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Repair Shop ReckoningMay 8, 2026 · 74 min

Chaos Starts In The Shop When Communication Stops

Customer ExperienceHiring & TrainingShop Management

Now playing — Repair Shop Reckoning

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Summary

In this episode of Repair Shop Reckoning, Kevin breaks down one of the biggest reasons shops create their own chaos… poor communication and broken expectations. Most customers can handle bad news. What they can’t handle is silence, vague answers,...

About this episode

In this episode of Repair Shop Reckoning, Kevin breaks down one of the biggest reasons shops create their own chaos… poor communication and broken expectations.Most…

Key takeaways

  • —Effective communication between service advisors and technicians is crucial for managing customer expectations.
  • —Avoid giving exact completion times to customers to prevent disappointment and frustration.
  • —Implement training programs for service advisors to enhance their customer service skills.
  • —Use buffer times in scheduling to accommodate unexpected delays and issues.
  • —Regularly update customers on the status of their vehicle repairs to maintain trust and satisfaction.

Frequently asked

What should I do if my service advisor can't provide updates on a repair?
If your service advisor is unable to provide updates, it's important to escalate the issue to a manager or visit the parts department directly for information.
How can I improve communication with my customers?
Implement regular updates and set clear expectations about repair timelines and potential issues to keep customers informed and satisfied.
What are the consequences of overpromising on repair times?
Overpromising can lead to customer dissatisfaction and negative reviews, as well as increased stress for service advisors and technicians.
▸Full transcript

Grainger knows when you're a procurement manager for an office park, you're not managing one building, you're managing all of them. And to stay ahead, you need to see through walls and around corners. Lights about to fail, filters ready to clog, HVAC on its last leg. If you wait until something breaks, you're already behind. Count on Grainger for quality products, easy reordering, and 24/7 support.

Call 1-800-GRANGER, click grainger.com, or just stop by. Grainger. For the ones who get it done. This is the story of the one. The one who keeps multiple buildings running smoothly day after day. Plumbing that flows, HVAC that hums, cleaning supplies that keep surfaces sparkling. That's why she counts on Grainger. With easy reordering online and 24/7 support, Grainger helps her keep the products she needs on hand.

So shelves stay stocked and buildings stay ready. Call 1-800-GRANGER, click grainger.com, or just stop by. Granger, for the ones who get it done. Welcome to Repair Shop Reckoning: From Chaos to Control. Because too many shops today are running on chaos. Phones ringing, technicians frustrated, front counters overwhelmed, owners buried in problems with nobody to call. Kevin Brown has spent over 30 years in the trenches learning how to take that chaos and turn it into control.

Shop owner, operator, consultant, leader through industry shifts, insurance games, bad hires, great hires, and lessons learned the hard way. This isn't theory. This isn't corporate training fluff. This is real shop experience, unfiltered. On this show, Kevin breaks down what actually works— running profitable shops, front counter control, training technicians, negotiating with insurance companies, building systems that make your shop run instead of burn., and the mistakes that quietly bankrupt shop owners every single day.

No corporate scripts, no sugarcoating. And yeah, somebody might get offended. That's okay. Disney's two doors down. But if you want the truth about this industry, buckle up. This is Repair Shop Reckoning: From Chaos to Control. Let's get started. All right, welcome back to Repair Shop Reckoning. Last week was, uh, I moved and I'll tell you what, it feels good to get back into the studio and run my mouth because My family about had it with me 'cause they stayed with me last week of work.

Lincoln stayed home from the shop and Marilyn stayed home from the shop and we started Monday. So the weekend before Saturday, or Saturday, all the guys came over and we loaded a 30-foot trailer and a 12-foot trailer, as crowded as we can get it. And Monday morning when I closed on the house, I drove home and drove the 30-foot trailer over there and my son and 4 guys were waiting for us.

We unloaded the trailer and the guys at the shop, when they got done, went back and we reloaded it. So we did, In one day, we did 3 30-foot loads and 2 12-foot loads. Yeah. Holy shit. Yeah, my guys were like, "Oh my God, you're fucking insane." But we got everything moved pretty much in one day, except for like the little tidbit stuff, like my gun room and all that shit we had to do later.

But it was pretty crazy. So we're all done and moved in and everything. Now we're just waiting for them to open the pool next week. So then summertime frolicking starts, right? So the grandkids can come over and stuff. Interesting, last week we were moving, Lincoln had to go pick up a bed frame from down in Warren, which is about 40 miles from our house.

And he took my 2025 Sierra 1500 with a 3-liter diesel in it. So he calls me, or I call him, I go, "Where are you at, dude? Like, you've been gone like way longer than you should." He's like, "The truck went into reduced power mode, and I called the shop and Jason came over with a scan tool. It's got no oil pressure.

We pulled the stick, it's got, it's—" Not even on the stick. So we're like, holy shit. So we put oil in it, cleared the code. It had oil pressure for a minute, then it went away again. So we limped it over to the dealer. The thrust bearing went out in the motor. Apparently late 2025 and 2026 3-liter diesels are killing motors, killing engines.

The thrust bearing went out. So the motor blew up, the engine blew up. So now they're putting an engine under warranty because it's only got 17,000 miles on it. Wow. So that leads me into today's podcast. Talking to the service advisors over at the dealer, I was horrified. And I get that they're busy and it's a lot of stuff going on, but the communication, the way everything was presented to me, and I'll call you back and they don't call you back.

And then before she even called me back, I just get this basic video from the dealer. Hey, this is so-and-so, master tech. Great video. He did a really good job. Very well spoken. Basically, we're going to go ahead and get an engine ordered up for you because your engine failed. The thrust bearing went out and kind of explained a little bit what a thrust bearing was, blah, blah, blah.

For a normal customer, that'd be great. I already know what a thrust bearing is. You had no idea. Yeah. And so he sends me this video. So what does that prompt me to do? I already think to myself, oh my God, backorder. How long am I not going to have this truck in my fleet to use? Because we use all of our trucks.

So I call. Oh, I don't know. I don't even think it's been checked out yet. I said, well, he sent me a video and it says it needs an engine. Oh, okay. I'll call you back. Okay. No callback. Next morning I call. Hey, you know, just want to check to see what's going on. Uh, yeah, I don't know. Uh, I talked to you yesterday about this.

I told you what's going on. Oh man, no, you told me you'd call me back, which you didn't. And I understand, I'm in the same business you are, I understand stuff gets hectic. Why don't you go ahead and look it up in the computer and tell me what's going on? Got a little, a little irritated with me because I was kind of talking to her like she's a kindergartner, because that's what she was acting like.

And, uh She basically said, yeah, looks like they might have to— I don't even know if they ordered an engine yet. I said, okay, thanks. And she never called me back. Yeah, she called me back again. So on my way in yesterday, I just stopped by— Monday, I stopped by the dealer. I know the parts manager, like, yo, what's up with this?

He's like, yeah, they're ordered. It's shipped already. The parts are coming. You should have it back in a week. But why should I, as a customer, because right now I'm a customer, yeah, have to go to the parts department to find out where my engine is because the service advisor can't do his job? Now, that leads into the service advisor screwing over the technicians.

Think about it, on time and everything else. I mean, there's a whole big thing that goes on. The service advisor is not on their game. The problem I think the dealerships are running into, nobody wants to work at the dealership anymore. So they're pretty much putting any fricking ass in any chair to try to get it pushed along. And I find it interesting, the interaction that I got from that lady, and I know what I'm doing.

So it didn't really like rattle me. Like, okay, I knew a thrust bearing, I knew it was gonna need an engine. My only question is like, okay, how many weeks is this gonna take to get an engine? Because everybody's engines are going bad. So if there's gonna be a backorder, it could be weeks. You know, sometimes they come in a week, sometimes they come in 8 weeks.

That was my question. And I couldn't even get that simple question answered. I kind of thought like, what the fuck is up with that? So think about me being a regular customer. That's my only vehicle and I'm making payments on it. And I go to work with that vehicle. I bring it into the dealer. They can't even tell me. I have to call 4 or 5 times.

Then finally I might get an answer, right? Maybe not, maybe I do, but think about how irritated that customer would be. And God, you know what, at that point, that person does need a fucking bad review and does need to get money taken out of their paycheck because pull your head out of your ass. Okay. The bottom line is if you fricking give the customer the information, you can kind of cool the whole situation down and say, hey, I agree with you.

This is horrible that this failed, that you have to make payments and stuff like that. Maybe you should call GM customer service. Whatever. And that's where training comes in. Training the service advisor, training them to say, hey, this is a problem. I agree with you. Maybe you should call GM and vent to them. I did everything I could. I did the estimate, I submitted the warranty, the parts are on order.

My hands are tied. I'm with you though. It's horrible that your brand new vehicle blew up. It's horrible you have to make payments on it. It's horrible you have to rent a car. Like, how could somebody disagree with you if you give them all the information about what's going on in their vehicle and And then agree with them that it's bullshit. Yeah.

