Show Notes

Thanks to our Partners, Shop Boss and 360 Payments

Shop Boss – Shop Management Software built by shop owners for shop owners. It works the way you need it to, right out of the box. Find on the web at https://shopboss.net

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-The Aftermarket Radio Network: https://aftermarketradionetwork.com

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Thanks to our Partner, NAPA Auto Care

Recorded Live at the NAPA Autotech Research Training Center in Canton, OH, Corey Evaldi and Dave Justice provide a wealth of insights into the importance of systems, operations, and procedures in the automotive industry. By focusing on effective communication, continuous education, incentivizing employees, and building strong client relationships, automotive professionals can drive success in their businesses. The episode also highlights servicing electric and hybrid vehicles, and the value of peer learning and industry networking.

Corey Evaldi, Olmstead Auto Care, Olstead Falls, OH. Listen to Corey’s Episodes HERE.

Dave Justice, Owner, Repair Shop of Tomorrow.  Listen to Dave’s other episodes HERE.

Show Notes

• Watch Full Video Episode
• The importance of communication and leadership (00:00:01) The virtual Remarkable Results Toastmasters for improving communication and leadership qualities in the automotive industry. https://remarkableresults.biz/toastmasters
• The impact of systems, operations, and procedures (00:03:17) The importance of labor profit management, systems, operations, and procedures in achieving success in the automotive industry.
• Initial skepticism and eventual acceptance (00:03:55) Corey Evaldi shares his initial skepticism of coaching and his eventual acceptance of the coaching program led by Dave Justice.
• Implementing systems and procedures (00:05:29) Dave and Corey discuss the implementation of systems, operations, and procedures and the individualized pace of learning.
• Challenges and acceptance of guidance (00:07:26) The challenges and the need to change and accept guidance to implement new systems and procedures.
• The positive impact of labor profit management (00:11:12) The positive impact of labor profit management on creating friendly competition, accountability, and celebrating success.
• The role of incentives and teamwork (00:16:51) Corey emphasizes the importance of individual and group incentives and the role of the entire team in achieving success.
• Continuous Education (00:18:32) The importance of continuous education for shop owners and their teams.
• Business Development Group (00:19:40) Dave explains the NAPA BDG and its focus on system operations and procedures.
• EV Training Program (00:21:53) NAPA’s EV training program for technicians and the benefits of attending.
• Peer-to-Peer Learning (00:23:40) The value of peer-to-peer learning and its impact on business improvement.
• Standard Operating Procedures (00:25:25) The importance of standard operating procedures and systems in a business.
• Client Playbook (00:26:04) The use of a playbook to understand a client’s business operations and needs.
• Client Relationship (00:32:25) Dave emphasizes the importance of building client relationships and providing value beyond transactions.
• NAPA NOW Conference (00:32:51) Dave and Carm discuss the upcoming NAPA NOW conference and its significance for industry professionals.
• The switch to success (00:36:01) Reaching a turning point and realizing the importance of refining business to have work-life balance.
• Real-world training experience (00:39:41) Corey discusses the value of hands-on training at the NAPA Autotech Research Training Center.
• Adapting to new automotive technology (00:42:05) The conversation revolves around the need to adapt to new automotive technology and the importance of being prepared to service a diverse range of vehicles.
• Data analytics and future business strategies (00:44:20) The discussion touches on the potential role of data analytics and AI in shaping future business strategies and the importance of being adaptable in the automotive industry.

Thanks to our Partner, NAPA Auto Care

Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care

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-All books mentioned on our podcasts: https://remarkableresults.biz/books

-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom

-Buy Me a Coffee: https://www.buymeacoffee.com/carm

-The Aftermarket Radio Network: https://aftermarketradionetwork.com

-Special episode collections: https://remarkableresults.biz/collections

Thanks to our Partners, NAPA TRACS, AutoFix Auto Shop Coaching, and Today’s Class

Recorded at the NAPA EV Ready Training Center in Canton, OH, Corey Evaldi, Dave Justice, and Matt Fanslow dive into the theory and science of the automotive industry. This episode covers critical topics, including electricity, the importance of proper training, and the principles behind EV components.

