We must teach our people ‘Where the Money Goes’. There is a great podcast episode with shop owner Patrick McHugh, HERE. You will find a four-page download handout that you can use in presentations to your people, or go to our DOWNLOADS page to find it along with other important documents.  Many misconceptions exist among employees that all the money earned flows directly into the owner’s pocket.

Patrick and I shared our passion for teaching our people/team about the profit or loss statement or ‘Where the Money Goes.’ Costs like wages, real estate taxes, lease/mortgage, utilities, benefits, fees, insurance, maintenance, training, marketing, subscriptions, and systems, among others, absorb the gross profit made on the sale. The net result is profit before Uncle Sam’s taxes.

Sharing the fundamentals of managing Net Profit is vital. Profit is not a dirty word. Every business must make a profit; if not, you’ve just got a hobby. To the degree that owners make a strong profit, the company can survive or strive. It should be something everyone strives for. It allows new equipment, wage increases, business expansion, emergency funds, and security.

I think of Business by the Numbers Podcast with CPA Hunt Demarest. Hunt is on our Aftermarket Radio Network, and he helps shop owners better grasp their finances and money disciplines.

Please learn as much as you can to manage your expenses, know industry benchmarks, and review your gross profit margins because all costs are paid from the gross profit you generate.

Don’t forget to go to our classroom page on the website to see a group of episodes on this specific topic.

What is it like being married to a shop owner and having your own career outside of the automotive industry? Recorded Live at the Transformers Summit, we are with Joe Bennecoff, husband of shop owner Nichole Bennecoff, and Jennifer McHugh, wife of shop owner Patrick McHugh. It’s time to hear from the spouse’s perspective.

Joe Bennecoff, Husband of Nichole Bennecoff, Subie Guys, Traverse City, MI.

Jennifer McHugh, Wife of Patrick McHugh, Bimmer Rescue, Richmond, VA. Patrick’s previous episodes HERE.

Show Notes

• You must give a fair amount of time, respect, motivation, and advice to your spouse to be able to contribute to each other’s success.
• Give and take, work it out, and compromise.
• Having a consistent conversation about what each day and how things have been during the day, sharing, enlightening each other
• Knowing what your spouse is going through in their business and help them overcome difficult times is important.
• As complicated and beautiful as relationships are, it’s constant work when you’re adding a layer of being supportive of their business. It does add challenges, but it also adds a lot of benefits and amazing parts of the relationship
• Figuring out your role, knowing when to be quiet, knowing when to speak up, and giving them their space.

Connect with the Podcast:

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Important Books

Check out today’s partners:

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NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at NAPATRACS.com

Patrick McHugh always tinkered with ‘stuff’. His dad bought an ’85 BMW. They learned all about that car together. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the CAR.

At 15 years old he started working in an airport, doing odd jobs, to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license

Patrick attended Purdue University where he studied aeronautical technology. He kept flying and earned his instrument license and became an instructor. He loves to teach.

As fate would have it, he became a pilot upon college graduation from Trans State Airlines a regional carrier for United. He was based in Richmond Virginia. With normal pilot downtime, he continued to tinker with BMW’s.

He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home. There were too many cars in the driveway, so he had to decide to stop or go into business.

Bimmer Rescue was created in 2008 in Richmond Virginia and generates a big portion of its business through referrals. They earn their business through their professional service and attention given to each customer.

Patrick’s goal is to develop a relationship with BMW, Mini, Audi, and Volkswagen owners that allows them to get the maximum amount of value from their vehicle rather than buying a new one. Listen to Patrick’s previous episodes HERE.

David Askwith, Managing Director, Auto Stream Car Care, MD. David oversees all of the daily sales, operations, personnel and marketing functions.  Responsible for six locations, with 39 bays and annual revenue of 9.4 million dollars.  Responsible for 11 direct reports with a company of 53 employees.

Jon Kloosterman, Director of Operations WestSide Auto Group, Zeeland, MI, 3 Locations. Jon started in the Automotive Industry in 2008 as a General Service Technician for Westside Auto Group. In 2012 he became a full time Service Advisor as Westside Auto Group expanded their original location from 3 to 7 bays. He has been part of Westside Auto Group’s growth process holding Manager positions in multiple locations. In 2020 he became the Director of Operations for what is now a 3 location operation that serves communities in West Michigan. He holds multiple ASE Certifications and has had the opportunity to serve on multiple different panels in West Michigan’s Independent world.