What's going on? You kind of take the fire out of them and take the limelight off you. It's not your fault. You didn't build it. You're the support service advisor that's gotta give 'em the bad news. So today's podcast, my notes are communication and expectation management. This is something that we do at our shop and we use buffers, I call 'em. You use a buffer on 'em if you think you're gonna have a little bit of a parts hangup or something.

Like today we had a guy that had a glow plug code and we replaced one glow plug and we drove it and another glow plug code came up. Well, they're on back order. We called the guy like, listen, here's 3 went away, but now 6 is on. We're gonna order it. Go ahead and pick up the truck, pay us for what we did, bring it back next week.

We'll pop the glow plug in it when it comes in. There's no sense of your truck sitting here for a week. The guy was completely like, yeah, that's awesome. Great. Yeah, yeah. You know what I'm saying? So that's management managing him. Expectation management. Right. Absolutely. Cause I didn't want to keep the guy's truck sitting there for a week when he could drive it, quite frankly.

It just starts, it still starts fine. It's not like it's below zero right now in Michigan. Thank God. Maybe tomorrow. Yeah. But who knows? So I kind of went through it, did some bullet points again, and I, and I just want to start, you know, kind of give people some ideas. Like one of the things you don't ever say, you know, stop giving exact completion times up.

Front. Meaning if the guy comes in this morning and says, okay, uh, when can I have my vehicle back? You don't go with them 3 o'clock. Cause you literally just put the time in his head, 3 o'clock. It's no different than somebody saying, give me a ballpark on a job. And you say $800. You come in at $1,000. Wait a second. You said $800.

Cause that's what they remember. You hear you saying, and regardless of you said, listen to me very carefully. This is a ballpark. It could be higher. It could be lower. Does not matter. The $800 is stuck in their head. Yeah. And that's something that I think a lot of shops do. We don't give estimates over the phone. People get pissed, but I can't give you a ballpark.

There's just a lot of variations in a job that I don't even give them. I'm not— I'm not there for people to price shop like, hey, can you give me an estimate? That means I have to start to do a quick estimate, give them a price, then we have to negotiate. We're not getting into all that. If you want to bring it in, we're more than glad to check it out.

Pay us the diag. At that point, we can give you a timeline when the repair is going to be done. You know what I'm saying? That's kind of how we do it at our shop. So I'm going to go through these lists and give examples of stuff like that. So I remember them all because I have a lot of stuff going on.

Stop giving exact completion times up front instead of promising the completion times. Like I said, listen, tell them, listen, we're going to provide an inspection. We should be calling you in a few hours. With what the mechanic found, the technician found. At that point, we can give you timelines and set the expectations to the customer. We're managing it, right? Because it's a lot easier to do that versus going, hey, dropping it off for front brakes, no problem.

We'll have you done at 3. Then all of a sudden, you know, the guy thinks, okay, tomorrow I have a ride to work. I got the car back. I could pick the car up tonight. He gets his wife, hey, you need to juggle with my mother-in-law or my mom to pick up the kids from dance because you're going to drive me to get the car.

So you got all this stuff going on behind the background. In the background. And guess what happens? You can't get one part that you promised this car at 3, and the customer's pissed at you, even though it might not be your fault. But you really, with today's world, some of this stuff is a little bit harder to get. Some stuff's starting to, for some reason, go back on backorder a little bit.

It's really weird lately. Again, like I see a lot of GM parts and Ford parts going on backorder. It kind of fixed itself, but it's kind of coming back in our area, which is really weird if you think about it, because we're the home of the Big Three. That's insane. We're the Motor City. Yeah. So you can imagine guys in other states, you know, it seems to me that the distribution seems to be taking a bruise, a beating right now.

It just seems like distribution is bad. So, you know, I think trucking companies are going out of business because the fuel costs raised and stuff like that. That makes sense. So, you know, we always separate the diagnostic time from the repair time. So you bring the vehicle in, hey, we need to diagnose these problems. You know, you got 3 problems here. That's 3 hours of diagnosis right now.

So you'll, you'll be hearing from us probably this afternoon or tomorrow, no later than tomorrow morning. We won't say you'll hear by us by 1 o'clock, we'll have it done by 3. Yeah. Yeah. Don't guess. And don't also, when they say, well, how much is it? Say, don't throw 'em a price. Do not throw 'em a price. Let's go ahead and get it checked out properly.

That way we can set the expectation for the customer right there. Okay. Once the technician, you know, does all the diagnostic work on it and stuff like that, we write the estimate and stuff like that. We find the parts, we make sure the parts are in stock. When we send you the estimate of repair, at that point we could talk timeline, 'cause we know the parts are already secured, they're already there, or if they're not secured, if it's something maybe you can drive, maybe we can get the parts ordered, that way we won't keep your vehicle off the road then longer than it needs to be.

And what we do a lot of times in that particular case, we'll get an approval, we'll get half down, that way we know when we order them parts, the customer, you know, is, is in on it, they're gonna come back because they got skin in the game, you know. Are you really buying a car online on AutoTrader right now? Really? At a playground?

Yeah, really. Look at these listings from dealers. Wow, your search can really get that specific. Really. And you just put in your info and boom, cars in your budget. Mom needs a second, honey. You can really have it delivered? Really. Or I can pick it up at the dealership. One sec, sweetie. Mommy's buying a car. Mommy, look! Uh, I think your kid is walking up the slide.

Kyle, again? Really? AutoTrader. Buy your car online. Really? So that's one thing I think that, you know, shops overpromise, they overbook. You guys always want your service advisor sell, sell, sell, sell. And I think a lot of the things nowadays, the way all these businesses are structured with all the flat rates and the commission-based bonuses and stuff like that, The service advisors are sell, sell, sell.

And the technicians will all be clapping here when I say this. They don't understand what goes on in the back. They don't understand workflow. They don't understand rusty bolts. They don't understand struggles. Okay. There's been days that you go to work on a job and everything you touch on the job, it breaks. Oh my God. Yeah. Okay. It just never stops. Then you get almost all done with it.

Back in my day, you're putting the air cleaner back on and you break one of the fricking vacuum switches. Which were almost impossible to do. So you're trying to glue it. And so there's just a lot of things that can happen that a service advisor really doesn't understand how the shop works. So they go, they promise all this stuff. And how can I promise something for you, Jason?

You gotta go do all this work to this car and I'm gonna promise it's gonna be done at 3 o'clock. And a lot of times if you really stop and think about it, some of these big, bigger things, how can the service advisor promise something? Maybe the guy's leaving early. 'Cause he's got a baseball game. So all of a sudden you set these expectations 'cause you didn't talk to the technician, the customer's automatically pissed.

You as a service advisor gets busy and Jason's supposed to be doing the brakes on Mrs. Smith's car. You go out there, check on it at 2 o'clock 'cause you had a promise at 3. Jason's gone. You ask Bob next to Jason, where Jason? This kid had soccer. He left early today. The manager knew it, but everybody knew it but the service advisor.

That's why communication is key between service advisors in technicians. In our shop, they talk. Phil or Lincoln walk out to 'em when they push a job to 'em and they say, hey, this is what's going on today. You know, or in the morning they say, this is what's going on today. What can you get done? Or what are your plans today? Where are you at on your jobs?

So they know. And a lot of times we do, we set a time, we try to update the customers halfway through the day. We start just calling and that way we we negate them calling us. Hey, just want to let you know the parts didn't show up. We're still waiting for them. I don't think we're going to get done today, but we're waiting for the parts.

You know, we ordered them, they said they'd be here this morning. Here it is the afternoon. We had it happen last week to a truck. We're waiting for a front axle on it. It was supposed to be there first thing in the morning. Guy's like, I got to have the truck. We're like, no problem. They said the axle's going to be delivered tomorrow morning.

If it gets delivered at 10, that's no problem because they're right down the street. If we have to, we could always go pick it up. Well, guess what happened? They never put it on the truck in Grand Rapids to ship it to Farmington. So we call at 10:30. Hey, that didn't get put on the truck last night. So instead of us waiting for the customer to call and say, hey, it's 2 o'clock, is my truck done or whatever?

We called, hey, we got a problem here. Here's what happened. We did what we were supposed to do. They did what they were supposed to do at the branch. Shipping department in Grand Rapids did not put your axle on the truck. Oh, goddamn, I know, tell me about it. We don't want this truck on our shelf, on our toys either. You know, it's the last day of the pay period, the technician's getting screwed.

Whatever we got to say, we agree with you, Mr. Customer, but we only can control so much. If people are not putting the parts on this truck to ship them to us, what can we do? Yeah. And, uh, so we end up, you know, they're not mad at you, you know. Don't lie to them. Tell them the truth. And I think a lot of shop owners and a lot of shops, you know, they're starting to get the— because you got to learn how to deal with these customers because everybody's got the man Amazon mentality now, and me included.

Like last night, okay, this— the motherfuckers Amazon, now they have the thing you want in 3 hours, it's $4. I wanted Roku last night because my freaking remote on my other one went bad. I'm like, I want a Roku so I can set it up in the office and watch TV. And I'm like looking, I'm like I could have this thing by 8:40 tonight for $4 more.