Corey Evaldi, Olmstead Auto Care, Olstead Falls, OH. Listen to Corey’s Episodes HERE.

Dave Justice, Owner, Repair Shop of Tomorrow.  Listen to Dave’s other episodes HERE.

Matt Fanslow, Senior Technology Specialist and shop manager, Riverside Automotive, Red Wing, MN. Matt’s previous episodes HERE

Matt Fanslow Podcast: Diagnosing the Aftermarket A to Z

Show Notes

Thanks to our Partner, NAPA TRACS

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 http://napatracs.com/

Thanks to our Partner, Auto-Fix Auto Shop Coaching

Proven Auto Shop Coaching with Results. Over 61 Million in ROI with an Average ROI of 9x. Find Coach Chris Cotton at AutoFix Auto Shop Coaching on the Web at https://autoshopcoaching.com/

Thanks to our Partner, Today’s Class

Optimize training with Today’s Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today’s Class on the web at https://www.todaysclass.com/

Connect with the Podcast:

-Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/

-Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976

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-Follow on X (Twitter): https://twitter.com/RResultsBiz

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-Join our Insider List: https://remarkableresults.biz/insider

-All books mentioned on our podcasts: https://remarkableresults.biz/books

-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom

-Buy Me a Coffee: https://www.buymeacoffee.com/carm

-The Aftermarket Radio Network: https://aftermarketradionetwork.com

-Special episode collections: https://remarkableresults.biz/collections

Rick Williams got into the industry because of the passion he have for cars. He enjoyed modifying and racing. To this day he appreciate anything measured in horsepower. He graduated from Universal Technical Institute’s automotive technology program in 2002. After graduation, He co-founded an import race shop that was unfortunately only in business for just 4 short years.

Rick went on to work for a large and dealer group at one of their Honda dealerships here in Cincinnati. He completed Honda’s factory training program and became a Honda factory trained master technician. A couple years later he had the opportunity to become a service advisor and wrote service at the same dealership for about 5 years or so until he was moved to one of their Chrysler Jeep Dodge and Ram stores where he was a service manager for a year and a half.

He started RIX Automotive out of the detached garage here at home with 1 lift on January 2nd 2019 while also watching his kids during the daytime. He did about 70k in sales that year, part time. June 2020 he moved into a shop space. He rehabbed the space cosmetically and to allow for automotive service/repair. He have since acquired two part time master technicians. Since the move, the shop is doing what it used to do in a month in about a week.

Bill Haas, AAM, is the owner of Haas performance consulting LLC, with 40 years of experience in the automotive service and repair industry. Clients have access to Bill’s solution-based focus, expertise, unique perspectives and in-depth knowledge of the industry.

Bill began his career working part-time at a full-service gasoline station in Appleton, Wisconsin. His career includes time as a technician, shop owner, technical trainer and on the staff of the automotive industry’s oldest and largest association representing automotive service and collision repair businesses. While at the association Bill had the opportunity to work with all segments of the industry.

His knowledge of the industry has been shared on many occasions as he has been invited to speak at numerous industry events as well as providing testimony at hearings of the US Congress and several state legislatures on important legislation and regulation affecting the automotive industry.

Bill received the Accredited Automotive Manager (AAM) credential from the automotive management institute in 1996 and has been a member of the automotive management institute’s faculty since 2002.

Bill is also the business manager for NACAT, the North American Council of Automotive Teachers. His services include business management seminar development and delivery, keynote presentations, business consulting, performance coaching, and strategic planning facilitation. Listen to Bill’s previous episodes HERE.

Bob Greenwood, AMAM (Accredited Master Automotive Manager) is President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada at Georgian College located in Barrie Ontario Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in North Richland Hills, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation.

Bob has over 40 years of Business Management experience within the Independent sector of the automotive aftermarket industry in North America, consulting Independent retail shops on all facets of their business operations. His 18 years of running his own local consulting and accounting firm in Ottawa, Ontario Canada created some of the most productive and financially successful entrepreneurs within the Independent sector today.

