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The Institute’s Leading Edge Podcast

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About The Institute’s Leading Edge Podcast

The Institute’s Leading Edge Podcast is where forward-thinking Automotive Service and Repair Shop Owners come to sharpen their skills, expand their knowledge, and gain an edge in today’s competitive market. Hosted by The Institute’s team of seasoned consultants and leaders with decades of real-world experience, you’ll get direct, actionable advice tailored to the unique challenges of running and growing an auto repair business. Each episode feels like a one-on-one coaching session. Whether it’s improving profitability, building stronger leadership skills, mastering marketing, developing your team, or planning for long-term success, you’ll find strategies you can implement right away. Have a question about your shop? Send it in, and we’ll answer it on the show.

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episode 206 - Part 2: Using AI in Your Shop to Increase Performance artwork

206 - Part 2: Using AI in Your Shop to Increase Performance

206 - Part 2: Using AI in Your Shop to Increase Performance May 20th, 2026 - 00:56:24 Show Summary: John Seitzer returns to break down how automotive shops can use agentic AI to improve efficiency and save time. He explains the difference between basic AI tools and systems that can actively perform work inside your computer. The conversation covers organizing files, creating customer drop off envelopes, building social media campaigns, and automating repetitive tasks using skills and projects. John also explains the importance of oversight and why AI still needs human direction. Shop owners will walk away with practical examples they can start applying immediately.   Host(s): Jimmy Lea, VP of Business Development [https://www.wearetheinstitute.com/about-us]   Guest(s): Jonathan Seitzer, Owner, Dempsey’s Service Center [http://dempseysservicecenter.com]   Show Highlights: [00:00:36] – AI tools are spreading fast across automotive repair shops [00:03:28] – John explains the three ways he uses AI daily [00:05:07] – Agentic AI gives AI systems arms and legs to work [00:06:20] – AI projects require time money and constant supervision [00:10:42] – Claude organizes an entire messy downloads folder automatically [00:16:11] – Shops can redesign drop off envelopes using AI tools [00:21:12] – QR code envelopes reduce overnight key drop confusion [00:24:05] – AI creates social media campaigns with branded shop content [00:28:27] – Skills automate repeatable daily tasks inside Claude [00:43:48] – AI works like an eager intern and still needs oversight     In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. 👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/bAchtVE0Klo [https://youtu.be/bAchtVE0Klo]   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  * Want to learn more? Click Here [https://www.wearetheinstitute.com/] * Want a complimentary business health report? Click Here [https://www.wearetheinstitute.com/business-assessment%7C] * See The Institute's events list: Click Here [https://www.wearetheinstitute.com/upcoming-events] * Want access to our online classes? Click Here [https://www.gearforshops.com/pages/course-library] ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com [marketing@wearetheinstitute.com].   Episode Transcript: Jimmy Lea: Good morning, good afternoon, good evening, my friends. It is good to see you again this day. Glad that we're able to join together and have this conversation. AI is taking over. No, not really taking over, but good night, it is spreading like wildfire. We gonna have a great conversation here today. This is part two of our conversation with John. This is gonna be awesome. But before we get into that conversation, I want you to understand, this is an interactive conversation between you and me and John. So to make sure everybody knows how to put in the comments into the comment section, we're live streaming on YouTube and Facebook and StreamYard, so I wanna make sure you know how to put in those comments. Go into the comment section, type in your shop name, your city and state. We'll give you a shout-out here for everybody that's on the live event. Get in there and get it done quickly 'cause it goes fast. It goes fast. So let us know where you are joining us from today. A La Part Deluxe. A La Part Deluxe. Tom, what is A La Part Deluxe? Is that the name of your shar- shop? That's awesome. And John's joining us from the surface of the sun. Oh, you're so funny, John. John is our guest that's joining us today. So those of you who are with us live, thank you so much for being here. Thank you for your support. I, I hope we provide for you some awesome information. Sid joining from German Tech Motorworks in Louisville, Kentucky. Glad you are here, Sid. So glad you're here. In fact, we're gonna be in an event in Kentucky, hopefully in September, October, something like that. More details to come later. Go to our website, wearetheinstitute.com/events. You can see all of the events that are there and ready for you to come and join us as we travel all across North America, bringing valuable information to you as shop owners. Oh, and Peggy Belt, High Street Auto Repair, Jefferson City, Missouri. Peggy, so glad you are here. Thank you very much. Glad you are here. All right, let's jump into this. We're talking to John from the surface of the sun about artificial intelligence, and specifically today, we're gonna jump into that closed loop learning AI system of Claude. Is that your favorite to work on, John? Or- Jon Seitzer: Yeah, it's mine of choice for right now. When it comes to agentic AI, Claude is my agent of choice. In-browser it tends to be Gemini, but that's 'cause I'm a Chrome user. Jimmy Lea: Yes. Now I've been an, a recent adapter of Gemini in all things that I'm doing in Chrome and in email 'cause I have a Gmail account. And then Claude is my nemesis. I've been on it now for two months, and I tell you, I wanna just throttle it because I'm running out of credits way too fast. Jon Seitzer: That's, so that's interesting. I- I'd be interested to see what you're doing. We'll- ... I'll get into that in just a few slides here about what goes into agentic AI and how- Yeah ... it's different from some of the stuff we talked about in the last one. Jimmy Lea: Oh, this is gonna be awesome. I'm super excited. John, the floor is yours, brother. I'm so excited to sit at your feet and learn. Let's get into this. Jon Seitzer: Awesome. Welcome back to those of you who made the first one, and welcome to those of you just tuning in. My name's John Seitzler, owner of Dempsey Service Center here in Newark, Delaware. Prior to this, though, I spent 15 years on Wall Street working in technology and specifically delivering AI products as far back as 2019 back when it was just called machine learning. So I'm gonna put up my presentation, and we'll talk about today's topic which is agentic AI, which is just one of the last things I did before I became a shop owner, was introducing an agentic AI product into the market back where I used to work. All right. So quick recap. There are three ways I use AI, and it is rent it, I feed it, and I put it to work. Rent it is when I use AI in the tools I already pay for, like the AI in QuickBooks, in Microsoft Excel, in my shop management tool. That's AI you basically get with your subscription. And it is the easiest way to use AI, and it delivers some of the best quality of life wins. Number two is feed it. Take your tools that generate data, put that data into your large language model of choice, be it Gemini, ChatGPT, Claude or an open source model if you're really into this kind of stuff. And then look for insights. What can AI tell you? What can what can you learn from something that can get through the data quickly that might have taken you a long time and a lot of elbow grease analysis to figure out? And we did a few example of those around revenue insights. Today we're gonna talk about the third one. This is putting your AI to work. So put it to work. This is agentic AI. So we, you hear a lot of different terminologies and terms thrown out, and I'll do what I can to explain to some of these. If you think of AI or an LLM, think of that like the brain. An agent or an agentic harness is giving that brain arms and legs. It's instead of you bringing stuff and loading it into your eye, your AI, it is sending your AI out to data with a job to do and giving it the space to do that job. So it is... it's AI that works for you. It works on your computer, in your files, in your applications, which brings a certain level of risk. So there's a, there's a few steps you're gonna wanna take when you're starting to run these things just to... You don't wanna let an AI go running buck wild on your computer. Today is going to be mostly a live demo. I'm gonna run through a few different scenarios, some things I've done to use AI to improve things at my shop. And as I said last time, AI is not deterministic. Deterministic is if I do A, B happens, like flipping a switch for your light. The switch- the light goes on, the light goes off. It happens every time. AI is probabilistic. And what do I mean by probabilistic? Probabilistic is if Jimmy was to say, "Hey, John," I could say, "Hi" or, "Hey, Jimmy," or, "Hey, what's up?" That's probabilistic. There is no set response to a greeting. And you can actually do this with your AI to prove this. Go into ChatGPT and just type hi and see what it says, and then open a new one and do it again and see what it says. My guess is you're not gonna get two of the same responses. Let's do a few reality checks before we really get into this because these are very important things to understand. This tier of putting your agent to work, it is going to cost you. It is going to cost you in money and it is going to cost you in time. Why? Because in many cases you are accessing tools that are third-party tools that are not built inside of your agent, so probably these extra tools come with some level of a subscription and it is also going to cost you in time. N- you don't know it when you're doing this, but what we're doing when we're interacting with things like Claude Code and Claude Cowork is you're following many of the same processes a software engineer follows. You're building a folder on your computer and you're pointing your tool at it and you're working inside of your folder. That's how every computer application you use gets started. It starts as a project on a software engineer's laptop somewhere and this is no different. This is just a little more user-friendly version of it than my old software engineers used to have to do. So understand This isn't something where you just set, forget, and off it goes and life is easier. Especially at the start, you're going to have to put in the time, you're going to have to put in the work, you're going to have to babysit it a lot, and you're gonna have to be ready to spend a little bit of money to, to get moving. But once things are moving you'd be shocked at how how fast the efficiency gains start to stand up to s- stack up for you. Other thing to understand, this is what I use. And this might be important as well. First off, my computer is a MacBook, so I am... When you see all this, I am working on a Mac. A lot of developers work on Macs and when it comes to some of these programs like ChatGPT and Claude their desktop applications, Cowork and ChatGPT has its own desktop tool, they came out on the Mac first. I'm guessing that is because most of their developers are Macintosh. I know Claude Cowork has a Windows app now. I haven't used it but be aware that probably when new features are released, they're going to release for the Mac first and then flow to Windows. My LLM of choice is Claude, and my agent harness is Claude Cowork or Claude Code. I say agent harness 'cause this is literally a thing you're going to download onto your computer. It's a computer program. Claude Code, Claude Cowork. I believe OpenAI's is called Codex. Or there is a thing I think called the ChatGPT app. So this is a, these are apps that work on your machine. And then as always, if you have any questions or are looking for any type of support feel free, you can find me on Facebook or LinkedIn, you can send me an email. I'm always happy to chat AI with folks as we or as you start to learn these tools. But that said, that's my little spiel. We now have a little bit of time to work off on our demo. Let's start here. Like I said, the... This is my desktop. It's my MacBook Pro, one of my monitors. I- the first thing you should do when you're doing one of these tools, and real quick... Not that. This is the tool. This is Claude Cowork or Claude Code. This is the desktop app that I download to interact with Claude, and you'll see it's got three different modes. Chat, so if I do this, right? This is just what, like what it looks like on the on the website. You can chat with it. CoWork is where you start to use this to work in a place on your machine. And then Claude Code is the more advanced version of this. So today, we're primarily gonna be working in CoWork. Now, when you set up CoWork and you download this onto your machine and it is the same with any type of agent harness that you would get from OpenAI or anywhere else, you want to sequester it. This thing can, if you gave it full access to your machine, right? It's gonna tell you to... If you wanna work in a folder. If I was to do this and just give it access to my entire computer it... I could do that. I could let it go wherever. But understand, this thing is going to work in your computer the same way you do. That means it can delete files. That means it can change things. So what you want to do, and what I do anytime I set one of these up, is I set up a folder and I limit Claude to that folder. This is where you can work, and if I'm gonna, if I'm gonna have it do anything, I'm gonna make sure all of the things it needs to do its job are here, and it can go nowhere else, so it can't delete anything else on my computer. In this case I've set up a special one just for this this demo today. But let's work outside of it for just a moment, and let me show you what I mean by when I say your compu- this thing works on your computer and does stuff on your computer. I bet you this is a problem every single person on this call has. This is my downloads folder. This is every single thing, like when I'm browsing online and I have to download something, it all comes here, and there's a zillion things in it, and it's disorganized, and it's hard to find stuff, and I'm usually searching something. So let's make the first thing we ask Claude to do, and this is something any of you can do, pop in here and go "My downloads folder is really disorganized. Can you organize it for me?" And here we go. And it's gonna start to think, and now you can see it's gonna start running through here and, yep, it's gonna look at it, and then it's gonna start asking me questions about how I think it should be organized. 130 items. Shockingly, documents for my my shop. And it's gonna start asking quest- So how do I want th- it? So Claude is really good at doing this, asking you what you want. Let's go by category. If there are duplicates, put duplicates in their own. Put them in the categories, and off it goes. And it's gonna think for a little bit. And you may actually be able to see If we do this, downloads. Not yet, so it's gonna start thinking, but pretty quick here you're gonna start to see this folder change. Now again, all of you have a downloads folder on your computer. Any one of you can do something like this, and this is just to show exactly what it's doing. I'm letting it work in my computer. Here back in Claude World you can see it's running a bunch of commands and continuing to think. Thinking, thinking, thinking. And again as Jimmy said earlier if you have questions, if you're if you're running into any issues or if there's anything I can explain a little bit bre- better. Yes, Jimmy? Jimmy Lea: Okay, so question. First of all, rookie, only 130 in your downloads folder? Oh my gosh. Jon Seitzer: I, I- I have- ... organized it. It's- Oh ... my downloads folder's been organized for months. I disorganized it for this webinar. Jimmy Lea: Thank you for doing that. I feel much better now. All right to my next question. You're organizing your downloads. It's going by categories. I got that. Is it... Are you also giving it the ability to rename? It's not gonna rename it, is it? Or can it? Jon Seitzer: It could if I told it to. Oh, gosh. Okay. I've done that with, So every day I have a stack of parts invoices, and the parts guy leaves me a piece of paper. Every day I take all of those parts invoices, I scan them they go into a folder in my Google Drive, and then once a month I will send Claude in there and say, "Look at every single one of these, and title, and give them this naming convention." So it's like parts invoice, date, month, day, year. Huh. Jimmy Lea: And it'll grab the month, day, year off of the invoice number in that way? It'll, yeah, Jon Seitzer: It'll read the invoices. 