Planning your exit — valuing and selling an auto repair shop, succession, and preparing the business for what comes next.
17 episodes

Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HERETurnkey Marketing takes the stress of doing something I'm not good at off my plate. And gives it to someone who is. Click HERE for more.47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREWhen I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!In this episode, Mike Allen sits down with Tony and Becca Zanders to discuss the realities of selling an auto repair shop and what it takes to leave behind more than just a paycheck. They share the story of building Heritage Auto Repair from the ground up before selling it to a longtime employee, explaining why preserving their legacy mattered more than chasing the highest offer. The conversation explores private equity, succession planning, burnout, and the emotional challenges many owners face after selling their business. Tony and Becca also offer practical advice for increasing your shop's value, building systems that outlast you, and creating an exit strategy that aligns with your long-term goals.Timestamps:00:00 Legacy vs. Payday: The Truth About Selling Your Shop 01:00 Meet Tony & Becca Zanders: Building Heritage Auto Repair Together 04:41 From Backyard Garage to One of Idaho's Top Repair Shops 07:00 Selling to an Employee Instead of the Highest Bidder 08:20 Private Equity, High Multiples & Internal Buyouts 10:42 Questions Every Shop Owner Should Ask Before Selling 12:14 Don't Wait Until Burnout: The Three Keys to a Healthy Exit 16:07 Defining Your "Why" Before You Sell 17:44 Choosing the Right Successor and Passing the Baton 21:14 The Emotional Reality of Staying On After the Sale 23:24 Losing Your Identity After Selling Your Business 24:18 Empowering Employees to Increase Shop Value 27:13 The D6 Elements: Building a Sale-Ready Business 35:16 How to Start Planning Your Exit—Even If You're Late 37:03 The Biggest Mistakes That Destroy Shop Value 39:40 Why Strong Processes Matter—Even After the Sale 44:02 Vegas Food Recommendations & Planning for AAPEX

Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode What does it take to build one of the fastest-growing auto repair businesses while leveraging artificial intelligence to improve performance at every level? In this episode, Carm Capriotto welcomes Jesse Jackson, Founder and CEO of Mango Automotive, to discuss how she scaled from zero to eight locations in less than five years. Jesse shares the leadership lessons learned through rapid growth, how custom AI tools are helping improve customer experience and operational consistency, and why she believes it's time to rethink how independent shop owners plan their exit from the industry. What You'll Learn How Mango Automotive expanded from a startup to eight locations through strategic acquisitions.The leadership challenges that come with rapid growth and why building a corporate support team became essential.The three cultural principles that drive employee engagement: never yell, bonus well, and have fun.How AI is being used to measure standard operating procedures and improve accountability.Why analyzing phone conversations with AI helps advisors convert more callers into customers.How providing realistic price ranges over the phone can improve appointment conversion rates.How AI-driven follow-up processes dramatically increased maintenance rebooking rates.Practical ways any shop owner can use tools like ChatGPT or Claude to evaluate service advisor performance without spending hours reviewing phone calls.Why thousands of shop owners approaching retirement may be leaving significant business value on the table.How Jesse's cooperative exit model could help independent shop owners achieve substantially higher business valuations than traditional private equity acquisitions. Artificial intelligence isn't replacing great leadership; it's making great operators even better. Combined with a strong culture, measurable processes, and innovative thinking about business ownership, AI can help repair shops improve customer experience, scale more effectively, and create greater long-term value for both. Jesse Jackson, CEO, Mango Automotive, 8 locations Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/Subscribe on YouTube:https://www.youtube.com/carmcapriottoFollow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmastersJoin Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976Join our Insider List:https://remarkableresults.biz/insiderAll books mentioned on our podcasts:https://remarkableresults.biz/booksOur Classroom page for personal or team learning:https://remarkableresults.biz/classroomSpecial episode collections:https://remarkableresults.biz/collectionsBuy Me a Coffee:https://www.buymeacoffee.com/carm The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto:Facilitating Wisdom Through Story Telling and Open Discussion.https://remarkableresults.biz/Diagnosing the Aftermarket A to Z:From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.https://mattfanslow.captivate.fm/Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest.https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.https://autorepairmarketing.captivate.fm/The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.https://chriscotton.captivate.fm/Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O'Neill.https://craigoneill.captivate.fm

Welcome to another episode of ShopSoup. This week we cover just some commentary on operating a family business and how one might exit away from it. Sell it to the next generation? Give it away? Simply close it up? Or, do you go the Private Equity route? Many paths to consider.Greg Buckley shares insights on family business legacy, strategic planning, and leadership in the automotive industry, emphasizing the importance of purpose, succession planning, and continuous learning.KEY WORDSfamily business, automotive industry, leadership, legacy, succession planning, strategic growth, mentorship, business exit strategiesKEY TOPICSFamily business legacy and succession planningLeadership and team development in small businessesStrategic growth and diversification in automotive industrySOUND BITES"Knowing your exit strategy is crucial.""Say no more often to focus on your goals.""Put your team in a position to succeed."CHAPTERS00:00 Welcome to Tectonic: A Family Business Perspective02:24 The Importance of Planning for Business Exit05:15 Mentorship and Team Success in Family Businesses07:46 Navigating Family Dynamics in Business10:16 Legacy and Future of Family Businesses12:44 Curiosity and Continuous Learning in Business

