be a leader. And if you don't want to be a leader, fine, go get a job.

Go do something else. Go do something where you don't have to be a leader. You don't have people who are in your employ. And be the kind of leader— and be the kind of leader that you would want to be under. Yeah, remember that, man. People forget this stuff, man. They forget being a tech. They forget what it was like. They get wrapped up in this whole deal and concept of being a business owner and an entrepreneur and they're trying to fit a role that they were never intended to fit, man.

Like you were a tech, you should know what these guys are going through. Yep. Absolutely. Like you didn't want to deal with that. Why would you put them through it, man? Really? Exactly. But see, they lose the perspective, right? Like they don't think about it from that standpoint. They think about the objective. They think about the goal that they're trying to accomplish right now.

And see, here's the deal. Leadership is a skill that must be learned and trained, right? Like, you, you're not going to be a leader unless you invest in leadership. You have to go out and do it. You have to learn about it. You have to develop the skill. It's— and, and yeah, there's some muscle memory to it, but even then, like, I have to go back and continue to train in leadership.

Yeah. So I make sure that I'm staying current and I'm staying moving in a positive direction. I'm understanding what my guys are going through. It's reminding me of things that I forgot about. Because if I'm not developing myself as a leader— and look, I pick on Dutch for this because Dutch is always, you know, this next generation, blah, blah, blah, blah, blah, blah.

And he's openly admitted, like, this generation sucks because I failed you. I didn't make you tough, right? Like, I should have made you put up or shut up. And I'm not going to say that he's wrong, but here's the thing, is like, the next generation has to be led differently than the previous generation. Yeah, the, the skills and the talents that, that you led the previous generation with is not going to lead the current generation.

So we have to stay current on leadership skills. And I just think that if, if you don't develop those skills, man, you are asking for trouble. So are we going to sit here and talk about the generation, or are we going to do something about it? Good question. Amen, buddy. Good question. Amen. And you were talking about the guy, you know, the more like the boss working for the tech.

You're right, man. That happens a lot. But I've got a saying here at the shop. When we've got a person like that, we don't have an employee. We have a terrorist. Yeah. And we do not negotiate with terrorists at all, period. Amen. I would rather have them mad at me. I would rather have a 1-star review. I would rather— whatever I got to do.

Like, but I'm not going to negotiate with you because you're an asshole. Right? Exactly. 100%. They're just not doing it. You can't. But yeah, that's, yeah. 100%, man. Shawn, in closing, is there anything that you would want technicians, service advisors, or shop owners to know about this industry with your experience? Anything that you feel is really important for them to hear? I've got a lot of things, man, but I don't know one specific.

I guess the specific, okay, so I will say this. If, if you really truly feel like you're not being treated fairly and it's not you, do, do self-examination first. Let's, let's look at it. You know, let's not just say, you know, we're being treated unfairly. Let's examine it. And if it's legitimate, try to address it, man. Like it doesn't hurt to have conversations.

And if your leadership in wherever you're at doesn't like to have those hard conversations, then maybe you're in the wrong place. Exactly. You're in the wrong place because we have an open door here. My guys can tell me anything and they know I'm not going to get upset. They can come in and say whatever. I'm going to listen. Yeah, you're exactly right.

And if you can't have that conversation and if the business owner is not interested in improving based on your feedback, like the number of guys that I'm told say, hey dude, I can't say anything to them. They'll fire me. I've seen them fire all these other people who complained. If you're working in a place who's gonna fire people because they gave feedback that would make the business better, you're in the wrong place.

Maybe you should leave. So the industry as a whole, it's got a terrible reputation right now. And you're trying to change that. I'm working in my local area to try to change that. We've gotta change the perception 'cause that's not the truth. It's the voices of a few screaming really loudly is what's happening. And there are a lot of great shops out there, man.

So if you are working somewhere and it's like that, don't feel like there's not options, man. There are places, dude, it's not that hard to find one. There are way more ethical and great shops out there than there are bad ones. You're exactly right. Now look, I'm going to tell you something though. The naysayers, the complainers, the haters, the ones who are upset and always out there rabble-rousing.

I'm going to tell you something about them that I've learned. It's that they say there are no great shops because no great shops will hire them. Okay, true. Great shops are really good at filtering and sifting out the flak, and those guys get put in the, the, the discard pile. They get thrown out, and they're like, there's no great shops out here.

Well, maybe you should reflect a little bit, as you said, on yourself and make sure there's not part of problem that is you. We call those guys bench warmers. We keep them in the file, but you know, they just kind of hang out. So that's exactly right. Yeah, and that's the thing, man. There's just— there, there really is a lot of great shops out there, man.

But again, it goes back to what you were saying too. Most of these guys are chasing a dollar, so it's more appealing to go work for a crappy place that's going to pay $2 more. Yeah, peace of mind is invaluable, man. You cannot put a price tag on it, period. 100%. Don't— I, I think if there was one piece of advice I would give, especially younger techs and those who, who aspire to be owners, don't look at your life right now for where you think you want to be.

Evaluate your life and look out 5, 10, 15, 20 years and think, if everything changed in my life, where would I really want to be? If I had kids, if, if, if I got I got sick and I couldn't work anymore, if everything hit the fan, where would I want my life to be? What type of security would I want in my life?

And would I be okay with it? Exactly. Would I be okay with it? If I lost, like right now, I could lose everything in this building. You know what? That's okay with it, man. I'm okay with it. Yep. You know, I, we're going through all this mess with family business stuff and, and I still laugh at my dad from time to time.

2008, he had got involved with this pastor and the guy got him for millions of dollars. Oh, man. Man, I was freaking out. And I'm like, Dad, you've sunk us. You've done this, you've done that. He's like, ah, son, it'll be all right. It's just money. And, you know, I look back now and all this is going on. He said, son, no matter what happens, it'll be all right.

You're going to live and you're going to die. You better just enjoy the process. Enjoy the ride, man. Getting wound up ain't going to do nothing. Enjoy the ride. Enjoy the journey. I'm getting there. I'm— By the way, you got $1 million I could borrow? Buddy, I got a couple million that I owe at this point. If you can get them to write that off, I might be able to help.

We'll see. We may be running neck and neck. Well, I wouldn't want to trade with you. That's it. That's it. Sean, thank you for being here, brother. Oh, man, it's been great. Thank you for listening to the Changing the Industry podcast. If you enjoy the show, do us a favor and leave us a review on your favorite podcast player, and don't forget to set it to automatically download the latest episode.

