https://www.autoshopowner.com/rss/1-forum.xml/Latest Forum TopicsenWed, 08 May 2024 13:06:08 +0000Hi! I got a bunch of engine and cabin filters - leftovers from my store. What's the best way to get rid off the inventory? eBay sales are slow and not an option due to the time it takes to list a filter and due to expensive cost of shipping. Many thanks in advance, MikeMon, 06 May 2024 19:46:44 +0000The cost of tools, the toolbox and all the specialty tools needed these days is overwhelming. It's also hard to determine at times, what is a shop tool and what belongs in the tech's toolbox. Some tool boxes cost in the 10s of thousands of dollars. Should the company either supply the tools, pay for the tools or in some way subsidize the expense of a technician's tools? Or is it up to the tech to continue to invest in his or her future?Sun, 05 May 2024 20:39:06 +0000I have a good friend of mine who is starting a repair shop, but his location is not good. In fact, he gets virtually no traffic. Now, I am not the biggest fan of Repair Pal, Open Bay and similar companies, But could these type companies help a start up, just to get cars coming to his shop?Fri, 03 May 2024 22:02:46 +0000I cannot speak for all shops and all insurance policies, but many garage keeper's policies do not cover technician's tools. It might worth a call or meet with your insurance rep to discuss this. I am not an insurance agent, but I was shocked a few years back when I found this out, and had to modify my insurance coverage.Thu, 02 May 2024 11:15:42 +0000When speaking to shop owners, it still appears that many are still looking to hire a qualified tech. It has gotten better, and I believe it's because most shop owners are more willing to create a better workplace and pay package. What are your top ways or thoughts on attracting and keeping auto techs?Thu, 25 Apr 2024 11:06:17 +0000With labor rates going up, one concept me also need to consider is multi tier labor rates. For example, performing jobs on heavy trucks is different than work on a Honda Civic, or Toyota Corolla. Also, if you do complicated computer work, electrical and driveability, that requires your top tech with the most expensive tools and training. And those jobs have no part profit. Shouldn't this be billed at a higher labor rate? Do you have a tier labor rate strategy? I would like to hear from other shops.Fri, 19 Apr 2024 10:45:36 +0000Automotive businesses and drivers in the greater Raleigh, North Carolina area can now quickly purchase premium used tires in-person from the country’s most trusted source, Champtires. Champtires was founded in 2009 to provide an option to expensive new tires. With prices up on almost all consumer goods, including tires and gas, anyone who drives, sells or repairs cars can benefit from lower priced high-quality used tires. Headquartered in West Mifflin, Pennsylvania, Champtires sells tires across the continental United States and at two retail locations in the Pittsburgh, PA region. Now, Champtires is offering pickup sales at its Sanford, NC warehouse. “While we offer free and fast shipping for website orders, there are situations when waiting for a tire to be delivered is inconvenient. This gives people in and around Sanford the ability to quickly get tires when they need them,” said Brad Rea, president and CEO of Champtires. The cost difference between new and slightly used tires can be substantial. For example, BRIDGESTONE ALENZA SPORT A/S RFT 275/45-20 110 H tires are $408.03 per tire, or $1,632.12 for a set. At Champtires, like-new Bridgestone tires in the same exact size, brand and model are priced at $81.17 per tire, saving $1,307.44 for four tires. Goodyear Eagle RS-A 245/55-18 103 V tires sell for about $233 per tire. Buying a 9/32 replacement from Champtires costs $58.35, a difference of $174.65 for one tire. Saving money isn’t the only benefit of used tires – it is also the sustainable option because a perfectly good product is being reused instead of ending up in a landfill. To purchase and pickup tires in Sanford, simply call 412-462-3000 to place the order. Champtires’ warehouse is located at 1501 Douglas Drive, Sanford, NC 27330. Learn More. Related Information: How Jen Saved $1,307.44 on Four Bridgestone Tires Real Examples of Saving Money on Used Tires Why Buy Used Tires?Wed, 17 Apr 2024 13:35:12 +0000Every entrepreneur’s primary goal is to make a healthy business profit. But as most entrepreneurs know, there are a plethora of roadblocks that can keep them from financial success. From money management to high-interest loans, it’s quite easy to stray from the path of profitability if you’re not on high alert. In this blog post, we’re sharing six common financial pitfalls so you can avoid them to increase your income repeatedly. Inadequate cash flow management (H2) One of the most common financial pitfalls we see is inadequate cash flow management. This happens when revenue is coming in steadily but is not being distributed efficiently. This may happen due to irresponsible spending or financial unawareness. When this happens, businesses may find themselves struggling to cover their operational costs, even though their profit looks good on paper, because money has been spent elsewhere. Accounting software programs like Quickbooks keep you informed of your monthly cash flow so you can manage it efficiently. Excessive Debt (H2) While leveraging debt can be a powerful tool for business growth, it can be risky if it’s not managed properly. High levels of debt often increase the financial burden on a business through interest and repayment obligations. This can exacerbate cash flow problems, so carefully weigh the benefits before taking out a loan or swiping your company credit card. Poor Inventory Management (H2) It can be difficult to find a healthy balance for inventory management. Holding too much inventory ties up capital that could be used elsewhere, while too little inventory can lead to lost sales. For more profitable inventory management, try: Implementing streamlined inventory tracking systems Conducting regular audits to identify stock levels Build relationships with suppliers who can deliver inventory in a timely manner Inventory management software such as Tekmetric provides you with a healthy inventory flow to free up capital, drive more sales, and boost profit. Ignoring Technological Advances (H2) We live in a digital age that relies on technology. While it may be your first instinct to run your business like you always have, it’s critical to follow