That's insane. So I'm like, click. Yeah. You know, here comes a lady. It's like the FastPass. There you go. Amazon. She shows up, like Jeep comes down the road, like pulls in. Here she comes. And I think that's what the problem is. Regardless of what I think Amazon is training the general public. Look, I don't even have to go to the store anymore.

I could hit a button and it's done. And it's in 3 hours. It's yeah, it's changing everything. Okay. Some of these jobs pay 6, 7, 8 hours if everything goes— the book time is— that's if everything goes absolutely 100% perfect. Okay. So I don't understand some of these customers and we have run into this too. You know, they'll drop it off, you know, and we'll check it out in a few hours or whatever.

And we're like, okay, um, here it is. We send you the estimate. They approve and they call and they go, is it gonna be done today? And be like, you just approved 14 hours worth of labor. No, it's not going to be done today. Well, I have to have my car. Well, what do you want us to do? Like that, that's a problem we're going through right now.

So we have to kind of manage that. Like, I think the service advisor should be trained. Like we send the link. If we don't hear from them, if they approve it, we go on with it. Right. But if we don't hear from them in a few minutes, we call them up and explain it to them. Okay. You do realize that this is what's going on.

Do you understand this? Do you understand these pictures? Because Think about a customer nowadays gets a video and a bunch of pictures. It's like somebody speaking Greek to them. Yeah, they don't know. Okay. In their trade, I'm sure they can make you look silly if they sent you an inspection and they're a civil engineer and they're talking about angles and lows in mixing mortar and concrete and re-rod and how much fiberglass to put in for reinforcement.

And they're like, okay, Kevin, here's your video. We're getting ready to build a bridge over here. This is what we're going to do. I'd be like, And here's pictures. I'd be like, what the fuck does this even mean to me? So sometimes you have to call and maybe educate your customers a little bit. Say, hey, you see picture number 1, that's your brake rotor.

You see how it's really rusty or it's grind, you know, that helps you sell the job and stuff like that. And that speeds up the process, you know, because last thing you want them to do is go to their coworker and be like, look at these pictures. And I go, oh, my brother-in-law can do that a lot easier. They're ripping you off.

It just opens a can of worms. Yep. So I think, you know, in our shops, like I said, we give them about a half an hour, then we call, do you have any questions? 9 times outta 10, a lot of our customers have been around for a long time. They approve it, they trust us, we get on with the job. You know, they might call and go, hey, when can you have it done?

Now these are the over-the-counter customers. These are people that one-offs, I work on their pickups and stuff. We're gonna get into commercial trucks here, here in a minute. 'Cause commercial trucks is not about money or anything, it's about time. If they're not out there turning, delivering their widget, whatever they do, that's costing them money. So money is not necessarily an issue with commercial vehicles, it's the timeline.

So they like to be up to date. So with our commercial customers, when we do an estimate, we send a link, we call 'em right away. Let's go over this link, this is what's going on. Freightliner part, this part's on back order, this blah, blah, blah, blah, blah. It's gonna be X, Y, or Z when we can get this truck done. That way they can manage their rental and stuff like that.

Communication is key to all these customers. If they're over-the-counter customer, non-commercial customer, or they're commercial customer, what is the two things you need to do? You need to communicate with them. You could stop so many fights and pissing customers off by just communicating with them. Okay? Can you over-communicate? I've told some— somebody told me I over-communicated one time because we had a job that was really giving us a problem.

I would— I said, I'm going to call you every step of the way. And they said, is it necessary for you to call me every step of the way? I said, I said, I was going to call you. This has been a problem job. And I want to keep you completely 100% up to speed. That's why I'm saying, hey, we got to this point.

This is what we found. We need you to authorize this. I said, because when I come to the end of this and it's a huge bill, I want you to understand what happened all the steps of the way with your initials. Yeah. Yeah. Because I ran into a long time ago and how I came up with that policy was a guy named Johnny West.

He bought a truck in Texas that was deleted. He did not know anything about diesel trucks. He was going to get into the business of hauling campers. This is when my son-in-law Jonathan worked for us. He buys this truck, it's deleted, it's got a trans problem, it's got several other problems. Well, we're like, it's deleted, it's given us bad code, it won't even— our scan tool won't even read it.

Then we got the IDS working, but it's giving us the wrong codes of the IDS. It had a bad programming on it. We didn't know who programmed it. We don't do programming, we don't do deletions. So we're like, listen, he's like, well, I just want the truck back to stock because I go across state lines and stuff like that. I'm like, we could put it back to stock, but it's going to be really super expensive.

You're going to buy a PCM. We're going to have to look at, do all this stuff. So we, I said, but it's going to be super expensive, but we want to go step by step with you because he tried to get ahold of the dealer that he bought it from and they wouldn't help him. It just was a whole big mess. So This guy, we went through it in every step of the way.

We'd have him sign. Back then we didn't have Shopware, or we had Mitchell, so we would have— we would print it out, we would have him read it to him, we'd have him come in and sign it. Yeah. He started signing towards the end, signing under duress. The problem we had is like, I knew this guy was going to be a problem because he was a dipshit.

He went and bought a deleted truck because, you know, diesel truck, I'm going to haul campers. And, you know, he bought some hacked-ass piece of shit. Yeah. So he wants us to put it back to stock, not even knowing what that's even going to mean. We tried to tell him, you don't really need to. Maybe you should just sell this truck. Well, I can't sell it.

I got a huge loan on it from the dealer. So we went through this whole thing, and by the end he had a stack of papers. We had it around for a while and we got the truck back to stock and back to normal and got it running and everything. And, you know, the guy came in to pick the truck up after everything.

You know what he fucking said to us? These aren't my seats. We're like, what? He's like, them are not my seats in my truck. We're like, they say King Ranch. You have a King Ranch truck. We did not switch your seats. You switched my seats. I'm going to call my lawyer. What? We didn't switch your seats. You need to fucking pay us.

Go to the bank, get a cashier's check. You need to pay us. You need to fucking go away. So it was a big, huge thing. And that went on for like 3 months. Wow. My whole point to that whole thing is think about this. People get amnesia. Yeah. Oh, yeah. Especially when they're spending that kind of money. And I think that bill is north of $20,000 back then.

Yeah, right. Yeah. They get amnesia. 3 months later, you had to have everything in writing. In today's world, guys, you have to have everything in writing. You have to communicate and you have to have initials and sign stuff. If this starts— so if it starts to go sideways, you could pull it out in court, God forbid, and say, Here's what happened. Here's all the stuff that's initialed and all that like that.

Well, here's the guys that, I don't have time to do that in my shop. I'm too busy. You're the same guys that don't have time to give the customers a ride home. You're the same guy that can't give them an estimate. You're the same guy that just get nothing signed. You're the same guy that can't do a lot of shit. Well, you're the problem in our industry.

Okay? You have to get a system together. You have to get authorizations to spend other people's money. Number 1. And number 2, state laws. There are all these state laws, okay, that you have to do certain things when the customer shows up at your door. You just can't do whatever you want. Okay. That goes hand in hand with all the fricking lawyers that say, well, you know, when somebody brings their own parts, I write up a nice thing and I'm like, dude, you're not a lawyer.

Shut the fuck up. Yeah. I had my contract, my service contract written by a lawyer. That does Michigan law, automotive law, on my repair order. I am not qualified to do that, nor is he qualified to work on his car. He's a lawyer, so he's qualified to write lawyer stuff, right? I'm a guy that fixes trucks, cars, trailers, motorcycles, whatever. I'm qualified to do that, right?

So these guys that say, oh, well, I don't need to do this, I don't need to do that, you, you really do. And that goes hand in hand with communication. Right? If you set the expectations for your customer when they walk in the door, this is what's gonna happen. We're gonna go ahead and get you written up for an hour diagnostic on your problem.

The technician will bring it in, he'll check it all out. At that point, he'll write what he found. We will send you an estimate. At that time, we could talk about timeline and stuff like that. Was it gonna be done today? Well, I don't know. We don't even know what's wrong with it yet. We're hoping it'll be done today, but I will be calling you this afternoon to talk timelines.

And everything like that, right? Versus, yeah, it should be done by 3 o'clock. Okay, can I get a ballpark? Yeah, it's gonna be like $800. Okay. Or going back to the example of the— at the dealership, they didn't even tell you, right? They didn't even— they didn't even know. She was like, I don't know, they don't even know if it's been ordered yet, right?

Yeah. I mean, and that's just a lady that just doesn't know. Yeah. And she's probably not qualified. I could probably go and do that job, or, you know, it's just I think that right now every business, including auto repair, the dealers, Walmart, Lowe's, Home Depot, is short-staffed. How many places do you walk around and turn around, look for somebody to help you just because you're like, I don't want to walk up down the hallways in Home Depot or Lowe's looking for fucking something.

I was like, uh, excuse me, can you tell me where the fricking X is? Or the aisle 4. It makes your life easier, right? Yep. They don't even do that now. And now it's even getting worse. Now they're putting all these registers in so you don't even talk to one person because they don't have enough help. That's no different than the dealers.

