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Confessions of a Shop OwnerAugust 25, 2026 · 64 min

Ep 112 - Coaching Call #20 | Mike is Going to Charge for Diag??

Shop ManagementCustomer ExperienceMarketing & GrowthHiring & Training

Now playing — Confessions of a Shop Owner

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About this episode

Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HEREASTA is coming up September 24-26 in Raleigh. Be there or be square,…

Key takeaways

  • —Free diagnostic services can drive car count but may lower closing ratios.
  • —It's crucial to celebrate team successes to maintain morale during growth challenges.
  • —Understanding your effective labor rate is key to improving profitability.
  • —Targeting the right customer demographic can enhance marketing effectiveness.
  • —Regularly reviewing KPIs helps identify areas for improvement and growth.

Frequently asked

How can I effectively manage staffing as my shop grows?
It's important to assess your revenue per employee and ensure that any new hires are justified by an increase in business. Aim for at least $20,000 in revenue per employee to maintain profitability.
What strategies can I use to improve my shop's closing ratio?
Focus on qualifying customers and vehicles before offering promotions. Implementing a structured diagnostic fee can help filter out less serious inquiries and improve your closing ratio.
How can I celebrate my team's successes effectively?
Regularly acknowledge achievements in team meetings and consider hosting celebratory events, like catered lunches, to boost morale and reinforce a positive work culture.
▸Full transcript

You know what my loss leading methodology is, and we can talk about it because it's one of my favorite rage bait topics for the podcast, right? Is free diag. Um, and I do free diag to drive car count, but this store doesn't need car count help. This store has all the cars. Can I charge for diag at one location and a mile and a half away not charge for diag at the other location?

100%. You think? I know McDonald's does it. McDonald's runs regional specials. The following program features This show features a bunch of doofuses talking about the automotive aftermarket. The stuff we or our guests may say do not necessarily reflect the beliefs of our peers, our sponsors, or any other associations we may have. There may be some spicy language in this show, so if you get your feelings hurt easily, you should probably just move along.

So without further ado, here's your host, Mike Allen, with Confessions of a Shop Owner, presented by TechMetric, the best software in the history of ever. Ever. If you're still thinking about the shop at 10 PM, you're not alone. You're replaying the day, wondering what got missed, what still needs follow-up, how the numbers look, and whether anything is waiting for you first thing tomorrow morning.

That part of being a shop owner gets old really quick. TechMetric is built to take some of that off your plate. It brings you shop management, payments, and marketing together in one place, so you're not piecing things together at the end of the day trying to figure out where everything stands. Your team has what they need to keep things moving, your customer communication doesn't stall out, and you have a clearer picture of how your shop is actually performing.

See how it works at tekmetric.com. That's T-E-K-M-E-T-R-I-C.com, or tap the link in the show notes. ASTA Expo 2026 coming at you September 24th, 25th, and 26th, just around the corner. If you've been hiding under a rock and you don't know what that is, it is only the very best networking, training, and trade show event in the country, or at least east of the Mississippi.

So I believe that you need to be there. It's bigger every year. It's better every year. And to top it all off, Confessions of a Shop Owner is hosting the hospitality suite for the 2nd consecutive year. If you hadn't heard, it was the best freaking hospitality suite in the history of the automotive industry, hands down, no doubt. And if you also haven't heard, we are giving tickets away to the expo this year.

The podcast is, thanks to the generosity of our sponsors. Astausa.org to learn more and to buy tickets. Be there or be square, dog. I did just realize that I made a mistake. I did not get anything to drink pre-recording, and it didn't even have to be booze. I just need something to you know wet the whistle so that I don't get all parched.

Doesn't even have to be booze. I mean, it doesn't even. It typically is. But it doesn't have to be. We are recording during the workday right now, so it is not 5 o'clock. What did Jimmy Buffett say? Somewhere it is in Paris right now. It is prime wine time. So, you know, there is a direct flight already to Paris. I did not know that.

Yeah, absolutely. You can just hop over for— hop over for dinner and be back in the morning, you know? Yeah. Are we doing that? Uh, I mean, I feel like that that's a little bit too romantic for you and I. Uh, you know, our, our relationship isn't about romance. It's just about— definitely, you know, it's just about getting things done. So, I mean, by we, uh, you know, I was more or less giving the royal we.

When are you doing that with you and Amanda? When are you hopping on the plane and doing that? Not, not we as in me and you. I didn't know that you spoke in the royal we, but now I know. How you doing, man? Doing great, man. Hope you are. I am. I just had a conversation with my children about how I don't care that you've been home all summer and that you've been tasked with making sure the dogs get to go out on a regular basis.

It's not okay just to leave the back door open all day when it's 95 degrees outside. Um, because I got a $734 power bill. Um, that's always fun. Wait till you pair that with a $1,000 water bill. How do you get a $1,000 water bill? I don't know that it's $1,000. That might be a slight hyperbole. But my wife got— we have deer that get in our yard at night, and she has nice flowers that she works really hard to keep up in the garden out front.

And she got one of these solar-powered sprinkler systems that has a motion detector on it, that when the deer come, it sprays them with, you know, water and runs them off. Well, the problem is gnats set it off. A slight breeze sets it off. A shadow from a cloud sets it off. So when we were going through this wonderful drought, when everybody else's yard was dead, you know, I got a I got a full-on Amazon jungle out there that's getting mowed twice a week, along with whatever the water bill is.

You know what, you just need to get the NVGs and the rifle out and just hang out on the back porch. And I'm not allowed— our, our, our yard is an animal safe zone according to my wife, because I do, I do hunt. And she has told me that rabbits, deer, the only thing I'm allowed to kill is snakes and rats, which we don't really see very often, obviously.

You know, a deer is a forest rat. I mean, I, I— that's a good point, Mike. So we should, we should go out to dinner with our brides, and I'll convince her that you're allowed to kill Bambi in the front yard, and what— and, and the kids have to watch you clean it. And now our older neighbor that lives beside us, she begged me to kill him because they've been eating all her hostas.

And she says, you can kill him anytime you want to. But I figured, I said, you know, that's going to be a weird scenario where, you know, because they're— they don't die instantly. Anybody that's ever hunted before, you know, it's, it's kind of a— you're not— we're not shooting a rifle in a neighborhood, so we're probably bow hunting here. And when you shoot them with a bow and arrow, they, they run, and then it takes some time for them to expire.

And I said, here, it's gonna happen. It's gonna run across the street into the neighbor's yard that has 3 little kids that are under the age of 7 years old, and it's gonna die right on their front porch screaming and hollering. I said, so we're probably taking that off the table. We're not going to traumatize the neighbors. You get like a .300 Blackout and put a can on it, it'd be pretty quiet.

It's about like a .22. People— I'm not worried about the noise with the rifle. I'm worried about the the neighbor's house. Details. So anyway, how's business? Business has been good. It's been a, uh, it's been an interesting year for us. We've had some, a lot of growing pains, which is, you know, is good. You know, I'd say all of our months this year except for 2 or 3 have been either record months or would have been record months last year.

Um, which is great, but, you know, there comes a little bit of pain that comes along with that and, and trying to, you know, tidy up some of our core processes that don't really fit the volume that we're doing now. And then trying to figure out the best puzzle pieces of the team to put together, um, to be able to still provide the same level of customer experience that we're used to providing with the volume that we've pushed to here in the last 8 months.

I gotcha. It has been an interesting year for us. Um, I know that we're going to talk about July, uh, at the Hillsboro Street store here in a little bit, but we've finally kind of gotten some momentum digging our way out of the hole that was the last half of '25 and the first quarter of '26. And, uh, in the last 4 weeks, we've had 4 new hires, and they've all been additions.

Nobody's been a replacement of anyone. Um, and so that's been good. Uh, so we're getting— starting to get back to the staffing levels company-wide that, that we want to be at. Uh, but it's kind of a seesaw, right? As you add people, you need to add car count. As you add car count, you, you got to add the marketing budget to make the phone ring and get the cars.

And so Um, I've got a call tomorrow with, uh, TurnKey to talk to them about, uh, adjusting kind of our budget as a percentage of expected revenue to, to drive a little bit more phone traffic and cart count at the big store, which is where we've been doing some of the additions. So just, it's a neat puzzle, you know, you got to go in and work on it every day, something different.

So yeah, and it's, you know, one of the things I tell my clients is, you know, and when I started in this, you know, I thought to myself, man, if I just get to a million, everything will be easy after that. And then you get there and, you know, you're like, man, if I just get— once I get to 2 million, everything will be easy after that.

Then you're like, well, once I get to 3 million, it'll be a breeze. And at every stage, you know, at every stage of growth, you just unlock new problems that you didn't have before. And so it's, it's a never-ending— it's a never-ending cycle. And, um, which I mean, which is what keeps me you know, keeps me going with it. Uh, if it, if it was easy, I'd probably just wrap it up and sell it and move on to something else because I just, I get bored too quickly to, you know.

But that's what I love about our industry so much. It's, you know, anytime you're dealing with retail and, you know, the challenge that we currently have in the marketplace just with employment, and, uh, it's a, uh, it's a unique puzzle piece that we, you know, that we have to solve just to get to the next level. And then when you get there, not necessarily rebuilding, but you're reshuffling and, and trying to figure out the you know, how to climb up to the next step.

So it's been, uh, it's been a fun year. It's been a challenging year. But, um, you know, it's one of those that it kind of feels like it's been worse than what it was. And every time we had to have a reset last week, and we had a nice— we had a steak lunch, you know, went and catered out some steaks and everything.

And I was like, look, I've, I've done a bad job of coming in here and reminding you guys how, how much of ass we've kicked this year. Because, you know, we've sat down and talked about all the things that we could have done better for, you know, so much. But, um, you know, we kind of did a reset and took a look at each month as it was and, you know, celebrated some of the personal wins that we had inside of the company.

So it was a, it's a good little exercise for us to do because sometimes I get too focused on, you know, where I want to be and not celebrating where we are and where we've come from. Yeah, I, um, I think I'm guilty of that as well sometimes. Uh, I feel like, like Monday We had, uh, like the store that we talk about on, on these episodes had a great week last week, um, and, you know, blew the goal out of the water.

And, uh, and, you know, so we were celebrating that a little bit on Monday and, uh, in our, our morning team meeting. And then I immediately went into something that we didn't do great last week and that we should be working on more. And I'm like, am I being too focused on the, the shit that we fall short of and not celebrating the wins enough?

Um, so striking that balance, I sometimes tend to hyperfocus on, on areas where we can improve rather than, you know, recognizing and supporting the areas where we succeeded. Yeah, and it's, it's definitely a challenge for me, um, you know, as a numbers guy. And I think the more of a numbers person you are, that, that's a, that's kind of the trap that you get into is, you know, we get hyperfocused on the numbers and the KPIs and um, you know, what the spreadsheet says it should be, and, and we lose touch of the human aspect of it and making sure that we're being there to support everybody, you know, the way that we should as

a leader. And, uh, I know that's definitely— that's 100% my shortcoming, and, uh, it's something that I try to, try to reset back on every now and again if I can. Sure. Well, so what can I tell you about Car Fix? Yeah, so kind of my agenda for today, um, I'd like to, you know, we're— hard to believe, but, you know, we're, we're closing in on the end of Q3, uh, which means we have Q4 popping up on us pretty quickly right around the corner here in September.

I know that summertime is usually your downtime because of just the dynamics of your customer base in your area there with it being a college town and the students being out of session there during the summer. Um, you know what drives me crazy is scrolling my social feed, and obviously I follow a ton of shops like a lot of you do, and you see the exact same image, generic photo, generic holiday post, or whatever it might be across 40 or 50 shops around the country because none of them have unique to their business material.

That's not building a brand. Nobody's ever won a customer with a generic Labor Day social media post, right? Look, I've personally been watching 47 and what they've been doing for Greg Buckley at Buckley's Auto Care in Delaware, and I'm super impressed. That's exactly why I've made the choice to sign up with them myself in my business, because I want to dominate the community here in Raleigh just like the other clients of theirs are doing, like Greg is doing in Delaware.

If you want your shop to stand out, go to 47consultants.com/confessions. It's That's 47consultants.com/confessions. Tell them Big Daddy Mike sent you. And sorry guys, they're not going to do any free diag for you. 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. Repair help right now. We send them an email. As soon as they open the email, we then get their physical address, follow it up with commercial ads on all their streaming services like Hulu and YouTube and ESPN, Fox News, all those different things.

And then we also get their physical address and we start sending banner ads and display ads to every single device in that house. It has been incredibly effective. It has made shops seem like they're everywhere to those people who need repairs right then. And I mean, I'm telling you guys, the return on investment has been huge. So if you want to increase car count, you want to get great people in the door, give us a call or reach out to us and ask us about Direct Track Marketing.

And so I wanted to have a conversation about, you know, projecting out what that 4th quarter means or needs to be and what that looks like. And then how do we put a marketing plan together for next year that eliminates some of the valley that we have during the summertime? So I just want to talk about, you know, what the area is, how do we, you know, how do we fill in some gaps when those students leave.

And we have a couple clients across the country that, you know, that live in vacation areas that deal with the same thing, whether that be in, you know, snow you know, like ski reservation towns or down in Florida where it's, you know, snowbirds coming in. So there's a lot of people out there that kind of deal with that same seasonality and their customer base moving in and out.

Um, and then the last thing is, is I know you've added new staff members, uh, to that store because we were kind of talking offline. So I wanted to talk a little bit about, um, how we can set good expectations for that staff. And then also make sure that we tie that back to some of the numbers, um, that we're, that we're looking to get.