Key Talking Points

• Transformers Institute- Dan Taylor stood on a table about “Transformational Coaching”  
• Annual emotional intelligence review- what are your accomplishments? What are your misses? What do you want to do better? Obtain their feedback and learn about the goals they want to achieve. All-encompassing. “Sitting on the same side of the table together.” Employees feel a part of the business processes/procedures. Ownership of their own growth.  Let people write their own story, this will be the easiest path for them and you.  Don’t push a square peg round hole. Leaders encourage feedback.  
• Practicing active listening: “Unpack” what people say.  Get used to saying, “What did you mean when you wrote XYX” or “Can you please expand on this statement.” Listening doesn’t always mean you sit quiet, you also guide them along the way.  
• As an owner take notes and start the employee on their goal paths. 
• Goal posters- dreams and visions. Walk alongside your employees.  
• Believe it will work before you implement it. Listen to what your coaches and coaching groups are saying. Start with the employee you’re most comfortable with first.  
• “Write your own story” to grow in the shop

• A special thanks to Patrick McHugh, David Askwith and Jon Kloosterman for their contribution to the aftermarket.

• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

Facebook   Twitter  LinkedIn   Instagram  Youtube   Email  

Mobile Listening APP’s HERE

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

Buy Carm a Cup of Coffee 

This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?

Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day.

Broadly helps you automatically request reviews so that your customers can promote your business with just one click.

When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review.

Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop.  Visit www.getbroadly.com/chat to learn more.

Patrick McHugh always tinkered with ‘stuff’. His dad bought an ’85 BMW. They learned all about that car together. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the CAR.

At 15 years old he started working in an airport, doing odd jobs, to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license

Patrick attended Purdue University where he studied aeronautical technology. He kept flying and earned his instrument license and became an instructor. He loves to teach.

As fate would have it, he became a pilot upon college graduation from Trans State Airlines a regional carrier for United. He was based in Richmond Virginia. With normal pilot downtime, he continued to tinker with BMW’s.

He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home. There were too many cars in the driveway, so he had to decide to stop or go into business.

Bimmer Rescue was created in 2008 in Richmond Virginia and generates a big portion of its business through referrals. They earn their business through their professional service and attention given to each customer.

Patrick’s goal is to develop a relationship with BMW, Mini, Audi, and Volkswagen owners that allows them to get the maximum amount of value from their vehicle rather than buying a new one. Listen to Patrick’s previous episodes HERE.

Key Talking Points

• What drove you to do this?Covid has created some tough times at our shop
• Being transparent
• Where does the money go when a customer pays
• Showed his employees where the money goes, some were shocked
• Concerned that his employees had a ‘gold mine’
• Is there a prerequisite to do this exerciseYour books have to be legit
• You gotta have Quickbooks or other accounting software
• Can’t inflate your numbers or cooking your books
• You want to use accurate good data or it won’t work
• Profitability for DummiesOnce I dived into my numbers and understand each one, it’s changed my business and changed my life
• Most people are not super great with money
• Profit and Loss StatementEach envelope is a cost on where expenses go on $100 repair billParts Cost
• Labor
• Owners Pay
• Marketing
• Sales & Support Costs
• Other Expenses
• Rent
• GM and Sales Support
• Credit Card fees
• Training & Professional Development
• Insurance
• Customer Transportation
• Sublet
• Utilities
• Net Profit means to me…Security
• Livelihood
• Growth
• Disaster
• Salary Increases
• New Equipment
• Safety
• Do this exercise once a year
• Respecting the return on sales numbers.

Download slides used in the presentation. Click Here.

Resources:

• A special thanks to Patrick McHugh for his contribution to the aftermarket.
• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

Facebook   Twitter   Linked In   Email

Mobile Listening APP’s HERE

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

Buy Carm a Cup of Coffee 

This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

This episode is brought to you buy Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

• Guest Host – Patrick McHugh from Bimmer Rescue, Richmond, VA
• Patrick McHugh PodOgraphy
• The $100 Exercise
• 600th Episode Milestone of Remarkable Results Radio
• Virtual Tour with Jerry Kezhaya, The Auto Shop, Plano, TX
  • 32,000 sq foot shop
• Fortune
• Trivia on Buick Port Holes

Patrick McHugh always tinkered with ‘stuff’. His dad bought an ’85 BMW. They learned all about that car together. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the CAR.

At 15 years old he started working in an airport, doing odd jobs, to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license

Patrick attended Purdue University where he studied aeronautical technology. He kept flying and earned his instrument license and became an instructor. He loves to teach.

As fate would have it, he became a pilot upon college graduation from Trans State Airlines a regional carrier for United. He was based in Richmond Virginia. With normal pilot downtime, he continued to tinker with BMW’s.

He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home. There were too many cars in the driveway, so he had to decide to stop or go into business.

Bimmer Rescue was created in 2008 in Richmond Virginia and generates a big portion of its business through referrals. They earn their business through their professional service and attention given to each customer.

Patrick’s goal is to develop a relationship with BMW, Mini, Audi, and Volkswagen owners that allows them to get the maximum amount of value from their vehicle rather than buying a new one. Listen to Patrick’s previous episodes HERE.

Key Talking Points:

What do you do for fun?

