What's That Old 'Cat' Worth?

As Shop Owners, we generate SO much waste as a byproduct of our business that it’s staggering when you step back and look at it. It’s not a matter of blame or fault; it just comes with the territory of fixing cars on a daily basis.

So I’ve put together a list of some of the waste that we generate to make us take a hard look at our costs of disposal and perhaps some opportunities that we’re missing out on:

Anti-Freeze (I use recycled, so they haul the waste away for free)

Tires (are you charging for disposal at each sale?)

Waste Oil (They’re paying us .80 to .90 cents/gal right now)

Metal

Scrap metal is one of those things that we seem to generate a lot of. Like rotors and drums, ball joints, control arms, hub assemblies, struts & shocks, wheels, radiators, condensers, heater cores, evaporator cores, and exhaust systems.

The list could go on, but I wanted to stop there and point out some of your options. All of this metal has a value to it depending on what it is: steel, aluminum, copper, platinum, palladium and rhodium… Wait a minute—where did those last ones come from?? Well, those are the precious metals that are found in catalytic converters, and they’re worth a decent buck too.

Sure all the other metals can incrementally add to our bottom line. And since we generate SO much of them, it’s not hard to see them add up in a short time depending on how much you generate. But it does take up a lot of space to hold all this scrap metal, separate it into those individual metal types and then haul it away to be weighed and paid. Sometimes it’s better to allow them to come to you and give you a small amount for the service or give it away to a very good customer that will return the favor in repair work. Either way, make sure you’re getting SOMETHING for it.

It’s the precious ones I want to dive into here like platinum, palladium and rhodium; those that are found in cats. I used to pile these in the scrap metal bin and let my metal scrapper take them that is until I finally found an EASY and LUCRATIVE way to cash in on them. I’m always looking for ways to maximize my profits and since the local scrap yards are only paying between $5-$15 per cat, it just wasn’t worth my time to make a special trip there for the few we’d generate. That is until a shift started occurring in our industry.

Have you noticed lately the spike in catalyst efficiency codes that are necessitating the replacement of more cats than ever before? Well, I did and that made me start to look for an alternative to the local scrap yards meager compensation for some of the rarest and most precious metals we handle. I didn’t want to get into cutting them open to salvage the core where all the metals are imbedded—that’s too much work! So I started looking on line with my old pal Google and came upon a place in Lancaster, Pa. that specializes in catalytic converter scrapping.

Here’s the deal; they have an awesome website that has pictures of the most common cats and the current values of each of each of them. Their prices are between $10 and over $100—WOW!! Now that’s an attention getter. And the best part is their retrieval method. They have a FREE UPS pick up service that enables us to ship the cats in the mail at no cost to us whatsoever! Plus when they receive your cats they send you a confirmation email with the stated values for each one and how much the check will be. And that check arrives within a week of your confirmation.

When I first found these guys, I’ll admit I was skeptical about the whole process. It just looked too good to be true. So we looked up the 8 cats we were saving for this experiment on their web site and applied for an account so we could print out our free UPS pick up label. UPS comes almost every day anyways so that’s easy. Then the email came with our confirmation of receipt and the values of the cats—I was stunned as each one was valued exactly as they said it would, except a couple of them they actually paid more (I guess we looked them up wrong), oh darn. And when the check showed up I was almost giddy as I told Lisa to deposit them quickly just in case it was all a dream or something.

But it wasn't a dream—it’s really an honest, easy and straightforward recycling process that adds even more profits to our bottom line every week. In the short time since we’ve been dealing with them this year I’ve received hundreds and hundreds of dollars in checks and seen the average cat price to be around $50, and we’ve actually even received $110 for one.  So stop throwing away your cats, save some good shipping boxes (they’ll tell you the max dimensions on the site), and check out this valuable resource for yourselves—you won’t be disappointed!

Go to: www.SellYourCatsDirect.com

And when you do get your checks in the mail, send me an email telling me about your experiences too, or if you’ve found a better way to cash in.

Be Successful, And Be Around Those That Are Successful...

 

If you'd like to reply to this post, please do so below. Or you can email me direct if you have any questions - OK?

Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too!!

Makes sure you're on the email list by going to:

www.Shopdoctor.com

Dave Striegel
RightWay Automotive Solutions
dave@ShopDoctor.com
(412) 543-8946

  Ray Kroc said “Luck is a dividend of sweat.

The more you sweat, the luckier you get.”

 

Most of my life I’ve considered myself to be one of the luckiest people on the planet. How I got through my teens to running my first business at 20 years old, and from there on has been a wonder. It wasn’t until I hit my 30’s that I first heard the quote from the Roman philosopher Seneca that says “Luck is what happens when preparation meets opportunity”.

