Ep 102 - Chris Gayne | If There's a Problem in Your Shop, It's Probably You
With Chris Gagne
Now playing — Confessions of a Shop Owner
About this episode
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…
Key takeaways
- —Successful shop ownership requires a relational approach rather than a transactional one.
- —Mentorship and teamwork are crucial for fostering a positive work environment and improving technician skills.
- —Understanding the repair process is essential for effective shop management.
- —Specialization in certain vehicle types can enhance efficiency and service quality.
- —Honesty with customers about vehicle repairs can build trust and long-term relationships.
Frequently asked
- What is the importance of relational business practices in a shop?
- Relational business practices focus on building trust and long-term relationships with customers, which can lead to repeat business and referrals.
- How can shop owners effectively mentor their technicians?
- Shop owners can mentor technicians by providing guidance, sharing knowledge, and creating an environment where technicians feel comfortable asking questions and seeking help.
- What should a shop owner consider when deciding whether to repair an older vehicle?
- Shop owners should evaluate the cost of repairs against the vehicle's value and consider advising customers to trade in older vehicles if repairs exceed their worth.
▸Full transcript
You can obviously be successful and be that type of owner that is completely disconnected from what actually happens out there. Sure. Probably going to start a fight, but that's fine. However, that I think is 100%— and we get into discussion about this a lot, especially in these groups or within our chats or whatever— that's transactional business. It is. And I personally don't like it.
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 Shop Owner, presented by Techmetric, the best thing to happen to the world of personal transportation since the advent of internal combustion engines. Again, now he's recording. Yeah. Oh, thank goodness. That conversation, just yet another thing that will never see the light of day on the Confessions of the Shop Owner podcast.
It's a shame. Sorry for all of you. Oh my gosh. So we're here. Braxton tells me I have to mention we're at Tools in Pennsylvania because I forgot to do that. Where we are, so I think so. You never know this place. And I'm here with a, um, I'm here with a super American extraordinaire. I hope you didn't need that camera. And I kicked it.
That's okay. Super American extraordinaire Chris Gagne. You pronounce it right? It's a fact. Not Gagne because you're not French. You're super American. Super, super American. Super, super American. Um, I don't know if that's a— that's not true at all, but whatever. You're super American. I mean, I think you're exaggerating. I mean, you're like— you're probably one of the coolest people I've ever met.
I feel more like a— like Forrest Gump. I just have dabbled in a lot of weird things. I don't know how I got there. I don't know how I got here. You've done some things. Yeah, I've just done a few things. You own, uh, all unrelated, Dale County Diesel. Yep. Right. Yep. Not Markham's. Not Markham's. I do not work for Tommy Markham.
You did not work for Tommy Markham. Although probably some days in shop ownership, it'd probably be nice to just show up somewhere and just do the thing. Yeah, do the thing that you do, right? Yeah. Hey Tommy, you got problems. Tommy, I'm done. Put it in the Tommy pile. Yeah, put it in the Tommy. Put in the Tommy pile. Um, before that Military career?
Yep. So I did 21 years in the Army. Oh my gosh. Started out as a cop. Thought that's what I wanted to do. I was 17 and dumb. Turns out I hated it. And then started flying for the last 11 years. Okay. 11 years flying helicopter. Yep. Flying Kiowarriors and Apache. And then I finished out as the instructor pilot at Fort Rucker in Alabama.
And that's where we are now. Nice. Yeah, it was pretty okay. You ended up in Alabama because it was like your last deployment, if you will, or what? It was my last duty station. My last duty station. Yeah, so I got sent there to be an instructor for flight school, um, did it for a couple years, and then, uh, when I retired, I thought I was going to keep doing it.
I actually thought I was going to go to the airlines too, and I didn't do any of that stuff. And, uh, Dale County Diesel took off. So that's really— you were like too hyped up working on diesel pickups? Yeah, I guess. I, I don't know. You're like, this is kind of fun. I'm like Zeb's dog. I just need more stimulation. So I guess you're like, listen, I'm a little undiagnosed.
Yeah. And I may have a touch of autism too. Yeah. Yeah. I just got to be— I got to like touch things and do stuff. That was the idea. Yeah. Yeah. So when you started, was it just you when you started? It was. So it was me. And so it started with me and the shop. I don't know if I've ever told you the story of how the shop came to be, but it was an accident.
I used to fix and flip trucks on the side just because I like to do it. Okay. Except we were— when I thought we were going to go be airline pilots and all that, I didn't have a garage. I was in a townhouse. And so I was eating a— there used to be a place next to my shop where they had this giant breakfast burrito, and if you ate it, you got a t-shirt, your picture on the wall, and all that.
Well, I ate it every time I went in there. And, uh, so I was sitting there, you were like small town famous. Yeah, just, just a slob, um, feeling sorry for myself and looking out the window, and there was a old garage for rent. Okay. And I was like, man, I wonder what that would cost, because the town's a little— it's a little dilapidated.
Oh, okay. Oh, oh yeah, no, no. Oh, you're thinking— you're like, we are not hoity-toity. You're like, man, I might be a couple hundred bucks a month away from having a spot. I got you. So I checked it out, and it was definitely within my wheelhouse of what I could tolerate. So I rented this, this 4-bay shop. What I didn't know is you had to have a, a business license to do that in a commercial property.
So city came and informed me of that. So I filed for a business license, and that's how the business started. So you just like mess around with stuff on the side? You were going to go do something else? Yep. You're like, you know what, flipping these trucks is kind of fun, there's some money to make. Fun. It was— I'm the boss, you know.
21 years in the Army, I got real tired of people that I thought were unqualified telling me what to do. I'm not saying every boss I had was like that, but a lot of them are. A lot of them. Mhm. You've got a problem with authority. A little. Not really. Not after 20— if you made it 21 years, you can't have too much of a problem.
Well, you kind of hit a point of no return, right? Like, I was— it's a little too late to do the right thing now. I also am a high school dropout, uh, and when I joined, I didn't have a whole lot of choices, so, right, I hit the point. And it was working out. It was good. I'm not— I will always be grateful for my time in the Army.
It got me here where I am. But I was done. When I was done, I was done. You were done. You were done. I was done. I've thought about going back a couple times. It's been, uh, take a few offers to go fly on the civilian side with some— okay, other places. But, and I mean, went through the process, and then when I sit down and think about it, to be— to be— I'm not, I'm not willing to stop our shop.