'Cause, because I do it every day, the invoices are typically the date on them is all the same anyway. Yep. And yeah, it'll, It just, it does it for me. But it'll, it does what you ask. The only thing I asked it to do was organize the folder. Yeah. So all that's going to organize the folder, and it's gonna follow the, these three rules we set as it was asking me the questions. Jimmy Lea: Okay. So I really need your help on this download thing, because I have way o- way more than 130. Jon Seitzer: That's the beauty of AI. Yeah. It doesn't care how many you've got. Yeah. Jimmy Lea: All right. All right, brother. Jon Seitzer: All right. So as this is as this is working, we can potentially jump into another- One of our demos here, and I think this was a mistake I made. I'm using way more model than is necessary, so this thing's thinking really hard about how to do a really easy task. All so let's do a fun one. Who here has... Tell- in the chat, tell me if you recognize this, if you have one of these but with your shop on it. This is a nine by six drop-off envelope that I that we keep in front of the shop. A customer has to fill out all of this stuff, write what they want, sign it, throw the keys in, throw it through the throw it into the drop-off slot. And then in the morning we come in, open the envelopes, get cars checked in. Now, I hope this isn't unique to me, because I have lots of customers that see all of this stuff that we're asking them to fill out and read and go, "No." And then they just throw their keys in the box, and we get to go on a bit of a hunt every morning to match keys to cars for overnight drop-offs. So I thought to myself, I bet you there's a better way to present this information to customers, especially because I use Auto Ops, like I'm sure many folks out there do, and Auto Ops gives you QR codes that allow customers to do this do the booking and check-in from their phone. So let's see if we can't come up with a better envelope than this one. So what we're gonna do is I'm gonna go into Cowork. I am going to pick a different folder, right? So I'm gonna go Desktop, Demo, Drop Off Envelope. So now I'm telling it, "This is where I want you to work. This is where all the things I want you, Claude, to start to think about are," and I'm gonna tell it that folder. I'm gonna tell it's allowed to make changes to the things in that folder, and then I'm gonna give it I'm gonna tell it what I'm trying to do. And I've got a... if you weren't on the last one, I have a tool that allows me to just talk into my computer, and it types for me. That way you guys don't have to watch me hunt and peck and misspell things. In this folder, you'll find a picture of my customer's drop-off envelope. I want to come up with a better way to have customers give this information to me, and I want to utilize the QR code that I've also put in the folder- so they can, instead of having to fill anything out, they can simply put their keys in the folder scan the QR code with their phone, and then book their service through their phone so they're not standing outside in a cold parking lot trying to fill out an envelope in the dark. Can you read the envelope and then suggest an alternative that incorporates the important data elements of the envelope, but also has the QR code featured prominently and gives customers the choice of either using the QR code or filling out the envelope before they put their keys in it and put it into our car drop-off? So this is what I've done. I've given it exactly the tools that I want it to use. I've told it where all of the information is, and now we put it to work. So it's gonna start thinking. Meanwhile, our downloads folder has been organized. Oh, it found 195 items organized into 10 topics folders. Let's see. There we go. Downloads organized, right? Personal stuff duplicates, miscellaneous. We got stuff from vendors and, in X number of minutes everything is set and ready to go. Meanwhile... All right, so it's looking at the folder. It's looking at the QR code. It's recognized what it is. And also if we look back into the folder, so this is where I talk about some work you have to do, at the start, right? When it comes to this AI demo, I needed to make sure there was a folder for it, and everything I wanted to use was in the folder. So in this case, I had the QR code, I had the logo and then I also have my the picture of the envelope from before. We're gonna have a couple of questions. This is a nine by six envelope. I'm gonna say tighten the wording on the legal thing. Let's just go one color because I only have a black and white printer, and now it's going to think. And then at the end of this, what it should output to is a Word document that I could that would end with me being able to buy, at a much cheaper price by the way, a 9x6 envelope that I can then just stick on my printer and as needed, print out car drop-off forms. And while it thinks I'll say I know this is going to work because these are what our envelope forms look like now, right? We've got this, we've got our QR code, we've got all the important details if the customer wants to fill everything out, and a place for them to sign. And this is something we've been using for a while, and I have had all sorts of success and a lot less wild goose chases of me walking around the parking lot beeping a key trying to play match the car. Which is good, especially because, you think, "Okay, how bad is the problem or how bad is that as a problem really?" If you have a lot of fleet customers that have a lot of Ford Express transit vans, you know- They all look the same ... I have two, I have one customer that has two of the exact same kind of vans having two of the exact same kind of surface with two of the exact same key chains on the van 'cause they're corporate vans. Jimmy Lea: That's wild. Okay, so I have a question for you. And I know you're using Claude. Why do you prefer Claude over, say a ChatGPT? Jon Seitzer: So Claude came out with their the CoWork- ... program first. So what Claude first came to market with was something called Code, which is this, which- Super advanced su- it is, yeah. Really the irony here is CoWork is just Claude Code with a fancy UI to make it a little more user friendly. They do- Okay ... they both do exactly the same things, and I, honestly, once you start to get more familiar with Claude Code or CoWork and are more comfortable with it- Yeah switching over to Code is not, it's not a hard thing. Huh. Now it's totally different than Claude... There's two different types of Claude Code. There's Claude Code in the app, right? So they just put this in. It us- this used to just be chat and CoWork. Code used to live here in the terminal. Oh, God. And that was where it was very, you had to this was, you had to learn special commands to find your folder path names, do all this stuff. Yeah. Now we can use Claude Code inside of here, we can get all the benefits of it. But CoWork is just, it's a little more user friendly. You get things like this. Your pro- your, your progress tells you all the things it's doing- ... any additional context. All of the things as it's as it's kinda like working through it. Jimmy Lea: Nice. Very cool. Jon Seitzer: T-, so while we're doing that, how about we jump to get another demo started? So we're gonna go back to the desktop, back to the demo. Okay, let's do a fun one. All right. Social media post. Now I wrote that I was coming from the surface of the sun. Those of you ear- here on the East Coast agree with me, it's been very hot over the last several days. Let's say I've decided I want to run a special to try and juice some AC job sales and I'm going to promote it on social media and I'm gonna use a, an adorable picture of my dog. So what are we gonna do? We're gonna go to Death AI demo. So I'm telling Claude again, we're selecting our folder, right? Social media post. All right. Always allow. So this, so you know, so this is the image I'm going to use. Inside here I've got a folder called agent output. I'm gonna tell Claude to put anything it creates here. And then I've got this, which is my brand assets folder. Because we're working in social media, I'm, want to make sure Claude is writing in the voice I tell it to, so I'm also giving it a number of our brand assets and letting it have access to those in the event it decides it, it wants to use that. The next step this is where we talked about earlier, talking about extra spend when it comes to this stuff. So we're not just gonna have Claude generate an image, 'cause Claude can't. Claude doesn't actually generate images. ChatGPT and Gemini both have that feature. Claude is pretty much text only right now. So we're going to, we're gonna connect a couple of different tools to this. We're going to probably use Canva for it to take the picture of my dog and modify it, and then we'll use a tool called Blotato to schedule it to do the social media post. But let's start by telling Claude what we're trying to do. I want to increase some AC check sales at my auto shop, and I want to run a special promoting AC services on my Instagram. I want this to be a lighthearted and fun Instagram post, so what I'd like you to do is take the picture that I have in this folder of my dogs- And I would like you to take that picture and add a cartoon thought bubble with an ice cream cone in it. Once the picture is created, I want to post that to Instagram, scheduling it to run on Friday of this week, and the text copy in the Instagram post should read something like, "We know it's hot, and we want to encourage everyone to get their AC checked by offering a cool treat. Schedule an AC check between now and Friday, and you'll get a $20 gift card to our favorite ice cream shop, Dempsey's Ice Cream, in Newark, Delaware." Ask any questions that you need before starting, and put all of your outputs in the agent output folder in the social media post folder. All right. So this one's gonna probably take a few, but it's a pretty complex thing. I'm telling it I want it to create a picture, to post that picture to Instagram, and to use all the relevant the relevant copy, hashtags, all that stuff. So we sh- I still have to run through that. All Jimmy Lea: right. So while this is processing, did you hit the button? Are we going? Not yet. Not yet, okay. I was Jon Seitzer: gonna add something to the thing real quick. Jimmy Lea: Okay. Jon Seitzer: You add. Oops. Make sure you follow the brand voice guidelines in the Instagram post. All right, and away we go. Jimmy Lea: Okay, and the wheels are turning. Okay, so here's a question coming in from from Sheila Costa with Marin Auto out in Fairfax, California. I know Claude Work is super powerful, and I've been experimenting with it a little. Time may not be enough, but I wanna talk about how skills work in a practical way in our shops. Or do we need a part three to do that, John? We don't Jon Seitzer: need a part three to do that. I can quickly go through skills. So Claude has two different things, projects, here, and skills. And skills you can see customized here in the customize bank. So skills are they are... If you have a task you do a lot and it always follows the same step, creating a skill in Claude Cowork is a great way to give Claude the ability to go and run that skill without having to tell it every single time, "Do this." Now for those of you who were in the last chat, I talked about how I have a number of newsletters that get turned into a podcast for me every single day. Well- To do that, I created a skill called Daily Brief. The skill will load here, but basically what you wind up doing is you create a set of product project instructions for the skill and then it loads in here. And then if I was to go back into Cowork and do a new task, Please create my afternoon brief. And it'll start doing that for me too. So that is a skill. Skill is a repeatable task that you can teach to Claude, and it will give you the ability to run that task in a simple set of words. In this case, anytime I say, "Please create a daily brief, brief me," it, it picks up the context, and it starts to spit out the skills. And now what it's going to start doing is it's gonna go into my email, it's gonna look for my newsletters folder, it's gonna read all the newsletters, and then it's gonna spit out basically a script that I'll load into a different tool. Jimmy Lea: How does it know to go into your emails to get all the email? Jon Seitzer: It's in the sc- it's in the skill. So the- So you Jimmy Lea: taught it to do that from the beginning? Jon Seitzer: Yes. When you're setting up Claude, we start talking about the connectors right here in the customized menu. Yeah. So you can see these are all the things I have Claude connected to. So in this case, it's connected to my Gmail. So I've got another skill that I run in the mornings called Check In, and it will check... it'll go through my emails, it'll tell it'll try and, it'll try and rag state them for me. "Okay, here's important with action items. Here's something you might not have to worry about. Here's spam or something you don't have to worry about." I've also got a task list it reads the emails, and I can move things onto and off of my task list and things like that, just to try and, again, buy back minutes, right? I've got X number of minutes of the day. If something can summarize my email and tell me what's important and I don't have to sift through 30 of them, that's how we go. Jimmy Lea: Okay. Jon Seitzer: So when we talked about, earlier when I said that, there are a number of it costs money, right? I use because we're also a Fisher snowplow distributor- Yeah ... I use a tool called Apollo to help me keep on top of people in the area, businesses, that might be good snowplow sales customers, right? Landscapers that offer snow removal service school districts, government entities. So I'm, so Apollo lets me look for people with certain job titles in my specific area. I use Canva here. We should actually go back and see- How some of our projects are doing. So the newsletter, so here you go. All right, how- let's see what it came up with for our drop off envelope. So not exact- so it's not exactly what I would like, right? So it basically did a nine by six, but it would have me printing on both sides of the envelope. In this case, probably I didn't do a good enough job in, in prompting it. I can ask it. So here's what I'll do. I like the style, but can you modify it so that it is only on one side of the envelope, since I can't print on both sides of an envelope, and so it's in portrait instead of landscape? If you need to lose some of the legal disclaimer or data elements, then I'm okay with getting rid of some of them if it... to make everything fit. So we're gonna go back to there. All right, here we go. Oh this wants a list of things to do. Dog picture, agent output. So it this, when we talked about last thing about memory, right? It remembers that a chocolate lab is our mascot. So it's thinking. So I'm just, I'm gonna... Typically I can just say yes. Yes, use this photo. I didn't mean to say dogs. It should have only been a singular dog. I'm gonna say 5:00 PM, because I'm not actually gonna post this, because I'm not actually going to. Call the shop. Polish it to the brand voice. All right, and it's gonna get back to work. Meanwhile it's mad 'cause the newsletters are large. Still thinking. One face portrait. Yep, so we're gonna try again, and then we're going caption. And it's thinking again. Now, now, You can see we're running three pretty process-heavy things at the same time, and I could run