Results›Case Study 03

Prior Automotive Operating Experience

FROM -$85K TO +$55K NET PROFIT IN THE FIRST MONTH.

14-Bay Minnesota Automotive Repair Facility — March 2026

When Tim Tyler stepped into this 14-bay Minnesota automotive repair facility in March 2026, the shop had plenty of capacity and talent but the operating structure was not working.

The location was overstaffed relative to performance, technician compensation was too heavy for the production being generated, team morale around leadership was poor, and the shop lacked a process that aligned people, production, pricing, inspections, and accountability.

The opportunity was not simply to add more people or sell more work.

It was to build the right team, the right compensation structure, and the right operating system.

Before

WHERE THE SHOP STOOD.

Monthly Sales$220,000
Gross Profit42%
Net Profit-$85,000
ARO$650
Monthly Car Count280
Billed Hours729.45

Team structure:

1 General Manager
2 Service Advisors
3 A-Level Technicians
2 General Service Technicians
2 Lube Technicians
14 Service Bays

The Challenge

THE CHALLENGE.

The shop had capacity, experienced technicians, and a full team. But the operating structure was misaligned in several critical areas.

  • Overstaffing relative to production
  • Poor leadership morale
  • Technician compensation too heavy for the shop's performance
  • Weak accountability across the operation
  • Inconsistent vehicle inspections
  • Poor alignment between staffing, pay plans, production, and profitability
  • Lack of a strong operating process

Some technician compensation packages were approximately $130,000 annually while the shop itself was losing money. This was not a reflection of individual employees — it was a structural mismatch between compensation and the shop's actual performance.

The operation did not need more people. It needed the right structure.

What Changed

WHAT CHANGED.

RIGHT PEOPLE, RIGHT SEATS

Staffing was evaluated quickly. Some employees were separated from the company, new people were hired, and roles were restructured around performance and accountability. One service advisor was replaced. The other service advisor was promoted into an Assistant General Manager role.

The goal was not simply to reduce staff. The goal was to put the right people in the right positions and build a team capable of winning together.

PAY PLANS

Compensation structures were changed so employee incentives aligned more closely with technician production, shop performance, and profitability.

PRICING

The shop improved its revenue model across four areas.

  • Raised the labor rate
  • Updated the parts pricing matrix
  • Added a card fee
  • Improved pricing discipline

TECHNICIAN LEADERSHIP

One of the biggest changes was earning the technicians' respect and creating clearer expectations. Instead of simply demanding more production, leadership became more consistent and technicians understood what the shop needed from them. The team responded with stronger production.

729.45 → 1,008.35 BILLED HOURS

INSPECTIONS

The team was shown how to complete vehicle inspections correctly and consistently. This improved the quality of legitimate recommendations being identified, documented, and presented.

PROCESS & ACCOUNTABILITY

A stronger operating process was established. The shop began operating more like one team instead of separate departments or individuals.

  • Expectations
  • Production
  • Staffing
  • Inspections
  • Leadership
  • Accountability
  • Daily execution
  • Team profitability

After

THE RESULTS.

MetricBeforeAfter
Monthly Sales$220K$295K
Gross Profit42%58%
Net Profit-$85K+$55K
Average Repair Order$650$870
Monthly Car Count280340
Billed Hours729.451,008.35

Billed hours increased by approximately 38%.

The initial turnaround occurred within the first month of operating leadership.

Biggest Win

A 14-BAY SHOP THAT HAD BEEN LOSING MONEY BECAME PROFITABLE.

Net Profit Before

-$85,000

→

Net Profit After

+$55,000

Within the first month, the operation moved from approximately -$85,000 net profit to +$55,000 net profit while reaching approximately $295,000 in monthly sales.

The result came from aligning staffing, compensation, pricing, production, inspections, leadership, and accountability.

Building a Winning Culture

THE TEAM STARTED WINNING TOGETHER.

One of the biggest changes was the team beginning to work together toward the health and profitability of the entire shop.

Technicians, advisors, and leadership became more aligned around common goals, production expectations, and accountability.

Core Lesson

MORE PEOPLE DON'T ALWAYS CREATE MORE PRODUCTION.

High-performing shops need:

THE RIGHT PEOPLE.

THE RIGHT PAY PLANS.

THE RIGHT PRICING.

THE RIGHT PROCESS.

THE RIGHT LEADERSHIP.

The operation improved when those pieces began working together.

Take the Next Step

WHAT COULD YOUR SHOP LOOK LIKE 90 DAYS FROM NOW?

If you know your shop is capable of more but you're not sure where to start, let's look at the business together.