Building a Winning Scoreboard For Your Auto Repair Shop [RR 1098]

0:01This is the Automotive Repair Podcast Network. Hey everybody, Carm Capriato, Remarkable Results Radio. Good to see you as always on a weekly basis with the Remarkable Results Podcast. And of course, each and every Friday afternoon, we, we do the Town Hall Academy with me and a multiple bunch of guests, and we actually broadcast that out at 2:00 PM on social media every Friday.

0:28And Of course, you'll find it on our wonderful listening app. Anybody know about that? I hope you do. My God, it's the coolest everything in one place for your smartphone. The ultimate professional automotive playlist that I love to call it. We got this really neat new URL. How about this? arpn.app. What's ARPN stand for? The Automotive Repair Podcast Network. Please put that app on your phone and have fun with it, just like I do.

0:57We have a really cool episode picked out for you that my friend Jerry Frank is going to be with us. We're going to talk about gamification. We've done episodes on this before, and I think you've heard a lot about it. Jerry's got this really unique way to look at it. And since Jerry is a coach, I'll introduce him in a sec. This is Coffee with Carm and a Coach.

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1:50After all, it's your shop, so it's your choice. Let us prove to you that TRAX is the single best shop management system in the business. Find NAPA TRAX on the web. At napatracs.com. Let me introduce Jerry Frank to you. Hello, Jerry. Hi, Carm. Thanks for having me. Oh, I'm glad you're here. He's from serviceadvisortraining.com and also maverickshopowners.com, and we sure appreciate Maverick and Service Advisor.

2:21Maverick sponsors— is a partner with Hunt, and you're a partner with Craig O'Neill on our network. We appreciate that. And before we even get going, let me give just high fives and kudos to your wife, Laura Frank, and of course, Leanne Best, who created Breaks for Breast. And I know that the amount of money over the years is $2.4 million to the Cleveland Clinic.

2:43We were there just about a month ago. I missed you. You were busy doing stuff. Yeah, I, I had a ball joint, I called it, actually my hip replaced not that long ago. So. Uh, yeah, I was kind of in, in a little pain back then. You didn't wanna hold us up. I get it. Okay. Well, anyway, Jerry's here with us to talk about gamifying your business for maximum results and profit.

3:08So anyway, before we get into that, what's on your mind? What's going on with shop owners today, Jerry? Yeah. You know, there's, there's a lot of different things. You know, there's this thing called AI that can be a good thing or a bad thing, and that's out there. So, you know, I see a lot of that. You know, sometimes people want to delegate everything to AI, like answering their phones.

3:29I'm not a big fan of that because we lose the relationship in some of that stuff. I think that that's super important. But, you know, shops are doing great, shops are doing well. Our members are really crushing it. And, you know, after— Carmen, I've been doing this for 35 years. You know, we have a wonderful industry that we're in. It's recession-proof. Good economy, bad economy, low gas prices, high gas prices.

3:56We always tend to thrive. So what a wonderful industry. Yeah, we have our ups and downs, no doubt. But the people that pay attention deeply to their business, I mean, they're engaged with it. They're in the, you know, deep end of the pool with their business. They see the trends, but they're never as deep as some other people. Actually, their highs are pretty high when they get there.

4:16I know that for sure. Oh, you sold your shop, what, about a year ago? It's been 3 years just recently. 3 years in March. Yeah, it seems like only yesterday, you know, but yeah, after, uh, 35 years. I missed counting on that. Well, look, let's jump in. You were telling me about a great story about a bowling night you had. Yeah, so, you know, I guess that's where the light bulb kind of went off with me.

4:41At the time, we had 2 shops. And, you know, we always like to do some fun things with the staff and the employees. So maybe 4 or 5 times a year, we've done all kinds of things from, you know, go-karts and ball games. But we had a lot of bowlers. I like to bowl. So sometimes when the boss likes to bowl, that's where we're going, right?

