RR 347: Jonathan Ortiz of Foreign Affairs Auto – From Used Cars to Full Service

BIO:

Jonathan Ortiz is the son of Foreign Affairs Auto’s founders Frank and Gloria Ortiz. He has an MBA from Northeastern Boston and is currently the general manager of the shop. He is the brother of the two-time Olympic soccer player, Melissa Ortiz and she works at the marketing department. His passion is customer service and he got this passion to serve from his family. His family created the culture of giving what you can. He is joined by a talented team of managers, technicians, and service staff.

Talking Points:

  • Family business.
  • Jonathan has his MBA from Northeastern, Boston.
  • Jonathan was encouraged to go out on his own and get his education, but that he had an option to join the family business when he was ready if he wanted.
  • The company was a full-fledged used car dealer for years and after Johnathan and his Dad went to a management conference, they decided to change their business model to all service.
  • Foreign Affairs Auto’s focus and passion are on the customer.
  • Their culture is people first.
  • The entire shop went to the WorldPac conference this year.
  • Techs are getting at least 30 hours per year of technician training.
  • Having lost a new hire before they were set to arrive, Jonathan changed his approaches to new hires.
  • The business focuses on same day repairs because his mainly Euro vehicle competition ties up the car for multiple days. They do not offer loaners because of this. The Euro car owner expects the vehicle to in the shop for more than one day and this provides differentiation in the market.
  • Recently moved to 5 days a week schedule so the team can spend time with their families.

 

Shop Profile
Number of locations: 1
Total square feet of all facilities: 10,000
Partners: Frank & Gloria Ortiz
Years in industry: 14
Years business ownership: 36
Number of technicians: 5
Number of service advisers: 2
Number of lifts: 9
Number of bays: 10
Days open: Mon – Fri
Annual estimated volume: $2.8M
Technician productivity: 115%
Labor rate: $149
Effective labor rate: $127
Average repair order (ARO) $: 946
Average car count: 250
YTD gross profit percent: 59%
YTD net profit percent: 16%
Percent Repair vs Maintenance vs Other: 60/40
Technician training hours per year: 40
Service adviser training hours per year: 20
CEO training hours: 60+
Specialty: European Brands
Aftermarket association memberships: Bosch
Personal certifications: MB, BMW, Audi Factory Master Tech
Special accreditations: MBA
Shop management system (SMS): RO Writer
Completely paperless?; Yes
Digital Vehicle Inspection: AutoVitals
Website provider: Kukui
Primary supplier: WorldPac
Biggest challenges: Technician Shortage
Business coach: Elite Worldwide


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About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast; the only one of its type in the automotive aftermarket. Carm calls on his 35 years’ experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ path to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.