• Patrick’s definition of fun is Race Bar. 
• He loves anything that has a motor in it.
• Loves to have fun and loves to see people smile.

Any great advice that you still follow today?

• The best advice would be to just “Be there or be around”
• Get off the things you are doing and be around especially around your kids and family.

How did you decide to become a shop owner?

• The county forced him to become a shop owner. 
• Patrick was a shade tree mechanic in the backyard and he has 8 cars in the driveway. 
• The county mailed him to get the cars out of there.

Do you still have the fire you had when you first started?

• He still has a lot of passion in his shop and people see his drive. 
• He just drinks his cup of coffee and kicks butts.

Message to yourself 10 years ago

• Listen to his peers and seniors, use their wisdom. 
• Don’t fall into the pits that other people have fallen in. 
• Watch/Listen to Carm’s Podcasts

Manage work-life harmony

• Always turn the switch off at 5 O’Clock or 5:30 latest. 
• Other shop owners literally live in their shops and I have decided that’s not going to be me.

Biggest learning moment

• Covid-19, we changed not just our operations but our budgeting specially in interacting with our clients.

Community is everything 

• We are very active in doing community art shows. 
• We put on huge parties as we bring in artists to show. 
• We mix family and clients together. 
• Stem classes for kids

A major pivot in your business

• Covid-19, it changed us and pushed us to be a tier above everyone else. 

What drives you?

• Internally driven 
• Kids and family drives him.

If I asked a good friend or peer what is the secret to your success what would they say?

• People would say that Patrick draws people, he’s magnetic and always does the right thing even if it doesn’t always feel good. 
• Loves to help people.

Any secrets to ‘time suck’?

• He struggles with this. 
• He writes his goals before the year starts. 
• Teach his daughter to think objectively. 
• Be a better husband. 
• He has a power-list ensuring himself always finishing up tasks and goals.

What are you doing to put the Customer first in your business?

• We ask very important questions and we listen! 

Top three most important needs to open a shop?

• Coaches
• Finance 
• Training

Strong teams always win

• Pay-plans. 
• Teams are paid as teams. 
• Techs that have chemistry and could work well together. 
• The team also picks which new hire to take.

A secret to a good job interview?

• The questions and listening just like customer service. 
• Asking the right questions

Resources:

• Thanks to Patrick McHugh for his contribution to the aftermarket’s premier podcast.
• Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
• Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP’s HERE
• Find every podcast episode HERE.
• Every episode segmented by Series HERE.
• Key Word Search HERE.

Be socially involved and in touch with the show:

Facebook   Twitter   Linked In   Email

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

Buy me a coffee

Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future.

Learn more about TRACS Enterprise and the hundreds of other benefits NAPA offers. Talk with your servicing NAPA store or visit, www.NAPAAutoCare.com.


 Your Learning Curve Never Sounded So Good

Resources:

• A special thanks to, Frank Leutz, Patrick McHugh, John Gustafson and Steve Ford for their contribution to the aftermarket.
• Books Page HERE
• Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

RepairPal. Many of our industry’s high-quality shops have gone through an evaluation with an independent automotive team to ensure their techs are trained, they use the right tools, and their customers are happy. In fact, over 2,200 repair shops have met these requirements, have become RepairPal Certified and are getting new customers every month.

Why has the number of RepairPal Certified shops grown so much? These shops are proud to have passed the certification and value the new customers they’re getting, both from the 5 million monthly visitors to RepairPal.com and their partnerships with CarMax and USAA. Certified shops can cancel at any time, so RepairPal works hard to produce value for them. Learn more at repairpal.com/shops to learn more.

Patrick McHugh always tinkered with ‘stuff.’ His dad bought an ’85 BMW when he was 14 when he noticed Patrick was running out of things to tinker with. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the car. At 15 years old, Patrick started working in an airport, washing planes, and mowing grass to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license. Patrick attended Purdue University where he studied aeronautical technology. He kept flying, earned his instrument license, and became an instructor. He discovered a passion for teaching. As fate would have it after graduation, Patrick became a pilot for Trans State Airlines, a regional carrier for United. He was based in Richmond, Virginia,

With normal pilot downtime, he continued to tinker with BMW’s. He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home.  Cars were lining up in the driveway, so he had to decide to stop or go into business. So in 2011, he dove in head first and started Bimmer Rescue! Patrick has a real passion for the industry; not just for the day to day, but for the future as well.  He teaches STEM classes for teenagers to show them career opportunities in the auto industry, hosts Women’s Car Care Clinics, and even has regular Art Shows in his shop’s gallery to support local artists.  Patrick enjoys trying to change auto repair for the better and loves the great opportunities this industry offers! Listen to Patrick McHugh’s previous episodes HERE.

