When Your Auto Repair Shop is Running on Empty: Case Study: California [E121]
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Are you struggling to make your auto repair shop profitable? In this podcast, Coach Chris Cotton shares his experience working with a struggling auto repair shop in California. The shop was making $0 despite being a $3 million a year shop, and the owner had $100,000 in cash set aside but knew that something bad would happen if they didn't take action. Coach Cotton discovered that the shop had a low parts margin, underperforming labor margin, and low technician productivity. To turn things around, he suggested increasing prices, slowing down the car count, and hiring more service advisors. However, the owner was not willing to invest in the changes suggested by Chris. The most valuable lesson from this podcast is the importance of accountability and making tough decisions, even if it means letting go of friends or family members who are not contributing to the success of the business. Chris emphasizes the need for continuous learning and growth to take your auto repair business to the next level.
Introduction [00:00:06] Introduction to the podcast and its purpose.
Struggling Auto Repair Shop [00:00:59] Discussion of a struggling auto repair shop in California, including its potential, issues, and missed opportunities.
Managing Car Count for Success [00:10:01] Importance of managing car count for success, reducing car count, and increasing technician productivity in a busy shop.
Increasing pricing and slowing car count [00:11:07] The coach discusses how the struggling auto repair shop in California needed to increase pricing on oil changes and smogs to survive and slow down the car count to do a better job.
Accountability and letting go of employees [00:13:00] The coach talks about how the shop had an accountability problem and identified employees that needed to be let go, but they were friends of the family, and they didn't have it in their heart to do it.
Hope versus faith [00:14:09] The coach talks about how the owner had hope but wasn't willing to have faith, and how he believed in the owner, but unfortunately, the owner didn't believe in himself, and the shop is probably out of business at this point.
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Connect with Chris:
chris@autofixsos.com
940.400.1008
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Youtube: https://bit.ly/3ClX0ae
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