209 - The Real Story of Growing an Independent Auto Repair Shop with Andy Severein June 24th, 2026 - 01:00:41 Show Summary: Andy Severein shares how Andrew's Auto grew from a single shop into a thriving multi shop operation through coaching leadership and a commitment to continuous improvement. Jennifer Hulbert explains how understanding financials improving repair order value and developing managers helped transform the business. They discuss building a strong culture creating opportunities for employees and preparing the next generation of leadership. Their story shows that long term success comes from intentional growth consistent training and serving both customers and employees well. Host(s): Jimmy Lea, VP of Business Development Guest(s): Director of Programs & Owner of Service Plus Automotive Owner, Andrew’s Auto Show Highlights: [00:02:29] – Jennifer shares her journey from shop owner to Institute program director. [00:06:11] – Andy explains why he purchased a struggling repair shop. [00:09:00] – Coaching revealed the business metrics Andy never knew existed. [00:11:54] – Average repair order nearly doubled through better processes and training. [00:16:00] – Profit sharing and community support became the business mission. [00:20:10] – Learning financial statements changed every business decision. [00:27:00] – Teamwide coaching fueled one million dollars in sales growth. [00:34:00] – Intentional leadership strengthened culture and employee development. [00:38:02] – A newly acquired second shop quickly doubled its repair order. [00:48:00] – Andy encourages owners to embrace coaching before opportunities disappear. 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/_3LVDHjy2G4 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: The Real Story of Growing an Independent Auto Repair Shop with Andy Severin 06242026 Jimmy Lea: Good morning, good afternoon, good evening, or good night, depending on when and where you're joining us from today. It is a gorgeous day outside. I hope you are able to go outside and breathe in some beautiful fresh air. Hey, today is awesome. Today is going to be amazing. We've got a great conversation gonna happen with a phenomenal shop owner, with a phenomenal coach and trainer from the Institute for Automotive Business Excellence. But before we get into that, let's talk about you and where you're at, and what's going on in your life. This is going to be an interactive webinar. Interactive how? In the comments section, in the questions, in the comments, put in there where you're joining us from today. Love to give you a shout-out here as we are on the live webinar. We're streaming through many different, multiple streams. Multiple live streams are going out on Facebook, and on YouTube, and on StreamYard. So we've got all these avenues that we're reaching out to the industry to, to, for us to connect, for us to come together. So drop in the comments where you're joining us from, city, state, and your shop name. Love to give you a shout-out so we can recognize everybody who is here for this live event. And it seems that everybody is shy today. Which is awesome. That's great. You know where the comment button is. When you find it, put in there your information, and we'd love to give you a shout-out here as we're on our live event. Streaming on Facebook, and on LinkedIn, and on YouTube, and on StreamYard. Oh my gosh, this is so awesome. This is so awesome. All right, for our conversation today Jennifer Holbert is here from the Institute for Automotive Business Excellence. She is a shop owner. She is a a coach, an industry coach, an industry facilitator with the GEAR Performance Group, and most recently moved into the position of director of programs with the Institute for Automotive Business Excellence. Thank you so much, Jennifer, for being here. Good morning, good afternoon. Jennifer Hulbert: Thank you. Thank you for having me. Excited to be here. Jimmy Lea: Yes. We're gonna have an awesome conversation. I'm in the good morning part, and you're in the good afternoon part. Jennifer Hulbert: I am. Jimmy Lea: 'Cause you're in New York, right? Jennifer Hulbert: I am. Northern New York. Jimmy Lea: Northern New York, awesome. How long have you been in the industry, Jennifer? Jennifer Hulbert: Ooh 25 years? Yeah, 25 years. Jimmy Lea: So you started sweeping floors when you were, like, five, six years old then? Jennifer Hulbert: Yeah, you could say that. I started filing probably when I was in my teens, but officially joined the business in 2001 when we moved to our new building and started as service advising, accounting, marketing, and then now do it all. Jimmy Lea: Yeah. No, a- and you've had a long journey with the institute as well, joining as part of the GEAR Performance groups, and then moved into being an industry coach. Jennifer Hulbert: I did. Jimmy Lea: What did that... What's that short story look like for you? Jennifer Hulbert: Yeah. I was a group member in group two for about 19 years prior to the opportunity to become a facilitator with the institute. That was four years ago, and just was recently asked and accepted the director of programs position, so I'll be overseeing all of our coaching programs with our owners coaches, our service advisors, and our managers. So just in the infancy of that position right now, and we've got lots of good work to do and lots of exciting things to bring to the industry that I'm super excited to be part of. So yeah, it's been a journey. I, and I know all the things, all the positions, so as, first time coming to a meeting to being an integral part of a group process and looking at elevating our own internal groups and the members that we were talking to, including myself. So yeah, it's been quite the journey. Jimmy Lea: Oh, I love it. I love it. And here comes a shout-out from Downshift with Tanika. "That's my coach, Jennifer." She is. Thank you, T- Jennifer Hulbert: But love Tanika ... Jimmy Lea: Tanika's with Brown's Automotive out of- Yeah ... North Carolina. Yeah. Chapel Hill. David Boy's also saying, "Hey. Yay, Jennifer." And David, are you joining from Minnesota today? Minneapolis? Are you joining from Florida today? Where is home? Where are your feet planted today? Jennifer Hulbert: He's all over the place. Jimmy Lea: Yeah. No, that's awesome. That's awesome. Th- thank you for being a coach. Thank you for being in the industry. You are an inspiration f- to many. You have influenced many, and one of those people you have influenced is Andy Severin with Andrew's Auto. Andy, how the heck are you, brother? Andy Severein: Doing wonderful, Jimmy. Good to be here. Jimmy Lea: Good. Bro, you gotta sit up or something. You look... I got out... We Andy Severein: all these people back. Jimmy Lea: There we Jennifer Hulbert: go Jimmy Lea: I'm so excited to talk to you about this conversation a- as we talk about you and your shop and your business. How long have you been in the business, Andy? What does that look like for you? Andy Severein: I started in this business when I was in high school. I swept floors in a shop when I was 14, 15 years old, and got a job working there right out of... I went to Vo-Tech when I was a senior in high school and and their work work experience program puts you out in a shop halfway through senior year. So I started working there yeah, when I was 17, 18 years old, and was in that shop for, probably till I was about 25, I believe. Wow. Left the industry for a little bit, did some different things with trucks, and was learned a lot about life skills and running a business by owning big trucks. That teaches you a lot quickly. And when I got out of that, I got into the used car side of the business in inventory management, which I had my fingers in the repair side of our inventory. I was... I'd say I was a part of this industry at that part p- that point, that time, that 10 years of my life, but in a little different aspect. Yeah, most of my life I've had my hands getting dirty somewhere. Jimmy Lea: Oh, I love it. I love it. Isn't it funny we all start by sweeping floors? Yep. We got a shout-out coming in from David Boyd. Y- you need... You're sitting low for a tall guy. Reach up there, grab your camera, p- point it down just a little bit 'cause it looks like you're sitting on the floor. Andy Severein: It's down as far as it can go. I'm sorry. Jimmy Lea: Oh, really? That's funny. All right, Da- David, you just gotta get over it, man. Don't worry about it. Hey, so you got out, you went into trucking, you came back into into a shop. Did you go directly into owning another shop, or did you get back into turning a wrench first? Andy Severein: I went into the dealership world and- Yeah ... and purchasing and inventory management. The shop that we 10 years ago we started Andrew's Auto. There was a shop that had been in business for 50 years. It's I could see it from my house. We were that close, and it was a mess. Oh, I bet. I knew the owner. I had a relationship with the owner for years, and I planted that seed at one point. If you're, when you're interested in, in, in getting out that I'd be interested in talking. And I at that point, I don't know if my interest more was in cleaning the property up because I could see it from my house and it's that bad- ... or actually being in the auto repair business. But really my experience, the relationships I had had people coming to me constantly with advice, and had people- Yeah coming to me with looking at... They were looking for advice on their cars, and they were sharing experiences with me, experiences that they had at shops. A lot of them bad experiences. So it really it really it really Made me realize that there was a need in our area for a good, honest repair shop. Yeah. So that was my drive behind it, not having any idea what I was getting into at that point. I just knew how to work on cars. That w- that was really it. But thankfully through my life I've worked for some really good people, and looking back through, all the way back to when I was sweeping floors, what I learned from each one of those employers and even my years in, in being in trucking, what I've learned from each thing really prepared me for where I am today. Jimmy Lea: Oh, Jennifer Hulbert: yeah. For Jimmy Lea: sure. Jennifer Hulbert: In a previous conversation, Andy, you said you- you've always put yourself in front of the right people. Andy Severein: Yeah. Jennifer Hulbert: And I think right from an early age, that was just inherent in your personality to put you- ... in the right place at the right time, in front of the right person, to give you some of these opportunities. Andy Severein: Yep. Yep. Jimmy Lea: Oh, I love that you're learning along the way. At what point as the business grew, at what point did you realize that your role had to change from being involved in everything to truly being leading the business? Andy Severein: Definitely the institute had a, big part in that. I- Yeah. Jimmy Lea: Jennifer, why are you laughing? Jennifer Hulbert: Because we've had this conversation multiple times. Andy Severein: Yes, we have. Yes, we have. So we, I worked from, it was right in December of 2016 is when we started and things went well. We were busy from day one. We grew, we added people constantly. We did our first major addition renovation to our building in the end of 2019. The the, things were going very well, but there was just so many things I didn't know. And when I I was at the Napa Expo in 2022 in Vegas and and was in one of Cecil's classes, and it just it made me realize there was just a lot that I didn't know, and things I needed to know. And w- what he said really resonated with where we were at that point in time. I had no idea. Like I said, I knew how to fix cars. I didn't know what an average repair order was. We were using Mitchell at that point, and I really paid no attention to the reports. I didn't even know what that stuff was, right? We were just using Mitchell so we had a platform to give people invoices. So it taught me right away some of the, key indicators to, to look at, and I thought, "Whoa. We have a long way to go here." Jimmy Lea: Wow, and by that time you had already been six years in the business. Andy Severein: Yeah. Yeah. Jimmy Lea: And- Yep wow, there comes an eye-opening experience. Interesting. That's awesome. What, what- So from that point, you decided, "Oh my gosh, we've gotta change, we've gotta grow, we've gotta develop." What, at what point did you decide, "Hey, you know what? I need to really look at this coaching and training business. I really need to hire me a coach." What did that look like for you? Andy Severein: What drove that and what's still driving me today, I know I'm getting into the future there, but this business, I started it with my son on day one, and the intention of him taking this business over, I hadn't really put a timeframe on when that would happen, but it I think I realized that I need to make this a well-functioning successful business before I hand it over to him. So that, that was really what, resonated to me at that point. "Hey, we have a long way to go." So that that was, why we made some significant changes there right away and adapting to those changes is hard. I tell people that all the time. Being told, "Hey, your ARO should be this," and you think, "Oh my goodness, how are we ever gonna get from $350 to..." I believe our first goal was $550- ... if I'm not mistaken. And, we were inching- And I- ... inching to 500 and all of a sudden it was like maybe we ought to look at things a little different." Now at 600, I'm thinking, "Oh, my goodness." Jennifer Hulbert: I can remember one of those early conversations of, Jen, everyone's talking about this 850, $900 average repair order but you don't understand, my, my customers are different." Andy Severein: "My Jennifer Hulbert: customers aren't going to accept that because I live in an area of the country where we're completely different." And it wasn't until we started to break it down and Andy, you took a really a hard look at understanding the KPIs. We had a lot of discussions on what they meant, what the formulas were, how they're impacted, and that I think opened your eyes to say, "Okay we can do this with a better and a more thorough DVI, and some sales training for our advisors, and a different marketing strategy and conversations with our customers." So I, I was joking with Jimmy before we started this that's typically the first conversation that we as coaches get is, "Oh, wait a minute, you don't understand, my customers are different." And what we've found is what most people realize is no, they're not. They're, they're- ... Jennifer Hulbert: They will respond to the presentations and the information that you're going to give them. And I have some statistics in front of me. In 2022, your average repair order was $367. End of last year it's 732, and I think this year we're knocking the $800 range. So again- ... with some systems, process changes, ideology changes, training, this is exactly what's possible. Andy Severein: Yep. Jimmy Lea: Absolutely. So I have a coaching question for you, Jennifer. How often- are shops coming to you as a coach or you as a facilitator and singing the exact same song that Andy was singing? Jennifer Hulbert: Often. I would say probably 90% of the time. Jimmy Lea: Yeah. Jennifer Hulbert: And it's because we're fed, there, there's a lot of noise out there. There, there's a ton of noise of what the industry should be. There, there's news articles there's all kinds of news report of what our industry's reputation is, and it's not positive. So we look at this differently. We wanna educate our customers on what's best for you and your vehicle. Nowhere in our sales process that we teach at the institute or that we coach is a hard sales process. We're gonna look at your situation, your vehicle. We're gonna be open and honest about everything that we see, and then work a plan that's gonna work for you. Andy Severein: I Jennifer Hulbert: love that. So when you address it with honesty and true humility, it, it becomes a different conversation than one of a hard press sales, and I'm gonna sell you services that you don't need. It... That, that's not what we do. That's not the integrity of the institute, that's not the integrity of the coaches, and that's not the integrity of the shops that we work with. So a lot of times it's you don't know what you don't know. True. So you don't understand the power of a DVI process. You don't understand the power of an actual structured sales process. And that's exactly what Andy started to realize, and then really took a deep dive in, is, "Okay, I see things differently now, and I can see where we're benefiting our customers from doing this." "So I'm gonna put all the effort into training staff and making sure that we're starting to work towards those different key performance indicators." Jimmy Lea: Yeah. Andy, did you feel called out, just Tanika? She's wondering if this is a setup. She feels like she's being called out right now. Did you feel like you were being called out, Andy? Andy Severein: No. I would say not. No? No Jimmy Lea: When you were first starting, you didn't feel like you were being called out, you didn't feel like you were being spotlighted. And you know what? Now let me tell c- build up a little bit more, clarify a little bit more. I enjoy the process that we have at the institute where we're here to meet you where you are as a business and as a shop owner- Yeah and we're going to start from there. What does it take to run your business? What kind of business do you want to have? 100%. Now- Okay. If that's- Yeah, I do ... the kind of business you wanna have, these are the steps we need to take to get to that business that you wanna run. As opposed to a rubber stamp that says, "Follow this process, procedure, and you'll be successful." Okay you don't understand my clients or my customers Jennifer's laughing 'cause yeah we're gonna meet you where you are. What, how do you wanna run your business? What do you, what does success look like for you? 'Cause Andy, your definition of success might be different than Jennifer's, might be different than mine Andy Severein: Sorry, I dropped out with just a moment there. It was just about a five-second window where I had s- Jimmy Lea: For just the most important Andy Severein: point ... in the meat of that, I lost you. Jennifer Hulbert: He- he was saying what success is to you is not the success to someone else. And I'll use something that's very important to you, and that is compensating your staff very well with your profit sharing plan- and your community involvement and sponsorships. So Andy and I have had the conversation of the effects of that on his, to overall net profit- ... but that's his why. He wants to give the best financial outcome to all of his staff based on their efforts towards their success with a profit sharing plan. And then be a very good leader financially in the community to, to support those organizations that are supporting him. And that's much different than my why, and that's gonna be much different than Tanika's why as well. So we've looked at what's important to you in creating that profitability level so you can carry out that why. Andy Severein: Yeah. Absolutely. That why is something that we've figured out over time. We didn't realize going into it what our true why was. I just wanted to build a race car. I thought, "Hey, I have a shop. I can deduct all these parts and, it'll be great." And it took a few years of doing this until we figured out what our true why is, why we're here, and it's awesome. I love that. I'll back up just a minute, though, Jimmy, to your question, if I felt called out, and maybe I misunderstood what you were saying, but I'd probably share with the people that are listening that are thinking about coaching no. I went in there new to everything that was happening, and I never felt called out, put on the spot "Look at this guy." The group has been awesome from the first time I was there with helping me to feel comfortable and share their, their struggles and successes. I never felt called out in a way that I was uncomfortable. And I'm not sure if that's what you meant, but hindsight, that's what I was thinking. Jimmy Lea: Yeah. No. That's exactly it. You weren't called out in an embarrassment point of view, but you were- No ... enlightened into, "Oh, wow, these are some things that I can do. These are the steps I can take and need to take so I can run the business the way I want to." I love that. That's awesome. Now, question for you here about pricing and parts and parts GP and labor rates. This can be very emotional for shop owners. This is an emotional subject. What helped you move from being emotional about these topics and these subjects to becoming more logical in those areas? Jennifer Hulbert: Besides peer pressure. Jimmy Lea: Peer pressure is positive. It can be. Andy Severein: Definitely that emotional attachment that, that, as shop owners you have that. When you're working in the shop, you're, you're turning the wrenches you're hands-on with the vehicles, you're talking to the people at the customer. You're talking to the customers at the counter, and there's people you've known forever, and you know their, their families and their financial situations. There's a huge emotional attachment to that, and it's not bad. Yeah. But it definitely it, it definitely is a hindrance to the growth and success of a business, and I... It took me a while to, to learn and understand that. And it's still why I stay away from the the counter, and the, the service advisor role is so important, and I realize that. I'm so blessed to have the people we have now that are really good at what they do, and they get it. They understand. They're coaching with the APT programs, and I keep putting plugs in for you, but it's been very powerful for us. But overall the growth of the business is dependent on that, so we... I've learned to just stay away Jimmy Lea: Oh, I love it. Andy Severein: I, of course. Jimmy Lea: You know your strengths and your weaknesses. Go ahead, Jennifer. Andy Severein: Yeah. Jennifer Hulbert: I think you also had an understanding of the overall effect o- of what a labor rate increase will do. So that impacts labor gross profit, which impacts your total GP, which impacts your overall net profit. So- ... when we first started to talk about what is your why, and that you wanted it to input this profit sharing and your community involvement we need- those net profit dollars to be able to do that. And we get those through parts and labor GP. So no, it's not just a 10 or a 15% or 10 or $15 labor rate increase, it's going to overall impact that labor GP, which will help the net profit, which is gonna allow you to do what you want to do. Andy Severein: Absolutely. Yeah, that's so true. Absolutely. Yeah, being in the upstairs your knowledge teaching me initially how to read my P&L. I'd never looked at a P&L. When I started to enroll, I didn't even know how much money we had in the bank. I didn't care. Yeah. Bills were being paid, it was great. But now the composite reporting, which was really hard for me, and you remember that, it was super hard for me in the beginning. And now I'm I'm not gonna say I enjoy doing it, but I see the I see the... I do enjoy doing it. I enjoy the results of it. But the the understanding of how we're getting to net profit and why that net profit is so expensive is so important, Yeah that- It's critical ... that's not being downstairs, but w- my offices are upstairs staying up there and keeping an eye on that is is, it's been my the key to, to, to the growth here. Absolutely. Yeah. Jimmy Lea: And let's break this down for those that are watching that don't understand what a P&L is. They hear the word all the time. They hear P&L. This is your profit and loss, pro- P&L, profit and loss. Most shop owners will look at their P&L, they really don't understand it. They're looking for that last number. Is it red or is it black? If it's black we know we're good, we know we're making money. If it's red We're losing money, and that's what the understanding of most shop owners are. At the institute, we also have a financial intensive that helps you as a shop owner to understand how to read the entire P&L, how to get it set up properly with your accountant so that you are getting the right and correct information when you need it most. And a P&L should not take months and months for your accountant to put together and g- and- No ... deliver to you. W- what's the average? How long should it take, Jennifer? Jennifer Hulbert: To, for, to start to make changes? Jimmy Lea: Oh, no. J- In order- Hey, Mr. Accountant or Mrs. Accountant, I would like my P&L. Jennifer Hulbert: You should get that once a month. M- minimally, I would say, our require- our reporting requirement is by the 20th of the month. So you should be getting that by the 15th or the 18th from, for the previous month from your- ... accountant or your bookkeeper. Jimmy Lea: So if you're only getting a P&L once a year, you may wanna either ask for more and get a better understanding, or m- perhaps you need a different- accountant. So if you need a different accountant, we know a guy. Come talk to us. We know a guy. Jennifer Hulbert: We do. Yeah. We do. A- Yeah ... and it, knowing where you're at from a profitability standpoint tells a tenth of the story. So where do we need to put our focus? Yeah. Is it in gross profits for parts? Is it in gross profit for labor? Is it in expense control? Because, so many times- ... we have a lot of members who have really good gross profit percentages, but they're not controlling their expenses and they eat away, their profitability that way. Yeah. We break down our expenses into, what, 30 categories probably, 35 categories individually, and have benchmarks for individual expenses. So th- that's what our owner coaching and our group process does, is we- ... we focus on not only systems and processes within your shop, but the understanding of your financials, so you know- ... which specific areas to target and to make some improvements on. Andy Severein: Yeah. Jennifer Hulbert: And Andy, that's where I credit you because th- we had some, many meetings where he's "Jen, make me understand this. I really need to understand how all this works together," and we probably worked for six months- ... u- until you had that understanding and now you do, and, your profitability is, has increased ex- ... quite a Andy Severein: bit. Jimmy Lea: That's awesome. Yeah, and I think there's a lot of shop owners that are out there that are just like you, Andy, that are in that same position that says, "I don't know what I don't know, and this is definitely one area that I need to know more. Help me understand it." And you dig into it, and you dig into it, and you dig into it and the more you learn, the better you are. Our last financial intensive, I think we had 40 plus people here at, in Ogden at the financial intensive. So next April, if you're wanting to understand your income statement and your profit and loss and your balance sheet, come here to the institute. We've got a phenomenal program for you. You definitely want it. Whoa, that was cool. Now, oh, Raleigh. Props, dude. That was your dr- that was mic drop. Scan the QR code. Get in on our next financial intensive. Yes, that is going to be awesome. We'd love to have you here, y- and you will learn tremendous amount. I want to go back to another acronym you dropped out on, on everybody here. You mentioned the APG. N- our industry is full of acronyms. APG stands for the Advisor Performance Group, and that's with the institute. So Andy, you have your advisors in the program right now? Andy Severein: We do. Jimmy Lea: What have you seen with your advisors? What's the change that they've gone through? Andy Severein: Probably the biggest thing I've ... The biggest thing I appreciate that I that I'm getting directly is, their understanding of the numbers that they're achieving and ... But also, the way the program's put together, allowing them to see the big picture of what the business looks like, what it should look like, what it could look like, whatever your circumstance is. But doing that from a different perspective than myself talking to them, I think allows them to grow. And it's one thing for me, for an owner, for somebody to say something to somebody, but when they're hearing from an actual coach, it's like, "Hey, that guy's not just full of hot air. He knows what he's talking about." Now that's been powerful, but aligning all of our people, Yeah ... through those different programs has been really powerful for us. And that growth that we've really seen in the last, what, year or so I can directly attribute to, and I'll drop another acronym, the MPG program, as well as the APG program. Jimmy Lea: So what's the MPG? Andy Severein: The Manager Performance Group. Yep. We have two managers here now, Nate and Brian. My son, Nate, one of them. They just got back from Utah. We've been so busy, we haven't ... We've done some quick debriefs, but we haven't had time to really sit down and put everything together that that I brought back from the group five meeting last week, or the week before last, and then they came back from Utah with their normal plane delays. ... Oh, no. Jennifer Hulbert: Dang. Andy Severein: But they made it. Jennifer Hulbert: And let's talk about what that growth looks like. So in 2023, you ended the year at 2.1 million. 2025, you ended a million dollars up at 3.1. And you- you've entered the managers and the advisors into the program along with working in the owners of- Yep your performance group program. But like you said, you've aligned your entire staff in the direction that you want to take it- ... with training and opportunities and information of to align to that direction. So just you talking to your staff and coming back from one of the GPG meetings, Gear Performance Group meetings- A- and it's like them trying to absorb what your understanding of the training is- Versus now I'm getting it from a coach who is aligned with that ideology, and now we're gonna move everyone in the same direction. So I think for you, Andy, that's been the biggest change. Now, has it cost you some money? Yes. Coaching is not free. Sometimes, people say, "I want cheap coaching." You get what you pay for. That's what you get. And you're gonna get the results that you pay for. A 30%, 32% increase in two years in sales is the... you could attribute that directly to the coaching. And again I know this sounds like a sales presentation for the institute. It, it's not meant to be that way. I just know that Andy and I have had these discussions over the past three years of how, what can I do to improve? And because- ... you have dedicated the time and the energy to some coaching programs, you've got some very good results. Now, you've set some of that standard. I expect X out of you, service advisor, from a gross profit and an average repair order- ... and an effective labor rate standpoint 'cause you've held those standards high- ... and communicated those expectations, which is also very important for results. But y- you've done a very good job at communicating what the expectation is, and then your team has followed up with those results. Andy Severein: Yeah. Yeah. Jimmy Lea: I love it. Y- there's, the saying is you were talking about the expense of training. Training is so expensive. What what if I train my guys and they leave? What if you don't train them and they stay? Andy Severein: Yeah. Yeah. Jimmy Lea: Andy, have you ever had a situation where you've trained someone and they left? Andy Severein: I have not. We have very little turnover So that's Jimmy Lea: the benefit of training today, is your people will stay. Andy Severein: Yeah. Oh, yeah. Absolutely. No, we have very little turnover of people. In fact, I think there was only one advisor I had that was, he was here for a short period of time and he had come from managing an entire operation and had another opportunity to go back to what he had been doing. So I don't fault him at all. So he's the only person that I had in training and I hope that the things that he learned, he can take into his future. So- Jimmy Lea: Yeah ... Andy Severein: great guy. Yeah. He's a great guy. Oh, Jimmy Lea: I Jennifer Hulbert: totally agree. And let's talk about why your staff stays. What makes you different from some other shops that have some high turnover? And, and- Yeah ... we've talked about this. Andy Severein: Yeah. Jimmy Lea: Well- What are you Andy Severein: doing, Andy? Jimmy Lea: Is it pizza on Friday? Andy Severein: Wednesdays. Wednesdays. And we try not to do pizza too much. That really gets old, right? We have a big old grill here. I like to make food and do different things. But we really try to take care of our people in many different ways, not just, in their, problems that are going on in their life. We try to speak into their lives as, as much as we can and just be there for them. And, they're our family. We s- we spend more time with the people that work for us than anybody else. I'm careful who I allow into that family. And I feel we've done very well. In fact, we had somebody start here just recently, and his comments are just like every person I've heard in the past. Everybody here just gets along. Everybody helps each other. It's it's, it makes me... i'm really happy of that, and I'm really happy about that, because that's what I want. I wanna treat our guys really well. I want them to be excited about what they do, try to keep them motivated and and try to... My goal has always been to try to have a place that the word on the street is, "Hey, you wanna work for this guy, because they'll really take care of you in every way, not just pay." So it's extending a lot of grace regularly, that's that's part of it. Managing that grace can be tough. But but we... it's a blessing overall. It really is. We have a great staff of people here. Jimmy Lea: Oh, I love it. I love it. And what those people are talking about is the company culture, the culture that you have created in your company. They're j- it's, they're just so impressed by it, that this is a great company culture. So I... That doesn't happen by accident What are you doing today as a leader that is different than what you were doing three years ago, four years ago, five years ago? What are you doing different Andy Severein: I can't- honestly don't know if I'm really doing anything different. I hope I'm not, actually. I've always tried to connect with everybody regularly and just, listen to their needs and keep an open atmosphere that they can come to us with whatever's going on, if it's a problem at home or just, bumped into another car in the parking lot, don't be afraid to come to us with anything. And I... so to answer that, yeah, I don't feel like I'm doing anything really differently. I have the help of my wife now. She's a huge part of it. She was here in the beginning for the first five years, and she was working the front desk and it wasn't quite five years. It might've been three or four years and she just couldn't do it anymore. It was way over her head. She's a people person. And she had an opportunity to go work in a restaurant for some friends, which she took, and that opened the door for my, my, my front desk guy, Jimmy, to come in here. Jimmy's just an awesome person. He's just a light. He's always smiling. He's a lot like you, Jimmy. He- Jimmy Lea: It goes with the name. That's, Andy Severein: that's- You're both Jimmy. But yeah, Lori came back here in the beginning of '24, I believe. Nice. And she's been here a little over two years now. I convinced her that her skills, while she was much appreciated at the restaurant, the effort that she was putting in there would be would be very beneficial to us and our staff as we grow here. So she is a huge part of it. Plays Jimmy Lea: defense. Yeah. Jennifer, what are you seeing that Andy does different today? And by the way, Andy, you're constantly improving, so to say you're not doing anything different, it's not exactly true, because that constant improvement- ... is changing and you are becoming better. Andy Severein: True. Jimmy Lea: That's true. So as Coach, what are you seeing different that Andy does today that he didn't do when you first met? Jennifer Hulbert: I would agree with him. I think, hi- his heart i- is in the right place in wanting to do- Totally agree ... what's best for his staff. So that's just who, Andy, you are. I think today you're a little more intentional with that I- in some of the conversations and, interactions with the staff from discussions that we've had. I'll give you a recent example that they've just acquired their second shop months ago. Andy Severein: A couple weeks, three, four weeks ago. Yeah, beginning of May we started. Yep. Jennifer Hulbert: And the advisor there, they're looking to, w- we're gonna look to bring her to the service advisor intensive that's happening right now. She's never- Yeah ... flown before, so Lori says I'll go with you." I will join you on the plane. I will go to Utah with you. I will, get you all set up, make sure that you're completely just at peace with this. But that's who Andy and Lori are. So to say- Love it ... that they've done a lot different I would agree with you, Andy. I don't think you have. I just think you're a little more intentional- Yeah ... w- with it today than you may were three or four years ago. Jimmy Lea: Yeah. Andy Severein: Yeah. More clarity. Jimmy Lea: See, Andy Severein: and Jimmy Lea: That's to the core of who you are. That's to your heart. Your heart has always been in that right place. And that constant improvement are things that you're doing, the things that happen, you don't, probably don't see that you're doing it. But a coach, someone on the outside looking in would say, "You know what, Andy? You are becoming much more intentional. You are having these great conversations. Your heart has always been there," and it's something that you don't see because it's second nature to you, Andy. But a coach is gonna go, "Hey, you know what? This is unique. This is s- this is special. This is awesome that you do this." That's pretty cool. Andy Severein: Yeah. Jimmy Lea: That's pretty good. So what is the future? You just added a second shop. Does that mean that there's a third one, or is it too soon to ask? Andy Severein: I've planted the seeds for the third one. I did that a while ago. That might have been the second one, but this one just kinda flew in there quickly. But it's in a neighboring shop. I can see it. It's just one, two- Two buildings over? ... two buildings away. So they were our closest- Wow ... competition. Jimmy Lea: Wow. Andy Severein: Interesting. So we had the opportunity to buy that. The owner was was wanting to retire, and hap- wanted to make it happen quickly, so he we were able to work a deal out there. I acquired all of his employees and and, it's been a, it's been really good so far. We- I'm really excited about where that is and I've said this to Jennifer to take a business that has not been run well for years and apply, what we've learned we- we've learned and applied it here slowly to try to apply it to a business like that is, it's a pretty exciting challenge. And, seeing that ARO, it was 200-some dollars when we started it and I think we're substantially over that. We haven't advertised it yet. The building needs a lot of work, and we- we're looking forward to doing that work over the coming weeks and months. So we're really excited of what the possibilities are there. We really just needed some overflow, honestly. We're almost at capacity here where we are, and having a little bit of of option for more base space to send some work over there, customers we can't help in our time, in their timeframe with our busy schedule to be able to capture them is high on my priority list of what to do, love it. Always kinda looking for ways to, looking ahead to, what is our next, next, way to grow. To have... If there's more shops I don't know if that's- If that happens, fine. I'm, I've no problem with that. I'm not focused on that. I wanna... I still see a tremendous amount of improvement we could do where we are, and we'll try to, we'll try to continue to focus on that. But our pattern's been about every three years we do, what's the next step? 2023 we did a pretty large addition to be able to handle heavier pickup trucks and the dually trucks, construction pickup trucks. We were doing a lot of that stuff, so we put an addition on there. So here we are three years later, buying another shop. That's our that's- this is the next step and, what's the next in three more years? That's been our pattern. We've got some ideas, Jimmy Lea: Oh, I love it. It- What's gonna come in 2029? That's, you Andy Severein: got to be sweating. Jimmy Lea: Exactly. Andy Severein: Exactly. Oh, that's awesome. Got some pre- got some pretty cool ideas. We'll keep focused keep focused on what could happen there and work towards that goal. Jimmy Lea: Yeah, for sure. I- is it too soon, or can I ask this? You only bought this other shop at the beginning of May, so we're looking at six, seven weeks, eight weeks now that you've- owned the s- the second shop. $200 average repair order. Where are you now? In a very short time period, has it increased significantly, or are you still hovering in that 2 to $300 range? Andy Severein: No it's climbed. I think we're in the $400 range right now. I'm sorry, I haven't looked at that lately. I just realized- Yeah ... as you're asking me that question. So we've about- Yeah ... doubled that. Jimmy Lea: Doubled it in less than six weeks. Andy Severein: Yeah. Jimmy Lea: Implementing proper process, procedures. You intro- did you introduce a DVI program to them? Andy Severein: We did. Yep, introduced that. So that's been good. That's a... W- we're trying to... We have-- There's so many customers there that were the customers that that you don't want, that, we're trying to get rid of 'em. They, you tell 'em what their car needs, they take it home and fix it, and then bring it back and get an inspection sticker. We have state inspection here in Pennsylvania, an annual inspection, so that's a huge part of what we do and so yeah, that's been... working those customers out of our system is the goal here. Make way for good customers. And we've really seen a, an upturn just in the last few weeks of busyness. So it's it's exciting. Jimmy Lea: Oh, that is exciting. That's awesome. Congratulations. So a- as we, we look in towards the future here what leadership skills are you working on today To help you strengthen yourself, strengthen the business as you continue to grow, what are you working on yourself or the business in your leadership realm? Andy Severein: Oh, goodness. I'd love to say that I read a book a week or even a book a month, but that doesn't happen. I, and I could I, probably said it to Jennifer and I'll say it again. What we're doing in the GPG groups right now is so good. What we just did in the group five meeting in Indiana the other week our two main presentations are things that are so relevant to me right now, and that's, defining where in the business, where we need to be and what those roles are, and focusing on those things. That's, it, we're... i, it's funny I still struggle with basic things sometimes it feels even what my roles need to be, but that clarity is huge to me, and we're really, as a, we as our mana- myself and the managers really, working on that stuff. But, I'm, I personally, a- and I'll radiate where I started in, in this business, my goal almost from the start was to work my way out of this and create an opportunity for my son to move into which will probably at this point looks like it'll be my son and Brian together, the two managers. And presenting opportunities for them is exciting to me. They're both going to the to Michael Smith to the leadership- Leadership intensive ... in Washington, DC. Oh, yeah. There's another plug. You'll see the thing come across the bottom of the screen right now. Yeah. But Jimmy Lea: it's not- Leadership intensive in July in Washington, DC. Is that the one? That, oh! There it is. Look at that. There Andy Severein: it is. Oh, Mike Johnson. Jimmy Lea: There it is. Yeah, Raleigh, way to go, brother. He gave me a thumbs up. Andy Severein: But I did that course two years ago, I think it was in Ogden, and I really feel like I could do it again 'cause I'm at a I'm... I've learned so much in two years, but I'm really happy to be able to give those guys the opportunity to do that, to let them grow. Because I look at this now as "Hey this is gonna be for you to run." Yeah. And I want them to outperform anything I've ever done. I just wanna set the stage for them to be able to hit the ground running. Jimmy Lea: Yeah. And attending another leadership intensive, you're gonna learn even more because you've had two- Andy Severein: Yeah Jimmy Lea: years of runway under your belt that you have learned and developed and grown. Now when you attend it again, you have such a solid foundation. Now you're ready to build that building. You're ready to build upon what you've already learnt, implemented, discovered, rewrote as your truth tapes. You know what those next steps are gonna be, and y- you'll go to leadership intensive. You, your brain will still melt, we'll still have to pour it back in your head because of the learning that will happen And now the development and growth you'll have for the next year as well will be just tremendous. So Andy- ... Jimmy Lea: Get to the DC, get to the leadership intensive. You need to be there Andy Severein: I'll consider that. Jimmy Lea: That's a good idea. Yeah, take that into consideration. Anybody that's watching this as well, and you see it go back to that QR code, get into that Leadership Intensive. It really will change... thank you. It really will change the way you think about yourself, about your business, about your life- Yeah about why you think the way you think, and then you can help to discover why other people think the way that they think. Andy Severein: Absolutely. Jimmy Lea: Oh, so powerful. So powerful. Jennifer Hulbert: And one, one of the things that I really wanna point out to the listeners is, typically when we have a new client coming into our individual coaching program is they see people like Andy, and they're intimidated. But hearing Andy's story, that he started off, fixing cars in a very small shop himself, building it to now a multi-shop owner, not having to be an integral part of the day-to-day of the business because he has put people in the right seats, grown the business to a level that you can have a mid-tier manager- it's totally doable. Now, does it require blood, sweat, and tears? Absolutely. I own a shop. I was a service advisor for two years full time. You don't get to this point without going through some of those steps, but it is doable. A- and- Yeah ... sitting saying I only have 500 or $600,000 in sales this year," that, that was Andy at one Andy Severein: point. Jennifer Hulbert: And, now we're in a completely different scenario because of the changes and the improvements and the attention you've put to these improvements and your leadership style. So I, I get a lot of new members and I was actually at a group two member, or group two meeting a couple weeks ago, and then had a meeting with a member, and, she said, "Jen, you don't understand what we come back to because you have two managers in your shop." And I said, "Hold on a minute. I was you 15 years ago." So i- it does take time, and it does take attention but it is totally doable, and we can take you from opening your own shop, I have two members who had, have started to work with us prior to even purchasing their shop, to now owning their shop, to becoming a multi-shop owner. So the, all of those steps and processes we have the ability and the knowledge and the training and coaching to fill all of those steps, but it is a process. Yeah. You're not gonna go, from Andy opening your shop to $3.1 million being pretty much a hands-off owner in two years. It- ... had taken 10 or 14 to do Jimmy Lea: that. Yeah. Oh, yeah. You... If you keep doing what you've always done, you're gonna keep getting what you've always got. You- Yep ... you've gotta do something to change. And so Jennifer, to this specific scenario, a shop owner that you would have worked with that they went from a bucket and a wrench and a computer to multi shop owner what did their timeline look like? So maybe others who are listening can go, "Oh you know what? In six years, I'm gonna be six years older. I'm either gonna be still with a bucket and a wrench, or I can invest in myself and improve." What's that look like? So Jennifer Hulbert: the timeframe differs be- because of this. So it's your ideology, it's your mentality, it's where do you want to go and how are you going to take the steps to get there? We can give you the information. Again, one of the reasons I've suggested Andy being on this podcast is because he's done a lot with the information to get to where he is today. So if you enact it if you take it home and you actually implement some of the things that we talk about, you're gonna move much faster than someone who is, "You don't understand, my customers are different." Jimmy Lea: Yeah. Jennifer Hulbert: Two, two totally different types of shop owners. That's true. So I would say the timeframe is different for everyone, but five, six years to go from small to large, Maybe Yeah ... if I had to put a timeframe on it. Jimmy Lea: And I think you hit on the two elements that must be implemented in every situation. You talked about the attention. You've gotta give it attention. You've gotta give it the attention it needs because it doesn't happen by accident. It needs to be it needs your attention. And the second one is that you have to be intentional- Yes ... about what you're doing. Yes. If you don't know what you're doing, you could wander in the forest and be walking in circles because you don't have that compass. Compasses were created before time, before clocks. Why? Because we needed to know where we were going. So compasses are more important. You need a coach, you need a direction, you need some help to make sure you make- Jennifer Hulbert: And some accountability. That, that's what the premise of our whole GPG program is. Is it's not only the facilitator and the coach holding you accountable, you're being held accountable by a group of your peers. Jimmy Lea: Yes. Jennifer Hulbert: Yeah. Jimmy Lea: Yes. So if you're listening to this and you are the shop that's at that 500,000 or 600,000, let's start that journey together. We can do this. We can do it together and make it happen for you that in four, three, four, five, six years you're having the same conversation with somebody else who's doing a podcast to talk about your success story, and it's gonna be similar to what Andy has. Andy, final question from me and then Jennifer, a question from you for Andy if you want to pipe in here. And in fact, I might have two. My first question is gonna say what advice would you give another shop owner who is thinking that there's gotta be a next level? Andy Severein: There absolutely is, and I can say from experience to figure out what that level or what your goal is, what do you want to achieve and how can you achieve that? It, it-- That's true to anything in life, but it's having the understanding or the understanding of what tools you can use to, to get yourself to that point. Once again, in my case, it was I wanna work my way out of a job, what does that look like? And but certainly doable, with some input, some coach. People, most shop owners that I've found are pretty close-minded, don't wanna be told what to do. You know- ... they're doing it great, don't tell me. And that's why I was at an auction earlier today for a shop that closed down because, they just choose to just do the same thing they always did, and at the end of the day, they got nothing left. No business and just a bunch of tools to sell Jimmy Lea: Wow ... Andy Severein: doesn't have to be that way. Doesn't have Jennifer Hulbert: to be Andy Severein: that way at all. No way. Nope. Jimmy Lea: No. No. Yeah. They're getting pennies on the dollars for those tools and assets. Jennifer. Jennifer Hulbert: I don't think I have a question for you, Andy. I, and you're a pretty humble guy, and I want you to really hear this, so thank you for being an industry leader, and thank you for setting the tone and the example of what success can really look like. And, I hope you're an inspiration to those who are watching and listening to this because you've done exactly my why. My why is to help elevate individual shop owners, and because of your attention and intention to the information that we've been discussing you've climbed to that level. So I want you to really hear that you are an industry leader, and I thank you for being here, and thank you for being a part of the institute. Andy Severein: Yeah. Thank you. That means a lot to me. I certainly don't see myself that way. I I still hear Parker Branch telling me maybe two years ago, "With a few changes, you'll pass me." I'm like, "Yeah, whatever" Jennifer Hulbert: You're getting close Andy Severein: You are Jimmy Lea: getting close, yeah. Andy Severein: Yep. By the end of 2027 when shop number two kicks in, watch out, Parker. Jimmy Lea: You'll join him in that million dollar net club. Yeah. Andy Severein: That's the plan. Jimmy Lea: Yeah. That's the plan. Yep. Yep. All right. One final question coming from Tanika and then a final question from me. Did you get any pushback from your technicians, the technicians you acquired implementing a DVI program, changing their process, procedure, moving their cheese? Andy Severein: Honestly, if you're asking about the shop we just bought- No? ... not a whole lot because they knew that their leadership was terrible. They knew that there was better way to do things. They're a neighboring shop. They saw our parking lot full of cars all the time and their parking lot empty, right? So- Jimmy Lea: Ouch. Yeah ... Andy Severein: that was, for them to be shown How we do it. They understood right away that it worked. They knew that. So it's, it is it's been... Certainly has its challenges, but it hasn't been hard at all. Teaching them the processes has really been the hardest thing, but the understanding, the knowledge of it the knowledge of, the why we're doing it I don't wanna say it's one of the easier parts of taking over that business, but I think it has been. Jimmy Lea: It kinda sounds like it. It sounds like they were definitely primed and ready for you to step in there and take over. Andy Severein: They were all really hungry, yeah. They knew that our leadership was bad. I don't know why they didn't all quit and walk Jimmy Lea: out. Yeah. No, congrats, man. That's awesome. All right, last and final question. Years from now, years down the road, don't know what that number is w- what do you want people to say about your shop, about your team, and about the owner who built it all? Andy Severein: Boy, I, I hope it's, I hope it's what our goal's always been, and that's that we are just awesome people, trustworthy give back to the community, the same things we've always been. I I hope that can be our legacy here. Jimmy Lea: Yeah. For sure. I hope so as well 'cause you are awesome people. Andy Severein: Yeah. Thank you. Yes, Jimmy Lea: they are. Andy Severein: You guys are too, so that means a lot. Jimmy Lea: Thank you. Thank you very much. Thank you. Thank you for everybody who's listening. If any of this has sounded interesting or information that you wanna pursue even further, get out your cellphone 'cause as soon as we go to credits, there is a QR code. Let's meet. Let's talk. Let's sit down and review your business. What can we do to help you? Our goal, our core, is to help build a better business for you to... which results in a better life for you, which our intention is to build a better industry. So we are all about building a better business, a better life, and a better industry. With that, my name is Jimmy Lea. I'm with the Institute for Automotive Business Excellence, and thank you. Thank you, Jennifer. Thank you, Andy. Really appreciate you guys being here. Andy Severein: Yep. Thank you. Jennifer Hulbert: Thank you.