Key Talking Points:

Scoreboard “The Board”

• Located back of the shop.
• Broken down in terms of hours- hours turn into dollars, scoreboard meant to be in ‘technician language’.
• A grid that flows from top to bottom: Customer name and car.
  • Incoming work (techs can see how many cars are waiting to be worked on and what’s next).
  • Once tech gets car keys they move the card to “In Diagnosis”.
  • “On hold” Done being evaluated, quote sent to the office waiting for a sale to go through or parts.
  • “Ready for work” Tech’s work as a team with who gets each job, dispatch themselves.
  • Performance tracking on other side of the board- Daily and monthly goals listed.
• If there is a hole in the board, something is holding up the program.
  • Can see where shop needs to improve with processes.
  • Improved communication and culture between office and the back of the shop.
  • Scheduling mix of cars during the week to keep the flow.
• Feedback loop program for the future.
  • PID Controller- Portion Integral Derivative (portion makes the change, integral tunes the change, derivative makes it smooth)  .
    • Example cruise control and thermostat in the home.
    • Wants shop to always be making changes and adjusting those changes while looking ahead.

Resources Mentioned:

• Link to the ‘BOOKS’ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
• Link to Bimmer Rescue Website HERE
• Patrick’s Episode 266 Link HERE.
• Thanks to Patrick McHugh for his contribution to the aftermarket’s premier podcast.
• Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

Be socially involved and in touch with the show:
Facebook   Twitter   Linked In   Email    Events    Speaking

This episode is brought to you by Federal-MogulMotorparts and Garage Gurus. With brands like Moog, Felpro, Wagner Brake, Champion, Sealed Power, FP Diesel and more, they’re the parts techs trust.  For serious technical training and support – online, onsite and on-demand – Garage Gurus is everything you need to know. Find out more at fmmotorparts.com  and fmgaragegurus.com

BIO:

Kim Auernheimer, AAM is the Co-Owner & Business Manager of CS Automotive in Brentwood, Tennessee. CS Automotive was opened in October of 2006 in the back of a warehouse and now they call a 6,400 square foot, 10-bay shop home.  Prior to joining her husband Rob in the business on a full-time basis, Kim had a career in Commercial Real Estate and Property Management. In July of 2011, she stepped out from the background of the business and joined her husband in the venture of creating an industry-leading standout

Kim continuously seeks out training for her and her entire team and put the teachings to use. Her belief in industry education has been a large influence on how much success and growth they have had over the last few years.  She has a passion to improve the reputation of the Automotive Repair industry working alongside other shop owners and industry leaders to improve the overall experience of the customer from the moment they make that first call to the shop until they drive their car off the lot instilling transparency and developing trust during the entire process.

In 2017, she obtained her Accredited Automotive Manager (AAM) designation. This is a result of 120-credit hours of coursework in several core competencies including leadership, marketing, customer relations, accounting, and several other areas of automotive repair business management. Listen to Kim’s Episodes HERE.

Kathleen Jarosik from Xpertech Auto Repair in Englewood, FL, began her career in the automotive field in late 2003 when she and her husband decided to purchase their own shop and relocate from Florida’s Atlantic Coast to the beautiful Gulf Coast.

Kathleen spent much of her time in the background, managing the payroll, accounts payable and paperwork. She was involved with the operations of the business as well as being a part-time stay at home mom to her two daughters, who are now 16 and 12.

In 2009, after divorcing, Kathleen purchased the shop from her former husband and began to run it as her own. Shortly afterward, she became a Napa Auto Care center and utilized their extensive benefit and training network to learn and grow her business.

Looking back, Kathleen believes her NAPA decision was one of the most pivotal business decisions she has made to date. The benefits have been game changers and over the years have taught her how to become a better manager, leader, and steward in her community. In 2015, Kathleen became an ASE certified Service Consultant (C1).

Her shop had shown consistent growth of around 5% year to year but since partnering with her business coach she has increased considerably more than 10% each year.

Kathleen looks forward to becoming more involved in the industry as a whole as well as continuing to run her repair shop and being involved in more community activities in her town. Listen to Kathleen’s Episodes HERE.

