Results›Case Study 02

Prior Automotive Operating Experience

FROM $70K TO $187K PER MONTH IN ROUGHLY TWO MONTHS.

Richfield, Minnesota — Transmission & General Repair Facility

When Tim Tyler stepped into this Richfield, Minnesota transmission and general repair operation, the shop had opportunity but was not capturing it.

The owner was frequently saying no to work before giving the customer the opportunity to decide, pricing was too conservative, inspections were not being consistently performed, and the shop lacked clear systems for tracking goals and performance.

The business did not need one small adjustment. It needed a change in mindset, pricing, process, technology, and accountability.

Before

WHERE THE SHOP STOOD.

Monthly Sales$70,000
Gross Profit42%
Net Profit$12,000
ARO$890
Monthly Car Count120

Team structure:

Owner + 1 Technician

The First Change

SAY YES.

"Yes — bring it in."

One of the biggest shifts was simple: instead of deciding for the customer what they could afford or whether the shop should take the work, the team focused on creating the opportunity first and allowing the customer to make the decision.

This mindset became part of the scheduling and sales process.

What Changed

WHAT CHANGED.

PRICING

  • Implemented a parts pricing matrix
  • Raised the labor rate
  • Added shop supplies
  • Improved pricing discipline

INSPECTIONS

TECHNOLOGY & TRACKING

  • Repair orders
  • Estimates
  • Digital inspections
  • Invoicing
  • Reporting
  • Goal tracking

GOALS & ACCOUNTABILITY

Building a Winning Culture

WE ARE WINNERS.

WE ARE THE BEST TEAM OUT THERE.

The shop moved away from a cautious, reactive environment and toward a team that believed in the business, understood the goals, and was excited to come to work.

The goal was to create a culture where people knew what winning looked like and wanted to achieve it together.

After

THE RESULTS.

MetricBeforeAfter
Monthly Sales$70K$187K
Gross Profit42%61%
Net Profit$12K$45K
Average Repair Order$890$1,200
Monthly Car Count120155
Team StructureOwner + 1 TechGM + 2 Techs

Initial turnaround results were achieved during approximately two months of direct operating involvement.

Continued Growth

THE GROWTH CONTINUED.

After the initial turnaround, the shop continued building on the systems, pricing, culture, and operating structure.

The business later added two additional technicians and is now reportedly producing approximately $250K per month.

Later reported operating level

$250K

Per Month

This later reported operating level reflects continued team growth after the initial two-month turnaround period and should not be attributed to the initial two-month turnaround period alone.

Core Lesson

THE CUSTOMER GETS TO DECIDE.

Shops lose opportunity when owners or advisors decide what a customer will say before the work is properly inspected, presented, and explained.

Richfield changed when the team started saying: "YES. COME IN."

Then pricing, inspections, technology, tracking, goals, and accountability gave the team the systems needed to execute.

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.