So, uh, we'll do a quick recap if you don't mind on kind of where we were last month, uh, with, uh, with the store, uh, on both the month-end reporting and the P&L side of things. Okay, um, so we'll start with month-end reporting because that's what I've got pulled up real quick. Um, just over 400 hours in labor build-out, um, 404. Um, that equated into, um, $114,900 and change, so just shy of $115,000 in revenue.

Uh, 217 cars at $530. Uh, and, um, you know, effective labor rate was $130. I know that's an area of, uh, an opportunity of improvement. Closing rate was 24%, which puts, uh, tech average quote or average written repair order, however you want to phrase it, at like $2,200 and change. So closing rate was pretty low, um, overall. You know, there's certainly opportunity there for more.

Um, as we were talking about, you know, that of our stores, that store, no matter who I've had in there, has always had the lowest ARO, and that I think is partially a factor of we're dealing with college students, right? And some of them have mom and dad's credit card, but a lot of them don't, right? So just the kind of the nature of the animal there.

But at the same time, we have easier— more cars more easily attained there than I have at any other store. So especially as a ratio of car count to bay count. So that's That's from the TechMetric side and reporting. Let me pull up QuickBooks real quick. So the 2 things that I'm most— 3 things that I'm most interested in with your, uh, month-end numbers there on the QuickBooks side, uh, what your total gross profit percentage was for last month, just what it said versus what, uh, TechMetric said, and then also what your operating expenses were Can do that.

I know that, uh, gross profit in QuickBooks is a little bit higher than it was in TechMetric, and I think that's a factor of, um, how labor gross profit can never be 100% accurate in, uh, TechMetric because it doesn't account for, you know, minimum guarantees and, and tiered Uh, you know, hybrid pay structures. Yep. Um, so profit and loss last month, percentage of income, gross profit was 57.8%.

Percent. So 66.6 and change, um, whereas in TechMetric it was, uh, 55.9%. So it wasn't too far off. It was off 2%. Yeah, 1.9%. Yep, I'm good with that. Um, total fixed expenses were, uh, $47,009, leading to a net operating income of $19,639. It was 17 points net profit, and that was frankly the best month of the year so far. Okay, and do we have any debt service that we're servicing on that business?

Let me go back to the balance sheet real quick. So the short answer is yes. What information, uh, just a roundabout number there. Um, what I'd like to do here and kind of what I'm trying to do is get the numbers that I need to for us to get a, um, a break-even to your net profit goal. Um, so we had a, we had a 16-17% net last month, which is, you know, which is strong.

I'd like to try to plan out for a 20% or better. So I've got a note that was, uh, Hunter equipment purchase for an aligner and a Road Force balancer and a tire machine. Um, and then, uh, my total debt service per month out of that store is about $5,000. Okay, perfect. Not counting rent and whatnot. Yeah, perfect. All right, all right.

So I'm just going to run through these, uh, these numbers again with you. We've got year-to-date gross profit Or what last month was anyways, at 50, 58%. Uh, average, uh, monthly operating expenses, we're gonna plan out around that $47,000 number. Uh, monthly loan payments around $5,000. We're gonna put a net profit goal somewhere around $25,000. That sounds good to you? Um, I've got you down as having 2.5 technicians.

Uh, I know when we were talking offline, you had an A-tech, strong A-tech, a strong B-tech, and then just a general service technician. Usually with those general service technicians, we're seeing somewhere between 50 and 70% productivity. Is that kind of what you think? No, he's like a 10 to 12 hour a week guy, but he's doing most— yeah. Okay, that's fine. Yeah, so the other 2 obviously are making up for that to some extent.

Okay. Yeah. All right, so hours, uh, worked per technician, I'm assuming they're on a 40-hour schedule? 40 to 45. Okay, so 42.5. That'll work. You guys are just open Monday through Friday, right? Yes. Okay, only evil shop owners are open on the weekend. Well, you've crossed the line, Mike. Uh, looking at last, last month's numbers, we were averaging around a $530 ARO.

Effective labor rate was $130. Um, if you'll just verify this for me, I'm assuming a parts-to-labor ratio somewhere around 52%. Hold please. Uh, with tires, it's almost exactly 1 to 1. Okay, I had $55,000— I had $56,000 in labor And, um, was that 58, 59, uh, between parts and tires and batteries? Okay, so we'll call that— we'll call it 50/50 and be done with it.

Alrighty, and closing ratio is at 24%. We're going to have a conversation about that as well. Um, current monthly sales is at 115 from last month. So, um, what I would like to see is kind of breaking down, uh, with all of these numbers, we're able to get a break-even analysis with net profit added to the goal. So to get a break-even, I know we've talked about this before in some of our earlier episodes, but this is, this is good to rehash over.

Uh, to, to get a break-even, we need to know what our gross profit percentage is. We need to know what our monthly operating expenses are. We need to know what our, our debt service is on a monthly basis, and then what our net profit goal is. If we have all of those things, what we can do, we're going to add together our average monthly expenses for operating expenses, our loan payments, and our net profit.

So when we add all of those together, we wind up with $77,000 dollars is what we would need to generate in gross profit dollars to overcome our operating expenses, our debt service, and generate that $25,000 of net profit. Okay, um, then we take that $77,000 and we're going to divide it by our current standard of gross profit percentage at 58%. And when we do that, we get a total of $133,200— $200, we'll call it $250,000 for monthly revenue.

Okay. And that puts you at a $25,000 net on $133,000, puts you at 18.8%. We're just too close to 20%. I'd like to go ahead and bump that up a little bit. Um, I'm probably going to try you at a $30,000 net, and that gets us to 21%. Okay, so if we do that, um, that, that leaves us with a, uh, GP requirement of $82,000 and a monthly requirement of $140,000.

Okay. So could I then say, well, here's what my labor inventory looks like? Or do I— so that's what we're going to do next. We're going to back into, is it even possible to get to those numbers with where we are currently at with our staffing levels? And if it's not, then we, then we can back down, obviously. So what Mike's asking there, essentially what you're asking is you have 3 technicians that only have a certain amount of available labor inventory.

For capacity, and we need to figure out what we can sell for their capacity to be able to, to generate that. So from a billed hour standpoint, we would need to generate that 20% net— we would need to bill out about 10 hours per day per technician. All right, so, so my gross sales per hour last month were $286. So $140,000 divided by $286 is 489.5 hours a month, which is, uh, 114 hours per week, which is very doable with the team that I've got there.

Okay. That's not the direction you were going. That's not how your formula is written, but we're coming to the same conclusion. That's fine. Yeah, we're coming to the same conclusion there. Um, you know, I take a look at it and say, you know, yeah, so our, our— what we would do to get our billed hours there is, um, you know, we're trying to factor in our, our parts-to-labor ratio there is 50/50, right?

So we're taking that ARO and saying that you know, $250 of it is parts, $250 of it is labor, right? Because you gotta— you got just over a $500 ARO. Um, so then with that, we're dividing out that $5, you know, that $250 by our, uh, effective labor rate, which is $130. So we'll do that math really quick. If we did $530 divided by 2, and then did— that's $265.

We're going to take our 265 and divide it by 130. That gives us— we're averaging 2 hours per RO. Um, yep. And so if we know that we're averaging 2 hours per RO, then we can figure out from there how many, um, how many build hours it's going to take, how many cars we need, and, and then how many, uh how many total inventory hours it's going to take to be able to generate those cars.

So what I'm looking at here is we're looking at about, um, 127 build hours per month to be able to hit that, which is about 120% productivity. But kind of when we were talking off camera— I'd say that again— I'm looking at about, I'm looking at about, um, 120, 127 build hours per month. I'm sorry, per week. Per week. I'm sorry. Okay.

All right. All right. There we go. Sorry. Per week. 127 build hours per week, about 545 per month. Okay. I know how you came to that. I came to 490 per month by dividing the target sales by my average sales per hour. You came to it by parts-to-labor ratio. So if our numbers are that far off, then that means that my parts-to-labor ratio, I reported it inaccurately to you.

So it's possible. Yeah. Yeah. Okay. But 500 hours a month is going to get us in a good, in a good, healthy spot. Yeah. So we'll change that really quick. Let's just make it 55%. See. So that brings us down to 139 build hours per week. Hold on, let's do— that's gonna bring us down to— yeah, so we're right at about 120 build hours per week, um, with about 500— right at about 520 per month.

Um, if I put us at a 48%, because you're saying— what you're saying is you're probably slightly heavier on the parts side once you add in tires and everything else. Batteries. Yeah, yeah, I think so. That's got to be where the— that's the only— we went about the math in 2 different ways, and that's the only thing that could diverge to cause that difference.

So that makes sense. I agree. All right, so we're going to put you at a 45, you know, 45-55 ratio parts to labor. Uh, with a heavier lean to the parts side. Um, and that's going to put you at about 491 hours per month with about 114 hours per week. Um, which that's very doable because that's putting you at 8.9 hours per technician per day or 107% productivity.

Yeah. Um, which I think is doable with these guys. With these guys, 100%. Yeah. So what I'm hearing you say is, uh, I got no excuse for not putting $25,000 to $30,000 in the bank every month with this crew. I feel very confident. We talked about this last year. Um, you know, I love the size store that you have. I think it, it's set up to keep overhead low.

I love the location that you have because it drives car count without you having to spend a lot on on advertising for it. And so I'm a, I'm a big fan of this location for you on paper. And it should be a, it should be an easy to manage money printing machine. Great service advisors are not born. They are trained, coached, and developed.

That's why Elite Worldwide created the Master Service Advisor Program, an intensive 3-day training happening September 10th through 12th in Dallas, Texas. This class is built for service advisors who want to elevate every part of their performance. From customer communication and relationship building to presenting recommendations with confidence and increasing overall sales right away. You'll learn proven strategies used by top-performing advisors across the industry while gaining practical tools you can immediately apply in your shop.

Whether you're looking to improve your confidence, increase your effectiveness at the counter, or become a stronger leader for your team, this program delivers the training and support to help you succeed. Join us in Dallas this September to take the next step towards becoming a world-class service advisor. Hey guys, I'm here again to talk to you about another awesome feature from the guys over at Detect Auto.

I've been talking to you about Detect Auto for over a year at this point. You know that I'm a huge fan, but they keep rolling out new features. They keep adding value. And the latest one that they've built is they built an internal chat system that goes along with the software. And it's like if you've ever used Slack or another tool like Slack, it's very similar in format to that in that every time you open a repair order, it's going to create a new channel within their internal chat system specific to that repair order that includes the people that need to be a part of that repair order's communications, be that technician, service advisor, shop

foreman, dispatch, whatever. You know, you set the rules for that. The cool thing is that it also archives those chat histories and those comm histories. So in the future, you can come back and you can see all of the comms that have been had internally about Miss Jones's Subaru, even any, any of the chat about that customer specifically. So it's just a really neat tool to one, have clearly siloed internal comms and also to archive them and save them historically so that you can find them again in the future.

I know that I've had issues in the past where we can't remember what was said about or what the comms were internally about vehicle X. And you go back into your— we use Slack— into your Slack thread and it's thousands of messages ago. This eliminates that problem. So it's just one more tool that the team at Detect Auto are putting in place to help streamline your business, make you more efficient, help you serve your customers faster and more effectively.

If you want to learn more about Detect Auto and the other awesome features they have, Just check the link in the show notes. Tell them I sent you. Um, and I don't think that you've done anything wrong with it. I think you've had some turnover in the greater, or, you know, greater side of the organization. You try to move pieces around to, uh, to make up for that.

And this is the smallest location that you have, and therefore it, it appears as if it's the least important, you know, sometimes because the other ones, uh, have so much more capacity. And sometimes I can kind of ignore it. I can kind of ignore it and not pay a lot of attention to it and not give it a lot of TLC, and it still does— it still makes a little bit of money, you know.

Uh, and if I just paid a little bit of attention, I feel like it would do really well. Yeah, so I mean, it's a 30% store for you once you get it dialed in. I feel very strongly about that. Um, so I know we wanted to talk about— so again, let's, let's go through and talk about some of the other KPIs just to, um, just to put a plan together for that.

So your breakeven sales, uh, per, per day, we need, uh, $4,100 in breakeven sales, uh, $21,000 for the, uh, for the week. And we're looking at $90,000 in breakeven sales, um, for the month. For the month. Yep. All right, again, I think all of those are very doable. Yeah, um, for sure. So the only other one that I'd like to highlight with you is, um, GP per build hour, making sure that the team understands what the target is there.

So, and I know you're— I know you understand the concept of GP per hour. We've talked about it before. But just to make sure, if somebody— this is the first time they're listening to it and they haven't heard it, gross profit dollars per billed hour is going to be total gross profit required divided by the estimated number of billed hours that we have.

And that's going to give us what our target for GP per billed hour should be. So based off the math that we've done here, we're looking at $167 of GP per billed hour as the target. Another fun thing of math to do would be to take our operating costs per billable hour, which we can do with our— we can add in our $47,000.

So we have $52,000 between our debt service and our operating expenses. And we can divide that out by our Labor inventory. Our labor inventory, which we're saying we're looking at about 490. Mm-hmm. So that's $106 of operating expenses per billable hour. So that means anything below one, you know, anything below $107, you've, you've officially, you effectively lost money on the job. Um, and so great tool for service advisors to use.