Bob is one of 150 Worldwide AMI approved instructors. He has created Business Management development courses for aftermarket shop employers/managers, Jobbers and Jobber Sales representatives which are recognized as being the most comprehensive, industry-specific courses of their kind in North America. His courses address the creation of measurable bottom-line profitability and not just developing activity to keep busy, by covering the very detailed nuts and bolts issues that are required to be clearly understood by every level of the industry if an independent shop is going to financially prosper and enjoy a professional future. Bob’s previous episodes are HERE.

Link to Automotive Aftermarket E-Learning Centre Ltd. (AAEC) HERE.

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. His coaching company is Repair Shop of Tomorrow. Find David’s other episodes HERE.

Key Talking Points:

•  Bob Greenwood
• Setting foundation of business- internal processes and procedures
• Look at numbers to see what direction where to go- math doesn’t lie, measure components of business, have right price for competency 
• Internal business culture- continuously learn and build upon knowledge, average technician receives minimum 100 hours of basic training  
• Averages shop is missing $25-30k net profit per bay per year out of current business 
• Focus on productivity- which is knowledge based internally  
• Calculate net profit on repair order before you close it off- focus on net profit than sales and gross profit and activity .
• Average shop is understaffed by 3 people- bays, front counter and back office
• David Justice
• Building systems, operations and procedures 
• Understanding data- where you are and where you need to go
• Business flow chart- manager sheet (goals each month, sales, gross profit), daily tracker (average estimates and car count), and labor management (productivity, efficiency, effective labor rates, labor hours per car)
• Working on business than in it
• Perception of business- reviews, community, website, experience for customers 
• Labor management- where you make net profit 
• Gamification- getting everyone involved  
• Bill Haas
• What do you want to change that you haven’t done yet? Buried in day to day tasks- has two part timers, still looking for full time employees. 
• Use data to push emotions out of equation  
• Small incremental change over time will get you the results you want- 2 to 3 year journey

Resources:

• Thanks to Rick Williams, Bill Haas, Bob Greenwood, and David Justice for their contribution to the aftermarket’s premier podcast.
• Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
• Find every podcast episode HERE.
• Every episode segmented by Series HERE.
• Key Word Search HERE.

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Buy me a coffee

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.

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/carm

Jessica Carrino grew up in the St Charles, MO area as the only child to Ron and Sonja. She graduated from Western Kentucky University with a Bachelor’s of Science degree in Geography and Architecture. She decided to come into the family business and has now taken on the role of Back office manager for Sparks. When she is not working, she likes to spend time with her husband Mike and daughter Lana. She loves watching Lana at gymnastics and horseback riding. She hopes to one day design and build her own home on private land. Listen to Jessica’s Previous Episodes HERE.

Ron Tinner from Sparks Tire and Auto, St. Charles, MO a NAPA CarCare Center. Listen to Ron’s Previous Episodes HERE.

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE.

Key Talking Points:

• Jessica Carrino and Ron Tinner from Sparks Tire and Auto. Daughter and Father. Ron is also a part-time coach with Repair Shop of Tomorrow
• David Justice, Repair Shop of Tomorrow
• The intentions of the owner and son or daughter need to be known to each other
• Teaching/training of all aspects of the ‘business’ is a long term job. Give plenty of time for the transfer of knowledge to happenNever assume that a sibling will learn it all through osmosis
• Knowledge transfer needs to be planned and deliberate
• If more than one sibling each should know their roles and the parent/family leader must pick a final decision maker in the absence of the dad or mom
• Parents with family in the business need to pay attention to their desires and input into the business.
• Succession only happens when you take action. Look to your family and/or team to find a candidate you feel will continue the business.
• It is difficult for many to talk about succession. A mentor or coach can help you
• If you start to talk about selling or succession some on the team may think, ‘the end if near’ and consider leaving you. Looking for an internal candidate must be done in confidence.
• If other family members and only one will succeed with the business, there is a problem with others that may not be in the business, but consider having a right to the business valuation within the parents estate.
• Owners want to see their business succeed and must pick their successor carefully no matter family or internal candidate.
• Consider putting money into special accounts for the eventual time when there is cash needed for a buy out especially with a family member to buy into the transaction
• Ron, Jessica and David speak highly to the ‘Profit First’ strategy by putting money into separate accounts ‘silos’. Find a podcast episode with ‘Profit First’ author Mike Michalowicz here: https://remarkableresults.biz/e421/
• There are many creative ways to put money aside. Could be part of a compensation package to earn equity.
• You need advisors to help you. Attorney, accountant, consider the impact on a trust, if you have one. Insurance agents, for key life insurance on each other. Consult your business coach. Business evaluation.
• Ron had a huge transition when he learned to work on the business than in it (E-Myth). Listen to episodes on the E-Myth: https://remarkableresults.biz/captivate-tag/emyth-story/
• Ron is enjoying helping other shop owners as a business coach as his second career.
• Jessica is doing things for the business that Ron always wanted to delegate. An example is marketing. She is also very organized and knows her numbers and SMS inside and out.
• A smart move is to require your successor to have a business coach.
• One important tactic is to create a critical playbook for the business. A thorough standard of operating procedures.
• Equity needs to be transferred.There are many elements to consider.Money down, insurance, current profits
• Setting a timeline
• Open and transparent discussion
• Reduction of principle hours worked
• A general rule is 5 – 7 years to reach a conclusion for the transaction
• Jessica admits she did not understand the business numbers and she committed to learn them if she was going to become the owner. She watched her dad work in the business and will not have that happen to her.
• 95% of shop owners are technicians and must understand how to start working on the business. Once they realize they can make more money doing that than working in the business.
• In Ron’s case, Jessica put money in an account and the business matches it, so when the day comes that money can be used for a down payment and/or for a monthly payment
• Ron only needs to be at the business now about 2 – 3 hours a day because of how he has transitioned Jessica, however, he still puts in a lot of hours. As his coaching responsibilities increase he will work less at the businessRon is not mentally ready to step aside or slow down.
• Get a professional evaluation on the property and the business
• You can set the selling price on a multiple of your EBITA as of today. The contract could state that the final value could change over the term of the contract when the business is totally sold.
• Selling your business to an outsider, cash flow is critical.
• Ron says that cash flow is not that important, with a family member. He continues to invest in the business to make it as big as possible for her
• A family transaction will differ than an outsider candidate because it is family

Resources:

• A special thanks to Jessica Carrino, Ron Tinner, and David Justice for their contribution to the aftermarket.
• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

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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

Bob Ward is the President of Wardden LLC, Bob began his business career at a franchised car dealership, overcoming obstacles to learn and earn the required skills to become Controller, General Manager and then, a minority owner of Tacoma Dodge in Washington.

A native of Seattle, Bob serves as a financial advisor and consultant to small business owners throughout the United States. He believes that your business should always be ready for expansion or sale, you should get paid for what you built and, when you decide to leave it, your company should continue to prosper. He believes in a Perpetual Business where there is Value, Continuity and Legacy. Look for Bob’s Previous Episode HERE. Warden LLC website HERE.

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE.

Key Talking Points:

• David sold 3 stores to a big box concernHe owned the properties and got a 15 year guaranteed lease
• You plan to sell your business on the day you open it. Bob Warde
• You are going to sell through liquidation, successor, or outside party.
• 85% of businesses never get sold. Bob Ward
• IF your business can run without you, you have a great chance to sell. You’ve developed a great team which is attractive to a buyerYour people make the business

• You plan to sell your business the day you open it. 

• Always be looking for a successorAsk your people what their plans are
• Ask in employment interviews what their future plans are
• Buyers buy the cash flow of the business and assetsYou have to prove the cash flow
• Financial statements must be part of the equations
• Finding an internal candidate is an extremely viable planYour internal candidate has the skills or you can provide them/ It can makes them a credible candidate.
• Ask them: What is most important to their career? If they ask that they would want to own a business someday that is a key market for future development for the opportunity for succession
• Provide a timeline to earn ownership
• Bring a business coach into the equation to teach business skills
• David asked his buyer to provide the right pay and benefits for his people. He made sure his people were taken care of
• Actionable:You need serious financial statements, accurate
• Consider who is going to buy the operation
• Where is your buyer going to come from
• An outside buyer or big box or franchise is rare
• Your buyer may already work for you.
• Bob feels that ¾ of businesses sell to an internal candidateIt is a natural transition for someone who has worked for you for years to ease you out of the business via a sale
• If the candidate has the passion it will work
• The buyer can earn credits toward equity ownership and for down payment
•  
• It is the growth and development of people that is the highest calling of leadership. Harvey FirestoneOur business needs to be independent of us
• Same with parenting
• What you do today takes care of tomorrow. David Justice
• People of passion want to buy businesses but have no money. There are ways to make that happen
• Start getting ready to sell your business. Look for your internal candidate or hire him/her