5:02We're going to go to the bowling alley and we're going to have some fun one evening. And we did that. And what really struck me was, you know, we had maybe 15 folks there from our 2 shops and the competitiveness, just kind of the light bulb went off. I mean, with every strike, they're high-fiving, you know, the guys, the gals, everybody was really into it.

5:22And I guess they don't like to lose, they like to win. But driving home that night when I saw that, I asked myself, you know, how do I bring this to the shop? I can see how competitive they are. How do I bring a little bit of that back into the shop and kind of make a game out of some of it, have some fun too?

5:41What you did is something that I talk about a lot, and that is from my mentor years ago, always told me every time he saw me, beginning of the conversation and the end of the conversation, "Karm, pay attention." And I think it helped fine-tune my intuition, Jerry. And what you're telling me about this is you saw something, you felt something, and you said, how can I make this a part of our culture?

6:06And how can I bring that competitive nature to the shop? And I think if more of us concentrated on paying attention to the things around us, the same kind of things will happen to them for sure. Yeah. So keep your eyes open, you know. And sometimes I think some of the problems with— at least it was for me as a shop owner— sometimes you're, you know, knee-deep in it and you don't see what's happening around you.

6:33So before we get into gamification, we really need to stop and figure out what's the real problem. Yeah. And I think that's— a mentor of mine told me once, you know, often we want the prescription, right? Imagine just walking into the doctor's office and, you know, they've got a garbage can full of pills and say, here, take one of these, that's going to work.

6:54It doesn't work that way. I love Mike Michalowicz, the author Mike Michalowicz. I've had him on the show, you know. Yes, I remember. But in one of his books, he said the biggest problem most business owners face is they don't know what their biggest problem is. Man, that always stuck with me. You can't give a prescription to a problem you haven't identified.

7:19I want our listeners to think about that sometimes because, you know, often we jump to the problem. Yeah, I know what it is. But we haven't really thought about it to really kind of dig deep into it. So wait a minute. Are you telling me that 2 aspirins, call me in the morning doesn't work? It doesn't work. No. All right. I love it.

7:39So obviously a lot of the problems that people may have, low car count, maybe billable hours, you know, an ARO issue, you gotta stop and look at that. Yeah. All of that. You know, I can give you just a, just a few examples, you know, low car count. Right? I mean, as soon as we have, you know, a shop struggles with car count, right away they jump to conclusions.

8:02Again, not diagnosing the problem. Right away they think maybe it's the economics, bad economy, I got a, you know, bad location, you know, I need to spend more in marketing. And the problem could be right in front of them. You know, have you been listening to your phone calls? I know for me, a quick story, we were spending money trying to get the car count up in the shops.

8:26And one day, my CSR called off sick. And my lovely wife, Laura, went in and answered the phones in the shop. And guess what? For that week, we didn't have a car count problem. You know, plenty of cars. Lo and behold, I found my service advisor was kind of throttling the car count, right? We're too busy, don't take anything in. And here I am as the shop owner, Spending money trying to get the car count up.

8:50So that's a great example of what I mean. You gotta really try to diagnose the problem before you offer the prescription. Too bad there wasn't some kind of device, you know, like a PicoScope you can put on the business. Yeah. Don't we wish there are, but that's maybe for another episode. There's some things I really watch closely. Wait, wait, love Jerry be your PicoScope.

9:13I get it. I get it. Yeah. You know, another great example is low billable hours, right? Everybody tells me, I hear it as a coach, you know, I got to get my hours up, you know, and they tend to want to blame it on the technician. You know, I've got a lazy tech. This guy's just unmotivated. And often it's not that at all.

9:35Again, not being able to really kind of dig in there and diagnose the problem. The question I always think, or I kind of chuckle about, you know, Maybe they are always hiring techs, right? And they've got these techs that are stuck in that 30 to 35 hour a week, billable hours a week mode, you know. And I say, doesn't it seem like you keep hiring and firing the same guy?

9:57Maybe it's not the tech, you know. Maybe there's something else going on in the shop. Totally get it. And, uh, you know, how do you deal with a person who doesn't have any net profit? Oh boy. Yeah, well, again, I'm a numbers guy, and you know that, Carm. So I like to kind of look back at numbers and really kind of get a look at what's going on.