technological advances in the industry. Updating your software, tools, and systems to meet new industry standards gives your business the competitive edge to welcome new customers through the door. Failure to Adapt to Market Changes (H2) The market is ever-evolving, and as a savvy entrepreneur it’s important to meld with the ebbs and flows. Staying up-to-date with consumer demands and leaning into industry trends will lead you to experience steady and increased revenue. Lack of Emergency Fund (H2) Adversity is unavoidable as a business owner, and having an emergency fund for those just-in-case situations is critical if you want to avoid accruing debt. If you don’t currently have an emergency fund and are unsure of where to start, we can help you accelerate the process with a financial roadmap. When you have a healthy emergency fund to cover unexpected expenses, you have the peace of mind that your business will persevere through hardships.Tue, 16 Apr 2024 13:30:50 +0000I had a recent discussion with a coaching client, who was complaining that sales are off. But, when we looked at his car counts, it was steady with no decrease. In fact, car counts were slightly higher than normal for last month. Another thing we noticed was that his calendar was booked out about a week and a half out. Reviewing the calendar revealed that many of the customers had previous recommendations and deferred work that was not addressed at the time of the current appointment. After a proactive approach of reviewing the appointment and vehicle history, the service advisors were able to discuss with their customers past recommendations and increase sales. Do you use your calendar as a way to prepare for your customers and increase sales opportunities? What strategies can you share that helps you to increase sales by using your calendar or other technologies?Thu, 04 Apr 2024 12:07:16 +0000When I look back at my 41 years as an auto shop owner, there is a direct link between my best and most profitable years to the quality of my employees. Contrary to that, the years I struggled in business was directly related to having the wrong team, more specifically, a bad apple or a few bad apples. If you want to truly achieve great things in business, you need to have great people around you. Take a hard look at the people you employ now. Would you hire them again? Think about this: If your auto repair shop is reliant on your skills, your intellect and solely on you, your business will eventually plateau and stall. You need great people around you to build your empire. The strategy of finding the right people for your company is ongoing. Lastly, once you have assembled the right people, then you need to do all you can to give them the training, the coaching, the support, the praise and recognition to bring out the best in them.Thu, 04 Apr 2024 11:56:05 +0000Hello guys I’m Jade Trost 56 years. New on this forumMon, 25 Mar 2024 20:42:58 +0000The fact that inflation is under control is a good thing But that does not mean that the normal operating expenses have gone down. In fact, rising rents, utilities costs, insurance costs, etc. are much higher today than just a few years ago, How will you as a shop owner respond to this economic situation? And what about your employees? They are feeling the pain of increased prices too.Thu, 21 Mar 2024 11:47:36 +0000When it comes to financial regulations, understanding and complying with Beneficial Ownership Information (BOI) is key for businesses. Beneficial Ownership Information refers to the details of individuals who ultimately own or control a legal entity. These regulations were established in 2021 by the Corporate Transparency Act to combat money laundering, terrorism financing, and other illicit finance activities. In this post, we’ll break down what BOI is, who it’s for, how to fill it out, and its significance for businesses. What is a Beneficial Ownership Form? A Beneficial Ownership form is a regulatory requirement enforced by agencies like the Financial Crimes Enforcement Network (FinCEN) in the United States. It requires that certain businesses collect and report information about their beneficial owners (AKA, the individuals who ultimately own or control the company). This information allows law enforcement agencies and financial institutions to identify and prevent illicit financial activities. Who Needs to Provide Beneficial Ownership Information? BOI requirements typically apply to legal entities such as corporations and LLCs. If your business was created in the United States by filing a document with the Secretary of State or a similar office, you’ll be required to report about your beneficial owners. BOI requirements also apply to foreign companies that were registered to do business in any U.S. state or Indian tribe by the necessary filing. Companies required to report are called “reporting companies,” and therefore, may have to obtain information from their beneficial owners and report on that information to FinCEN. There are 23 types of business entities that are exempt from BOI reporting, including publicly traded companies, nonprofit organizations, and certain large operating companies. How to File a Beneficial Ownership Report To fill out a BOI form, it involves providing detailed information about the beneficial owners of the company. Follow this step-by-step guide to file a beneficial ownership report if your company is required by law. STEP #1: IDENTIFY BENEFICIAL OWNERS First, determine who qualifies as a beneficial owner of your company according to regulatory guidelines. This typically includes individuals who own or control at least 25% of the entity’s ownership interests or have significant control over its operations. You can find this information and more in the BOI Small Entity Compliance Guide. STEP #2: GATHER REQUIRED INFORMATION Next, collect the information required for each beneficial owner of the company. This includes their full legal name, date of birth, residential address, Social Security number (or other government-issued identification number), and the percentage of ownership or control of the company. STEP #3: COMPLETE BOI FORMS To complete the necessary BOI forms, go to https://boiefiling.fincen.gov/ and use either the BOI E-Filing System or the PDF BOI report. There is also a system-to-system API option. Fill out the forms accurately and completely, ensuring that all required fields are filled out with the correct information. STEP #4: VERIFY INFORMATION After filling out the necessary BOI forms, review