Plenty of auto repair shop owners know the feeling of a “good” year that somehow leaves no money in the bank. Host Kim Hickey lived that reality for more than 13 years. Her shop generated over a million dollars a year in sales, she worked seven days a week, and she still found herself short at the end of the month. The first episode of Maximum Octane tells the story of how she figured out what was wrong and what she changed.
This launch episode sets the tone for the entire podcast. Kim walks through how she entered the automotive industry, the expensive mistakes she made along the way, and why she now spends her time helping other owners make themselves “obsolete” in their own companies. She also introduces the idea that runs through every episode that follows: your employees are your internal customers.
What You Will Learn
- What this podcast is about, and what you can expect from it
- Changing high for a low altitude of the tires. The sad habit of ripping people off
- Renting a space in the middle of nowhere? Yes, the world needs me
- Learning the hard way. Making millions in sales and praying to the payroll gods
- The importance of being aware of what is going on in the world, and your associates’ world
- What internal customers are, and why do we treat them different from our external customers
How a Bad Service Experience Started a Career in Auto Repair
Kim’s path into the industry began on the wrong side of the counter. A service advisor sold her on a tire service her car did not need, and the experience stuck with her. That story is a useful reminder for every shop owner and service advisor listening: customers remember how they were treated long after they forget what they paid. A single dishonest recommendation can create a lifelong skeptic, or, in Kim’s case, someone determined to prove that auto repair can be done the right way.
For shops today, the lesson is about trust at the point of sale. Clear inspections, photos, and plain-language explanations give customers confidence that a recommendation is real. ATI has written about this in The Fastest Way to Build Trust With Your Customers and The Power of Transparency in Your Auto Repair Shop.
That kind of experience is more common than the industry likes to admit. Many drivers walk into a shop already braced for an upsell, because somewhere along the way they were sold something they did not need. Every shop pays for that reputation, even the honest ones. The good news is that a shop can turn the problem into an advantage. When customers expect to be pressured and instead receive a clear explanation, photos of the actual problem, and a recommendation sorted by urgency, the contrast is memorable. That moment is often when a one-time visitor decides to become a regular.
A practical way to build that trust is to separate recommendations into three simple buckets: what needs attention today for safety, what should be planned in the next few months, and what is simply worth watching. Customers appreciate being trusted with information, and they are far more likely to approve work when they understand the reasoning behind it.
Why Busy Does Not Mean Profitable
The heart of this episode is Kim’s honest account of “praying to the payroll gods.” Her shop was busy and sales were strong, but she was charging less than she should, carrying too much of the work herself, and leading without the skills she needed. Many independent owners fall into the same trap. High car count and long days feel like progress, yet gross profit, labor rate, and expense control decide whether the business actually pays its owner.
If this sounds familiar, start by looking at the numbers that matter most:
- Gross profit on parts and labor, not just total sales.
- Effective labor rate compared to your posted rate.
- Owner hours spent working in the business versus on it.
- Cash on hand after payroll, rent, and parts vendors are paid.
ATI’s articles My Shop Is Busy, So Why Am I Broke? and Four Reasons Your Auto Repair Shop Isn’t Profitable go deeper on these issues. Brian Hunnicutt also tackles pricing directly in Is Your Auto Repair Shop Undercharging for Its Services?
One reason this trap is so common is that sales are easy to see and profit is not. A full lot and ringing phones feel like success, and a big monthly sales number is satisfying to report. But sales do not pay the bills on their own. If parts are priced too thin, if technicians are paid for hours that are never billed, or if the owner discounts every time a customer hesitates, the business can grow its way into a deeper hole. More cars at a loss simply means losing money faster.
Another hidden factor is the owner’s own time. When an owner works 70 hours a week to keep the shop running, that labor rarely shows up as a cost on the financial statement. The business looks healthier than it really is, because it depends on unpaid work from the person at the top. A healthy shop should be able to pay a manager to do what the owner is doing and still produce a profit. If it cannot, the business model needs attention, not just more effort.
Working On the Business Instead of In It
Kim credits coaching with helping her learn to run her shop as a business rather than a job. The resource she recommends in this episode, Michael E. Gerber’s The E-Myth Revisited, makes the same argument: most small businesses struggle because the owner is a skilled technician doing technical work, not an entrepreneur building systems. Gerber’s framework is a staple for shop owners for good reason, and you can learn more about it at E-Myth.
Making yourself obsolete does not mean walking away. It means building processes, hiring the right people, and developing leaders so the shop can perform without the owner touching every repair order. Mike Bennett expands on this transition in Learning to Get Out of Our Company’s Way, and ATI’s 5 Ways You Should Be Working on Your Shop, Not in It offers a practical starting point.
Gerber’s core idea is that most small businesses are started by someone he calls the “technician,” a person who is good at the work itself. That person often assumes that knowing how to do the work means knowing how to run a business that does the work. In auto repair, this shows up as the talented mechanic who opens a shop and quickly finds himself buried in estimates, payroll, parts returns, marketing, and customer complaints, with no time left to fix cars or think about the future.
The way out is to document how things should be done and teach other people to do them. Gerber compares this to building a franchise prototype, a business so well organized that it could be replicated by someone else. Even if you never plan to franchise, building your shop as if you might forces you to create the systems, training, and roles that free you from daily firefighting. Start with the processes that interrupt you most often, write them down, and hand them off one at a time.
Paying Attention to Your Associates’ World
Around the 22 minute mark, Kim talks about staying aware of what is happening in the wider world and in the lives of the people who work for you. Technicians and advisors bring their families, finances, and stress to work every day. Leaders who notice those pressures can respond with flexibility and support before small problems turn into turnover.
