Episodes

5 hours ago
5 hours ago
121 - An Educated Customer Makes Better Decisions
May 14th, 2025 - 00:57:32
Show Summary:
In this episode, Jimmy Lea hosts Craig O'Neill from Auto Flow and Mike Simard from Simard Automotive in Fairbanks, Alaska. They discuss the journey of building successful auto repair shops, the importance of transparency with customers, and the transformative impact of Digital Vehicle Inspections (DVIs). Mike shares his story of growing from a single 24x32-foot shop to seven locations by focusing on customer education, transparent inspections, and integrity in service. Craig emphasizes the role of proper communication and the need for inspection consistency. Together, they explore the evolution of shop processes, the benefits of digitization, and the future of the automotive repair industry, highlighting the importance of leadership, team development, and a strong company culture.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
Craig O’Neill, VP of Training of AutoFlow
Mike Simard, owner of Simard Automotive
Episode Highlights:
[00:02:22] - The Origin of Simard Automotive: Mike recounts his journey to Alaska in 1995, starting with a small shop built by hand and growing one customer at a time with a focus on transparency and communication.
[00:06:35] - Building Trust Through Inspections: Mike emphasizes that customer trust was earned through transparency, education, and clear communication—elements that became foundational to his business growth.
[00:19:57] - Transitioning to Digital Vehicle Inspections: Mike explains how moving from paper to digital inspections enhanced trust, customer understanding, and streamlined operations.
[00:23:06] - Accountability with Digital Inspections: Craig discusses how DVIs improve accountability and transparency, making it easier for technicians and advisors to communicate vehicle needs effectively.
[00:34:02] - Setting Standards in Lube Shops: Mike details his experience acquiring lube and tire shops and the challenge of introducing structured inspection processes to improve service quality.
[00:42:16] - Hiring for Values, Not Just Skills: Mike shares his strategy for scaling ARD Auto by focusing on hiring individuals aligned with company values, which drives better customer service and shop culture.
[00:49:22] - Growing People to Grow the Company: Mike outlines his vision for ARD Auto's future, emphasizing people development, structured onboarding, and leadership growth.
[00:53:51] - Industry Ambassadors and Communication: Craig and Mike discuss the need to change the perception of the auto repair industry, positioning technicians as skilled professionals and improving communication skills across the board.
[00:42:16] - Leadership and Accountability: Mike talks about the importance of empowering technicians and advisors to make responsible decisions and own their roles in the shop.
[00:54:11] - Key Takeaways for Shop Owners: Mike emphasizes that successful shops focus on transparency, integrity, and proper communication, backed by effective training and leadership.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=vDGT_B2d9qs
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Episode Transcript DisclaimerThis transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.
Episode Transcript:
Jimmy Lea: Good morning, good evening, good afternoon, or good night, depending on when and where you're joining us from. Today is a beautiful day outside. It's absolutely gorgeous. So excited to be here with you today, my friends, as we have this phenomenal discussion with two rock stars of the automotive aftermarket.
Jimmy Lea: We, we are gonna have a great conversation. And I'm excited for this conversation 'cause we first, we're gonna start by talking to, well, first buy, no, we're just gonna bring 'em both in at the same time. My guests today are. Craig O'Neill from Auto Flow. Thank you Craig for being here with us as we have this phenomenal discretion.
Craig O’Neill: Oh, thanks Jimmy. Glad to be here.
Jimmy Lea: Yeah. And how many days did we work together at the same company?
Craig O’Neill: I don't remember how many days. It was like three months. It was, yeah, three weeks.
Jimmy Lea: It's one of the two. Oh man.
Craig O’Neill: Been following you around though.
Jimmy Lea: Hey, we got a good thing going, brother.
Craig O’Neill: I appreciate our relationship, my friend.
Jimmy Lea: Absolutely. And joining as well with us is Mr. Mike Ard from ARD Auto up in Fairbanks, Alaska. You're very close here to the other Fairbanks of Alaska that just chimed in as well. Good morning, frontline Mike. Glad you're here, brother. Glad to be here. Thanks for having me. Nice. Now, how is I heard a story that must be told.
Jimmy Lea: And it is. How did you Craig meet Mike? Or is it Mike? How did you meet Craig?
Mike Simard: Oh boy. We made a production together. About feeding cars with baby bottles.
Craig O’Neill: Yeah. There was a baby bottle involved. A large one larger than this water bottle. But is that the Institute Summit 2023, your inaugural summit And we won Summit.
Craig O’Neill: Yeah. And we won.
Mike Simard: We won. We told the story and the story told the truth and we kicked butt. So we told the best story that day.
Jimmy Lea: Yeah. Oh, I love it. I love it. That is so cool. That is so cool's. One of those really good
Craig O’Neill: team building projects too. You just meet cool people in that time and that was fun to be a part of that.
Jimmy Lea: Yep. Yep. Very cool. We had a phenomenal institute, summit in 25 here earlier in February. Phenomenal, very successful. Many shops were there, had many great inspirational presentations. Beautiful. That was awesome as well. It's a good spots
Craig O’Neill: at a good time of year. I always appreciate those trips that bring me to Florida around that February threshold there.
Jimmy Lea: Right.
Jimmy Lea: We'll have to.
Craig O’Neill: I know Michael doesn't mind. I've only seen him that's dark from Alaska, but every time I've seen him it's been in Florida.
Mike Simard: That's right. Every time.
Jimmy Lea: That's awesome. Well, and our, we ha we are in the depths of planning our 27 so news to be coming soon. Gonna be on Alaska this time?
Craig O’Neill: No, not in February. That'd be fun.
Jimmy Lea: Alaska in February I think. Not I've done that once before.
Craig O’Neill: No, dog sled team building exercise would be pretty
Mike Simard: That's right. We could make it fun. We could feed the dogs with the baby bottles and and echo. That's right.
Jimmy Lea: In fact I think we were at the finish line, the hotel, the conference, the trade show was at or near the finish line for some sort of a dog race.
Jimmy Lea: I don't know if it was a Iditarod or not, but it was a dog race and there were a plethora of sleds and dogs and it was very cool.
Mike Simard: Yep. Very cool. Anytime. You're welcome. In February and January, especially those times of year, we need some extra comfort and friends in Alaska.
Jimmy Lea: Hey, bingo. Well, there you go.
Jimmy Lea: So my next trip up to Alaska will be in February yet again. There you go. Mike I'd love to talk about your story and your shops and your success and your journey. So really I want to take us all back to the beginning because we've got a lot of friends, a lot of fellow shop owners that are in the first stages of their business, and there's always these great stories of these successful shops, and what is it that they're doing today?
Jimmy Lea: Take us back. Take us back. For the guy who just started his shop a month ago, a quarter ago six months ago, a year ago, what did you do when you started? What did your shop look like? What was that facility? What was what did you do? How did you get started?
Mike Simard: Well, my story started in 95 when I drove up here.
Mike Simard: Always knew what I wanted to do, so I was blessed with, I was blessed with that. And so it's good to know what you want to do and what you like to do, and I always like to figure out hard problems and try to make a connection with a customer or someone else in that particular case. And so when I got here two years later, I started the company and we expanded and it grew, but it really started with.
Mike Simard: One customer at a time. So we built a 24 by 32 square foot shop ourself, and we just literally started with one customer at a time. In asking for referrals, trying to do a good job. It was a lot of hard work. So I always say Michael Jordan didn't come out of his mother's womb with a basketball in his hand shooting, shooting like he did, right?
Mike Simard: So it took a lot of time. Success doesn't happen overnight. And success is. You know, in, in it's only perceived a certain way and the struggles it takes to get there is difficult. But I do remember the most important part of learning how to start a business and have customers, right, that want to come back is it really started with transparency and started with communication.
Mike Simard: Realizing that customers don't like to be sold. They like to be empowered and educated to make good decisions. So, that's kind of where we started and we kind of grew from there into seven locations that we have now.
Jimmy Lea: Okay, so I yeah. Just so many questions for you right now, at this moment.
Jimmy Lea: First of all, 97, 95 to 97, that's two years. What were you doing for two years that you finally built the building and launched the business? What was that two years consisted of?
Mike Simard: Well, started a family got married in 99 as well. So there was a lot of activity. It was very busy at that time.
Mike Simard: And really just kind of getting established in Alaska. Okay. So I worked heavy duty for about a year.
Jimmy Lea: You were wrenching, heavy duty?
Mike Simard: Oh yeah, full on, full wrench. Call me a wrench. Still a wrench at heart. So yeah, I fixed cars in my own little shop. But before I did that, I worked a dealership for about a year.
Mike Simard: I worked heavy duty. I even worked I remember to buy my wife her wedding ring. Saved up for two weeks, working out in zebu, which if you don't know where that is, you can't drive there, you can only fly there. It's a village out there below Nome or around Nome. And on the west coast, Alaska.
Mike Simard: And I worked on a drill rig. I. So I fixed everything and anything that was put in front of me, build dozer, tranny, I mean, just stretched myself beyond, made a ton of mistakes. I pulled a couple of transmissions out, an engine or two that I messed up. So one of the things I can tell you the way I learned.
Mike Simard: The hard way. The hard way.
Jimmy Lea: Yeah. The busted knuckle way. The Fort Knox way
Mike Simard: hard, Knox way. Very tough. I can definitely empathize with anybody. Starting a business. Just started a business struggling. And I will tell you something. If you want to run a business and grow, get used to hitting the ceiling often.
Mike Simard: Oh yeah. Hitting the ceiling often, meaning you, you reach your capacity. You run into a roadblock. It's not for everybody. No, but those are the times when you look back on your life. The biggest struggles you have is where you learn the most. It just doesn't feel good at the time.
Jimmy Lea: Oh, it doesn't.
Jimmy Lea: It doesn't. And speaking of transmissions as you know, Craig is also a wrench from a transmission shop. Craig tell, I don't even, Mike, I don't even know if you know this story of Craig being called out of class.
Craig O’Neill: Oh yeah. Yeah. My first class that I ever took in management training versus being a technician.
Craig O’Neill: Yeah. With Bob Greenwood at the time. And that was I remember just this being, this, I learned hard too. Michigan, Alaska have some hard, I think Alaska has a degree notch. Higher than that for sure. Roughness.
Mike Simard: Yeah.
Craig O’Neill: Man. Cold day in February, Michigan. I was sitting in Bob Greenwood's class. He asked that question, what's your job?
Craig O’Neill: And I had the smart Alec answer that any technician in a room of management trainers would probably say is that I fix cars. Proud answer, right? Bob got in my face, he told me what I'll never forget, and I often share, no. Your job, your professional responsibility is to make sure the vehicle's safe, reliable, and efficient.
Craig O’Neill: That's your job. How can you do that unless you inspect every vehicle that comes into your bay? Amen. Finally busted my mind wide open on how I approached everything. 'cause otherwise I was proud to do the transmission fix, do the big stuff, make customer happy by make transmission go good now. And that's not all there is to it.
Craig O’Neill: It might go good, but it may not stop. Yeah, we would that we weren't a general repair shop. We were happy in those days sending everything to everybody else. But as everyone knows in the transmission industry, that evolved yeah, well evolved really everyone else started doing replacement units and that became a real challenge for us.
Craig O’Neill: We had to that Oh, for sure.
Jimmy Lea: Yeah, for sure. Make it go. So, so to Craig, to you're inspecting every vehicle. Mike, when you started you spoke about how when the cars came in, you inspected the vehicles and this was important for you because an educated client, an educated customer, makes better decisions.
Jimmy Lea: What was your process in the beginning?
Mike Simard: So, you know, the, what I wanna impress upon what I learned I guess, is going through a lot of different trial and errors is that, you know, the more and more you talk to customers and you fix their cars and you really try to see what they want. 'cause what they really want is they want to be treated fairly.
Mike Simard: They wanted to be treated with dignity, they wanna be treated. They don't wanna be talked down to. We always, for example, really tried hard, and my wife made sure of this, that like, if we can help serve the customers the single mom a woman that comes in, like anybody, it doesn't matter. I always say, if it's your grandma, it's the president, it's the pope.
Mike Simard: It doesn't matter. Treat them the same. Yeah, like treat them the same, treat 'em with respect and don't talk down to people. Guys pretty much always think they know what they're doing and they'll tell you what's wrong, their car and women won't. So there's different types of people that you need to talk to, but the information remains the same.
Mike Simard: So the first aspect is what's the information that the customer needs, and then how do we communicate that? And so as I went through that process, you know, originally it was. Well, when you're doing it yourself and you're the one guy, and I'm sure a lot of people listening to this is one guy, one gal, right?
Mike Simard: Doing it themself. You're maybe fixing the car. You're running service. I've been that person. You know, Craig might have been that person. It's tough. So you just do things. So, you know, if you're talking about scaling. It's tough to be the center of attention doing things, but that's really where you learn, that's where you cut your teeth.
Mike Simard: That's where you learn how to shoot 10,000 hoops while everybody else is parting. Like, that's how you become a master. You miss 9,000 of the 10,000 shots. So in that process, every time you look at the car, if you make a mistake, maybe they went down the road and it was making a noise that you didn't catch.
Mike Simard: One of the things that differentiated us, and I believe the brand. And it's difficult to retain this type of thing as you scale is to retain that quality. So it's like, I came in for this, the customer came in for X. Okay. What they think they want? Okay. But really, and it has to be done with integrity.
Mike Simard: See, this is the, this is where are your values of that shop? But you really want to help them see what they need. Yeah. Now you can be manipulative with that. So you have to be careful. So where are your foundations, your principles and values? Who's working for you? Are they following them? Do you have a process?
Mike Simard: That all came later. Okay. But it's usually win later.
Jimmy Lea: Win later. Well, from starting, 'cause you were the, you were it, you were the brain in the start. Right? Which is typical. Was most typical. Yeah. And then you expanded, you hired more technicians, and then you discovered, oh my gosh, I've gotta have policies, procedures here.
Jimmy Lea: So they do it the way I did it. So when did you implement some of these policies, procedures?
Mike Simard: So it started, I remember the day that you know, the institute RLO recruited me and I said, no, I remember exactly where I was in the shop and that, that saying no to getting coaching and learning from my peers cost me a lot of hard ache and sleepless nights and time and money.
Mike Simard: And because you're learning it all on your own. So it's always good if you can when you think you can't afford it to be, if you're not around better people or coaches or training and you don't think you can afford it, well, you can't afford not to. I learned that. I think that was I can't remember what year, but just say it's 25, 26 years ago.
Mike Simard: Well, two years later I woke up and we had been working on some things. So one of the things we always do, just to kinda answer your question is we got together often. We talked about what's working, what's not, what's going right, what's not, what can we do better? The customer went down the road and maybe they had a new squeak they didn't have before.
Mike Simard: How could we have made that better? If we could have so inspecting the car, having, what are we inspecting? Like, what should we do? How long should it take? What should our test drive route be? We started working on those things, having lunch every week and listening to people around us, the people doing the work.
Mike Simard: I was in the middle of them. So when we talked about something that happened, we all knew. So we can go right into problem solving moments. Let's try this week. So it's very important to get your team engaged in collaborating what you're doing, especially if you're rolling out a new inspection program, you're trying to create more transparency.
Mike Simard: Just get your team engaged. Because if they don't believe in it, right, they're not gonna want to do it. Their behavior never lies, so it's easier to do that. Then we met the RLO, which is now the institute. And when I got into those groups then I realized, oh everybody else is like me. We all have unique strengths and weaknesses.
Mike Simard: We're all learning. And then things begin to accelerate because I didn't have to make it up with my team. We could just ask. And some of those things came easier.
Jimmy Lea: Oh yeah, that, that peer to peer, when you're able to have those collaborative discussions, that might be something that Craig's already experienced and you're like, oh my gosh, this is new.
Jimmy Lea: This is huge. This, I can't even get through this. And Craig's like. Nah, that's just Tuesday, man. We got this.
Craig O’Neill: Yeah. I see a lot of the same behaviors across the nation. And I always look at Alaska too, and I, it surprised me like Michael, like you, you have to have seen multiple times, like in that environment.
Craig O’Neill: There's some big distances. Some of 'em can't be traversed by vehicles, but even the ones that can, it's. Seems to me the RAM ramifications of failure have some really dire consequences in that environment. So a vehicle that could see a breakdown there, it seems like anyone that would be inspecting a vehicle understands that and would be totally bought in all the time to doing a very thorough inspection.
Craig O’Neill: Educating the customer on what they actually do need that isn't always natural, is it?
Mike Simard: No. So one of the, I think the hardest thing is of being a leader is bridging the gap between the vision and reality, you know? You know, without the vision that people shall perish. So that's a very important thing.
Mike Simard: Well, there's also a matter of you can cast a vision, but you also have to walk the talk. Yeah. So there's a, you know, and I'm tend to be more visionary, and in the beginning I was more tactical. So as I've grown. You know, the distance between the vision and the tactical gets greater.
Mike Simard: It's, you know, again, having good transparent systems good inspection processes that can go out helps. But to your point Craig, you can do an inspection. So just last week we were talking about measuring DVI, so just saying just this is one of the things we're gonna know. In our fast paced lube shops, we have two different models.
Mike Simard: We have lube shops, we have three of those. Lube and tire fast paced. Yeah. Different type of customer expectation for their experience. Totally. Okay. And we have comprehensive, and we always excel at the comprehensive, so I know that well. So bringing in inspection process to those that you would think would know what you're saying about Alaska in particular, about how you could literally die at 50 bull.
Mike Simard: If your car launches off a snowbank and no one sees you for hours, you could die. Trapped in your car, die. So if you hit the brakes around a corner doesn't work, you inspected it, someone's gonna probably call you. So it's important that that we teach that vision early. You're 'cause a lot of people just come to start a job.
Mike Simard: Hopefully
Mike Simard: they find a career. Hopefully they see the vision. So you have to connect that with their, bla their brain and figure out what is their belief. So if their belief is this is important 'cause my grandma could be in every single car I'm inspecting.
Mike Simard: Yeah.
Mike Simard: And I care about grandma, hopefully like grandma, right?
Mike Simard: Yeah. Then I'm gonna treat it the way you said to keep grandma safe. And that's a challenge today with the younger generation. It's just a challenge with the workforce today. We have a passion for the industry, so we're not just here fix cars. We're not just here for that. We're here to provide solutions and transparency, change the face of the automotive industry, not just in Alaska, but working with our peers, our friend friendly shops and the country and the world.
Mike Simard: Like how do we do better on the planet while we're here?
Jimmy Lea: Oh, I love it and I love that you're educating your customer, educating the client. This is what your vehicle needs. This is what your vehicle's telling me it needs. I know you came in for a leaking radiator, but your vehicle's also telling me you need all new hoses.
Jimmy Lea: You need brakes, you need a brake flush. You need new pads and rotors. There. There an educated customer is much more intelligent. So at what point did you go from a let's say a paper inspection? 'cause it sounds like you were paper inspection from the very beginning. Day one. When did you go to a. A digital vehicle inspection?
Mike Simard: Good question. 'cause I think being in part of the group process, we saw a similar thing that I bet you some people are going through and I'd love to talk about this for a minute. So from the, it was so we started the newer shop in 99. And so we had more technicians and so there was more things going on all at the same time.
Mike Simard: So we had to get something on paper and it was a paper inspection. So I love technology. It's, it was harder back then. But we used to scan in the inspections. I think cell phones were coming along, but they were like the big blocky things, right? So, and then we'd email 'em. So scan 'em and email 'em and then go over it.
Mike Simard: But it was like one page. I still miss it actually. 'cause it's really easy to teach because if you get an auto flow inspection it's all on a tablet, which most of us familiar. Right. But you get one page you can scroll. But the cool thing about one page of teaching a new person is like, this is everything we do on a 30 point or a cursory or a complimentary inspection.
Mike Simard: And you can use it as a teaching tool. It's like, this is the overview of the vehicle. 'cause they're looking at a vehicle and they don't know it and it's like, well, where's the strut?
Mike Simard: So you have to start somewhere. And paper inspections were thing, so we, because of our training and our collaboration and the good people we had.
Mike Simard: To help build the company where it is. We said we gotta have a better way to communicate to them, but we really focused on, and this is one thing that I think people need to, like, if they think like just an inspection, digital inspection program, alone's gonna fix all this form. The real problem I see is like, do you already try to educate your customers?
Mike Simard: Yeah. Do you already try to pop every hood? And in loop shops is harder, I can tell you that. Do you already try to teach your technicians to always tell the truth, right? And make sure that information is being delivered to the advisor in an appropriate way that's efficient. Where the tech, the advisors don't have to go talk to them every time where you sell something doesn't need, like are you already working on that or not?
Mike Simard: Now a digital inspection platform will help. Okay. But if you're an owner that's just trying to implement it to fix other issues, like inspections aren't good under the hood, like the physical work still has to be done. You can't hire a robot to do that. You can't have AI do that. It requires somebody with the values that your shop has to bring that information into the system, into back then it was paper then it went to digital and it just, digital just made it easier.
Mike Simard: But our average roll was already good. That's the thing. Our average O is already good. Now, a lot of times I believe people will sell you this or that. And the other thing training, it should. There's some things that you should get an ROI inspection program. You should get an ROI. It will help your average O.
Mike Simard: But it won't do it for you.
Craig O’Neill: Correct. Yes. It's a human engaged process. I find it so funny, and I ran into, I run into this all the time, especially with quick lube places places that have that speed of service mentality, which is necessary for that part of the market. They find that they are up against a clock.
Craig O’Neill: They feel like they're up against a clock. They feel like that paper sheet like Michael was describing, has that one page. They move through that so much faster is the feedback that a lot of technicians initially will give. And I find that really strange 'cause I've seen the results on those paper inspections and I've observed them being completed before and a lot of times you don't see a technician going around the car.
Craig O’Neill: You see a check, check. You've heard the term pencil whipping inspections, right? The accountability that comes from A DVI basically is sures that there is some accountability of the inspection actually occurring and an actually occurring inspection. Would take longer than a non actually occurring inspection.
Craig O’Neill: We ran into that with a shop that we're working with right now that's a tire store, and his observation was brilliant. It's like, yes, we've been doing the paper inspections and theoretically you could say that the DVI takes longer on the digital platform versus the paper, but I. They're more thorough and they know that accountability is there.
Craig O’Neill: So I guess I would ask you on this, Michael, did you see an accountability piece enter once you were digital that was not able to be achieved before?
Mike Simard: So, yeah definitely it made it a lot easier, so we worked really hard to make sure back then and if you're a single store shop owner now it's easier, especially when you're in the center and it provides a way like paper provides a way to.
Mike Simard: Okay, this is outlined on a piece of paper. This is the menu. This is what we're looking
Craig O’Neill: at.
Mike Simard: Yeah. The standard over
Craig O’Neill: there. Yeah. You gotta have it documented.
Mike Simard: Yeah. And you can teach it from digital, from the start. Like a lot of people grew up in the digital world. Like I, I drove to Alaska and when the cell phone, we didn't dare pick up the cell phone bag because we didn not know how much it was costing someone else.
Mike Simard: That was Sure. We had the CB radio, so that's the day. Sure. That I grew up in chops. Wow. Okay. Back with O OTC 4,000, Atari six, you know, Ataris and Commodore 64 TRS eighties. Anybody old enough to know what those names are? That's the world I grew up. So paper was a thing. Yeah. So you can still do this today, right off the bat.
Mike Simard: You don't have to go to paper and then go to that. But it did make it a lot easier because a lot of people are wired this way today to pick up the tablet. And start inspect the car. Now the transparency is like pictures, like huge pictures. Auto flow helps you see the history. It sees the history of the work orders, like having that information.
Mike Simard: One of the biggest challenges I think, that create a sense of mistrust in the industry that we have is the lack of transparency. But if anybody understood what a service advisor and a technician has to what kind of data they have to simulate. At the speed, their brains can process it. Like a really good advisor, for example, has to take all the information from the tech, sniff out mistakes or in different texts, have different strengths and see different things they might miss.
Mike Simard: Oil leak every time. Okay. That's important. That's leaking over the manifold. So do we have a picture? Who's holding that team for accountable for that. So it helps with accountability when you have those pictures. But they have to assimilate all the data. What was the history? What's the TSPs, you know, what's the service intervals like?
Mike Simard: How am I gonna present this to the customer in a way that's digestible? Now if you're thinking about it from that way versus here's my paycheck, right? We all need, we all work for paycheck. I mean, we just get that outta the way. So that's why we're here today. We do this for a paycheck. Yeah.
Mike Simard: Hopefully we learn as we get older, I think we lose hair. We go great. We like, I gotta do more than just work for paycheck. I gotta actually satisfied with the career. Yeah. But the transparency in a digital inspection, like with auto folks helps. Super because. You have work order history, and you have pictures that brings a lot of transparency and accountability to the process.
Jimmy Lea: Yeah, I, and I think Jonathan's saying it very well there, that it breaks down the barriers. It breaks down the barriers with the clients so that they are more educated. They are able to see their vehicle. Now they can see what a strut is because you're showing it to 'em and they can see that it's seeping.
Jimmy Lea: They understand seeping. Leaking. Yeah,
Craig O’Neill: for sure. And but here's the thing, like we all know even like, like he's talking about the old technology. I love that. Oh, 99, early 2000 internet is in its infancy. What did we do? We had people come into the shop in many cases to show them things. Where in Michigan we have to give them their old parts back.
Craig O’Neill: It's one of the things, you know, so show the old stuff when they're done. It's a nice show and sell at that point. But this is the show and sell. And what I observed is a lot of the technicians really are like career technicians. They enjoy showing off their knowledge. They like it. Yeah. I've been the technician, I've been the transmission guy.
Craig O’Neill: Ego driven to an extent. When you do the complicated thing, it makes you feel really good. I'll tell you what, some of our better builders were the ones that could engage the customers that we brought in. And so yeah, this transmission's all part of the bench. Here's the problem, you know, they loved it and it was the easiest thing in the world once the customer saw it all apart.
Craig O’Neill: Saw the complexity of the thing. They understood the value of what it was that we were trying to communicate to them, and that person who understood the value, it was a quick and easy signature on what we offered. I loved it, and that's what the DVI can do without having the customer have to come into the shop.
Craig O’Neill: Absolutely.
Jimmy Lea: That's cool and I'm glad that you were educating those customers from the very beginning, even if it was across the CB radio. Hilarious. Okay, that's cool. Life Stop. Publisher
Craig O’Neill: made little like printouts for people back in the day and I took pictures with a old early digital camera, loaded them onto the computer and Oh my goodness.
Craig O’Neill: That was interesting though. 'cause I gave him a few pages of stuff, that kind of thing could be useful and was still a. What we would call a delighter today, something that other shops are not doing, and that's still where DVI is. And Michael, I guess like in your market especially, I'm curious on this too.
Craig O’Neill: I know it's farther apart. Even people are, your neighbors might be pretty good ways away, but it still stands out in your market, right? So you're talking about like digital inspections and Yeah. When they get that
Mike Simard: presentation. Well, here's what I've learned by buying a different set of shops, and I don't know if you wanna go into this, but I think a lot of, like, we have a lot of great shops in Fairbanks and they're a pretty tight knit group. And we wanna keep it that way. So I think a lot of 'em, and we share information together have a pretty good inspection process and are familiar with this technology. It's easier to get.
Mike Simard: It's easy to call one of us and we'll talk and help them for short. But here's what's interesting. Buying into the tire and lube business, I don't know why and who left them behind, but they, I tell you what, they're not all in the times as far as where we are today. I feel like these are CB radio days.
Mike Simard: Oh my gosh. So I bought these shops and is inspection even happening?
Mike Simard: No.
Mike Simard: Maybe not. I mean, it wasn't, the answer was no.
Mike Simard: Yeah,
Mike Simard: right. If it fell on your head, then the part was needed to replaced. But, and tire shops the same way, and I get it. Everybody has their niche, so some of, some people have their niche.
Mike Simard: But my challenge was this. It's like I know how run comprehensive, I don't wanna mess up the experience for the lube shop, but it's like we can do a little bit better, just a little bit. And it's better than most in that space as far as tire and lube. And people actually really appreciate if you present it in the right way.
Mike Simard: Yes. Again, what's the motive and intent behind the person presenting? Like that's important. So important. And it's something that has to be taught. Today's generation, customer service. And again, you're here for a paycheck. Okay, we got that. Good. You want to grow in a company? Yeah. Great. We want you to too.
Mike Simard: Now here's how you do it. Serve them well, tell them the truth. Show and tell the inspection. And the, that process is different. I'll be honest with you. We're still struggling the other day. For example short example of how to implement something like, I like to measure. I'm a DDIs profile.
Mike Simard: I like to measure towards a goal. Rally behind a goal. Let's celebrate when we get there and then guess what? The next mountain, we're already ready. I, if you don't know where it is, I can point. So we're going, but let's get some milestones down. So in the lube shops, we're still like, when I bought these lube shops, $110, 110 to 115 average row, we charge a hundred dollars for oil change.
Mike Simard: What's the value? It's Alaska prices, right? Not much selling, right?
Mike Simard: No, it's, yeah. Now we're up 1 92 10, which is probably, I'm more a little worried it's going too high, which we're in a comprehensive stores, we're eight to 1200. Okay, sure. So there's the difference of good quality inspections over time with a different model.
Mike Simard: Now when the customer comes in we want to not just sell 'em 'cause we want to get to average up. I mean, that's the idea. What is the right things that they need today? Is their car breathing clean air? Is the wheel gonna fall off? Yes. Are the brakes grinding? Like if the brakes are gonna grind and the caliper's gonna go and the rotor's gonna go, now it's cost you more money.
Mike Simard: So the goal is through this transparency of process through inspections and presentation, which is abbreviated. So that's our challenge is to make sure we present the information every time. So the other day we were measuring at 90 something percent dbis and presentations. Well, they started looking and this is one of my busiest stores in Anchorage Tire Shop, where it was 95% tires when I bought it.
Mike Simard: We've got a picture of a bumper. So they were getting their bonus on completions.
Mike Simard: Oh no. It was a bit of
Mike Simard: a bumper to get the completion rate. So obviously, but what I'm point trying to point out is, you know when you said, Hey Mike, you've been successful. It's like success really is every day I wake up, we choose to serve each other and help each other succeed.
Mike Simard: That's where success starts and ends every day. 'cause you can get up tomorrow and be like, I'm gonna go. Fishing all day and let my team do that. So we always have to be vigilant to make sure because of the transparent ability process and the abilities to look with auto flow and say, Hey, let's take a gander of those pictures.
Mike Simard: We got a picture of a bumper. So then we realized, oh, we're measured for completion. We're driving that performance under stress. They're probably not presenting the bumper to sell. Nope. So guess what? I said, what can we measure now? Which it's not quality, so it's more important to get it right.
Mike Simard: Honest, transparent. Talk to the customer, it's quality over quantity. So that's gonna be the battle in any shop if you're busy, especially lube shops that are trying to do something from not inspecting cars to get to profitability, which is raising your average roll, but using a great platform in auto flow, for example.
Mike Simard: Just one of the great platforms, it keeps up very well. Has a lot of great tools to do that.
Jimmy Lea: Oh, that's good. You know, you've gotta inspect what you expect. I've seen pictures of bumpers. I've seen pictures of shoes. I've seen pictures of toolboxes and it just goes to the point of the proper PR training will produce the proper results that you're looking for.
Jimmy Lea: Yeah. But if they don't understand the reason why they're gonna take pictures of their shoes and the cat, and the dog and the bumper and it's accountability
Craig O’Neill: still important. Especially for consistency, like Jonathan just mentioned in the chat it can be a struggle to get technicians to do inspections consistently.
Craig O’Neill: And when I approach things for my role with auto flow has always been on training and adoption, first and foremost, get inspections going. Just get them going, get the baseline skills going in place, that pictures are being taken. Great. We have progress right then that service advisors take it. Take the results, build an estimate, and deliver the inspection to the customer.
Craig O’Neill: And you would think that doing the inspection is the thing that most shops have a struggle with. It is not. It is actually the advisors taking it and doing something with it. And that is almost every single shop that is new to the technology. And so really. That first line of defense for accountability and consistency has to begin with that service advisor.
Craig O’Neill: Understanding the reason you do the inspections in the first place. Receive them, do something with it. And if they don't see the results outta the inspections from the tech, they've gotta work with guys like Michael. Be the advocate. Don't wait for Michael to come in and swoop in and help with the accountability.
Craig O’Neill: Be that first layer of accountability, and that requires empowering your service advisors with that responsibility. Takes 'em. Ownership of it, and that's when changes really start to take place. They own it. They will make sure it happens.
Jimmy Lea: Yep. We call that the 300% rule. Oh, yes. Every car gets inspected, every recommendation gets estimated, and every DVI estimate gets shown to the customer.
Jimmy Lea: You do those three things. If your customers would be better educated and respond so much better to your shop and to your recommendations, they become lifelong customers for sure.
Craig O’Neill: But it's an advisor thing, and I'm sure you've ran into this too, Michael. You have a great team. I've enjoyed talking with several of those guys and they seem to get it like really good, especially the guys in your Quick loops who are, were a little bit newer I think to the DVI process at the time.
Craig O’Neill: But once they started to see that it isn't actually just for sales. It's also covering their butts.
Mike Simard: Things
Craig O’Neill: that bite us all the time in the industry. That's sort of, these aha moments start to come in. I, and once they have those, that's why just getting pictures, sending them, having the experience with the customer is so important for me as a first step is really, once you've self-actualized in that you start to see the results, those quick wins that gets the buy-in from the team more than anything else.
Mike Simard: And having a champion too. So as you mentioned, it's a struggle to get his guys doing inspections. Here's the thing, as you guys stated, if the advisors know anything with it, you know, the most thing that's gonna frustrate the tech back to one of your guys' points earlier Yeah. Is if you don't present all their hard work, you underhood for 10 hours and you know you got the best job in the back done.
Mike Simard: The advisor's like, yep, car's done. And then you give 'em an indifferent experience and take their money. It becomes transactional and they don't present any of the inspection items. Like you can put your own dot in here. And so that's really frustrating. That's why the text. It's a lot of techs are a bit quirky and they're bit like, like, like just technical minded, wanting to fix everything.
Mike Simard: Yep. Yeah.
Mike Simard: But something happens when they come. A lot of 'em, when they come in front of a customer and they're so proud to present what they've got. So first thing is, I would say have talk to someone that knows. Get training for the guy that said it's tough, meet every week. Let's go over this.
Mike Simard: Like, you're not letting up. Let's go over this. Yeah. But are you measuring? So there's a 300% rule. All those things were measurable. Okay, in the beginning we did, we paid for some inspections. So here's a couple tools. You know, if your pay plans are fighting against the behavior you want, look at your pay plans.
Mike Simard: Are you rewarding the right behavior? So for example, I just told you an example of a mistake. A bit of a mistake is we spiff for completion. We didn't fiff for goodness.
Mike Simard: So, so guess what? Continuous evolution of life
Craig O’Neill: till the day I die. So we gotta look at the benchmark score. Gotta look at that.
Craig O’Neill: AutoFlow with you, Michael. We'll set up that benchmark score rating system so you can see the score on each one. I knew you help with that. See
Mike Simard: we were gonna call you and say, we've gotta fix this thing now. But at least we got every car inspected. Just 20% aren't as good. Now the other thing we shifted is we put some of those guys on and gals in performance.
Mike Simard: So the performance, and there's a team performance component of soon to be quality because we actually talked about this meeting this week. Now instead of completion, how about doing it right every time? Yes. And yes. Some techs need, you know, in the beginning we actually paid like 0.2 for an inspection.
Mike Simard: That's a good way to start. Now the way we did it was this, if we pray for inspection. Technician. This is more the comprehensive model. We own it. We'll do whatever we want and give it to anybody we want. Yeah. That there may not like that. Now at our shop, we do an inspection. Our average tickets are 3.5 hours.
Mike Simard: Right. So you might, the fastest text I know said, give me every darn oil change you've got. I'll do every darn inspection. I do it real. They do it the same way every time. Yeah. Okay. Because you can sell the pants off it in a way that the customer, again, honest sales. Okay, so that particular type tech we're like, don't pay me for the inspection, just give me as many as you can because there's gonna be 3.4 hours for every job versus that 1.1 you're giving me now where if I give a tech 0.2 or 0.1, I might give it to another tech.
Mike Simard: Yeah.
Mike Simard: Okay. But they're like, no, you sell work here. So I want it all. It's like, okay, so can we take the 10 minutes or whatever it takes at your shop to do an inspection, create transparency and trust. The more we do that, the more they come back, the more our jobs are secure and you know, there's a little bit of satisfaction.
Mike Simard: Go home at night saying, I kept you safe at home. It's 50 below. Yeah, I gotta get my grandma outta dialysis. Okay. In Anchorage. Six hours drive in the middle of the night. And I, it's one of my fun stories. It's like if your grandma was going to dialysis at 50 below and you wouldn't go to Anchorage for that, by the way, but just the story, you wanna make it and not die.
Craig O’Neill: Yeah.
Jimmy Lea: No, nobody wants to die.
Mike Simard: Well,
Craig O’Neill: it's
Mike Simard: a sense of purpose
Craig O’Neill: that goes into this, and you've look Alaska. I understand you guys have turnover issues just like anybody else, but you also have to compete with the fact that coming to Alaska is hard and expensive. I just did a podcast with some missionary friends of mine that are going to be coming down there over in Kenai, little south of you, and they have to spend twice as much time gaining support.
Craig O’Neill: To go into a mission in Alaska, not because they'll make money or anything. It's twice as expensive to live there at all. And that's, it's just a harder place. You guys have to deal with so many things, and when you have people that understand that there's a sense of duty and purpose behind this, it takes away some of the money element for a motivator.
Craig O’Neill: I don't. I'm I once my needs are met. Once you have a decent lifestyle, the money motivation starts to diminish. You need to have fulfillment in what you're doing. And for me, that was a big aha thing. Once I started doing inspection in the shop, I felt like I had a true sense of purpose behind the activity that I'm doing isn't just for that paycheck like you were holding up earlier, Michael and the young generation, gen Z, millennials, they all cite having a sense of purpose, like a mission, a purpose.
Craig O’Neill: Is key to their satisfaction in even coming into the industry and working with you in the first place. I guess I would be curious too, if you've been successful, Michael, and in the interview process of saying, Hey, this is something that we do here and here's why do they clinging onto that? Why I.
Mike Simard: So that is again, one of the challenges of scaling.
Mike Simard: So we wanna find people that have the same values as us. 'cause it's really hard to if mommy and daddy didn't teach it, they didn't have a good upbringing and a lot of us didn't. Okay. And you should definitely treat everybody with fairness. But some of those behaviors are not necessarily gonna change.
Mike Simard: So find someone with those values that, that you uphold, that'll make life a lot easier. And I get stuck a lot of times in thinking I can change that.
Mike Simard: And
Mike Simard: so starting with that, and then really starting out with, in the interview process, through the onboarding, which we're really working to strengthen now this is who we are and this is who we want to be, and this is where we're going.
Mike Simard: So what's the vision and who we are as a people. This is how we handle mistakes. We learn from 'em. Like they don't create an environment that you can't make mistakes. Like tell me if you forgot the DVI, let's figure out what it is. That's in the way. If you've got a team, that's not the behavior and actions aren't what you want.
Mike Simard: We've gotta go into belief. This actually came from the institute, mind blowing. I got this right up here. Steps to accountability. Oh, right. From Jessica? Yes. And it's like belief, like we kind of knew it, but it's like she put words to it. It's like, ah, well your behavior's telling me what you told me yesterday isn't probably what you really believe.
Mike Simard: So if they're not doing it, okay, and if you gotta start with their paycheck, start there. Sure. Some people have to start there when you're barely making rent, so they gotta be empathetic with what their situation is. Okay? Don't forget about that, but tie this. Goodness to, Hey, you know, we can all do well here if we're transparent.
Mike Simard: Let's use these tools. What's in the way? Continuously every week, this guy's not gonna let up. Or maybe the team spiffed on a program of quality inspections. And, I mean, just because a lot of us have been this while I guarantee the customer are like, ah, more trustworthy. 'cause they're more transparent.
Mike Simard: I feel like I made the decision and then get shoved down my throat when I usually go to a shop. And I feel like these people care. And as a matter of fact, I couldn't do it all 'cause I couldn't buy groceries this week. But I found out what I needed to do and I can do those other things later and they said I'll be okay and I feel like I can trust the guy that used to be a training builder that came to the front selling, starting serving
Craig O’Neill: up AutoFlow.
Craig O’Neill: Dude, you mentioned something though. 'cause Dr. Jessica Kriegel was at the recent Institute Summit down there in Jacksonville, Florida. So for the audience listening that couldn't be at that summit, Carm Capto did do an interview with her. It's on Remarkable Results Radio. It's his episode number 1 0 3 5.
Craig O’Neill: And you can get a sense for if she has this three steps to real employee buy-in. Guys, you bring the guest at those summits I that some of the. Best speaking above the
Mike Simard: line and below the line, thinking like, I use that every day. I have a whiteboard and I have a big line. Yes.
Craig O’Neill: Me and Brandon joke on that.
Craig O’Neill: One of my teammates here at Auto, Brandon Che and we, it was, oh, that's below the line, man. You wanna go below the line more? Yeah, let's do it for a minute. You know, it's just a dude, Jeff. Check it out. Jimmy. I gotta give you guys, if they don't
Mike Simard: know, it's just meaning we focus on solutions, what we can do, or we focus on everything we can't do.
Mike Simard: That's a very common thing in our world, in our shops. So I can't do an inspection 'cause of this. Let's write it down. Let's go through one at a time. Let's start talking about what we can do. And that's above the line. So,
Craig O’Neill: so good. It is, it's always beliefs. Their beliefs, you have to get to the core of it with their conversations that they don't believe that doing a DVI is vital for the safety and wellbeing of your clients.
Craig O’Neill: So that's something you can absolutely address. Yeah. Otherwise, you're just gonna be trying to tell 'em to do something they don't believe in. Amen. Yeah.
Jimmy Lea: Thank you. Thank you for the shout outs there for Jessica Kriegel and good for pointing out that Remarkable Results podcast. I didn't even think that had come out yet.
Jimmy Lea: I thought it was still in the works of being edited. So that one recent, that was phenomenal. Yeah. Yeah, everybody needs to listen to that one. And then also Dan Clark. Dan Clark was a phenomenal presenter. Did a phenomenal job. And then Ross Bernstein. Was Carm able to interview Ross Bernstein? I was on there.
Jimmy Lea: Look,
Craig O’Neill: that's a great question. People that are interested in it, the institute sponsors remarkable results. They sponsor my podcast, speak Up, effective Communication. I really appreciate that and these are really great ways. I'm gonna post a link for the Jessica Kriegel conversation in the comments for our audience here.
Mike Simard: She's a great LinkedIn learning module. I found where her content was, so that's magic right there. Some of my people took it like, oh my gosh, I can't believe no one's taught me this and I'm 60. Like, oh wow.
Jimmy Lea: So LinkedIn
Mike Simard: learning.
Jimmy Lea: Love it. Love it. Check that out. Let's look down the road here a little bit here.
Jimmy Lea: The vision ahead you, you talked about hiring for the. The core hiring for the vision for the the core of who the person is rather than their skills or skillset. As we look down the road and we're exploring more, what's the future of some art?
Mike Simard: Well, the current theme is we're gonna grow the people to grow the company.
Mike Simard: So the very first thing we gotta do, 'cause we hit another ceiling. We went from two to four to seven in like 18 months. And it was a lot of growth starting with me. So, everything from all our processes that customers used to leadership finance, I mean, those are all difficult things.
Mike Simard: It's easier when you're running one or two shops, so there's a huge growth curve and you've gotta be willing to pay the price. I mean, when you're in it, you're in it, you can't go back. And when you have people to serve and lead, there's no going back. You are the one that's gotta be there to serve and help them whether you're feeling like it or not.
Mike Simard: Yeah. So what we're doing now is building, consistent onboarding programs. We have A-A-A-L-M-S or a platform called WAY Book, which is all our internal processes. We call, I call it 90 things in 90 days. I like to make acronyms, by the way. It's fun, but 90 things in 90 days. Like what is the experience of a new employee?
Mike Simard: Because we found out we're not training them on everything, giving them all the tools they need to in the lube shops and the comprehensive models. So if we grow them there. And we're actually working with Michael Smith on something we've been talking about for years. Anybody that's been in the leadership intensive, like we want to take it beyond that.
Mike Simard: So I always say this, if you want to be an astronaut, and this was before we even thought we might get to Mars, okay? If you want to be an astronaut, do really well what you're doing. Make the money you need to make. Let's try to find a team. You know, we have multiple teams that, you know, find some satisfaction in your team of being transparent to customers making a good living.
Mike Simard: 'cause you could do that in this industry Now. And if you wanna go to school to work on Mars Rovers or be an attorney or something like ultimately this company, I hope it serves that purpose, even outside the company. Even if you don't wanna stay, some people leave because they don't like where they work.
Mike Simard: Okay? That retention's huge. But some people wanna do something else and maybe they haven't found what that is. So honestly, if this company could serve the purpose, because our purpose is serving the community by empowering team members, customers, and stakeholders. Anybody involved with anybody we touch at any time of day or night we want to enrich their lives and help them reach their highest potential.
Mike Simard: So it just happens. You know, the car is a vehicle to get to soccer, to get to dialysis, to get to training, to be an astronaut, which we don't have that training here yet, but let's help you get there to where you know your God-given purpose is found. You know, not everybody knows what that is, believes in that, but why were you on the planet?
Mike Simard: Everybody has a purpose. I believe that. 'cause it's strong in me. So whatever it is, you believe you're important and you're part of society and you're here for a reason. You're different, you're unique. Let's work together. Love it. It's gonna be messy to go further and higher and help each other grow.
Mike Simard: So, did I answer your question there? I can't remember what it was.
Jimmy Lea: Yeah. That was extraordinary. Yeah, for sure. Beautiful. For sure. Beautiful. Well said. I've got a a bonus magic wand question that I want to ask. If anybody in the audience has questions of Mike or of Craig, go ahead and type those into the comments bubble.
Jimmy Lea: My I have a magic wand question for you, Mike, and then I've got a couple of rapid fire questions that I just wanna throw at you, and whatever comes off the top of your mind. That's the answer. Don't think too hard about it. Just give it quick responses. So my magic wand question is if you could change one thing in the automotive repair industry today, what would you change?
Mike Simard: What I would change would be the narrative that I grew up in with the picture. And I don't know if anybody's seen this, but when I was in the guidance counselor's office, there was a picture of a greasy mechanic that was kind of looking dumb. And there was a college graduate. And that mindset, political, I don't know where it came from, is that the blue collars, the people that were all of a sudden essential during covid all of a sudden were essential.
Mike Simard: Anybody that's been welding and beaten their knuckles or serving customers for years knew we were essential because the firetruck doesn't run. The ambulance don't go, the doctor don't get to work. Now, I got kids in college. God one's gonna be a doctor and one wants to be a lawyer, like they have to go to college.
Mike Simard: If one wants to do brain surgery, he better freaking go to college. Understand. But my son's torn 'cause it's like I want to fix people, but I like to fix cars. So I'm like, okay, either way to be excellent at either one, it's gonna be hard. You're gonna pay a price to master that. So I would change the narrative.
Mike Simard: Whatever happened with the narrative, kinda like the food pyramid. Somebody messed up.
Mike Simard: Yeah.
Mike Simard: Someone messed up with the narrative about the fact that there's a lot of smart people in this industry and it downright just irritates the heck outta me that a lot of us already had challenges in broken homes or whatever.
Mike Simard: It's like, and then we come to this industry and you're not as good as someone's certificate. It's like we all matter, and the people in this industry are awesome and I mean, I bring apprenticeship and make a lot more money than my kids make. If they just stopped at four years without the debt. Yeah. So it's a great industry and that's what my heart is wanting to do is help other shops and help the mindset and it would've changed that a long time ago.
Jimmy Lea: Yeah. Help with the, help the public to know that our industry is awesome and amazing people in it work it Awesome. Amazing, great opportunity. Yeah. Craig, final question for you. Exactly the same magic wand. What would you change in our industry to make it better?
Craig O’Neill: I would put a strong emphasis on communication skills, my friend strong.
Craig O’Neill: I would get everybody involved in Toastmasters and focusing on those core communication skills. I think it's going to be absolutely critical in this AI era that we are propelling ourselves into. The better we are, interpersonal communication, connecting and making real, authentic relationships. You will be successful in any environment, and I think that now is the time to really emphasize it.
Jimmy Lea: Oh, I love it. I love it. Both. Your suggestions, both magic wands are very similar. I. In communication and changing the public's image of our industry. So industry
Craig O’Neill: ambassadors, right? That's what we should strive to become. And there you go. That really takes really not a lot, just your perspective.
Craig O’Neill: Shift a little bit. Little leaf. Good communication. Yep,
Jimmy Lea: Yep. Okay. Lightning rounds. Mike, you ready? Let's go. Biggest eyeopener after implementing DVI.
Mike Simard: Bus. Biggest eye-opener is that customers felt more engaged in the process and that they can actually see more clearly. The green, red and yellow is a mind blowing thing.
Mike Simard: It's just immediate understanding for the customer, and then it pictures create transparency. So I did not expect that coming from paper to the digital. Of that, that, that was huge to build trust.
Jimmy Lea: Nice. Most surprising benefit of improving your shop flow.
Mike Simard: Productivity increases when everybody's working efficiently.
Mike Simard: And productivity is the amount of time that the technician actually rents on a car. And so you gotta keep them on the car and that's a challenge in a lot of shops, so that's huge.
Jimmy Lea: Love it. Love it. Favorite feature in your current system?
Mike Simard: Well, in AutoFlow, one of the favorite features I love to see is the histories at their fingertips.
Mike Simard: So if the transmission fluid was flushed 30,000 ago, you know, the clutches were already slipping and burnt. When I recommended, again, I'm mindful of knowing that the transmission was flushed, so they may have a problem. So I'm gonna. As a technician, I'm gonna write that story a little differently for the advisor to not, oh, you just did that.
Mike Simard: And then there's a trust potential. Trust breakdown because of the data simulation. So the way AutoFlow presents the information is huge to create transparency.
Jimmy Lea: Love it. Love it. Last and final one thing. Every shop owner should stop. Doing today.
Mike Simard: Stop micro imagining managing and empowering your people and figure out where their belief really is.
Mike Simard: It's a hard one to do. Once you find out where their belief is, you can build upon the right things to get them to go where they want to go. So, you know, leadership is the art of getting others to do what you want them to do. Because they wanna do it.
Craig O’Neill: Yes.
Mike Simard: Yes. Totally agree.
Jimmy Lea: That's awesome. Thank you very much, Mike.
Jimmy Lea: Thank you, Craig. Really appreciate this discussion we've had today. Lots of questions coming in from the audience. Those that were not answered here live, we'll put 'em into the follow up email along with a copy of this recording. Of course it goes to Facebook and LinkedIn, not LinkedIn. It goes to Facebook and YouTube immediately.
Jimmy Lea: And it's there. It's up. It's on. It's ready to go. Rock and roll baby.
Mike Simard: Let's do it again and answer their questions some other time. We can certainly go do that.
Jimmy Lea: Yep. We can circle back. Well, thank you very much. You guys summit in
Craig O’Neill: Alaska? No,
Jimmy Lea: no. What's that?
Craig O’Neill: Summit in Alaska?
Jimmy Lea: Yeah. Summit in Alaska. That's a great Amen.
Jimmy Lea: Suggestion for a summer event. Yes, we could do that. That would be awesome. We'd have to go during the salmon season. It'd be fun. Let's go. Nice. Nice. All right with that, thank you very much. You guys have a great day and appreciate y'all. We'll talk to you again soon,
Mike Simard: friends. Thank you. Wonderful.

Thursday May 08, 2025
Thursday May 08, 2025
120 - Defining Expectations: Rewriting Industry Identity with Discipline, Humility, and Purpose
May 7th, 2025 - 00:55:37
Show Summary:
In this engaging episode, Jimmy Lea hosts Mark Seawell and Brandon Ballou to discuss the critical role of service advisors in the automotive repair industry. Brandon shares his journey from martial arts to the service counter, emphasizing the importance of discipline, customer advocacy, and process-driven approaches to succeed as a service advisor. Mark dives deep into the strategies behind effective communication, understanding customer needs, and the impact of proper training. Together, they unpack the parallels between combat training and handling high-pressure situations in the shop, while also addressing industry misconceptions and the value of continuous learning. The conversation underscores the transformative power of strong coaching and structured processes in building trust and delivering top-tier service.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
Brandon Ballou, Service Manager for Trustworthy Auto
Mark Seawell, Head Facilitator/Instructor
Episode Highlights:
[00:03:05] - Brandon's journey from martial arts to becoming a service advisor in his father's shop.
[00:05:57] - The critical importance of having a routine and training for service advisors.
[00:07:28] - How martial arts training equipped Brandon to handle stress in the service advisor role.
[00:11:31] - The significance of core values and being an advocate for the vehicle, not just the customer's wallet.
[00:22:11] - A powerful lesson Brandon learned about integrity and always doing what’s right for the customer.
[00:29:56] - Mark on the growth journey of service advisors and how training elevates performance.
[00:42:47] - How The Institute's training transformed Brandon's communication and leadership skills.
[00:54:10] - Brandon's wish to change the negative perceptions of the automotive repair industry.
[00:55:20] - Jimmy Lea shares how The Institute's service advisor training builds better communication, understanding of KPIs, and effective customer service practices.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=9XV6-iV9RGI
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Episode Transcript DisclaimerThis transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.
Episode Transcript:
Jimmy Lea: Good morning, good afternoon, good evening, or goodnight depending on when and where you're joining us from today. If you are in the live event, it's either good morning or good afternoon, unless of course you're on the other side of the world of us, and then it might actually be Good evening.
Jimmy Lea: Glad we are here together today. We are gonna have a phenomenal discussion. Love to have this interactive discussion as we're talking to our friends and our family. And I'm glad to be here with you, my family, my automotive aftermarket family. Put into the comments. This is to be an interactive webinar.
Jimmy Lea: Put into the comments your shop name and where you're joining us from today. Love to give you a shout out to all those who are here for the live event. As we continue to build and grow this network that we've got with great information and great knowledge and great interaction that we've got as we lock arms to really elevate this industry and make it the best that we can possibly make it.
Jimmy Lea: So we'll give a big shout out to Andrew Knutson joining us from Long Island. Good morning. Good morning for me. Good afternoon for you, Andrew. Glad you are here. Can't wait for that little baby girl to show up. That's gonna be awesome. And Stu, joining us from Salt Lake City, Utah. Glad to have you here, Stu, the ever present, Mr. Keith Brown Tire World in Salt Lake City, Utah. Keith, glad to have you here, brother. Good to see you man. Cody Morlock. Cody Advanced Automotive, Reding, California. I know Reding, California. I almost went to Red University. Reding, California. Glad to have you here with us Cody. Welcome. Welcome to our webinar at 42 Days and counting Andrew Knutson with The Little Baby Girl.
Jimmy Lea: You know, she'll have you right here and you'll love it. Having a little girl is awesome. Excited for our discussion today. We are speaking with service advisors today and as our main highlight, our main focus we have with us today are service advisor, trainer, facilitator, head coach. It is Mr. Ever present, ever.
Jimmy Lea: Wonderful, Mr. Mark Seewell. Mr. Mark, glad to have you with us as we discuss the advisor program. This is going to be awesome. Thank you for being here.
Mark Seawell: Glad to be here, Jimmy. Thanks.
Jimmy Lea: Nice. And oh, Brandon's on too. So today I'm excited to dive into this incredible journey with Brandon Blue. He is a powerhouse in the automotive aftermarket as a service advisor and as a former Kickboxer, MMA fighter, we're gonna explore how these two worlds have shaped the mindset, the discipline, the ability to lead a high pressure environment.
Jimmy Lea: Brandon, thank you for being here, brother. How are you? I'm doing great. Thank
Brandon Ballou: you for having me.
Jimmy Lea: Yeah. Glad you are here. What, you know, I'm gonna kick it right off and ask you right outta the gates here. How in the world did you get into the automotive aftermarket? I know that there's some family business here as well.
Jimmy Lea: For those who don't know, explain how it is you got into the role of a service advisor.
Brandon Ballou: So I got into the automotive aftermarket 'cause my father started a shop. My dad was always a technician. I was always around cars, helping him fix stuff on the weekends. And then he opened his own shop. And so I started there as a technician and then I left and did a short tour as a technician at a couple dealerships and then came back and was a tech.
Brandon Ballou: And then man, we fixed a lot of cars, but my dad with three techs, him being the advisor and the head diagnostician, he just couldn't balance at all. So he. Said, Hey, we're gonna try with you as the advisor. And with no training, no nothing. I got thrown on the front counter and that, that's how I got my start as an advisor.
Jimmy Lea: Dude, welcome to the deep end. It's swim or Survive. You either gonna swim or sink. Wow, that's amazing. He just threw you in and said, okay, have at it.
