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Remarkable Results RadioJuly 7, 2026 · 38 min

Selling to the Curb: How AI Turned More Calls into Customers [RR 1099]

Shop ManagementLeadership & CultureIndustry Trends

Now playing — Remarkable Results Radio

0:000:00

About this episode

Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode What does it take to build one of the fastest-growing auto…

Key takeaways

  • —Effective leadership and a strong team are crucial for business growth.
  • —Measuring key performance indicators is essential for improving shop operations.
  • —AI can enhance customer service by analyzing call data and improving conversion rates.
  • —Creating a positive shop culture can attract and retain talented employees.
  • —Understanding market trends and preparing for retirement can significantly impact a shop owner's exit strategy.

Frequently asked

What is the importance of measuring shop performance?
Measuring shop performance helps identify areas for improvement and ensures that non-negotiables are being met, ultimately leading to increased profitability.
How can AI be utilized in an automotive shop?
AI can analyze call data to improve conversion rates and provide insights into customer interactions, helping shop owners make informed decisions.
What strategies can shop owners use to prepare for retirement?
Shop owners should focus on increasing profitability and understanding market trends to maximize their business's value when considering an exit strategy.
▸Full transcript

This is the Automotive Repair Podcast Network. Good afternoon, good evening, good morning, depending on when you're listening. To all my peeps out there, thank you so much for being here. It's Carm Capriato, Remarkable Results Radio. I've got Jesse Jackson with us, founder and CEO of Mango Automotive, and she is going to talk about some really cool things here today. We appreciate you being here, and don't forget Just in case, you know, Spotify is getting a little too complicated, and/or if Apple is, we've got this fabulous app out there.

I'd love you to get it. arpn.app, the Automotive Repair Podcast Network. A lot of things for your smartphone, of course. The ultimate professional automotive content playlist. And you see your recently played, share, all kinds of things. Make up your own playlists with our app. You'll Have a blast. Hey, we always, and for a long time, have so appreciated all the great sponsors such as NAPA Autocare and NAPA Trax.

Hey, stay ahead of the curve with NAPA Autocare's newest auto tech initiatives: Fast Track Assessments, Accelerator Immersive Training, and Tech Assist Smart Support. The future of technician training is here. Connect with your local NAPA representative for more information. Hey, let's face it, your shop management system is the most critical tool in your shop, and Napatrax will move your shop into the SMS fast lane with on-site training, 6 days a week support, and local representation.

Find Napatrax on the web at napatrax.com. Okay, I'd like to introduce you to Jesse Jackson, CEO of Mango Automotive. Hello, Jesse. What's up, Carm? Oh man, I have to tell you, I have this big question. Okay. So you get an idea. 8 locations, New Mexico, Arizona, and Texas. Stop me if I'm wrong. And you were founded in 2021. December 26th, 2021. Oh, is that right?

Okay. Barely in 2021. Did you acquire locations when you first started or did you start from one? We did. Well, we started from one, we started from zero, and we acquired all 8 in separate transactions in 5 years. Yep. 4 and a half. So question, I can only imagine that the team you have is smart, powerful, resilient. Could you have done this without, you know, just an incredible group behind you?

Oh my gosh, definitely not. I have my business partner Brian who joined Mango when we were nothing, when we had zero shops. So I'm, Forever thankful to him. And I couldn't have done this without him. As far as the corporate team, Brian and I were chief marketing officer, human resources, accounts payable, all the things until we hit 5 shops. At which point we, I think we had around 60 employees.

We collapsed and we hired finance and human resources. And our district manager who, yes, are all better at their jobs than we were at doing them. Keyword Jesse just said was the word collapse. I just totally love that word. We talk about all the issues that happen to us as CEOs and owners of businesses, but I haven't heard the word collapse in a long time.

And that was one of those reality moments that just hit you upside the head. Yeah, we just did all the things until we literally could not do them just before we opened our 5th location. My business partner told me he was spending more than half of his hours every week on recruiting alone. I said, Brian, we should really hire that out. And he said, no, no, no, we can't afford it.