That's my true passion. That's what I really like to do, and I can't do both and be good at it. So I stick with the shop. It's what I like. It's what you like to do. Yeah, what you like to show up. As crazy as that is, I mean, teaching guys to, to to put rounds from an Apache on target is pretty fun too.
It's not bad. Right. But I also like diagnosing blown up fuel pumps and stuff like that. You're probably a big fan of torque wrenches. You had a little issue with an Apache one time, right? Yeah. Is that public? Can we talk about that? Do we have to have breaks now? Yeah, you can probably Google it. Oh, you can Google it? I'm sure you can Google it.
Okay. April 18th, 2018. It might be the 2019th 'cause we were in Korea. I don't remember 'cause times are different. 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 want to 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 want to go after, have raised their hand and opted in saying, "I need auto repair help right now."
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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 Tekmetric, 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 Tekmetric can help you move your shop forward. I always just say we're in the future, so it might have been the 19th in Korea, but anyway, depending on the dateline, right? Right, gotcha. Uh, had some, uh, so all the heavy maintenance in Korea is done by a civilian agency, but they're all former Army guys.
Okay, right, that's where they learn. It's an Apache, right? So you have to be in the Army to learn the Apache. To learn, yeah, yeah, yeah. You're not going to learn that at the Niagara Falls waterfall tour. They don't fly. University ain't going to teach you how to work on the Apache. Sure. Um, so I, I was an instructor pilot. Our aircraft broke.
As I'm walking back to the hangar, my buddy who was a maintenance pilot asked me if I'd ever done a full general test flight with them. I'm like, nah, man. He's like, let's go. He's like, I just need you up front. You just fly the aircraft. Let me do what I do in the back. I said, cool, no problem. We made it about, I don't know, 50 feet and that damn thing started spinning around and it just ate the dirt.
Just ate the dirt. Yeah, so that sucked. At the time, I was probably 230 pounds of just exercising every day, meat and everything I could to push that damn collective down. You couldn't— it just wanted to be up, just the G-force. G-forces, you couldn't— I mean, it was hard to just move in that. I mean, it was hard because it had just sucked in so hard.
You're spinning that snap. So 230 pounds, probably 10 G's, so you're like 2,300 pounds. So in the, in the investig— in the crash report, it says that we hit the ground at 13.37 G's. Oh my gosh. That's from about— I don't even think it was 20 feet. It wasn't even that high. It wasn't even that high. And that's hard. The initial snap and spin of the aircraft, it twisted the airframe and blew all the— when we— when it all finally got done, my buddy in the back, Jake, was like, he's like, I got glass all over me.
Where the fuck is this glass? Can we say fuck? Whatever, I don't care. It's got this fucking glass over me. And I'm like, where the hell did glass come from? And I look and all the glasses, all the glass, because the frame twisted, twisted and popped it up, it blew it all out. Oh my God, like 20 feet. We were maybe going, if I remember right, it was just under like 20 miles an hour.
So right, right under what we call effective translational lift, right when the aircraft starts to get efficient. So we had enough forward momentum where the spin wasn't just stationary. We were— it was kind of like going, oh yeah, perfect. Yeah, yeah. Um, so you're out of control on multiple axes instead of just one. It was super— that's cool. And it was super fast too.
It lasted a few seconds, felt like an eternity, felt like an eternity. I remember every bit of it. I remember thinking, because you know, it's It's, it's got a spiral, and luckily we had big old rocket pods on there. And, uh, it was coming down, and I'm in the front, I'm flying, and it's coming down, and I'm watching the blades. We're— because we keep bouncing from side to side because I cannot get this.
Yeah, it's just kind of like doing this crazy little gyroscopic out of control. Yeah, so one thing about the Apache is, especially if you're in the front seat, those blades, they can come down and they can lop your old, uh, your dome off. So I'm watching these blades coming down, and they're— and you're strapped in and you're trying to duck. Oh shit, dude, everything I had to get get as low as I could and just push as far to the left as I could.
I'm like, please don't chop my head off. Oh my gosh. I thought we were flipping over. And I closed my eyes and I opened them up and I hear radios and I look and the tower was right in front and it's vertical. And I'm like, oh shit, we didn't flip. Oh my God. Yeah, it sucked. It sucked. And all it was was I think it's 5.
I have the coupler. The tail rotor drive shaft came apart. They put the bolts in the wrong holes and I have the coupler on my desk. I keep it there and you could see the last one that gave out. It's got a bend in it where it was holding on for dear life. It was holding on for dear life. Yeah. Yeah. Oh my gosh.
It would— I mean, destroyed the aircraft, right? I don't know what the hell an Apache costs, but a lot in the tens of millions. $30 million, right? Got to be. Oh my gosh. Yeah. Total it out. That was— they sent that right to pick and pull. Actually, it sat in a hangar out in Korea for a long time. I don't know what they did with the rest of it.
No idea. Yeah. All over, like 3 little 8mm bolts. Go from 5 little 8mm bolts. Were you— were you actively deployed at one time too? Oh, well, you were in Korea, so you were— you were in a war zone. I did Korea twice, did Iraq Iraq and Afghanistan is a list of guys. Um, I've been all over Europe. All over Europe. I know you've been all over the US.
We've talked about that before. You grew up in— I have flown a helicopter in every state of the US except for, um, Alaska and Hawaii. Oh my gosh. Yeah, everywhere, everywhere, everywhere. Yeah, you've seen it all. It's been pretty literally pretty okay. I feel Forrest Gump-y, like I just— sometimes I'm like, I don't know how I got here. Why do you work on trucks, Chris?
Because I'm tired, right? I kept going. Yeah. So Dale County Diesel starts up, you make the transition out of that, which is just an unbelievable— it's a big shift. You got to think too, I'm at the home Army flight— every Army helicopter pilot goes through Fort Rucker, which is where we are. Okay. All my buddies that are instructors, they're still there. If you're an Apache instructor pilot, you don't— if you're going to keep flying, you've got probably two choices.
You fly some Apache— I mean, you got a few, but the good paying jobs are keep flying Apaches as a civilian instructor, or you go to the airlines like these other guys do. Right. So there's a ton of guys that I know that are still out there flying. So I see these guys all the time and they're like, why the hell you want to work on trucks, man?
Don't you want to come fly? Don't you? I miss it. I miss flying. I miss things about it. But man, I don't miss that kind of shit. I don't. I don't miss the— that was a thing you did. And now we're on to the next. We're done. We're on to something else. We're done with that. Yeah. We're figuring out that running an auto shop isn't easy.