That’s when I started to realize that luck isn’t something that just happens, you have to make your own. Sure you can get lucky and hit the lottery, but you still have to play to win—right?

Just look at successful people like Tiger Woods; arguably the most coached, prepared golfer to ever hit the tour. Since very early in his life his whole focus was to master his sport, and he did. So why did his career take a sudden nose dive? Was it bad luck or something else?

How often do we hear someone say “He’s down on his luck”, perhaps we should ask “Or is he down on his choices”?

Looking back on life, there pops up instances where you might say that was a stretch of bad luck, but I’ve found it usually is the result of bad habits or bad choices. It really boils down to a matter of ownership, do we take full responsibility of our lives and actions. In Tigers' case, I'd say it was a lot of both - bad habits AND bad choices.

Those that have good habits and make good choices tend to have the best luck.

 

Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too like our "How To Attract & Serve More Women In Your Shop" coming up on Thursday, January 31st from 7pm till 9:30pm.
To find out more and make sure you're on the email list go to:

www.Shopdoctor.com

Dave Striegel
RightWay Automotive Solutions
Dave@ShopDoctor.com
(412) 543-8946

 

Who’s in your Sphere of Influence?

Have you ever heard the old saying “You are the product of the 5 people that are closest to you”?

Those people that you choose to hang around, your friends, family and coworkers are defining who you are. Hanging around whiners and complainers with little ambition in life can drag you down to that level too. If you are being exposed to negative thoughts and opinions all day, you will develop them yourself. It’s an odd phenomenon that can have a profound impact on your mood, your life and how you live it.

But it doesn’t have to be all bad, you can choose to be around those that are positive and up-beat. Friends and family that encourage you to follow your dreams and inspire you to reach new heights—it’s all in the daily choices you make. Look around you and decide to engage only with the positive influences that will help you along. Avoid the negative ones and watch your attitude and achievements soar. Don’t be dragged down by the self-limiting beliefs that you aren’t worthy of success.

 I like the saying “Be successful, and be around those that are successful”.

Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too like our "How To Attract & Serve More Women In Your Shop" coming up on Thursday, January 31st from 7pm till 9:30pm.
To find out more and make sure you're on the email list go to:

www.Shopdoctor.com

Dave Striegel
RightWay Automotive Solutions
Dave@ShopDoctor.com
(412) 543-8946

Conductance Testers Sell Batteries AND...

 

 Are you tired of seeing new batteries in your clients cars, and you didn’t put them there?

AAA is carrying new batteries on their service vehicles now, so instead of just jump starting your clients car; they’re selling them a new one!

AutoZone is installing new batteries NO CHARGE for most vehicles, and this is awfully attractive when your valuable client is stuck after hours and you’re not anywhere to be found.

So when they do need a battery in a pinch, whose fault is it anyway? Poor planning on their part, or yours? I would suggest that it’s the Shops fault for not testing the battery every time we see it and recommending a new one BEFORE it fails.

Good business practice is to recommend a replacement around 4 years old here in Pa., but having a test result printed from a machine that actually tested it is even better! Nothing sells better than a printed slip that says “Test Results Failed, Replace Now”.

And the best machine to do this is a Conductance Tester. Sure, the old carbon pile or resistor ribbon machine is reliable, but they only ‘load’ test the battery to see if it passes or fails at that moment in time. It can't tell us if the battery will fail in the first cold morning when they're already running late for work. We need to be able to peer into our crystal ball and estimate the remaining CCA’s and fairly accurately predict how much life is left.

The mighty Conductance Tester IS our crystal ball, and it’s a wonderful sales tool IF it’s used by you and your Techs—Every Time!

 

There's no question a Conductance Tester will improve your sales, but even more important is the peace-of-mind you can give your customers. Remember, they rely on us to tell them in advance, to predict what's going to fail BEFORE it fails. If we can't keep them safe and reliable, so their vehicle starts every time - we risk losing them to the new car dealer.

 

People are always looking for an excuse to justify that new car purchase, and if they can't trust their car to start at night in a dark parking lot, they feel let down by us and their vehicle.

 

If you don't have one yet and would like some good advice on what to get, just leave a comment below or send me an email - OK?

Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too!!

Makes sure you're on the email list by going to:

www.Shopdoctor.com

Dave Striegel
RightWay Automotive Solutions
Dave@ShopDoctor.com
(412) 543-8946

Here's a picture of one of my favorite signs I use at my Shop (taken at night)

 

Check Engine Light On? We'll Scan It Free

Did you ever see those parts stores like AutoZone offer 'Free Check Engine Light Scan' and wonder is it really worth the trouble?
Well, they sell a TON of parts that way, and it doesn't fix the problem too often.
So, if you're thinking about the type of person this might attract, the first thing that comes to mind is cheap, do-it-yourselfer, not my kind of customer right?