them for accuracy and completeness. Double-check and verify that all of the information provided for each beneficial owner is up-to-date and accurate. STEP #5: SUBMIT BOI FORMS Once finished and verified, submit the completed BOI forms to the appropriate entities or institutions as required by law, such as financial institutions, government agencies, or regulatory authorities. Why Is Beneficial Ownership Information Important for Businesses? It’s key for businesses to comply with BOI requirements in order to avoid penalties, fines, and legal consequences. By providing accurate and transparent information about their beneficial owners, businesses showcase their commitment to running businesses based on integrity, transparency, fairness, and regulatory and legal compliance. Plus, BOI helps enhance the effectiveness of anti-money laundering and counter-terrorism financing efforts, which provides added protection to the overall financial system. While Beneficial Ownership Information may sound a bit overwhelming and confusing at first, by taking the necessary steps to understand what it is, its purpose, who qualifies, and how to fill out a BOI form, you can rest easy knowing you are meeting the necessary requirements to contribute to a safer, more secure financial environment.Tue, 19 Mar 2024 18:01:31 +0000This may be a sensitive discussion, but many companies, especially restaurant chains, are considering Dynamic Pricing - Charging hire prices for meals during busy times. Hotels and airlines have been doing this for years. I am not a fan of this, but I am being naive? With rising costs, and rising cost of payroll, is this something the auto repair shops should consider?Sat, 16 Mar 2024 11:16:34 +0000Speaking to many shop owners, I get the sense that sales are slowing lately. Is this so, or has the ramp up in sales the few years made many shops complacent? Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience?Sat, 16 Mar 2024 11:04:28 +0000hi , I have 5 parking lifts that need to be moved 7 miles. They can be moved without disassembly on a trailer , or disassembled and moved and reassembled at the location that is 7 miles, 12 minutes away. If anyone knows qualified, reasonable vendors, I would appreciate that. there is NO rush. Thank youWed, 13 Mar 2024 04:17:55 +0000I've decided I need a smallish sandblaster cabinet for cleaning brake caliper brackets. I just sold my brake lathe that never got used to make room for it. If any of you have any advice before I make a purchase, I would love to hear it as I've never even used one. I'm not looking to go too cheap, I want it to work well and not be messy.Tue, 12 Mar 2024 20:44:30 +0000This video gives great ideas for how a shop can protect themselves. It's solid advice that should be performed before any vehicle gets pulled inside the shop. 12:01Sat, 09 Mar 2024 13:19:23 +0000With spring upon us and the weather warming, it’s the perfect time of year to do some good spring cleaning. However, it’s not just our homes that can benefit – our finances can benefit from intentional tidying up and decluttering as well. This can lead to increased efficiency, better cash flow, and improved overall financial health for our businesses if done right and done consistently. In this blog post, we’re sharing 5 essential steps to spring clean your finances each and every year. 5 Steps to Spring Clean Your Finances When spring cleaning your business finances, it’s important to do this in a step-by-step approach so you know exactly where you’re at, what you can improve on, and what action steps you need to take. Follow these 5 steps to declutter and improve your business finances this spring. STEP #1: ANALYZE EXPENSES Start by going through your expenses with a fine-tooth comb to identify any unnecessary or redundant costs that could be cut down. This could be subscriptions to services, softwares, or programs you no longer use, excessive spending on office supplies, or high fees from vendors or suppliers. By identifying areas where you can reduce expenses, you can free up more funds to invest in more profitable areas of your business. STEP #2: NEGOTIATE BETTER TERMS After identifying areas for potential cost savings, don’t be afraid to reach out to vendors or suppliers for better terms. Negotiating lower prices, longer payment terms, or bulk discounts is a great way to cut back on expenses and ensure you’re getting the best possible deal. Building strong relationships with your vendors and suppliers can also lead to perks such as exclusive deals or priority service, so be sure to keep those relationships and communication strong. STEP #3: UPDATE BUDGETS AND FORECASTS After analyzing your expenses, you’ll have a clearer picture of your current financial status and areas in which you can cut back and improve. Now, it’s time to update your budgets and forecasts for the rest of the year. Review your revenue projections and compare them to your expenses to ensure they’re in alignment for a profitable year. Adjust your budget as needed to account for any changes in your business, the market, etc. It’s a good idea to revisit your budget and forecast regularly to stay on track and make informed decisions throughout the year. This can help prevent you from reaching the end of the year and falling short of your goals. STEP #4: PREPARE FOR EMERGENCIES No one likes to think about worst-case scenarios, but it’s so important to be prepared for emergencies as a business owner. Review your insurance coverage to ensure it covers your needs. Consider adding or updating policies as you see fit. Establish an emergency fund for your business to cover unexpected expenses or disruptions to your business operations. The last thing you want is to be unable to pay your bills or your employees should something go awry. Having a financial safety net in place gives you peace of mind knowing that you can weather any financial storms that come your way. STEP #5: IMPROVE INVOICING AND COLLECTIONS PROCESSES Lastly, having efficient invoicing and collections processes is essential for maintaining a healthy cash flow and keeping things running smoothly. Review your current invoicing and collections processes to identify any inefficiencies or areas holding you back. Consider implementing software solutions like Wave that streamline invoicing, automate reminders for overdue payments, and provide insights into customer payment behavior. Improving your invoicing and collections processes can reduce the time it takes to get paid and minimize the risk of late