Brandon Ballou: Yep. Seriously.
Jimmy Lea: And how long ago was that, Brandon?
Brandon Ballou: That was a little over, it was about four or five years ago. Five years ago.
Jimmy Lea: Four or five years. So four or five years you were treading water, trying to keep your head above water, trying not to drown.
Jimmy Lea: Dude, that had to be tough.
Brandon Ballou: Yeah, it was a big change. Everybody, when you're in the back shop, every technician who's never done it thinks, ah, you know, you're just someone who answers the phone, books, appointments, and tells people what the price is. Until you start dealing with the public and realize people are way harder to fix than cars,
Jimmy Lea: right?
Jimmy Lea: I mean, that's all you do. You just answer the phone.
Brandon Ballou: Yeah,
Jimmy Lea: no, there's more to it than that. There's more to it than that. And what advice would you give to a technician who's never been an advisor?
Brandon Ballou: So, advice to give to a technician who's never been an advisor. Find a routine and find training.
Brandon Ballou: Find something that gets you in the same head space every day so you can, you know, have the same performance. Every day and get training because as much as you think you know about cars, you don't know anywhere near as much about people.
Jimmy Lea: Oh that's true. That's good. I wonder in our audience, how many of you in our audience have gone from being a technician to being the shop owner or from being a technician to being the advisor?
Jimmy Lea: I wonder if that's in our audience. How many have done that? I know Andrew, at least I believe Andrew didn't you wrench before and now you're the advisor. Manager and owner. So, yeah, put that in there for those of you joining us. And we are streaming live. We are streaming live both on YouTube and Facebook and on Streamy Yard.
Jimmy Lea: So where you're joining from would be amazing. Keith Brown came up. Keith Brown came up front about 34 years ago. So, Keith, were you wrenching before as a technician? Andrew was 15 years. 15 years as a tech. Andrew Cody shop partner, tech advisor, and then owner. Oh, shop? Porter. Porter. Wow. Wow.
Jimmy Lea: That, that's quite the road there, Cody. 28 years. Oh, he started when he was 12. I was gonna say, I've seen pictures of Cody and he looks 28. Oh, that, that is awesome you guys. So, question for you about your background in martial arts and kickboxing MMA. How did that journey help you in your role as an advisor?
Brandon Ballou: Being able to deal with stress and high pressure situations coming through any sort of martial arts or combat training you're gonna be under stress. So most people, when they get put in the advisor role, that's usually when everybody decides, is to either take it as a career and learn or change careers.
Brandon Ballou: 'Cause it's a much more higher stress environment than anybody who's never been in customer service can imagine. And so you either learned to roll with it or you change jobs.
Jimmy Lea: You know, I had in my mind you were talking about your role as a kickboxer, not as a customer service advisor.
Jimmy Lea: When it's high stress. Is that high stress?
Brandon Ballou: Yeah. Yeah, both are high stress because I mean, whether you're on the phone talking to someone who's upset about a problem and you're trying to offer 'em a solution. When our industry, everybody thinks we're just trying to cause more problems or charge them more, so we have that unfortunate.
Brandon Ballou: Label on our industry, but then going into the combat kickbox inside you have someone who's trying to kick and punch you and you're trying to kick and punch them without being hit. And I don't care how long you've been doing, nobody wants to get hit. So both are pretty high high stress situations.
Jimmy Lea: Oh, that's so true. So which is more stressful? Martial arts or service advisor?
Brandon Ballou: Oh, the front counter advising's. Way more s
Jimmy Lea: Yeah,
Brandon Ballou: because here's the thing, no matter what fight you're doing, whether it's boxing and it's, you know, 12 two minute rounds or three minute rounds, or three five minute rounds, or three, two minute rounds you'll have one round with a customer for an hour and a half on the front counter.
Brandon Ballou: So advising's way. More high stress.
Jimmy Lea: Yeah. Mark. They don't ring a bell and tell everybody, go to their corners.
Mark Seawell: You try. It just doesn't work.
Jimmy Lea: Yeah. How, mark, what do you what's the training or what's the advice that you give to your service advisors in your training program that helps 'em to deal with this high stress situation as a service advisor?
Mark Seawell: So, a couple things. Really preparation, if you're prepared, the better prepared that you are the more that you're gonna be able to manage. And mitigate some of that stress that occurs. After you're prepared, of course, you know, there's, there, there are different techniques to make sure that you're calming people down, using the correct body language, using the correct vocal tones, things like that, as well as having a good solution and putting yourself in the position ahead of time to have proper expectations so you don't end up in a stressful situation.
Jimmy Lea: Yeah. Oh man, that's so true. You know, with the Boy Scouts, that's their motto is be prepared. So the better prepared you are, the better the conversation will go because you're, you have the answers. And if you don't have the answers what advice do you give Mark when advisors don't have the answers?
Jimmy Lea: How do they get the answers?
Mark Seawell: Well, you first, you start with the truth. Tell the customer you don't know. And, that, that the truth goes further than anybody ever knows. And and then promise to go get the answers and get the answers from wherever you need. If it's if it's from the technician, from another advisor, or maybe your manager or a coach, go get the answer there.
Mark Seawell: Sometimes, you know, there, there's other avenues. You can even consult the internet and find a, at least a path and get that, get down the path, but. Ultimately the worst stress that you can potentially have is making up an answer and it not being right.
Jimmy Lea: Oh, yeah, no, that's the worst thing of all making up answers.
Jimmy Lea: No, please don't do that. Ever common
Mark Seawell: mistake with a new advisor.
Jimmy Lea: Oh, so true. So true. You know, Brandon be prepared as the Boy Scouts motto. What principle from your martial arts do you live by on a daily in both your personal life and in your professional life?
Brandon Ballou: Having a set of values and no matter what, you're not deviating from those.
Brandon Ballou: That's something at the base of every martial arts school or most martial arts schools, any good school whether they're a school training for competition or a school training just to teach kids proper skills and. You know, good habits. You need a core foundation of values. Always be respectful.
Brandon Ballou: Always tell the truth items like that so that cross reference over directly and on the front counter being trustworthy, no pun intended, I is the most important thing if you can, I. Talk to a customer no matter how bad the situation is. If you are sticking to your values and you truly believe you're doing what's right for that customer and you're sticking to what you know is right, it doesn't matter what happens, you are doing what's right.
Brandon Ballou: Yeah. No matter what happens, at the end of the day, you did your best.
Jimmy Lea: Oh, I love that. And
Brandon Ballou: that's something you, I learned directly from the martial arts coming up as a kid.
Jimmy Lea: So, do you fight for the customer or do you fight for the vehicle that's in the shop?
Brandon Ballou: So my job is I'm the advocate for the vehicle.
Brandon Ballou: And I'm not, and I work with the customer, but I'm the advocate for the vehicle. They speak two different languages. What the advisor really is almost a translator. So the car comes in and the technicians figure out exactly what's going on, and they give all that information to the advisor. The advisor then prioritize everything to make sure that vehicles in its absolute best shape.
Brandon Ballou: And here is everything your car needs because your car's not gonna tell you what it needs. That's our job. We tell you everything it needs now. I present it all and I talk to you, but based on your situation as a customer, I'll help and prioritize things and make a plan to get that stuff done, whether it's all today, whether it's over three months, what, whatever it is.
Brandon Ballou: But as the advisor, you're the advocate for the car, but you're there to help the customer.
Jimmy Lea: Oh I love that. I love that. What and in your role as a service advisor, when you were very first starting out, what were some of those? Challenges that you had as an advisor? 'cause I'm guessing that when you first started being an advocate for the car wasn't second nature for you, you were speaking more in the terms of the customers.
Jimmy Lea: What were some of the challenges you faced when you very first started out?
Brandon Ballou: The challenges in the beginning is we, I was almost an advocate for the customer's wallet or the customer's financial situation, which that, you know, that doesn't fix their problem. You know, finances are important.
Brandon Ballou: People need money to fix their cars, but if their car's unsafe, if their car's unreliable, I shouldn't be making decisions based on their. Financial standpoint, we need to make decisions on how can we keep their car safe and how can we keep their car reliable, and then offer as many solutions as we can to help them get there, given whatever their financial state is.
Jimmy Lea: Oh yeah. Because you didn't buy it, break it or drive it. You're just advocating for the car and it's customer that's gotta figure out how to make it work.
Brandon Ballou: Because if we're making decisions just off the financial aspect of the car, that car's just gonna get worse and it's become gonna become a bigger and bigger problem.
Brandon Ballou: Financially. It's keep the money in my bank account, why am I gonna put it in a car that's just gonna continue to depreciate in value.
Mark Seawell: Yeah, that's
Brandon Ballou: just the financial aspect of it. But when you look at the reality of it, the car needs to be reliable. So you can, when you get in it and need to go somewhere, whether it's your daughter's soccer practice or somewhere urgent, it's gonna start up and take you there safely.
Jimmy Lea: Oh, so true. So true. You gotta be an advocate for the car. Now, mark, question for you when we talk about an advisor selling from their own pocketbook. I understand that. What how do you break that idea? How do you break that habit, that, that mindset, what do you, as a coach, facilitator, what do you train your advisors on?
Mark Seawell: So typically that comes from two different places. First not understanding the concept of being the advocate as Brandon so eloquently defined. The you know, being the advocate for the car and while helping the customer. Because really what happens is the customer comes in. And hires you to be the advocate for the car.
Mark Seawell: That's really what they're doing. And once the advisor understands that concept, then we build up their confidence to be able to have the hard conversations. And understanding that they're being right. They're right with whatever they are, they're righteous, as well as having the correct conversation about the right things.
Mark Seawell: And as Brandon said earlier, living by the code. You know, we we understand what the level of, what we expect a car should look like and be like, you know, our job is to keep the vehicle safe, keep the vehicle reliable, help. The customer to, to save money over time and time over time and ultimately not be aggravated.
Mark Seawell: If we can come to those types of conclusions and we can teach an advisor to do that, they don't, they, they don't have that fear anymore and and sell with their own wallet any longer.
Jimmy Lea: Yeah. So what advice do you give to that advisor that the customer has said, Hey, you know what, all I want is an oil service.
Jimmy Lea: I, I drove it in, I'm driving it out. I don't wanna buy anything else. This is all I need. This is all the car needs. I just need an oil service.
Mark Seawell: I, I don't understand, 'cause you just said that was our customer, but it's not because my customers don't come into my shop that way. My customers, when they come into my shop, they, we have vetted who that customer is because the type of people that want to do business at my facility.
Mark Seawell: They are people who want their car to be safe and reliable. They're people who want their car to make sure that it's up on its maintenance. They don't have to be able to do everything all at the same time. I, you know, we're not, you know, we're not sticking to just that.
Mark Seawell: But I, I want people that want the same things. I mean, it's the same, you know, if I'm looking for a better meal somewhere, I'm not going to McDonald's and demanding that they're gonna have ribeye, ribeye steak, you know, it's and by the same token, I wouldn't walk into the steakhouse and go demand a big Mac and
Mark Seawell: fries,
Mark Seawell: you know, like I, there's, there, there's that whole, there's that whole thing.
Mark Seawell: And so at my shop, it's just not that. And it's. It's okay. There are shops that are out there that, that are, they are structured to cater to that type of client that that wants to come in and says, Nope, I just want an oil change. Yeah. And you know what they're quick lube boil places.
Jimmy Lea: Yeah. That's what they do.
Mark Seawell: If you roll through one of those, your oil changes $130 because they have to make their profit somewhere. Yeah. And your oil service is probably not $130 should be. Maybe it should be, but and who knows, maybe it is. But but typically what happens is, you know, those places, the quick lube places they're set up to do that they're set up to make profit on volume.
Mark Seawell: And that's what they do. They do it in 10 minutes. They have their profit model that works and that's it. Ours just strictly isn't like that. You know, we have a way where we're going to make sure that our customer. Is taken care of and the vehicle is taken care of. You know, I love these cars.
Mark Seawell: I wanna see 'em on the road forever and ever.
Jimmy Lea: Yeah. And selfishly, if we will I wanna keep you safe on the road because it actually keeps my family safe on the road as well. Sure.
Mark Seawell: For sure.
Jimmy Lea: Yeah.
Mark Seawell: Andrew's a hundred percent right. It is our job on the phone to vet that customer and make sure that we teach them that.
Mark Seawell: What type of customer can be our customer. Everybody has the opportunity, but but not everybody wants to be.
Brandon Ballou: Yeah. It's our job to educate those customers that, you know, some people they come and I just want an oil change, and then we have to figure out why that's all they want. Is it 'cause they had a bad experience somewhere else and you know, someone took 'em for a ride?
Brandon Ballou: Is it 'cause that's all they think they need and they need to be educated on. Okay. Maybe there are other things. Like what? Like what's. What's their why and figure that out. You can make someone, your customer,
Mark Seawell: and ultimately too, sometimes people just aren't educated about it. Someone somewhere has given them some bad information about, oh yeah, every time you go there, they're going to try to sell you something.
Mark Seawell: And so when they do that, you just tell 'em no. And ultimately, I mean, anybody that, that's maintained any type of anything, not just a car, but any, anything. Yeah. I mean, people wash their driveway every year, don't they? And I mean that, that's maintenance for your driveway. People wash their house, wash their car.
Mark Seawell: That's even just maintenance, right? Yep. What if people never did that? What would happen? I.
Jimmy Lea: Lot of dirty cars rolling,
Mark Seawell: right?
Jimmy Lea: Yeah. Okay. Question for both of you and mark. This will give you a few seconds to think of your favorite. Brandon, your first, what's a customer interaction that you'll never forget?
Jimmy Lea: What's a customer interaction that you'll never forget, and why? Why was that such a. Significant customer interaction. Brandon, what you got, brother?
Brandon Ballou: It was a striking moment when I seen that. So my dad started trustworthy and it's a moment that really showed me that our values are in line with what we need to be.
Brandon Ballou: We had a customer come in and, you know, the description and there was some loss in conversation with what was actually going on, and we ended up replacing headlight bulbs when the actual lenses were clouded over. And so no matter how bright the bulbs were, this customer wasn't gonna be able to see.
Brandon Ballou: It was a really good customer of ours still to this day, and he came in and he was like, look, I'm a little disappointed with the last visit. I thought we were gonna fix this. I thought we were doing this, and instead we did this. And, but before I could even respond or the customer could say anything else, my dad said, I just ordered two headlight assemblies for you.
Brandon Ballou: They'll be in on Tuesday. We're gonna take care of it. We're sorry for the miscommunication. A hundred percent fault on our end. We're gonna take care of you. And that moment really struck. And I was like, that's why we're here. We're here to help people and we're gonna do what's right. We have integrity, whether it's, whether it hurts or not, we're always gonna do what's right.
Brandon Ballou: And that was a situation that really proved that to me.
Jimmy Lea: Wow. That's a strong lesson to learn too, especially from Pops, huh?
Brandon Ballou: Yeah.
Jimmy Lea: Wow. That's awesome. And has that client continued with trustworthy auto?
Brandon Ballou: Absolutely. He was here last week. He's a, but he does for a living. He is a Uber, he's an Uber driver.
Brandon Ballou: And so we see him like a professional Uber driver. Oh yeah.
Jimmy Lea: You see him like every two to three weeks probably.
Brandon Ballou: Yeah. And he has his own private charter company to and from airports on top of that. So he does really awesome for himself. We see him all the time. We have a close enough relationship. He doesn't.
Brandon Ballou: Call the shopper or anything. He's texted me personally. Anytime I need a ride to the airport, he's who we're reaching out to. And we've developed, and that's part of that to where with your customers and stuff, it can't just be a transactional relationship. You can build a real relationship, know the family, know the kids, know what their actual purpose for the cars are, and you can make a little bit better decisions for 'em depending on their life, not just what some book says.
Jimmy Lea: Oh man, I love that. That is awesome. That is awesome. It's good to have a good friend in the automotive industry from a customer point of view, and then also from a industry point of view, it's great to have an Uber driver that you can rely on. Yeah, that's super cool. Alright, mark, what is your most interesting customer interaction that you'll never forget?
Jimmy Lea: Now, for those of you who don't know, mark was it 14 shops that you used to take care of and manage?
Mark Seawell: Yes. Do
Jimmy Lea: all the coaching and training. Yeah. 14 shops. Yeah. Okay. So you've seen a lot.
Mark Seawell: I've seen a few. I've seen a few let me see. Gosh, I. The only reason that this one's even coming to mind is because I was just telling the story to somebody the other day where we had a client that that was a guest at our shop.
Mark Seawell: We'd quoted out racking pin. It was a Honda Accord. I don't remember which year or whatever, but excuse me. It was it was a Honda Accord. It needed a rack, pinion, and it was a whole bunch of labor for whatever it was that, that particular service was a lot. And we always, we vetted the products that we installed because we wanted to make sure that we had the best possible components because we attached a warranty to it that was that was quality and our.
Mark Seawell: Our labor rate was also probably higher than most of the competition around town because we deserve to be you know, we provided a considerably better quality service, just like many of our clients do. And the job had been quoted out to the customer, and the customer decided that they were going to search elsewhere.
Mark Seawell: For whatever reason, the service advisor couldn't, couldn't go over the val the value that that was attached to it. And and so, it ultimately that particular customer got that job done somewhere else and and had the rec opinion done and all that. But then later, as you can expect.
Mark Seawell: With a subpar component and probably subpar labor. The the part failed and it was only months later and I happened to be in that location at the time. And the the customer came in and he was angry with us because we. Must have misdiagnosed it because the problem was still there. There was a noise that was coming from the rack and pinion something, I don't remember what it was.
Mark Seawell: And and so when we went and we saw a brand new, you know, we saw the noise coming from the rack and pinion on our roadside. We were like, oh my gosh, well, let's go wreck back and reinspect it. We we brought the vehicle in, figured out what the problem was, and it was also coming back from that wrecking pinion we're like, wow, that's, yeah we told 'em they needed it.
Mark Seawell: That's, yeah, that's what we said it was. And then we figured out that he said, oh no, we had this wreck and pinion replaced already. The noise is still there. It has to be coming from someplace else. Our original diagnosis must have been incorrect. Well, the best thing about that was that we were able to prove to that client that our diagnosis was right, and at the same time.
Mark Seawell: Went over that customer because whatever they were able to to find later, they had to go through all bunch of hassle. They didn't have any warranty on the service. Ended up that car came back to our shop and and we took care of the wreck and pinion and corrected the problem, and that customer had to pay for it twice.
Mark Seawell: They became our client forever. Yeah. After that they never went anywhere else. And this customer he happened to actually live. Very close to my sister. And so like one, one day I was at I was at my sister's house for a party in the backyard. Right. You know, barbecue burgers and hot dogs and stuff.
Mark Seawell: And he happened to be there and he walks in, he is like, oh, mark, IM glad to see you. Let me just tell you everything about it. And he's a friend. And and so that was it. It was a good, it was one of those stories where it's like, oh, this is, you know, if people just listen to us in the first place.
Mark Seawell: The you know, how many times you know, can we get that? I want that shirt too that Jennifer was talking about yesterday. If you just listen to Jennifer.
Jimmy Lea: Yeah. If I'd have just done what Jennifer said the first time, everything would be okay.
Mark Seawell: Right? I need one of those.
Jimmy Lea: So Mark, I thought for sure you were gonna say the customer was upset because you hadn't convinced them to buy it from you the first time, which it sounds like it did come back around all the way where they were upset that you'd hadn't sold them the first time because they still had to pay for it twice.
Mark Seawell: Right. Well, that was the thing is he became our client forever. And I, you know, we got, we, we had a good relationship after that. You know, several times he was in after that a lot.
Jimmy Lea: Oh, that, that's so good. That's so good. It's great to have a loyal customer, a key tosser, somebody that'll just toss you the keys and say, all right, call me when it's done.
Mark Seawell: Well, ultimately that's it. Right? So, you know, we talk a lot about trust and how you make trust and it's character and it's competency. Yeah. And then, I mean, you end up, you multiplying the, that character and competency with either consistency of a visit and seeing it all the time the same way or your ability to talk to people, your communication.
Mark Seawell: And so when that's all together in the beginning. If you don't have that and that that communication is the only thing that's sitting there. That's the, that's the strength. And you know, like advisors, like, like Brandon has gone through our program and, you know, I'm so proud of just how well he communicates to customers versus I before he was all thumbs and and he'll admit it himself.
Mark Seawell: Right. You know, he didn't know what to say, how to say it. And and that's, you know, that, that's, I'm so proud of just seeing. You know, Brandon's growth and other people's growth. I got to see it over this weekend. Just a bunch of people that were just were just doing it right. And I was just so excited.
Jimmy Lea: Oh, that's super cool. Speaking of Brandon's growth, where was he when he started with us? And where is he now? I mean, do we judge that by average repair order, car counts, increase in closings? How do you judge success in a coaching and training environment?
Mark Seawell: Gosh, it's all of it. You know, we use several metrics to figure out where people are.
Mark Seawell: I like to use gross profit per hour because it seems to be the culmination of everything. It's like, it's your top end number. Yeah. And you know, I mean, Brandon raised his gosh. About $65 or so.
Brandon Ballou: Yeah, it's almost probably tripled, maybe now quadrupled. Yeah. Because that's when, you know, we were the shop that we fixed a boatload of cars, but there, there was, we fixed the boatload of cars and moved a lot of money, but none of it made it to the bank account or the bottom line.
Brandon Ballou: And then, you know, we made some adjustments. The front counter probably being the biggest held our margins where we needed to be, at least at the minimum of the industry standard instead of, you know. Pricing with our own wallet.
Jimmy Lea: Yeah.
Brandon Ballou: That made some huge differences in our shop and even customer satisfaction 'cause we were able to offer our clients so much more.
Jimmy Lea: Oh, I love it. I love it. And just as much, oh sorry. Go ahead, mark
Mark Seawell: that. So that's one of the things, and you know, we don't often talk about this, but you can't offer customer satisfaction to folks if you don't make some profit. Because ultimately, if, you know, like, like the story that Brandon was just talking about getting new headlight assemblies for this car and all that stuff, because they didn't, whatever, there was some kind of miscommunication that happened ahead of time.
Mark Seawell: Yeah. And
Mark Seawell: you know, the right ca the right call was to solve the problem. They wanted to solve the customer, they did something wrong, they wanted to solve the problem and their easiest solution was to get new headlight assemblies. Well. They couldn't have ever done that if they didn't make some profit, because if you don't make some profit, you don't have any money in the bank.
Mark Seawell: You can't buy stuff. So, you know, that's one of those things where the more profit that you make it helps your ability to ultimately solve problems for people, especially if you cause them and you can move on and go to the next one and just your day becomes a lot less stressful.
Jimmy Lea: Yeah.
Jimmy Lea: That, that's true. That's true. That's solid. That's solid. Well, I forgot where I was going with my next question. Perfect.
Jimmy Lea: Let's go into the the crossover between fighting martial arts, kickboxing, MMA, and advising. How has your combat training influenced the way you handle conflict with clients or teammates even inside the shop?
Brandon Ballou: It's I've always, I've been pretty trained and well dur in being able to deal with stress.
Brandon Ballou: So that, that part's never really got to me. There could be 10 people in the office. I could have an unset employee, customer and manager all at the same time. And you know, it is just deal with each problem, one step at a time. It really comes down to, and, you know, I might be a broken record, but if you have your beliefs and you have a process that's in line with your beliefs you'll always get the right result.
Brandon Ballou: It might not be the best, it might not be the funest. It might hurt a little if you know. It's something where you gotta pay for a set of headlight assemblies 'cause it's what you believe is right. But long as you have a process and you have your values it, it doesn't matter if it's fighting, service, advising any other career field, any other sport you'll always get to the right answer.
Jimmy Lea: Nice. Nice. I love that. So you've never had to headlock a technician or punch him in the face or kick him in the head. That's one thing we're
Brandon Ballou: super proud of in our shop is the culture. And we've built we've always taken care of our guys. That's something that's been passed on right from my dad.
Brandon Ballou: He always believed we gotta take care of the team and we go above and beyond more than what any numbers on a spreadsheet should ever tell us we should allocate to our technicians. We just do what we know is right and we take care of our team. And, you know, for instance, one of 'em, he loves to go race at the local, like Speedway track, just so we can race, you know, in the clunker car events. And we've bought him the car and every year and when he crashes it, we get him another one. And that's something we've just always done for him. 'cause he's been with us coming on nine years.
Jimmy Lea: Oh, wow. And
Brandon Ballou: whether that's one of those things that it's not in any spreadsheet, it's not something we care about.
Brandon Ballou: We just, we have that relationship with him and what we're gonna do that to take care of them.
Jimmy Lea: Oh, I love it. I love it. And thank you for mentioning spreadsheets 'cause it sparked the idea. And I remember what I was going to remember. Mark, gross profit, love, gross profit. Love that you were able to increase gross profit.
Jimmy Lea: And I also assume that this translated into your net profit as well. You were able to keep more because empty shelves don't feed mouths, but full shelves do.
Brandon Ballou: Yes. So definitely did compared to where we were. Yeah, that's probably where we struggle the most because we're that shop that, you know, we always give back.
Brandon Ballou: My dad's always reinvested, we're always adding another loaner car to the fleet so we can make sure our customer has a loaner car, always buying the new, newest and latest tools to make sure the technicians can get the job done faster so we can get the car back to the customer. We're always putting it back into the business.
Brandon Ballou: Or if there's something left over, then my dad's, probably the most humble give back to everybody person I know like our technicians pay will increase if there's anywhere else we can do. We just, we've always reinvested it back into the shop.
Jimmy Lea: Oh, I love it. That's awesome. So
Brandon Ballou: on the actual spreadsheet, you know, the net at the bottom might not look where it's supposed to, but the gross is taking care of it.
Brandon Ballou: 'cause all the stuff we're adding to grow the business, take care of the team, or take care of the customer, just keeps getting better.
Jimmy Lea: Well, that, that's really good. That's really good. I Congratulations for doing that. Okay. Question for you about crossover here. Between the combat training and service advising, is there a specific mindset or preparation ritual that you developed in, I.
Jimmy Lea: The ring that helps you on your daily service advisor routine?
Brandon Ballou: Yes. Mark's already chuckling 'cause he knows where I'm going with this and I didn't put it into a process until training our latest advisor. But same thing going into a fight. You gotta psych yourself into what you're going into and you have to believe you're gonna win.
Brandon Ballou: If you don't believe you're gonna win you're gonna lose. Whether you believe you're gonna win or not, you're right. Whether you believe you can or you can't, you're right. And so having that headspace, having that belief, so training our newest advisor you know, you might have a bad night, a bad weekend, something might happen in your personal life to where if you bring that into work, you're not gonna perform.
Brandon Ballou: If you bring that into the ring, you're not gonna perform. So we put it, and it's in the process, like written physically. When you check in, what you do, when you get into the shop and it says, put on your super suit. You know Batman can't bring Bruce Wayne's problems when he goes to Safe Gotham City. He is gotta be Batman.
Brandon Ballou: So you put on your super suit, you get in your headspace. I'm going to be the best advisor I can be today. And then you can deal with, you know, your personal problems after, at the end of the day.
Jimmy Lea: Oh, it's, that's true. That's true. I brushed up on a little bit of boxing trivia. Rocky three, remember Rocky three when he was fighting and he lost
Brandon Ballou: Yes.
Jimmy Lea: Because he was afraid his mindset was not right.
Brandon Ballou: Yep.
Jimmy Lea: And that scene where he and Creed are on the beach. Adrian's there. He finally admits that he was afraid. So, you know, he was gonna lose. Yep. Don't lose. It's in your mindset. Yep. So, you talk about your mindset and that's good advice for a service advisor.
Jimmy Lea: What other advice would you give to a service advisor that just starting out in the industry so that you can help them to not feel overwhelmed? There's so much that happens. How can we help them?
Brandon Ballou: It really boils down to process, have a process or a routine for everything. 'cause if I answered the phone differently every time, and presented the information to the customers differently every time and checked in the parts differently every time I.
Brandon Ballou: I have no routine and every time it feels like this new unorganized experience versus I, I hate scripts, so I'm not saying a script by any means, but have a process for how you're gonna answer the phone. Have a process for this is the direction I'm going to go through the call with the customer. This is how this process is done.
Brandon Ballou: And it makes it so much easier to learn and understand where everything's going and coming from. And. It just makes things easier.
Jimmy Lea: Oh, I love it. I love it. And Mark, what would you add to that for a new service advisor in the industry? How can we help them to not get overwhelmed with all of the. Tasks that a service advisor has to do on the daily, how can we help that service advisor?
Mark Seawell: So I really can't add anything new to that because I think Brandon said it perfectly have a process when you have a plan to go through things. I mean, the science behind it is that your brain needs less. Blood, no less oxygen in the blood to to actually fire the neurons to do the thing.
Mark Seawell: It's you actually have to use less brain power when you already have a process that you do. It's like, it's like when you drive home from work and you already know the way to go home and you show up and you're like, I'm here already. Or or when you are going through and. Just going through your morning, half awake, half asleep, and you've already made coffee and you've gotten your bagel.
Mark Seawell: I mean, it happens that it's just this is what you do every morning. This is how it works. And you're like, wow, I'm done with this already. You get into that muscle memory and really what it is that, that you have this process that happens, and when you do that, everything like you, you need less bandwidth to do it.
Mark Seawell: You, you need less brain power to do it. And even better than that, it just becomes who you are and what you do. It's so, it makes life so easy. Yeah. And so the thing that I'll say is just. You get yourself into a routine. You get yourself into a process and do it the same way.
Mark Seawell: And you don't have to do it this, like, you don't have to use the same words to say it, but you have to have the same meaning when you say it.
Brandon Ballou: Yeah. Yep. Processes they prevent so many problems. And then if you do a process over and over again, it becomes a habit. And then eventually you're preventing all these problems without even thinking about it.
Brandon Ballou: It's just muscle memory like Mark said to where. Hey, how many more problems you probably would've had to deal with that day if you didn't have that process down to where now it's just muscle memory
Mark Seawell: processes, prevent problems.
Jimmy Lea: Amen. Amen.
Mark Seawell: Processes, prevent problems. Yeah. While eating pickles.
Jimmy Lea: Oh, boy. Now we're getting there, Peter.
Jimmy Lea: So, Brandon and to, to what you're talking about, what you have now as a habit. Started out as a process, started out as a script, and you learn that script and then eventually you're able to throw that script away because you don't need it anymore. It's now habitual for you. So to duplicate, you write it down in a process so that the next guy, the next gal, can step into your position and do exactly the same things you do the exact same way that you do it.
Brandon Ballou: And it's the same for anything. You wanna transition even over into the combat side of the world. You know, if you develop a poor habit, a bad process of always leaving your hands down and your head open, well, you're gonna get punched in the face a lot. But if you force yourself to develop a habit where your hands are always up, you're always ready, you're throwing punches with the proper technique from practicing the process of punching.
Brandon Ballou: There we go. Then then you'll have. The right technique in form. It'll be a habit when it comes to the real fight. 'cause you can know how to do things, but if it's not a habit, when the real show starts, it goes out the window. Right.
Jimmy Lea: Proper punching prevents poor performance.
Brandon Ballou: Yeah.
Jimmy Lea: Yep. Thank you Mark. You started it.
Jimmy Lea: I know. I love it. I love what you guys are doing. I love what you're talking about. And Brandon how did working with the institute impact your approach? To your position as an advisor to your position as a leader at the shop, how has working with the institute helped you?
Brandon Ballou: The institute?
Brandon Ballou: Yeah, just talking about I. My career in the shop is just the tip of the iceberg. So I was a technician and without the institute I don't know if my dad would've ever even made the transmission transition to put me up front. That was something the institute recommended. Try it, see what happens.
Brandon Ballou: And then going through all the training with Mark, learning how to not just be an advisor, how to speak, how to understand people, understanding different personality types, how to work with people. Learning from Cecil how being. Fair to everybody. Everybody needs to win in a business environment. So they didn't just impact my career, they impacted my life.
Brandon Ballou: Mark and Cecil, I mentioned at the summit there, there's probably a group of five people outside my immediate family that make me who I am. And Mark and Cecil are two of those five, like you removed that this guy right here probably doesn't exist. Just the level of communication I have now. Being able to communicate in and out my personal life and professional life.
Brandon Ballou: Understanding people trying to solve problems with solutions, not just opinions. And it's it's come full circle. The institute has done much more than just elevate my family's business.
Jimmy Lea: That's awesome. Mark, did you ever think you'd have that kind of an impact? Hold
Mark Seawell: on. I'm still tearing up. That's it, you know what I when I started this, I don't even know how many years ago when I started doing this type of thing working with people, I really didn't have a clue what it would do.
Mark Seawell: Like, I really didn't like I was just like, oh, well that's just the next logical step for me is I'm good at. Sales, communication, leadership, operations. Well, the next best thing is to go in and teach people how to do sales, leadership, opera and all that. And I never really thought about it at the time about how much impact I could have on people.
Mark Seawell: And I come to find out that I crave it more than. Air, I mean more than oxygen. I see people just achieving a better version of themselves. And that's what, like, I, that's where I go, okay, I have, I built that. That's awesome. And I feel pride and you know it. And so. At the first to answer your question, Jimmy.
Mark Seawell: No, I didn't think at all. I just thought it was the next logical step. I was like, cool, I'm gonna have to work less and probably make more money. And I made less money and I worked more, but but what I get out of it is so much better. There's so much more out of that. And you know, it I'm truly thankful.
Mark Seawell: That that what I get to do is share what I know with people to help them grow as individuals and make my impact not just on our industry, but on the people in it.
Jimmy Lea: I love it. I love it. That's super awesome. I'm, thank you for sharing, mark. I really appreciate that. If you had a magic wand mark, and you could change anything about the industry, what would you change in the automotive aftermarket?
Mark Seawell: Gosh. Does it have to be just one thing? If you can narrow
Jimmy Lea: it down to one thing. Yeah. What's the one thing?
Mark Seawell: Okay, so if it was one thing. I wish that everyone would take the path that Brandon here has gone through, where he took a step back, understood that things weren't going right, and he wasn't doing it exactly as he should, and that he needed help.
Mark Seawell: You know, it's like a 12 step program. Realize that you need help and and then ask for it and get it, and then pour everything into it. And I wish if there was one thing I could wish for the industry, it was that people had a different mindset about getting help.
Mark Seawell: Yeah. Oh, Jimmy froze. No, Jimmy froze.
Brandon Ballou: Oh no, he is good now. Oh, I felt
Jimmy Lea: that. I felt that freeze for a second.
Brandon Ballou: Oh
Jimmy Lea: my god. Ooh, that one's scary.
Jimmy Lea: Anytime you unplug Jimmy, that's what happens. He just stops
Mark Seawell: moving. You gotta plug them back. Kick the cord.
Jimmy Lea: Yeah, right. Yeah. Make sure those batteries are in nice and tight. So, yeah, I agree with you, mark. I wish more would step up and accept the coaching and training and the feedback and the accountability.
Jimmy Lea: And I think that's where most people really kick back is that accountability, that level of here's the training, here's the understanding, and we're gonna hold you accountable to it. Right. So thank you. Thank you for what you're doing in the industry and with shops and shop owners. It makes, it's a world of difference.
Jimmy Lea: And in fact, we've got a service advisor training class coming up here pretty soon, don't we?
Mark Seawell: Well, I've a three day, I've got a three day one coming up. Yeah. It's in it's in sunny Utah, next to the mountains. It's the best time to be in Utah. In the summer, the, if you don't like skiing, I guess.
Mark Seawell: But it's it's coming up in August. It's second week of August, second weekend of August. If you go to the institute we are the institute.com. Under the events page, you can find that. You know, all, everything to sign up for on that. It's a three day workshop. And what it does is we take the advisor through an intensive, it's bootcamp.
Mark Seawell: I mean, let's call it what it is. It's bootcamp. Yeah. We take advisors and we and we break 'em down and then build them up. And and what we do is we go through communication skills. We go through working through problems with customers and things like that. We go through a sales process.
Mark Seawell: We go through understanding KPIs and understanding what to do with them. I mean, it is a it is a bootcamp where we we do we break every, everything down. We break all the bad habits and we put good habits in. And in my opinion, I'm biased. It's it's one of the most high impact things that we do.
Mark Seawell: We you know, we go fast and hard and it's a lot of information all at once. And typically whoever goes to those workshops, they come back tired. And and it's not because we have 'em doing jumping jacks, it's because their brain is hurting.
Jimmy Lea: We melt their brain and then put it back in.
Jimmy Lea: Yeah. So, is this for advisors that are only the brand news or are the somewhat experienced, or the highly developed or highly skilled? Is this an a, a class for all or just brand news?
Mark Seawell: So this is for everybody. The certainly brand new people will get one thing out of it. And we have, the way that we design our training is that someone could take the training that has years of experience or zero experience or anything in between.
Mark Seawell: And we have different parts engineered. To impact those specific people. And and we were able to take the people that that have the experience and do these things well and have them help demonstrate examples. Which is also part of education. You know, being able to teach other people.
Mark Seawell: Actually, I think you learn more from Ask Brandon. He's been doing that. Absolutely. He's been doing that all the last part of the last year and all of this part of this year. I bet he's learned more about it than than the entire time that he got beat up by me all the time.
Jimmy Lea: Oh, that's pretty good.
Jimmy Lea: That's pretty good. Well, I think everybody should attend this three day service advisor class. Especially if you're a new service advisor or an experienced service advisor, you will come away with more knowledge, information and better mindset. Right. To help you. Yeah. Brandon que final questions for you.
Jimmy Lea: What would you say to any other fighters or athletes for that matter that are considering transitioning into the automotive aftermarket?
Brandon Ballou: Ooh. So any fighters or any athlete in general take the discipline you've learned from being able to train every day and get what you need to done to be the best athlete, fighter, competitor you can, and take that discipline and put it into training.
Brandon Ballou: 'cause you're only gonna get good as. Hard as you train and that's in anything like you're, like, you could have all the talent in the world if you don't learn from the right people and train you. Yeah. You cap yourself at a ceiling. So if you're already an athlete and you got that discipline to put the work in every day, put that work into training and then you'll be on top of wherever you land.
Brandon Ballou: Whether that's a sport, an industry, a job, a hobby, you'll be the best at it if you train hard enough.
Jimmy Lea: I love it. I love it. And of course you're gonna recommend the Institute for that Service Advisor training, right?
Brandon Ballou: Yeah, absolutely. I mean, they made me who I am. How could, and I and I only got to attend the two day trainings and my brain was always swelling and pulsing.
Brandon Ballou: So I can't imagine the poor people that gotta go through the three day bootcamp 'cause they're gonna learn everything there is about it in three days and then come home and. Hopefully retain 10% of it, and they'll still be 10 times better of an advisor than they were before they went.
Jimmy Lea: Oh, they will.
Jimmy Lea: They will. Whether you're new or experienced to come to the service advisor, training's worth every single penny. For sure. For sure. Brandon, if you had a magic wand question, what would you change in the industry?
Brandon Ballou: I'd remove the label. That's been placed on our industry, far as the career, far as what people think when they bring their car into a shop.
Brandon Ballou: People don't think it's a lucrative career, whether you're a technician, advisor, manager, whatever. They'd rather you go be, you know, work from home, fill out a spreadsheet, do something along those lines, get a degree, whatever. Then same with when you bring your car to a shop. Everybody's like, oh, you know, they're gonna try and sell me something.
Brandon Ballou: They're gonna try and rip me off. They're crooks. They're, when that's not the case. That's such a small percentage and what the top 10 percenters, or especially one percenters in our industries make. If that actually got out there and people understood. How good of a career the automotive industry offers.
Brandon Ballou: I think we'd see a whole bunch of young people jumping for joy trying to get in. So yeah, if I had a magic wand, I'd remove the negative label that's been placed on our industry so people can actually see how amazing it is.
Jimmy Lea: So true. It is an amazing industry, has treated us very well for many years and many years to come.
Jimmy Lea: There will always be transportation, which means there's always going to be a need for. Technicians one form or another, and service advisors and owners and parts people and all the above. It's all there. Well, thank you very much. Thank you, mark. Appreciate your insights, your input. You definitely know what the heck's going on with service advisors and service advisor training.
Jimmy Lea: Brandon, thank you very much. Really appreciate you being here and sharing your story, whether it's from Fight Camp to the front desk. Your story is proof that discipline, resilience, and service can win the day on any stage in any ring. Yes, sir. So thank you. Thank you very much. I really appreciate you sharing your story with us.
Jimmy Lea: Problem. Thanks for having me, Jimmy. Thank you. Thank you very much. We'll talk to you guys soon. There's a QR code here at the very end. Those of you interested in an analysis of your business, looking at what makes it work, what makes it tick, what advice can we give to you that will make all the difference in the world.
Jimmy Lea: There's gonna be a QR code here. It's up for about 30 seconds, so grab out your smartphone, scan this QR code, and let's see what we can do for you at the institute. My name is Jimmy Lee. Talk to you again soon.

Thursday May 08, 2025
119 - From Repair Bays to Balance Sheets: Mastering Your Shop’s Financials
Thursday May 08, 2025
Thursday May 08, 2025
119 - From Repair Bays to Balance Sheets: Mastering Your Shop’s Financials
April 30th, 2025 - 00:58:20
Show Summary:
In this episode of the Institute's weekly webinar, Jimmy Lea hosts Eric Joern, CPA and partner at Kaizen CPAs, for a deep dive into mastering shop financials. They tackle the anxiety many shop owners feel around accounting and taxes, encouraging transparency and strategic planning. Eric emphasizes the importance of daily metrics, consistent financial reporting, and leveraging tools like point-of-sale systems and financial calculators. The duo walk through a powerful profitability calculator live, showcasing how small improvements in technician productivity or parts markup can generate significant gains. They also highlight the value of peer accountability groups and ongoing coaching to drive real growth. The episode closes with insights into practical budgeting, reading balance sheets, and long-term business health monitoring.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
Eric Joern, CPA, CMAA, AAM at Kaizen CPAs + Advisors: Advisory & Accounting Services
Episode Highlights:
[00:05:59] - Eric reassures shop owners: the goal is not judgment, but helping clients become better, more compliant taxpayers.
[00:07:44] - New clients often start with a 3-year review of tax returns to identify areas for correction or a clean slate.
[00:09:11] - Digital access to financial records reduces stress and eliminates outdated systems like shoeboxes of receipts.
[00:13:33] - The most important report to review regularly is the end-of-day or monthly summary report from the shop management system.
[00:17:34] - Common profit leakage comes from untagged parts, missed markups on sublets, and lack of shop process rigor.
[00:30:15] - Using a real-time business calculator, Jimmy and Eric demonstrate how small adjustments in markup or productivity impact profit.
[00:36:45] - A real shop example: a family business jumps from 7% to 24.9% net profit within two years thanks to Institute coaching and mastermind groups.
[00:44:55] - Top overhead costs (like rent, service manager salary, and owner compensation) must be managed for healthy financials.
[00:50:06] - Eric explains how to track where profit goes using balance sheets, emphasizing shareholder distributions.
[00:51:56] - Eric offers his shop financial trend tool to webinar attendees and encourages shops to reach out for help without pressure.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=Iy_4KFidp3I
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Episode Transcript DisclaimerThis transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.
Episode Transcript:
Jimmy Lea: Good morning, good evening, good afternoon, or goodnight, depending on when and where you are joining us from today. It is a beautiful day outside. Glad we are here together. Those of you watching the recording, hit that like button, hit the share button.
Jimmy Lea: Make sure that you are a part of the institute and all the awesomeness that's happening over here as we continue to lock arms with you and elevate this industry. We don't wanna leave anybody behind, especially not you. So let's work together to make this awesome and amazing. In our webinar today, we are going to have a phenomenal discussion and I say discussion because I want you to participate.
Jimmy Lea: We are live streaming on YouTube. On Facebook and on Streamy Yard. So if you are here with us today, find that comment button, find that comment button, and put in there where it is you are joining us from today. Love to give you a shout out and say hello and recognize you for being here for this live event as we're talking today in our webinar.
Jimmy Lea: So in the comments section, go ahead and share with us where you are joining from today. Bobby joining in from Florida, Bobby Lambert. Bobby, thank you. Welcome. Glad you're here with us. Just got your advisor or manager signed up in the program. That's phenomenal. Thank you very much. Super excited for that.
Jimmy Lea: Chris Adams, spectra Auto, Frederick, Maryland. Oh, very cool, Chris. Glad you're here. Thank you. Crystal Taylor, easy Otto from Alaska. How about that? Alaska's in the house. We got the two extremes. Florida and Alaska both in here. Oh, that's awesome. Thank you Crystal for being here. Shout out to those of you who are putting your locations where you're joining us from in the comments.
Jimmy Lea: Love to know where you're joining us from. So, thank you for being here and those of you watching the recording, we do webinars every Wednesday, 10:00 AM Pacific, 1:00 PM Eastern every Wednesday. There's knowledge, information, insight to help you into the information you need, the inspiration you need, and.
Jimmy Lea: Now we turn it to you. It goes into the implementation that you will do inside of your shop to make things awesome. Amazing. Take it up to that next level. Last and final shout out to Shayla Costa. Does that mean Daniel's there with you too? Shayla, San Francisco, Marvin County, California. Oh, Marin. Marin.
Jimmy Lea: Marin County Small print. Is Daniel there with you? Good to have you with us. Glad we are here today and I am excited to welcome today. And Shayla says, yes. Daniel's there. Thank you. Welcome. Today, Eric Jorn from Kaizen, CPA. Eric is a CPA. He is an awesome member of the industry, an awesome member of the family, one of the certified vendors with the Institute for Automotive Business Excellence.
Jimmy Lea: So to you, Eric, good morning. Good afternoon. Thank you for joining us. Glad you are here today.
Eric Joern: Hey, good. It's good afternoon for me and I think it might be good and morning for you. And it's, it feels like a normal Wednesday, seeing somebody from Alaska in Florida in the same day. I don't know if you can get more polar opposites.
Jimmy Lea: I, I love it. I love it. I, and you talk about traveling halfway across the world. I think of like Cindy Ries and Mike Somar and them traveling from Alaska all the way to Florida for the summit.
Jimmy Lea: Yeah, you were at our summit conference. That was awesome, wasn't it?
Eric Joern: Absolutely. It was a really great time.
Eric Joern: Beautiful resort. I'm looking forward to that again.
Jimmy Lea: In 2027. Yes, 27. I had to do quick math there 'cause we go off years of STX, so we are the odd years. They're the even years. Yes. STX even years. So the in 26 STX will be in Washington, DC. Looking forward to it. We should see you all there too. Yeah, everybody needs to be there.
Jimmy Lea: So, yeah. We haven't decided a location for Summit yet, nor have we decided a date, but we have a pretty broad, wide field of options that we are looking into, so we're quite excited once that announcement happens, you'll probably hear it here first. Awesome.
Eric Joern: We're very excited.
Jimmy Lea: Yeah. Yes, Eric? So I've been working with my CPA taxes came around.
Jimmy Lea: We all had to do our personal taxes. We had to do our corporate taxes, you know, which were due in March and our personal due in April. There's a lot of fear trepidation. Anxiety about coming and talking to somebody like yourself, A CPA, who's, you know, you've gone to school for a long time, you've got all the certifications.
Jimmy Lea: There might be some things about my business I don't want to share, or I'm scared to share or embarrassed to share. Is there any sort of a guideline or anything that you provide to your clients that might be. Helping them on this journey of not being afraid to come and talk to a CPA.
Eric Joern: Yeah.
Eric Joern: Yeah. So I mean, number one, right? Let's get past the fear of the sins of the past, right? Maybe some, something's a mess. At the end of the day, we're happy turning somebody into a better taxpayer. I. That's number one for us. If we can turn you into a better taxpayer, more compliant, get you on the straight and narrow, that's a win in our book.
Eric Joern: We're not gonna judge you for your, for something that's happened in the past, and we understand the reality of running a small business, right? We're busy every single day as a, one of the best things that happened to me is becoming an A partner in the firm so I can understand all the aspects of the day-to-day operations of a business and how demanding that is and how easy it is to.
Eric Joern: Get off track, deal with whatever you have to deal with. So when we start working with small businesses, our goal is to take the burden of all these obligations when it comes to generating a monthly financial statement, paying your sales tax, running payroll even filing a, even filing your tax return, and gathering all those documents.
Eric Joern: And we wanna take as much of that burden off your plate by creating great systems and processes to really make that make that. Not a interruption into your day-to-day of running your business.
Jimmy Lea: Yeah. That's so true that helps. It reminds me of those tiktoks you hear where you see 'em and they're like, we listen and we don't judge.
Jimmy Lea: We listen and we don't judge. And so that, that's a lot of your position is listening to where they are talking to 'em about what they can do to. Be in a better position for upcoming years. Yeah. So when you bring on a new client, do you do a a three year review with them or do you just start fresh from today?
Eric Joern: Yeah. Yeah. So, all depending on the client's particular situation. So we all start with what we call a discovery call even before you become a client, to really kinda set the stage of where you're at. You know, maybe you're unsure about how things were done in the past. We usually ask for three years of tax returns.
Eric Joern: If you're able to provide it, only because that gives us a little bit of an insight of your journey. And if we think there's things that we can go back and fix, great. If not you know, we'll start from either the last filed tax return or, you know, wherever we even sit today. And then depending on the quality of your books, and where you kinda left off, we might make a decision of, Hey, we need to start fresh, or, Hey, we're gonna go fix what has happened in the past and kind of bring you along to up to current. One of the best things that's happened though is we've moved into this digital environment where a, you don't even have to drive over to.
Eric Joern: Your accountant's office and drop off paperwork and even paperwork is becoming a thing of the past. We're just getting online access to everything we can so you don't have to carry the burden of, I gotta go fit, make sure I have all 12 of my bank statements for the year, my credit card statements, here's my box of receipts, here's here's my printed out repair orders.
Eric Joern: It's a whole, so you don't
Jimmy Lea: get shoe boxes of receipts anymore.
Eric Joern: Oh no. Those days are long gone. Those tho, well, I shouldn't say long gone because we come across shops that don't even use shop management systems at this point still, which is close.
Jimmy Lea: Wow.
Eric Joern: I think there's things that they're trying to accomplish by not having it, but yeah, I mean, we see, we still see everything under the sun.
Eric Joern: But especially when we're working with shops that work with, associations like the institute I mean, they're already leg up ahead of what we see just out in the wild. Yeah. On a regular, recurring basis.
Jimmy Lea: Yeah. There's a lot of point of sale systems that we work with, and it's interesting to hear their numbers when they say, you know, anywhere from 30 to 50% of our new customers coming in that are adopting our SaaS, 30 to 50% are coming from.
Jimmy Lea: Paper and pen or QuickBooks. So they're not using a point of sale system, which really does help them to optimize that the markups, the parts look up the matrix. It really does help with that. Many shops aren't doing that. They're still pen and paper or they have a QuickBooks or Quicken or something like that.
Jimmy Lea: So, absolutely. Yeah. I'm excited to hear that, that you meet the shop where they are. Yep. You're there to meet them where they are. You don't judge. Here's the situation, here's the facts, here's the numbers, here's the truth.
Eric Joern: Absolutely.
Jimmy Lea: And here's what we can do moving forward. We've got a couple of things we need to take care of and we're moving forward and here we go.
Jimmy Lea: That, that's wonderful. I and I hope that everyone. All my friends and family and everybody that's listening to this. And by the way, dad, no more shoebox with receipts. Okay. Eric, you heard it? Hear from Eric. He
Eric Joern: doesn't want it anymore. My, my dad still tries to bring me his stuff in a plastic baggie, and I finally got online access to get everything.
Jimmy Lea: Oh my gosh. Is it That's, so your dad and my dad, same cloth? And yeah. So Dad, no more shoe boxes. So, so here we are. And thank you. I feel just even this conversation with you right now, it, the anxiety has just dropped so much in being able to talk to you. I think you are amazing.
Jimmy Lea: I think you do a phenomenal job in the automotive industry especially working with my friends and my family and I consider the automotive industry my family. I know you're not working with my family, but you are working with my family Absolutely. In the greater whole. So you've got information we wanna share and talk about here today.
Jimmy Lea: Eric the time is yours. I'll interrupt you with questions, comments, concerns, as we have those questions coming in from our audience for the live, we'll ask those questions. Go ahead and put those in the comments if you've got questions for Eric. Anything CPA, anything accounting wise?
Jimmy Lea: Let's ask those questions of Eric and as we go along, Eric, I've got a pretty curious mind, so you're probably gonna say some things that just trigger a wild hair. Absolutely.
Eric Joern: I'm looking forward to it. And please, from the crowd. Any questions that you have specifically is only gonna help not just you learn and probably solve an issue, but it will help everybody else.
Eric Joern: We learn better from example. And you can listen to me talk and ramble straight through this whole thing. But if you bring your actual real life situations and we solve them today on this call, that's gonna be a win for everybody involved.
Jimmy Lea: Love it. Let's do it. Let's solve the world's problems right here.
Jimmy Lea: And anybody here live will be able to cure. All ills. It'll be a successful lunch hour for me if we do that. Yeah. Oh, absolutely. Absolutely. Oh, one more. Shout out to Andrew Knutson joining us from Long Island. Andrew, and his wife for having a baby in about 50 days. A little girl. Oh, congrats. His first, congratulations, Andrew.
Jimmy Lea: Okay, so you, are you gonna share your screen and
Eric Joern: Nope. There we go.
Jimmy Lea: There we
Eric Joern: go. Nice. All right. Yeah, so what are we talking about today? It is Mastering Your Shop's financials. Right. And one of my goals for today is to kind of demystify the complications that everybody has around financials, right?
Eric Joern: We sometimes pull up p and ls or balance sheets and it. It's talking in foreign language. It's three miles long. We don't know where to start. So our goal is to simplify this and let's say, hey, if I need to look at my financials once a month, I'm a busy shop owner. I got five minutes to look at it, and I need to answer a handful of questions.
Eric Joern: I wanna be able to walk away from today and answer those questions. So what questions are we generally looking to answer? Well, let's start with just, Hey, what is the most important report that I should be looking at on a regular, recurring basis? How is my business performing? Is it performing the standard?
Eric Joern: How am I tracking my spending? Right? Do I need to have every vendor broken out? Do I need to analyze every little thing? Hey, I had some profit, but it's not in my bank account. Where's my money going? And then overall, is my business healthy or am I in a good spot? Am I in good shape? So we're, our goal today is to figure out how to answer those five fairly simple questions utilizing your financial statements.
Eric Joern: But I'm gonna start with number one thing that we are looking at and we should be looking at probably even on a daily basis. Depending on the shop management system you're using, everybody's got their own flavor of it. We work with a lot of shops that run on tech metric. Their end of day report.
Eric Joern: It's great. It's got a litany of information and the decisions that we make on a day-to-day basis are. Almost as important as the long-term decisions we're making. But the one report I should be looking at on a regular recurring basis, and I think it's most important, is indeed this end of day type of report.
Eric Joern: Some type of monthly summary or daily summary of everything that happened in my shop and what are we gonna focus on inside of those? A lot of these great metrics that we have now, this is a whole year for a shop as an example, but it gives you some snapshots, right? We have total ros, so that gives us our car count.
Eric Joern: We could take a 2171 total RO count, divide that by 12. Right? And we're touching about 200 cars a month, just a little under that. We have our average repair order, 5 64. I think Jimmy and I had a discussion and we think institute members have a much higher a RO number than that. One of the things I really like is how many hours did we sell?
Eric Joern: How many hours did we sell in the month? Because there's important metrics that we should be thinking about, right? What is my actual cost per labor hour sold so I can price my labor correctly? That's super important. The send a day report or these summary reports give you those information, right?
Eric Joern: In a snapshot, what's my effective labor rate? How different is that from my door rate? How many, how, what's my gross profit per hour? What are my sales per hour for operating in operating my business and per hour sold? All these metrics are deep dives that you can get into to really move the needle.
Eric Joern: I. Another section we have here is a profit summary. We can load our shop management system if we are able, if we have good financials, we can come back to our shop management system and get really good data on a day-to-day job to job basis. And what happens, what, where can we make the most immediate impact?
Eric Joern: If we understand what our numbers should be while we're writing our new repair order. So we're gonna look at things like, Hey, what are my labor sales? What kind of discounts am I providing? What's my cost, my labor cost? Do I have the right cost in there? It. And again, we wa we talked about that.
Eric Joern: Take your total labor for the year for your production team, technicians and anybody else that's assisting in generating those labor hours. Divide it by those total hours sold. That should actually be your cost. Not the 35, 40, $50 an hour you might be paying as a wage to that technician. Parts costs.
Eric Joern: Our number one the money. One of the number one opportunities we find with shops is parts leakage. We're not tagging parts on repair orders. It's generally not even that the parts are stolen, broken, misused, comebacks, warranties. It's actually just we're making an administrative mistake of not tagging a part on a repair order, and not only do you eat the cost of the part, we lose the opportunity for that markup and margin that it comes with that part.