And I still interviewed some people, chose someone, and then I will always remember we were in the back shop of our 5th location. It was the day we were opening it. And I looked at his face. And I knew he was totally and completely overwhelmed. I said, Brian, let's hire that HR person. He said, okay, let's do it. Based on 60 people your size, 8 shops, it's not difficult to do an ROI spreadsheet and say, if I could get Brian back 4 hours working for, you know, you know, not in the business, but on the business, those are no-brainer decisions.

And you, I'm sure you made the right one. Yeah. Good for you. I see something, the Auto Repair Queen. Hmm. How did you get that moniker? Interesting. I spent about 4 of the last 4 and a half years that I've owned Mango coaching in the acquisition space. So, this was more broadly like, how do you acquire? How do you acquire with $0 out of your own pocket?

And it was in that space where I was exclusively doing automotive repair that they started calling me the Automotive Repair Queen. Got it. Your background, what was it? I was in software. Well, first I was an environmental engineer, then I was in software in the product space for many years. I happened into an automotive software, and because I was chief product officer, that's when I began to understand the landscape of automotive repair.

So then when we sold to private equity, I saw a huge opportunity in the brick-and-mortar space. There still is opportunity with exchange of wealth in that, in this space with so many retiring owners that I moved into brick-and-mortar space and, you know, put a hold on my software career. The numbers are out there, 20,000, 30,000, if you will, silver tsunamis that would love to get out of the industry, sell, succeed.

We're doing shows on how to value your business, how to work toward valuing your business. How to find internal candidate. We, we've done a ton of shows over the years on that. As a company that has grown to 8 locations in, as you said, 4 and a half, 5-ish years, there's so much opportunity out there for you. And to be a multi-stater like you are.

And this is what I want other shop owners to think of. Like, there, by my count, there's 35,000 shop owners that are going to retire in the next 3 to 5 years. I cannot acquire 35,000 shops, and I don't wanna see these owners close their doors. So that means the rest of us shop owners who are still in growth phase need to, you know, have the opportunity to serve the generation that came before us by, you know, picking up those shops and continuing their legacy rather than letting them close.

Let's move into a couple of topics that you and I would like to talk about. Leadership and personal growth is one of 'em, and I don't think you can do what you've done by not becoming a student of it and being a great leader for your team if, so they can aspire to the great culture. 'Cause there's a lot of toxic shop cultures out there.

You probably see them when you look at, at places to buy. Yeah, that's for sure. We started our culture just around a couple of ideals. My business partner said, we never yell, we bonus well, and we try to have fun. And, you know, those 3 very basic Shop tenants got us pretty far in hiring. Never yell, but bonus well. And have fun.

And have fun. If you were sitting to recruit a specialist or technician right in front of you and you said, hey, this is what we do, that was probably something, oh, I've never heard that before. Yeah. There's a lot of screaming in our culture, that's for sure. Never yell. I love it. So emotional intelligence, coaching versus managing, burnout prevention, and all those things that have to do with watching your people, watching yourselves, and being able to grow a great company with your eye on the target of profitability, number one.

What can you tell our listener about your role to make sure your managers, your district people, because there's a lot of people that are growing in multi-shop operations. And they say, oh, I did the first one, maybe I'm 10 years out now, I can do the second one real easy. And people get hit upside the head because they don't have some of this core stuff down.

Yeah, I think there's a lot of what we've done that has really been like putting the wheels on while we're driving down the road, to use an automotive term. But sort of, you know, when we had one shop, I remember talking with Brian, who— he's really— he was our original district manager. He's in charge of making, you know, the shops run inside the shop.

Like, Brian, we need SOPs because we're going to grow big. And he was like, I don't think we really need SOPs. Like, I'm covering our advisors' lunches. You could still be in the shops. But then we reached this period where Brian, he couldn't even feasibly be in 3 shops. Cause you know how shop time is like, you show up at a shop, you just get sucked in.

Like you're there for many hours. So, I mean, there's a lot of stuff that we built as we grew, but one thing that we're acutely aware of right now is in a very standard moniker, what gets measured gets managed. And so we'll train our front of the house team, for example, on selling to the curb. And then you can do test calls and you're shocked when they don't make an appointment or sell to the curb.