Bob Ward website https://www.perpetualbusiness.co/

David Justice website  https://www.repairshopoftomorrow.com/

Resources:

• A special thanks to Bob Ward and David Justice for their contribution to the aftermarket.
• 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.

Buy me a coffee

Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.

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

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE.

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.

Maylan Newton from ESI – Educational Seminars is a business coach, trainer and industry speaker. Maylan is no stranger to the podcast having paid it forward on two episodes … 108 and 140. He is a much sought our speaker at industry events in the US and Maylan will speak at this year’s Automechanika among others. Find Maylan’s other episodes HERE.

Key Talking Points:

• Labor rates will make the biggest impact on the shop
• This can be the hardest to understand and manage
• Understand the KPIs behind productivity
• You’ve got to understand your labor costs
• Like effective labor rate
• Shop owner has to overcome the emotional part of the money to raise the hourly rate
• Customers are not affected by this
• Only the shop down the street who is trying to stay under you by $10
• Attorney’s charge $700 an hour. We do things as difficult as they do
• Become a businessman and stop making emotional decisions
• We need to get paid for what we know
• If you had a slow week it is not because you have a high labor rate. It usually has nothing to do with what you charge.
• Too many shop owners manage their cash from a general fund
•  A high percent of Profit and Loss statements are incorrect
• Managing the business through the numbers are foreign to many shop owners
• It is dramatic to see what real earnings can do for a shop
• Implementation is the key. Accountability drives change and success
• Money is not made by fixing cars. It is made by the pencil.
• Understand your self-worth
• The appliance repair person charges $300/hour with no scan tools. We pay the bill because we don’t have the time
• If you understand your business (have business sense) automotive repair is a great industry to be in
• How many owners have not cashed a paycheck. That is a signal that you don’t even have a job but a hobby.
• Being productive and profitable does not necessarily equate to labor rate. There is so much more to improved profitability
• Go to classes and learn about the financial side of your business
• If you don’t actually implement what you learn you’ll have wasted your time and money
• Average $700K sized shop is leaving $140K on the table
• Consider twenty groups and the knowledge sharing through peers
• When your business runs well it is life-changing. When you’re struggling the stress is terrible and life is not good.
• 99% of the coaches teach the same thing. It is the implementation that differentiates.
• We work on high tech vehicles and run our business in a low tech fashion
• The power in observing other businesses and attempt to understand how they run and make money. YOu will learn something that makes you and your business better.
• Many shop owners are prideful and keep digging a deeper hole
• You must admit you don’t know it all and that is OK. It is time to learn a new way to do things. Change must be implemented. Stop struggling and get help.
• Hire someone to hit you over the head and push you into a more profitable business and therefore a happier life. It is fun to WIN
• Why do some shop owners excel?
• Pride put on the shelf. Learned. 
• Ego is killing the majority of shop owners. They do not want to share their failures because they pretend they don’t have them
• Fear makes you stupid.
• Farmer are rich in their harvest time and poor when the crops are growing
• They make better decisions when they are harvesting and bad decisions during lean times
• A perfect analogy for our industry
• Book mentioned by Maylan: Your Broke Because you Want to Be by Larry Winget https://amzn.to/2r6buK0 on Books page HERE.  
• We create our own problems. We advertise price. We are a high tech business and we need a lot of training and equipment to do that.
• A Ford F150 has more lines of code than a Dreamliner Airplane
• There is a value in fixing a car correctly
• We are $100 behind a labor rate curve
• We cannot pay techs a starting wage of $14 – $16 an hour.
• We cannot be afraid to make tough decisions. Successful people fail forward and then try again
• Failure helps you learn
• You should charge by the job not by the hour or by part
• Is service a better word than labor?
• Learn as much possible, learn the numbers and implement and if you need an accountability partner to move you then do that. Make you the best you can be
• Your labor rate must go up at least the cost of living every January

Resources:

• A special thanks to David Justice, Cecil Bullard, and Maylan Newton 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.