A great tool for, for business owners to use and managers to use just to make sure that we're positioning ourselves to be profitable. So when we add in that net profit target and the GP that's going to be required to hit that net, that's where we get that, that extra $60 from to get to the $167. So essentially you're hoping to make $60 per billable hour off of everything— parts, labor, the whole deal.

Right? Yeah. Um, which sounds a hell of a lot, a hell of a lot less sexy when we break it down like that, right? But I mean, that's the reality, you know? It is. And so, um, I know that it's killing you not to beat me up on my effective labor rate, but, uh, you know also kind of what's digging into that.

But it would be a lot easier if I had the exact same car count and everything, uh, without some of the loss leaders that I do, for sure. So my only concern with it is I don't like seeing that and a 23% closing ratio. That's right. Yeah, right. Because I mean, the whole reason that we're doing that is to help out the closing ratio, right?

Because we're— well, we're doing that to get car— yeah, we're doing that to help out car count, uh, but I think it's gonna naturally also drive down close ratio to a degree because it's gonna pull in some cars that are just shit piles that we total. You know, that we end up giving them an $8,000 estimate and, and, and they don't fix anything, right?

Um, whereas, yeah, I recorded yesterday with a guy whose episode won't probably be released until October, but, um, he's a mobile guy and his deal is the van doesn't show up until they've already put a deposit down for $250. That's his, that's his base diag fee and it's $250 to show up. And they've paid it before he shows up. And so we think of, uh, mobile guys as dealing with a lot of bottom feeders, but he weeds out all the bottom feeders before he ever puts the key in the ignition to his van, right?

Um, or a lot of them. So, um, I think I've driven down my effective labor rate to drive up my car count, uh, but it also has driven down my close ratio some. Does that track or is that just me making excuses for mediocrity? It shouldn't be that low. And I understand what— so the answer is yes, that can happen. Again, and we've talked about this in the past, I think if that is happening, there needs to be a real conversation at the front counter about what is our avatar vehicle.

And, you know, so There's nothing wrong with— there's nothing wrong with running ideal customer promotionals, right? In other words, your free— your free loss leaders don't have to be for everybody, right? You, you get to pick and choose your criteria to be able to, to partake in this free loss leader, right? Um, so if you identify a segment that's just not it you know, when you're— whether it's car or customer, um, you know, you can start putting parameters on it.

Um, so I'm, I'm very aggressive with loss leaders as well, but we put those loss leaders around a parameter of what, what we're trying to drive into the store. And so I'm not going to do a big loss leader on a car that I know— we don't do any Euro work. I just gave up on it. We, you know, I might— we might put a set of brakes or a set of tires on it for you, but I'm not touching anything else.

It's just not happening. Yeah. Um, and so Why would I do a loss leader for a customer that has zero potential opportunity for me as a business? So we just put in our— all of our promotionals that these cars were excluded from this offer. Um, so something that you might want to look at doing. And again, we talked about doing an audit, uh, on— we called them push cars where, you know, we're seeing those diag come in.

Um, we did a, you know, we did the free hour worth of diag for them. We wrote up this exorbitant estimate which killed the car, its engine, transmission, drivetrain related in some way, shape, or form, along with everything else we find on the multipoint inspection. And they said no, and we pushed it out and they towed it away, right? So if you, I think right now you feel like that's the problem, but I would put, you know, I would put the work into finding out if that is the problem or not.

Um, and if it is, again, just some, some simple things in there as far as who we're presenting these offers to, uh, might change that. And what you're going to find is, is that it, it helps raise your effective labor rate. Uh, it helps reduce some of the time sucks that you have, so it'll increase your productivity, uh, because those push cards, there's a lot of productivity loss across the front counter and in the shop.

For a car that comes in and gets a testing service only or an oil change only and nothing else, right? Yeah, for sure. And I'm just looking at, uh, you know, this month, $0 cars, and we're— I don't know, we're 110 cars into the month right now. Um, I've had 23 tickets bill out That's a lot. Yeah. Um, and so, yeah, I mean, I would want to do an audit of those 23 and figure out, I mean, what kind of cars are, are they, you know what I mean?

Are we bringing in 1995 Nissan Maximas, you know, and it's just they're, they're already on their last leg when, you know, last leg when they get to us, you know? We're not hospice for cars, you know. We can't. Yeah. Do you have an age limit on cars in your shop? So we do. And, you know, again, we talk about it in the scientific definitions of, you know, there's rules and laws, and law says that we will never, ever, ever, ever, ever break this rule.

And a, a rule is a rule of thumb. We don't like to break it if it's at all possible, right? Yeah. So we have a 20-year rule on cars. Um, will I work on something older than a 2006? 100%, but it's going to be for the right customer, correct? A known buying customer or a car that you've been working on exclusively since before it was 20 years old?

Yeah, yeah. We have a client that's got a 1998 Honda Passport. It was his daughter's car in high school. He's emotionally attached to the vehicle. We begged him not to fix anything on it for the last 5 years, and he continues to just you know, play trash can basketball with $100 bills, uh, on this '98 Passport. Um, if he was a first-time customer walking in the door, we wouldn't touch it, right?

But, you know, we have a known good relationship with him. We've had this conversation several times. He understands exactly what the situation is. We begged him not to because we can't even find good parts for it anymore, right? It's just a— um, you want to hear a mistake that I made today? Tell me. I love hearing other people's mistakes, Mike. I got a customer who— so he's a first-time customer to us, but I've known him for a decade or more because I do business with his small business regularly.

I'm, you know, I've done— he owns an events facility, and I've hosted events there for the company. I've hosted events there for the Chamber of Commerce. You know, I've spent a lot of money with his organization over the years. Well, he's got a 15-year-old G63 AMG wagon that he brought in, and he's had a small equipment mechanic that works for him working on it.

And it's, it's in a bad way, and it needs $5,000 pretty much to be able to roll safely. Uh, and I haven't had anything to do with it. I've known that it was here. And he hasn't talked to me and I haven't talked to him. Well, he called me today to ask about working something out in trade so that we can do that because it was a lot more than he was intending to spend on the vehicle.

And I was, I was like, I mean, are you just going to get rid of it or what's the plan? And, and here's the thing is, I know he's going to spend $4,500 and expect it to be a brand new $150,000 G-Wagon. And it's not. I mean, it's got all the other problems that come with a 15-year-old G63, right? And, and it's— I should— I shouldn't be fixing it for him, but I am.

So, but it's— hey, it's under 20 years old, so I guess Well, you're a nice guy, Mike, uh, and very few good deeds go unpunished. Yeah, so when next we record, we'll talk about how the AMG went sideways. Um, but I did agree to work out a deal and trade for him for at least a portion of it. So $3,000 of it is being worked out in trade.

So not only did I make a poor choice, now all my service advisors are mad because it's, uh, cutting a lot of gross profit out of the, out of the week. So I'm, uh, I'm very sure it's gonna be a mythic. Alrighty, so sorry for the distraction. No, you're fine. Um, so let's talk about capacity a little bit. Um, we talked about putting our goals together for, you know, for next quarter.

Uh, so kind of we've settled on somewhere around that $140,000 a month, uh, trying to get us, get us over that 20% net profit. Um, if we take a look at 3, you got 3 bays there, right? Yes. All right, we have 2.5 total technicians, or 2, 2 really quality technicians, and then with a GS, uh, we're working 3.5 because I have one left outside.

Okay. Okay. All right. And then they're working on average somewhere around 43 hours a week. Yeah, we got 5 workdays. What is your posted door rate there? $216 and change. We got to work on that erosion. I know you know that. I didn't want to tell you because I knew what your reaction was going to be. That hurt my heart a little bit, Mike.

All right. So, but I mean, here's the cool thing. If we take a look at, and this is, this is assuming that we're 100% productive, that we're getting 100% of our door rate, which obviously we know that we're not, but this looks at what our utilization is and the capacity of the space that we have. And so if we were able to operate, we have 3.5 bays.

If we were able to operate with 3.5 lifts with 3.5 technicians, so if we added one more technician and our GS was floating right now, so we were maximizing 100% of what we had, we're gonna keep that same 45 to 55 parts to labor ratio. That puts our annual sales capacity— again, not saying this is your goal, but this puts you at an annual sales capacity of $3.7 million.

Yeah, capacity calculators are just mental masturbation in my mind because they are— anybody who's operating at full facility capacity, uh, I think you do. I think you do. There's not many And I don't think it's not the importance of this to set that 3.7 as the goal. It's the importance of this exercise to say there's still meat on the bone. Oh yeah, for sure.

Right. Because there's, you know, especially at a small store like yours, we get wrapped up into, you know, limiting thoughts of, well, this is all this store will ever be able to do. Right. Do I think you're going to capture $216 an hour? Of your door rate as your effective labor rate? Probably not, right? It's probably not going to happen. Um, let me back up and punt and ask you this.

You know what my loss-leading methodology is, and we can talk about it because it's one of my favorite rage bait topics for the podcast, right? Is free diag. Um, and I do free diag to drive car count, but this store doesn't need car count help. This store has all the cars. Can I Charge for Diag at one location and a mile and a half away not charge for Diag at the other location.

100%. You think? I know McDonald's does it. McDonald's runs regional specials. It's a really small region. Do what now? I said that's a really small region. Okay, so in Roxboro, which is a really small town, there's 3 McDonald's. They only run the corporate specials at the main brick-and-mortar store. The other ones are inside other locations. Okay. All right, so there's, there's one inside of a gas station.

How that happened, I have no idea. One in a Walmart, I'm sure. One in a Walmart. Okay, it's Roxboro, man. Of course there is. So those other 2 do not run the corporate specials, and they're all inside of the same town within 3 miles of each other. I gotta question your dietary choices that you know the pricing variances between the different menu boards at different McDonald's.

It's not my dietary choice because I don't eat fast food. Uh, I've just had this conversation before. I drove around Roxboro one day just checking the McDonald's menu board so you could make a point. I love it. Um, maybe that's an experiment worth running is, man, but I've spent 2 and a half years driving into the skulls of everyone in the organization.

This is how we answer the phone and this is how. So it's gonna, it'll be heartbreaking if it works great. And if it doesn't work, then pulling it back will be a hot mess. Well, and I think there's a middle ground there. Um, and again, I think the middle ground is let's find the ones that it works for and offer it to them and not offer it to the ones that it does not work for, right?

Um, I mean, how many industries qualify customers with a credit score? And I'm not saying that that's what you're going to do. I'm just saying I can't even go— I can't even go apply for a loan for anything without doing my credit score first. And without— now, if I have an 850 credit score, my interest rate's better, right? If I've got a 420 credit score, I'm not even getting a loan.

It doesn't matter what the interest rate is, I can't get one. So every single— I mean, almost all industries are going to operate off of some sort of customer qualification. And the higher qualified the customer is for what we're trying to sell, then the more things I'm willing to give them because I know I'm going to get it back, right? Yeah. And so I think, I think there's an opportunity here to do some of that.

I also think there's an opportunity to split the gap there and say, hey, I'm not going to do full-on first 1 hour of testing for free, but I can do a free consultation, 10-minute no wrench. Yeah, you know, something along those lines. You know, hey, you'd be surprised how many times you know, we pop the hood and there is a blatant failure that we can see right there with the flashlight that doesn't take any type of inspection or testing or equipment or anything like that.

So I mean, I don't think there's anything wrong with that. That still gives you some component of free. And then I also don't know that— I know that diag charges are a barrier in our industry and I get that. But I don't think they're a barrier in every market. You know, like I found that in my market that they don't necessarily care too much about the diag charge.

You know, they're willing to get that. Now the repair, the repair size is a little bit different. You know, the repair order averages, you know, but the commodity items are things that they, they're very price sensitive on. You know, they know what an oil change costs, they know what a brake flush costs, they know what brake pads and rotors cost, they know what an alignment costs.

You know, those things that they see plastered over every single, um— wait, is this where we talk about commodity flushes again? We're not going to do that again because you're gonna, you're gonna misquote me and rage bait me all over again. I'm gonna cut— Braxton's gonna cut a clip totally out of context without the full conversation. Yeah, and I'm gonna, I'm gonna be the scourge of the industry that's, uh that's sucking out fluid and putting in water.

You are the problem with this industry, man. You are the problem. But I mean, I, you know, I just, I, I feel like I don't think you have to go, you know, my wife tells me I don't have a dimmer switch, and I think there's some of that with you. You know, there is some, sometimes there is some middle ground, uh, and I think you're in a position where if you could find that middle ground and we could get that effective labor rate up to $155, um, there's a massive increase.

Well, everything else is way easier if your effective labor rate and your gross profit per hour goes up by $30, you know. Yeah. Um, so I mean, there will be fewer cars, the closing rate will go up, the ARO will go up, and the car count will go down. But let's take a look at— let's take a look at what that looks like.

So at 130 cars, I mean, $130 an hour Uh, with your, with your effective labor rate, if we kept everything else the same, that's maxing out with another technician, uh, added to your team. Um, then we're gonna be— if I can get my screen to cooperate with me— um, we're gonna be capping out at about So we said $3.7 million if we were getting our full effective labor rate.

$2.2 million is where you're capping out now at your $130 effective labor rate. And I know that that's adding a whole nother technician that's 100% productive to the deal, but let's just see what happens if we, uh, if we went to $155 on our effective labor rate. Right, which is, I think, is very doable. So now if we go there, now our capacity jumps up to 2.7 million.

It's half a million dollars. I mean, it's a half million dollars, you know, just by fixing that effective labor rate. So I, I think the math supports— I don't think you're going to lose enough cars, especially enough cars that aren't going to turn into push cars anyways. I think the cars that you're going to lose in, in this are going to be cars that were going to get the estimate and tuck their tail and run already.

