How NOT To Start an Auto Repair Shop
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- เผยแพร่เมื่อ 5 ต.ค. 2024
- David and Lucas breakdown a TH-cam video from UpFlip called "$20K Invested to Start an Auto Repair Shop (Did it Work?)" Link to the video: • $20K Invested to Start...
UpFlip is a channel that helps educate and inspire people about the small business world. They feature Lucky Sing, who started his car repair business, Lucky’s Auto Repair, with $20,000 in 2016.
What do they get right and what do they get wrong?
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I’m happy I seen this. It confirms what I thought made the most money in auto shops. Brakes, suspension, rotors, alignments, tires, wheels and how clean and fast you can do them. Simply put I would rather turn in and out 50 cars a day doing those than 10 a month doing big jobs.
I just did the math on that myself yesterday. You can undercut the shop hard and still charge 2-3x times the pay you'd get at regular ass jobs
Yeah we all would like gravy but part of this art is learning how to mix it up and take on what feels right and a good fit for your skill set and your techs skill set 😉
Big jobs for me have always paid decent but it's a balance like anything else on time assignment etc. set goals and teach them how to do the same and don't get too down if you have parts delays etc. , fill in work if you communicate correctly
Thats how every single car dealership makes money, charge 4 hours for pads n rotors all around and get it done in 1 1/2 hrs, + all the other gravy that starts with basic oil changes and free inspections, easy money.
My husband was a mechanic for 55 years. An ASE master auto tech, and an ASE master heavy truck tech, plus he has a degree in Automotive technology. He started out with Chevy, then ford, then Jeep and finally oil field specialized equipment. And heavy trucks. He is a master welder also. As a heavy line tech he started out rebuilding engines in the shop, he says that was bad news. So many problems can crop up. Then he did short blocks and finally long blocks. Then he quit engines and started making big money on Brakes, shocks, struts, suspensions, Transmission filter changes, electrical, everything between engines and oil changes. He had a successful three bay gas station in Ohio and finally a two bay gas station in Oxnard California. Oil and filter changes are ok between other jobs. He hired young people for that, and paid them 50% of the labor. He did the old truck signs way back in the day. He did so well, he added outside lifts for oil changes and tires. He says if you only R & R engines, then that works but leave the rebuilding to professional fully equipped shops that do just that.
What’s R&R mean
Remove and Replace
Had a customer when I opened who was a customer of my landlord when he was open. She asked for a price on a brake job told her 400 she said the shop next to u is 250 can u match the price? Told her I use better quality parts, replace slider boots, sand blast caliper brackets where the brake clips go and put a sealer on so the rust doesn’t come back for a very long time causing the brakes to bind. She comes in 2 months later saying the shop has done the brakes 2 times still making noise and has me do it.
Customer comes to my shop because they have spent 2000 bucks at different shops for an engine light and when I tell them about the diagnostic fee they say how their mechanic doesn’t charge diag. Well I sure hope not because they didn’t diagnose anything they tossed parts at it.
Scanner Danner book ... HELL YES!!! i went to UTI, great experience but it wasnt the all of all.. but learning about Scanner Danner and others, thats where i really got the spark!!
Where can I buy his book
Fellow 2007graduate here...I agree....scanner dannertaught me alot
..and Eric o
Man I told you before, if I move closer to you or you move closer to Delaware, I would be knocking on your door! I think , no I’m sure you’re an honest person and I would love doing business with you! Keep it up
Mike.
Your coment about tech school is 100% correct, I went to a fabrication school and honestly learned how to tig weld aluminum, everything else I've had to learn on the job or from youtube. These trade schools look good from the outside view but don't actually teach you the ins and outs of the trade, work ethic, attitude...
You guys are great! Love the content! Will be watching every podcast, thanks for all you guys are doing to change this industry for the better!