Our efforts with this podcast, the YouTube channel, and the Facebook group wouldn't be possible without the support of our awesome sponsors. So please take a moment, check them out by clicking on the links in the show notes.

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Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. 👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/_3LVDHjy2G4   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript:   The Real Story of Growing an Independent Auto Repair Shop with Andy Severin 06242026 Jimmy Lea: Good morning, good afternoon, good evening, or good night, depending on when and where you're joining us from today. It is a gorgeous day outside. I hope you are able to go outside and breathe in some beautiful fresh air. Hey, today is awesome. Today is going to be amazing. We've got a great conversation gonna happen with a phenomenal shop owner, with a phenomenal coach and trainer from the Institute for Automotive Business Excellence. But before we get into that, let's talk about you and where you're at, and what's going on in your life. This is going to be an interactive webinar. Interactive how? In the comments section, in the questions, in the comments, put in there where you're joining us from today. Love to give you a shout-out here as we are on the live webinar. We're streaming through many different, multiple streams. Multiple live streams are going out on Facebook, and on YouTube, and on StreamYard. So we've got all these avenues that we're reaching out to the industry to, to, for us to connect, for us to come together. So drop in the comments where you're joining us from, city, state, and your shop name. Love to give you a shout-out so we can recognize everybody who is here for this live event. And it seems that everybody is shy today. Which is awesome. That's great. You know where the comment button is. When you find it, put in there your information, and we'd love to give you a shout-out here as we're on our live event. Streaming on Facebook, and on LinkedIn, and on YouTube, and on StreamYard. Oh my gosh, this is so awesome. This is so awesome. All right, for our conversation today Jennifer Holbert is here from the Institute for Automotive Business Excellence. She is a shop owner. She is a a coach, an industry coach, an industry facilitator with the GEAR Performance Group, and most recently moved into the position of director of programs with the Institute for Automotive Business Excellence. Thank you so much, Jennifer, for being here. Good morning, good afternoon. Jennifer Hulbert: Thank you. Thank you for having me. Excited to be here. Jimmy Lea: Yes. We're gonna have an awesome conversation. I'm in the good morning part, and you're in the good afternoon part. Jennifer Hulbert: I am. Jimmy Lea: 'Cause you're in New York, right? Jennifer Hulbert: I am. Northern New York. Jimmy Lea: Northern New York, awesome. How long have you been in the industry, Jennifer? Jennifer Hulbert: Ooh 25 years? Yeah, 25 years. Jimmy Lea: So you started sweeping floors when you were, like, five, six years old then? Jennifer Hulbert: Yeah, you could say that. I started filing probably when I was in my teens, but officially joined the business in 2001 when we moved to our new building and started as service advising, accounting, marketing, and then now do it all. Jimmy Lea: Yeah. No, a- and you've had a long journey with the institute as well, joining as part of the GEAR Performance groups, and then moved into being an industry coach. Jennifer Hulbert: I did. Jimmy Lea: What did that... What's that short story look like for you? Jennifer Hulbert: Yeah. I was a group member in group two for about 19 years prior to the opportunity to become a facilitator with the institute. That was four years ago, and just was recently asked and accepted the director of programs position, so I'll be overseeing all of our coaching programs with our owners coaches, our service advisors, and our managers. So just in the infancy of that position right now, and we've got lots of good work to do and lots of exciting things to bring to the industry that I'm super excited to be part of. So yeah, it's been a journey. I, and I know all the things, all the positions, so as, first time coming to a meeting to being an integral part of a group process and looking at elevating our own internal groups and the members that we were talking to, including myself. So yeah, it's been quite the journey. Jimmy Lea: Oh, I love it. I love it. And here comes a shout-out from Downshift with Tanika. "That's my coach, Jennifer." She is. Thank you, T- Jennifer Hulbert: But love Tanika ... Jimmy Lea: Tanika's with Brown's Automotive out of- Yeah ... North Carolina. Yeah. Chapel Hill. David Boy's also saying, "Hey. Yay, Jennifer." And David, are you joining from Minnesota today? Minneapolis? Are you joining from Florida today? Where is home? Where are your feet planted today? Jennifer Hulbert: He's all over the place. Jimmy Lea: Yeah. No, that's awesome. That's awesome. Th- thank you for being a coach. Thank you for being in the industry. You are an inspiration f- to many. You have influenced many, and one of those people you have influenced is Andy Severin with Andrew's Auto. Andy, how the heck are you, brother? Andy Severein: Doing wonderful, Jimmy. Good to be here. Jimmy Lea: Good. Bro, you gotta sit up or something. You look... I got out... We Andy Severein: all these people back. Jimmy Lea: There we Jennifer Hulbert: go Jimmy Lea: I'm so excited to talk to you about this conversation a- as we talk about you and your shop and your business. How long have you been in the business, Andy? What does that look like for you? Andy Severein: I started in this business when I was in high school. I swept floors in a shop when I was 14, 15 years old, and got a job working there right out of... I went to Vo-Tech when I was a senior in high school and and their work work experience program puts you out in a shop halfway through senior year. So I started working there yeah, when I was 17, 18 years old, and was in that shop for, probably till I was about 25, I believe. Wow. Left the industry for a little bit, did some different things with trucks, and was learned a lot about life skills and running a business by owning big trucks. That teaches you a lot quickly. And when I got out of that, I got into the used car side of the business in inventory management, which I had my fingers in the repair side of our inventory. I was... I'd say I was a part of this industry at that part p- that point, that time, that 10 years of my life, but in a little different aspect. Yeah, most of my life I've had my hands getting dirty somewhere. Jimmy Lea: Oh, I love it. I love it. Isn't it funny we all start by sweeping floors? Yep. We got a shout-out coming in from David Boyd. Y- you need... You're sitting low for a tall guy. Reach up there, grab your camera, p- point it down just a little bit 'cause it looks like you're sitting on the floor. Andy Severein: It's down as far as it can go. I'm sorry. Jimmy Lea: Oh, really? That's funny. All right, Da- David, you just gotta get over it, man. Don't worry about it. Hey, so you got out, you went into trucking, you came back into into a shop. Did you go directly into owning another shop, or did you get back into turning a wrench first? Andy Severein: I went into the dealership world and- Yeah ... and purchasing and inventory management. The shop that we 10 years ago we started Andrew's Auto. There was a shop that had been in business for 50 years. It's I could see it from my house. We were that close, and it was a mess. Oh, I bet. I knew the owner. I had a relationship with the owner for years, and I planted that seed at one point. If you're, when you're interested in, in, in getting out that I'd be interested in talking. And I at that point, I don't know if my interest more was in cleaning the property