or unpaid invoices. This is the perfect time of year to spring clean your finances and ensure your business is set up for success and efficiency in the months ahead. Take a good look at where you’re at income and expense-wise, update your budgets and forecasts accordingly, prioritize planning for emergencies, and look for ways to make invoicing and collections more streamlined. By following these steps, you’ll be in good financial health and ready to grow for the rest of the year. View full articleWed, 06 Mar 2024 14:06:00 +0000Hey all, Retired 5+ years ago and spend half my time down here in Florida. Haven't been on the forum in a few years. When I am up home in Ohio the tire dealer that bought my business and rents my building from me takes good care of all my vehicle service needs. My Mini needs a few things and I'd like to hook up with someone from this forum close to me down here. Belt is squealing so probably needs a new belt, tensioner and idler pulley. Also need a new right side window motor. Anybody close to Fort Myers Beach? Mark Defer 330-603-5127Fri, 01 Mar 2024 22:06:44 +0000With many smaller shops, the first customer contact is usually with the shop manager. With larger shops, it's usually the service writer. No matter your shop size, I ran across a great article from Gallup.com about the behaviors a great shop manager should have. In our shop, I've had the best luck hiring managers from OUTSIDE the automotive industry. They are usually from a 1-on-1 personal interaction position. Here's the Gallup article that you may find useful in your business... https://www.gallup.com/workplace/272681/habits-world-best-managers.aspxWed, 28 Feb 2024 15:40:45 +0000Trying to oversell your customers almost always generates uncomfortable feelings in your customers and possibly bad reviews. Here's a good example. Listen to the first 30 seconds of this video... https://youtu.be/jBpMe36GoW0?t=173Sun, 25 Feb 2024 22:44:09 +0000The Inflation Reduction Act of 2022 was signed into law with the goal of addressing economic challenges and encouraging businesses and homeowners to adopt more “green” energy practices. With this bill comes an important provision: the Home Energy Efficient Tax Credit. This credit incentivizes homeowners to make energy-efficient improvements to their homes. In this blog post, we’ll explore how the Home Energy Efficient Tax Credit works, who can qualify, what potential amounts and expenses there are, and how you can apply to claim this tax credit. What is the Home Energy Efficient Tax Credit Under the Inflation Reduction Act of 2022? The Home Energy Efficient Tax Credit is a financial incentive provided to homeowners under the Inflation Reduction Act of 2022. This credit gives homeowners the opportunity to receive tax credits when they invest in energy-efficient home improvements, such as solar or wind energy, energy efficient heating and cooling, etc. These improvements aim to make homes more sustainable and “green,” reducing energy consumption and the costs associated with it. Who Can Qualify for the Home Energy Efficient Tax Credit? In order to qualify for the Home Energy Efficient Tax Credit, there are certain criteria that homeowners must meet. For the most part, if individuals make eligible energy-efficient improvements to their primary residence, they will qualify. Renters and those that make improvements to a second home used as a residence may also qualify. If you make improvements to a home that is never used as a residence, you will not qualify. It’s important to note that you can ONLY claim the credits for the year in which the improvements were installed. What Are the Qualifying Credit Amounts and Expenses? The qualifying credit amounts and eligible energy-efficient expenses are directly related to the type of improvement made. For home clean electric products, such as solar electricity, fuel cells, wind turbines, and battery storage, the tax credit is 30% of the cost. For heating, cooling, and water heating, such as heat pumps, heat pump water heaters, solar water heating, efficient air conditioners and heating equipment, etc, the tax credit is anywhere from 30% of the cost up to a maximum of $600 or $2,000 (depending on the improvement). Other energy efficient improvements may also qualify for at least 30% of the cost such as insulation materials, exterior doors, windows, and skylights, home electric vehicle chargers, etc. As a homeowner, be sure to carefully review the legislation and rules surrounding these improvements and tax credits in order to maximize your financial benefits with the Home Energy Efficient Tax Credit. You can learn more on the specifics, qualifying improvements, percentages, and limits on the energy.gov website. How Do You Claim the Home Energy Efficient Tax Credit? In order to claim the Home Energy Efficient Tax Credit, there is a process you must follow. DOCUMENT YOUR IMPROVEMENTS You must keep a detailed record as proof of the energy-efficient improvements made to your home and residence. Keep all relevant documents, such as quotes, receipts, and invoices. ENSURE ELIGIBILITY Make sure to double check that the energy efficient improvements made quality for the tax credit. Again, check the specific requirements and tax credit amounts and expenses to ensure you are eligible. COMPLETE THE NECESSARY FORMS ALONG WITH DOCUMENTATION In order to apply for and claim this tax credit, you must file Form 5695, Residential Energy Efficient Tax Credits Part II with your tax return. You must claim the credit in the tax year that the improvement was installed (not purchased). Be sure to consult your tax professional to ensure the forms have not changed. Attach the necessary documents (quotes, receipts, and invoices) to your form when submitted. This is a key step for ensuring the expenses associated with the improvements are considered and matched up with the potential available credit. In conclusion, the Home Energy Efficient Tax Credit under the Inflation Reduction Act of 2022 is a great opportunity for homeowners to make energy efficient improvements while being rewarded with financial and tax-saving incentives.Wed, 21 Feb 2024 14:30:14 +0000When a tech completes a timing belt in 3 hours, but the job is billed to the customer at 4 hours, we don't reduce the labor charge. BUT, if we project a check engine diagnosis to take 2 hours, but the tech completes the testing in 1.5, why do so many shops reduce the labor charge to 1.5 to the customer? We need to get away from selling time, to selling what the job