Comments on: The Transition from Technician to Shop Owner: American Dream or Nightmare? http://diagnosticnews.com/management/the-bonehead-cycle/ the Automotive Diagnostic Newsblog Wed, 28 Dec 2011 22:58:27 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Steven Redlon http://diagnosticnews.com/management/the-bonehead-cycle/#comment-46 Steven Redlon Tue, 01 Jun 2010 04:34:26 +0000 http://automotivevideotraining.com/news/?p=429#comment-46 Thank you Mr. Witt for replying back> I acn do diagnostics, as a small shop owner, i dont know how much time i will have to do it. Starting out it is just going to be me. My factory training is with Honda. Luckily they are very popular so finding the market should be easier. I have also owned 3 Suzukis an Esteem a Forenza and a SX4. I want my shop to do Asian Imports, and with a subscription to Identifix and a Snap-on Solus( perhaps) I may be good to go. Thank you Mr. Witt for replying back> I acn do diagnostics, as a small shop owner, i dont know how much time i will have to do it. Starting out it is just going to be me.

My factory training is with Honda. Luckily they are very popular so finding the market should be easier.

I have also owned 3 Suzukis an Esteem a Forenza and a SX4. I want my shop to do Asian Imports, and with a subscription to Identifix and a Snap-on Solus( perhaps) I may be good to go.

]]> By: George Witt http://diagnosticnews.com/management/the-bonehead-cycle/#comment-45 George Witt Tue, 22 Sep 2009 09:11:20 +0000 http://automotivevideotraining.com/news/?p=429#comment-45 This is an interesting dilemma. Although it is important to prevent cars from breaking, we also must provide some means to assist our customers when they do break. This can take several forms. If there's a shop nearby that does do diagnostic work well, you might be able to take the car to them for testing when needed. They do the diagnostic work, you sell the repairs and perform them for your customer. This also highlights the importance of keeping our focus tight on what we do work on. Due to the high complexity of today's cars, it's unwise to "specialize in foreign and domestic" cars. Like, what's left? You need to take a combination of the make or makes that you love to work on and the number of those available in your market area. If you love Volvos, but there are none registered in your county, this probably ain't the smartest business plan. Ideally, there will be a few makes (preferably those whose technology is similar) that you can highlight in your operation. This will make training and tooling easier to accomplish. Get tooled up for those makes and learn how to fix them. Next, when looking at what a tool will cost to buy, we must also look at the cost to NOT HAVE IT. In the above case, you're now dependent on another shop for diagnostics. If it works great, fine. If it doesn't, then the cost gets higher to not have the tool. Also, record the number of times you need to use it. Multiply that times what you could charge for it and you now have the actual cost per month to not have the tool. If you get 3 requests a week for "check engine light" work and you could charge $90 for testing, you're out $270 a week. This amounts to 156 requests a year, which is $14,040 a year!! Clearly, you need to borrow some dough to get that tool and some training. The "cost to not have it" is too high. Many times you can get great complex testing tools used at great deals. Quite a few guys buy them and give up learning how to use them, so they sell them at a loss. There are some great deals out there. In addition, factory service information can make fixing things a lot easier and narrowing your focus means you'll be using that factory system more often. A lot more of this type of information is in my "Advanced Pricing Strategies" DVD and book. We do a fair amount of diagnostic work for other shops at my shop. If you only need this a few times a month, it becomes less of an issue. Thanks for replying. George This is an interesting dilemma. Although it is important to prevent cars from breaking, we also must provide some means to assist our customers when they do break.
This can take several forms. If there’s a shop nearby that does do diagnostic work well, you might be able to take the car to them for testing when needed. They do the diagnostic work, you sell the repairs and perform them for your customer.
This also highlights the importance of keeping our focus tight on what we do work on. Due to the high complexity of today’s cars, it’s unwise to “specialize in foreign and domestic” cars. Like, what’s left?
You need to take a combination of the make or makes that you love to work on and the number of those available in your market area. If you love Volvos, but there are none registered in your county, this probably ain’t the smartest business plan.
Ideally, there will be a few makes (preferably those whose technology is similar) that you can highlight in your operation. This will make training and tooling easier to accomplish. Get tooled up for those makes and learn how to fix them.
Next, when looking at what a tool will cost to buy, we must also look at the cost to NOT HAVE IT. In the above case, you’re now dependent on another shop for diagnostics. If it works great, fine. If it doesn’t, then the cost gets higher to not have the tool.
Also, record the number of times you need to use it. Multiply that times what you could charge for it and you now have the actual cost per month to not have the tool. If you get 3 requests a week for “check engine light” work and you could charge $90 for testing, you’re out $270 a week. This amounts to 156 requests a year, which is $14,040 a year!!
Clearly, you need to borrow some dough to get that tool and some training. The “cost to not have it” is too high. Many times you can get great complex testing tools used at great deals. Quite a few guys buy them and give up learning how to use them, so they sell them at a loss. There are some great deals out there.
In addition, factory service information can make fixing things a lot easier and narrowing your focus means you’ll be using that factory system more often.
A lot more of this type of information is in my “Advanced Pricing Strategies” DVD and book.
We do a fair amount of diagnostic work for other shops at my shop. If you only need this a few times a month, it becomes less of an issue.
Thanks for replying.
George

]]> By: Julie Collier http://diagnosticnews.com/management/the-bonehead-cycle/#comment-44 Julie Collier Wed, 16 Sep 2009 17:56:57 +0000 http://automotivevideotraining.com/news/?p=429#comment-44 Steven, Thank you for your comment. George definitely knows how to build a profitable shop. I agree that not every shop has to take on every kind of diagnostics to be successful. Keep working towards that goal and I wish you great success. I have forwarded your comment to George for him to comment back. Thanks, Julie Steven,

Thank you for your comment. George definitely knows how to build a profitable shop. I agree that not every shop has to take on every kind of diagnostics to be successful. Keep working towards that goal and I wish you great success. I have forwarded your comment to George for him to comment back.

Thanks,
Julie

]]> By: Steven Redlon http://diagnosticnews.com/management/the-bonehead-cycle/#comment-43 Steven Redlon Thu, 03 Sep 2009 22:28:39 +0000 http://automotivevideotraining.com/news/?p=429#comment-43 I have the same dream, and I agree preventive maintenance is the way to go. I liked how you stated that the best to have cash, is not to spend any. I would like to have at least a mid range scanner to maybe install an 02 sensor or whell speed sensor, but that is about as far as I would take the diagnostics in my shop. Although I am still working towrad that goal, I feel that with in the next two to three years I should be able to do so. Preventive maintenance and some light OBDII Diagnostic work is my plan. Anyways thanks for listeneing. Steven R. I have the same dream, and I agree preventive maintenance is the way to go. I liked how you stated that the best to have cash, is not to spend any.

I would like to have at least a mid range scanner to maybe install an 02 sensor or whell speed sensor, but that is about as far as I would take the diagnostics in my shop.

Although I am still working towrad that goal, I feel that with in the next two to three years I should be able to do so. Preventive maintenance and some light OBDII Diagnostic work is my plan. Anyways thanks for listeneing.

Steven R.

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