Hiring Isn’t the Problem. Your Process Might Be. | Sara Fraser and Bill Haas - Ep. 6
Now playing — Under The Hood CPA Podcast
About this episode
Want to know what your auto repair shop is worth, whether you’re charging enough for labor, or where profits may be leaking? Kaizen CPAs +…
More from Under The Hood CPA Podcast
The Hidden Costs Draining Your Auto Repair Shop with Lucas Underwood - Ep. 7
Want to know what your auto repair shop is worth, whether you’re charging enough for labor, or where profits may be leaking? Kaizen CPAs + Advisors offers five free, easy-to-use tools for shop owners—just enter your numbers and get practical answers at kaizencpas.com.In this episode, Eric is with Lucas to break down the financial and operational challenges behind a slow start to the year and ongoing cash flow pressure. Using the shop’s profit and loss statement, they explain why revenue does not always translate into cash and how car count, average repair order, gross profit percentage, and vehicle throughput affect profitability.The conversation also covers warranty expenses, policy creep, quality control, staffing, marketing costs, and the importance of matching advertising to the shop’s capacity. Lucas and Eric share how to work backward from financial goals to set realistic sales targets and build a practical plan for improving cash flow and profitability.Timestamps:00:00 Perfect Storm Slowdown00:40 Clean Books Reality Check02:47 Reverse Engineering Targets06:43 Why Sales Aren’t Cash07:25 Parts Margin Squeeze10:41 Labor vs. Parts Mix13:13 Debt Service Blind Spot15:01 Car Count vs. Throughput19:19 Warranty Policy Creep21:12 Marketing Costs and Location23:17 Availability and Pricing Psychology24:07 Onboarding Capacity Crunch25:13 Scaling Ads Without Overload27:00 Year to Date Profit Trends29:27 Expense Control Reality Check30:19 Reverse Engineering Targets35:15 Warranty Drag and Fixes36:54 Parts Optimizer Gotcha38:51 Three Month Action Plan40:34 Using AI in the Shop44:12 Wrap Up and Next Steps
More Revenue Doesn’t Always Mean More Profit - Ep. 5
Want to know what your auto repair shop is worth, whether you’re charging enough for labor, or where profits may be leaking? Kaizen CPAs + Advisors offers five free, easy-to-use tools for shop owners—just enter your numbers and get practical answers at kaizencpas.com.In this episode of Under the Hood CPA, Eric and Clay discuss why increasing revenue does not always lead to higher profit or cash flow.They break down technician efficiency, productivity, pay plans, job tiering, shop processes, and the hidden costs of interruptions, comebacks, and turnover. They also explain how tools, training, DVIs, and AI can help shops keep up with increasingly complex vehicles.The conversation highlights the importance of knowing each technician’s true loaded labor cost and using that number to make better decisions about staffing, pricing, and productivity. The goal is simple: fix the process, not the person.Timestamps:00:00 Complexity Needs Investment00:40 Show Intro and Setup01:10 Audio Glitches and Banter05:48 Efficiency and Turnover09:37 Pay Plans and Comebacks11:30 Tech Tiering and Dispatch15:20 DVI and New Tools20:28 Define Efficiency Metrics24:53 Cost of Inefficiency Math26:02 Productivity Hits Profit27:20 True Technician Costing30:25 Calculating Loaded Cost34:45 Rates vs. Efficiency35:39 Costing Tool and Setup38:39 Complexity and Training Edge40:01 Tools as Retention Strategy44:41 Turnover and Tax Benefits48:16 Wrap Up and Productivity Playbook51:39 Final Takeaways and Outro
The Deal Looks Good… But Are You Missing Something? with Aaron Woods - Ep 4
Want to know what your auto repair shop is worth, whether you’re charging enough for labor, or where profits may be leaking? Kaizen CPAs + Advisors offers five free, easy-to-use tools for shop owners—just enter your numbers and get practical answers at kaizencpas.com.In this episode of Under the Hood CPA, Eric sits down with Aaron to discuss buying, selling, and transitioning into an auto repair shop.Aaron shares his journey from music and dealership service advising to opening Extra Mile Auto Care and explains why exit planning should start long before you are ready to leave. They discuss valuation, negotiation, funding, owner financing, working capital, and different paths to shop ownership. The conversation also covers succession planning, key employees, due diligence, owner dependence, culture, and the risks that can affect a deal. The goal is to understand the risk, plan ahead, and build a deal that works for everyone.Timestamps:00:00 Risk vs. Reward00:42 Show Intro01:06 From Music to Auto02:26 Early Work Roots04:18 Starting the Shop06:17 First Shop Reality08:12 Exit Strategy Mindset13:52 Approaching Owners16:13 Funding the Buyout18:16 Legacy and Trust23:54 Structuring Win Wins28:18 Evaluating the Deal30:20 Bank Valuation Rule30:53 Upside and Payback32:40 Funding Strategy and OPM35:31 Owner Financing Tradeoffs39:00 Deal Risk Red Flags41:41 Integration and Culture Fit49:18 Cash vs. Sweat Equity52:31 Institute Role and Resources56:49 Final Takeaways and Outro
The Company Is Always For Sale: Hard Truths About Owning a Shop with Mike Allen - Ep 3
Want to know what your auto repair shop is worth, whether you’re charging enough for labor, or where profits may be leaking? Kaizen CPAs + Advisors offers five free, easy-to-use tools for shop owners—just enter your numbers and get practical answers at kaizencpas.com.In this episode, Eric and Mike Allen discuss the realities of building, buying, and selling an automotive repair business.They cover succession planning, family ownership, private equity, buying out employees, and the financial mistakes that can create major problems. The conversation also dives into revenue vs. profit vs. cash, IRS issues, EINs, bookkeeping, entity structure, shop software, and tax planning. The big takeaway is simple: understanding the numbers is critical to making better business decisions.Timestamps:00:00 Hard Truths on Ownership00:36 Show Intro and Whiskey Banter01:36 Ads and Paying the Bills02:22 Hockey and Home Teams03:35 Concert Tickets Sticker Shock04:40 Final Four Box Story06:25 Why Shops Fail to Scale09:58 Third Generation Shop Roots12:47 Buying In and Succession Plan15:09 Succession vs. Private Equity21:31 Deferred Comp for Managers22:55 Buying a Shop for Cash24:57 IRS Trouble and Asset Deals27:59 EINs and Legal Shields30:23 One EIN vs. Many Costs32:08 Selling Stores and Reorgs33:32 S Corp Basis Traps34:22 Podcast Ownership Structures36:33 AI and Better Bookkeeping37:47 Charts of Accounts and Peer Groups39:10 Coaching Groups and Profit Talk41:26 Tekmetric and QBO Debate43:54 Desktop Legacy and Old Systems46:54 Kaizen Pricing and Risk48:38 Aggressive but Legal Tax Planning49:59 Race Cars and Complacency52:18 Giving Value and Closing Thoughts