Eric Joern: Same thing with sublets. We might add a sublet on a ticket if we don't make sure, hey, we knew that vehicle got towed in. We gotta charge that client for that tow, including my markup. It's the same thing with missing parts on repair orders. And are those at and are those all happening? I. At the right margins.
Eric Joern: Right. I see on this example here, we're at a 46% parts gross profit margin. And that's gonna be all the way on the right, the second second line down 46% gross profit on parts. I know I would not be happy as a shop, right? We're looking at 50, 55% as our goal rate. Well, that tells me I have real time data.
Eric Joern: Hey, I'm gonna tinker with my parts pricing matrix. I'm gonna go in there and adjust some rates, and then I wanna see those immediate results. If we wait for the financial statements to make some of these immediate impact decisions. We actually we're, we're leaving profit on the table from that for that entire month from the date you make the decision till the date you close your books.
Eric Joern: So a lot of times that could be a whole month of. Extra gross profit. Say it's 5% that you can make that difference and you're doing a hundred thousand dollars a month in parts sales, right? That's five grand that you're missing out on because we're not doing a daily analysis. And this is where we would want to spend our time to do these day-to-day analysis.
Eric Joern: This is kind of just a special shout out. This is a nuance that we see. We coach a lot of shops on using some functions within their shop management system, and for us it is, Hey, how do I handle these weird transactions where I might not just get paid by a credit card check? Where it might be, Hey, I do have an internal, vehicle that I serviced, I wrote up an ro. How do I do it? Do I just not write up a repair order? Do I ignore some of the formalities of it? And we say, no, we wanna see all that data tracked, and we do another payment type to, to move that onto the p and l in the appropriate spot. So we do track the appropriate costs.
Eric Joern: So we use these other payment items. A big coaching area that we do with new shops when they start working with us is we want to direct the items from your shop management system to the right home on the p and l. Super important, but now we want to ask, we want to ask and answer the question. We know the report.
Eric Joern: We want to focus on the shop management system. It's the lifeblood of the financial statements for your shop. We're pulling as much data as we can from your shop management system to do accounting for your shop because it is gonna give us the most real time, accurate data possible. Now we gotta answer the question, is my business even performing?
Eric Joern: How do I look at my actual p and l and my balance sheet and know that, hey, my business is operating in the way it should. We're looking at five numbers. We're gonna keep it simple, right? Because we gotta start somewhere. Let's keep it simple. We're gonna look at five numbers. We're gonna look at our total sales.
Eric Joern: We're gonna look at our cost of goods sold. We're gonna look at our gross profit. We're gonna look at operating expenses and we're gonna look at net operating income. These are five numbers we want to track every single month to see if we're getting where we want to be.
Eric Joern: And there's a simple formula to that. You know, we get a lot of questions around, Hey, what is, what's, what should we be doing? And there's two ways you can answer this question. What does the industry do and what do we want to do? The industry normally says, Hey, if I'm running a loaded, which means I'm including things like benefits and payroll taxes onto my labor costs.
Eric Joern: Probably service advisor up in cost of goods sold as well. I'm shooting for a global 50% gross profit, 30% in operating expenses, and 20% net income, right? So this is our three goal criteria. If I'm doing unloaded, meaning I'm only focusing on. Tech wages without attaching benefits or payroll taxes.
Eric Joern: Then we're shooting for a 60% with 40% overhead and a 20% net income. Now these are, this is just a formula to get to a 20% net. Jimmy and I were talking about this earlier, that, hey, what happens if I have a different goal, right? Maybe it's 40%, or maybe it's just 10% and I wanna have a modest living. Maybe I want to take a higher paycheck.
Eric Joern: How do we, and then how do we get there? What steps can we take to make this formula work the way we want it to work? The cool things is the institute's developed a tool that we can actually back into the gross sales and all the various other input factors to get to this formula. Jimmy, did you want to jump in and,
Jimmy Lea: Go through that?
Jimmy Lea: Yes, Eric, we do. We have a great calculator. I'd love to throw my screen up there so I can share with you this business calculator and those of you who are here that are in the audience, if you want to volunteer your numbers, happy to put them in here. For you, it could be your dream numbers, it could be your actual numbers.
Jimmy Lea: It could be, oh, these are the numbers of a friend. Oh, I have a friend who has. This. So the idea here is, and we'll go through this, Eric, I was grabbing some numbers that you were saying in your little sheet that you were talking about. Perfect. But let's say what's the salary that somebody wants to pull?
Jimmy Lea: What is your salary? Let's say it's
Eric Joern: $140,000. Yeah. Well first if you're pulling, if you're, most shops are gonna be an S corporation. We're pulling $140,000 salary. We're gonna have a talk about if this is, if that's the most tax efficient way to pay yourself. Bingo. Yes. And I think you guys had a guest on there that, that hit on that topic.
Eric Joern: But hey, let's control our reasonable comp and maximize profits as an scorp. Okay. Just had to do my tax plug only because that's the whole other side of the brain that we operate
Jimmy Lea: on. Hey, and I love it. I love that you said that. So do we want to adjust this 140? Should we make it different? Yeah, let,
Eric Joern: let's bring it down to even $80,000.
Eric Joern: And I'll just say there's never been an IRS court case that said. Anything under eight or anything over $80,000 has not been a reasonable salary.
Jimmy Lea: Yeah. And to replace an owner in a business to do everything that an owner does, it's probably gonna cost $80,000 a year to do that. So that's a great number, and I love that net profit.
Jimmy Lea: What do we want to profit out of the business? What do we want the business to profit
Eric Joern: $200,000. I think 200,000 is fair. $280,000. It's pretty good. Take home. You know that from a,
Jimmy Lea: yeah,
Eric Joern: And on a million dollar
Jimmy Lea: business, if they're doing a million a year, 200,000, that's our 20%. It's 20%. Three weeks vacation.
Jimmy Lea: We'll keep that. We're a five day work week. Anybody want to change that? Let us know. Put it in the comments by a five day work week. That means you're open for approximately 250. Days per year, and then there's a couple of holidays to consider. Yes, those have to be taken out dah. Yeah. We got you.
Jimmy Lea: Service manager pay 120,000. We can change this. What? What's a good service pay? Eric, what do you see out there in the industry? And comments? Comments. Anybody wanna put in? Usually we're trying to.
Eric Joern: Yeah I'll let the comment, we'll give it another five seconds for somebody to put something in the comments and then I'll give you my opinion.
Jimmy Lea: Gimme your opinion. They're not writing anything. 4,
Eric Joern: 3, 2, 1. All right. We're gonna go with what would be 10% of revenue. So, so a hundred thousand dollars, which cover your service advisor and or service manager cost.
Eric Joern: If you have a full blown service manager and they're not writing service, maybe it might be a little more, but we'll go with that.
Jimmy Lea: All other operating fixed expenses we're in the 350,000 range. This includes putting minus your salary, what's minus your service manager. So this is your rents and your utilities and your licenses and everything else.
Eric Joern: Yeah. So that means we're gonna include all that ex 180,000 would be inside of our, that would all be inside of our overhead bucket. This is our overhead bucket. We talked about trying to achieve a 40 40% overhead bucket with all those included. So we might actually, that might only be another 220,000.
Eric Joern: Two 20.
Jimmy Lea: Happy. So total expenses were right around $600,000.
Eric Joern: Yep.
Jimmy Lea: Okay, gross profit. On your sheet that you were shown, you showed a 46%, so I just grabbed a hold of that and threw it in here at 46. In that scenario, in that shop that you were looking at, I know it's all fictitious numbers, but what was the car count?
Jimmy Lea: Do you remember as you were looking at that?
Eric Joern: So, let's see. We'll go with daily car count. Daily car count, and how many days were open. 5 5, 2 50. Two 50 divided by 52. We're open. 4.8 days on average. You ask an account, you ask an accountant to, to come up with a number, right? You know, I'm gonna want a pre precise number here.
Eric Joern: Come
Jimmy Lea: up with a number. Doesn't mean have your calculator 30, say
Eric Joern: 36 days. 36 days or 36 cars. 36 cars a day.
Jimmy Lea: Okay. All right. So effective labor rate from your scenario that you're running. I, I. The font was a little bit small on my screen, so I couldn't see it. Yeah. Let's, but you talked about an effective labor rate.
Jimmy Lea: I did grab the average repair order, $584.
Eric Joern: Perfect. We have that. And then our how many
Jimmy Lea: texts is this? 36 car count. You must have six texts. Let's go with six. I was gonna say six or seven. Yeah. Oh, but you could do it with five. Oh my gosh, look at that. You could do it with four. All right, but we'll keep it at five.
Jimmy Lea: Tech productivity is at 71% do with that scenario. What did you have? Because 36 cars a day with five techs, you're looking at six and a half cars per tech. That's a lot of, that's a lot of cars. That's what I'm thinking. Comments. I need somebody to pipe up here, Andrew. Shayla, Tommy, Daniel, Chris, Bobby.
Jimmy Lea: 36 cars per day. Five texts. Too much. Too little. Let's
Eric Joern: bring that down to the 36. Let's do the car count. Let's bring it down. Yeah, let's bring that down to nine per. Nine total. Nine per day. Nine per day. All right. If I do, nine times two 50 gets me my 2250 of cars for a year. Yeah, that sounds a little bit closer.
Eric Joern: Our effective labor rate was 1 24 15, so, or 1 24
Jimmy Lea: current ro a ro. Average hours. Okay. Number of techs. We've got five techs.
Eric Joern: Yeah, and I think we're gonna bring that number even down to probably three if we're doing nine cars a day. Okay.
Jimmy Lea: 71% productivity. I'm at most shops that I'm talking to. We discover that they are somewhere between the 50 and 60 range for this exercise.
Jimmy Lea: We'll keep it at 71 and then we'll show you some really cool things that we can change here. Thank you to Daniel, Shayla, Chris, they said too little texts or too many cars. Yeah, and I agree. So I'm glad we changed that. What's your highest paid technician hourly rate? I'd love to hear that in the comments, but I know that you work with.
Jimmy Lea: A lot of shops, Eric. Yep. What's the hourly rate and
Eric Joern: Yeah, before loading and adjusting for productivity. $50 an hour, seems about right.
Jimmy Lea: Okay, cool. We'll keep that right there then. And we'll also keep our parts labor and we'll keep this right there where it is at 48. Perfect.
Jimmy Lea: So what we're saying is, if you want to do this. You want to be selling in this range, you can do what you're doing with 3.3 technicians. So either you need to increase the productivity a little bit or you need to increase your profit margin just a little bit. So if we let's play with a couple of numbers here really quickly, because you were talking about getting to a 58, even a 60.
Jimmy Lea: Totally agree with that. If we adjust this just to a 52 notice here that you don't need. An additional technician, you're able to do everything inhouse just by adjusting the profit margin, adjusting your parts markup, your parts matrix. You're able to hit all these numbers.
Eric Joern: Absolutely. And that's a very simple, I love it.
Eric Joern: Very achievable.
Jimmy Lea: Yeah. Just like you were talking about that $5,000 that you're missing out on one simple, slight little adjustment. Okay. Let's look at a couple of other things here too. What if we were to, and this is something that we talk about at the institute, and I'm going to use the average. So we have two averages.
Jimmy Lea: Which one should I use? In our a, in our advisor group, our a PG, the average of average repair order in our a PG group and our advisors group, the average repair order is $1,100. Within our coaching and our group member groups, it's anywhere from eight 50 to nine 50. So let's go conservative.
Jimmy Lea: We'll go with the eight 50 range. So anybody that comes in with the institute, you should be operating at this level. That's the average of what is operating at the institute right now. Eight 50. Phenomenal. Look at that. It brought down the number of technicians even a little bit more now. What if, what else should we adjust?
Jimmy Lea: Oh, let's adjust the productivity. Let's make our technicians a little bit more productive. 80% productive. What do you think, Eric? I think that's reasonable. Oh, it's totally reasonable. I. Look at that. Look at that. Brought down the number of additional technicians that would we'll need. We're down to 2.6. We gotta find a way to get a 0.6 technician.
Jimmy Lea: So here's what's interesting, Eric. By being 80, only 80% effective, we're still losing $101,000 per year.
Eric Joern: That is a whole lot more money than anything that I can find in the operating expenses. Yeah. On this p and l right? We have 220,000 of other expenses. Yeah. Or we can focus on driving productivity and find a hundred, $1,000.
Jimmy Lea: 101. So let's adjust this to, let's adjust this to a 90% efficien productivity. Look at that. We just picked up $55,000. Huge. Huge. Now now this will blow your mind here. When Cecil owned his three shops, when he was managing the shop in mountain View California, his technicians were operating over a hundred percent.
Jimmy Lea: They were over 120%. In fact, I think it was 121. So let's just look at, so the reason I say that is a hundred percent efficient is possible. Absolutely. So let's look first at a hundred percent efficient. You could totally even lose a technician and be just fine. Alright let's operate at the the 115.
Jimmy Lea: You just picked up another $52,000. Oh,
Eric Joern: we just found $150,000. Just finding moving one
Jimmy Lea: needle. One. One. Yeah. J just our technician proficiency. So our technicians need training. Our technicians need to know what they're doing. We need to look at our shop process procedures in-house. I've seen shops where the filters are way over on the other side of the building, and your quick lube bay is way over on this side of the building.
Jimmy Lea: The tech has to go back and forth. Dude's walking five miles a day.
Eric Joern: Absolutely.
Jimmy Lea: No, let's bring it all over.
Eric Joern: So look at your in-house. Yeah, I mean, think about right, are what? What is everybody's number one fear right now? Where am I gonna find my next technician? How am I gonna develop my next technician?
Eric Joern: Yeah. Look at everything that technician has to do. And can that be done by somebody else in the shop too? What? At what? Point in time, do I not need a technician to perform a function that they're performing? Oh yeah. And I'll say for some efficiency things, right. There might be things like when they're compiling an estimates and you need part, you need a part list.
Eric Joern: Yeah. And they're the ones actually on the physical card. You know? Can a service advisor use a standard guide and compile that? Sure. But. That's a probably a fine line, but is there anything else? Moving cars, right? It's the reason why dealers use Porters. Yep. And another life. I wrote Service Now we were spoiled.
Eric Joern: This was during the both during the unintended acceleration problem for Toyota and their Tacoma Tundra right frame rot issues. But we had technicians that were at over 200% productivity because we streamlined as many processes as we could.
Jimmy Lea: Wow. Yep. That, and that's a lot of porters running stuff around.
Jimmy Lea: So the technician is more, more productive. I love that. You know what, that reminds me of a story I want to tell you about a shop that came to the institute and said, Hey, look, we've been to a few different training companies and every single one of 'em seemed to hit on these three things. And if you look at your car count, increase your car count, increase your average repair order, spend more in marketing.
Jimmy Lea: Yeah. And the shop came to us and said. Look, if that's your jam, that's cool, but that's not our jam. That's not what we want. That's not what we need. We need shop efficiency. We need to be more productive in our shop. So don't talk about these. We've got a solid average repair order with $650.
Jimmy Lea: We've got a solid car count. We've got a solid. Marketing plan. I need shop efficiencies. Great. Love it. You are in the program, so he comes in a family business. The success or failure of the family depends on this business. It cannot fail. That's some pressure, right? Absolutely. He comes in, he and his sister, and they're working the system.
Jimmy Lea: They're being coached and trained. Within nine months, they go from a 7% net profit. Did I tell you the 7% net profit part? Yep. 7% net profit. They couldn't break that. He's like, I just can't break it. What can we do within nine months? Got to an 18% net profit. Wow. Boom, boom. Right? The natural progression of him coming into our coaching and training program is to progress them into the GPG group.
Jimmy Lea: It's to a group environment, a mastermind. This is where you have a composite partner that keeps you accountable. So he moves into. The group environment goes to these meetings and goes and visits a shop, and they come away with an action list for that shop owner. 200 different things that you need to do on your shop, Eric, to make it a better, more attractive for the consumer, for the public to come in and purchase from you.
Jimmy Lea: Love it,
Eric Joern: love it. And another shout out to that group environment. You know, we, as a firm, one of the best things we ever did was. Join an association that has, we call 'em financial review groups. Very sim this is your mastermind groups. These are your 20 groups. We have our 20 groups as well.
Eric Joern: So, and one of the best things we do is we go out, we meet, we spend a few days together, we come away with our long list of to-dos that our co o hates when we come back with that list. But it's a it's what moves us forward, right? It's one of those things that, Hey, what is working for your shop that's not working for mine?
Eric Joern: We're all doing right things and wrong things, and when we can com compliment them. One another. That's how we all move forward together.
Jimmy Lea: Oh,
Eric Joern: I love it.
Jimmy Lea: I love it. I love it. I love that you're in a mastermind group for CPAs. That has to be the most riveting meeting you go to. Yeah, that was sarcasm. I was being sarcastic.
Jimmy Lea: Sorry.
Eric Joern: Ironically, as a group of CPAs, we focus so much less on numbers and everything else because we're all good with our numbers. Good, okay. It's everything else that's challenging for. Oh, it's
Jimmy Lea: a good meeting. So let's get to the end of the story here, because this is where I want to tell you that group environment that you speak so highly of.
Jimmy Lea: That we tout as great. This is where we want you to move into, because this is where you have that peer-to-peer accountability. This is where you really move the needle. You already heard we moved the needle 7% to an 18% net profit. Yep. Huge, solid. That's a changing event. It really is Now.
Jimmy Lea: Now nine months in the program. Now they move to the group environment. Now they've been in the program now about roughly a year and a few months. Let's call it a year and a half, record months, 24.9% net profit.
Eric Joern: Huge. What? And that's better. The, we saw those industry averages, right? That I put up under the formula 20.
Eric Joern: That's above it. It's above
Jimmy Lea: it.
Eric Joern: It's above
Jimmy Lea: it.
Eric Joern: A year and change. And this just somebody
Jimmy Lea: that came into the program a year and a half ago. Wow. Let's see this, I gotta think now, this September, ooh, I think it's this September. It'll be two years that this person has now been in the program. This family, I'm gonna call it a family because it's not just him it's.
Jimmy Lea: It's her as well, brother and sister and family. They have nephews, nieces, sons, daughters that are all working in this business, plus the additional family that you adopt because you choose to bring them into the family. They are part of the. Ship. They're part of the machine. They're part of what makes us awesome and amazing and takes us out to that next level.
Jimmy Lea: So a big, huge shout out to this shop, and he's a very dear friend. And I don't know, I'm not gonna name him in this environment, but if you want to know, come to me privately and we can talk about it.
Eric Joern: Awesome. Awesome. I hate after all that excitement. I hate to drive us back to a PowerPoint, but there are a few things that we still want to drive home here.
Jimmy Lea: Well, let's do it. Let's drive it home, because even though this is the PowerPoint, even though this is the numbers, this is where we wanna put our focus and attention so that as a shop owner, we know, okay, do I have money in my pocket? Well, that's the wrong way to look at this. We gotta look at the long term.
Eric Joern: Absolutely. Yeah. So is money in your pocket? Absolutely. We have the formula, so whether or not we choose one of these industry standards, or we actually go through that exercise, we come up with our numbers, right? That that calculator is gonna give us what we need to hit for gross profit percentage, what we need to hit for operating expenses, to achieve the net income, the lifestyle the business infrastructure that we want.
Eric Joern: So we come up with those three numbers. We're just going to every month, what's our goal? Hey, are we hitting our goal? You know, we have our revenue number based on that target that we had. Were we above or below it? Are our cost a good sold where we need it to be to hit that number? Right? So in this case, this is just pulled right off of a QuickBooks p and l to snip shots of it.
Eric Joern: Now I, one thing, one downside with QuickBooks online, they won't do nice things like, Hey, I'm gonna calculate my parts costs off my parts sales to see how that corresponds back to my goal for parts margin. But we're gonna look at that gross profit amount, right? Is that 60, in this case, 64% gross profit?
Eric Joern: We're pretty happy with that number. How are we doing as a whole? Our part. So we, you could just take a little Excel sheet and just drop those few numbers in there, right? And we're talking again, five numbers. That's it. What are our parts sales? What are our tire sales? What are our labor sales?
Eric Joern: What our sublet sales shop, supply sales? And I know those, fortunately for those in California, you can't participate in that program. But we have parts costs, we have tire costs, we have sub labor costs, and we have our sublet costs and shop supply costs, and what are our gross profits and what do they aggregate to, you know?
Eric Joern: So when we say that 65% was at 55% under that 60% goal, I. Which, which category do we need to work on? Right? Maybe it's our parts sales. We go back to the parts pricing matrix. If it's labor, we go back to our efficiency. All the things we talked about with labor efficiency, right? That was moving the needle more than anything, right?
Eric Joern: Even more than a parts pricing matrix or whatever other costs we can carve off off the business. Maybe we're missing out on some sublet markup. Maybe we're missing out on sub shop supply sales now. Again, this from a gross profit standpoint, I'm pretty happy with how this p and l shook out.
Eric Joern: What are the other items we're looking at? What's our total expenses? Remember we talked about 40%, and that's gonna include all those overhead items. Also include the owner salary. Also include my service manager's salary to hit that 40%, and that's how we end up with a 24% net income percentage. Huge, and it's simple, right?
Eric Joern: Those are our formulas at least from the analyzing the numbers standpoint. It's simple. The complication is going out in execution. How do we drive those labor efficiencies, right? We wouldn't be able to hit this 24% without having our labor gross profit at 76% without hitting our parts sales. At 53%, we have to focus on our parts pricing matrix.
Eric Joern: This is our labor efficiency. Bringing the right cars in the door with the right a RO, the right gross profit percentages.
Eric Joern: And here's a breakdown of some of their largest overhead items with inside of that 40%, there's three items that we probably might wanna spot check inside of our overhead operating expense account. It's usually gonna be our three biggest items, right? Because that's the thing, you know, we can go through and we can beat up our uniform vendor, we can beat up our insurance provider, we can beat up our accountant CPA to help reduce some costs.
Eric Joern: Probably those are representing a fraction of a percent of your total p and l. We need to focus on these big heavy hitting items, right? What's our rent and marketing? Are we, you know, do we have enough? And that's the truth teller, right? Is do we have enough cars coming in the door to justify our spend on our space and bringing those cars in the door that tells us when we have a revenue problem, more so than a cost control problem, we need to make we, if we have.
Eric Joern: Four walls that cost us x, we don't really have an option to move the shop. So that's when we know we need to drive more revenue. Is our service manager percentage, is that in line? Right? Are we too heavy on the front end of things? And then, hey, in this case, they're just taking the most comp out of this deal.
Eric Joern: So their three top overhead expenses representing half of their overhead load is. What they pay their service advisors, what it costs for their four walls to bring the cars in and to compensate themselves to hit their financial goal that they have.
Eric Joern: So high level we talked about a few, just a few numbers. Sales. Did we hit our sales goal? Did we hit our cost of goods goal? Absolutely. Our total cost of goods sold was 36%. Our goal was 40%. We were under by 4%. Our operating expenses, our goal was 40%. We hit 40%. We're right on target. Our net income our goal percentage for that was 20%.
Eric Joern: We hit 24%. All these just pulled right off the QuickBooks p and l. Super simple. I would keep a spreadsheet with those five metrics. What's my goal? What's my actual, and what's my result?
Eric Joern: Now, a lot of times people ask, Hey, where, what about where I'm spending other parts of my money? You know, how do I control costs? How do I not let that creep out and get outta hand? How do I not let my overhead costs get outta control? Now you can. I analyze and you can look at what you pay your vendors every month and really deep dive and spend the time on that.
Eric Joern: In my opinion, time is better spent in actually setting a budget. What I'm willing to spend in those categories to hit that 40%. Right. The more we plan, the more we can prevent outrunning things running into issues. We're gonna actually create a budget and say, this is what we're gonna spend. And now we have, now it's our job to hold ourselves accountable every month to look at it.
Eric Joern: So I might look at a budget to actual and right, this is the first layer of, Hey, I'm gonna deep dive in my financial process. But creating a budget really should be your first. The first avenue you want to go. If you need to find a way to control costs. Because if you set a plan and you hold yourself accountable to it, that's what is going to prevent you from overspending and move the needle.
Eric Joern: So that's something I might look at is what's my actual to budget? You can build that out in QuickBooks Online. You have to have the upside subscription for it, the expensive one. Or you can just export 12 months of p and l to Excel. And then change your numbers, what you want 'em to be and drop in the other one.
Eric Joern: We have templates for that. We do that all the time with our clients and we actually even service some shops in a, what's called a fractional CFO seat that might actually, that will, we'd actually create help you come up with this plan in depth, create that roadmap, and then hold you accountable on a biweekly basis for that.
Eric Joern: Another question that we have that we answer is, I had profits. Now, where's the money? I hear the term cash flow statement thrown out a lot. Now, QuickBooks has got a function for a cash flow statement. That statement comes through. In a way in which only those who had to spend four years going to school, actually five to be a CPA and go take all these egregious exams to understand where it talks about investing, cash flows, debt service, cash flows, all these different items.
Eric Joern: And in reality, you know, for us on a day-to-day, month to month basis, it's not practical to look at that and interpret it and be educated to the point where we need to understand that particular rapport. And I don't think it's gonna answer the questions that we want to answer. We'll, let's do it even in an even more simple way.
Eric Joern: We're gonna run this balance sheet report, so at the end of the month into the prior year, and we're gonna display columns by year. That's the important part when we do that. And what this will return us is a. Balance sheet that shows us the prior year balances. So what's in our bank? What do we have for fixed assets?
Eric Joern: What do we have for other assets? What do we have for liabilities and equity? And it'll show it where that sits in the current month. And we'll just follow this along, right. Hey, we're up 50, 50 plus grand in cash. Our total assets are up, so we know we're actually holding onto some of our profits. Oh, it looks like we acquired some more short-term liabilities, but we paid down some long-term debt, but we're up actually a little bit altogether from a liability standpoint.
Eric Joern: And then, hey, we maybe took a lot of money out outside of the, out of the business, so I. Some of the money we're accumulating as assets and some of it we're taking out of the business. And you can actually foot the change in all these balances back to that net income number to exactly know where all your cash flow went from your net income.
Eric Joern: So when I don't know where the money went, I. From my p and l, I made a hundred thousand dollars. But where did it go? It's not in my bank account. Follow the balance sheet, see where those accounts all moved, line by line. And that'll tell you exactly where the money went. And usually we see that in the shareholder distributions account.
Eric Joern: Hey, we pulled that money out of the business. And then final question, is my business even healthy? Here we're gonna focus on this equity number right now. This. This shop was actually highly profitable and it's a new thing. And you'll see their balance sheet's not super healthy, right? We have more debt than we have assets, so we have negative equity.
Eric Joern: What we want to do is over a long period of time over trends, I. Years and years, we wanna see the equity section actually continue to grow, continue to accumulate versus going negative. The good news for this shop, right, we went from a negative two 60 equity to start the year and through the first quarter we actually chipped away at that.
Eric Joern: So we're improving the health of this business little by little month after month. Super important basic balance sheet item to look at.
Eric Joern: Slideshow is all done. This is our contact information if you did want to get in touch with us. Jimmy do we wanna open up the q and a or we wanna do a little a little other experiment about deep diving?
Jimmy Lea: I. I like the deep diving. If anybody's got any questions, comments, concerns, type them into the comment section and yeah, let's dig into it.
Jimmy Lea: Let's, if not pull up your, 'cause you've got a how often is it that this report goes out to your clients when you're working with them? Is this a monthly or is this an annual
Eric Joern: or quarterly? Yeah. Yeah, so this is a tool that we use when we hold something called a strategy session. So we can provide reports all we want.
Eric Joern: We try to make them as informative as possible, but we wanna actually sit down and talk to you about it. So something that we might bring up in your strategy session. Can everybody, am I sharing the right thing? Nice little graphical Excel workbook. There you go. This is just a a tool that we use.
Eric Joern: If we wanna do some more deep diving and if we want to answer some questions of like, how do we become more efficient? What goals do we need to set, where we do we need to be? So this will help us analyze trends. So like our average repair order from a period to period. Hey, is this seem, is this seeming consistent?
Eric Joern: What happened in September and November that it's so much higher than say in January, February? I think we can answer those questions, right? Those are. Maybe some seasonal aspects to our business. So this really gives us some tools to talk about different things. And let's look at the, the total view, this is kind of spreadsheet, this is my language.
Eric Joern: The graph is more everybody else's language. But yeah, we're looking at, hey, what's my average repair order? What are my gross profit percentages, labor, gross profit parts, gross profit? What's my overhead rate? And then what did my net end up being? And then we wanna look at maybe even some other items that help us understand, Hey, what does our car count?
Eric Joern: How do we back into those gross sales numbers? How do we know if we're pricing things effectively? How much overhead do we have per car? Every car that comes through the shop? How much does that, does it cost us to just have that car come into our building? How much per labor hour sold? What's our labor cost per hour?
Eric Joern: What's our revenue per hour? I think some of these numbers might have gotten jumbled here. Hope our labor cost per hour is not $158 an hour. That's, that'd be hard to manage. But what's our revenue per build hour? What's our gross profit per build hour? What's our net income per build hour. So this is this is how you can know if you're making money on a car to car basis is when you drill down into some of these metrics like that.
Jimmy Lea: Yeah. And that's something that needs to be drilled down, not just annually. 'cause you can't correct the ship if you're only doing it annually. You can't do it quarterly, you can't do it monthly. This is a daily analysis of those daily numbers. So those five numbers that you were talking about on the daily man, they're so valuable because it really does give you the indication if you are going negative further in debt or if you're on the positive rise, if you're increasing and.
Jimmy Lea: Making money.
Eric Joern: Yeah. I mean even like our effective labor rate variance, right? That's a daily thing. I'm be looking at my, what is my how off are, what's our bound right? And usually we see around 10% is our bound of how often can I vary through vary from my what my street labor rate is, right?
Eric Joern: We set that labor rate to make it a gold gross profit if I don't keep that under control on a regular, recurring basis. That's how money walks out the door. We're never gonna get our efficiency number that we're hoping for if we're not doing that.
Jimmy Lea: Yep. Gotta be careful. Thank you for sharing your spreadsheet there.
Jimmy Lea: That's,
Jimmy Lea: that's awesome.
Eric Joern: Yeah. Hey,
Jimmy Lea: Go ahead. Sorry. Oh,
Eric Joern: Yeah. If somebody wants this tool to use to tinker with themselves, happy to share it. Share it. Here's my I guess I can pop back to the, to my contact info. Yep. Awesome. Reach out. Happy to share it with you. If you want to call, jump on a call, run through an exercise.
Eric Joern: Anybody in the institute family is also part of my family, so I'm happy to provide that to any member. I. I don't sell anything. I'm not, I'm a partner here at the firm. I'm not one of our salespeople, but I'd be happy to walk through that with you without any pressure of coming to work with us.
Jimmy Lea: Nice. Thank you for that offer, Eric. That's very cool. So, anybody that goes to Kaizen that's scanning this QR code, make sure you, that you saw them on a webinar with the institute. Yeah. That way you get some the institute experience there with them. So thank you. Thank you very much for doing that.
Jimmy Lea: And is this also an email that'll
Eric Joern: get to you, Eric? Absolutely. Yeah. So this is, it's a shared inbox, but I'll see them come through and I've instructed my team to write on anybody requesting this directly to me.
Jimmy Lea: Beautiful. Beautiful. Thank you for all you're sharing with us today, Eric. Really appreciate that.
Eric Joern: Yeah, my, my pleasure. It was a good spirited conversation. We didn't get too far into the. Deep dive into spreadsheets and hopefully everybody was able to follow along 'cause we didn't get too far into the number crunching.
Eric Joern: Yep.
Jimmy Lea: But we got in there and this is good. And you know, the, this is what we do with our vendors in the industry is we lock arms in together we, we make a difference.
Jimmy Lea: And for the institute, thank you for the institute for sponsoring this webinar. They have a phenomenal advisor, program manager, program coaching, one-on-one, even group environments. So if this information you're finding valuable and you would like to join the institute, we'd love to work with you, go to our website.
Jimmy Lea: We are the institute.com book, a business review, book of business analysis so that we can look at your business. We're here to listen. We will not judge. We're here to listen and we'll take those next steps with you. So that you can be a profitable business as well. It's a total different set of skills, right, Eric?
Jimmy Lea: It's a different muscle set compared to being a technician working on a car. Now we
Eric Joern: have to work on the business. It's the hardest, har hardest leap to make for a business owner in general. Absolutely.
Jimmy Lea: So true. So true.
Jimmy Lea: Thank you Eric. Really appreciate it, brother. Thank you guys. Nice. We'll talk to you again soon.
Jimmy Lea: See you guys next week.

Thursday May 01, 2025
Thursday May 01, 2025
118 - Make More. Keep More. Be Smarter. Shop's Leaving Money on the Table with Derrick Van Ness
April 16th, 2025 - 00:51:31
Show Summary:
In this enlightening episode, Jimmy Lea welcomes tax and wealth strategist Derick Van Ness to help auto repair shop owners uncover overlooked strategies to save thousands on taxes every year. From foundational tactics like business structuring and paying your kids legally, to advanced moves like cost segregation and research & development (R&D) tax credits, Derick shares proven tips that can dramatically increase your financial efficiency. With humor, clarity, and decades of experience, he breaks down how shop owners can shift from reactive to proactive tax planning, and reveals how seemingly small changes can add up to $25,000+ in savings annually. The conversation also explores how financial literacy can be passed on to the next generation, and why working with the right advisor makes all the difference. If you're tired of overpaying the IRS and want smarter strategies for your business, this episode is a must-listen.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
Derrick Van Ness - Wealth Strategies, Investor, Life Adventurer at Big Life Financial
Episode Highlights:
[00:02:12] - You don’t have to keep having bad experiences with your CPA, there are better advisors and strategies out there.
[00:04:02] - Derick will show how shop owners can save at least $25,000 a year in taxes with the right strategies.
[00:06:09] - Quick self-assessment: How well do you understand taxes, and how strong is your current tax team?
[00:13:11] - The way you pay yourself, through W-2 vs. distributions, can save you thousands in self-employment taxes.
[00:14:53] - The Augusta Rule: Legally rent your home to your business for up to 14 days a year, tax-free.
[00:20:18] - Pay your kids legitimately and tax-free while teaching them financial responsibility.
[00:26:01] - Using just a few of these strategies can result in $23,000 - $31,000 in annual tax savings.
[00:30:10] - How structuring real estate ownership separately from your business can reduce taxable income.
[00:34:00] - Cost segregation accelerates depreciation and significantly increases your short-term tax write-offs.
[00:39:02] - R&D tax credits aren’t just for tech firms, they apply to innovative auto shops and can yield five-figure refunds.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=B5N1zO3cDAc
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Episode Transcript DisclaimerThis transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.
Episode Transcript:
Jimmy Lea: So excited to be here today with you as we are gonna have some phenomenal discussions about your business, about taxes, about the things that you'd love for your CPA to tell you, but they really won't do it.
Jimmy Lea: I've got my very good friend with me here today that we're gonna have an awesome discussion. Now, before we get into this, because this is to be an interactive. Webinar. Put into the comments whether you are watching us on Facebook, Instagram, LinkedIn, YouTube, wherever you're watching us from today, put into the comments where you're joining us from today.
Jimmy Lea: I'd love to give you a shout out to your shop, to your business, to your location. Shop name, city State, love to give you a shout out. Thank you so much for doing that. I gotta tell you a quick little story. Two days ago I went and got my hair cut and it was probably. One of the worst haircuts that I had gotten in quite a while.
Jimmy Lea: So why am I gonna tell you that? 'cause I, you know what, haircut looks pretty good today. Yeah. Because I had to go back and get it fixed, not by the same person. I went to somebody else, I went to somebody else. I found my old stylist and I found her at the salon. And it was just a boon of a haircut because I walked in and she was there and it was like a great reunion.
Jimmy Lea: Why? Why tell you this story? Well, because you don't have to keep having bad haircuts. You don't have to keep having a bad CPA. You don't have to keep having a bad experience with your taxes, with your advisors. I wanna introduce you to a very good friend of mine, and as we have a discussion today to talk about your business and your taxes.
Jimmy Lea: My good friend is Derek VanNess. Best man at my wedding. Best man that I know. He and I, together at Fraternity Brothers way back in the day, met up our freshman year. Derrick, it's been a long time together, brother. A long time going. It has. Thank you for being here, Derrick. I'm so excited for this presentation today.
Jimmy Lea: This is information that I have not seen you present before, mixed in with a little bit that you have done before. So I'm super excited for what you've got to share with us today.
Derick Van Ness: Me too. This is gonna be fun. Very special on the day after tax day. Right? So.
Jimmy Lea: Very strategic on our part.
Derick Van Ness: Yes, it is. We were talking about that before the show here.
Jimmy Lea: Yep. So I'm gonna turn it right over to you, Derek. Everybody's cringed. Everybody's winced. Everybody's upset about having to file their taxes. They're feeling the pain. Yeah you've got a special offer for everybody here by the end of the presentation, so everybody needs to stay tuned in for that special offer.
Jimmy Lea: And Derek the floor is yours, brother.
Derick Van Ness: Well, let's do that. And just so you guys know, my commitment to you is I think I'm gonna be able to show you how to save at least $25,000 a year in taxes if you're paying that much yet because there are enough strategies out there that apply to shop owners.
Derick Van Ness: That you can do right away, that we're gonna show you how to get that kind of value. So definitely gonna be worth your time today. And I'm excited. And we're really just gonna be talking about smart tax strategies. Every shop owner needs to know, because listen, every dollar that you make is important, but every dollar you keep.
Derick Van Ness: It's the same as a new dollar you make, it stays in your bank account. Now, my disclaimer is I own, I'm a part owner in an accounting firm, but I am not a CPA myself. We have CPAs and EAs and tax professionals that do the work. But I am a tax and wealth strategist, so I know the strategy piece. I just don't file returns.
Derick Van Ness: Right. I'm obviously, I own a couple of businesses, consider myself to be a life adventurer because. Listen, that's something Jimmy and I have in common. We both love adventure. So before we get started, I just wanna do a quick tax quiz with you guys, right? And so on a quick piece of paper or in your mind, or if you don't have a place to take notes, you should do that today for sure, right?
Derick Van Ness: But I want you to write down, on a scale of one to 10, how much do you personally feel like you know about taxes? So one being I don't know anything. I show up at the shoebox and my CPA just takes care of it from there, a 10 being I should probably have my CPAI live and breathe taxes and you know, that's what we do for Christmas is give each other tax code books.
Derick Van Ness: Second question, on a scale of one to 10, how good is your tax team? Now I bring up the term team because a lot of shop owners have enough going on. That you might need more than just a tax person, right? You might need a tax attorney, you might need entity structuring or investment advisors who understand taxes.
Derick Van Ness: How good is your tax team? Once again, a one being terrible, a 10 being best of the best. The Rockefellers would be excited to hire this team. Right. And then the third one is, over the last three years, how good have you been at keeping your taxes optimized? Right. We're not talking about going into gray area or doing a bunch of crazy stuff.
Derick Van Ness: But really, like, are you proactively doing strategies that are gonna help you to reduce taxes? Once again, one being we haven't done any of that. 10 being, we're literally looking at it, you know, every single month looking for opportunities to reduce taxes. So the question with those or the thing I want you to look at is, do you like your answers?
Derick Van Ness: If you're more on the 1, 2, 3 area, there's a ton of room for improvement. If there's an 8, 9, 10, hey, we've got a job, maybe we can hire you. Right? But most shop owners I talk to are somewhere between a one and a six, right? They get their taxes done. They may know a few things, but they're really not doing a lot.
Derick Van Ness: My goal today is to help you up your game, and the reason I'm so passionate about this is I have been. Very successful in my life. Had a couple of different success stories, but, you know, where I really got passionate about this was back in 2008 up to that point from 2001 to 2008. I was a house flipper.
Derick Van Ness: I was those guys like, you know, flip this house, buy a house, fix it up, make it look cool, resell it, make more money. I know some of you do that with cars and other kinds of things. But the reality was I was making really good money. I just didn't realize at the time that I didn't know that much about taxes or finances.
Derick Van Ness: And what happened was I had a good income, but I did not have a good plan for building wealth, even though I was in real estate. Right. That seems like one of the easier places to do it. So when the oh eight came, I was unprepared. I thought I was prepared. I had a bunch of money set aside. I had a bunch of things in place.
Derick Van Ness: It was not nearly enough that tidal wave. Of the mortgage meltdown wiped me out. And at that point I became really passionate about understanding as a business owner, how do I translate my income into building wealth and taxes is a huge piece of that because quite frankly, I went from being a multimillionaire to filing bankruptcy in about 18 months and it sucked.
Derick Van Ness: And it was a really hard lesson, but it also put me on this path of helping small business owners 'cause I know so many of us, so many of you. Work so hard for your money. I wanna help you keep a lot more of what you make because efficiency matters, right? And you guys know that so already, disclaimer, I'm not a CPA.
Derick Van Ness: We do own a firm, but I don't do the filing. Okay? So what does make me a little different than a typical CPA, and this is where we're gonna start to divide, this is your typical CPA does taxes, right? They're what I would call a tax recorder. And so what that means is they, you bring your stuff to them, they take your stuff, and they basically copy it from your profit and loss onto the tax return.
Derick Van Ness: And maybe you do a couple of things with depreciation and interest write offs and so forth, and then they tell you what they owe. What we really do is we pick it up way before that, and we kind of do a lot of the work that they don't do with how do you structure your business, structure your life? I'm gonna be giving some examples as we go through this today.
Derick Van Ness: What are things that you can proactively be doing and really that gap that if you have a tax pro, you probably think they should be helping you. And all they do is do your taxes. We fill that gap, right? So we create the tax breaks rather than recording them. And we coordinate this because ultimately taxes is part of your financial life, and your financial life is part of your real life, right?
Derick Van Ness: So we wanna help that. A couple of quick statistics that I think are important here. 70% of small business owners believe they're overpaying taxes, so you can ask yourself, do I think I've had this right? My guess is if you came today, you feel like there might be room for improvement. What's wild is the real number is actually about 95% of small business owners are overpaying.
Derick Van Ness: When we've done internal audits with our firm or other firms that I've worked with. More than 95% of them were significantly overpaying taxes, and I'm not talking about a couple hundred bucks here. Typically per a hundred thousand of income we were seeing without even getting into the advanced stuff, just the basic stuff, they were overpaying $11,300 per a hundred thousand dollars of income.
Derick Van Ness: So if you make a couple hundred thousand, multiply 11,300 by two or three or four, that seems to be pretty consistent. Actually, the more money you make, the worse it gets because taxes get more expensive. But I just want you to do some mental math there real quick. If you're making a couple hundred thousand bucks, then you're probably overpaying 20,000 or more.
Derick Van Ness: And I'm gonna show you how to save that. So the three things that you need to master to build wealth, and this is going to be one of those categories, is you need to make more money. And that's where the institute comes in, right? They help you guys run your shop, be more profitable, keep more of that money that's coming through the door, but then after that, keeping more of the money you make through tax efficiency is key.
Derick Van Ness: And then something I want to encourage you to do is as you save the taxes, rather than going and buying a fancier car or a swimming pool, put that money to work and help it to start to build more income for you. So that you don't always feel like everything has to come from the business. I know a lot of shops feel that way.
Derick Van Ness: So we're gonna help you to create a bunch of money that you can then use to reinvest in the shop or to build wealth outside of it. So today's going to be more about the keep more of what you make component, right? Okay, we just went over that. So let's get right into strategies. I'm gonna cover seven or eight direct strategies that you can use this year to keep more money in your pocket.
Derick Van Ness: So the first thing I wanna talk about is how you pay yourself matters. A lot of you are doing this and a lot of you aren't. So if this doesn't apply to you, that's great, but ultimately it comes down to this. Once you're making more than about $75,000 a year there, you want to consider having some sort of entity, not just a sole proprietorship, right?
Derick Van Ness: If you have an LLC. Or you have an S-corp. The LLC can file as an S-corp, but s corporations allow you to take money that's not your W2 income, but your distributions or your, you know, the money, I call it your business income for being the business owner. And you don't have to pay the self-employment tax on that if you take it that way.
Derick Van Ness: So you pay yourself a W2 where you'll, you're gonna pay full blast on those taxes, but on the dividends or distribution income. You're going to save six, six and a half percent roughly on that money. So if you're paying yourself $250,000 a year, you take 150 thou or a hundred thousand as a W2, you get the hun other 150,000 this way, that's probably gonna save you about $10,000 in taxes.
Derick Van Ness: Just that one move. By having the right entity structure and paying yourself effectively, and this is something you wanna work with your tax pro on, like how much should be W2 and how much can you take as distributions? Some people get weigh to one side or the other. I think there's a proper way, ideally, I like to think of it this way, if the IRS or someone was to look at this and they would say, how much are you paying yourself as a W2, you'd wanna say, well, it would cost a hundred thousand dollars to replace myself with a key person in the business.
Derick Van Ness: So that's what I pay myself as a W2. Then the rest comes as my, as a result of me being a business owner. In other words, that's money that is made on top of what I would have to pay someone to do my job. Right. I've heard other CPAs say. Roughly 30% of your overall income should be taken as a W2. You can talk to your tax pro and see what they say, but if you are way outta whack on those things, one way or the other, I think you should consider it.
Derick Van Ness: 'cause it can be a pretty huge tax savings. And listen, an extra five, 10, $15,000 a year is not so bad, right? Just for doing it that way. Plus, I'm not an estate planning or entity structuring attorney, but. If you have a sole proprietorship right now, if you're not just getting started, you probably want some liability protection.
Derick Van Ness: Entities can do a great job at that and, you know, you could talk to someone about that. So, strategy number two this is something a lot of people have may have heard of. It's affectionately known as the Augusta Rule, but what it is it is a way that you can take your home and you can rent it out and the code tax code says you can rent your house out.
Derick Van Ness: Up to 14 days a year. Tax free.
Jimmy Lea: Question, Derek? Yes. Okay, hold on a second before we get into the Augusta rule. I wanna go back to strategy number one. You talked about $75,000. And I wasn't, I, my mind went way down a trail. I don't know if you said 75,000 as I pay me as an owner or as my business is making or producing 75,000 a year.
Derick Van Ness: Yeah.
Jimmy Lea: What were you talking about there?
Derick Van Ness: The reason I say 75,000 is it'd be hard to hire an employee who could run your business for a lot less than that. Yeah. So at that point, it's hard to justify a W2. Too much lower. Even if you paid 'em 65 and you take 10 as dividends, like there's not a huge amounts, maybe 600 bucks of tax savings.
Derick Van Ness: But once you start getting above that, it's like, oh, I can pay myself. Let's say you get to a hundred.
Jimmy Lea: Yep.
Derick Van Ness: Now I can pay myself half W2 and half distributions, and the numbers are worth the change. So I feel like 75,000 is about where it really starts to make sense to use that strategy. That's why.
Jimmy Lea: And I love this Augusta rule because not only can I do this from.
Jimmy Lea: The business point of view, isn't this also something that we can do on a house?
Derick Van Ness: Well, so what you do is you actually rent your personal home, your primary residence.
Jimmy Lea: Okay?
Derick Van Ness: You rent it instead of renting it to strangers. You can rent it to your business. Right now, a lot of shop owners, very community oriented.
Derick Van Ness: They use their home anyway, right? And so they may be doing team building barbecues. They may be doing retreats or bringing their management team or their key employees to the, to, to their house. But where this really comes in is if you're already spending money. Let's say you do team building, you do holiday parties, you do trainings or retreats for your team.
Derick Van Ness: That kind of stuff. And you normally go somewhere and you rent a hotel room, like a hotel conference room, or you go to an event center, or you rent the back room at the local steakhouse or whatever. You can do those things at your house, and then your business pays you personally, just like you would've paid the restaurant to rent that back room.
Derick Van Ness: Your business pays you, and you can take that income tax free up to 14 days a year. Right now you can't pay yourself a million dollars. Right. You can pay yourself market rates. But if you say, Hey, my house, we're gonna be using 500 square feet for this, you know, for this holiday party you can look at what would it cost me to get a space that's equivalent for 505, 500 square feet.
Derick Van Ness: Yeah. And you can pay yourself that, right? And so for a lot of people, that might be a thousand, 2000 if you've got a really nice, beautiful house, it could be more than that. In your area.
Jimmy Lea: Well, especially if you spill out into the outsides and you've got parking and you've got people on the street and
Derick Van Ness: Sure.
Jimmy Lea: It does take up your whole house.
Derick Van Ness: It, it can. Right. I don't want to over exaggerate and tell people to get crazy, but the reality is what you're really using, you can, and honestly, if you wanna document it, a, you should have a real lease just like you would with any other entity. Right. Treat it like two third parties.
Derick Van Ness: That don't know each other. Yeah, do some paperwork. Obviously you don't need some kind of airtight lease because it's you renting to you or your business renting to you. But take some pictures, show that it, show what's going on. If you ever got audited or whatever. It's like, Hey, here's the pictures, here's what we did.
Derick Van Ness: It's clearly business. We've got a lease. Everything's, all the boxes are checked. But this is something, this is another way to get an extra 10 to 20 grand a year, maybe a little bit more if you've got a nice house into your h into, your personal bank account from the business tax free. And in a lot of cases, this is stuff you're already doing, you may as well get the tax breaks for it, right?
Derick Van Ness: Yeah. If you're not doing this, you can look at it and say, well, do we want to have our team retreats and other kinds of things offsite? If we do start using your house for this, you know? And you don't have to hit 14 days, but that's the limit. So obviously if you're doing this stuff, you may as well, you may as well be tax efficient, right?
Jimmy Lea: That's right.
Derick Van Ness: And that's the name of the game here. This is not about beating the IRS. This is about knowing the rules, taking a lot of the stuff you're already doing, and just doing it in a way where you can get the tax breaks, right? They want you to take tax breaks. The tax code is as big as like the Harry Potter book series.
Derick Van Ness: It's super thick, like the first 30 pages are on how you pay taxes. The other. 4,000 pages are on how you cannot pay taxes. The government uses the tax code to get you to do things. They want you to start a business. So they give you tax breaks. They want you to have kids. 'cause when people have kids, they're not so crazy and they're a little more stable, right?
Derick Van Ness: They give you tax breaks. They want you to own a home. 'cause that creates stability in the country. They give you a tax break. That's how they do this. So let's take what the government wants us to do. And let's do it in a way that works for us that we were gonna do anyway and save the taxes, right?
Derick Van Ness: Everyone calls 'em loopholes. They're not loopholes, right? Okay. Strategy number three here. Paying your kids, right? This is one that brings up, like everybody raises their hands, and I'll be honest with you, we have a whole system that we've developed teaching people how to pay your kids and then use that as a way to start educating your kids on money.
Derick Van Ness: A whole nother thing. We call it the family Fortune formula. But the idea here is you can pay your kids up to, it changes every year, but it, so I don't know what it's for twenty five, twenty five yet, but let's call it a between 13 and $14,000 a year that you can pay your kids income tax free.
Derick Van Ness: Right now. This is where this comes up. People are like, how, you know, what can my kids do for this? Because if you're going to pay your kids, they need to be earning some money for kids who are. 12 and older, they can help around the shop, they can do social media, they can file things, they can clean up, they can do a lot of that kind of stuff.
Derick Van Ness: But another thing that allows you to pay your kids is use them in your social media. Almost every shop has social media. You've got a website, you've got Instagram, you've got Facebook. You've got these kinds of things to build that community feel. Use your kids, put 'em in the pictures, have 'em hold up signs that you put stuff on.
Derick Van Ness: Get your social media team or whoever handles the marketing for the company to, to do that. Put 'em on the website. 'cause almost every shop I know, it's like a family brand, you know, it's very community oriented. So put the kids in that stuff and pay them. Like you would pay a spokes model or like you would pay a, you know, someone who's gonna be a representative for your company.
Derick Van Ness: And you can pay them that money. If you're making a lot of money, you might be paying 30, 40% or more in taxes. Your kids will pay pretty much zero. Right? Even if they make a little bit more than that. Or have to pay some payroll taxes. It's super, super low compared to it. And then let your kids, you know, if you want them to save for college, that money can go toward that.
Derick Van Ness: If they wanna pay for their own baseball or dance or music lessons or whatever they're into, you can let the kids pay for the stuff, but a much lower tax bracket of dollars. Use it as a chance to teach your kids about money. People put it into Roths, they put it into life insurance. There's a million things you can do with this, but the key is.
Derick Van Ness: How do we legally get money from the business where it's gonna be taxed at a higher tax rate into the household at a much lower tax rate or tax free. And do that in a way that's consistent, right? And I like to use it as a way to teach your kids about money anyway, but that's a whole nother thing.
Derick Van Ness: But yes, once again, if you've got three kids, you know, paying yourself, paying them 13,000, that's $39,000 that can come into the household. At a zero or a very low tax rate, that can be huge for you. Right.
Jimmy Lea: Well, and Derek, I love what you were talking there as well about teaching the kids about money.
Jimmy Lea: Uhhuh, I, a buddy of mine down in St. George, he pays his children and his children have to buy their own groceries. They have to pay for their own sports events and their own sports equipment. Yeah. So. It while he's using it in his business and he is paying the kids are paying for their own groceries.
Jimmy Lea: They're paying for their own clothing. Their own sports events. Their own sports equipment. Yep. They wanna go out, they wanna buy a, a bike. They wanna buy a new jigsaw puzzle. They wanna buy a new video game. Hey, that's great. It's your money and as long as we all approve it. Yeah. Because they have family banking going.
Derick Van Ness: Yeah. The, these are all exactly what I'm talking about. And you can take it to the next level. Have your kids saving for their own college and planning for that. Have your kids doing their own investments and different kinds of things, even if it's at a small level to get the experience, because these are all super valuable experiences and you can take a lot of what you know
Jimmy Lea: Yeah.
Derick Van Ness: As a business owner and pass it on to your kids. Right. And it means something when it's their money.
Jimmy Lea: Oh yeah. Oh yeah. Yeah. It was eye-opening to discover how willing they were to spend my money and how frugal they were to not spend their own.
Derick Van Ness: Yeah. It's great. Right? It changes the whole conversation and listen, I know a lot of people, they don't have their finances totally together, so they're a little bit afraid to like include their kids on some of this stuff, but.
Derick Van Ness: You gotta start somewhere. And this is a great place to give them a chance to have a real world experience. And like you said, Jimmy, they have to make the decisions. Not you, do I buy this or do I buy that? If I want a new car, I've gotta save up for it. Whatever it is. These kinds of things really start to matter and if you can teach them at an early age, they're just miles ahead of other people.
Derick Van Ness: So, so, yeah, getting the kids involved. So strategy number four, and we've all heard of this, right? As a home office. Now I bring this one up partially 'cause there's a little bit of a tax break there. But the big question is something like a home office, a red flag? And the reality is if you're lying about it, it's not a red flag.
Derick Van Ness: You're just lying, right? I don't want you to lie or make stuff up on your taxes. If you have a real home office, like quite frankly, I'm working from a home office. I literally have a lighting setup in here and cameras, and I've got all the screens and all the stuff. This is a home office. Write off. If you have a laptop in your bedroom, probably doesn't count, but if you're really using your home space, dedicated space for your home office, then you can write it off, right?
Derick Van Ness: It's not going to be a huge part, but generally how it works is, let's say your office is. 400 square feet and your house is 2000, right? So that's 20% of your house is your office. Then you can write off 20% of your costs, of your mortgage, right? I bring this one up, not because it's a huge tax saver, but if you are doing it, you can write it off, right?
Derick Van Ness: It's not a red flag if you're really doing it. But the bigger thing is, if you're really doing these things, you can write them off. And if you're not, you shouldn't. And some of them, it might encourage you to do certain things. But I want you to be aware that you don't need to be afraid if you're really legitimately doing something of writing it off, right?
Derick Van Ness: So that's the bigger point here. But this can save, you know, a couple thousand bucks a year depending on how big your office is and how big your mortgage is. So, so if you just use these three strategies, right? And I've kind of given a range here based on your tax bracket, but if you know, if you did a salary versus owner's draw took a hundred thousand of that.
Derick Van Ness: As passive versus W2, that'd save you 7,500 bucks. If you did the Augusta rule at 1250 a, you know, a day for 14 days, that would save you between 52 and $7,800 depending on your tax bracket. The average family has 2.5 kids, so I went with 2.5 kids, right? $30,000 coming into your household, depending on your tax bracket, that's gonna be between nine and $13,000, and then a home office.
Derick Van Ness: 500 bucks a month, that's $6,000 a year. You get to write off that could be between 1,820 600. So if you look at that at the bottom, that's 23 to $31,000 a year just by using these really basic strategies that apply to almost everybody, almost all the time. Right? And I realize that 23 to $30,000 one time isn't gonna totally change your life, but here's the thing.