10:18Great example, I can remember years ago I'd get my P&L in the mail. Back then email wasn't around, or not so much. My accountant would actually email or mail me, you know, the financial statement. Mine would deliver it to me. Oh, that's nice. That's better yet. You know, right away we jump to the bottom line. Hey, what's on the bottom? Net profit.

10:42You know, we went there and it's like I either made money or I didn't make money. Well, you should know that long before your P&L ever comes. The real answer is way above the line. You know, what's going on in your business? How are the margins? You know, the car count, the average repair order, all of that. There's a lot that goes into net profit.

11:00And sometimes it's not doing more. You know, usually we try to fix it by doing more, more cars, you know, more techs, more bays. And sometimes the answer isn't that, it's just kind of focusing maybe on that profitability side. Imagine having an efficient, well-running, high-speed horsepower engine. I actually mean shop. Wow. All cylinders, good gas, wide open carburetor. I'm aging myself. And on both sides of that equation, you know, I mean, I can remember years ago working, you know, 60 hours a week and barely eking out a living at this business.

11:42And then, you know, you fast forward a little bit as you start to, you know, figure things out and kind of really understand what's happening in business, you know, to working, you know, I don't wanna say very little, but working on more building the business, you know, than working in it. All right. So once we know we figured out what the problem is, then how do you build a game around that?

12:02When I think about any game. A game needs a good scoreboard. I'm a football fan. I know you're a Buffalo Bills fan. I'm that Cleveland Browns fan, kind of stuck in limbo all the time. Oh, but stop, Jerry, for one moment. Currently, at this moment right now, I'm a Buffalo Sabres fan. We're in round 2 as we record this, but go ahead.

12:23But, you know, you look at a football team and, you know, the players are there on the field and all of them look up and they can see everything they need to see in that scoreboard. Are we winning or losing the game? You know, what do we have to do? In a hockey game, you know, they can pull the goalie. There's things they can do to try to change the odds.

12:43So you need a scoreboard. It's got to be visible to everybody. I think there's some key pieces in that. But, you know, the first part is you got to have the scoreboard and put it where they can see it. The second part, you know, a lot of times when I think about a scoreboard, is can the players influence the score? Can they do something about it?

13:06You want to improve cart count? Well, that's maybe not something a technician can do. She doesn't have control over that number. So the player's got to be able to influence the score. And then lastly, I think, and it's a big one, have the players record their results. Right? So many times I see a business owner keeping score. That defeats the purpose. Have your service advisor write down the score.

13:36Have your technicians write down the score for what they're responsible. Something magical happens when they write it down. Because they're hunting for a number or a level of proficiency or something that they are supposed to do in order to get the score to work. Shop manager can manage that. I don't want to jump too far ahead, but right now, if they— I'm thinking that they need to know their role in this scoreboard.

14:02In a game, if I'm a defenseman, if I'm on offense, whatever my role is, the kicker, the goalie, I've got to solidly know my role. Now, in sports, paying— they're getting paid all kinds of money. They're rehearsing and practicing every single day. Now, in a shop, What is your role in this gamification piece? Or actually, what is your role in the shop and how do we take that to a new level?

14:25Because we're going to actually pull numbers for it. They got to know the role. Yeah, for sure. And you know, the other thing I think about, like when my team goes home, when that technician goes home at the end of the day, did he win? Does he even know? Often that's not the case. Is there a level of satisfaction that they could feel You know, entering that vehicle, driving home, God, I had a great day.

14:48We met our goals. We didn't meet 'em 100%, but we're on our way. You know, we've had a couple of stumbles today. Tomorrow will be better. I mean, those are positive attitudes to have. Yeah, for sure. You know, I think sometimes when you talk about the roles, right, you can't be that jack of all trades, right? Sometimes we want to do that, but who's responsible for what?