Nope. But it's also not terrible in the grand scheme of things. No, it's pretty great. I enjoy it. There's a lot of things that translate from the Army, like When I was enlisted, I was a Sergeant First Class. So, you know, like when I went to Iraq, I took 40 guys with me. Okay. And well, I finished with— when I went there, I was E-6, so I had, what, 12, I think.
And then when I left, I had 42 dudes I brought back home. I enjoy leadership. I've been to a bunch of leadership courses. It's just— it's what I like. I like kind of managing people. Translates well into the shop. It does. It does. Luckily, and I hope my guys will agree when they hear this, that I don't treat them— one of the guys, it's actually my main guy, Adrian, him and I were in Iraq together in 2000.
Really? Yeah. Wow. And now he's the main guy there. I don't treat those guys like I do. I mean, I don't— I think I've raised my voice maybe once or twice to a couple of guys who probably don't work there anymore. I just— I run it a different way. Yeah. Luckily, I come to things like this and get to learn from guys like you and, you know, the other people that are here.
And don't look at me. I don't know anything. That's, that's true. Where's your bag of potato chips? Right. All that guy does is eat potato chips. You don't fix no cars. Yeah. Yeah. That's awesome. Yeah, it's all right, man. I, I enjoy it. I enjoy the, the growing part of it. Right. It's the painful part. But it's also— I'll tell you what I really like to like in this again, part of my instructor kind of background, like when they're teaching somebody how to how to, how to put a rocket, you know, on a dummy tank, right?
Okay. It's tough. It's not easy. Yeah, right, right. 25,000-pound machine. Looks easy in a video game. It's really not that great in real life. There's a lot going on. There's a little bit going on. Yeah. That you don't see. But once they get it and the light bulb clicks and they just do it and you just sit back and watch them do it, it's like, hell yeah.
Um, and I enjoy that same kind of satisfaction from this shop too, right? We get a lot of that. We get a lot of it within the shop. Get a lot of it with trying to drag other— because, man, I want to see everybody do well. There's enough broken cars. I They get crappier every day. So talk about it all the time.
There's enough for everybody. I'm not— I want to see other guys coming to these events. I rode down here with other shop owners that we're not in competition with. Yeah, I'm not in competition with the people down the street. I'm not in competition. And it's not— and it's not because we're at different levels. The people I rode with, Dan can fix anything I can, right?
Like, no doubt. Dude's freaking super sharp. We're not in competition with each other, right? We're just not. Because there's, like you said, so many broken vehicles. Yeah. And if you— I mean, it's not like a thing. I would argue it can be competition. It just doesn't need to have a negative connotation with it. Sure. Right. Sure. Competition breeds innovation. It should make you want to do better.
Yeah. Like, I almost wish a diesel shop would open up next to us because right now we're really the only one. Give you a little nudge. Yeah. Give you a little nudge to really— other places that'll do what we do. To kick it, kick it into road gear. Yeah. Yeah. And all it does to me is like when someone says, oh, well, you know, they can do it too.
And I'm like, you know, that gives me a little nudge. Like, I bet they can't do it like we do. Yeah. You know, like, that's my point. That's the best I can do is say, yeah, we don't— they don't do it like me. Yeah, I bet. They can do it. Yeah, that they— yeah, there's something— diesel is so strange because there's so many people— how do I say this— there's so many hobbyists dabbling in this thing and fucking it up.
Yeah, it's just a fact. I mean, you just see stuff all the time, like stupid stuff that is like just basic for us. Like, yep, people like putting a, uh, put— doing a DCR conversion, they put— don't put the lines back in the brackets. Oh yeah, well, how do you think that's gonna go? I know directions say to do this, but man, it's good.
No, because I'm smarter than the guys at S&S that designed the stuff and tested it, and they don't put the lines in the brackets. And they're like, oh yeah, I had, uh, my neighbor's sister's cousin, um, not her neighbor's cousin, the neighbor's sister cousin, if that makes sense, um, did this DCR converter. You know, I smell fuel, I, I smell fuel in my truck.
And you look and there's fuel in the valley of the truck, freaking turbocharger manifolds right there. This truck is like, thank goodness he just gets groceries with it, because if he'd pull a trailer, thing would have burnt to the ground, square to the ground. And then there'd be a Facebook post telling S&S how, how, what a shitty product is because freaking technician Timmy doesn't know what a torque wrench is or instruction.
Forget the torque wrench, forget the torque wrench. He knows the instruction, just blatantly doesn't put the shit in there where it goes, right? And that's— or the cheaper guy. Yeah, I got a, I got a guy who'll do it for that. I got— yeah. Oh yeah, I got a guy who does. Oh yeah, I got a guy who'll do that job. He said he'd do it $500.
Well, great, right? $500 labor. Yeah, yeah, go ahead. We've seen the Facebook posts. I know. And you just imagine what those installs look like because let's, let's face it, on that job, like a lot of guys talk about doing that job for $500. If you're going to do that job right, even if you do that job all the time, 4 hours. Oh, to do it, to do it, to do it perfect.
Correct. 4 hours. If you're cruising, you've been in a ton of these, 4 hours. And again, if some dude's doing it for $500 labor and he ain't doing them all day, Like, you're not— and even you're not making— you can't— no shop can— you can't be profitable doing that as a shop. No, sure as hell not at a shop. And as a private individual, I mean, I guess if, if you're broke, $500— I mean, I'm not trying to sound hoity-toity, but I'm just saying that like, if I'm going to spend an entire Saturday, it's good because they're not going to do it in 4 hours, right?
They're not going to do it. They're not going to do it. It's going to take them all damn day, assuming they don't screw something up. Nothing. Assuming, assuming they have a— assuming they have an air hammer and a fan clutch tool. Yeah, maybe they get the fan off. Maybe you don't need to take the fan off. There's tricks, I get it. Yeah, some— yeah, whatever.
I had a guy that didn't do it, God bless him. He was good at it, whatever. He was quick with it. My hands— I'm too fat. I'm— I tell everybody the same thing. My— I am fat, old, and my back hurts. Yeah, I'm taking the fan off. That's why, like, if— do I take the path of least resistance, bro? People talk about pulling, uh, or not, or doing um, 6.4 turbos with the cab down.
Oh, it's easy, man. But no, if I just had this conversation last night— bring it up. We just— and people will make fun of me for this, but I'm like I said, I'm fat and old, my back hurts. I, I'm like, like LML fuel filter housings. Oh yeah, dude, like I'm like to a point, like, thank goodness, thank goodness we got great guys who work for us because I have a guy I can just give that to.