So what is the, uh, what is the entry-level gate, uh, to weed out some of the time-wasting cars, uh, but not run off some of the ones that we want? I mean, I think— I mean, are you asking me what the price for Diag should be to, to split the middle? Is that what you're asking? In 2024, when we stopped, uh, we stopped, uh, January 1st of '24.

So in 2023, we were 196. To look at the car. Um, I know it wasn't look, right, but to initial diagnosis and testing, which is $196. Yeah. Um, I don't know what the market is right now for aftermarket, uh, drivability concern initial testing, you know, standard stuff, not the crazy stuff. Obviously it's going to vary widely from market to market. Um, you know, I would say your posted door rate's probably on, on par with what that number, uh, probably should be if we were looking to profit, you know, profitize our diagnostic services.

Um, I, I guess what I'm saying is it's still a loss leader if you do it for less, right? It doesn't necessarily have to— you don't lose as much. Yeah, you just don't lose as much, you know, just don't lose all of it. And, you know, so I mean, I, I think you You know, you modulate that a little bit. I mean, I think anything under $100 is still a ginormous value to the customer, um, you know, for, for what you're providing there.

And again, maybe you sit down and you say we're still going to do it at no charge for these types of customers with these types of cars because there's a lot— we, we have proven value in, in those avatars, right? Um, and again, our oil change plan works exactly that way. You know, I'm not— I just— I'm not gonna do a devalued oil change service on a diesel when I don't do any work on diesels, right?

Yeah, that makes sense. So I mean, we're, we're, we're really trying to hone in on a specific avatar customer and a specific avatar vehicle, and then I'm going to offer them the world to keep coming back in over and over and over again. Okay. What do you think's the break-even where I should talk about adding a 3rd technician in that building? So that's a great question.

Um, so my way of doing that is I think the simplest way to look at scaling staff is looking at revenue per employee. And just because it's, it's the easiest math that we can do. And I've had an opportunity to, um, over the last 2 years take a, take a look at a lot of client data, shop data across the country. And, and kind of put some benchmarks out there for what those numbers should be.

Um, and, you know, kind of what I found is, is revenue per employee, um, on the low end needs to be somewhere around $20,000. Uh, so looking at where you guys are at right now for last month, and again, what I typically see is I'm not— obviously there's outliers to everything. We talk about rules of thumb, so $20,000 There's gonna be some shop out there that goes and does their math and they're at 20% or above and they're at $15,000 revenue per employee.

Great. There's nothing wrong with that. Okay. What I'm saying is by and large, almost every case study that I took a look at, uh, if they were lower than $20,000 of revenue per employee, we were below 15% net profit. So it was almost impossible to get to 15% or above net profit. Most of them were in the 5% or below range. Once we started getting below, you know, $20,000 revenue per employee.

Um, the kick-ass, you know, um, shops that I'm seeing, they're doing 20, 25, 30% net. Um, they're $30,000 of revenue per employee or above. Um, and there's risk in that as well. So kind of what I look at there is that $25,000 number, um, is where I'm looking to start adding team members, because at $30,000 I'm going to start capping out. Right, and you're counting the GS just like you count the ATEC, and just like you count the shop porter in this number.

So like when, when I have a— so when I have a conversation with my manager and we're looking to bring on a support member, uh, so office admin, CSR, you know, porter, what, GS, apprentice technician, whatever it may be, unless we have some benevolent reason to do it you know, like we're going to bring on an apprentice technician because we feel like it's our job in the industry to grow the next round of technicians, I might be willing to take a net profit percentage loss on that because I feel like the greater good is being served, right?

Yeah. But if I don't want to take a net profit loss, then I have to design something that says, how do I get at least $20,000 of rent? I need a $20,000 lift in my current sales. To take on a new employee. So you're sitting at $23,000 of revenue per employee right now with the 5 members that you have. You have no support staff, right?

So let's say you added a CSR or a porter to the mix, you know, that was going to shuttle cars around, shuttle customers home, clean the shop. How do we provide— how do we steal enough work away from the productive staff that gives them more time to be customer-facing or repair-facing That allows us to generate an additional $20,000 a month in revenue.

Because without that $20,000 a month in revenue lift, the business doesn't need that employee, right? Because you're gonna be absorbing the cost of it out of your, out of your net. Well, if I'm gonna, if I'm pushing for $140,000, what I'm hearing is the time to add a technician is now. You're getting really close to it. Yeah. I mean, because any lift that you have over, you know, over that $115,000, as soon as you creep up to $120,000— not saying you're going to be capped, but you're going to be— you're going to start hitting— you're going to start getting closer to the lid.

Um, because I mean, if we take a look at it, your— so revenue per employee right now, let's say you jump up to $30,000 of revenue per employee, right? We have 5 employees, uh, that's 5 times 3 is $150,000, right? At 150, we're probably bumping pretty close of what our capacity is with the group that we have right now. Yeah, that'd be redline.

That'd be wide open all the time. Yeah. And so we can't design something that's going to operate at redline 100% of the time, right? Because eventually what happens is we, you know, that we're gonna get sick or we're gonna burn out it— we're gonna burn out a service advisor, burn out a technician. We're gonna have some turnover. And we just don't have the ability to replace those pieces, you know, anymore.

So I'm not saying we want to operate at 80%, but we need to be comfortable operating at 80% for times, right? It still needs to be profitable at 80%. Um, you know, we, we need to design revenue that's consistent and profitability that's consistent and, and But you've, you've done a decent job of that, really. I mean, you're, you know, as much as we've ignored it, it's still, still profitable store.

It's still performing, you know, still performing at a base level that's acceptable. Um, but yeah, if we're looking at, if we're looking at how do we grow and take it to that next level, we're either looking at, um, potentially, you know, replacing— and I'm not saying to do this— but we're either, either adding on a new technician or replacing the GS with somebody that has higher capacity.

Um, because you said he's averaging somewhere around 10 to 20 hours a week right now for you. Um, the problem is, is when you, when you replace that guy with a higher level guy, they don't want to do the stuff that he does. Yeah, because he's providing the work for the, the others through the, the GS level work that he's doing, right?

Well, even if he— if I added, if I added another, like a line tech, like a strong career technician I wouldn't replace that guy. I would, I would move him to one of the other stores. Like, he's like, he's a good dude, and yeah, good dude is not a qualifier for employment. No, but what I'm saying is, even, even in this, I don't think that you have to replace him in this business, even in this building, you know, for the shop.

Um, you know, it's just a how do we, how do we re— how do we reorganize his duties and responsibilities that it takes enough— it takes enough load and work off of the other, you know, the other production technicians that you have, that they have more time to be production, you know, to be productive? And how do we take some stuff off the front counter, you know, that allows them to be more customer-facing?

Because again, that 24% close ratio, that's another limiting, you know. So right now, I mean, I see 3 limiting factors that if we can fix inside of the business from a KPI standpoint we can, we can hit these $140, $150 months and you're going to need another person, right? And that's how do we, you know, how do we orchestrate a pricing strategy, um, that still allows us to generate, you know, the bulk of the car count that we're looking to, that allows us to get our, uh, our effective labor rate above $150.

Um, I mean, at Elite, we're really— we're coaching our clients pretty much since COVID Um, that we want to— we want an effective labor rate above $120. Doesn't matter where you're at. All right, you're in a really good market, you know, that's not typical of rural North Carolina. So you're not in rural North Carolina, you're in, you know, it's an affluent area.

You're in an affluent area. We would like to see that above $150, right? That effective labor rate above $150. Um, because again, that's, that's also capping you out at what you can afford to pay, you know, from a cost, um, yeah, cost per technician standpoint. And, and that's what your limiting factor is right now on your, on your overall GP, right? And your GP is not bad, but, you know, 58% is not 60%.

So there's a little bit of wiggle room there. And if we've tried to figure out what that was, what's going to be our effective labor rate is lower than what we're paying our technicians, right? For what it should be. Yeah, lower than what it should be. Yeah. Um, well, you've certainly given me some homework and some, uh, something to think about. Um, I can't wait to record with you, uh, next month and say that we trialed, uh, charging for diag and it was a huge success.

And, uh, everybody's gonna come out online and talk about what a fucking moron I am and have been the whole time. It'll be great. Or you get to take videos and post on Facebook of the picket lines that are outside, you know. All right, dude, um, anything else? Uh, oh, I'll see you, uh, shortly at ASTA Expo. I think, uh, yeah, our next recording, we might even record our next episode at the expo.

I don't know, what do you think? Yeah, I would love to. Yeah, uh, I always love going to ASTA every year. It's something that, uh, near and dear to my heart being local to it. And, uh, we take the whole team and have a good time. So looking forward to that. Uh, yeah, this is starting the travel season for me through Elite.

So we got, uh, Rhode Island coming up. We got STX. Um, STX, I'll fly out tomorrow for STX and, uh, be there for the next couple days and then come back from that. We've got ASTA, and then right after ASTA we've got, uh, Fly with the Eagles in Providence. Yeah, Rhode Island. So I'm looking forward to that. So yeah, if you're listening and you'd like to get more, you know, get more into the detail about what, you know, kind of what me and Mike talked about today as far as how to, how to project, how to, how to forecast, how to know when you're supposed to be adding team members, when you're fat, when you're

skinny, um, please, you know, look us up on our events page on eliteworldwide.com. Fly out to Providence. It's right in between Boston and New York City, so Bring the wife, have a nice vacation afterwards, and, uh, learn a few things that hopefully pay for the vacation. That's going to be October. That's prime leaf season up there, isn't it? Prime leafing season. I already know when I'm fat and when I'm skinny.

I'm fat for the last 20 years. Uh, I'm working on skinny. So hey, 21 years ago you weren't, and you had pants that carried over for the next year, and you bent over to pick up a dog out of a sticky trap And rip those pants. And why you got to be like that? I think that's a good note to end on.

That's terrible. You're a terrible human being. Thanks for listening to Confessions of a Shop Owner, where we lay it all out— the good, the bad, and sometimes the super messed up. I'm your host, Mike Allen, here to remind you that even the pros screw it up sometimes. So why not laugh a little bit, learn a little bit, and maybe have another drink?

You got a confession of your own or a topic you'd like me to cover, or do you just want to let me know what an idiot I am? Email mike@confessionsofashopowner.com or call and leave a message. The number is 704-CONFESS. That's 704-266-3377. If you enjoyed this episode, be sure to like, subscribe, or follow. Join us on this crazy journey that is shop ownership.

I'll see you on the next episode. Let's be honest, in this business everything needs your attention all at once. A customer's waiting on an update, a vehicle's ready for pickup, there's a payment question at the counter, the phone's ringing, another estimate needs approval. Everybody needs something and it all seems to hit at the same time. That's why having everything in one place matters.

Techmetric brings your shop management, your payment processing, and your marketing all together in one platform so you're not bouncing back and forth between systems and losing time chasing updates. It keeps your team aligned and gives your customers a better experience from drop-off to checkout. Learn more at techmetric.com, tap the link in the show notes, or scan the QR code below.

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Confessions of a Shop OwnerSeptember 8 · 1h 1m

Ep 114 - Turnkey Marketing Call #1 | The $84,000 Mistake Hiding in Your Shop

Keep shop management, payments, marketing (all the things) all in one place with Tekmetric. It will CHANGE YOUR LIFE. Click HEREASTA is coming up September 24-26 in Raleigh. Be there or be square, dog! Register now and use code confess25 for $25.00 off your registration. Sign up HERETurnkey Marketing has made my life SOOO much simpler, AND they've helped keep the phone ringing. Do you need these two things too? Learn more HERETired of your shop’s social media looking like every other repair shop on the internet? Stand out with 47 Consulting. Learn more HEREWhen I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Learn now HEREMike Allen sits down with Carrie-Lynn Rodenberg of Turnkey Marketing to kick off a new monthly series that lets listeners sit in on the marketing side of running Mike's shops. They break down marketing budgets, customer acquisition, direct mail, attribution, branding, customer retention, phone performance, and why simply making the phone ring means nothing if the shop can’t convert the opportunity. Carrie-Lynn also uncovers a painful number at Mike’s flagship store: hundreds of first-time callers but only a fraction turning into customers, potentially representing tens of thousands of dollars in missed revenue. Along the way, Mike admits he may be Turnkey’s worst client, explains why shutting marketing off when you’re busy can come back to haunt you months later, and learns that sometimes the marketing isn’t broken — the operation is.Timestamps: 00:00 Seven Years Since Turnkey First Visited Carfix00:41 Mike Used to Sleep at the Shop03:15 Meet Carrie-Lynn Rodenberg and Turnkey Marketing05:24 Mike Buys Marketing Tools… Then Forgets to Use Them07:05 How Mike Started Working With Turnkey08:57 Mike Tried Doing His Own Marketing — Then Came Back09:07 Why We’re Recording Mike’s Marketing Calls11:21 The Hidden Cost of Bad Marketing13:25 Sniper Marketing vs. Spray and Pray13:41 Carrie-Lynn Went From Doing Everything to Building a Team14:44 Mike’s 115-Episode Long Con 😂15:51 Stop Making Your Marketing About Yourself17:28 Why Most Small-Business Marketing Becomes White Noise20:14 Your Competition Is Better Than You Think21:36 How a Business Responds When Things Go Wrong23:07 Every Shop Says They Have Great Service23:53 How Do You Actually Stand Out?26:24 Why Direct Mail Takes Time to Work28:50 Every Shop Has Blind Spots29:33 Want to Ruin Mike’s Day? Listen to His Phone Calls30:12 Did Your Marketing Actually Make the Phone Ring?30:59 Why Marketing Attribution Is So Difficult32:27 The Creepy Side of Modern Targeted Marketing34:29 Can You Target Technicians at a Competitor’s Shop?36:12 What Turnkey’s Marketing Onboarding Looks Like37:26 SEO, AI Search and Building the Right Marketing Mix40:04 Bad Marketing Can Cost You Technicians Too40:24 Mike Confesses He Might Be Turnkey’s Worst Client42:34 Carrie-Lynn Finds a Painful Number43:41 What Should Your Call Conversion Rate Be?44:25 229 New Callers… Only 56 New Cars44:55 Mike Explains Where Carfix Dropped the Ball46:16 How Service Advisors Say “No” Without Saying No47:06 More Staffing Means More Opportunity to Say Yes49:54 Did Carfix Leave $84K on the Table?50:24 The Marketing Worked — Carfix Didn’t Convert It50:49 Why You Shouldn’t Turn Marketing Off When You’re Busy51:23 Today’s Marketing Decisions Affect Your Slow Season52:47 The Cheapest Customer Is the One You Already Have53:16 Why Customer Retention Matters So Much54:18 Why Shops Should Prebook the Next Appointment54:54 Convenience May Be Your Biggest Competitive Advantage55:21 You Might Be Paying to Market Your Competition56:20 A $100 Lead Could Become a $32,000 Lost Customer57:33 What This New Monthly Marketing Series Will Look Like58:51 Mike Finally Promises New Pictures