as many of these, a- as I can do. But worth mentioning, again, I'm on a specific plan. This is the max plan. And this is costing me in usage. So let's see where we are. So this current session, I'm at about 10% of my usage. So I think- Jimmy Lea: How are you not running out of tokens? ' Jon Seitzer: Cause I spend a lot of money on tokens. Okay. So there are a few different there are a few different plans when it comes to Claude. There is the 20 d- there's a free plan, obviously. There's a $20 a month plan that has a certain amount of usage. There's, I believe, then $100 a month plan, and then there's a $200 a month plan. Because I do coding and stuff in my spare time, and I'm building other stuff, it just makes the most sense for me to spend the $200 a month. But to everybody on the call, I spend $200 a month on Claude because I get $200 worth of value, from Claude. N- there, in no circumstances should you be doing that if the, you're gonna use it once or twice a week or a few different times a month to try and do some extra stuff. I always say start at the lowest tier you can and see where you hit your limits. Yeah. And if you're hitting the limits, jump up one tier and go until you hit that limit. Jimmy Lea: Oh my gosh. I really want you to look at what I'm doing, 'cause I'm running out of tokens every time I run a cycle. It runs out within two, two and a half hours, and I have to wait- Oh, yeah ... for another two- Yeah ... two and a half hours for it to kick back in and keep going again. So- All right. So here's what we're doing. We'll have to talk. I'm gonna take you up. I'm gonna take you up on that half-hour conversation. Jon Seitzer: It is here, and I am here for you. But, hey, look at this. Ooh, I actually like this one more than I like the one that I came up with the first time. So here we are, a 9x6 envelope. Nice. People can scan. They can give that. And then yeah. So again, what did I... What do I get out of this? One, I can buy envelopes and print them. Yeah. The envelopes that I print are, they're my envelopes with my logo and my QR code, and I'm not beholden to a printing company that is gonna charge me, several hundred dollars to custom print- Custom print me an envelope when the only thing they're doing is putting my shop's name on it, and everything else is ex- the exact same every other shop gets. So this is something that now has made my shop unique. Jimmy Lea: John, that's awesome. And I do agree. I like this envelope. This looks very good. It's easily usable, something that everybody can jump in and start using. Still thinking on that. Is that the skills running, or which one did you jump into? Jon Seitzer: Oh, so this is... So this, now what it's doing so now it's going into, So this is multiple tasks, right? So now I'm guessing it's going into Canva. It's looking at my brand. Save to my a- so here we go, it just finished my picture. Okay, so this is the o- AI will also check your work, so when you're doing a f- if you're doing something fun like a cool webinar for all of your new shop friends, if you, and you say something contradictory like you're gonna run a special from today to Friday, but you're not gonna post about it till Friday- AI's gonna call you out about it. Are you Jimmy Lea: sure Jon Seitzer: you wanna run it till Friday? Yeah, you know what? We'll run it till next Friday. AI doesn't need to know. But- Yeah ... we can jump into the thing. So here's our envelope. AI demo. We're doing the social media post, agent output. What do we got? Oh, that's really good. I like that. Oh, that's really good. I don't know if it's gonna fit on Instagram, but, we'll see. And now off it will run through Friday. Caption now. Saving it to the agent output folder. So now y- again we're chaining a number. You can see here, right? We're running through a number of different a number of different tasks. So it's now done that. It's written the Instagram. Here's the c- promo caption. "It's heating up in Newark, and somebody at the shop already has summer on the brain. We know nobody loves thinking about car care when the weather is this nice, so we figured we'd make it worth your while with a cool treat. Bring your vehicle in for an AC check now between Friday, May 29th. We'll send you home with a $20 gift card to one of our favorite shops in town, Dempsey's Ice Cream," which does not exist. A quick check. So there we go, and now we've got... now I've got this, and now it's going to go into my other tool, Blotato, which manages my social media for me and does all of my, it does all of my scheduling, right? So for me it's important obviously having a social presence is important. I don't have a lot of time so what I do every month is I build a calendar of, what I want posted to Facebook, posted to Instagram. I then have the AI go out and generate based on the calendar, and then it schedules the posts for me via this tool called Blotato. Oh, still doing this. Ooh, boy. Yeah, the afternoon brief is still running It's a big Jimmy Lea: day. Big news day. Jon Seitzer: It is. This is another... So this is also, this is a danger of AI and especially working in Claude, which tends to push a lot of updates. So this never used to take this long. When it came to my daily brief, it would just run, summarize, create the script, and Claude pushed an update a couple of days ago, and suddenly suddenly every AC run is a fight. But yep, so here's my here's my folder, right? So it's my daily brief. It's written to all of the things, starting with politics, economy markets, and basketball stuff 'cause I'm a big NBA guy. But yeah, now it's in here. Now it's in there in a folder. And what I would do is I would drag and drop it into a different tool that I use, and it would spit out a podcast wr- that for me to listen to on the drive home. But that's- Oh, I love it ... but that's the skill thing, right? The steps are always the same. Go to my email, go to a specific folder in my email, read every newsletter in the folder, summarize it following this script or f- this script architecture, spit out the, create a text file because the tool only takes text files, and it's the same thing every time. So that's the perfect type of thing f- that running a s- or doing a skill would help you with 'cause it's the same thing every time. Create a skill, and now you don't have to give it all those steps every single time. You can just say, "Create my brief," and off it goes. So there's- Oh, that's awesome. Yeah. That's awesome. Yeah. Let's see. Blotato's upload. I can't push the image. Oh, no. Okay, so here's where... So every now and then we're gonna run into an issue. In this case, Blotato would probably prefer I use their tool to generate a picture of a dog thinking about an ice cream cone. It doesn't want me to push my own image. We'll see if we'll see if it can figure out a way around it. Yep, it's gonna use a different one than I use, potentially, Cloudinary. But yeah, we'll continue to let that think, and what's our next demo? W- while we do this, Jimmy, are there any other questions that anyone has I can answer for them? No, Jimmy Lea: man, a- and I agr- I appreciate you saying that. If there are questions, type them into the comments box. Let's ask John. Sheila, you had some great questions there about skills and projects and what's the difference between the two and how can we utilize them in the shop. I, this is a s- fabulous way of using AI technology. And the, what so I just recently went to an AI- conference, an AI trade show, and it was huge. It was amazing. And in this they were saying, "Oh just let AI do it. Just let AI do it." No. Nay. Oh. There's a caution here. There has to be human interaction. There has to be human oversight. 'Cause if you just let AI do it, there are errors. It's gonna make mistakes. And like any good employee, you've gotta monitor and make sure that they're giving you and doing the right things for your business, for your outcomes, for whatever it is that you're trying to develop or do. Th- those prompts that you're giving it, it's g- that's where the magic happens. Jon Seitzer: It is, and let me build on that by saying, so when at my last job, I worked with a gentleman named Han Lee. He's absolutely brilliant. And he was a manager of our software engineering team, and this is a couple years ago as these AI agents are really starting to move into the mainstream. And they started with coding agents, so agents designed to help software engineers write code. I sat in with Han as he was giving a presentation to his software engineering team about how to use some of these agents. And this agent, which was, I believe, GitHub's agent, the whole point of it is to help your software engineers write code, 'cause they have to write a lot of code. But and he was using it to... When you're a software engineer, you write code, and then you have to test your code. So you, not only do you write your code, you write tests for how to test your code. They're called unit tests. So he was showing the the software engineers how to use the AI to write your unit tests, 'cause that's one of the most kind of mind-numbing parts of being a software engineer. You're not writing cool code. You're writing unit tests for the code you already wrote. And so he was showing them how to do that, and, y- just like this, right? It's chewing through all these unit tests and spitting them out. And one of the software engineers on the team went, "Wow, it's like having a, my own intern." And with immediately Jimmy shoots back, "Yes, and it's about as dumb as an intern." Meaning and that's like- You gotta check the work ... check the work. Yes. The AI it's eager like an intern too. It's eager and helpful, and it wants to do the best job it can. But oh boy, does sometimes it... i- in the last webinar we did, right? Yeah. It wanted to know what my Mustang's mileage was, and it just didn't have it, so it decided 224,000 miles seemed like a good number. Yeah. And that's what it told us. "Oh, this M- Mustang has 224,000 miles on it." So yeah just give it to AI? N- no. But give it to AI and double-check it and babysit it and give it the right instructions and stuff like that? Man, it's great. It's the envelope itself, right? The envelope- That's a really cool envelope and, it's a dumb thing to be excited about, but, hey, I have a unique envelope. And I didn't have to think about everything it would take you to do to build that envelope. Oh, it- Who wants to learn how to use Photoshop? Jimmy Lea: It would've taken me hours, John. I'm gonna be quite honest. Three to four hours for me to create that envelope. The layout, make sure it's lined up, make sure it works, make sure it has all the information in all the spots. I... Two to three hours. Probably four because I really don't know Photoshop at all. Yeah. And yeah, you were able to create that really quickly. Jon Seitzer: Let's do another one here. Okay, so- Jimmy Lea: It looks like this might be our last one that we're gonna be able to do today. Oh, Jon Seitzer: whoa, you're right. It's actually... So yeah, let's... 'Cause this one would take a bunch of time as well. So yeah, this is still gonna run. I have no idea what's, what it's going to do. But I guess the next piece I would let everybody know is when you're using something like this, when you're using connectors, hitting this will allow you to browse, and you can look for the various tools you use to see if they have connectors into Claude Code that would allow you to connect your t- your tool the same way I've connected Gmail, my calendar Asana, and some of my other services. Here you can see, right? I can pull a P&L out of QuickBooks. I can... The the, What was it? The presentation you saw at the start of this that I've done for two things now, that was created in Canva talking to Claude. Nice. Nice ... feel free to, to explore this. I would also recommend, A lot of my learning in Cowork has been off of a YouTube channel by a gentleman named Elliot Prince. It's not one-to-one 'cause he's a software consultant and he's not a shop owner, but for a good explainer of things like skills and projects and the difference between chat and code in Cowork and how to get everything set up that's really good. It's free. He's not trying to sell you anything. If you want extra stuff on YouTube, there's a lot there. Yeah. Just try to avoid the hype masters on YouTube and find people that are grounded, and you can get a lot of value out of this. Jimmy Lea: Nice. Nice. Yeah I totally agree. I've been on and watched a few of Elliot Prince's things, and he's pretty dang good. Sheila agrees as well. So here's Sheila's final question here we got coming in. "We use Claude, Gemini, and ChatGPT-" Inter-calculated? Depending on the task we're doing. We audit our invoices and calls weekly and determine alignment with our SOPs. Gemini works for us 'cause it is the browser and it can read what's happening in the background of Shopware, like the logs and when the tech received the RO, when he sent it back to the service advisors, et cetera. Is Claude Chrome extension able to do the same thing? Do you know? Jon Seitzer: I don't know. I use... So I use Claude Chrome to help me navigate all data. So when I'm in all data, I'll log into the vehicle, like I'll type in the VIN, and then I'll say something like, "What is the labor time for plugs and coils for this thing?" And Claude code will click around. I haven't used it in that way, so I don't know. I would say the best way to do it is to experiment. The difference between Claude and Gemini that I've found is that Claude tends to create a plan, ask for your approval of the plan, and then it... Claude tries to click around the site for you, versus Gemini, which tends to just read, summarize, and send information back to you. Jimmy Lea: Nice. So you appreciate the plan. "Yes, let's execute the plan," where Gemini just says, "Okay, here's your answer." And you're like yeah, close, but not exactly what I was looking for." Yeah. Jon Seitzer: So like when it... the all data example, right? Yeah. All data, to get to, to get from just having entered a VIN to plugs and coils, all, like the mouse has to move and things have to be clicked. I haven't seen Gemini move your mouse for you yet. I think it's coming, but Claude and Chrome will actually click to different sites to try and get you to the spot. Jimmy Lea: Nice. Nice. Very cool. Very cool. John, wonderful information. So valuable. Thank you so much. I'll be reaching out. We're gonna have a conversation. I'll be here. Bye. But I, I hope Jon Seitzer: that was valuable for everybody. I really do. Jimmy Lea: Yeah. Yeah, John, this is awesome. And you've got a gorgeous pet, fur baby there. Oh, she's- Is she in the office? Yes. Oh, nice. Oh, no, I don't have enough cord. No. Yeah, can't see her today. Maybe next time. John, thank you so much, man. That's just so valuable. AI is definitely not a fad. It's definitely not going away. It's something that we need to adopt and adapt to and learn how to use it. It's a powerful tool if it's used right. Yes. Just as a hammer is a powerful tool, a 10 millimeter socket is a powerful tool if it's used right. Definitely. So dude, that's, this is awesome. Thank you very much, John. Really appreciate it Jon Seitzer: Thank you. Really appreciate it. And again, all of you, if you need me LinkedIn or Facebook, I'm happy to help anybody that's run into any issues or wants to bounce an idea around. Jimmy Lea: I love it. I love it. Hey, and my name is Jimmy Lea. I'm with the Institute for Automotive Business Excellence. This is valuable information you're getting today. This is the tip of the iceberg. There's so much more that we're able to do. Please go check out our website at wearetheinstitute.com. Click into the Auto Academy. This is an online learning m- system, helps you to discover more, become better. There's tons of different videos that we have available on there. Our YouTube channel has a lot of information on there as well. Check it out. Check it out, our events page as well, all the next up-and-coming webinars we're doing, as well as all of the trade shows and conferences that we're gonna be attending. It's all there on our events page. Look forward to seeing you at the next trade show. Look forward to seeing you at the next webinar. And together we're gonna lock arms so nobody gets left behind. Thank you very much, everybody. Talk to you soon.