Key Talking Points

• Find harmony between home and shop. Each area prospers if there is harmony in your life.
• Delegation
  • Let your people do what they were hired to do.
  • Get your people to ‘discover their strengths’
  • Kim is not calling the shop when she travels. It took a long time to get there, but she knows that is important to allow your team to blossom and flourish that also builds scale in your business.
  • Kim has gotten to the level that they can stop working 12 hour days and start working ‘part-time’. She still has guild being away from the shop.
• These shop owners are all mothers and the challenge to wear the mom hat, the parent hat and the business owner hat is hard work.
• Every business goes through stages and a big factor in that growth is having the right people on your team.
• Each of these women has a business coach that helped guide them through change and continuous success.
• What’s working?
  • Culture.
  • People’s dedication.
  • Strong systems and processes allow you to scale and deliver a consistently exceptional customer experience.
• Go back and visit your excitement when you started. Find that mindset. Market like you are new business.
  • Celebrate your wins.
• Embrace the changes that are coming.
• Was there a turning point in your business that made a difference.
  • Maryann. She wanted her business to be sustainable.
    • In the beginning just being able to take a paycheck home was a challenge, but keeping an eye on the goal will help you make important decisions to grow and sustain the business.
  • Kathleen. She hired a business coach who gave her the courage to step forward. She did a women’s car care clinic that ultimately led to her first Women In Auto Care meeting. That is when she realized she was not a unicorn and there were other female shop owners that inspired her.
    • Reach out and find a mentor.
    • Communicate with your team. Both ways. They need to understand your vision and you need to understand their life and goals.
  • Kim. Went to her first WorldPac training expo when she was in a tough financial situation. A light bulb came on. She is naturally competitive so she and her husband Rob decided they were going to be one of the best shops in the United States.
    • Being the best is a state of mind.
• Building your culture
  • Maryann. It started with building their core values.
    • No one was going to care more about the customer than them. It was part of their brand.
    • You act according to your beliefs (core values)
    • Develop your team.
  • Kim. It starts with you.
    • It will become contagious.
    • She dressed for success every day.
    • Create your vision and share it with everyone.
    • Get help. Networking. 20 group. Business Coach. CEO training.
  • Get involved to solve your problems through networking and gaining knowledge.
  • Some shop owners don’t know what they don’t know.
  • Kathleen had an eye-opening that she did not have to stand inside her box. Once she stepped out her business blossomed.
  • Maryann says it starts with self-assurance.
    • Your own confidence
• Join associations to build your support network
• Encourage the next generation. Help them.

Other Resources:

Patrick McHugh Episode Mentioned (Pivot)

Be socially involved and in touch with the show:
Facebook   Twitter   Linked In   Email    Events    Speaking

This episode is brought to you by Federal-MogulMotorparts and Garage Gurus. With brands like Moog, Felpro, Wagner Brake, Champion, Sealed Power, FP Diesel and more, they’re the parts techs trust.  For serious technical training and support – online, onsite and on-demand – Garage Gurus is everything you need to know. Find out more at fmmotorparts.com  and fmgaragegurus.com



The Panel:

Kim Auernheimer, AAM is the Co-Owner & Business Manager of CS Automotive in Brentwood, Tennessee. CS Automotive was opened in October of 2006 in the back of a warehouse and now they call a 6,400 square foot, 10-bay shop home.  Prior to joining her husband Rob in the business on a full-time basis, Kim had a career in Commercial Real Estate and Property Management. In July of 2011, she stepped out from the background of the business and joined her husband in the venture of creating an industry-leading standout. Kim continuously seeks out training for her and her entire team and put the teachings to use. Her belief in industry education has been a large influence on how much success and growth they have had over last few years.  She has a passion to improve the reputation of the Automotive Repair industry working alongside other shop owners and industry leaders to improve the overall experience of the customer from the moment they make that first call to the shop until they drive their car off the lot instilling transparency and developing trust during the entire process. In 2017, she obtained her Accredited Automotive Manager (AAM) designation. This is a result of 120-credit hours of coursework in several core competencies including leadership, marketing, customer relations, accounting, and several other areas of automotive repair business management. Listen to Kim’s Episodes HERE.

Patrick McHugh always tinkered with ‘stuff.’ His dad bought an ’85 BMW when he was 14 when he noticed Patrick was running out of things to tinker with. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the car. At 15 years old, Patrick started working in an airport, washing planes, and mowing grass to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license. Patrick attended Purdue University where he studied aeronautical technology. He kept flying, earned his instrument license, and became an instructor. He discovered a passion for teaching. As fate would have it after graduation, Patrick became a pilot for Trans State Airlines, a regional carrier for United. He was based in Richmond, Virginia,

With normal pilot downtime, he continued to tinker with BMW’s. He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home.  Cars were lining up in the driveway, so he had to decide to stop or go into business. So in 2011, he dove in head first and started Bimmer Rescue! Patrick has a real passion for the industry; not just for the day to day, but for the future as well.  He teaches STEM classes for teenagers to show them career opportunities in the auto industry, hosts Women’s Car Care Clinics, and even has regular Art Shows in his shop’s gallery to support local artists.  Patrick enjoys trying to change auto repair for the better and loves the great opportunities this industry offers! Listen to Patrick McHugh’s previous episodes HERE.

Alan Symmes, shop owner, Revolution Automotive Services, Norwood, MA.  Alan has a goal to achieve excellence in all that he does. Having a passion for cars lead him to the automotive industry at the age of 18. He and his wife Holly were even married in a Boston auto museum. But after mastering the technical aspect of cars, Alan sought out a new challenge to start his own business and ‘revolutionize’ the automotive service experience for both the customer AND the employee.