Little hands. With little hands, because that job pisses me off. Like, I'm to a point now, I'm like, I don't know, I might freaking disconnect some hoses, some grounds, and freaking lift the cab off this. I don't know, I'm just— I'm especially— I'm over— they are. And I always talk— and Zeb's guys— Zeb's always funny. He's got guys that are really good at doing this.
This is all they do day in and day out. He's like, my guys don't even lift the cab off to do a fuel system. I go, dude, I can't even take the EGR bolt out with the cab on. I'm like, I'm like, dude, look at my hand. Yeah, like, I can't, you know. Yeah, like, great. And it's great that they can do it.
And I know them guys are doing it right too. I get it. They're doing it right. But it's like, it's like a turbo on a Duramax, right? You, of course, you don't need to take the cab up, but boy, one of them bolts break, you're going to wish you had just done it in the first place. Yeah. You know, and like I said, I'm not saying we do it, but luckily I don't primarily do that work anymore.
Yeah, I got guys that are good at it and they do it. You're like me. Like, luckily I've got guys, you know, I used to There's been a big transition in our shop where even, even mechanical stuff-wise, like even the nuts and bolts of it before, before we got it, we got a guy now before he got a ton of experience under his belt, even in our shops, I was kind of, I was kind of the king of the road of the mechanical stuff.
Right, right. Hey everybody, I'm going to take just a quick minute out of our show to talk to you about one of the favorite tools that we have. In my company to help streamline and make our guys as efficient as possible. And that's Detect Auto. I've been talking about Detect Auto for almost a year at this point, and my team still loves it.
And if you listen to the show, you know that I love the idea of bringing in skilled individuals from outside of the industry to add to our shortage within our trade, right? But one of the problems that you run into sometimes with that is that these guys and gals might not have a full automotive knowledge just yet. And as a technician, if you've ever gotten a repair order that says check noise, you know how infuriating that can be.
Well, this tool, the Customer Concern Tool, is designed specifically for that. The advisor can put in 1 or 2 or 3 words about what the complaint is, and then it's going to prompt them all the questions that they need to ask that customer. And then it puts that into a paragraph form that's easy to understand for the technician. So that technician's not getting check noise, check vibration.
They're getting all the information that they would like to have from the customer. It just makes things more efficient. It makes guys in the back happier and it just makes the business run more smoothly. If you want to find out more about this and the other tools available on Detect Auto, just reach out to us through the link in the show notes.
I'm gonna get these, get these stuck bolts out, you know, weld some whatever to get a bolt, whatever. Thank goodness I got a guy who's better at that than me. Yeah, because I'm just— and I, and I, as that shift has happened, you start to recognize that maybe you're not that good at certain things anymore. Oh, for sure. I wouldn't want to have to do a set of exhaust manifolds on something because it's going to take me too long.
I got this guy over here that's going to do just as good a job as I do. And he's 10 years younger than me. He's going to do it in half the time because he's been doing all of our heavy line work for 6 years now. Yeah, there's something to be said for that. I mean, yeah, I walked outside the shop when we get here Wednesday.
So Tuesday and Adrian's doing a fuel system on an LML and I look in there, I see the EGR out and see the turbo. I can see the turbo, which means you've done a lot of work already. Yeah, right. Yeah. If you can see it. Yeah. Like, nah. I'm glad you're good with the cab on. Cab on with the cab on. Yeah.
I'm like, I'm glad you're good at this, man, because I don't want no part of that anymore. And like, you call me whatever you want. I don't care. But what I was going to say to that is, and I know for you it's the same thing, not doing that opens you up now to learn and do other things. Yeah. Focus on other things that for sure that it makes me better at the tasks I have to accomplish.
I think that especially technician and I'm not a technician by trade, but I was sure a bunch of them now. Technician turned owners, it gives them time to do this stuff that maybe they didn't think was important to start. But they need it. And now they realize, hey bro, you need to be doing this stuff. You need to take a look at it.
This thing doesn't run itself. If you don't know what KPI is, like you need to go get yourself in front of a computer and let's talk. Right. But that's what it does. I mean, it's, I used to feel bad about not fixing trucks anymore, but it's, I don't serve the shop best if I'm the one doing I'll do work, especially when you've— especially when you've hired people who are good, right?
But they're good at it. They do it all the time. You're— you've hired a guy that at this point, because he's put so much more time in recently, you've spent some time not doing a fuel system, if you will. He's at a point where he's literally better with his hands than you are now. Yeah. And that's okay. It wouldn't make sense. It would not make sense for you to do that job.
Yeah. Because you have a guy that's going to do it faster and just as good. And he knows the process. He knows we're going to torque this stuff, we're going to do this there, right? Yeah. I mean, why would you even try to do it like at that point? Like, if you're going to be slower at it? Well, I would say the only reason I would try to do it is if trying to give him some time off or he gets— sure, sure, you got to sub in.
At least we can go back and do that. I couldn't imagine not being able to go out in that shop and do— I, I've made that point. I've made that point a ton of times. I, um, I think I made that point in the chat group we're in the other day. Whether people like Dave Ramsey or not— Oh yeah, yeah. This is a great comparison.
Whether they like Dave Ramsey or not, whatever, but he is very well respected as a financial guy. Right. Right. And one of the things he says when people are planning for retirement, they're getting their investments together, he's always like, he's always like, you know, mutual, general mutual funds, whatever. Don't— if you're going to special— if you're going to crypto or commodities, this, that, and the other thing, don't invest in anything you don't understand.
And that's caused a lot of heartburn for me. Oh, when I talk to shop owners that came from the restaurant industry and, oh, I was, I was, you know, the district manager for these restaurants and auto shops, a great investment opportunity. So I bought an auto shop. Yep. And I don't know, and I'm not saying that every shop owner's got to be super tech and they've got to be the best tech at their shop.
That's not what I'm saying. No, what I'm saying is why, if you don't understand the general physical repair process on a car, the nuts and bolts of— if you don't understand the general idea of what it takes to get the cylinder head off of an engine Why did you buy a shop? Oh, I'll take it a step further. You should, you should be able to know.
My dad, my dad's a career carpenter, and all the friends that he had that I used, like when I would go with him to work, what they would say was great about my dad was his ability to see some of the issues that were going to happen before they started, and that's why he was good at it. I couldn't imagine being a shop owner and not being able to look at that truck and that truck and tell that one's going to be a pain in the ass.