Don't get to the end of this year wishing you had taken action to change your business and your life.Click here to schedule a free discovery call for your business: https://geni.us/IFORABEDon't miss an upcoming event with The Institute: https://geni.us/InstituteEvents2026Shop-Ware gives you the tools to provide your shop with everything needed to become optimally profitable.Click here to schedule a free demo: https://info.shop-ware.com/profitabilityTransform your shop's marketing with the best in the automotive industry, Shop Marketing Pros!Get a free audit of your shop's current marketing by clicking here: https://geni.us/ShopMarketingProsShop owners, are you ready to simplify your business operations? Meet 360 Payments, your one-stop solution for effortless payment processing.Imagine this—no more juggling receipts, staplers, or endless paperwork. With 360 Payments, you get everything integrated into a single, sleek digital platform.Simplify payments. Streamline operations. Check out 360payments.com today!In this episode, Cecil Bullard and Wayne Marshall discuss the challenges facing the automotive industry today. They examine the complexities and controversies surrounding technician licensing and certification, highlighting the need for industry-wide standards. The conversation also addresses the importance of financial literacy and measurable productivity in running a successful shop.00:00 Debating dealership licensing issues10:17 Balancing employee pay and motivation13:05 Building Employee Loyalty18:33 Improving employee wages and management23:01 Business fundamentals and financial ratios29:03 Planning an Exit Strategy35:00 Chris Enright on industry frustration41:01 Need for sophisticated testing46:14 Importance of unique selling proposition51:13 Importance of inclusivity and differentiation54:12 Challenges with membership relevance01:03:44 Young talent and enthusiasm01:04:15 Recruiting a young car enthusiast