up because I could see it from my house and it's that bad- ... or actually being in the auto repair business. But really my experience, the relationships I had had people coming to me constantly with advice, and had people- Yeah coming to me with looking at... They were looking for advice on their cars, and they were sharing experiences with me, experiences that they had at shops. A lot of them bad experiences. So it really it really it really Made me realize that there was a need in our area for a good, honest repair shop. Yeah. So that was my drive behind it, not having any idea what I was getting into at that point. I just knew how to work on cars. That w- that was really it. But thankfully through my life I've worked for some really good people, and looking back through, all the way back to when I was sweeping floors, what I learned from each one of those employers and even my years in, in being in trucking, what I've learned from each thing really prepared me for where I am today. Jimmy Lea: Oh, Jennifer Hulbert: yeah. For Jimmy Lea: sure. Jennifer Hulbert: In a previous conversation, Andy, you said you- you've always put yourself in front of the right people. Andy Severein: Yeah. Jennifer Hulbert: And I think right from an early age, that was just inherent in your personality to put you- ... in the right place at the right time, in front of the right person, to give you some of these opportunities. Andy Severein: Yep. Yep. Jimmy Lea: Oh, I love that you're learning along the way. At what point as the business grew, at what point did you realize that your role had to change from being involved in everything to truly being leading the business? Andy Severein: Definitely the institute had a, big part in that. I- Yeah. Jimmy Lea: Jennifer, why are you laughing? Jennifer Hulbert: Because we've had this conversation multiple times. Andy Severein: Yes, we have. Yes, we have. So we, I worked from, it was right in December of 2016 is when we started and things went well. We were busy from day one. We grew, we added people constantly. We did our first major addition renovation to our building in the end of 2019. The the, things were going very well, but there was just so many things I didn't know. And when I I was at the Napa Expo in 2022 in Vegas and and was in one of Cecil's classes, and it just it made me realize there was just a lot that I didn't know, and things I needed to know. And w- what he said really resonated with where we were at that point in time. I had no idea. Like I said, I knew how to fix cars. I didn't know what an average repair order was. We were using Mitchell at that point, and I really paid no attention to the reports. I didn't even know what that stuff was, right? We were just using Mitchell so we had a platform to give people invoices. So it taught me right away some of the, key indicators to, to look at, and I thought, "Whoa. We have a long way to go here." Jimmy Lea: Wow, and by that time you had already been six years in the business. Andy Severein: Yeah. Yeah. Jimmy Lea: And- Yep wow, there comes an eye-opening experience. Interesting. That's awesome. What, what- So from that point, you decided, "Oh my gosh, we've gotta change, we've gotta grow, we've gotta develop." What, at what point did you decide, "Hey, you know what? I need to really look at this coaching and training business. I really need to hire me a coach." What did that look like for you? Andy Severein: What drove that and what's still driving me today, I know I'm getting into the future there, but this business, I started it with my son on day one, and the intention of him taking this business over, I hadn't really put a timeframe on when that would happen, but it I think I realized that I need to make this a well-functioning successful business before I hand it over to him. So that, that was really what, resonated to me at that point. "Hey, we have a long way to go." So that that was, why we made some significant changes there right away and adapting to those changes is hard. I tell people that all the time. Being told, "Hey, your ARO should be this," and you think, "Oh my goodness, how are we ever gonna get from $350 to..." I believe our first goal was $550- ... if I'm not mistaken. And, we were inching- And I- ... inching to 500 and all of a sudden it was like maybe we ought to look at things a little different." Now at 600, I'm thinking, "Oh, my goodness." Jennifer Hulbert: I can remember one of those early conversations of, Jen, everyone's talking about this 850, $900 average repair order but you don't understand, my, my customers are different." Andy Severein: "My Jennifer Hulbert: customers aren't going to accept that because I live in an area of the country where we're completely different." And it wasn't until we started to break it down and Andy, you took a really a hard look at understanding the KPIs. We had a lot of discussions on what they meant, what the formulas were, how they're impacted, and that I think opened your eyes to say, "Okay we can do this with a better and a more thorough DVI, and some sales training for our advisors, and a different marketing strategy and conversations with our customers." So I, I was joking with Jimmy before we started this that's typically the first conversation that we as coaches get is, "Oh, wait a minute, you don't understand, my customers are different." And what we've found is what most people realize is no, they're not. They're, they're- ... Jennifer Hulbert: They will respond to the presentations and the information that you're going to give them. And I have some statistics in front of me. In 2022, your average repair order was $367. End of last year it's 732, and I think this year we're knocking the $800 range. So again- ... with some systems, process changes, ideology changes, training, this is exactly what's possible. Andy Severein: Yep. Jimmy Lea: Absolutely. So I have a coaching question for you, Jennifer. How often- are shops coming to you as a coach or you as a facilitator and singing the exact same song that Andy was singing? Jennifer Hulbert: Often. I would say probably 90% of the time. Jimmy Lea: Yeah. Jennifer Hulbert: And it's because we're fed, there, there's a lot of noise out there. There, there's a ton of noise of what the industry should be. There, there's news articles there's all kinds of news report of what our industry's reputation is, and it's not positive. So we look at this differently. We wanna educate our customers on what's best for you and your vehicle. Nowhere in our sales process that we teach at the institute or that we coach is a hard sales process. We're gonna look at your situation, your vehicle. We're gonna be open and honest about everything that we see, and then work a plan that's gonna work for you. Andy Severein: I Jennifer Hulbert: love that. So when you address it with honesty and true humility, it, it becomes a different conversation than one of a hard press sales, and I'm gonna sell you services that you don't need. It... That, that's not what we do. That's not the integrity of the institute, that's not the integrity of the coaches, and that's not the integrity of the shops that we work with. So a lot of times it's you don't know what you don't know. True. So you don't understand the power of a DVI process. You don't understand the power of an actual structured sales process. And that's exactly what Andy started to realize, and then really took a deep dive in, is, "Okay, I see things differently now, and I can see where we're benefiting our customers from doing this." "So I'm gonna put all the effort into training staff and making sure that we're starting to work towards those different key performance indicators." Jimmy Lea: Yeah. Andy, did you feel called out, just Tanika? She's wondering if this is a setup. She feels like she's being called out right now. Did you feel like you were being called out, Andy? Andy Severein: No. I would say not. No? No Jimmy Lea: When you were first starting, you didn't feel like you were being called out, you didn't feel like you were being spotlighted. And you know what? Now let me tell c- build up a little bit more, clarify a little bit more. I enjoy the process that we have at the institute where we're here to meet you where you are as a business and as a shop owner- Yeah and we're going to start from there. What does it take to run your business? What kind of business do you want to have? 100%. Now- Okay. If that's- Yeah, I do ... the kind of business you wanna have, these are the steps we need to take to get to that business that you wanna run. As opposed to a rubber stamp that says, "Follow this process, procedure, and you'll be successful." Okay you don't understand my clients or my customers Jennifer's laughing 'cause yeah we're gonna meet you where you are. What, how do you wanna run your business? What do you, what does success look like for you? 