20 May 2026 - 56 min
episode 205 - The Diagnostic Fee Debate: Ask Me Anything with Cecil Bullard and Lucas Underwood artwork

205 - The Diagnostic Fee Debate: Ask Me Anything with Cecil Bullard and Lucas Underwood

205 - The Diagnostic Fee Debate: Ask Me Anything with Cecil Bullard and Lucas Underwood May 13, 2026 - 00:56:50 Show Summary: Lucas Underwood and Cecil Bullard explain why diagnostic testing should never be treated as free work. They discuss how weak pay systems and poor communication have lowered the value of technicians across the industry. The conversation compares automotive testing to the medical field and explains why customers should expect to pay for professional diagnostics. They also cover technician growth customer education leadership and the need for stronger professionalism in repair shops. The episode ends with a call for the industry to raise standards and focus on creating long term value.   Host(s): Lucas Underwood, Shop Owner of [https://lnautorepair.com/]L&N Performance Auto Repair [https://lnautorepair.com/]and Changing the Industry Podcast [https://changingtheindustrypodcast.com/] Cecil Bullard, Founder of The Institute [https://www.wearetheinstitute.com/]   Show Highlights: [01:00:25] – Customers understand testing better than diagnostics. [01:03:09] – Proper testing requires skill experience and expensive equipment. [01:04:04] – Shops lose profit when diagnostic time is given away. [01:06:47] – Flat rate pay discourages advanced diagnostic skill development. [01:12:10] – Lucas explains his Level One testing process. [01:14:45] – Cecil compares automotive testing to medical diagnostics. [01:19:22] – Skipping testing leads to poor repairs and wasted money. [01:31:06] – Lucas discusses leadership responsibility and coaching influence. [01:39:40] – Accurate testing saves money and prevents unnecessary repairs. [01:50:16] – The industry must value professionalism and technician expertise.   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/cUCa2tz_G1c [https://youtu.be/cUCa2tz_G1c]   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  * Want to learn more? Click Here [https://www.wearetheinstitute.com/] * Want a complimentary business health report? Click Here [https://www.wearetheinstitute.com/business-assessment%7C] * See The Institute's events list: Click Here [https://www.wearetheinstitute.com/upcoming-events] * Want access to our online classes? Click Here [https://www.gearforshops.com/pages/course-library] ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com [marketing@wearetheinstitute.com].   Episode Transcript:   [01:00:00:01 - 01:00:11:22] Lucas Underwood  Good afternoon, everybody. My name's Lucas Underwood from Changing the Industry podcast. I'm also a shop owner. And this afternoon, I'm here with the man, the myth, the legend, Mr. Cecil Bullard. Cecil, how you doing, buddy? [01:00:11:22 - 01:00:14:10] Cecil Bullard  Howdy, howdy. I'm great, Lucas. As always. [01:00:14:10 - 01:00:24:14] Lucas Underwood  Yes, sir. Yes, sir. So we've got some deep dive topics for the day. I'm excited about it because this is a hot button series of topics. So let's dig right into it. [01:00:25:15 - 01:00:53:00] Lucas Underwood  Now, now, Cecil, we're talking diagnostics. We're talking testing. We're talking charging for it. But you know something? Very, very early on when I first started kind of working on improving my business, I went to ASTA for the first time and I got into some training classes. It was drilled into my head from the word go. You don't sell diagnostics. You sell testing and testing results in a diagnosis. How do you feel about that, Cecil? [01:00:56:10 - 01:00:56:24] Cecil Bullard  Who cares? [01:00:58:05 - 01:01:03:19] Cecil Bullard  I don't care. Here's the thing. I mean, I sold diagnostics for, I don't know, 25 years. [01:01:03:19 - 01:01:04:04] Lucas Underwood  Yeah. [01:01:04:04 - 01:01:52:00] Cecil Bullard  We're going to diagnose your car. Now, testing actually, we keep having these people that come into our industry and they come up with these great new words. And so let's not call it green anymore. Let's call it, I don't know, pumpkin pie or whatever. Who knows? Who cares? Right. And so if you're selling pumpkin posse. Yeah. If you're, if you're selling, if you're, if you're good at selling diagnostics, who cares? Right. This is the one instance where testing probably makes more sense only because the consumer probably understands testing a lot better than they understand diagnostics. Okay. And, and so, you know, I'm, I'm, if I'm going to go to the doctor, they're going to run a series of tests. [01:01:53:03 - 01:02:38:10] Cecil Bullard  If those series of tests don't give them the information they need, then they're going to run another series of tests or more tests. And, and so I think that at least because of the medical industry and the, and the work they've done, the testing probably makes more sense at this particular point. And if we made that shift in the industry, would it make it easier for your customers, your clients to understand what you're, what you're doing and why there's a cost to it? And, and the answer is probably yes. So, you know, as far as calling, you know, technicians, mechanics or mechanics technicians or specialists or whatever, I don't care what you call me, you know, just call, make sure you call me. As [01:02:38:10 - 01:02:40:16] Lucas Underwood  long as you pay the bill when you're done, I don't care. [01:02:40:16 - 01:02:41:09] Cecil Bullard  Yeah. [01:02:41:09 - 01:02:42:09] Lucas Underwood  Yeah. [01:02:43:17 - 01:02:44:16] Lucas Underwood  Go ahead. Go ahead. [01:02:44:16 - 01:03:09:03] Cecil Bullard  I just, we keep coming up with new words, thinking we're going to change the game when we're not really changing the game. The problem is that we don't value ourselves as an industry or our time as technicians or as mechanics and we never have, and we still don't value that time. And that creates a lot of the unrest in our industry and a lot of the financial issues in our industry. [01:03:09:03 - 01:03:45:15] Lucas Underwood  I agree a thousand percent Cecil. I completely agree with you. But here, here's where I'm at on the testing thing. Okay. And a couple of thoughts behind this process. When, when I bring a client into my shop, I start with a level one testing routine. Now look, if you've never tested a car, if you've never done the diagnostic process yourself, it is very easy to say, well, hey, I'm just going to wrap that into the price. It's not that big of a deal. No, it's a talent. There is skill associated. There is knowledge associated. There's tooling associated with it. If you've never been the one to do it, you just don't understand how complex the process can be. Okay. [01:03:45:15 - 01:03:52:14] Cecil Bullard  I'm talking to a shop yesterday. They have $189 posted labor rate. [01:03:52:14 - 01:03:53:07] Lucas Underwood  Yeah. [01:03:53:07 - 01:03:55:29] Cecil Bullard  Okay. They have an effective labor rate of 123. [01:03:57:26 - 01:04:00:08] Cecil Bullard  Now they're wonder why there's no money in the bank. [01:04:00:08 - 01:04:01:00] Lucas Underwood  Yeah. [01:04:01:00 - 01:04:02:13] Cecil Bullard  And you know, we're talking about. [01:04:02:13 - 01:04:04:06] Lucas Underwood  Everybody they're higher than everybody in town. [01:04:04:06 - 01:05:44:14] Cecil Bullard  How many comebacks do you have? Oh, we don't have any, we have hardly any comebacks at all. Okay. And by the way, that's the answer. 99.9% of the time, we don't have any comebacks. Okay. Wonderful. Wonderful. It's not that how many, how many DVI's do you give away without charging that to your customer? Yeah, we do DVI's for free for our clients. Okay. All right. How much, how many times does your master technician, your A-Tech have an hour to quote unquote run tests or diagnose a car and take two days? Oh man, that happens a lot. Okay. Now we've, we've, we've circled in on one of the main reasons that the effective labor rate. And by the way, it's like $27,000 a month for this shop because their effective labor is so far off of their posted rate. And they, their A-Tech is again and again and again. If it's so easy to do this quote unquote diagnosis, anybody can do it in half an hour, anybody can do it in an hour. I cannot, you know, you got these ego tacks out there and I'm going to get blasted, but they're out there and they're like, Oh, well anybody should be able to do that in an hour. You know, we should be able to diagnose this code in an hour that code. And yet hundreds, if not thousands of guys are spending three, four, five, seven, 10 hours on a car, trying to figure out what's really going on. And, and how does that not come together? My ego is being in the way of being profitable and making money. Right? Yeah. Then I'm going to come up to the shop owner who's cheating me. [01:05:44:14 - 01:06:47:25] Lucas Underwood  Well, so a couple of things here, right? First of all, let's just, let's put the elephant in the middle of the room and beat it. Okay. Because the reality of the situation is this, the pay systems and the way that we have set up the testing routines have not rewarded technicians. Okay. Now I get that there are thousands of ways to obtain reward and to find meaning and purpose in life, right? We go back to Michael Smith's leadership in the last. It's not all about money. It shouldn't be right. Right. But I'm going to tell you right now, if you don't pay somebody for it, they're not going to develop the skill. Right? I mean, let's just be real about it. You go and you work in the dealership and you get paid 0.25. You get paid 0.5 to go and do said testing that you know is going to take you an hour and a half or two hours to do it. Is it fair? One, no, it's not. B, there's no system. They're, they see them giving it away. Okay. When, when someone sees you giving their work away, it says to them, I don't value this. Well, we've, I don't see value in it. [01:06:47:25 - 01:07:11:22] Cecil Bullard  Yeah. That's, that's one of the other issues we've devalued ourselves over and over and over again. And we continue to do that. You've got an owner that used to be a tech and for him or her, it, oh, it was easy for me. You know, every car that came in, I could figure it out in an hour. And, and then, but they're not the one figuring it out. Yeah. I have a, I have some companies that are, um, uh, [01:07:12:29 - 01:09:26:29] Cecil Bullard  like restoration. So that what they're doing, there isn't quote unquote a book time for right there. They're sometimes making components and, and taking something off of a vehicle was never intended for this vehicle and, and re retooling it and et cetera. And we're timing materials. So when your timing materials, um, what's better to have the worst tech doing the job or to have the best tech doing the job. And if you do do that, you're going to have to do it. And if you do have the best tech doing the job, is that, is that hurting the shop, but helping the customer? Is that hurting the tech, but helping the client? Right. So yeah, our, our, um, the way we pay and obviously, you know, I'm for a pretty decent base pay. Right. So you're going to be here. You got to know that you're going to have, you know, food at home and a shelter over your head. And once in a while it would be nice if I could take my wife out to dinner or whatever. Right. And you got to know that. And then I think you need to have performance enhancement stuff. And if you are excelling in certain areas in certain ways that I can earn more money, I can make a bigger paycheck. And if you can blend those two, which is what we do, then I think you have the best of both worlds. But, but it doesn't, it will never matter if we don't, if we continue to devalue what we do. We do this techs all the time because, you know, we'll go, "Oh, I know exactly what that is." And then you have to have a lot of money. And I think that's, that's what I think that is. But wait a minute, why do you know exactly what that is? Well, you're some experience. So I have, I don't know, 252 scars on my hands. The reason I know this is because when I'm sitting in church and I'm bored, I'm OCD. So I'm counting the scars. And I've done it a hundred times, right? A thousand times. And where did those 252 scars come from? Working on cars. They came from reaching up under a dash and, and getting cut. And they came from, you know, a bunch of cars. And I think that's, that's, that's the reason why I'm here. sized them as they mostly were. Is because, uh, [01:09:27:29 - 01:09:49:02] Cecil Bullard  I work overtime and I had a lot of hard work around them. And then you do the whole thing, pushed into that and I were like, Oh my God, this is terrifying. and, uh, you know, and there at the first time, you're someone else's medical Vancouver department. weren't born with it, right? You, you,u paid for it in blood, sweat and tears. You paid for it in extra hours that you didn't get paid for, you paid for it in real blood. Right? [01:09:50:15 - 01:10:17:11] Cecil Bullard  And yet we constantly, we disregard that as technicians. I would say it's epidemic in our industry. And then you have your ATEX who don't understand why the C-TECH can't do it as fast or as good as they can. Right? Well, I don't understand. This is so easy. Well, go back to when you were learning. It wasn't easy when you were learning it. Right? And until we... Absolutely. [01:10:18:16 - 01:10:30:04] Cecil Bullard  Until we find a way to kind of value ourselves and our time, that's what we have. Could you imagine a lawyer, like lawyer giving you 30 minutes without charging you? [01:10:30:04 - 01:10:33:09] Lucas Underwood  Let me just tell you something. They don't ever. [01:10:33:09 - 01:10:35:01] Cecil Bullard  No, they don't. [01:10:35:01 - 01:11:14:29] Lucas Underwood  The one I've been working with here recently is fire. I mean, so good. We've got two right now that I work with on pretty much a daily basis. And there's a lot of things that they will just talk to us and say, "All right." And then they roll that into what they're doing. And I understand that, right? Because it's too much to every telephone conversation. Every second. Yeah. But I'm going to tell you right now, I've got a bad one and two good ones. And the two good ones, buddy, I don't even care. I don't flinch when that bill comes in because it's like, a great example is one of them, they're in another state and he calls me the other day and he said, "These people that we're going to battle with." [01:11:16:01 - 01:11:32:03] Lucas Underwood  Two years ago, they were in a civil case and they accidentally released a document and I found that document and it is your everything you need to get what you want from them. And it's right there. Yeah. And he went through thousands of documents. [01:11:32:03 - 01:11:36:16] Cecil Bullard  A few hundred thousand dollars. I'm like, "Yeah, you're worth your money, man. [01:11:36:16 - 01:11:52:07] Lucas Underwood  Whatever you need to do. Send me the bill." Yeah. And so here's the big thing for me and I've dealt with a lot of shop owners and I talked to a lot of techs, a lot of shop owners on a daily basis. I talked to probably six or seven already today. [01:11:53:07 - 01:12:09:14] Lucas Underwood  First of all, the main issue that I see is the people who have never done it don't value it because they don't understand it. And so there's a lot of these shop owners who went and they just bought a shop and they just say, "Well, a car goes to tech, tech tells me what to do, car fixed." [01:12:10:14 - 01:12:50:23] Lucas Underwood  And all they see is the time associated with it. They don't understand the talent. They don't understand the skill. They don't understand the logistics of what has to happen to properly repair that automobile or to find out what's wrong with it. And so what I started doing in my shop season, and you tell me if this is right or wrong, I start with a level one testing routine. It has one hour on it and they get the basic data. It's a code read, it's fuel trends, it's data acquisition, it's confirm the client's concern, determine where it's at on the car, get me some base data. And if you can figure out in that hour, which about 90% of all cases they're able to, then great. It's an hour. We roll on with it. Typically they're out in half an hour to 45 minutes. [01:12:50:23 - 01:12:59:07] Cecil Bullard  And maybe this is just coming in my head at the moment. Maybe what we're really doing in that first hour is creating a testing plan. [01:12:59:07 - 01:13:00:19] Lucas Underwood  Well, that's what I was getting ready to say. [01:13:00:19 - 01:13:01:22] Cecil Bullard  Or a diagnostic plan. [01:13:01:22 - 01:13:05:20] Lucas Underwood  That's exactly what happens if it is something advanced. [01:13:06:21 - 01:13:30:12] Lucas Underwood  And so step two, that technician comes to me and they say, Lucas, here's the data I have