Derick Van Ness: You can do this every year. Most people I meet aren't even saving that much money. So if you can just take this outta what you were gonna give to Uncle Sam, leave it in your bank account and now put that money to work and add it to what you were already going to save anyway. Suddenly you can just massively supercharge the amount of money you've got working for you, or the amount of money that you have to build your shop or add to it or hire that extra employee or put it into marketing or a million other things.
Derick Van Ness: Or one of the best things is run your shop better, right? Work with someone like the institute and learn how to be more profitable. You can do this every single year. Over the next 20, 30 years. I mean, we're talking about half a million to a million dollars. That's a lot of money. So just that alone, everybody can do.
Derick Van Ness: Now we're gonna get into some other strategies here that may not apply to everyone every time, but will apply to a lot of shop owners based on the hundreds that we've worked with. So I want to jump into that. I think this is such a great one. If you've started making good money. A lot of people ask their CPA, what do I do?
Derick Van Ness: How do I save taxes now that I'm making a couple hundred thousand or more? And the CPA usually says, just get used to paying more taxes. Right. That's not true. There's a ton of things you can do. We won't get into everything today, but but we're gonna, we're gonna tackle a couple more here, right? The first one is, as often as you can, you want to turn active income.
Derick Van Ness: To passive income. So what's the difference? Active income is like that W2 income, right, that you pay full blast on. Passive income is taxed at a lower rate, more like your di dividends, but also has the ability to be written off against against passive losses. So this is, this comes into play a lot with how you structure your entities and a lot of times if you have real estate.
Derick Van Ness: It gets into this, right? So how you structure your entities can allow a lot of income to become passive. So the most common example of this is if you own your shop real estate, and I know a lot of shop owners do, instead of you having the same entity own the business and own the shop, and all the money just goes in one bucket and it comes through to you for taxes, if you have the business.
Derick Van Ness: Have an entity and the real estate have an entity, the business will pay the real estate company. And then you still get the income from the real estate company. But now that income is passive, so it's taxed differently and you can take the depreciation from the shop and you can write it off against that income.
Derick Van Ness: So it makes a lot of that income feel like it's tax free. Right? So here's an example of how I would structure that. The business pays the W2 income. The owner's distribution into, we call it a wealth reservoir 'cause I think it's worth it too. Instead of just paying it straight into your living account, you pay it in here, then you put the money into your account that you spend out of.
Derick Van Ness: So that way if you're got extra, it stays here instead of coming over here and burning a hole in your pocket. And then of course, everybody should save. We're not going crazy into all of that, but the money that for the real estate company comes here and it's paid as passive income into that. So it ends up in the same place.
Derick Van Ness: Now you can take losses against it, like the real estate company gets to depreciate the value of the real estate. We're gonna talk in a minute about how to accelerate some of that depreciation, but it can make a huge difference in how much of that money you get to keep, right. So this is a very simple version of how you can structure entities and how you pay yourself that's going to allow you to keep more money.
Derick Van Ness: And once again, if we just do some simple math here. Let's say you're paying. 5,000 bucks a month for the shop. That's $60,000. That's passive income. Let's say the shop is a million dollar building. You get to write that off over 39, 39 and a half years. So you get like $25,000 a year of depreciation.
Derick Van Ness: So now you're only gonna pay that first $25,000 that you get as the 60 grand of income. You aren't gonna pay taxes on it. It's gonna be offset by the losses. So you're only gonna pay taxes on like 35. Now that's really. Basic math, but I want you to see that first 25 grand basically feels like it's tax free because of the depreciation that you get to use it against.
Derick Van Ness: So hopefully that made sense that I didn't go to make it too convoluted. Right? And this works if you own any kind of commercial real estate. It's a good strategy. So now what's even better is if you have, like in that case you have 60,000 of income, but you only have $25,000 of write-offs. There's a strategy to accelerate depreciation on real estate.
Derick Van Ness: And I would say if you've owned your shop for less than I'd say seven or eight years, this is a really powerful strategy. As long as the shop's worth more than a couple hundred thousand, the real estate itself what cost segregation is it's taking your costs of your real estate and you're breaking it up into pieces, right?
Derick Van Ness: You're segregating it out in layman's terms. What happens here is you take the shop. And it's classified as real estate, but you have someone come through, usually it's an engineer and there are companies that do this and we can refer you to someone if you don't, you know, don't wanna go find your own person.
Derick Van Ness: They come through and they classify as much of the building as they can, as equipment. Instead of real estate. So all the build out the garage doors, the plumbing if you've got AC units, all these kinds of things that are a huge part of the value of the real estate, not the structural component, but a lot of the other stuff can be classified as equipment.
Derick Van Ness: That equipment can be depreciated much faster, right? Maybe 5, 7, 10, 15 years. It is not that you necessarily get more depreciation, it's just if you can get depreciation and keep the money today instead of 30 years from now, that's worth a lot. You get to use that money, grow that money, put it to work in your business, a lot of other things.
Derick Van Ness: So this is a strategy where you get that depreciation faster. And once again, if you can do cost segregation, maybe you get to write off that whole $60,000 against passive losses. Instead of only 25,000 of it. Right. So that's another 35 grand you're not paying taxes on, or you're paying a lot less tax on because you've accelerated the depreciation.
Derick Van Ness: Right. So I know there's a lot of probably numbers and things going through your head. I just really want to open you up to the idea that there's a lot of stuff out there. That is not proactively being brought to the table. Like I think every tax pro should be talking to you. And if you have real estate, they should at least be bringing up cost segregation.
Derick Van Ness: If they're not bringing this up, and lemme tell you this is a pretty obvious one then you gotta wonder what else they might be missing. Right? So passive, the key here is passive losses can only work against passive income. And this is important because. Let's say you do cost segregation. You get $120,000 worth of write-offs, but you only have 60,000 of passive income.
Derick Van Ness: You can only use it against that 60,000. It doesn't do anything against your W2. So as often as we can, we want to take money and shift it from active income to passive income, it will allow you to get a lot more of these losses, and that's just something a lot of people don't know is you can't take that depreciation against your regular income.
Derick Van Ness: So, so we wanna find legal and ethical ways to shift it whenever we can. Strategy number seven, and this is something we've done for a ton of shop owners, is the research and development credits. Now, there's been some interesting things. We did research and development credits for a long time, and then in 2022 the rules changed just a little bit.
Derick Van Ness: The credits are still there, but there's a little bit of an offset short term on those. We actually think that's going to change. With this new tax rewrite that's going on right now basically it got kind of screwed up with the tax rewrite from 2017. It took place in 2022, and for the last two or three years, we've just had a lot of people sitting on the sidelines.
Derick Van Ness: But here's the good news, with research and development credits, especially if they changed the tax code, you can go back and claim this. You can also go back and claim depreciation like cost segregation in arrears so you can actually get money back from the IRS. We've done this for a ton of shop owners, and even if it doesn't get changed, it still continues to produce credits for you.
Derick Van Ness: You just have to understand the little bit of offset that happens in the first couple of years that you do it. But at the end of the day, you end up getting the same amount of credits. So I want to talk through this real quick because it's a really powerful strategy that almost no tax firms are doing, right?
Derick Van Ness: This is something that came about in the eighties, so this isn't like some new thing. This isn't like one of those CO credits or whatever. This is a completely different thing that basically the government wants you to be innovative in what you do. Or people who create new products, they want you to bring those into your business so that you can continue to improve.
Derick Van Ness: So these actually were established in 1981 to help American automakers compete with a lot of the foreign cars. And they wanted to make sure that the US companies tried new stuff, essentially, right, to keep it really simple and and did research and development. So they said, we'll give you credits if you do that.
Derick Van Ness: It changed a lot over the years, but ultimately it comes down to these four questions. This is called the four part test, and I won't get too deep into the weeds, but basically is it for a permitted or qualified purpose? Which really means are you trying to improve something? Are you looking to develop or improve a product or a process?
Derick Van Ness: As shop owners, I know that you're always looking at. How do we bill faster? How do we, you know, quote better? How do we figure out how to get in front of people more effectively? How do we improve our communications and follow up? How do we use better equipment for better diagnostics, more accuracy? All of these kinds of things.
Derick Van Ness: Anything in that realm is probably going to qualify for improving your service or your process. Right. Does it reduce technological uncertainty, really? Are you looking to get more consistent outcomes when you run a diagnostic or when you're trying to figure out what's going on with someone's car?
Derick Van Ness: Do you get the right answer more often? Right. Is it more certain? Almost everything you do is probably working that direction, especially in the shop. Is there a process of experimentation? In other words, is this new to your business? And this is a big misconception. People think it needs to be new to the world.
Derick Van Ness: It doesn't. It just needs to be new to your business, right? So if you're bringing in something new and is it technological in nature? Does it use engineering, computer science, biology, or physical science? You guys obviously have a ton of engineering and computer science that goes into a lot of what you do.
Derick Van Ness: So if you're buying new equipment, if you're trying new processes, if you're adding new software or creating custom software, there's probably credits on the table for you. And most shops we look at that's happening. Now, these credits, the more you make, the bigger they get. But I think it really starts to make sense to look at it if you're doing 500,000 of top line revenue, right, or gross revenue, and if you're paying more than $10,000 in taxes, you are probably big enough that these credits will add up to something.
Derick Van Ness: It's not that you can't do them if they're smaller, it's just not necessarily worth the work. Usually shops if they're less than two years open, they probably aren't big enough or making enough money. There are exceptions, so you could still qualify but usually it's for shops that are a little more established.
Derick Van Ness: 'cause usually the first year or two, you have a ton of write-offs. You didn't pay taxes, so there's no credits to get that money back for. Right. Couple quick examples of shops. We had a an MSO up in Minnesota. It was two brothers. They got about $171,000 when we did a three year look back in their RD refund.
Derick Van Ness: So ton of money, four shops, pretty awesome stuff. Another one in New Hampshire, they had a couple of auto shops. They got about $31,000, so about 10 grand a year. And then we had someone with a little, you know, a little bigger single shop in Oklahoma. He got $26,000. You know, so these guys are getting between 2030.
Derick Van Ness: Thousand dollars a year type of type of credits for a typical size shop. We do have some bigger shops, you know, 2 million plus that are getting a lot more than that per year. So the question I wanna ask you is, I mean, when we're looking at this, $25,000 a year for the first four or five strategies, 10 to $15,000 for r and d credits.
Derick Van Ness: Plus if you own the real estate. I mean, what would that kind of money every single year do for your life? Right? An extra 30, 40, $50,000 that you just don't have to give Uncle Sam, because you can write it off, right? You can use the tax code in your favor, and ultimately it's not how much you make.
Derick Van Ness: I hear people brag about this all the time. I mean, I have a client, he's in California. California is a high tax state as you know. He made 1,000,002, he paid nearly $600,000 in taxes, you know, and he wanted to complain about it like it was a badge of honor. It was terrible, right? Who wants to give $600,000 to Uncle Sam?
Derick Van Ness: So it's not about how much you make, it's about how much you keep, and that's the golden rule, right? How much gold do you get to keep? So. I think it's pretty clear that these could be worth $25,000 or more per year. And I'll be honest with you, especially if you make over $400,000 a year, there is a ton of stuff you can do.
Derick Van Ness: 'cause at that point you get into some pretty big tax brackets. So adding a little more complexity is totally worth it. But even for those of you who are newer in business, you know, this could easily be worth 20, 25, $30,000 a year, every single year for as long as you're in business. So. Those are the key things I wanted to cover today.
Derick Van Ness: 'cause we didn't want to go too long and maybe leave a few minutes for questions. But if you're curious to see how much have you been overpaying Because of our affiliation with the the institute and our relationship, we're willing to do a free three year tax review to explore what have you been overpaying.
Derick Van Ness: I'm not gonna tell you that we can go back and claim all that for you. There may be things like the RD credits like. Honestly, you know, if you've been in business for a while, we can still go back and claim 2021 and it's super clean for the next six months or so, and maybe help you get 10, 15, $20,000 back depending on the size of your shop.
Derick Van Ness: Depreciation is another one we can go back on. But the bigger thing for you is if you've been overpaying in the past, how do we help you to not overpay in the future? Right. Even if we start from here, forward 2025, and you can keep an extra 20, 30, 40, $50,000 a year, that's a ton of money. Where I come from that makes, I mean, they'll pay for your kids' college that'll pay for, I jokingly call it a government sponsored retirement plan, right?
Derick Van Ness: Because it's the tax loopholes, the tax opportunities they're giving you that you're using. To pay for your retirement. So all you gotta do is scan the QR code or you can see the link down here at the bottom. It's just big life financial.com/the-institute. You can just sign up there, you'll meet with myself or someone from my team.
Derick Van Ness: We'll gather your tax returns. We'll go through 'em with a fine tooth comb, and we'll give you an exact number of how much. And we actually do a range of high to low, like if you did everything or if you just did some things. How much is on the table? I think if you're overpaying, if you're paying 10 or $15,000 or more in taxes, it's definitely worth looking at, you know, so that's our gift to you is we'll do all the work for free, and if we can save you a bunch of money, great, you can take that.
Derick Van Ness: You can go to your existing tax person or you know, if you feel like you really want someone more proactive, we can talk about what that looks like. But I think it's important for you to know if you're massively overpaying taxes. I want you to keep a lot more of that money. It just makes such a huge difference over time if you can keep that much more money.
Jimmy Lea: This is huge. Derek, this is amazing and thank you for putting this up there. An offer to review the last three years. Everybody that's watching this. You need to scan the QR code, scan it now, scan it and get on Derek's calendar so that you can have this conversation. Now, Derek, here's a interesting question for you.
Jimmy Lea: I meet with a lot of shop owners Sure. And we talk about taxes, we talk about accountants, we talk about what's working for other shops around the country. And one of the interesting questions that I'm asked by a lot of shop owners is there a list of items. Statements, financial statements, concepts, ideas that I should have on a piece of paper that when I come to my tax advisor, they're able to advise me better because I'm listing out things that they might not think to ask.
Jimmy Lea: Is there a list of items that we can bring to a tax advisor?
Derick Van Ness: Yeah, so there, there are definitely a topic or topics that we cover all the time, right? Equipment's a huge one. So any equipment you have purchased or any equipment you're looking at, purchasing and making sure you're doing that optimally is a key one.
Derick Van Ness: Anything once you understand the RD credits that's related to new technology, new advancements. Different things you're bringing into your shop, being sure that you keep track of that along the way can be super, super proactive and really help to optimize those credits. And then anything else you're looking at investing in like real estate or buying additional shops.
Derick Van Ness: I know you guys work a lot with that. Planning those things out in advance because then you can optimize, Hey, we don't need to be paying so much in quarterlies 'cause we're gonna take, you know, we're gonna buy a bunch of equipment, we won't have any taxes due this year. We're gonna get those write offs.
Derick Van Ness: No reason to pay that into Uncle Sam and then have to wait a year to get it back. Right? Yeah. So just being aware of what's really happening. And I think in a perfect world, you wanna meet with your tax pro, I would say three to four times a year throughout the year, so that you can bring these questions up, they can help you to structure things and think about them and make informed decisions along the way.
Derick Van Ness: We don't have a specific, like we have. Forms that we use with our tax reviews and with our quarterly meetings, but we don't have a specific checklist of like, what should you be prepared to bring to your person? But I'm sure we could put something together.
Jimmy Lea: Yeah. And I'd love for us to put something together, Derek, because what is second nature to you?
Jimmy Lea: Seems to be. Groundbreaking to 95% of other businesses or other accountants or other bookkeepers. They don't understand that. And Shayla, there you go. There's the QR code again for you, so you can scan that and get on Derek's calendar. Yeah, Derek I think we ought to create something because Yeah, it's second nature to you.
Jimmy Lea: It's groundbreaking to everybody else. So I think we ought to come up with something and maybe that's our follow up email. We can send a list that people can bring to their accountants or tax advisors to start the conversation because they if I come to my CPA and I say, Hey, I want to take advantage of the Augusta rule, and they say.
Jimmy Lea: What's that?
Derick Van Ness: Right, right.
Jimmy Lea: Chances are you might not be talking to the right person.
Derick Van Ness: Well, and what I see that's more common, Jimmy, is you go to them and you're like, Hey, can we do this thing? And they're like, oh yeah, we can totally do that. And you're like, well, why haven't you been telling me? Right. I hear that all the time.
Derick Van Ness: 'cause we tell people strategies and they take it to their person. Their person's like, oh yeah, that'd be great. You should totally do that. And we're like, where's this guy been the last 10 years? And so, and then you start to wonder if they're missing this, what else are they missing? You know, that, that starts to really leak in and truly, you know, to defend CPAs and tax people, most of them have been trained to file taxes on time and accurately.
Derick Van Ness: It's not, yeah they're not trained when they get their CPA and when they go to school to save you taxes. They're trained to record accurately and on time. And so sometimes I think we're expecting too much of them. We think it's their job, but a lot of them don't think it's their job. So, you just, you have to kind of separate, Hey, strategy and recording are actually two different jobs.
Derick Van Ness: Some CPAs, some tax pros are proactive and are strategy driven. A lot of them are not, especially if they don't own their own business. And they're just like working at a firm. Yeah. They just they, you know this, you're a business owner. You think differently as a business owner than you do as an employee.
Derick Van Ness: So I'm not trying to bust on these guys. I'm just saying it doesn't serve you well as a business owner if you don't have somebody who understands this and is really looking out for you from an advice perspective, not just a recording perspective.
Jimmy Lea: So true. So true. Thank you, Derek. Any questions, comments, concerns from those who are listening to this live?
Jimmy Lea: Go ahead and put them into the chat. This will be available on YouTube. It'll be available on Facebook and on our website. We are the institute.com. Of course. You wanna get ahold of Derek VanNess? He is At Big Life. You're at big life financial.com.
Derick Van Ness: That's correct. Yep.
Jimmy Lea: Yep. So let's get in touch with him.
Jimmy Lea: I know a few shop owners that have worked with you and a few, I mean, quite a few that are working with you and have taken that up to that next level.
Derick Van Ness: Yep, yep. I mean, we've had a couple of shop owners who have saved six figures in taxes. Obviously they run pretty big shops and have good things going on, but the reality is the opportunities are there for people who are interested in it.
Derick Van Ness: For sure. And the more you make, the more you can save. 'cause they just, they get more expensive.
Jimmy Lea: Yeah. Yeah. No, that's awesome. And thank you Crystal. She, thanks for the information. Be reaching out. They have records. Nobody can really answer questions.
Jimmy Lea: Come to Derek Crystal. I think you'll be very happy with the information you get.
Jimmy Lea: I have yet to hear anybody who was not pleased. That's not true. I think they're upset. They're upset that they just barely got introduced to you. Where have you been for my last 10 years of business? That's the question they're asking because the strategies that you have and that you put into place with these shop owners is life changing.
Jimmy Lea: And I applaud you, and thank you for doing that. Thank you for working in the automotive industry. I'm so glad that we were able to recruit you away from anything chiropractic or doctors or whatever it is you were doing for that. You are in the automotive world. I'm glad that this is such a good fit for you, man.
Jimmy Lea: Thank you for being here. I really appreciate it.
Derick Van Ness: Me too. Loved working with shop owners and just appreciate the opportunity to share this stuff, jimmy.
Jimmy Lea: You're awesome. Well, thank you very much. Thank you everybody for joining. And make sure you connect with Derek. Get on his calendar, big life financial.com/the-institute.
Jimmy Lea: Get onto his calendar so we can get some things going here. And thank you to everybody watching live. Thank you very much. We'll see you again soon.
Derick Van Ness: Thanks, Jimmy.

Monday Apr 07, 2025
117 - Becoming a Champion in Communication with David Boyd
Monday Apr 07, 2025
Monday Apr 07, 2025
117 - Becoming a Champion in Communication with David Boyd
April 2nd, 2025 - 01:00:14
Show Summary:
Jimmy Lea welcomes David Boyd from Inbound to discuss how technology, communication flow, and consistent training shape the customer experience in auto repair shops. They explore how shop owners can use AI to streamline call reviews, build advisor confidence, and ensure consistent, high-quality interactions with customers. David shares the importance of shifting from rigid scripts to natural, process-driven call flows, and how shop owners can better define their expectations and measure performance. Together, they emphasize the power of call analysis, customer journey awareness, and daily coaching to drive shop success. The conversation wraps with a live demo of Inbound’s AI tool and thoughts on the future of AI in customer communication.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
David Boyd - Founder & CEO of Inbound
Episode Highlights:
[00:02:08] – David shares his passion for improving communication in the independent automotive repair industry.
[00:03:13] – Call flow should define expectations, build confidence, and lead to customer satisfaction.
[00:04:00] – The biggest challenge in call coaching is finding the right calls to review.
[00:05:48] – Using AI to pre-screen and identify meaningful calls saves time and improves coaching.
[00:07:06] – Scripting is outdated; teaching flow and natural conversation is more effective.
[00:09:12] – Advisors must be trained in communication and soft skills, especially with a younger workforce.
[00:14:05] – Calls must build trust and credibility within the first 15 to 30 seconds.
[00:18:43] – Every customer interaction is an opportunity to create a lifelong customer.
[00:26:06] – Normalizing call reviews improves team performance and builds comfort over time.
[00:51:01] – A live demo shows how Inbound’s tool identifies coachable and champion calls instantly.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=1kk2jVaCR8s
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Jimmy Lea: Welcome. Good morning, good afternoon, good evening or good night, depending on when and where you're joining us from today. Thank you very much. I'm excited to be here. David Boyd is coming into us from Minneapolis, Minnesota. Minneapolis, Minnesota.
David Boyd: That's correct. Minneapolis.
Jimmy Lea: Nice. Glad you're here. David, this is going to be awesome.
David Boyd: I am enjoying our fresh blanket of snow outside in Minneapolis. So for those of you, Cindy, I think you got a little bit up in Alaska. And, thanks for sending that down to Minnesota. But for the rest of you around the country that aren't familiar with snow, let me just tell you, it's, a real, sad event in April to have a fresh layer of snow hit the ground.
David Boyd: So, thank you, everybody, for joining today. Our our content is going to be very exciting, and I'm glad that we can share it. I've visited with Jamie before where we've talked about, communication and I of course, I'm in the communication industry. And with inbound we focus exclusively on the independent automotive repair industry. So I work with, many, many of your peers across the country, and we talk about, communication and the various aspects of communication to drive growth and, to drive training.
David Boyd: And so it's something I'm very passionate about. And I'm glad that, you're able to join us today. So we have a great line up for you today. We're going to talk about, how to get started with, you know, a communication plan. What is coaching and training look like? What is call reviewing look like? Some of you are likely doing that today.
David Boyd: And there are areas and opportunities to improve as you move down that path. We'll talk about a call flow. There's a, dirty word that we used to use in the industry called a script. And, I'd like to, you know, read rethink that terminology because it speaks to how we look at, the communication process.
David Boyd: I'm a process guy. I come from a background of process engineering and corporate America. So I look at things as process flow. And, we'll talk a little bit more about what that is, what is a call flow. And as we look at, creating this process and moving down the path of this process, we want to, define aspects and clarity, develop confidence for your team, and ultimately drive customer satisfaction.
Jimmy Lea: So, David, thank you for filling in. A couple of shout outs to, inbound from Todd. Todd says he loves inbound, so thank you very much, Todd. And, Ed chair is joining us from Las Vegas. Thank you, chair, for being here. The super awesome. Glad you're here. So David, to your point about call tracking and call scripts and call.
Jimmy Lea: I've listened to hundreds of thousands of phone calls. I can tell you right away why it is a phone call was not successful, why it did not connect, why it did not close a deal, it because of the thousands and thousands and thousands of phone calls that I've listened to. That's also the challenge. David. Finding the call. Right.
Jimmy Lea: So previous life coaching and training with sales skills and customer service skills at a at a former company. And we had to go in and find the calls. So if you rely on your person that you're coaching to send you the calls, it doesn't happen. Send me a good one. Send me a bad one. It generally those that are good for the coaching, that that want to succeed and want to progress, they're the ones that will send you the calls.
Jimmy Lea: Those are the ones that don't. They? I'm being forced to do this. I really don't want to do it. It's a totally different experience. And so I would love to talk to you about your program, because it is so cool what you have done in your process procedures, in your advancement, in your technology. Yeah, you're a nerd when it comes to this as well.
Jimmy Lea: And I say that nerd in a loving, kind and generous and respectful way that you are amazing. Thank you. You've done this work and this coding to get there. So the first thing I'd love to talk about is. Oh, and a quick shout out to Christopher Johnson, Southern Ontario. Christopher, thank you for being here. You're awesome. To the phone calls.
Jimmy Lea: Your system has an amazing method and an amazing way of finding those phone calls and identifying a closed deal, or a closed opportunity, or a missed opportunity. What does that look like? What are you doing?
David Boyd: We're really using technology and it's a great point. You you've touched on so many, parts that, every, every owner I talk with wants to do call reviews and training and coaching, but they also acknowledge that there's this heavy lift of time. It's always the time. And you talked about the scenario where the service advisor may send in the, call examples to the coach.
David Boyd: Well, if they do it, you know, they, they may be softballs. Right? So, they're going to self-select something that isn't that bad. And we miss that opportunity. So assuming that we understand what we're trying to accomplish in the coaching process, and I do want to make sure that we cover that as well. We want to make sure that we have the ability to very quickly get to effectively, you know, pre-qualified, meaningful calls for this coaching review process, something that, has evaluated the call.
David Boyd: We use technology. Now AI is everywhere, right? So how we utilize AI to evaluate key performance indicators in a call to evaluate key insights. I can be used in a positive light to help us reduce that heavy lift of time required to listen to call after call after call, and very quickly get to something that would be effectively prescreened or pre-qualified to benefit our call coaching and review process with the service advisor.
Jimmy Lea: What? So no question for you in that process. And I love the AI is involved in this. It is a when it comes to a script, I've always thought that you should memorize the script and then couple it up and throw it away. You don't want to sound robotic. You don't want to sound like you're reading a novel or, write a script to somebody nobody wants to be read to.
Jimmy Lea: But let's have a conversation. Can the AI, can your software can your program identify? Is the service advisor following the pattern that we've established?
David Boyd: Yeah. And you've in that statement you've asked two questions there. One is are we doing a script anymore. And at the, at the risk of, of upsetting maybe people that are holding tight to their script. I'm sorry in advance. Scripting is, I think, a little bit antiquated, where we really want to train to the flow so that it isn't robotic and it doesn't become this.
David Boyd: I need to, you know, did it, did it, and go step by step through this process. The, the flow of the call now becomes, really the important aspect of what we want to evaluate. So and I like that that was that flow and understand what is the context of the conversation. And that's now where, the tools and technology can help us.
David Boyd: They're very powerful in this regard because that, that is much like having a person sit on the call. Yeah. And listen to it and review it from that standpoint instead of, was this word spoken in this order in this sequence that's can still be evaluated. We may want to hit those key performance indicators, but it needs to be a little bit more natural.
David Boyd: So we want to identify who I am and who the customer is called. We want to know who they are and how did they hear about us. And we want to go through this flow, but it can be very much conversational. You and I can just sit down and have a conversation. I can get to know you. Now we're developing a relationship, right?
David Boyd: And we're communicating rather than me going through the checklist of how I check these aspects off of my script.
Jimmy Lea: Yes. And I think a lot of the, service advisors that you are analyzing or the that are part of your program have gone through an extensive phone training program so that they now know the flow of what to do. There's an entire generation now that would rather text than talk, right? I think there's an entire generation that has lost the soft skills of how to answer the phone properly, how to greet a customer, how to acknowledge.
Jimmy Lea: And so, I agree with you. It's the flow. Let's back up a couple steps. We've got to teach a script first for you to follow, and then crumpled up, throw it away and now you've got the flow. Now it's just bullet points, and you're able to do it because you know the right words to say in the right order to say them.
Jimmy Lea: But it's not scripted. It's now conversation.
David Boyd: Yes. And even prior to this, it starts with the owner's expectation. So does the owner have a clear understanding, an idea of what they want to accomplish and call handling? Who are they hiring to be in the front office and represent the face of that business to the customer? Assuming that somebody is calling and and overwhelmingly, people are still calling today, they may text at some point in the interaction, but they are absolutely calling.
David Boyd: And the people that we hire and have on the front counter now, we need to understand emotionally, which is funny to talk about in this context, but emotionally, where are they coming from? Do they even do they even feel comfortable talking on the phone? Right. So if I hire a younger service advisor, as you mentioned, they may be coming from an upbringing that doesn't have this type of, interaction.
David Boyd: So thinking through a conversation may not be natural. So that might be part of our training. The owners need to understand and acknowledge that's the case. Do I need to go out and get some third party help to help with this? This is something that we're going to do ourselves. Ultimately, we still have to have that basis of understanding.
David Boyd: What do I want to accomplish as the owner? And then, here are the things that I want covered the script, as you say. And here's how we want this to go. Well, we'll talk to this, will train to this so that we have a core understanding. Now, this is going to go away. And we're going to talk about communication, and, and personal interaction.
David Boyd: That's where we get into the call flow that it does become a logical progression. It starts with the owner. And of course, if they don't have a, sense or concept of what call training can be and should be, there are plenty of helpers out there, like contact Jimmy at the Institute. You got a camera over there just to touch.
Jimmy Lea: Right.
David Boyd: And, you know, I work very, very closely with. Yeah. Make the noise as well to go with it. Gotta get Mark and the crew, that do a lot of call coaching with the Institute. Just fantastic. So getting the business process nailed down is a core, competency for the owner to have as well.
Jimmy Lea: Oh, it is 100%, because there's a lot of people that can't talk on the phone or. And here's where I discover those that can't talk on the phone. Oh, can't. Wrong word. Those who are intimidated by the phone. It generally comes down to two things. One is training. Have they been trained that phone is the most powerful tool in the shop.
Jimmy Lea: It's more powerful than the air gun, more powerful than the the lift in the back, more powerful than the engine hoist. It is what determines if the vehicle comes into the shop or not. So the most powerful tool is the phone. Are you certified to operate that phone? Most people that are intimidated haven't been trained, so they don't understand the basics of what needs to be done there, and that's where they need training.
Jimmy Lea: The institute can definitely step in. Mark Seawell, phenomenal program for the APG. The advisor performance group. We call that the APG phenomenal program. The advisors that graduate from this program are, by far the best in the industry. So that being said, the second reason somebody is not confident on the phone goes into their mindset. And it could be that their self-esteem, their self-confidence, they've been just hammered so much with the no, no, no, the negative, the slammed phones, the yelling, the screaming.
Jimmy Lea: Their mindset isn't right. Well, that's a whole other course on a different subject, you probably can't test for mindset with inbound communications.
David Boyd: Kenya mindset is is not something that we can test, but we can look at other aspects of the call because that's really our ability to overcome objections. Yeah. And we can evaluate that. And if somebody has a tendency to cower back when an objection is met, right. They may not know how to overcome an objection. So this becomes a turning point.
David Boyd: And these are the parts that we learn as we as we, you know, have consistency in our review process over time. What is the capacity of my service advisor to handle calls for them to recognize where they're at in the conversation, to control that conversation, have ownership use their own sales skills, and we can develop sales skills.
David Boyd: We can teach how to overcome objections. And these are key components that help us make sure that, you know, we are understanding the customer because, I mean, when we think back, there's the cliche, right? When a customer calls the shop and they don't know what to ask, what are they going to ask? How much?
Jimmy Lea: How much is it?
David Boyd: How much is it? Right. And how many times to service advisors hear that? Well, if we change this mindset just by a simple understanding that that only means that my customer needs to be educated, right? So now that's my job. I'm an advisor, I will advise, so let me understand more. Why do you think you need XYZ. And we're going to we're going to flow into this conversation.
David Boyd: I'm going to take ownership of this of this call. I'm going to ask open ended questions. I'm going to overcome these objections. And ultimately I'm going to get them to agree to come in and, visit with my ask certified technician. And we're going to take care of them. So we're going to build this confidence. We're going to develop this relationship.
David Boyd: All of these things can happen, you know, in fact, they should be happening to establish credibility within maybe the first 15 to 30s of this call. Right. We want to make sure that we're controlling this or we're not going to go down this other path. Right. The other problem that we see and we can test for and call analysis is things like diagnosing over the phone.
David Boyd: That's a whole separate webinar. Right. So let's maybe not go down that path today and, we can have Mark join us for that one.
Jimmy Lea: Sure. For sure. Yeah. There's just so many stories coming up in my mind as you talk about these, service advisor skills in the questions that can be asked or should be asked, my brother called up the shop and said, hey, I want all new shocks and struts. Sure. We got you booked in today at 2:00. Come on down.
Jimmy Lea: That that that that one simple question. What makes you think you need new shocks and struts? Because my brother left the shop, went around the block, came back in and said, you didn't fix my car. Yeah. We replace all the new shocks and stress. There's four of them. They're brand new. Come here. We'll show you what's going on.
Jimmy Lea: What's wrong? Well, the. It shakes. The whole truck is shaking as I'm driving down the street. Oh. Let's go look at your tires. You needed all new tires. You had a big old bubble on one of his tires. Simple question. Would have avoided that. Whose fault is that? Is it my brother's for saying, hey, I want new shocks.
Jimmy Lea: It struts. Or is it the service advisor who should have taken the position of professional authority and say, what makes you think you need new shocks and struts? I'd be happy to do it right. How come? Why?
David Boyd: Yeah. So the mindset and the mindset shift now is I'm not an order taker on the front counter. Right? I mean he's not going to call and just order a set of shot and shocks and struts from me. They're going to order, you know, a competent review and inspection of their vehicle. So my job then is to get them to gain, you know, agreement that this is how this how this works, right?
David Boyd: We are a professional organization or skilled and qualified, competent in what we do. And I'm going to build your trust. Mr.. And Mrs., car owner, and we're going to come in and work together on this, and I'm going to keep you informed and advised every step of the way. So these are the trust components that are important when we're looking at, call reviews and training.
David Boyd: Are we, you know, identifying, who we are that we're, you know, a trusted organization. How do we establish our credibility right off the bat? Where are we building brand value throughout the course of our conversation? And a conversation may be 90s. It could. I mean, it could be several minutes, but it's not like we're having this very long dialog.
David Boyd: We're not speaking for 15 or 20 minutes on the phone. These are relatively short conversation. So this is a, a, trainable, teachable skill. Some people are more capable to do this naturally, and some, everybody can do it. I think we need to all acknowledge that that, for somebody who says I just I'm not good at that.
David Boyd: I don't I don't buy that because there are plenty of things that I thought I wasn't good at in my life that I recognize. Looking back, I now I'm very good at those things. And it really has to do with, again, what's the expectation, what tools and training do I have available as an advisor to develop these skills required to meet and satisfy or even exceed the owner's expectation?
David Boyd: And then we all share the need to share the understanding that it is really about the customer. So at the end of the day, the experience of our customer is paramount. And, the if I'm talking with somebody for the first time this now we're setting the tone of our relationship literally forever. So the likelihood of them coming back depends on, you know, this first 15 to 30s of the very first time they ever call our shop, what are we doing in that period of time?
David Boyd: How are we? Establishing our credibility, building confidence in our brand?
Jimmy Lea: Oh, I love that. And, you know, when they do call in to the shop, you've got to take that full customer journey experience coming in that the time that they actually call into the shop is the second opportunity you have to make that first impression. And I say that because they have looked at your website, they've looked at your social media, they've done some research about you before they call you.
Jimmy Lea: Now that they call you, they want to confirm is my research correct and my calling the right shop? Do you guys actually know what you're talking about? So that customer journey becomes very powerful in communicating with those customers.
David Boyd: I love that that I think I, I'm familiar with the term customer journey. I don't know how much we talk about that as an industry. I think we're I'm hearing it more, but I think that's an important part of our dialog. As successful high performing shop owners. Yes. And operators within the industry is do we understand the customer journey.
David Boyd: So this call process is part of the customer journey. And I love that that picture you paint to that it is the that phone call. The first phone call is the second impression. We're making the second opportunity to make a good first impression. Because it does come down to, the search that they've done or the referral that they heard from their neighbor or the, the reviews that they've read out on, on the website or, and other sources.
David Boyd: So it's a, it's a valuable, understanding that feeds nicely into this call handling process.
Jimmy Lea: Oh, it does, it does. And, and luckily, unluckily, okay. So to our ability to analyze the customer journey, you may you, as a shop owner may want to talk to your neighbors and, and recruit them as secret shoppers that you're going to comp their oil service, but you're looking for their customer experience. You want to know from them as a secret shopper what's their customer journey.
Jimmy Lea: And we as shop owners, we need to do this often to look at our full experience. Is it easy for somebody to book an appointment with us? Is it easy for them to call in on the phone? Is our phone easily identifiable? Does it ring one, two, three and we answer it? What is the customer journey? And to that point the customer journey?
Jimmy Lea: Is it consistent? Is everybody having that same experience as they're coming through?
David Boyd: This is good. And consistency is driven for the customer experience and our, our internal, process. Right. Do we have consistency in everything that we do with does every vehicle receive a complete inspection. And do we estimate, the entire inspection? Are we presenting all of this, all of those? We learn about consistency. That ties back to the phone as well, because I'll tell you, it's super easy to be distracted by something when I answer the phone.
David Boyd: Oh, we got I've got a technician that is chewing me out because of I don't know what reason right now. And I go answer the phone and I'm angry and they can hear it and it comes across a little bit of like, yeah, what?
Jimmy Lea: Yeah.
David Boyd: Oh. Okay. I need some help.
Jimmy Lea: You breath first, buddy. Deep breath.
David Boyd: That's exactly it. And that's what I talk about, like, okay, no matter what's going on around me, no matter what noise is happening or, how busy I am, it's always that moment of pause before I answer the phone. I'm going to take that breath. I'm going to, you know, collect my thoughts, regroup, and then I'll answer the phone and I'll the I'll let them hear me smile, because when I'm physically smiling, it sounds different.
David Boyd: It sounds better. Right? And when I'm, you know, I'm when I'm tensed up like this because I'm angry and I just whatever had, some interaction, believe it or not, that's easily detectable on the other side of the phone.
Jimmy Lea: It is important.
David Boyd: Parts.
Jimmy Lea: It is absolutely. And even a fake smile is better than a real frown. Right? You can hear it. Every service advisor class that I've taught, every, phone skills course that I've taught over the last 15 years. One of my questions is, can you tell when a customer is multitasking? Oh, yeah. Totally. Can you tell if their feet are up on the desk, if they're reclined in their chair?
Jimmy Lea: Oh, yeah. Totally. Yeah. Me too. And guess what? They can hear the same thing about you, right? Are you multitasking? Are you distracted? Are you being lax a days ago? Do they have your full attention? Yes or no? So not only does this phone skills help on the phone and the front counter, it also helps in communication in life.
David Boyd: Right? It does the way that we interact with one another. It's it's very important. Am I distracted and am I sitting here trying to have a conversation with my kids while tapping away on my phone? Right. Because that leaves an impression on the recipient. And, it's so it's so true in every aspect of communication through our lives.
David Boyd: And, you know, I, I spend a lot of time. Thanks for bringing that point up to me. But I spend a lot of time thinking about how we, handle calls and manage communication in the front office. It's easy to lose sight that it does apply to every aspect of our life. And setting the phone down, making this connection here some eye contact.
David Boyd: I'm going to smile. I'm happy to see you. I'm enthusiastic about being able to talk with you today. Jimmy, I'm going to use your name. Not too frequently, but I'll use your name, Jimmy, because you're worth it, right? You have my undivided attention, and this becomes important. When we talk about technology and call reviews, it, it's important to have the process and expectation established to go through this consistently, so that we don't develop complacency and then, manage the make this normal.
David Boyd: Right. So we want to make our, review of communication. And the review process is always backward looking. We don't want to spend too much time looking in the rearview mirror, but we want to know what's been on the road behind us so that we can, make better decisions about how we're going to navigate going forward.
David Boyd: So if we do this consistently now, it becomes a familiar process. We can sit down and do it very quickly, and we have to, have the ability to, you know, quickly get to a call, that isn't in in a lot of cases. You know this very well. It it happens more frequently, probably than it ought to.
David Boyd: But in the shop, the only calls that are reviewed, so to speak, are where something's gone really wrong. Yeah, right. And now we have a problem. And this becomes an uncomfortable experience. It doesn't feel normal. So we want to normalize the the review process. The other part of this too, is boy listening to myself in a recording.
David Boyd: Man, that sounds funny. It really does. It's uncomfortable for the first half a dozen times, and then it becomes normal. But if I if I listen to myself in a call and then it's six months before that happens again, now I'm right back to the beginning where it sounds unusual. It's not normal. So we want to drive consistency around this.
David Boyd: And consistency is important for you as an owner to determine what is that? I'd like to see something done weekly. If we can spend ten minutes a week on this, I'll tell you what. Your performance on the phone is going to go to the moon.
Jimmy Lea: Oh, and daily, let's do it daily.
David Boyd: Why not?
Jimmy Lea: Quick, quick phone call. And this goes to providing feedback. How can in let's back up a little bit. My mind is getting a little bit further ahead of the conversation. My mouth is just wanting to be there with it. The mind. If you're not having weekly company meetings or daily company meetings, you're having company beatings. And what that means is there's a problem.
Jimmy Lea: Let's talk about it right. If it's a consistent company meeting and you always have the agenda and you follow the agenda and you play a good call, you play a call that needs attention. Even the good calls can be improved. But playing that for the entire team allows them to hear it, see it, feel it, imagine it, and it becomes easier for them to then duplicate it and do it again.
Jimmy Lea: And when you're asking for feedback on how can we make this our best call from yesterday, how can we make this best call from yesterday? Even better today when it happens to play that call, everybody listens. They give their feedback and it goes on. So what, how can you. And maybe I just answered my own question.
Jimmy Lea: How can you start reviewing calls and turning that feedback into improvement? Well, you got to be consistent with it.
David Boyd: It is definitely about consistency and the ability to to get to those calls quickly. Again, I keep I feel like I'm saying the same thing and I apologize for that. But, the heavy lift of time, if we remove that barrier now, this becomes natural. It becomes easy to do and becomes fun and engaging. So how can I quickly get to those calls?
David Boyd: Because my only other option historically really has been listening to call after call after call after call until I find something that's reviewable. Right.
Jimmy Lea: I've done that. So your software identifies that these are the, angry customers. These are the missed opportunities. These are the top performers.
David Boyd: All of these things. So it will review the call and transcribe it so you can read it like a text message. You can look at a an AI generated summary, evaluate the key performance indicators that are important to you. And then we, you know, take additional, steps like having the AI determine is this is this a lead?
David Boyd: Basically, are we talking to a customer? Right. Because the other funny thing about, call recordings is, everybody calls the shop, including our parts suppliers and vendors and distributors and, you know, the, the various, dealerships and all of this stuff, those, when we start to introduce technology, those can look like bad calls because, you know, we tend to answer with the parts guy down the road in a very familiar way.
David Boyd: Hey, what's up, man? That kind of thing. Well, now, right off the bat, this is going to but this isn't a reviewable call. So we want to know that this is a customer interaction. We want to know is this an appointment setting conversation or is this a status check. Let's talk about that. Is check just for a second.
David Boyd: Right. When a customer calls us at 2 or 3:00 in the afternoon and says, hey, what's the status of my vehicle? And they might use those exact words.
Jimmy Lea: Well, you dropped it off at lunch.
David Boyd: Yeah, yeah. Or they dropped it off at seven in the morning or the night before.
Jimmy Lea: And that's true that that's a different scenario. Certainly somebody should have called early in the morning and followed up with them. But let's say they didn't. And now it's 2:00. The customer's doing the heavy lifting. That shouldn't be the experience, but that's training for a different day. Yep. To that phone call 2 p.m. in the afternoon. Hey, what's the status on my vehicle, David?
David Boyd: Well, yeah, let's check on you. I mean, we're going to go down this path right? And I'm like, oh, let me look up and see. And we want to know how well that that call is handled. I, I agree with you. I think that, that I didn't mean to get us off track on, on a status call because that's probably a webinar by itself.
Jimmy Lea: But yeah, it is, but that's okay, David, let's go down there.
David Boyd: So, do we have an expectation to, get in front of that for the customer? Really, no matter what time, they have dropped their vehicle off, did we establish an expectation on when they're going to hear from us, and then how they're going to hear from us? How are they prefer hearing from us? That could be a text message.
David Boyd: It could be a phone call, whatever that happens to be. But whenever, whenever a customer calls and they're looking for a status check, I shouldn't say whenever the majority of the time from what the types of calls I ever hear and see. This is a this is a defect. I'll use that word. It it's an error.
David Boyd: We've let somebody down. So now we have to backpedal. And I got to go look up the status of this vehicle. I got to go and ask the technician who's still working on this. Where are we? I haven't done that pre-work that might take 90s, but I haven't done that and then proactively communicated to the customer.
David Boyd: So now they're calling the shop. What's the status of my vehicle? And I see that usually happening about 3:00. They're beginning to mentally kind of shut down for the day. You're thinking about I'm going to check out from work here shortly. Do I need to go get my car? What do I need to do for taking the kids to practice tonight?
David Boyd: They're asking, an innocent enough question, but we've created some customer disappointment in that process.
Jimmy Lea: Yeah. No. It's true. Yeah. You have. And hopefully somebody is taking care of that earlier in the day. But those are coachable.
David Boyd: Calls coachable calls. Exactly. So then we can go pick them up. Is this the status call. Is are we using words or terminology. You know the nice thing about technology, because we're transcribing calls, we can identify if a word was spoken.
Jimmy Lea: Yeah.
David Boyd:
And, and I have, I have a customer that it was, feeling plagued by, service advisors that were using the word unfortunately.
Jimmy Lea: Ooh. Okay. Tell me more about the story.
David Boyd: We want to use. We want to know when that happens so that we can coach an alternative option. Right. Is it really unfortunate for the customer? Unfortunately, I can't get you in today. Or fortunately, I can get you in, next Tuesday at 10 a.m.. Is it unfortunate that it's going to be a $1,300 repair or. Fortunately, we found this now, right.
David Boyd: How do we frame that up? And where are we using, terms that could be off putting to the customer. That makes them defensive. So this was the my customer's mindset. I don't want to hear that word, unfortunately out of my service providers mouth. So we said, well, we're going to analyze the calls. We're going to find out when your service advisor speaks that one word, which is easy enough for the technology to pick up.
David Boyd: But then I'm also going to send you an email with that transcription and the audio file that you can listen to within moments of that call, and now have an immediate coaching opportunity. So and then you see that change in behavior almost immediately. The other thing that if I can talk about this just for a second to me, is when we do this consistently and we know that the review process is happening and this is normal.
David Boyd: Yes, in the shop it's normal for the service advisors. The next time they pick up the phone there, they have this conscious awareness. This might be the next call that we're reviewing. Well, what happens when I feel like somebody is watching me? I'm going up to the next level. So I, I'm driving accountability of performance. Right. We establish the expectation.
David Boyd: We do this review process. We do it consistently. We understand what the outcome is going to be. And now we're driving the accountability through, you know, improved behavior. They are aware that this is happening. And, you know, it's not like they're operating in fear. I don't mean to confuse what we're talking about here, but there's an awareness, right?
David Boyd: And where there's awareness, we understand that things are being measured. When something's measured, it's improved.
Jimmy Lea: Yeah, 100%, 100%. And you remind me of a story that I just barely heard up at 80 and in Seattle, Washington. Katie, service advisor for a shop up in Washington is in the APG program. The advisor, advisor performance group, a PG program. And her complaint was, I'm selling everything. So nobody there's no objections to overcome.
Jimmy Lea: Everything is being sold.
Jimmy Lea: Interesting feedback. Thank you very much. Interesting complaint. I don't take that as a complaint though. Congratulations. That is awesome. Awesome for Katie that she's operating at a level with her coaching and training. And she's got that feedback. To your point, the sooner the quicker you can come to an advisor with feedback that change will happen faster. If this is a call from last week, forget about it.
Jimmy Lea: This is a call from last month. Forget about it. Old news.
David Boyd: Right?
Jimmy Lea: Old news. Even yesterday. It's going to be a little bit old. Yeah, it's better than last week or the last month, but yesterday, is good. Hey, here's a call from this morning.
David Boyd: So. Yeah, it's going to be great. Yeah.
Jimmy Lea: Yeah. You're using this word. Unfortunately, we talked about using the word fortunately instead of the opposite. A word for me. And I'm wondering if you hear this on the phone calls as well is the word just, just as a weak word. I'm just calling to follow up with you. I'm just. It's just going to call you.
Jimmy Lea: Yeah. Just checking in. So the word just justified can justify. It's a weak position to take as opposed to. I'm calling you back about your vehicle. I'm calling to tell you we can get you back safe on the road, and it's going to be $1,300. That's the other thing I hear a lot from service Advisors is that they're selling from their own pocket book, right?
Jimmy Lea: Their own wallet, their own bank account. Don't do that. Don't do that. You are an advocate for the vehicle. The car right now is telling you, I need $1,300 worth of work. I need $2,500 worth of work. You as a service advisor are the advocate for the vehicle, right? And it's your job to be able to explain to the customer what your vehicle needs.
David Boyd: It's a mindset, a mind shift. Again, this comes through training because I, I might think that $1,300 is a lot of money or too much money. So if I frame my presentation to the customer for my personal financial perspective, that can influence how I present that to the customer. Yeah. I'm like, I'm sorry, it's going to be 1300.
David Boyd: You know, it's not the it's not the professional, mindset that we want to have. Even if I feel like that $1,300 is a lot of money, I can still come from the mindset or the perspective that my customer and I share the same objective. My belief is that they want to keep their vehicle and they want to be safe.
David Boyd: Yes, I understand what they're doing with their vehicle. Is that a commuter? Is it the, you know, is it the proverbial grocery getter or am I taking the kids to practice on, on Saturday morning? What am I doing with this vehicle? And do I do I understand do I believe as the service advisor that, it's my job to inform my customer and share their interest to be safe and have a reliable vehicle?
David Boyd: Reliability and safety are the top two things that most customers will tell you as important about their car and if they're going to if they just want it fixed so they can sell it, and they'll tell you that. Right? So, that doesn't happen very often though. But I think that's kind of the.
Jimmy Lea: Oh, David. David. David. It happens more often than you want to admit. I'm sure this car has been for sale for three years. I just want you to do the minimum. It's. I'm going to sell it next month.
David Boyd: Next month? Right. But I still want it to be reliable and safe in the meantime.
Jimmy Lea: Yeah, and that's what that's where advisors need that coaching and training to be able to overcome the objections and be able to talk to the client. Customer, help them to understand that, yes, I understand what you want, but it's not safe if this is my own vehicle, if this was my mother's vehicle or my father's vehicle or my daughter's vehicle, no, absolutely.
Jimmy Lea: This needs to be fixed and repaired today. It's really it's not safe. Right.
David Boyd: And if there are things that are going to be do soon like they're, they're invocations. Right. What are those. Yeah. I'd be it'd be best to do that all today. We're already in here working on this. Right. And however that is presented. How but we may need to be, you know, earn our keep as an advisor and put this plan in place.
David Boyd: So in three months, we're going to do this and, that, I mean, that's, that's getting kind of far in the weeds here because a lot of times this is much better suited for, the advisor, the sales training part of this, the AP GM program, does such a good job. And training. How to do this really super effectively and, making sure that, you know, we understand and we're following up with the customer if they ever have decline services.
David Boyd: So what does it come all down to though, Jimmy. It's really it's it all comes down to the customer experience isn't it.
Jimmy Lea: Yeah, absolutely. What is that customer experience.
David Boyd: Yeah. Yeah. The customer experience is paramount from the, from the time that they're, looking at, at our website or they hear about us from their neighbor, maybe they have a, you know, a, referral card with a discount in their hand. Something of the sort. Yeah. Now they're going to call, they're going to begin checking us out.
David Boyd: And, I've, I've seen, you know, the, the, the journey that we talked about earlier in our session here, the customer journey, suggests that as we get to the fourth and fifth visit, now, we, we have brand champions and people that are they're loyal to us. We develop loyalty. But that loyalty that dates all the way back to that first phone call and the first the first information they've ever heard about us, really their first experience.
David Boyd: So every customer interaction is an opportunity to create a lifelong customer. Owner spent a lot of time generating, customers to come in the front door. And we know that there are, you know, the back door is pretty big on some shops. Hopefully the owners know what's going out their back door as well. So if we invest in the, the, the, call review time, if we invest in the process and the training for the service advisors, that back door now begins to swing a little bit more closed and a little bit more closed.
David Boyd: And it's because the customer experience has been elevated. They really trust and believe that, you know, you know, no matter who I talk with here, maybe you have 2 or 3 advisors at your shop and you're not going to talk to the same. The customer won't talk to the same person every time. Do I have a vastly different experience depending on who I talk with?
David Boyd: This is important to know. So, training and coaching and call analysis and review, in my humble opinion, is best done when we're looking at everybody. And sometimes it's necessary to, you know, take the new person and bring them up to a certain point. But then are we are we consistent internally in our dialog and our conversations, looking at everybody's calls and, addressing those?
Jimmy Lea: I totally agree, totally agree. I'll give you my mother's advice when it comes to that sort of coaching and training is that we praise in public and we reprimand in private, or we instruct in private, or we provide that feedback in private, because you don't want to embarrass somebody in the in front of everybody. Those public meetings.
David Boyd: Not this is important for, the, the process areas that I help owners with because, a lot of times we're looking for bad calls, and it doesn't have to be. There's just be bad calls. Right? I, this is where, sometimes, an owner will tell me, I can't listen to calls because I'll choke them.
David Boyd: Well, whether they will or won't, I don't know, but, the whole point in all of that is, if I, you know, as a, as the shop owner, if I listen to my service advisor's calls and they do something that's upsetting to me, how am I going to respond to that? I have an emotional response to that.
David Boyd: Yeah. So it speaks to the, the normalcy. Right. Is it normal for the owner to review calls and listen to calls? But are we also reviewing good calls? Right. Can I listen to and can I identify what has gone well in a phone call? Right. It was, you know, efficient. It was effective. We made good use of the customer's time.
David Boyd: We got an appointment set. We didn't diagnose over the phone. We did all of these things well, and we're going to listen to that and identify. This was a good call. You did a great job on this one, boy. If you know, especially when we're doing this, as a, as a group or a team effort, when we listen to good calls together, now we know what good sounds like.
David Boyd: Yep. And then separately, we can go and listen to a I. There may be times where you do want to listen to something that didn't go quite so well, but I want to be very careful now about how do I correct somebody on this. Right. If I, if I talk to the group, versus Jimmy, I've talked with you about this before.
David Boyd: I, you know, and I start to listen to you now. Now we're reprimanding publicly and that can be very, very damaging for employee morale and the culture in the shop. So I agree with you 100% praise publicly. And you know, correct privately. And there are there are times and certainly we want to make a habit of evaluating when things go well and, you know, giving the, the, the fist bumps and the high fives for doing so.
Jimmy Lea: I love it, I love it. In fact, let's ask our audience, how many of you guys are doing weekly meetings, daily meetings, monthly meetings. How often are you having quick meetings, stand up meetings with your service advisors, your technicians? How often are you having these meetings to provide feedback on phone calls? How many of you are listening to phone calls?
Jimmy Lea: I'd love to hear that as well. So go ahead and put those into the comments, because, David. Yeah, if we are not having those morning huddles, if we're not having those quick stand up meetings, it's a public meeting because it only gets addressed when it's a problem. Oh yeah. Look there Bill is weekly. Cindy is morning huddles and weekly meetings.
Jimmy Lea: Very nice. And Bill and Cindy for your phone calls. Phone call reviews. Is that also a weekly event? Is that a daily event? Is that only as needed? Cindy says she's listening now.
David Boyd: Now and then and then. Yeah. Thanks for your, like.
Jimmy Lea: I'm only tasking. I'm listening to this webinar, but I'm, I'm checking all these phone calls as well, and. Yeah, now and then Mike's.
David Boyd: Mike's point is, that that's a key takeaway, that, it's important to acknowledge that we never want to lose the, the intent. So, And good job, Bill. The intent is super important. So as an owner, you can begin to skirt yourself by saying, I've told myself, I want to do this more for three years now, and I forget that I'm going to give up on it.
David Boyd: So, point well taken. It it it's if you want to do it more, great. Maintain that and then do it more. And if you don't, because something, you know, busyness gets in the way, maintain the intent to do that and pursue that, pursue the intent, because it will, will, elevate your service advisors and elevate your customer experience.
Jimmy Lea: Oh, and I love it. And you see Cindy's comment as well. They've got a new person. And with that new person, they're doing more phone reviews than they previously do. Why? Because you've got a new person. You want to make sure that they're part of the company the culture, the process, the procedure, the look, the feel, the customer journey experience.
Jimmy Lea: They want to make sure that that resonates. Yes, with the new people.
David Boyd: So I'll go back to the, the process part of this. Right. So the, the owner's expectation, for the owners and thanks for the, the real time feedback from those that have, you know, voiced their perspectives. If you don't have a clear understanding yourself of what you're wanting to accomplish, just take a little bit of time and do that talk with your coach.