Right. And so I have a bunch of kids and I just remember like, you know, my child needs to be taught the same thing over and over again. And We need to just, we're all human. We forget things. We go back to our habits. So we don't yell once we teach something, right. We're open to teaching it again and again, but we were realizing is it's hard to see if our advisors are selling to the curb without listening to every single call.

But now in the day and age of AI, we just built a dashboard where we send all of our calls through AI. We say, was that call convertible? Could we have gotten them to come in and did we get them to come in? And if we didn't, we put it on a checklist that they can look at and, you know, call them back and check them off so we can increase our conversion rate.

Because as the owner, we know that every call that's coming into the shop is costing us a lot of money, but maybe our manager or advisor was busy or doing something different and, you know, didn't give that call the attention they need. So now we can look at those numbers actually happening. I'm impressed with sell to the curb. Does that mean the conversion of the call?

Is that what you're saying? You want that? Vehicle to come up and over your curb and into the building. Is that what you mean? Yeah, exactly. I think sell to the curb is this idea of setting an appointment and getting the customer in once they make the phone call. I love that. I wanna stop you there for a minute and I wanna share that with our listeners.

Sell to the curb. So many times you need— if, uh, what's the word I'm looking for? Some kind of clever statement that helps people say, sold to the curb. It's instead of sitting down when someone says, let's talk about what just happened, blah, blah, blah. Sell to the curb describes, you know, 4 or 5 paragraphs of how things need to be done.

And I love that when there's an issue, as you well will go through your AI and see that we didn't convert this, let's sit down and talk about selling to the curb. They know exactly where you're going with that. And it's part of the, in fact, it should almost be a little sticker on the phone. Right in front of the phone. Smile, sell to the curb.

Right. Smile and sell to the curb. I love that. And so as we're doing this analysis, because now we have the tools to see it, we see this pattern emerging. Who is the hardest to sell to the curb? And that's price shoppers. And I think there's an old, you know, thought process in our business that if they're asking about price, that's bottom of the barrel.

We don't want them to come in anyway. But we found that that's not the case. People are price conscious, or they want to have a general idea of how much they're going to spend before they come in. So, you know, in automotive repair, it's been taught to us and passed down, you know, between shops and coaching programs, don't give a price over the phone.

You can't accurately quote, tell them you need to see it, have them come in. But as we saw that dramatically decreasing our call conversion, we built a tool where our advisors can quickly punch in what the job is and we can produce a price range. So now we can tell our customers, this is the price range we expect it to come back in and get more customers to the curb, even those that, you know, are seen as price shoppers and we might have previously lost.

So are you quoting a low and a high number to that client? Yes. Yeah, we quote a range. It's pretty wide, right? Because we don't have all the details. The more details we can give our AI, the closer to the price range. We can get them, but it might be, you know, that brake job is going to cost between $600 and $900.

It's a pretty wide price range, but we found that to be a useful tool. And you're converting to the curb because of you doing that, right? It's increasing our conversion rates. Brian was saying we need— who was saying we need SOPs? Was it you or Brian? It was me in the very beginning with Brian. Now he sees the picture very clearly because Brian cannot be in 8 shops.

Every day to have those SOP or to make the SOPs happen, right? I call them protocols. Interestingly enough, I fell into that word, oh, a couple of months ago when I realized it may describe how government works, but really not. It's the protocols of the business. And then underneath all those protocols would be counter, would be sell to the curb, would be all of those policies or procedures that would be under.

And so, When you say, hey, we're slipping on our protocols. And I think SOP, standard operating procedures, get it, critical, important. But I love to lift all of those little different policies and procedures up into a singular overarching umbrella called protocols. Yeah, same thing. We really talk about them when we talk to our teams, like I'm calling them SOPs, but we talk about the non-negotiables.

So we have the 6 non-negotiables in the back of the shop, in the front of the house. But what I found is if you can't measure those non-negotiables, if you're teaching sell to the curb and you don't measure how many calls they're selling to the curb, that you might as well not have that non-negotiable because it's gonna fall by the wayside. So you have to find a way to measure every single non-negotiable or protocol as you're calling it.