Let's— or even you're out in the shop and you're hearing, you're hearing a little bit like this happens to me a lot. I'm hearing a little bit too much air chiseling or hammering going on over here. I'm going to go over here and take a look. See what's going on. That shouldn't be that. That shouldn't be like that. We shouldn't be, you know, or you just hear things.
You hear things going on. You're like, we got to go have a conversation with this guy. Yeah. And that's right. I think you need it. It's my opinion that, well, I shouldn't say it. I shouldn't say you need to have that. You can obviously be successful and be that type of owner that is completely disconnected from what actually happens out there. Sure, probably going to start a fight, but that's fine.
However, that I think is 100%, and we get into discussion about this a lot, especially in these groups or within our chats or whatever, that's transactional business. It is. And I personally don't like it. I listen, I love money, I like stuff, I like my kids doing whatever the hell they want to do. I'm all for that. I just don't want to do it that way.
Yeah, I don't want to do it. I get it. We get— we're We run a relational business with our customers. Jim, Jim texted me on the way down here, uh, yesterday. One of our customers died. Let me know that the guy, the guy had passed, you know what I mean? Right. Like, that's like, we know these people, right? And I'm not saying these people, we know where, where, uh, you know, there was this one old lady that used to have trouble with her Toyota because she never drove it, so the battery would always die.
Like, we knew where she was, we knew how to get in her garage, we knew how to jump the car for her to get her going, you know what I mean? And I'm not saying that every shop should do roadside service for old people. And that's not what I'm saying. What I'm saying is it's— we know the people, right? Well, you, you're putting more to it.
And here's the deal, if, if you're, if you're a person that had the, the capital to invest and buy a shop and run a shop because you thought you could run this as a business and make money, and you do it, that, that's great, but it was strictly monetary, you know, uh, cash flow driven. And like, sure, your, your thought process is not I don't care what they say.
It's just you're all about that cash and that's fine. I'm good with that. That's okay. That's just not— that's America. That's capitalism. I'm good with that. I love it. You're like, I love it. But I'm just saying that that's not what I want. It's not what I do. I want to have— I want you to say they're the best, period. You know, are we?
No, of course not. That's why I pal around with the best, though, to get better. We aim to get better. Yeah. That's why my toolbox is still sitting in Bay 1 over there and it's going to stay in there. I couldn't imagine not having a toolbox in the shop. Now I say that and I hope Nolan doesn't take offense if he ever listens to this, because buddy Nolan runs a diesel shop and he doesn't have a box in there and he does great, but he's not ignorant to everything that's happening in there either.
Sure. I just like kind of the— I don't know, man. It's maybe it's a— I don't know what it is, but I just couldn't imagine. Picture this. Picture if you're that guy that just invested in a business and you're trying to just make a bunch of money, you now have to find somebody who does know what the fuck is going on. Because when you're guiding down there, figure out who that is.
Yeah, good luck. And how do you know? How do you know? You don't know, right? Because— but then your, your, your, your normal tech down there who's doing the brake job doesn't understand the electric e-brake or whatever. He's got to go ask a question. Who does he go talk to, right? So that's one of the greatest things I feel like I have going on in our shop is that nobody has to freaking die on something.
Do you know what I mean? And it's not always good. And don't get me wrong, I've created a lot of problems just stepping in and taking care of stuff. But nobody feels like when something goes sideways and they're like, I just had it before I left. We were doing some control arms on an EcoSport and the axle had popped out from the inner boot, the CV axle.
And 90% of the time, not even 90%, like almost every time in my life that's ever happened, I can like finagle it back together without taking anything apart for the guy. I couldn't get this thing. Yeah, right. So we take the whole axle out of the thing and like this guy, you know, he's struggling with it, you know what I mean? And he's not even a— he's, he was a 12-year GM tech.
He just started first. This is his first job not working on GMs. He's working on Ford, which doesn't really have— it's the axle design was the the issue. It was a different style CV axle design. But, you know, he wasn't stuck on like, oh my gosh, I'm going to be here for an hour figuring this out. No, I saw he was struggling.
I went over there, we popped the axle out, we worked together on it. We discovered, holy crap, this has got a weird axle design. And this is— you actually have to take the boot off. This is what you have to do to put this axle back together. And he's— but anyways, long story short, the guy's not stuck on a desert island. Just like if one of your guys gets done You know, you don't always— the mistake I've always made is always getting involved a little bit too quick.
I don't let them ride the struggle bus for a little bit so they can learn something, maybe. Right, right. But it's the same thing. Like, if one of your guys does something, you have a new job and the truck doesn't start, you can go, okay, let's go through what did you do? Where are we at? What's this data look like? Let's start going through this and see, right, what happened.
They're not stuck. Freaking dying on this job. Yeah, you know, I couldn't imagine doing that. But, and then I think that's a problem too. You run into places where, like, like, we don't do flat rate, right? Um, neither do we. We don't. And it's part of that is I only have a few guys that run our place. I don't want Adrian to feel like he needs to tell Michael, hey bro, go figure it out because I got my own stuff to do, right?
I don't want— you want to be in a situation where people can help out. I want you to be able to help him where he needs it, or he can call him over, he can help you out. And that was the same situation on that, on that job earlier with those control— the bushings are real tight. Yeah. And our guy Brett had 3 guys over there helping.
There's 4 guys holding pry bars certain ways trying to get it— trying to get the bolt in so he didn't damage the threads, you know what I mean? Yeah. You go to some shops, you know, and not all shops are like that. I hate to paint with a wide brush. Not all shops are like that. But I mean, we could safely say, you know, dealerships are kind of set up that way.
I never worked in a dealership. From what I've heard, yeah, it's— yeah, you got your own shit, man. Yeah, good luck. Yeah. 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. That's not what I want to be a part of, dude.
I like it and I hate it, right? I like it because I think you separate, right? You separate the men from the boys. Yeah. And I mean that— that's true. Some of the best techs I ever had was a woman, so I'm not— I don't mean that in a sexist way, but it just separates the good ones from the bad ones right off the rip.
At the same time, we're all better together, right? So I don't like that feast or famine kind of setup. At the same time, when you've told the when you've told the customer, hey, I'm going to have your stuff done at the end of the day today, and you have a guy and it's 3 o'clock. Yeah. And it's a couple guys will step in and help them versus it's going to take them 2 hours, right, to get there from here.