collected. It tells me that I am looking at an issue that is in X circuit because it says circuit high and I know it's not the component and I know it's not the computer because I've done these two tests. I have to do X to find this. [01:13:30:12 - 01:13:37:01] Cecil Bullard  I have to spend this amount of time or I have to run these three tests in order to determine what's really going on. [01:13:37:01 - 01:14:45:03] Lucas Underwood  You came back to me with data and you said, here's the test I need to do. Okay. Now, if I go to the doctor, I just want to point this out. If I go to the doctor and I've fallen, I've hit my arm and it's all bruised up and it's all to pieces and I go to that doctor, first of all, I'm going to pay for the visit fee. Okay. So I go into the doctor and they're going to say, Hey, it's a hundred and whatever dollars. The doctor comes in, takes a look and says, Hey, Lucas, I believe you've broken your arm. Now for me to determine the best course of action to correct your concern, I have to do additional testing. That's going to be an X-ray, that's going to be an MRI, that's going to be whatever it is. Now at that point, we'll know what course of action we need to take. Do we have to do surgery? Can we just set it? What do we do next? Right? First of all, they're not giving me an estimate for what's wrong. They're giving me probabilities. They're giving me some idea of where we're headed. But if I went into that doctor's office and they said, man, it looks like your arm hurts. I'm going to have to do some testing. It's going to be about a thousand bucks. Okay. What test are you going to do? Well, I don't know yet. I'm going to figure that out when I get there. I'll let you know. [01:14:45:03 - 01:15:10:13] Cecil Bullard  Right. But that's not, that's not kind of how it works. I mean, I was at the doctor yesterday, normal visit. I'm diabetic. So I go twice a year and he says, how are you doing? I paid my $95 coded up, whatever. So he's getting paid, I don't know, $250 for between me and the insurance company. Maybe it's 150 for 10 minutes of his time at most. [01:15:12:09 - 01:16:16:01] Cecil Bullard  And he says, oh, well, you're looking great, but I want to send you to this guy because you've got this problem and they need to, we need to figure out what's going on so we can have a course of action. Right. So we know what we're going to do or if we're not going to do anything. And so I paid for him. Now I'm going to go see a quote unquote specialist that will, I'll pay for that visit and then I'll pay for the testing on top of that. And then I'll have a plan to move forward. That's that's you know, we could discuss why are our medical systems out of hand and other things. The process that they do to determine the plan to solve the problem is a good process. They've been doing it for years and years and years. It works. It gets the right answer most of the time, 97% of the time or whatever. Right. And and and we move forward. And yet in our industry, we're like, well, I can't charge anybody for that. [01:16:16:01 - 01:16:23:25] Lucas Underwood  Well, I just need to point out to you Cecil. Yeah. That's when you know you over the hill when they start saying, well, we're not going to do anything about this. [01:16:23:25 - 01:16:24:16] Cecil Bullard  Yeah. [01:16:25:27 - 01:16:26:03] Lucas Underwood  Yeah. [01:16:27:21 - 01:16:30:28] Cecil Bullard  Until you can't walk anymore, then we'll think if we need to do something, [01:16:30:28 - 01:16:32:18] Lucas Underwood  we'll get you a wheelchair then see. [01:16:32:18 - 01:16:39:16] Cecil Bullard  Yeah. Yeah. That'll be great. You can get one of those little things. Yeah. Yeah. Thank you. [01:16:39:16 - 01:16:49:19] Lucas Underwood  My dear friend Rick white, when he hurt his back had a scooter that they read him around on at Apex and I've never let that go. I just rubbed it in all the time. [01:16:49:19 - 01:17:00:26] Cecil Bullard  You know, I had a, I had a foot surgery three years ago before Apex and I was, I was on a scooter for Apex and yeah, not, not fun. I'm really not fun. [01:17:00:26 - 01:17:18:13] Lucas Underwood  I bet not. So look, when we talk about this testing thing, I just want to point something out about this because I think it's so important when we look at that medical field, they see value in the test that they're going to do because they know what test needs to be done. [01:17:19:18 - 01:17:52:23] Lucas Underwood  They're in charge of charging you for that test, right? They decide what test has to be done. They put it on there. It gets billed to you and then the thing happens, right? Yeah. I think what happens in our industry is there are so many people who do not understand the service advisor and the owner or the service manager do not understand the skill, the talent, the tools, the ability, the time it takes to properly diagnose an automobile. Well, and so it's, it's different for them to stand up there and say, this is $400, but that's why I do the testing routine. [01:17:52:23 - 01:19:21:25] Cecil Bullard  That's part of the problem with our industry. So if we look at, at a doctor, a doctor cannot afford to just go set your arm, right? Yeah. The bone is sticking out. You know, I know I've, I've got the scars to prove it, blah, blah, blah. Bone is sticking out. The doctor says we need to do some testing to find out what's going on because we need a course of action. All right. Now, if they had just set my arm at the time because the bone was sticking out, then I wouldn't have use of my wrist. Okay. Because it was, the bone had shifted when it broke. All right. Now, and they needed to find that out. And, and in the medical field, they cannot afford to set that bone and then later have me sue them or come after them because I know I now, I now no longer have use of my wrist in the automotive field. We don't seem to have a problem with, well, that guy wasn't right. Okay. And we, we even, we even, we propagate this idea that there's too many guys out there that aren't right. Well, yeah, because we're not giving them the tools or the necessity to run the testing to be right or the time when you, when you have a free, Oh, by the way, I have an hour. Man, you've spent three hours on that car. [01:19:22:25 - 01:21:03:07] Cecil Bullard  How come, how come? What is it? You know, well, let me pull something out of my behind so that I'll get you off my back. And then, well, wait a minute. That guy was wrong. Now the shop is paying for it or the customer is paying for it or whatever, because we didn't do the testing in the front because we didn't value it because we didn't understand the liability that we have on the other side of that. It's a, it's a problem that is bigger than we think. And it's been going on for a very, very long time. Don't get me wrong. There's some guys out there working on cars that shouldn't be working on cars, but there's a lot of guys, when you put someone in a position for their family to starve or them to cheat, what do you think they're going to do? Let their family starve. Yeah, they have to. Right. And so when you're not charging for your text time and, and I don't know if, if Mike is here or not, but if he is Mike, don't tell me you're not charging for diagnostics. If you raised your labor rate, you are charging for your diagnostics. You're just charging for it in a different way. So now we got that out of the way. All right. But if you're not, if you're not charging for your diagnostic and, and you're asking your tech to do that for free, or you're paying for that yourself somewhere, there's a cost. There's either cost to the customer in poor diagnostics or incorrect answers. There's a cost to the, to the, the owner of the company, the company. And if there's a cost to the company, there's a cost to the employees of the company. And that's one of these things why we have techs constantly complaining about how poorly they're treated. You know, is it fair? [01:21:04:12 - 01:21:29:24] Cecil Bullard  You call me, Hey Cecil, I've got this Toyota Camry that, you know, 2014 and it's got this weird blah, blah, blah. What's it going to cost? Right? Oh, well, you know, we're going to need to. We need to do some testing. And so we start at $300 and that'll be applied toward the testing. And if we can solve the problem with that, we'll certainly solve the problem. You come in, it's not even a damn Toyota. [01:21:30:24 - 01:21:46:02] Cecil Bullard  Right. Yeah. And you show up with a, I don't know, you show up with a Nissan and you don't even know what you're driving and you want me to tell you on the phone what that price is going to be to fix something that I have no idea what it is or, or anything. [01:21:46:02 - 01:21:55:27] Lucas Underwood  But our industry set that expectation, right? Our industry has created that expectation in consumers and, and, and we, you know, Dutch is always bust about us being a commodity. [01:21:55:27 - 01:22:24:05] Cecil Bullard  Yeah. We keep propagating that. And you know, some of it is because we have egos and our egos won't let us get out of the way of ourselves. And, and, and some of it is because we don't, we don't get it, right? We really don't understand the, the financial aspects of the business or the, the, uh, uh, liability we have or any of the, you know, a few other things. And, and, and some of it's just probably plain ignorance. [01:22:24:05 - 01:22:43:28] Lucas Underwood  Okay. Spicy, spicy perspective coming in here. I think some of it is because we're too stupid to have our own thoughts. So we go and we listen to some big wig coach who is in a metropolitan area who has thousands and thousands of clients that they can pull from. And, and we don't realize that what we're doing is basically market manipulation. [01:22:45:00 - 01:23:01:28] Lucas Underwood  And, and we don't care that it devalues our industry as a whole. We don't care that it damages our industry because all we care about is making enough money to sell the shop or do whatever we need to do. We don't care who it upsets. We don't care who it hurts because all we care about is our shop. All we care about is the money. [01:23:01:28 - 01:26:37:16] Cecil Bullard  I think, um, when you look at, at, at human beings in general, um, certainly there is the trap of I'm only doing what's best for me. Yeah. Okay. And, uh, right now, you know, someone hangs this sweet carrot of if you get 10 locations, you're going to get 16 X and, uh, and they stay. And by the way, you're going to get a really nice VC company that's going to buy your company for top dollar, and then they're going to take care of all your customers and employees, just like you would. Uh, you know what? I will, I was born at night, but not last night. Okay. So, so yeah, we're. And by the way, should we be doing what's best for us? Right. Yeah. So on the, on the chart of, of, um, uh, what's important, uh, my chart is, is Cecil's relationship with Cecil. Okay. Then it's Cecil's relationship with God. Then it's Cecil's relationship with his family. And then it's Cecil's relationship with his business. And then it's Cecil's relationship with everybody else. Right. And the, and the reason why that has become that over the years, because it wasn't always that was because if I'm not happy with me, I won't be happy with anything else or anybody else. I have to like me. I have to understand me. I have to know that with all the, all the warts and all the other stuff, you know, the temper, the whatever, that I'm a good guy and I'm trying to be a good guy and I'm trying to, you know, et cetera. And so I like me and, and then I need to have a relationship with God, whatever that is, so whatever your. You know, you may say there's no God, Cecil. There's a, there's a being or some science or something. Okay. Whatever that is, you have to have a relationship with it. You have to understand how you fit in the world. Right. And then I got to make my wife, uh, mostly happy. Can't make her all happy. Can't make my kids happy, but I got to do my best for my family. And then it's my business because there's an awful lot of responsibility. So with that nature that we have, are we going to look out for ourselves sometimes more than we probably should? Yeah. You know, I think it's, it's inherent. What, what gets me in our industry is that I almost dread going online anymore because 90% of what I'm hearing is negative. Yeah. And, and I, in this industry, this industry has been good to me. All right. Uh, I was, uh, 19 dropped out of college, came home, started as a tech for my dad. I was making 50,000 the first year I was working as a tech and I got news for you. I didn't know squat. Right. And, and then I became a service advisor and a manager and, and eventually I owned shops and sold those. And then I started a coaching company and now we're, you know, we're expanding and doing other things. And, and the industry has got me here. And got me through, I don't 45 year, 45 tough years with four kids. All right. And, and where else can that happen? You know, someone that drops out of college that really knows very little high, high intelligence, high ego, right? But other than that, not much going for me. Uh, and, and I end up here, this is a great industry. There's more opportunity in our industry right now than there's ever been. And you know what, if your owner is treating you like crap, [01:26:38:18 - 01:26:40:11] Cecil Bullard  you know, how many shops need a tech, [01:26:41:11 - 01:26:52:14] Cecil Bullard  right? And so don't sit in the, excuse me, do not sit in the pile of shit and then complain how stinky it is. Right. Get out, [01:26:53:14 - 01:27:43:19] Cecil Bullard  shower yourself off, go get another job somewhere. Because I know right now I could tell 50 shops, if they could find an ATEC, they'd be paying that ATEC as much, almost as much money as they wanted. And probably a lot more than the average in the industry and, and really giving them a great place to work with all the support they need, all the tools, all the equipment, all the education, all the training, et cetera. And then I understand what you were saying about like the coach. Sometimes we have these companies that are telling you what you want to hear. Yeah. Not what you need to hear. Okay. Absolutely. And, and, and I think, you know, it's probably a good thing that I'm not God, frankly, cause I don't have the patience or the understanding and I might do some, [01:27:44:24 - 01:28:15:15] Cecil Bullard  I might do some really crazy bad things because there are people in our industry that, you know, if I had the, if it was up to me, they wouldn't be in our industry, but that competition, that, that knowing that that's out there drives me harder every day, right? Yeah. It makes me want the Institute to do better, to do more, to, to have more impact, to, to help more people be successful. Right. [01:28:15:15 - 01:28:34:29] Lucas Underwood  Here's the thing is that those people, okay, let's think about this for a minute. They know, right? Those people are intelligent enough to know what they're doing. They're intelligent enough to know what the outcome is. Um, Mike Allen says he wants a list of people that sees with Smike. Mike's at the very top of it. [01:28:34:29 - 01:28:37:05] Cecil Bullard  No, he's not. He's like fifth on the list. [01:28:38:17 - 01:28:38:23] Lucas Underwood  Okay. [01:28:39:28 - 01:28:43:19] Lucas Underwood  Um, uh, now I need to, oh man, this is going down a dark tunnel here. [01:28:45:20 - 01:28:56:15] Lucas Underwood  But I, you know, look, I'm just going to say like, I think that, that those people know, and they know that the impact they're making on the industry. We pick on Mike. Mike really does. [01:28:56:15 - 01:29:01:00] Cecil Bullard  Mike's a easy target. Thanks. And thank you for being that target, Mike. [01:29:01:00 - 01:29:09:08] Lucas Underwood  Yeah, absolutely. And he's, he is working. I see his efforts behind the scenes all day long of like teaching people and trying to lift them up and, [01:29:09:08 - 01:29:27:23] Cecil Bullard  and, but you, you have a big responsibility when you have the ear of the industry. Okay. And if you're going to be an industry influencer, there's a responsibility, not just to provoke, but to educate and to help. [01:29:28:28 - 01:29:39:26] Cecil Bullard  Okay. And if you're, if you're provoking for the sake of, um, uh, hits and likes and crap like that, that's problematic. [01:29:39:26 - 01:29:42:05] Lucas Underwood  That is not why Mike's doing that. [01:29:42:05 - 01:29:44:15] Cecil Bullard  No, I know what Mike's up to. [01:29:44:15 - 01:30:00:18] Lucas Underwood  I, yeah, what Mike is up to is he's just trying to meet his brother's level of this success. I mean, his brother was this super successful pilot and he did all these amazing things and Mike has always felt a little bit less than because of that. And so Mike is working really hard to get to the next level. [01:30:00:18 - 01:30:39:16] Cecil Bullard  Do you know where we, do you know what we have to compare ourselves to? If you do this, right? You compare yourself to yourself. That's it. Amen. I, if I, I will never be the man my dad was. Okay. Um, he was stronger than I am physically, uh, till the day he died. He, I will never be him. Okay. And there's good and bad about that. And there's a lot of people out there that I admire. Okay. But I'm not going to be them. I hold myself to my own standard, right? It's my standard for me. I don't, yeah. [01:30:39:16 - 01:31:06:00] Lucas Underwood  I've got to ask this question. Okay. This has nothing to do with diagnostic testing and it's something that I think I have personally struggled with a little bit, um, and something that I think about often when, when we give advice, right, it's rooted in our belief system. It's rooted in, in who we are, but I take giving advice to other people very seriously, and I take lifting them up and getting them to a better place very seriously, [01:31:07:03 - 01:32:07:05] Lucas Underwood  when we look at, at people giving some of this advice and, and I, I think they genuinely believe that they're doing what's right. I think they genuinely believe they're, they're doing the right thing for other people. See, so how do you judge that advice? How do you know that you're leading them in a right direction? Because like these, what I keep seeing is I see these people, they're business owners and they're, they're lost, right? They don't know where to go. They don't know what to do. They don't know. And, and many of them pull from many different facets and they get information from lots of different people. But sometimes someone will attach to a very specific person. And what that person says is the grace and they believe everything they say. My fear is that my belief system may move their morals or their values in a different direction that doesn't align with who they are. And I take that very seriously. But I don't, how do you avoid that as a, as a coach? How do you make sure that you're not infringing on their belief system? [01:32:07:05 - 01:33:31:20] Cecil Bullard  Do you, do you remember what I, I, I started out with in, and that is, um, Cecil has to like Cecil and then God and family and et cetera. So, um, you know, I judge the success of what we do with clients by their success, right? And I always said, you know, we, we can influence, um, we can't, I can't make your decisions for you. I can ask you what I can, I can tell you what I would do. Um, I can tell you also as a coach 20 years ago, I was a lot harsher and a lot more imagine that right. Uh, and a lot more, um, you got to do this and you got to do that. There were, there were a lot more definitive statements. All shops should, all people should blah, blah, blah. Uh, those, a lot of those things have disappeared from my, from my vernacular, I look at the, at what the Institute for all the clients that we have served and all the clients we serve and the success that we have. And I judge my success by that success. I also judge my success by being able to look at myself in the mirror in the, in the morning and, and, and like what I see, even though it's, it's a little flabbier, a little older and a little whiter. [01:33:31:20 - 01:33:33:05] Lucas Underwood  Well, saggy, the old nine yards. [01:33:33:05 - 01:33:34:09] Cecil Bullard  Yeah. All that. [01:33:34:09 - 01:34:34:01] Lucas Underwood  There's a, there's a great question that just came up and I'm going to take a stab at this, he's going to pop it up on the screen for us because I'm wondering about the best ways to present a higher cost for Diag to customers. I always have a hard time, especially if we end up having to send it elsewhere because we don't have a special tool or software. We go as far as we can. Then we have to stop sometimes medical field. It's not a big deal to pay a bill to one doctor after they tell you they need to send you to a specialist, but in our industry, it feels like we've just failed. Now, listen, I'm going to tell you that for me, I'm judging that situation very early on. Okay. I'm not taking on things that are out of my wheelhouse and I have learned my lesson. And listen, Cecil, this is something you've seen in my shop. If the advisor is not astute, automatically, if they don't have that technical knowledge, if the manager doesn't have that technical knowledge, it can be very difficult to weed those out. But you have to have a technical team that says, "Hey, I believe this is something that we shouldn't get into. We need to get this out." There's things that require some treatment. [01:34:34:01 - 01:35:55:10] Cecil Bullard  But I don't, I would, in a way, I disagree with you because we need to define what our jobs are in the business, right? If I'm the owner and the manager of my company, what's my job? To provide my people with the things they need to be successful, goals, org charts, job descriptions, tools, education, et cetera. Am I the one making the decision as the owner that we're going to take that job or we're not going to take that job? No, I'm not qualified. I haven't worked on cars in 16 years. Okay. There's no grease under my fingernails. There's, you know, the scars I have are well healed and there's no fresh stuff going on. Is it the service advisor's job to make that decision? No, no, no, it's probably not. It's the tech's job. This is beyond our capabilities. And by the way, can the tech do that if we haven't charged some time up front to determine that? And maybe we need to develop a list of specialists in our area that we can say, "We need to send you to a specialist on this type of a car." And not feel bad about doing that because that's what's best for the company. That's what's best for the client and the client's vehicle. It's not to bring it in and try to mess it around and, you know. For sure. [01:35:55:10 - 01:36:32:07] Lucas Underwood  But, but I mean, here's, here's the thing. A 1993 Mercedes SL shows up. It's KJET. It's one of the worst injection systems ever built. Somebody's going to yell at me for saying that. It's terrible. It's awful. You look at that car and you say, "Hey, I don't work on cars that are older than 20 years old." "Hey, I don't work on Mercedes that's this type of fuel system." I don't, right? Like there's, if we know, right? If I know there's no way I'm going to work on that car, I know better. I have learned my lesson. I have paid the price for it. I'm not going to take that car. [01:36:32:07 - 01:36:41:12] Cecil Bullard  As techs in our industry, we judge ourselves by being the guy that can fix everything and have all the answers. [01:36:41:12 - 01:36:45:10] Lucas Underwood  I'm over that Cecil. I am so over that. [01:36:45:10 - 01:36:45:25] Cecil Bullard  Me too. [01:36:46:25 - 01:37:06:01] Cecil Bullard  Someday, hopefully we mature enough to understand that that's, you know, that there are things in our life that we're never going to do, right? I'm never going to fix every car. I'm not going to fix every client. They won't, you know, I, I've got, believe it or not, there are people that won't listen to me, right? [01:37:07:24 - 01:37:49:25] Cecil Bullard  Sometimes I'm like, "God, you've hired us to help you. We're telling you what to do." And yet you won't go do it, right? Right. And again, I can only have influence. So I think, yeah, I think we need to decide kind of upfront what our roles are and what we're willing to do and what we're not willing to do. And the better we make that, the clearer we are, then the better we can focus our business on being more successful as opposed to, you know, all the crap. And I got to tell you, it's, it's really hard when you have no cars in your shop to say no to somebody that's bringing in a Mercedes with a K-Jet system or whatever. Right? [01:37:49:25 - 01:37:56:05] Lucas Underwood  No, it's not. So I would rather be broke. I would rather not pay my bills this month. Okay. I'm just telling you. [01:37:56:05 - 01:38:23:07] Cecil Bullard  It's hard for most people to, when they think, again, if you think, if you judge yourself on your, your prowess of fixing cars, and now all of a sudden you're making a shift into ownership or something, and you have to judge yourself now on the success of the people that work for you, not, and your clients, not on your own ability to, to fix cars. And that's not an easy shift to make. [01:38:23:07 - 01:38:37:07] Lucas Underwood  I agree. And that, that was one of the hardest things for me to do because the things that I saw as easy, the things that I saw as, Hey, just go do this. I recognize other people don't have the same abilities that I had. Now, I don't have the ability anymore. [01:38:38:15 - 01:39:34:28] Lucas Underwood  But they were easy for me. And so I would judge the situation based on my knowledge, right? The curse of knowledge. I would talk to clients on the front counter based on what I had experienced and got myself into trouble many times. Now I'm going to tell you, be prepared. Here's where I am with this. What I do is I bring them in for a level one testing routine. And I just explained in 90% of all cases, I'm able to determine the cause or causes of your concern. Other 10% of cases, I may have to refer you to a specialist or do additional testing. I will never, ever, ever change my estimate from this price. You will stay in control of the entire process at all times. But I may come back to you. And if you are one of those 10% cases and let you know, we have to do additional testing or you need to go to a specialist or you comfortable with that. And so I, you know, I made a video last night talking about this until you've been to a shop that throws parts at your car and can't actually fix it. And you just spent $3,500 trying to change all these parts and you still have the same exact problem you went in with. [01:39:35:28 - 01:39:40:05] Lucas Underwood  You listen, they have no issue paying for proper testing at that point in time. [01:39:40:05 - 01:40:33:04] Cecil Bullard  And those are my clients. The least expensive way to fix your car is to have someone that knows and understands that vehicle, inspect it, do the proper testing, create a diagnostic, a diagnostic process, plan for it and pay for that. That's the least expensive way to fix your car. And this, the stuff we do in our industry, like taking it over to, you know, one of the parts houses and they're going to test it for free and then sell you an oxygen sensor and you're going to bring it in and I'm going to put it on your car. Can't, can't make that work. Right. I, and we, we have to stop as an industry doing those kinds of things. And we have to, and, and those of us that are in the industry that are being affected by that, we should be fighting that tooth and nail. Yeah. Right. [01:40:33:04 - 01:40:54:18] Lucas Underwood  Yeah, absolutely. Absolutely. Got an incoming question and I vote. I know which one it is. And it's Mike Allen saying, are you super clear if you have to pump this to a specialist that you're still charging? Yes. Now listen, I've had issues with advisors not being super clear, but I am super clear and I am very, very transparent about that. [01:40:54:18 - 01:41:24:15] Cecil Bullard  And what I want to, what I really want to teach my advisors is this. We need to be as clear as, as I mean, crystal clear about what the costs are going to be and what's going to happen with our clients. And by the way, if I want a client to argue with me about the cost, do I want that to happen before I work on the car or after my tech is spent two hours on the car and created a plan, right? And, and what happens a lot is the advisors, we have a lot of. [01:41:25:23 - 01:42:43:22] Cecil Bullard  Unqualified salespeople in our industry. We're not really salespeople. Okay. They're not really advisors and, and they're, they might be the nicest people. They might be all kinds of things, but they're not really advisors and they have a fear, I don't want to have this conversation because it's going to be a potential to have that person be mad at me or have that person take their car away or whatever, and they may walk away and not like me. Right. And, and, and so we're vague. We're vague about our answers. We're vague about what we're going to do. We're vague. How many shops have you walked into that have a very good script about Diag and what they do, why they do it, what the costs are, why those costs are the costs and what, what is likely to happen and what could happen. You know, how many shops have that script that your service advisors know and understand. So that customer is right off the bat understanding what's really going to happen and why it needs to happen that way. I would tell you for me, like sales and building value, it's so easy, but it is not easy for the average service advisor because they've been taught how to do that and they don't have the experience to do that. Right. And so we, yeah, we, we need to, yeah, we got to clean that up. [01:42:43:22 - 01:44:28:21] Lucas Underwood  You know, look, we, we pick on Mike, but, but let's be honest about why Mike does a lot of what Mike does in this instance. And it's because Mike needs a competitive advantage. He is, he is in a very, very heavily saturated area. There's a lot of shops around him. There's a lot of people around him too, but he uses this as a tool to try and drive more people in the door. He uses it to set himself apart from the rest of the crowd. I use something completely different, right? Like for me, I'm using the fact that we can test anything. I'm using the fact that we have abilities nobody else has. And we have those abilities because we pay our guys to learn this. We pay our guys to go to training. We have this set up so they can develop these skills and we have the equipment and that costs money, right? I understand like in their eyes, a lot of times it's like, Hey, they don't really know that they're still paying for it. They don't understand that it's in the labor rate, but to me, like, I feel like that devalues the industry as a whole. I feel like it makes it look like this should be a free service. You know, just two weeks ago, we had a car in the shop that, that came through and he called somebody else and they, they were going to do the job we were going to do for $700 for $240. And they're telling them about how we're ripping them off. They've never heard of a coolant service. They've never heard of this. They've never heard of that. And then we look at our industry as a whole and it's like, Hey, this guy's over here talking smack on an industry standard just to talk smack about it. I think if we could align ourselves, if we could get our industry moving in a more similar direction, where we're, we're making it better about our actions in our shops, our single shops at a time, we have a chance at getting this industry to where it's seen as a professional industry. [01:44:28:21 - 01:44:34:01] Cecil Bullard  So let me ask you, let me ask you a question. I got, I got a couple of points, but let me ask you this question. [01:44:35:22 - 01:44:49:09] Cecil Bullard  We're going to go somewhere and have a steak. Yeah. All right. And they've got a, uh, I don't know. It's $120 steak. Yeah. Um, but they also have a $30 steak and they're the same steak. [01:44:49:09 - 01:44:50:04] Lucas Underwood  Yeah. [01:44:50:04 - 01:45:00:22] Cecil Bullard  Okay. Does that, did, would that even play? I mean, would, would anybody at all look at the $30 steak and think that's the $120 steak? [01:45:01:23 - 01:45:15:16] Cecil Bullard  No. Right. So if somebody comes into my shop and we're going to charge them $700 for whatever, right? Uh, Mike, that's my imaginary shop. Okay. Um, I don't own one. I'm thinking of buying one just because you put, you goaded me, [01:45:15:16 - 01:45:18:00] Lucas Underwood  but no, I missed this. [01:45:18:00 - 01:45:55:09] Cecil Bullard  But, but, um, uh, if I'm 700 and they call and say, this guy is, is saying he doesn't even know, never heard of this and he's going to charge $240 for the same thing, you know, my answer would be it's not the same thing. It can't be the same thing. Because if he, if he knew what he was doing, if he understood his business, if he understood the time it was going to take to properly diagnose and fix this car correctly, he'd be charging you $700 also. And then I want to, I want to play on something you said. Mike uses this for competitive advantage because he's in a saturated place. [01:45:56:13 - 01:47:28:26] Cecil Bullard  Boo hoo. I mean, every, you're, you're somewhat unique, right? In your out in the country and you're kind of further away. There's a two thirds of the shops are in saturated places. And there are a lot of guys that aren't using, well, we don't charge for diagnostic as their competitive advantage. And they're doing just fine. I know they're my clients, right? Um, I, I always talk about this stupid