This kind of awareness does not require prying into anyone’s personal life. It simply means noticing when a dependable technician starts arriving late, when an advisor seems distracted, or when someone who usually jokes around goes quiet. Those changes often signal something happening outside the shop, such as a sick family member, a financial worry, a divorce, or burnout. A short, private conversation that starts with “I’ve noticed you seem a little off lately, is everything okay?” can make a person feel seen and supported.
Leaders who stay aware of the wider world also make better business decisions. Changes in the local economy, fuel prices, interest rates, and vehicle technology all affect car count and customer behavior. Owners who pay attention can adjust staffing, marketing, and inventory before those changes hit their numbers.
What Internal Customers Are and Why They Matter
The episode closes with the concept that gives Maximum Octane its point of view. Most shops work hard to please the people paying the bill, but treat their own team as an expense. Kim argues that employees deserve the same respect, communication, and follow-through as external customers, because they are the ones delivering the customer experience. When internal customers feel valued, retention improves, training sticks, and customers feel the difference at the counter.
This idea connects to broader workplace research. Gallup’s State of the Global Workplace report tracks how few employees feel engaged at work and how much that costs organizations in lost productivity. In a small shop where every bay counts, an engaged team is a real competitive advantage.
Think about how most shops treat a paying customer. They greet them warmly, explain things carefully, follow up after the visit, and work hard to fix any problem. Now think about how the same shop treats its technicians. Too often, communication is rushed, feedback only comes when something goes wrong, and frustrations are vented on the team rather than addressed with them. The internal customer idea asks owners to close that gap.
In practice, treating employees as internal customers might mean holding regular one-on-one meetings, explaining the reasoning behind changes, providing the tools and training people need, recognizing good work in specific terms, and following through on promises. It also means listening to complaints with the same patience you would show a customer, because unresolved frustrations inside the shop eventually show up at the front counter. When people feel respected, they treat others with respect, and that chain reaction reaches every customer who walks in.
Why Maximum Octane Looks Outside the Auto Industry
Kim also explains why the show features guests from many fields. The automotive aftermarket often talks only to itself, which means owners miss ideas from hospitality, finance, coaching, and other industries that have already solved similar problems. Upcoming episodes bring in a former Disney leader, tax and insurance experts, coaches, and successful shop owners, all with lessons that translate directly to the shop floor.
Other industries have spent decades studying problems that auto repair shops face every day. Hospitality has refined the art of the welcome and the recovery from a bad experience. Retail has studied how people make buying decisions. Healthcare has worked out how to explain complex, worrying information to anxious people. Financial planners have developed ways to talk about money without making clients defensive. Each of those lessons can be adapted to a service counter.
That outside perspective also helps owners question habits that have simply been passed down. Many practices in auto repair exist because “that’s how it’s always been done,” not because they serve customers or employees well. Listening to leaders from other fields is a simple way to spot those blind spots and try something better.
Signs You Might Be Doing It All Wrong
Kim’s story resonates because so many owners recognize themselves in it. If you are not sure whether your shop is on the same path, a few warning signs are worth checking honestly. None of them mean you are failing, but each one suggests the business is relying on effort rather than systems:
- You cannot take a week off without the shop’s numbers dropping or the phone ringing nonstop.
- You make most pricing decisions at the counter, often based on how the customer reacts.
- You do not know your gross profit percentage on parts and labor without looking it up.
- You hire when someone quits rather than recruiting continuously.
- Your team brings every problem to you, even small ones they could solve.
- Payroll week causes stress even though sales seem strong.
If several of these sound familiar, you are in good company. Many of the most successful owners in the industry once checked every box on this list. The difference is that they decided to get help, learned how to run the business side, and built teams that could carry the load. ATI’s How to Avoid the Biggest Mistake Shop Owners Make is a helpful next read.
Put This Episode to Work in Your Shop
- Pull your last three months of gross profit by parts and labor and compare them to your total sales.
- List every task you personally handle each week and mark which ones someone else could own with training.
- Schedule one conversation this week with a team member about their goals outside of work.
- Pick up The E-Myth Revisited and read it with your management team.
If you want help building the systems and leadership Kim describes, schedule a Shop Strategy Session with ATI and get an outside look at where your shop stands.
Frequently Asked Questions
Why is my auto repair shop busy but not making money?
A busy shop can still lose money when pricing, labor efficiency, and expenses are out of balance. Common causes include a labor rate set below what the market supports, parts margins that are too thin, technicians paid for hours that never get billed, and frequent discounting at the counter. Another hidden factor is unpaid owner labor that props up the business. Review gross profit on parts and labor, effective labor rate, and cash after payroll every month, not just total sales, to see where the money is going.
What does it mean to treat employees as internal customers?
It means giving your team the same respect, communication, and follow-through you give paying customers. In practice, that looks like regular one-on-one conversations, explaining the reasons behind changes, providing the tools and training people need, recognizing good work specifically, and keeping your promises. The logic is simple: employees deliver the customer experience. When they feel valued and supported, they are more likely to stay, perform well, and treat customers the way you want them treated.
How can a shop owner start working on the business instead of in it?
Start by listing every task you handle in a typical week and marking which ones someone else could own with training. Pick the task that interrupts you most often, write down how it should be done, and hand it off to one person with clear expectations. Repeat that process steadily. At the same time, block a few hours each week away from the counter to review numbers, plan, and develop your people. Those protected hours are where the business side actually gets built.
Is The E-Myth Revisited worth reading for auto repair shop owners?
Many shop owners find it valuable because it describes a pattern they recognize: a skilled technician opens a business and ends up buried in work that has nothing to do with fixing cars. The book explains why that happens and makes the case for building documented systems so the business can run without the owner doing everything. It is a quick read, and many owners read it together with their managers to start a conversation about roles and processes.
Resources and Links From This Episode
- Book: Michael E. Gerber, The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It
