Ep 100 - Andrew Fischer | Why Most Technicians Shouldn't Own a Shop
With Andrew Fisher
Now playing — Confessions of a Shop Owner
About this episode
Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HEREIf you're like me and aren't good at marketing, don't do it on…
Key takeaways
- —Service advisors play a crucial role in the shop and face unique challenges that technicians may not understand.
- —Effective communication between technicians and service advisors is essential for accurate diagnostics and customer service.
- —Training programs need to focus on current technologies and practical skills rather than outdated information.
- —Technicians should be guided in their training choices based on their weaknesses rather than personal preferences.
- —Understanding the business side of shop management is vital for technicians aspiring to become shop owners.
Frequently asked
- What are the key challenges service advisors face?
- Service advisors often deal with difficult customer interactions and must effectively communicate technical issues in a way that customers can understand.
- How can technicians improve their diagnostic skills?
- Technicians should focus on mastering the fundamentals and seek training that addresses their specific weaknesses rather than just their interests.
- Why is communication important in a shop environment?
- Clear communication ensures that service advisors can accurately convey diagnostic information to customers, which helps in building trust and improving service outcomes.
▸Full transcript
We're technicians and we think back of the house is the hardest thing. I'm sorry, man. I still think being a service consultant, service advisor, service writer, whatever you want to call them, that is still hands down the hardest job in the shop. I don't want the job. We can fix cars. When that customer comes in our shop and I'm in the office and they're like, they're starting to say the stupid things.
I can't do it. I've learned I turn around and walk out. I do the same thing. Because I'll be like, I can't do their job. The following is a special edition of the show. Don't worry, today's episode still features doofuses talking about the aftermarket. This one just doesn't include my dad, so it's probably better than normal. The stuff said on this show does not necessarily represent the views or opinions of our peers, our sponsors, or any other associations we may have.
Chances are there may be some spicy language in this show, so if you're sensitive to that, you should probably move along. Without further ado, here's your special host, Brian Pollock, with Confessions of a Shopper. Presented by Techmetric, the best thing to happen to the world of personal transportation since the advent of internal combustion engines. We're recording now. Like, we're just— we're ready to go.
Braxton will probably literally put this in there. I've seen him in action. So now we gotta behave. Okay, so now we gotta behave. So how things been going for you? I'm here, dude. You're here. I'm here, man. You're filling in. You're filling in this afternoon. Filling in. We had an instructor not show up, so gonna Was only supposed to instruct tomorrow and Saturday, and now we're doing an evening session today.
So pulling it off last second, try to kind of, uh, off the top of my head is not one of the ones I've had to do yet. That's a little tricky. It's, it's, you know, the good part is you gotta, we got a catalog, you know. It's only, the only thing I got going for me is I got a catalog and I could pull something, you know.
I should probably introduce you, Andrew Fisher. Thank you. Fax, Fax, Tech Fix, Tech Fix, World Pack, World Pack, Car Quest, Car Quest. Uh, I think that's it. Is there anybody you don't work for? Obviously I'll be, I'll behave, I'll behave. But yeah, I mean, you know, whatever it takes to get as much as we can out there. So, you know, it's, uh, maybe oversaturation to an extent, but you know, it's, uh, what I do for Tech Fix, I don't do the same for World Pack.
What we do for World Pack, I don't do the same for Car Quest. You know, you try to, you hit different tech technician levels through the different companies. So I'm just really blessed, man. I, I can't say it any better. And you're kind of running a shop too, leadership, major leadership position, like, yeah, I do in there at the shop, day-to-day operations, still in the shop, still in the front of the house.
Um, you know, I do a lot of leadership coaching with, with Tech Fix and Shop Fix. So, you know, I feel like a fraud most days because, as you know, we never have it together. So, you know, you're riding highs and you're riding deep, deep So, you know, it's, uh, it's, it's humbling. Humbling, that's probably the best word for it, right? You know, um, the wide range of training that you're doing now, you know, one of the major complaints we hear from shop owners— actually, we were just having a conversation in here when you came in, and right before you came in, um, there's somebody talking about how it's, it's very difficult The training end
of this industry is very difficult right now. It's difficult on the trainers. You, like me, are away from our families. Yep. Doing this thing. You way more than me. I'm, I'm just, you know, I'm just, I'm just having a good time. You're like in it. How many, how many weeks a year are you traveling? I— all of them. It seems that way.
So last year I was away from the shop a total of, I think it was 65, 67 days. Oh my God. That doesn't count weekends because most of these fall on the weekends. So I mean, it was, it was a lot of time away. That's tough. And then one of the other things that we talked about is specifically the evening type training.
Correct. That's out there is like, it's fricking tough. I mean, I just had a conversation. We just brought, and I won't name names, we just brought guys to an AC class. And whenever I can, I try to go in with them. I want to see what's being taught. And the name of the class was Modern Climate Control Systems, I think. Okay., and, um, it wasn't anybody you're associated with.
Um, and we sat in there, and I'll tell you what, man, it's tricky. Our shop, our shop is hourly, and we, we pay our guys to go to training. So you're at a point where these guys are— these are, these are essentially overtime hours. These are time and a half pay hours because we're in New York State, and that's— it's not an option to pay them straight time.
You know, I think different states maybe have different rules where you could pay guys training hours straight time or whatever. Yeah., but we don't have the option. So we're paying time and a half. And we went in there and this guy spends, I timed it on my watch 'cause I was on a mission. I wasn't there to learn about modern AC systems.
I was there to see what am I paying for? You gotta vet it. 28 minutes on R12. When was the last time you seen R12 in your shop? Every car that has R12 in it, has been rotted up to the door handles and in the junkyard since 2010. Yeah, same. I mean, we're in a very similar situation, very similar climate, very similar salt situation with you and I.
Is probably maybe a little bit more by me because— yeah, but anyways, very similar, right? They've been gone 28 minutes on that. And I'm not gonna get super technical because this is the Confessions of the Shop Owner and not super technical podcast, but as you know, newer AC systems, heat pumps, solenoid valves, blah blah blah, made more changes in the last 8 years than they did in the previous 50s, right?
In the previous 50 years. More has changed in the last 8, in my opinion. The stuff that I was interested in, the teaching of the heat pumps and the solenoid valves and all this stuff— the class ends at 9:30, starts teaching on it at 9:27. Well, they probably didn't know it either. That's, you know, and I'm not bashing, but you, you know, we see it.
And that's— I love it when people say things that are correct even if it's not Well, it's the reality, right? And we, we have to be real. Like, as a technical trainer, again, I know this is shop owners and management, but as a technical trainer, we have to, we have to be real with ourselves too, right? Like, they're— I'm not going to go in and teach an alignment angles class, right?
No, that's not my specialty area. Absolutely. And I would— it would be a fallacy and it would be a fraud for me to do so. Could, could I do it? Hey guys, Carrie Lynn with Turnkey Marketing. If you are looking to increase cars and you're looking for the right demographic to go after, you wanna get the right people who need auto repair right now, then give us a call.
We have a service called Direct Track and it utilizes AI to find people in your area who are the great demographic that you wanna go after, have raised their hand and opted in saying, I need auto repair help right now. We send them an email as soon as they open the email. We then get their physical address, follow it up with commercial ads on all their streaming services like Hulu and YouTube and ESPN, Fox News, all those different things.
And then we also get their physical address and we start sending banner ads and display ads to every single device in that house. It has been incredibly effective. It has made shops seem like they're everywhere to those people who need repairs right then. And I mean, I'm telling you guys, the return on investment has been huge. So if you want to increase car count, you want to get great people in the door, give us a call or reach out to us and ask us about DirectTrack marketing.
Running a shop for 20 years teaches you a lot, like how outdated systems can make your job a lot harder than it needs to be. I used to deal with slow check-ins, clunky estimates, wasted time chasing down updates. Then I switched to TechMetric. It's an all-in-one cloud-based SMS that lets me run my shop from anywhere. Streamlines my estimating process, keeps customers in a loop with real-time updates.
I'm not telling you that it was all Tekmetric, but I'm telling you that Tekmetric was a big part of it. Since I switched to Tekmetric, my average repair order 4 years ago was $293, and right now it's $916. That's not luck. It's better processes, faster workflow, speed of service that's facilitated by this technology helps me get higher and better authorizations from my customers.
If you're ready for a shop management system that actually works for you, tap the link in the show notes and check out Tekmetric. You're going to like what you see. Yes. Would it be what the attendees wanted? Absolutely not. No. And that's part of the problem. I think it's a big part of the problem. It's a huge— and I understand because the other thing that ties into this is maybe in this class that I had the guys at, you know, maybe this isn't a good example, but you go to a lot of classes And they spend a lot of time on fundamentals and everybody's always like, oh, they just, you know, I'm not taking a
fundamental class, blah, blah, blah, blah, blah. And then it's like, you start working with these guys, you have them in your shop and you're seeing comebacks, you're seeing this, you're seeing that. And you're like, this is the same guy that doesn't think he needs to take the fundamental class. And here we are, you're coming to me, we've got this problem on this vehicle.
You've not checked the oil for, you know, for VVT Pro. You've not checked the oil. You've not checked the battery. Like, like, dude, like there's a lot of mystery problems and actual problems that are oil level and condition. Absolutely. And battery condition. But that falls on us as management and owners. Cause here's where the problem comes in, right? We let them select the classes they want to go to.
Yes. And the reality is, in my opinion, you know, the average technician, the first, we're going to call it 10 years, okay, probably shouldn't have that ability. I think the average technician, the management knows— management, ownership, shop foreman, however your shop's structured— they know where that technician is struggling, and that's where they need to be. The biggest issue is they need to decide.
Absolutely. The, the other issue you run into is we're— we— I'm, I'm going to coin Matt Fonzlow here— we over-romanticize the diagnostic side so much And let's be real, man, that's the problem, right? That is the problem because not everybody is built to be diagnostic technicians. 100% agree. And until we realize that, and does that mean that the suspension guy is less more than the diagnostician?
I don't think so. I think you make a good point. I think we see it all the time. We really do. We see If you go to the average shop out there and you watch guys put wheels on cars, how many shops do you think when you go to them, do you think the guys are cleaning the wheel hubs and torquing the wheels?
I mean, I've— outside of ours, I have never seen that happen in a shop outside of ours. Now again, I don't get into a lot. We're really focused on EVAP diagnostics, oscilloscopes, this, that, and the other thing., and we'll have, uh, Timmy the technician will put, uh, brakes and rotors on the front and rear of a vehicle, and it'll come back Paul Satan, and we'll call the parts store up and be like, hey, these freaking Wardinskis you sold me are hot garbage, this thing's freaking shaking.
Timmy— and then I get a hold of the vehicle, right? And we don't have— we're, we're big time on cleaning wheels. These are problems we've had in the past, which is why we're like what we are now. Same exact same thing. I'll pull the wheels off and the freaking hub was so dirty when he railed this thing on there with impact gun, I have to take a hammer to get the wheel off a car.
We just put the wheel on, which people in the South— people in the South, you're not gonna understand this part. They are spoiled. Okay, but here we are, we're lacking fundamentals, but Timmy the technician is going to go to the scope class and he's going to go figure out how to find the moon phase with a lab scope that applies to 0.2% of the cars that ever come through the door anyways.
But Timmy can't get his brake jobs done to come back not squeaking. Yeah, I mean, it's a huge ego issue. It— ego and ignorance is the, the biggest issue in my personal opinion. You know, I think the, the other issue you run into, and this, this is going to upset people, the alphabet soup BS that we throw around from the technical— I mean, we were just talking about that just before we went on live here, you know, but the, the alphabet soup that— I'm sorry, their, their ABC level is so broken in the There's no standardization.
And the idea that we keep throwing this around, I mean, I, I say this in classes all the time. I am a C, maybe even a D-level tire technician. I'm going to break some stuff, dude. Like, I'm just going to be honest with you. I might be an upper-level C, low-level B diagnostic tech. So where does that make me, a C-level tech?
I just, I don't believe in it. I can't subscribe to it. Not in today's world. The days of bumper-to-bumper that every technician can get through everything is done. And how many times, how many times in these groups have I responded to people, what do you mean by a tech? And they're like, a guy that I can give everything. And I go, here's the deal, I don't know everything.
I know a lot of really smart people. I haven't met a guy you can give everything. No, I, I haven't met a guy that is going to— except for Scott Manna, um, I haven't met a guy that was for— that was for Fonzel. I haven't met a guy that you're going to give a European immobilizer problem to and then he's going to rebuild a GM 10-speed, and then he's going to put injectors in, and whatever, he's going to correctly diagnose some diesel injectors, not just sling them in there, right?
And then do whatever else. Like, like, it's, it's not gonna happen. It's not a person, guys. The person doesn't exist anymore, and it hasn't in a long time. Now, some of us— I mean, I'm gonna be straight up with you, dude. My ego for the first 15 years of my career, you thought you were the shit. I thought I was. You were fixing some stuff, but I was getting real lucky.
I got real lucky. I was a dealer guy. I was rebuilding transmissions, doing drivability, but I see pattern failures, right? Don't get me wrong, I had some— quite a bit of independent experience too, but I got, I got cocky. Yeah. And then reality hit, you know, reality hit really bad, really fast. And that's when I realized, like, I got to figure out a lane to stay in.
And what am I the best at? I'm not a high-producing guy. I've just never been a high-production technician. I could probably do 85 to 100% I'm sure most weeks, sure. But that's not, you know, we preach it or we hear it preached across the board, you know, your tech should be 120% effective, blah, blah, blah, blah, BS. It's tough to hit. And the guys that tell you this, I see this all the time in certain groups, oh, I've got a technician, it's 180% effective, blah, blah, blah.
That's BS because I'll tell you what, you and I take those phone calls from those guys. So, you know, we got to stop lying to ourselves. And then the other, the other side of it is, is, you know, Does, you know, does their— do they— did they decide to run a labor multiplier, right? There's a lot of shops. Yeah, we did. Sure.
Yeah, yeah, right. If you run a 1.5 labor multiplier, yeah, sure, the guy maybe turn 80 hours a week, I guess. I don't know. But straight book time and everything done right, and then like, like, I'd really like to see— I'd like to see the numbers, and then I'd like to see all the comebacks and how that affects the supposed efficiency. Because I've— we've dealt with this at the shop.
All the time. I mean, guys that are super fast, but man, they get that car in and they get it out and it's like a boomerang. That's like, back in the bay, you know. You know, luckily for us, we have pretty robust QC process. It doesn't— same, I was just gonna add that. And, you know, and like, for— we run a 30— you can tell, you're like, oh, instantly.
And, you know, we run a 30% labor bump in our shop. Um, but QC— and honestly, yes, we are a flat rate shop, but sure, I expect my guys— take the, take the labor bump out of the equation— I do ask them to be about 80% efficient. Sure. But I specialize them. Yeah. So I've got a Euro guy. We kind of do that too.
Like I got a guy that does heavy line repair pretty well. I'm typically going to give him the heavy line repair. Absolutely. I got a guy that welds really well. He gets it all. He's really good at it. All the exhaust repair goes to Cole. Cole does a good job at it, man. You don't want me welding. I can promise you that.
Well, he can weld and he can like see it and he's young. He's young, he doesn't have 20 years experience. I mean, he's only 5 years experience, but he can look at stuff and he's driven enough shitboxes in his life where he can look at something. And I mean, like, we just give him— he's got a little red toolbox over there full of all these little exhaust connectors, this, that, and the other thing.
He'd be like, oh yeah, I'll just take that out, do this, I need a flex pipe this long, blah, blah, blah, blah, blah, we'll fix it, right? Good for him. I can't do that. He doesn't. I got, you know, there's other guys I cannot give that job to. It will not get done. Yeah. And there's— and that's okay. It's okay. But again, you know, we, we talk about it, we hear it in the industry.
I want a guy that can diagnose and that's going to produce, you know, 50, 60 hours a week in a 40-hour work week. Man, that is, that is such a pipe dream. Those guys don't really exist. I think the other thing too is the, the culture in the industry. The front counters are not— a lot of that I do One thing that I do okay-ish is efficiently get through diag stuff.
In most of it, getting most of it billed out correctly, like I used to get super frustrated because I'm doing it. You know how it is. You're the one actually touched the car. You're like, dude, this freaking sucks to try to figure out. It takes this long. You know, a lot of them are fast. Don't get me wrong. You know, a lot of them are like the thing's diag, your report's written, 15 minutes on to the next one.
You get a ton of those. No doubt. Most of it is that, right? But You know, and let's say that 10% takes a little, you know, you know, let's say that, let's say 80% is that. And let's say like the next 15% takes a little longer, you know, I might have an hour into it. So we got to, you know, but, you know, I got it barely done.
But then you get like that last 5% where it's just got towed out of another place or it doesn't make sense or the service or are you working on a Honda with a weird problem? Because Honda, every third step in any service information, replace ECM with known good. Yeah, right. And what I found when I was getting very frustrated about what we were billing for that stuff is I found that I was making the assumption the boys up front understood this.
