Introduction
Today, many of the smaller shops are struggling with not only getting enough work but dealing with the newer, more complicated vehicles. Nothing is worse turning away a job because you don’t have the right mechanics. The only thing that could be worse is when the repair becomes one of those where you lose money and pride on.
Use Case
We partnered with a small shop named Quality Car Care that has a really great location but could not handle most of the repairs coming through their front door. While he had a really great team that could handle simple repairs, SMOG tests and AC work. There was ample amounts of complex and specialized repairs to newer, more expensive vehicles that his team couldn’t handle. Which he had to turn away.
We focus on how they could help them stop turning away all this business by having temporary contract specialist on various makes of vehicles.
away less work started to use Hefe to temporary hire specialists to drive more revenue. The small shop, Quality Car Care had a great location but could not handle many of the repairs coming the front door. Not only was his existing staff not qualified for the complex, specialized repairs, they were fully loaded up on simpler, less profitable work all day long. Adding more full-time mechanics wouldn't solve the problem with the wide variety of vehicles coming off the street.
The Rolodex of Experts
One of our independent agents, needing to fund his rather expensive racing hobby (NHRA Super Street) with some other means besides hocking t-shirts and begging sponsors. He came up with an interesting solution for Quality Car Care (QCC), he would recruit guys he knew at the various dealerships that knew all the specialized procedures for modern cars and made them available to QCC to leverage. They would post the different one-off projects to the various mechanics with an agreement, which is shop hours at whatever rate. Shop hours meaning that if the book said it would take 10 hours of the operation, they’d get their 10 hours at contractor rates, even if they could complete the job in 2 hours using their experience. The work would be to the quality of the 10 hours, otherwise they’ll fix it for free. Simple agreement.
The agent setup the account for QCC and enrolled his network of mechanics. When the first job rolled into the front door of Quality Car Care, it was a sunroof for a late model Ford F-150 that would not close. The dealer down the road wanted a $3,200 for the repair and didn’t have a time or date that would work out for the customer. This pickup truck was the customer’s lifeblood, he couldn’t wait for two weeks with the sunroof wide open. Letting in the rain and criminals. Then to make matters worse, the dealer needed the truck for week to do the repairs. QCC quickly jumped on this opportunity to expand their business, saying to the customer that they’d check with their certified F-150 specialist.
QCC quickly posted this job opportunity to Hefe and notified the two guys that worked on F-150s. Both of whom worked down the street at that same dealership. Initially QCC didn’t know what to post the job for, thinking it would be $500, but then after some back’n’forth the sum was settled for $1,000 to do it the next evening. QCC phone the F-150 Owner and said they would do it the next evening for $2,000 as a “overnight rush job” after he was done with work. It would be done in the morning. Shocked at the speed and price, the customer quickly agreed and they made arrangements to drop off the truck.
The mechanic was quickly hired for the one-off job and he’d pickup the rebuild parts from the parts window at work. That evening the truck was dropped off at 5:00PM, the mechanic showed up at the shop at 5:30PM. By 7:30PM the new rebuild parts were professionally installed and tested by the factory certified mechanic. The owner of QCC made an extra $1,000 by staying an extra 3 hours. He had to do some paperwork anyways. Though he did not call the F-150 owner to pickup the truck until the morning, just to make it look like the repair was very laborious and difficult. Which it wasn’t. The owner was overjoyed by how QCC “pulled off a miracle” and worked through the night for him. He was going to bring his truck and his wife’s car into QCC for all their servicing from now on.
The mechanic made $1,000 on the side, which technically he wasn’t supposed to be “working” for other shops. But money talks and this guy also had some expensive hobbies that a $1,000 would go to pay for more parts and tires for his hobby. In a week this mechanic could make another $5,000 on side gigs which was more than his regular salary at the dealership. From what I understand, he had his eye on an aluminum 427 engine block.
The guy who organized it all made a cool $30 off that one gig, which wasn’t going to change his world that moment. But he was playing for the long game and this first win was going to keep delivering day in and day out from now until the foreseeable future. QCC started doing jobs like this daily, after a couple months they were earning him a large sum of money weekly without him spending another minute of “working”. Well he still “works” with QCC, which he said entails stopping by to show off his latest mods to his Super Street car to the crew at QCC. He makes the tour once a week to different shops as QCC was one of many local shops across the city and neighboring cities that he got onto Hefe. The car also helps him recruit more mechanics along the way. But that wasn’t the best part…
The best part was the race car and the nice tow rig were all now marketing expenses for his new business. Before Hefe, he earned around $100k, got taxed on his earnings and then only had a few dollars leftover to spend on his passion. Now with Hefe, he earned, spent money on the race car business and only got taxed on profits that he took himself. One of the “Rich Dad, Poor Dad” principles that he had read about but had no idea how to pull off. His tax guy confirmed that the expenses are legit as he could prove to any tax auditor how the car supports his Hefe agent business. Oh, he still works at the GM dealership as well for the healthcare benefits, seniority and all that paycheck money goes to the wife with no more sleeping in the dog house when she founds out about something he bought at Summit. As he says “Happy Wife, Happy Life.”
Summary
There is countless ways that you can apply Hefe to the automotive space. Many times shop owners already know other guys that can hire. But from what we hear from our agents, most shop owners who spend 24x7 in their own shop struggling to survive. They have no time to get out to find new talent or revenue streams for their struggling shops. Because of QCC’s location and market, prior to Covid-19, they were on path to bring in an extra $400,000 in revenue annually with around $200,000 in pure profit that they didn’t have in the past. They didn’t have to invest into sending mechanics to training, which they couldn’t afford to do. Didn’t have to buy (or had the cash or credit to buy) a new machine. Or hire an expensive mechanic that didn’t have enough work to pay for the extra expense. This allowed them to flexibly monetize their one asset, their location to service more vehicles makes and models. Turn away fewer repairs. Get them done faster. Build new loyal customers.
When you look to apply Hefe to the automotive market. There is countless, win, win, wins (the mechanic, the shop, the vehicle owner) you pitch. The automotive space is quite interesting due to the volume and large transaction size. Which means more revenue to you as the agent. While recreating value for everyone. You gotta love that.
We love hearing these stories, dreams becoming reality. More we love telling your story. Please DM us more of these awesome stories. We’d love to come fly out to meet your customers and see you at the track.