Episode one of Auto Shop Ministries introduces Devante Tidwell as chaplain and outlines a weekly, faith-based series for shop leaders. This episode focuses on how trust scales: being faithful in small tasks signals readiness for bigger responsibilities, the importance of strong processes alongside competence, and practical tools like journaling and consistent evaluation to make better hiring and promotion decisions. AutoshopAnswers.com Auto-Shop-Media.com

208 - A Technician Crisis or a Productivity Problem? Ask Me Anything with Cecil and David June 10, 2026 - 00:55:43 Show Summary: Cecil Bullard and David Roman discuss whether the industry's biggest challenge is finding technicians or improving productivity. They explore why shop owners often keep struggling employees too long and how clear expectations make difficult staffing decisions easier. The conversation highlights the importance of job descriptions accountability and documented processes. They also explain how poor structure lowers shop value and limits growth. The discussion closes with a look at pricing strategies and why shop owners must stop blaming rising costs instead of adjusting their margins. Host(s): David Roman, Shop Owner Done With Care Auto and Changing the Industry Podcast Cecil Bullard, Founder of The Institute Show Highlights: [00:01:03] – Letting the wrong employee stay hurts the whole team. [00:05:22] – Every employee impacts the success of many families. [00:08:15] – Winning requires the right people in every role. [00:12:14] – Hire carefully and accountability problems become less common. [00:17:10] – AI makes creating job descriptions easier than ever. [00:20:11] – Structured businesses hold greater value and survive longer. [00:24:03] – Poor productivity and margins cost owners millions. [00:30:32] – Employees need coaching before owners assume resistance. [00:37:46] – New habits require daily follow up and accountability. [00:47:13] – Rising costs require pricing changes not excuses. 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/Xrs_YGYDAic 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: A Technician Crisis or a Productivity Problem Ask Me Anything with Cecil and David Cecil Bullard: Welcome. My name is Cecil Bullard. Welcome to the Institute Ask Me Anything. Today you get to ask me and David Roman from Changing the Industry podcast, a f- good friend of mine. Hey, David. How are you today? David Roman: This is so professional. I'm not used to this. Cecil Bullard: Oh, come on now. Wait a minute, brother. David Roman: I do the production work on my podcast. Trust me, this is professional. I just slap the stuff up on the internet and say, "Go." Cecil Bullard: There you go. I don't know. I'm a nut, so I'm a- ... I'm a perfectionist and- Yeah ... in fact, my hair is bothering me, right? And David Roman: just cut it all off. Cecil Bullard: Yeah. You'll like it. Just cut it all off. What's what's cooking with you, brother? What's what do you got for us today? I know we got some people that will be asking questions and all of that. And David Roman: you- Yeah. I've got an interesting question I- I'd like your opinion on, and this is a discussion Lucas and I have had in the past. In our minds, you, as you start to scale, you become more disconnected with the business on a personal level, and it becomes a business. I've... and this is specifically with your staff, where when the shop is small and maybe there's three employees, maybe four employees, you're all friends. You kinda hang out, you have lunch together. It's a whole thing, right? But as you start to grow the business and you've gotta start letting people go, the weak links or people that are causing problem or people that have just run their course in the business and they can no longer keep up with what you're demanding or what you need for the business to continue to succeed, you have to start letting people go. And that has and this question came up in the, in, in our Facebook group, where the person was having trouble finding the mindset and the wherewithal to let the person go that needed to be let go. And he just, he's "Man I'm just too c- too connected to the person. I don't know what to do. How do you disconnect that?" And he just, he felt bad, and he knew that when the time came, he wasn't gonna be able to pull the trigger. And I see this Incredibly detrimental to businesses in general. You see too many businesses that you walk into and you immediately identify that person's gotta go. That person is causing all this trouble here. They are binding up production. They're questioning everything you do. They're undermining your authority. They don't allow you to implement anything new because they wanna go immediately back to their old ways, and they wanna kinda hide in the weeds a- and hide in the chaos is what we call it, right? Yeah. There's chaos going on in the shop, and they just wanna hide in the chaos and just kinda cruise and collect their paycheck. And they don't let them go because they're like, "Oh, they've been with me for 15, 20 years. I can't let them go." H- how do you make that mindset shift? What have you seen? What have you seen work at other shops? How do you kinda make that change? And how have you done it within just the institute itself? Cecil Bullard: It's never easy to terminate somebody, especially someone that you may have been working with for a very long time. And there, there needs to be some loyalty to your people, right? Yeah. You can't just like, "Oh, you screwed up, so now you're gone." And I think that in mo- for me, it's been a difficult change. I, I think a lot of people think I'm a pretty cold-hearted SOB, so for me to fire somebody, no big deal. But I always keep people too long. I always have too much hope all of that. For me, I think we talk about a vision for the business. We talk about your vision statement, your mission statement, those kind of things. I think the more you clarify the rules and the roles of the job I would I might sit down with with you, David, and I might say, "What's the org chart looks like? What does this business look like, say, five years from now? What do you want out of your life," right? And you say to me Cecil, here's how that looks." And the organizational chart creates structure, right? Who answers to who. But it also, if you do it right, it can create description, job description. What do I need this person in this role to do, right? And so the more you clarify, the more the people that can't or won't get the job done will stand out, all right? And I think that I have to look at my business differently. So let's say that you and I we're buddies and we're gonna start a shop. And by the way, I'm gonna be the sales guy. You can be the tech 'cause I'm not a tech not now anymore. And I'm still pretty good at selling stuff, so- I David Roman: rebuild car, by the way. It'll be a terrible shop. Cecil Bullard: Yeah. So you don't fix cars either. We're gonna have to hire somebody. But let's say that we do that, right? And so we're best buds, and we go along for a couple of years, and I'm not getting what I need or want out of my life, right? I didn't start the institute to pay the bills, right? If I had started the institute to pay the bills, I would've worked for somebody else, right? Yeah. I started the institute to do something special in the world that I live in and to try to control my future and to create my future, and a future for my family and the families of the people I work with. So we have to start thinking differently, two years from now, we've got three techs, we've got a service advisor and you and I, and I'm not responsible for just Cecil or just Cecil and Dave. Now I'm responsible for, I don't know, 25 people, because everybody that works for me has a family, right? Yeah. And if I allow one person in the company or even two people in the company to hold the company back Then everybody gets penalized. This is a, an ecosystem. When the ecosystem gets screwed up, everybody suffers, okay? And it's one thing for me to say I'm gonna, I'm gonna hold onto David even though he's a pain in the ass, and even though he won't change and even though he costs me money and gives me aggravation because, I've got this loyalty thing and I like David and I'm gonna hold onto him." I can do that when it's just you and me, right? Because I'm only affecting me and my family, right? And I can make that decision. But, at the institute we've got 30, I don't know, 34 employees now and that only counts the institute. That doesn't count other companies that we now have brought into the institute, so we're probably closer to 60 or 70. And those are 60 or 70 families- David Roman: Yeah ... Cecil Bullard: that I have to affect. So if I have somebody in here that's fighting the, whatever, not doing their job correctly. Plus, I've created this structure in the organization, remember, because I don't wanna be the only person that's gonna draw... pull the hammer, right? I think you have to understand that and I think this is one of my, kinda one of my things. I wanna win, right? And in fact, I'm so mentally ill that I will do, l- I don't really wanna win, I just don't wanna lose. David Roman: Yeah. Cecil Bullard: And so I will do almost anything it takes to win. And I have to watch that, because that sometimes can push me over the edge, right? And so I have to control that part- And I have to, for, so for me, if I'm gonna win, I can't have people in the organization that can't or won't do their job- Yeah ... or that are fighting the organization. Think I used this morning with one of my clients. I said think if you were building a, you wanted to win the Super Bowl, and you're building a championship football team, and you had a receiver that couldn't catch." Yeah. Okay? What would you do with that guy? Yeah. Would you keep him on your team 'cause he's a nice guy, and, he always shows up to practice, he's early to practice, and he practices really hard? He just can't catch the ball, right? It's not his fault. He's a nice guy, right? Would you keep him? David Roman: Yeah. Cecil Bullard: And the answer's no, because y- you could never win the Super Bowl. You won't. And while that might seem harsh, my- personally, I don't believe it's harsh. David Roman: Yeah. Cecil Bullard: I had a... I took over this company that was failing miserably, and for the first, I don't know, eight, nine months I worked 80 hours a week. I interviewed people. I sold 1.9 million annually at the service counter by myself. I ordered parts. I did a bunch of stuff. And I was away from my family for all that, so my family suffered for that time. And so I hire this guy. We'll call him Mike. A nice guy. Really nice guy. He became my right ar- arm guy. He became the guy that when I decided I'm gonna take Mondays off, he was there Monday. If there was a unhappy customer, he took care of the unhappy customer. And so we're in this thing two and a half, three years, and he's my right arm guy, and he's allowing me to go spend time with my family. Holy smokes. Yeah. And all of a sudden, he is the most sour, rotten guy. "This effing company," and, "This it's the same effing crap every single effing day," and blah, blah, blah, and, "I hate this effing job." And, about two weeks of this, and I pull him in my office and I said, "Dude, I'm gonna terminate you." I said, "It's not that you're not, quote-unquote, doing your job, but you are so unhappy and you're so miserable, you're dragging all of us with you- Yeah ... and our customers with you. And I can't ha- " And I terminated him, right? And about two years later, he... I saw him somewhere and he came up and he said, "I just wanna thank you for firing me." David Roman: Yeah. Cecil Bullard: And you're like wait a minute," that was a hard thing to do. You were my right arm guy. David Roman: Yeah. Cecil Bullard: And he said, "No, I needed something else." "And I went somewhere else and I found something that made me happy. The Institu- It wasn't the Institute at the time, it was Larry's, but Larry's wasn't making me happy. I couldn't- Yeah ... be happy," right? "And you recognized that, and you did the hard thing and you terminated me." David Roman: Yeah. Cecil Bullard: I, I- I think that business, the, what's different between, say, corporate business and, small business- ... right? Little family-run business. We all know each other. Kinda in corporate I probably do, too. The problem with corporate is corporate has a very distinct reason for being there. Yeah. It's about profit, and if you don't make profit- It's well de- David Roman: well defined. Cecil Bullard: Yeah. A- and if you don't make profit, then the investors leave, and you don't have a company. Yeah. It's that easy, right? And so it's very easy, and they also are much more structured. So incorporation, in a corporate, you've got the manual, you've got your, your process manual, you've got the company a man- manual, you've got the safety manual. ... You got your procedures, and if you screw that up and the profits disappear from the company, you're fired. That's it, right? Yeah. There's not... Th- there wouldn't be a manager because if the manager didn't fire you, if your direct manager didn't fire you, the guy above him would. Yeah. And he'd also fire the manager, David Roman: right? Cecil Bullard: Yeah. And so there's no... but we as owners of small businesses, we're much more compassionate, and we put up with it a lot longer. Yeah. I would also say that in a, in corporate, because you know there's consequence and you know that consequence is, it's going to happen, that you're much more likely to handle it sooner rather than later. Sometimes. So what happens... Y- yeah. In small business- Nope ... a lot of times we watch somebody go downhill, and we watch them go downhill, and it's only after we've kinda got the courage up to have the conversation, that could be six months from now- David Roman: Yeah Cecil Bullard: that we have the conversation, and by then we're probably angry, and if we're angry, we're not doing the right things. David Roman: No, we're not rational. Yeah. Cecil Bullard: Yeah. David Roman: Yeah. I've seen, I, we just had somebody on the podcast, and the guy i- is doing extremely well. He's just killing it. He's super young, and he's he just blurted out, he's I fire them as fast as I hire them." And I go hold on now. You're just finding more people and you're just cycling through?" He's "Yeah, I just cycle through them until I find the right person." And it goes back to the phrase you hire slow, you fire fast. Cecil Bullard: Yeah. David Roman: But the hiring slow si- sometimes gets glazed over. If you're finding the right people and you're taking the time to find the right people, and then just as you stated earlier, you're putting them into an organization that is well-defined in their role, in the organizational chart, the likelihood that you're gonna have somebody that you're gonna have to fire is going to go way down. I don't fire a lot of people. I haven't had to fire a lot of people, and the ones that I've had to fire is for a reason. But- Cecil Bullard: If you create accountability and- David Roman: Exactly. But that, that- And if you Cecil Bullard: manage ... David Roman: that assumes that you've got well-defined roles, job description- And that's- everybody knows exactly what they're supposed to be doing because at that point you can then hold them accountable and go, "Hey, this is what we do. We do A, B, and C. You're not doing A or B or C, whatever it happens to be. We need to either fix this or you can't be in the organization." Cecil Bullard: And, a- and in what business can you go to work and say to your boss, "No, I'm not gonna do what you asked me"? David Roman: Yeah. Oh, yeah. Cecil Bullard: The o- the automotive industry, I'm sure a lot of small businesses, who knows, maybe the local bowling alley the guy that's supposed to be, spraying the disinfectant in the shoes and handing you shoes, maybe he's not doing his job right and nobody is catching it. But in, in- almost any world, if your boss asks you to do... I was when I've had an employee that won't do what I need them to do, and f- and I'm sure that we've discussed it, I'm sure they understand what it is, but they still refuse, I always ask them, "Is it illegal, immoral, or unethical?" And they're like no it's none of those. I just don't wanna do it." Okay. That's called gross insubordination, and that's means for termination. Yeah. That's in your employee manual, right? And if you read your employee manual, you understand that when the boss asks you to do something, if it isn't illegal, immoral, or unethical, then that's what you're supposed to do. I could change your whole job description. I could go, "Hey, David, from now on, you're not gonna be talking to anybody on these dang webinars," blah, blah, blah. If I'm the boss I could do that, and you could be really upset about that, but it's not illegal, it's not immoral, it's not unethical so what? Yeah. And then you have the choice to say, "I don't wanna be in that job anymore," right? I- Yeah. You changed my job to a place where I don't wanna... It's not what I wanna do. Yeah. And that's fine. But because we know people, because we're intimately involved with them, we know their lives. My our top admin person is in Ireland right now getting married, along with most of our admin staff. And and you're like, we know these people. We know their lives. We know their husbands, their wives, their kids. They've been to the barbecue, et cetera. I think the way that I look at it is I owe it to the company and to the people we serve. So I've had the opportunity to change- Probably anywhere from 4 to 10,000 lives for the better- in most cases. I, at least I hope so, right? And if I didn't terminate unhealthy people out of the organization- Yeah ... I would've changed a lot less lives. Yeah. I would've helped a lot less people, right? And so I, I look at it differently, and it still takes me too long, and it's still painful to let someone go. David Roman: Yeah. And th- this brings up another question that somebody had had popped up in, in one of the Facebook groups, and that ha- has to do with job descriptions. And just pertaining to the conversation we were just having, if the, if you're not outlining the job for the person, they will invent something for themselves. Cecil Bullard: Yep. David Roman: And then the minute you ask them to do something that in their mind they've created this job description, "This is what I do," it's okay, since I didn't define it, I guess you defined it for yourself. Now I'm asking you to do something that's not within that purview. You're gonna get upset, and then all of a sudden the the hostility starts because now they're slighted that, "Hey we didn't discuss this. Why are you asking me to do this? That's outside of my job description." I don't have a job description written out for you. You invented it for yourself. But This was somebody that needed a something on paper, and I said, "Look, at the very least, you can always start with technician fix the car." Cecil Bullard: Yeah, fix the car. Just David Roman: start Cecil Bullard: with- It should, frankly, right? David Roman: Yeah. Be- I'm telling you, these shop owners- ... they get in their heads about job descriptions and standard operating procedures, and they just overcomplicate it, and they're like I gotta have this outline, and it's gotta look like corporate," like you were saying, the HR manual, and this, that, and the other. You don't need to have all that. Just start with the very basics. Like- Cecil Bullard: But the funny thing is today, first of all, from the institute, if you want a job description, we got job descriptions. I- if you're a client, certainly you have access to all of that. But I would almost tell you that I have posted job descriptions, all kinds of things online- 50 times, yeah. And it... Right now, if you were to Google or use AI and say, "I need a job description for a technician that does XYZ," and you were to just basically define it, it would come up with a pretty dang decent job description for you. And you can- ... David Roman: adjust from there. Cecil Bullard: Yeah, and then you can make adjustments. It's AI, and a lot of us are afraid of AI in our industry, and a lot of us don't really understand what AI is or, some of us think it's gonna, it's gonna decide to destroy us, Skynet and all of that. It's coming David Roman: up. Cecil Bullard: But you never know. Skynet launching David Roman: the missiles or Cecil Bullard: coming to town. Any minute, right? But I think I don't even have to use AI. I can go online and say, "Can I have a job description for a technician?" And Google's gonna give me five different job descriptions. Yeah. And I can go through and pick and choose the pieces that fit my job descriptions. It is... It's not 25 years ago where you might if you went to Google and said I don't know if Google's 25 years old, it's probably about 25. I had- It's almost there ... an opportunity to buy Google stock way back then, which I did not do otherwise. But- David Roman: We wouldn't Cecil Bullard: be talking right now. But no, we would... Maybe not the same conversation. We'd be on a boat. But yeah. But if I... 25 years ago if I said, "Give me a job description," it would've went "I'm sorry. W- what? Huh?" And probably for the last 10 years, I could've went on and got a job description if I really wanted to get a job description. The other problem we have, I think just as an industry, is that we're so busy Just trying to do the job of keep the cars going through and keep the customer happy, that we forget that we need to organize and structure the business in order to ultimately be successful, right? Yeah. There are so many guys that are my age and older that are having to get out of the business for health issues that they haven't structured their business, so there's no- nothing to sell, right? It's solely based on whether or not you made any money, and if you didn't make enough, then it isn't, it has no value. And it's a real shame to watch guys in their, late 60s, mid sev- to mid-70s when they realize, "I'm gonna have to retire and all I'm really gonna have is the little bit of money I saved and my Social Security, if it exists, and I'm not gonna get, really get anything out of this company that I r- I ran for the last 45 years." David Roman: Or they're delusional and they think that thing's worth a quarter million doll- And it's dude- Cecil Bullard: Yeah, and they're David Roman: never gonna get it ... you're doing $30,000 a month and you're not even profitable. What? Cecil Bullard: Yeah. And they're ne- and they're never gonna get it. I mean- ... and, a-again, the more you st- you know with I know a lot of people are not happy with the thought of venture capital coming in and all that, but they're here. And the more you structure your business, the more you pull yourself out of the day-to-day roles in the business, the more your business becomes worth. David Roman: Yeah. Cecil Bullard: Whether you sell it to venture capital or you sell it to your service advisor or someone else who's looking to build their bench, right? Or their their platform. It's it... The game has changed a lot, unfortunately. I was do- a bunch of statistical data we did last week for this big meeting that we were having I think a 127,000 shops out of about 260 are just gonna close in the next five years. David Roman: Yeah. ' Cecil Bullard: Cause there's no, there's nothing there. There's no value. And there might be another 100,000 that will open and start, yeah. But a bunch of guys are just gonna disappear and fade away because they didn't structure, they didn't You know, build job descriptions and flow charts and, Biggest issue in the industry in my opinion is that we really don't fully understand our business, and therefore we don't really run our business in a financially prosperous way. David Roman: Yeah. Cecil Bullard: Yeah. David Roman: Not having those steps outlined... And I, a- about my shop. I'm not- Yeah ... in my shop at all, ever. Yeah. I don't go down. I avoid it. I go to the dumpster once a month and dump stuff out of my house that I need to throw away. And that's it. I just Cecil Bullard: did that this weekend, man. Dumpster's full. David Roman: Yeah. And but the reason why that's been possible, and it- not that I'm maximizing profitability or to the nth degree and tweaking this, that, and the other, but we at least got the blocking tackling down. Yeah. A- and it's automated to the, to a certain point that the manager can talk to anybody that they bring in and say, "This is where we hang the keys. This is where the car goes. This is where we hang the keys for the next car." "This is how we estimate." "This is how we dispatch the work." "This is how we price." "This is how we do the estimate." Yeah. Yeah. "This is how we..." Everything's automated on the shop management side. Y- so just whatever the price is, that's the price. This is how we outline the repairs. Everything is just set up in a specific fashion that it can be tra- it's trainable. They can go onto somebody else brand new... And I brought in two people in the last six months, a tech and somebody to help up front so I don't have to be there at all. And they have, they've been able to get trained on the processes where w- I just had a conversation with somebody, and they were saying that they had brought in this tech. This guy is just hurting for techs, just dying to get techs. Finally gets somebody to bite, and he's probably throwing huge money out there because he finally, he got somebody- I know. Yeah ... and they actually moved their box into the shop. So the money was there. Within two hours, the guy was gone. Two hours, Zola, it took for the guy go, "This isn't gonna work. I gotta go." " Cecil Bullard: I can't make this work." David Roman: Yeah. Yeah. And I guarantee he walked in and he's he was just handed a clipboard, and he's "Hey, fix that car." And he's li- looking at the clipboard, and there's some scribbles on it, and it, there's no process. Where do the keys go? Where are my parts? What work needs to be done? How many hours am I getting paid for? Like, all of these very basic things that need to be outlined haven't been outlined, and the, they're, everybody's just kinda shooting from the hip. 25 years later, they're trying to get rid of the business, and they're like What do you want me to sell here? There's nothing to sell. There's no processes, there's nothing. You're in the business every single day shooting from the hip. Yeah, you can't- You remove yourself from the business, like what do you do? Cecil Bullard: And you're also costing yourself, probably hundreds of thousands, if not millions of dollars over the 40 years that you run the business. Absolutely. Because you're not maximizing, your business. I had a new client it actually wasn't one of my clients, but I often am involved in new client meetings with some of our coaches and- so we have a new client come on board, and their parts margin's off by 14%. And you're like, "Oh, that's 50 grand," right? And then you look at their productivity's at about 55%. And you're like, "Oh, there's 200,000." And so think about that. If you can clean up your margins and your productivity and, put another, say, $200,000 a year into your profit, at over 40 years let's say you s- you saved f- 25% of that. You put 25 grand away every year for 40 years, what would you have, right? Yeah. It's... I- you'd have what, $10 million? Yeah ... maybe 20 because of the interest stuff. A- and so you're not just creating frustration for the people around you, you're not just reducing value in, say, your business, but you're potentially costing your family millions of dollars worth of revenue that you could have just even if you just ran your business smartly and saved a little bit on the- Yeah on the way. And it's unfortunate to see that because those are the same guys. We do a lot of I don't know, we do a lot of... I don't call it marketing, but we do a lot of meetings and stuff. And so we bring in people, we do this leadership intensive meeting, and we bring in shop owners. And a shop owner'll come in and he'll bring his two or three kids in. So we've got a, a 25-year-old a 23-year-old, and a 19-year-old, and they're all there, and they wanna have nothing to do with Dad's business. David Roman: Yeah. Cecil Bullard: Nothing. They don't wanna be involved because they watched their dad work 80 hours a week and struggle to pay the bills and all of a sudden- Stressed out David Roman: of his mind. Cecil Bullard: Yeah ... yeah, and all of a sudden, they're now at an age where they could participate and Dad would maybe like them to participate, but they're not interested at all. Because they don't see any future for themselves in it. We didn't show them a future 'cause we didn't even create a future for ourselves. And to me, that's- that's kinda a l- that's a little criminal. So i- it would go back to, Cecil, how do you terminate somebody that's been with you for seven years that, has-- When you started the business, they were an essential part, and they've kinda worked themselves out of that, their attitude or even what they do, or they haven't kept up on their education or whatever. How do you terminate? Because 15 years from now when my kids are 25, 30, I want them in the business with me. I don't want them, I don't want them going out to do something else with somebody else. Yeah. One of the greatest joys of my life today is being able to work with one of my children, day to day. Yeah. And my second greatest joy is having all of my family near me and having good relationships with all of my family. Yesterday- Yeah ... it was it was my birthday. Don't, please don't do anything or don't send me any more happy birthdays. But- But I was able to have my family with me. And just have a, a nice evening. And the f- the cool thing is the dad is to sit back and watch the kids interact with each other and have good interactions, right? Of they tease each other, give each other crap, but it's all in fun. And, that's... A- and part of that's because I didn't... 