is worth. We need to factor in that highly complicated jobs require your top tech (the most expensive too), the most expensive equipment and information programs, more service advisor time to explain, and have NO part profit. Your labor rate also has to be based on your top tech's pay rate, plus your average gross profit percentage added to your labor rate, at minimum. Your thoughts, comments, opinion?Tue, 20 Feb 2024 15:20:46 +0000I know two things about booking the next appointment. First, many struggle with it. And those that do book the next appointment at car delivery increase sales, maintain car counts, and have a better ROI. Why, they focus on the customer right in front of them. We all know that retention is less costly than new customer acquisition. So why do so many service advisors struggle with this?Wed, 14 Feb 2024 17:54:37 +0000Concerning DVIs... A customer once told me, “I went to the shop for an oil change, and they came out with a list for thousands of dollar's worth of work. All I wanted was a damn oil change.” Has anybody else experienced this?Thu, 08 Feb 2024 17:21:33 +0000Tax season is just around the corner, and for many, this time of year can be both daunting and overwhelming. However, with the proper planning and organization, you can take on tax season with confidence! This blog post will serve as your comprehensive guide to tax season preparation, outlining the key steps you need to take to ensure a smooth and stress-free tax season! How To Prepare For Tax Season Preparing for tax season seems like a year-long process at times. From tracking mileage to organizing receipts, there’s always something tax-related to do. However, when the calendar turns over to a new year, it’s time to really start thinking about tax season preparation and the steps you need to take to get ready for filing day. Read on for your complete guide to tax preparation and everything you need to know! STAY INFORMED ABOUT TAX LAW CHANGES Tax laws are ever-changing and it is your responsibility to stay informed on these changes, as they can make a significant difference. Familiarize yourself with any updates or changes to tax laws that may affect your filing status or eligibility for credits. You can also reach out to your tax preparer or accountant for more information on these changes and the potential impacts on your taxes. GATHER AND ORGANIZE KEY DOCUMENTS This is one of the most daunting parts of the tax season preparation process – gathering all of the key documents needed. This includes tax forms such as W-2’s, 1099s, and other forms. You’ll also want to gather and organize receipts, mileage records, social security documents, bank statements, income statements, expense records, payroll records, tax deduction records, profit and loss statements, balance sheets, financial statements, and any other relevant or requested paperwork. Take some time to review all of your financial documents and categorize them by income and expenses to make it easier to identify potential deductions or tax credits. You can use an accounting software like Quickbooks Online to make this process simple. Having all of the documents you need to properly file your taxes in one organized place will save you a lot of time and prevent last-minute searches. EXPLORE DEDUCTIONS AND CREDITS With all of your documents and records organized and in one place, you can explore and identify potential deductions and credits that are available to you. Some common deductions and credits include: Mortgage interest. Student loan interest. Medical expenses. Startup costs. Business expenses. Depreciation. Child Tax Credit. Education Credits. These deductions and credits can save you significant amounts of money, so do your due diligence and explore all of your options. CONSIDER PROFESSIONAL HELP While some individuals prefer to handle and file their taxes themselves, it is beneficial to seek out professional help. Tax professionals can provide advice and expertise, help ensure that you have everything you need, it’s all accurate, you are maximizing your savings, and overall, help you navigate tax season with a little more ease and peace of mind. PLAN FOR RETIREMENT CONTRIBUTIONS If you’re looking for more ways to positively reduce your tax liability (while planning for the future!), you can contribute to retirement accounts, such as 401(k)s or IRAs. Evaluate your contributions and look for ways to maximize them in order to take advantage of potential tax benefits, thus, reducing your tax bill. REVIEW BEFORE SUBMISSION Just like when you were in school getting ready to turn in a big test, it’s key to thoroughly review your tax return before submitting it. Check to make sure that all information is entered correctly, you’ve chosen the correct filing status, and all deductions and credits are accounted for. REFLECT AND PLAN FOR NEXT YEAR While you may be begging for a break from taxes once you’ve filed, this is a great time to reflect and plan for next year. Consider ways to make your life easier when it comes to next year’s tax season preparation as well as ways that you can maximize your tax savings. You may look at adjusting your withholdings, organizing your financial documents throughout the year using Quickbooks Online, tracking mileage using a software like TripLog, or managing your receipts online using Hubdoc or Dext. It’s never too early to stay proactive with your tax planning. By following these steps and guidelines for tax season preparation, you can stay on top of things, take advantage of resources and opportunities to save, and get through tax season with less stress and more confidence. View full articleWed, 07 Feb 2024 15:06:00 +0000Thu, 01 Feb 2024 18:18:19 +0000Another great article by Dennis Madden, recently retired CEO of ATRA. There is also a 15-minute video embedded into the article... https://gearsmagazine.com/magazine/your-greatest-challenge-the-essential-steps-for-project-completion/Wed, 31 Jan 2024 22:06:49 +0000It's a great article from a CPA. Attached below...12 Deadly Sins-2.pdfTue, 30 Jan 2024 23:09:46 +0000Many shop owners are not aware that if they pay a bonus to their employees, that bonus may be subjected to overtime laws. There is a calculation that must be used if this pertains to you. Contact your payroll company, and/or a human resource professional to make sure if you are in compliant with labor laws for your state, and they can also help you calculate the correct overtime. Below is a bulletin from a company called SESCO, a Human Resource Company.Fri, 