Thanks!!! Glad to have you watching the videos and listening to the podcast 😀
I know I’am replying to a older podcast. On doing larger repairs such as engine replacement. When we are calculating profit dollars, we base it on our Gross Profit dollar per hour needed with a 20% increase. And we also change all radiator hoes, spark plugs, coil boots, filters, etc; And we include extra time for road testing afterwards. Our road test is based on a total of 4 hours. Both highway and stop & go driving. If I am going to tie up a bay for 1 to 2 days, I have to have a profit dollar of what that bays is able to produce. My shop is known as the expensive shop in town. I feel we are not the expensive shop in town, we are the shop that gives you more value than other shops. With a seven year or 70,000 mile warranty on most repairs. The problem is other shops do not educate themselves about doing business and what is needed to be profitable for the owner and the business. And those shop owners wonder why they get behind on paying their bills or taxes.
Agree 100%!
He says his start up cost were 20k $ big ol snap-on red cabinet in the background technician had a tablet in hand his AC machine cost over 4k$
Appreciate this episode! Great information! As always!
Never been to tech school and I'm doing all right. Apprenticeship and mentorship are the wave of the future. 50% of secondary programs are teaching 10 year old technology. Not all, but an alarming amount
That's been a problem for close to two decades now I definitely know that that's been a concern for the collision and auto body side
10 year old technology if you're lucky. Some are still teaching carburetors.
Apprenticeships have been around since trades have existed brah
@@nservice1625who's still teaching carburetors?
At least you are honest David.
Eeks oopsey
State doesn't like to refund anything, only takers and all states
I’m a little over a year now in my Hybrid/electric auto repair shop. Honestly I hate big jobs like evaporator core replacement which is the worst for me, but for a shop like mine they help me pay the bill. An engine swap here and there pays the monthly bill. I guess as a specialized shop I don’t get enough traffic to benefit from small jobs. I don’t turn them away though. I view them as lunch money. What I learned so far is those little quick jobs add up. It’s like picking coins on the street all day.
You will be surprised how many incompetent mechanics are out there. Ask any mechanic what is the purpose of a differential and they will get it wrong or have no clue. Very few grasp the idea of ampere and voltage in fact most will say 12 volts is 12 volts. You guys are heaven sent at the very least gives me inspiration and keeps me holding on. I own Hybrid/ Electric Vehicle at its in its infancy and struggling. I’m beginning to think hybrid and electric car market does not have enough market.
Wait a few more years. As the e.p.a gets stricter laws on emissions and fuel consumption, more vehicles will have to go hybrid. Toyota is already marketing their 2.4L hybrid on their number one selling tacoma, and their full size tundra v6 hybrid. Although other manufacturers are simply going around this by putting small engine displacements with turbos to produce more horsepower, less emissions and less fuel consumption eventually they will have to go electric. At the moment there aren't enough techs to service electrical vehicles let alone in the near future. I suggest you expand your services, sales and network for the moment while the hybrid business gradually grows as hybrid sales increases. You need to look at data. Parts sold, vehicles sold, your competition near by also. Good luck.
I watched your video and Lucky Singh’s video before going to UTI. At that time I thought you guys hate Lucky. Now after ten month of UTI and some shop experience I think you guys are messiah. Giving everyone a reality check. Thanks 🙏🏾
I just signed a lease on a preexisting shop. I had to get a tire machine, balancer and a compressor. Those 3 things alone were 20k.. I could of spent way more on those 3 things.
Do you see yourself in the future buying more expensive versions of those tools/equipment? Second question what do the more expensive versions do that yours can't do ?
@@EBO47old question i know, but the big difference between entry level and expensive equipment is time. For example: a basic 12k rotary lift will go up and down in 52 seconds each time. Their $4000 add on kit will do that in half the time, so rise time of 26 seconds. 30 seconds doesnt sound like much, but its a minute per full cycle of the lift. All the tools you buy add a second here or there and that helps efficiency. There is also a maintenance and longevity aspect as well, but it primarily is time.
7:00 I learned in 2017, never, ever live where you work. Your customers will show up any time expecting you to fix their car, which is even worse when they show up stoned with the bumpers ripped off because they hit a deer carcass laying in the road. Yeah, I don't care if the shop is three blocks away, that's fine, but work and residence are not going to be at the same location, ever!
Agreed! It's absolutely asking for it!
And the worst part? If you set boundaries you'll be the "bad guy".
I had someone show up at one point and demand I work on his vehicle on a Sunday. "Just take a quick look" he said.
When I explained Sunday was for rest and family time - he went ballistic.
A number of years later, he came to the shop and a service advisor unknowingly booked him an appointment.