Right. I like a couple guys being able to stop what they're doing comfortably. Right. It's not a big deal. Right. It's not a big deal. Everybody just goes over, helps the guy, and it's not a problem. Right. Like, you know, with our— we kind of— we've tried a bunch of different things out, like pay compensation and incentives and stuff like that. And I mean, if you keep a shop incentive where, yeah, you're right, I'm coming to helping you, but it's still, it's a shop goal.
So if we meet that goal, who cares, right? I don't like the idea of that, the individual. Yeah, I don't want individuals. I don't want individuals. You don't want a bunch of little businesses running under your own roof, right? No. And I think that causes— people, there'll be heartburn. We'll release this episode, there'll be heartburn. And not every— you know, there's some people I really respect do run flat rate.
Yeah, again, it's fine. Well, that's, that's what I like. You know what I love about our group? My favorite thing about the group chat that you and I are in together there, what is there, 6 of us in there, 7 of us, whatever. Every single one of those shops is run differently. Yeah, they're not run the same. There's little differences with each of them.
Yeah, and some of them are significant, right? Um, especially when you bring Zeb in, like he's completely different from everybody else. Yeah, but he's doing the opposite of everybody. He is. But man, when you really— like, everybody's flat rate and, um, yeah, I got, uh, a million bays per technician. I don't know, I'm just— each tech gets 30,000 square feet. Each tech has 30 2,000 square foot of their own.
And, uh, yeah, but I don't know if you've ever been there, but I've been there, what, 3 times now. And when you walk in and you watch those guys work, it's like they're just going. It works. What he's doing absolutely works. And they have multiple trucks in, and they get stuck on one— if they do get stuck on one, which gets stuck probably doesn't happen often because from what I understand, Susie runs type shit.
Yep. But if they do, just move on to the next one because it's already in. Yep, it's already there. They've got zero time. And that's something, that's something that we embrace. So in, um, so I lost 2 techs February. Now I remember this. Now mind you, I only had 4, so I lost— I remember this, but it was a good, it was a good loss for you.
It was, uh, it turned out to be a good loss. So great dudes, I wish them the best. Um, but as a business, we did better, right? And this came up with, uh, Lucas was talking the other day about, you know, base per tech and this and that, and I commented on his post that there's not answer. There's not, man. We went from— we have 4 bays and I had 4 techs and I would kind of do diag wherever I could out of the way of those guys or take one of them and let them be my hands while I was being the brains of the diag.
But neither here nor there, losing half of our workforce, but doubling the bays that the guys that we have that stayed have. It's just an efficient— they did as much or more build hours with 2 than we did with 4. Yeah. And I think it's— which maybe— which, which can be related to a million things. I think it's— and that's fine. I think it's the way that Zeb runs his, where if Mike— if I had Mike working on a truck here, I went and grabbed the— what— the next one I knew was dyed and ready to go.
I put it right next to him and I said, you hit a spot where you— where you— parts, whatever, this is what this needs, here's a ticket, you jump right on this truck. Don't even hesitate, don't ask, go to here. Do the same thing with Adrian. So they always have at least 2 in the bay ready to go. And they're just turning all day.
They turn, and they don't have any downtime. Like, they're, they're testing. They want to turn profit. It's— well, I think it's turn hours. I think that people who are efficient at what they do and good at what they do with, with mechanical things in particular, I think that— I think there's— I think there's a hyperfocus. Okay. Okay. And I think the hyperfocus, it If they're hyper-focused, they're very efficient.
When it gets broken up to work, pause, work, pause, work, pause, I think it busts that down. And having everything ready to go and not having the wait and this, that, and the other thing is the difference between 80% tech efficiency and 150% tech efficiency. Honestly, honest to goodness. And that's why I think a lot of shops say that, that whatever over 100% is an unreachable number.
And our guys, don't get me wrong, we don't We don't run it like this magical 150 or 200% because we have, we have a bay situation where there's one body per bay and shit happens and shit happens and it's fine and it's fine. But I think when you're dealing with techs that are very good and very efficient and do mechanical repair very well, right, I think keeping them engaged, boom, boom, boom, they want to run like that.
It's like a racehorse. Yeah. And what does a racehorse want? You ever see— you ever For some reason, my, my Instagram feed gets all funny. For a while it was hot dogs. Now there's like rodeo. It's, it's crazy. And some people get that reference. It was, it was like literal hot dogs, like 7-Eleven roller dogs. Anyways, um, but anyways, recently it got switched up to a lot of rodeo.
Okay. For some reason, I don't know why. It's algorithm does what algorithm does, right? And then you start watching it because, you know, it's kind of cool to watch, you know, some dude try to ride a bull. I'm like, that guy's a freaking badass. Yeah, yeah. But anyways, like, there's a couple, um, barrel racer videos that have popped up, right? And you look at these barrel racing horses, and if you ever— I don't know if you've ever seen it, you'd have to watch a video or maybe pay attention to radio or something.
So this, this girl, or sometimes a guy or whatever, they'll get the horse and it'll be like in the chute, like ready to go out and run the barrels. Yeah. And they're like full pull trying to hold the horse back, because what does the thing want to do? Wants to go, wants to to freaking run, right? And I think there's a lot of techs out there.
I think, I think there, there's a lot of bad technicians. I'll say there's a lot of bad techs out there, but I think there's also, I think there's also a lot of people that just want to freaking run, and they've got more frustration with the fact that they just can't run than anything else. I really do. Because I think there's a lot of guys that are maybe labeled as bad, but they're just not in the right environment.
Here's what I think. I'm ready. And it's on par with what you're saying, but I'll take it a step further. Okay. Right, like, like, here's, you know, here's, here's my confession, right? Like, if there's, if there's a problem in my shop It's me. Sure, it's me. And I never, not once will I go and say, uh, I had a guy make a mistake, cost us an engine, right?
I didn't go yell at him, call him right now. I've never yelled at him, didn't discipline him. Yep. Didn't, didn't take money, didn't do shit. Yep. I sat, I said, I need some time to process this. And what I did is just, where did I screw this up? Because he's good at what he does, but he made a mistake. So was it, was it the process?
Was it, did I rush him? Were you rushing? Because we were. I remember it was around Christmas time, so we're trying to— I give everybody 2 weeks off at Christmas, like they don't have a choice. You're taking time off, but you're going to be off. So now you're— but we need to get that truck done. You're under the gun trying to— so that stuff up, you're trying to tie up all the loose ends.