book. I'm going to write that Cecil, you don't understand is the title, you know, I love it. You, you don't, you don't understand Cecil. Um, my shop had 41 shops within a mile of it and two dealerships and we were $58 higher than the next shop and we were the busiest shop. We had the happiest clients, the most satisfied. Uh, we, I believe we were the most profitable, although I didn't see all the other shops, P and L's. I did see some of them because I was, you know, that's when I started my coaching career. But, but I, I, I don't need to do that for a competitive advantage. I need to take great care of my clients. I need to help them understand why it costs, what it costs and how they're paying when somebody says, you know, I can get it done for 240 and you're going to charge me 700, you must be ripping me off. I have to say, wait a minute. Time out. No, that's not true. Because if you and I go to the restaurant and I ordered the $120 steak and you order the $30 steak, we're not getting the same steak. Okay. [01:47:30:04 - 01:48:17:23] Cecil Bullard  And in, in, intelligently, internally, we understand that emotionally. We don't necessarily get that. We have to help our clients take their understanding and create emotional intelligence around that, uh, with what we, we charge and why we charge it. And I would say that most shop owners understand that we, or at least believe that if the client comes to them, the client is going to get a better repair, a better job, we care more, et cetera. And we should definitely feel that way about it, but a good salesperson helps the client take their emotion, their mental intelligent understanding and create emotional understanding around that. [01:48:17:23 - 01:49:58:04] Lucas Underwood  Yeah, absolutely. And I think that if we, if we are not doing that, and so it's your job as a coach to do that for us, it's our job as a business owner to do that for, for your people, for our people and our people's job to do that for the client coming through the door. And I genuinely see that if we don't start taking moves to move our industry in that direction, as far as educating the consumer about the value in what we do, that we are professionals, right? And see that, that, that's the thing that trips me up on this. Because I can look at Mike's shop and say, that's my friend's shop. I love him. I care about him. I want the best for him. And if that's what's working best for him, so be it. He can do whatever he wants. The thing that, that hems me up on that is that I know that it has a detrimental impact to our industry in the longterm, right? There's no ifs, ands, or buts about it. We've seen what it does. We see what the code scan from AutoZone and Advanced Auto Parts does to our industry. And so we know that not charging for that testing makes it look more like a commodity. Right. And I'll never forget. One of these coaches we're talking about was on a podcast a while back and he said, man, he said, I'm a retailer. I'm a retailer. I don't care about the industry. I don't care about any of that. I'm a retailer. I'm here to make money. And I'm like, but, but we're not retail. We're professionals. This is our job. We are here to advise, consult, provide information to the consumer, help them make an informed decision about one of their most expensive purchases that they'll ever make in their lifetime. Right. And it's not just about money to us. [01:49:58:04 - 01:50:16:05] Cecil Bullard  And if that customer takes care of their vehicle, that vehicle will service them and service them well for a very, very long time. Now, now here's the, here's the other thing. And I think this is like super important. And we have to stop complaining. [01:50:17:11 - 01:50:48:22] Cecil Bullard  We have to stop talking. I'm not, not talking about the bad stuff. And, and, and I can't, whose actions can I, can I change? Luke, Lucas, can I make you do something? No, I can't make you do anything. I can only change my own actions. So we, if we want consumers to understand the value of what we do, we have to start talking like what we do has value, not like what we do is crap. [01:50:49:22 - 01:51:04:17] Cecil Bullard  And, and there'll always be some bad guys out there. We can't, we can't help that. We can't make that go away. You know, um, like I said, it's a good thing. I don't have that power because I would do some, [01:51:04:17 - 01:51:06:07] Lucas Underwood  there would be some people, uh, [01:51:07:07 - 01:51:08:03] Lucas Underwood  burning crisp. [01:51:08:03 - 01:52:23:22] Cecil Bullard  Yeah. But, but, but I can be as positive as I can be and work towards a better industry and, and try to bring people together to, to work towards that better industry, I can influence again, what we say on our podcasts and, and how we say it or what we say in our, um, our groups and how we say it, I can influence that hopefully, but I can't change it all. I can only change as much as I can change it and work as hard as I can work. Um, I, we, we, we want to be seen as professionals as an industry. And yet many of us don't act as professionals and we need to, we need to turn that corner. Yeah. Okay. And whatever that takes, I mean, if it's a, if it's a badge that we wear a star on our forehead, a tattoo, whatever, whatever that's going to take, I'm for it. As long as we change the conversation and we start moving towards, you know, becoming in being the professionals that we know we need to be and that we know we should be, that's what we, that's what I'm for. [01:52:23:22 - 01:53:29:05] Lucas Underwood  You're exactly right. And I think that it takes experience. I think it takes commitment to trying to do the right thing, focused on doing the right thing. And, and sometimes it has to be, you know, I, and I'm with you, right? Like I've, I've really shifted over the past couple of years from, Hey, I'm primarily focused on our industry and making our industry better, right? But I still have to be able to pay my bills. I still have to be able to take care of myself and my family and I have to be there for them and, and I've seen the impacts through other people's actions of what misaligned, uh, desired outcomes or misaligned intentions can do. And so I recognize that I have to align my, my family, myself, they have to come first, my business has to come first, but still yet, every decision I make in my business, I'm trying my very best to say, how can I improve this industry? How can I make this industry a better place? Because one day I have this vision that I'll maybe my son owns this shop and I want his life as a shop owner to be easier than mine, because I'm not going to lie. This has been a slog. [01:53:30:05 - 01:53:30:11] Lucas Underwood  Okay. [01:53:30:11 - 01:55:23:25] Cecil Bullard  I'm just saying you like it. I mean, that's the other part. You know, we, we, we go through our lives and, and you know, I, I'm not, I always say I'm not supposed to be in this industry. I wasn't, this wasn't the plan. And, and here I am, you know, 44, 45 years later and here, you know, here I am. And I've been in this industry and, and, uh, it's been good to me. It hasn't been easy. But you know what, the hard part of it has, what's kept it interesting and, and make me strive and all of that. I don't, you know, I don't, I don't think there's a perfect anything and, and, you know, thank you, who, whoever's in charge of the universe for doing that to us so that we, so that we know how to strive and that we continue to strive. Um, I've had a great life. I've enjoyed my life. Uh, I'm going to hopefully enjoy it for another 20, 25 years and, and, uh, continue to try and influence, um, the industry to be as professional as possible. And, uh, I just, I really want to go to the changing the industry blog and all the, the, you know, the group and, and I want to see some people say, man, you know, my owner Lee is just a great guy. And man, this is a great shop that I work in. And there's such great opportunity to be a tech in this industry today. You could almost write your own ticket. And I'd love to see some owners go in there and say, you know what, man, it, it's a struggle, there's some bad weeks and occasionally there's a bad month, but overall, man, what a great industry we work in, because if we can't, if we can't talk about it that way and be that way with it, the public is never going to understand why they pay us a nickel. Yeah. A hundred percent, a hundred percent. If we get, we got to get more positive focused in this industry. [01:55:24:25 - 01:55:45:28] Cecil Bullard  And, uh, so look for the, uh, automotive industry initiative coming out soon, which, uh, is the group of, uh, people we put together and we're going to be putting more people into that pile to drive the industry towards more professionalism and towards, um, worse, uh, to be more solidified and more positive. [01:55:46:29 - 01:55:47:03] Cecil Bullard  Absolutely. [01:55:47:03 - 01:56:17:17] Lucas Underwood  It's going to be great Cecil. Thank you for being here today. Everybody. Thank you for, for being part of the conversation. Our dear friend, David over at inbound is going to get all kinds of diagnostic questions because the email says support at call inbound. So, you know, David, listen, you just answered the best you can. We'll riff off of it next time. Okay. So, uh, you know, I'm really excited about the things that are happening and the moves that we're making and even, even little old Mike Allen over here, his efforts in the industry have been huge as well. [01:56:17:17 - 01:56:21:13] Cecil Bullard  I'm going to have to give him a big old wet kiss on the cheek next time I see him. [01:56:21:13 - 01:56:49:14] Lucas Underwood  So that's it. He would enjoy that very much. So, uh, but I am so thankful to be here with you today, Cecil, and I can't wait for the next one. We got another one coming up next month and, uh, it's just been a blast. And if you guys have any additional questions, make sure that you email over to the Institute and we'll try and answer those next time on our next AMA with Cecil Buller. Cecil, thank you, sir. Thank you, Lucas. Have a good day, buddy. Love you, brother. Love you, man.

14 May 2026 - 56 min
episode 204 - Part 1: Using AI in Your Shop to Increase Performance artwork

204 - Part 1: Using AI in Your Shop to Increase Performance

204 - Part 1: Using AI in Your Shop to Increase Performance May 6th, 2026 - 00:59:50 Show Summary: Artificial intelligence is reshaping how auto repair shops operate in practical ways. Jonathan Seitzer shares how AI can improve communication analyze data and save time on daily tasks. He explains a simple framework of rent it feed it and put it to work to help shop owners get started. AI is positioned as a tool that multiplies performance not replaces people. Real demos show how shops can create better customer messaging and gain insights from their data in minutes. The conversation also highlights the need to review AI outputs and use it responsibly. It closes with a look ahead at AI agents and how owners can begin experimenting today.   Host(s): Jimmy Lea, VP of Business Development [https://www.wearetheinstitute.com/about-us]   Guest(s): Jonathan Seitzer, Owner, Dempsey’s Service Center [http://dempseysservicecenter.com]   Show Highlights: [00:00:00] – Introduction to AI use in daily auto shop operations. [00:02:35] – Background in finance and technology applied to auto repair business. [00:06:20] – Three ways to use AI rent it feed it put to work. [00:08:17] – AI acts as multiplier not replacement for shop owners. [00:10:21] – Simple AI tools improve customer communication and service descriptions. [00:15:02] – Always check AI outputs since mistakes and errors can happen. [00:19:00] – AI helps create clear customer talk tracks from technician notes. [00:30:16] – AI quickly analyzes parts data saving hours of manual work. [00:37:31] – AI summarizes content into audio saving time each day. [00:45:21] – Use AI internally while maintaining trust with customers.   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. 👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/8_dcnz_4csE [https://youtu.be/8_dcnz_4csE]   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  * Want to learn more? Click Here [https://www.wearetheinstitute.com/] * Want a complimentary business health report? Click Here [https://www.wearetheinstitute.com/business-assessment%7C] * See The Institute's events list: Click Here [https://www.wearetheinstitute.com/upcoming-events] * Want access to our online classes? Click Here [https://www.gearforshops.com/pages/course-library] ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com [marketing@wearetheinstitute.com].   Episode Transcript: Jimmy Lea: Hey, good afternoon, friends. Depending on where, when you are joining us, it could be morning, afternoon, or evening. Good to see you, my friend. I'm glad you're here. Glad we are gonna have this conversation today as we talk about the future of our industry, and how does artificial intelligence really fit into our day-to-day operations? What does that look like? This is gonna be an interactive conversation. What do I mean by that? No, you're not gonna come on camera. No, we're not gonna unmute your microphone. Go to the comments section. We're live streaming on Facebook and YouTube and StreamYard. Go to that comments section and type in there your questions, comments, or concerns. In fact, go into that comments section and type in where you're joining us from, the name of your shop. Love to give you a shout-out as we talk about this industry that we love that's doing so well for us. And yeah, drop in your name and where you're joining us from because it's super exciting to be here with you, friends. It's super exciting. First and foremost is the current coach for our guest, Mr. Wayne Marshall, CEO of GEAR Group Holding, and he is joining us from Iowa. Good to have you with us, Wayne. Thank you for being here, brother. Also Steve from B&C Auto Center in San Jose, California. We've got Peggy from High Street Auto Repair, Jefferson City, Missouri. Jeff from Miller's Automotive, Orange Park, Florida. Jeff Byrne from German Tech Motorworks, Louisville, Kentucky. And let's see, Fernando, Rohrehard Park Transmission, Northern California. Evans from Evans & Lukes in Columbus, Ohio. Evan, good to see you again, brother. How you doing? Oh, that's awesome. And Justin Pepper, Quality Auto Repair here in Oklahoma City, Oklahoma. Nice. Glad you guys are here. Thank you for those who are vocal and know where that comments button is. This is gonna be so much fun. We're gonna have such a great conversation here. Joining me today is John from... Oh, one more shout-out. Todd from Atlanta Speedworks in Gainesville, Georgia. John joins us today from, where are you joining us from? Jonathan Seitzer: Newark, Delaware, Dempsey Service Center. Jimmy Lea: Dempsey Service Center. And John is a very recent purchaser, a recent joining the ranks of ownership, of shop ownership, and he joins us from computer industry, the computer world. What's your background, John? What qualifies you as a computer surgeon? Jonathan Seitzer: Prior to my move to the automotive industry, I was the head of product at Moody's Analytics for some of their suite of compliance products for, for their banking and government services. Prior to that I was at JPMorgan Chase for 10 years in various technology roles. I am not a developer. I live in the product and business analysis world. So for those of you shop owners out there, you should think of me a little bit like a service advisor in my last life. My job was to stand between my customers and my my software developers, help understand what the customer needed it, translated it into something the software developers could build, and then get that information back to the customer when we had a solution for 'em. Jimmy Lea: I love it. I love it, Jon. This is awesome. Love that you come from the world of computers, and I guess technically we could call you a financial whiz. Jonathan Seitzer: You c- you can call me all sorts of things. Jimmy Lea: Yeah. I heard JP Morgan Chase and a lot of financial institutions you were talking about. Congrats on that, that career, that lifespan that you had there in, in that industry. And oh, my gosh, look, we've got a few more shout-outs. Brandon from Pete's in Topeka, Kansas. Todd Compton's Automotive in Charlotte, North Carolina, and Lance Lupe joining us from... Lance, I, I can never remember where you're at. I think he's in New York. It might be New Jersey. I think it's New Jersey. Anyways, Lance is here with us as well. Jon so excited with your background. We had a great conversation at MARS in last October. Looking forward to another MARS conference, Marketing for Automotive Repair Shops, coming this October. Our conversation last October, we talked about, you talked about, hey, you know what? I do a lot with AI. I do a lot with the large