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Thanks to Shop Ware and Jasper:

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 shop-ware.com

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 re-manufactured drive-train 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



Your Learning Curve Never Sounded So Good

The Panel:

Mark Colaw has a passion for the automotive industry. He started working for the shop’s namesakes, Hastings, and Ida Seymour, as one of three people that knew how to run one of the new diagnostic machines. Mark eventually purchased Seymour’s Garage in 1985 and opened the current location in 1988. Mark is the founder of CarFest an important community program that brings the aftermarket and the consumer into a unified program to support the needs of the community. Find Mark’s other episodes HERE.

David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations. Find David’s other episodes HERE.

Tom Palermo is General Manager of Preferred Automotive Specialties in Jenkintown, PA. Tom is a world class Master Technician and a Certified ASE Advanced Level Technician, is certified from ASE including Master Auto, MasterTruck, Master Truck Equipment, Master School Bus, Master Collision, Master Transit Bus, L1, L2, C1, X1, P2, F1 Besides the 2015 NAPA/ASE Technician of the Year, Tom also earned the 2011 AAIA-ASE World Class Technician Award from the Automotive Aftermarket Industry Association, National Institute for Automotive Service Excellence, and the Best Tech of the Year award sponsored by WIX Filters. The majority of Tom’s business is fleets. Listen to Tom’s previous episodes HERE.

Key Talking Points:

• Are we charging enough for diagnostics?
  • What is your equipment and training worth?
  • You need to get paid for the skills you have.
  • You can’t compare yourself to the ‘free diagnostics’ places. You are a professional.
  • Find the confidence in your skills and abilities and charge for that.
  • Free advice is worth what you paid for it.
  • Discover your worth.  
  • Mark Colaw put an end to big box stores scan issue. He scans for free, however, he charges for diagnostics.
• We are educators and we need to tell people that so they see the value in what we charge. Have conversations with your customers.
• David offers a 10-minute preliminary inspection and would scan and pull the code and moves into a Level 1, Level 2, or Level 3 diag depending on the results.
  • This qualifies the customer.
• The labor rate spread in markets is too big.
  • Increasing labor rates can make huge improvements to a business.
    • Better pay and benefits
      • Attract a higher quality technician
    • Paid training for all
    • Stronger better systems
    • Improve equipment
    • Improve marketing
    • ASE certification
    • Plus many more…….
  • Labor rates are geographical and demographic driven.
    • Labor rates are too low in the industry.
• Shops cannot bad mouth each other. Fairness must rule.
  • Doctors or lawyers do not bad mouth each other. It is called professional courtesy.
• We need unity in the industry. We all benefit. Create a community.
  • Support each other with an idea exchange. Collaborate!
  • To help with any issues inside their business!
  • Tool exchange!
• Knowing your numbers, P & L and Cash Flow will help you understand what you need to charge and why.
  • Key performance indicators are important, however, how to improve them is the vital part of knowing your numbers.
  • Systems, Operations, and Procedures should drive your numbers that have the biggest effect on your business.  
• Educate your customer on the complete transaction and what they should expect from the warranty for the repair. There may be more to the repair then they authorized, so educating them will prevent any follow-up issue that may arise.
  • You could be dealing with a moving target at times.
• DVI
  • A picture is worth 1,000 words and can be worth $1,000. “David Justice”
  • Education and trust regarding safety and reliability.
  • You can eliminate comebacks or secondary issues when you use DVI’s for a complete review of your customer’s vehicle
  • It is an important system and process.
• Mark Colaw will not use canned follow-up language.
  • He requires his people to write down, on the work order, what he talks to his customer at the invoice delivery. No canned wording. Clear and concise not about deferred work. It is typed and in the digital version of the invoice.
• The perception of your business makes it ‘worth it’ to them.
• Don’t be afraid to charge what you are worth. You’ve invested a lot in your business and need to be paid for this.
• Mark Colaw’s core value:
  • Community
  • Education
  • Excellence
  • Integrity
    • Base everything on and off of this value.
    • You will realize what your worth is and will charge appropriately.