They don't. And they don't. And it's not their job. And that's not a shot at them. Our guys— I got— I'm gonna, I'm gonna put this out there. Whenever I talk about my own shop, I feel like we have the most cohesive team we've ever had right now, and I'm super happy with it. But sometimes I think one thing as far as what they understand.
I'm like, I'm thinking they're in my head. I'm like, oh, well, well, why do I have to explain this to you? It can't be this. We can't do that. Like, what are you talking about? They just don't know. It's not their job. And the beautiful part is hearing you say that because this is my struggle every day. Yeah. You know, but same, same situation.
I think we finally got a good team together. My, my advisors do a really good job. Um, what we do to kind of try to combat this is I'm big on a complimentary— let's say it's a runnability problem, I'll do a complimentary code scan. And I will— so funny, because people hate parking lot scans. Oh, I'm all for it. We do parking lot scans to make appointments all the time.
That, that is our model. I can't believe, I can't believe you make fun of the people that do free diag, but you do parking lot scans all day because they're like, Jones has a freaking turbocharged engine with a freaking purge valve code. I'm gonna tell her, hey man, this freaking check valve is probably stuck. You probably shouldn't freaking get on this thing going down the road.
It's gonna damage your fuel tank, you know what I mean? Well, let's say, you know, greatest example, we do a lot of European stuff. I get a BMW in, they got a check engine light, pull it in, do your complimentary scan. I got 20 codes in the enhanced side and 5 on the generic. We just went through— that is not a level 1 hour diag.
We just went through this and I did same exact thing on a Mini BMW, whatever. Same thing. And that was just like you said, we're like, I'm like, you know what? I told Will, I said, we are so little into this right now. What's up guys? I was just coming to talk to you about one of my favorite pieces of software that we use in line with TechMetric, that our point of sale system platform that we're using.
And that is Detect Auto. And you've heard me talk about Detect Auto for almost a year at this point. My team loves it. I enjoy it. It makes life easier. And I just want to talk to you about one of those features, and that is just their maintenance tool. If you know how time-consuming and tiring it can be to go back and search history one by one by one by one to get a picture of a vehicle service history before you make your maintenance recommendations, this is going to save an enormous amount of time.
In 30 seconds or less, it's checking CARFAX service history, it's checking OEM service interval recommendations. And it's checking your own internal customized service interval recommendations. And it combines all that information to give you a picture of the maintenance that has been missed or is not known on that vehicle and adds those recommendations automatically to your inspection process. With just a couple clicks of buttons, that can be added also directly into your repair order and your estimate.
I think it's a great tool. It's a great time saver. I love it, and I think you will too. You should give it a shot. If you want to find out more, check out the link to Detect Auto in our show notes. We don't even have to charge this guy at this point, and we can tell him if he would like to drop it off with us and spend about this much money, yeah, to start, and be prepared for the heartburn of being the second owner on this 10-year-old auction vehicle.
It puts you in a position where you can use your experience, but the service writer doesn't know. And see, that's where I was screwing up. I was assuming that the service writer knew that every 12-year-old BMW second owner auction car was going to be a freaking dumpster fire and we need freaking 5 hours to get going or else we're going to be losing our tails when it's got 27 codes in it.
They don't know. They don't. But you know, here's a very uncomfortable conversation. We're technicians and we think back of the house is the hardest thing. I'm sorry, man. I still think being a service consultant, service advisor, service writer, whatever you want to call them, That is still hands down the hardest job in the shop. I don't want the job. We can fix cars.
When that customer comes in our shop and I'm in the office and they're like, they're starting to say the stupid things. I can't do it. I've learned, I turn around and walk out. I do the same thing. Because I'll be like, I can't do their job, man. And then the other thing is, so then like what I finally figured out for me is I'm like, okay, the issue is I'm not communicating this into something they can use to sell the right amount of time.
I'm essentially putting a bunch of jargon that nobody understands in a 3-paragraph write-up and seeing, I need 2 more hours because it might as well be because I said so. Because all this shit doesn't make sense, doesn't make sense to anybody, and it shouldn't. Why would it? They don't do it. So that's like the biggest stride we've made in charging properly for the diagnostic work.
Parking lot, me figuring out how to communicate properly. Absolutely. It was me. That is, you know, we with Tech Fix, you know, Kevin Roth and I do the, the mindset call every second Tuesday of every month. Gotta give the plug there. But this is one of the things we talk about all the time, because let's, let's be real, most technicians don't know how to communicate.
We don't have that ability. And trying to teach very introverted people— let's face it, most of us are introverts. We get into this business because we got to worry about the car. Hyperfocus. ADHD. Absolutely. Absolutely. So trying to learn those skills, like learning soft skills for a technician, probably the hardest skill. You take the lab scopes, you take the scan data, you take any type of testing you have, throw it out the window.
It's learning how to communicate. It's the hardest. It actually got a lot easier once, honestly, once AI came around. Oh, it helps. It helps. Because I'll have something going, I'll have like 4 paragraphs written, and I'll be like, turn this into something that somebody can understand in an 8th grade reading level. All day long. I'll copy and paste that right out of the order, right into Chat AI and say, turn this into something that the normal educated person at 8th grade level can understand.
Yep. And you know, it's not per— you can't just copy and paste that back. You'll read through that and you'll edit some stuff. But dude, I mean, I was riding the struggle bus and it's like, I don't mean to be like this. I'm freaking weird, dude. Like, you know, it's— I tell my techs, you know, I think you guys use tech in the shop, right?
So with tech, I want you go ahead and put the technical. In a spot that we hold in-house, right? So I have something to reference back to. Yeah. But you make it simple where the service advisor and the client can read it. Yeah. So I still want technical because not being at the shop a lot, same with you, you know, from time to time, I can go in there and look at some specifications or I built out an inspection that they're going to follow to the T.
Go ahead and put your technical in there, but I need you to explain to the client really simplistic. What system's broke? Why it's broke? What fixes it? Right? The 3 C's. Let's handle that. What's broke? Why it's broke? And like the stuff that I've honestly used it for is programming. Yes. Like to explain, cause the customer's like, well, you're putting this new computer and what do you mean it's gotta be programmed?
You know? And to explain, well, I'm like, well, what do you mean it's gotta be like, they all, the service information says it's gotta be programmed. No. Well, and then you learn to use maybe AI to help you a little bit. Yeah. And you say, hey, explain why this transmission control module has to be programmed and it breaks it down and like, oh yeah, the transmission control module needs a specific set of instructions for that exact valve body with those exact flow rates, blah, blah, blah, blah, blah.
And then it like gives up like almost like a metaphor, like another example or whatever, you know, and it's gotten a ton easier, honestly. It really has. But yeah, that's like the biggest problem. Is the communication, letting them know why it needs to be done, not just the whole— and sometimes you get in your head, you're like, why do I have to explain to you?
I just spent 45 minutes testing, doing this, doing that, blah, blah, blah. What are you, what are you talking about? I'm telling you it needs this because I said so. No, that doesn't work. No. Well, think— they can't tell the customer because they said so. Think of it like this, dude. What is— what does most technicians say about a service advisor, right?
You're a technician secretary, which, guys, that is ignorant. Listen to me, that is ignorant. Yeah, it's not like that. They don't do what we do, right? We, you know, uh, Kevin Ross says this to me all the time, you know, as from a technician standpoint, we see things two ways: broken or fixed, black and white. That is it. That is just— had this conversation with Jim yesterday.
That's how we're programmed. We have an issue with a vehicle at the shop and we decided we— long story short, it's not our problem, but it is, but we're just gonna put parts in and just fix it. Like, I'm not— it's a business, it's a business thing, right?. And I literally texted him on my phone yesterday. I texted him. I said, that's the funny thing.
Fixing cars is very black and white. Business is not. Absolutely. Right. Literally texted him yesterday morning on the ride here from the truck. That's the deal. It's the reality, you know, and, you know, we see it black and white. Most technicians devalue what that service consultant advisor, again, whatever you want to call them, what they do. And it's ignorance on our part because Listen, when something doesn't move, we hit it harder.
We don't have the ability to do that with a client. WD-40 and a hammer. Yeah, WD-40 and a hammer. We can't do that with clientele. And really, when you look at it from a different aspect too, like again, as you've progressed in your leadership in the shop, you've learned that as a technician, we get upset with clients a lot. Like the way they ask things, you think they're second guessing.
Oh yeah. But that's not what they're doing. They just don't know. They don't know the questions to ask. What they really want to know is just a couple things. How much? How long? Can I trust you with my money? At the end of the day, that is really all they're looking for. But they don't, they don't know how to convey it. So they may come in and say, I've seen this on Google, or I looked here.
It's not a shot, guys. It's they don't know how to ask questions. And that's where the writer or the consultant really shines because they know how to get those questions out of them. Yeah, a well-trained, a very well-trained writer will be able to do that. And I, I know exactly what you're talking about. They come in with the ChatGPT, or we used to do the thing for years, they'd come in, they'd come in with the AutoZone printout.
Oh yeah. And, uh, I would see back when, back when Jim worked the counter a lot, towards the end of where he was working the counter every day, you know, he's kind of like in and out, he's, I mean, he's very involved actually every day because, you know, we got the shop across the street and everything else, but I used to laugh at it.
I used to think it was funny. He would grab somebody to come in with the AutoZone printout, you know, and he'd— I remember he'd be sitting on the counter, and the way our counter set up like this, there's a garbage can back here. He'd spin around in the garbage can, and I used to think it was the funniest thing I'd ever see.
But it's just like you said, they went there because they don't know anything. This light came on, I don't know what it means. Uh, I stopped here because it was a Sunday So I went to AutoZone, they scanned it, and they say I need an ignition coil. Well, the communication— how do you turn that into, just like you said, we have to understand they don't know.
No, they're not trying to get one over on us. Always in some cases they are. Sometimes they're trying to be cheap. It's an exception. Sometimes they're trying to be cheap. Most of the time they don't know. They don't know about the testing involved. How, how would the customer know? Dude, I can walk— I— we can go to the next 7 shops down the street.
You and I can walk in there right now and ask half the technicians in that shop, the technicians working in the field, how to test the ignition coil. They can't give us a thorough ignition coil test. The difference between 2-wire, 3-wire, 4-wire ignition coil— they can't do it. No. Why should the customer know? Yeah, and you know, the it's a perfect training opportunity for your client.
You know, we always treat that— I don't know who came up with it originally, but you know, a code, right? They went to AutoZone, got the code. I always love doing the zip code mail analogy. Hey, that code may have us in your zip code, but our proper testing— because I hate the word diagnostics, that's my conclusion. I know, I, I use the word too much.
Yeah, and I did too, but like, really I catch myself doing it. It's like the alphabet soup. Yeah, same thing, right? You don't like it, but you still use it. But, but if you explain it to them, hey, the code gets us in your zip code. For through our testing, we're going to get to your street or your neighborhood, right? Then we're going to get to your block, then we're going to get to your small neighborhood, and then I'm going to be knocking on your door and you're going to answer it.
That's what the testing is going to do for us. And most clients, when they hear that, you see the comfort in their face, right? Now every once in a while you're going to get, well, the shop down the street doesn't do this, or, you know, they don't charge, blah blah blah. And that's fine, whatever you want to— whatever. I don't care what the next shop does.
I don't care if you don't charge for diag. Yeah. And sometimes the answer is just, we do. Yeah. Hey, this is how we do it. This is what we do. We do. And we explain it, you know. And, and somebody told you to come here because, you know, turns out we don't advertise at all, and somebody else told you to come here to get your car Yeah, like, because that's— this is what we do.
And maybe you're not accustomed to it, but you're, you know, we sell— that's, that's the other major thing. We sell fixed vehicles. Absolutely. Absolutely. Some people don't like that. Some people are like, well, you're paying for our time. Well, okay, to an extent. If you can't produce a fixed vehicle, what was your time actually— what was your expertise actually worth on that vehicle?
Well, and I've been We bought cars. Uh, same. You sell a guarantee. So when we call a client, if we're wrong, I'm gonna eat it. We're never gonna charge a client for a bad decision. Oh, and I never understand that. I, I don't— oh, total, total side quest. We get a lot of cars in where they've been billed. Oh yeah, for parts installation.
The car's not fixed. Like, sometimes from other— a lot of times from other independent shops. Honestly, I'm not kidding you, a lot of times from dealers. Oh, I get it. I had another shop in our area. He had a problem on a GM vehicle. He couldn't get through it, whatever. He's like, you know what, I'm just going to send it to the dealer.
And it wasn't an intermittent type issue. It was a circuit fault type issue. And they just didn't have what it took to get through it. He didn't have the mixture at the time to get through it of technicians. He's got the guy now. He didn't, he didn't have it done. Look, when I first opened my shop, I thought my old systems would keep up.
The software that I had would continue to evolve, but as we grew, the slow estimates, scattered workflow, increasing downtime, it really just, it was becoming a real problem. That's why I switched to TechMetric. It's not just software. It's a complete shop management system that makes my life easier. Smart jobs, instant estimates, integrated payments. Integrated financing options. I mean, it allows me to focus on the work that actually makes me money and not get bogged down in the other details.
My shop's repair orders have jumped over 300% since switching to TechMetric, and when I need help, their support team responds in real time. I actually was online with them asking questions just this week, and I got answers in minutes rather than having to wait for callbacks and emails days later. If your system is holding you back, it's time for a change. Tap the link in the show notes and see how TechMetric can help you move your shop forward.
He sends it to the dealer and they tell him, okay, yeah, we think it needs an ABS module. Think— we think it needs an ABS module. It's going to be installed and programmed. It's going to be like $2,300 and there's no guarantee. Once you— once you own it, if it doesn't fix the car, he paid the dealer. Like, I'm like, how do you When the vehicle isn't fixed, we have a hard fault code and it's got the same code and the thing's not fixed.
How do we wind up in this world where the customer's paying? That's the deal. That's the, we charge for our time. It's 5% better, Brian. Yeah. We charge for, well, you're paying for that technician's time. His time ain't worth shit. He didn't find the broken wire that was 4 inches from the connector I found. His time wasn't worth anything. No. And I got a great example of this too.
We just recently, probably 3 months ago now, I had a 2.4 multi-air Jeep, one of the small Jeep Renegade. Okay. This poor lady had had this vehicle at 2 dealers and 2 independent shops before they brought it to us. Setting throttle body codes, going into limp mode instantly. New throttle body, new PCM, new connector. Cause you know, worked on the older ones.
It's gotta work on the new ones. Long story short, she comes in by us. She's very upset. They asked me to look at, cause you know, it's gonna be a crazy one. Let's get the shop foreman involved. 90% of the time when they come from other shops, it's power is missing somewhere. So I go to it, you know, and in classes I always teach, you know, you gotta, you gotta have a system, gotta have a process.
I didn't even start the car. I go in and I look at freeze frame when the code's set. I was at 13 RPM, so during cranking. So it's during cranking. So what's the very next data pit I look at is voltage. In the dirt, 7.6. I needed a battery or needed a battery. Fix the car, right? That lady was just like arguing with us.
It wasn't going to fix it. I walked up front. The conversation you and I had earlier— nobody thinks they need to know the fundamentals. Why are you calling me without a battery test and without oil level? Don't call me. Yeah, don't call. Don't let— don't call me if you don't know what the battery test result is. You don't know the oil level.
I don't want you to tell me it's good. Everybody knows it when they call me. If you say it's good, I'll— Brian, if you called, said it's good, or somebody I trust says it's good, I trust what you're telling me. Yeah, but if, if you're not there and you tell me it's good I don't want to sound like an asshole here, but I will hang the phone up.
I will hang the phone up. Yeah, give me specs. But like, I don't— like, so that's like, that's my big beef in this industry. Like, we sell fixed cars and it hurts people's feelings, but man, there's— you're going to run out of talent on cars. Anybody that tells you they don't have— I got a couple Volkswagens and a Jeep I haven't fixed.
Okay, that, that's the reality. That's the real situation. I think the Jeep This is where many years later from when I didn't fix the Jeep, I think I know what was wrong with it now. I think I honestly— I think I honestly— we got a junkyard, it was like a '95 Jeep. Those are the ones that hurt because after the fact, once you get that knowledge, you're like— many years later, I'm like putting two and two together in my head.
I'm like, wait a second, I know what happened. The PCM was bad, and the Jeep that was in the junkyard that the PCM came out of went to the junkyard because that PCM was bad. I'm Pattern. It's the only thing that makes sense. But anyways, that's not fixed. Can't get a hold of it. If I could buy— if I could find that thing— it's crushed.
If I could have bought that thing and fixed it, that's how irritated I am about it. Same thing. And I have, um, I have a Volkswagen Touareg out back that I'm gonna have to figure something out on to make run again because I just— I can't live with it. It's, it's here, but it's not fixed. It's not fixed. I mean, cars that are And I have two, I have two Touaregs out back.