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Confessions of a Shop OwnerSeptember 1 · 1h 0m

Ep 113 - Saurav Kumar & Kamran Rahman | Why Generic Social Media Is Killing Your Shop

Tekmetric opened my eyes to just how much a good SMS will do for a shop. Their software is top of the line, and with them, so is my shop. Try them for yourself HEREASTA is coming up September 24-26 in Raleigh. Be there or be square, dog! Register now and use code Confess25 for $25.00 off your registration. Sign up HEREMy marketing before and after signing up with Turnkey Marketing is pretty scary. In a good way. Get your marketing right today HERETired of your shop’s social media looking like every other repair shop on the internet? Stand out with 47 Consulting. Learn more HERE Make your techs happier with Detect Auto. They'll stop getting "check noise" or "check vibration" from advisors with the customer concern tool. It will CHANGE YOUR LIFE. Book a demo HERESend your service advisor to hands down the BEST service advisor training in the industry (even other coaching companies agree). It's Elite Worldwide's Masters Program. The next one is happening in Dallas Texas, September 10-12. Learn more HEREMike Allen sits down with Saurav Kumar and Kamran Rahman from 47C to talk about what actually makes social media work for an auto repair shop—and why going viral might be the wrong goal entirely. They break down the difference between generic content and real brand-building, why local relevance matters more than raw views, how shops can create trust before a customer ever needs a repair, and why the right audience is more valuable than a huge one. Mike also admits one of his shops is now charging for diag, gets on a soapbox about technician pay and training, and somehow turns a discussion about marketing into another story about his pants coming off.Timestamps:00:00 Generic Social Media Is Everywhere00:59 Was This the Worst Recording Day Ever?01:27 What It’s Really Like Filming Inside a Repair Shop03:00 Can Shop Owners Mix Their Own Content With Professional Content?04:00 Mike’s First Impression of 47C05:53 Why Saurav Never Carries His ID08:08 Mike Admits He Didn’t Understand 47C at First09:47 The Confessions Lounge and Studio12:00 The Story Behind Mike’s Throne13:51 Meet 47C17:10 Why They Chose the Automotive Industry18:33 Are Repair Shops Actually Bad at Business?20:05 Why Automotive Attracts Private Equity21:56 What 47C Actually Does for Repair Shops25:19 Why Customers Want to Feel Like They Belong26:45 Mike Finally Buys Into Social Media Brand Building28:52 Are Repair Shops Still Early to Short-Form Video?30:11 Why Mike Doesn’t Want to Be the First Early Adopter31:05 Landscape vs. Portrait Video34:24 Mike Is Now Charging for Diag at One Shop35:58 Learning Dynamic Pricing From an Ice Cream Truck37:36 Technician Pay, Training and Labor Rates41:18 The Reality of Entrepreneurship43:22 No Booze, No Cocaine While We’re Working44:46 You Can Run a Good Business and Still Have Fun45:52 Why 47C Limits How Many Clients It Takes49:55 The Biggest Problems Facing Repair Shops52:55 Focus on What You’re Good At and Hire Out the Rest54:00 Why Generic Social Media Isn’t a Strategy55:00 Are Viral Shop Videos Actually Useful?56:00 Mike’s Million-View Video Reached the Wrong Audience58:40 Mike Learns What Kind of Content His Audience Really Wants59:09 Closing Thoughts

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Confessions of a Shop OwnerAugust 18 · 1h 3m

Ep 111 - Mike and Bryan | Technicians Want More Money… But Won’t Do the Work

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Confessions of a Shop OwnerAugust 14 · 55 min

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The Institute's Leading Edge PodcastJune 4 · 49 min

