Scott Wheeler, President of Automotive Consultants Group, Inc. (ACGI) is a shop management expert in the transportation industry, with over forty years’ experience in the automotive, trucking, heavy-equipment, marine, motor sports, and defense aerospace industries. He holds numerous ASE credentials, including two Master’s Certifications, and has experience working in every position from Tech, Fixed Operations Director, and Mechanical Engineer. Scott has authored five books for the automotive industry and continues to write, consult, and speak professionally at major industry events throughout the U.S. and Canada. He has been a regular featured consultant/contributor to Ratchet+Wrench Magazine, Auto Inc., and Canadian Tire magazine with articles relating to topics such as technician compensation programs, understanding production capacity, and how to maintain passion for your automotive repair business, among others. ACGI continues to consult and mentor clients throughout North America.

Listen to Scott’s previous episodes HERE

Key Talking Points

• “How to Make Money (& Stay Sane) in the Automotive Service Industry”- Chronicles “Bob” a fictitious character. Effective labor rate, marketing and advertising in 21st century. Charts and graphs included. Policies, procedures, job descriptions. 
• What are your goals? Why are you in the industry? “What’s in it for me?”
• Are you willing to listen? Try new things? Change? 
• Change triangle- the center is change, outside points are commitment, plan and action. 
• “Why when how to” with financials 
• “All business is, is a math problem”- understanding the numbers, understanding benchmark (labor gross profit margin, parts margin etc) 
• Ego factor- what is your break-even point is? Do you rate how well your month went by how much money is in your checking account? 
• Holding someone accountable- clear set goals and expectations
• CPA using Quickbooks- Quickbooks isn’t geared towards automotive
• Make sure you set your shop management software to your set gross profit matrix for parts and labor
• Production incentive for technicians and service advisors- it should be easy to calculate. Is it based on working 40 hours or meeting/beating time guide? Consider individual compensation plans. Find one that motivates your employees. 
• Raising effective labor rate
• Automotiveconsultantsgroup.com

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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever.

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Scott Wheeler, President of Automotive Consultants Group, Inc. (ACGI) is a management expert in the transportation industry, with over thirty-seven years’ experience in the automotive, trucking, heavy equipment, marine, motorsports and defense aerospace industries.

Scott holds numerous ASE credentials, including two Master’s Certifications. He has experience working in many capacities — from Tech, Fixed Operations Director, and Mechanical Engineer.

Scott has authored 4 books for the automotive industry. In addition, he is an AMI-Certified Management Instructor. ACGI has served as an expert witness in various court cases.

He speaks professionally at major industry events throughout the U.S. and Canada and is a featured writer, consultant, and contributor to Motor Age, Ratchet+Wrench, ASA’s Auto Inc., and Canadian Technician magazines.

ACGI applies a unique systematic approach to each client they serve throughout the U.S. and Canada.

Key Talking Points

• In our industry communication is paramount to building a strong customer and team relationship.
• The customer’s concerns on their car require the service consultant to ask the right questions and employ active listening skills and empathy along with the art of asking the proper questions.
• Every case is different which mandates these skills.
• You need to understand your customer’s communication behaviors and DISC is a great way to best understand how to communicate with your customer
• The service consultant interrupts what the customers says into a repair order that explains precisely what the customer’s concern is and guides the technician to precisely what, from the customers perspective, is wrong with the vehicle.
• The 3 C’s
  • Customer Concern
  • Cause of the Concern
  • Recommended Corrective Action
• Virtual Vehicle MD is a tool to use to help explain and communicate with your customer.
• Playback word for word to the customer what the service consultant understands.
• Double up on your listening vs. you talking.

• A special thanks to Scott Wheeler for sharing his passion – For The Record.
• Books mentioned in the content library HERE
• Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.
• Email Carm HERE.

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This episode is brought to you by FlexCheck Auto Digital Vehicle Inspection Software.

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Scott Wheeler, President of Automotive Consultants Group, Inc. (ACGI) is a management expert in the transportation industry, with over thirty-seven years’ experience in the automotive, trucking, heavy equipment, marine, motorsports and defense aerospace industries.

Scott holds numerous ASE credentials, including two Master’s Certifications. He has experience working in many capacities — from Tech, Fixed Operations Director, and Mechanical Engineer.

Scott has authored 4 books for the automotive industry. In addition, he is an AMI-Certified Management Instructor. ACGI has served as an expert witness in various court cases.

He speaks professionally at major industry events throughout the U.S. and Canada and is a featured writer, consultant, and contributor to Motor Age, Ratchet+Wrench, ASA’s Auto Inc., and Canadian Technician magazines.

ACGI applies a unique systematic approach to each client they serve throughout the U.S. and Canada.

Talking points:

• Tech shortage, may not rectify anytime soon.
  • Many organizations are working to make it right.
  • We need fresh new people in the trade.
  • Many of our young grads from Votec school need to get their street smarts (practical experience) because the tech learning curve is happening so rapidly.
  • Investment in tools just to do basic repairs is a mountain to climb.
• Biggest Challenges:
  • You don’t know what you don’t know.
    • Many shop owners started as a technician. Their business management training was very minimal.
      • Ego prevents some shop owners from getting help for their business.
    • Some of the best shop owners have a business coach or belong to a twenty group.
• A 1,000,000 a year shop.
  • $83,333/month.
  • At a 50% GPM you need 3 billable hours/RO, prox 8.5 cars per day with an average ticket of $458.16
    • Need 3 Technicians that are doing 105% productivity.
  • The typical auto repair shop is nothing more than a large math problem.
    • Even if you understand the math you need to understand how to make changes to the different areas that figure into to overall performance.
• Consistently and quality work, do the job right the first time. Warranty work cannot exceed 1% to gross sales. If it does you’ve got a problem.
  • Parts, labor, miss communications are all factors.
  • Communication or lack thereof is problematic in any business.
• Profit and Loss Statements (P & L)
  • Mandatory to have access to this document on a monthly basis.
  • It reflects the past; what has already happened.
  • You also need to have a KPI (Key Performance Indicator) tracker to know what is happening every day and compare your performance to a target (goal).
    • When you see the P&L you should never be surprised if you are tracking your KPI’s to your targets.
  • Balance Sheet, Profit and Loss Statement and a Cash Flow Statement are critical in helping you run your business.
• Leadership and Culture.
  • Many styles but universally accepted principles.
    • Read John Maxwell’s 21 Irrefutable Laws of Leadership.
  • A real leader doesn’t light a fire under his people but lights a fire within them.
• • A leader understands that learning is a lifelong commitment.

Automotive Consulting Group Inc. 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