'Cause Andy, your definition of success might be different than Jennifer's, might be different than mine Andy Severein: Sorry, I dropped out with just a moment there. It was just about a five-second window where I had s- Jimmy Lea: For just the most important Andy Severein: point ... in the meat of that, I lost you. Jennifer Hulbert: He- he was saying what success is to you is not the success to someone else. And I'll use something that's very important to you, and that is compensating your staff very well with your profit sharing plan- and your community involvement and sponsorships. So Andy and I have had the conversation of the effects of that on his, to overall net profit- ... but that's his why. He wants to give the best financial outcome to all of his staff based on their efforts towards their success with a profit sharing plan. And then be a very good leader financially in the community to, to support those organizations that are supporting him. And that's much different than my why, and that's gonna be much different than Tanika's why as well. So we've looked at what's important to you in creating that profitability level so you can carry out that why. Andy Severein: Yeah. Absolutely. That why is something that we've figured out over time. We didn't realize going into it what our true why was. I just wanted to build a race car. I thought, "Hey, I have a shop. I can deduct all these parts and, it'll be great." And it took a few years of doing this until we figured out what our true why is, why we're here, and it's awesome. I love that. I'll back up just a minute, though, Jimmy, to your question, if I felt called out, and maybe I misunderstood what you were saying, but I'd probably share with the people that are listening that are thinking about coaching no. I went in there new to everything that was happening, and I never felt called out, put on the spot "Look at this guy." The group has been awesome from the first time I was there with helping me to feel comfortable and share their, their struggles and successes. I never felt called out in a way that I was uncomfortable. And I'm not sure if that's what you meant, but hindsight, that's what I was thinking. Jimmy Lea: Yeah. No. That's exactly it. You weren't called out in an embarrassment point of view, but you were- No ... enlightened into, "Oh, wow, these are some things that I can do. These are the steps I can take and need to take so I can run the business the way I want to." I love that. That's awesome. Now, question for you here about pricing and parts and parts GP and labor rates. This can be very emotional for shop owners. This is an emotional subject. What helped you move from being emotional about these topics and these subjects to becoming more logical in those areas? Jennifer Hulbert: Besides peer pressure. Jimmy Lea: Peer pressure is positive. It can be. Andy Severein: Definitely that emotional attachment that, that, as shop owners you have that. When you're working in the shop, you're, you're turning the wrenches you're hands-on with the vehicles, you're talking to the people at the customer. You're talking to the customers at the counter, and there's people you've known forever, and you know their, their families and their financial situations. There's a huge emotional attachment to that, and it's not bad. Yeah. But it definitely it, it definitely is a hindrance to the growth and success of a business, and I... It took me a while to, to learn and understand that. And it's still why I stay away from the the counter, and the, the service advisor role is so important, and I realize that. I'm so blessed to have the people we have now that are really good at what they do, and they get it. They understand. They're coaching with the APT programs, and I keep putting plugs in for you, but it's been very powerful for us. But overall the growth of the business is dependent on that, so we... I've learned to just stay away Jimmy Lea: Oh, I love it. Andy Severein: I, of course. Jimmy Lea: You know your strengths and your weaknesses. Go ahead, Jennifer. Andy Severein: Yeah. Jennifer Hulbert: I think you also had an understanding of the overall effect o- of what a labor rate increase will do. So that impacts labor gross profit, which impacts your total GP, which impacts your overall net profit. So- ... when we first started to talk about what is your why, and that you wanted it to input this profit sharing and your community involvement we need- those net profit dollars to be able to do that. And we get those through parts and labor GP. So no, it's not just a 10 or a 15% or 10 or $15 labor rate increase, it's going to overall impact that labor GP, which will help the net profit, which is gonna allow you to do what you want to do. Andy Severein: Absolutely. Yeah, that's so true. Absolutely. Yeah, being in the upstairs your knowledge teaching me initially how to read my P&L. I'd never looked at a P&L. When I started to enroll, I didn't even know how much money we had in the bank. I didn't care. Yeah. Bills were being paid, it was great. But now the composite reporting, which was really hard for me, and you remember that, it was super hard for me in the beginning. And now I'm I'm not gonna say I enjoy doing it, but I see the I see the... I do enjoy doing it. I enjoy the results of it. But the the understanding of how we're getting to net profit and why that net profit is so expensive is so important, Yeah that- It's critical ... that's not being downstairs, but w- my offices are upstairs staying up there and keeping an eye on that is is, it's been my the key to, to, to the growth here. Absolutely. Yeah. Jimmy Lea: And let's break this down for those that are watching that don't understand what a P&L is. They hear the word all the time. They hear P&L. This is your profit and loss, pro- P&L, profit and loss. Most shop owners will look at their P&L, they really don't understand it. They're looking for that last number. Is it red or is it black? If it's black we know we're good, we know we're making money. If it's red We're losing money, and that's what the understanding of most shop owners are. At the institute, we also have a financial intensive that helps you as a shop owner to understand how to read the entire P&L, how to get it set up properly with your accountant so that you are getting the right and correct information when you need it most. And a P&L should not take months and months for your accountant to put together and g- and- No ... deliver to you. W- what's the average? How long should it take, Jennifer? Jennifer Hulbert: To, for, to start to make changes? Jimmy Lea: Oh, no. J- In order- Hey, Mr. Accountant or Mrs. Accountant, I would like my P&L. Jennifer Hulbert: You should get that once a month. M- minimally, I would say, our require- our reporting requirement is by the 20th of the month. So you should be getting that by the 15th or the 18th from, for the previous