I have a diesel and a gas out back. I'm sorry. That are, and everybody's always like, oh, and as soon as I see somebody in the comments somewhere, oh, I've never, it's always the shop owners. It's always shop owners that are also techs and they're like, I've never had one I haven't fixed, blah, blah, blah, blah, blah. And the comments 2 weeks later, they're like, hey, I got this '03 Chevy that won't communicate.
And I'm like, does it have an aftermarket radio? Radio and they're like, yeah, why? I go, never mind. Because you don't give them the answer because they're so cocky. You know what's funny you say? You know how many shop owners I've— I worked for a shop owner one time early in my career that looked at me when I was in the middle of some testing and said to me, and this is during the heyday of IATN, just I got to put that out there.
Okay. I don't know what's taking you so long. I can diagnose any vehicle from my computer desk in less than 45 minutes. Handed him the tool and walked out of the office. You know, and guys, this isn't a shot at shop owners, like, not at all. But you are— I hear, I see this all the time. If you've been out of the Bay for a while, the last 5 years, I always make these blanket statements.
It's probably different. Vehicles last longer in certain parts of the country. Vehicles do not last long up by us. No, same. So we're working on, you know, our 2010s are gone. We're not working on 2010s. Very similar situation. We're not working on 2010s. The average mix of vehicle that crossed the threshold into our shop, the technology is continuing to advance at an exponential rate.
If you've been out of the bay for 5 years and you're going to try to make some blanket statement from your desk, don't. Just don't. Yeah. If you think the technician shortage is bad now, go ahead and piss one of them off by saying something like that. And I get it. And there's a lot of issues with techs. I get it. Yeah, I get it.
Absolutely. But it's not what it was. If you've been out of the bay for 10 years, this ain't what it was. Oh no. When you were, you know, even in there, even 6 months, you know, I've been leader, you know, running the shop pretty consistently for about a year. And when I have to go back out and get involved in a car, there's a lot of times I gotta stop I got to practice what I preach.
Theory and operation. How's this thing working? What's the enabling criteria? I'm in the shop almost every day and I just got pinched on it like a couple of weeks ago. It was— I went to do a purge seal on like a '23 Blazer with a 4-cylinder. And these new GMs have these things, they're purge pumps. Yes. So I made the assumption I didn't read, I didn't RTFM.
I have a whole ass class based on RTFM. Literally teaching that class tomorrow, right? Yeah. Made— there's chat groups that people have made with me called RTFM. Had poker chips with RTFM written on them. I have that on my diagnostic cart that I will fix. And your GMs have never changed their EVAP system since 1996. So I roll in there, do a purge seal and it ain't working.
I'm like, oh, this fuel tank pressure sensor is goofy. And I start looking around and the purge— long story short, it's— they added a component. They changed how they purge the engine. Yeah, because then RTFM. That's 3 years ago. But here's the other thing. We talk about this from a technician standpoint. The biggest issue I see, and I bet you see the same thing, we talk about reading the manual.
The reality is a lot of— I'm going to blanket statement Tex, and I don't mean it that way because this is a countrywide problem, but reading comprehension is a serious issue. And the reality is there's a lot of times I will try walking a technician through something and they will read it to me and they don't comprehend. Yes, we see it in our field, but until we fix this, we're fixing anything.
The funniest reading comprehension example I ever made, I ever, I ever had was we had Braxton did this thing where he takes something I say and he cuts it out of context and turns it into rage bait. So it was referring to people who won't read the manual, and because somebody had made a comment that, oh, this whatever is 22 pages long or something.
And I said, copy and paste it into ChatGPT and tell it to summarize it for you. And because they can't comprehend, they don't want to read the 22 pages. The reply comment was, listen to this guy telling us to just type the problem into ChatGPT. The— I was trying to solve his reading comprehension problem and he blocked himself up with more reading comprehension issues because that's not what I said at all.
It's funny how that works though. I remember, I remember, dude, do this to help yourself. He's like, are you seriously saying ask ChatGPT what's wrong with the car? I'm like, that's not at all what I just said. I remember with Tech Fix, Lowell had a video out probably 2, 3 years ago now that got edited. And he straight up said, guys, if you don't have technicians capable of doing advanced diagnostics, stick to brakes and suspension.
And nobody remember that one at all. Oh God. Oh, and they just, I had text messages, emails, messages for months on this. And it's because nobody listened to what he said. He stated, if you don't have those technicians currently, don't get involved with things you're not specialized to do. They will burn you to the ground. Ah, dude, I couldn't do what you guys do, man.
They will burn you to the ground. They will absolutely burn you. I stopped responding in groups because of it. Like, then, then they take they take us as assholes then too, because I'll ask a very— so I'm very big into being direct, right? A direct, you know, difficult conversations. But somebody's being passive-aggressive and you're just going to be regular. Yeah, I'm just going to be direct, right?
Right. Facts, not feelings. I'm big, especially my leadership style is very much facts, not feelings. Yeah, I'm not going to kind of gussy this up for you, but like, hey, so you'll ask a question and then you'll get, oh, that's why nobody goes to technical training because you guys are assholes. Dude, you literally have the answer in front of you. You're just too damn ignorant to see it.
Yeah. And you want to know why you don't get help in these forums? Because you have— man, I watched poor Rich Felco get destroyed in one just a few months ago. One of the most knowledgeable dudes out there. And you want to know why? It's because of stuff like that. I don't know how you guys do it with the podcast, man, because I see you guys get it left and freaking right.
I tell people all the time, the 5 smartest dye guys I know in the country. The 5 smartest— I know I'm very fortunate to know a ton of people smarter than me. If I had to rank them, which would be very difficult because we're talking about the top 0.1% in different specialties, they are different specialties. If I had to pick out the top 5, the top 5 I would pick do not respond in any forums or anything any longer because they're just like They can't deal with it.
They just can't deal with it. The amount of ignorance. Everybody wants a silver bullet. Nobody wants to work. You ask people, just like you said, what are the fuel trims? Good. Yeah. What's good? Good. What's all readings? I just did one a couple of weeks ago. Everything on the scan tool is good. I go, well, the car ain't broke. Like, how do you help these people?
And this is a huge issue. And like, there's owners in this industry that care. They care. They want their goal. Their goal. I was talking to one this morning. I had breakfast with her this morning. Her goal is to be profitable and make all of her employees' lives better. She goes, this, you know, she said, this thing where everybody's talking about serving the public, this, that, she's a bunch of hogwash.
This is my goal. I want to be profitable and make my employees' lives better. There's people who want to do that, but man, the egos make it difficult. The egos are the big thing. But I, I, and I think I know who you're talking about. And it goes back to, uh, again, I gotta, I gotta give Kevin some shout out here. Kevin taught me years ago, Mr.
Roth, he said, you know, there's a circle of business. The owner's got to give first, but they receive last. Yeah, yeah, yeah. So, you know, it's the owner takes care of the employees. Yep. The employees take care of the client. Client's going to take care of the business. The business is going to take care of the owner. It's the circle of of, you know, responsibility, I guess, be the best way to put it.
And I, I do think that a— I think a vast majority of ownership have the right intentions. Sure. The, the problem is, is they don't necessarily know how to execute. And let's face it, like, the reason all the coaching companies exist— and, and I'm all for them, I think, I think there's a coach for everybody Yeah, there's a lot of different flavors.
I think that you probably got to find your flavor. You gotta find one. Not everybody's got the same flavor. Not everybody wants to run the same way. But the reality is, is we're techs, right? And I don't own the business. I don't have the financial responsibility that Mark, my owner, does. Okay, I couldn't have that. Okay, I am not financial— I am not financially responsible.
You wouldn't be able to sleep with that much paint on paper. I couldn't do it. That's what they call it with farming, right? Yeah. I, I am very, uh, I would be the employee I would want to hire. And I— this sounds like very egotistical, but I really care. Like, I watch every— like, I watch everything. That's how I got to where I am.
But, you know, most, most owners were former technicians that didn't understand business. And let's face it, a lot of owners still don't understand base business. So, you know, having those is, is huge. But I do, you know, back to the whole thing, I think most owners want to. And the reality is they're just not making the money they thought they were going to.
And that again, that's where I think, you know, I think everybody needs a coach. I've had this conversation with so many techs and they're like, oh, well, I think I'm going to go out on my own. You talk to them and, you know, they think they're being treated unfairly. And I'm like, well, what do you do? This, that, and the other thing.
You get a good feel for where they're at. They tell you what they're making. You ain't gonna make that as an owner. I'm like, that's not gonna work. You're not. No, no. I'm like, you're gonna have to grow. I go, you'll— I go, once you get a 5-bay shop with 5 guys working on in it and, uh, probably a writer and a half, a full-time and a part-time writer at the counter, you could probably make that.
But the perception versus reality Yeah, I, I think these guys, a lot of them think that they're— you're gonna— a lot of them see— the other thing is a lot of them see the result of many years of hard work. Well, and they think that you— huh? That's in anything. Yeah, I mean, think about how many times you sit in a class, you look at a technical trainer and you go, damn, that dude's smart.
No, he's just been beat up. He's standing on a pile of shit that got him there. That's— I tell everybody, like, any success you think I have, first off, I screw up daily. They're like, how did you know that wasn't going to fix it? Uh, because I've put that part on before and it 100% does not fix this problem. And this is the question, even though it says it does, it's hard not to do it, man.
Hard not done that. It's never this, it's never this, it's never this. And then one day it's that. That eventually happens too, right? It's never this, it's never this, it's never this. You get the whole it's never this about 137 times, and then like one day you're like, well, it's not that, I gotta go find the real problem. You can't find the real problem because it was that thing.
And I'm like, okay, well, lesson learned. But yeah, black, white, and gray. Yeah, everybody looks at it and they're like, oh, I'm gonna go out on my own and I'm gonna do this work here. And like, and they think they have this huge— oh, all these customers are going to come to me and this, that, and the other thing because they always come to me.
And then they find out, oh, they were going to that shop because they got a loaner car and they have Synchrony. Um, you're working out of your barn, do you have a loaner car and synchrony so they can finance the repairs? Oh no, you don't. Here's the other thing, company that much. I think from a technician standpoint, I think I would be a better technician today if I was production.
Now understanding technician KPIs, understanding them now, like having a grasp. If I would have had that 10 years ago when I was doing production, what they were looking for, dude, I'd have freaking rockstar. I would have hit 200. No, I'm just joking, but I would have had a much easier life. I actually about to say you'd hit 200 hours a week. No, no, not, not, not me.
Never been sleeping in your toolbox. You just crawl in it and shut the door for 4 hours, come back out. I, I literally just sent one of my first employers a message and thanked him for being— he was kind of an asshole to work for, but I was an asshole employee. And I sent him a message apologizing and said to him like, hey, you're probably the best leader I ever worked for, right?
I didn't understand I understand it now. It's funny how everything comes full circle. One of the first people I ever worked for, um, one of the first— well, the second, the second job at a shop I ever had, um, life happened to him. His dad had a produce business. Long story short, his dad passed away, whatever. And, um, he runs his dad's produce business.
The dude was super smart. He taught me— he was the shop owner that could die back in 2004. This guy could die a car. He knew why. He knew why the car was broke. He would show you. He taught me how to diag a catalytic converter. He taught me how to diag an O2 sensor. He taught me how to diag ignition misfire.
It's so funny because come full circle, he runs this produce business now. So now this guy that got me going in the right direction, this industry, like brings his broken stuff to me. He's like, I don't know what's wrong with this thing. Just awesome. Figure it out, man. You know what I mean? That's awesome. Isn't that awesome how it just came full circle?
That's so great. You know, and I love it, but being able to admit it too. Like, I gotta be honest with you, man, writing him, that was a struggle for me because I remember, I remember when I actually worked for him twice. Okay. And on the second leaving, or maybe it was the first, I don't even remember anymore. He— it's your— I mean, years ago, and I've got the memory of my second leaving.
Yeah, I don't remember. Dory the goldfish is me anyway. But, um, he said, you're only successful because of me. And I held that close to the freaking chest for years. And I gotta be honest, when I started getting a little bit of popularity, I guess I'd say, I made sure he seen it. Right. Kind of, kind of as an asshole move. But in retrospect, a lot of who I became was because of him.
Right, right. But that was a hard— that was a hard pill to— right, very hard pill to swallow to say, you know what, you did have whether it was positive or negative, we'll leave that out. But you had, you did have an impact, enough of an impact for me to get my shit together and get in the right direction. Yes, absolutely. And you know, me at 25 versus me at 40 today, I, I appreciate it a lot better than I did then.
Cuz back then, you know, you're, you're on, you know, pure testosterone. Like, nobody's going to tell me anything. I'm 25 years old, I know everything, I've done everything, don't talk to me. Yep, absolutely. And, and again, like, from a technician standpoint now, understanding my KPIs as a technician. I think if more technicians learn those before they wanted to go out and be an owner, I think it'd be a fucking reality check.
Forgive my language, but it would be one hell of a reality check for a lot of us. Right. That's awesome. That's great advice for all the technicians out there. Every one of you. Because we have technicians that listen to this podcast because they get ahold of me sometimes. So complaining about their ESO. So, well, what a great conversation. We've been at this for about an hour.
Dang, time flies, brother. Right. I really appreciate you being on. Thank you, man. Uh, I appreciate you. Maybe I'll pop into your class later. I won't ask any questions. I try to behave. I try to behave when I'm in your class. Guys, I need you to understand, was it 2 years ago? Before we end this, 2 years ago, I believe it was here at Tools.
Was it like your first major teaching day? I taught Super Saturday. You were going to teach 8 hours. You were teaching an 8-hour class. I was filling in then too. That's right. And not only, so I want you guys that want to teach, and I encourage anybody to teach because if you want to get good at something, you got to teach. Yeah, yeah, yes.
And that's scientifically proven. This asshole sits in my front quarter along with Kokonas, Steckler. I brought Steckler, uh, Mr., Mr. Jim Wilson. Mr. Jim, I love— yeah, old man Wilson. And shout out to Mr. Wilson. And there was a couple others, I, I don't remember who they were. There was a bunch of us in there because everybody's like, what are you doing this morning?
Everybody's gonna goof off. I'm like, Andrew Fisher's gonna like teach his first major gig. I'm like, let's go sit in the front row of this thing. And nobody would sit in the front row, but I sure did. Right in the front quarter. And you know what, I still to this day, every time you teach, I'm teaching the same session. So I never— you can never get it.
I can never do it. It pisses me off, man. I think, uh, I think when, uh, when class submissions and stuff came up for this, I told Brett, I go, I will, I will teach, but I have to teach at the same time Andrew Fisher teaches because he's not gonna sit in the front row of my class and heckle me. But I don't think heckled you.
You know what, I'll tell you this though, that was some of the best constructive criticism. And as an instructor, get ready for that. Um, that was some of the best constructive criticism I ever got. Um, you know, Brandon pulled me aside, worked with me. You and I talked. Jim busted my balls the entire time. And it wasn't anything negative. It's like, hey, hey, that's really cool how you did this.
I maybe would have done this. And then you were, you know, it was just whatever, you know. And I learned a ton of stuff in the class too. Great. It was a great class. It was career technical training career-changing for me. Oh, that's awesome. And you know, as much crap as I give you over it, it definitely was one of the best things that could have ever happened.
Oh, that's awesome. So thank you. I will never admit that again. So edit that out when you do the edits. Edit that out for accident. But no, it was humbling. It was here, I think it was 2 years ago. It was last year. Last year I had to hurry up, get in because my kids graduated. I remember you were in and out last year.
I taught Sunday morning, so we drove. You taught Sunday morning? Yep. I had enjoyed a little bit too many adult beverages. I made sure to text you. I said, hey, I thought your class was great. My head really hurts. I have to go sit somewhere else where there's no noise. No, this is not you, man. Your class is great. Tools is always so great to me, man.
You know, we're all blessed, you know, all these, all these organizations that, you know, allow allow us to teach and the, the conferences. And then like Benji, Benji and Chad bringing me into their shop. I got— still got to do some stuff for Dan. I owe him. Yeah, I own, uh, Joe some stuff. So I'll make sure to sit in the— when you're at Dan's shop, I'll come sit in the front row of that too.
You know what, in his shop I can get away with saying a lot more. So, but yeah, you know, I just want to thank everybody for that. You know, it's, it's definitely humbling, you know. And, uh, you know, didn't forget where I came from as far as the technical training goes. I do appreciate you brother. I appreciate you too. Thanks for being on.
Thanks for listening to Confessions of a Shop Owner, where we lay it all out— the good, the bad, and sometimes the super messed up. I'm your host, Mike Allen, here to remind you that even the pros screw it up sometimes. So why not laugh a little bit, learn a little bit, and maybe have another drink? You got a confession of your own, or a topic you'd like me to cover, or do you just want to let me know what an idiot I am?