David Boyd: You know, the service advisors can get involved in the coaching and training program, but I know, certainly a number of the people, live with us here now are also part of coaching. So talk with your coach and help define what that expectation can be and should be because, there, there are, good, healthy ways to define as the owner, what do I really want to accomplish in this phone call?
Jimmy Lea: Yeah. Oh, for sure. And to that point here, Cindy is saying, hey, you know, I'm super interested in this, I programing. How will that, I well, Cindy, I think it is and save you a ton of time.
David Boyd: Right. It's it does save a ton of time and, I don't I don't know that that we want to. I mean, I'd be happy to just show real quick and give a, quick overview of what it what it looks like. Yeah. Right. I would say, you know, I'm happy to talk with anybody, whether you're an inbound customer or not.
David Boyd: I can talk with you about what? What the tools can help you accomplish and how you can quickly get to the review process. And, what we have is, is our insights platform. And I have this set up based on some real data here. We're looking at a, at a subset of calls. And, I think Stu will be able to flash this up on the screen here, but.
Jimmy Lea: Michael, Michael, I'm sorry. Michael. Michael, pull up the screen here, Bubba. So you've click it and, we're going to be able to see, your live screen. This is your probably your demo account I'm guessing.
David Boyd: Yeah. So it's based on real data. But it's so we have, you know, we have the ability to look at a subset if you're a multi shop owner, we can look at a subset of locations and we can filter in on a specific service advisor. We have different scorecards that we can use. But what I want to really help illustrate to Cindy's question point here is, you know, I have a subset of calls, this is actually filtered down for leads.
David Boyd: Like I know that these are customer interactions. And the appointment was not set. So the appointment set is false. I want to identify calls where we didn't set the appointment, but this was a customer interaction. So I have set up calls where things went well except we didn't set an appointment. And then I have defined coachable calls, but I can look at a summary on this and figure out, you know what?
David Boyd: And just like, very quickly, what, is going on with this call, I can look at a transcription of this call. I can if the funny thing is I can read through a transcription very quickly. Yeah. That's super helpful. And then if I want to, I can drill into the, the call in more detail. And this gives me an interesting perspective to not only telling me about the, you know, the length of the call, but who's talking.
David Boyd: And when this we were talking a little bit before about, you know, ownership and control, these are some leading indicators about who is in control of the conversation of, you know, if the customer is talking two thirds of the time, we might want to question, really who is in charge of this conversation. So just wanted to give you a, you know, a quick peek.
David Boyd: But the whole idea here is that I can quickly drill in for a particular service advisor, or maybe one location that I'm working with if you're an MSL and then, filter down based on certain criteria, I want to evaluate, if I, if I just want to look at if these are leads, these are all of the lead calls, whether an appointment was set or not.
Jimmy Lea: And, seven days. This is looking at seven days, 200 and.
David Boyd: 60 days worth of data here. So I have 216 calls to look at which is way too many. Right? I can't get 216 calls over here. I see a gross conversion of the customer interactions of 70% conversion. So 70% of these 215 calls, we had, an agreement to buy or an appointment set. And then I can go down into here and identify there is a subset of five each.
David Boyd: So five champion and five coachable calls that I can very quickly go to. These are prescreened qualified. I have all of the key performance indicators here that I know that's super small on your screen, but you know, was this an existing customer? Did we take ownership? Did we leverage our sales skills, build brand value things of this sort and at a super high level?
David Boyd: That is what technology can do for you. So Cindy, this is how you can, you know, leverage, technology to, to really drive this process for you and others that, that, you know, we're hearing this today or in the near future.
Jimmy Lea: Because what you're going to do is say, Cindy, hours and hours and hours and hours and hours of listening to phone calls, looking for that one call to find it coachable. It just stacks it right up for you. I love that. That's absolutely amazing.
David Boyd: It really puts it right in front of you. And when I, when I talk about taking the heavy lift and we can go ahead and take that off the screen now, but when we take that heavy lift of, of time off of the owners table or the call coaches table, that is where it becomes a force multiplier, right?
David Boyd: I have the ability to do more in less time. Yeah. And that's, that's, super powerful for the owners. Who if they're, if they're taking this responsibility on themselves. But it also means that that my, call coach, who I brought in to come alongside in my training process, can maybe work with, 2 or 3 of my advisors instead of just one.
Jimmy Lea: Oh, I love it.
David Boyd: They have the ability to very quickly get to these calls.
Jimmy Lea: And I love your drill down as well. Were you able to drill down to the specific advisor. So to our audience, are there any questions, comments or concerns you have that you want to address here with David that we're coming in quick here to be landing this plane. If you've got questions, let's type them in now. I love that we can drill down to the specific advisors.
Jimmy Lea: That's for to see their close rates too. Will it show you, a, Eric is closing at a 99% or let's call it 90%. And then I've got Joe over here that's closing at a 30%, where they might say the shop averages 55 or 60. That's not bad. Yes, but can we look at each advisor to say, all right, Joe, you need to shadow Eric for the next 3 or 4 hours.
David Boyd: Exactly. So, so it does just that to answer your question, the short answer is yes. So, with our insights dashboard, when, when you filter, if that filter includes just the advisor that, that that those numbers, the conversion and the data and the metrics, the key performance indicators. That's only, looking at just that one advisor. So it really it is a powerful tool because if I have an advisor who's, you know, conversion is 50%, an appointment setting calls.
David Boyd: And I have an advisor who's 90% on appointment setting calls. We can do a couple things. One, we can acknowledge that we have an appointment setting problem, and, we know who to work with, but two, we can leverage, my stronger advisor to have examples. Right. We were talking about the review of good calls.
David Boyd: We can take some of those good calls and say, hey, underperforming advisor. This is what a good call sounds like, because once I once I hear those examples, now I can begin to relay, relate and adapt to my interaction with the customer and begin to emulate what a stronger advisor is doing, in order to perform better.
Jimmy Lea: Nice. I love that. And, there was a testimonial there a minute ago from Jenny that's using you at, Titan Auto entire Chesterfield, Virginia.
David Boyd: Thank you. I saw that pop up. I didn't read it, but,
Jimmy Lea: Oh, it's good, man. It's been a wonderful coaching tool. It makes monitoring advisors easy.
David Boyd: Thanks, Jenny.
Jimmy Lea: Thank you. So, to Ed Scheer's question here, what do you think about the AI driven automated phone answering system? So this will be our last question before we land the plane here.
David Boyd: This is a good question. And, this is a yeah, I would say probably a different type of AI. So now we're doing some customer interaction, with, with the use of a bot. And, my preference would be to not use the bot, but I also see that there's value in the industry to be able to do that, because I, I fully acknowledge there are times when we can't handle 100% of the calls.
Jimmy Lea: Oh yeah, we've got four clients in front of us. The phones are ringing off the hook. We can't get to the phone because we got to take care of who's in front of us. If we take care of who's in front of us, we miss all those phone calls that could have come through. Or maybe it's after hours, right?
Jimmy Lea: So that would be better.
David Boyd: Yeah.
Jimmy Lea: Let's say that's the scenario. We're not having a service advisor not answer the phones because they want it to go to the bot. That's bad right? Let's assume that it is a scenario that it's the safety net. What do you think of that?
David Boyd: I think that if we have the correct perspective that really this becomes an interactive voicemail, then it's a powerful experience. It can benefit the customer. And this is about the customer experience. And you may also know that there are times that a customer may I say I'll say annoyed, but they may just be like, I whatever, you know, hang up.
David Boyd: So, if you have the correct expectation about what that type of, tool can do for you, it's important to know that it can and will benefit you after hours. Because it allows you to take that appointment. Right. And, and I partner, with somebody that provides a very powerful tool that does this and integrates, you know, with, with the vehicle history.
David Boyd: And it can pull this forward and, you know, allows us to, to really be sophisticated in that appointment setting process. But that is probably the, the, the ideal time to use this is after hours. And if we look at this is really the sophisticated or interactive voicemail. This is a good use of, of AI in this way.
David Boyd: The last thing and thanks, Cindy to, I love that comment. I on the phone, has gotten a lot of heat lately. I don't know if you've seen or heard about this, but, I as a communication expert focused on the industry, I pride myself in my ability to protect my customers. So, there is some case law coming forth now with regard to the use of AI.
David Boyd: Whether it's kind of I, I do with car reviews or the bots and things of this sort. And we want to be, very particular in the way that we deploy that. So, I've got my thumb on that. It was on a very extensive, call, yesterday with a law firm that, is a frontrunner in the industry, in the communication industry.
David Boyd: So, these are all of the things that are important. And as an owner, there's a lot of, you know, cool and flashy tools out there. I would say I make sure that that you understand, what you're deploying and the potential legal implications, particularly in states where we have two party consent laws with regard to phone use.
Jimmy Lea: Yeah, yeah, that's interesting. David. Thank you. We'll have to do a follow up webinar to this webinar to find out what the ruling is or what happens with this new case law that that would be fascinating.
David Boyd: It's important. Yeah. It's important, you know, the wiretap call recording all of these. And I'd love to, have a follow up for your audience because it is important, and, we don't hear about it. Often. People get in trouble. So. Yeah, you got to have an advocate on your side that can that can help you with this, right?
Jimmy Lea: Love it. Love it with that. Thank you. David. Thank you for your time. Thank you for your effort, your energy to our automotive aftermarket industry. You are an awesome asset for everyone here and those who use your services. They know how great you are and the services you provide. So hats off to you brother. Thank you very much.
Jimmy Lea: You make the coaching and training side of what we do with phone skills and advice and following that proper phone flow. So much easier.
David Boyd: Thank you Jimmy. This has been a lot of fun. I really appreciate you.
Jimmy Lea: Yeah you're welcome. Thank you brother. And for those of you still with us, there are some upcoming events. Check out our website. We are the institute.com. Go under all events. See that we have a leadership intensive coming up very soon. If you want to dig deep into the human centric side of why you choose to do what you do and why your clients are the way they are, and why your employees are the way that they are.
Jimmy Lea: And how can you best communicate knowing these? This information is going to be very important. That leadership intensive happening in April. We are in April, happening in April in Salt Lake, Salt Lake City, Utah. Love to have you be a part of that. It's going to be awesome, awesome and amazing. We've also got some service Advisor training coming up soon, and in September is September or October.
Jimmy Lea: I think it's September is the next mini Mars series we are going to have at in the office in Ogden. It's going to be limited seating, 50 people only, limited seating, mini Mars. Love to see you there. Thank you very much, David. Thank you to everybody who is here today. Good to see you my friends. Thank you. Cindy.
Jimmy Lea: Bill, Ed Sheer, Jenny. Mike, you guys are awesome. Thank you so much. Have a great day.

Friday Apr 04, 2025
Friday Apr 04, 2025
116 - The Golden Rules of Listening – Part 3: Strengthening Business Partnerships & Relationships
March 26th, 2025 - 00:56:14
Show Summary:
In this episode, Jimmy Lea from The Institute for Automotive Business Excellence is joined by life coach Juliana Sih of Crescendo Coaching for a masterclass on the Golden Rules of Listening. Together, they explore how powerful listening skills can transform your business, relationships, and leadership approach. Juliana shares actionable insights and data-backed reasons why deep listening is essential, offering tools to increase awareness and intentionality. Through real-life examples and practical exercises, listeners learn how to minimize distractions, let go of judgment, and build trust through reflective communication. Whether you're managing a shop or navigating personal challenges, these skills can help you unlock better conversations and stronger connections.
Host(s):
Jimmy Lea, VP of Business Development
Guest(s):
Juliana Sih, founder of Crescendo
Episode Highlights:
[00:00:00] – Jimmy introduces the webinar's interactive format and the power of today's topic: life-saving communication.
[00:00:59] – Juliana Sih joins and shares her passion for helping leaders and teams grow through better conversations.
[00:04:08] – Juliana introduces the “Golden Rules of Listening” and how applying them can increase your skills by 30%.
[00:07:36] – Only 2% of people are formally trained in listening, yet it's the most-used communication skill.
[00:10:53] – Listening is crucial for building trust, catching key details, and aligning teams for better decision-making.
[00:15:09] – Juliana introduces the three levels of listening and how great leaders operate at level three.
[00:20:49] – The group discusses what makes a good vs. bad listener, with input from the live audience.
[00:28:22] – Active listening involves full-body engagement and thoughtful clarification to build connection.
[00:30:29] – Golden Rule #1: Be Present - Juliana shares a personal story about missing out by being mentally distracted.
[00:36:04] – Golden Rule #2: Listen Without Judgment - understand context over content and put “Bob” (your inner critic) in the back seat.
[00:44:47] – Golden Rule #3: Reflect and Rephrase - this technique helps diffuse conflict and deepen collaboration.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=Z5DPfR3OZb0
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Jimmy Lea: Morning. Good evening, good night. Depending on when and where you're joining us from today, it is a beautiful day outside. Glad to be here with you in the automotive aftermarket, as we talk about all those things that you just don't always have time to talk about, these are some of those discussions that are deep conversations that really help us to take it to the next level.
Jimmy Lea: Joining me today is a life coach, and we're going to talk about some of those things that will help save your life, help save your business, help save your marriage. Help save your relationships. Help save your communication with employees and spouse and clients and customers. This is going to be a great discussion. I'm super excited for this.
Jimmy Lea: And it's to be an interactive webinar. Interactive in what way? How do we do that? We're not going to save all your questions for the very end for the Q&A. We want your questions in the middle of the discussion. So you have the voice. You are able to kick it in and join us in this conversation.
Jimmy Lea: So go to the comments button. And this is new for us. We're first time we're streaming live here with StreamYard. This is going to be awesome and amazing and so much fun. Click there in the comments button and put in where you're joining us from today. So we can give you a shout out in the comments just like that and see that there.
Jimmy Lea: It's going to give you a shout out. Super excited to be back on StreamYard. It's been a couple of years since I was on StreamYard, so I'm super excited to be back here in StreamYard to give you all a shout out. And thank you for joining us as we're having this conversation. So type in where you are joining us from.
Jimmy Lea: Those of you who are on Facebook, you can join this conversation as well. Type it into the comments. Same with those of you on joining on YouTube. Click into the comments and you can tell us where you're joining us from today. And since you are all being a little bit shy, or maybe you get comments button, I don't know who's on or who's not.
Jimmy Lea: Love to have a give you a shout out. All right. Well I guess we'll have to keep this to the three of us. I think this is going to be a great conversation we're having with the three of us. Hey, you know what it is? It's going to be a great conversation. And those of you who are watching the recording, this is some of the great information that we at the Institute are able to, give out to you as a shout out.
Jimmy Lea: And you know what? It does look like things are starting to work. We got Stu in the Salt Lake City, Utah area, and, we've got the Institute for Automotive Business Excellence. Shout out from Ogden, Utah. And, well, Salt Lake. So yes, we are working that that's a, a YouTube. So it's working. Hallelujah. All right, so here we go.
Jimmy Lea: On to the next. And joining me today is Juliana. Si. She is a life coach with Crescendo Coaching. A phenomenal friend in the industry. We have done quite a few webinars together over the years talking about communicate and talking about, marriage, talking about life, talking about running a business and running a marriage and being partners in running a marriage, being partners in a marriage and running the business and not killing each other.
Jimmy Lea: So Juliana and I have had some really good conversations. I'm so excited to welcome you here. Juliana. Thank you for joining me today.
Juliana Sih:: Yes, Jenny, I'm so excited to be here again. What I love about the institute is just helping the business owners grow, be their best self, and help their employees.
Jimmy Lea: Yeah. Oh, that. That's so powerful. It's so powerful when we can make a difference. And that difference comes when we lock arms together and decide that we're not going to leave anybody behind. We are all going to make this storm together, because it's a strange and crazy storm that we're in. We're all locking arms together to make sure that we can weather this storm together.
Jimmy Lea: So with that to Juliana, where are we talking about today?
Juliana Sih: Today we're going to be talking about the golden rules of listening. And I think this is a skill that is a really a game changer, because I truly believe that leaders, coach and coaches lead. And one of the great skills that I've been able to expand on, and I'm still working on it, it's a work in progress, is the skill of listening.
Juliana Sih: So I want to teach your audience and your people and your shop owners all about this skill. But if you just have a little bit of awareness and a little bit of intention, you can increase your listening skills by 30%.
Jimmy Lea: Nice. I'm down for this 30% increase. I am working on my skill of listening, so I'm super down with this information. I'm excited.
Juliana Sih: Yeah, because really listening helps to strengthen personal professional relationships. That helps you to navigate difficult conversations right? When you're triggered and you have like strong emotions inside or your employees triggered and you don't know how to be with them, listening is the key. So listening can help you break through communication barriers, and it can help foster deep and trusting relationships.
Juliana Sih: So I want your audience to do just a little quick, question. On a scale of 1 to 10, I want you to rate how would you rate your listening skills just on a scale of 1 to 10? Just think about it. Put it into the comments. I want to know where you feel like you're at with your listening skills.
Juliana Sih: Jimmy, what do you think you're listening skills are,
Jimmy Lea: I think I'm at a solid 7.5.
Juliana Sih: Beautiful. And then for the audience, too, just you don't necessarily need to think about this now, but maybe just in the back of your mind, what would make it a ten?
Jimmy Lea: Yeah, I think oh, can I answer this one.
Juliana Sih: Yeah.
Jimmy Lea: Because I think I have an idea. I think for me it's putting away the distractions. So that in that conversation, in that moment when, we're having a conversation and it's one that needs full attention, which is all conversations, I need to put away the distractions and give that the full attention because, as much as I like to think I can multitask, I really can't.
Juliana Sih: I'm fearful I'm going to talk. I'm going to actually talk about that a little bit later today. During this masterclass. So I mean, one of the what. Oh, wait. Sorry. So listening is actually the most common communication skill that we use more than speaking. We listen 45% of the time, which is almost about eight hours of our day.
Juliana Sih: And then we spend about 30% of our time speaking, and then 25% is split between like reading and writing. And the statistics are pretty sad. On listening, only 2% of people are formally trained in listening, and it's people like coaches or therapists, and most of the money that is spent on personal development and communication skill all goes to speaking rather than, and very little on listening.
Juliana Sih: So today I want to talk about, you know, why does this matter? Why does listening matter? I want to talk a little bit more about some of the statistics. I have some, things I want to read off here. I want to talk about the difference between passive listening and active listening. And then we're going to go into the three golden rules.
Juliana Sih: And then I'm going to share the rest of the rules with you. And then we'll go into some Q&A in case the we don't answer all the questions before that. So as Jimmy shared with you, my name is Juliana and I'm a leadership coach, and I help leaders find their authentic leadership style so they can make a bigger impact.
Juliana Sih: I've been doing this full time since 2018, and as a coach, my main job is to listen deeply, to be radically curious, and to ask thought provoking questions, to evoke new awareness. So what I've done with this masterclass is I've really condensed what I've learned in the past seven years as a coach and put it into really layman terms so that I can teach a business owner or a spouse and leaders in the community to deepen their listening skills.
Juliana Sih: And really, my mission with all that is to elevate conversations. One deep conversation at a time. Because all the time I hear this in my practice is like I hear people telling me that they haven't shared what's on their mind with other people, right? Like, I get that all the time. Like, people know and trust me for a reason, but I don't think I have anything special.
Juliana Sih: I think I just listen more deeply and people than open up. So that's why. That's why I care about teaching this topic. Here's a few reasons why I think you should care, right? Miscommunications happen all the time. If you can listen more deeply and you can understand the other person's lead, it's going to lead to less disagreements and unresolved issues, likely if you're not a good listener, there's a lot of frustration, and people may choose to stop sharing openly, which can lead to feeling of resentment or isolation or being left out of a conversation.
Juliana Sih: And I know as a shop owner and as a leader, you don't want that. Frustration is an energy leak. There's a lot of missed opportunities. Also, poor listening can cause you to overlook valuable information, feedback, or potential new ideas. And of course, limited growth. Bad listeners missed out on learning new perspectives that could spark personal development and make better decisions.
Juliana Sih: So really, when you can be a better listener, you can be more efficient. Effective people will trust you, and you'll have more influence in either in your community or in your business. Because I know as business owners, as leaders, you want to be more efficient, right? You want to catch kids, you want to catch key details of first time and reduce miscommunications and unnecessary back and forth.
Juliana Sih: You want to be influential. You want to get everyone aligned on the same page. You want to be able to solve problems faster by really understanding the real issue and not the surface level issues. You want more collaboration. You want people to work together, clear communication and stronger relationships. And that's really the power of deep listening.
Juliana Sih: You want to be able to make good decisions, right? When you listen deeply, you can gather insights. You can ensure you don't miss the critical information that's needed to make a really powerful decision. And you also want to build influence. Influence is built when people trust you and people trust you, when they feel heard and seen and they feel important.
Juliana Sih: And that's what listening can do. So so I hear this quote often. It's like, don't be the most interesting person in the room. Be the most interested.
Jimmy Lea: And and oh my gosh, Juliana right there. You just hit on an an on a solid topic, a solid almost another webinar. Two things that I that I hear when I hear you talking about communication and listening. As you can imagine, in high school, I in college and in life, people remind me that I have two ears and one mouth.
Jimmy Lea: So I need to listen more. And I'm trying to I'm trying to listen more. I'm trying to listen and be better. My mind tends to go pretty fast, and I try to hear what you're saying, but my mind is, and this is my fault. This is where I'm trying to draw back and listen better rather than anticipate what your problem is.
Jimmy Lea: You concern is, and I'm trying to fix it. Before you even get to your point, I need to listen better instead of thinking ahead. Are you gonna be talking about that as well? Where I want to solve all the problems and they don't even know the problem?
Juliana Sih: Yes, Jimmy, you bring it up. Such a good point. Really? There's a reason why this happens. And it's scientifically based, right? So our brain is brilliant. It can process up to 400 words per minute. And the average speaker talks about 100 words per minute. So that's only 25% of your brainpower. Guess what it's doing. The other 75% of the time it's we have our inner chat, right.
Juliana Sih: You're either like maybe judging, trying to give advice, you're trying to mind read is what you're trying to do, trying to anticipate what they're going to say so that you can try to solve their problem or you're trying to one up someone or you're trying to, or you're just daydreaming, right? Someone's talking about their weekend. You're like off thinking about the vacation you had five years ago when that pina colada.
Juliana Sih: That was delicious. So I think part of it is like we're how how do we refocus that 75% or, you know, 60%, whatever it is to something else so that we're actually present with the person. And I am going to talk a little bit about some of the things where you can, put that beautiful brain power that we have to good use.
Jimmy Lea: Nice, nice, awesome.
Juliana Sih: So there are some different levels of listening, and this is kind of something that we don't really think about. Right? There's the internal level of listening. Level one. So I want you to picture yourself at a restaurant. You're sitting with a person on the other side. Maybe you're on a first date or someone you admire. And then the waiter brings you the menu and you're looking at the menu, and you're.
Juliana Sih: This is where you're at level one. You're looking at the menu and you're like, what would look good right now? What do I what am I, crazy? The focus is on you. The spotlight is on you. Oh, should I have a drink before I start eating? What? Appetizer. Sounds good. So that's level one. All right, let's say you ordered, some spaghetti and meatballs and you're happy.
Juliana Sih: And now, level two, you're focused, listening on the other person. Your sole focus is on them. It's like the whole world could fall away, and they would just be you and the other person that's focused, listening. You're paying attention to what is said and not said. You're paying attention to their nonverbal cues. So that's level two. The spotlight is not on you, right?
Juliana Sih: Level one is on you. The spotlight is on the other person. So we're going to be talking a lot about some strategies to be more and like level two, level three is global listening. And level three includes the action, the inaction in the interaction. And it includes, like all your senses, not just your hearing, but also your senses, your intuition.
Juliana Sih: You know when you get that gut feeling, someone tells you like I'm doing fine, but deep down you kind of know, like something's up. That's global listening, that's level three listening. So I just want to distinguish these three levels because we all have access to them. Global three takes a lot of practice. The most influence, and successful people are able to practice at a level three.
Juliana Sih: They're able to read their impact and adjust accordingly. So some of this, the success that I already shared with you about listening, I told you they're a little sad. And that's okay. This this is why I want to teach this. And others already teach this to change that narrative. Right? Only 2% of people have formal education and listening.
Juliana Sih: 75% of people are preoccupied while listening. They're either thinking about their to do list. What to say next, just waiting for the other person to kind of like, stop talking. 80% of organizations spend money on speaking, but they don't spend money on listening and building the listening skills. So it's all about like talking and how to talk more effectively, but not on listening.
Juliana Sih: So we're kind of in a crisis and listening just because there's not enough, resources spent on that. I'm going to share a few other statistics here that I found. A survey found that 96% of people believe themselves to be a good listener. There's actually a Google did a three year study on trying to figure out what the most effective teams did, what made them different from other teams, and what they found is that the most successful teams were better listeners.
Juliana Sih: They were better communicators. They had, you know, when someone speaks, everyone listened and their ideas were all exchanged and shared. Everyone felt curtains heard and seen. Then they were like contributing. So the most successful teams have a good listeners where people can feel heard and seen, and they have this sense of safety within them. The funny also thing is that most people believe they're a good listener, but they think they're a better listener than they are.
Jimmy Lea: Oh yeah. No, of course. Right. I mean, we always think that. So to to the Google analysis was, were these teams trained and taught how to do this or they just discovered that they were better listeners.
Juliana Sih: They just discovered like an outside party was evaluating, these teams. And that's what the outside party discovered is that these teams had really good communications skills internally in their team. Everyone felt like they were contributing to the whole, and everyone felt like their ideas were being heard and valued.
Jimmy Lea: Well, that's fascinating. Fascinating that that Google would analyze that within their own company to see what makes a good team great.
Juliana Sih: Yeah, yeah. Some of the other statistics here listening to 30 minutes or more of nagging complaining can negatively affect the brain problem solving skills. Active listening is identified by 64% of HR professionals as the most critical leadership skill. Being able to actively listen is shown to increase productivity and collaboration by up to 25%, and it's also shown to reduce the number of misunderstandings by 40%.
Juliana Sih: So a really, really valuable skill to have. I showed this a little bit earlier, but we spent a lot of time listening. 45% of our time is spent listening. 30% is spent speaking, and then around 25 is writing. And, reading. So I would love to hear from the audience a little bit about what they think.
Juliana Sih: Hang on this, which may I said, let's talk a little bit about the good, the bad and the ugly of listening. So I want to hear from your audience just a few things about what they what they believe is a good listener. What makes a good listener just put into the chat in the comments just right. So the first thing that comes to mind when you think of a good listener.
Jimmy Lea:
And while we're waiting for people to chat in something that I, it just reminded me I saw on Facebook, reels and on TikTok is that we listen and we don't judge. So judging, would be one that I need to work on to make sure that I'm not judging when I'm receiving information. But then the second, as a good listener would be that I am listening, not multitasking.
Jimmy Lea: So something that goes a long way for me when I'm talking to somebody or giving instruction, is for them to acknowledge. Acknowledge goes a long way in my book, attentive writing says attentive. Yes, absolutely.
Juliana Sih: Using mirroring, repeating what they're saying.
Jimmy Lea: Yeah, yeah. And I love that Mary said this because in that mirroring, the sender of the information is able to hear what you heard, and it might not be what they meant to say. It might be, oh my gosh, now that I'm hearing that back, wait, there's a couple of changes we need to make to that because that a lot.
Juliana Sih: Yes. You bring up such a good point when you mirror and when you when you can be that reflective mirror like then they also know what they're saying because most of the time people don't actually know what's coming out of their mouth. They have some ideas, but then things slip and you know, they don't know what they're saying.
Juliana Sih: But by being a mirror, they can learn about themselves as well.
Jimmy Lea: Yeah. And I like John suggestion here too. And there's a fine line. I don't know if you can talk about this or not. Juliana, in asking questions is asking questions that are good and important, but at what point does it go to an interrogation from the the receiver side? You're asking me questions. Well, at what point does it go from you're asking me questions to now it feels like you're just interrogating me.
Juliana Sih: Yeah. That really has to do with the quality of the question. You really want to make sure that it's not pointed, right? Like if someone's telling me about, like, their marriage and they're struggling and I ask, well, why don't you just divorce them? See, I'm going to that is. And how like, instead of like, oh, what? Don't what don't what aren't you happy with in your marriage?
Juliana Sih: So really that really depends on the quality of the question that you ask. You want to make sure that a you're being curious, you don't know the answer. Right. And also you're not leading them somewhere and you want to ask an open ended question. Not like a yes no question which usually starts with a what. Versus like a did or how goes sometimes in the explanation and people can feel a little bit defensive also when they have to explain themselves.
Juliana Sih: But there's a purpose and reason for those types of questions as well.
Jimmy Lea: Yeah, yeah for sure. It's something that, that I've, discovered in my communication, is, acknowledge before you go asking me the next question, I need some sort of a verbal cue body cue that says you're hearing me. You're listening. You understand? There may be, affirming, confirming, acknowledging or saying yes. And, that goes deeper into it.
Jimmy Lea:
So, if I get a barrage of questions, probably three in a row without acknowledgment, then I it feels and I'm discovering this about me. I mean, I'm 51 years old and I'm finally learning these things that I, I feel, interrogated.
Juliana Sih: Yeah. And it's. Yeah. You mentioned something really important to asking one question at a time.
Jimmy Lea: Yes.
Juliana Sih: Oh, yes. When you stack questions, people get overwhelmed. They don't know where to, where to start, what to answer first. So really, like, you know, asking good questions, the quality of the question matters. Making sure it's from curiosity, but also, yeah, asking a simple question as you can long winded questions are also make it very difficult because, there's like some explanation in there and, you know, other components.
Juliana Sih: The most powerful questions are the simplest.
Jimmy Lea: Oh yeah, for sure. I learned, 15 years ago about asking multiple questions at the same time. They'll only answer the last question. The first two weeks, they don't even remember what they were, but they'll answer the last one.
Juliana Sih: Yes, yes. Beautiful. So good leaders, we have a very good responses here. Very attentive. They're focused, they're connected. And they're responding either by nodding, nodding, acknowledging that they are either here in you, seeing you, or in the conversation with you. All right. Let's talk about a bad listener. What are the qualities of a bad listener or just like someone who's not?
Juliana Sih: Yeah, I don't like the word bad, but, you know, a bad listener. Let's talk about that. What are some of the qualities of that?
Jimmy Lea: I think distraction is top of the list.
Juliana Sih: Yes.
Jimmy Lea: Or dismissive. That is right up there with, being distracted, dismissive. Yeah. My my concerns, my questions, my comments, my concerns have no weight in your world. And you're going to just dismiss me.
Juliana Sih: Yeah.
Jimmy Lea: Maybe I didn't say right. Maybe we need to repeat this, but, yeah. Dismissive that’s a...
Juliana Sih: That's a tough right. It makes you feel like, disrespected or not important or just like you're they're not even listening, right. They interrupt. Bad listeners also are closed minded. They just want to, like, share their ideas. And they're not actually even it doesn't even feel like they're allowing what the other person is saying to enter.
Jimmy Lea: Yeah, it feels in those situations it doesn't feel like a discussion. It feels like a instruction.
Juliana Sih: Yeah.
Jimmy Lea: Like I'm being instructed and told what to do, where to go, what to think. And that's not good. Nobody wants to have that type of a relationship with a business partner, a client, a spouse.
Juliana Sih: Yeah. People really want collaboration. Yeah. And that's where, like, the listening skill can really come in. Is like, if you want to collaborate on a solution, right? Everyone has input, then everyone's involved, everyone's aligned. Everyone's like, ready to go because they all felt like they contributed. And they're part of the whole, something else that makes people or that looks a little too busy.
Juliana Sih: They're distracted. They're, you know, they're on their phone, they say they're listening, but you kind of know they're they're not.
Jimmy Lea: There's some that I've seen before is, talking over here. I am telling you about a situation or a story or some information and, it's it's as if, though I'm not even there. I'm not even talking because somebody just comes in, blows right over the conversation, takes right over it.
Juliana Sih: Yeah.
Jimmy Lea: That's very frustrating.
Juliana Sih: So common because we all want to like, relate it to ourselves also. And then we don't need to bring that spotlight back on us. But we unintentionally bring it back. Right?
Jimmy Lea: Yeah.
Juliana Sih: So it's like initially it was on you and then they want to bring it back to them, but not intentionally. It's just like a very subconscious thing very often.
Jimmy Lea: So what's a way to be able to do that so that we're not doing that too. It's about them. It's not about me. They're telling me about a problem, a question, a concern. And how I, I guess it's just focusing with full intent on making the conversation about them and zero about me. Is that the listening skill for that one there?
Jimmy Lea: Juliana.
Juliana Sih: Yeah, the listening skill. Again, it goes back to that, brain power like our brain has. It's so it has such a high CPU and we're not using all of it when the other person's talking. So it's just about where can I put my focus? So it's not just going back on me. So it's about listening to the content, right?
Juliana Sih: Making sure you're understanding them. It's about reading their moods and emotions like the subtle things it's about, like noticing if they have any vocal changes that are happening. Like, you know, someone says they're really they say the words, oh, I'm so excited about something. But the voice is it or the like. Body language is there. That's where you tune and that's where you put the energy when you want to actively listen.
Jimmy Lea: Yeah.
Juliana Sih: So when you're just listening, you're, you know, focused, you're focused on the speaker, but you're not fully in it with them. You know, you might be kind of disengaged. You might be doing something else. So that's not really active listening. Yeah. Active listening is more on the, sorry, just my slides. Active listening is more being fully with the speaker.
Juliana Sih: It's having the spotlight, being fully on the person. You're understanding the speaker's message, you're understanding their feelings. You're understanding their perspective. You're putting yourselves in their shoes so you can try to understand them completely and do your focus on understanding and responding thoughtfully. And you take into account those verbal and nonverbal cues to understand. You make eye contact with your present within you.
Juliana Sih: Ask clarifying questions. How often has someone been talking to you? And they're chatting about something and you're lost, but you're just like, yeah, yeah, right. Instead of pausing and being like, actually, hang on a second, I'm not quite sure what you're saying there. Can you clarify that? So active listening is all about, you know, engage in the conversation and ask those clarifying questions and paraphrasing.
Juliana Sih: So active listening aims to understand passive listening is just hearing. You know active listening involves reflective responses and asking clarifying questions and involves the whole body, not just the words. It involves the mood and the motion, the body language, the vocal changes. So that's where all that CPU can go, right? Because in listening, the thing that we're doing often is we're judging not I don't mean like bad judging, but we're just judging what the person saying, whether it's good or bad, whether it's right or wrong.
Juliana Sih: We might be trying to give advice for like, I know the exact solution to make this person, successful. And then you're thinking about all the advice that you want to give. But unfortunately, that's not active listening. We all have really good intentions. We want to help people, but the best way we can help people is by active listening.
Juliana Sih: So the thing about listening is we often think we are better at listening than we really are. Study showed that managers will rate themselves high on listening, but their employees who report to them will rate those same managers as poor listeners. So we all think we're, like, better listeners than we are. And I think that's just because we have a lot of blind spots when it comes to listening.
Juliana Sih: You know, we learn listening from our families, peers and our life experience, mostly through trial and trial and errors. And they've and we've just compounded over the years, they have become habits that we don't even realize are getting in the way. So like I mentioned earlier, just a little bit of awareness and, just a little bit of awareness and some attention can go a long way when it comes to listening.
Juliana Sih: All right. We're going to get into some of the rules now. And Jimmy, you are so spot on with some of the things that you talked about earlier. Because the golden rule number one is be present. And I know this sounds repetitive and simple, but we have to put it into practice. Because this is the one of, one of the key ways to really be with the other person.
Juliana Sih: We got to be present. You know, we're often thinking about the future, the past, how it's gone, how much you know this person, how much you know about their problems. And then we can't be with who they are in this moment. I'll share a story about a time with my boss. Hang on. Oops. When I thought I was being present and I wasn't.
Juliana Sih: So I was in a one on one with my boss, and they were walking me through some, like, crucial technical aspects of my job, and she was like, dropping some gems, some insights, things that would have made me better, faster, more effective. But where was I in my head? I was miles away. I was like thinking about some personal problem that needed fixing.
Juliana Sih: So on the outside I look like I was listening. I was nodding, making eye contact, even throwing in the occasional but I wasn't actually there. And then I realized at some point that I was just completely lost. And I had no idea what she was just saying. And instead of owning up to it and interrupting her and being like, hey, can you like, repeat that?
Juliana Sih: Or can you say that again? Some way to get back, engage in the and the conversation? I was too embarrassed to just do that. So I just kept nodding, hoping she wouldn't notice. And by the time I walked away, I knew that conversation had been really a complete waste of time. I had missed something important, something that could have helped me grow simply because I wasn't truly listening.
Juliana Sih: And here's a real impact, right? Not only did I miss out, but my boss wasted her time pouring knowledge into someone who wasn't even present. And that's the thing about listening. It's not just about hearing the words knowledge. It's about like doing the the the gestures. It's about showing up and being fully present and respecting the person speaking by actually taking in what they're sharing.
Juliana Sih: Like the one of the key ways to build respect is by acknowledging and listening to the other person, especially in a world of so many distractions. So one of the things you mentioned earlier, Jenny, was put away your distractions. One of the simplest things we can do is put away our distractions. Right. I don't need you to throw your phone out, but, yeah, put your phone away.
Juliana Sih: Put it on silent. If you're on a zoom call and you know all your windows distract you, close them all down. Keep it simple so that you can put all your attention. On to the other person. If you know that being in the office is distracting for you to be present and you can't focus, go have a one on one out on a walk.
Juliana Sih: Get creative with what works for you. I tell people, like, if you're meeting someone at a coffee shop and you know you're facing the door is going to be distracting because you're just going to watch people going back, you know, in and out, like face the other way. So these are just like simple things you can do to start being more present with people.
Juliana Sih: Because at the end of the day, people are always revealing something about themselves for a reason. And as a listener, it's your job to try to find out. Why are they telling me this? Why is this important to them? What does it say about their values, their worldview, and what they care about? And I think one of the things that we forget is we have to be responsible for minimizing distractions, right?
Juliana Sih: Like, if, you know, like when me and my husband try to have a conversation and the kids are around, we can't have a conversation because, you know, two minutes in, my daughter wants something, the other one's crying. So I have to be be intentional and create a space. Honey, let's talk when the kids are asleep. And then I have to remember to go back and do that.
Juliana Sih: So this can look many different ways for each relationship in your life, but you need to figure out what works for you, right? To be present if it you know, I think we talked about this in another webinar, Jimmy, where when you cross a bridge, you don't talk about any more work, right? If you work together and are married and have a business together, like you have that bridge where you, don't talk about work anymore, that's very similar.
Juliana Sih: Like be present, like set yourself up to be present. Get curious with other person. Create an internal game for yourself. You know, ask why are they sharing this? What? What has them share in this room? Why is this important to them? What are they experiencing as they share them? So getting curious, asking questions. And I think the thing that we really forget is it's okay if there's silence in between.
Juliana Sih: We're so used to thinking that we need to fill in the space, that we need to think of our response. We don't. If there's like a three second silent pause, that's okay. Just let them know that you're thinking about your response and you're really absorbing the information that they're giving you. Oh, I realized, sorry. The other thing to do is start a simple practice of meditation.
Juliana Sih: I think I think one of the most important things that we can do as humans in general is like learn how to quiet our mind. And that's what presence is also with other people. If we can learn to quiet our mind and train ourselves either through meditation or through other practices, then that can really help people be present.
Juliana Sih: Something else that you can put your focus on as you're being present is notice if someone is stating some contradiction, you know, like if someone is saying that, they're doing fine, but they look really sad, or they're saying, that they're really excited about something, but then they on another set and this sentence, they say they're really mad.
Juliana Sih: Notice start noticing those contradiction. The real powerful thing about listening is that you can help the person speaking see themselves in a new way.
Juliana Sih: Okay. We're going to go on to Golden rule number two. Jimmy, you talked about this too. So I love it. Listen, without judgment. Yeah, judge. And I don't mean judgment, like in a bad way. I think this is, you know, what is judgment. Let's talk about that for a second. Judgment is a mental habit of labeling or categorizing someone's word are literally judgment making machines.
Juliana Sih: That's how we evolved. That's how we've probably survived, is we need to be able to evaluate people fairly quickly. But there's also probably holding us back now, it's often based on our past experiences, past conditioning, and often it looks like being right or wrong, agreeing or disagreeing. And it's really a self-protection mechanism. Part of the reason, why we judge is because our egos like to be right.
Juliana Sih: We want to be right. So it's a self-protection mechanism. We don't want to be we don't want to be vulnerable. So we try to fill in what we already know about the person. So we don't have to be in the unknown. Like, for example, if you like, label someone as, let's say, like you label someone, let's say you're going to go into a conversation and you already know this person is kind of like you think they're a jerk, right?
Juliana Sih: You're going to experience them as being a jerk just because you already have that prejudgment about them. So that's that's kind of the impact of judge, judging is that we it's a filter. It acts as a filter in our listening. If you know you're going to meet someone and they're energetic and fun, you're going to show up differently than if you think they're a jerk.
Juliana Sih: So those judgments will filter what we hear and what we see in the person. Does that make sense?
Jimmy Lea: Oh my gosh, yeah, it totally does. Not only from, prejudging somebody for for where you think they are, but there's also that judgment that says under these same circumstances, I had something similar happened to me before, and this is what I learned from it. And this is what I want to avoid. You may need to ask more questions because not all circumstances are the same.
Jimmy Lea: Not all conditions are the same. It might be a different situation and asking more questions will help you to discover. Yes, you've had this great experience in the past that's helped you to ask the right questions today to avoid conflict.
Juliana Sih: Yeah, yeah. And that's what judgment does. That really shuts down our curiosity and our empathy with it, which are like two cornerstones of listening. And then we have we think we can mind read or know who they are. So letting go of judgment is really important when it comes to listening. And it's all about awareness with judgment, like, what are we judging about?
Juliana Sih: Who, what, what do I think about this person? Sometimes it's as simple as just like writing out what you think. So you can see it on paper. And the real reason why letting go of our judgments is important is because then we can understand the context of a conversation, and the context means understanding the full story behind what someone else's, what someone is saying.
Juliana Sih: When you understand your judgment, you can move the conversation from content to context. So content is just like what's being said. The words, facts, data, surface level, information, context is a deeper meaning behind what is being said includes emotions, intentions, perspective, the bigger picture you want to get. Like the 10,000ft view of why is your employee telling you this?
Juliana Sih: Like do they have a suggestion? Do they want to make an improvement? Or are they struggling and frustrated? Do they need time off? Sometimes when people are sharing, they're all in the content. And if you can put your judgment down and you can get to the 10,000ft view, then you can understand their context of the conversation. You don't want to be in the weeds as a leader.
Juliana Sih: You want to be in the context. Understanding the bigger picture of why they're sharing, what they're sharing. So, you know, context. What's being said. Staying here leads to reacting rather than understanding. Just imagine like, you you know, I can't believe I have to stay late at work again. Right? From content, you might be like, oh, well, you know, maybe it's really busy.
Juliana Sih: I'm sorry, you have to say, like, maybe you're going to try to make them feel better, right? Versus maybe what they're if you're looking at it from a context point of view, you're going to understand what's really being expressed. Are they frustrated? Are they feeling unappreciated? Are they feeling disrespected or they're feeling like their boundaries aren't aren't being honored?
Juliana Sih: That's the power of being able to uplevel the conversation and getting into the context.
Juliana Sih: So context means understanding the full story. It means what's really going on here? Why is this person, what does this person feeling or need right now? This behind every complaint is a need. But people don't know how to share their need directly. So they might be complaining or, or be shut down. It depends on the person. So if you want to stop judgment in real time, there are few things you can do right?
Juliana Sih: Take a breath, breathe. And just like try to bring yourself back into the present because the judgment is all up here in our head thinking right? Get back down to the breath, acknowledge the bias. Maybe recognize you know, I like to I like to name my judgment. I like to name him Bob. Oh Bob's around like oh is he like trying to protect me.
Juliana Sih: What is, what is Bob need right now. Right. Because it is a self-protection like judging is a self-protection mechanism and sometimes it's needed but also acknowledging like oh Bob's around. Oh Bob, I don't really need you. You can take you can, you can be in the back seat. Thanks, I got this. I can drive a car.
Jimmy Lea: That's funny. That's really good. I acknowledging the bias. I think that is probably going to help me a lot. Going forward, because, I want to listen better. I want to not judge according to past. And my might have to park Bob for a minute. Yeah. So I can listen without the prejudice of of things of of the past.
Juliana Sih: Yes. Yeah, yeah. Something that I also find helpful, but I didn't share in the being present is maybe find something that helps you be present. Right. When I started coaching, I would just doodle on paper. I wasn't like trying to be an artist, but I would just doodle because it would help me to, listen better. By just like writing on my page, like writing little drawing little things on my paper.
Juliana Sih: So sometimes maybe it's like you have a squishy ball where it's just like, you know, that physical thing that helps you to be present.
Jimmy Lea: Right?
Juliana Sih: But yeah, and also naming that part of you, we all have different personalities. We all have like a little internal family, and they all have different roles, but they're not always needed. Bob doesn't need to be here. Thank you, Bob, for being here. I see you, I hear you take a backseat. Please. Stopping judgment in real time can look like asking any questions, right?
Juliana Sih: If you're asking questions, you're more concerned with the other person. You're not in your head judging or do an empathy check with the other person, like, oh, what is this person actually feeling like? Put yourself in your shoes and that will get you outside of your head, inside of the judgment. And the outcome of that really is helping the person that you're talking to feel understood, connected, seen and heard.
Juliana Sih: It's really all about them feeling safe with you because that's when they trust you, and that's when you have more influence. All right. Moving on to, golden rule number three. I think someone mentioned in the comments before, but we're going to talk about it, reflect and reflect. Rephrase.
Jimmy Lea: So Mary was talking about that with the mirroring repeating what they're saying. So yeah. Thank you Mary that this is rule number three.
Juliana Sih: Yeah. Rule number three. And this practice is really powerful because when you reflect and validate, it shows the person not only that you're listening and you're there, but that you truly understand them, that you honor their experience. And these are some of the keys to building trust, empathy, and stronger connection. Because as I mentioned earlier, most people don't know what is coming out of their mouth.
Juliana Sih: So being their mirror helps individuals gain clarity and insight into their own thoughts and emotions, and knowing this will help them make more informed decision. Also, this is a great way to use some of those CPAs of our brain as it ensures that we're listening and understanding what they're saying, because people just want to feel understood. And that's the simplest way to start a rephrase and reflect conversation, as you say.
Juliana Sih: Like what I'm hearing is I think people think that you have to parrot the exact same words, and that's not what you need to do at all. You need to summarize and rephrase what the person is saying, and make sure that you're on the same page with them so that you're really getting what they're saying. The power of this reflection and rephrase is amazing in resolving conflict because it shifts the focus from it.
Juliana Sih: Shift the focus for me, the spotlight on me to the other person. Right. And that's important because when we're in a conflict, there's a lot of emotions in the space, and the conversation is often not very constructive. Let's say, for example, you know, I tell my husband, you never help around the house, right? If my husband goes into like, well, actually, you know, I take the garbage out and, you know, I did this for the kids and I did that for the kids, that would not lead to any good, fruitful conversation.
Juliana Sih: What now? If he said something like, sounds like you're feeling overwhelmed with the household chores, how can we balance things out? Can you see how that would be a very different conversation from going into defense? Because then there's collaboration. Then it's people getting on the same page and feeling heard. And that's the power of rephrasing and reflecting.
Juliana Sih: It's like people feel heard. They feel seen. And they open up to you. And it also reduces emotional escalation. When people are emotion, people tend to react quickly. When people react quickly, we want to go into defense. We want to use that self-protection mechanism. When we can rephrase things, we slow down the conversation and we tune into the present and we slow things down.
Juliana Sih: And then the reframing helps shift from the negative emotions to potential solutions. So the next time you are going to argument, I challenge for for everyone here, use the reframe and reflect and see what happens. It's going to be it's a it's a game changer because you're not going to go into defense trying to defend yourself. You're going to go into potential solutions.
Jimmy Lea: Julianne, I really like that. Because I, I personally, feel like when I'm attacked, I and I go on the defense, I need to put in a whole ton of grace into that situation, which I'm going to implement going forward, is reflecting back and trying to certainly de-escalate the situation about the house and the chores and not doing things.
Juliana Sih: Yes, yes. And then there will be collaboration. You'll be on the same page again, because when you're on the opposite team, you're you're fighting, you know, in some way, shape or form. And the reflecting and rephrasing will help you get back on the same team with some solutions versus just talking about the problem. So here's why this works.
Juliana Sih: It reduces misunderstandings and the emotional escalation. It promotes empathy and understanding. Connections shifts from a reactive response to a thoughtful dialog, and it encourages collaborative problem solving. So I was going to, oh, sorry.
Jimmy Lea: Oh.
Juliana Sih: So here's the practice for you to take on the next time you're in a conflict. The next time you want to use this, reflect and reflect. Just pause and listen fully focus on the words that are being said. Focus on what they're doing with their body language and then rephrase it. Rephrase what they said to you to make sure you're understanding.
Juliana Sih: Because when we're in our emotions, we have that filter, right? We have like a similar filter to judgments that can alter emotions, make us poor listeners, to be honest. Like when we're either when we're excited or also negatively like if were frustrated. So that makes us, our listening goes down when we're having those strong emotions. So by rephrasing and reframing, you can get back to the present and make sure you're in the conversation.
Juliana Sih: So here's an example. No one at work is listening to my ideas, right? Someone could say, oh, that's not true. Like I listen to your ideas. You have really good ideas. You might try to be making them feel better. You might try to be like minimizing their experience. But the power of reframe and rephrase is, oh, it sounds like you're feeling frustrated and move it.
Juliana Sih: Maybe even a little dismissed. That shifts where the conversation will go.
Juliana Sih: So I have a practice for you, to do, homework. I want you to practice with someone I want you can do this with anyone, whether it's with your spouse, with your business partner. But I just want you to for two minutes. Just share a little bit about the context of this exercise for two minutes.
Juliana Sih: I want one person to share a short frustration, and then the other person is just going to listen. And then they're going to practice rephrasing and reflecting. They're going to listen. They're going to practice reflecting reflecting and then just switch. So go practice it with your partner and go practice it with a friend. Get someone enrolled and doing this I wanted to do this live, but we're in a we don't quite have breakout rooms like I was hoping.
Juliana Sih: So, do this at home, though. Do this at home. Because, really, I mean, I want you to imagine a world where you're running a meeting and everyone's feeling heard and engaged. Kind of like at Google, right? The best teams, they feel heard, they're engaged, they feel like they're making a contribution. Imagine if your team was running like that.
Juliana Sih: Imagine if your relationships with loved ones or colleagues felt easier with less conflicts. Imagine instead of reacting, you can be fully present and listen. That's the power of building the skill. So just to kind of recap, we've gone through the three golden rules of listening. Stay present, listen instead of judging, reflect and rephrase. Now I created a cheat sheet that I want to share with you all.
Juliana Sih: Where it's going to help you to nail communication. It's this cheat sheet has like kind of all the golden rules, plus a few things. And what I want you to do with this guide is I want you to download it. I'm going to have a QR code on the next slide, and then I want you to print it out, print out this cheat sheet.
Juliana Sih: And then I want you to practice one of these each day. Use the Kiss method message method. Keep it simple. Just pick one and utilize that one per day. The great thing about listening and deepening the skill is that intention and practice go a long way. Literally, you can increase your listening skills by 30% just by kind of knowing these things and practicing it regularly.
Juliana Sih: So here's a QR code for the cheat sheet. Go ahead and do that. Now print it out. Pick one that you do daily. Put it in in your office or somewhere you can see it and then practice it consistently. Literally. You can change the way you listen with just something as simple as this. And then, of course, there are a few more golden rules to listening, right?
Juliana Sih: We talked about the first three today. And then of course there's asking powerful questions which we kind of touched upon, as Jimmy, as we were talking. The next golden rule is be curious. The next golden rule is watch for those nonverbal cues, whether it's in yourself or others. And number seven, acknowledge and stay silent. So I know we're up at how are we doing a time, Jimmy?
Jimmy Lea: We're right up at the end. I mean, like, professionally, you've entered exactly on time.
Juliana Sih: Okay. I'm just going to leave it at that. I did have a few more things to share, but if anyone is ready to learn more about the next Golden Rules, please book a quick call with me. And I'd be happy to share more because I do have a little mini course kind of sharing all of these seven rules that I'm going to be doing.
Juliana Sih: So if you're interested in learning more and you want to unlock the seven Golden Rules, please book a call with me and we can chat about it. And then.
Jimmy Lea: That's it. Nice. Oh my gosh, such great information. Julianna, thank you so much. This is how people can communicate with you. Send an email to coach at Giuliana cch.com C is ach.com. And this is your office phone number (831) 245-5362. Yep. All right. Very good. That's awesome. Well thank you so much, Julianna. And I hope that we can be better listeners.
Jimmy Lea: It's definitely something that is hard work, something you have to consciously, effectively do every day. All day is listening. Listening to yourself, listening to that other person.
Juliana Sih: Yes. And that's a beautiful thing. You can practice every single time you talk to someone. You can just be like, oh yeah, let me practice that presence. Oh yeah, let me practice that rephrasing and reframing. There's always an opportunity to practice and there's simple. But yes, it's hard Jimmy. It's simple consistency just like learning the piano. But we all have we all have the instrument already.
Juliana Sih: We just got to learn how to use it.
Jimmy Lea: Yeah, that instrument's there. We got to learn how to use it. And once we do, we'll play beautiful music. Nice. Well, thank you very much. My name is Jimmy Lee. I'm with the Institute for Motor Business Excellence. My guest today, Julianne C with Crescendo Coaching a life coach. She has a tremendous friend and I appreciate you being here.
Jimmy Lea: Thank you very much.
Juliana Sih: Thank you.
Jimmy Lea: Talk to you guys soon. Thank you.

Wednesday Apr 02, 2025
115 - 3 Essential Steps to Save Your Home and Your Business With Wayne Marshall
Wednesday Apr 02, 2025
Wednesday Apr 02, 2025
115 - 3 Essential Steps to Save Your Home and Your Business With Wayne Marshall
March 18th, 2025 - 00:56:44
Show Summary:
In this insightful episode, Donny Seyfer from WTI and Jimmy Lea, from the Institute, hosts a special podcast featuring Wayne Marshall, Interim CEO of The Institute to tackle a critical topic for small business owners, how to protect your home and your business through the proper legal and tax structures. The conversation focuses heavily on LLCs, S Corps, and C Corps, demystifying the differences and outlining the benefits and risks of each. Real-world scenarios highlight the consequences of not setting up a legal firewall between personal and business finances. Wayne provides practical advice on taxes, ownership structure, planning for a sale, and maximizing profitability. Listeners walk away with clear guidance, actionable steps, and a new sense of urgency around legal compliance and business structure.
Host(s):
Donny Seyfer, National Automotive Service Task Force
Jimmy Lea, VP of Business Development
Guest(s):
Wayne Marshall, Industry Coach
Episode Highlights:
[00:01:21] - Many shops are operating without legal protection, putting their homes and future at risk.
[00:03:02] - 95% of U.S. businesses make less than $3M annually, laying the foundation correctly is crucial.
[00:04:24] - LLCs offer tax flexibility and create a vital firewall between your business and personal assets.
[00:07:26] - LLCs allow for separation of finances, tax structure options, and credibility with banks.
[00:11:03] - Failing to separate business finances can result in major IRS penalties and even losing your home.
[00:14:27] - Pay yourself a reasonable salary and take additional profit as dividends to reduce taxes.
[00:18:06] - Commingling funds hurts valuation - $13K in personal spending can cost $120K at sale.
[00:23:58] - LLCs are ideal for most small business owners, especially those making over $60K annually.
[00:32:35] - Life insurance and annuities can secure your business in succession or ownership changes.
[00:50:57] - Track your net worth yearly to measure real progress and business impact over time.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: www.youtube.com/watch?v=JpHnWSHicMQ
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Jimmy Lea: If you're not having fun doing it, then you're doing it wrong. We're gonna have a great time. We have a phenomenal discussion gonna be happening here. Donny, do you wanna kick it off with any words in the beginning here or what? What? What's your M.O.
Donny Seyfer: M.O. Well, I just wanna say thank you to the institute for agreeing to do this for us.
Donny Seyfer: It's been something we've talked about for a while, and Jimmy and I met up at APEX and SEMA and I said, Hey. How about we do a session, because we've got some, we've got members who've had some really interesting things happen to their businesses and I said, I told 'em, let's call this thing how to lose your business in two minutes, and they're like.
Donny Seyfer: Maybe we better not do that. So I thank you guys for doing this for everybody and and everybody that, that showed up to listen. I'm gonna turn it over to you and just listen in.
Jimmy Lea: Nice. Awesome. Well, thank you for being here. And thank you for meeting up at the conference.