'Cause when I was home, I tried to be home 'cause I wanted to have those relationships, and when I was at work, I tried to be at work because I knew that I needed, when I'm at work, I need to be at work so that I can have the home time that I need, right? David Roman: Yeah. Cecil Bullard: Whoever might be listening to us, if you do have questions, we certainly would be more than happy if you'll put them in the comments to answer any of those questions. So- It's gotta be a David Roman: good question, otherwise I won't ask it. Cecil Bullard: Yeah, crappy question, we're not gonna- David Roman: Crappy questions are Cecil Bullard: ignored. No. No crappy quest- So how do you fire somebody? How do you actually terminate somebody? That might be, a good question. Yeah. First of all, you do not go into long, lengthy explanations about what they didn't do right. You're just opening yourself up for argument, pain, and I always just tell people, we've made a decision. We're going to be letting you go." Yeah. That's it. Yeah. And and, Now if, David Roman: In my state, if you don't have good documentation- Yeah ... it turns into now you're fighting them for unemployment benefits and this, that, and the other. In every state. Yeah. And th- and this is... if the person needs to just go, they just need to go and just pay up. It's whatever. Yeah, I don't care about unemployment. Cecil Bullard: And David Roman: we're having that Cecil Bullard: assist-- Yeah. I never cared about unemployment and I never used- David Roman: They raked me over the coals- I used that- in Kansas, let me tell you. Yeah. I never used that- If somebody actually dips into it. Cecil Bullard: Yeah, I never used that as a decision about hiring or terminating. If I need to terminate you and I end up paying unemployment, it's part of the game. Yeah. David Roman: But I will say that if you specifically have a job description You've got something outlined and they are violating whatever it is that you've got in writing with their- Yeah signature acknowledgement that they know that this is what's there, and you know that, hey, this is now going down this path. And it really for me, it's ... I'm looking at it two or three steps down. If I can sit down and coach this person and have conversation and go, "Hey, you're not doing this. I need you to pivot," then I'm gonna have that conversation, and it's not gonna get written down. However, if I see them going down this path that, hey, this is not salvageable, I need to let this person go, the first violation is a write-up. Got you. "Hey, you didn't do this. Here's your write-up." Usually they go on their own, but if they don't, it's just three write-ups and then boom, they're gone. Cecil Bullard: Yeah. David Roman: And- And then that's it. And then the minute- But- ... that the state sends me that letter- Yeah ... here's the write-ups. Boom boom. There you go. Fax it over. Done. Cecil Bullard: And, and- David Roman: I'm not paying squat. And Cecil Bullard: so I wanna make it real clear for anyone that's listening, you need to understand your state's HR laws because- Yeah. ... You need a, an HR professional in your state because each state has different rules about that. Yeah. And in Calif- I know California and Utah really well 'cause I've run businesses in both. I actually know New Jersey now pretty well. W- that's another long story- ... which we won't get into but I'll also tell you I'll never have an employee from New Jersey again. The rules are just too complicated. In California, I have to write you up three times for the same thing. David Roman: Yeah. Cecil Bullard: And I have to put deadlines in your write-ups I need, in two weeks I need improvement here, and this is the improvement I need to see, so that it's not ambiguous. Yeah. And you can't be ambiguous. It'll get you in trouble. David Roman: Yeah. Cecil Bullard: It looks like we have a question- We have a David Roman: question, yeah, Cecil Bullard: from Adam ... that someone's gonna ask there. David Roman: Says, "I'm interested to know if you have a limit to explaining a procedure to an employee. I've had to tell one of my advisors to go over inspections at pickup, and he keeps m- he keeps missing it. What should I do?" Cecil Bullard: I... For me I have a rule, and my rule is when I determine that there is no more hope, I terminate the employee. David Roman: Yeah. Cecil Bullard: So I don't I don't have somebody and I don't have a three times. Okay, I'm gonna explain it three times, and if you don't get it in three times you're done. I don't have that rule. As long as I, I believe that you can get it if I help you or someone else helps you, then I'm gonna keep you and keep working with you. David Roman: Yep. Cecil Bullard: Usually for me, maybe the fifth time is the time where I go, "They're just never gonna get it." The minute, the second I go, "They're never gonna get it," I terminate. I'm... And I don't keep people on because I've watched time and time again where someone said I'll fire him on Friday or next week," and they hurt their back or they- Yeah. Oh, yeah ... they tore their shoulder or they- ... dropped the wheel on their foot and broke their foot or- Yeah ... it just happens. This thing happens. And all of a sudden I've got an employee for life, or at least for the next year- ... that that I'm gonna end up paying for who I knew couldn't and wouldn't do the job. When you- Yeah There is a point and I gotta tell you, being the, like the director I am the direct guy, like I'm gonna sit down with somebody and say, "I've explained this to you four times and you're still not doing it. Why aren't you doing it?" David Roman: Yeah. Cecil Bullard: Because it's almost never, "I don't understand it. I don't know how to do it." It's either you didn't- If it is David Roman: a competency thing- Yeah ... what were you doing during the interview process that you couldn't identify that this person- That I- ... can't read or write? Cecil Bullard: Can't... Yeah. . Yeah. Did you have them? I have them write out a paragraph and, and- ... on their own. Like the wife can't do it or the husband can't do it for the wife. Yeah. And like you have to write a paragraph on your own and what was your interview process like? You may have somebody that i- in most cases, I would tell you it's probably somebody that has... It's like the, "I don't wanna do it." David Roman: Yeah. Cecil Bullard: The... I had an employee that I decided we were gonna announce sales over the intercom. "Hey, Bob, we sold all the work on that blue Honda. It's due Wednesday at 5:00." And so I brought two of my employees in, and both great employees, and I said "Here's what we're gonna do, and what do you guys think about that?" And they were all like, "Yeah, okay, fine." So you want us to do it, we'll do it," right? And so I watched, and my one guy did, the other guy didn't. And I brought the other guy in five, five weeks and I said, in, in five days, and I said, "Hey, remember that conversation we had five days ago about announcing things?" "Oh, yeah." I said I've watched. You haven't announced anything. What's up?" "Oh, it's stupid." Yeah. "Oh, okay. That's fair. It's okay." I said "What part of it is illegal, immoral, or uneth- unethical?" And he went none of it." I said, "Okay, so now you're putting me in a weird position because I'm your boss. I've asked you to do something that's not illegal, immoral, or unethical, and you're telling me no or you're just not gonna do it. So you're being passive-aggressive. You told me you would, but now you're not." Yeah. "That's passive-aggre- can't have passive-aggressive people in the company," blah, blah, blah. Okay, I'll do it," right? And he goes out and I watch another week and he doesn't announce anything. So I went to our HR cabinet, I got out a resignation form, I filled it out for him, gross insubordination. Brought him in my office. I said, "Remember the meeting we had five days ago about the meeting we had five days prior about announcing things?" "Yeah." I said, "You're still not announcing things." He goes, "Yeah, I know. It's stupid." I said, "Okay, that's fine. I just need you to sign this-" David Roman: Yeah . "... Cecil Bullard: and and we'll be walking you out of the building." And he went I don't wanna quit my job." I said you already have." Yeah. "You're not doing what I asked you to do." And so what are you telling all the other employees that I have, right? What are you telling everybody else? You David Roman: can pick and choose what you wanna do. Yeah. Cecil Bullard: Yeah. See, whatever Cecil says doesn't matter. Yeah. I can't have that, right? It's it's no way to run a successful company. David Roman: Here's a follow-up to this. Is this one of those things in California where you need to have multiple write-ups before you're able to fire them? Three, I can just check our HR laws, as you said as well, good old California. Yeah, so- Cecil Bullard: Yeah ... David Roman: check your HR laws. Be very specific about what it is. Cecil Bullard: Yeah. David Roman: Consult an attorney. Cecil Bullard: But David Roman: if you have- I have one of Cecil Bullard: those- If you have an employee manual and they're doing gross insubordination, let's say that you had a, I don't know, you had a cell phone policy that was like, "No cell phones while you're working on cars." That's a safety issue. If someone violates that in certain states, I believe California, that's gross insubordination. That is terms for immediate dismissal if it's spelled out that way in your employee manual, and I don't have- It's a safety concern ... to go through all the BS, right? Yeah. There are things that wouldn't fall under that, and you just have to, you have to look in your state, Yeah ... and have... I really recommend, and we don't understand as shop owners what our liability is. We work on... I got a I was talking to these new clients, and they're basically a general repair shop, but they're like we got our Toyota, Honda price. If we're working on a Maserati, should our price be different?" I said, "You're working on Maserati?" I said- Oh my God, right? The problem is if one of my guys backs a Toyota into the rack, it's gonna cost me a couple of grand. One of the guys backs a Maserati into the rack, it's gonna cost me $40,000 to fix it, right? Yeah. And we don't understand the liability that we create for ourselves sometimes in this business. And so I recommend that everybody, whatever state you're in, that you have an HR professional in that state that can give you the proper advice so you don't get yourself in trouble because- And a David Roman: lot of times, like my insurance company will provide- Yeah some assistance- Yeah ... with like manuals and things like that so you don't get yourself in trouble, because they're trying to limit their liability risks a- as well. And also- Cecil Bullard: Assuming that you have that kind of insurance, and everybody should. David Roman: Yeah, every, yeah. If your insurance company isn't offering that, you need to question whether you have the correct insurance company or if you have enough insurance coverage. Cecil Bullard: Yeah. David Roman: That's an issue as well. But specifically dealing with this employee you need to find out whether this is a competency thing or a compliance thing. If it's just that they don't wanna do it because they're uncomfortable, that's probably what it is. They're just uncomfortable bringing it up. Okay, that's a training opportunity, and you need to think back, "Why did I even hire this person, or why do I have th- what value do they bring to the table?" And if the value is more than what you're paying them, obviously, then it's a net benefit to the company, but you need to try to keep them and go, "Okay, let me give you the verbiage, and then you change it up to whatever best fits you, but this is the verbiage you should be using in order to bring the thing up," because maybe they're uncomfortable bringing the inspection up at after or at pickup. If it's just "No, I think it's dumb," then like you're saying, at this point, it's okay now we have a problem. Cecil Bullard: You're also, there's a question of habit. So my habit is to say, "Thank you very much," hand them their keys after I took their money, and now I, now my boss wants me to add this referral process, okay? And I'm not thinking that. For the last five years, I've just handed them the keys and said thank you, right? And so when y- whenever you're gonna introduce a new habit into your mix, a new thing, you need 60 days, and you need 60 days of daily QC, quality control. Yeah. You have to... You literally have to look- Over the employee's shoulder, make sure that they're doing it. And usually you're in 30, 35 days if you've got good QC. You've created the new habit, and now it's the norm and not- Yeah ... the old thing. Often you have an employee that you have asked to do things, but they don't exactly understand how to do it. And you have not really shown them how to do it. David Roman: Yeah. Cecil Bullard: And so therefore they don't know how to do it, and then they don't do it, and you go, "Why won't you do it?" And so I just wanna make sure that I'm... My wife tells me I'm a horrible communicator. I'm always... It's no, that's not what you said." I went to pick her up this weekend and I, I texted her, I, "I'm gonna be there at 2:30," and the night before we talked and then I said, "Somewhere between 2:00 and 3:00. We'll text tomorrow and we'll figure out, and I'll come get you." And so at about 2:10 I text her, "Hey, I'm gonna be there at 2:30." And she goes I'm already outside." And so I'm a terrible communicator. I don't communicate clearly, obviously, right? And so my assumption when I have someone that doesn't do what we've talked about, that I didn't communicate it well enough. And then my assumption the second time is that they don't really understand it, they don't really know how to do it, 'cause if they did, they'd probably be doing it. Yeah. And so I'm gonna go through that two, three, four times to make sure that I've taught them properly, that they actually know how to do it. I'm gonna sign them off on it, because I'm gonna watch them do it- Yeah ... the way it needs to be done. And then if they still won't do it past then I have a compliance problem, not a competence problem. David Roman: Yeah. And I think we fall into a trap ourselves where we communicate the way we would want it communicated to us, and these are completely different people. I'm a five percenter, like I... And I'm a high D. Like just tell me what the- Yeah, how much, how many people are like you and me, right? Exactly. Tell me- Cecil Bullard: There are like David Roman: five of them ... what the end goal is. What is it that you wanted to accomplish? And I'll make it happen. Yeah. I don't need the steps, I don't need you- Yeah ... to break it down. But most people aren't like that. And I had a manager that I worked under for years, and he used to tell me, "Break it down into the ridiculous." For some of these people, you need to break it down into the ridiculous, because if you don't- Pretend I'm a Cecil Bullard: third grader. David Roman: Y- yeah, if you don't do that, you're not gonna get the outcome that you want. You have a very specific outcome that you want accomplished, and these people just don't know the steps. They can't make the steps up themselves, or they're afraid to because they don't wanna mess up, so they just don't do anything. They freeze, right? So break it down to the ridiculous, step by step. Step one, do this. Step two, step this. And if you do that, then you will ensure the outcome that you want. And that might be all that's happening here is this person just needs to Give the person the verbiage, and then like you're saying, 60 days of, "I'm behi-" If you actually want it to happen, don't assume that the other, the, this advisor's gonna work like the other one. The other one was obviously was just like, "Hey, make this happen." Made it happen. But this one is not gonna be like that. It's gonna be, "I'm gonna stand behind you. We're gonna maybe step through this. What do you say next? Hand it, hand them the inspection," whatever the process happens to be. But you have to go step by step, and it's gonna be a little bit of work for you which I've tried to avoid. That's why I have a manager. Just give it to the manager- Yeah ... and go, "Hey, make this happen." Cecil Bullard: Make this happen, right? Yeah. I wanna make sure that every person that leaves has gone through the referral process and been asked for referrals, and scheduled for their next appointment. And I, it blows my mind because I just have these owners who tell me we can't, I can't get my people to do it. I can't I can't get..." And I'm like, "you... Yes, you can. I've seen it happen. It does work." Yeah. It's not impossible. David Roman: Yeah. " Cecil Bullard: Oh, no, this is impossible," "people won't schedule an appointment." Oh, if you ask them, if you tell them, they will, believe it or not, 'cause I've done it. And yeah I think that in most cases that we make a lot of assumptions, and we don't break it down into the pieces. And when we, whenever we make assumptions, we get ourselves in trouble, David Roman: right? Yeah. Oh, yeah. Cecil Bullard: Absolutely. Absolutely. We still have about 10 minutes here. Yeah, if, so if anyone's online and they wanna ask a question you got me and David both here. If not, David, what what other questions have come up on the podcast recently? David Roman: They we've had one that, that has been setting me off. And this isn't... Now this has come up in the Facebook group, but then I've seen this in other industries, and it's been about parts pricing. So there's a bunch of stuff going on in the Middle East, this, that, and the other, and there are announcements coming out saying that, "Hey, the price of synthetic oil is going to skyrocket because it's just not gonna be available." It Cecil Bullard: has. Yeah. David Roman: The... Yeah. And so everybody's freaking out, going what are you gonna do?" And then I just saw a story the other day about a, i've seen two. We had a barbecue place here in Kansas City shut down, and the guy didn't blame his marketing. The guy didn't say, "Hey, my marketing sucks. I have great barbecue but nobody shows up at my door because I'm not telling anybody about it, and I'm in a terrible location, and it's really hard to get into my building," and blah, blah, blah, blah, blah. None of those things. What did he blame? The price of beef. He said, "Man these beef prices are just out of control, and my margins are just getting tighter and tighter," and this, that, and the other. And then I saw another place in Texas, same line. "Oh, these beef prices are just out of control," this, that. And apparently, the beef prices wholesale haven't changed in the last two to three years. They're the exact same. They haven't gone up. They went up, but it was, like, two or three years ago they spiked, and then they've just been flat. And so these pla- these places and these shop owners are freaking out about cost of goods sold. Cost of goods sold are irrelevant to me because I just mark it up and sell it. That- I'm not paying for it. I've- My customer pays for it. I just mark it up- I've had- ... and sell it. Cecil Bullard: I've had- The David Roman: price is what I... It is what it is. Cecil Bullard: I've had people tell me recently, I don't know how to charge for oil because the price of oil has gone up so drama- three times what it was. And I'm like- It's okay ... how were you charging before, right? We were using a matrix or we had a lower price, right? You might have a lower price in. And all of a sudden they don't know how to price oil. If it costs me a dollar and I'm selling it for three if it costs me $3, I'm probably gonna sell it for nine. Yeah. It's not hard. To me, it's not hard at all. But I'm... I don't wanna close my doors because the price of beef went up. David Roman: Yeah. Cecil Bullard: Okay? I went over to McDonald's yesterday. I don't ever eat at McDonald's, but I got a dollar cheeseburger. I think it was, like, a buck 89. I was... Wait a minute. That's on the do- that's a dollar... it's a buck 89. Get a dollar- Yeah. It, the- ... dollar things aren't anymore. Dollar- The price of beef went up. McDonald's raised their prices. Holy crap. Are we really not smart enough? We're buying groceries. We're buy- we're getting gas. I went and got gas. It was $4.63. And do you think the people that sell us gas haven't raised their prices because the price of oil has gone up? Yeah. I mean- David Roman: It's the craziest mindset. I have no idea where these people are, like... are you nuts? It's... I can understand- He- ... the a bottom-of-the-line expense. "Hey, my insurance tripled. Okay, I'm gonna have to raise my prices because I need this percentage on my P&L to stay about the same, so this is gonna cost more up the top here." But a cost of goods sold? Like- Cecil Bullard: Yeah ... David Roman: the pri- whatever I buy it for, you just mark it up and you sell it. So whatever the price comes in at, it's like- Cecil Bullard: Who David Roman: cares? I'm sorry. And then if the customer says anything, you just, you blame something in the Middle East. You blame Saudi Ara- Cecil Bullard: You blame Iran. Yeah. You blame Trump. You, you- David Roman: Yeah. Just blame something that- I'm sorry ... you have no control over ... it had nothing to do with it ... because you don't. Yeah. I don't have any control of what they sell it to me for. Yeah. And neither do they because I still have to make my margins on it. So yeah, you don't blame the beef price. And what's insane is the, this guy in Kansas City that had to close his barbecue place The minute he got featured in In- he was on Instagram as one of those small business... He cleans windows, but he features these small businesses when he close, when he goes to clean their windows, and he wears the AI glasses, and he does this whole thing. It's a nice, it's a nice channel. It's all Kansas City businesses. The minute he was featured on this massive Instagram channel, he sold out of food every day for, from that point on until he closed his doors. For the next two weeks, he was... By 6:00, he was completely- So what if he raised his Cecil Bullard: price like $2 a pound or whatever? David Roman: If he had just raised his prices- Cecil Bullard: He'd still David Roman: be in business, right? Or he- Yeah ... I'm like, he didn't go, "Hey, if I just had better marketing. If I just had be- Yeah ... because these people found me, they'll probably come back." And it's w- it's insane to me. And he doesn't go "Hey, just a mile down the road is a barbecue place with a line out the door." Cecil Bullard: Yeah. " David Roman: They're paying the same price I'm paying for the beef. So you're done. You can't tell me these shops that are making three, four, five million, these shops that are expanding, they're hiring people, they're paying the same price as you for this oil. What are they doing?" Oh, they're marking it up. They're marking it up. Something, man. Yeah, they're marking Cecil Bullard: it up David Roman: because we're not nuts. Who the hell cares what you're buying it for? Yeah. You gotta... These... We gotta get out of this mindset. I have no idea. Cogs Cecil Bullard: of special- That's, it's the $29.99 oil change mindset. It's the, I have to have this loss leader that, that puts me out of business that gets people in my shop. And it makes me mad. I won't mention names, but we keep this myth alive because it gets us hits. David Roman: Yeah. Cecil Bullard: Because it gets us attention, right? I'm sorry. It's putting shops out of business. It's putting families at risk. It's... y- Your customers will pay what they believe there's value in, and they will not fight or argue about it. You and I both know that. Probably most of the people that li- will listen to this already know that. So if the oil price goes up, the price of the oil service goes up. It, i- it's what it is. If they raise coolant prices... I remember when you could buy coolant for two bucks a gallon. You're sure as hell not buying it for two bucks a gallon now. We used to sell it for six. Yeah. And and now, I don't know, 20 bucks a gallon or something. And so I'm not selling it for six. David Roman: It's oil right now. Yeah. But I'm just... it's... But two or three years ago it was freaking, Cecil Bullard: we David Roman: went through the- ... R1234yf. Yeah, we went through the whole- "What's everybody doing about 1234yf? I just don't understand. Blah, blah, blah." It's dude what Cecil Bullard: are you talking David Roman: about? Freon. Cecil Bullard: Freon back in the day. Just... Freon. Yeah, it just... Yeah. I... We were selling Freon for two bucks a pound when it was R12, and within three months it was $60 a pound. It, 'cause our cost went up dramatically and so the customer paid 60 bucks a pound. David Roman: And we're- And not only that the machines, the 1234yf machines- Yeah ... are so incredibly slow. Yeah. So it takes three times the amount of time that the old- They used to- ... 134a systems, you used to hit a couple buttons and it would zap through the service and then you're in and out. Where this one takes so much longer. So yeah, guess what? My refrigerant service, if you've got 1234yf and I have a specific line- Costs more money ... that we run performance testing, it's triple the price of the standard w- 134a system. And when they ask, you go, "Why is it so much?" It's 'cause you have 1234yf. You have the new refrigerant. Every car is gonna have the new refrigerant now. Yeah. So guess what? Every car is gonna have to be dealing with this. And I just wanna point this out. Lance makes a comment emotional discounting. The customer will walk in with a $10 Starbucks coffee. It... They will co- come in and complain about your price with their $10 Starbucks coffee. It's it's even worse than that, and I was telling this to Lucas. Da- DoorDash just reported profit reve- or record revenue- ... and profitability. DoorDash. They'll Cecil Bullard: pay for DoorDash. They'll pay $18 to get David Roman: a hamburger delivered. $18 for that $1.89 hamburger. To get that hamburger delivered to their- $18 because they want it at their door. While they're complaining about auto repair But then they complain about my $80 oil change. Yeah. No, no thanks. Get out of here. Cecil Bullard: No, thanks. David Roman: Nah. Just, just- People got money is all I'm saying ... and- People got money. You just gotta- And if the s- ... charge what you gotta charge. Yeah. Don't worry about it. And if we- They'll find a way to pay for it ... Cecil Bullard: if we at shops understood what our value is and what our liability is, we'd be charging more than we're charging now. Yeah. Yeah. Which is not... we don't have time for that discussion. In fact, we're gonna have to wrap it up. I guess we're getting to the end of this. Yeah. And we have important lives and other things to do. We'll have another one of these coming up in a few weeks. And David, thank you very much for being here, and thanks for your- Great conversation. I appreciate it ... questions and comments. Yeah. And you know I love you, brother, so- Yeah. You too ... take care, all right? David Roman: All right.

Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode Carm Capriotto sits down with Todd Fortier, retiring automotive professor and program coordinator from Illinois Central College, to discuss a lesson learned over three decades in education: anyone can teach, but becoming a true educator requires purpose, empathy, and continuous growth. Todd shares how his passion for education was sparked by helping students experience those breakthrough "lightbulb moments" and why the ultimate goal of teaching is not simply delivering information, but ensuring meaningful knowledge transfer. As he prepares for retirement, Todd reflects on the challenges facing automotive education and his mission to help develop the next generation of industry instructors. What You'll Learn Why technical expertise alone doesn't make someone an effective instructorHow educators can improve knowledge transfer and student engagementTodd's "Three C's" framework: Concern, Cause, and CorrectionWhy connection, empathy, and vulnerability are critical teaching toolsHow to identify the root causes behind student disengagementThe importance of recognizing the personal challenges students bring into the classroomWhy many students leave training programs early and how educators can help retain themHow trainers and mentors can evolve into true educatorsThe soft skills needed to successfully connect with today's students and technicians The best educators do more than share information, they build relationships. Todd Fortier's career demonstrates that teaching is most effective when instructors combine technical knowledge with empathy, curiosity, and genuine human connection. As the automotive industry works to address technician shortages and workforce development challenges, creating better educators may be one of the most important investments the industry can make. Todd Fortier, Professor/Program Coordinator, Illinois Central College, ToddFortier@techtoteacher.com Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/Subscribe on YouTube:https://www.youtube.com/carmcapriottoFollow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmastersJoin Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976Join our Insider List:https://remarkableresults.biz/insiderAll books mentioned on our podcasts:https://remarkableresults.biz/booksOur Classroom page for personal or team learning:https://remarkableresults.biz/classroomSpecial episode collections:https://remarkableresults.biz/collectionsBuy Me a Coffee:https://www.buymeacoffee.com/carm The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto:Facilitating Wisdom Through Story Telling and Open Discussion.https://remarkableresults.biz/Diagnosing the Aftermarket A to Z:From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.https://mattfanslow.captivate.fm/Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest.https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.https://autorepairmarketing.captivate.fm/The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.https://chriscotton.captivate.fm/Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O'Neill.https://craigoneill.captivate.fm