Yep, that's what we're trying to do because we're going to be— but you're going to at least evaluate that if that was a possibility. Exactly. Somewhere I screwed up. Sure, right. Um, because I, I think, I think that's a weakness of shitty leadership or shitty character to blame somebody else for your, what, your position you're in. Sure. Um, I think techs get labeled as bad techs by people who don't know what the fuck they're doing when it comes to managing people or teaching or any of that.
And I'm not saying I'm an expert, right? But what I do know from a lot of leadership experiences Everybody's different, right? I have a hard time with my own son in the shop. We just this constantly, right? And, you know, I think the best thing for him, he's going to go work for somebody else over the summer. And I think it's great for him because I want him to get a different style, right?
It's— I have a real hard time with, you know, when, when someone gets in these stupid, um, I say stupid, these auto shop owner groups and they're bitching about techs and they're— it's like, you really need to go get a mirror, right? Because you're probably a big part of the problem. Well, and at the end of the day, if nothing else, you are the one who hired them.
You are right. And so at the end of the day, like, let's say, let's say you do hire somebody and they are, they are exactly what's described. Well, why'd you hire them? Right, right, right. You know what I mean? Still your fault. Yeah, it's still your fault. Or did you— what did, what did you do to mentor them? What did you do to get them better?
What did you do for follow-on training? Did you do any follow-on training? Did he get offered to come to Tools? Like, that's sure. What have you done? Because my thing is, if they took the time to come to you because they wanted to do this, I'm going to say more than 9 times out of 10, they have the aptitude and ability. Just, you probably didn't get them there.
And I'm not saying there's not people that are turds. Or you got them doing the wrong job, right? Right. Like, because here's the reality, not everybody, not everybody is— not only is not everybody cut out to be, you know, to, to diag and triage cars. I like to use the word triage a lot, honestly. Not only is everybody not cut out to diag and triage cars efficiently, but there's different things that guys are going to gravitate towards.
There's different jobs they're going to like doing. Yeah, right. Like, I got a guy who does a really good job, like, and it's an easy job and it's not a complicated job. And it's like people are going to listen to it. What kind of brag is that? But I have a guy that puts oil coolers in Pentastars very well, cleans them up real nice.
The job's done right. Everything's torqued. He does it very efficiently. Yep. So if this guy is that good at doing that job, why would I dispatch him something else? Just like I have a guy— I already told the story before, I think, on the podcast. I have a guy that welds exhaust very well. He can look at the problem and this isn't— you guys probably don't deal with this, but where we are, we don't do that.
The shit rots out, right? I've told you, we don't even have brake flaring tools in the shop. Yeah, a lot of times. A lot of times you can't even get the parts, right? Like there's certain parts that are discontinued, whatever. So you got to, you got to fix it. You either got to buy aftermarket stuff, which aftermarket stuff, the difference between the OE and aftermarket is OE went 12 years, aftermarket is going to go 2.
Aftermarket won't make it out of warranty. So we got a guy that does really good with fixing exhaust, welding this, welding that. We give him all sorts of pipe and he can just look at that thing and figure it out. And man, I used to be the guy. I fixed all the exhaust for a long time. Yeah, for a long time I fixed all the exhaust.
This kid, better than me at it. Yeah, I mean, you can have it. You know, it's hard when you get somebody that's almost— that's, that's nearly 20 years— not 20 years, 15 years younger than you that does your job better. Instead of getting pissed off, just be happy the guy does the job better. Yeah, dude, like, okay, and you want them to get the other experience, but man, if they're good at it, they're good at it.
Yeah, he's good at it. What I try to do is, you know, like, like Adrian— Adrian likes Duramax. Good brother, you can have every single one of them. The other guy's talking about that a million times. I'm like, how many freaking different size bolts they got to put in this thing? If I never do another one again, I don't— I won't be mad, right?
Yeah, right. Yeah, yeah, it's— I mean, and, and that's— I'll say that's a thing that, you know, a luxury— I shouldn't say a luxury we have, but basically it is. In, uh, at Dale County Diesel, we're diesel trucks, right? We do Powerstroke, Cummins. You're already specialized. Well, for the guys too, they get used to— it's, it's like midway between like one of your guys.
You do a lot of different makes and models. Sure. We're not a dealership. We're in the middle, right? They touch 3 different kinds of trucks. I don't touch Titan Cummins. I don't touch them stupid EcoDiesels. I don't touch them Powerstroke, mini Powerstrokes. So you don't put used motors in EcoDiesels? Yeah, we're not a used parts shop. Yeah, we don't do that. You don't do that?
No, you know, you'd rather— you'd rather get a prostate exam with a cactus than put a used motor in EcoDiesel? There's no chance of that happening. Okay, good. I don't even want to— we did the last EcoDiesel we worked on, dude, was a Jeep Grand Cherokee. Beautiful, beautiful SUV with a diesel in it. The oil cooler ruptured. Well, we got it because Dodge said it needed an engine.
Well, the guy drove it to the shop and I'm like, well, I think it runs pretty good for needing an engine. And but the coolant's full of oil. I'm like, you need an oil cooler for sure. And Dodge does. I read their service info and it says something about You should be changing the engine if whatever, but the truck was fine, or the SUV was fine.
The point of the story is why I hate them. We do the oil cooler, but that oil hid, what do you call that, had weakened the integrity of the coolant hoses. Oh yeah, yeah, yeah. And so they were like really soft and squishy and you couldn't like clean 'em. So we're like, oh, we just need new hoses. Dodge doesn't make 'em. Or Stellantis, whoever the hell's making that pile of shit.
Identity crisis auto industry. They do. FCA, Stellantis. Any of that shit. We had to find it on Daimler, whatever they're calling them nowadays. Yeah, absolute junk. So I don't touch that crap. Yeah, I hate it. So our guys, you know, they get a taste of, hey man, we're generally doing the same thing. And then as we, you know, I told the world that we weren't touching 6.0s anymore, and that was a lie.
We took in 2 right after that. The lie detector test determined that was a lie. Sorry. You know, it's— and that almost goes back to like policy. Everybody wants to set, you know, a major fad that we listen to in auto repair, and I'll apologize for the people who do this, they're always talking about hard policy, hard policy, hard policy. And even when you try to do hard policy, it's almost like, like even like no quotes over the phone.