month from your- ... accountant or your bookkeeper. Jimmy Lea: So if you're only getting a P&L once a year, you may wanna either ask for more and get a better understanding, or m- perhaps you need a different- accountant. So if you need a different accountant, we know a guy. Come talk to us. We know a guy. Jennifer Hulbert: We do. Yeah. We do. A- Yeah ... and it, knowing where you're at from a profitability standpoint tells a tenth of the story. So where do we need to put our focus? Yeah. Is it in gross profits for parts? Is it in gross profit for labor? Is it in expense control? Because, so many times- ... we have a lot of members who have really good gross profit percentages, but they're not controlling their expenses and they eat away, their profitability that way. Yeah. We break down our expenses into, what, 30 categories probably, 35 categories individually, and have benchmarks for individual expenses. So th- that's what our owner coaching and our group process does, is we- ... we focus on not only systems and processes within your shop, but the understanding of your financials, so you know- ... which specific areas to target and to make some improvements on. Andy Severein: Yeah. Jennifer Hulbert: And Andy, that's where I credit you because th- we had some, many meetings where he's "Jen, make me understand this. I really need to understand how all this works together," and we probably worked for six months- ... u- until you had that understanding and now you do, and, your profitability is, has increased ex- ... quite a Andy Severein: bit. Jimmy Lea: That's awesome. Yeah, and I think there's a lot of shop owners that are out there that are just like you, Andy, that are in that same position that says, "I don't know what I don't know, and this is definitely one area that I need to know more. Help me understand it." And you dig into it, and you dig into it, and you dig into it and the more you learn, the better you are. Our last financial intensive, I think we had 40 plus people here at, in Ogden at the financial intensive. So next April, if you're wanting to understand your income statement and your profit and loss and your balance sheet, come here to the institute. We've got a phenomenal program for you. You definitely want it. Whoa, that was cool. Now, oh, Raleigh. Props, dude. That was your dr- that was mic drop. Scan the QR code. Get in on our next financial intensive. Yes, that is going to be awesome. We'd love to have you here, y- and you will learn tremendous amount. I want to go back to another acronym you dropped out on, on everybody here. You mentioned the APG. N- our industry is full of acronyms. APG stands for the Advisor Performance Group, and that's with the institute. So Andy, you have your advisors in the program right now? Andy Severein: We do. Jimmy Lea: What have you seen with your advisors? What's the change that they've gone through? Andy Severein: Probably the biggest thing I've ... The biggest thing I appreciate that I that I'm getting directly is, their understanding of the numbers that they're achieving and ... But also, the way the program's put together, allowing them to see the big picture of what the business looks like, what it should look like, what it could look like, whatever your circumstance is. But doing that from a different perspective than myself talking to them, I think allows them to grow. And it's one thing for me, for an owner, for somebody to say something to somebody, but when they're hearing from an actual coach, it's like, "Hey, that guy's not just full of hot air. He knows what he's talking about." Now that's been powerful, but aligning all of our people, Yeah ... through those different programs has been really powerful for us. And that growth that we've really seen in the last, what, year or so I can directly attribute to, and I'll drop another acronym, the MPG program, as well as the APG program. Jimmy Lea: So what's the MPG? Andy Severein: The Manager Performance Group. Yep. We have two managers here now, Nate and Brian. My son, Nate, one of them. They just got back from Utah. We've been so busy, we haven't ... We've done some quick debriefs, but we haven't had time to really sit down and put everything together that that I brought back from the group five meeting last week, or the week before last, and then they came back from Utah with their normal plane delays. ... Oh, no. Jennifer Hulbert: Dang. Andy Severein: But they made it. Jennifer Hulbert: And let's talk about what that growth looks like. So in 2023, you ended the year at 2.1 million. 2025, you ended a million dollars up at 3.1. And you- you've entered the managers and the advisors into the program along with working in the owners of- Yep your performance group program. But like you said, you've aligned your entire staff in the direction that you want to take it- ... with training and opportunities and information of to align to that direction. So just you talking to your staff and coming back from one of the GPG meetings, Gear Performance Group meetings- A- and it's like them trying to absorb what your understanding of the training is- Versus now I'm getting it from a coach who is aligned with that ideology, and now we're gonna move everyone in the same direction. So I think for you, Andy, that's been the biggest change. Now, has it cost you some money? Yes. Coaching is not free. Sometimes, people say, "I want cheap coaching." You get what you pay for. That's what you get. And you're gonna get the results that you pay for. A 30%, 32% increase in two years in sales is the... you could attribute that directly to the coaching. And again I know this sounds like a sales presentation for the institute. It, it's not meant to be that way. I just know that Andy and I have had these discussions over the past three years of how, what can I do to improve? And because- ... you have dedicated the time and the energy to some coaching programs, you've got some very good results. Now, you've set some of that standard. I expect X out of you, service advisor, from a gross profit and an average repair order- ... and an effective labor rate standpoint 'cause you've held those standards high- ... and communicated those expectations, which is also very important for results. But y- you've done a very good job at communicating what the expectation is, and then your team has followed up with those results. Andy Severein: Yeah. Yeah. Jimmy Lea: I love it. Y- there's, the saying is you were talking about the expense of training. Training is so expensive. What what if I train my guys and they leave? What if you don't train them and they stay? Andy Severein: Yeah. Yeah. Jimmy Lea: Andy, have you ever had a situation where you've trained someone and they left? Andy Severein: I have not. We have very little turnover So that's Jimmy Lea: the benefit of training today, is your people will stay. Andy Severein: Yeah. Oh, yeah. Absolutely. No, we have very little turnover of people. In fact, I think there was only one advisor I had that was, he was here for a short period of time and he had come from managing an entire operation and had another opportunity to go back to what he had been doing. So I don't fault him at all. So he's the only person that I had in training and I hope that the things that he learned, he can take into his future. So- Jimmy Lea: Yeah ... Andy Severein: great guy. Yeah. He's a great guy. Oh, Jimmy Lea: I Jennifer Hulbert: totally agree. And let's talk about why your staff stays. What makes you different from some other shops that have some high turnover? And, and- Yeah ... we've talked about this. Andy Severein: Yeah. Jimmy Lea: Well- What are you Andy Severein: doing, Andy? Jimmy Lea: Is it pizza on Friday? Andy Severein: Wednesdays. Wednesdays. And we try not to do pizza too much. That really gets old, right? We have a big old grill here. I like to make food and do different things. But we really try