26 Jan 2024 16:41:01 +0000The fear of raising prices, both in labor and part margins, always brings an element of fear. This is totally understandable. However, that fear may not be real. The first strategy when pricing is to ensure that you build value in what you are selling. If the perceived value is low, price becomes important. If the perceived value is high, price begins to fade as an issue. Additionally, understand your key profile customer. You know who they are. They are those that throw their keys on the service counter and say, "Fix it, I'll be back at 5pm to pick it up, and no need to call me for authorization." Remember, you cannot be all things to all people. The bottom line here, is truly the bottom line. You need to charge the right price that ensures you earn a profit. Now, don't misunderstand what I am saying here. Raising prices to overcome inefficiencies in your business is not a sound strategy either. If your production levels are not where they need to be, don't automatically look to fault your techs. First, look for bottlenecks in the service staff, not charging the right labor hours, too much discounting, and not performing enough high profitable jobs. Your thoughts?Fri, 26 Jan 2024 14:35:41 +0000A shop owner friend of mine said that he was thrilled to finally hire a qualified tech. However, his toolbox box too big for the shop. Is this becoming a problem in your shop? How do you handle the ever-growing size of technician's toolboxes? SAMPLE of some of the toolboxes these days...Thu, 25 Jan 2024 14:29:52 +0000If I could call just one automotive article a complete seminar, this would be the article. It was a very good article with some absolutely great books to read. https://www.ratchetandwrench.com/shop-life/columnists/article/33006771/bennett-10-must-read-books-for-auto-repair-shop-ownersWed, 24 Jan 2024 19:19:07 +0000Understanding and navigating the tax implications and responsibilities of business income is crucial for every business owner, especially those operating as an S-Corp. A very common question that often arises is whether or not S-Corp distributions and draws are taxable. In this blog post, we’ll answer this question and explore the key considerations of S-Corp taxation. What Are the Benefits of an S-Corp? First, it’s important to understand the benefits of operating a business as an S-Corp. S-Corps provide a unique level of flexibility with money, as there is a single-level of taxation on income generated by the corporation. This differs from C-Corps, in which profits are taxed at both the corporate and individual levels. In an S-Corp, income “passes through” to the shareholders, meaning it is subject to tax on the shareholder’s individual income tax return, not the business’s. Are S-Corp Distributions and Draws Taxable? Now, let’s answer the burning question of, are you going to be taxed on distributions and draws from an S-Corp? The short answer is… no! Generally, you are not taxed on distributions and draws, which is one of the most significant benefits that an S-Corp offers. However, the key to all of this is to pay yourself a fair and reasonable wage as an S-Corp shareholder. The IRS requires you to compensate yourself adequately, and once you have paid yourself a fair and reasonable wage, you are free to distribute or take the remaining profits out in draws. Avoiding Payroll Tax Pitfalls Keep in mind that as your profits increase, it’s not recommended to increase your payroll. Why? This leads to higher payroll taxes! However, S-Corp distributions are not subject to these payroll taxes, making this a better option for business owners looking to maximize their income without taking on additional tax burdens. Distinguishing Distributions from Profit Distributions are essentially the sharing of profits among shareholders. The benefit is, you don’t pay taxes on the distribution itself, just on the profit that it represents. This is key to remember when understanding the tax implications of S-Corp income. Before taking out distributions as an S-Corp, you must have actual profits to distribute. Therefore, business owners must track and manage their profits effectively in order to benefit from distributions come tax time. Avoiding Tax Issues When taking out S-Corp draws, ensure that you are taking out actual profits, not loan money, such as that from the SBA. This can have significant tax implications that can lead to complications and hassles down the road. Overall, S-Corp distributions and draws are not taxable. This makes S-Corps a great choice for small business owners looking to maximize their profits and save on taxes. Just make sure you stay up-to-date on the IRS guidelines, pay yourself a fair wage first, and ensure your distributions and draws are based on profits. This can help you make informed and smart financial decisions that benefits both you and your business long-term. View full articleWed, 24 Jan 2024 14:56:00 +0000Ok, I am a little frustrated. My knee has been hurting me for a few months. I finally called an orthopedic specialist group (the largest and most well-known in the area). These are the events that occurred: When you call the office, you cannot speak to anyone. You need to leave a message or go online to fill out a form I went to their website, filled out the form with all my info, and requested an appointment The next day I got a call from the office; they wanted to verify my insurance (all about getting paid, NOT my knee pain) The person on the phone said that ANOTHER person would call me to schedule an appointment FAST FORWARD - I have since called numerous times and left messages to get an update on my request for an appointment Five days later, no call, still in pain... This is a reminder to all shop owners to call back your customers. The unknown and waiting is"painful"Fri, 19 Jan 2024 12:43:24 +0000In October, Jen L. noticed that the tread on her BMW X5’s tires were pretty low, causing the car to slide every time it rained. When she found out how much four new Bridgestone tires would cost, she couldn’t believe it. “I know tires are expensive, but to spend more than $1,600 seemed outrageous,” Jen said. “So, I started looking for other options.” She found Champtires and was shocked to learn that she could save nearly $1,300 and get like-new Bridgestones for her car. “Champtires had four tires that were the exact brand and model that I needed – run flats and all-season Bridgestone tires – with all of their tread left. I bought four barely used tires for $324.68 and saved myself