Tektonic 2027 is coming up April 1-3, and if you missed year 1, you MUST NOT miss year 2. It's bigger, it's better, because is Tekmetric's conference. You know it's gonna be the best conference in the history of conferences. Get lower pricing now HEREMy marketing before and after signing up with Turnkey Marketing is pretty scary. In a good way. Get your marketing right today HERE47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you! Make your techs happier with Detect Auto. They'll stop getting "check noise" or "check vibration" from advisors with the customer concern tool. It will CHANGE YOUR LIFE. Book a demo HEREElite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREThis episode was recorded at Tektonic 2026. Thank you to Tekmetric for allowing us to use this recording for an episode. Want to go to Tektonic 2027? Register HEREToday, Mike Allen leads a lively panel of coaches as they tackle some of the auto repair industry's most daunting topics. Things like flat rate and how compensation models impact recruitment, motivation, and shop culture. They also confront the persistent undervaluing of the industry, pointing out the urgent need for better marketing and self-regulation if auto repair is to attract the next generation. Plus, the coaches don’t hold back as they discuss private equity’s growing influence—offering straight talk on exit strategies, business legacy, and the real impact on teams left behind. Tekmetric opened my eyes to just how much a good SMS will do for a shop. Their software is top of the line, and with them, so is my shop. Try them for yourself HEREMy marketing before and after signing up with Turnkey Marketing is pretty scary. In a good way. Get your marketing right today HEREMake your techs happier with Detect Auto. They'll stop getting "check noise" or "check vibration" from advisors with the customer concern tool. It will CHANGE YOUR LIFE. Book a demo HEREFor years I thought I could handle the hiring process on my own. But, after far too many bad hires, it was clear I needed help. Promotive came through for me with a rock star hire in just a few days and I couldn't be happier. Swallow your pride and bring in Promotive for that open position you have at your shop today. You can thank me later. Learn more HEREAI for Shop Owners: Open the Hood of the Future is happening June 12-13 at Carfix in Raleigh, NC. Use AI to your advantage! Register HERETimestamps:00:00 Why is the auto industry undervalued? The real story behind pay and standards01:06 Flat rate pay: Is it tradition, incentive, or what’s driving the “tech shortage”?02:44 Hourly vs. flat rate vs. blended: Can we finally pay techs what they’re worth?04:06 What performance-based pay REALLY looks like in the real world07:03 Is there even a tech shortage, or just a leadership and culture failure?09:09 Recruiting top techs: Why should someone work for YOUR shop?11:05 Employees want more than money—how culture and environment win12:33 Why we can’t afford to be “broke” shop owners (& why most of us are)13:28 Are we destroying our own value? Party clowns vs. techs and the marketing gap15:56 Leadership confession: We got into cars, NOT for people, and it’s catching up16:26 How to reach the next generation of automotive stars17:17 One shop’s youth welding program that sparks real careers18:06 Why trades like welding are beating automotive for young talent20:03 How do we market the industry and reach parents, not just students?23:39 Got Milk? Why we need a national campaign to sell the value of this business24:53 Raising your labor rate: Genius or a recipe for backlash if you don’t raise value28:28 What customers are REALLY paying for—and how service changes the game30:13 Making your shop irresistible: Clean, beautiful, equipped, and worth the price31:42 You don’t need to wait to raise value—start by fixing your shop now34:36 Relationships and trust: The foundation for customer and team loyalty36:24 The biggest profit leak no one talks about: productivity loss39:35 Private equity: Golden parachute or community killer for auto shops?41:54 What’s your exit plan? How to think years ahead (and why it matters)45:45 Should coaches own shops? The truth about what makes a great coach51:39 Leadership, engagement, and communication: The four pillars of high-performing teams55:54 AI, DVI, and service advisors: The NEXT revolution in customer experience58:04 Why hospitality always wins—technology tools are only part of the story

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"> *]:pointer-events-auto R6Vx5W_threadScrollVars scroll-mb-[calc(var(--scroll-root-safe-area-inset-bottom,0px)+var(--thread-response-height))] scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id="request-WEB:8a36a74e-94b9-45d2-82f2-3a0e09cdfefe-1" data-turn-id-container="request-WEB:8a36a74e-94b9-45d2-82f2-3a0e09cdfefe-1" data-testid="conversation-turn-4" data-scroll-anchor="false" data-turn="assistant"> Carm Capriotto talks with Matt Curry and Judy Curry of Craftsman's Auto Care about building one of the automotive industry’s most respected multi-shop operations twice. After growing Curry’s Auto Service to 10 locations and retiring in 2013, the Currys returned to the industry with a new vision, launching eight Craftsman’s Auto Care locations in eight years. Matt shares his role as the visionary leader driving momentum and ideas, while Judy explains how operational discipline, marketing, and customer experience keep the business grounded and scalable. The conversation explores their “5 Ps” philosophy: People, Policies, Processes, Procedures, and Profits, along with their commitment to employee development, strong culture, customer transparency, and community involvement. The Currys also discuss how Digital Vehicle Inspections and an intentional customer experience helped them earn nearly 10,000 five-star Google reviews. What You’ll Learn How Matt and Judy Curry scaled multiple successful shop operationsWhy leadership balance and “staying in your lane” mattersThe “5 Ps” framework for building a strong shop cultureHow employee investment drives long-term successWhy transparency and DVIs build customer trustHow culture and customer experience fuel growth and retention Sustainable growth in automotive repair comes from more than technical expertise. It requires intentional leadership, strong systems, a healthy culture, and a commitment to both employees and customers. Matt and Judy Curry, Craftsman Auto Care, 8 locations, Virginia Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: ...