In 2012 he and his wife started Revolution Automotive Services, Inc. in Norwood, Massachusetts. With high energy, enthusiasm and a strong will to succeed, Alan has created a culture that not only his employees believe in, but his customers are attracted to. In less than 5 years Alan took his business from a 1-bay operation to a 7-bay shop that offers extraordinary benefits to its employees and a “WOW” experience his customers rave about. “Quality is not an act, it is a habit” and every aspect of Alan’s business is high quality; including the German cars they specialize in.

Cecil Bullard is President of the Institute for Automotive Business Excellence. He is a trainer and business coach in the automotive aftermarket working closely with service professionals. Previous episodes featuring or mentioning Cecil, click HERE.  Institute for Automotive Business Excellence HERE.

Key Talking Points

• It is exhausting to churn your time and customer and not earn strong profits
• You can only go so far to be the cheaper alternative
• Many have a lightning bolt when they attend training and decide to make improvements to their business.
• Raising your labor rate is not the end all and be all pivot.
  • Some are just surviving and not earning a good living. Raising your labor rate is only one element for this panel.
  • The money from increased labor rates allows the business to do more such as pay higher wages, higher factory trained technicians, invest in training and the latest equipment.
• Sharing your new found knowledge from your most recent training session is important because your team will learn to trust you as you work to implement new ideas and improve the business.
• You must put the value behind your service and price.
• Your people must be on the boat before you pull away from the dock.
• If you are changing your preferred customer mix you must grow new ones before you replace.
• Hiring a business coach can be a large pivot for your company.
• A strong message from Patrick McHugh on his ‘crash of 2014’ and his biggest pivot. He was able to ‘re-wire’ his thinking because of his 6-month-old daughter. He said no more. He decided to stop making excuses.
  • He was going through the wall and not going around it.
• Pivot points can arrive when you put your family priorities in play.
  • Kim was able to graduate their two children from college with no debt.
• Starting to run your business as a business can be an important pivot.
• Good change is good. Plan to research and understand your planned changes.
• You may be finding things to do that are not productive and are not helping the business.
  • Spending too much time on Facebook
• Re-branding for Kim was a pivot point.
• Alan found an important pivot was joining a twenty group.
• Patrick found an important pivot when one of his technicians came to him and asked how he can make $100k per year.
  • They mounted an 8-foot whiteboard that is called the ‘Cockpit’. They are using this as their scoreboard to track their improvements. It has proven to be their ‘true north’
• You can find pivots in your networking group.
• The beauty of ORGANIC innovation that comes from the CULTURE you created
• Stay your course that you believe and look for the next right things and decisions you will see improvements
• Don’t be afraid the make bold moves but get the buy-in from your people so they understand your ‘why’ in your moves or changes.
• The attitude you carry around each day makes a difference in the success of your business.
• You will have tough days so you need to have great mentors and a strong network and a business coach to support your progress.

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This episode is brought to you by Jasper Engines & Transmissions. When a car’s engine or transmission fails, it’s not the end of the road. A remanufactured drivetrain product from Jasper Engines & Transmissions will give your car a new lease on life. JASPER has over 2000 Associates, three manufacturing facilities, two distribution centers and 45 branch offices across the country. They’re all working to produce, transport and deliver the perfect product. That’s what they do best… keep customers happy. Visit jasperengines.com

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Talking Points:

• See Part #1. Academy episode # 56 HERE.
• Your team is a customer service workforce that just happens to fix cars.
• The Avatar concept can be tough understand and be accepted.  It will take time to get this concept across to your team. Do not wavier.
• Your team can be a large part of creating your ideal customer. They like working on certain types of customers cars. Their insights can be a big part of your Avatar design.
• Brian Weeks did a rebranding of his business and made their Avatar the centerpiece of their new strategy and created a Customer Trust-Building Journey. (See below outline)
• Think about the customer, not the car. Too many think about the car and not the customer.
• Listen to the customer. Ask the right questions to determine an Avatar match.
• The intrinsic trust in a mechanic has been lost over the years. We are not teaching trust to the customer anymore.
• Customer asks questions about price and we clam up. But the customer is not asking questions about price. Top service advisors are diverting these questions and move to trust.
• A great question to ask a customer: ‘What is really happening here.’
• Every team member must fit into your culture. You must have core values that they all can align with including knowing your ideal customer, your avatar. Your customer can sense your culture like they can the wind.
• Tell people that you are different. Tell them how awesome you are and the special things you do for them.
• You may need to emulate your Avatar in order to really discover more about them.
• Live your own life with value and not always about price. Walk the walk and talk the talk. This can show you how your Avatar will buy.
• Friendships are built over time and it takes trust to get there.
• Avatars can be great advocates of the company and will do your own advertising.
• Don’t get discouraged on the engagement with your team. It takes time. You can measure the success via specific KPIs.
• The little things matter to your Avatar. Even if the repair was extensive they accept the seat to be in the same position, the radio not changed, the clock set right and no smudges. Put yourself in your customer’s shoes because their life was interrupted because of car maintenance or repair.
• Your only as good as the last time the customer walks in the door.
• The customer may not appreciate the depth of the repair and you need to explain to the customer exactly what was done to keep their car in safe running condition.
• You may have the right avatar with the wrong car or wrong timeline. The car may be at the end of their lifecycle. Advise the customer to start over and purchase another 3-year-old car and keep them coming to your shop. Reasons to move forward with a newer vehicle is safety. Side curtains and other safety features in a newer car.
• Get your team to help you create your Avatar instead of pushing it down to them. Pull it up instead of pushing it down.
• The Avatar or cardboard cut out works. When you know your customer and your customer knows you, your business will strive. The challenge is it to get your team to embrace and buy in. You’ll need to train your team to total commitment to your defined ideal customer.