Jimmy Lea: That was super awesome. We, we catch caught each other there in the I think it was in the elevator, the escalator we were coming down. Donny says, Hey we really wanna do this webinar about, we gotta help our shops and our companies and our businesses and our members. They're losing their business.
Jimmy Lea: They're operating dangerously. And I said, oh, so you're, you want something around the lines of how to protect your home? How do you not lose your home in 30 seconds? 'cause there's so many businesses out there that are operating without the protection of a corporation. And that's what we're gonna talk about here today is essential steps to save your home and save your business.
Jimmy Lea: Joining me today in our webinar is Wayne Marshall. Wayne is with the Institute. We are excited to have him here with us as our interim CEO. Thank you for being here.
Jimmy Lea: Yep. And everybody who's aware Cecil Bullard has been through some surgery. He is in recovery. He's doing extremely well. He's been into the office twice now.
Jimmy Lea: And it was only a week and a day ago that he had some brain surgery. So that is one resilient. Resilient man. Pretty amazing. Pretty amazing. This is to be an interactive webinar. Interactive webinar in that we want to know what you are thinking. We want to know your questions. You've got questions.
Jimmy Lea: We've got the answers. We're gonna talk a lot today about. Corporations and incorporating and how to do it, why to do it, what are some great ways to do that? To, because this is gonna help to protect you and that's what we wanna do here, is to be able to protect you. So Wayne, we brought in Wayne.
Jimmy Lea: Wayne I have your slide deck here, so when you give me the signal, we'll make it happen.
Wayne Marshall: So, yes, you can go back.
Jimmy Lea: Got it.
Wayne Marshall: So it's an honor to be here because when you stop and look at, you can look at the statistics too. Come from the Department of Labor. 95% of all businesses that are in our country operating today do $3 million, is less in revenue.
Wayne Marshall: So when they say the small businessman is the backbone.
Jimmy Lea: Oh, it totally is.
Wayne Marshall: It really is. When you look at this and you start thinking about how small businesses start and grow and they get going, many of 'em do start just as we see in our industry.
Jimmy Lea: Oh yeah.
Wayne Marshall: As a small might be one person, two people, and eventually they start to grow and they start to increase those revenue.
Wayne Marshall: But it becomes really critical and very important whenever you get started that you start doing things and you build the right foundation. So that when you get ready to take some of those next steps and you start to add an employee, or you might say, I want to have my own facility or own building or property, that you make those moves that put you in the right position legally,
Jimmy Lea: yeah,
Wayne Marshall: that gives you the right things you want, but also that you start giving some forethought to the right moves you want to make, so you put yourself in the right place, taxable. Because like me, I don't want to pay any more tax than I need to. And there's things you do when you start thinking about that corporate structure that can and will make a difference.
Wayne Marshall: And we're gonna point out a few of those things for consideration. And also hopefully through some of this we'll be able to look at this. It gives us some of that scalability.
Jimmy Lea: Yeah.
Wayne Marshall: Of where we began starting small, but giving us the opportunity to go and get it up to that bigger level that we wanna get into.
Jimmy Lea: We want to, we wanna, we want to grow the business. We want to be protected by the business. We want to protect you on the business as well. And for those of you who are in the audience, you're listening to this live the q and a in the bottom section of your window for the zoom in the q and a.
Jimmy Lea: That's where you want to put in your questions. And just to make sure that this works for everybody. I wanna give you a shout out, go to the q and a and type in where you're joining us from today. If you wanna put the name of your shop, your business your mobile business at city and State, love to give you a shout out.
Jimmy Lea: I wanna make sure that this q and A is working. So if you're listening, yes, we do want you to type that in there. Virginia. Got Bruno from Virginia. Kyle from Crystal River, Florida. Oh, you guys are awesome. John from East Ohio. Lawrence in New Jersey. Rock on. Thank you so much you guys. Yes, it is definitely working now.
Jimmy Lea: Jacob Bell. Jacob Bell from J Tech Automotive Solutions, Tucson, Arizona. Jacob, welcome, glad to have you here with us. Jeff from St. Paul, Minnesota and Jeremy from Columbia, Kentucky. You guys rock. Thank you so much for being here. Thank you for participating. You've got questions, we've got some answers.
Jimmy Lea: We've got a lot of really great information to help protect you, help protect your home, help protect your future retirement, your future of everything.
Wayne Marshall: Benefits.
Jimmy Lea: Because you don't want to lose everything because of a mistake, an accident, and the way to do that is to protect yourself.
Wayne Marshall: So let's jump to this first slide. Many people are very familiar with the different structures that come.
Jimmy Lea: Put your mic a little closer?
Wayne Marshall: Is that a little better?
Jimmy Lea: Yeah. Richard's saying can't quite hear. And this is Wayne Marshall. I know you think it's Cecil. Cecil had surgery a week ago. This is Wayne Richard. No. Jeff. Jeff. Can you hear Richard better?
Jimmy Lea: I mean, Richard, can you hear Marshall better? How's that, Michael? We good? Okay. Rock on.
Wayne Marshall: So let's jump to that first slide that we talked about. Most people are very familiar with some of the different structures that are out there, and most people at the small businesses are taking advantage of just putting together an LLC, and we all are familiar with within that LLC, there's a lot you can do, but on top of an LLC, you can also do an escort.
Wayne Marshall: Which is a sole proprietorship, or ultimately you can have a C court. C Corp are usually regulated to more of the larger companies and the things you're gonna do. And what I've always done, I've had and started and sold many of businesses in my career and I've done every one of those as an LLC.
Wayne Marshall: And one of the things that's really great about that LLC is we're saying at the very top, it's gives you limited personal liability. It becomes that firewall and that shield from you and your personal. Your home, your savings, all the other things to what you're doing on a business. So those debts and those things that are going on there can not transfer over and affect you on a personal level, and that's what you want to do because you never know when something happens, especially when you get a little larger.
Wayne Marshall: You might have an employee or something else could go on within those that can affect your company and that limits you from having anything cross over into your home or putting in at risk. It also gives you a lot of tax flexibility that you can pick how you wanna do your taxability of the income and the money that you can make on that.
Wayne Marshall: If you're in an LLC, you can choose to file as a business as that LLC. You can choose to file as a sole proprietorship or you know, the S corp. And you can even choose in an LLC to be incorporated and fire taxes as if you were a C corp. Obviously you want to probably stay to where it's the most easiest, and we'll talk a little bit about, and I've got a few key things that we'll be sharing as we get into it.
Wayne Marshall: The other thing that's nice about an LLC is there's less formality or compliance requirements that you come into. If you take a C Corp as an example, many of your large corporations are C Corp. There's a tax. Ability of it that's higher than what you're gonna get as a personal business owner. And the other thing of it is that you're gonna have much more structure, in a lot of cases, even the requirement to create shareholder board meetings and other things that can come into play.
Wayne Marshall: One of the other things that's really nice about once you start forming your legal corporation or your LLC, is you enhance your overall credibility, but you bring legal protection. So think about what you're doing and you don't want to be sitting there and have a, your. Business finances, co-mingling with your personal finances.
Wayne Marshall: If you create an LLC, you're gonna get a tax EIN number. You take that EIN number, you can go to your bank. You can then create that bank account. You don't co-mingle your monies. You keep it separate, which again, keeps you in that credibility and legal protection because you can start talking about and how you're gonna receive in the handling of those funds.
Wayne Marshall: And then the last thing that we talk about is very flexible ownership and management. Just because you. Start the LLC, you can have what they call a manager managed LLC. Someone else can manage it, someone else can run it for you. As you get bigger and you say, I don't want to sell my business, but I want someone else maybe to run it now.
Wayne Marshall: And you can have a manager run the LLC that you still own. And it gives you that flexibility where obviously when you get in some of the other absentees, you don't get all that flexibility and there's much more compliance that you have to deal with.
Wayne Marshall: So those are some of the key benefits of, and the most and biggest is number one, you wanna create that firewall.
Wayne Marshall: You want to separate your business life, business, money, all the things that go on from your home. So you don't get into a litigious situation where someone can tie it all together. You can say, Nope, everything stops with the LLC.
Jimmy Lea: Yeah. Ha has have the, do you know of any situations where someone was operating as a sole proprietor?
Jimmy Lea: And they got into a sticky situation. Do you know any of those situations?
Wayne Marshall: Most people that I have seen, yes I do.
Jimmy Lea: Yeah.
Wayne Marshall: And most people who have not filed and done, they end up in a tax scenario. And the IRS, they get kind of funny with their money and they think they always gotta have it. And if you don't keep those two things separated, which comes down to some of the things that we're talking about in number four and five.
Wayne Marshall: You got that flexibility, you get credibility, you get the bank account set up. Right. You can keep those things where they don't look at it in a funny way. Yeah. So because he never separated out and you just kept running everything through him as a person under a social security number, because you don't have a tax number of an EIN.
Jimmy Lea: Right.
Wayne Marshall: The business now it's gotta go to your social security. Yeah. He ended up about 400,000 in the rears with IRS. Oh boy. Lost his house, lost everything. 'cause he didn't have the firewall.
Jimmy Lea: Oh boy.
Wayne Marshall: So they don't like that?
Jimmy Lea: No, they don't like that. They don't like that at all.
Wayne Marshall: That's probably one of the more extreme cases.
Jimmy Lea: Yeah, that would be an extreme case, but that's also what can happen if you're not set up right.
Wayne Marshall: That is correct.
Jimmy Lea: Okay.
Wayne Marshall: Very much correct. So let's jump into, if you want, we can jump to some of the tax benefits. I did share, and I know this slide is a little bit. Busier than the other. But the first thing, and one of the biggest benefits of the LLC is that you have pass through taxation.
Wayne Marshall: And what happens is if you're a C Corp, as an example, you have to pay a 21% corporate tax, but then you gotta pay tax again on the income that you make. Soon end up paying tax on it twice.
Jimmy Lea: Right?
Wayne Marshall: And if it's just passed through, there is no business tax. It only passes through you and then it comes back to your personal taxes when you file, where you'll be getting your K one or other things.
Wayne Marshall: And if you work with any of your local, a county professional or tax repair, they can help you work through these things. That can help you do, but it helps you on your tax standpoint. Which is a good thing to have. The other thing is obviously you can have the, we talked about it earlier a little bit, was very flexible tax classifications, and then you can decide.
Wayne Marshall: Most people, once they get into an LLC, they keep it down to a sole proprietorship or partnership...
Jimmy Lea: Right?
Wayne Marshall: If you bring someone in and they don't do anything with an S or a C, even though you could. But you wanna avoid that begin 'cause of the taxable aspect of what you're gonna get and you can get into a lower tax bracket, right?
Wayne Marshall: That you want to keep. Obviously if as soon as you become an LLC there's a lot you can start running through, that becomes deductible business expense. So many of us people we've o and I did it many do you start thinking of having a company vehicle.
Jimmy Lea: Yeah.
Wayne Marshall: Other activities that go on. You maybe need a new computer or laptop.
Wayne Marshall: Sure. Am I gonna use it at home? Yes. Am I gonna use it for business? Yes. I'm gonna use it as a business deduction. And there's other things that can come into play that helps. Because now that becomes a deductible expense. You don't have to pay tax.
Jimmy Lea: Because it's a business expense.
Wayne Marshall: Because it's a business expense that you can come into.
Jimmy Lea: Yeah.
Wayne Marshall: Obviously there's a self-employment tax savings. There's things that can come into play here that really becomes nice under the LLC. Okay. And I know we tell a lot as I coach people also, we tell them this a lot, that it pay yourself a reasonable salary.
Jimmy Lea: As an owner?
Wayne Marshall: As an owner, but take that additional profits at distribution because if it's a W2 income that's taxed at one rate.
Jimmy Lea: Yeah.
Wayne Marshall: Dividends or profits. If you do a distribution or an earning payment out, that's at a lower tax rate.
Wayne Marshall: So as you start to go up, and if you get to a point. Like I was, we tell some of our coaching clients, Jimmy, is we get to a certain point that I tell people, if you're gonna pay yourself about 90,000, talk to your tax professional.
Wayne Marshall: Don't exceed that. Talk to 'em about doing dividends. If you're having a really good year,
Jimmy Lea: yeah,
Wayne Marshall: pull it out as dividends 'cause it's taxed at a lower rate and it won't take you to the next tax bracket.
Jimmy Lea: Nice.
Wayne Marshall: So it's a way to also help save money and not give it to. IRS keep more of it in your pocket and or reinvest in your company.
Wayne Marshall: The other things that have happened here in the last few years is there's been some different things that have passed legislatively that, and again, those tax professionals can help you get into the qualified business income deduction, along with some of the tax cuts and job acts that can help qualify you for a one time 20% deduction.
Jimmy Lea: Yeah.
Wayne Marshall: On different income. Because they're trying to help the small business person keep the money so they can reinvest. 'cause again, I go back to 95% of all small businesses. Or what we have in the United States that is the backbone and the more that we can put in their pockets, the government's saying that's more reinvestment, that helps them bring more money back to the IRS eventually.
Wayne Marshall: 'cause they're helping to grow the economy.
Jimmy Lea: Yeah.
Wayne Marshall: And that's a significant tax savings too, to give.
Jimmy Lea: There's a I think there's a misnomer or a misconception within the industry that says. I as a company owner, as the corporation owner, I can't take a paycheck. Is that true?
Wayne Marshall: No. You wanna, like we said, you wanna be really mindful of how much you take,
Jimmy Lea: right?
Wayne Marshall: That can put you into a higher taxable event than if you keep it lower and it'd be no different. I mean, as small business people, we start to grow. And I started in rented space, some of my companies. Eventually, I got to a point I said, you know. Instead of paying rent, I'd rather own and let it help pay for the mortgage and create more wealth.
Jimmy Lea: Right.
Wayne Marshall: And change my overall net worth. 'cause now I have commercial property that I've bought. So again, I started another LLC that owns the property that I then now pay to them out of the first LLC, the company. And now there's other things you can do that helps because I can also pay extra to the property LLC and the IRS, for the most part, if you're paying an extra 15% above what the going rate is for a lease, you can put that into a maintenance fund.
Jimmy Lea: Sure.
Wayne Marshall: It's not taxed.
Jimmy Lea: For the cams.
Wayne Marshall: Yeah, for the cams, but it's not taxed. So now you got more cash sitting there that's giving you the opportunity to do other things and reinvest.
Wayne Marshall: And do things within your property or other stuff. So again, a good tax prepare, a good account can help you navigate these waters. But it's so important to start and have those right business entities.
Jimmy Lea: Yes.
Wayne Marshall: Get 'em legal. Get the LLC, get your EIN, keep your money separated. Your personal or business don't co-mingle. That can create you issues, but you can start to create and it'll improve your overall net worth. And. Build it.
Jimmy Lea: What advice would you give the shop owner or the business owner that currently is commingling their funds?
Wayne Marshall: You're hurting yourself.
Jimmy Lea: Yeah.
Wayne Marshall: So think about it this way and we I talked to one of our coaching clients and I'm looking at his p and ls and we're talking, and one of the things he's trying to do is increase the overall value of his company.
Wayne Marshall: He wants to, in the next three to five years, sell his company. Any good person that's gonna come in and do their due diligence or the discipline to look at the financial is gonna go back to three years. Well, we're going through and I said, well wait a minute, gentlemen on this. I won't say his name, but I said, I see $13,000 that was spent at Walmart.
Wayne Marshall: And he goes, well, yeah, that's my groceries, that's this, that's that. And I said, okay, I get it. And you can do that. And there's some gray area.
Jimmy Lea: Sure.
Wayne Marshall: But here's what it meant. I, and I explained to him, I said, okay, so you spent 13,000 this year, and if we go in the arrears three years, and you do that every year, so that's 13, that's 26, that's 39,000, let's say $40,000.
Jimmy Lea: Okay?
Wayne Marshall: And you're trying to sell the company and you want to get three x or four x on your ebitda, that was $40,000 that used in personal, that was really profit for the company. Take that 40,000 now times three X ebitda. That's $120,000 less you're gonna get when you sell your company.
Jimmy Lea: Ouch.
Wayne Marshall: And all of a sudden he is like, yeah, I'm not gaining anything by doing it through the company. I said, you're not.
Jimmy Lea: No. Clean up your clean up your finances.
Wayne Marshall: Don't mingle 'em together because where it can hurt you, especially if you're trying to get to a point that you want to sell your company.
Jimmy Lea: Yeah.
Wayne Marshall: You don't want any of those personal expenses because that's gonna make the company not look as profitable and that might help you today in taxes.
Wayne Marshall: But that $13,000 is gonna end up costing him 120,000 or more 160 if he got four x. Ebitda. So that is why you want to be really careful.
Jimmy Lea: Yeah.
Wayne Marshall: About how much of some fringe personal things.
Jimmy Lea: Yeah.
Wayne Marshall: And you can do it.
Jimmy Lea: Right.
Wayne Marshall: You're not gonna get in trouble with the IRS unless you get really aggressive on it.
Jimmy Lea: Right.
Wayne Marshall: But if you're thinking you're gonna be in a position to sell, or you're gonna bring a partner in that maybe wants to buy into your business, you wanna look the best you can look.
Jimmy Lea: Yeah.
Wayne Marshall: And you wanna maximize those bottom line earnings. That's where it's hurting you, and that's where it can really multiply up big.
Jimmy Lea: So at what point do you start the process that says, Hey, you know what, I'm ready to sell my business now. Should we start today with that process? Or do you start two years down the road.
Wayne Marshall: I tell everybody that we talk to, with our clients, if you think you're gonna want to sell your business and you tell me I'm gonna do it in the next year.
Wayne Marshall: We can do a few things, but we're not gonna move the needle much. Yeah. You need almost a minimum of three years to really clean it.
Jimmy Lea: Yeah.
Wayne Marshall: And make year after year look good. Right. 'cause when they look, they're gonna take those three year numbers, they're gonna average it out, and that's where your multipliers gonna come from.
Jimmy Lea: Oh, for sure. I hear it said all the time that three to five years.
Wayne Marshall: Yeah.
Jimmy Lea: Three to five years is what it takes. But really and truly. You should start today.
Wayne Marshall: Yeah.
Jimmy Lea: I started my business yesterday. Good. A good habit. Start today and build that habit.
Wayne Marshall: Yeah.
Jimmy Lea: Okay, good.
Wayne Marshall: Yeah. So one of the things, I don't know, do we, I think we had some questions there. Anything here that we should stop and talk?
Jimmy Lea: Let's see if we have any questions yet.
Jimmy Lea: Nope, no questions yet.
Wayne Marshall: Alright. Just wanna make sure, because I see on the screen here and I see something popping. I'm like, oh no. It's big deal. One of the things that we get asked, and it's like one of our coaching clients right now jimmy is he's going from a C-corp and he's moving it over to an S-corp. And a lot of this is because of the tax taxation aspect of, and he's also in a position, just as we talked about, that he's trying to get ready to sell his business
Jimmy Lea: Right.
Wayne Marshall: And transfer out. And he's trying to maximize his income.
Wayne Marshall: And with a C corp, you're limited. On what you can take out of it. And I, and obviously it's gonna be just on your W2, if you get into an S or you get into some of the things we're already talking about, where you got flexibility, he can get more cash out in earnings in the short term. That will help maximize and then also put 'em in a better position.
Wayne Marshall: Because most companies, unless you're a large company, and when I say large, I'm talking 50, a hundred million and more, you don't want to be a C Corp and it's gonna limit his. Possibilities of selling without restructuring his company. So he is in the process of doing it. So one of the things we get into conversations with him here recently, which I wanted to share a little bit more, which is on that next slide, is, which is right for you?
Wayne Marshall: And again, it's like he's doing, we started talking about these things, but at the end of the day, I says, you know, again, your accountant knows better what should be done, how to do it. They know your personal situation, but. One of the best things, again, if you're just in a default LLC taxation, you can see what happens when you sit there with the pass through.
Wayne Marshall: And basically when you're a self-employed, you're at a 15.3 tax. That's a lot lower than what's gonna be on a W2.
Jimmy Lea: Oh yeah, for sure.
Wayne Marshall: And those are some of the benefits that you get when you start looking at this thing with your profit pass through on your personal taxes and some of the things you can do with the earnings and it, I mean, and it's perfect.
Wayne Marshall: Perfect for that small business owner I. Without employees for most part even. Or if you got one or two employees, it's the perfect place to be.
Jimmy Lea: So that single member LLC.
Wayne Marshall: Yep. Keep it simple. Keep it simple, and. Like I said, there's the benefits of if you go to and you start getting employees, you start making more money, you do other things, then you wanna start maybe looking at filing as an escort.
Jimmy Lea: Okay.
Wayne Marshall: Sole proprietorship. Then there's also partnerships you can look at and we'll talk a little bit about, but what you can start doing here, especially if you think your earnings are gonna be over 60,000. In the course of a year, you have that ability, which I was talking about earlier. If you can take so much as income and then take another portion of it as a distribution or an earning or a dividend, yeah.
Wayne Marshall: People will talk about, that's going to put you in some of your best spots,
Jimmy Lea: right.
Wayne Marshall: To maximize. What you get in income and put cash in pocket compared to how much you're gonna end up paying in taxes and that will reduce your self-employment tax. Again, there are some things you gotta do, obviously to set up payroll, which I've mentioned here.
Wayne Marshall: You're gonna have to for file in form 25 53 with the IRS 'cause you got employees. There's gonna be other things that gotta be done around that. But again, it's about keeping your tax bill low, keeping the money in your pocket so you can reinvest. Everybody's got a unique situation, so I know I say it multiple times.
Wayne Marshall: Talk to your tax preparer, talk to your professional accountant. Ask these questions. Yeah, ask what's best for me. I'm, I think this year, take 2025. I'm having a really good year. Yeah, I think I might make $120,000. They're gonna say, that's great to know because here's what we're gonna do. I'm gonna do this, we're gonna do this. Take this much in distribution, pay this much in your quarterlies off that distribution, what have you, and it'll put you at the right spot at the end of the year, minimizing that exposure.
Jimmy Lea: Beautiful. Now speaking of talking to your tax professionals the question came up, what is an ebitda?
Wayne Marshall: Oh, EBITDA is earnings before interest taxes and amortization.
Jimmy Lea: Right. So what does that mean?
Wayne Marshall: So you got your earnings?
Jimmy Lea: Yes.
Wayne Marshall: We all know which comes to your bottom line.
Jimmy Lea: Right?
Wayne Marshall: And then before interest, if you got interest loans that you're paying, which is a deductible, and then you got taxes you gotta pay. And then if you take that depreciable asset, amortization of it as it's going down, because all of those are different things that write off that change what the net is.
Jimmy Lea: Okay. That add to it. So is the ebitda. And these are questions coming in. Is EBITDA the same as net profit?
Wayne Marshall: It depends on how your books are set. But yes, they can be.
Jimmy Lea: Pretty dang close.
Wayne Marshall: Pretty dang close.
Jimmy Lea: Yes.
Wayne Marshall: But usually when you get into your ebitda, you're taking your, so people are using QuickBooks.
Wayne Marshall: And you get your QuickBooks set up and you can run all the different categories and you got all your different things you're set up, you got income, you got expenses, then you got some, all those miscellaneous things. And then you got earnings. This money's left over. Some of the things, unless you accountant is going into QuickBooks and set up your depreciation schedule, you're not gonna get to the EBITDA at your net.
Wayne Marshall: So it will change some. If you've got, so if you had a property LLC, you're gonna have big amortization of your building because you're paying a lot in interest. And you got a lot of that's flowing through. So it can change the bottom a lot, but usually most small business people, what they've got, maybe they've got a vehicle.
Wayne Marshall: Which isn't overly, I mean, they're expensive, but they're not over the top like a building. It might be a lift or like for us, a lift and alignment rack, some of those things,
Jimmy Lea: right.
Wayne Marshall: You're gonna put it into a depreciation scales or you're gonna amortize it out
Jimmy Lea: right
Wayne Marshall: over time, depending in, but there are some things, which many people are familiar with, you can do accelerated depreciation.
Wayne Marshall: There's other things you can do, right? Again, a good preparer can tell you when you should take it. Right. And when you shouldn't.
Jimmy Lea: Right.
Wayne Marshall: And when we wanna schedule it out, or we wanna just go ahead and take it all in the first year and just be done.
Jimmy Lea: Nice. Beautiful.
Wayne Marshall: Just depends on how much money you're making.
Jimmy Lea: Oh yeah, for sure. Okay, so one more question here about the LLCs. You talked about a manager to run your business.
Wayne Marshall: Manager managed LC they,
Jimmy Lea: yeah. You said as an LSE, you could have a manager run your business. Could you review again, what are the tax. Overall benefits of doing it that way of having a manager run your LLC?
Wayne Marshall: There's not, so there's not really anything on a text, right? 'cause it's still gonna float through. Correct. Just because I started the LLC and maybe I'm saying, you know what, I'm gonna still work, but I'm tired. I'm gonna have Jimmy. Okay. As my manager managed LLC, I can put 'em on the legal papers, he can get all the legal docs, do all the things that need to be done.
Wayne Marshall: IRS and so on and so forth. And he's got that power and authority that you're gonna have in your operating agreement. But I still have to take care of all the taxes and the things that are being done. Now if I'm an LLC, and one of the things we talked about was flexibility of how we can pay. I can pay Jimmy however I wanna pay him and not worry about certain things.
Wayne Marshall: Where if I was a very structured like a C Corp. You got shareholders. It's very structured and everybody's paid whatever. So as an example, if we were in a C corp Yes. And we owned it 50 50, we'd have to split the earnings in half.
Jimmy Lea: Oh wow. Yeah.
Wayne Marshall: But if he's here, let's just say you're still 50 50. I'm doing not doing squat.
Wayne Marshall: I could pay Jimmy 90% of the earnings. I can do anything I want to do under the LLC. You can't do that in a C court. It's very rigid based on the shares and the percentage and so
Jimmy Lea: on and so forth.
Jimmy Lea: So I think a lot of the members here for Nasiff are mom and pop shop shops, mom and pop structures, mom and pop business you know, pop is out as the technician.
Jimmy Lea: He's either working on cars, popping locks, working on vehicles. He's in the shop. Mom's up at the front. She's doing the books. She's doing the counters, right? So in those situations. What is a good LLC for a mom and pop structure business?
Wayne Marshall: Well, this gets into some other things that could come into obviously trust and wills and
Jimmy Lea: Yes.
Wayne Marshall: Other things that could be considered with obviously transferring of Yes. Now most people. I'm not trying to take a deep dive into the legal language of, but most people, when you sit there and you'll hear about setting up a corporation, you've got articles of incorporation or you're gonna have an operating agreement.
Wayne Marshall: They're very similar. It's not. Just how people define them. Yes, it's really not a big difference. But part of all those agreements, we'll also have in there certain things under buy, sell, things that, how you would transfer what happens up on death of a partner or an owner in, if you have a husband, wife, I can give you a strong argument because you've created the right firewall to put both on.
Wayne Marshall: If you want to do some things that put you in favor with female owned or whatever, maybe make the Y 51, 49.
Jimmy Lea: Yes
Wayne Marshall: to keep that as you wanna do. But in that we'll also have some of the structure about the passing of others, which you can then say, how does that affect the outstanding stock, which can easily then if you create the right trust, that everything can move into the trust.
Wayne Marshall: And again, a good legal professional can help do. But, 'cause the one thing is one of my businesses, I had four partners, great guys, but I told all, every one of 'em. I says, I don't want to be a partner with your wife.
Jimmy Lea: Right?
Wayne Marshall: So if something happens to you, we're gonna write in there that upon your passing your shares, go into a holding state.
Wayne Marshall: You have no voting right. You don't have anything 'cause, but we're gonna take care of your wife correctly. We're gonna do the valuations and we're gonna buy her out and give her the money that she should have. Nice. As an example. Yeah. But I don't want any of your wifes jumping in actively to the business.
Wayne Marshall: Not trying to be a jerk, but
Jimmy Lea: No. And when my dad has his business with his partner, he had a a death benefit, a key employee benefit. So if you got a mom and pop situation. And mom was to pass away or dad was to pass away, right? You can have a life insurance policy on that person. That is correct.
Jimmy Lea: It comes to the the business.
Wayne Marshall: And again, I, you know, which I did that, we did that too, right? So we did the company bought, we did it instead of a keyman policy with obviously death benefit. We did it in a combo with an annuity. So it was a way to, and again, talk to a professional on, but there's a way to structure this.
Wayne Marshall: That we were buying The death benefit. Yeah. If something happened, right? That's right. We were the beneficiaries. We got the money and then gave the money to the spouse 'cause that bought the shares. So they still benefit.
Jimmy Lea: That's perfect.
Wayne Marshall: But the other thing we did, what have you doesn't die. So what we did is we started putting the money into an annuity with the death benefit, which the policies are there.
Wayne Marshall: We're paying more. And we're getting a return if, which happened. None of us did die, fortunately, never had to deal with, but the beauty of it was when we sold the company, every one of those annuities came back to us and it became deferred income.
Jimmy Lea: Oh, that's beautiful.
Wayne Marshall: And it was a way, and again, you've gotta talk to a person to get it set up right?
Wayne Marshall: Yeah. That you can do it to keep the tax ramifications out.
Jimmy Lea: Right.
Wayne Marshall: But it ended up being that we were putting not a ton of money, but we were putting about $10,000 in each. So pretty soon we got up there and before we know it, it's worth a hundred thousand dollars. That's, it's multiplying in value
Jimmy Lea: Right.
Wayne Marshall: And growing off the annuity that's given a return.
Jimmy Lea: Oh, that's beautiful.
Wayne Marshall: Instead of money just going away. Yeah. I needed a death benefit, but we also made it to where it had value that each of us got to benefit with a, basically a deferred payment.
Jimmy Lea: Nice. Of income. Nice, excellent.
Wayne Marshall: Small little thing to get.
Jimmy Lea: So one more last question on the S corp before we go past this one questions coming in that says, under the S corp, is there a benefit of establishing a home office? And this person you may need to type in a little bit more to expand on this idea. I does this mean you have brick and mortar and you're establishing also a home office, or you're working solely from your home office and want an S corp, which I have that.
Wayne Marshall: Yeah. So you can do, it's again, it's like anything in life. There was 20, 30 years ago, people were abusing this privilege with the IRS code and there was a lot of audits happening from people I know. 'cause they all of a sudden they were putting their dog on as part of their expense. 'cause it was a watch dog.
Jimmy Lea: Oh gosh.
Wayne Marshall: Yeah, no. People do crazy things and then they wonder why they get audited.
Jimmy Lea: Yeah.
Wayne Marshall: And so the things I would say, 'cause look, I do it. I got a home office, right? You've seen, you know where my home offices and so yeah, I take a percentage of, and I can take a percentage of electricity, water, internet, all the things that I need to run my office.
Wayne Marshall: It's part of my tax.
Jimmy Lea: Yeah.
Wayne Marshall: You know, deduction and write off that I'm doing. You just gotta be careful. Don't take advantage of the code. But yeah, you can do it again, your tax preparer, if you tell 'em how many square feet based on all these things, they can add it up. There's a, they've got the formulas .
Jimmy Lea: There's a formula that they use.
Wayne Marshall: They've got the formulas that they can use to help you get and stay clean with the IRS.
Jimmy Lea: Beautiful.
Wayne Marshall: But yeah, do it. Might not be a lot, but hey, four or 500 bucks is four or $500.
Jimmy Lea: It all adds up.
Wayne Marshall: Amen.
Jimmy Lea: All right, well good. So are we going on to three?
Wayne Marshall: Yeah, let's go on to the next. So I mean, the last other one that we've got is obviously C Corp.
Wayne Marshall: No one's gonna do it. I just threw it up here just so you can kind of see.
Jimmy Lea: So everybody knows it's still bad.
Wayne Marshall: Why C- Corps really suck unless you're big. Because you can see it has a flat corporate tax rate at 21%, and then if you get a dividend, you got again. You gotta pay tax on it over again. So the company's paying tax, you then get a dividend of what's left and you gotta pay in, you know, a personal tax on it again, along with the tax that was coming outta your paycheck on a W2.
Wayne Marshall: And it's a very complex and there's a lot of formula formalities and garbage had nobody wants to do. The only reason that people choose this is if they're starting to really grow and you want to attract investors, you want to have obviously scale. And there are companies I know I. A few years ago I consulted with a company over in Illinois.
Wayne Marshall: Yeah. They did convert, but they were 55 million privately held. They were growing and they were wanting to get to a hundred million. When you got to a hundred million, they were gonna go to a public offer in a small one.
Jimmy Lea: Nice.
Wayne Marshall: And that's the reason you do that stuff? 'cause it gives you structure and governance
Jimmy Lea: Yeah.
Wayne Marshall: That allows you to do, but.
Jimmy Lea: It's there. It's available. Yeah. It probably past what we're doing.
Wayne Marshall: Yeah.
Jimmy Lea: All right.
Wayne Marshall: Obviously the best things that we get into when you get all done, when you look at corporations is obviously you can deduct everything, take advantage of retirement plans, other things that could come out of you can use different tax credits and things for the hiring end of people.
Wayne Marshall: You know, you gotta look at what state you're in. There's things around some states have no income tax. You know, you look at Nevada, where you live.
Jimmy Lea: Yeah.
Wayne Marshall: Florida doesn't, there's other things that you,
Jimmy Lea: Wyoming,
Wayne Marshall: consider, yep. Other things that you wanna look at in there. At the end of the day, it's like we talked, it really comes back to looking at your own personal situation, the size, how much money you gonna make, how big do you want to get?
Wayne Marshall: Talk to your professionals. Most everybody's doing that and they're putting together the different things with their tax preparers to help them ask those questions. Say, I'm gonna have one heck of a year. What should I do? How should I prepare? And try to have those conversations early in the year.
Jimmy Lea: Yeah.
Wayne Marshall: If you get to the beginning of July or the, you get to that third quarter if you've paid your. Obviously you paid your quarter quarterly estimates based on what your income's going to be at that point. If it looks like it's going bigger and stronger and your tax repairs already giving you your coupons
Wayne Marshall: Go back to 'em and say, look, I'm having one heck of a year. How can I manage this to minimize my tax exposure? Should I change what my income is on my. Income or payroll? W2.
Jimmy Lea: Yes.
Wayne Marshall: Should I change dividends?
Jimmy Lea: Yes.
Wayne Marshall: Should I leave the money in?
Jimmy Lea: Right.
Wayne Marshall: How does that, because again, it's gonna pass through and we talked about the 15% tax rate for businesses that's, you know, up on the LLC at the top. At the beginning of all this. So Yeah. You know, just have those conversations and the goal here today. More than anything was just to have these conversations that, that you ask good questions when you sit down and that you start talking about, here's what I got going on, here's what I'm doing, here's what I wanna do, here's how I wanna set it up.
Wayne Marshall: They'll help you. It's just asking those questions.
Jimmy Lea: Yeah. And that, I think that's what we're really empowering everybody here with is the knowledge, the information to be able to ask those right questions. Yeah. Knowledge is power, but knowledge is also dangerous. Yeah. Especially if you think you know the right way to do it and then you discover, oh, holy crap, I did it totally wrong.
Wayne Marshall: Nobody wants those oh crap moments at the end of the year.
Jimmy Lea: Yeah.
Wayne Marshall: Or. It's happened to me because I didn't do a few years back. Yeah. You're sitting there and all of a sudden your tax repairs going yeah. We kind of missed the mark and you're gonna have to write a check for $20,000.
Jimmy Lea: Yeah, no, thanks.
Wayne Marshall: Or I've had the other side a few years back, I'm sitting down and I didn't do a good job. And he goes, you overpaid and you're gonna get a refund for $40,000.
Jimmy Lea: Oh, wow.
Wayne Marshall: And I'm going, you know what I could have done with that money if I had it every month and invested it or did other things.
Wayne Marshall: Oh, yeah. But I let the government hold on to my 40 some thousand dollars one year.
Jimmy Lea: Yeah. And did you get any interest on that 40,000?
Wayne Marshall: I got Zip zip.
Jimmy Lea: Ouch. All right.
Wayne Marshall: So I, I think I have one last slide that just says, Hey, you know, here's some things to consider. Obviously we talked about different states and certain states who have, well, some states have franchise taxes or annual fees.
Wayne Marshall: Don't live in California or New York. I apologize for any of you that are honest, that are in those states, but they're not business friendly. And obviously some states are right, more business friendly, but you know, real easy if you've got a low income business, just stay with your LLC taxation. Do the Schedule C.
Wayne Marshall: It's easy if you're starting to get up to moderate or higher, and that's 60,000 or more. Consider the, you know, the S corp and some of the things because it gives you flexibility of income. Distribution on a quarterly basis. If, hey, and God bless you guys, if someone gets big and they're gonna franchise them.
Jimmy Lea: Hallelujah.
Jimmy Lea: Let's go.
Wayne Marshall: We call a c -corp.
Jimmy Lea: Yeah.
Wayne Marshall: We call Jimmy and I, we wanna invest.
Jimmy Lea: We wanna make money too. At what point does it make sense to go to a C Corp? Is that based on the number of employees? Is that based on the number of locations? It's all dollars, yeah. Dollars driven. Yeah.
Wayne Marshall: If you get, if you start getting really big and you get multiple shareholders or you wanting to go public
Jimmy Lea: Yeah.
Wayne Marshall: And do other things.
Jimmy Lea: Yeah.
Wayne Marshall: I mean there you look at some of the bigger companies today, and if you go back and look at their history, I. They started out like we started out. I mean, you hear the stories of, well, apple and Microsoft start in garages. I now look at 'em today. But there was a point where they said, we're gonna go and we're gonna become a C corp because we're gonna get shareholders.
Wayne Marshall: We're gonna do this, we're gonna have shareholder meetings, all the other things that come with it.
Wayne Marshall: But we want to be big. And when you get that size, you don't care about 21% of what the corporate tax is. 'cause the revenue's so high. It's so big.
Jimmy Lea: Yeah. Oh that's phenomenal. So knowledge and information.
Jimmy Lea: So powerful questions, comments, concerns. Would love to address any of those other additional questions that you might have. Maybe there's something that's sticking out in your mind that, Hey, you know what about this situation? What about my situation? I'm a small mobile tech. I'm doing 6,000 a month.
Jimmy Lea: What kind of a LLC should I have? There's a question for you. How about that?
Wayne Marshall: I would just, I'd keep it simple.
Jimmy Lea: Just the simple LLC.
Wayne Marshall: I would do, I would do the simple one if you're wanted, if it's just you and you're self-employed. You're running your business. Well keep it simple like that. If you're having a really big year, 'cause I've known some guys who are running an independent one person business.
Wayne Marshall: They're making six figures plus, then you need to start doing some planning.
Jimmy Lea: So that's when you start looking at the S corp.
Wayne Marshall: Yep. Even if it's multiples because your income's getting so high.
Jimmy Lea: Yeah.
Wayne Marshall: And I. I didn't look it up. I should have real quick, but I know in 2025 it's somewhere around 96 or $98,000 you go to the next tax bracket.
Jimmy Lea: Right.
Wayne Marshall: So you know, this is again, where a good tax preparer is gonna tell you, look, we wanna look at this, pull this. And like I most, our coaching clients, oh my our coaching clients, as we talk, I tell 'em, if you wanna pay yourself, 'cause you know, and then see how your dividends are going. Your earnings are going start at about 90.
Wayne Marshall: If you want to go higher, that's fine, but again, talks to your preparer. Yeah. Start at 90, take those paychecks out and then look at what you're gonna do with dividends or earnings on a quarterly basis.
Jimmy Lea: Yeah. Yeah. We do know a couple of shops that are a single employee. The owner. And the owner is the phone, the computer, the wrench.
Jimmy Lea: Yep. And they're doing in the $400,000 a year range.
Wayne Marshall: I coaching with one.
Jimmy Lea: Yeah.
Wayne Marshall: He's trying to get his company in a position to sell.
Jimmy Lea: So he, is he currently as an LLC looking to go to S Corp or does he just because he's looking to sell? He's probably...
Wayne Marshall: so he was doing exactly what we talked about. Yeah. When I started the whole conversation.
Wayne Marshall: He was an LLC for his business. He owns the building personally, and I'm like. Dude, you've gotta get an LLC for your business or the building, the property. And then you need to pay yourself rent. And then pay yourself a little extra rent because that generates a little extra income. We talked all this through, so he got it done at the end of the year.
Wayne Marshall: So he started this year, 2025, a clean tax year. So he now has a property LLC. So if he sells his business, he can now create income off renting his bus, his building back out. So that can be ongoing retirement income for him and his family as he wants to go. As an example, he could also turn around, sell the business.
Wayne Marshall: Put that on a five year balloon, sell the building separate of and create a different income stream. Love it. And it changes some of those tax ramifications because the other thing you gotta start looking at and then plan for, even on a business, if the valuation goes up, there's still capital gains.
Wayne Marshall: And you also have capital gains as we're all familiar with on property. Yeah. Again, and it's same as he's done and I keep saying, but he talked to his local preparer and I said, here's the things you wanna ask. Here's some of the questions we wanna address that get you set right for your personal situation.
Jimmy Lea: Love it. Excuse me. No, some questions coming in from Jeff and Jeff, thank you. This is a really good question. The S corp breaks at $60,000. Is that $60,000 of profit or is that $60,000 of business? Revenue. After the owner gets paid, what? What is that? $60,000.
Wayne Marshall: So if you're gonna make 60,000 in profit or net. So let's just say for sake of argument, you did 400,000 in revenue. Yep. You paid yourself. 80,000.
Jimmy Lea: Okay.
Wayne Marshall: And the company still made over 60,000? That's where that would kick in.
Jimmy Lea: Oh, I see.
Wayne Marshall: So even if you wanna look at it, 'cause it's gonna flow to you on a sole proprietorship in that pass through, it's gonna show that you really made 140 or more thousand, maybe 150,000.
Wayne Marshall: But that's when you wanna stop and say, okay. If I pay this and I'm at this tax level, I don't want to get to some of the next tier. That starts to happen when you get over the 96, 98, you get to a hundred, I can't remember where the next one is off the top of my head. But it's like 120, something, and then it just continues and you're just gonna pay more. So this is again, where you wanna stop and go, okay, I want to have my taxable income here during the year so I don't pay overpay, and then take dividends and other earnings. You can, or you can leave it in and then talk about how you can reinvest and other things you can do with it.
Wayne Marshall: But that's where, that's how that all adds up.
Jimmy Lea: Nice.
Wayne Marshall: So it's not your income's separate of the 60.
Jimmy Lea: Beautiful, beautiful. Jeff, I hope that helps you out, brother. Cool. Good. Well, we're asking for final questions, comments, concerns.
Wayne Marshall: It went by fast.
Jimmy Lea: That I, it is like a flash man. And you know, I'm thinking of a client that we have in Texas.
Jimmy Lea: This is a shop that was struck by lightning flooded. Caught on fire. Yeah. Yeah. And and lucky for them that they were covered. They did have the right insurances in place. It's not even something that we're talking about today, but it is important. You do need to evaluate that. And there's been a lot of businesses that when they start, they have two bays.
Jimmy Lea: They have an insurance policy for two bays. Then they grow and they grow. And then there's a problem. And now that insurance policy that they set up originally doesn't cover. Four bays, six bays, eight bays, and then they get into a little bit of trouble. So lucky for this shop in Texas, they had all the right insurances in place that they were covered, right?
Jimmy Lea: And the trifecta within, I think it was within two or three weeks that they got struck by landing, caught on fire and flooded.
Wayne Marshall: Another thing, I didn't really, I should have said this earlier too, but one thing, if you start going down this road. If you don't do one, I do one annually, have done 'em for years.
Wayne Marshall: When I had my businesses, even still to this day, I do 'em do an annual personal financial statement.
Jimmy Lea: Nice.
Wayne Marshall: That list out all your debts, all your assets, the valuation of your business, everything else that you're sitting there, and you can see what your net worth is and how that net worth is changing year after year to year.
Wayne Marshall: Because it's a great scorecard. To just look at your overall, not only your personal financial health, but to even look at it from a bigger picture of your business and how everything is changing and growing. Because we, any of us as business owners, we work our butts off at times, and you sometimes wonder, am I really gaining, am I getting what I should get?
Wayne Marshall: It was always a nice thing to look at, and I'd try to sit down and then my wife and I would talk about it and I'd say, you know what? This is paying off. Sometimes it doesn't feel like it because you're just like, you're in the grind. You're in the grind. You're grinding it out. But when we would take the time and look and see that, but wait a minute, I did add this much to my 401k or my IRA or something.
Wayne Marshall: I did do this. We do pay down the building more that we were owning. We did this things and next thing you know, you just start seeing that growth and you're seeing that change and then you look at five years ago to there and you're going, oh my goodness. We are doing it well and we are making a difference in what we're trying to do today.
Wayne Marshall: So it's just a good exercise. I know we've, I've shared some things with the form I've used, I've sent out to others that I've coached with, and I say it is just one of those things to just, it's a good way to see am I going up or down? Am I winning, losing, and how it's, what's my overall health. That's what you're really trying to do.
Wayne Marshall: That's why we do what we do.
Jimmy Lea: Yeah.
Wayne Marshall: And try to, that's why we got into business for ourselves.
Jimmy Lea: Oh, so true. So true. So question from Jeremy. He's asking when you pay yourself, do you deduct taxes? I. I think there's two answers to this question, correct? Yeah, go ahead.
Wayne Marshall: So if it's W2, so it's an actual payroll.
Jimmy Lea: Payroll, yep.
Wayne Marshall: So when you think about all the normal employee deductions that you would have, social security, what have you. Yes. I would run that, and I'd run it actually through with, you know, you. QuickBooks can do it. If you're just a single person and you're using QuickBooks, it can help you get and deduct the right things and make all the right payments that you need to pay.
Wayne Marshall: And then the second is if you pull it out as earnings. Yes, that's where your tax preparer. If you guys kind of remember, you're gonna get a coupon. It'll be for the four quarters of you need to write a check to cover your dividend tax or what you're gonna take on earnings or what the earnings of the company might be, even if you don't take 'em out so you don't end up with a tax surprise at the end of the year.
Wayne Marshall: Hence, I had to pay 20 grand 'cause I didn't pay enough. Ouch. Quarterly's going through and then you gotta pay it at the end of the year. So yes, I, my normal W2, yeah, normal taxes, everything. You run it as you normally would. The others are done quarterly on a coupon.
Jimmy Lea: Oh, I love it. I love it. So big compliment to you from Jason.
Jimmy Lea: Jason says, right. Well, what did we do this time? Jason says, thank you so much. I now understand it's so much better than when my accountant tried to explain it. Wow. LLCs, SCORP, C Corp. Thanks. Yeah. Good job brother. Appreciate that. Thank you Jason. Yeah. Alright one more thing. And this goes from. First is from Jeff.
Jimmy Lea: Jeff is saying, does Wayne offer coaching services?
Wayne Marshall: Yeah. Yeah.
Jimmy Lea: As a matter of fact, we do. There it is. Matter of fact, we do. If you find this information interesting and inviting and educational, and that's really what we're here to try and provide for you is an education information knowledge. If you find it interesting, let's have a meeting.
Jimmy Lea: Let's see. If reach coaching would be something of value to your business, are you at a position that you're ready to do it? I knew of a mobile shop in Virginia that wanted to come on with the institute and he just wasn't ready. Just wasn't ready. It took him about a year and after a year, so I'm again at a show and he's like, yep, I'm ready.
Jimmy Lea: Let's go. Went from doing 6,000 a month as a mobile tech. To his first month, brick and mortar, $24,000 that month and started day one with coaching and training to make sure that he was doing it right. So big shout out to our friends there in Virginia.
Wayne Marshall: Well, that's noted. Everything. A guy, you met him, you know our guy from Canada, he started out with a mobile truck.
Jimmy Lea: Yeah.
Wayne Marshall: Truck mechanic.
Jimmy Lea: Yeah.
Wayne Marshall: And today he's got three mobile trucks and a 22 bay. He's gotten huge. That is huge. 22 bays each mobile and we've talked about it and we're working with him today and working on some things. But yeah, he talks about starting on that mobile truck to the point today, each mobile truck for him.
Wayne Marshall: 'cause he also does heavy earth moving equipment and construction equipment and service along with over the road diesel trucks. Each mobile truck's running about 400,000 in revenue.
Jimmy Lea: Wow.
Wayne Marshall: So he's getting 1,000,000 or 2 between his three mobile trucks. That's not counting all the stuff comes to the shop on 22 bays.
Jimmy Lea: Gotta love that. Gotta love that.
Wayne Marshall: Start with one mobile truck.
Jimmy Lea: Yeah.
Wayne Marshall: And there he is today.
Jimmy Lea: There he is.
Wayne Marshall: Great story.
Jimmy Lea: So those of you who are interested, scan that QR code first name, last name, email address. Let's set up an appointment. We can sit down and review your business.
Jimmy Lea: Review where you are. There's no obligation, there's no financial cost to it. So that's a free resource for you as well. Check out our website. We are the institute.com. We are the institute.com. A lot of valuable information on the website as well, our YouTube channel. There's o easily over 160 hours worth of knowledge and information that you could gain a master's degree in running your shop, your business, your mobile business that, that's gonna help you as a business owner.
Jimmy Lea: I. Available on YouTube. And that's a free resource as well. Any things that you would want to include in an offer that we can send to our listeners that are on this webinar today? Maybe the the five steps to a 20% net profit? Maybe a couple links to some videos that we've.
Wayne Marshall: There you go. Sure.
Jimmy Lea: Yeah.
Wayne Marshall: Let's make it happen, captain.
Jimmy Lea: Okay. Well scan the QR code. Make sure you, as you talk to our representatives, you say, Jimmy told me that you were gonna send me the workbook, 5% net, five steps to a 20% net profit, five steps to a 20% net profit. And there's a webinar that goes right along with that, where Cecil breaks down those steps and exactly what you need to do every step along the way.
Jimmy Lea: So with that, thank you very much. Appreciate the time, Wayne. Thank you to you, brother. Appreciate it. Great knowledge, information you got another shout out here. It went away. Lemme get to it real quickly because Jeremy says Thank you guys. This has been a real eye-opening experience. I awesome.
Jimmy Lea: Lots of great information. Definitely gonna make some changes. Jeremy to you. Thank you very much, brother.
Wayne Marshall: Glad to help. Love paying it forward.
Jimmy Lea: Yep. That's what we do.
Wayne Marshall: All right.
Jimmy Lea: And with that, we'll see you again soon. Thank you.
![114 - Grow Faster, Go Further – The Peer Group Advantage [THA 423]](https://pbcdn1.podbean.com/imglogo/ep-logo/pbblog2982136/114_Thumbnailat9ti_300x300.png)
Friday Mar 28, 2025
114 - Grow Faster, Go Further – The Peer Group Advantage [THA 423]
Friday Mar 28, 2025
Friday Mar 28, 2025
114 - Grow Faster, Go Further – The Peer Group Advantage [THA 423]
February 7th, 2025 - 00:43:03
Show Summary:
In this heartfelt episode recorded live at The Institute Summit 2025, Carm Capriotto sits down with facilitators Aaron Woods and Jennifer Hulbert to explore the transformative power of coaching groups for auto repair shop owners. Aaron and Jennifer, both shop owners and coaches, share their journeys from struggling operators to impactful leaders, guiding others through growth and accountability. They dive into the importance of peer groups, the value of mirror people, and why coaching is about more than just fixing a business… it’s about changing lives. Their candid stories offer inspiration for those ready to level up their business and personal growth through community, vulnerability, and intentional action.
Host(s):
Carm Capriotto, Remarkable Results Radio
Guest(s):
Jennifer Hulbert, Head Facilitator/Coach
Aaron Woods, Head Facilitator/Coach
Episode Highlights:
[00:03:00] - Aaron and Jennifer reflect on the rewarding challenge of running a shop while coaching others through peer groups.
[00:04:13] - Jennifer shares a powerful story of shop owners rallying together to keep a fellow member’s business afloat.
[00:05:49] - Aaron explains how peer groups, not just coaches, drive meaningful transformation through shared experience.
[00:06:43] - They discuss how real business growth starts with personal transformation and leadership development.
[00:08:54] - Aaron unpacks the “law of the lid” and the importance of removing limiting beliefs to unlock team potential.
[00:11:20] - Accountability thrives when group members hold each other responsible for progress and action.
[00:15:01] - Jennifer and Aaron share the idea of “mirror people”—those who reflect and shape your growth.
[00:23:42] - Aaron tells his emotional story of public vulnerability at a conference that changed his life and business.
[00:33:59] - They emphasize that even as facilitators, they’re still shop owners learning from their own groups.
[00:39:18] - Jennifer and Aaron discuss the massive impact of helping 72 shops grow their profitability and lives.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=bfB6qhU79kc
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Carm Capriotto: Hey everybody, welcome back. Carm Capriotto, Remarkable Results Radio here at the annual. Nice. I think it's every couple of years, the Institute Summit 2025. Thank you so much to Cecil and Kent Bullard and the entire team from the Institute. We are the institute.com. Honored to be here. We were at the last one. Had a blast. We're having so much fun here.
Carm Capriotto: Hey, welcome back. Okay. Sometimes there's some behind the scenes stories that you have to tell and Carm, why are you sitting so close to Aaron Woods? One of our cameras kind of decided to die, so I asked Aaron if he could just chum up a little bit and he said yes.
Carm Capriotto: So this is one of the most uncomfortable places or positions I've been in my entire podcasting for a year.
Aaron Woods: For you, for you. It's very comfortable for me.
Carm Capriotto: Oh, well, I'm gonna have to talk to Morgan about that.
Carm Capriotto: Oh my. We're already starting to have fun, and this episode is gonna be about fun. Also, Jennifer Hulbert is here from. Service plus automotive in calcium New York, not far from Buffalo. Maybe about what, four hours?
Jennifer Hulbert: Yeah. Other side of the lake.
Carm Capriotto: Yeah. At the end of Lake Ontario, we're on the edge of Erie, but on the show three times with us, Aaron, eight extra mile Autocare Stillwater, Oklahoma.
Carm Capriotto: Now, why both of you are here is you guys are leading the gear performance groups here at the Institute.
Jennifer Hulbert: We are.
Carm Capriotto: How do you run a shop? And coach and facilitate. I find it fascinating how many shop owners are getting involved. I mean, I talked to Parker this morning. He's got like eight clients. I love it.
Carm Capriotto: There's nothing like an individual who's been there and done that to help guide people down this pathway in life of improvement and coaching and leadership and all that stuff. And just to set the record clear, and I think we've done a podcast on this before. I was so honored, Tracy and I, to be invited to one of your peer reviews in Buffalo and you had your whole team there and we watched you facilitate.
Carm Capriotto: We saw a different side of Aaron Woods than we ever knew before, and it was positive those shop owners rallied around you. And of course you went and scoured my friend Tom Cino shop, and he worked almost like a year to get it ready. Nothing like pressure, right? He did a great job. Yeah, he did a great job and he learned a lot and he's improved his business in so many ways.
Carm Capriotto: So how do you get in front of these groups and facilitate them and have a little Jen or Aaron push? How do you do that? Is it your personalities to do this?
Jennifer Hulbert: Absolutely.
Carm Capriotto: Okay.
Jennifer Hulbert: So I was part of an actual group for 18 years, and my facilitator always joked that I was trying to take his job. Ah. So this has been an inherent part of my personality from probably the day that I was born.
Jennifer Hulbert: And
Carm Capriotto: I couldn't tell that about you.
Jennifer Hulbert: No. No.
Carm Capriotto: Could you?
Aaron Woods: Oh yeah.
Carm Capriotto: Oh he knows a different side of her.
Jennifer Hulbert: Well and these members are there looking for assistance, and that is our job. And if we're not going to push them, then they're not going to improve, and that's what they're, we're there to do. That's what the group is there to do.
Jennifer Hulbert: At the beginning of the GPG Day kickoff, I talked about the entire group process, just wrapping their arms around members, and we've had members. From, I've lost all of my employees and it was the owner and a wife, and we had two additional shops who drove to their location. Put on their technician hat and got work produced for that individual shop just so they could stay in business until they were able to hire technicians.
Carm Capriotto: There's all kinds of stories about that out there.
Aaron Woods: Oh, it's remarkable, really what the group process is. And we were just having this conversation with a shop owner at lunch today and they said, well, I really like working. And they were talking about, they were working with Cecil as like a one-on-one coach and they said, well.
Aaron Woods: You know, I have this fear about coming into the group because I really like working with Cecil and I said, well, with all due respect to Cecil and everything that he brings to the table, we all know that. But really, if the group process is doing what the group process does, the coach isn't, not that I'm trying to take away from what Jennifer and I do bring to the table, but what I'm here to say is that.
Aaron Woods: The coach is not the focal point of the process. The process works and changes lives because of the group members that are sitting there in that room. It's about them, not about you. It's about them. And so that's the power of what comes out of that room. Going back to what Jennifer spoke about in the beginning of the GPG Day when we both got up and addressed the group and Jennifer had, you know, talked about that.
