Business advice Needed

[69lsxamx]

Im looking for advice or opinions on running a automotive and diesel shop. What's the best way to get new customers and to promote the shop? What is the current labor rate for automotive shops? The last shop I worked in it was $65 an hour but that was almost 10 years ago.
Im 28 and have done mechanic work since I was 15 ranging from small engines automotive and heavy equipment I was working at a caterpillar dealership for 6 years and quit back in April to work with my stepdad at his shop that he started a few years ago business was good with just him working he was making between 7-11k a month. The week I quit we found out that my stepdad had cancer and three weeks later he passed away . Now I'm trying to keep the shop going so far ive made enough to pay myself 20hr and enough to pay the bills. The second month was better than the first it's now the third month and it's starting off good.
I want so bad for this to work out so I'm asking for advice from people with experience running a shop.
Thanks aaron

[Jetfixr320]

I've never owned or ran a shop or been self employed.

Only advice that I can give, Is be fair to your customers don't screw them over and they will come back and tell other people about your shop. It will grow from there.

Sorry for the Loss of your Stepfather.

[Auto Rod Technologies]

Word of mouth is the best.

I've tried many forms of advertising and word of mouth is always the best.

[MrForce]

Touch base with the regular customers your Stepdad had. They may not know about you keeping the shop open and you don't want to lose what you already have. Review his invoices for rates and collection practices.

Best wishes and sorry for your loss.

Rob

[69lsxamx]

Thanks for the advice guys. Auto Rod you do some really good work. I was checking your site out not long ago and liked your work. Rob I just looked over a lot of the invoices to get some idea of what to charge, I have called and sent out letters to the customer's we have the adresses to. I think the word got out that the shop would be closing. The biggest companys with the most trucks have still been coming here which is good.

[MonzaRacer]

biggest issue I have seen on businesses is that they have been fed a pile of BS from the newer "business" magazines. Most of those keep pushing HUGE parts mark ups. Honestly I made good profits when one shop I was in would use the 1.67 to 2.0 rule, BUT never more than list.
Now little parts fuses, clamps and such should come out of shop fees, which I would run as a percentage of total ticket sales.
This will also cover rags, fendercovers, uniforms, hand soap etc.
DONT get ridiculous with your "profit margin" Take a regular pay check on your work plus a management paycheck. Dont short your self just to help business, readjust parts sources if needed but also dont skimp.
USE THE RIGHT PARTS, proper brands, one starts giving issues, change. Also get with your suppliers, many of THEIR suppliers will pay for warranty claims.
Also remember a flat rate manual is a guide to give you idea how hard it is, if you havent done it before. I generally do add some extra to cover unknown expenses.
I know of one shop charging up parts 3.3, yeah over tripple mark up, they lose a lot of business as they run them off with prices. Wouldnt be so bad IF they would get in through their heads that if you charge it up then bring it back down with a "discount" (which allows you to work from the percentage AFTER the discount, some people will pay what ever you throw out and not shop around) Regualr customers you might throw a return customer "discount" $50 over $500, $100 over $1000, and so on. Honestly I have seen jobs estimated WAY high, and customer about had fit on price, service writer threw a "10% discount" at him and threw in an oil change and rotate or some such thing,,,,,$3000+ job, actually cost them on discount about $310 off. so basically without it the guy would walk away from $3000+ bill or pay up $2700ish and was thinking he had robbed the shop.
Another thing IF you qoute a job high, and it goes off without a hitch, real smooth or its a regular job the guys get done FAST, dont be afraid to drop the actual bill down a few hundred. do that and guy who thinks he is gonna pay $1500 and you throw it at him at say $1100-$1200 he will wilt AND spread your name ALL over the place when bragging about your awesome/great service.
BUT one thing is not cutting your throat, just being fair, passing repeat customers well and they will stay, bend over backwardsonly when you have to and be honest with them if you have to call them back for extra parts.
Also if its small stuff, just throw it on the back side of ticket and NOTE IT AS A FREE REPAIR. If they see you thre in a $12 hardware kit becasue old stuff couldnt be saved some people will hug you.
Good luck and remember honesty and going that extra mile WILL get you more points than you think.
IF you know what it costs to open the doors every day, then what you or other techs get paid (three way split works well, 1/3 covers tech and all his needs, 1/3 covers shop and 1/3 is ignored till end of week/month/year.
ALSO if you have good month/year, spread it around, at least a small percentage. The tech who gets a $50 cash bonus for the shop doing good, pizza party on last day of week so everyone stays in to work,,,,it really works.
OH and as for tips, dont ever tell a tech he cant take one or take it away, just oremind them that if they ASK for one, they had better have a way to haul thier tools.

[BonzoHansen]

Labor rates: get out a map, figure out all your competitors, call them and ask. competitive shopping is a requirement. fall where you want to be. Don't be the cheapest or most expensive guy.

[seekins]

It sounds like you are already well on your way, what it really takes is time. Just don't get greedy. I have always treated customers exactly they way I would expect to be treated. After that, do quality work at a fair price. I will never take payment for something before its completed, never let a customer go away un happy (there's always a way for both of you) and never be afraid to say no. You can always go fishing and make zero money...

[sniper]

Who in the world does not know Coke? Yet they advertise as though no one knows them.

People say word of mouth is best but that is always limited. Most people won't tell others about a good experience but they will shout from the roof tops about a bad one.

Social media is an easy way to get the name out there. Target marketing, direct mail, radio spots can bring in a ton of business. You have to know your customer and how to reach them. Sometimes its' trying different things and tracking their effectiveness.
Put an oil change special out there. Groupon is not a great "deal" for your instantly but it can bring you a ton of customers not currently known to you. I make most my money on up sells off oil services. "preventive" maintenance is about keeping a vehicle on the road and in good running order. Don't BS the customer but tell keep them informed on possible services, parts, and maintenance issues to keep their car on the road.
Rarely does a car come in that gets an oil service that "needs" nothing else.

[rektek]

aaron,
It sounds like you're a one man band, hire another tech even if it seems like you're only paying him/her some months. having great techs makes a huge difference.
having someone knowledgable to answer the phones will keep you and others working more efficiently.
know every one of your customers by name, not just that guy who got brakes last week. this is so important !!
get involved in the community, be known as someone who cares and gives back to the community.
Keep your shop freaking super clean, be anal about it. google Toyota + lean, some great concepts there. toss out all that crap you're keeping, I know you have some ;-)
if you finally get some staff have weekly meetings, get everyone involved, your employees will have good solutions in these meetings.
word of mouth may be enough for advertising but don't be afraid to try something different.
use oem parts or better and don't assume, make sure your customers know the difference.
don't be a ass but be demanding of your vendors.
know everyone in the surrounding shops, they might be your competition but they're not your enemies,
you might be surprised to get referrals from another shop if they know you can do the job they can't and trust you.
get a professional looking website up and running. keep it updated.
don't screw your customers and be honest, it's just plain easier and you can sleep at night.
I'm leaving out about 500 other things, others may chime in.

good luck bro !!