That's no different than our shops. I mean, I could love to have two more techs, you know what I mean? But you can't find people. Okay. I honestly think I was at Fox yesterday. I was talking to John Masi. He says, man, if you want to ask me, I said, you know, We were talking about the technicians online, how they all cry on TikTok, how they're just getting screwed, you know, and how terrible it is and everything like that.

He's like, they have it so made nowadays. He said, compared to what me and you used to have to do when we were out in the shop, these guys have it made. They whine and they get catered to in most shops. Back when we were, they'd be like, go, go, go get another job. There's 4 more guys that'll take your job. And you were broke.

You had a family or whatever. You couldn't have the choice to walk away. You stay there and tough it out. It's not like that nowadays. I mean, people are coddled. Okay. I think that it's only going to get worse. And I don't think, once again, I try to keep this positive and give people solutions. I don't ever want people to think that I'm on this podcast going, oh, I'm the end-all be-all.

I have all the answers. I know exactly what to do in every situation. Probably most of them I do. I've been, cause it's called wisdom. I've been in it for 35 years. Right. But these people that just sit there and trash our industry over and over again, if it's so bad, go the fuck out of it. Okay. Just cause you have a podcast and a voice.

Okay. There's podcasters out there that sit there and trash our industry. They have never been a shop owner. Okay. And I'm going to tell you, you could talk to 100 shop owners if you're a podcast guy or 100 technicians. Okay. You're never going to feel the stress of worrying about a payroll because you don't have enough money in the bank, worried about a tax bill, worried about your employees quitting, worrying about a lot of different stuff.

You're not, you don't, you just, cause you talk about it does not mean you have the emotional attachment to doing it. Okay. Any business owner, I was talking to one of my guys today, Eric, and he says, you know, I wake up in the middle of the night sometimes at 3 o'clock and don't go back to sleep. I go, I was up at, I wake up usually at 4.

I wake up at 4 and I don't get on my phone or something. I just lay there and stare at the wall and think about stuff I have to do and all that stuff. I said, it's called stress. I go, we care about what we do. We care about our business. We don't wanna fail. So you wake up in the middle of the night and you sit there and you think about this.

Okay. So you having a podcast talking about how shop owners are big bad wolves and everything like that, you don't understand some of the stress shop owners are under now. Are all shop owners great to their technicians? No, but I will tell you this. All of my clients right now treat every one of their technicians like gold. So I got 6 shops right now and all them guys are great to their techs.

Yeah. So these other guys are already just saying, oh my God, these guys are so terrible to their technicians. They're this or that. Like what drove them to that point? You know, I'm getting off the beaten path of communication, but what drove these guys to that point? You know what I mean? Uh, so, so, okay, let's go back to communication. So the technician out back is in a bad mood, which most days technicians are in bad moods, and the service advisor wants to talk to them and say, hey, can I get a timeline?

Don't fucking worry about when it's done, it's done. Like, how can that— how can they service advisor be professional and go convey that to the customer. So there has to be a good synergy back and forth. And you know, my suggestion in this, I will say this, these guys are online going, service advisors, I could do a service advisor job. So my suggestion to all you technicians out there that say the industry is so bad far as being a technician, why don't you go be a service advisor?

They make more money according to the technicians. They get gift cards according to the technicians. They get bonuses according to the technicians off the technicians' backs. So if you're a technician and it's so bad and you're getting screwed so bad on flat rate, why don't you go become a service advisor? Because of the shortage. There's roles open, right? There's a shortage of service advisors.

It's a shortage of techs, right? So you can't make enough money as a tech and you hate it. You're getting screwed on flat rate or warranty and stuff like that. And you're saying that you could do the service advisor job better than the service advisor, and they make more money. Once again, they get bonuses, they get tire Goodyear cards and everything. Go be a service advisor.

It's not that hard, right? Instead of sitting there crying, just go become a service advisor. Then you don't have to worry about it. Yeah, these guys won't. Yeah, they just want to fucking cry to cry about it. Absolutely. I'd never seen such a bunch of fucking crybabies in my life. When I grew up, technicians, mechanics, we were called mechanics. We didn't cry.

We just kind of did what we do. And all the guys that work for me, we get up, we go to work. We were all talking about it the other day at lunch. You're like, doesn't it feel weird when you're at home? Like last week, didn't you feel guilty? I'm like, absolutely. I own the fucking place. I'm like, I should be at the shop helping the guys.

I go, that's because we grew up that way. That way. Yeah. Okay. We went to work and after work because you had fun, but you had money, right? Nowadays they seem to got it backwards. They think work is supposed to be easy. You know what I mean? It's like, really, they really think it's supposed to be easy. And you know, when you guys think you have it that bad, I watch the show Little House on the Prairie.

The reason I watch it, it's simple. Yeah, I look at it, it's got cute storylines or whatever. We started watching it with the kids and stuff like that, and I started to keep watching it, right? But I sit there and I watch the shit these guys have to do by hand. They're out there fricking behind the fricking horses, fricking pulling, walking behind a plow.

And I'm sitting here thinking, you know, we cry about, you know, having to walk to the bathroom to piss. Like, these guys, like, it's amazing the shit they had to go through back in the day, but we take it all for granted. Yep. You know? Yep. Marilyn's like, last night we're like lunch, she's like, Laurel Ingalls runs fucking everywhere. Every time she runs out of the freaking house and she's like, I'm running to town, then I'm running over to so-and-so.

I'm like, she's fucking running the whole show. Like, you know what I'm saying? Like, we have to ride scooters and shit and we don't even know what, You know, or e-bikes, or e-bikes. So many fucking kids these days are on fucking e-bikes, like riding around, like, fucking pedal the bike, right? And you know, these guys, if you don't want to be a mechanic, don't be a mechanic.

But whatever you do, put 100% into it, and efforts equals results, okay? I remember when I got in this trade, I wanted to be a mechanic so bad because I like fixing shit. I was so fucking happy when I got my first job, and I've still always like loved fixing shit. Don't get me wrong, I had my days in the shop where I would like, ready to fucking slit my own wrists over jobs that just wouldn't leave, right?

But I never ever said, oh my God, this is the most horrible industry, I need to quit and go do something else. Okay. And I'm going to go back to the thing of the water bottle. Know your value. If you're not being treated good at the dealership, go somewhere else. The independent Curtis looks like he left. Yeah, you saw that? I saw the truck pulling out with his tools.

Yeah. So he left Audi and he went to Honda. They gave him a bunch of promises apparently they didn't fulfill. Now he went to a European independent shop. He's like, wow, this is a lot different. Yeah, because maybe somebody cares about you that owns that shop. Maybe there's a guy like me. Yeah, you know, you guys got to remember something. The guys on these other podcasts and, and TikTok, for every bad shop owner, there's a good shop owner.

Yeah. Okay, you cannot just paint a whole industry and say the whole industry is terrible, every technician is getting screwed, every service advisor makes all the money. It's not like that, guys. Like, be positive. Well, and even going to your clients, they're, you know, um, they're good guys, they want to take care of their people, but maybe they're not running their shop right.

Maybe they don't know how to take care of their people. It's not necessarily that they want to dick their people over. You know, two of the guys that I started— when I started, uh, consulting with them, their technicians made more than they did. Yeah, they said, I'd rather pay them. Yeah. So I have them and treat them good, then pay myself. Two of them told me that.

Okay. Yep. Not all shop owners are bad. You're 100% right. They just didn't know what to do. They're paying themselves now that we got everything fixed and their guys are happy. The one guy has a service advisor now. Yeah. Eric has a service advisor now. He's like, this is— I got a service advisor, the guys are happy, stuff's flowing through the shop, everything's going good now.

I'm happy. I'm going to ask him to be on the podcast because he'll be a testament. Oh yeah. Because he was, you know, It was pretty rough for him. He was a little small town. A data center came in and the guy is killing it now. And like, legitimately, I'm proud of the guy. Like, with the guy that I have a problem, I have money in my bank account.

Yeah, yeah, yeah. He's like, yeah, I can pay my bills and stuff now. And he's just happy. And he's like, it changed his life. All it did is by just changing his life by just moving his needles and knowing how to write his estimates and where to mark this stuff up and how to do it. And his customers are happy, his guys are happy, he's happy.

His life has changed. Okay. What is the downside to paying somebody to freaking come there because you just don't know. Yeah, I did it years ago with Management Success. We did it. Okay, so medium truck shops and diesel shops really are our bread and butter. That's what I do. And it seems like there's a big gap. And you guys think— you crybaby automotive shops think that business is so hard?

Try to get in the medium heavy-duty truck business when every truck's got a different power plant, different transmission, different brake system. You could have a Freightliner with a frickin Cummins in it or Detroit Diesel. Like you have all kinds of different flavors sprinkled in, different axles, different transmissions, different brake system, different ABS system, air brakes, juice brakes, like auto shift transmissions, manual shift transmissions, like 18 speeds, 10 speed.

