The Basics of Owning An Auto Repair Shop - Part 1

Lucas and David welcome automotive industry expert Cecil Bullard to delve into the often-overlooked intricacies of running a successful auto shop.
Cecil lays out the stark realities of shop ownership, from the crucial understanding of costs such as rent, utilities, and insurance to the imperative inclusion of a sustainable 20% net profit margin. The trio then tackles the nuances of labor rates and their impact on a shop's financial health, with Cecil advocating for a fair labor cost that exceeds the current industry standard.
Need help on where to start? Get a FREE business analysis by clicking here: geni.us/IFORABE
Want to make 2024 your best year ever? Attend the best marketing conference of the year by clicking here: geni.us/MARS2023

[@dmack7328]

old Newbie tire shop owner here... Lawdy, I am glad I found ya'll!!!

[@ChangingTheIndustry]

Thanks for being here!

[@craigscarcare2835]

I waited 10 years before hiring a coach. Coming into ownership as a technician with zero business training it would have saved us a decade of loss revenue and miss steps. WHAT ever coaching cost is WELL worth the money. You owe it to yourself, your family, your team and even your clients.

[@christophermasih1525]

Where are you based Craig? Would like to speak to you about how coaching helped.

[@agautoworx5346]

Excellent break down, David! Thanks!

[@autodiagyt]

David, that break down at the end was very good! Thanks

[@agautoworx5346]

I LOVE this! Thank you!!!! 🙏 Cant wait to make enough money to pay for coaching.. This will surely help me get there!

[@arturocarranza4592]

Thank you, leant to open a small workshop and I didn’t want P&L was. Thanks for the explanation

[@ChangingTheIndustry]

You are welcome!

[@camerontempleton8898]

Great Show!

[@ChangingTheIndustry]

Thanks for watching!

[@Khans1199]

Great info! Can y'all also talk on EVs, if they will effect the shop sales? And also what to do in tech shortage crisis? In short, the future of independent repair shops.

[@ChangingTheIndustry]

We'll see what we can come up with! EV is likely to have a shift in the type of work done by repair shops but is primarily a threat to chain stores, quick lube shops, and "turn and burn" shops that are only recommending gravy. Tire sales are likely to increase. All that being said, the political climate heavily dictates the adoption rate of this technology. With current adoption rates and public opinion, I suspect it's unlikely the targets set for the US EV "fleet" are highly unlikely. Tech shortage crisis. Do you mean in an emergency situation such as a mutiny amongst all techs in your shop? Or do you mean as an industry as a whole?

[@Khans1199]

@@ChangingTheIndustry Thanks for the response! Tech shortage i meant in the current market as for the whole industry, its so hard to even find mechanics nowadays. It takes months to hire a mechanic. Do you think in this crisis shop owners who are Technicians themselves can benefit from this situation?

[@dakotanusser7501]

Appreciate the work you guys are doing. Im a small owner operator shop. One tech ( myself) and one Apprentice thats been full time for 3 months. Obviously the cost of the payroll for the apprentice is factored into operation expenses but can you give me a description of how i should categorize myself within the profit margin as both owner and primary producer in the shop.

[@ChangingTheIndustry]

Yep! That's on the way!

[@The_Andrah]

this is such basic information yet business owners still cant get it right, and we wonder why "99% of businesses fail". haha.. no, 99% of people are incompetent, it's that simple. Regardless, excellent video boys!

[@tamirajohnson5220]

How do I account for fees? It skews things so my labor and parts sales don't add up to 100%. Also how do I account for warranty jobs, right now I discount them 100% but if they could be in their own category that might be helpful?

[@DavidRomanKC]

Fees are their own revenue source, so those would be separated. I also discount warranty work, but the better practice is what Lucas does and that's to list them as their own payment type in the SMS so that they can be accounted for separately. Get a good bookkeeper to put this together for you, along with your CPA.

[@Wagon7]

I’m listening…I am in my third year of working solo. It’s been a struggle, so let’s so what I’m doing wrong and hopefully something I’m doing right😂

[@ChangingTheIndustry]

Thanks for being here!

[@nickayivor8432]

SUBSTANTIAL

[@nickayivor8432]

👍

[@angel-xh5vz]

Holy hell fire, I came here from crack book, wanted to watch your supposedly valuable basics 1,2,3 & 4 but guess what your paid advert for "mars" will not allow me to watch your video. I didn't come here to watch Mars, I came here to listen to what you promised would be a game changer in my auto repair shop business. I'm not going to keep watching because I don't care about Mars. Thank but no thanks. This is terrible

[@ChangingTheIndustry]

🤣🤣🤣🤣🤣 You don't know how to skip forward?

[@DavidRomanKC]

Waaaaaaaa, I cAnT fiGuRe OuT hOw tO fAsT fOrWaRd. Waaaaaaaa, fOuR MiNuTeS iS sO LoNg. Waaaaaaaa. 😘✌️