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17:57That's N-A-P-A-T-R-A-C-S dot com. Let's go back to the shop again. You guys were very instrumental in Breaks for Breasts, and it was always that October month. Did you ever publish the Breaks for Breasts goals or how many brake jobs you did that were counting toward that? Breaks for Breasts is a great example because it's so much deeper than just an activity at the shop or sales in the shop.

18:21I think it's personal. Just so many people. But we would have a giant thermometer in our shop. We wanted to do 100 brake jobs. So at the top, you know, we would have 100. That was the goal. And then, you know, along the left side, we would have the dates. How many weeks are we going to do it? You know, the whole month of October.

18:41And then every day we would write down when we got a brake job, right? We would write it down and ring the bell. Everybody in the shop heard the bell ring. We hit the brake job. You know, we sold the brake job. And then we recorded it. We had one of those giant fathead posters, I think is what it's called, right on our office door.

18:58You know, it really gamified everything. Everybody could get behind it. And then of course, there was something in it for everybody if we hit our goals. So— No kidding. Well, that's kind of cool to hear that. I like that. Did the clients see the scoreboard? The clients didn't in that particular example. It was more for the team. But often what the clients might see is, you know, we would have them fill out a little paper represent all over the office.

19:25Yeah, yeah, all over the office. Yeah, I've seen them. And the really cool thing about breaksforbreasts.com is that all this marketing material is available there, and they— zero money is taken. Zero money. I don't mean to belabor and do a, an advertisement for Breaks for Breasts because I'm so honored to be at the Cleveland Clinic to, for the check presentation, but zero, 100% goes to the Cleveland Clinic.

19:51And there are trials. First trials are, are over with very, very successful positivity. They've gotten ready. They're going for the phase 2 of the trials. This thing is on fire. And if you guys hadn't found this wonderful laboratory inside the Cleveland Clinic 11, 12 years ago, Wow. Gets me emotional to think about it. Got nothing to do with me. It's all of the, the— I know it's the girls, ladies that, that got it all going.

20:23So just walk me through specific numbers that you would put on a scoreboard as an example. For my service advisor, we would put various numbers on there, big whiteboard. We would have things like car count, margins, what the goal was, you know, car count. Margins, average repair order. I'm gonna talk a little bit about something with average repair order in just a moment because I think it's, it's huge.

20:50But again, if we hit the number, we wrote it down for every day. What were the results every day? Service advisor would write it down. If we hit the number, we'd use a green, you know, right on a dry erase board, a green marker. If we didn't, we would use a red. So it was very obvious. But so many times what we would uncover is maybe the advisor would say, man, we had a slow week.

21:12You know, we'll define slow. You know, we took a look at it. Maybe it wasn't a car count problem. What maybe it was an average repair order problem. So, you know, some things that we might want to do with that for the technician, I had the technician record their hours every day. When they were done every day, they knew kind of what was expected of them and they would record their hours.

21:32We would even have a top dog trophy at the end of the month. Whatever tech, you know, same trophy, we just moved it from toolbox to toolbox, you know, but it was a little bit of a bragging right. So there's a lot of different things to track, but one of the things I always feel like you have to kind of start with is stories.

21:55I think stories around everything, that's the why in a business. And a quick example, if I might, use a quick story that I've used this with the shop owners that I coach and all of that, but the light bulb goes off for folks. So billable hours, I mentioned billable hours. How the heck do we get our billable hours up? And one of the stories I use in the shop to start this whole thing, maybe tracking technician hours, I take a nice little Amazon box, 4 sides, just a plain old box.

22:28And on one side I write $150, right? Talking about this in the meeting, here's this box, $150. And I said, let's say this box represented a $150 part that's gone missing, right? Core, alternator, you know, whatever it is, right? It got delivered, I'm reviewing the invoices and it's gone. I know We would be what I call dumpster diving for it, right? What happened to it?

23:00We'd be looking for it. And I get everybody to agree. Now I turn the box around and guess what's on the other side? It says 1 hour, pretty much the same dollar amount, right? $150. Maybe your average labor rate's $150. I'm just using that for an example. Why don't we look for that? Yeah. You also lost the cost of the part plus maybe the, the hour that it took to put it on.