We were accused of "just turning his truck around in the spot and charging him" and "no one else charges for testing".
I guess the moral of the story is not all people are sane, sober, moral or prudent - its our responsibility to set healthy boundaries and that is EXPONENTIALLY harder when you live at or directly beside the shop.
I have a friend who refuses to get a shop. Same thing there... people stop by so often, its hard to even get work done. Place is too small, he doesnt keep it clean, house looks like hell... and the boundary pushers... yet he still fighting me when I say lets go rent a shop. It would be so much better, plus you look professional I think when you got an office,bathroom, an wait room and all that good stuff. When you deliver a proper invoice the customer is going to understand... but you will always be the cheap guy workin out his yard.
I just have boundaries and am willing to say no. but i also am based on word of mouth and only have high end clients. that's how i can work from my home. they respect my space and call or email me asking when a good day or time would be. but i am not a high-volume shop so its a different business model entirely.
Scanner Danner's content is gold!
Great insights. Wow, that outro went mic-drop hard! 👏
Thanks for listening!
I graduated n.t.i. knowing how to use a scope.....i had to teach the vets how to use one....and what it does lol
I estimated £6,500 for an Ford EcoBoost engine today and the custoner wants the door seals gluing back in at the same time 😂 12:15
Couple things i watched that vid and yours came up right after. He said he charges by the hour, not flat rate. He said its a loss and drives poor quality if its flat rate. In addition, i agree he is using old software. When you look at where this guy is, he is in the country, so 40k a month and growing is based on where he is vs people around him. I would also wonder if he had any fleet accounts which is constant revenue stream even through winter. His 20k startup was by him self at a different location as he also mentioned. But thia vidwo makes it sound like its that location which i dont see that. Agree that putting in just shop equipment is over 20k. When he mentions electric he is talking electric cars, his team is retraining to gain that knowledge that is what got from his comment.
Nascar tech actually taught me alot and exposed me alot too state of the art scanners and labscopes....where they fell short in my mind....was real world....actually getting dirty.....and grinding it out....just my 2 cents
I fully agree with calling the rivian an abomination!
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Typical! This is what you get in that kind of format, its pretty, easy to digest and with little bites of info. But the real meat & potatoes are missing. The hard questions are not asked and the fellow who owns the shop does give the impression that he doesn't understand the questions or (this is from my experience & observation with people) he does not have the ability to actually LISTEN and therefore can not answer the question. You guys are correct, this is a misrepresentation about what it takes to start a shop. $20k? No way in heck!
More like a $150k to start of with!
The common man wouldn't understand "we do EEPROM work." So that's a nonsensical point.
Many things are just commonly said without being understood by the general public.
For example, "tune ups". When was the last time anyone did a tune up on a vehicle?
I would have said EEPROM work and then explained it so that it could be understood that we take on difficult repairs.
@@ChangingTheIndustry I just did a tune up the other day! We work on all the normal day to day cars but many people have classic drivers they like to keep alive. As hard as it is to get a good diagnostic tech it also is very hard to find someone that can properly tune a carburetor.
Doing oil change to engine swap just means you doing everything just because he didnt say wht you said ....hes basically saying he doesn't turn down jobs
you haven't heard of a Rivian r1t yet? that's the new, latest and greatest electric truck. they are engineered and designed really well from the research I have done on them
Looks interesting, but I'd be worried about quality.
@@DavidRomanKC Only time will tell on that one.
Id like to know how many miles it can go on one charge in winter. And what the hauling/towing capacity is. Ive seen them, they look cool, but I suspect they are just an expensive toy, and not a serious work truck.
Here in early 2024, Rivian looks like a candidate for BK. Stock price is around $10 a share, down from over $50 just 2 years ago. The company has never been profitable and burns through investor cash like a hot knife through butter. Good luck if you spend $100k on one of their trucks.
My shop is an EV and Hybrid specialist. As far as per hour rate mine is a lot better than a regular shop. For example I can make 1200 bucks with a few hours worth of work or make 3 grand in 3 hours worth of work. The only downside is that I do not get as much customer. The advantage is I have limited competition. I have survived with less than ten cars a month because each car on average is over a thousand dollars job
Makes me wanna go electric
@@nahkankone just don’t accept BMW , Mercedes, and Porsche hybrid. They are extremely difficult
He said he owns the property and then mentions a lease? Could he be leasing the building that was built on his property?