You're absolutely right. And I think one of the things that we're missing in a lot of the mid-range shops that are really striving to be in the top shop categories are not measuring enough. Number one, they probably just, number one, don't know how. Number two, don't know what the formulas are because they don't have a coach. And they find it impossible because of the workload that they put under themselves to even find the time to do this.

And this is where you go from working on your business instead of working in it. You had a coach, Brian had a coach, you're coaching. Explain to me where all this great knowledge this detailed knowledge came from for you guys, Jessie? Yeah, I think, you know, Brian comes from automotive repair. He's essentially been in the business his entire life. So, he is, I didn't know how badly I needed Brian.

We sort of, I called him to acquire his existing shop and we ended up partnering together, but he has all of the deep knowledge. And then along the way, we've done different coaching programs. So, we pick up what we can of value. You know, every coaching program has their sort of their way to think about it and you, cherry-pick what's valuable to you to build your own system, right?

And then you come up with some things of your own as well. The automotive world is changing fast, and customers are expecting speed, accuracy, and confidence in every repair. To keep your shop competitive, your technicians need training that's smarter, faster, and future-focused. That's why NAPA Autocare is excited to introduce 3 new auto tech initiatives. Fast Track Assessments, the Accelerator Training Program, and Tech Assist.

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Trainees practice real-world jobs— alignments, brakes, diagnostics— in a safe, virtual-first environment with instant feedback. Instead of tying up your senior techs, they can focus on customers while new hires become billable, competent team members in record time. And once they're on the job, Tech Assist keeps that support going through AR-capable smart safety glasses. Your technicians can instantly pull up torque specs wire colors, component locations, and even connect with a live expert who sees exactly what they see, providing guidance step by step.

System integration with information platforms and DVIs streamline workflow and boost efficiency. This assess, accelerate, assist approach helps your shops deliver better quality repairs, faster training, and long-term success. The full solution launches March 2026, but Beta registration is now open. Want your shop to lead the future of automotive training? Connect with your local NAPA representative today. Hey, let's face it, your shop management system is the single most important tool in your shop, period.

NAPA Trax has made selecting the right shop management system easy by offering the industry's best, most comprehensive SMS. Now, it all starts when a local representative meets with you to learn about your business and how you need to run it. After all, it's your shop, so it's your choice, and having local representation is a huge plus. Customizing Trax to your business, whether you're a one-person shop or a large multi-bay or multi-location company, our representative consults with you to help optimize your shop's workflow, efficiency, and profitability.

Trax always has the flexibility to do business how you need to do it, which means it can also grow as your business grows. And unlike the other guys, we'll be there for you after installation with the best training and support in the business. Yes, a learning management system tailored to each role in your company. Simply put, Traxx was designed and built for shop owners just like you.

Visit us on the web at napatraxx.com. That's N-A-P-A-T-R-A-X-X dot com. Well, thank you for your insight on leadership and all these great things that are so critical. You mentioned the word AI just a little bit ago. And you said, well, we'll throw some of these calls through AI and it'll come back and tell us some stuff. As the leader of the business, you and Brian said to the team, listen, AI's here to stay.

We're gonna learn how to use it. We're gonna be its boss and it's gonna tell us stuff and it's gonna help us. Is that your framework? So a little bit, yes. And a little bit deeper than that. And just because I have a software background, I have built tools, specific tools for our team to use. So instead of saying, you know, throw this question into AI and get a pricing result, I've built a specific tool that they, that lives on top of our dashboard that helps them learn to both sell a job and it allows them to price a general job and get a price range, right?

I have built a dashboard that runs every single call through AI, analyzes it, and auto-creates this to-do list of calls that we think that they can rescue. In that dashboard, we also measure whether they're making a future appointment for the customer, right? When they check out, we want them to make their next appointment in 4 to 6 months. So is that actually happening?

How much money are we losing in comebacks? All of this stuff, I have used AI to build a dashboard to measure these metrics, which directly correlate to our non-negotiables. So that we can, as an entire organization, keep track of what's important to us and easily dig down into the cause when we have a drop in revenue or a drop in GP dollars.

