ATI Articles

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Leadership

Toxic Employees

Over the past four decades, my passion has been helping shop owners grow. I believe profit matters, and trying to make 20 percent to 30 percent cash profit is a necessity not a luxury. Most shop owners get in trouble when three problems appear at the same time. Most of us do not get in trouble with one problem, but with a combination of multiple problems. A toxic employee is defined as one that pollutes the entire business and creates multiple problems in the blink of an eye. These problems can be very expensive to correct, and without a fat savings account you may not be even capable of proving your innocence.

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What Happened to the Dream?

Most of us who join the automotive industry at a young age end up spending our entire lives in the business. It just gets in your blood! Shop owners and technicians usually have a dream of achievement that is different for all of us. Some want to be the best, some want to be rich and others just want to be comfortable while helping others. All of these dreams require continuing education by investing in yourself, whether you are a tech or a shop owner.

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If you don’t care about customers, do you think your employees will?

Many years ago, Dale Carnegie wrote a book that became famous by helping us really care about other people. The book taught us the basics to really listening and what not to say if you wanted to win friends. Shop owners, in an effort to make real money, must focus as much on the customer as the car today. As a matter of fact, many times the customer is more broken than the car.

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The Care Feeding of Your Manager

In consulting with automotive shops across the country, I have talked to a lot of owners and one thing is very clear: when it comes to creating an environment for managers and other staff to flourish, most owners just don’t get it.We, as an industry, have not stepped up to the idea that managing an automotive shop is a profession.

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Marketing

If you don’t care about customers, do you think your employees will?

Many years ago, Dale Carnegie wrote a book that became famous by helping us really care about other people. The book taught us the basics to really listening and what not to say if you wanted to win friends. Shop owners, in an effort to make real money, must focus as much on the customer as the car today. As a matter of fact, many times the customer is more broken than the car.

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19 Ways To Stabilize Your Car Count

I want to share with you 19 ways to stabilize your car count. Look at this as a quick review without taking the time to dig very deep into each strategy. My objective is to help you take an inventory of what you are doing in your shop and focus on the strategies you are not currently using in your business that can help you stabilize your daily car count. This is accomplished by doing everything you can to retain customers and get them to come back even in a recession and in a time of reliable cars.

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Sales

Selling Maintenance to Women

Last year, I was invited to speak to 1,100 of the industry’s finest at the AAIA Town Hall Meeting at SEMA. The subject was “Why are we closing the hood on the $70 billion in untapped maintenance?” There are many issues preventing the flow of cash in our pockets; however, let’s first explore who is purchasing this extremely important service: women. Most men believe since they sleep with women, once in a while, they are mental giants when it comes to communicating with them. Our trainers have discovered this couldn’t be farther from the truth.

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How to Increase Average Repair Order

If the most difficult task in the automotive service world is getting customers to actually hop in the car and make that long journey into our shops, many would say that increasing the amount of the average repair order (ARO) would be second. Though it requires a combination of effective procedures and strong leadership, this process need not be as daunting as many would make it.

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Turning $4/Gallon Gas Prices into Continued Profits

I know a lot of you have been hearing the customers complain and grieve about today’s economy, how the cost of everything is increasing and that it leaves little or no money to put into their automobiles. Every time they have to go to the gas station or just drive by and see the prices posted, they are reminded of it. That, combined with just turning on the TV, is what fuels their woes.

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Will You Please Answer The Cash Register?

One of the most common complaints from shop owners is the need for more customers and more cars. Shop owners spend their hard earned money on a multitude of marketing ideas, but they forget to focus on the most important part of the marketing process.

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Maintenance: A Catch-and-Release Business

In December, we discussed how women have become the No. 1 buyer of maintenance. So this month, let’s focus on our sales process skills. I’ve co-developed the Relationship Marketing System (RMS) to help capture the estimated $70 billion in untapped maintenance.

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Parts & Labor Margins

Is Your Labor Apple Going Bad?

Many times during the course of a busy day I’ve started to eat lunch or a snack and I get interrupted. Have you ever taken a couple bites from an apple and have to put it down to take care of something? The problem is that when you come back, it has already started to turn brown and just doesn’t look as good as it did.

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Making Parts Profitable

Last month, we talked about netting 20 percent to 30 percent profit, and I shared a model that some shop owners have been able to accomplish. In that model, it required that your parts costs be 18.5 percent of your total sales. In order to accomplish this, you must hold at least 53 percent profit on your entire parts pool.