Yeah. Like there's going to be an exception. Yeah, there's going to be an exception. If somebody is going to yell at me, but yeah, you just— there's going to be an exception. I'm not going to do 6/0s anymore, right? Well, I got some really good customers that run small businesses and farms, borderline, borderline fleet. So if one of them guys bought a really nice 6.0 somewhere and it was broke, I'm not going to tell a customer that's spending $35,000 a year with me that I'm not going to work on their 6.0.
We're down south. Those 6.0s, the bodies are still everywhere, alive and well. Yeah, I'm, I'm relieved up by me. Most of them are rotted up to the door handles, but I wish ours were just— they would go away. But, but like, I have a couple set— I just, I just worked on a 7.3 the week before last, and it's like, what are you gonna do?
The guy's a good customer, he's been coming to you forever, he's got a couple other cars he brings, and he's got this 7.3, and he wants you to fix it, and he wants you to fix it. He knows the value, what are you gonna do? Appreciates the value. He's not telling me he won't work on his 7.3. It's hard. And I go through the same spiel.
It's so funny, I go through the same spiel every time I do my thing, because, you know, because first, you know, I have like my whole process when something's stupid. Like, I have to get irritated about it. I'm like, oh, we're going to use 7.3s. I'm like, I know whole-ass shops in the South where these things aren't junk that won't even do them.
And then I'm like, okay, calm down. Just do it. Do your job. Shut up and do your job. Let the hate flow. Let the hate flow. Yeah. It's— everybody wants to set these hard and fast processes, but it doesn't— man, it's a very dynamic— and that gets into— well, especially when you start talking relational. Right? I was just gonna go there. That gets into the difference between transactional and relational.
I mean, it's a huge difference. How do you run a relational business? How do you take care of, you know, Mr. Jones on this, this, and this, but you're not going to take care of them on that? So I'll tell you how you take care of them. We just did it with a 6.4 Powerstroke. Everybody knows them. Well, this thing is a two-wheel drive, extended cab, long bed, liftgate on the bed, just a pile of crap.
And I'm like, all right. And I'm not trying to knock anybody else's truck. It's their truck, I get it. But we know chances are whatever's wrong with that truck is going to cost more than the value. It's going to total the vehicle. So I go in almost every time. They're old enough, it's almost every time. Yes. And that's so— so Adrian was like, don't you dare put— because Adrian loves the 6.4s.
He loves them. Um, except his just blew a head gasket like they do, which the repair, if he had to pay for it, would exceed the value of the truck. 100%. Just 100%. He actually, actually, depending on what trim package it is and layout of the bed and cab, maybe even the bolts in the head gasket might totally be fine. Sorry, Adrian, don't hate me.
I think it was Zeb. I made a post about that 6.4 and he's like, bro, if that thing needs a cab bushing bolt, it's totaled out. Yeah, right. But then the guy, he dropped it off after hours and I hadn't talked to him. I didn't even know the truck. And I find the key and I go look at it. Turn the gauge on or the battery on so I could see the— get power onto the dash.
It's got 430,000 miles. And I'm like, there ain't no way this runs. Turn the key and it fires right up. And I'm like, son of a bitch. What were the chances? All right. But it's got a gaping oil leak that we think is the rear main. I bet it is. But it's probably the upper oil pan and the rear cover and everything else.
Oh, you got to take off the damn fuel cover to do that. So with those, that was a long way of me saying, Luckily with those trucks, the repairs are so expensive that even if you, you know, you don't want to work on it, you won't have to because once you quote it correctly, nobody's doing that. They're not going to do it once you quote it correctly.
Or, you know, maybe not in the case of that one, but many of them— that one at 400K was probably on its third engine, I'm sure. At least. At least, you know, once you pull the oil cap off, nobody wants to do the proper repair. That's how we take care of them though, right? Like we're talking about a relational and being— how do we take care of these people?
Being honest. And don't fix this truck. I was just telling, I was just telling somebody earlier, a coach would choke our front end. We tell more people to go trade their vehicle in. Some of these coaches, they would lose their mind. Reagan, uh, probably 2 cars a day, we advise people to just go. I do it all the time. Yeah, I do it all the time.
Go trade it in. Again, I got a lot of friends in the area too though, and it's— you're gonna be $3,500 now, and that's just, that's just fixing this problem you have. These things have this, this, this problem. It's like clockwork, you're gonna be dealing with it. Yeah, move it along. Yep. I have a friend of mine, he brought us a 2011 6.7 Powerstroke, nice Lariat.
He bought it new, black on black, good looking truck, but he bought it new, 230,000 miles at this point. And he's like, yeah, it's got oil leak. And I'm like, okay, let me crawl under there. Front cover, vacuum pump, oil pan, I mean, it's leaking literally everywhere. Engine out reseal type of oil leak, brother. This is an engine out job. It's going to exceed the value You're pushing the value of the truck as is.
And he's like, what do I do? I need— I like my truck, I want to fix it. I said, I said, my best advice is don't touch it. Sell it for whatever you get for it and go get you something new. Just move on, right? And he— so he comes pulling in, I don't know, it was a week later, and he's in a nice new black King Ranch and all that.
And, uh, I was like, oh, you get rid of the truck? He goes— and then the truck comes in behind him, it's his wife driving it. I go, what the hell is that doing here? He's like, they wouldn't even take it on trade. And it's a nice truck. It's just old. It's just too old. And so Reagan drives it now. She bought it from him and she drives it.
And we just, we just keep oil in it, right? Like, I'm not gonna, I'm not gonna fix it. It's not worth it. But that's— we were honest. And man, he, he thanked me for that, right? I didn't take any money from him, but I did you right. And so that's— I'm good with that. I'm good with that because it's just better. I love it.
I couldn't imagine fixing that truck and then it drops a lifter or it spins a bearing or it does whatever they do because it's got the kind of miles. Yeah, our 6R140 is durable. Yes, that many miles, who knows, it could go tomorrow and it shouldn't surprise anybody. Yeah, yeah. But it's been great having you on here. Yeah, dude, it was cool.
This is awesome. Yeah, we should do it more. What's that? We should do it more. We definitely should do it again. We'll do a round 2 sometime. We should definitely talk more shit too. Definitely talk more shit. 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 enjoy 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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Ep 124 - James Hornak & Nathan Ward | These Shop Owners Are 14 Months In and Pacing $1.5 Million
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Ep 123 - Caleb McElmurry | When Should a One-Man Shop Hire Its First Technician?
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Ep 121 - Marketing Call #2 | Are Your Advisors Accidentally Turning Customers Away?
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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.