over a grand,” she said. Three months later, Jen is happy with her tire decision. She said, “These used tires have been great. My car has been handling really well in rain, snow and ice. Plus, who doesn’t love to save so much money?” BRIDGESTONE ALENZA SPORT A/S RFT 275/45-20 110 H Original Tread: 9/32 New Price: $408.03 / tire Cost for 4: $1,632.12 Champtires Price for 9/32: $81.17 / tire Cost for 4: $324.68 Savings: $326.86 / tire, $1,307.44 for a whole set Learn More and Shop Champtires InventoryFri, 12 Jan 2024 21:42:15 +0000With a new year upon us, this is a time for businesses to reflect on their financial strategies and make resolutions for the year ahead that contribute to the long-term success of their organization. By adopting sound financial practices, businesses can better navigate challenges, improve their efficiency and workflows, and pave a path towards sustained growth. In this blog post, we’ll explore 10 financial resolutions that are essential for every business to make in order to have a profitable, prosperous year ahead. 10 Essential Financial Resolutions For Businesses #1: REGULAR FINANCIAL REVIEW Commit to regular (monthly or quarterly) reviews of financial statements. This includes income statements, balance sheets, and cash flow statements. Doing so will help you better understand the financial health of your business while providing you valuable insights into revenue trends, expenses, and overall financial stability. #2: INVEST IN TECHNOLOGY UPGRADES Invest in modern technology such as automotive diagnostic software, customer relationship management (CRM) systems, or accounting software to streamline your operations, save time, and increase efficiency. Consider tools like Tekmetric, Nifti CRM, and Quickbooks Online to enhance various aspects of your business. #3: SET ASIDE EMERGENCY FUNDS Financial stability largely depends on your ability to prepare for unforeseen circumstances and challenges. Therefore, make it one of your financial resolutions this year to build an emergency fund to cover unexpected expenses or economic downturns. This financial safety net can help your business stay afloat during tough times. #4: BENCHMARKING AND GOAL SETTING Regularly benchmark your business against industry standards and set realistic financial goals. Use these benchmarks and goals as a roadmap to guide you in making sound business decisions and tracking progress. #5: FOCUS ON CUSTOMER LOYALTY AND RETENTION Acquiring new customers is essential for business growth, but retaining existing customers is equally, if not more important to the longevity of your business. Plus, retaining existing customers is often more cost-effective. Develop strategies to enhance customer loyalty, such as implementing a rewards program, providing exceptional customer service, or offering regular maintenance packages. #6: OPTIMIZE INVENTORY MANAGEMENT Optimizing inventory is another key financial resolution for businesses. Aim to efficiently manage inventory to ensure that parts and supplies are available when needed, without tying up too much capital in stock. Consider implementing an inventory management system to track stock levels and optimize ordering. #7: TAX PLANNING AND COMPLIANCE Staying up-to-date on tax laws and regulations is key for your business’s financial health, especially come tax time. Work with a tax professional to develop efficient tax planning strategies and ensure compliance, thus, avoiding penalties and maximizing deductions. #8: DEBT MANAGEMENT Strategize to manage and reduce debt in the new year by prioritizing high-interest debts and looking for opportunities to refinance or consolidate loans for better terms. This can help cut down on loan payments and improve your cash flow and profitability. #9: REDUCE UNNECESSARY EXPENSES Reducing unnecessary expenses is a smart financial resolution in both your personal life and your business. Identify and eliminate unnecessary expenditures by regularly auditing expenses and finding areas where costs can be reduced without impacting the quality of your work or customer service. #10: EXPAND MARKETING EFFORTS Invest in marketing efforts to attract new customers and retain existing ones. This can include digital marketing, social media presence, local advertising, or community engagement initiatives. Tailor the marketing strategy to target the local market effectively. By making these 10 financial resolutions, your business will be well on its way to a prosperous, profitable, and streamlined future. View full articleWed, 10 Jan 2024 15:06:00 +0000Repair shops that have done the math, know what their labor rate needs to be. However, are they leaving money on the table when performing some jobs, such as complicated driveability, electrical work, and other computer-related work? Shouldn't we base the labor rate on certain jobs by the technicians that are assigned to those jobs? In other words, if you have a drivability / electrical tech that is also the highest paid in your shop, shouldn't the jobs he or she performs be billed at a labor rate based on his/her pay scale?Wed, 10 Jan 2024 14:53:09 +0000We judge our shop's production by car counts and billable labor hours. But isn't this dependent on the ability of the Service Advisor to get write-ups done, cars dispatched, make sales, handle phone calls, walk-ins, etc.? If the service advisor's load increases, doesn't this affect overall shop production?Sat, 06 Jan 2024 13:19:14 +0000https://www.ratchetandwrench.com/site-placement/home/article/11461933/not-for-profit The topic title is a little tongue-in-cheek. 