A lot of businesses do this. They'll have one LLC own the property and lease it to their auto repair LLC. If this guy is smart, he owns the land through a trust and leases it to the repair shop.
Yeah now you can get on youtube and watch scanner danner....but for me....that wasnt really an option....2008 nti graduate.....and proud of it....
Started my shop/ used car dealership with 14k to my name . Was not perfect but we made it work
I think many of us started that way, but looking back, the dangerous and liabilities faced?
There's a better way to go.
That sweet ad placement of o Reilly auto parts
🤣🤣🤣
You'll need to take it up with TH-cam.
I’m over 100k just in tools/equipment plus a 140k building, and I still need more. Lucky must just be lucky guy.
You dont have to spend thousands to service ac it just makes it a little easier. Most saftey systems will re initialize on use(sweep and center steering a few times should learn steering angle)its safe to say oh you need 10k for this ac machine or 5k for this scanner you can outsource what you cannot do( mobile programming) now an alignment rack and nice cameras/lasers worth every penny.you guys wanna make easy money? Get into accessories and services that dosent require crazy expensive equipment. Bed liners lights spoilers paint correction ceramic coating wraps(have some one cut them for you before you invest in a giant diecutter laser cut)wind shield repair learn paintless dent removal head light restoration light lens customization and custom led work. Learn how to fix small circuits( repair e prom mofset other board work) alot of this stuff makes a ton of money and only takes small investments. While its not swapping engines and doing brakes any one can do engines and brakes and suspension and theres not much money in it if you have to compete with shops that use illegal labor.moral of the story is basically your local 4x4 accessory shop is killing it while yall struggle🎉 its alot easier to sell someone something they want. I could go on😂
Would you guys do a review on Auto mechanics schools?
They're mostly all trash.
You mentioned everything is electric but didn’t recognize a Rivian in the background?
The video is over a year old. 🤣
They're prevalent now, but weren't at the time.
Why don’t you guy’s have the shop owner on the podcast?
We've reached out. But honestly, we spent almost 40 minutes criticizing him. I doubt he'd want to come on.
Hey asog! I welcome constructive criticism :). Let’s chat in person. I haven’t seen any emails or calls in my inbox. Looking forward to hearing from you gentlemen. Lucky@luckyautoshop.com.
@@luckysing2300 I think Lucas tried on IG but didn't press the issue.
We were also working on reaching out to UpFlip's sponsor with the hope of having them cover your travel to ASTE in September.
Would you be willing to tell us off on the podcast? 😁
@@DavidRomanKC If you guys somehow get my travel expenses for the trip covered. I’m all for it. I won’t be “telling you off” 😂. We will however dive deeper than the upflip episode with a healthy discussion. Hope to hear from ya soon. Il leave ya with a lil nugget of wisdom.
Aristotle famously wrote, "The more you know, the more you realize you don't know."
Hopefully Lucky gets on the podcast because it would be a great episode to listen too!
I get a kick out of the guy using software I used back in the early 2000's when I had my shop. I put in 40k back then in 2000 to start my shop. That was back in the iATN days. I started with just me, after year 3 I had 2 guys working for me doing the kinda numbers given in this video, By year 5 it was 3 guys, and double the numbers. Ended up selling that shop in 2007 due to divorce. For me, owning a shop as a tech first was quite a learning experience, thank goodness for places of knowledge of other shop owners back then on iATN. I personally wouldn't own an autoshop again. Went from fixing cars to fixing customers, and in reality towards the end my heart just wasn't into the hustle of it. Moved to the country in a little town. Work at VW dealership that is just 5 miles from my home. Nice simple life, hourly pay, all the training I want, and factory tooling.
Owning a shop can be rewarding, but it can be challenging as well!
@@ChangingTheIndustry True, but it is a completely different skillset from being a tech. As tech your keeping up with the technology, along with fixing cars. Owning/managing a shop your not only herding employee's, but also fixing people. You have to mold those people into understanding the service/value you offer to become a customer, and not just a consumer. Personally, I love working with my hands, and generally dislike people.. So there is that.. :)
And I love to put ranch dressing on all my food
So can you use this shopware software for a collision shop?