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The Automotive Landscape

The Six Ways to Stay a Top Shop

There are many shops in North America that are nominated for top shop awards, and many that go unmentioned but certainly not unnoticed. I would define a top shop as one in which it has become famous in the area by quality, integrity, relationships and differentiation from its competitors. Its sales would depend on the size of the market they are located in and could range from $500,000 to $3 million annually.

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Why Some People Always Make Money in the Service Business

Many of us have been surprised by the way this recession has affected our businesses. Who would have thought OEMs would go bankrupt and so many new car dealers would close their doors? Then for every independent shop we see experiencing increases in sales due to lack of new car sales, there is a shop located in a challenging area of high unemployment experiencing decreases in sales.

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Survive and Attain Success in a Bad Economy

This month I wanted you to hear from our head instructor, Matt Winslow, who has been in the trenches giving ATI oneday workshops across the U.S. and Canada.

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An Economic Forecast

Since we all know the joke about opinions, I have one like everyone else, and I’d like to share my opinion on the economy in 2009 with you. I have been through a few tough times since I joined the automotive brotherhood in 1971.

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The Economy Is Not The Boogeyman In Your Closet

Today I will let you decide if we are in a recession, examine where we currently stand on your recession plan and decide what we are going to do about it. I received a great e-mail from a shop owner upset that one of our earlier articles might be blaming you guys for the recession. Although I do not feel that way, perception is reality, so I want to certainly apologize if any of you felt the same way before we get started.

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You, Perhaps, and Not The Economy

Like many of you, I have had the challenge of working through many recessions in the automotive industry. Historically, it has always been good for us, as we watch the repair business go up as car sales go down. This recession has been more challenging as gas prices reduce mileage, which certainly has affected tire sales for most of the tire industry.

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Working Harder And Enjoying It Less?

You have successfully built a wonderful business with a great reputation. Everyone is proud of your accomplishments.Your family is very appreciative of the many hours it has taken you to build your business.Your customers love you for taking care of the safety of their families.Your associates have looked up to you for years and, for the most part, will follow you into any battle.

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Finding the Needle In A Field Of Needles

Everything is going great. The phone is ringing, we have customers coming through the door wanting work done on their cars and all is right with the world. Except, we don’t have enough technicians or maybe the right technician for the job.

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Let The Journey Begin

Most of us have encountered low points in our life when we thought there was no light at the end of the tunnel. Some of us put our heads down and fought to survive when many a mortal would have said we had no chance.You may have been that person and rose to become the top shop owner in your market.You may be presently fighting the battle to take you and your family to the Promised Land. You know - the land where all your dreams are fulfilled and your bank accounts are full of profits.

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Shop Bay/Tech Productivity

How to Increase Shop Productivity

I am certain most of you have read articles on how to increase shop productivity — and if tested, would ace the test. The real challenge is achieving 100 percent productivity during the majority of your year. My goal in this article is to remind you of something you used to do or help you add the missing ingredient that could help you net 20 percent to 30 percent cash profits.

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Shop Management

What Happened to the Dream?

Most of us who join the automotive industry at a young age end up spending our entire lives in the business. It just gets in your blood! Shop owners and technicians usually have a dream of achievement that is different for all of us. Some want to be the best, some want to be rich and others just want to be comfortable while helping others. All of these dreams require continuing education by investing in yourself, whether you are a tech or a shop owner.

Read the entire article in PDF format

Staffing And Hiring

Toxic Employees

Over the past four decades, my passion has been helping shop owners grow. I believe profit matters, and trying to make 20 percent to 30 percent cash profit is a necessity not a luxury. Most shop owners get in trouble when three problems appear at the same time. Most of us do not get in trouble with one problem, but with a combination of multiple problems. A toxic employee is defined as one that pollutes the entire business and creates multiple problems in the blink of an eye. These problems can be very expensive to correct, and without a fat savings account you may not be even capable of proving your innocence.

Read the entire article in PDF format

Customer Service

The Banana Theory: How Customers Spoil

Many fishing professionals feel bananas bring bad luck or a chemical imbalance to the fun times. I overheard one of our senior coaches, George Zeeks, relate The Banana Theory to spoiling our customers.

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