Excellent. You mentioned make an appointment. You just hit an incredible ding in my brain on how similar the dental business is when you're getting, you know, just routine maintenance, right? Routine maintenance. Yeah. I just had routine maintenance done a couple of days ago and son of a gun, I couldn't leave the chair unless I had an appointment for 6 months, right? Couldn't left.

I mean, yes, I could have left, but it's just how they do it. Based on your mileage, let's have you back in April. We'll set a date and if it doesn't work for you, we'll, we'll just move it around. And then she says, I see this one filling that you have and I think it needs to be replaced. And blah, blah, blah.

She goes, can I go in and take a picture of it? And I said, sure, go ahead. So she wanted to kind of capture that. And while I'm sitting in there, I said, oh my God, they just did a DVI on my mouth. And when the dentist comes in to do the review, I stopped and I says, like, I gotta share this idea with you.

You just did a digital tooth inspection, a mouth inspection, and I'm going crazy. Trying to draw the parallel in automotive. And I said, now, if I don't set the appointment as I'm leaving to get this thing done, are you going to text that photo of my tooth to me in 3 or 4 months? And he goes, no. And I said, your software should.

And he goes, that's a great idea. So, so think about the client work that you have And the photos that you've been taking and how that can help support that. And so I had to bring this whole automotive thing to the dentist's chair a couple days ago. It's perfect. I mean, I think those are great stories for us to tell to our people and even to, you know, people that buy from us.

You know, dentist takes a look, does the x-rays, and we're doing DVIs. We got all this great photos for you and we got to get this work done. Well, for our entire existence, our rebook rates, so making a future appointment for a customer, were under 12% every week at every single shop. Now that we're measuring it in the dashboard, we're seeing rebook rates between 50% and 90%.

So what a difference to not have to go out and find every single customer all over again, but to have them already have an appointment on the calendar. There's your proof. If you don't measure it, you can't get things done. You have to measure it. Wow. What are you doing to train your counter people at front, your client advocates? Are you sending 'em to school?

Are you doing videos? Do you have coaches for that? What's your focus on making them the best? Never-ending training. So we have a program that we send them through. It's sort of a 12-week program and they complete that program online. We do weekly service advisor training, so a different topic each week. Our whole team gets on Zoom, we train them on that topic, well, a different topic each week ad infinitum, right?

Back and repeat, cover the same topics all over again. And we have an AI tool where if they open a ticket in our shop management system, we, for that specific ticket, tell them how they should present it. So the most critical items first, the items that that should be done, but don't need to be done right now, this exact moment, and things they can put off that, that essentially sells that entire ticket.

So, they're not reading from this mostly, but they are reading through it to get a refresh. Even our more seasoned managers are like, oh, sometimes I just need to reset my brain, right? We all forget, no matter how experienced we are, they reset their brain with that, that AI script essentially written for that specific customer and that specific ticket, and then they sell.

Jesse, we have an AI tool that helps them. Is this the one you designed or is it something else you're using? Yeah. Yeah. That one's called Guava. I think it's at getguava.ai. That one is actually, it's coupled with the pricing tool and it's available. Okay. Yeah. It's getguava.ai. I haven't even put the pricing tool on the website, but it's bundled in there.

And, but that's your tool. That's my tool. Yeah. Cool. All right. Whoa. So with your software background, you're writing tools, you have tools, you appreciate where AI is coming from. And I guess your message to the industry is get on board. Yeah. And I think, you know, not everyone is gonna be creating their own tools, but look at what's out there and you gotta find a way to measure anything.

So if you don't want to use AI to measure Okay. The first thing I did before I created a tool was I went to my call dashboard where, oh, most people have this that are using VoIP, where it's transcripts of every call. I just copy pasted those into, well, AI tool of choice, right? ChatGPT, Claude, and then asked it questions like, why are we losing calls?

Which calls do you think were redeemable? Who should we call back? That, as opposed to listening to calls for 10 hours in a day. It can be done in almost an instant. So you don't have to build a tool that does it automatically, but think to yourself, if I have a non-negotiable, if I have an SOP, I have to measure it. So how am I going to measure it?