You could, It wasn't really designed for that but it would work.
The estimator within it aren't collision related so it would leave you typing more.
If it's a small collision shop, especially one that's not the "DRP model", just customer pay? It would work well!
Don't forget to mention that, there is no good aftermarket parts anywhere
About how long does it take to complete the scannerdanner course?
ScannerDanner is like no other platform you've seen! The content on TH-cam is usually around 30 minutes, some longer, some shorter.
The ScannerDanner premium content is in similar format but includes a forum and more detailed classes.
Some are longer form, but all easily digestible! It's enjoyable and entertaining content as well!
With the book, and watching every video - in one year you could be a much better technician!
@@ChangingTheIndustry Thanks! I'm actually buying his book this week. I'm currently enrolled in a Hybrid Electric Vehicle college course, with a diesel elective. Thank you very much, as anything that can help me get better. Also do you guys have a podcast? I have about 6 hours drive time though the week, and would love to hear you guys, especially since being a small shop owner is my ultimate goal.
I just watched that video and was smhing throhgh most of it but I almost feel like that was me 10 years ago 😵
Ford flex has the trans cooler and a/c condenser its so dumb...see lot of transmission fails for over heating
Love the video. I’m just answering the “why everybody hates tires” question. I live in a small county of >18,000 people, and there are 6 “tire shops” in my area. I’m a body tech by trade, only 1 body shop in my county and the owner doesn’t want any employees, so I drive 30 minutes to the next town over where I can make a paycheck. I see what money the shop brings in. In your opinion, what’s your take on a body shop? Is it a bread and butter deal like tires for example? Or not.
We might try to have a body shop owner on to talk about it.
Mosy body shops do insurance work. Insurance companies set the price they will pay. Body shops have to heavily pad their tickets to make money. Their tech labor is mostly illegal.ive worked at shops that handled alignments for several local body shops most come not fully repaired (suspension damage) and alot come with adas reprogrammed before the alignment was done(explain this one to me other than they are stealing adas jobs they arent doing. I mean how can you on a bad alignment right? If you cant do the alignment you arent doing the adas either atleast not before the alighnment) and ive explained this to the adjusters and my bosses bosses and the fleet managers but so long as the lights off they dgaf if they actually did it😂. In short body shops are crooks fck them.
The estimate to start no way! More like 100k absolute minimum is more realistic.
💯
Did he say "crispy" at 22:43? 🤣🤣🤣 Is he talking about chicken?
The shots were crispy. 😉
I saw this video and thought to myself 40k a month 😂 that’s nothing
I see 40k months and imma be freakin out! I get nervous at 90k months 😬
That electric truck is a Rivian.
Yeah, we figured it out. 🤣
@@ChangingTheIndustry only reason I knew was I watched an offroad recovery channel tow one off a trail out west.
They are awesome. Seth owns one. Much better than Tesla imho
Of course Seth has one. 🤣🤣🤣
I flagged someone's comment as spam by accident.
Sorry about that.... 😬
Fat fingers.
I stopped at 13:22 to make this comment. The comment you made was “He should say he does anything from oil changes to CAN BUS diagnosis” is where I disagree with you. This video is a marketing video to bring more customers in the door, not to bring technicians, or industry people. 99% of customers have no idea what CAN BUS diagnostics is. Hell, most service advisors don’t know what that is lol.
It seemed like a "you could do this too..." type of video. But, maybe you're right.
Oh, I wanted to add one more thing. "Lucky"? Yeah, in the gm forum world, "Master Tech Lucky" is a major insult for the kind of hacks that go ripping through a car, tearing up stuff, and somehow cobble it back together running. They're darn fast at flat rate, but you sure wouldn't want to go in after him and try to make it right.
🤣🤣🤣🤣 I'll have to remember that. I've hired lucky a time or two 🫣
Basically Electric Cars are in n the middle of being an only thing. So most people ain't about it yet. All due respect Electric Cars are Bad Ass, but how due we transition from Gas Emotion to the new Electric Emotion, I believe we are at that point.
He has over 20k in lifts.