to take care of our people in many different ways, not just, in their, problems that are going on in their life. We try to speak into their lives as, as much as we can and just be there for them. And, they're our family. We s- we spend more time with the people that work for us than anybody else. I'm careful who I allow into that family. And I feel we've done very well. In fact, we had somebody start here just recently, and his comments are just like every person I've heard in the past. Everybody here just gets along. Everybody helps each other. It's it's, it makes me... i'm really happy of that, and I'm really happy about that, because that's what I want. I wanna treat our guys really well. I want them to be excited about what they do, try to keep them motivated and and try to... My goal has always been to try to have a place that the word on the street is, "Hey, you wanna work for this guy, because they'll really take care of you in every way, not just pay." So it's extending a lot of grace regularly, that's that's part of it. Managing that grace can be tough. But but we... it's a blessing overall. It really is. We have a great staff of people here. Jimmy Lea: Oh, I love it. I love it. And what those people are talking about is the company culture, the culture that you have created in your company. They're j- it's, they're just so impressed by it, that this is a great company culture. So I... That doesn't happen by accident What are you doing today as a leader that is different than what you were doing three years ago, four years ago, five years ago? What are you doing different Andy Severein: I can't- honestly don't know if I'm really doing anything different. I hope I'm not, actually. I've always tried to connect with everybody regularly and just, listen to their needs and keep an open atmosphere that they can come to us with whatever's going on, if it's a problem at home or just, bumped into another car in the parking lot, don't be afraid to come to us with anything. And I... so to answer that, yeah, I don't feel like I'm doing anything really differently. I have the help of my wife now. She's a huge part of it. She was here in the beginning for the first five years, and she was working the front desk and it wasn't quite five years. It might've been three or four years and she just couldn't do it anymore. It was way over her head. She's a people person. And she had an opportunity to go work in a restaurant for some friends, which she took, and that opened the door for my, my, my front desk guy, Jimmy, to come in here. Jimmy's just an awesome person. He's just a light. He's always smiling. He's a lot like you, Jimmy. He- Jimmy Lea: It goes with the name. That's, Andy Severein: that's- You're both Jimmy. But yeah, Lori came back here in the beginning of '24, I believe. Nice. And she's been here a little over two years now. I convinced her that her skills, while she was much appreciated at the restaurant, the effort that she was putting in there would be would be very beneficial to us and our staff as we grow here. So she is a huge part of it. Plays Jimmy Lea: defense. Yeah. Jennifer, what are you seeing that Andy does different today? And by the way, Andy, you're constantly improving, so to say you're not doing anything different, it's not exactly true, because that constant improvement- ... is changing and you are becoming better. Andy Severein: True. Jimmy Lea: That's true. So as Coach, what are you seeing different that Andy does today that he didn't do when you first met? Jennifer Hulbert: I would agree with him. I think, hi- his heart i- is in the right place in wanting to do- Totally agree ... what's best for his staff. So that's just who, Andy, you are. I think today you're a little more intentional with that I- in some of the conversations and, interactions with the staff from discussions that we've had. I'll give you a recent example that they've just acquired their second shop months ago. Andy Severein: A couple weeks, three, four weeks ago. Yeah, beginning of May we started. Yep. Jennifer Hulbert: And the advisor there, they're looking to, w- we're gonna look to bring her to the service advisor intensive that's happening right now. She's never- Yeah ... flown before, so Lori says I'll go with you." I will join you on the plane. I will go to Utah with you. I will, get you all set up, make sure that you're completely just at peace with this. But that's who Andy and Lori are. So to say- Love it ... that they've done a lot different I would agree with you, Andy. I don't think you have. I just think you're a little more intentional- Yeah ... w- with it today than you may were three or four years ago. Jimmy Lea: Yeah. Andy Severein: Yeah. More clarity. Jimmy Lea: See, Andy Severein: and Jimmy Lea: That's to the core of who you are. That's to your heart. Your heart has always been in that right place. And that constant improvement are things that you're doing, the things that happen, you don't, probably don't see that you're doing it. But a coach, someone on the outside looking in would say, "You know what, Andy? You are becoming much more intentional. You are having these great conversations. Your heart has always been there," and it's something that you don't see because it's second nature to you, Andy. But a coach is gonna go, "Hey, you know what? This is unique. This is s- this is special. This is awesome that you do this." That's pretty cool. Andy Severein: Yeah. Jimmy Lea: That's pretty good. So what is the future? You just added a second shop. Does that mean that there's a third one, or is it too soon to ask? Andy Severein: I've planted the seeds for the third one. I did that a while ago. That might have been the second one, but this one just kinda flew in there quickly. But it's in a neighboring shop. I can see it. It's just one, two- Two buildings over? ... two buildings away. So they were our closest- Wow ... competition. Jimmy Lea: Wow. Andy Severein: Interesting. So we had the opportunity to buy that. The owner was was wanting to retire, and hap- wanted to make it happen quickly, so he we were able to work a deal out there. I acquired all of his employees and and, it's been a, it's been really good so far. We- I'm really excited about where that is and I've said this to Jennifer to take a business that has not been run well for years and apply, what we've learned we- we've learned and applied it here slowly to try to apply it to a business like that is, it's a pretty exciting challenge. And, seeing that ARO, it was 200-some dollars when we started it and I think we're substantially over that. We haven't advertised it yet. The building needs a lot of work, and we- we're looking forward to doing that work over the coming weeks and months. So we're really excited of what the possibilities are there. We really just needed some overflow, honestly. We're almost at capacity here where we are, and having a little bit of of option for more base space to send some work over there, customers we can't help in our time, in their timeframe with our busy schedule to be able to capture them is high on my priority list of what to do, love it. Always kinda looking for ways to, looking ahead to, what is our next, next, way to grow. To have... If there's more shops I don't know if that's- If that happens, fine. I'm, I've no problem with that. I'm not focused on that. I wanna... I still see a tremendous amount of improvement we could do where we are, and we'll try to, we'll try to continue to focus on that. But our pattern's been about every three years we do, what's the next step? 2023 we did a pretty large addition to be able to handle heavier pickup trucks and the dually trucks, construction pickup trucks. We were doing a lot of that stuff, so we put an addition on there. So here we are three years later, buying another shop. That's our that's- this is the next step and, what's the next in three more