🙂Wed, 03 Jan 2024 16:51:49 +0000I think the past few years have told us that consumers, in general, want their cars repaired and serviced with a high degree of quality, a fair price, and a good experience. Let's face it, labor rates have gone up a lot for many shops around the country, but with little pushback from loyal customers. But, is this a complete picture? I am not sure, while labor is more accepted in the mind of the consumer, aren't part prices still an issue since it's easily researched, such as on Google, Amazon, Rock Auto, etc.?Thu, 28 Dec 2023 12:11:38 +0000I want to wish all our members the very best during the holiday season, and the very best in the New Year! What you do every day is essential to the lifeblood of our country. You keep America moving, and you should be proud!Thu, 28 Dec 2023 12:05:51 +0000I recently spoke to a shop owner who told me his techs give him pushback on performing the multipoint inspection (MPI). After a few questions, I think I revealed the REAL problem. His techs are paid Flat-Rate, and not being compensated to do the MPI. When on flat rate, every minute means earned pay. However, is it a flat rate issue or a culture and leadership problem? Or the wrong employees? I realize that time must be compensated on that type of pay system, but what about the customer and their safety?Thu, 28 Dec 2023 12:01:57 +0000Many shop owners are saying that the great business increase we experienced in the past few years is fading. I don't think so. Are things stabilizing? Probably. But we are in very good times, with great opportunity. Many shops finally raised their labor and prices that can earn them a decent profit, the average age of a car is around 12 to 13 years old and still rising. I can't speak for everyone, but would like to hear your thoughts on the state of the Auto Repair Shops from your perspective.Thu, 28 Dec 2023 11:55:21 +0000Hi folks. A quick search and I did not see any recent alignment machine posts. I have a quote from Hunter, $86,000 includes a scissor life and the concrete work to flush mount it, shipping, the machine with wall mount cameras. Some accessories. If I do conservatively 3 alignments a week my break even is approx 4.5 years, a bit longer depending on financing cost. I lease my shop, and one of my biggest fears has been getting kicked out of here. Should I be looking at obtaining a location instead? I am always nervous about taking on the massive cost of a bigger building, especially when I struggle so often to hire good people. I talked to a friend that went from a small shop like I have to a larger facility and he said it was a lot more headaches with very little increase in income. I want less headaches, less stress. Maybe it is my small shop that makes it hard to hire? Is this the right time to try to get a new location? How do I even start finding financing, I do not have a ton of cash saved up right now. Should I get the alignment machine now, and continue to save up for a new location? How much do I need down for a new spot? Should I keep my eye open for other shops that might fail in the coming year and hold off on the alignment machine and continue to stack cash? I am kind of tired of loosing an employee for 30 minutes to an hour to run an alignment across town that may or may not get done to the same quality standards I hold my employees to.Wed, 27 Dec 2023 19:05:16 +0000and part 2:Wed, 20 Dec 2023 21:30:54 +0000Do you charge for your time researching and finding obsolete part for the job? The reason I ask is we come across this issue working on older vehicles. That needs an OEM that is made anymore. It takes time sometimes hours to find that particular part. Should the shop absorb this cost for research or pass it on to the customer?Wed, 20 Dec 2023 04:14:29 +0000With the new year quickly approaching, it can be tempting to start planning for your future goals and projects. However, it’s important to do a thorough year-end financial review before shifting your focus to the new year. This not only helps you understand the growth you’ve made and areas of learning that you can improve on, but it allows you to celebrate your accomplishments from the past year. In this blog post, we’re breaking down how to do a year-end financial review so you can plan strategically, identify opportunities for growth, and improve your financial management and health moving forward. How to Do a Year-End Financial Review Follow these simple steps and answer these guiding questions to conduct a thorough year in review for your business finances. SET THE STAGE: WHAT WERE THE FINANCIAL GOALS? To begin this process, revisit the financial goals of the business that were set at the beginning of the year. It’s important to look at factors such as revenue targets, profit margins, and expense management. These goals serve as the benchmarks that you measure your financial performance against, so reflect on how specific, measurable, and attainable these goals were. EVALUATE GOAL ACHIEVEMENT: DID WE MEET THOSE GOALS? After reflecting on the financial goals from the past year, analyze how well you performed financially against those goals. Did your business and team meet or exceed the revenue targets? Were expense controls put in place and made effective? Were there any shortfalls? If so, what reasons can you identify for those shortfalls? Celebrate the successes and growth that contributed to meeting or exceeding any financial goals. CELEBRATE SUCCESS: WHAT WENT WELL? It’s important to celebrate the financial successes and wins of the year with your entire company. Point out successful product launches, increased sales, or cost-cutting measures that proved effective for your company. Recognize the key players that made these goals a reality and provide insights into the strengths of your team’s financial strategies and operations. LEARN FROM CHALLENGES: WHAT COULD HAVE BEEN IMPROVED? Just as it’s important to celebrate your successes, it’s also important to acknowledge the challenges and areas that could have been improved. This may be budget oversights, unexpected expenses, or inefficient financial processes. By accepting and evaluating these challenges, you can make sound decisions for the future based on experience and use this as information to eliminate potential issues in the future. REFLECT ON YOUR HONEST FEELINGS Finally, put the numbers aside and reflect on your honest feelings about the past year. Where did you feel like you made the most growth? What challenged you to grow in positive ways? What caused you stress or overwhelm? What brought you the most joy and pride? How do you feel about your business currently and what are you excited for in the future? What do you want to continue in the new year and what do you need to let go to allow for other focuses? Answer these questions honestly as you wrap up your year-end financial review. It may also be beneficial to have each team member do this to learn how everyone is feeling in terms of the company and financial goals as a whole. Overall, conducting a comprehensive year-end financial review is a powerful tool for reflecting on the past, celebrating successes, learning from challenges, and making sound financial decisions for the future based on experience and data. This is about both the numbers and the feelings of you and your team. With this year in review complete, you’ll feel more confident moving into the new year with clarity! View full articleTue, 19 Dec 2023 23:07:00 +0000