Resources:

• A special thanks to Mark Colaw, David Justice, and Tom Palermo 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.
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David Justice has been an auto care professional for over 30 years. He grew up in the family business working for his father. At, a young age David purchased his father’s business and went on his own. Over the years David had multiple Shell Gas stations.

In 2001, David got out of the gasoline business and bought an old closed BP station with 3 bays. Within a short time, he added 5 more bays and did $1.8M. (Parkway Auto Care). In 2009, David built an 8500 square foot store in a neighboring city from the ground up producing over $1 million in the first 12 months. Then in 2012, he built a 10,000 square foot store again from the ground up in another neighboring city producing over $1.2 million in just 12 months’ time. The 3 stores were Express Tire locations and grossed over 5 million a year. David was elected and served a 2-year term on the NAPA National Auto Care Advisory Council from 2012-2013.

In search of a way to better manage labor hours, David created Labor Profit Management. LPM is a web-based time management system for the service professional.  In June of 2013 NAPA launched Dave’s LPM solution nationally and since then David has been helping shop owners across the country create more net labor profits by having them measure and manage their labor dollars with his product.

David was a featured speaker at the NAPA National expo event held in Las Vegas. David presented 5 seminars to over 3500 people on how to manage your labor factor.

In 2016 David received an offer from the largest automotive chain in the industry and sold his 3 stores in September of 2016.

Once again David had the opportunity to follow his passion of helping people and created Repair Shop Of Tomorrow with Stan Aten an electronic marketing social media expert/website designer.  RSOT is a completely comprehensive program for the independent automotive repair facilities encompassing done for your marketing, SOP, and labor tracking complete with accountability coaching that creates real-world results.

David has been happily married for over 22 years to his wife Tracy. He is the proud father of 5 children and a grandfather of three.

Key Talking Points:

Wants to Give Back, Do More

• Repair Shop of Tomorrow
• Strong vision for labor profit management A look at the labor side of the business, NAPA looked at it and asked us if we would share it with other dealers.
• His giving bug started from here.

• Most shop owners are almost slaves to their business. He wants to help them.

3 Legs to the Stool

• Education: learning the SOPs, how to run the business, scoreboards
• Communication word of mouth, social media communicating to the right client
• Implementation with repair shop of tomorrow, we know marketing and implement it for you since life gets in the way, we want to get it off the dealer’s plate.
• He believes in marketing programs not marketing pieces
• The real goal is to allow shop owners to do what they do best and that is building relationships with the community and fixing cars.

Marketing Pieces vs. Marketing Programs

• Market to bring the right client in with the right kind of value-added offers and predictive marketing
• Marketing programs are the total package of building a branded look, branded content, branded message, overall different media, and the right clients, we get results.
• Number one reason we lose clients is we don’t get in front of them.
• The main problem arises when a person gets an education and there is no implementation.
• People want your business because of Net Profits. That’s what makes your business valuable to them.

Other Points

• Networking is a strong asset. Being in a group and be around like-minded professionals is life changing because you will learn so much.
• The first thing to fix is the labor side of the business because it is the number one opportunity for profitability. Most business owners do not understand the labor rate, productivity rate, efficiency.

Major Pivot

• If you operate your store correctly, put clients through the doors, and have the right pay plan,  technicians and customers come to you.
• Technician shortage can be attributed to not thinking right. We need to re-evaluate the value of our technicians and not be afraid to charge what we’re worth.
• Charge the right amount of money for our services.
• Own a business not work in it.
• Excellence should be rewarded.
• Regrets. Missed his techs and his clients

A sincere thanks to David Justice for being on the podcast.

Other Resources:
Link to the ‘BOOKS’ page highlighting all books discussed in the podcast library. Leaders are readers.

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