207 - You Can't Wrench and Run the Business Forever: A Shop Owners Turning Point

207 - You Can't Wrench and Run the Business Forever: A Shop Owners Turning Point June 3rd, 2026 - 00:49:01 Show Summary: Nathan Geransky shares his journey from running an automotive shop on his acreage to moving into a commercial location. Years of long hours and limited financial insight pushed him to seek coaching and change how he operated the business. By improving labor rates margins and systems he built financial stability and stepped away from turning wrenches full time. He discusses leadership team development and preparing the business for future growth. His story shows what happens when a technician learns to become a true business owner.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): Nathan Geransky, Owner, Nathan’s Garage Ltd.   Show Highlights: [00:01:00] – Nathan launched his shop from a building on his property. [00:02:00] – Customers arrived at all hours because he worked from home. 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Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. 👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/5G4i75jw-no   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: Jimmy Lea: Welcome, Nathan. It is good to have you here with me. Good morning. Nathan Geransky: Thank you. Big introduction. For a little Jimmy Lea: guy. Yeah, man. You've done a lot over the last little bit. You've really spread your wings and gone the distance. It's amazing to hear the growth. Nathan Geransky: Yeah, it's been a journey for sure. Jimmy Lea: Yeah. How long have you been with the institute? How long you been with coaching and training? Nathan Geransky: Just about a year now. Jimmy Lea: Oh, congrats, bro. Nathan Geransky: About a year. Yeah. Jimmy Lea: That is awesome. All right. Let's go back in time, Nathan. Let's talk about the past. How did you get into the automotive industry, the automotive aftermarket? Nathan Geransky: So I was I was working in another shop and they kinda... It got slow there, so I went to- I've always been an automotive guy, so I've worked at Ford for many years and been doing it all my life. Jimmy Lea: Yeah ... Nathan Geransky: so this other shop I was working at, they kinda got slow, kinda lost my job, and I had an acreage and a shop there, so figured start, I'll work at home until I find a job. So I looked around a few times. Jimmy Lea: Nice. Nathan Geransky: No jobs, and started on my own. Jimmy Lea: Oh my gosh. So this is the residential cul-de-sac you were in. You had an acre. You had a- That's right ... shop on the- Nathan Geransky: Yeah ... Jimmy Lea: w- like a two bay or a three bay? What did you have there at- It was a- ... Nathan Geransky: the Jimmy Lea: back of the house? ... Nathan Geransky: a 30 by 60 shop. It's on three acres. Oh. So it was on acreage. Yeah. Jimmy Lea: Yeah. Nathan Geransky: So fairly big shop. Yeah. Jimmy Lea: Yeah, that is a big shop. And so you're working from home. Nathan Geransky: Yeah. Jimmy Lea: Tell me about that challenge. Nathan Geransky: So right at first it was figuring out what parts and everything. So I'd work in the morning, figure the cars out, go get the parts all afternoon, work till 10:00 o'clock at night, puttin' the cars back together. Oh Jimmy Lea: my gosh. And a lot of us work remote, so we're able to work from home. Yeah. Me being one of them. Yeah. Now you're working from home. Were there any challenges you faced by having your garage in the backyard? Nathan Geransky: Customers, they're like, "Oh, you're here," so they come any time of day, like drop off a car at 10:00 o'clock at night, or they'll expect payments. Like they'll come out at 7:00 o'clock and run your payment through, right? Or whatever, but- 24-hour garage. Jimmy Lea: It's true, because you were there. You were available. They're coming directly to you. Yeah. They thought, "Oh, no, he lives here. Yeah, no, I can come any time." Yeah. Oh my gosh. So how long did you operate out of the backyard? Nathan Geransky: Just until a month ago now, when we moved to the new shop. Jimmy Lea: Oh, wow. How many years were you operating from the house? Nathan Geransky: Seven years. Jimmy Lea: Seven years, wow. Nathan Geransky: Yeah. Jimmy Lea: Your neighbors must have loved you. Nathan Geransky: They did, except for one guy. Jimmy Lea: Oh my gosh. So how many bays did you have in your garage, 30 by 60? Nathan Geransky: Two bays. I had a wheel alignment hoist, which I'm still using, and another two post hoist. Jimmy Lea: Nice. Okay. Nathan Geransky: S- other side, Jimmy Lea: nice. Side by side. Oh, wow. Nathan Geransky: Yeah. Jimmy Lea: Wow. And w- you went from... So were you parking car... you say you had three acres. Three acres is huge. Yeah. It's a lot to- That's a lot of- Nathan Geransky: Yeah ... l- Jimmy Lea: lot of property. And- Were you parking cars all over your backyard? Nathan Geransky: Yeah. And then, so I had at one point in time probably 30 cars waiting there. Oh my gosh. And then the county came- ... "Hey, you got too many cars." So I learned how to schedule slowly. 'Cause people drop it off, says, "Get to it when you can," so I did, and then ended up being a pile of cars. Yeah. Before you know it, it goes from one car that's waiting to seven to 19 to- Yeah ... 30. Oh my gosh. Yeah. Nice. Packed double rows. Oh, wow. Wow. Wow. So what were some of those biggest challenges you were facing as a shop owner working out of your house, working out of your backyard? Jimmy Lea: So I- What were some of the biggest challenges? Nathan Geransky: Parts and I guess mechanics. So I hired Noah, my son, for do administration because he was, Actually, I hired my other son first, Justin. He's a journeyman, so I needed more help there, so me and him worked together about a year or so, and then hired Noah because when parts, when customers come back for repairs and they're like, "Oh, we put this part on for warranty, but we didn't ever charge for it." So we're like, "Okay we are charging you this time." So hired Noah to... His wages paid for all his parts we missed putting on vehicles or building out vehicles. Jimmy Lea: Oh, yeah, he caught everything. It's- But just even catching that paid for his wages. That's amazing. Oh, for Nathan Geransky: sure. Yeah. So we're l- in a losing battle, right? Jimmy Lea: Oh, yeah. No, yeah. Yeah. And what about all the core returns? If you're not getting credit for the returns. Nathan Geransky: Yeah, that too. Yeah. We probably lost a lot there too, yeah. But- Jimmy Lea: Yeah, no. But now you're, you've captured it. Nathan Geransky: Swapped around. Yeah, you bet. Jimmy Lea: Oh, man. So what's one of the biggest, And not, maybe not the biggest, but what's one of the hardest parts about going from being a technician in the business to being the owner and working on the business? Nathan Geransky: Ha- I guess challenging because I can fix vehicles Jimmy Lea: Yeah ... Nathan Geransky: but to run it, like I've never ran a a business, I guess business-minded, but not, never went to school for anything, so you always struggle and worry what, Yeah, it's a challenge for sure. Jimmy Lea: Oh, yeah. It's easy working on cars. It's harder- Yeah ... it's a different skill set to work on your business, right? Nathan Geransky: Yeah, definitely. Jimmy Lea: Yeah. Oh, man. So what was w- what was one of those challenges that you faced in making the transition? What was one of those skills you had to learn from being a technician and turning a wrench to being an owner and sit in front of a keyboard? Nathan Geransky: I'm still learning. So biggest thing is working for my business or working on my business, not in my business. Jimmy Lea: Yeah. Nathan Geransky: Mentally challenging, still work in progress, but we've come quite a ways. Jimmy Lea: Oh, wow. Yeah. That is true. That is true. Nathan Geransky: Maybe not Jimmy Lea: answering the question fully, but- And there are different seasons. No, you totally did. Okay. Yeah. There's different seasons that we operate in. So y- there was a season where you had to be the technician, there was a season where you had to be the technician and the owner, and as you- Yeah built up your business, you were able to take those steps to become the true full-time business owner. How often are you turning a wrench these days? Nathan Geransky: So now s- since we moved to the new shop I haven't done anything in the wrench. Oh. So I left my toolbox at the other shop. Did you leave your toolbox at Jimmy Lea: home? Nathan Geransky: Yeah. So Jess was like, "You're not bringing your toolbox to the new shop." So it's there. Out of the Jimmy Lea: way. Nathan Geransky: So it's mentally, The other day I was trying to find, get something and I told the o- all the guys to lock their boxes up. So on a Saturday I came in here, I had no tools. Yeah. What- Jimmy Lea: So I was like, "I can't do anything." No. Yeah. Of course you couldn't. No, you, you c- if you wanna work on your own cars, go back to your, Yeah, go back to my old job. Yeah ... go back to the house. Nathan Geransky: That's what happened. Yeah. Jimmy Lea: Oh, that's funny. That's funny. All right. Y- switching f- from technician to an owner, a different skill set. Y- you've a very technically trained, cars spoke to you. You're making that transition to business owner. What was one of the hardest things for you to adjust at first? Was it you raising prices, managing people, or trusting your financials? Nathan Geransky: Probably a combination of all of those. You're you're managing people, not too much that. I guess you're Yeah, just a little bit of everything Just a bit Jimmy Lea: of Nathan Geransky: financials? Jimmy Lea: Yeah. No, it's a bit of everything. Nathan Geransky: Yeah, for sure. Jimmy Lea: Yeah. And all right- How you're figuring it all out ... so digging into each one of these I have a question for you about raising your prices, because you were at a certain rate and you raised it by $30 an hour. Talk, talk to me about that. Yeah. Riff on that for a minute. Nathan Geransky: Through my coaching through Chad we're, He was saying, "You need to raise your labor rate or you need to give Justin a lot lower wage, otherwise..." And he's "I don't think he'll stick around for that because even though he's your son." So yeah, I raised my rate like 30 bucks. I was worried about customers because you think maybe they can't afford it." And, but then you realize they're coming back from holidays, and I'm not going on holidays. So you raise it up, and surprisingly nobody batted an eye. They didn't even question the labor rate, nothing. Over a couple more times they came over "Oh, your rate went up." I said, "Yeah, it went up to the amount." And yeah, it was crazy. I was... That was the biggest surprise, Jimmy Lea: yeah. Isn't that amazing? Nathan Geransky: People didn't care. Jimmy Lea: Yeah. They didn't care. So all the fear was where? It was inside your own head. Nathan Geransky: It was in me, yeah. Jimmy Lea: Yeah. But and the beauty of that is you analyzed the business. You looked at your business, you looked at your expenses, you looked at your overhead, you looked at all of what it cost you to run your business, raised it by $30 an hour to cover the business so that you- Yeah could have the life that you needed, and Noah and Justin, and is there anybody else on the team? Don't you have a few more people? There's Nathan Geransky: two others. Yeah, Dawson and Arthur. Jimmy Lea: Dawson and Arthur. Yeah. So you raised your labor rate so that as a business you could survive, as a business you could provide- for not just yourself, but for the- No ... entire team. And that's essential. Nathan Geransky: Yeah. Jimmy Lea: That's so important. So what made you decide to reach out to the institute? Nathan Geransky: So we're, They had phoned before, Michael had phoned before, and I was like I think we're doing pretty good in the business, and we're all... We've been doing it for seven years, and how hard can it be, right?" Jimmy Lea: Yeah. Nathan Geransky: Yeah. And then last year we're, About about this time last year we're like, "This is getting... We're making money, but we don't have any money." So we're like, "Okay, we need to figure this out." So that's when I reached out to the institute and got a plan and went from there, and it's been amazing. Jimmy Lea: Oh, that's good. That's good. And we'll give a shout-out to Michael Wiltrout. In the past, he has been a partner and owner of four different shops in the Arizona- Okay ... area. And so w- y- you connected with the right guy at the right time, and I'm sure that you guys had some phenomenal conversations talking about your shop, your business, what you were doing. A- and he's got the chops. He's been there. He's done that. Yeah. He can talk to what you're going through and what you're doing. So I'm sure a lot of that- Great guy ... resonated real strong with you. So when you connected with Chad, what were you hoping that coaching with Chad would help fix? Nathan Geransky: Just how to run my business correctly and be more financially s- secure, and- That's Jimmy Lea: important. Nathan Geransky: Yeah. That's, yeah, that's very important. Jimmy Lea: Yeah. So h- how long did it take you? What was that realization of, "Oh my gosh, I, I think this is actually working. I think I can see that we're, we have money. We have money- Nathan Geransky: yeah ... Jimmy Lea: not just on the books, but we have money." What was that point for you? What did that look like? Nathan Geransky: So when we started with it, it was I think I've said this before even, but so our books were, they were okay, whatever, but we had we had no money in the bank and like we were struggling along. And then within about four or five months we had, with adjusting our margins and everything and increasing the labor rate, we put $100,000 in the bank for operating. Jimmy Lea: Holy cow. Nathan Geransky: Yeah. So it went up quickly and it was, yeah, amazing Jimmy Lea: That is Nathan Geransky: awesome Before I was happy, I'd... Before I'd had 20,000 in the bank, I was like, "Oh, we're doing good." Jimmy Lea: Yeah. Oh, yeah. That first month when you have 20,000, it's like an eye-opening, "Oh my gosh this is working." Yeah. And then you look up- Yeah ... two months later and you're like, "Oh my gosh, we have 100,000." Nathan Geransky: Yeah. That was crazy. Jimmy Lea: That is cool. Congratulations- Yeah ... bro. That is very cool. Talking about the moving of your business, John Beasley is totally commiserating with you or loving on you in that residential area. He started in residential as well many moons ago. Had people showing up eh, on days when he was closed and walking around his house. Nathan Geransky: Oh, yeah. Jimmy Lea: And John, y- clearly they had to be on the outside of the house, right? There's nobody coming inside your house. No, nobody. Even though they think that's your office. Nathan Geransky: Yeah. No, my office was always in the shop, so nobody ever came in the house, but. Jimmy Lea: Yeah. Oh, that's wild. Wife Nathan Geransky: was like, "Who's here now?" I was like, "Oh, just another customer dropping off in the evenings or Sunday afternoons." And we have company over "Oh, that's a customer coming again." Jimmy Lea: Yeah. We should be happy Nathan Geransky: now. Which Jimmy Lea: we love. Yeah, no, Nathan Geransky: it's good. Jimmy Lea: I love being able to drop off late at night. Yeah, Nathan Geransky: for sure ... Jimmy Lea: John says, "Yeah, it was just a duplex, much smaller scale." John, I feel you on that. I- Yeah ... I love dropping mine off late at night. And the key box, oh my gosh, I love the key box. I love filling out that- little envelope putting it in the box because I... There was a period of about four or five years, Nathan, that I don't even think I saw my, the shop owner or even any of the staff, 'cause I would drop it off late at night. Yeah. And they would do the work and, Yeah ... I would pay over the phone and- Yeah pick it up two, three days later, late at night- Yeah ... or something like that. And, Yeah ... in a residential- I've had that Nathan Geransky: before too, yeah ... oh my gosh. Couple customers didn't even know who they dropped off, Jimmy Lea: like- But in residential, that could be a nightmare. Nathan Geransky: Yeah. Yeah. Jimmy Lea: That could be a nightmare. Here you are, 10 o'clock at night you're laying down in bed. You- it's bedtime and you got people dropping off their car. Nathan Geransky: They just put the keys on the floor mat and go. Like- ... we were on acreage, so it was pretty safe. That's what they did Jimmy Lea: yeah. So what was one of those first things that, Working with Chad, what was one of those first things that he challenged you to change in your business? Nathan Geransky: I think the first thing was labor rate. Really? Yeah. Okay. And he did that because he could see that the business just needed a bump in the labor rate- Yeah, for sure. Yeah ... and he knew that Justin needed to make some more money. Yeah, for sure, yeah. Jimmy Lea: Oh, wow. When you raised your labor rate, what were you expecting to happen? Nathan Geransky: I thought we'd be slower. Maybe our customers would complain about it or they'd ask questions on the bill, right? "How come there's so much more money?" or whatever. But when Chad explained it to me, you raise your labor rate up, and you have... say you have a two-hour job You're only going up a few dollars or an hour job, right? Yeah. Top 50 bucks. So people sorry, people probably don't even hardly notice a little bit, like $30 is quite a bit, but they're not gonna question too much. And when you get the big jobs, like eight, 10 hour jobs, they're like, "Okay." And then they kinda realize it's a bit higher. But the just day-to-day jobs, people didn't seem to care too much. Jimmy Lea: No. And add to the bo- it added to the bottom line in a hurry, right? Oh, yeah. Which is- Big time ... Nathan Geransky: great. Yeah. S- Jimmy Lea: so le- let's use some fake numbers, but, Sure ... somewhat real. If we're talking about a two-hour repair order, let's say that's around $600. Does that sound about right? Nathan Geransky: Yeah. Jimmy Lea: So at a $600, your increase made it $660. Nathan Geransky: Yeah. So $60, right? Yeah Jimmy Lea: That's a nuisance increase in my book. Yeah ... it's just a, "Oh, okay. Yeah, everything's going up." Nathan Geransky: Yeah. Jimmy Lea: Shoot. Have you seen hotel rooms now? Nathan Geransky: No, I know. Jimmy Lea: I agree with you. Even Motel 6 is 150 bucks a night. Nathan Geransky: Yeah. Jimmy Lea: All your Hiltons and Marriotts are over 300 a night. It's... Ah, man. I know it's ridiculous. So how has the institute and how has Chad helped you move from reacting to problems to managing the business more intentionally? Nathan Geransky: Through, your parts and margins, we've learned about, more about that, and scheduling. It's helped a lot with sched- scheduling. And just revamped everything from being a mechanic point of view to a owner point of view. Jimmy Lea: Yeah. Isn't that wild? Y- and all those days you worked at the other shop, and you're working on Fords, and you're thinking, "Oh, this owner, he's putting all this money in his pocket. Oh, he needs to get more cars in here." "I could work on more cars." Now you're on- Yeah ... this side. Nathan Geransky: Yeah. Jimmy Lea: Now you're the owner. Now you're the one that has to put more cars in the bays and- Nathan Geransky: yeah. Jimmy Lea: Yeah. So how important is that for your team to understand the financials of the business as well? Do you have a different perspective on that now that you've been Nathan Geransky: on- ... the Jimmy Lea: other side, and now Nathan Geransky: you're the owner now? So I think the team has some- somewhat... i've shared my financials with them, and they're like, "Oh, we're doing good." I said this is why we're doing good, because we're... We have our labor rate's better, our mar- margins are better, and this is why as you go through your jobs, you need to make sure you're writing everything down and your stories are correct so we can bill correctly. And it all results to you getting more money at the end of the day." So a teamwork, and that's how I've always addressed it. So everybody works together, and everybody makes money. Jimmy Lea: Nice. Nathan Geransky: It's not all about me making money. It's about everybody making money, Jimmy Lea: yes. It's important we all Nathan Geransky: make money. No, and everybody to be successful. Yeah. Jimmy Lea: Oh, 100%. 100%. Yeah. So do you feel like you look at your team differently now than you did a year ago? Nathan Geransky: Yeah, probably. Yeah. And do you feel like your team is looking at you differently than they did a year ago? Definitely. Yeah, definitely. Yeah. But... and d- what do you, what would you attribute that shift and change to i- in yourself? Just learning more about business and through coaching and- yeah, it's- Jimmy Lea: and Nathan Geransky: leadership all, all together. Leadership, Jimmy Lea: yes. Nathan Geransky: Yeah. Yeah. Jimmy Lea: It just sounds like you have grown so much tremendously in your role as a leader here at the shop. I would say that your team is looking at you more as a leader than they ever have before. Nathan Geransky: Yeah, they have. Yeah, they are. Jimmy Lea: Oh, that's awesome. Yeah. Congratulations on that. And that's a big transformation for you to make and to grow. How have you changed? How ha- how do you view yourself today versus what you, who you were a year ago? Nathan Geransky: It's a hard challenge or hard vision, I see myself more as a manager now or owner-operator, right? And like I'm in charge of a big, like a big business now, right? So it feels like a big business. Yeah, so it's been mentally challenging, and you're figuring out where I st- I- where my role is, right? Or how I manage people and everything else. Jimmy Lea: Yeah. Yeah. It is. It's a big change that you go through, and Chad's giving you a shout-out here. That Nathan is humble. He's becoming involved with BNI and NAPA AutoPro, becoming a spokesperson for the industry. Thank you for doing that, Nathan. That's from Chad, your coach, so he- Yeah ... he knows who you are as well. Oh, thank you. Yeah, Nathan Geransky: for sure. Jimmy Lea: So you've now- And- ... moved into a n- oh, sorry, go ahead. Nathan Geransky: I said he's been an amazing coach. Yeah, I've always, every time I talk about business or whatever, I said, "Yeah, I got this great coach, Chad." He's I bring him up all the time. Jimmy Lea: Nice. Nice. Spread the word. We need more shops- Oh, yeah, Nathan Geransky: I do. Yeah. For sure. Jimmy Lea: Chad needs more shops to coach. Nathan Geransky: Yeah. Jimmy Lea: He'd love it. Bring it on. Nathan Geransky: Yeah. Jimmy Lea: Bring it on. Nathan Geransky: Tell everybody, you, everybody needs a coach. Jimmy Lea: Everybody needs a... that's so true. Yeah. That is so true. Everybody needs a coach. Everybody needs someone to hold them accountable and inspire them towards r- achieving their goals. Nathan Geransky: Yeah. Jimmy Lea: Yeah. That's good. So you've just recently moved into the new location. Did you say a month and a half now? Nathan Geransky: It'd be a month. This week is a month. Jimmy Lea: This week is a month. Oh, congratulations. Nathan Geransky: Yeah. Oh, thank you. Jimmy Lea: What has surprised you most about moving into this new location? Nathan Geransky: The amount of, So my customers that have been with me for years they're happier now because I'm on the main road. They don't have to drive three kilometers off the highway to go to my acreage. Oh, that's right. They said- ... "You're actually closer," so I didn't realize that. I'm probably five minutes closer to Sherwood Park, which is the next big town or city here. So- Nice ... overall it's been really surprisingly, everyone's happier Jimmy Lea: Nice. Nathan Geransky: A- and so- A lot more drop-ins off the highway too, 'cause it's more visible. Jimmy Lea: That's what I was just gonna ask. Yeah. What about your walk-ins? What, how, what are you seeing there? Walk-ins, probably about Nathan Geransky: 10 new customers from last month. People walk in- Jimmy Lea: 10 in one month? Nathan Geransky: Yeah. Jimmy Lea: How does that change the energy or the culture of the company? How does that change the energy inside your business? Nathan Geransky: It didn't change too much, just that we're now, we're... I guess we're more surprised that, or happily surprised, that people are coming in and noticing us. "Oh, where do you guys come from?" "We've been looking for a mechanic for a long time," some of them said, right? Or whatever. I was just... I've been in business eight, over eight years, and now I moved here, and they're like, "Okay, good." So couple of new guys have come in and got their stuff checked out, and yeah, so it's been good. Jimmy Lea: That is good. That's awesome. Nathan Geransky: Yeah. Jimmy Lea: And they would've never found you back in that residential cul-de-sac, so thank Nathan Geransky: heavens you- No, unless you... Yeah. So a lot of it was word of mouth before, so I've never really advertised or never cared to advertise 'cause I was so busy. Just word of mouth, and everybody's coming that way, right? Tell