Email mike@confessionsofashopowner.com or call and leave a message. The number is 704-CONFESS. That's 704-266-3377. If you enjoyed this episode, be sure to like, subscribe, or follow. Join us on this crazy journey that is shop ownership. I'll see you on the next episode.
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Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HERETurnkey Marketing takes the stress of doing something I'm not good at off my plate. And gives it to someone who is. Click HERE for more.47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREWhen I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Mike Allen catches up with James Hornak and Nathan Ward roughly a year after their first appearance on Confessions of a Shop Owner—and a lot has changed. Their shop now has three full-time technicians, has been running roughly 180 cars a month at around a $955 ARO, and is pacing toward approximately $1.5 million in its first full year. They explain the strategy behind their controversial $29 oil changes, what happened when their first $100K month convinced them they could change roles too quickly, why finding the right service advisor has been harder than expected and how coaching and involvement in the industry accelerated their growth. Mike also opens up about the management mistake that wrecked his own shop culture, they discuss building strong DVIs without trying to sell every discovered item immediately, and Nathan casually declares that the goal for next year is $3 million. Oh—and James and Nathan finally reveal that they were behind the mystery Mike Allen shirts that had him accusing half of ASTA Expo of conspiring against him.Timestamps:00:00 – Mike Discovers the Mystery Shirt01:26 – Martini Bar at ASTA 😂02:24 – Is the Mustang STILL Broken?04:19 – One Year of Insane Shop Growth06:01 – Hiring Three Technicians in Year One09:24 – 180 Cars a Month & $955 ARO10:42 – The $29 Oil Change Strategy12:25 – Pacing $1.5 Million in Year One16:50 – Mike’s Shop Culture Fell Apart18:59 – $100K Month → $60K Month20:38 – Mike’s Best Service Advisor Was a Bartender21:48 – Why Coaching Changed Everything23:44 – Should They Buy a $2.5M Shop?27:54 – Paying Off Debt & Building the “F You Fund”28:30 – WHO MADE THE MIKE SHIRTS?! 😂38:04 – Profitable Enough to Spend Money on a Joke53:28 – The Free Diag Debate Returns55:59 – $5,300 in Discovered Work58:58 – The $3 Million Goal1:03:03 – From Startup to $1.5M Through Community & Coaching

Ep 123 - Caleb McElmurry | When Should a One-Man Shop Hire Its First Technician?
Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HEREIf you're like me and aren't good at marketing, don't do it on your own. Let the experts handle it. Touch HERE for more on Turnkey Marketing.47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HERE When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Mike Allen and Bryan Pollock welcome Caleb McElmurry to talk about the realities of building a repair business when you’re still the technician, service advisor, estimator, parts department and owner all at once. Caleb started mobile, moved several hours away and essentially started over with a brick-and-mortar shop—and now he’s intentionally waiting until the business is consistently ready before hiring his first technician. They debate why hiring a cheap apprentice first can actually make a solo owner less productive, how many billable hours might signal that it’s time to hire, what types of jobs a startup shop should avoid and why some European cars can eat a new shop alive. Caleb also explains why his first major training event is focused almost entirely on business and service-advisor skills instead of technical classes, and the conversation turns into ASE certifications, technician licensing, customer communication, $1,000 AROs and why owners shouldn’t go home from training and try to change their entire business Monday morning. The bigger lesson: being great at fixing cars gets you started—but learning how to run the business is what determines what happens next.Timestamps: 00:00 – Why Startup Shops Should Be Careful With European Cars05:13 – Meet Caleb McElmurry06:01 – From Mobile Mechanic to Brick-and-Mortar07:09 – When Should Caleb Hire His First Technician?09:22 – Why Your First Hire Shouldn’t Be Cheap Labor10:05 – How Busy Should a Solo Shop Be?13:00 – Tow Trucks, Winter & Small-Town Shop Life16:00 – Stop Giving Jobs the “Go Away” Price20:29 – First Training Event: Don’t Implement Everything23:00 – Why Caleb Isn’t Taking Technical Classes25:00 – Should Automotive Technicians Be Licensed?30:00 – ASE, Apprenticeships & Industry Standards33:00 – Just Get 1% Better34:00 – Caleb’s Service Advisor Process36:42 – Do Customers Need Prices Explained First?38:00 – A $1,000 ARO in a One-Man Shop39:00 – Caleb’s Plan for His First Technician41:12 – The Difficulty of Turning the Business Off43:13 – Late Nights at ASTA

Ep 122 - Trey & Sasha Holley | Stop Looking for A-Techs. Build Them.
Keep shop management, payments, marketing (all the things) all in one place with Tekmetric. It will CHANGE YOUR LIFE. Click HERETurnkey Marketing has made my life SOOO much simpler, AND they've helped keep the phone ringing. Do you need these two things too? Learn more HERE47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREMike Allen sits down with Trey and Sasha Holley, owners of a 10-bay repair shop in Thomaston, Georgia, for a conversation about growth, technician development, working with your spouse and building a business that can eventually survive without you. Trey and Sasha share how losing Sasha’s father suddenly forced them into the business side of automotive before they were ready—and why watching him work himself relentlessly shaped the kind of shop they want to build today. They also explain why struggling to find an experienced A-tech completely changed their hiring philosophy after they took a chance on a high-school student, bought him a toolbox and developed him into a productive young technician now learning diagnostics. The conversation gets into their 400-hour backlog, whether becoming a multi-shop operation is actually something they want, succession planning for their son and the uncomfortable question of what happens to your business if you die tomorrow. And in true Confessions fashion, Trey eventually admits that one of his shop’s biggest historical problems wasn’t employees, technicians or customers—it was his own attitude.Timestamps: 00:00 – Do You Really Need an A-Tech?01:29 – Meet Trey & Sasha Holley03:59 – From Two Bays to a 10-Bay Shop05:38 – Being Thrown Into Business Overnight06:15 – Losing Sasha’s Dad at 5108:57 – Starting Their Own Shop11:02 – Running a Business With Your Spouse13:03 – When Employees Play Husband vs. Wife16:40 – Moving a Technician Into the Front Office18:17 – 400 Hours of Approved Work19:27 – Stop Looking for A-Techs—Build Them20:50 – Teaching a Young Technician Diagnostics22:49 – The Never-Ending Growth Problem23:56 – How Much Growth Is Enough?25:39 – Building a Shop Their Son Can Inherit26:08 – What Happens If the Owners Die Tomorrow?28:36 – Mike’s “Oh Shit, I’m Dead” Book35:08 – What Happened to Sasha’s Dad’s Shop?38:04 – Their First ASTA Expo47:03 – Stop Making Excuses and Show Up51:09 – Trey’s Confession: “The Problem Was Me”52:44 – “I’ve Only Had Two Leave in Tears” 😂

Ep 121 - Marketing Call #2 | Are Your Advisors Accidentally Turning Customers Away?
Tektonic 2027 is coming up April 1-3, and if you missed year 1, you MUST NOT miss year 2. It's bigger, it's better, because is Tekmetric's conference. You know it's gonna be the best conference in the history of conferences. Get lower pricing now HEREMy marketing before and after signing up with Turnkey Marketing is pretty scary. In a good way. Get your marketing right today HERE47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you! Make your techs happier with Detect Auto. They'll stop getting "check noise" or "check vibration" from advisors with the customer concern tool. It will CHANGE YOUR LIFE. Book a demo HEREElite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREMike Allen sits down with Carry-Lynn Rodenberg of Turnkey Marketing for Marketing Call #2, and this time they dig into what happens after your marketing actually works. Mike shares the numbers from his shops—including nearly 2,700 inbound callers in September, roughly 550 unanswered calls and a call-to-car conversion rate of only about 33%—and they talk about how much revenue can disappear when advisors accidentally repel customers. They also discuss handling negative Google reviews, why customer retention may be more important than buying more leads, ways to fill an empty schedule, and why overwhelming customers with massive estimates can sometimes hurt long-term relationships. Carry-Lynn also explains how Google and other AI tools are changing local search, why shops need to be prepared for AI-generated phone calls and why lazy AI use may eventually make every business sound exactly the same. The big question throughout the episode: Do you actually need more marketing—or do you need to stop wasting the customers you already have?Timestamps:00:00 – How Advisors Accidentally Push Customers Away01:08 – Mistakes Happen—Your Response Matters09:34 – Google Reviews & Rebuilding Reputation11:48 – How to Respond to a Bad Review13:37 – What Mike Learned From His Negative Reviews15:46 – You Paid to Make the Phone Ring—Now Convert It18:44 – Measuring Call-to-Car Conversion20:48 – Mike Missed 550 Calls in One Month23:46 – Google’s AI Is Calling Repair Shops28:46 – “Be Nice to the Robot” 😂30:42 – Could AI Capture 100 More Cars a Month?32:50 – Is a Huge ARO Destroying Customer Retention?34:49 – Only 24% of New Customers Came Back39:59 – How to Win Back Lost Customers43:16 – What to Do When Next Week’s Schedule Is Empty48:01 – Easy Customers Already Sitting in Your Database49:35 – Marketing Priorities for a Smaller Shop53:34 – The Most Alarming Thing About AI Marketing57:10 – Bad Marketing Decisions & AI Slop
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Episode 285 - Bad Reviews Can Lead To Better Practices With Brett Hunziker
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 discovery call for your business: https://geni.us/IFORABEDon't miss an upcoming event with The Institute: https://geni.us/InstituteEvents2026Shop-Ware gives you the tools to provide your shop with everything needed to become optimally profitable.Click here to schedule a free demo: https://info.shop-ware.com/profitabilityTransform your shop's marketing with the best in the automotive industry, Shop Marketing Pros!Get a free audit of your shop's current marketing by clicking here: https://geni.us/ShopMarketingProsShop owners, are you ready to simplify your business operations? Meet 360 Payments, your one-stop solution for effortless payment processing.Imagine this—no more juggling receipts, staplers, or endless paperwork. With 360 Payments, you get everything integrated into a single, sleek digital platform.Simplify payments. Streamline operations. Check out 360payments.com today!In this episode, the conversation focused on real-world challenges faced by shop owners and technicians, including the complexities of managing customer expectations and navigating negative reviews. One concept discussed was the need for transparent diagnostic processes and detailed communication, especially when customers question pricing or feel they already know the issue with their vehicles. A key theme that emerged was the importance of accurate shop management—covering everything from parts inventory to internal controls in software like Shop-Ware—to ensure profitability and reduce clerical errors.00:00 Out-of-province vehicle inspections06:53 Florida driver's license language law15:54 Construction mistake with leaning structure16:42 Visiting the 9/11 Memorial Museum23:08 Challenges of Replacing Headlights27:58 Car repair frustration and miscommunication32:35 Discussing diagnostic trouble codes37:32 Introducing Whisperflow for Note-Taking47:24 Customer dissatisfaction with tire pricing50:29 Dealer pricing and customer experiences56:11 Adjusting labor rates and pay structure01:01:02 Evaluating Business Efficiency and Labor01:09:15 Old machinist's inventory strategy01:09:52 Buying and selling steel

EVERYTHING You Need to Know about Master Tech to Millionaire + Autoshop Answers
In this crucial & very special episode of Master Tech to Millionaire, Joe Adams & Glenn Piccolo break down the essential terminology, history, and operational secrets of the Auto Hospitality Group to get you totally dialed in. Whether you’re gearing up for the legendary Key to Key to Callbacks weekend, VIP, Courtside, or just want the blueprint on how a master technician scales into a millionaire, we’re decoding it all. Get ready to learn the 8-figure difference between auto repair and auto hospitality, what a "VIP Rack Attack" actually looks like, and why hands-on jobs in "Bay 1" are your biggest opportunities. Stop guessing and start scaling. Hit play to learn the language of million-dollar auto shops, and visit AutoShopAnswers.com to get your business on the fast track. https://autoshopanswers.com

Daily Habits That Build a Stronger Auto Repair Shop Culture [THA 501]
Thanks to our Partners: NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:8e59eec7-a235-4fa3-a072-956fea3fe478-7" data-testid="conversation-turn-4" data-scroll-anchor="false" data-turn="assistant"> *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:49a777bf-d263-4496-bf0b-2eb3a46ac96a-11" data-testid="conversation-turn-24" data-scroll-anchor="false" data-turn="assistant"> What does a strong shop culture look like when you’re the people living it every day? Bree Wismer, Service Advisor and Frontline Culture Leader, and Trevor Hinds, Operations Manager and Dispatcher at Empower Automotive in Traverse City, Michigan, take us inside the daily habits and communication practices that keep their team aligned, productive, and focused on the customer. Rather than approaching culture from the owner's perspective, Bri and Trevor share what happens on the front lines. They explain how Empower Automotive breaks down the traditional divide between the front counter and the bays, keeps everyone on the "same bus," and creates a workplace where every person understands their role, respects the team around them, and contributes to the same goal. What You'll Learn Why the front counter and specialists must operate as one team.How daily huddles and short training sessions keep the team aligned.Why the 1:00 PM check-in can prevent late-day customer surprises.Why a "no-update" update can be one of the most valuable customer communications.How to respond when customers arrive with AI-generated or parts-store diagnoses.How respect, communication, and accountability create confident professionalism. Building a world-class shop culture doesn’t require a massive budget or a complicated organizational overhaul. By committing to these small, consistent actions, you can transform your shop from a high-stress environment into a thriving, unified business that both your team and your customers enjoy. Bree Wismer, Service Advisor, Frontline Culture Leader, Empower Automotive, Traverse City, MI Trevor Hinds, Operations Manager, Dispatcher, Workflow and Culture, Empower Automotive, Traverse City, MI NAPA TRACS will move your shop into the SMS fast lane with onsite training, six days a week of support, and local representation. http://napatracs.com/ Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. https://www.todaysclass.com/ Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. https://www.kukui.com/ You’re probably tired of chasing new customers who never return. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/Visit the Website:https://remarkableresults.biz/Subscribe on YouTube:https://www.youtube.com/carmcapriottoFollow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmastersJoin Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976Join our Insider List:https://remarkableresults.biz/insiderAll books mentioned on our podcasts:https://remarkableresults.biz/booksOur Classroom page for personal or team learning:https://remarkableresults.biz/classroomBuy Me a Coffee:https://www.buymeacoffee.com/carmSpecial episode collections:https://remarkableresults.biz/collections The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto:https://remarkableresults.biz/Automotive Field Theorywith Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numberswith CPA Hunt Demarest: https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcastwith Brian and Kim Walker:<a...