And you as an owner can spend now 30 minutes by throwing something into AI and asking questions to get that measurement out, especially if you just have one shop, right? How quick is that? But look for existing tools. Those are nice. But, you know, ChatGPT is either free or you can pay, you know, a small fee a month. Same with Claude. And you can get these same answers in a, quote, now new manual AI way that is still infinitely faster than we were doing it before.

So I would say look at your non-negotiables in this way of how do I measure that and find a way to measure it even if it's, you know, manual-ish for now. Otherwise, don't bother having that non-negotiable. To your point, in AI, if you don't have Jesse's capabilities and powers and, and that background, the thing that I continue to learn about AI, we've done a recent episode with Chris Cloutier on it.

He asked me to read a book, The AI-Driven Leader, and we really changed my thinking that AI is not necessarily a tool, but it's a partner. But you have to say, Hey partner, here's how we're doing things. You have to be in control and in charge of what you ask, why you ask. I mean, you could even tell it, never say this to me, never suggest that.

And it'll learn that and it'll start getting in alignment with you and what your needs are. I'll give you 2 little AI tips that I love, Carm, that make that— before I build a tool, made things really easier, much easier and quicker. One is you can establish a protocol in AI. And you can say, this is called protocol assess the call. And every time I say use protocol assess the call, I want you to look at all the call transcripts that I put in.

I want you to output which call transcripts need to be called back because we could have rescued them and we didn't, which advisors have a higher conversion rate, what is the conversion rate for each advisor, et cetera, et cetera. So then you only give it that prompt once. Next time, all you do is copy paste the transcripts and you say, do the call protocol, right?

And it'll remember that and do it all over again. So it saves you a lot of steps when you start creating protocols. Scary good. The other tip is minor because I heard you say you can tell AI not to do things. AI is not that great at not doing things actually. Like I found when I'm like, never do this and I sort of put it in my settings.

That it'll still do that. But what it's better at is replacing things. So what makes me crazy is that em dash was one— the first thing I tried to train out. And when I said, never use the em dash, it kept using it. And I would say, I told you not to use the em dash. And it would say, oh, sorry, I forgot.

But then I said, instead of using the em dash, create a full sentence, put a period and start a new sentence. And then it'd be was able to do that. So it's better to say not this, but that, than just say not this. 'Cause it's that old experiment of don't think of a purple elephant. But if I tell you, don't think of a purple elephant, but think of a, you know, pink turtle instead, like maybe you can make that swap.

I'm having a blast with you here. This is cool. I taught it to do no em dashes without any other explanation and it did it. So maybe I caught it in a good mood. Your AI must be more compliant than mine is. Oh my God. All right. You just highlighted on consolidation and, and the opportunities that exist in private equity and exit planning.

Any advice to— you're gonna be out looking for shops and there's gonna be shops looking to sell, but there's also gonna be people out there looking to buy. We have such interesting stuff merging together. Any great advice for our industry? There's a couple of things that we're doing, and this is mostly, you know, for the shop owner who's looking to retire, but I'm trying to think of what direction to go at this.

I think that it sounds like you've had a lot of full conversations around if you're looking to sell. So we won't, you know, hit that, but I will talk a little bit to you about multiple arbitrage because I think everyone in our industry should understand multiple arbitrage. So What is private equity doing? They're purchasing you for a 3x multiple. Maybe if you have $500,000 in profit, maybe that's going to go up.

That will go up a little bit depending on what your profit is, but what's their endgame? We saw someone just recently sell for a 16x. And why did they get a 16x multiple? Because they had $20 million in EBITDA. And you might be thinking, but I don't have $20 million in profit. So what private equity is getting, they're getting the spread on what they're buying for, which is a 3 to 5x multiple and a 16x.

So they're getting more than a 10 multiple on what you've built by doing nothing but putting a bunch of shops together that have EBITDA. I'm absorbing this and I'm making it part of my head is going up and down for yes, yes, yes. I'm with you. That's multiple arbitrage. And the reason why I'm so passionate about this, because a lot of times you have We talk to owners all the time that have built their business for 30 years, cannot retire on a 3x multiple.

