Im a tech for a dealer and my Bro owns his own independent shop.I dont know his numbers but can tell you he has been doing VERY well from what i can tell.He is on vacation with his family 2 weekend out of a month with his family or wife.he has more material things than i can count and a nice house..hes been doing this i think for about 10yrs now.I dont mix family with work so I have stayed put at my dealer even though I get asked yearly to come work for him.I can tell you that its much better than working at a dealer and struggling to get by sometimes like me and my wife do,even with a $130k combined income which isnt shzt these days..my wife brings home more money than i do with her 10yr old job than my 27yr old job as a tech...go figure.
My first question is, are you doing everything you can with what you have, or do you need to do more to set up processes and procedures for DVI, estimating, etc...If you say yes, then you have to look at what you are currently doing and expand on that. What does your marketing calendar look like? I did a little digging and would say your website needs work, as an established shop I would have expected to see more reviews for you on GMB. I couldn't find a Facebook page for you. If you're not doing it, I would start an AdWords campaign. If you want more help with this, feel free to reach out, and we can discuss it.
Chris just found your channel i have owned my Automotive Repair shop for 37 yrs , since Covid and all the parts shortages and trying to find even half decent techs i took a diff appoach as of now i have a 5 bay shop with a GM/ Service writer and three techs i increased there pay to the point were with me now doing speacial high performace work at our second shop today we are far more profitable than when i was running 5-6 techs plus myself i am a ASE Master Certifed Auto and Truck . If there is any openings for Remote staffing options iam entering semi retirement and feel i could add alot of great ideas and plans i have implentmented to increase profits with low to no comebacks... Thanks Fred Pickering Ceo Pickering Automotive Service Inc.
I think this is a great concept but if we do 50/50 are you going to help the owner pay for rent, service advisors, training, benefits, insurance etc....out of your 50?
@HappyCat-xx3mw Exactly correct. Can vouch for this. Best paid techs I know are domestic truck guys. Worst paid techs I know are Porsche techs (myself, 20 years with stagnate wage)
The exotic and supercar shops I work with those techs are making more than 100K per year, but they stay hooked up and busy all the time, and they are independent shops though.
@@chriscotton3712 Chris, you said the profit from running a independent auto repair shop. I know a few friends who said things are way tighter than before but funds taken in was way more the 5 percent. Does that answer your question Sir ?? Peace, vf
@@victoryfirst2878 that answers my question but I'm not sure you understood my original statement. Now it's been several months since I recorded it. I believe that I said many shops net 5% or even less but the goal is to net 25% or better.
There's a problem that automotive shop owners are failing to understand that's absurd and I'll explain. A shop wants to charge on average $100 per hour for labor but only want to give 20% or maybe 25% of that back to the tech doing the work. This is being conservative actually. There are TONS of shops in larger areas charging at least $120 to $140 per hour (and in many cases it's even more) AND STILL only want to pay the techs 15% to 20% of that and sometimes even less. It's ridiculous. If you can't pay your techs $30 per hour or $40 while you're charging $140 per hour for labor AND STILL find a way to be profitable, you need to get out of the business because YOU are the problem as the manager/owner. This is coming from someone who was an automotive tech and now has a few small businesses including an auto repair place. The automotive repair place is not the primary business so it is not as busy on purpose. The point is, I know what operating costs are in a business such as land or building rent/lease, utilities, insurance, labor/payroll, taxes, and many other things. It's insanity how greedy the automotive shop owners want to be when it comes to pay. In some cases, these places think it's perfectly okay to pay a tech starting out $12 or $15 when they are making $120 to $130 or more per hour over and above this because they are getting $140 to $150 for labor per hour. Yet the owner thinks they are giving the new tech "an opportunity" so they think they are doing them "a favor". Tools are expensive but also, there should be something of value for the skill of repairing a vehicle so you as an owner can make money. Techs need to be making a minimum of $20 to $25 starting out and should likely be pulling in $35 to $40 or more an hour if they have experience and have few comebacks. Again, if you can't find a way to be profitable with giving your techs more like 30% to 40% of your labor rates, you're doing something wrong. Especially if you have more than 4 or 5 techs and a place that has plenty of clients. It's all on scale. If you are having so many comebacks and losing money because of screw ups and you want to have that big "cushion" (profit) to make up for your horrible services, then again, that is on you as the owner and you need to make some changes. Hire better techs or provide more or better training or have better procedures for how to handle repairs and be more upfront and transparent with clients so you have less issues. Have better quality control. Be a better manager. Techs are tired of working their butt off and being stressed trying to figure out why someone's vehicle stalls once every other week and they can never duplicate the issue only to get paid horribly. Meanwhile, they look up and see the labor rate is $160 when the owner is squawking at them because they want a raise from $18 to $20 when it really should be at least $25 or maybe even $30 or more.
That $100/hour (or whatever) has to cover the expenses when the bays are empty, when a tech makes a mistake, when a car is damaged, when an estimate is too low and it takes more labor because of (insert issue like rusty parts, etc.). Obviously the fixed overhead like rent, taxes, insurance, equipment, tools, marketing, admin, etc all has to covered also. I get it, the techs deserve to be paid…but when you see all the numbers, there isn’t as much margin as it may initially seem. 25% margin (according to the video) is the goal…many aren’t there.
Im a tech for a dealer and my Bro owns his own independent shop.I dont know his numbers but can tell you he has been doing VERY well from what i can tell.He is on vacation with his family 2 weekend out of a month with his family or wife.he has more material things than i can count and a nice house..hes been doing this i think for about 10yrs now.I dont mix family with work so I have stayed put at my dealer even though I get asked yearly to come work for him.I can tell you that its much better than working at a dealer and struggling to get by sometimes like me and my wife do,even with a $130k combined income which isnt shzt these days..my wife brings home more money than i do with her 10yr old job than my 27yr old job as a tech...go figure.