217 - AMA: How the Best Shops are Confident in their Pricing
217 - AMA: How the Best Shops are Confident in their Pricing September 3, 2026 - 01:03:32 Show Summary: Profitable auto repair shops build pricing around financial data instead of fear or competitor rates. Rising technician pay and rapidly advancing vehicle technology make strong margins essential for investing in people training and equipment. Confidence comes from understanding the true cost of doing business and recognizing the value a skilled independent shop provides. Customers are often willing to pay more when they trust the quality and experience behind the service. Strong systems and productive teams also give owners the foundation needed to grow without sacrificing profitability. Long term success requires clean financials clear value and the willingness to charge what the business needs to thrive. Host(s): Lucas Underwood, Shop Owner of L&N Performance Auto Repair and Changing the Industry Podcast Cecil Bullard, Founder of The Institute Show Highlights: [00:01:00] – Rising technician pay makes accurate pricing more important than ever. [00:07:00] – Setting prices based on competitors leaves shop owners flying blind. [00:12:00] – Great technicians use diagnostic data but often ignore business data. [00:19:00] – Confidence means explaining why quality automotive repair costs more. [00:27:00] – Low prices can actually make customers question service quality. [00:31:00] – Build operating reserves before expanding into another shop. [00:37:00] – Create a shared vision to earn staff support for pricing changes. [00:44:00] – Automotive pricing has failed to keep pace with rising costs. [00:53:00] – Independent technicians bring valuable diagnostic skills to complex repairs. [00:59:00] – Clean financials create confidence in what your shop must charge. In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? 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/bk5g3FjpoEo 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: Lucas Underwood: Good afternoon, everybody. My name is Lucas Underwood from Changing the Industry podcast. I'm a shop owner here in Blowing Rock, North Carolina, own LNN Performance Automotive Repair, and today I have the honor to be joined by Cecil J. Bullard, and we are talking pricing here, uh, on today's show, and we're talking about confidence in pricing. Cecil, buddy, how are you? Cecil Bullard: I'm great. I'm Lucas Underwood: great. You're not a has-been yet? Cecil Bullard: Not yet, brother. I'm a still-was, I think, or maybe never was. I don't know, man. Lucas Underwood: I'm a something, right? Cecil Bullard: I'm something. Somebody knows who I am. Lucas Underwood: Man, I love it, and, and listen, we're talking pricing today, and it's really interesting. I'm, I'm headed up to Kentucky, uh, for the Survive or Thrive Thoroughbred Diesel event in October, and I was working on a presentation for them, and it's really about my story as a shop owner. And for those who don't know, I, I started in diesel performance. I was selling diesel performance parts, and one of the things that we faced in the diesel performance world is they had these MAP prices, and all of these online vendors were selling their parts for MAP prices, and I thought I had to compete with that. And one of the biggest challenges I ever faced as a shop owner was overcoming that fear of charging what I needed to charge. So Cecil, how do we get these shop owners who are listening, these shop owners who are gonna view this later, to the place that they're confident in their pricing? Cecil Bullard: It, it's, it's a, a combination of multiple things obviously. I mean, we, uh, I think if you understand, um ... So let's ... See, this is gonna jump around like it always does. Uh, you keep me on focus. Um- Bet. I'll Lucas Underwood: do what I can. No promises. Cecil Bullard: Right, right now we, we have this, this, uh, techs coming in. Uh, had one yesterday, uh, you know, uh, one of my clients is interviewing a tech, and the guy's saying, "I want 100 grand guaranteed." And, uh, you know, I would tell you two years ago that was probably 65 or 70 maybe. Yeah. And so now it's 100,000. And so we have this, um, uh, you know, the, the, the shortage, right? Lucas Underwood: Yeah. Cecil Bullard: And, uh, we have a demand, and we have, uh, a necessity of probably paying more. So if I understand, you know, what I'm paying and why I'm paying it and what I need to pay, then I also have to relate that to my pricing. Because- Yeah ... um, if I don't charge enough, I don't get paid enough to pay the person that I need to enough to buy the equipment, to buy the training. And y- you know, when I, uh, was, was working as a tech, which is a long time ago, um- Lucas Underwood: Yeah ... Cecil Bullard: and, and people will go, "Oh, wow, did the cars have wooden tires?" Yeah. "Or were they rubber?" I was Lucas Underwood: gonna say, I, I Cecil Bullard: can't believe- They, they were rubber, man ... we had Lucas Underwood: cars that long ago, you Cecil Bullard: know? They were, they were rubber, yeah. But, but, um, you know, classes were, uh, few and far between frankly. Mm-hmm. Uh, mainly manufacturers had classes. We didn't have a lot of the aftermarket stuff like Asta that's coming up where we could get great tech training there or- Yeah you know, great management training. Um, and it wasn't ... But it also was very inexpensive in comparison maybe to what training is today. And the cars, of course, were a lot simpler. So there's this idea that, okay, what I'm doing ... Uh, and I think this might be one of the core problems we have with shop owners. They do not understand the value of what they do- For sure ... their knowledge, right? Yeah. Most of them, you know, uh, we still have a, probably a higher percentage of people in our industry that were not ... You know, they don't have a college degree. They didn't, uh, you know, have a master's degree in, in automotive technology or- Yeah or, you know, engineering or whatever that is. Um, and many of these guys, I had a, again, a conversation, uh, Sunday with one of the clients that, um, you know, he's like, "I, I didn't even graduate high school," right? "I, I, uh, I got into drugs. I went to, I went to prison. Uh, I got out of prison. I started to be a mechanic 'cause I, that's, I could do that." And now he owns a shop, and a pretty successful shop. Now he owns a couple pieces of property. And, but- Lucas Underwood: Yeah ... Cecil Bullard: I think if we don't value what we do- Or we don't see the value in what we do. And I also think that, that we have blinders on as, uh- Mm ... shop owners because all we really see, uh, we, and, and how we interpret what we see is probably, uh, very limited. So I drive down- Lucas Underwood: Yeah, through our lens. Yeah ... Cecil Bullard: I drive down these five streets to get to work, and there are three shops, and I drive by, you know, Billy Bob's shop, who is the cheapest guy in town, and I know that, and man, he's got a lot of cars parked outside that shop. He's always got a lot of cars. And then my phone doesn't seem to be ringing, and it's- Yeah a real, it's a natural leap to go, "Well, my price must be too high," right? Lucas Underwood: For sure. For Cecil Bullard: sure. Uh, as opposed, uh, as opposed to, number one, I don't know what Billy Bob's costs are. Yeah. I don't know if Billy Bob, uh, is paying rent, you know, how much rent. Uh, I don't know what Billy Bob's- Yeah ... paying his technicians. Don't Lucas Underwood: even know if he's doing any marketing. Right? And frankly- Those could all be comebacks, right? Yeah, and, and- Like, we don't know Cecil Bullard: Yeah, and frankly, I don't even know if he's making any money at all, right? He might be losing three grand a month, and- Lucas Underwood: That, that's a- But- That's a great point, right? Because I, I've been- Right there, done that, right? Because I, I, I was the guy riding by the other shops, looking at the other shops saying, "Oh, look how busy they are. Look at what they've got going on," not realizing that some of those cars had been sitting there for weeks. They hadn't- Yeah, for months ... got anything done. Yeah. Right. And, and a, as I dug in and I started talking to these guys, I'm going and talking to them, I'm realizing, hey, listen, they're doing twice the amount of work for the same amount of money. I'd rather have an empty parking lot and make the amount of money I'm making as I would- Cecil Bullard: Oh, yeah, yeah. If I'm not gonna make any money, I'd rather not work. I mean- Lucas Underwood: Exactly ... holy smokes, right? Exactly, and look, here, here's what I keep seeing, and I talk to shop owner after shop owner, and this- You know, David gets frustrated because we keep having this discussion over and over again. And he said- Yeah ... "Why do we keep having this discussion?" I said, "Because all of these techs leave shops and decide to start their own mobile mechanic business. They decide to start their own shop. They go out on their own and they do their own thing. And so we have to continue to teach them because they were uninterested in this when they were technicians. They didn't care." And eventually what happens is we have these new folks coming in, they get burnt, they're trying to figure out, "Why can't I pay my bills? This isn't working for me. What's going on? Why doesn't this work?" And Cecil Bullard: so then we- And by the way, they- when- Go ahead ... when people see this or, or people that are watching, many of them will be barely making a living. You know? Yeah. They, what they have is a bad job that doesn't- Yeah ... pay well. So I work- Lucas Underwood: Exactly. 100% ... Cecil Bullard: I work 70, 80 hours a week, and I, I can't go to my daughter's play and I can't do this and I can't do that, um, because I'm trying to get this car fixed so I have the money to go in the bank to pay the bills. And, and they're- They're payrolls we- ... trapped in this, they're- Yeah ... trapped in this thing, and, uh, they don't understand that, that you don't have to be trapped in that thing. Lucas Underwood: For sure. Right? And, and here's the thing, is, is over and over and over again, I have this discussion. Right? I talk to, to hundreds of shop owners and techs becoming shop owners through the span of a given month, right? Talk to- Yeah ... tons of them. Get a message every single hour throughout every single day- Yeah, every day ... from somebody, right? Cecil Bullard: I'm glad I'm not you, baby. Lucas Underwood: And so what I'm noticing is, is they're all going out and they're setting their prices, and they're using what I like to call the Oreo pricing method. Cecil Bullard: Yeah. Lucas Underwood: So they've got, you know, shop over here's on the high end, shop over here's on the low end, I'm gonna be somewhere in the middle. And I talk to them and I say, "Guys, hey, listen. I don't know if you know this, but you should probably be using data to set your prices. And that data comes from your financials, and otherwise you're flying blind because you don't know if you're pricing yourself correctly or not because you're not using the data. Now yeah, we can give you some numbers that the industry standard is, and we can get you 90% of the way there," but they all panic when you give them those numbers, Cecil. Cecil Bullard: But I'm also- They have a- I'm also, I'm also not sure there's an industry standard because- That's true ... you know, we still have shops, you know, uh, that are probably under $100 an hour in the industry. Yeah. I mean, there's that mobile guy that's out there for 80 bucks an hour. Lucas Underwood: Yeah, yeah. Cecil Bullard: And, uh, I've got shops that are- And thinks he's Lucas Underwood: doing them favors. Thinks he's doing- Yeah, Cecil Bullard: and I've Lucas Underwood: got- ... the guest a favor, man. Come on now. Cecil Bullard: I've got shops that are in the same- General location that are 250 an hour. Yeah. So I don't, I don't know that there's an industry standard. I don't think there is a standard. But- In fact... Yeah. Lucas Underwood: Here, here's the problem though, is that it- standard or no standard, the reality is, is they're setting their price- Survive ... based on feel. Yeah. They're setting their price based on what the market looks like around them and what they suspect the market will bear. And, and I'm telling you, would you go out and say, "I feel like this car needs a $4,000 control module"? No, you wouldn't do that because that's asinine. That's stupid. Why would you take your business, which has the potential to generate hundreds of thousands of dollars of revenue every single year, every single month in some cases- Cecil Bullard: Yeah Lucas Underwood: and take a gamble with it? Why would you do that? You wouldn't do that with a client's car. It just makes Cecil Bullard: no sense to me. Well, you know, we, we don't like... I, I wouldn't go to a doctor that didn't have a degree, and I don't mean this in the sense that mechanic-wise. I'm just saying if I knew the guy was a quack, I wouldn't go there because I don't want somebody- Yeah guessing about my health, right? Lucas Underwood: Yeah. Cecil Bullard: And yet I have this business, and, and my business has done everything for me, right? Lucas Underwood: Yeah. Cecil Bullard: Don't get me wrong, I've also done everything for my business, right? Yeah. But, but my business provides the money that allows me to live the lifestyle, that allows me to help the industry, that allows me to drive a nice truck, that allows me to, you know, have a, a nice coat- Yeah if I want it, that feeds my family. You know, and we can eat steak and, you know, all that. The, the business is the engine that runs your life- Yeah ... in a way, okay? And so I've got this thing that literally can create generational wealth- Mm-hmm ... or it can be a bad job where I work too hard too long and don't, and don't get paid for it. Be a burden take away from Lucas Underwood: my family. Yeah. Cecil Bullard: So, like, I, I'm talking to, uh, another shop a couple of days ago and, and we're talking about, uh, they're gonna- they wanna hire this guy who wants $100,000. And I'm like, "Okay, we can do that," right? Yeah. And I'm like, "Uh, so that's," whatever, it's 50 bucks an hour basically. And, and so, uh, what's our effective labor rate? Well, our effective labor rate's probably not what our po- Our, I think the posted labor rate was between 155 and 175, depending on the kind of car and the job we're doing and- Lucas Underwood: Yeah ... Cecil Bullard: and but the effective labor rate was probably 130, 140. And, and so now you're... I'm doing math saying, "Okay, it's $50." Then I've got 30% load, so it's really 65. And then if the guy comes in and he's only, say, 80% productive, then my cost goes from, say, 65 probably all the way up into the high 80s. Lucas Underwood: Yeah. Cecil Bullard: And now I'm paying out 55% of the labor I brought in- Instead of 40%. And so that difference of that 15% is the difference in my profit, right? Yeah. And it means I don't make money in most shops. Exactly. Yeah. Many shops are, are not even making 5% profit. Lucas Underwood: Hey. Cecil Bullard: And, and so if you're gonna lose 15% because you hired the wrong guy or you didn't price yourself correctly- Yeah ... or you didn't hold the line or you didn't build value, um, and you're gonna end up losing that 15% and only make 4%, then you have a terrible job with terrible hours and terrible pay. Um- Lucas Underwood: With no return on investment. Yeah. And, and he- here's on top of all of that, like when we look at this and we think about the whole strategy here behind setting our pricing and everything else, like profit doesn't happen by accident, okay? Cecil Bullard: No. Lucas Underwood: You're not gonna just walk into your shop one day and say, "I think the number needs to be X", and set that number and be profitable. Now, you might get lucky. Yeah. You might actually become profitable. But without clean books, without good data, without the ability to look and, and dig into the information- It's very unlikely you're gonna be Cecil Bullard: wrong Well, that's the other thing. That's the other thing that makes me a, a little bit crazy. We have these guys that are really great technicians. And- Lucas Underwood: Yeah ... Cecil Bullard: they're great technicians because of, they have the education, they have the hands-on experience, they have the right tools, the right equipment, and they also know how to read the data. Yeah. So, you know, I hook up the car, I get the, this from the scanner. It tr- I track down to the oxygen sensor. I know how to test the oxygen sensor. I know what good is, I know what bad is. I know how to look at a, a wave, uh, uh, form for a injector, and I know what good is and I know what bad is. Yeah. And so they, they do that in their job every day in their life because they think that's important and because it is, but they don't do the same thing in their business. Yeah. They, they literally pull stuff out of the air, or they listen to somebody like me, and they go, "Well, that guy's crazy 'cause he's saying we should be $220 an hour- Yeah. Yeah ... and there's no way we could be... We, every one of our clients- And let emotion drive it ... would run away. Um, you were, you were talking about the, um, the event that's coming up, the diesel event, Thoroughbred. Yeah. Yeah. And, uh, I was at, at Thoroughbred, uh, last year and the previous year. And so the previous year, uh, you know, I did a thing and, and talked about the numbers and all of that. And so the next year I'm there and I, I said, uh, "Is anyone here that joined up with the institute or became a client in the la- you know, from the last meeting?" Yeah. And there's a guy, uh, raised his hand a- and I said, "Okay. Um, if you don't mind me asking, and if you're willing to share, what is your labor rate, uh, when we started a year ago? When you joined the institute, what was your labor rate when you first came to this?" And he said, s- uh, he was like, "$79 an hour." Lucas Underwood: Yeah. Cecil Bullard: Right? And I was like, "Okay. And so I'm assuming that you walked away and you said, 'I'm gonna raise my labor rate.'" And he said, "Yeah." And, and I said, "Okay. If you don't mind me asking, what did you raise it to?" Right? He said, "Well, today we're at $180 an hour." Yeah. A year. Yeah. He went up over $100 an hour a year. Now he was- Didn't lose Lucas Underwood: all of his clients. Cecil Bullard: A- no. And I said, "Okay. A- and so how many clients realistically, just, just be as honest as you can, how many clients did you lose? Did you lose any?" And he went, "Yeah, we lost a few." Right? Yeah. And I said, "Okay. And, and who were they?" He said, "They were the people who would never pay us to do the work." I mean- Yep ... he lost maybe 3% of his clients. Yeah. And at, at 3%, so what? I mean- Exactly ... his labor rate- Lucas Underwood: 100%. Cecil Bullard: Think, think about, think about three guys, let's say they're only doing 70%. So- Mm-hmm ... you got three guys doing about six hours a day. You got 18 hours a day. If your labor rate goes up 100 bucks- Lucas Underwood: Yeah Cecil Bullard: that's $18,000 a day, right? Did I do that right? 