their friends. Jimmy Lea: Oh, yeah. And word of mouth is powerful. That is very good. Yeah. That's great. And that's how it's been Nathan Geransky: great till now, Jimmy Lea: and now it's gonna become exponentially even more great. And speaking of marketing you... We have a marketing for automotive repair shops, we call it MARS, here at headquarters in October. Nathan Geransky: Okay. Jimmy Lea: You should really look at coming down to our marketing intensive. It's three-day intensive, talking all about marketing. So it's gonna be amazing. What is this? What was the finance like switching to the shop? Was it a fairly clean transition or was it bad requiring loans and such? Oh, this is from Nathan Garcia. Oh my gosh, Nathan Garcia. I thought Nathan, you, I thought you typed that in there. I was Nathan Geransky: like, " Jimmy Lea: What the heck is he saying?" What's going on here? So Nathan Garcia's, he's asking what was the financial... What was the finance like switching to the shop? Oh, from switching from the home business to the- Yeah ... the shop business, the brick and mortar. Nathan Geransky: Yeah. It was relatively painless because I had money in the bank. Jimmy Lea: So all my- Wait, so you... This is when you had 100,000 in the bank or what? Yeah. I mean- Nathan Geransky: Yeah. That's Jimmy Lea: right ... so you had to fund the whole mer- move? Nathan Geransky: Yeah. So I renovated this place. I probably put probably 40,000 or 30,000 into renovations, rewiring everything, and because it was just a lawnmower repair shop before. So I moved walls, built mezzanines, put voids in rewired everything. Yeah, so now we're down to minimal funds again, but I didn't have to borrow anything. We're all- Oh, yeah ... all our books are paid up. Everything's good just because I had money in the bank. Otherwise- Jimmy Lea: Dude ... Nathan Geransky: I couldn't have done this move. Jimmy Lea: That's Nathan Geransky: awesome. I'd have been out of- Congratulations I'd have been, I'd have been looking for a job. Jimmy Lea: And so would've Justin, and Devon, and- Nathan Geransky: Yeah ... Jimmy Lea: noah and- The Nathan Geransky: other Jimmy Lea: five Nathan Geransky: other guys. Yeah. Yeah. For sure. Jimmy Lea: Oh, yeah. Oh, you guys all would've been looking. Yeah, 'cause the county shut you down in being in that residential area, right? They're like- Yeah. They- We're not gonna renew your license anymore." That's right. So they said, "Look for a new shop, and when you do, then we'll worry about your license then." So they kinda held it in limbo. Wow. I'm glad you got in there. I'm glad that you've- Yeah ... seen success there. And you've made 100,000 before, so you'll do it again. Nathan Geransky: Do it again. Yeah. Yeah. Jimmy Lea: Yeah. And congrats- Nathan Geransky: easier now because we have systems in place. Well- We can- Jimmy Lea: Yeah. And what does the shop look like today? How many bays are you at? How many lifts? What does that look like for you today? Nathan Geransky: So we have three bays, three lifts in our new shop here, and we could use the old shop for, like I have a wheel align machine. I do ADAS calibrations and everything. So do all that over at the old shop, so we're kinda running both shops. So I guess moving from a two-bay shop to a five-bay shop now combined. So it's been pretty amazing. Jimmy Lea: That is very Nathan Geransky: cool And yesterday we're like, "We could use four more bays 'cause we have so many customers." Jimmy Lea: Oh my gosh, yeah. Now, so now you need to be a seven-bay shop. Nathan Geransky: Now we need to be a seven-bay shop, yeah. Jimmy Lea: Under brick and mortar, and then still have the- Yeah ... two at the house if you need them. That's the overflow. Nathan Geransky: Yeah. Jimmy Lea: Oh, that's cool. Congrats. So w- are you expanding? Are you gonna grow? Are you gonna take the businesses next door? What what does that Nathan Geransky: look like? So the next door, there's a body shop next door which owns this whole building. So my building's a 50 by 50 shop. So 30 by 50 is the shop side, then we have a mezzanine and office space on the other side of it, Jimmy Lea: okay. So you can't take any more space. You're pretty well Nathan Geransky: landlocked. No, I cannot here, yeah, landlocked, unless I buy land beside me, which, another guy has it, I could buy from him, but it's got lots of environmental problems, Jimmy Lea: oh. Nathan Geransky: Maybe in the future, see how it goes. Jimmy Lea: Okay. Keep your eyes open. You m- might find another shop- Nathan Geransky: Yeah ... Jimmy Lea: somewhere in the area. Nathan Geransky: Yeah. Jimmy Lea: That would be good. Nathan Geransky: Yeah, my next shop would be at least five, 10-bay shop if I'm going again, Jimmy Lea: oh yeah, for sure. For sure. Nathan Geransky: Yeah. See how this works Jimmy Lea: out- so I- ... and go from there ... I read in your notes something interesting that you're doing in sending out handwritten thank you cards. Yes ... what inspired that? Nathan Geransky: So we're trying to be different in our shop, like community-based, right? And we're like... So we have, So all of our work orders are in a folder. They have Nathan's Garage folder all done up in our deckling and everything. And so every work order, people are surpri- like when your work order is done, we're not just giving you paper, we're giving you a folder and being professional. Jimmy Lea: Oh, wow. Nathan Geransky: And so these, Like a postcard, we got a... There was a sale on postcards. We were like, "Hey, we should put this in there." And Napa, we had Napa brand it at all, so for our... If you like, for our warranty or "Did you know that your vehicle has three years, 60,000 kilometer warranty since it got repaired here?" And on the back of the cards, we write a note of thank you for whatever they came in for, your oil change or your diagnostics or tire changeover. So my wife writes them all out for me, and I sign them and we mail them out. Oh, wow. A few customers that come in, it's like, "We got mail." Where like they're all excited to get mail, and they're like, "Oh, it's from Nathan's Garage." They're like, "You guys are pretty awesome." Jimmy Lea: But That Nathan Geransky: is Jimmy Lea: awesome. That's good ... Nathan Geransky: I knew it'd be a good result, but I wasn't expecting maybe that good. But our people- Nice ... were excited about that, Jimmy Lea: oh, that's very cool. Nathan Geransky: Yeah. Jimmy Lea: That's very cool. I'm glad that they're responding well and Nathan Geransky: enjoying it. They put it on their fridge and everybody sees it when they come in the house. Jimmy Lea: Hey, there you go. Nathan Geransky: Yeah. Jimmy Lea: Oh, I love it. I love it. I... You talk about it, it was better than you expected. What's something that you have implemented, besides the postcards that you didn't think would make a big difference and it turns out that it did? Nathan Geransky: The postcards and I guess the envelopes or they are folders. Jimmy Lea: Yeah. Nathan Geransky: People like, they're always happy to get... one guy was so ecstatic about g- getting a folder. That's what started this, 'cause we gave him a black folder at first and put his stuff in there, and he's "Oh, a folder." He's "We don't get these." So ha. So I'm, I made a whole bunch, like 500 folders and with our branded on there handed to all the customers, and people are always surprised and happy. You f- hand them a folder and your keys, and they're like, "Oh, this is professional." And they're always good results in that. And they're like, "Okay, this is not just a backyard garage or an ordinary garage," right? 'Cause we started at the other place already. Yeah. So now the new place, everybody's "Okay, this is..." I think that's a- It's Jimmy Lea: legit. Nathan Geransky: Yeah, it's legit. Yeah, for sure. Jimmy Lea: Oh, good for you. In Canada they have a little bit different program with NAPA. I- in the United States you're NAPA AutoCare, and in Canada you can be an AutoCare, but then there's the next level, which is AutoPro. NAPA Nathan Geransky: AutoPro, yeah. Are Jimmy Lea: you guys an AutoPro? Nathan Geransky: We are AutoPro now, yeah. So as of January we're at AutoPro. Jimmy Lea: Congrats. Nathan Geransky: So that's been great. Yeah, so they... All their war- labor w- and parts and everything parts and labor, three years, 60,000 nationwide And they'll... If you're waiting for your part, they'll put you in a hotel, they'll pay for your towing- Jimmy Lea: Oh my Nathan Geransky: gosh ... everything else, wow. Yeah. Yeah, Jimmy Lea: that's that worry-free guarantee. Nathan Geransky: Worry-free guarantee, yeah. And for the new vehicles, there's 10 year, 100,000... 10 year, 400,000 catastrophic failure, up to $5,000. Wow. Which is a pretty phenomenal new car warranty. Jimmy Lea: Oh, yeah. Nathan Geransky: Yeah. Jimmy Lea: A- and when you say new car warranty, like new to your shop or brand new 2026? What are you talking about? Nathan Geransky: New under 40,000 kilometers. Like brand new. Jimmy Lea: Yeah. Nathan Geransky: Under 40,000. They have to register through you. We're supposed to do most of their oil changes, all their maintenance. Jimmy Lea: Yeah. Nathan Geransky: And then if they do that, then they they get the warranty. Jimmy Lea: And did you say up to 400,000 kilometers? Nathan Geransky: Yeah, 10 year, 400,000, which is phenomenal. Holy Jimmy Lea: mackerel. Nathan Geransky: Yeah. If your transmission blows up or your motor blows up at 300,000 they'll reimburse you up to 500... Five, $5,000. $5,000? Yeah. Jimmy Lea: Oh my Nathan Geransky: gosh. Which is better than nothing. Jimmy Lea: Bro that's amazing. Yeah. That's awesome. Congratulations. I'm glad you're- Yeah ... with NAPA and NAPA Auto Pro program. They- Yeah ... they have a great program. They're gonna do you very well. Very cool. Yeah, Nathan Geransky: no, I'm pretty excited about it. Yeah. Jimmy Lea: Nice. Let's talk about, It feels like I've been Nathan Geransky: starting my business all over again. Jimmy Lea: Yeah, right? Yeah. All the excitement and the energy- yeah ... that, that instills. Yeah. Nathan Geransky: Yeah. Jimmy Lea: Nice. Talking about you and Noah Noah's your son. He's working the front counter. Nathan Geransky: Yeah. Jimmy Lea: D- how closely do you and Noah work together on your financials? Nathan Geransky: Very close, like daily So we're working it out Did you guys work with Dani on Jimmy Lea: your- Nathan Geransky: Yeah. Yeah. Jimmy Lea: Wow. Nathan Geransky: So we went from QuickBooks Desktop to QuickBooks Online with our bookkeeper, and then so Noah kinda took over that, and we're kinda working back and forth trying to figure it all out 'cause I used to like for financials was like, "I don't wanna deal with this. Give it to the bookkeeper. Deal with it. She can deal with the accountant. I'm gonna fix cars." But realizing it's, how important it actually is, and that's what it's all about. So we need to dig into it and figure it out. I need to figure it out, which I have. Yeah. It's come a long ways, for sure. Jimmy Lea: Yeah. No, I, and I'll bet there's a lot of technicians out there right now that are like, "Oh my gosh, I don't wanna do the books. This is something they hate to do." That's exactly what Nathan Geransky: I didn't wanna do. Yeah. Sure. Jimmy Lea: Yeah. They, maybe they come in on a Saturday morning for a couple of hours trying to get it done. They're trying to do- Yeah ... the full week's worth of stuff. Nathan Geransky: Yeah. Jimmy Lea: Yeah. It sounds like what you're saying is it's better to have a person who's able to do it for you if you're not the one to do it. Absolutely. Yeah. But even then, you need to have your fingers in that cookie jar. You still have to Nathan Geransky: get involved. Yeah. Jimmy Lea: You still gotta Nathan Geransky: be involved. Which that's my where I'm going now is where we always need to be involved with that. That's what I'm learning. So that's part of the- Yeah ... manager role that I'm learning to do. Jimmy Lea: Yeah. It's the big nemesis that you're facing. It's the big- Yeah elephant in the room. Yeah. And how do you eat an elephant? It's one bite at a time. So now you're doing it. You're in there. Yeah. You're doing- Yeah ... the steps you need to take to get to that point where you can be the manager you need to be and the owner you need to be, the owner that your business demands. And that's so important. Yeah. And you recently joined BNI. I was a member of BNI for oh, two and a half, three years when I had a landscaping, house cleaning- Okay ... handyman business. Nathan Geransky: Yeah. Jimmy Lea: What have you discovered so far with BNI? Nathan Geransky: I think it's the next step. I just recently joined got inaugurated or whatever the other day, like joined their group, right? Yeah. Passed all their, You bas- have to apply for it and make sure the right fit for your chapter. So I passed all that. So yeah, I just started. I think it's a good next step for my business to become more manager mentality, and looking working for my business or on my business, I should say. So yeah, I think it's a... That's why I joined it 'cause I feel it's the next best step, and referrals, and they give you more business, at the end of it. And more- Yeah ... helping make a community out of it, so which is great. Jimmy Lea: Yeah. Yeah, you will. You'll discover quite a bit of community out of it. Yeah. What I discovered is the more I was able to come in and give, to give knowledge- Definitely, yeah ... to give information, to give understanding, to give tips and tricks and reasons why, and this is for automotive you would say, "Th- this is what a timing belt is. This is what it does, and this is why it's important for you to go to a certified, a trained, certified automotive repair shop. And by the way, that's who we are. We, this is what we do." Yeah. So for those of you who don't understand BNI, they only allow one company, one business from one vertical into the chapter. Yeah. So Nathan will be the only automotive repair guy, person in the, in that chapter. They could have a collision person. They could have a quick lube person maybe. That might be a little bit Nathan Geransky: too close. No, I think it's all automotive is different. Collision would be, yeah, they would have a collision person. They have all your lawyers and financial people and bankers and- Jimmy Lea: Yep. Yeah ... Nathan Geransky: everything is... There's 34 people in that group, so it's a pretty big- Oh, it's a big group Chapter. Yeah, a very big chapter. They've already done over a million in referred business already this year. Jimmy Lea: Oh, wow. Nathan Geransky: So it's a- That's phenomenal ... quite a a healthy group to be into. Jimmy Lea: Yeah. Nathan Geransky: And yeah, their motto is "Givers gain," so you wanna give as much as your information, like you were saying, help them understand what their car needs, right? Jimmy Lea: Yep. Nathan Geransky: Or what's their tips of- And maintenance, big maintenance stuff, Jimmy Lea: oh, yeah. Nathan Geransky: Yeah. So I think it's gonna be good. Jimmy Lea: It's gonna be really good. Nicole's giving a shout-out here as well for BNI. It's a wonderful for their shop. And Nicole, glad you're in BNI. Congratulations, that's awesome. Yeah. One of the things that I would love to see auto repair help educate the industry is a lot of people think, "Oh, my manual says I can go 17,000 miles before I change the oil. My manual tells me I can go 10,000 miles. My manual tells me I can go 9,500 miles before I need to service the oil." That's not true. Nathan Geransky: Because so if you look in your manual too, it'll say extreme circumstances or extreme duty, which is most of our cars, especially in Canada, you have such extreme hot, cold, and everything else. You... So basically our cars are running extreme duty all the time. Jimmy Lea: All the time. Nathan Geransky: So your maintenance is a quar- like probably half of what it should be per- Jimmy Lea: Yes ... Nathan Geransky: less time- Yes ... to say, less kilometers. Jimmy Lea: Yes. Oh, for sure. My- Yeah ... my father taught me to treat my F-150, my truck, and this is the way he treated his Ford F-150. He says, "I treat it like a Honda. Every 5,000 miles I go and get it an oil change, and it's always synthetic." Nathan Geransky: Yeah. Jimmy Lea: Never conventional. He was always synthetic. I did that, and I drove that truck 225,000 miles. I sold it, and to this day I really wish I still had that truck. Nathan Geransky: Yeah. Jimmy Lea: It was a great truck. And man, it just kept running and running. Yeah. So yeah, the more you can help educate the industry- ... not even just the industry, but the public. The more you can help- Yeah ... educate the public as to what they need to do with their vehicles, the better it's gonna be for- Oh, absolutely. Yeah ... Nathan Geransky: for you and for repairs Jimmy Lea: too. Nathan Geransky: And that's what joining BNI, that's my goal is to help people. People are like, "I just turn the key and drive." It's you need to do more than that. Yes. Go to Quick Lube, but that doesn't do you good. What about your transmission oil or brake fluid or all this other stuff people don't think about? Jimmy Lea: Yeah. No, it's- They Nathan Geransky: forgot about all those, right? Jimmy Lea: It's not the... Yes, absolutely. Yeah. So you talk about the extremes where you are in the hot and cold. Yeah. I grew up in Las Vegas. I... That was extreme hot. Nathan Geransky: Yeah. Jimmy Lea: We had extreme hots. A- in fact, I would change my radiator fluid at the beginning of summer and at the end of summer because there were- Okay ... many days that we would be up there in the 110, 115 degrees, which is in the 40, 42 Celsius. Nathan Geransky: Oh. Jimmy Lea: Maybe 46 degrees Celsius. It's very hot, and I knew that radiator fluid, it probably didn't need to be done twice a year, but I did it twice a year. Nathan Geransky: Yeah. Jimmy Lea: Are you calculating Fahrenheit or Celsius? Sorry. Nathan Geransky: No, I'm my battery's running out. Jimmy Lea: Oh, no. Get it plugged in quick. Nathan Geransky: I'm trying. Jimmy Lea: So- ... let's talk about the future of where you're going here, Nathan, as we come in to land this plane. What does the future look like for you? Here you are a month and a half in your new location. You already need another four bays. What does the future look like for Nathan and Nathan's Garage? Nathan Geransky: Future would be, like I guess my sons would take over, Justin and Noah. And I would be more off-site, is my next plan, to be train them, which is Noah's. I'm training Noah already, or we're working together. And then Justin would be more of a leadership role. So yeah, just more, just progress along, see how it goes Jimmy Lea: I love it. I love it Yeah The future is bright. It is definitely- Yeah ... bright. A lot of things happening there. So what would you say to a shop owner a- as we talk about things and go into landing this plane? What would you say to other shop owners that are on the fence about them getting coaching and training? Nathan Geransky: Coaching and training, it would be, It's changed my life, changed my business life for sure. More realizing that you need coaching is, unless you went to business school and you learned all that stuff already and then you became a mechanic. But I think from mechanic to being owner, I think now that I've done it, it's it's a no-brainer. You need to do it. And the correct coaching- Yeah ... like the guy that fits with you, right? Your, like with Chad with, he owns a shop too where you can relate. Not like some people are very schooled knowledge, right? Or like educated, which is good, but you need to be also down to earth terms, I guess you call it. Jimmy Lea: Yeah. Yeah. You gotta have boots on the ground But yeah, so it's a- you've gotta be- That's right experienced it. Nathan Geransky: Yeah. Jimmy Lea: Yeah. So l- everyone needs coaching, and you've gotta find- I would say- ... the right coach. Nathan Geransky: That's correct. Jimmy Lea: So how do you judge that right coach, Nathan? What would you give advice to let's say Nicole or Nathan or John? What would, w- advice would you give them as they're looking for a coach? Nathan Geransky: I don't know. I guess I don't know any other coaching, but sorry. This is, It's been a good fit with Chad, and yeah, it's worked out well. So I'm not sure. I've never experienced any other coaching companies or anything, but from what I've gathered and all the reviews or suggestions from the institute has been great. I think- That's awesome ... that'd be the way to go for sure. Yeah. Thank you. I'm glad you hit a grand slam here at your first go. You didn't know any other coaching companies. Yeah. I'm glad that you teamed up with us. I'm glad we were able to lock arms with you and help you navigate this industry as a business owner. Jimmy Lea: Yeah. 'Cause there are a lot of other coaching and training companies, and you gotta evaluate. Would that be a match? Would that be a fit? If everything is a party we don't need to pay for our friends. No. Yeah. If everything is a joke then no, that's not what we're here for. Yeah. If everything I'm doing is not increasing my business, then you need to look at a different coaching and training company. Nathan Geransky: Yeah. Jimmy Lea: And yeah I'm so glad that you found the institute when you did so that we could do the things that we've done together. Yeah ... and Chad has been a major force in driving that forward. But he's clearly and still a backup singer to you, Nathan. You are the star here. You are the star, and you have done a tremendous job. Congratulations. In fact, Yeah ... chad gave you a shout-out here a minute ago. Nathan is humble. He's becoming involved with BNI and NAPA and becoming a spokesperson for the industry, so congratulations to you, Nathan. Nathan Geransky: Oh, thank you. Jimmy Lea: A lot of people are seeing what you're doing, and- ... and it shows. It's awesome. All right, last and final question here, Nathan. What are you most excited about right now? Nathan Geransky: Just moving forward and getting fit into our new location. Just progressing, it's keep on going. Keep growing- Jimmy Lea: Progressing, building, growing Nathan Geransky: yeah, building. You learn every day, and I'm, I keep learning. It's if I'm not learning, you're not living. Jimmy Lea: Yeah. Amen. Amen, brother. Yeah. Oh, for sure. For sure. Congratulations to you, Nathan. Thank you so much. Pleasure. Thank you for spending the time with me to talk about your journey and that you're experiencing. And for those of you who are listening, if your story sounds familiar to Nathan's and this is something you wanna look at, the institute, when we sign off here, there's gonna be a QR code. So get your smartphone out, get the, get ready to scan this code. We can sit down and have a conversation and see if the institute is a fit for you. There are many who- Yeah ... come to the institute and wanna make the changes, but at the end of the day, if you don't make the changes, if you don't do the work, there is no magic bullet. There is no silver bullet that's gonna make things happen. You've gotta do what Nathan did. You've gotta sit down and stick to it and go forward and make stuff happen. So Nathan- Even at first too- ... thank you Nathan Geransky: so much for joining. So- Jimmy Lea: Go ahead. Nathan Geransky: Even at first too it was like I couldn't afford the coaching. It was like, or I thought, right? But now it's like I can't afford not to, so that's where we've come to. Jimmy Lea: Yeah. Yeah. And you know what? And Nathan, to your point, I'll bet there's many out there that feel the exact same way. "Oh my gosh- Yeah ... I just really can't afford to do it. I can't afford to do it." And then when they do it, they're like, "Oh my gosh, why didn't I do this sooner?" Nathan Geransky: Should've done it years Jimmy Lea: ago. "I should've done this- Yeah ... years ago." Yeah. "A year ago, two years ago-" Yeah. "... three years ago." Nathan Geransky: Yeah. Jimmy Lea: Yeah. Congratulations. And I hear that your future is bright. In fact, it's so bright I brought my shades for you. There you Nathan Geransky: go. Jimmy Lea: Nathan, your future is bright. This is gonna be awesome. I'm so excited for you. And for everybody who's listening I love this industry. I love what we're doing. As we lock arms together, we're gonna make a big difference in the world and in the industry. So Nathan, to you, thank you very much. You're welcome. And to you listening, my friend, thank you very much. Any final words, Nathan? Nathan Geransky: Just keep on going. Jimmy Lea: Keep on going. Hey, there's a little fish that kept saying that as well. "Just keep swimming. Just keep swimming." You're awesome. Thank you very much, brother. Nathan Geransky: Yeah. Jimmy Lea: Take care. Look forward to talking to you soon. Everybody listening, grab out your smartphones, scan this QR code. Let's get together. Let's take those next steps in your business journey to become the shop and the business and the owner that your business demands. And with that, my name is Jimmy Lea. I'm with the Institute for Automotive Business Excellence, and I'll talk to you soon. Thank you.