Well, not exactly...

A good deal of these drivers just want to know how serious the problem is so they can decide the where and when of repairs. They're looking for the peace of mind they need to keep driving or stop what they're doing right now before they do further damage.

 

We've been offering free scans for years now in the parking lot for our regular clients and even strangers. And the reason we do this is to determine how serious the problem is, so we can schedule the where and when (sound familiar).

You see, our Shop is just too busy to risk scheduling a simple fix like a loose gas cap - if we find an evap leak detected code, we'll check the cap to see if it's tight, take the cap in and test it on the tester, clear the code if all checks out and send them on their way - NO CHARGE! With the instruction to the client of "If the light comes back on, call us and we'll schedule you in for an appointment".

The customer is happy (for now), and we've just eliminated a possible 'can't charge too much for a loose gas cap' appointment where no parts are sold and too much time is wasted at the counter.

So, how do you actually make money by scanning for free?

 

Consider this one of your NEW  'New Customer Acquisition' programs... One of the lowest cost Marketing plans you can use

Here's how we do it:

First, make sure you have an OBDII Generic scanner available for the front counter. We only offer this 'Free' service on 1996 and later vehicles that don't recquire any strange connections.
Next, if you have a sign board use this - "Check Engine Light On? We'll Scan It Free"

And make sure you use the FREE word if you want to attract more people in.

Now when people come in for their 'Free' scan, make sure you are talking to them like a welcome guest, not an interuption in your day. Ask them all the basic questions like:

• How long has it been on?
• Does it flash?
• Any changes in the way it drives when it's on?
• Have you done anything to fix it yet?

 

Then go out to their vehicle and scan it using Generic mode for fast access. Tell them if it's serious, like will it cause them to break down, or do they have time to get it scheduled in. Make sure to tell them if this problem may be covered by their manufacturers warranty (goes a long way in building trust). Doing all this will give them the peace of mind they need and they will respect you more for your honesty.

Let them know that this code only gives you an idea of what circuit the problem is in, and to properly give them an estimate you will need to perform some pin point diagnosis which may cost between $100 and $150 in investigative time. We may be able to fix the problem in that time if it's just a wiring issue, or atleast be able to give them a solid estimate on repairs, knowing exactly what parts will need to be replaced instead of guessing like some parts stores do - that can get expensive.
Ask them if they'd like to schedule an appointment now and let them speak.

This format will allow you to weed out the looky-loos and do-it-yourselfers in the parking lot with only a few minutes invested. AND also give you some very good prospects that are afraid to go back to the Dealer, willing to pay your rate. Use this opportunity to start the all-important relationship build a positive image in your neighborhood. They may not use you this time, but treat them right and they'll be back, already knowing what it will cost to come in your door.

Plant the seeds and watch them grow...

If you have any questions or comments, please post a comment below. We'd love to hear what you think.

Or send us an email to: dave@shopdoctor.com

Health Care Costs For Your Shop...

How much is TOO much, and what would it take to answer that question??

A couple months ago, I received notice that my health care provider for my Shop (Health America) was going to bump my renewal rates by over 39%!

That's just so wrong I can't even put it into words. Obviously they either didn't want our business anymore, or the experience rating for our small group (6 members out of 8) had hit a rough patch with some pretty high payouts. Now, as an employer, I'm not allowed to neb into the personal aspects of my employees. But I can't remember any major medical problems with ANY of my employees or their spouse/family.

So I asked my broker at Duncan Financial to get some competitive quotes from the other big ones (Highmark and UPMC).  Let's compare, apples to apples and see if this was just OUR provider, or an industry trend.

Well, after a couple nervous months of filling out paperwork and waiting, the results finally came back just a week before our renewal was to take place. And the numbers were SHOCKING to say the least.

Our current provider wanted to increase my rates by almost 40%, and the other two were showing apples to apples, same plan coverages of 12% and 35% - DECREASE!!

That means, not only would I be saving money by not seeing an increase this year, but we would be really saving money as in lower out of pocket expenses. And the amounts were significant. After meeting with all of my employees together to discuss the possible changes, we came to the conclusion to alter our plan a little by introducing a small deductible.

This change, along with the already mentioned 35% decrease would save each employee (if they were covered as an individual) about $600 per year of out of pocket costs. That doesn't even include my savings as a 50% plan contributor (double that). And the ones with family coverage would save even more! That's a total plan savings from our current one of over 40%, add the 40% increase and that's an 80% swing in the other direction.

All told, I will end up saving this next policy year about $9,000 in matching premiums that I pay - yes thats $9,000 less I will have to pay in expenses in the next policy year.