You guys seem to have your heads up your asses.....
We've been told worse. 🤣
Helpful video thank you Changing the industry Podcast
👍
KNOWLEDGEABLE Changing the industry Podcast
From Nick Ayivor from London England UK 🇬🇧 ⏰️ 12:22
I saw this video....I just couldnt bring myself to comment.
I have $20,000 in 3 lifts
Same here!!! More if you bought them in the last year!
Rivians are bad ass, you better ask somebody.
He just got lucky..
🤣🤣🤣
Lets all be real here. Your making a killing off just parts with a commercial account. 30-50% of retail helps alot. Love my commercial account and I extend that savings to my customer, not scam them on retail vs benefits as a owner. My clients send others to me. 100% word of mouth.
Unfortunately, many owners follow a very similar trajectory.
That leaves two options - run the business in such a way its not profitable, simply getting by, and likely unable to sustain proper insurance. Maybe even be unable to properly support the client in the event of a failure....
OR
Run an inflated labor rate to make up the difference.
Now if you're a charity? Sure. Give away all you like.
But if you're a business? Don't subsidize the cost of repairing the clients car with the money that was supposed to feed your family.
It's standard knowledge and common practice that ALL businesses need roughly 50%-60% GROSS PROFIT MARGIN to be sustainable.
What you do with the 20% of it you keep for yourself? That's your business! Want to give it back to the client? Be my guest.
But I would bet $1000 on the fact your business likely isn't as healthy as you'd like to think!
Take me up on my wager?
Let's have the Institute perform a business analysis in your shop and review their findings with you on the show.
If it's healthy, you get 1k.
If it's not? You retract your statement.
No I work full time and do repairs on the side. Its getting to the point my side hustle is paying my than my $53k a year chef position. I just dont consider it morally right to charge people retail on parts, when shops price is discounted 30-50% on that begind the counter part. The old print invoice, hide discount on the invoice trick. It seems shady, you had no part in making that part or transportaion. Extending the discount to customers would be the ethical thing here. Its not charity, its honesty. Greed isnt good business practices. I also undercut on labor. Tuning and electrical to R&R. But I also select my jobs and turn alot down, as I need to upgrade some technologies. No Insurance, they sign wavers of liability. Only had to buy one chevy gauge cluster out of pocket in 25 years of working on cars. Ive turned down many shops as the pay is horrible compaired to cooking, when working for someone. Ford, toyota, mazda, chevy, trained, 8 years of race industry work pitcrew to nhra builds.
Oh man oh man.....
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@@ChangingTheIndustry your not changing anything in the industry bud. Your just picking people videos and talking shit. Lmao. Seem like a real deucher the more videos I play of yours. So sure you got all the answers. Whyd you get so offended and try telling me what to do retract my comment. You know its wrong but you hide behind a greedy ass industry and a shared idea that stealing is ok. Wont be clicking any of your shit talking videos cause you cant make original content, using others creagions to hold time on a platform. See it all the time. Have fun being better than everyone bud.
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Oh boy.....did you just prove my point to the tee.
Wow this sounds like two guys imposing their limiting beliefs on everyone else
Nope, just two guys who tried doing it the way shown in that video and figured out it doesn't work 🤣🤣🤣🤣
Love your videos. Very insightful. I have one and only one complaint. As I listen to your videos while I work in my shops all I can focus on is the mouth noises that come through while you are speaking. One episode someone had gum in their mouth and you can hear breathing and the wet slapping of your tongue breaking the pressure differential in your mouth when you pause your speech and start again. Very obnoxious. I guess my point is your mic is way to sensitive. Sorry to bring it up over something so trivial but it is hard to tune out.
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Appreciate the feedback! That's left in place for the ASMR fans that listen to David talk...
They say he puts them right to sleep.
As for me, I'll do my best not the breathe 😁
Lool. Voices are amazing. Should do radio. I think the mics are just so sensitive you can hear a fly have a blow out from across the room.
It's the loudness normalization. It gets the audio levels correct but brings EVERYTHING up, including lip smacks.
You guys seem to have your heads up your asses.....
Seems like we hit a sore spot 😉
@@ChangingTheIndustry nope....
I've gotta lot of sore spots....and yalls opinion ain't one....
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