Like it just goes on and on and on. So you have to know a lot more stuff to do it, you know? So you want to be a service advisor that makes a lot of money, get into the medium truck. Business, you in the heavy truck business, you can make bank because service advisors in the medium and heavy truck business do not exist.

They are a rare cat. You're like seeing, like seeing a guy like me that can slide in behind a desk and write service on medium and heavies is like seeing a Sasquatch. It's just really hard. There's no computer programs. It's not like you can just pull it up if you're not the dealer, like you can on ShopWares and, and, you know, Mitchell and TechMetric and all them are geared towards cars.

Yeah, yeah, yeah. They're not geared towards Kenworths, Peterbilts, and all that stuff. And a lot of the big truck dealers won't give you part numbers because they don't want you to take the part number and shopping it. So it's a whole different animal. So communication is key, and service advising is key in that. And that's why we came up with a lot of these different types of systems to put in place to manage expectations of customers because Time is of the essence in the commercial world.

Okay. And I'm going to tell you guys how to deal with the fleet companies, the Holmans, anything on Auto Integrate. You got Wheels, you got a bunch of them, you got Element, you got Enterprise and all them people. They take percentages of what you do. So you have to think about this, guys. You go into your shop management program and you write— the technician writes the estimate.

You go ahead and write that estimate. Now you're expected to put it into, into Auto Integrate. So you have to rebuild that estimate again in their system. So Holman is not on Auto Integrate. They have their own system. A lot of the other guys are on Auto Integrate, which is the same platform, but you still have to rebuild that estimate into their system.

Then you got a guy on the other end of this computer screen in the fleets telling you that you should only be charging for list price on parts. You always should charge this for labor. They don't really ever give you a hard time about your labor rate per se, but they'll say, well, your parts are above list. Well, fuck yeah, they're above list.

Number one, we don't sell parts at list unless you want to lose money because you can't afford it with the overhead nowadays. Number two, you take 13% of each repair order. So some of these fleets like Element, they take 13%. Off your bill. They take a 13% discount. So not only do you have to do the bill, your estimate in your system, then you have to do it in their system.

Then they take 13%. Then they tell you that you only should charge dealer list. And I'm out here. I'm here to tell you guys, number one, you mark your stuff up an extra 13% on top of whatever you normally would. And when they say, no, that's too expensive, you submit it again. Say, this is what our price is. I don't know what to tell you.

They will buy it. You just have to keep submitting it or tell them we do not give discounts. How about this? How about you give them, your customer, 13% discount and I'll give them 13% discount together. They'll save 26% and your customer will be happy. They'll approve it. You just have to push back on these fleets. You have to push back. Okay.

The problem with these fleets are they take time. They give you an out. What do you mean they give you an out? Jason Tracy brings his delivery truck in. I get it all checked out. I write the estimate. It takes me 2 or 3 hours. I have to do the estimate again in their system. I copy and paste it back and forth.

I submit it to the fleet. A day goes by. I don't get an answer from the fleet. They call you screaming, hey, you know, what the hell? I need my delivery truck. I agree with you 100%. I'd love to fix it, but your fleet company Element, ARI, Holman. ARI is Holman now. Enterprise, it says waiting for fleet. There's boxes that says submitted, waiting for Element, you know, whatever.

And then it says waiting for client approval. So it's got to go 3 spots. It gets submitted, then it goes, they look at it, then they send it to the customer for authorization. A lot of them have a threshold. You could spend, the fleet company could approve like $600 right away. But a lot of them don't. So it has to go to the fleet manager.

The fleet manager gets busy because he's got X amount of trucks and he might be in a different state, different time zone. That slows everything down. So how do you manage that? We always call, communicate with the fleet manager. Hey Bob, we submitted to the fleet. We have not heard anything back. We submitted it 3 hours ago. Just so you know, truck's not going to be done today.

Not because we couldn't do the oil change, the fuel filter, stuff like that, like we promised you. We can't get authorization. We're not allowed to work on any of your trucks per our agreement with that fleet company, your fleet company, that we have to have authorization to do this. And they did not authorize it. So your oil change that you dropped off at 3:00, we're going to have done at 5-ish.

Like, we don't ever give them time. 5-ish, you know, by the end of the day, we can't get it done because they won't give us the okay. Well, that shit happens all the time. Yeah. So that's how you manage all that type of stuff. And, you know, I had another fleet, another one of my clients, they said they can't get DIAG. I'm like, what?

I go, write it up for DIAG, submit it for DIAG on these fleet companies. Well, they don't pay DIAG. They'll pay DIAG. Guess what? They pay us DIAG. So if you guys don't think they'll pay DIAG, they'll pay DIAG. You just have to submit it. You just have to submit it, wait for them to approve it, say, okay, You know, the customer states horn does not work.

1 hour check and advise. Marker lights don't work. 1 hour check and advise. You know, hey, it's here for an oil change too. Do you want us to do the oil change right now? Give us the authorization on the oil change, the diag. We'll get the oil change done unless it's a blown motor or something, you know what I mean? Engine noise and stuff like that.

Obviously we wouldn't do an oil change. Yeah, but you know, we do stuff like that. It's just a lot of different things going on with these fleets that you don't even think about.. And it's a lot different than dealing with a home budget. Cause think about a fleet company. The guy with 20 trucks has one personality. You have 20 ladies with 20 vehicles, you got 20 different personalities and you also have 20 different budgets and you have 20 different soccer games, dances.

Think about how much busier everybody's kids are nowadays. Oh my fucking God. These people run their kids ragged. Like they have this thing going on in their mind. Like if they're not a good parent, unless their kid is in 75 different sports. You ever noticed that now? Oh yeah. They go from dance to fricking ballet or dance to fricking swimming lessons, a piano lesson.

And then they have their private coaches to work on soccer in the off times. Yeah, it's just like, these kids don't, I don't, and these are the people we're dealing with trying to get their cars back to them in a timely manner. You know, I don't get it. So here's how we handle another aspect of the communication and managing expectations would be, Can I set an appointment?

How many times over the years have you called the dealership and go, hey, I need to set an appointment for my car because it's under warranty? They're like, oh, drop it off next Thursday at 2 o'clock. In your mind, you're thinking next Thursday at 2 o'clock, they're looking at it. They're looking at it. Yeah. No, it's just you're dropping it off and they'll look at it later on.

Maybe tomorrow. Yeah. You call them like my neighbor was telling me he had water in his taillight on his Ford truck and a couple other things. And, uh,. He goes up north a lot and he said to them, you know, I need an appointment to get my truck fixed. Like, okay, you could drop it off Monday. So he dropped it off Monday thinking they'll be calling him sometimes Monday.

And he called them and said, hey, what's going on? My truck is here today. I didn't hear nothing. We didn't get it. We didn't check it out. What do you mean you didn't check it out? I had an appointment. Oh, that was a drop-off appointment. We're not probably not going to get to it till like Friday. So you probably won't have your truck back next week till next week.

So let me get this straight. You had me drop my vehicle off at the dealership to sit there for a fucking week. Well, that's the only way we could do it. The only thing I could think to come up with, and I'd be greatly— anybody got any other ideas, let me know. We set drop— we don't set drop-off appointments. We tell them, bring it in.

We're first come, first serve. We'll get you in line. We have 4 technicians. We have their boards are stacked. We take people in the order they come. Now, if you set an appointment, say, can you drop off— can you bring your vehicle in for an oil change at 3:00 Tuesday? We have a lube tech. Absolutely right. But it's got to go through a technician.

We first come, first serve. You drop it off. Was that appointment? No, we're not setting an appointment. We're not saying if you drop it off tomorrow morning at 7:00, tomorrow morning at 7:01, we're working on it. Yeah, we got you. We'll get you in line. But your problem seems to be smaller than some of us. So if we could get a little bit of downtime where we could pop it in and take a look at it, we'll, we'll do that for you.

But we never say, yep, bring it in, drop it off at 12 Monday, and then leave it like the dealers do. It's almost like they do that on purpose to get the vehicle there. Yeah. Then people are like, fuck it, I'll just leave it. Yeah. What are you going to do? Come pick it up? What are you going to do? Come pick it up?

Well, a lot of times they do, right? Yeah. I wonder if that's by design that way. Well, that really, that little rattle really isn't that bad. So you don't have that warranty on it. Kind of makes you wonder on that too. That does. You, yep. It goes back to that communication though. And even caring. When you were talking about that experience earlier and you were talking about like, if I needed my truck or my car tomorrow, or like how, when you're waiting on it and they don't even care.

Like they don't even care that what your concerns are. No, they don't. It's kind of crazy. And you know, if they're trying to give you the best customer experience, like why wouldn't the lady like write a note? Like I believe that lady was not malicious. I don't believe she meant to have a bad day. I think she's overwhelmed. She probably has too many cars to deal with, but she, the number one thing in my mind, it's a training issue.

By the way she talked to me on the phone and the things she said to me on the phone, my mind right away is a training issue. And you know, the funny thing is I've learned over the years now, we have a problem in our shop, we have a training on it. We had a problem, I told you a couple weeks about front alignments.