1,800, uh, 1,800... It's $18,000 a day in a- uh, additional profit that because your labor rate went up 100 bucks, right? And- A- and most people, they're like, they can't even fathom that, right? They, first of all, they don't run the math. They don't figure it out. They're, they're diagnosing based on emotion, right? Yeah. Yeah. Um- 100%. I, I, uh, you know, I had a cl- if you, if you're in this industry, if you're in, in the industry, I don't care where you are, I don't care who you are today, you're gonna deal with price objections- Lucas Underwood: Yeah ... Cecil Bullard: every time. Lucas Underwood: Absolutely. Cecil Bullard: And, and, and you're gonna deal with a lot of them. Uh, you and I were kinda talking about that before we started. I mean, right now, uh, a lot of people are out of money. They don't know what's going on. The price of gas is, you know, higher than- Yeah ... it should be, blah, blah, blah, blah, blah. What's Trump doing? What's... What, what are the Democrats doing? What are the socialists doing? Um- Yeah. Credit card delinquencies- A lot of them- Lucas Underwood: are through the roof. Yeah. Car loans are through the roof. Delinquencies are through the roof. Cecil Bullard: A- and, and you're gonna deal with price objection. And the problem is, if you don't know how to deal with price objection and, and understand your value and be able to, uh, create value for your client- Yeah ... then you're not gonna win the game. 100%. And, and, and what's gonna h- the other thing that's gonna happen is you're gonna get this emotional response, and the emotional response is, "Wow, I have these people that are beating me up on price. And number one, I, it's uncomfortable for me, and I don't wanna be uncomfortable, so what do I do?" Lucas Underwood: Yeah. Cecil Bullard: "Well, let's lower our price." Yeah. I've shopped in, um, Tennessee- And, uh, the owner was like, "Yeah, we're really struggling right now," blah, blah, blah. Uh, I lowered the price on a, a, uh, several of our jobs, and I'm... I, I just wanna, like, you know... Yeah. Um, and, and what happened was his marketing was bringing the wrong customers in. Yep. It wasn't that- Reaching Lucas Underwood: the wrong people ... Cecil Bullard: we changed the marketing companies, we changed marketing strategies, and all of a sudden the shop is full and people are paying a full price. They're not discounted, right? Lucas Underwood: Yeah. Here, here's the thing is, is you're right, because it is all emotion. And, and- Yes for so long it's been driven by emotion, it's not been driven by data. And one of the things that we fall victim to, and, and I'm gonna tell you one of the greatest David rants of all time, and I was there to witness the telephone call. Because David, say what you want about the guy, he's extraordinarily intelligent, right? Absolutely. And I'm not saying that because he's my best friend. I love David. I'm saying that... Yeah. Yeah. If you really could get David to show you how smart David actually is, it would amaze the people who have negative things to say about him. Yeah. The man is genius level. I would say he's in the top 3% of- He just Cecil Bullard: gets frustrated. Lucas Underwood: Yeah. Cecil Bullard: He... And by the way, if you're really smart, you get frustrated- Yeah ... easier. Lucas Underwood: Exactly, because everything looks easy to you. You're just like- Yeah ... "Why are you this stupid?" Um, and- And then- That's why Cecil Bullard: we're friends, right? And then if you don't learn how to con- It works ... if you don't learn how to control that, it gets you in trouble. So. But, Lucas Underwood: but here's the thing is we, we were riding down the road one day, and this lady is, is fussing about his price. And he said, "I'm sorry, can you help me understand something?" And she said, "What are you talking about?" He said, "Are you an expert in automotive repair?" And she said, "No, I, I, I just own a car." And he said, "Okay, are you an expert in automotive parts?" And she said, "No, I, I, I'm not." And he said, "Okay, are you an expert in automotive diagnostics and testing?" And she said, "No, I'm not." I said, "Do you..." Or she said, "Do I... You know, what, what are you getting at here?" And he said, "I'm asking because I do this for a living. Every single day I make estimates to properly repair automobiles. I, I make sure that I get the torque-to-yield fasteners on. I make sure that I get all the gaskets on. I make sure that I have the part pricing proper so I can stand behind the repair after I'm done." Cecil Bullard: And qu- and a quality part is Lucas Underwood: not a- And a quality part. It's a, I am- And I, I am, I am a professional- Yeah ... at estimating your job. You are not. And I'm not trying to be disrespectful, but I don't need you sitting here telling me what the price should be unless you're an expert in pricing it. Now, if you want a different quality product, go somewhere else." Cecil Bullard: Yeah, 'cause that's not what I do, right? Lucas Underwood: And she stopped and she said, "What do you mean?" He said, "You can, you can go down the street and you can have somebody do this job with poor quality parts, not using the torque-to-yield fasteners, not torquing things to spec, lowering the time using a, a poor quality technician, and you can do that if you want. If you wanna take that risk, that's your business, but you're getting what you pay for." Cecil Bullard: Yeah. Lucas Underwood: And the lady said Just do the work. Cecil Bullard: Oh my. Lucas Underwood: And so- Right. Yeah ... it, it was so interesting because it's a completely different mentality than most shops take. Because the consumer comes to them and says, "I can't believe you're gonna charge that. That seems really expensive." It is really expensive because it's expensive- Yeah ... to fix a modern automobile. Yeah, I mean- But instead what do we do? We quiver, we shake inside, we get upset, our little hearts beat fast and we're like, "Oh, God, what do we do?" Cecil Bullard: So- And- ... I bou- I bought my first truck, um, uh, 40 years ago. And, uh, shortly after I bought, I bought a Toyota truck, and it was, it was kinda basic. It didn't have a lot of- Yeah ... crap in it. And that truck was, I think, uh, like eight grand or something. Seven, eight grand. It was not much. Yeah. And, and like, uh, two months later my wife was pregnant with our first and so I had to get rid of the truck and get something- Yeah that we had back seats in. But, but- Lucas Underwood: Yeah, they didn't like it- Cecil Bullard: I Lucas Underwood: bought a- ... back then when you put them in the back- Cecil Bullard: Right ... in Lucas Underwood: the snow. Cecil Bullard: I, yeah. In Lucas Underwood: Utah. Cecil Bullard: I, yeah. I bou- I bought a, a new truck, uh, about a year and a half ago. It was $82,000. Right? I mean, that comparison, I, I bought my first house. My dad's house was 13,000, my first house was 100,000. Uh, I think, you know, we're paying somewhere between six and 800,000 for houses out here today. Lucas Underwood: Yeah. Cecil Bullard: And, and you know, everything, what, what kills me is kinda this, you know, I, I don't know, I went to, um, uh, Jack in the Box, uh, this morning and got a couple of, uh, croissants, one for me and- Yeah ... and one for Kent. And, and it was 15 bucks. Yeah. And I was like, "Those used to be two bucks a piece." That was the- Exactly ... you know, two years ago it was $4. Lucas Underwood: Yeah. Cecil Bullard: And, a- and you know what I did? I gave them my credit card and I paid for it, right? Lucas Underwood: Exactly. Didn't say a word. Didn't Cecil Bullard: fuss. Didn't- And I didn't say a thing. And- Yeah ... I had to fill up the truck on the way home the other day. It was $4 and, whatever, 38 cents a gallon. Yeah. It was $4.38 a gallon. I got a 32 gallon tank. I mean, it was almost $80 to fill up the truck. And, and you know what I did? Filled up the tank. I ran my card through the machine and paid it and walked away. Yeah. I went to the grocery store, right? And, and eggs were, I don't know, whatever eggs are. Milk was whatever milk was. I spent $400 on, I don't know, a third of a basket of food. Lucas Underwood: Yeah. Cecil Bullard: And, and you know what I did? I paid it and walked out and, and I didn't think about it because that's the way it is. Lucas Underwood: You know, my first business coach taught me a very valuable lesson. He said, um, he said, "You're selling from your wallet." Cecil Bullard: Yeah. Lucas Underwood: And I said, "What do you mean?" He said, "You're selling from your wallet. Everything's from your perspective. And because you're broke, because you're not charging what you need to charge, everything feels expensive. So when you're pricing it, it does feel expensive." And so later on we had this discussion, we're talking about discounts. Because- Yeah ... it, now listen, I, I don't mean to, like, get y'all enraged here. I know it's going to. But here's the thing is like when we talk about this, all these shop owners come up and they say, "No, no, no, my labor rate's $200 an hour. My, my part margin's 60%." Cecil Bullard: Oh, but then they- Lucas Underwood: Why do you have $150,000- Well, they give it away on the other side in discounts? Yeah. Yeah. Right? And, and so he- Cecil Bullard: I see the financials. I'm like, I'm like, "You made t- $2,000 last month, but you had $12,000 in discounts." Lucas Underwood: Right. Exactly. Cecil Bullard: Help, help me understand that, right? Lucas Underwood: And so he- Cecil Bullard: How... Yeah. Lucas Underwood: Well, my, my first coach said to me, he said, um, "I've, I've got a, I've got a rule that you're gonna implement in your shop." And he said, "This is just a set rule. This is what it is." And I said, "What?" He said, "If you feel like giving a damn discount," he said- Yes, absolutely ... "I want you to keep some money in your wallet- Yeah. Cecil Bullard: Big Lucas Underwood: time ... and I want you to go up here and pull that money out of your wallet." I said, "Well, I ain't got no money." He said, "That's my point. You don't have any Cecil Bullard: damn money." And you, and you, and by the way, you never will if you, if you don't stay ahead on the straight. Lucas Underwood: Keep doing what you're doing. Cecil Bullard: Right. Lucas Underwood: And, and- You have to- But see- ... stay ahead on the straight ... we don't think about that, Cecil. We're so- Yeah ... disconnected because we're focused on fixing the car. And, and it, I believe it's a mindset, okay? Because we're back there in the bays and we're turning the wrenches, and in our mind, the, the desired outcome is that car gets fixed. And so we begin to change whatever it takes to get the car fixed. Well, I could lower the quality of the part. I could, I could reduce my labor rate a little bit. I could give them a discount here. Maybe I don't use that part there. Cecil Bullard: No, Lucas Underwood: it's to get the- Because we're technicians, we're- Cecil Bullard: It's not to get the car fixed. And, and I, I understand what you're saying. Lucas Underwood: Yeah. Cecil Bullard: But it's to get the car in, right? I believe that in order to get that car in, I need to bring my price down. I need to be, quote-unquote, price competitive. Except- Tell me what price competitive is. I have shops- Lucas Underwood: Yeah ... Cecil Bullard: I probably have, um, in some areas I have three or four shops that we work with, and the price variance between those shops that are in, within 30 miles of each other can be as much as $60 or $80 an hour. Lucas Underwood: Yeah. Cecil Bullard: And by the way, the shops that are most successful are not the cheaper shops. Yeah. They're the higher price shops. Lucas Underwood: Yep. Cecil Bullard: Because I think the consumer, there's this thing about price. So I'm, I'm in Edmonton doing a, a gig, and there's a Mercedes shop up there, and this is, I don't know, six, eight years ago, pre-COVID. And, uh, the, the lady that ran the Mercedes shop, she was like, "We can't... Nobody is booking, you know, the phone rings, but nobody wants to come into the shop." And they're a Mercedes shop. And I looked at the shop and it was, you know, it was, it was okay. It wasn't, like, filthy, it wasn't terrible, yada, yada. And, and you know, I called the shop, and it wasn't a bad con- It wasn't a great conversation. It wasn't a bad conversation. And I asked her, I said, "Well, what's your labor rate?" Now, by the way, at the time, say eight years ago, my shops up in Edmonton were between 130 and 160. All right? Lucas Underwood: Mm-hmm. Cecil Bullard: And she was 75 bucks an hour. Yeah. And I said, "Okay, if you own a Mercedes, right, and you're not the fourth owner, you know, the guy that- Yeah the, it's the hand-me-down Mercedes that I got that's not fixed, that's t- you know, falling apart- Yeah ... I have no money. If you're the second owner of the Mercedes or the first owner of the Mercedes, and somebody says, "Well, you know, my price is half of what everybody else's is," what's the first thing that comes into your mind? You know, if you, if you saw, I don't know, if you saw, uh, let's say, uh, tamales, right? You got, uh, tamales. You go in the grocery store, and there's two kinds of tamales. Yeah. They, they kind of look the same, but not exactly the same. And one of them for six tamales is 12 bucks, and the other one is three. Which one are you buying? Lucas Underwood: I Cecil Bullard: know, I'm telling you. I'm not buying the, I'm not buying the $3 tamales. That's a, that's a chance that number one, I'm not gonna like them, and number two, it could make me sick, blah, blah, blah. Might have Lucas Underwood: that listeria added in there. I'm, Cecil Bullard: yeah, I'm buying the $12 tamales. It- Between the ch- I- if I'm thinking about price, right? At all. Lucas Underwood: For sure. I, we, we had those cabins, right, where the shop's at, there used to be nine cabins here. Yeah. And for years they were $100 a night, and they were log cabins. Actual log cabins with a kitchen, with a sleeper sofa, and a living room, and a dining room, had a shower and a, a bathroom. Some of them had hot tubs, had a, a bedroom. And the, the occupancy rate stayed in the 40% range, and my parents were, were content with that. It was paying the bills. It wasn't that big of a deal. They're making Cecil Bullard: enough money to pay the overhead. Lucas Underwood: Yeah. My brother came in and decided he was gonna raise the prices, started charging $225 a night, and our occupancy jumped to 80%. Yeah. Nothing else changed. No marketing, no nothing else changed. And people started coming in saying, "I thought there was something wrong with them. I thought they were gross or nasty or something." ' Cecil Bullard: Cause they were, 'cause they were so cheap. Lucas Underwood: Because they were so cheap. Yeah. Yeah. And, and we don't think about that perspective. And I, I'm telling you, I buy things on Amazon, and I'll see two exact comparisons side by side. Like, I'm not gonna get the cheap one 'cause there's a reason it's cheaper, right? Cecil Bullard: Yeah, when I see the cheap, my, my thoughts are, uh, I just bought, uh, uh, some stuff yesterday and I saw the cheap stuff, and I was like, "I, I don't wanna buy that. It's too risky for me." Lucas Underwood: Yeah. Cecil Bullard: Right? It, it might not be... It might be some Chinese whatever, because I don't know. I mean, it looks like the product, but it's, it, it probably isn't. At that price, it can't be, right? Lucas Underwood: How... Uh, so look, here's the thing, because we, we're talking about confidence, right? And, and at the root, we, we know that the pricing has to go up in this industry. We know that- Yes ... beyond a shadow of a doubt. Yeah. There, there's no if, ands, or buts about it. Nope. And because we, we need to be paying our guys more. I don't think anybody debates that. And if you do debate that- Man, come on now. Second of all- Cecil Bullard: If you're, if, if you're not making 15% net profit minimum- Yep ... on your business, and your business isn't designed to make 20% net, then- Oh you're gonna end up with Ford and struggle. Lucas Underwood: Exactly. Absolutely. Cecil Bullard: Go ahead. Sorry. Lucas Underwood: And, and so here's the thing is, is the confidence piece of this. Because we know that the price needs to go up. We don't have to debate that the price needs to go up. How do we get shop owners to the point they're confident in sharing that price? And I, I think there's a, a, a myriad of things, and I, I think that a lot of small business owners tend to be people pleasers, and that's something that I am learning myself to overcome. And, and I'm trying to work on this concept that if you're not happy, I have to be unhappy, too. And I'm growing and developing in that, but I've, I've realized, like, hey, I can't let that person's emotion dictate my emotion. And so when they- What do you think- Go ahead. Cecil Bullard: What do you think the future of automotive repair... Who do you think are gonna be the existing successful shops, say, 10 years from now, right? Lucas Underwood: Well, I know we're gonna have venture capital and private equity with a bunch of big chain shops bought up. Yeah. Yeah. And then there's gonna be a handful of small independents left that, that could overcome the financial challenges associated with small business ownership and automotive repair in the, uh, in the 2030s. Cecil Bullard: It's all about... It will, it will all, it will all be about a couple of things. First of all- Lucas Underwood: Yeah ... Cecil Bullard: it's not about fixing the car. Lucas Underwood: Yeah. Cecil Bullard: You have to fix the car, okay? That, that's a given. That's the base level Lucas Underwood: expectation. Cecil Bullard: That's a, that's a base level. That's not Lucas Underwood: like a... Cecil Bullard: Yeah. Somebody shows up to your shop with their keys and says, "Here you go," they expect you to fix the car, okay? Yeah. It is going to be the, uh, the additional items, the way the customer feels about your service, the way the customer feels about your pricing, the way the customer feels about how you paid attention to them, did you listen to them- Yeah you know, all of those things. And, and by the way, the average person, in fact, I'd tell you 80, 85% of the people will buy the more expensive product if they feel good about the interaction and they feel good about the product. They will always do that. We got a couple questions coming in, so I think- Lucas Underwood: Yeah, I, there's some really good ones in here. Yeah. I've, I've got one, I'm passionate about this one. It says, "How much money should a shop have set aside?" I'm gonna tell you something. The best advice that I was given by anybody before building this new shop was maximize the shop that you have now. Cecil Bullard: Yeah. Lucas Underwood: Don't just decide to move. Don't just think that, and run the numbers and figure out what your max capacity is. And I'm gonna tell you, if I learned anything, I wish I had set on that bad boy for as long as I could, just letting it make money and stacking cash. I would get every single dime of money I can in the bank account, because here's what so many people don't realize about expanding They think when they have that small shop, that when they expand, all of a sudden they're gonna have all this demand and they're gonna be able- Yeah to fill up that new big shop. If you, if you build it, they will Cecil Bullard: come. Lucas Underwood: It does not work that way. Yeah. Right? That doesn't work that way, I promise. Cecil Bullard: Well, yeah, three bays, three bays, low roof, uh- Yeah ... no racks, uh- Exactly ... to, uh, what, 12 bays, uh- Yep ... you know, super high roof. Lot of space. You can get anything you want in, and all of a sudden you think, "Why isn't my shop full?" Lucas Underwood: Yeah. Cecil Bullard: Well, wait a minute, you didn't Lucas Underwood: do all the work. Well, uh, we're making more Cecil Bullard: revenue. Yeah, yeah. Lucas Underwood: That was just the limit of the capacity that we had at the given time. Cecil Bullard: Yeah. Lucas Underwood: And so, I, I Cecil Bullard: would- And so maximize it. Exactly, man. So I have a client... Lucas Underwood: Maximize what you got and stack the cash. Cecil Bullard: So that particular question, I think, I think the answer is ve- it varies. Yeah. First of all, every shop, every shop owner should have a minimum of three months worth of operating capital in a savings account, period. Lucas Underwood: Yeah. Cecil Bullard: Right? That's before I even think about buying another shop. So- Yeah ... uh, I have a client, uh, we're buying shop number three. Mm-hmm. Um, he's been a client now, I would say probably since 2021. Um, when he started with us, he was making three, four grand a month. Uh, we currently have two shops, we made $87,000 in profit last month. Now, he's got half a million dollars in the bank. His machine is generating between, say, 70 and 90,000 every month. Yeah. The machine that he has built. And, uh, and that's, and that's pure profit, right? It's not, "Oh, I'm gonna have to do this with that or that with it." And then it depends on the deal, because he's gonna buy a piece of property for, uh, a million dollars that comes with a shop on it that just hasn't been operating for a bit. So he's got some- Yeah ... expense for marketing, building it up, tools and equipment, et cetera, that if you bought an operational shop, you wouldn't have. And this is not an owner finance carry. Yeah. So if I'm, if I'm, if I'm gonna do owner financing and the owner's gonna carry it, I might need less cash, right? Yeah. Or if I have to buy more equipment, I might need more cash. Or if- Yeah ... if I have to go through and remodel the shop, I, I mean, I don't think anybody that I've dealt with when they bought their next shop didn't spend at least $40,000 in the move. Lucas Underwood: Yeah. Cecil Bullard: Right? Lucas Underwood: And, and at this point, I think 40,000's an undershoot because- Oh, it's way, it's way low ... things have gotten so expensive. I mean- Cecil Bullard: Yeah, you could... I need, my signage is 40 grand, right? Yeah. I mean, if I'm gonna- Yeah, for sure ... put signage on the building. And- Lucas Underwood: And- Cecil Bullard: And, yeah Lucas Underwood: Uh, here, here's the deal about this, is that, that you think, "I'm gonna go buy a shop," or, "I'm gonna go build a shop," and you get these numbers in your head. I promise you, because everybody told me, you can double it. Just double it. Just- Yeah ... right off the number, whatever it is, double that number. And so they told me- And the timeframe ... $2 million, that's what it's gonna be. Yeah. And I didn't believe them. Cecil Bullard: And Lucas Underwood: the timeframe- Cecil Bullard: And so... Exactly. So by the way, not six months, a year. Lucas Underwood: Oh, yeah. Double the money, double the timeframe- Cecil Bullard: Yeah ... Lucas Underwood: and, and then get comfortable with those numbers or even higher numbers than that. Target the lower numbers, sure, but be expecting for it to be way more expensive than you think it's gonna be and take way longer than you think it's gonna take, and be way more uncomfortable, create way more stress. And, and let me tell you something. If you think it's not gonna impact the shop you have now- Yeah ... when you're in the middle of that- Yeah ... you're gonna find out if you grew a team or not. Cecil Bullard: Well, the other thing, I- Lucas Underwood: Because you're gonna be focused on something else. Cecil Bullard: So the other piece of that is if I have a really great team and I have really good systems and processes, I need less money to open the other shop- Yeah because I don't need... Like, the shop I have, if it runs really well, if it runs, uh... You know, if it's very consistent, et cetera, and it's done that for, I don't know, six months, a year, year and a half- Yeah ... and I have a great team there, uh, um, then I need less money to open up the next shop because I'm, I'm, I'm comfortable. I'm putting money- Yeah ... in the bank routinely, et cetera. There was another part of the question, uh, best marketing strategy in a small town. I, I'll tell you the best marketing strategy, period. Do an unbelievable job- Yeah ... for your client. And, and- Treat people well ... and the other thing is, you know, learn how to answer the phone correctly, and learn how to build value from the start. You know, when people- Yeah ... called me and they said, "Hey, Cecil, um, you know, how much for a water pump on a whatever?" I'd say, "You know- Yeah ... I know price is important to you, but before we have that conversation, can I tell you about, you know, Larry's and, and why we do what we do here?" And I never had somebody say, "No, just give me a damn price." Um, I... Then I was able to say, "Look, we... This is our philosophy of taking care of cars. We, we believe that our customers can drive these cars for 10, 15, 20 years and take care of them, and if they do, it's gonna cost them a lot less over the, the lifetime of the- Yeah ... of the vehicle. So every time you come in here, we're gonna inspect the car. We're gonna do a- Yeah ... complete inspection, and every time you come in, someone like me is gonna sit down with you and have a conversation about what you need and, and, and why you need it- I'm gonna be- ... and be able to tell you exactly what it costs- Yeah ... so you can make a, an intelligent decision. For sure. And if that's good, if that sounds good to you, then I have an appointment on Tuesday or Wednesday. And- I think if you create a product that's different than everyone else's product, that's better, that's superior, that you get that, right? The, the, the person, uh, uh, uh, that the, the, the 80% of the population that's gonna value that is gonna value it. The 20%'s always gonna look for the cheapest price. And- Absolutely ... and by the way, they're not my, they're not my, they're not my clients. Lucas Underwood: Exactly. So- Exactly. And, and that's what they're gonna be going after no matter what. You're not gonna please them. And even if you made 50 cents on it, they're gonna be fussing about that. Yeah. Right? And so it, it doesn't work. Now I, I wanna jump into this next question and, and Steve from Wassbalden Motive, Steve, I really hope that we see you at ASTA. Uh, you're in Durham, it's in hometown, so we'd love to see you there. I'm, I'm gonna post a link down here in the comments, and I, I hope that you, uh, see that, Steve. Because I, I think it's important. Because he's asking the question is how do I get my legacy staff to buy in? And I think this is touching- Shoot them Cecil Bullard: all. Shoot Lucas Underwood: them all. There you go. Um- Shoot them Cecil Bullard: all. I, Lucas Underwood: I think it- No, Cecil Bullard: um- ... Lucas Underwood: starts for me with vision. Yeah. And it starts w- with destination. It starts with what we're trying to accomplish, what do we believe, where are we trying to go? Cecil Bullard: What if we really sat down and had a conversation with our staff that said, "Who are we and what do we wanna be?" Yep. "And what's the image that we wanna portray to our clients," right? Lucas Underwood: Exactly. Cecil Bullard: And, and we built that with our staff because, like, I took over a shop, I went in and, you know, within a week I sat everybody down, I said, "Okay, what kind of shop do you wanna work for?" Right? "What do you wanna be? You wanna be a discount shop, you wanna be a tire shop, you wanna be a transmission shop? Do you wanna be, like, a, a top shop in the industry? Do you want the community to look at you as a top shop, or do you care?" Right? And, and everybody in my shop said, "We wanna be a top shop." Yeah. And by the way... So then we started talking about, well, what does a top shop look like? What does it feel like? How, how do they answer the phone? How do they... What's their comeback rate? What's their, you know, what's, what do they charge? Are they on the lower end, are they on the higher end? Yeah. So you, you have to get your team on your side. You have to get your team behind. Like, if I can't value my own pricing- Lucas Underwood: Yeah ... Cecil Bullard: how can I expect my team to value my pricing, right? For Lucas Underwood: sure. 100%. Cecil Bullard: I have to be... My, my dad, and I've said this in a lot of classes and a lot of people, my dad always said I had an over, uh, developed sense of my own self-worth. Yeah. All right? But when I was a, a tech working on cars, I always thought, "Man, we are so cheap." And I've always thought that through the whole thing. Yeah. Even as a coach, I'm like, "Man, there are coaching companies that are a lot more expensive than us. Why are we so cheap?" Um, I'm always thinking that, right? Yeah. And, and what that did at the service counter for we was when we were $158 and everybody else was 100- It made me confident because I thought we should be charging 300, right? Yeah. But- It's, it's kind of the same thing as having that cash in your pocket. Lucas Underwood: Yeah. Cecil Bullard: But when I have cash- Yeah ... in my pocket, I think differently, right? Lucas Underwood: He- here's the thing, i- is for me, right? When we're talking about this staff and we're making this transition, we've never charged any more, especially somebody buying a shop, and they know the fundamentals of shop ownership. They know about financials. They're buying a shop that was from somebody who did not know, and they did not charge appropriately. They didn't have a lot of overhead. Now this person's buying the shop, so they've got payments, they've got all this stuff going into it, and they're trying to retain the legacy staff. And I get how hard that can be, but you can't have a staff member that is the equivalent of the bottom 20% of the clients that cause all the problems. If they believe- Yeah ... that no matter what, you shouldn't be making any more money than you have to make, and no matter what, they know how much you paid for those parts, and you shouldn't be marking those up that much. If that's their mindset, if they have a- Yeah, when- And, and I'm... Look, I mean no disrespect by what I'm getting ready to say. If you have a poor person mindset, you're not gonna fit into that organization well. Not a- If you don't believe people should have money- Cecil Bullard: Not a company, not a company that wants to be exceptional. So the other- Yeah ... thing would be, and, and this is not to tout, say, the institute, but well-trained people. We have a service advisor intensive coming up. You know, it's a- Yeah ... three-day service advisor, and, and after many days with some of the top service advisor trainers, sales trainers, what do we- Yeah ... really came up with? We need confidence. How do we build- Yeah ... confidence in the service advisor- Exactly ... in the product, in the price, in the things we do? Lucas Underwood: Yeah. Cecil Bullard: And, uh, you know, we have a, a big marketing event coming up. We have, uh, the MARS event, which is Marketing for Auto Repair Shops, coming up in October. And, and if you wanna have a great marketing strategy and you wanna learn what you need to do today and what the shops that are winning today- Yeah are doing, that's the place to be. Lucas Underwood: Yeah. Cecil Bullard: So I g- I, I have to, I have to a little bit, you know, sell the, the company and what we do, so. Lucas Underwood: Yeah. Cecil Bullard: Um, Lucas Underwood: uh- Cecil Bullard: Uh, this question comes from Steve ... how do we... A- and the other- Go ahead. Go ahead ... one, one more thing on that, on that legacy stuff If I can't bring them ahead, if I can't get them to think correctly, if I can't get them on the page, you can't have, you know, two people that think that you're too expensive- Yeah and that you can't, you can't make a profit or you shouldn't make a profit, and, you know, five people that wanna be profitable and wanna go. You can't have- Yeah ... slugs with, with, uh, super performers. You just- Yeah, you can't Lucas Underwood: have slugs- You can't do it ... with the racehorses. Cecil Bullard: Yeah. It's not gonna work out. You, you, it won't work. Right? You, you're exactly right. The racehorses will run a lot slower and be upset. Lucas Underwood: And, and look- Cecil Bullard: So- ... Lucas Underwood: I'm, I'm gonna tell you something. I used to be so afraid of letting people go, and, and I made a video this week talking about this as, hey, I get that there's a shortage of... And, and I'm gonna tell you right now, this is gonna upset some people, we don't have a technician shortage, we have a skilled and willing worker shortage across all trades, across all professions. There's a shortage of people who want to actually work. And so I get the fear associated with letting someone go, but that person will become toxic and cancerous inside your business if you keep them. They will start telling people you're too expensive if you keep them. Cecil Bullard: Yeah, even your clients, by the way. Lucas Underwood: Yeah, that's what Cecil Bullard: I'm saying. Will start making excuses for you with your clients. Yeah. Exactly. "Well, got this new, got this new owner. I don't know. He raised the price, and you know, I..." Lucas Underwood: Yep, because it's gotta be somebody's fault besides theirs. Cecil Bullard: But here- Yeah ... but here, let me help you out. I'll give you a discount. That's Lucas Underwood: it. Right? Cecil Bullard: We, I had a, I had a shop- Yeah ... out of, out of Arizona. Um, uh, we, we went in, and they were not profitable. They lost, I don't know, he, he did 2 million, they lost, like, 200 grand. Yeah. And so I said, "Next year, what do you wanna do?" He said, "I wanna do 3 million." I says, "So you wanna lose 300 grand?" Right. You go, "Wait a minute." And, and I said, "Why don't we do a million and a half, make 20% net?" Yeah. And, and we went in and we looked at their coolant flush and their brake flush, and at the time they were, like, $39. Lucas Underwood: They were charging- Cecil Bullard: Yeah ... $39. Now, by the way, this is 10 years ago, but everybody else was charging 100. Yeah. And so we instantly, we went to 79, right? These coolant flushes and brake flushes gotta go to 79. And his two sons are at the counter, and a month later we're looking at the numbers, no margin changes, no nothing. So we start pulling work orders, and what they were doing was discounting the $79 down to 39. Yeah. Right? Lucas Underwood: Yep. Cecil Bullard: People have to understand that, that first of all, we're not the, we're not Billy Bob's Auto down the street. And so I don't know what's going on at Billy Bob's. I do know what's going on at Cecil's, right? That's, that's what we're gonna do. And- Yeah ... this is who we wanna be, and if we wanna be that, this is what we need to look at, this is what we need to look like, this is what we need the education in, this, these are the things we need. And in order to get those things, we have to be able to afford them, so we have to charge X price, whatever X price is. Okay. And I'm not trying to set a price, but I can tell you right now by math, at, in 1980, we were $70 an hour in our shop. Okay? Yeah. And we were one of the higher priced shops in town at that time, because I'd been through a bunch of training. If I had started at $70 an hour in 1980, and I raised my price 3% to today, we'd be like 286 an hour. Right. Yeah. And, and we're not. I mean, I think the last survey I saw, which was one of the TechMetrix surveys, and it was like 150-something, 152 or Lucas Underwood: something. Yeah, that's what I saw as well. Cecil Bullard: Yeah, and- Lucas Underwood: That's what I saw as well Cecil Bullard: We're, we're not gonna survive at 152, nor would we be able to- Yeah, Lucas Underwood: and, and none of the other industries have lagged like we did Cecil Bullard: get the Lucas Underwood: cars fixed Cecil Bullard: and deliver the rest. No. Lucas Underwood: None of the other industries have lagged like we did. Now, here's a really interesting question by Steve, and I, I wanna answer this kind of from the technical aspect first. Okay. Because he says, "Manufacturers are making it increasingly difficult for anyone outside their dealer network to service their vehicles. As independent shops invest more in the tools, technology, and expertise required to keep up, how do they confidently price that capability and convince customers they aren't sacrificing quality by choosing an independent shop?" Now, a couple things. The first thing is, and, and I loved your explanation of this, all you have to do is go to a dealer one time and you realize the experience isn't so great. And so maybe this- I, I wanna... I, Cecil Bullard: I need to clarify something here. The dealer expenses I have, experiences I have had, have mostly been terrible, okay? Yeah. Lucas Underwood: Yeah. Cecil Bullard: I have had a couple of decent dealer experiences. Lucas Underwood: Yeah, for Cecil Bullard: sure. Just not very often, and, and, and few and far between. Yeah. And so I'm not saying all dealers suck, but the dealers I've dealt with suck. Lucas Underwood: Yeah, for sure. Right? And, and maybe this is a good one for Steve, too. Yeah. Is, like, Steve, go, go take your team, give them the money to go somewhere else and get their oil changed at a dealership and let 'em see what the experience is like, and they'll come back and they'll say, "We're amazing." Cecil Bullard: And I think you should do- And they will go to a, once a year you should go to a Quick Lube. Lucas Underwood: Yeah, exactly. Cecil Bullard: And get the Quick Lube experience, and see- So- ... how they do what they do, right? Lucas Underwood: Yeah, absolutely. So, you know, here, here's the first thing that I wanna say to Steve, is I personally believe, based on my relationship with a number of manufacturer guys, I personally believe... And there's, there's some folks in C-suites and manufacturers who have a very different outlook on this. But the engineering teams and the people, the boots on the ground, who are getting us tooling, who are getting us access to the information we need, genuinely want us to be able to work on their automobiles. There's a couple that don't. There's a couple manufacturers who are trying to lock things out. The large majority of the auto manufacturers are trying to provide us access in a meaningful yet secure way. And so the reality of that is it is more expensive. But here's the deal, is the car itself got more expensive to fix? The difference be- I don't think- Go ahead. Cecil Bullard: I, I don't think that it's more expensive than what they would be doing at the dealership. Well- And if you look at the survey data and the customer data, currently the consumer believes that the independent shop is a much better place for them to be. Lucas Underwood: Absolutely. All right? All right. But, but here's the thing. Here, here's where I was going with that, though. Right. Is the difference being the, the automobile got much more expensive to fix because the technology increased tenfold. I was in a meeting, and Mary Barra was there, and it was like 10 years ago, and she said, uh, the technology in the vehicle in the next two years, I think she said, will outpace what we've seen in the past 100 years. Oh, yeah. And then we saw her again at another event, and they said in six months we'd already outpaced that. Like, it happened before we realized it had even happened. Cecil Bullard: And- And we're gonna have self-driving cars on the road. I mean, and we have them now- It- ... but we don't, we don't have a mass. The problem- Fully autonomous, Lucas Underwood: yeah. Cecil Bullard: The problem that they're dealing with is data transfer, so they can't get