Seven Step Customer Trust Building Journey. (Courtesy of Brian Weeks)

Pre-Purchase

• Step 1 – Connect. Online presence (Social Media/website), involvement in the community, reputation management, testimonials, meet the team
  • Doing
  • Thinking
  • Feeling
• Step 2 – Call. How easy is it to contact us, phone call process (phone script that everyone knows), on hold messaging, FAQ online
  • Doing
  • Thinking
  • Feeling

Purchase

• Step 3 – Arrive. How appealing is our physical presence (building/parking/accessibility), Google maps,
  • Doing
  • Thinking
  • Feeling
• Step 4 – Waiting. Refreshments, comfort, transparency (glass doors and walls)
  • Doing
  • Thinking
  • Feeling
• Step 5 – Deliver. Vehicle delivery process
  • Doing
  • Thinking
  • Feeling

Post purchase

• Step 6 – Follow-up. Next appointment, follow up phone call, Thank You card
  • Doing
  • Thinking
  • Feeling
• Step 7 – Follow-through. Referral Program, Special Events, CRM email
  • Doing
  • Thinking
  • Feeling

We hire people based on their ability to fit into our culture…cater to our Avatar

This episode is brought to you by Jasper Engines & Transmissions. When a car’s engine or transmission fails, it’s not the end of the road. A remanufactured drivetrain product from Jasper Engines & Transmissions will give your car a new lease on life. JASPER has over 2000 Associates, three manufacturing facilities, two distribution centers and 45 branch offices across the country. They’re all working to produce, transport and deliver the perfect product. That’s what they do best… keep customers happy. Visit jasperengines.com

Talking Points:

• Your Avatar or your cardboard cut-out is your ideal customer. It is you defining the very best customers and then focusing on them.
  • They trust you and are advocates for you.
  • Least likely to stray.
  • Most likely to recommend.
• It takes time to cement the logic of your Ideal Customer.
• Ron Inchausti makes a connection to his Avatar with food.
  • When he genuinely has a conversation with this Avatar he loves to talk food.
  • When you have a conversation that is not about the vehicle your relationship goes beyond repair/maintenance.
• To start to find your ideal customer you may have to discover who you do not want to serve.
  • When you are creating a brand and a brand story not everyone will connect.
• Patrick McHugh discovered his Avatar by starting to plot his customers on the map. It allowed him to find a pocket of customer that was 20 miles from his location. He discovered they worked in a business park next to his shop. That was an important profile. It is not where they lived but where they worked.
• Process to find your ideal customer.
  • Look over your records discover the who, what, why and how.
  • You will not alienate your customer. You are looking for the most market share you can get. You are looking for the peak of the bell curve and people who are suited for your business.
  • You need to eliminate your non-customers like; the ones who are dealer only, the techies who are DIYers and know every P-code.
  • When you involve your team, it improves your morale and company culture.
  • Who are you passionate about serving?
• Everything you do from branding, marketing, culture is designed around targeting your ideal customer.
• Looking for your ideal customer opens your eyes in ways you never thought possible.
• Multi-shop owner: you may have slightly different ideal customers by location depending on the affluence in the market. At their core, they are the same people, but their affluence may change.
• Patrick McHugh realized that there are different Avatars with a BMW owner vs a Mini Cooper client.
• Don’t design your Avatar around you. It is about your customer. You will attract who you are if you do not have an ideal customer defined.
• Your best customer will think of you as their ‘mechanic’, their ‘trusted guy’.
• Brian Weeks calls is ideal customer profile P4
  • Profitable – This relationship affords you to be profitable.
  • Point others to us – Word of Mouth.
  • Praise us – Reviews
  • Passion – someone we are passionate to help…it’s what motivates us.
• You are only as good as the last time the customer was in your shop. You must back up your brand promise by what you do.
• Advocate vs Avatar
  • Distinct differences. You can have a customer be an advocate and not be your avatar.
  • Advocates can influence their family and friends to your business but not necessarily be an ideal customer.
• Your Avatar drives your marketing.
  • Distill your ideal customer down to the ‘Nth’ detail.
• Give a name to your Avatar so they become a real person.
  • Listen to your Avatar. Interview them. Understand them.
  • If they have complaints about you or the industry fix them.
    • Customer lounge, bathroom, coffee. Fix it. Make it right. Make it better than right.
  • Some women come in for the first time with their customer. If the husband approves of the environment, he may never come in again. He wants her to be comfortable.
  • Ask and offer them creature comforts, even if they don’t partake, the gesture is what matters. It feels like you are inviting them into your home.
  • What do they value? If they feel valued from your shop, they’ll become a client.
  • You must hold up your end of the deal.
• Don’t let the business determine your Avatar. Let your customer determine your Avatar. Ask them why they come here.
  • Update it every year.
  • Train your people on the value of your Avatar.