Aaron Woods: And I stood up and I said, immediately, right outta the gate, I said, there's two types of people in this world. There's the people that learn from others, and then there's the people that touch the stove because they had to find out for themselves. Unfortunately, those type of people where I have a burnt hands.
Aaron Woods: But back to what I'm saying here is you have a room full of people that have been through those experiences, have lived those, you know, the ups and the downs and the rollercoasters, and are able to help each other and guide each other through those experiences, and that's been really powerful to see.
Carm Capriotto: Thank you for that. This is a pretty heavy question when you see a transformation in the business. What do you see in the person who helps make that happen? The shop owner.
Jennifer Hulbert: The shop owner. That makes the transformation in their own business?
Carm Capriotto: Yeah. What do you, what do you, yeah, the business is moving and there's a lot going on, but what do you see in the person, do you see a transformation in them? Do you see a new and better, stronger leader? Do you see attraction? There's gotta be, it starts with the person, the man in the mirror, you know, the ego, all that stuff. And I think it's important to know when people are considering coaching or grouping or networking, that you're gonna change as a person.
Jennifer Hulbert: Oh, absolutely, and that's what we're here to do. If you're not growing in your business is retracting and shrinking. So how can the managers or the owners make those improvements and then they have a different role in their business. I. All of us, most of us started in an actual day-to-day role.
Jennifer Hulbert: I was a service advisor. Aaron was a technician. Most of the shop owners are in one of those day-to-day roles, and as they take that step out, they can see the growth potential. I. Because there may not be holding back their business. And I said this, I think on my first podcast with you, is I was holding my business back.
Jennifer Hulbert: And until I took that transformation and had that epiphany of there are people who can do these individual roles better than I can, and putting those people in those seats allows the business to grow. And that was something that Dr. Jessica Kriegel talked about today. That kind of goes back to culture.
Jennifer Hulbert: If you have the people who are working in the same direction, your profitability is going to be extremely higher than just some growth because of a labor rate increase in Absolutely, you know, a parts margin change.
Aaron Woods: Oh, I agree. And to add to that point, yesterday, during, or not yesterday, Wednesday on, when we did our breakout, you know, GPG training, one of the things I talked about was just that, I mean, there's intentional growth and there's organic growth.
Aaron Woods: Organic growth is, yeah, we're gonna increase our labor rate. You know, parts prices aren't getting any cheaper, and so. You know, a 5%, 10% growth, to me is not really doing anything different rather than just natural environmental factors. But to add to what Jennifer is saying, it's the lid. It's the story of the fleas in the pickle jar that, you know, jump up and hit the bottom of the lid and eventually they quit jumping.
Aaron Woods: And then you take the lid off. And it's like, we as shop owners, and I say we, myself, Jennifer, all of us included, it's. We tend to put that lid on it, on our beliefs. Going back to, you know, Jennifer or Dr. Jessica Craigle and her talking about the belief system, where we believe in our business should be is where we put the lid and it's like we have to remove that lid and let our people.
Aaron Woods: Run with it. We have to train them. Well, we have to build the systems around them, but then it's amazing to see what they can do when we get out of the way.
Jennifer Hulbert: And we're building leaders then, and not managers or employees,
Carm Capriotto: followers.
Aaron Woods: Yeah. Correct. That was one thing actually that stuck out to me. I think, was it Dan Clark that said that?
Aaron Woods: He said a leader's job is to build other leaders. You know, and I thought that was a great point, right?
Carm Capriotto: There's an awful lot about micromanaging in the last couple of days, discussions with people, and I think we micromanage because we don't know what else to do. I think we love to turn a wrench, sweep a floor.
Carm Capriotto: I. And all the thousands of other things that we like to do and not lead. I mean, listen, for 10 years we've been doing this. This is not a redundant episode, but it's an episode that kind of shares the same themes or storylines that we've been talking about for years, and so why would I want all of this repeatable life's lessons to happen again?
Carm Capriotto: Because I believe I haven't gotten to everybody who needs to hear this. Okay? And if you're a top 20 producer, listen to this. Continue to affirm and confirm that you're doing the right thing. And if you are not and you want to get there, then listen to this. Write some stuff down. Listen to it three or four times.
Carm Capriotto: Listen to the wisdom that's coming from the real life's experiences out here. And that's kind of what I want to know. There's a level of accountability. Here's the law of the lid. I love the law of the lid. You did finish the story. The fleas, you take the lid off, the fleas not gonna come out because we've taught them.
Carm Capriotto: This is only as high as you can jump. But what I wanna know is with these groups, how does accountability. Happen. And what I mean by that is what I was so impressed by to be in your group was they seem to hold each other accountable. And you talk about the height of networking and the height of, I don't know this guy, but I've just been assigned to be his partner.
Carm Capriotto: I guess my job is to hold him accountable because he's gonna hold me. Wow. What a cool way. It's a tug of war baby, but the positivity's in the middle.
Aaron Woods: Well, I think Jimmy said this perfectly. I think it came from Jimmy or Jimmy during the summit was, you know, we're all in the same storm. We may not be on the same ship.
Aaron Woods: And our ships may not be the same size, but we're all in the same storm. And I think the power of the accountability factor that you speak to is the age old saying, right, a rising tide lifts all ships and maybe the ships aren't the same size, but we're all in this together. We're all here. In the same industry, and we're all battling a lot of the same, you know, day-to-day issues, whether it be technology, staffing and these things.
Aaron Woods: And so as that room grows and as the discussions happen, it's, I know that if I help Jennifer raise her tide, that in turn comes back to help me. Because it lifts the group up. Right. And you see that Jennifer like, absolutely. I'd love for you to get your input as well. Like, you know, you facilitate a several of the groups so well, you see that as well.
Jennifer Hulbert: We have these like-minded people in the same room. And Michael Smith uses the word or the phrase all the time that we're not gonna do business with jerks. So we're not gonna have someone who is gonna self-sabotage themselves in the group, that they're not gonna last because the other members are going to say, we are here to improve.
Jennifer Hulbert: All of us and we're all gonna rise together.
Carm Capriotto: That's right.
Jennifer Hulbert: So we're in the 1% the people in our groups are in the 1% of the business. That's been one of the trademarks of the institute for a very long time. So we're like-minded people and we want to improve everyone's business and everyone's lives.
Jennifer Hulbert: Again, going back to the theme and of the institute, better life, better business, better industry. So if you are not going to push your members and hold them accountable. We're not going to rise together.
Carm Capriotto: That's right.
Jennifer Hulbert: And sometimes in the beginning that accountability is forced. We've had difficult conversations with our group members and they see the potential.
Jennifer Hulbert: They see others making the improvements in their business and how they've rosen up and say, okay. Finally, I'm gonna commit to this. Yeah. And I'm gonna make the improvements and I'm going to listen to my other group members because I'm getting the same information.
Carm Capriotto: This is a behind the scenes on what grouping networking and coaching is all about.
Aaron Woods: Oh, and it is, and I'll add to this, you know, I think Jennifer and I share a great dynamic in this, in the sense of. Not only are we the ones leading these groups, but we come from the group process. Yes. And not only are Jennifer and I collaborating at this sense now of, you know, co-facilitating this program, but we were composite partners, which is the really accountability partners Oh.
Aaron Woods: And the group process. And so. We came from that. Oh, you know more about her than anybody. I see. I won't go into specifics, but there were several times where her and I would push each other on our meetings in the group process. And you know, we all still to this day, still to this day and. You know, I heard Jennifer mention this the other night, and it's something that her and I have been very vocal about back and forth.
Aaron Woods: It's mirror people. And I think it was something that came out of the first summit. Yes. Kevin Brown, who are your mirror people. You know, the people that when you look at the mirror and you say, this is where I am today because of people that have influenced me throughout my life. You know, who are those people?
Aaron Woods: Jennifer and I have been very vocal about each one of us being one of those people, but to the broader. Point here. 'cause we're talking about the group process, the people in that room that do hold each other accountable and do be there for them in the good times and the bad times of the business. A lot of times it's more than just running a shop.
Aaron Woods: It's those people become the mirror people. Yeah. That's the true bond in that room is you've earned the right. To be able to be that person for that person when they needed you. Yeah. That's powerful.
Carm Capriotto: Kevin Brown, hero effect.
Jennifer Hulbert: The Hero effect.
Carm Capriotto: The Hero Effect. We got the book at the summit. Oh my God.
Carm Capriotto: I think, was it a signed copy?
Aaron Woods: I still talk about that to this day.
Carm Capriotto: Tracy, you read it? I did that, yeah. Tracy read it. And we were moved by it. I believe it's on the books page on our website. Remarkable results biz , it's a must, must read. He's gotta be one of the top.
Carm Capriotto: I mean, oh, I loved it. From the minute he started to talk to the end. You were He had me, he had me. The hero effect, Kevin Brown.
Jennifer Hulbert: Well, and to go back, just to expand a little bit on Mirror People, there are group members who become your chosen family. And again, I was in a group for 18 years.
Carm Capriotto: Your chosen family. That is big.
Jennifer Hulbert: I have chosen family members. And we support each other in all aspects of our life. Not just the business side, but the personal side. And I have people that I can make a phone call tomorrow or this minute and say, Hey, I'm really struggling this with whatever it is in my life. And they're gonna be there.
Jennifer Hulbert: We got you. We're gonna be there to support you. And that's really what I want the group process to be, or we want the group process to be. 'cause we do share that same thought is. How can this group become more than just a board of advisors or a board of directors for your business? How can it support your entire life?
Jennifer Hulbert: We have many group members and all across all of our groups, so vacation together. So again, it becomes chosen family, and that to me is the pinnacle or the ultimate part about being part of a group.
Carm Capriotto: That makes so much sense that if you are out there looking for a networking group to become part of, to your point, it's gotta be more than a board of directors.
Carm Capriotto: It ultimately has to be family. But here's my big think. Does everyone make it?
Jennifer Hulbert: No.
Aaron Woods: You know my saying there, Jennifer?
Jennifer Hulbert: Yeah. The easy answer is no.
Carm Capriotto: And what's the hard answer?
Jennifer Hulbert: Aaron saying.
Aaron Woods: The ship wasn't meant to save everybody Carm.
Jennifer Hulbert: No, Noah's Ark wasn't made to save everyone.
Aaron Woods: It's inevitable when you come in and not even just when you come in throughout your tenure of the process.
Aaron Woods: It's not always easy. I. It's not always going to be easy. We're not always going to hear from other people the things that we want to hear, and I think that ultimately that catalyst has to be there inside of you to want to change. I grew up, you know, in a farmhouse and we had a circle driveway around the house, and I remember.
Aaron Woods: I'll never forget this. I was young and my dad bought A Burrow, which is a cross between a donkey and a horse. Yeah. And it was for my little cousins to be able to come over the holidays and ride the Bur ride. Right? Because they didn't wanna ride the horse. We had horses, but they were too big. And so we bought this burrow and I remember watching my dad trying to get this borough to walk with a lead.
Aaron Woods: Right. For two weeks, he's dragging this burrow around the driveway. I mean, the hooves are shoved into the ground. I mean, it was amazing to see. It probably wasn't, but I thought it was funny. Carrots. Yes, that's where I'm going with this. Oh, no kidding. So, so he went inside after about two weeks, and he came outside with a bag of carrots.
Aaron Woods: And so he stood in front of the burrow and he pulled a carrot out and then the borough would walk up and get the carrot. And then he continued to do that. And within a couple of days. The boroughs walking right around the driveway, right. Looking for a carrot. I never knew until like just recently, like how did I learn so much from that moment?
Aaron Woods: It's people will only do what really they want to do. We can't make group members come into this process and want to change, or want to improve or fix this, or we just can't. And I think that's the thing is we sometimes we do get group members that come in and they say. Well, my business is failing. What can you do for me?
Aaron Woods: And that's a, whoops, if somebody says like, I can't do anything for you. Right? Like you have to do those things for yourself. The information, the knowledge, the gathering. The facilitation. We can pour the glass full of Kool-Aid and sit it in front of you, but I can't make you drink.
Jennifer Hulbert: And that for me was probably the biggest challenge of changing from group member to facilitator.
Jennifer Hulbert: I'll never forget, the biggest thing I took outta leadership intensive with Michael Smith is you put your hand up and you start to push. What does the other person do? They push back equally or harder, so how can we turn that push into a carrot and how can we make or help them realize that they have it within themselves to make these improvements themselves.
Aaron Woods: To take that step forward.
Carm Capriotto: So I want to join your group and I say, so what can you do for me? Would the next question say why? Why do you say that?
Aaron Woods: My next question would be is what can you do for yourself? What are you willing to do?
Carm Capriotto: Well, I don't know. You tell me.
Aaron Woods: Because going back to my story with the Burrow, right?
Aaron Woods: It's like, well, my dad got the carrot out, but the burrow still had to take the step to eat it. Yeah. So it's not, if somebody says, well, what can you do for me? It's no. What can you do for yourself?
Carm Capriotto: Yeah. You want direction, you want guidance. If they don't have the motive, obviously there's zero motivation. If they say, what can you do for me?
Jennifer Hulbert: Maybe not zero motivation. Maybe they don't know what they don't know.
Carm Capriotto: Yep.
Jennifer Hulbert: So think of typical shop owners. You're a technician. You're there to solve a problem. You're there to work with your hands. You're there to do step by step, a job to get an outcome. For shop ownership, there are outcomes that you can't control.
Jennifer Hulbert: Customer interactions, you can control them to a point, but there's, it's not like fixing a car. And sometimes that thought process for that member needs to come out, like, I need to look at this differently. I need to grow as a person. I'm no longer a technician, I'm a business owner and I need to look, do, see things differently.
Carm Capriotto: So I want to take the leap and I want to join a coaching group, company group like this, and what characteristics, I get what you're trying to say, that there's nothing you can do for them except maybe do, you know, bring the bag of carrots and let 'em walk to it and ultimately eat. But let's talk to the shop owners right now that are struggling and they need help.
Carm Capriotto: If you want to get into a networking group, coaching thing, what kind of priorities do you need to set for yourself? To make that phone call, to get on that website, to do some discovery of how to get yourself to the next level in your life and in your business.
Jennifer Hulbert: Aaron's story of how he became a group member is the perfect example.
Jennifer Hulbert: So I think your story is one that we should share.
Aaron Woods: You know, I was young in my shop ownership. I started my shop from ground zero. I had nothing, not even really many tools. I remember as I first got started, I didn't know, just like Jennifer said, I don't know what I don't know, and I remember just being extremely defeated when I worked so hard and I mean, seven days a week.
Aaron Woods: 18 hour days, and at the end of the month, I got a negative profit and loss statement from my accountant. And I'm sitting here and I'm trying to look at this negative profit and loss statement, income statement, whatever you want to call it. And I'm looking at all the hours that I just worked and I'm like, how does this make sense?
Aaron Woods: Like, I've always grew up, and I think a lot of us are this way. You grow up and you say, well, if you work hard. You get the things that you need to have, right? Or want to have whatever you describe it. And here I am, seven days a week, 18 hours a day, and at the end of the month, it's like I gave somebody else money, you know?
Aaron Woods: But the problem is that I didn't know why. I'm like, well, I know I can see this bottom number at the bottom of this sheet, but I don't know why. And so my next step was, and I was mad. I was really mad. Actually this was a couple weeks before vision and I remember going to Vision a long time ago when I was a rep for a sales company and I was there as a vendor and I'm like, I think there's this conference that I need to go to.
Aaron Woods: To learn. Right. And it happened to be vision. So I drove up there and I took my manager and with me and or he's now my manager. He wasn't at the time, but I took, you know, somebody that worked with me up there and we attended some classes and I remember on it was on Sunday. I was stewing over this negative p and l the entire time.
Aaron Woods: And that was really what I wanted to learn is like, okay, how do I fix this? Because I don't know what I don't know. And at the end of the conference on Sunday, I'm in this big room, there's a coach in there. I sit at the front of the room and I knew the entire time. I'm like, I am going to touch the stove today.
Aaron Woods: And so I sit at the front of the room and when that coach said, would anybody be willing to volunteer to sit up here on this stage and have us look at your numbers? And I didn't even raise my hand. I just stood up and started walking to the stage. And I'll never forget this, he pulled a chair up and he set it on the stage and he had a projector here, son, sit here.
Aaron Woods: Oh yeah. And I sit there and I pulled up my chop management system and I had it on my phone. And so he was writing these numbers down. He was asking me, and I didn't even know what numbers he was asking me. He's like, oh yeah this. I'm like, okay. Yeah. Yeah. So I'm giving him these numbers. I have no idea where he is going with it.
Aaron Woods: And he is writing these things down on this projector screen and it's on this big screen in front of the room, and he's asking me all these numbers and at the end of it, he's like. Group, what do we think? And there's like 500 shop owners in this room, and I'm sitting up on the stage. You were exposed. Oh, I got ran through the grater.
Aaron Woods: Oh, you were but the thing is I knew I was going to, and that's the thing is like I, that was your moment. That was my moment, right? I'm like, yeah, I know that if this burns enough that it's going to ignite me to go back and make the change. And so I did. And it did. I was so mad at myself. I'm a very prideful person, right?
Aaron Woods: And I said, never again will I ever be here. And it was a four and a half hour drive back from Kansas City and Tyler sat in the Passeng. You can ask him himself. Tyler Nichols Extra Mile Auto Care sat right there in the passenger seat of my Honda, and I did not say one word, leaving that conference center all the way back until about 15 miles from Stillwater.
Aaron Woods: And he finally, he looked at me and he goes. What is wrong? And I lost it. Blew up. Not at him, just blew up. And I said, but you've been planning that diatribe for four hours. In your mind.
Aaron Woods: And I said, I have failed you. I have failed this company. And I said, I'm sure there was more choice words there, but at the sense of it is never again will I be here.
Aaron Woods: Never again will I ever be here. I'm not saying that as the rollercoaster of our business, that we don't ever have a bad month, but never will I ever look at that number and not know why.
Carm Capriotto: I wrote down the word exposed. While I'm listening to him. 'cause I always take people's words and I'm saying, how can I really bring this inside of me?
Carm Capriotto: I also think about my listener and I know what you just heard about Aaron in his story, but you cannot be afraid. To do an Aaron story to be exposed, and you were exposed in front of 500 people. You find a coach, you're being exposed to one person who's willing to get on board to help you. And then if you get into a group, maybe it's 20 people, but at the end of the day.
Carm Capriotto: If you are not glowing and growing and doing all this stuff, then you've chosen poorly. They have not given you the right direction, and you need to move on, which is why people sometimes shift around until they find the right love fest, the right family, the right connections. But if you're not willing to expose.
Carm Capriotto: That I don't know what I don't know all the missteps that you've had in your life. If you're not willing to be humble, that's what happened to you, but you didn't think about the beauty of his story is it was an intervention. I bet you if I was in the room, I would've seen a lightning bolt come down, pick you up, and guide you to that stage.
Aaron Woods: You could have probably scrambled an egg on my face.
Jennifer Hulbert: And we have people, maybe not to that extent, but they'll go to a class that NAPA put on in their local BDG. Yeah. Or you know, another class in their market and they hear something and they're like, I have no idea what they're talking about. And then they'll watch one of your podcast and they'll say.
Jennifer Hulbert: You know, I don't know anything about this, but Carm just gave me an idea of where I can find the information and that's usually the first step.
Carm Capriotto: You know, I've been in a room where there's been a coach presenting, you know, over Zoom or a management video came up, and guy who's, does anybody have any questions?
Carm Capriotto: Nobody raises their hands. I look over at Tracy and I do one of these. I want to go to everybody's shoulders and I wanna shake them because their potential, everything's it is like, even though it was a, maybe it was just a mini, you know, performance. KPI, just one subject. No one had any questions.
Carm Capriotto: Everyone in the room's an expert on that topic. The answer is no. But no one wanted to have an Aaron experience.
Aaron Woods: I say that. I mean, I don't recommend that. Well, I do if that's what you need. It was not a fun experience. But at the same time, it's, go back to your original question, Carmen.
Aaron Woods: You said, what do those people need to do? And I think that for me it's kind of like goal setting, right? It's okay, so I have this place that I want to be. But that's not where I am. Right? And maybe I don't know what that place is that I want to be, but I know where I am and it's like, well, if all I ever focus on is that one day I'm gonna have all of these other things, then what we're missing is the path.
Aaron Woods: Right? And it's like, okay, well what can that shop owner that's struggling do today? You can make a phone call, you can reach out, you can do just a small action today. That gets you on a path to then having a different result. I mean, this was 2019 when I went to Vision in Kansas City. Wow. You know, and granted I never would've said, well, you know, in six years from now, Erin, you're gonna be a facilitator.
Aaron Woods: No, I would've known that. Right. But it's like, I didn't just go from vision to facilitating. What did I do? I did one thing. I reached out to. You know, the institute, right. Pulled up a podcast. I, and that's the thing is like, you're so inundated in your business and you're like, well, I can't just do this, you know, 20 group thing. It's like, but you can make a phone call.
Jennifer Hulbert: And don't be intimidated by the process. So we have so many new group members who come in and say, what can I possibly give to this process right now? Yeah. I've not been involved in. There are so many things that I'm not confident about, but yet they contribute to the conversation.
Jennifer Hulbert: They contribute to the meeting overall, they contribute to helping someone in a dinner conversation. So I guess if there's one thing that we could tell your listeners is don't be intimidated by coming and joining a coaching group or a group in general, because you have knowledge, be a sponge, you have experiences.
Carm Capriotto: Be a sponge.
Jennifer Hulbert: Yes.
Aaron Woods: And maybe that is the role. Right. That maybe that's the rule. I agree, Jennifer.
Carm Capriotto: Talk about an accelerated. I am worthless on the bottom of the ocean to a group facilitator.
Aaron Woods: I'm very upfront with my clients. It's. Just because Jennifer and I are facilitators doesn't mean we don't struggle with things in our own shops as well.
Carm Capriotto: Thank you for bringing that up. I think that's so important.
Aaron Woods: It is. It really is. I mean, I You're also, I'm a technician short at my shop right now.
Carm Capriotto: I mean, you're learning from the group too. Yes. Oh, wait a minute. You're absolutely, you gotta go back, put your money where your mouth is.
Aaron Woods: No, but here's the thing.
Aaron Woods: You're right. And that's powerful. It's like, because we sit at the front of the room, it's like, oh, well Aaron and Jennifer have the answers. That may not be the case. Like I always tell people. I learn more than I teach. And we should, right? And that's the thing, it's your end goal is never a destination.
Aaron Woods: It's always a journey. It's always a journey, right?
Jennifer Hulbert: But it's also who you surround yourself with. So if you surround yourself with those people who are going to help make those improvements or give those ideas, then that is why we are all here.
Carm Capriotto: Let's go down a different path. How does homework get done? I know that everyone who leaves their group sessions has homework. Does it get done?
Jennifer Hulbert: Most of the time, but it goes back to the same ideology of are you working in your business or are you working on your business? So if you go back to your shop and you jump right into a service advisor role, your homework, so to speak, or your ownership duties are gonna take a second seat to that.
Jennifer Hulbert: So do you have the proper people in place to be able to step out of the day-to-day role and say, I am going to make a commitment and I'm going to get X, Y, z done because I am looking for a goal or I'm looking for a different result of what I'm doing right now.
Carm Capriotto: Aaron, I wanna. Get a coach and facilitator and once we get over the hurdle that I can come in, the next question that I ask you is, okay, Aaron, oh, thanks for having me.
Carm Capriotto: Shall I start working on sales costs or margin? Where? Where do I start?
Aaron Woods: I think I. Margin is where I think the easiest thing that we can deploy in our business. Right. And that's when I begin working with a client. And of course the first thing I do when I look at a financial statement is I'll scan right to the bottom.
Aaron Woods: And give me a percentage of sales. Right. And if that net profit isn't where it needs to be. The second place I'm gonna go every time is to the margins, to the gross profits. Gross profits are the easiest and quickest way that we can fix, I don't wanna say fix the business.
Carm Capriotto: Legitimate fixes. Real live, honest to God. Oh. The coach is justifying their fee because I just raised my labor rate and we hear a lot of that junk out there. In many cases, it's way untrue because that's where a big fix happens, to your point.
Aaron Woods: Yeah. I don't know that. I mean, is there a time to increase a door rate?
Aaron Woods: Yes, but I look at it in a little bit of a different perspective in the sense of a door rate is really just a figurative thing. It's the effective labor rate is really what's important. It's how many dollars on average are you taking to the bank for every build hour, and that's your effective. So it's really where does our effective labor rate need to be?
Aaron Woods: And that effective labor rate calculation is really just looking at what are your expenses? What are your margins need to be? So then what does our effective labor rate? And the point I'm making here is. The setting of the effective labor rate. Now granted, the door rate might need to be moved to move the needle on effective, but that's just one of the four or five different ways to move effective labor rate.
Aaron Woods: That's what it's truly about, and that's oftentimes, if we do arrive at the conclusion that the door rate needs to be increased, it's not just to increase a door rate, it's. Because we've gone through and we've looked at the calculations, we know where it needs to be because of other information. Then we make that decision.
Aaron Woods: It's never, Jennifer, you might speak as well, but I don't think I've ever looked at a p and L and been like, well, it's a door rate issue or
Jennifer Hulbert: No. And more of what type of production is coming out of the shop. So you can set your margins to be whatever you want them to be. If you're not turning out the work or attracting the customers to be able to turn out the work, then what are we doing?
Jennifer Hulbert: And I use the analogy. Almost every meeting, and I did on Wednesday. If you had a 300 gallon bulk oil drum, would you turn the spigot on and watch the oil go down the drain? No, no shop owner would do that, but that is what we do with our labor inventory every single day. Correct. 'cause we're not managing it.
Carm Capriotto: I kind of knew the answer to this because although margins may be a quick fix, there are all the key issues of sales margin and cost management are just things you gotta pay attention to. Period done, case closed.
Jennifer Hulbert: There are so many, I mean, again, you have your labor. Do you have the right marketing to attract the right customer?
Jennifer Hulbert: Do you have the right service advisor skills to be able to turn that DVI into an average repair order? I mean, there's so many other factors besides, let's look at your parts matrix or your labor rate.
Aaron Woods: Jennifer's hitting the nail on the head. I love the analogy of the 55 gallon drum of oil. And it's like, yeah, I mean there's so many factors to pay attention to and I also understand as a younger shop owner, a struggling shop owner, I.
Aaron Woods: That's a lot to try and find and fix. And it's like, well, how do I have time to do that? And I think the ultimate goal is work on one thing at a time. Right. How do you eat an elephant? One bite at a time. Yeah. Yeah. And I think the information is there. You have to buckle down and solve it.
Carm Capriotto: I'm with Jennifer Holbert from Service Plus Calcium New York. Also a facilitator here for the gear groups here at the institute and Aaron Woods from Extra Mile Autocare in Stillwater, Oklahoma. Let's wrap this up. Give me one aha moment of your life as a facilitator. Any aha moment you'd love to share?
Jennifer Hulbert: This is more rewarding than I ever thought possible.
Carm Capriotto: Wow.
Jennifer Hulbert: Being able to watch the improvements of the group members and the entire group process. So one of the notable achievements that we accomplished this year was increasing the net profit of the entire group process by almost 1% in 12 months.
Carm Capriotto: Collectively?
Jennifer Hulbert: Collectively across the entire program.
Carm Capriotto: Net operating income?
Carm Capriotto: Wow.
Jennifer Hulbert: So sitting back and saying, you know, wow, we had a part of that. And I say we, Aaron and I make a very fantastic team and we collaborate a lot with our different groups, but. Seeing that we are impacting 72 shop owners' lives with better profitability.
Jennifer Hulbert: For them to be able to take that and make notable improvements in not only their business, but their employees' lives and their communities is much more satisfying than I ever thought possible.
Carm Capriotto: You just said a big number 72, and I think about herding cattle.
Jennifer Hulbert: Or chasing cats.
Carm Capriotto: Wow. Okay. Because if I was to your group, this guy is a disciplinary and strictness guy, you know, in front of that group, I guess that's the only wage you've gotta have that structure, right?
Aaron Woods: Structure, yes. There's a time to push and there's a time to pull. Right. There's a time to lead, there's a time to motivate, and you know, and that's something that we, you know, continually learn, you know, as our experience grows.
Aaron Woods: But I love what Jennifer said, the 1% increase, and somebody might think, well, that's 1%, but we're talking about millions of dollars. Millions. That, and to take what she said and to build on that, it's when, just like the institute, better business, better life, better industry, right? It's. When we collectively, Jennifer and I make that type of impact, right?
Aaron Woods: You're creating a better business, and this is what I love about this. You are making a better business for not just the owner, but when the owner has a better business, then the owner has a better life and business for each one of his employees. And that the, each one of those employees that has a family that is in impacted and it's, and so when you look at the spider web effect of what that does. To me it's, it transcends auto repair. Right? It's making an impact to society. And that to me is my biggest takeaway. I don't have one.
Carm Capriotto: It's a good aha moment.
Aaron Woods: Different than that because I used to build upon that.
Carm Capriotto: You just, I think, nailed a great summary of why facilitating, why grouping, why networking.
Carm Capriotto: Why coaching so important. Yeah. We're doing this for you and your business, potentially your, you know, to build wealth for all the things you want to do as a spouse of a family. But you just nailed the fact that the work family is just as important. Talk about retention, recruiting, and all. I mean, there are some people that want more in life than we're currently giving them.
Carm Capriotto: They want more money. How do we get 'em that, how do we pay for their education? On and down the line. And for anyone who's listening, if your owner, your business owner, CEO, has decided to get into a coaching group, that's good for you too.
Jennifer Hulbert: It is.
Aaron Woods: Absolutely. My employees live better lives because of the group process.
Jennifer Hulbert: I would agree with that.
Carm Capriotto: Aaron. Jennifer, thanks so much. Appreciate it.
Aaron Woods: Thank you.
Jennifer Hulbert: Thanks for having us.

Friday Mar 28, 2025
113 - The Blueprint for Growth: Business Management Best Practices
Friday Mar 28, 2025
Friday Mar 28, 2025
113 - The Blueprint for Growth: Business Management Best Practices
March 5th, 2025 - 00:46:13
Show Summary:
In this episode of The Digital Shop Talk Radio, host AutoVitals, Lauren Thunen, is joined by shop owner Bob Conant of Bob Kaiser’s Repair and Jimmy Lea of The Institute for Automotive Business Excellence. They dive into what it takes to successfully transition from technician to business owner, highlighting the power of coaching, team culture, and shop efficiency. Bob shares his journey from working every role in the shop to owning and optimizing it, with a strong focus on technology, documentation, and transparency. Jimmy emphasizes personalized coaching strategies, improving technician efficiency, and creating a strong workplace culture. The discussion includes practical examples of boosting ARO through DVIs and insights into what drives long-term shop success.
Host(s):
Lauren Thunen, AutoVitals
Guest(s):
Jimmy Lea, VP of Business Development
Bob Conant, Owner of Bob Kaiser's Repair
Episode Highlights:
[00:04:00] - Bob explains the biggest challenge in becoming an owner was learning the financial side of the business.[00:07:15] - Jimmy outlines how The Institute tailors coaching to each shop’s specific needs before moving them into group peer-learning environments.[00:11:45] - Bob shares why he embraced technology despite being in a small town; efficiency, transparency, and customer education.[00:14:12] - The panel discusses how DVIs improve communication and trust, especially when customers can see issues firsthand.[00:16:00] - Bob’s shop averages 60 pictures per inspection, emphasizing documentation for both service value and internal use.[00:20:52] - Data from AutoVitals shows higher picture counts and longer DVI review times correlate with increased AROs.[00:26:09] - Bob credits his team’s buy-in and communication as key to increasing overall shop efficiency.[00:30:41] - Jimmy shares shop efficiency tips, including stocking drinks and tools nearby to reduce wasted steps.[00:34:25] - Bob’s shop achieves over 130% technician efficiency while maintaining a focus on quality, not volume.[00:38:09] - Both guests stress the importance of transparency with staff and building a strong culture to retain top talent.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=-8Xrs13vigU
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Lauren Thunen: Great. Good morning and good afternoon to everyone who has already joined us. Thank you to everyone who joined early and was waiting so patiently in the waiting room. I love to see that. So very prompt group of shop owners that we got today. I'm really excited about today's edition of the Digital Shop Talk Radio.
Lauren Thunen: Firstly because we have an amazing shop owner, Bob Conet, who is the owner of Bob Kaiser's repair in Hilton, New York, go Bills and. We also have Jimmy Lee. If you don't know Jimmy Lea , he has been an influential person in the automotive industry for decades. He is one of the core founding members of Auto Vitals.
Lauren Thunen: He's then worked for KUKUI , he's now with the Institute for Automotive Business Excellence, which is one of the premier coaching groups in the automotive industry. So instead of me doing all the talking and telling you how wonderful these people are, Bob, could you start off and just tell us a little bit about yourself and your shop so attendees can get familiar with you?
Bob Conant: Sure, yeah. I've I've been here for a long time, so since the shop opened in 83, I worked on and off here for Bob for a long time. I've been back for 24 years now, and I recently, I purchased it about four years ago.
Lauren Thunen: Got it. So you've been working at the shop for 24 years, and then you purchased it as the owner four years ago?
Bob Conant: Yep. I've done every position here from cleanup to tow truck, to tech, to advisor to, yeah, everything.
Lauren Thunen: That's awesome. That's awesome. And then how long have you been working with the Institute on the business coaching side of things?
Bob Conant: Well we rejoined, we were with the Institute before and we rejoined when I purchased the business.
Bob Conant: I rejoined then, so Awesome. Back with 'em for four years. I think we were with 'em for probably about five, six years before that.
Lauren Thunen: Got it. Cool. Cool, cool. And then Jimmy, could you go ahead and introduce yourself as well as tell a little bit about what the Institute does for shops?
Jimmy Lea: Yeah. Yeah. My name is Jimmy Lee.
Jimmy Lea: I've been in the automotive industry now for a while I lost a bet and that's why I'm here. So. Figure that one out. If you got questions about that, we'll have to talk on a personal basis. But I would love to tell you that story. It's so much fun. The automotive industry has been absolutely a blessing to me, to my life, to my family, to, to my wife, to my children.
Jimmy Lea: I. The automotive industry is the best vertical, the best industry that we could ever anticipate or even want is it's absolutely amazing. It's so much fun. We just have a great time and the industry is the biggest heart there is. I've never met a shop owner that's not willing to go above and beyond the expectations.
Jimmy Lea: And the Institute is. A premier coaching and training company within the automotive industry. We help shops and shop owners to understand how to run their business and be the business side of the business. Many of them are raised in the shop. They are raised in the. Shop environment. They know how to turn a wrench.
Jimmy Lea: They know how to service a vehicle, but there's a whole nother skill set that they want to develop, that they need to develop. And that skill set and that muscle set is business ownership. So it, the auto the the Institute side of coaching and training is business coaching and training for shop owners to help them understand what they need to do to run their businesses the best.
Lauren Thunen: Awesome. Thank you for that overview, and that ties in perfectly. So what we're gonna chat the most about today, I am sure we'll go off topic as sometimes happens with a group like this, but is about business management best practices to really take your shot. To the next level, calling it the blueprint of growth.
Lauren Thunen: And who better than Bob, who has not only been a shop owner for four years, but has made that transition as Jimmy mentioned, from working inside of the shop to taking that next step as being the owner. So, Bob, could you tell us a little bit about like what were the biggest challenges that, that you faced in moving from role to role in the shop and then eventually taking over as the business owner?
Bob Conant: Yeah, I think it's the unknown. I think it's what you don't know, right? So, for me, I mean, I knew how to work on cars. Yeah. And that was the easy part, right? And then moving into dealing with customers, that was actually, I enjoy that part. I enjoy the interaction and whatnot. But as you move along through there, and now you're into management and trying to figure out the numbers, which are the least fun of everything, right?
Bob Conant: To learn that. And that's where the Institute comes in and your peers of, you know, helping you go through that transition stage. 'cause it, it was, I mean, to learn QuickBooks and p and ls and all that stuff it's the non-fun stuff, right. Which is what I say to customers now. I said, you know, I get to do all the non-fun stuff, pay the bills, taxes, all that kind of good stuff.
Bob Conant: So, moving through that, yeah it was tough because you just don't know. You don't know what you're doing. And without the help of other shop owners and systems through the Institute, man, it would've been even harder, which is why I rejoined the group.
Lauren Thunen: Yeah, that makes ton of sense. I always say that my job would be so much fun if I didn't have to worry about making auto vitals money.
Lauren Thunen: Right. Like the. The end of the day when you are looking at the the p and l, that's when things get really real. So what Jimmy do you typically, what are kind of the foundations that you work with a shop owner like Bob to cover, to make sure that they're able to successfully make that transition from doing the fun stuff to doing the really hard stuff.
Jimmy Lea: You know, that's interesting. There's every shop has a little bit of a different journey that they're on. So imagine life is a long trail or a long path. Some are way off the path, some are close to the path. And so when we bring in a shop and a shop owner into the Institute to talk about their business, we're gonna meet them where they are.
Jimmy Lea: I'm thinking of a specific shop. You okay if I mention names? Yes. Tracy Holt with a performance place. He came to us and said, Hey, look, don't talk to me about car count. Don't talk to me about average repair order. That's not what I need. I'm doing very well in those spots right now. I'm a 7% net profit shop.
Jimmy Lea: I want more. I can't break that 7%, that 8%. I'm stuck. I've been through three other training companies. That's the first thing they want to talk about is about average repair order and about car count. He says, I need shop efficiencies. I help me with my shop efficiency and we will grow this business exponentially.
Jimmy Lea: Five technicians, 14 bays. Big shop in is he in Sandy or South Jordan? I think he might be South. Jordan, Utah. He's in Utah. I went and visited his shop. Phenomenal. Been in the family for generations. The oldest business in city, wherever he is. Man, I can't remember. I think it's South Jordan, the oldest business.
Jimmy Lea: Back in the day when dad was doing the business, it was all about working on the agricultural vehicles, agricultural tractors and that stuff. So we need to meet people where they are and then take them from there. So. Anytime somebody comes into the Institute the first thing we're gonna do is have those one-on-one meetings with the coach, because we want those meetings to be discovery.
Jimmy Lea: Where are you at? What are your inefficiencies? How can we help you the most? And there's a time period somewhere between three and nine months when a shop comes into the Institute, somewhere in between that three to nine months that it. Clicks, the lights turn on. Oh my gosh. I, yeah, I get it.
Jimmy Lea: I understand. Now this makes sense. Okay. Now that when that happens, there's a hockey stick, their business increases exponentially and the progression, the natural progression of a shop and a shop owner is to go from one-on-one coaching and training into a group environment. When you have that mastermind, that peer-to-peer learning, that the learning, the stickiness, the retention is so much higher than when it's just the one-on-one experience.
Jimmy Lea: The reason we don't throw people into that group environment first is because they're not ready yet. Their numbers aren't right. Their books aren't right. Their p and l doesn't look right. They may have personal expenses mixed in with their business expenses. I get it. I understand. I know. I it happens, right?
Jimmy Lea: Bob? I dunno what you're talking about. No, not anymore. Not anymore. Right. But it does, it happens. And shop owners, we, we do that. So there was a shop owner we were talking to the other day, $1,200 a month for Walmart. Like, what's this in your p and l? Oh, that's my groceries. I'm buying my groceries.
Jimmy Lea: Okay. Well, I understand. Don't do that. Give yourself a raise. Buy your groceries outta your own private, and then have the business be the business. So when they get into this group environment, peer to peer, they open their books, they show each other, they have a composite partner. Who's your composite are?
Jimmy Lea: Are you in a group, Bob? Yes. Yes. What group? What group are you in? Oh, I'm in I'm group two, the best group. Group two. I do agree. I, group two is a phenomenal group of the groups. They each have their own dynamics, and group two is very. Let's say high tech. They're they're tech savvy.
Jimmy Lea: They're tech hungry, they're tech implementers. They're the alphas. If somebody's in beta group two is the one that's in the Alphas that is testing it, por the betas are testing it. The, this is a group that is really tech forward. So to your group, Bob, that's a phenomenal group. If I was to put somebody in Bob's group today, Joe's Garage.
Jimmy Lea: He would be embarrassed because he would have to stand up in front of the group and talk about his numbers and talk about his shop and talk about his business, but he's not ready yet. He, his p and l's dirty, he's got personal expenses in there. It's not a good thing. So we've got to get them ready. With that time period with a one-on-one coach.
Jimmy Lea: So they're meeting twice a month for an hour. Every other week they meet with the coach, and the coach is helping them to see where their inefficiencies are. So back to my story with Tracy Holt, 7% net profit in the month of, it was either December or January, had a record breaking month. And by the way, he's continues to have record breaking months to the point that he is now 20.
Jimmy Lea: It was 23.9. Percent net profit.
Jimmy Lea: That was within a nine month time period. He went from a 7% net profit to a 2320 4% net profit. That's pretty cool. That's a good place to be. And absolutely phenomenal. In fact, we'll talk here in a minute. When you ask me another question, we're gonna talk about some clubs that we have here with the Institute that are pretty amazing.
Lauren Thunen: Awesome. Cool. Yeah. Thank you for sharing that, Jimmy. And you mentioned that Bob's group, te group two is very tech forward. That is actually something that I wanted to ask you, Bob, because your shop is in a small town, right? Population's in like the 7,000 to 10,000 range, right? In Hilton. Yes. State New York, if you're not familiar, as almost as close to Canada as you can get without being, actually being in Canada what kind of was the impulse to be?
Lauren Thunen: You have such a heavy investment in technology. You've been with Auto Vitals for a while. I think you're using almost every product that we offer. I know you're also with Tech Metric. What has really driven that strategy? Because I hear a lot of shops that might be in a more. Like not in a big city, say like, oh, we don't need that.
Lauren Thunen: We don't need that. We know our customers. What was the impulse to be such a tech forward shop, especially given where you're located?
Bob Conant: Well, again, I mean, if you ask my family, I've always looked for the latest tech stuff and, you know, that kind of stuff is always kind of cool.
Bob Conant: But for me shopwise, it was it was just for efficiency and for ease. I mean, you know, going from written paper to a point of sale that now it integrates in with looking up your parts and then you tie that in with auto vitals to where you're able to do we call 'em health evaluations on vehicles and look these things over and document everything.
Bob Conant: And really it was more for me of the documenting stuff to be able to look back at. I mean, I remember the days of trying to find an invoice. And all it's, you know, it's, it was sometime in June. Now you gotta go upstairs, go into the file and kind of look through and hope someone actually put it in a proper spot.
Bob Conant: Where today everything is scanned in organized on a Google Drive, and you can find it by typing into search fields. So, you know, it's a lot about efficiency and convenience. And I, and for me it's been a huge change over the years compared to where we were, that's for sure.
Jimmy Lea: Oh, yeah. And the tech forward that Bob is doing is to educate the clients, educate the customer. Yeah. Those dvs, they help that. That vehicle health check, that helps educate a customer so much when you can show what's worn, torn, leaking, broken, cracked, seeping. When you show that I, as a client and much more educated, I make better decisions when Bob calls on the phone and says, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah.
Jimmy Lea: All these things are broken, $2,500. Dude I drove my car in. I'm gonna drive it out. I just want you to change the oil. Education is so paramount, and there's been beautiful ways that we've been able to educate our customers and our clients through dvs, digital inspections, through animated videos tech videos, informational videos that talk about a water pump, a water cooler, a timing belt, why it's important, why it needs to be serviced, why you need to change it now instead of.
Jimmy Lea: Down the road when you're stuck on the side of the road because your timing belt was thrown, broke, and worn out. The time to do your maintenance is now not then.
Bob Conant: And it just holds in for all the documentation. You can see what it was last time it was in and what it is this time, how it's progressed, you know, things like that.
Bob Conant: It really is. It's, for me, it's just one of those things of, it's the transparency to the customer. They're actually looking at what we're looking at. You know, it can be done in relatively real time, so. You know, that part of the technology of the days of, you know, having to try to explain it to 'em and then when they come in, show it to 'em you know, hang onto the parts for 'em.
Bob Conant: If they wanted them, you know, nowadays you're not seeing that because it's all already documented. They've already seen it. They could tell that it was bent or broken or leaking, whatever it is. So all that is already handled and it's just, it makes more seamless and more value to the customer for sure.
Jimmy Lea: Yeah. Bob, did you have clients or customers that you'd take pictures in your DVI and you're like, yeah your upper sway bars are worn out, or your ball joints are worn or that bushing is gone or that motor mount and they, you send 'em a picture, so to you or to your technicians, it's like, yeah, right here.
Jimmy Lea: That motor mount, a client looks at it and goes, dude, I don't even know what I'm looking at.
Bob Conant: Right. Yes. Yeah. Well, yeah we've had that 'cause before, before auto vitals and the other DVI companies out there, they're, we were physically still taking pictures with cameras and up on a hard drive and storing all those, you know, so it was, yeah.
Bob Conant: People don't know. I mean, it's just like if someone showed the inside of your body without having, you know, someone explain it to you, arrows, circles, whatever it is, you'd have no idea. So that, that, that's where all that information that ties in with it comes in handy. I mean, all the documentation of stuff, of what a water pump does and all that kind of, you know, value to the customer.
Bob Conant: And it is teaching them to get a little bit more, you know, educated on the subjects.
Jimmy Lea: Yeah.
Lauren Thunen: Yeah. And Bob I know your shop is truly best in class in terms of the documentation I was just pulling up, you're at about 60 pictures per inspection. Yeah. So how many topics are you doing on your inspection?
Lauren Thunen: And then like Yeah, talk a little bit about that picture count and how you get there. Because if you're watching this webinar, you don't already know. The the picture rate is one of the highest correlations to average repair order value when we take a look at our inspection. So what's driving that, that picture count for your shop?
Bob Conant: One guy that's picture happy, that doesn't, does a good job. So the other guys are learning from that, right? So we have, we obviously we have our operating procedure of what we expect to have pictures of all the good, all the bad. And a lot of it is for documenting. I mean, if it's good and the tires are good and the struts and shocks are good, and you're documenting that you have that information for future, so. We had one guy that was, I'd say, overzealous on pictures and and he was actually the backbone of looking at it going, Hey, look at, we can get all these pictures. You're not still spending a ton of time doing it and document it for down the road.
Bob Conant: You know? So at least for me, if I'm an advisor and I'm, and you call up and you say, well. You know, what kind of condition the vehicle's in. I've got enough pictures to really to be able to evaluate it and say it's great or it's not. And without that it's, you know, it's, we used to take pictures of all your basics, you know, your steering, your suspension stuff, your tires and then you get into more stuff with, you know, frame condition points and just exhaust, you know, everything in between.
Bob Conant: Yes. You can look at it and I have no questions for the technician, which means I can service the customer better, give 'em more information. It's just it's been a huge thing. I almost thought it was too many pictures, but I mean, six, an average of 60 is, is a lot. And but it's great for documentation.
Bob Conant: I mean, we've had it, we've had it save our butt, you know, from time to time. And it's great to be able to have the customer see what we're seeing.
Jimmy Lea: So Bob to, to your 60 que pictures. I mean, that just absolutely blows my mind. I remember the early days of auto vitals and I was really pounding the drum saying, come on, you guys get 12.
Jimmy Lea: Make your standard 12 pictures per DVI and it'll increase your average repair order. 18%, 20, 20 pictures. Yeah. Average 20 pictures. Okay. CYA. Totally different topic. Yes, 60 pictures is definitely gonna cover your behind. Do have you analyzed each of these technicians to say, all right, Joe, 60 pictures, your average repair order is $1,800 or $800 or 900, what?
Jimmy Lea: Whatever the number is, you're this number. And Mary and Susie, your dvs are 20 pictures and your average repair order is. $300. Is there that plain and obvious of a correlation between these two?
Bob Conant: No. No. And it's not really cut and dry. And actually we just had this conversation about it is 60 pitchers too overwhelming?
Bob Conant: You know, either way it goes back to most customers don't know what they're looking at. Which is why it's our job to advise them of what they're looking at and the condition of it, right? Because I mean, that, that's actually the best part of my job is our job here really is to just educate the customer of the condition of the vehicle.
Bob Conant: Whether you have it done here or not really, doesn't matter to me. If you can trust me, then you'll have it done here. Otherwise, my job is to inform you what it needs and when it needs it and, you know, so that's why we document as much as we do.
Jimmy Lea: Oh, that's good. That's really good. And I like the advocacy that you're having for the vehicle that says, Hey, this is what your vehicle needs, whether you have us do it, or Uncle Fred or whomever, the guy down the road, or you take it back home to Arizona and have somebody down there do it.
Jimmy Lea: Doesn't matter. It still needs to be done. Here's the information. That you make a decision.
Bob Conant: Yes.
Lauren Thunen: Yeah we have a couple questions in the chat about the pictures. So Kelly was just saying picture 60 pictures is impressive. We average 40 sal. Just ask, similar to what you asked Jimmy, is there a point where it's too many overload also.
Lauren Thunen: Hi Sal. It's nice to see you. We haven't chatted a while. I think there it's, it, you definitely toy a a fine line there. Think probably Bob, what's setting your shop apart as well as your ability to walk the customer through the inspection. And also a lot of those pictures I know 'cause I've taken a look at your inspections are on items that are good.
Lauren Thunen: Where the customer might not be spending a ton of time going through that good section of the inspection. They're just like, oh, great. They're taking photographic evidence. They're not just looking for the things that are bad on my vehicle, they're actually documenting for my reference what's good. And then you can use those pictures later on to compare when something moves into the yellow or red of like, Hey, this was great last time we took it into the shop.
Lauren Thunen: No issues on your tread depth, but now 10,000 miles later, you're gonna have to start looking at replacing your tires. So I think it's also just like it's not all 60 photos in the red and yellow where folks are swiping through. 60 photos. It's spread out through every single inspection topic. And that's something that at Auto Vitals, we really remind folks is take pictures of what is good.
Lauren Thunen: That's so important. And then I also just wanted to share, it's kind of had this off the cuff, you're gonna see my whole desktop. I'm sorry about that. Just the way this Zooms share is, but I'll spread it out, is I actually took a look at all of our 2024 shop data that we collect and I graphed.
Lauren Thunen: Number of pictures in average repair order. So again, this is all auto vitals clients. There's some weird stuff that happens like in this five to 20 range where there's not a ton of change, but when you get into that 30 plus, I didn't map 60 plus 'cause there's not a ton of shops in that area, but you're the only one dramatically increases when you move past that 30 threshold range.
Lauren Thunen: The biggest thing is because you're giving something for the customers to look out. Right? Obviously, folks that are having 40 plus pictures are not only recommending two items, so there's some correlating factors, but you know, numbers don't lie. If you're getting into that 30, 40 range, your a RO will increase.
Jimmy Lea: That's, that is a cool thing to see.
Bob Conant: And I say we, we've seen that, and a lot of it is it's really just informing 'em. I mean, it's you're. If you're looking at the vehicle and looking it over, you're gonna find stuff that's needed. Right. So, and as long as you're not ramming it down someone's throat you know you're gonna, you're gonna eventually get the sale on him.
Jimmy Lea: Oh, yeah. Because if you showed me 60 pictures and it was all red and yellow, you know, emergency, you have to do it now. I'd be like, deuce is I'm trading her in. I'm done. Yeah. This is I'm driving Swiss cheese here. No.
Bob Conant: Yeah, I don't know if you could tell how many are good or how many are marked good or not, you know, off of it.
Bob Conant: Then, you know, we take a lot of good, we take a lot of pictures of good stuff.
Bob Conant: Because that's really what matters. You know, what's the condition of the vehicle? What do you need to get out of it? How long is it gonna last? When are you gonna need it? Those are really the biggest questions.
Bob Conant: Right. So.
Jimmy Lea: Yeah. What's your dreams with this vehicle? And there's probably some people that you talked to, Bob, where it is been for sale for. It's gonna be sold next month for like the last three years.
Bob Conant: Right? Yes. That happens.
Jimmy Lea: It does. It does. And maybe that's their true intention. I do intend on selling it, but then when it comes down to it, they just don't and who knows, but to be safe on the road, right.
Jimmy Lea: These are the things you need to pay attention to. Yep. Absolutely.
Lauren Thunen: And I saw that Kelly was interested in the graph that I shared, so I'm just gonna show one more graph that is similar in what we're talking about. So the other thing that I'm sure Bob and our shops folks a lot on is customer research time, which is just the measure of how long folks are looking at the inspection.
Lauren Thunen: And again, keep in mind these are all auto vitals clients, so these are not just specialty shops. But if you're, you guys can see my screen, right? Yeah. If you're able to get, this is the most direct correlation. If you're able to get a customer looking at an inspection for over 400 seconds, statistically compared to someone that's looking at the inspection for a minute and a half, your a RO is gonna be over double that amount if you're following industry best practices.
Lauren Thunen: So again, that's tying into what Bob's selling telling us is like. To get someone to look at the inspection for over 400 seconds, you have to have a lot for them to look through and for a lot for them to research. And your service advisors have to be making sure on the phone, Hey, pull up the inspection.
Lauren Thunen: Let's walk through the yellow and red together. Right? So it's a combination of the A great DVI process, a great selling that's from the service advisor and setting great customer expectations of what you want them to do with that DVI when you send it to them.
Jimmy Lea: Yeah. Yeah, that makes total sense too.
Jimmy Lea: If you, the people that are that down at that lower range, they're looking at it for a minute and a half, two minutes, three minutes, that's the quick decision of, yeah. Yeah. Okay. Yep. Nope. Okay. Do it. Those are the things. Yeah, let's do it. When it gets up into that $1,100 average repair order, it's probably got three or four or $5,000 worth of work that needs to be done.
Jimmy Lea: They're having to look at it to prioritize. All right, Bob. What do I have to do today and what can I do in 60 days and what can I do in 120 days?
Lauren Thunen: Yep.
Bob Conant: Yep. That's the whole purpose of it. And it, and again, yeah, it is a lot of pictures and you gotta take good quality pictures and informative pictures. So it's, but we've been looking, trying to look at that to see is it too much?
Bob Conant: Are people, and we've been asking our clients and. For the most part, the response is, wow, you guys, you know, I didn't know there was that much in my vehicle. And you know, you guys really take a lot of pictures and look these things over. So, it's, everything's a work in progress. So, you know, you have to look at that and say, okay are we giving the customers what they need?
Jimmy Lea: And it sounds like you are, it sounds like the customers are saying, no, don't change it. We like what you're doing. Thank you.
Bob Conant: The response has been overwhelming, especially for new clients that come in that, that, you know, a lot other shops may not be up to this speed and you're, they're getting a report and they're like, oh my gosh, I had no idea.
Bob Conant: So, which is what you want?
Jimmy Lea: Oh, that's good. That's super
Lauren Thunen: good.
Lauren Thunen: Yeah. Awesome. Cool. I, well, I wanna change, pivot a little bit slightly 'cause that was a great conversation about the DVI process. Bob, I know you had mentioned that one of the biggest things that your focus when you became the owner of Bob Kaiser's repair is on efficiency.
Lauren Thunen: So what are some of like the biggest wins that you've made in the shop since you've been in the shop? To increase the overall efficiency.
Bob Conant: I think a lot of it, it starts with my staff. I mean, I've got a, I've got a great group of guys now, and I think for that is they were, they're all on board and they're bought into what we're trying to accomplish.
Bob Conant: And there's a lot of communication back and forth to where everybody has input. So if you want things to change, you need everyone to make a change. And for me, that's been the biggest thing for me, is just sitting down with everyone and going, all right, hey, let's figure this out. How can we do it?
Bob Conant: You know, instead of me just saying, this is how we're gonna do it. You need everyone's input. So I think that has increased the flow of knowing why we're doing things and pushing it in that direction. So yeah, for me it's, it is been my staff. It's, I've been very fortunate that it is been easy.
Bob Conant: I haven't had a lot of fight back on any of the things we've imple implemented.
Lauren Thunen: Yeah. And why do you think that is that you haven't had a lot of pushback? 'cause I think that probably speaks to you being a great leader. And I think that's one of the most important things as a shop owner.
Lauren Thunen: So what have you done to, to get everybody on board? Give yourself some credit.
Bob Conant: I like to have fun.
Bob Conant: For me. I want to come to work every day and have fun. Right? We all know we're gonna have problems. We all know that this industry and this job can suck at times. Right. So it's the best of what you it is whatever you make of it.
Bob Conant: And for me, I've always told my advisors and my techs look at, we know things are gonna go wrong. You know, it's all on how you respond to 'em. That makes a difference. So for me, when things go wrong, for me not flying off the handle and, you know, handling it in a certain manner, you know.
Bob Conant: Gets them in that same kind of habit of affecting, you know, addressing things the same way. So, yeah, I think for me it's just been I like to have fun. I do a lot for my staff. We do a lot of things together and, you know, cooking breakfast and lunch and, you know, cornhole games and all that kind of stuff in the shop.