We did an hour training. We had a trailer, surge brakes on a trailer, bleeding surge brakes. We had a problem with a guy spending too much time. We did training. We teach them all, let's all get together, let's show you what we're going to do, how to do this. We train them. I mean, how can you expect people to keep growing if you don't give them training?

Well, and then you like, there's all the stuff that you've been talking about, even the systems, right? Like you talk about like the technician sent you a video. Why is that not in the system? Why does she not know that he's like communicating with you? Right. And I bet you she probably does. She probably hasn't been at her computer because she's probably been running around, uh, probably trying to put out fires, right?

Yeah. Yeah. I'm just thinking of the process. Yeah, I'm sure there's probably a process for that. Like, we are— I personally think the way the process should work, and I'm sure we'll get all the pros on here that use it, but the process should work as I would believe that that video should have went to the service advisor. The service advisor should have watched the video and read the notes and got ready for that phone call.

Yep. Hey, Mr. Brown, your truck needs an engine. Gets a video. Why would you send a customer a video? Hey, I'm world-class technician, blah, blah, blah. Your engine's fucked. You need a new engine on your new truck. And he's standing underneath the truck. How is that not going to prompt the customer to call? Because you think about me, an engine in a truck is no big deal.

Like, okay, we do it all the time, right? But think about a guy that doesn't do what we do. Oh my God. And you're like, yeah, your engine's fucked. Your engine's fucked in your brand new truck. And, you know, we're going to unfuck it. Don't worry. Yeah, but don't worry, we'll unfuck it for you. But we don't know why we're going to unfuck it.

We don't know. Service advisor doesn't know when you call her when we're going on. Fuck it. It's just fucked. Like, that's what literally what she's here. He would have been better off sending me, hi, Mr. Brown, I got a big question mark for you. Don't ask any questions because I have questions too. We all have questions. You know, call the service advisor so she doesn't know either.

Like, you know what I'm saying? That's kind of what they conveyed. Like, he knew what was going on with the vehicle. The technician did, but nobody else did. Yeah. Like, and I'm sure there's protocol. I'm sure that— I'm sure something got short-circuited there, or something happened in my mind that, that just didn't— I think something got dropped. I'm sure something in the process got dropped.

But when you were talking about it, that was my first thing, is like, do they not have a process, or did it just— the process not get dropped? Yeah, because once you think that, like I said, if few seconds ago, wouldn't you think that video should have went to the service advisor? Service advisor should have said, okay, let me look at this, pick up the phone.

Hey, Mr. Brown, we're gonna send you a video with the technician file. I read through the notes, it looks like we're gonna have to get you an engine ordered. And wouldn't that service advisor walk over to the frickin'— put it all in there and get it approved? As soon as we get the warranty approved, or whatever they have to do on their end, the codes or whatever they have to do, I'll shoot you a text or an email or whatever, let you know What's going on?

Nothing. I did not get an update till I actually went to the parts department. The only reason I went there, 'cause I know all them people. I dropped. Remember this? That's the same dealership that I had to take my Yukon back 3 times. 'Cause after they put the engine in that, they fucked it up. It's so funny 'cause when you started talking about this truck, I'm like, didn't you have a Yukon that was brand new that just had the same problem?

Yeah, I'm driving it today. Man. Yeah, 'cause guess what? My fricking PCS module on my Tesla Cybertruck went bad so it won't charge at home. I have to charge at the Superchargers now. And that part's on back order. Elon let me down. Elon, fucking Elon. So now I got Elon let me down, GM freaking on its— you know, my 3-liter's getting a new engine, my 6.2 just got new engines 4 months ago.

Like, everything out there is junk nowadays and breaks, and it's overpriced. And then it's on backorder once it breaks. Then it's on backorder. They're saying that module won't be available till like June for my Cybertruck. But you know what Tesla did? They said anybody had a failure gets free supercharging. Oh, so Tesla, at least Tesla thinks outside the box, says, hey, we're going to inconvenience you, but at least we're going to pay for it.

Yeah. GM, they haven't even put— they had not even put a recall out on these 3.0L yet. There's a bulletin, a service bulletin, but there's not a recall. That's $100,000, $80,000 truck, whatever we paid for it. But 17,000 miles, it's fucking blown up. Not to mention that thing's been in the dealership for a rearview camera, rearview camera. It's been in their dealership for a wheel bearing, and it's been in the dealership for the shutters on the front.

So every time my son says, every time I drive that piece of shit, something happens. It's true. Yeah. Brand new truck, 17,000 miles on it. Like, how can this keep going on? And then you think about it, if they're so bogged down with engine failures and recalls and warranties, right? And it's only getting worse, right? The warranties are getting worse. In my opinion.

Like Ford beat everybody in warranties. What's it doing to the dealerships? There's no more customer pay. So these guys are all working under warranty time. Oh, shit. You know what I mean? So are they making less money? Yeah, that's a good question. You know, we should get a dealer tech on here. Yeah. Any dealer techs that work at a dealership want to come on, we'll blur your face or put a bag over your head so you don't get in trouble.

But let's talk about this shit. We can change your voice too. Yeah, let's talk about this. Witness protection program. Yeah, witness protection program. Let's talk about this and maybe we can get you a bay with $125,000 salary like the Ford CEO said. Because I, you know, I do think there needs to be some changes in this industry. And I think the technicians need to push back, like I've said on my, you know, podcast a lot of the time.

But communication would make everything better for the technicians too. If the customer expectations were set, you could line up the guy's jobs. And say, here's your timelines. But I think about it, if they're not communicating with the technicians going, hey Jason, what do you got going on? I know you're supposed to have this. Yeah, I know this job's giving me a hell of a time.

It's taking me 2 hours longer than it should. So now I'm backed up. Well, wait a second, I got this job, you know, promised for 3. There's no communications. I walk out when I'm doing service at my shops. I don't do it anymore. I used to walk out every 15, 20 minutes to see where the guys were at on jobs. You need anything?

How's this thing going? They used to love it. Yeah. You know, I preach to my service advisors now, you got to go out and check on these guys. You're checking the pulse. See what's going on. Yeah. What's gone sideways in the shop. And as a service advisor, you should do that. You should get up off your ass and walk out there. Another thing you should do as a service advisor, if you don't know, go on— if you're independent, go on RepairLink, print the diagram for the parts.

If they— if you have Ford, GM, Chrysler, whatever, International now, Go out there and say to the guy, hey, I'm not sure what you wrote on this repair ticket. Is this the part you need? Have him circle it. That way you don't order the wrong parts. Okay? We cannot expect these technicians to perform and have their efficiency up high, up into the stars if we're not getting them the right parts.

We're not billing enough on the jobs. My guys pick their own labor times. Both, all my shops, my guys pick their own labor times. We look at the book, go, yeah, that's cute. Nice suggestion, but the thing's a rusted piece of shit. Let's triple that. Yeah, it pays 3 hours. We're gonna try to get 9 because it's gonna take us every bit of 9 hours to get this rusted piece of shit apart.

We're gonna also tell the customer, hey, this is what's going on. With communication, we're going to set the expectation. We're going to do the very best we can not to do X, Y, and Z, but it's taking us this long, going to take us this long. Yep, yep. Well, the book time says 3 hours. That's great. Maybe you should take it down the street where they'll do it for 3 hours because nobody's doing this job for 3 hours.

Yep. Yep. Once again, it's communication. If you communicate to customers, most people are reasonable. What pisses them off is non-communication. Yep. They leave you voicemails. We don't have voicemails at our shop. The only person has a voicemail in the shop is me and my wife. And guess what? They're full. Because my thing is, if, if somebody's calling me on my voicemail, they know my— they know who I am.

They can call my cell phone. Yeah, same with my wife. Right. But we don't have Voicemail. How do you feel when you call somebody and voicemail picks up? You're hoping someone's gonna call back. You think you're throwing something in the abyss. Yeah. And that's the way it is when you go to these dealerships and you call the service advisor and they just don't call you back.

And it's not that they don't wanna call you back. They're doing everything they can to hold on with both hands. You know, and that's where the chaos happens. You know, that's why we go chaos to control. We believe in communication in our shop. You cannot call somebody too much. Now, final before we close, how long we been doing this? Uh, the last thing I was gonna say is I forgot.

What was it? Time check. Shit. Yeah, shit. Um, I don't remember now. It'll come to my thing. But you know, in closing, I think if the technicians communicated with the service advisors, service advisors communicate with the technicians, the service advisors communicate with the customers, we would have, it would be a lot easier. Let me make sure I did, uh, yeah, build in buffer times.

I just wanna make sure I just build in buffer times into every promise. I don't promise a professional shop, leave room for unexpected, you know, interruptions. I've used the old parts, parts didn't come. That happens all the time now. Or you get the part and it's been reboxed. It's been re— they return it and somebody at the auto parts store just put it back on the shelf.