This episode is brought to you by Jasper Engines & Transmissions. When a car’s engine or transmission fails, it’s not the end of the road. A remanufactured drivetrain product from Jasper Engines & Transmissions will give your car a new lease on life. JASPER has over 2000 Associates, three manufacturing facilities, two distribution centers and 45 branch offices across the country. They’re all working to produce, transport and deliver the perfect product. That’s what they do best… keep customers happy. Visit jasperengines.com

Patrick McHugh always tinkered with ‘stuff’. His dad bought an ’85 BMW. They learned all about that car together. A friend, Eric, had a lift and was a BMW person who helped Patrick and his dad learn everything about the CAR.

At 15 years old he started working in an airport, doing odd jobs, to earn credits to learn to be a pilot. He soloed at 16 years old. The day before college he got his pilot’s license

Patrick attended Purdue University where he studied aeronautical technology. He kept flying and earned his instrument license and became an instructor. He loves to teach.

As fate would have it, he became a pilot upon college graduation from Trans State Airlines a regional carrier for United. He was based in Richmond Virginia. With normal pilot downtime, he continued to tinker with BMW’s.

He discovered that being a pilot was not for him, so he went into avionics and shade tree work at home. There were too many cars in the driveway, so he had to decide to stop or go into business.

Bimmer Rescue was created in 2008 in Richmond Virginia and generates a big portion of its business through referrals. They earn their business through their professional service and attention given to each customer.

Patrick’s goal is to develop a relationship with BMW, Mini, Audi, and Volkswagen owners that allows them to get the maximum amount of value from their vehicle rather than buying a new one.

Talking Points:

• Patrick realized that he had no business training, he winged it all the way through. Via the World Pack Training Institute Expo in 2016 he discovered business coach, Cecil Bullard.
• He created an AVATAR to best know and understand his IDEAL customer.
  • Know them when they walk in.
  • Helps to target the demographic for marketing.
    • Income, neighborhood, home value among others.
  • He had to fire some customers.
  • His people and culture mesh with what his AVATAR wants in a quality repair shop.
• He learned a lot about the dealer when his own car had an air bag recall. He had never been to a dealership before.
• His shop is calming.
  • Art on the wall, jazz playing, a candle burning.
  • A feeling that everything is going to be OK.
  • He holds Art shows and learned it from Bogi Lateiner. (Listen to Bogi HERE)
    • He displays art all the time in his lobby, but goes all out for an art show for artists that still have a day job. This is an example of community outreach.
    • His goal is to get 50 – 60 people that have never been to the shop before.
• Many kids do want to work with their hands. So he created an in-shop program for students.
  • He is doing STEM classes at his shop as it relates to the automotive.
    (Science, Technology, Engineering, Math)
  • He holds classes on automotive training in the vain of STEM.
  • His target age group is 12 years to 16 years old.
  • He finds a customer who helps him recruit the students and run point on the class.
• Women’s car care clinic is also a community outreach program.
• He is a barcode nerd.
  • He uses barcodes for all nuts, bolts and parts to be sure nothing is missed on a work order. Expensive parts become a stronger profit center. The bolt bin has a terminal with the SMS system and a barcode scanner.
    • It is easy for the techs to do it.
• He uses a drop card in his marketing program as a part of his marketing efforts.
  • He only targets vehicles that they work on.

Bimmer Rescue Website

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This episode is brought to you by Federal-Mogul Motorparts and Garage Gurus. With brands like Moog, Felpro, Wagner Brake, Champion, Sealed Power, FP Diesel and more, they’re the parts techs trust.  For serious technical training and support – online, onsite and on-demand – Garage Gurus is everything you need to know. Find out more at fmmotorparts.com  and fmgaragegurus.com