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Remarkable Results RadioApril 24 · 42 min

The Dealer Alternative Advantage in Today’s Auto Repair Industry [THA 482]

Thanks to our Partners, NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:8e59eec7-a235-4fa3-a072-956fea3fe478-7" data-testid="conversation-turn-4" data-scroll-anchor="false" data-turn="assistant"> *]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:49a777bf-d263-4496-bf0b-2eb3a46ac96a-11" data-testid="conversation-turn-24" data-scroll-anchor="false" data-turn="assistant"> In this episode, host Carm Capriotto sits down with Larry and Kara Rose of Larry’s Automotive in Newburgh, Indiana, to celebrate their recognition as the NAPA 2025 Auto Care Center of the Year. Their story is more than an award; it’s a roadmap for building a sustainable, family-driven business through discipline, culture, and long-term vision. What You’ll Learn How Larry turned a driveway side hustle into a scalable businessWhy Kara’s systems and structure were key to growthA clear, intentional plan for family successionHow strong culture outweighs individual talentThe impact of daily training and continuous learningWhy service advisors are critical to customer trustGrowth strategies like “dealer alternative” positioning and coaching Building a lasting shop requires more than technical skill; it takes structure, culture, and a long-term vision for people and growth. Larry and Kara Rose, Larry’s Automotive, Newburgh, IN Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/Subscribe on YouTube:https://www.youtube.com/carmcapriottoFollow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmastersJoin Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976Join our Insider List:https://remarkableresults.biz/insiderAll books mentioned on our podcasts:https://remarkableresults.biz/booksOur Classroom page for personal or team learning:https://remarkableresults.biz/classroomBuy Me a Coffee:https://www.buymeacoffee.com/carmSpecial episode collections:https://remarkableresults.biz/collections The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion.https://remarkableresults.biz/Diagnosing the Aftermarket A to Zwith Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.https://mattfanslow.captivate.fm/Business by the Numberswith Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.https://huntdemarest.captivate.fm/<a href="https://autorepairmarketing.captivate.fm/"...

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