You take it out, it's all greasy. It's been on a vehicle already. We've been there, you know, road testing and quality control. You know, make sure you guys are getting paid. You're writing down time to get road test time. Make time. You're getting time for burnishing brakes. Now burnishing brakes is a labor operation you can get nowadays. You know, don't let your customers be your quality control.

I always preach that. Test drive your vehicles when you're done with them. Make sure you wipe them down. Make sure you write the mileage in and out. Why do we write mileage in and out? That way the customer says, well, did you even drive when you got done with it? Actually, yes, it came with 900 miles, it left with 920. We drove it 20 miles, it didn't act up.

You have proof versus like what came with this, you had no mileage out. Mileage in and mileage out is a good thing. You need to have a system, a checkout system for your service advisors when they go to close a job. You have a list. You know, I make it on my program so they have to do it. It won't go any further until they put something in there and then they put something fictitious in there.

You catch them. Yep. Yep. Because it's not going to let you put a lower mileage than the mileage in. You can't come up 9,000 miles and come out with 1 mile. It's not Ferris Bueller's Day Off where they put the car in reverse. Yeah. And take the miles off it. You know, no surprise policy. Anybody that's a professional, I don't know if you've ever heard this, I don't like surprises.

Do you like surprises as you get older? No, I do not like surprises. I fucking hate surprises. I've been in the surprise business my whole life. Surprise, it's fucking broke. Surprise, you know, we misdiagnosed it. Surprise, wrong part. Okay, surprise anxiety at this point. Yes, exactly. So we're not in the surprise business. So customers like to be surprised. If you're going to have a problem or you think there's going to be a problem, Write it down, explain it to the customer, prep them.

That way, if it does happen, they're already prepped. If it doesn't happen, you're a hero. Hero, absolutely. Okay, there's no better way than to turn somebody off than to not communicate with. I cannot say that enough. Nobody likes silence. I just bought my new house and the guy that was the mortgage guy, this fucking guy answers his phone. I sent him a text, it was like me, boomerang.

I would get an answer. I said, this motherfucker must walk around with his phone in his hand. Yeah. But you know what that did? It put my mind at ease. I call the guy, ask him a question, every time, never, oh, answer the phone irritated. Any, hey Kevin, what's going on? Hey Aaron, what about this? No problem, this is what's going on with that.

This was, or he would call me and say, hey, guess what? Got the appraisal back, we're good. Check the portal, it's gonna be coming through. He was always communicating with me and that made the process so much easier for me. I wasn't sitting there wondering, 'cause I don't care who you are, Getting a mortgage is tedious. It's irritating. They always need that extra piece of fucking paper.

Yeah. Okay. His communication was so great. I was so impressed. Like, that's the way it should be. And that's why I want my shops to be— we communicate, text, we leave phone messages. We do a lot of things to communicate with the customer. And I think that's important. I think that's where the big dogs are falling off. They're not training their people because they don't give a fuck.

They care about the money. Private equity groups and dealer principals do not give a fuck about the employees, the customers, or anything. Let me go ahead and prove that to you. Look what they do to people when they get them in the finance office by design. Yeah, $6 more, we can get that tire warranty package on there. Yeah. What happens if you pull out the dealer parking lot right now, hit a pothole, and your $900 rim smash?

You can't even drive your new car home. It's only $6. You know what I mean? And they just sit there and ratchet and ratchet and ratchet. Okay. They don't give a fuck. They give a fuck about the numbers. Okay. So these people on the back end, some of this stuff that I think the problems they run into, and I'm talking dealers, is by the people upstairs.

They look at me and go, we don't give a fuck how you get it done. You better get it done for the most amount of money and you better not fucking piss them off. Yep. Or it's coming out of your paycheck. And by the way, you're not getting fucking trained. Wouldn't it be a lot easier if they did training and train them how to, how to fuck people?

At least the people wouldn't be mad. At least they trained. Yeah, yeah, yeah, yeah. You know, I think these shop owners would train people if they knew how to train people. I think right now they're running around like maniacs and they are the problem in their shop. They probably didn't get trained. They didn't get trained. They went from being a technician to a freaking owner.

Yeah, does not— it's not the same thing, guys. It's two different jobs. It takes a long time to figure it out. And a lot of times I'm going to tell you, a lot of guys might not be cut out for it. You don't have the balls. So you go up there, you're broke. So you're up there giving discounts. You're better off back in the back fixing cars because every time you go up front, you're giving fucking discounts because your old buddy, old pal came from school or this or that, or you feel bad, this and that.

I'm not saying not to give a discount ever, but you can't give everybody a discount. No. I've had clients that are giving discounts. I look, I go, you guys like gave like $3,000 worth of discounts last month. What the fuck? Well, you know, I just feel bad for these people. Then you need to stay the fuck in the back. Okay. You didn't design the car.

You didn't buy the car. You didn't break the car. You didn't make the parts. You didn't write the labor time. So you're going to give the guy, you're going to give, you're going to, technician's going to write it all up and do it. He's on flat rate. You're going to discount his bank account. Cause you're going to give a discount on the hours.

Well, that's 5 hours. You know what? He got it done in 3. So let's go ahead and take that off his time. But the job that he got paid 3 hours, it took him 8 hours. You didn't give him 8 hours. So you just took it right out of his pocket. These are the shop owners that aren't trained. They don't communicate. They don't know what to do.

So you have to communicate with your people. And that goes for the shop owners. You need to go out there and check your people's pulse. Remember a while ago I got flamed because I said I go out there and I talk to these guys and I check their pulse. Like, Hey, what's going on with you? Well, my dad died. Okay, I can understand.

I'll give him a few days. I understand. That's one thing, right? If a technician is out there having a temper tantrum, being a little bitch, you just ignore him. I'm like, I don't want to hear it, okay? I don't give a fuck that you're being a bitch. Like, that's a temper tantrum. It's no different than your kid throwing himself on the ground and jumping up and down.

What all the books back in the day— not nowadays, but back in the day— they're like, let him. A freaking clown. Out there. He doesn't have a circus to perform in front of. Nobody cares. Dies it down. It dies it down. Have you ever watched— like, my grandson flamed out the other day. I'm like watching him flame out. Yeah, he's sitting there screaming and yelling, and he stops and he looks like, what the fuck?

You guys are supposed to be doing something. I'm over there just staring at him. I'm not doing shit. Because that's the way my mom and dad did me, right? And that's the same with your technicians. They're being— they want you. It's no different. Let's go have the reaction. Let's— everybody's done this if they have a wife or a girlfriend. What's wrong with you?

Nothing. Really? Nothing's wrong. Then why you been a bitch to me for the last 3 hours? Right. Yeah. But they're always like, nothing's wrong. So I don't even ask my wife. Don't even ask. I just quit years ago. Like, if you want to be pissed off, be pissed off. I'm sure it's me. You know? And I can understand like a technician getting mad if, you know, somebody short sheets him and he rates it for 5 and the owner comes out and goes, hey, You know, like book time's only 2.2.

I got you 2.2. What are you trying to do? Well, it's all rusted. It's this and that. That would be a communication thing, right? And your paperwork, write it up. Yep. Book time is 2.2, but somebody's been in here, did this, bent this bracket, this bolt is rounded. It's going to take me a couple extra hours to get this job done. That's communication.

And the service advisor can let the customer know, hey, this is what's going on. And now they have the expectation set, right? And I think a lot of the things on flat rate, why these guys on flat rate, I'm not talking the dealer guys. I could give a shit about them because they're, they're in a, they're in a mousetrap. They're in a mousetrap game, right?

Yeah, they're fucked. Independent guys are crying about not making money on flat rate. Did you ever stop and look in the fucking mirror? Because that might be the guy causing you all your money problems, because you have never been trained to write a proper repair order. I can show these guys how to write a proper repair order by not cheating anybody but getting what paid for what you're doing.

A lot of these guys don't do it. They don't know how. They're not being trained. So all of a sudden they look at it and go, well, book times 1.7, that's all I fucking get. You know, it cost me 4— I worked 4 hours, I got paid 1.7. You fucking looked at it and seen that it was a rusted piece of shit.

The bolts are rounded off and stuff like that. You got to remember, it's not your bolts, it's not your car. You're the guy that's contracted to do it. Does a dentist, when he opens your mouth and starts drilling one tooth, and drills it a little bit and goes, oh fuck, look at the other tooth right next to it, it's decayed. Do you think he just says fuck it?

I'll give you a discount. Buy one tooth, get the other tooth for free? No. So start looking at the jobs, guys, and going, okay, I need to get paid to test drive this. I need to get paid to do this. I need to communicate upfront going, hey, this needs a transmission service. Hey, it needs a coolant flush. Hey, this is leaking. This is going to break.

Okay. Start saying this stuff to get extra money. You're not cheating anybody, you're getting paid for what you're doing. And I'll say that's a really good analogy with the dentist because you know what he does? He gives you, uh, he does an x-ray, it's a diagnostic that he charges you an assload of money for. Yeah. And then he gives you a full proposal of everything that needs to be done.