23:24Right. Is that what you're saying? Yeah. Yeah. But, uh, you know, I, I think the why is always important. So absolutely. We try to do that. In fact, the why, that 3-letter word in my mind, you know, after I've read Simon Sinek and we've done shows on why, and so many coaches come on and talk about why every time I look at an issue or talk to people, I always think of why.

23:51So why? And if you keep drilling down into the why, you will find something that will finally be relatable to the individual who may not get and understand, because there's always a why behind things. And another comment that I have, and I'd like to know from you, if in these scoreboards that say there's one for back of shop, one for front of shop, I believe that the back of shop people that know what the goals or the scoreboard is for front of shop and front to back makes them more engaged in creating a total comprehensive business.

24:31Yeah, most definitely. We reviewed all of that on a weekly meeting. And, you know, weekly meetings are very, very important. Often we would have even a team member lead the weekly meeting, but that's what we would go over, the results. What else is— I don't want to say what else is there, maybe that's not the right statement, but think about a sports team.

24:52We talked about gamifying this business, right? What happens? Your football team, your hockey team, they're watching tape. They're reviewing their performance. What did we do well? What do we need to do better? And your shop should be no different. Absolutely agreed. And a lot of our people that are in back of shop may not necessarily know why the goals are set for front of shop.

25:15And maybe some of our newer people on our counters don't really understand what the hell we're trying to do in the back of shop. One of the things that I think about a lot is in these scoreboards, and it's public to everyone, there's— does there end up being some competition that isn't healthy? Well, I like healthy competition. I think that that is good.

25:38But of course there is. And, you know, when I say unhealthy, you can't always expect— everybody has to have different goals. So if we're going to use those technician hours as a goal, I may not be able to expect my entry-level tech. I know, Karma, I've got to go to your RISE document to find the proper name for that, right? Every time I hear you say the word technician, I think of the word specialist in my mind.

26:06Yes, yes, specialist. I know. Yes, I know. I gotta wash my mouth out with soap. I forgive you, my friend. But I can't expect the same for every tech. You know, an entry-level specialist isn't going to be the same as a high-level, you know, technician. You know, absolutely. And in those meetings, you can handle That overview. Listen, Bob, you did great this week.

26:30I know you're, you know, you're just a couple of years in this business. You've got, you know, a great career path in front of you. And don't be upset that Charlie, who's been in this for 20 years, is the lead, the board leader. You're going to get there. Yep. Nope. Absolutely. And again, diagnosing where the problem is, it may not be an underperforming technician.

26:48Sometimes I feel so many of those technician productivity problems are a shop problem, a shop efficiency problem. Well, that technician may be there, you know, 40 hours a week, but I only got him underneath the hood of the car 32 hours a week, you know, 8 hours he's missing in action. So you got any stories to tell about— now you've done the Scoreboard and you go back in your mind or talk about a client that you have that they start seeing a behavior change?

27:16Yeah, that's it exactly. You use the word behavior change is really important. I'm going to give you an example for average repair orders. You know, in my opinion, the most important thing if you're going to increase an average repair order is to focus on a couple of areas. Hours presented, in other words, how many hours are we finding per vehicle? Before I reveal what I feel are the good numbers in that area, let's take a look at the cars coming in our shop today.

27:50The average vehicle in the US is approaching 13 years old, 12.8, 12.6, something like that. You know, how many average miles per year are driven? You know, call it 10, 12, 15, but, you know, 100,000 miles or more. You know, we often find what the vehicle brought it in for and maybe the safety issues, but how many of those cars are running around with batteries that are 4 or 5 years old, original spark plugs, all of that.

28:21So we always preach, tell the customer the whole picture, tell them everything. So back to those hours presented, a lot of shops are finding 8 hours or more per vehicle. That measures the quality of the inspection. So if I focus on 8 hours presented per vehicle. I'm going to present all of that to the customer with good photos, good images, that the DVI tells the story.