years? That's been our pattern. We've got some ideas, Jimmy Lea: Oh, I love it. It- What's gonna come in 2029? That's, you Andy Severein: got to be sweating. Jimmy Lea: Exactly. Andy Severein: Exactly. Oh, that's awesome. Got some pre- got some pretty cool ideas. We'll keep focused keep focused on what could happen there and work towards that goal. Jimmy Lea: Yeah, for sure. I- is it too soon, or can I ask this? You only bought this other shop at the beginning of May, so we're looking at six, seven weeks, eight weeks now that you've- owned the s- the second shop. $200 average repair order. Where are you now? In a very short time period, has it increased significantly, or are you still hovering in that 2 to $300 range? Andy Severein: No it's climbed. I think we're in the $400 range right now. I'm sorry, I haven't looked at that lately. I just realized- Yeah ... as you're asking me that question. So we've about- Yeah ... doubled that. Jimmy Lea: Doubled it in less than six weeks. Andy Severein: Yeah. Jimmy Lea: Implementing proper process, procedures. You intro- did you introduce a DVI program to them? Andy Severein: We did. Yep, introduced that. So that's been good. That's a... W- we're trying to... We have-- There's so many customers there that were the customers that that you don't want, that, we're trying to get rid of 'em. They, you tell 'em what their car needs, they take it home and fix it, and then bring it back and get an inspection sticker. We have state inspection here in Pennsylvania, an annual inspection, so that's a huge part of what we do and so yeah, that's been... working those customers out of our system is the goal here. Make way for good customers. And we've really seen a, an upturn just in the last few weeks of busyness. So it's it's exciting. Jimmy Lea: Oh, that is exciting. That's awesome. Congratulations. So a- as we, we look in towards the future here what leadership skills are you working on today To help you strengthen yourself, strengthen the business as you continue to grow, what are you working on yourself or the business in your leadership realm? Andy Severein: Oh, goodness. I'd love to say that I read a book a week or even a book a month, but that doesn't happen. I, and I could I, probably said it to Jennifer and I'll say it again. What we're doing in the GPG groups right now is so good. What we just did in the group five meeting in Indiana the other week our two main presentations are things that are so relevant to me right now, and that's, defining where in the business, where we need to be and what those roles are, and focusing on those things. That's, it, we're... i, it's funny I still struggle with basic things sometimes it feels even what my roles need to be, but that clarity is huge to me, and we're really, as a, we as our mana- myself and the managers really, working on that stuff. But, I'm, I personally, a- and I'll radiate where I started in, in this business, my goal almost from the start was to work my way out of this and create an opportunity for my son to move into which will probably at this point looks like it'll be my son and Brian together, the two managers. And presenting opportunities for them is exciting to me. They're both going to the to Michael Smith to the leadership- Leadership intensive ... in Washington, DC. Oh, yeah. There's another plug. You'll see the thing come across the bottom of the screen right now. Yeah. But Jimmy Lea: it's not- Leadership intensive in July in Washington, DC. Is that the one? That, oh! There it is. Look at that. There Andy Severein: it is. Oh, Mike Johnson. Jimmy Lea: There it is. Yeah, Raleigh, way to go, brother. He gave me a thumbs up. Andy Severein: But I did that course two years ago, I think it was in Ogden, and I really feel like I could do it again 'cause I'm at a I'm... I've learned so much in two years, but I'm really happy to be able to give those guys the opportunity to do that, to let them grow. Because I look at this now as "Hey this is gonna be for you to run." Yeah. And I want them to outperform anything I've ever done. I just wanna set the stage for them to be able to hit the ground running. Jimmy Lea: Yeah. And attending another leadership intensive, you're gonna learn even more because you've had two- Andy Severein: Yeah Jimmy Lea: years of runway under your belt that you have learned and developed and grown. Now when you attend it again, you have such a solid foundation. Now you're ready to build that building. You're ready to build upon what you've already learnt, implemented, discovered, rewrote as your truth tapes. You know what those next steps are gonna be, and y- you'll go to leadership intensive. You, your brain will still melt, we'll still have to pour it back in your head because of the learning that will happen And now the development and growth you'll have for the next year as well will be just tremendous. So Andy- ... Jimmy Lea: Get to the DC, get to the leadership intensive. You need to be there Andy Severein: I'll consider that. Jimmy Lea: That's a good idea. Yeah, take that into consideration. Anybody that's watching this as well, and you see it go back to that QR code, get into that Leadership Intensive. It really will change... thank you. It really will change the way you think about yourself, about your business, about your life- Yeah about why you think the way you think, and then you can help to discover why other people think the way that they think. Andy Severein: Absolutely. Jimmy Lea: Oh, so powerful. So powerful. Jennifer Hulbert: And one, one of the things that I really wanna point out to the listeners is, typically when we have a new client coming into our individual coaching program is they see people like Andy, and they're intimidated. But hearing Andy's story, that he started off, fixing cars in a very small shop himself, building it to now a multi-shop owner, not having to be an integral part of the day-to-day of the business because he has put people in the right seats, grown the business to a level that you can have a mid-tier manager- it's totally doable. Now, does it require blood, sweat, and tears? Absolutely. I own a shop. I was a service advisor for two years full time. You don't get to this point without going through some of those steps, but it is doable. A- and- Yeah ... sitting saying I only have 500 or $600,000 in sales this year," that, that was Andy at one Andy Severein: point. Jennifer Hulbert: And, now we're in a completely different scenario because of the changes and the improvements and the attention you've put to these improvements and your leadership style. So I, I get a lot of new members and I was actually at a group two member, or group two meeting a couple weeks ago, and then had a meeting with a member, and, she said, "Jen, you don't understand what we come back to because you have two managers in your shop." And I said, "Hold on a minute. I was you 15 years ago." So i- it does take time, and it does take attention but it is totally doable, and we can take you from opening your own shop, I have two members who had, have started to work with us prior to even purchasing their shop, to now owning their shop, to becoming a multi-shop owner. So the, all of those steps and processes we have the ability and the knowledge and the training and coaching to fill all of those steps, but it is a process. Yeah. You're not gonna go, from Andy opening your shop to $3.1 million being pretty much a hands-off owner in two years. It- ... had taken 10 or 14 to do Jimmy Lea: that. Yeah. Oh, yeah. You... If you keep doing what you've always done, you're gonna keep getting what you've always got. You- Yep ... you've gotta do something to change. And so Jennifer, to this specific scenario, a shop owner that you would have worked with that they went from a bucket and a wrench and a computer to multi shop owner what did their timeline look like? So maybe others who are