And then fucking goes in there and the, the lady, the dental hygienist takes it, takes the thing, and then he comes in with the fucking Explorer. Yeah. Hey, look at that one. Uh, let's look at bilingual number 62. Oh, that one's awful soft. We're gonna have to get in there. Oh, you know, and they call it the teeth. He's going around poking.

You're like, ah, you're like, oh yeah, this is going to be expensive. Yeah, yeah, right. Yep. Oh, absolutely. Yeah, exactly. And what's the difference between a mechanic? You're like, I did today, um, I did a new truck inspection because Jason was gone and the guys are backed up. I'm like, I'll do a new truck inspection. I went upside down this truck and down the other, took pictures and everything, did a whole write-up and everything.

Guys like, this is the thorough write-up ever. But you know what? He's like, this is great. The communication was great. Everything's written down here. You even put that as a reman engine and put a picture of the tag in there. I'm like, yeah, that's a plus when you're buying a used truck. It's got a newer Ford motor in it, right? New engine in it.

But I communicated to them, he's gonna bring it back after he buys it for all the repairs. Because I sat down and I wrote it all up and I communicate, I'm like, hey, this truck's in really good shape, but it needs X, Y, and Z. We'll go ahead and get it fixed. Not a big deal. Give the, uh, U-Haul the list. They'll probably discount the money, bring it back.

We'll get it taken care of. You'll do that? Absolutely. Okay. I communicate. I walked up front and communicated with the guy. Yep. Okay. How do you think that would have went at the dealer? Ah, man, he would have never got an answer. No. And I'm not saying the technician is supposed to walk up at the dealership on flat rate. My guys would have walked up front.

Yeah. They're hourly now. Even on flat rate, my guys would have walked up front because they know I expect Communication. I want the customers to know what's going on. It's their car, it's their money. Tell them what's going on. You know, don't be that guy that's like, yeah, it's a fucking needs it. Cause I'm the guy, I know I'm a mechanic, whatever, bro.

Like, cool story, right? Whatever they say. It's like communication is key. And I think training is lacking. I want to go back to earlier. You were talking about when you're padding the hours for the diagnostic time, right? Or you're padding the hours for the time for the job to get get it done and you're like, hey, the bolts are rusted, you're painting the picture of what's going on and you say this is going to be 9 hours to do, and then you get it done in 4, what happens?

What's that? How does the customer feel? You tell them it's 9 hours, we got this difficult job, the bolts are rusted, all this stuff is going on, it's going to be about 9 hours to get it done. You gain their trust. You gain their trust and then you get it done in 5 hours. Yep. Now you, you underpromised, overdelivered. Absolutely right. Yeah.

And then the story they go out and tell is not, oh, the shop, I took it to the shop, they didn't communicate. They, then they took 9 hours and blah, blah. Instead they're like, oh, I had a really difficult job. I had some rusted bolts. Yeah. And they told me it was gonna be, and they got it done in half the time.

Yeah. They're out telling a whole different story. Yeah. You know, that goes back to that story when I told the, about the Triton exhaust manifold studs. Remember that one podcast? And I was like, oh, you know, I call the customer up and we tell 'em, hey, It's got X amount of bolts broken. We're gonna try our best to get the rest out, the studs out.

And you know, but if not, it's gonna be an hour more. And our guys are like, oh no, we just go ahead and tell 'em it's gonna be 10 hours right up front. I'm like, no, I go, we call 'em back and go, okay, we got it apart. It's a, it's a touchpoint for me. Like, okay, we got the manifolds off. They're thinking about, you call 'em up and go, studs are, you send 'em the paperwork and you're like, okay, the studs possibly could break.

They are notorious for breaking, right? Call 'em back up the next day after you, all right, we got it all apart. Outta 16, outta 10, outta 4, whatever job engine we're doing, 4 broke. So it's 4 more extra hours. So we did a really good job getting the rest all out. So there's no more surprises, but you got 4 we have to drill and it's gonna be $400 more.

Not only you told them where you're at at the job, you told 'em you got it apart so they know you're halfway, you're apart. So they kind of have a timeline. When do you think you can be done? If everything goes done, hopefully tomorrow we'll have it done. Next, whatever. Timeline you're at, right? So you kind of call them halfway through the job, say, this is what we came up with.

Think about a shop that's broke and needs the money to do payroll, and they're like, they get that job in there, they're like, yep, it's all these bolts are going to break. Just call them up and tell them it's going to be $3,800 to do this job because all the bolts are going to break. Do you think, and I'm not saying everybody's a crook, but do you think that guy that needs that money might be like, well, we got lucky, we got 6 of them out, we charge them for 10.

Fuck it, they'll never know. We need the money. Yeah, absolutely. And that goes back to knowing your numbers, what I always say, and running your shop profitably so you don't have to do that shit to people. Okay. We've never— any shop I've ever worked in, we've never been dishonest. We'll sell you everything you need, but we don't sell you stuff just to sell you stuff.

Yeah. You know, and I think that happens a lot in our business and You know, closing— this is what I was going to say. The dealerships have quotas. You have to set— you have to sell 10 alignments, you have to sell 10 coolant flushes. I'm just making these numbers up. 10 alignments, 10 coolant flushes, 10 brake flushes, and 10 SRAM flushes this week, or you're in trouble, Mr.

Service Advisor. Yeah, these are your quotas, or you don't get paid, or you don't get paid, whatever. Yeah, your bonuses. Yeah, so you're taking your service advisors and basically turn them into crooks. What if you got cars in there that didn't need any of them. I would have quota. Such would be your last day of the month. Yeah, you're going to get— the customer's going to get screwed.

Yeah, but they don't care. They do not care. They want that freaking money. They, they do not care about the dealerships. Independent shops, I would like to think that they're a lot better, but I'm sure there's a lot of crooked independent shops. I deal with a lot of different shops though, and I'm telling you, a lot of the guys are just like me.

They're good guys. They treat their guys good. The only problem a lot of these guys have, they're just not charging enough 'cause they don't really know what to do. They went mechanic to business owner and they just don't know what to do. And we're fixing that and, you know, over and over again with the consulting, it's growing to the point now where I, I have to cut it off and have a waitlist because I can't take care of everybody, um, as much as we can.

Um, you know, and I always tell these guys, you know, once you start mark or start estimating your jobs correctly and all that stuff, Things change. You have a different outlook on something. A warranty comes back, it's not the end of the world. You could afford to spend $400 or $500. Yeah, yeah. But you know, now that comes to another point, communication.

Well, you're really expensive. Yes, we are, but you communicate to them why you're expensive. We have warranties, we would tow it back on our dime. We have our parts, you know, we put our parts on it 'cause they're quality parts. They're known quality parts, they're not from Amazon. You know, you hear war stories all the time on Amazon, on TikTok. Oh, these guys are like, yeah, we put this Amazon part on, it caused this problem.

The speedometer was jumping up and down, all kinds of crazy shit. You know, we had cheap coils on the Tritons when they came out. The coilover plugs were really expensive and they had cheap-ass coilover plug coil packs. I don't remember where they were. We had a truck come in and the speedometer was jumping all over and I was out in the shop at that point and we ended up tracing it all the way back to the fucking coil packs.

Wow. Yeah, changed one of the coil packs that was leaking. This phenomenon went away, problem went away. So crazy. That's interesting. Cheap parts cause all kinds of problems. Anybody says they don't, they're nuts. Now, cheap brake pads, yes, they'll wear out quicker, but they're okay. They still stop, you know, you know what I'm saying? I'm sure they had braking powers different and everything like that, but I'm sure they have some kind of, you know, guide where they can— the manufacturer can't go past or whatever.

I'm not an engineer, but You know, yeah, communication, communication, communication is, you know, it goes both ways. It goes from the owner to the employees, the service advisor, technician, technician to the service advisor, service advisor to the customer, customer back to the service advisor. Your service advisor is the face of your business. They should be trained to talk to the customers and set the expectations up front so you don't have all kinds of crazy shit going on in your shop and people not mad.

We very seldom do we have people super pissed off about their trucks not being done. If they do, they're usually unreasonable because they're already told up front and we have the phone calls recorded, the front office recorded. We have their transcript with AI recorded in the repair order. We have it all. Yeah. So when they start acting all crazy and said, you told me this, we literally— I had the guy scrub the video and said, send the video with you telling them the expectation.

I've done that several times. And they're like, oh, I misunderstood you. That's how serious I am about it because this is very important. Yeah. Because this goes to show you what happened with me at the dealer. And I'm sure some fixed ops guy right now is going to watch this video and go, what the fuck? Because I know the service managers at all the dealerships, they all know me.

I walk in, they're like, hey, what's up? Watch your clip yesterday was hilarious. They all know me. They're going to see the clip. They're like, are they talking about us? Yeah, that's why I didn't say the lady's name. All right, thanks for watching. Have a good day.

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Remarkable Results RadioSeptember 4 · 47 min

Daily Habits That Build a Stronger Auto Repair Shop Culture [THA 501]

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

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The Institute's Leading Edge PodcastSeptember 3 · 1h 4m

217 - AMA: How the Best Shops are Confident in their Pricing

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

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