Rick White was my VERY FIRST business coach, and trust me when I say he helped me get my shop-owner life together! 😂 Now I’m proud to have 180Biz presenting Downshift, so head to 180Biz.com and book your FREE strategy session with Rick because, honey, you don’t know what you don’t know!Y’all, if you missed the first Tektonic, you missed a GOOD one, but you've got another chance! 😂 Tekmetric is going even BIGGER in Houston, Texas, April 1–3, 2027, so head to Tekmetric.com/Tektonic and get registered because you're NOT missing out twice!Anybody can run a shop. Building one that lasts? That's a whole different story. If you're ready to build smarter systems and a better experience for your team and customers, check out Tekmetric HEREIn this episode, Tonnika and Greg Buckley talk about about the challenges and rewards of running a family business in the automotive industry. Greg shares how health struggles led to a period of self-reflection and stepping back from day-to-day shop operations, only to discover the importance of finding new purpose through nonprofit work. Tonnika also reflects on the influence of her entrepreneurial family and emphasizes the value of building strong, empowered teams—both in the shop and beyond.Timestamps:00:00 Why wait to live? Enjoying life before retirement03:05 Getting hands-off with the shop – and how that backfired04:16 Health scares, stepping back, and losing your sense of mattering06:33 Rediscovering purpose through nonprofit work08:00 The powerful impact of giving back: Charity, YMCA, Autism Delaware11:07 Letting go as a parent and a shop leader – joy and heartbreak13:10 How real leadership boosts your shop’s KPIs14:11 Building a winning team by putting people in the right positions15:04 Why Grandma was the ultimate motivational coach17:16 Family hustle: Lessons from generations of business legacy20:05 Getting fired by your own family (and other shop stories!)24:31 When growth brings new problems (and how to solve them)26:02 The fine line between great service and setting boundaries with customers29:32 The heartbreak and lessons of closing the family shop31:42 Wild shop promos: Parties, hot dog carts, and building community33:56 The secret: Leading with empathy, not the iron fist35:28 Making work really work for your team (4-day weeks & real life outside the shop)36:33 Empowering your team to thrive and need you less38:08 Rebuilding your social circle and connections in the digital age42:15 The importance of “entering the room” even when you doubt yourself46:07 Why representation matters in the industry and mentoring the next generation48:58 Playing the long game: Using your voice for good55:52 Finding your passion outside the shop – and how to get started59:05 How to finish strong – and live out loud, guns blazing

Rick White was my VERY FIRST business coach, and trust me when I say he helped me get my shop-owner life together! 😂 Now I’m proud to have 180Biz presenting Downshift, so head to 180Biz.com and book your FREE strategy session with Rick because, honey, you don’t know what you don’t know!Y’all, if you missed the first Tektonic, you missed a GOOD one, but you've got another chance! 😂 Tekmetric is going even BIGGER in Houston, Texas, April 1–3, 2027, so head to Tekmetric.com/Tektonic and get registered because you're NOT missing out twice!Anybody can run a shop. Building one that lasts? That's a whole different story. If you're ready to build smarter systems and a better experience for your team and customers, check out Tekmetric HEREIn this episode, Tonnika welcomes Jennifer Hulbert from the Institute of Automotive Business Excellence and Service Plus Automotive. Jennifer shares her own journey taking over her family shop, highlighting the challenges of building the right team and embracing real leadership. They bust the myth that coaching is a cookie-cutter scam, stressing that true culture and accountability transform both the owner and the team.Timestamps:01:00 – Meet Jennifer: From HR to Shop Owner to Coach05:00 – Building a Shop From the Ground Up (And Surviving Dad’s Retirement)10:35 – Numbers Don’t Lie: Why Financials Matter More Than “Hustle”14:38 – Team Culture That Actually Works (And How To Build Yours)16:30 – Monday Meetings, Leadership Classes, and Real-Life Accountability21:00 – Surviving Economic Downturns & Military Community Challenges25:25 – The Real Talk on Hiring, Firing, and Growing a Rock-Solid Team28:30 – The Truth About Working ON vs IN Your Business31:45 – Letting Go: How to Hand Off Roles and Still Win33:35 – Investing in Staff: Training, Trust, and Those “AHA” Moments36:35 – Employee vs. Team Member: Spotting the Difference39:00 – Profit’s Not a Dirty Word—And Why Your Shop Needs It41:10 – Feeling Stuck as a Shop Owner? Step-By-Step on Moving Forward43:50 – Why You Should Stop Chasing “Bottom Feeders” and Stand Your Ground47:00 – Why Jennifer’s Hopeful for the Future of Auto Repair49:30 – Growth Hurts (But It’s Worth It): Unfiltered Conversation for Shop Owners52:24 – How to Get Connected With The Institute and Take Your Next Step

Keep shop management, payments, marketing (all the things) all in one place with Tekmetric. It will CHANGE YOUR LIFE. Click HERETurnkey Marketing has made my life SOOO much simpler, AND they've helped keep the phone ringing. Do you need these two things too? Learn more HERE47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREThis one was fun - put three popular podcasts in a room for an hour, and you never know what will happen...THIS WAS NO EXCEPTION Today, Lucas Underwood, Mike Allen, and Tonnika Haynes open up about the real challenges of shop ownership, podcasting, and share some crazy stories along the way.They dive deep into the difficulties of managing growth and the importance of setting boundaries—especially when it comes to family businesses and succession planning. Timestamps:00:00 Lucas and Mike Make it Awkward01:42 The infamous Benji story and awkward work gaffes02:46 How Tonnika went from outsider to industry board member04:31 Reflecting on diversity, intimidation, and leadership in the industry06:36 Board politics, cleaning up after the "old guard," and learning the ropes08:01 Confessions about podcasting: growth, ego boosts, and business neglect09:37 On loving people (to a fault), hiring headaches, and why feelings can't run a business12:10 Tough lessons learned: leadership critiques gone wrong14:05 Reeling back commitments to avoid burnout and family drama16:45 Discussions about business hours, staff, and shifting industry cultures19:03 Why every shop is different and one-size-fits-all advice doesn't work20:13 Coaching, cult-followings, and why shop owners get fiercely loyal22:44 The weight of influence: why podcasters and coaches impact real lives24:31 When business coaching turns into a fraternity (and how to break free)26:20 The coaching gold rush: who's really helping, who's just cashing in28:33 Podcast production goes legit—systems, processes, SOPs34:25 Therapy time: handshake deals, business agreements, and life after podcasts36:32 Family business confessions—succession nightmares, buyout basics, and trust-but-verify50:43 Lessons learned the hard way—and why you’ll survive51:33 Practical advice: documentation, buy-outs, and avoiding family business disasters

Tektonic 2027 is coming up April 1-3, and if you missed year 1, you MUST NOT miss year 2. It's bigger, it's better, because is Tekmetric's conference. You know it's gonna be the best conference in the history of conferences. Get lower pricing now HEREMy marketing before and after signing up with Turnkey Marketing is pretty scary. In a good way. Get your marketing right today HERE47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you! Make your techs happier with Detect Auto. They'll stop getting "check noise" or "check vibration" from advisors with the customer concern tool. It will CHANGE YOUR LIFE. Book a demo HEREElite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HEREJay Huh is the owner Carmedix in Durham, NC. Today, he tells Mike how he figured out how to run a shop the hard way. After years of struggling, he has built an efficient, highly profitable shop that gives him total freedom. They also talk about ShopFix and what the coaching company is doing after the loss of Aaron Stokes. Timestamps:00:00 – Jay's confession on not making enough money02:17 – Why sharing mistakes online changed everything04:40 – Living on $1,000 net per shop and barely making it06:07 – Consolidating down, shop tours, and landing in the “anchor” spot08:19 – Do we really need so many shop owner groups? Breaking down the division09:35 – Shop culture, coaching, and why too many owners are still broke10:45 – Shop Fix vs. other coaching: It’s about heart, not just numbers13:07 – Haters, jealousy, and why everyone thinks their way is best14:43 – Growing the right way—efficiency before expansion and protecting family time15:16 – Let’s talk cruises! Why Speaker A rides MSC and the yacht club life16:46 – Degenerate gambling confessions: Blackjack, craps, and cruise ship casinos18:01 – Owning a beach house: Boats, depreciation, and gathering your crew20:00 – The exit plan: Cashing out vs. the freedom of autopilot shops21:10 – The guardrails: How Speaker A uses daily numbers, not vibes23:00 – Forget top-line revenue, focus on real margin25:17 – Shop meetings, keeping techs and advisors rowing together26:01 – Why the multi-store “dog” life isn’t for everyone26:30 – The danger of scaling without the cash to back it up27:59 – Shop size vs. profit: Luke Walker’s $1M store reality check29:05 – The secret: Hire high skill, pay well, and net more31:12 – Money loves speed: Adapting shop processes for today’s customers32:13 – Show & sell: Finding the urgent fix, but always telling the whole story35:20 – Ethics, shortcuts, and hiring for integrity36:05 – Losing Aaron: Leadership, legacy, and moving Shop Fix forward39:14 – What’s next? Shop Fix’s plan and why the mission’s stronger than ever

Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HEREIf you're like me and aren't good at marketing, don't do it on your own. Let the experts handle it. Touch HERE for more on Turnkey Marketing.47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HERE When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!Hunt Demarest is a CPA with Paar, Melis, and Associates. Today, he joins Mike to talk shop financials, tax credits, and private equity. Hunt breaks down why consistent improvement—just 3% better each quarter—is more sustainable than chasing explosive growth. He offers a candid warning about risky investments, sharing his own hard lesson with a too-good-to-be-true real estate scheme. Finally, Hunt dives into the rise of private equity buying up repair shops, explaining how that's driving up valuations and changing the market for owners looking to sell. Timestamps:00:00 Incremental improvement beats unrealistic growth—why 3% better every quarter wins01:10 Teaching personal finance at Vision 2026 (and why accountants don’t read your Social Security statements)02:07 The truth about R&D tax credits and audit nightmares03:44 What you must ask before taking any credit—defending yourself at audit time05:03 Hunt’s background: how he got into auto repair accounting08:08 Will AI replace your bookkeeper or CPA? Real talk, not hype10:32 Why shop owners need to understand financial statements & what current ratio means for your cash12:18 Managing AR, cash flow, and the case for paying vendors weekly14:43 Shop profitability: 8 months out of 12 is the norm, not the exception15:43 Trends: The scale and extremes of shop margins have changed MASSIVELY17:21 Labor rates at $386/hr and what actually drives profit18:54 The 20% net profit “gold standard”—and who really gets there19:34 Why comparing owner compensation plus net income tells the real story21:26 What’s the average net profit for shops? (Spoiler: it’s better than you think)22:15 Beware public “industry average” surveys—actual profits vs. reported tax returns23:01 Why working with an industry-specialized CPA beats a generic accountant every time24:14 The inner circle: who should be on your financial “advisory board”25:00 The most common (and WRONG) beliefs about shop accounting29:53 Hunt’s biggest personal mistake: the $25k investment gone wrong (and what to learn from it)32:10 Private equity: what’s happening, who’s buying, and what it means for YOUR exit36:10 Should you sell now? How PE offers stack up vs. passing to family37:06 Why PE doesn’t care about your P&L—sometimes it’s all about your customer count38:02 Final thoughts, lessons learned, and why even the pros get it wrong sometimes

Don't get to the end of this year wishing you had taken action to change your business and your life.Click here to schedule a free discovery call for your business: https://geni.us/IFORABEDon't miss an upcoming event with The Institute: https://geni.us/InstituteEvents2026Shop-Ware gives you the tools to provide your shop with everything needed to become optimally profitable.Click here to schedule a free demo: https://info.shop-ware.com/profitabilityTransform your shop's marketing with the best in the automotive industry, Shop Marketing Pros!Get a free audit of your shop's current marketing by clicking here: https://geni.us/ShopMarketingProsShop owners, are you ready to simplify your business operations? Meet 360 Payments, your one-stop solution for effortless payment processing.Imagine this—no more juggling receipts, staplers, or endless paperwork. With 360 Payments, you get everything integrated into a single, sleek digital platform.Simplify payments. Streamline operations. Check out 360payments.com today!In this episode, Lucas and David are joined by David Veldman, who shares his personal journey coping with the recent loss of his father and its impact on his direction and motivation in the automotive repair business. The conversation explores how major life events, such as grief or health struggles, can affect business owners, especially those without strong support systems or sustainable operations. David Roman provides a contrasting perspective, emphasizing the importance of shifting focus toward the next generation and building a business that can survive without constant owner involvement.00:00 "Grieving Without a Rudder"10:05 "Finding Aim Through Adversity"12:08 "Finding Direction and Motivation"17:14 "Dad's Varied Career Path"24:37 Machine Shop Succession Challenges30:13 "The Box That Changed Me"34:50 Efficient Flywheel Machining Strategy39:58 "Importance of Knowledge and Processes"47:09 "Pay Taxes Like an Employee"51:14 "Tax Payment Delays Explained"57:40 "Sad Start, Weird Ending"01:03:03 Lakeside Anniversary Offer01:04:49 "Possible Marijuana Overdose"

Like the show? Show your support by using our sponsors. Need to update your shop systems and software? Try Tekmetric HERESave 15% on your next Launch Tech USA tool with code Launch15. Use that code at checkout HEREIn this episode, Jeff is joined by JeanAnn SaintGrace, host of the BRAND NEW podcast in the Changing the Industry Network "Shop Talk Her Way". She's also an automotive shop coach and former shop owner. JeanAnn shares her journey from accidental shop ownership to building a business focused on profitability, people, and succession planning. Together, they discuss the importance of protecting technicians' pay and treating them like "racehorses," strategies for consistent profit to secure employee futures, and the emotional realities behind leadership and preparing for unexpected life events.Click here to listen to JeanAnn's podcast "Shop Talk Her Way"Timestamps:00:00 "Envying the Natural Puzzle Guys"19:50 "Managing Reputation in Business"25:14 Husband-Wife Power Dynamics in Business32:37 Technician Dynamics and Customer Communication41:43 "Survival Mode and Unequal Pay"57:25 "Challenges of Running a Shop"01:03:40 "Challenges of Transparency in Sales"01:14:02 "Proof Her Method Works"01:29:25 "Have a Plan for Uncertainty"01:42:32 Work-Life Balance Perspectives01:49:59 "Finding Purpose Through Positivity"01:58:19 "Resilience, Connection, and Legacy" Follow/Subscribe to the show on social media! TikTok - https://www.tiktok.com/@jeffcompton7YouTube - https://www.youtube.com/@TheJadedMechanicFacebook - https://www.facebook.com/profile.php?id=100091347564232
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