listening can go, "Oh you know what? In six years, I'm gonna be six years older. I'm either gonna be still with a bucket and a wrench, or I can invest in myself and improve." What's that look like? So Jennifer Hulbert: the timeframe differs be- because of this. So it's your ideology, it's your mentality, it's where do you want to go and how are you going to take the steps to get there? We can give you the information. Again, one of the reasons I've suggested Andy being on this podcast is because he's done a lot with the information to get to where he is today. So if you enact it if you take it home and you actually implement some of the things that we talk about, you're gonna move much faster than someone who is, "You don't understand, my customers are different." Jimmy Lea: Yeah. Jennifer Hulbert: Two, two totally different types of shop owners. That's true. So I would say the timeframe is different for everyone, but five, six years to go from small to large, Maybe Yeah ... if I had to put a timeframe on it. Jimmy Lea: And I think you hit on the two elements that must be implemented in every situation. You talked about the attention. You've gotta give it attention. You've gotta give it the attention it needs because it doesn't happen by accident. It needs to be it needs your attention. And the second one is that you have to be intentional- Yes ... about what you're doing. Yes. If you don't know what you're doing, you could wander in the forest and be walking in circles because you don't have that compass. Compasses were created before time, before clocks. Why? Because we needed to know where we were going. So compasses are more important. You need a coach, you need a direction, you need some help to make sure you make- Jennifer Hulbert: And some accountability. That, that's what the premise of our whole GPG program is. Is it's not only the facilitator and the coach holding you accountable, you're being held accountable by a group of your peers. Jimmy Lea: Yes. Jennifer Hulbert: Yeah. Jimmy Lea: Yes. So if you're listening to this and you are the shop that's at that 500,000 or 600,000, let's start that journey together. We can do this. We can do it together and make it happen for you that in four, three, four, five, six years you're having the same conversation with somebody else who's doing a podcast to talk about your success story, and it's gonna be similar to what Andy has. Andy, final question from me and then Jennifer, a question from you for Andy if you want to pipe in here. And in fact, I might have two. My first question is gonna say what advice would you give another shop owner who is thinking that there's gotta be a next level? Andy Severein: There absolutely is, and I can say from experience to figure out what that level or what your goal is, what do you want to achieve and how can you achieve that? It, it-- That's true to anything in life, but it's having the understanding or the understanding of what tools you can use to, to get yourself to that point. Once again, in my case, it was I wanna work my way out of a job, what does that look like? And but certainly doable, with some input, some coach. People, most shop owners that I've found are pretty close-minded, don't wanna be told what to do. You know- ... they're doing it great, don't tell me. And that's why I was at an auction earlier today for a shop that closed down because, they just choose to just do the same thing they always did, and at the end of the day, they got nothing left. No business and just a bunch of tools to sell Jimmy Lea: Wow ... Andy Severein: doesn't have to be that way. Doesn't have Jennifer Hulbert: to be Andy Severein: that way at all. No way. Nope. Jimmy Lea: No. No. Yeah. They're getting pennies on the dollars for those tools and assets. Jennifer. Jennifer Hulbert: I don't think I have a question for you, Andy. I, and you're a pretty humble guy, and I want you to really hear this, so thank you for being an industry leader, and thank you for setting the tone and the example of what success can really look like. And, I hope you're an inspiration to those who are watching and listening to this because you've done exactly my why. My why is to help elevate individual shop owners, and because of your attention and intention to the information that we've been discussing you've climbed to that level. So I want you to really hear that you are an industry leader, and I thank you for being here, and thank you for being a part of the institute. Andy Severein: Yeah. Thank you. That means a lot to me. I certainly don't see myself that way. I I still hear Parker Branch telling me maybe two years ago, "With a few changes, you'll pass me." I'm like, "Yeah, whatever" Jennifer Hulbert: You're getting close Andy Severein: You are Jimmy Lea: getting close, yeah. Andy Severein: Yep. By the end of 2027 when shop number two kicks in, watch out, Parker. Jimmy Lea: You'll join him in that million dollar net club. Yeah. Andy Severein: That's the plan. Jimmy Lea: Yeah. That's the plan. Yep. Yep. All right. One final question coming from Tanika and then a final question from me. Did you get any pushback from your technicians, the technicians you acquired implementing a DVI program, changing their process, procedure, moving their cheese? Andy Severein: Honestly, if you're asking about the shop we just bought- No? ... not a whole lot because they knew that their leadership was terrible. They knew that there was better way to do things. They're a neighboring shop. They saw our parking lot full of cars all the time and their parking lot empty, right? So- Jimmy Lea: Ouch. Yeah ... Andy Severein: that was, for them to be shown How we do it. They understood right away that it worked. They knew that. So it's, it is it's been... Certainly has its challenges, but it hasn't been hard at all. Teaching them the processes has really been the hardest thing, but the understanding, the knowledge of it the knowledge of, the why we're doing it I don't wanna say it's one of the easier parts of taking over that business, but I think it has been. Jimmy Lea: It kinda sounds like it. It sounds like they were definitely primed and ready for you to step in there and take over. Andy Severein: They were all really hungry, yeah. They knew that our leadership was bad. I don't know why they didn't all quit and walk Jimmy Lea: out. Yeah. No, congrats, man. That's awesome. All right, last and final question. Years from now, years down the road, don't know what that number is w- what do you want people to say about your shop, about your team, and about the owner who built it all? Andy Severein: Boy, I, I hope it's, I hope it's what our goal's always been, and that's that we are just awesome people, trustworthy give back to the community, the same things we've always been. I I hope that can be our legacy here. Jimmy Lea: Yeah. For sure. I hope so as well 'cause you are awesome people. Andy Severein: Yeah. Thank you. Yes, Jimmy Lea: they are. Andy Severein: You guys are too, so that means a lot. Jimmy Lea: Thank you. Thank you very much. Thank you. Thank you for everybody who's listening. If any of this has sounded interesting or information that you wanna pursue even further, get out your cellphone 'cause as soon as we go to credits, there is a QR code. Let's meet. Let's talk. Let's sit down and review your business. What can we do to help you? Our goal, our core, is to help build a better business for you to... which results in a better life for you, which our intention is to build a better industry. So we are all about building a better business, a better life, and a better industry. With that, my name is Jimmy Lea. I'm with the Institute for Automotive Business Excellence, and thank you. Thank you, Jennifer. Thank you, Andy. Really appreciate you guys being here. Andy Severein: Yep. Thank you. Jennifer Hulbert: Thank you.

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