And that's what the market is. You know why they can't retire on a 3x multiple? Because they don't have any profit. They have never designed their business to make money. And then they're gonna say to the, uh, private equity, listen, I, I got the boat at the lake and all my grandkids' cell phones and stuff like that. And they're looking for add-backs and they're tiny, they're small.

Make money, find a 20% net operating income so that you can get a 5x on it. I mean, even if you have a 20% net operating income on a shop that's doing, you know, $2 or $3 million, you're not gonna get a 5x. You're gonna get a 3x, a 3.5 maybe. Some of our listeners just say, Carm, you already lost me on this 3x, this 5x thing.

It's the multiple. Well, what's a multiple, Carm? If you have your net operating income, the adjusted bottom and private equity comes in to your point, say you made half a million dollars consistently over the last 3 or 4 years as they look back and they say, okay, well then we'll give you 3 times that or a million and a half. And you've been, that is what the multiple is about and that's what the X means.

So go ahead, keep going. But then when, you know, lower market private equity resells your same shop, Then they're gonna get like 15 times your $500K. So that means they're getting $7.5 million and they only paid you $1.5 million. So they're getting $6 extra million just for buying you and bundling you with other shops. Jesse, what if they came to me and I said, listen, you don't have anybody running this region.

I'll sell you my 5 stores. I'd like to stay on and I'll take 49% of the offer. So I can get a second paycheck. What do you think of that? Yeah, there's a lot of that second bite of the apple happening. And so long as you believe in what the company's doing and they have majority, you can often get that. But we are putting together another way, which is the co-op, as we call it, which is where we're putting together our own $20 million in EBITDA and We will sell, of course, you know, to larger private equity for a higher multiple and shop owners get a chance to sell their shop for about 3 times

what it's currently valued at. So instead of getting a 3 times that $500K, they could get more like a 9 times that $500K and get $4.5 million because they earned it. And, you know, private equity was sort of the first one to start bundling shops, but We believe that we should do it and reward shop owners who have been building something for the last 30 years.

When you say co-op, are you talking about getting groups together or individual? Exactly. Yes. A group of about 40 shop owners with $500K-ish in EBITDA about each, where we amass that same $20 million. Interesting. So many things are going on in our industry and, and this co-op idea. This is the first time I've heard it. Maybe it's the second time I've heard it.

It's brilliant. I love it. And you're probably gonna lead this, right? Yes. Yeah. I mean, you know, I think people have said to me like, oh, you're gonna sell to private equity anyway. We have to stop the consolidation. I would say we're not gonna stop the consolidation. We watched it happen in paint and body, which is now largely consolidated. It hasn't happened in automotive repair, but it is happening.

So you can fight it. You can be that standout house with the freeway and the mall built around it. Or, you know, you can make use of the trend that you already see happening and make that work for you and your family. So I'm not telling anyone what to do with their business or, you know, how to do it, but we're just creating another option for those people who want to exit, but, you know, doing it at a 3 times their profit doesn't make sense for them.

This was so interesting and great. I love what you just said. I think it's a perfect ending to this episode. And I don't know, we, we covered a lot of ground. And thank you, Jesse Jackson, CEO, Mango Automotive. Uh, noticed the mangoes on the back wall. And since I don't know a lot about mangoes, what's all the words below that? What's the plaques below those?

Oh yeah, that's just one for each shop. It's a mango and it's a night— an orange 1970 Camaro, which you can barely see, and then one for each shop. So I gotta fill that gap and then get another shelf. An orange 1970 Camaro. I see. My first car ever was a 1972 Camaro. Oh yeah, that's what my mom drove when I was a kid.

It was a Rally Sport split bumper. And if I was smart enough to keep it, it'd be worth a ton of money right now. Oh God. Shucks. I know. Shuckaroos. Hey, it's been great to have you on the show, Jesse. Thank you so much. Thank you, Carm. Nice chatting with you. Same here. Thanks for being on board to listen and learn from the premier automotive repair business podcast, Remarkable Results Radio.

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

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