Bob Conant: So I, I think I just like to have fun, which I guess my personality kind of goes to them and lets them en enjoy their job, I guess.
Lauren Thunen: Yeah. Awesome. Yeah, that's great to hear, especially with, I know a ton of shops are having retention issues across positions in the shop and like that you can't underrate like liking where you work.
Lauren Thunen: You know, even if you're not getting paid as well as the shop maybe next door or there might be a different opportunity that you wanna explore if you like going to work. Most folks are not gonna be shopping around for another job.
Bob Conant: Yeah it definitely makes a difference. I mean, your culture and atmosphere are huge in re retention and nowadays, I mean, you know, it's bad enough trying to find, everyone is dealing with staffing issues and it doesn't matter what industry you're in, I don't know where everyone went, but everyone's having a hard time finding staff and in this industry it's even worse.
Bob Conant: A lot of the older guys are, you know. Away and the new generation doesn't wanna learn like the older generation. So it's a little challenging at times.
Lauren Thunen: Yeah. Yeah. And Jimmy what from like the Institute's perspective and your perspective, when you think about workflow and efficiencies, what are some of the common areas that you guys recommend shops taking a look at in their process to improve efficiency?
Jimmy Lea: Yeah, thanks. That's a great question. I think a lot of that falls right in line with the technician and their efficiencies. What I see a lot of shops is that they are 50% or lower, the 50% or worse in their efficiencies. The national average is about a 70%. At the Institute, we're shooting for a hundred, 110, 120% tech efficiency.
Jimmy Lea: How do you do that? Well, it takes some leadership, it takes some direction, and it getting their buy-in to do that is paramount. So when Bob stands up and talks to his technicians, talks to his shop, talks to his people, he's probably asking a lot of questions like, Hey guys, what can we do to be more efficient?
Jimmy Lea: I want your input first. Then we'll talk about what Bob sees that he thinks needs input. Bob is that about right?
Bob Conant: Yeah, no, that, that's, I mean, right. I mean, they're, you know, again, they're the ones that are pedaling the bike, right? So, you need to get the, you need to get their input too to let just find out what they know and what they know works and what doesn't work and then you still guide it from there.
Jimmy Lea: Yeah, so I'm gonna use just some numbers, easy numbers, easy math 'cause it's public math is never a good thing. So, for example, if your door rate is $200 and your technicians are 50% efficient, you are not making $200 an hour. You might be making a hundred, maybe 120 because those texts aren't just, aren't efficient.
Jimmy Lea: Improving their efficiencies through parts, how they're ordered, how they're brought in, how they're staged for the technicians. Huge. Putting your filters by the quick Lube Bay, paramount. Why are you making the tech walk six miles a day just to get those filters? Put the filters close. What can we do? So ask, I would start by asking the technicians, what can we do inside the shop?
Jimmy Lea: What have you noticed? What do you, what would you change? If you had your magic wand bing, and there was something you could change inside of our shop to be more efficient, what would you change? And you'd be surprised at what they come up with. Yeah. Yeah. Hey, boss, we need a coffee machine in the shop.
Jimmy Lea: Because there's a black trail from the shop to the coffee machine inside of the customer waiting area. Right. Bob, you're laughing. Is this your story?
Bob Conant: Oh no. They're pretty good.
Jimmy Lea: Because if the techs don't have their coffee machine out there, they're gonna come get the coffee. So what can we do to be more efficient?
Jimmy Lea: They can have a coffee machine in the shop. Saves them all those steps, all those back and forth, and the customer waiting area is cleaner. The customers have a better experience. Your technicians aren't gone as long. They're able to stay at the vehicle longer. It just goes a long way. I know some shops that, that they're buying Red Bull and Monster and Rock Stars and whatever it is that the technician wants to consume during the day.
Jimmy Lea: Coke, Pepsi, Dr. Pepper, mountain Dew, whatever it is, it doesn't matter. They keep the fridge stocked for 'em so that they don't have to leave, go to the gas station and then come back. They keeps 'em at the shop and they're more efficient because they're constantly working inside the shop. They don't leave.
Jimmy Lea: In fact, there's another shop up in, I think it's up in Michigan every day. Lunch is at the shop. All the technicians that the shop owner brings in lunch every day, they eat together. So techs don't leave. They don't have to leave and come back. They're there, they get some relaxed time. So it only takes, what, 20 minutes, 15, 20 minutes to eat.
Jimmy Lea: But if you're going offsite all the time, well, it's 10, 15 minutes to drive. You wait, you order, you have to shovel quick. You're 10, 15 minutes back. And what if you're late? Now you're 5, 10, 15 minutes late, getting back to the shop. I thought it was brilliant that this shop owner brings in food for everybody, everyday.
Lauren Thunen: yeah. Yeah, it's a good to call out that there's a lot of things that, you know, technology can help with on terms of the efficiency, but also there's a lot of quick wins that regardless of what you're using for your workflow process, just sitting in the back of the shop. And, you know, something that we did at Lauren Thunens, I'm sure Jimmy you'll remember this when we first started, is we went and.
Lauren Thunen: Clocked how long? With a stopwatch it takes technicians to run from the front to the back of the shop to ask the service advisor questions. It adds up to like nine hours a month per technician of wasted time running back and forth to the shop. So just things like whenever you can minimize running from front to back of the shop, whether it's implementing like.
Lauren Thunen: An automatic dispatching system through workflow or an internal chat or moving the fridge to the back of the shop, you could save nine hours a month per technician. That's a lot of money. And I just wanted to compliment Bob, I was just taking, again, taking a look at your numbers. You have one of the best technician efficiency rates I see when I just, you know.
Lauren Thunen: Pull numbers, you're a hundred over 130% efficient for your technicians. So again, going back to what Jimmy mentioned, that if your walk-in rate's $200, you're able to make more than $200 an hour, right? Because your technicians are producing more than what they're billing. So just a great job. You numbers are looking great.
Jimmy Lea: Love it. That's super awesome. Congrats.
Bob Conant: I got great staff. I got a great staff. That's for sure.
Lauren Thunen: And then Bob, one question for you. Someone in the chat asked how many cars a week do you do at your shop?
Bob Conant: We're scaled down. It's kind of funny 'cause, you know, when I was prepping for looking at this webinar, I'm like, you know, some of the challenges we've had, I'm like, I remember we used to be a breakdown shop and we're a four bay shop in a old bus, you know, garage.
Bob Conant: It's got two bay doors and four lifts. We were doing, you know, over 500, 500 cars a week and we were, or a month, I'm sorry. And we were, 'cause we were just a breakdown shop. And then we kinda said, all right, we need to slow it down and, you know, service our customers. Look these vehicles over and take the time and give the customers what they should be getting.
Bob Conant: So now we're down to about, we average probably about 60 to 70 cars. I'd say a week. Yeah.
Lauren Thunen: Nice. Yeah, and I think you, you call that an important thing and I think a lot of shops especially like that move into a more robust DBI process start to actually reduce their car count because they're getting more out of every car and kind of shifting the focus from turning and burning to like, let's spend a little bit more time on every car.
Lauren Thunen: And typically you end up making a little bit more money anyway with that strategy.
Bob Conant: Yeah, I mean for ours it was, is we realized we weren't servicing the customer and we're going back a lot of years, but we had a customer come in with a leaking fuel filter and his car had already been in, you know, three times for that year and he gets towed in because he has a fuel filter leaking.
Bob Conant: Well, whose fault's that? Well, it's clearly ours. So, you know, that, that's kind of when the light bulb went off and said, Hey look, we need to make sure we're, it's not just a breakdown. You get it in, it's broken down, you fix it, you get on the road. We need to start looking these vehicles over. And, you know, for me.
Bob Conant: It's, I'd love to see that our tow in rate is low for our clients because we're maintaining their vehicle and advising on what it needs. So if they're getting towed in, either we did miss something or it's just because it wasn't done when it should have been done when they were advised.
Bob Conant: So, but again, that goes, falls back on us and that's our job to advise them. We're the professionals.
Jimmy Lea: That's awesome. I've heard a lot of shops that auto repair, they also have a towing side of their business. Once they're educating their customers, their clients using technology, dvs, texting, communicating videos, their tows went down so much that they decided to sell off their tow trucks because you're not towing your clients in anymore because they're not breaking down.
Jimmy Lea: They're maintaining their vehicles. Not breaking their vehicles.
Bob Conant: Yeah, absolutely.
Lauren Thunen: Awesome. Well, we are, we got about five, five minutes left. So just a note to attendees, if you have any questions for Bob and Jimmy while we have them. Throw them in the q and a. It's at the bottom of your screen. You might have to, can we just start, I know this is one of the fastest 45 minutes I think since I've been back doing the digital shop talk radio, and I wanted to ask both of you.
Lauren Thunen: Your parting thoughts? Bob I'll have you go first of when you look over like the past four years as being the business owner and making that transition, what is your biggest piece of advice to the other shop owners on this webinar to really take, continue to maximize their business and grow their business?
Bob Conant: I, you know, that's a great question. I think for me it's just, I, I've. For me, I've been me to my employees and I don't hide anything. I share everything with 'em. They know all the goods and the bads. So for me, I think that's been the biggest difference for me from other employers that I've worked for, is I'm more upfront and honest.
Bob Conant: And what you see is what you get. I'm not hiding numbers, I'm not hiding, you know, the goods and the bads because they should know it. They're all part of it. So. Yeah, I would say that's it for me.
Lauren Thunen: That's awesome and that's something I think I hear echoed through all of our top shop owners and you know, if you're providing the transparency to the customer on the DVI, you have all that information, all of the numbers through the business control panel, through your point of sale, I share that, be just as transparent with your staff. Because that is one of the biggest things in terms of retention as well, folks want to know how the business that they're working for is doing. No one wants to be blindsided. It's okay to have a bad month. It's okay to even have a bad year. As long as folks feel like they're on board, they know what's going on, and that you're really working to make changes 'cause you're gonna have a bad just happen.
Bob Conant: Yeah, we're all people. We're all in the same boat.
Lauren Thunen: Yep. Awesome. Yeah, that's great, Bob. And then, you know, Jimmy when you're thinking about, I know you visited thousands and thousands of shops. What is your biggest, you know, if you could give one piece of advice what's the biggest thing that you echo?
Jimmy Lea: Thank you. I, yeah. And I have been in thousands of shops all across North America, which has been such a blessing to see each one of these shops. They're unique. They're unique. What, what makes them different? What makes 'em stand out? What is that thing that they're doing that is just a little bit different?
Jimmy Lea: And it's wonderful. Some shops you can walk in and you can feel the tension. You can feel a horrible culture. It's so hard. There are shops that you can walk in and feel the excitement and the light and the energy. I. It's just absolutely paramount that we as business owners take care of our people to Bob's credit and props to you, Bob, for informing your clients not your clients your staff, your people, your team, that they know all the numbers.
Jimmy Lea: That beauty of doing that is you may be developing the next entrepreneur and helping him or her understand how to run a business properly. So that they can be efficient in their shop or in their business, who knows what they're gonna do, but you can help them to see what's coming down the road.
Jimmy Lea: Props to you for doing that, bro. So my recommendation as I go around and I see a lot of shops is start where you're at. Look at your, a lot of shops come to the Institute and they want. Coaching and training. My car count is down. My average repair order is down. I need to ramp up my marketing.
Jimmy Lea: Okay, well, let's look at what's going on inside the machine first before we go marketing the machine. Start with those efficiencies inside. What are you doing? How are you doing it? Is it documented? Does everybody understand the process, the program, the mission, the vision? Do they all understand why we're working here every day?
Jimmy Lea: That is gonna help that shop more than marketing. Marketing might sink that ship. If you are an inefficient shop, and let's say for example you're doing a hundred cars a week and you do some marketing and now you're 150 cars a week, your shop can't take that. You don't have the policies, process, procedures in place to take care of the people, the product and the program.
Jimmy Lea: It's not gonna work. Work inside, get the efficiencies down. Then we can look at ramping things up. And like with Tracy Holt, he his shop, the natural result of not paying attention to car count and average repair order, looking exclusively at the efficiencies. The beauty of that, the come around is.
Jimmy Lea: Because they were more efficient. Their average repair order went up because they were more efficient, they had more time to take care of more cars. The car count came up. Yeah. Yeah. And now and Tracy is in group three, so shout out to group three as well and shout out to any, all, any and all mastermind groups when you are in that peer environment, you've got.
Jimmy Lea: Another set of eyes looking at your business. We become snow blind to certain items or things. When you have an accountability partner looking at your business, he or she's gonna point out things about your business, Bob, that you may be glance over. You don't hold yourself accountable for. They're gonna hold you accountable for it.
Bob Conant: For sure.
Lauren Thunen: Yeah. Well, that takes us exactly to, to 10 :45. So thank you so much Bob and Jimmy for spending almost an hour. I know you both are extremely busy and your time is very valuable. So thank you for sharing it with us. Anyone watching this, we will send the recording to you via email.
Lauren Thunen: The email that you registered with. After this, if you have any additional questions, just reply to that email and we'll make sure that your questions get answered. We'll also include a link to the Institute's website if you're interested in how to stay in touch with Jimmy. And if you want to join one of the groups, get some more information, that'll all be included in the fall email.
Lauren Thunen: So stay on lookout for that. With that being said, thank you so much Bob and Jimmy, I'll follow up with you over email as well. And have a great rest of your day.
Bob Conant: Thanks, you too.
Jimmy Lea: Thank you. Thank you very much.
Lauren Thunen: Bye.

Friday Mar 28, 2025
112 - Great Leaders Don’t Just Manage—They Inspire! 🚀
Friday Mar 28, 2025
Friday Mar 28, 2025
112 - Great Leaders Don’t Just Manage—They Inspire! 🚀
February 20th, 2025 - 01:03:42
Show Summary:
In this impactful episode, Cecil Bullard of the Institute for Automotive Business Excellence shares powerful lessons on what it means to be a truly inspiring leader in the automotive industry. He breaks down how leadership is more than management… it’s about creating culture, communicating vision, and empowering teams. Through personal anecdotes and practical advice, Cecil outlines six core stages of leadership, including building trust, fostering connection, and showing genuine appreciation. With a focus on aligning actions with values, Cecil challenges shop owners to think deeply about the kind of business and culture they want to build. This is a must-listen for anyone looking to lead with purpose, clarity, and heart.
Host(s):
Amber Wright, AutoLeap
Guest(s):
Cecil Bullard, Founder & CEO, The Institute
Episode Highlights:
[00:01:35] - Leadership is about creating a culture of excellence, and it starts with the owner.[00:04:40] - The best leaders focus less on words and more on behaviors and consistent action.[00:06:42] - Leadership is about inspiring others with your vision and turning team members into leaders.[00:13:35] - Your attention as a leader should be on helping others succeed, not just fixing daily problems.[00:17:32] - Inspiring teams requires sharing a meaningful vision, like building a “cathedral,” not just laying bricks.[00:20:12] - Core values like "do the right thing" and "always be learning" are central to great leadership.[00:25:08] - Empowerment happens when you allow your team to make decisions and learn from mistakes.[00:29:21] - Trust is built through consistency, confidence, and being aligned with your company’s values.[00:43:44] - Show genuine appreciation, listen actively, and surprise your team with thoughtful actions.[00:56:03] - Clear communication boosts morale, deepens trust, and makes people feel truly heard.
In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.
👉 Unlock the full experience - watch the full webinar on YouTube: https://www.youtube.com/watch?v=ctYimcH_5FQ
Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!
Links & Resources:
Want to learn more? Click Here
Want a complimentary business health report? Click Here
See The Institute's events list: Click Here
Want access to our online classes? Click Here
________________________________________
Amber Wright: Hello everybody. Just waiting just a second while we get on. Super excited to have you guys here. While we have Cecil joining us, I am going to first and foremost, I apologize we were a few minutes late. I had some technical difficulties with my Zoom webinar link where it was being used by a colleague for another call and unfortunately I didn't realize that you couldn't have two people on your Zoom links at the same time.
Amber Wright: So I need to apologize for a few minutes late and do a couple housekeeping notes. Hey, Cecil. Do a couple housekeeping notes while we get up and ready. We are recording this session right now and so the recording will be shared with everybody by tomorrow at the latest. So if there's for any reason you will have to drop we will share that with you.
Amber Wright: We do wanna make sure that we make this as engaging as possible. I love to see that everybody is already in the chat here messaging us and saying hello. So please make sure to ask your questions. In the chat I will pose them to Cecil. But really here today we are to talking about how to become an inspiring leader.
Amber Wright: I know it seems like a fluffy conversation, but it's a really important one. Especially as we just ended the summit. Cecil, you guys had a fantastic summit, but one of the things that was really discussed was creating culture of excellence. And one of the biggest takeaways was. That it needed to come from you as a leader, as the owner in the shop.
Amber Wright: And so excited to have a conversation about what a great leader is today and how it's not just about managing your shop and your employees. So, we're gonna talk about things about fostering trust, strengthening communication, and developing high performance teams. And for those of you just joining, before I hand it over to Cecil, I do again want to apologize for starting this a few minutes late.
Amber Wright: Had some technical difficulties where my zoom was being used by a colleague and couldn't start this on time. And I also see that Jimmy Lea is here and I wanna give a huge shout out and happy birthday to him as well. So let's definitely show him some love. So Cecil, hi.
Cecil Bullard: Howdy.
Amber Wright: Howdy.
Cecil Bullard: Wow. Good to be here.
Amber Wright: Thank you for being here. I appreciate it. And thank you for bearing with me. I know that is not ideal. So appreciate it.
Cecil Bullard: Yeah it's funny, you know, you think you've only done a thousand of these, so probably shouldn't be stressed at all. But I'm one of those guys that I'm like 10 minutes early, and if the plane's gonna be delayed, I'm gonna be stressed.
Cecil Bullard: So we'll see If I can't mellow out here.
Amber Wright: I, I am the same way. I am very poignant about time. It's really important. So I was on the back end stressing with you, so I do apologize about that. All right. Handing it over to you.
Cecil Bullard: I am I am as ready as I'm gonna be. So, welcome everyone. I'm Cecil Bullard with the Institute for Automotive Business Excellence.
Cecil Bullard: We've been around for, I would say since 2011 and I've been coaching and consulting for a bit longer than that. I think I started my journey in 19 80 long time ago. So, we're gonna talk about leadership today, and I'm the kind of guy that when I'm teaching I don't mind having questions and I actually think the questions make it better.
Cecil Bullard: So if you have questions, please go ahead and ask 'em. Amber's gonna be paying attention to that. And let me know what the questions are. If you would like a workbook, and I'm gonna explain this class originally was probably an eight hour class that's been honed down to a four hour class that's now been honed down to a one hour webinar.
Cecil Bullard: And so the workbook that I decided to give you has a lot more material. It has the eight hour class material in it, and we're gonna cover the most salient pieces as we talk today. And if you'd like a copy of that workbook, you can go right here to this QR code and and go ahead and get it.
Cecil Bullard: Now. I'm gonna go ahead and get started and go. So, you know, leadership is, it's about creating culture. What's the culture within your company? Do you have a you know, do you have a culture of productivity? Do you have a team culture? Are we all on the same page? Do the people you know, respect us as leaders within our company?
Cecil Bullard: I think that. You don't have to like me necessarily, but you have to respect me if you are going to work with me within my company. And so I have to be respectable. But it helps if you're likable, frankly. I think when you talk about sales and management, and sales and leadership have a lot in common in sales.
Cecil Bullard: I, I, people need to like me, they can't dislike me. And as a leader in a way, I'm selling my ideas, my thoughts, my vision for my company, to all of the different employees staff team members, however you wanna call it. And at our summit week and a half ago, two weeks ago. One of the comments was made that the leader's job is to create other leaders.
Cecil Bullard: And I think in the last two weeks I've had a lot of conversations with shop owners. My clients are clients. We do coaching and consulting, 20 groups one-on-one stuff sales training, et cetera. I've just had so many conversations about guys that want their business to go faster, do more create more profit less fires, et cetera.
Cecil Bullard: And they I don't know that they completely and absolutely understand that a lot of that has to do with leadership. Are you leading and guiding people? So I'm gonna, I'm gonna rock and roll here and see if we can get as much as possible out in the next hour. Leaders it's about your actions and your behaviors.
Cecil Bullard: So, I was in a meeting yesterday with a guy that's got, I believe, 12 shops at this point in time. And they're really struggling because they have a good culture. But they're not, all of the people that are in the key positions have never necessarily run a shop before. And so they think that I can just put this if I have good people and have good culture, I can just say, go do this and it'll get done.
Cecil Bullard: And so during this particular conversation I had yesterday it was less than an hour long. I think he said, it's my fault I don't know, 12, 15 times. And finally I said. You know, stop talking about how it's your fault. It's fine to take to say it's my fault. Start solving the problem, right?
Cecil Bullard: Start. It's about your actions and your behaviors. It's not about what you say. And I think if you don't have if you're not doing the right things and setting the right example for your company, then you're not, they're not gonna follow you. They're not gonna lead you. And if you don't have a good vision, if you don't have something you can share that where they say, wow, I can get what I want.
Cecil Bullard: If I join in here and I give all my time, energy, life et cetera to this company, I can also get what I want. And so what are you doing where, you know, where are you? Are you talking about it all the time or are you doing, you know, 10% talking in 90% doing and I think. That a lot of people would maybe misinterpret this conversation right here to, well, oh, Cecil, so you're telling me I need to be writing up work orders and working with customers and I need to be handling fires and angry customers and I need to be fixing cars and all of that.
Cecil Bullard: And I would say absolutely not. My job as a leader of the company is not only to help create the vision and solidify the vision, but help everyone in the company to be successful and give them the tools that they need to achieve the vision. So, you know, if whether that's money, a CEO of the company, the financial security of the company is solely on my back as a leader in the company when we.
Cecil Bullard: Are starting to drift from our original vision. It's up to me to bring us back to our vision. When I bring somebody in the company that has strong will somebody with a great personality who can really drive the company forward, it's up to me to help them to use that energy in a very positive way.
Cecil Bullard: So what are you actually doing? You know? And if you're coming in to your business every day and all you do is complain about everything, that's not right. If all you do is come in and you know, pigeon management, you come in, you fly in your crap on everybody and then you leave that's not inspiring and that's not leadership.
Cecil Bullard: If all you're doing is putting out fires, I. In order to be a leader, you have to lead, which means you have to have time to think about things like culture and mission statement and vision, and what are the foundational principles that we wanna operate on as a business. So, what are you doing?
Cecil Bullard: And where are you paying your attention? Right? Don't get me wrong. So, I'm a, those people that know me would tell you wow, he's a pretty high strung guy and he's a bit neurotic. Neurotic to the point. We have a cooler here when we bring people here. We have, you know, Coke and Red Bull and, you know, all the stuff.
Cecil Bullard: And I like to have the cooler full all the time, and I like to have all the labels out. And then I don't wanna have any garbage on the counters. I don't, I, I don't want things that are kind of left. I. Unattended, stuff like that. And over time, you know, you work in a place and you walk in every day and you know, something gets left out or something gets left on the counter or maybe some of the cans aren't lined up.
Cecil Bullard: And you know, you could, I could come in every day and find something to be upset about and say, wait a minute. I told you guys I want blah, blah, blah, blah, blah. I actually did that last night. I did it in a very, I thought, a very subtle way. I brought my manager in and I said, Hey, you know, let me walk you around the facility and let's talk about whether or not the facility really sends the message to our clients that we want that facility to do.
Cecil Bullard: And you know, we were able to point out six or eight things that weren't quite where they needed to be. And of course, I came in a little late this morning. I get to do that occasionally. And everything had been kind of cleaned up. All this stuff had been kind of put where it was supposed to be.
Cecil Bullard: And you know, it's kind of, it's kind of exciting. I didn't have to come in and scream and yell or I'm not spending a lot of time on that. So where are you paying your attention? Where are you spending your time? Are you spending your time and paying your attention on you know, helping people succeed, have the tools they need for their job learn how to make great decisions et cetera?
Cecil Bullard: Or are you spending your time with your head buried in a car, or buried at the front counter? I've got a guy that's running a pretty well run shop. I mean, the numbers are good. And he wants to be the manager of the shop. But really all he has time for is to write service and.
Cecil Bullard: Somehow you have to find time to lead and to inspire people. So, what do you reward and what do you punish? I think this is a place where Kent, my son, those of you again, that know the company ha has really helped me because I grew up in a family where my dad would come in and look and find whatever was not right and go off the deep end a little never really saying, wow, you guys have made a real effort here or whatever.
Cecil Bullard: It almost cost me my marriage in the early parts of my marriage. My wife and I just celebrated 42 years yesterday. But I think one of the things that Kent talks about is you reward people for their effort, right? I, I tried, I put the energy, I put the effort in, maybe it didn't quite get the result that I want, but even if we didn't get the result, now that gives me the opportunity to say, okay, that didn't get the result we want.
Cecil Bullard: And now what else can we do? How do we, you know, how do we change our behavior if what we're doing is not getting us the results we want? What do we do differently that we believe will get us where we want? And I think I think I'm a pretty good leader. We have a company that's growing fairly rapidly.
Cecil Bullard: I think we have a really good culture here. You know, I have my frustrations, but I. I think that, in part, I'm good at that because I'm constantly going through this. Okay what else could we do? Right? That didn't get us the result. I'm not beating people up. I'm saying, you know, wow, we put a lot of energy and effort into that.
Cecil Bullard: That's not gonna get us what we want. So now what do we do? Right? And guiding people to the right answers. And so what is the allocation of your attention and your resources? If all of that allocation is going into the let's get cars fixed and get money in the bank? I think you're in trouble because you never build the culture or spend time on the vision.
Cecil Bullard: Kent taught a class last night having to listen in, and I thought there was something that came out of it that very applicable here. Guy comes upon two brick layers and one of 'em is they're both sweating. They're both working really hard. One of 'em is really dour and unhappy and et cetera.
Cecil Bullard: And the other one is just whistling away. You know, he's sweating just as hard as the other guy. He's laying just as many bricks, but he's happy as can be. And the guy asked the two brick layers you know, what are you doing? And the guy that's the sour guy says, well, I'm laying bricks.
Cecil Bullard: Can't you see that? And the other guy says I'm building a cathedral that will house God and where my community and my family can can come together. And so. Somebody in got that idea into the head of the one brick layer at least that we're building that cathedral.
Cecil Bullard: And the other brick layer is only laying bres. I would ask you, is your leadership strong enough that your team understands you're building a cathedral and you're not just laying brakes? And when you put all that together that creates your culture. So, we could talk mission statement. I don't have that in here.
Cecil Bullard: We could talk about vision. We could talk about foundational principles. There are other classes that have all of those things in there. But you need to have a clear vision and a statement about that. What's your cathedral? What do you, why? And if it's only about so I can put more money in the bank, I don't think that's inspiring.
Cecil Bullard: Also guys, all of you that are online if you have questions, please feel free to ask 'em. I am not paying attention to the chat, but I know that Amber's gonna do that for me. So, am I through my mission statement, the Institutes is a better business, better life, better industry. We have a huge belief that if we can help our shop owners run better businesses, that they, the people that work for them, the families of the people that work for them will have better lives.
Cecil Bullard: I. They'll create a better product for their clients who will also have better lives, and that will raise our industry up. We have a vision of being the most effective coaching and training company in this space and having the most influence on positive influence on the industry and our clients.
Cecil Bullard: And then we have core values. I always have one that I'm, I miss. Core values are make a difference. Core values are always be learning. So, we're always looking for something else that we can learn. Core values on ev everyone has to win. The client, the company the employees, everyone and the customers.
Cecil Bullard: Everyone has to win. Core values are have fun. It should be fun. And then core values are do the right thing. And so when you have a good solid mission vision and core values now you have people and you have people that can get behind that. Now you have leadership and now you have a machine that can build a cathedral.
Cecil Bullard: You don't have a bunch of people laying bricks. I love that. I heard that yesterday. So I want to talk about the six stages of leadership. Number one, vision. Do you have a clear vision? Have you discussed that vision with your team players with your team, with the essential management people in your company?
Cecil Bullard: And is it easy to share that vision? How well can you paint the picture of. The cathedral for your for everybody. And in fact, I would tell you that we even use this vision in our advertising for potential team players, for potential teammates, for you know, potential employees.
Cecil Bullard: Because if you just want to lay bricks, we're not the place for you. We're building the cathedral. And oh, always popping the wrong button. I think passion matters a ton. Passion is that thing that when you talk and I don't know, you get a little excited people look at that and they go, wow.
Cecil Bullard: He really believes in what he's talking about. I really think as a presenter trying to get my ideas across online, in a webinar or in a class or talking to my staff here one-on-one. If I lack passion for the ideas, if I lack passion for the vision, then nobody's gonna follow me.
Cecil Bullard: They're not coming. So, do you have passion and do you show that passion? And I'll agree that we don't all show passion in the same way. Mine is I get excited. I start talking loud. I you know, I get a little more talking with my hands. I et cetera. And I speed up.
Cecil Bullard: Et cetera. But if I didn't have that passion would you listen, right? Would you say, wow that's a guy that, you know, he wants blah, blah, blah, but he's not really or because of that passion can you see that what I'm talking about is something that I truly believe in. And then I would tell you a passion that people aren't willing to settle.
Cecil Bullard: We don't settle for second best. We never settle, frankly, which is a little frustrating probably to the team and team members. It's a little frustrating to me, but every day we look for something that we could do better. And if we do something and reach our achievement though, whatever that is we take a moment to go, wow, that was fantastic.
Cecil Bullard: And then all of a sudden we're like, okay, what's next? What's the next thing? Can you connect? Are you connecting with people? Do you hold yourself in a place where you cannot connect because you can't influence people that you cannot connect to? I, maybe it's an art, maybe it's a developed skill.
Cecil Bullard: But I think that leadership means you have to kind of be above it a little bit, but you also want to be able to connect to your people. You can't be above it so much that they can't see a path to you. And I think, you know, you should spend time getting to know. The people that you have on your team, you know, what do you have in common with them?
Cecil Bullard: How do you make a difference for them? Are you showing them that working on your team, working towards the goals of the company? The vision of the company is gonna make a difference, or again, are you just are you just setting bricks in the ground? I don't think people will engage and fully engage unless they believe that you care, that it matters that they're here.
Cecil Bullard: And I think also you have to be kind of careful sometimes because you'll keep an employee that doesn't fit the team because that employee does something for you that's beneficial, but in so many other ways is damaging to the team. Yesterday I was reading through, I don't know what it was, YouTube, Facebook, whatever, one of the, channels. And the guy was saying, well, I've got this technician and he's been with me from the start and he does 65 hours, but man, he is caustic to everybody. And I know what you're all gonna tell me, but what should I do? And so please don't tell me just to get rid of him because I really need that 65 hours.
Cecil Bullard: Well, I got news for you. That's someone that you probably need to get rid of because the rest of the team, if you keep that person in the rest of the team, is not gonna think that you really care about them and they need to. Stage four we gotta have trust. There has to be trust. I'm teaching some new material at vision for sales.
Cecil Bullard: And I think you know, I'm going back through the commonalities of you know, what are the objections that people have? And I would tell you that I. Almost every objection, if not every objection, is probably a trust objection. When someone says I'm not willing to spend my money with you.
Cecil Bullard: My belief is that they probably don't trust that what you're telling them is the solution and that the price is the fair price. So it's a trust thing. And so you have to spend time building trust. And building trust goes back to, you know, the beginning. Have we done the foundational things? Do we have the mission, the vision and the you know, foundational principles, but also are we living, those are, am I in line with what we talk about myself as a leader?
Cecil Bullard: And I don't think that you can get trust. I wrote an article, I don't know, it's probably 15, 20 years ago now. I. Because someone said to me, Hey, Cecil what do you think the employees owe the company? And and I turned it around and I said, well, what does the company owe the employees? And then for part of the article, I said, I.
Cecil Bullard: Now if the company does what the company should do, then the employees should grant their trust to the company. And I think that they at least owe the owner some respect for the work and the effort and the energy that the owner has put in. You know, working hard to create a place where they can make a living, working hard to create a place that is safe and comfortable and where their opinion matters.
Cecil Bullard: Things like that. So, you know, we earn trust. It's not just granted because I'm the, you know, 'cause I have all the gray hair and I know everything and I'm the guy that's the meanest and the biggest and the baddest. That, that never gets you the trust that you need to really lead and guide people.
Cecil Bullard: And I'll go to the next point under this you gotta say what you do and do what you say, and you can't. Those two things cannot vary. And you can't keep saying the same thing over, but not making a change like, oh, it's my fault, it's my fault, it's my fault. Well, let's go back and do the same thing we did in the last three weeks because what you're telling me is, okay, you're taking all the blame, but you're also, we're doing the same things.
Cecil Bullard: It's incongruous. It doesn't come together. It creates it creates stress, it creates disbelief. It creates the opposite of trust. So you need to be you need to do what you do, what you say and say what you do. And you need to be consistent in your thoughts and actions. I'm gonna break in here.
Cecil Bullard: We're not done with the six stages of leadership, but I'm gonna talk about four stages of building trust. Consistency. We've already talked about that. You must become consistent in your behavior and your attitudes. And by the way, you know, you can you can go cry behind closed doors. You can have a confident in the company that you meet with and discuss all the doubts that you have and all of that stuff.
Cecil Bullard: You can hire a coach or a consultant to, to have those conversations with you probably should but you can't do this in front of the team, you know, any inconsistency in you, any inconsistency in your belief, any weakness there? I. Is going to deteriorate trust. It's gonna be difficult for you and not be a positive thing.
Cecil Bullard: So I need my messaging and my direction to be online with what, you know, again, I don't wanna say, Hey, we're building this beautiful cathedral, and then when it comes time to decide, you know, are we gonna use marble? We gonna use mud? I'm not gonna have a beautiful cathedral with mud. It's, it doesn't match what I'm trying to, to my people.
Cecil Bullard: We talked about confidence a little bit. You, that excitement that you have, that confidence that you have in your team. I got a guy that if I said his name, almost everybody here would probably know who that guy is and, it really upsets me how negative he can be because he can take something very positive and find the one negative thing, and that's what he talks about.
Cecil Bullard: And then he struggles with his team because he can't figure out why he can't lead them to the promised land. They won't go with him to the promised land. You can't be negative. You have to be confident. Maslow has this thing. If you study psychology Maslow, and basically people will act like you treat them well.
Cecil Bullard: If you don't believe in yourself, if you don't believe in your company, if you don't believe in what you're doing. If you have doubts and those doubts come out, then it's not gonna build trust with the people that want to follow you. So, as your confidence increases, as you look more on the positive side, yeah, we're gonna have I don't think anybody would say I'm Pollyanna.
Cecil Bullard: I know that we're gonna have problems. I know that we're gonna fight things. I know that we're gonna have difficult times in the company. I'm not saying that we're never gonna have difficult times, but I do also know that my team can work through all of that and we will survive this thing and we will come out the other side and we will have a beautiful cathedral.
Cecil Bullard: Right? Trust is sacred. You need to be very careful with the trust that they give you because one, one mistake can destroy it very quickly. How do I inspire? Because leaders need to have some, they need to be a little inspirational. I inspire through my confidence, I inspire through my belief that we're moving in the right direction.
Cecil Bullard: I think I even inspire sometimes when I go, oh, whoa, oh, whoa, boy, we really blew it there. Let's get let's get lined back up and you know, hey, did we forget this principle? We gotta have fun. Or did we forget this principle? We need to be doing the right thing, the legal, moral, ethical thing. Or did we forget this principle of we have to have relevance?
Cecil Bullard: You know, and I think even sometimes when I'm going uhoh, I forgot one of those principles that can be inspirational to my team. If it's not, oh my gosh we're done forward. Oh, it's just terrible. Everything's terrible. You know, I always have this this saying when I'm talking about leadership, if the IRS was gonna come and lock my doors when do I want my employees to know that?
Cecil Bullard: Well, probably after the IRS came and locked the doors not before. So even though you have these stresses and things, don't use those don't let those things come across. Because you have to inspire. You have to guide, you have to be the one that can see the cathedral and know that the cathedral's gonna be built.
Cecil Bullard: I I find it fascinating. You know, I was in lake Cuomo is in a cathedral there that was built in the, I think the 11 hundreds or something, and it took 157 years or something more than two or three lifetimes to build. And somebody had the vision of that, and they shared it with these craftsmen who gave their lives to this thing, but never actually saw.
Cecil Bullard: The cathedral done. Finished, and, I think that is inspiring. Like somebody was able to share that vision so well with these people that they were willing to and able to give their lives up to this and and really make a difference empowering others. I, it can't be. People have to make some decisions and have some power to do some things in your company, kind of on their own without your looking over their shoulder, without whatever.
Cecil Bullard: And they're gonna make a mistake occasionally, which is okay. You have to allow for some mistakes to be made. I think that how you get people on the team, you get people moving forward. You get them involved in the vision of the cathedral that you're gonna build. And you get their input and sometimes you make an adjustment.
Cecil Bullard: Having a conversation with Kent last night a little about this and, you know, only hold the line where the line really matters. So, you know, in our logo you know, I always talk about this. Our logo is not the logo I picked. It's a logo that the team picked. And you know what? It doesn't really matter.
Cecil Bullard: We've got a great logo. It's come to be known very well known in our industry. And and other people on my team said, this is the one we want. This is the one we think will you know, get us where we want to be and represent our company better. And I was like, ah, it's not the one I want.
Cecil Bullard: And I think I really struggled over that for the few minutes that I struggled over it, and then I let it go. Don't fight. The simple stuff, the dumb stuff, the stupid stuff empower your people. And but you cannot just give them free reign. But remember, if you do have a mission and a vision and et cetera.
Cecil Bullard: And they understand that, and they also have a vision of what you're doing now. You can empower people and you'll most likely have success in them moving in the right direction. I see. Amber, is there a question here?
Amber Wright: There is, yeah. There's a lot of good conversations going on. I have two questions, Cecil, if this is now a good time, but how do you work through a position where you are the leader but not the owner, but when the owner is in the building?
Amber Wright: There's a difference in energy paced and respect as where I don't get the same results from the team when the owner is gone. Jeff, I would love to know what your position is currently. I don't know if that makes a difference, but Cecil, that's where the question is.
Cecil Bullard: So, so the answer is yes. More than once.
Cecil Bullard: I work for a couple of very strong-willed people as a manager in a company, and I think it's very important that you, you set the terms of what you're willing to do and you're not willing to do. And so in the very beginning I made it very clear and in my contract for working there that that from this point forward, me coming in as a manager meant that, you know, you look at the chain of command and I'm in the chain of command in the middle between the owner and the employees, and therefore now I manage the employees and the owner doesn't.
Cecil Bullard: There were a few times that the owner and his wife kind of came in the middle there, and I had to pull them aside with all due respect and say, here's what's going on. It is not healthy for the business, and I had to make my case there. And by the way, if they wouldn't have seen it, if they wouldn't have.
Cecil Bullard: Come along. I would've left and been, went somewhere where I could be more successful. Now Jeff May be talking about something that's very caustic. He could be talking about something that's not as caustic and not as important, but for me I told the owner, I said you manage me. So if something's happening in your company, you don't like it, come to me.
Cecil Bullard: Right? And then I will deal with it with the employees. And I have another company, believe it or not. I just met with him yesterday, a couple of managers. The owner's a great guy. I love him to pieces, inspirational guy, et cetera. But he's so overpowering in his company that the managers are having a very difficult time managing.
Cecil Bullard: And you know, I think that's the point where they all three need to sit down and go. This isn't working the way that it, it is, what are the terms you need to create the terms? And I used to sit down with the owner and his wife once a week. And to tell you the truth, I prepared for those meetings. Wrote three page, five page things that said, here's where the company is, here's the issues that I believe we're dealing with.
Cecil Bullard: Here's the solutions that I have and this is how I'm moving forward. Not because I was asking permission necessarily, but because I wanted that owner to have as much information as possible, be very comfortable, because that meant that I had more freedom and more availability to do what I needed. Yeah.
Cecil Bullard: So, and I think anytime somebody's coming in and if it's, if there's a, they're getting in the middle and it becomes like I'm getting my knees cut out from under me. Because now you've made it impossible for me to be successful in my job. You and I are gonna be having a conversation in my office with the door shut, and it'll be a peaceful conversation.
Cecil Bullard: 'cause I know what I'm willing to do. I know what the goal is, et cetera. And so I know how tough that is 'cause I've been through it. But man if it continues to go on, you're not gonna get where you need to be. You're not gonna be as successful as you need to be unless the two of you can get in line.
Cecil Bullard: That's the first place we need to be in line. And so, I would work with the owner to get the owner in line with the vision. What kind of cathedral are we building? You know, how high is it gonna be? What's it gonna look like? You know, et cetera, et cetera. And if I can get that person, there's a whole nother thing about managing people and sales.
Cecil Bullard: If you can get that person, if you can change the conversation from, well, you're bad because you're not doing what I want to. Does this fit the. Company that we want to be, right? Oh no, that action doesn't fit the company. Okay, great. Then how do we change the action? Right? Because it doesn't fit the mission, the vision the core values.
Cecil Bullard: And it's not about, well, you're a bad person 'cause you're doing bad things. It changes the way you have that conversation. Okay, so hopefully I answered that one.
Amber Wright: Yeah, no, that was fantastic. One more and then we can get back to the regular program. What is the best way to get respect out of a tech that is about 12 years older than me?
Amber Wright: I am not sure if it's an age thing that he knows more technical stuff than I do or if it's something else. That's a good question, cliff.
Cecil Bullard: Well, I think, huh I started, when I started writing service, I was 23, 24 and I was working with Tex were in their forties and it was very hard to earn their respect.
Cecil Bullard: I. I think that I'm on your side is one of those things. How can I help you? What can I do for you? That, that makes your job easier? So when I'm writing service and I have older text, not anymore 'cause I'm the old guy in the room now but when that was happening in my life I need the if you remember in the beginning I kind of said you, you kind of need them to like you, right?
Cecil Bullard: I need to be likable. And so I need to be looking for opportunities to assist that person, help that person to achieve their goals. Because if I'm someone that is, is helpful to them and not an irritant to them, then I'm much more likely to gain their trust and their respect. So I'm on your side. I would I would make as a service advisor, I would, you know, I'd get an extra two tenths on a job and I'd go out and go, Hey, I got you a little extra time on that job.
Cecil Bullard: You know, I just let 'em know when I was able to do small things for them. Right. And I tried to do small things to get 'em on my side. And, you know, I've also had the place where I had to go sit somebody down and kind of say, here's the chain of command and here's where you are and here's where I am.
Cecil Bullard: And so this kind of behavior is not gonna be deemed positive. And we're not gonna move forward with this. And I want you on the team. I love what you do. I think you're a great person, but it has to be under these circumstances. Right. I think the more you clarify the circumstances without, I don't have to be a prick to do that necessarily, but I wanna make sure that we both understand, you know, that if we work together, then we can do some amazing things.
Cecil Bullard: If we don't work together, it's gonna be hard on both of us. Right. So that's what I would work on and try. Now back to your reg, regularly scheduled content. How do I create value for people? And I think this also probably may answer that question some amber and, you know, I understand what's important to them and and I'm trying to help them to achieve their targets and make their job as, as easy or as simple as it could be.
Cecil Bullard: So, and then also I believe being committed is thank you is fantastic. That when you have a vision and you have a mission and everyone knows what it is and you're not willing to let other things sideline that my commitment creates value for the people that are on the team.
Cecil Bullard: And what I'm willing to do for the team creates value for the people that are on the team. And I also go back to that consistency of thought and action. You have to continue to be consistent in thought and action. If I wanna be a good leader, I have to have influence. Influence is more about the fact that I know where we're going.
Cecil Bullard: I've shared that with you. You're on, you see it and you know that I care about it. And it's not me lording over the fact that I can fire you any minute. Because everybody knows I, you know, everybody knows I'm the guy that signs the check or, you know, everybody knows I'm the guy that can fire you.
Cecil Bullard: If you're going there, then you're not influencing. That's that's a different kind of pressure. And it's not a long-term solution or it's not long term. Whatever you get there that it, it won't be long term. So influence is kind of san's authority. It's without it I need to be able to influence because of my commitment, because of my personality, because of my unwavering.
Cecil Bullard: A belief in the fact that we're gonna win the game and that I'm gonna help you win that game and be by your side and make sure, and then also I think, don't misinterpret that I, I have a saying I will do anything for my people except. Their job. So it's up to me to help them understand what their job is.
Cecil Bullard: It's up to me to help them understand what the goals and the vision are and to help them buy into that. It's up to me to help them determine a plan or you know, are their actions actually achieving the goal or not. And then it's up to me in a way to help them determine if they cha what actions they might have to change to be able to hit the targets or the goals that they want.
Cecil Bullard: And if I can do those things with people, then I have influence, I think, in the industry. I've worked very hard for a very long time. You know, we just lost one of the greatest coaches and consultants, a guy that I started with, you know, 40 some years ago. And I think that I may have some influence in the industry because people that know me know that I really care about the industry and I care about, you know, almost everybody in the industry.
Cecil Bullard: I, I care that the owners are profitable and I care that the managers can manage. And I care that the customers get a great job. And I care that the employees get what they need. And I work very hard every day to try to create that vision, build that particular cathedral. And if you can do that and people believe it, not everybody believes it.
Cecil Bullard: I know there's three or four people that don't like me. I think you have to disregard that. Obviously you can't have those people on your team, but, not everybody's gonna love you. Not everybody's gonna allow you to influence them. And by the way, those are people who I probably wouldn't long term have on my team.
Cecil Bullard: How do I show people? I care. I'm gonna try to go fast. We started about seven minutes late. I'm gonna try not to go more than 10 minutes over. I love this thing with shy LaBuff. Don't say it, do it. Stop talking about it. Get it done, whatever it is. Don't say, oh my gosh, I know I'm a poor leader and it's my fault.
Cecil Bullard: You might say that once to let people know that you understand. But now what are you gonna do? Go do something that makes a difference. Stop talking about it and go do something. Quit doing the same things if they're not getting you what you want and do something different. Only fight for what's important.
Cecil Bullard: Stop fighting on everything. I'm not saying you give up the clean shop or you give up the well lit shot, or you give up the, you know, I was in the bathroom the other day and there was no toilet paper and usually there's like 23 rolls and I'm like, oh my God, how can that even happen? And now I'm ready to come out and yell at everybody because somebody left the bathroom without toilet paper.
Cecil Bullard: Well, slow down, Cecil. Take a deep breath. Go get some toilet paper, you know? And maybe in a company, our next company meeting have a discussion about how we take care of the facility instead of who the heck left the toilet paper. Fight for what's important. Fight in smart ways. Don't fight for the sake of fighting.
Cecil Bullard: And I think some of us have gotten in the habit of fighting just to fight, learn to apologize. My, my father was great at that when he did something wrong, when he made a bad choice, when he made a bad decision, he was the first guy to say. I'm sorry, I shouldn't have done that. My mother never did that.
Cecil Bullard: When you're wrong, apologize. It doesn't have to be you know, you don't have to beat yourself to death. You don't have to flagellate yourself. You don't have to tie yourself up in the village square and get whipped. Just say, I'm sorry. We're going to do some things occasionally lose our temper.
Cecil Bullard: I've done it with my son a couple times. I had to go in and say, I'm sorry, I'll, I will not do that again. And then when I did it again, I had to say, I'm sorry again, and I won't do it again. And you know what? I only did it like three times before I figured out that's not gonna get me where I need to go.
Cecil Bullard: And then I stopped and I don't know, for the last three years, we haven't had one of those. Because I changed my behavior. Do something uninspected for your people. Not because they hit the great target, not because, not because it's Valentine's Day or it's their birthday or something.
Cecil Bullard: Just figure out what they like and do something for them. Based on that. I, you know, don't just buy sandwiches for the team, buy the sandwiches that they would choose because you paid attention to what they like and what they don't like. You know, I, I always say this my wife you know, occasionally I just get flowers.
Cecil Bullard: I, I send 'em to her. She's like, what are they for? Because it's not our anniversary. It's not her birthday. It's not any special. It's not Mother's Day. It's because I care about you because I knew that these would brighten your day. So do something unexpected for your people. Share your thoughts and ideas.
Cecil Bullard: Not all the time, you can't always be talking about this idea or this thought that you never move towards, but if you're moving towards these ideas and thoughts share them with your staff and let them be a part of it. Let them be involved in, you know, creating the cathedral that you're gonna build because they're gonna, that's gonna mean you care.
Cecil Bullard: And then learn how to show genuine appreciation. I don't know that I've even completely learned this one sometimes I'm like ah but what's genuine? I really do care about my staff. When they have struggles, I. It bothers me, not just company struggles, even personal struggles. And I take some time routinely to go talk to them in their office.
Cecil Bullard: Not about something they did or didn't do right. But just how's it going and what's up and what's going on in your life and, you know, how can we help you? That's genuine appreciation. I'm gonna just skip through this one very quickly. I think we should always have our staff if we're leaders in our company.
Cecil Bullard: In front of us. And if I'm in the chain of command, I have people that are below me in that chain of command. There, there are people that I serve. I should always know what's going on with them. And I should always be saying to myself, how can I help them? What can I do to help them have a better time here to help their job be easier?
Cecil Bullard: What education, what training what what support can I give them that would help them be more successful? I would also tell you have a clear idea of when and why you might terminate somebody. And if you do that before you get to know people, then that helps not blur the line where people keep stepping over the line.
Cecil Bullard: I would tell you to do that in the beginning. I'm gonna go through this really quickly. I, all I want you to understand is that communication is gonna be your biggest issue, and clear communication is gonna be your biggest issue. And the clear your communication, the more you're gonna get done, the more people are gonna understand the easier it is for you to lead.
Cecil Bullard: So, we should always be working on communication because everybody wants to be heard, hear people. Biggest mistake service advisors make salespeople is not listening to the client or potential client. The biggest mistake owners and managers is not listening to their team. You know, we need to hear people and really listen.
Cecil Bullard: So you have to take time. To spend with them. You can't listen to them if you're rushed or if you're thinking about something else, or if you're talking. So, I'm a talker. Everyone knows me, knows I'm a talker. You gotta be quiet sometimes. You gotta remove all the distractions. No, no cell phones, no email, no newspapers, no other thoughts in your head.
Cecil Bullard: For those of you that are a DHD like me, a little difficult. But you gotta do it. You gotta give people your undivided attention. You gotta look at their body language. You gotta maintain eye contact. What's going on with these people? What's happening? You gotta put yourself in their shoes wherever possible.
Cecil Bullard: If you can't do that, do it anyway. You can't know me unless you've been in my shoes. And if you know me and I respect you for that, then I'm much more likely to follow where you lead. For those of you that are like me, that are 12 thoughts in your head at a time and you're rush, and I got too many things to do, slow down.
Cecil Bullard: Take a deep breath. Do not hurry them. Don't answer their, don't finish their answers. Don't let their habits or mannerisms annoy you. Really listen to their tone, their volume. I think we get good sometimes with people that have been in our lives a long time, and we need to take those skills and move them out.
Cecil Bullard: It's one of my favorite slides. Look for nonverbal communication, little happy stewy a little stewie that's disappointed with me. And then my favorite little stewie. What do they, what's their body language telling me? Their nonverbal communication. Learn to repeat their words back to them. What I seem to hear is this what you told me?
Cecil Bullard: From what you've told me, it seems like this is the issue. This is the way I understand it. Did I get it correctly? Create these phrases, these arrows, these things that you put in your vocabulary that you use routinely to make sure that you haven't jumped the gun and that you're really hearing what they're telling you.
Cecil Bullard: Listening is an art. It takes effort. Make the effort. Stephen Covey says, seek first to understand, then to be understood. That's that's what I, that's what I want to be, right? If I can create the vision, if I can create the mission, if I have people that understand the values that we want to live by here and what we want to accomplish, if I can paint the cathedral for them in their mind and get them involved in that.
Cecil Bullard: Then I can have people that are inspired that, and I can inspire people. If I can stay driven. If I can stay focused, if I can stay up and not be negative then I'm gonna have people that can be inspired. Improve your communication. Ask people, did I understand you right? Did I get it? Or not?
Cecil Bullard: And if you didn't, go back to the drawing board. Use gestures yourself. Ask key questions. Here's some of them, they're in your workbook. Here's why. Improving communication better communication will improve. Morale and self-esteem means that you'll have happier people, more sure of themselves.
Cecil Bullard: Better morale in your company are gonna keep people longer. People who feel heard are happier. They feel appreciated. They'll work harder and they'll buy more from you. It's a long-term solution. Stay away from victim behaviors. We're at the point. We got a couple of minutes. You're okay.
Cecil Bullard: You're good. I don't wanna rush through. Stay away from victim behaviors. Here's victim behaviors. Blame, get rid of blame in your company. One of the things, one of the many things that camp my son has taught me is this right here stop focusing on what's not right, and then how do we solve the problem moving forward?
Cecil Bullard: What will we do? That's the saying that I want to have as a company moving forward from here on out, what are we gonna do differently? We will get rid of blame as much as possible. And if you have to place blame occasionally, you might do it very carefully and do it very privately.
Cecil Bullard: All right I'm gonna open it up for a few more questions and all of this other material is in your thing and we can do another webinar and get into it deeper and answer a lot of other questions down the road. What questions do we have in the next two minutes?
Amber Wright: No questions right now that we haven't answered.
Amber Wright: Let me, okay, here we go. What do you do when you have a negative partner? They have 40% share, but he is the one with the experience in the industry.
Cecil Bullard: I think that people believe that I need to understand how to fix a car to have cars fixed in my business I don't need that. I think people believe that they need to know everything about the business or about the industry.
Cecil Bullard: I'm not sure that's true. Don't get me wrong. You know, I was a technician who became a service advisor who became an owner. Having all that experience was, I believe, a plus, but it's also a negative in some ways. I will go back to what do you do when you have an owner that you're the manager and they come in and all of a sudden the whole tenor of the shop is different?
Cecil Bullard: You need to sit 'em down and have a, an honest conversation about do they want to be successful or not, and if they want to be successful, then here's the support that I need. Here's what I believe we need to do, and get agreements from them. Because once you have agreements with people, now you can manage that.
Cecil Bullard: You have no agree. You let them keep doing the same behavior. It's gonna keep doing what it's gonna do. And if it's not getting what you want it doesn't matter. There are lots of coaches and consultants not necessarily me or my company, that can help you understand what you need as far as the company.
Cecil Bullard: I don't know that I need to have anyone who's gonna be negative or take us off track. I wouldn't be building a cathedral, have somebody come in and tear things down and then not say anything, not go, Hey, wait a minute, you can't do that. Because it's not just demotivating for me, but it's also demotivating for everyone else that's building the cathedral.
Amber Wright: Yeah. Yeah. Your employees definitely pick up on that. It goes back to the body language and the cues. All of that, which is a fantastic book on reading body language and knowing. Yeah. I don't, it's up there. An orange book. I think it's a fantastic book, but it's super important. I wanna go back just making sure we don't have any questions, but you made a point about know what to fight for.
Amber Wright: Yeah. And I think it's so important to know when to give your energy and allow situations to have power over you or your vision, right? Yeah. And it's really important to know and lead as a leader in that way. Because again, your employees do pick up on those things that you're giving energy to in your business that may not need it.
Amber Wright: Right. You create these small fires.
Cecil Bullard: Right. And if you if you don't do that, then it will suck the life out of you in other places where you really need that life to, you know, hold the line and to be excited about. You gotta be careful where you put your energy. Kind of goes back to that very first graphic where it's like, where do I spend my time?
Cecil Bullard: If I'm spending my time in areas that aren't getting me what I want and you know, that's might be putting out fires or arguing about stuff that's really not important then I can't spend that time somewhere that's gonna, you know, really take us forward.
Amber Wright: Yeah. Yeah. I love that. And it sounds like even going back to Jeff's comment about the owner coming in, right?
Amber Wright: It sounds like that's where the energy needs to be spent for you. But overall, just a lot of Thank you, Cecil. Appreciate it. There was a question about getting access to the workbook, if it'll be emailed to us. It is right here if you scan the QR code.
Cecil Bullard: You can go in there. We get your name and your phone number and your email, and then we send you in the email and you'll have the whole workbook.
Amber Wright: Yeah.
Cecil Bullard: Yeah.
Amber Wright: Well, I just wanna, again, thank everybody. I know we're a few minutes over and that is completely on, on me, not Cecil. And the institute being timely is very important. So really appreciate everybody's time here. And Cecil, as always, we really appreciate your expertise and everything that you and the entire institute coaches are doing for the industry.
Amber Wright: You really do what you say you're going to do, and it is something that is continuously wonderful to watch and be a partner of you guys. Knowing you over the last few years has been nothing short of a blessing. And again, Jimmy Lea, if you're on here, happy birthday. Have a wonderful afternoon.
Cecil Bullard: Thank you everyone. Thanks for the opportunity, Amber.
Amber Wright: Awesome. All right, bye.
Cecil Bullard: Bye. Bye.