I guess a little competition lately has been good for us...

 THATS HUGE!!!

So here's what I recommend:

• Get competitive bids NOW for your next renewal period - don't wait
• If you think you can't afford it, check it out now - looks like the rates are lower
• always be looking at your 'fixed' expenses every year to find new ways to save more money - especially in these times

If you'd like to reply to this post, please do so below. Or you can email me direct if you have any questions - OK?

Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too!!

Makes sure you're on the email list by going to:

www.Shopdoctor.com

Dave Striegel
RightWay Automotive Solutions
dave@ShopDoctor.com
(412) 543-8946

Will the Motor Oil you're putting in your Customers GM cars VOID THEIR WARRANTY?

That's a question that you need to answer right away, since most 2011 model year GM vehicles have been factory filled with the new Dexos1 engine oil. I've been doing a little research on this topic and I'd like to share what I've found with other Shop Owners too.

In case you haven't heard of the product Dexos yet, let me give you a little background first.

It seems that GM wanted to maximize their revenues by pressuring the Oil Manufactures to buy branding rights to have the "Dexos Approved" symbol on their packaging. They would  have to pay an upfront license fee and then pay additional royalties based on the amount of "Dexos Approved" product they sold.

Supposedly, Dexos1 has advanced lubrication (being a semi-synthetic) and other qualities that help with the newer systems like Variable Valve Timing. But the funny thing is, the Dexos1 standard doesn't seem to meet the newest API S/N or ILSAC GF-5 standards.

In case this scenario doesn't sound familiar to you, all you have to remember is DexCool.

So, do you need to have a special oil on your shelf just to handle the Dexos1 requirement?

Here's what GM has printed in a majority of their domestic 2011 owners manuals supplied to their customers:

This vehicle was filled at the factory with dexos™ approved engine oil. Notice: Use only engine oil that is approved to the dexos™ specification or an equivalent engine oil of the appropriate viscosity grade. Engine oils approved to the dexos™ specification will show the dexos™ symbol on the container. Failure to use the recommended engine oil or equivalent can result in engine damage not covered by the vehicle warranty. If you are unsure whether the oil is approved to the dexos™ specification, ask your service provider.   

Use of Substitute Engine Oils if dexos™ is unavailable: In the event that dexos™ approved engine oil is not available at an oil change or for maintaining proper oil level, you may use substitute engine oil displaying the API Starburst symbol and of SAE 5W-30 viscosity grade. Use of oils that do not meet the dexos™ specification, however, may result in reduced performance under certain circumstances

The federal Magnuson-Moss Warranty Act prohibits “tie-in sales” as a condition of receiving a remedy under a warranty. In other words, the manufacturer cannot make a consumer buy specific products or services from any particular company as a condition of maintaining warranty protection unless that required product is supplied for free.

GM has stated that nothing has changed in regard to the documentation of using proper fluids and oil.  It will be helpful for the customer to keep receipts of all auto service including oil changes.  This can help them in the event of an engine failure that might be covered under their warranty.

So it looks like the best way for us to make sure we take the best care of ALL of our customers, and maintain manageable inventory levels for our Shop is to stock and use a 5W30 Semi-Synthetic engine oil that has the latest GF-5 and S/N designations. Additionally, you should have in writing from your oil supplier an assurance that the product you are using is capable of delivering acceptable performance under the Dexos1 standard.

Also, you should note the earlier reference from GM that the customer should maintain proper documentation of using proper fluids and oil. This means that every receipt you write for an oil change should clearly state:

• The viscosity used
• Brand
• And current API/ILSAC specifications like GF-5, S/N

  If you're not sure if the oil you're using is Dexos1 approved, here's a link to GM's site listing all current approved oils 

www.GMdexos.com

I use Valvoline Motor Oil products, and they are one of the major manufacturers that refuses to pay the ransom demands of GM. However, I DO need to make sure I'm protected in the event of an engine failure so It's important to acquire and maintain written documentation from them. I want to be assured that they will have my back just in case I need to fight a warranty claim that is denied by a GM dealer. So here's a link from Valvoline stating their product coverage for you to reference:

http://www.valvoline.com/promos/dexos.jsp

Make no mistake, this is a serious issue that cannot be ignored. GM dealers sales people are poisoning their customers minds with the "idea" that they have to come back to the dealer to maintain their warranty with Dexos1 approved motor oil. We must make sure we can successfully overcome this notion if we want to remain our customers trusted repair facility.  And the best time to do this is before they buy a new GM vehicle and then 'disappear' from our Shop.

Our future depends on it!!

Dave Striegel
dave@shopdoctor.com
(412) 543-8946
www.ShopDoctor.com