the, the links good enough. So as the links improve, as the- Well- ... you know, StarNet and all that improves, that will happen better and faster. But it, it... There's gonna come a point in time in the future where we're gonna have a bunch of self-driving cars on the road. For sure. And that technology is not today's technology. That's not what I worked on five years ago. Lucas Underwood: Yeah. Cecil Bullard: Oh, yeah. You know, the- Lucas Underwood: Absolutely. And Cecil Bullard: the technology- Everything has Lucas Underwood: changed so dramatically ... the technology we're seeing in automobile right now has advanced- Yes ... so much in just the past few years, it's unbelievable. And, and here's, here's kinda what I'm getting at, though. Is that the automotive aftermarket, the independent shops have withheld increasing their pricing like they should, while the technology outpaced them. And that technology outpaced a lot of technicians too. And so we, we weren't investing in training of our people, we weren't investing in the tooling for our people, we weren't doing what it took as an industry to keep up. Now, there's a lot of really great shops that have done a fantastic job. You think of Seth Thorsen's shops, you think of, uh, Matt up there in Minnesota. Yeah. You think of these shops that have really put the work in to learn this technology, grow. Brandon Steckler, great educators out here teaching these guys how to take this next technology. And, and somebody commented the other day, and they said, "Lucas, it's voltage drop, it's all the same stuff," right, but it's theory and operation of these systems, understanding how it works, understanding Cecil Bullard: how the networks- It's also, yeah, how, how does the computer talk to itself? How, how, how do the networks talk to each other- It- and how does that data transfer and, a- and that. It, it's, it's changed dramatically in the last five years. Just dramatically. And Lucas Underwood: so, so here's the thing, though, is like as an aftermarket, we just didn't see the value ourselves. The consumer- I- ... sees the value. Cecil Bullard: I also think- Lucas Underwood: If they want their car fixed, they see- Yeah the value. Cecil Bullard: I, I also think that there are, are shop owners that believe that they can just do brake jobs or- Yeah ... I can still do suspension work, and so I'm gonna do that. Yeah. The problem is, is that- You're right up Lucas Underwood: to- ... Cecil Bullard: all of that's getting- ... Lucas Underwood: putting those piston calipers back in. Cecil Bullard: It's all getting... Yeah, it's all getting tied into the computer systems. Yeah. All, everything is being monitored now, and adjusted and changed as the, as the... And it's gonna get worse and worse and worse. Yeah. And I, by worse, I mean there's gonna be more and more opportunity for the peoples that understand the technology. And you said something that I think I gotta, I gotta make a statement about. So the manufacturers of the equipment are gonna continue to wanna sell us equipment. Mm-hmm. Okay? Yeah. So they want us, uh, uh, to do that. We currently work on, I don't know what it was, 78, 79% of the industry. Mm-hmm. So the independents do almost 80% of the work. Um, the dealerships tomorrow, if, if, if there was a law passed that dealerships had to do all the work or even half the work- Lucas Underwood: They couldn't take the- Cecil Bullard: They couldn't do it. Yeah. They're already, some of them are already scheduled out 8 weeks, 10 weeks, 12 weeks. Yeah. Because they also can't get good technicians in their shops, and- Yeah ... they have shops with 42 bays, right? Lucas Underwood: Yeah. Cecil Bullard: And, and, and so I don't fear for us as an industry because of that. I look at, at things like, you know, we just went to STX. What did that cost? Lucas Underwood: Oh, Cecil Bullard: yeah. And if, and if Worldpac decides not to support that because they lost, you know, $2 million putting on STX, now where are we gonna get that training that we need? Yeah. You know, uh, ASTA, the big e- uh, the big event coming up at ASTA, and, and I know that it'll be a great event, but that event should be five times the size it is- Yeah because of the training that's needed. And i- if we don't support that additional training and those equipment manufacturers, they're gonna stop supporting us. Yeah. That's the thing I worry about the most. It, it- That's the thing that keeps me up at night. Lucas Underwood: It's so interesting because I'm, I'm in other industries too, and I go to their trade shows. And, and there's one particular trade show, attendance starts at $1,500 a person- Yeah ... and they put approximately 400,000 people in a convention center, right? Cecil Bullard: Yeah. Lucas Underwood: And you think, at $1,500 a person, and- Cecil Bullard: That's not one of our trade shows in the automotive industry- No ... is it? No, okay. Lucas Underwood: No. Cecil Bullard: Just checking. Lucas Underwood: It's, Cecil Bullard: it's, Lucas Underwood: it is a big trade show. Cecil Bullard: Yeah. Lucas Underwood: And it's for the amusement industry. Yeah. And, and there's people here, and they're learning, and they're developing, and they're growing, and they're... Right? Lots of opportunities, yet we aren't there, yet we have a bigger footprint. We have a bigger presence. Definitely. Why are we not there? And, and I'm gonna tell you something, Steve. You're talking about these dealerships. There, there had long been a belief that the dealerships were the authority in fixing that brand's automobile, and I'm gonna tell you something. They screwed that Cecil Bullard: though. They Lucas Underwood: screwed it. That's gone. Yeah. Cecil Bullard: Yeah, Lucas Underwood: they screwed it. That's gone. They, nobody believes that. Cecil Bullard: When they- Yeah ... when they decided to try to be competitive with the industry. Lucas Underwood: Yeah. Cecil Bullard: So when they, when they, uh, decided not to have all A-Techs... Uh, 25 years ago, if you came in the program, you were gonna be an A-Tech. Yeah. There was no, "We're gonna have 10 C-Techs and one A-Tech." Uh- Yeah ... they couldn't make money because their expenses are so much higher than ours in general, and so they decided, "We need to make money, and we're gonna cut down on A-Techs. So we'll have one A-Tech-" Yeah ... "and we'll have 10 C-Techs, and that's how it's gonna be." Uh, when they decided to compete on tire prices, and when they decided to do quick lubes in their dealerships, they started competing in an area, and they, they lowered, they took themselves off of that, "We're the best" pedestal. They, they did. Yeah, Lucas Underwood: absolutely. Cecil Bullard: And when, when BMW started, uh, using aftermarket parts and going out to- Yeah ... uh, aftermarket suppliers to get a cheaper part for their customers, they don't even understand their market. Are they... Are you kidding me? You know? Well, Lucas Underwood: look, look, I'm gonna give you the hot take, and, and Raleigh's gonna cut this up, and it's gonna go out as a reel. Cecil Bullard: It wouldn't. Yeah. Lucas Underwood: And it's gonna, it's gonna upset a lot of people, so I'm just gonna put this out here. Cecil Bullard: Go, baby, go. Lucas Underwood: All right, here's the deal. I'm gonna tell you what happened, okay? All these technicians were paid unfairly And they were not treated fairly by the dealerships, and there was favoritism, and there was a lot of BS happening in dealerships. They did not see the value in continuing to develop themselves as a diagnostician because the way the pay systems were set up is they could make a whole lot more money hanging parts than they could truly understanding, learning, and growing how to diagnose a modern automobile. Yeah. So they are pattern failure fixers. They do not specialize in deductive reasoning like we see in the aftermarket industry. Now listen, automotive dealer technicians, that is not me talking trash about you. I'm not saying that. You were conditioned by the environment which you were faced with to behave and learn that way. In the independent aftermarket, we have to focus on deductive reasoning, learning, growing, developing at a much higher level. We work on all makes, models, brands of automobiles, and so we do things a lot differently in the aftermarket than you do in the dealership, and we have a lot more skill in the independent aftermarket that fixes cars that the dealerships can't fix. Cecil Bullard: It's a- Lucas Underwood: And so it's about a value thing in that sense. Cecil Bullard: There's another thing that happened, um, and this happened over the past 20 years, and that is, you know, uh, I know the guys that developed the... What's the, uh, mechanic thing where the mechanics would go on and ask questions, and they would have a whole library of- Lucas Underwood: Like IATN or something like diag.ad ... IATN. Cecil Bullard: Yeah. I know the guys. I was, I was... I wasn't involved with it, but I knew the guys. Lucas Underwood: Jeez, you're old, Cecil. No, I Cecil Bullard: am. I Lucas Underwood: wouldn't tell anybody. I wouldn't tell them I'm a diagnost- But- Let me know Scott Brown. Don't tell him you're 70, Cecil. Cecil Bullard: But, but I'm not 70 yet. Um, not yet. I'm not, I'm not dead yet. Um, but, but what's happened over the past, say, 10 years is with... An- and it's gonna happen more and more with AI, is they're looking at pattern failure diagnostic a- as the, as the key because they're saying, "Well, you know, 9 out of 10 times when this kind of a car with this engine, with this transmission has this problem, this is the solution." Lucas Underwood: Yeah. Cecil Bullard: And so now the m- the guys who are technicians at the dealerships, they haven't had to learn how to fix that, that 1 out of 10. Lucas Underwood: Yeah. Cecil Bullard: Right? 'Cause they just don't fix it. They just basically- Yeah ... you know, they throw the towel in and go, "No, thank you." And it goes out to the aftermarket, and in the aftermarket- Mm ... we have to... For some reason, we believe we have to fix the car, right? Yeah. Lucas Underwood: We, we don't send Cecil Bullard: them out. And, uh- Lucas Underwood: What Cecil Bullard: are we doing? No, we, we, we basically don't chase anything away. Uh- Lucas Underwood: Yeah ... Cecil Bullard: e- even though maybe sometimes we probably should. But, but I think that the skill set that we have developed in the aftermarket is a much broader skill set, a much better skill set, and I think it will take us into the future even- Yeah ... even better. So I, I agree with you 100%. I mean, the, the flat rate pay system, I, I... And here you go. Here's another one, right? It's not fair to the employee. It just is not. It's not. It puts all the responsibility of car count and flow and getting the right parts on the employee's shoulders. And it, it, it- I mean, I, I talked to a shop last week and they're like, "You're at 40% productivity." "Oh, well that's fine because I'm paying flat rate." And- Okay, so now you have a bunch of employees that aren't making any money. How do you think they wanna work? How do you- Exactly. What's the... How motivated do you think they are? I'm gonna come to work and make $400 this week, uh- Mm-hmm ... 'cause we, we're only gonna have, you know, six cars that I can work on. Um, and it's not because the cars aren't there, it's because the process of fixing the car and getting the parts here and getting the estimate done and getting the inspection done and getting the diag done, those processes are screwed up. Mm-hmm. We don't have a tech shortage. We have a productivity and process issue problem in our industry. Yeah. And if we fix the productivity and process issues in our business, every shop owner, I guarantee you, would make five times, 10 times more than they currently make- Lucas Underwood: Yeah ... Cecil Bullard: if they fixed that- Yeah ... and got their productivity up. And- Absolutely ... most shop owners are looking at the end and they're going, "Man, I hope I make it to the end of the month, and I hope there's still money left at, on the 1st in the account." Yeah. And they're working their butts off when what they should be doing is running their business and, and fixing those, those productivity and those, those process issues in their, in their business to create the machine that runs the best, right? Yeah. 100%. And I don't think we, we un- I don't think we understand our business in that way, right? Yeah. Lucas Underwood: We, Cecil Bullard: we don't- In this, in this industry. Not as a, as an industry. Lucas Underwood: Yeah. We, we've, we have fallen into the, uh, the trap of seeing our businesses as fixing cars. Yeah. And, and that's one of the issues with being technicians be- that become business owners- Yeah ... is we, we get stuck in the mentality of doing what the business does, and it, there has to be a shift. There has to be a- And, and- ... a view of synergy ... and Cecil Bullard: because it's, because fixing the car for us is relatively easy, right? Yeah. Um, you know, uh, uh, Wayne bought a, a, a used Cadillac and, uh, Escalade and the water pump, uh, was leaking and, and he was like, "Ah, I think I'm gonna do that. It looks pretty easy." So we got a water pump. Ah, easiest water pump I ever put on in my life, right? I mean- Yeah ... I think it took all of 15 minutes to take the water pump off and put the water pump... Took more time to figure out the serpentine belt and how it runs- Yeah, Lucas Underwood: figure how, how Cecil Bullard: to route it ... than, than doing all the rest, right? Mm-hmm. We know how to do that because we've done it a million times. Mm-hmm. Because when I started, I didn't, I, I couldn't have done any of that, right? Lucas Underwood: Yeah. Cecil Bullard: And so our, our, the consumer sees our value when we don't see our value often, and I think we've also trained the consumer to not see us as valuable 'cause we don't value ourselves. Lucas Underwood: Yeah. Cecil Bullard: Okay? Lucas Underwood: Yeah. Cecil Bullard: 100%. And until we fix that, until we, until we realize that, yeah, we probably should be upwards of 200, 250 an hour. And, and I'm not trying to set a price. Please, I'm not trying to. Yeah. Whatever it takes you to make 20% net in your, in your place- Amen ... where you're at, in your region with your costs, that's where you should be. That's what your pricing- Yeah ... should be. But- That's it ... if you don't understand how to figure that out, you need somebody that knows how to figure that out. Lucas Underwood: Amen. And listen- Cecil Bullard: So that you can be profitable ... Lucas Underwood: without clean financials, okay? It's gonna be real hard to have confidence in your pricing. But when you have clean financials, then you realize you ain't making no money, it's a whole lot easier to charge that money. " Cecil Bullard: Lucas, we, I think, I think we gotta go up 15 bucks an hour." I know. "Oh, I don't want to, Cecil." "Yeah, but, but we have to, brother, 'cause there's not money in the bottom line." 'Cause you're not paying your bills. Yeah. Well, yeah. Remember those bills that keep piling up? That's it. They're gonna still be there. Lucas Underwood: That's Cecil Bullard: it. Cecil- So confidence in your, in your product, you know, uh, I think the confidence we have sometimes is even weak that we're gonna fix the car. And so we- Yeah ... you know, even a sales guy sometimes doesn't trust the people behind him. Yeah. And I don't think you can sell when you don't trust the staff behind you to fix the car. Lucas Underwood: Amen. ' Cecil Bullard: Cause you're gonna be the one that takes the heat. And so it's more- Yeah ... than just, well, we should be 300 bucks an hour, so I'm gonna be 200 bucks an hour, or 220- Yeah and I can do that and I'll make money. I, I think it's more than, than, hey, I have a skill set that no one else has, or very few people have, and I have people that have that skill set, and there's value in that skill set, right? Yeah. And what we do and how we do it. And, and I think it's even more than, "Hey, if you go to Billy Bob's Auto down the street, maybe you won't get the same service level or the same quality part or, or those things. But here I know that we're gonna do all those things correctly." Yeah. I think it's also knowing that and feeling comfortable that, that in the end for yourself and the consumer, it's gonna be all right. It's all gonna be okay. Yeah. And if you feel that way, if you feel like no matter what I charge, it doesn't matter. What you charge, it really doesn't matter at all. How you treat the customer and whether or not you can build value in what you charge is everything. Yeah. And if I can do that and I feel good about it, then it, I can be very confident in my pricing, Lucas Underwood: right? You're exactly right. Cecil Bullard: Amen. A- and, and it, also, I have to be willing to send some people home Meaning I have to be willing to say, "You're not my customer. You're not willing to pay my price." You know, the guy comes out, I, I had a, um, a water heater blow up or whatever and leak, and guy comes out and, uh, I could go get a water heater at the time for around 1,100 bucks, and I could lug it in, you know, go down to the thing and lug it down and, you know, go out five times to my toolbox to get the right wrenches and, and all of that and, and, uh, then I could hurt my back trying to lug it out of my basement. And guy came in and, and he said, um, you know, how... I said, "How much for the thing?" He says, it's, I don't know, it was $2,200, 20, 26, whatever it was at the time. And I was like, "Okay, great. When can you have it done?" Right? "Oh, I'll, I, I got a water heater in my truck." Yes. "I'll Lucas Underwood: be done." Just Cecil Bullard: go get the water. "Put the water heater in. There you go." That's it. When we were all done, and I, I paid him, I said, "Now, I, I didn't argue about the price. I don't care about the price. What were you charging per hour?" Yeah. "What was your Lucas Underwood: hourly rate?" Cecil Bullard: Well, let's see. He was there for less than 45 minutes start to finish, and the part, uh, my cost at Home Depot was 11. You know, he paid less than that, and he charged me, I don't know, 22, let's say $2,200. I think it was 26, but he charged me $1,000 for being there for an hour- Yep ... and for driving over, right? Whatever that 15-minute, 10-minute... Uh, by the way, he only lives two blocks from me, 'cause I see his truck- That's it ... outside the house, right? Right. Um, but... And, and people tell me, "Well, Cecil, you lie when you say there are plumbers out there that are 4 or 500 bucks an hour." No, I don't. Lucas Underwood: Yeah. Cecil Bullard: I paid it. I've paid it more than once. That's it. And I'll pay it again tomorrow so I don't have to hurt my back lugging the, you know- Water heater ... heavy water heater out of my thing and, and carrying it away. Yeah. Um, and there are- Oh, that's so true ... lots of people in the world that are willing to, ready to, and able to pay that. Lucas Underwood: Yeah. Cecil Bullard: And they're not willing to, to do it themselves, and they want a quality product. Amen. If you're that person, be confident in what you do. Lucas Underwood: Amen, buddy. Cecil Bullard: You'll Lucas Underwood: sell a lot more crap. And, and we, we as the independent auto repair aftermarket are here to serve you. And Cecil, it has been great being here with you today. I'm excited to do the next one coming up here soon. Cecil Bullard: Always is, brother. Lucas Underwood: That's it, and I can't wait to see you guys next time. Cecil Bullard: Soon. Lucas Underwood: That's it, real soon.