28:52We've seen average ROEs, you know, go from $400, $500, $600 to doubling that, approaching $1,000 and more, focusing on behaviors. So is that something you want to create a scorecard for? You bet. Okay. So let me go down another lane here. I'm gonna make a right on you. Okay. Gonna make a right. You've got this incredible digital vehicle inspection, this thorough comprehensive vehicle review, which I, I like to call it.

29:25And you are listening to phone calls as an owner or as a coach, and you're seeing where the missed opportunities are. When you do this, or you're working with a, an owner that's listening and, and looking for lost opportunities. How do you turn that around into a positive for a client advisor? Years ago, I can remember going to listen to some motivational speakers when they were doing those tours.

29:55I listened to Lou Holtz, a famous football coach, championships with Notre Dame. I think he just recently passed not that long He did. And I've read a book of his. Yes. Yeah. But man, one of the things he said that stuck out with me is when you're trying to change behavior results, criticize the performance, never the performer. And think about how powerful that statement is, right?

30:26When we're looking at numbers, we're not looking at the person saying, you know, why didn't you hit the numbers? We're looking at The performance, the score on the board, how can we change that? So when you have somebody, you know, maybe underperforming a little bit, the first thing that goes through my mind is let's get it diagnosed, right? Diagnose the problem. And how can I help?

30:46Makes all kinds of sense. Any owner who's listening to this, we've all been in a situation where, good God, you get criticized and you really get down for it on a personal basis. You can do better. I know you, you're not having a great month here, Bob. I saw you do this and you know, the performance wasn't quite up to the specifications that we've always expected from you and that you have inside of you.

31:12That's a completely different way. Yeah. Help me help you to walk away and say, I can be better. You turn the I that you were told to the I can be better. You know, you, you, you instead of I, I, I, and Anyway, that is such a profound statement, and I think we as leaders of our industry need to figure out how is it that I'm going to lift people.

31:37I have to lift them in a positive way, not in a negative way. That's your point? Yep, that's for sure. That's for sure. Yes. And you know, you're always there just like a parent trying to help your child, you know, get better and better. All right, got any great challenges for the shop owners that are listening here? Yeah, I would say pick something, you know, pick one thing.

31:59So you got to start somewhere. We mentioned a few things like make sure that you've got a scoreboard that's visible. Make sure that the player is the one who's actually recording the score. I mentioned stories. I think you got to have a story with everything. Make it interesting. That's how you got to gamify it. You know, so, you know, pick one, start somewhere, and start to create that game into your shop.

32:26No doubt you can lift your culture. You can make this almost segregated individualistic thing into a much better whole. Yeah, involve them in the solution. We started off with that. I mentioned— yeah, and I was just thinking, I don't want anyone to stop and think since the scoreboard is up and it's an individualistic thing, I think, and again, to your point, if everybody is listed and there may be a little competition, it's still part of the whole success of the business and the contributions that they make for that.

33:01Absolutely. Look at any sports, you know, they're not one person. It takes a team. It takes a team. Everyone knows their role. Everybody works to their highest level of competition and they win for the team. Wow. All right. Hey, uh, this was great. Thank you. I think this was a, just a wonderful episode. I think there's a lot of stuff that are going to make our listeners think deep, long, and hard about how to bring gamification in, into their business.

33:30And, uh, and you told us a lot of great stories. Wow. Say hello to Laura Jerry Frank from MaverickShopOwners.com and ServiceAdvisorTraining.com, former shop owner for how many years were you in the shop? Longer than I can count, you know, 35+ years. Yeah. Long time. Another Coffee with Carmen, a Coach episode. Thanks, Jerry. Thanks, Carm, for having me. Appreciate it. Thanks for being on board to listen and learn from the premier automotive repair business podcast, Remarkable Results Radio.

34:01Get your episodic education on the ARPN listing app at automotiverepairpodcastnetwork.com. Also enjoy the podcast podcast on our Carm Capriato YouTube channel. Carm is all for advancing the professional automotive service industry. Until next time.