What do you feel should the percentage be for rent? Thank you
Great video based on shop owner
What is the best way to advertise an established business that needs more work?
Iveheard Facebook is good
My first question is, are you doing everything you can with what you have, or do you need to do more to set up processes and procedures for DVI, estimating, etc...If you say yes, then you have to look at what you are currently doing and expand on that. What does your marketing calendar look like? I did a little digging and would say your website needs work, as an established shop I would have expected to see more reviews for you on GMB. I couldn't find a Facebook page for you. If you're not doing it, I would start an AdWords campaign. If you want more help with this, feel free to reach out, and we can discuss it.
Chris just found your channel i have owned my Automotive Repair shop for 37 yrs , since Covid and all the parts shortages and trying to find even half decent techs i took a diff appoach as of now i have a 5 bay shop with a GM/ Service writer and three techs i increased there pay to the point were with me now doing speacial high performace work at our second shop today we are far more profitable than when i was running 5-6 techs plus myself i am a ASE Master Certifed Auto and Truck . If there is any openings for Remote staffing options iam entering semi retirement and feel i could add alot of great ideas and plans i have implentmented to increase profits with low to no comebacks... Thanks Fred Pickering Ceo Pickering Automotive Service Inc.
Sign me up!
40+ year master tech, our shop is not even open to the public and we're 2 months behind.
Interesting, tell us more.
He in fact, did not tell us more
GO BACK TO 50/50....
I think this is a great concept but if we do 50/50 are you going to help the owner pay for rent, service advisors, training, benefits, insurance etc....out of your 50?
@@autofix-autoshopcoaching801 How did they do it years ago?
You'll make a 100k working on Lamborghini or Ferrari
@HappyCat-xx3mw Exactly correct. Can vouch for this. Best paid techs I know are domestic truck guys. Worst paid techs I know are Porsche techs (myself, 20 years with stagnate wage)
The exotic and supercar shops I work with those techs are making more than 100K per year, but they stay hooked up and busy all the time, and they are independent shops though.
If you own your shop and you are the owner/tech you should be doing way better than that. It really comes down to you charging what you are worth.
FIVE PERCENT IS WAY OFF CHRIS. WAY WAY OFF.
Five per cent of what? What are you referring to?
@@chriscotton3712 Chris, you said the profit from running a independent auto repair shop. I know a few friends who said things are way tighter than before but funds taken in was way more the 5 percent.
Does that answer your question Sir ?? Peace, vf
@@victoryfirst2878 that answers my question but I'm not sure you understood my original statement. Now it's been several months since I recorded it. I believe that I said many shops net 5% or even less but the goal is to net 25% or better.
@@chriscotton3712 Right one Chris. To error is human to forgive divine. Peace and out. vf
There's a problem that automotive shop owners are failing to understand that's absurd and I'll explain.
A shop wants to charge on average $100 per hour for labor but only want to give 20% or maybe 25% of that back to the tech doing the work. This is being conservative actually. There are TONS of shops in larger areas charging at least $120 to $140 per hour (and in many cases it's even more) AND STILL only want to pay the techs 15% to 20% of that and sometimes even less.
It's ridiculous. If you can't pay your techs $30 per hour or $40 while you're charging $140 per hour for labor AND STILL find a way to be profitable, you need to get out of the business because YOU are the problem as the manager/owner.
This is coming from someone who was an automotive tech and now has a few small businesses including an auto repair place. The automotive repair place is not the primary business so it is not as busy on purpose.
The point is, I know what operating costs are in a business such as land or building rent/lease, utilities, insurance, labor/payroll, taxes, and many other things. It's insanity how greedy the automotive shop owners want to be when it comes to pay.
In some cases, these places think it's perfectly okay to pay a tech starting out $12 or $15 when they are making $120 to $130 or more per hour over and above this because they are getting $140 to $150 for labor per hour. Yet the owner thinks they are giving the new tech "an opportunity" so they think they are doing them "a favor". Tools are expensive but also, there should be something of value for the skill of repairing a vehicle so you as an owner can make money.
Techs need to be making a minimum of $20 to $25 starting out and should likely be pulling in $35 to $40 or more an hour if they have experience and have few comebacks. Again, if you can't find a way to be profitable with giving your techs more like 30% to 40% of your labor rates, you're doing something wrong. Especially if you have more than 4 or 5 techs and a place that has plenty of clients. It's all on scale.
If you are having so many comebacks and losing money because of screw ups and you want to have that big "cushion" (profit) to make up for your horrible services, then again, that is on you as the owner and you need to make some changes. Hire better techs or provide more or better training or have better procedures for how to handle repairs and be more upfront and transparent with clients so you have less issues. Have better quality control. Be a better manager.
Techs are tired of working their butt off and being stressed trying to figure out why someone's vehicle stalls once every other week and they can never duplicate the issue only to get paid horribly. Meanwhile, they look up and see the labor rate is $160 when the owner is squawking at them because they want a raise from $18 to $20 when it really should be at least $25 or maybe even $30 or more.
That $100/hour (or whatever) has to cover the expenses when the bays are empty, when a tech makes a mistake, when a car is damaged, when an estimate is too low and it takes more labor because of (insert issue like rusty parts, etc.). Obviously the fixed overhead like rent, taxes, insurance, equipment, tools, marketing, admin, etc all has to covered also. I get it, the techs deserve to be paid…but when you see all the numbers, there isn’t as much margin as it may initially seem. 25% margin (according to the video) is the goal…many aren’t there.