language learning, and I really would love to share this with others in our industry and h- how they can use it, and what would make a difference for them. So let's help everybody else catch up to the conversation you and I had, Jonathan. How is it that you're using AI in your day-to-day? What are you doing? Jonathan Seitzer: So there's all sorts of different things. I'll actually, I have some demos we'll be showing in just a minute, but how about we head into the the presentation, and I'll walk you through the whole thing. Jimmy Lea: Yeah. The floor is yours, brother. Hey, so everybody, as you're listening to Jon, you've got questions, go ahead and type them into the box because as Jon is doing this demo on the different AI systems, it takes a minute to process, so that's a good opportunity for us to ask questions. So keep those questions coming in that comments box All right. Jonathan Seitzer: Awesome. Thank you, Jimmy. So hello everybody. Welcome. As said, my name is John Seitzler. I am the owner of Dempsey Service Center. We have been in business for 40 years here in Newark, Delaware. But as I said earlier prior to that I was... I've spent the last 15 years on Wall Street in various product and technology roles. And what qualifies me to talk to you all a little bit about AI is actually during my last stop, I was lucky enough in to release two different AI products to the market. One back in 2019 when we weren't really talking about AI all that much, and then again right before I left in 2025 we released our first agentic AI product into the market. I've got a fair bit of experience with AI knowing what it does, more importantly, what it doesn't do. And I just wanna get that information to you guys here. The fun part about this for me is I'm not here to sell you guys anything. I'm just here to help, and at the end of the thing I'll get you all my email. So in the event that you have questions, if you need help, if you're thinking about it, you want somebody to bounce an idea off, reach out. I am I am available. I look at AI in three different ways. There are three things you can do with AI as a shop owner. That's you can rent it, you can feed it, and you can put it to work. Now, in this demo, what we're going to do is I'm gonna... We're gonna talk about the first two. Put it to work is a big conversation. There's a lot of different things you can do, and there's a lot of different hurdles and jumps that you have to make to do it in a way where you can trust it. So we're gonna split that one out into another webinar in a couple weeks, so I hope to see a lot of you guys back there as we're doing that. But I think this diagram right here kinda, kinda illustrates, the amount of effort that goes into each one of this. Rent it, small and easy. Feed it, not as big as put it to work, but bigger than rent it. You're still gonna have to do some work. You're going to have to do some learning. And then when it's time to put it to work you have to decide really is the time commitment I'm going to spend making this happen worth what I'm going to get out of it? And some of you are going to say no, and I want you guys to know that's okay. I know everybody hears everything about AI. It's all over the news. It's everywhere. That do- and there's a fear of we might get left behind. AI is helpful AI is incredibly helpful. It can make you much more efficient. It can help you unearth things. But I think the big thing I want to get out of this to you is to help understand what the role of the AI in your shop actually could be. AI is not going to replace I don't think very many people here in the automotive industry. The, all of the whys for that is a larger conversation than I've got here. But w- how you guys should think of AI is not as, "Oh, this is, maybe I can replace one of my vendors at some point. Maybe I can replace, w- my service advisor," something like that. No. AI, or at least the way I use AI, is as a multiplier. AID, AI is PEDs for the shop owner that understands their operations and their data. It will make you... It will take a good shop owner and make them great. Y- you cannot at any point go I'm not doing, I'm not doing well. Let's chuck some AI at it, and everything's going to be fixed." It just doesn't work that way. So all that said, let's talk about the easiest thing you can do today with AI, and that's rent it. Now, what do I mean by rent it? Rent it is you all as shop owners pay for a number of services. And right now, because AI is a fantabulous buzzword, and every one of these services that you pay for, especially if they are a publicly traded company, is they're going in front of their investors, and their investors are saying, "What are you doing with AI?" And all of these companies are trying to figure out where AI fits within the products and services that they sell. So if you use QuickBooks, there's an AI assistant. If you used any of the Google Workspace or Microsoft Office products, there is an AI in there. Your shop management system, more than likely at this point, has an AI in there in some ways, and some of the uses are big, right? AI and Microsoft Excel as somebody who literally made his career at the start in Microsoft Excel coding stuff because, my old bosses who were around before Excel didn't wanna learn it AI can make, AI can do wild things in Microsoft Excel. Do I use a lot of them? No, 'cause I don't really need them. You know what I use when I rent AI the most? It's this that you see on my screen. So my shop management system has a a little improve button that I can use when my techs send me- what on the right, which is a very sparsely worded, all caps missing some verbs sometimes write-up about whatever it is that they're working on. Now, in the past, what we might have done was just copied and pasted that, and that's what the customer got to see, right? J- on their invoice. Now, what we can do is I can hit an Improve button, and it's going to run through that. It's going to try to determine the context, it's going to spit out just a nice paragraph. Is that the world's biggest time saver? No. Does it lead to a better experience for my customers? Yes. So I wind up using I wind up using that in the rented category, honest to God, more than anything else we're going to talk about today because I have, a fair number of techs, and none of my technicians like using anything other than short paragraphs in all caps locks. That's rented. Why is rented important? So when we talk about what my past life, right? My past life was f- my whole job was figuring out, "How do I put this into my tools?" So when you're renting your AI, one, you're not, it's not costing you really anything else because you're already, you're getting it as part of the service. Two, the AI that you are using has been thoroughly vetted, in many cases, by a team of people who are just like I used to be, whose whole job is to figure this stuff out and test it in every way. So the risk of you using it is much, much lower. That's an important thing to understand about AI is AI is not deterministic. It's probabilistic. And what I mean by deterministic versus probabilistic is AI uses probability to deter- to figure out what the next word it's going to say as it's writing a sentence to you. This, it's all math. Deterministic is literally, I flip a switch and the light goes off. I flip the switch, light goes on. It's determined. It will never be, it will always be one of those two things. The light goes off or the light goes on, and if it doesn't do one of those things, that means your light bulb's broken. So that's rented. Simplest thing you can do. The return on it isn't as big, but it can make your life easier if you're using things like the QuickBooks Assistant, or it do- it might do something as simple as make the invoices that your customers see a little bit better. Things you need to do when you're when you're renting it is, first off- Look through your tools. Who's offering this to you and where are they offering it? Determine the features they're offering, right? A feature in my shop management thing that cleans up things, that's super useful. Maybe they add AI somewhere else and I have to think do I really want AI there? Do I want something that could make mistakes that I'm not supervising in use? So explore your tools, identify your features, and then start playing with it. Again, these are part of the tools that you are already paying for. You can afford to experiment. You're not-- you don't have to go out and buy a subscription or learn how to use a Claude code or a OpenAI codex or a Google Antigravity. You have them here and ready for you. They're in the tools as you understand them. It just changes a little bit your process, and you can decide, is this worth changing up my process for? Things to watch out. The quality of the AI varies by the vendor. Not all AI is created equal. The more powerful the model, typically the more expensive it is to serve. A lot of times what your your vendor that's offering you an AI product isn't using the most powerful model out there. They might be using something open source. So all things AI, and if you get nothing else from this, get this audit it. Check it for mistakes, especially when you're starting out. I was even prepping for this. I was running a couple demos on my side and it made, a couple of boneheaded decisions and spit out some information that wasn't right. So you've always got to check it. Then additionally, as you start to implement it, you should have experienced people working at your shop wherever you're using this stuff, looking at it before it goes out. If AI is cleaning up your emails or your or, service descriptions on your invoices, that doesn't absolve your service advisor of looking at the invoice before they fire it off to the customer. And then also you have to assume anybody who's used ChatGPT I like to say AI has an accent. ChatGPT especially has an accent. If you have somebody that's used AI a lot, you can tell when AI writes something and the way to get around that is to teach AI how to write like you want it to write. If you just let it go, people are going to be able to tell. I can tell definitely. All right. Here's where we're gonna have some fun. I have a few different demos we're gonna get to run through for here. And let's first talk about feed it, right? Feed it is what we think about AI how we've been using it a lot these last few years, right? You would log into a browser, there would be your AI chatbot, you could type your question, your comment, your whatever, and it would output some type of result. As they got more advanced, you started to be able to attach things to it to offer it additional context. And so it went from, "Tell me about the history of the moon landing," to, "I have a spreadsheet, I'm gonna attach the spreadsheet. Tell me about my spreadsheet." So this is the second piece where you can start to get real value out of AI, is you have systems that generate data. Why not use your-- these chatbots, these AIs, to help you understand your data? There's, me as a person who came from a technology background and moved into automotive with no real experience in automotive at all, outside of being a, an enthusiast my shop management system produces so much more data than, even I could process. Without this stuff, I'd be hours a week crafting pivot tables and running analysis just to try and understand where we are, where things I can literally do in minutes, if not seconds. And I'll show that to you as we move forward, right? So you can use things like your customer feedback, your service histories, your repair orders, your parts inventories to get real good analysis out of these tools. So let's go on a ride, folks. I have no, no idea what's about to happen. This should work. So let's start with our first demo, and I think this is the most fun. Like I said, I was prior to this, I worked in technology. I do not have a background in automotives. I am a shop owner that does not know anything about how to fix cars, and I had never written service before I took over this shop just a few months ago, right? So a couple of weeks ago, when my service advisor wanted to go on vacation with his family for a week and I only have one service advisor guess what? Time to learn how to write some service. And as somebody who doesn't, who, One of my technicians will come to me and say, "This is what I need and this is what's wrong." I understand it in theory, but less in concept. So I developed a script that I used to help take what the technicians were recommending to me and give me a talk track that I could use to customers. So when I was talking to my customers, they didn't necessarily know how way in over my head I was. So this i- these are my service writer instructions, not for my actual service writer, but for my AI service writer. This is when you're feeding it or yeah, when you're feeding it, sometimes the thing you want to do is just ask your questions, but sometimes what you want to do is you want to give your AI a role and give it some guardrails to lower your risk that the AI is going to go farther than you want, or worst case, make up something that isn't actually true. Thing to understand about these things is they want... Want is a bad word. I don't like anthropomor- morphizing machines, but the AI is designed to try and be helpful. It wants to get you an answer to your question, and sometimes when it can't find one, it just makes one up. Or if it can't find a piece of data, it makes one up. I told you earlier it did something boneheaded. When I was testing this it, I gave it a vehicle, and it decided that the odometer reading on the vehicle was 253,000 miles for a Ford Mustang GT, which would make it the greatest Mustang GT in the world. So in this case, I am giving my AI a set of instructions that it's going to use to help me come up with a talk track for my thing, but here are the rules, right? So I give it the set of instructions. I give it what's going to happen, "Hey, these are the steps you have to follow." I tell it what a service writer does. I tell it what to consider here for their talk track. And then this is important. When I told you AI has a accent, this is how I scrub the accent and I tell AI to talk like I want it to. So I've come up with a brand voice and rules for my brand here in, at Dempsey's, and I give that to the AI and I tell it, "You gotta... Here's what your tone is supposed to be. You are not allowed to do this. You are not allowed to use jargon. You are going to present the findings honestly. You're going to avoid certain words. You're going to recommend certain things if they need to." We do have financing, right? "You're going to tell them about our warranty." Then I tell it how I want it to structure the response, and then here's the u- last thing, I tell it what it is absolutely not allowed to do, what not to do. You can't include pricing. You don't get to invent a finding that isn't in the RO. You don't get to diagnose anything that the technician didn't say, and you don't get to tell the customer what to do. So now how does this work? This is always available to me, so I'm going to copy it. I'm going to come back to my repair order, and there's a bunch of different ways to do this, but this is the way I like I like to use this, is I u- I pay for Gemini's Gemini's AI. So Gemini is Google's large language model. And at the tier I use, I get a little thing in my browser that I can do this, and it says, "Hey, how can I help?" And when you do this in the browser, what it's doing is it's sharing my browser with the AI. So now the AI can see basically everything I can see, right? And now I'm just going to paste in... Nope, definitely not gonna do that one. I am going to paste in my instructions. And then this is also another important one. You typically get options with your AI what kind of model do you want, right? You almost never want to use this. This is basically the free AI. Free AI is bad, and I'll go into this a little later, but free AI is typically the lowest capability. It thinks the least amount, it gives you the fastest response, and it gives you the least accurate response. There's a time and a place for this but in most cases I use thinking. So I've given it my thing, and we're gonna let it think. And while it does that, Jimmy, do we have any questions? Jimmy Lea: N- none questions that have come through yet. But I'm absolutely fascinated. When you designed the voice of your service advisor, did you use your LLM to design that language for your service advisor voice? Jonathan Seitzer: Yes. Yes. Okay. So I created... So I've Russian nesting dolled my my brand voice. I used an LLM to come up with my initial brand voice document. Yeah. So it, it contains all the rules of the brand, and I ha- I do that by having the AI interview me about what I want and then telling it I want a brand voice document, and it gives me something there, because I'm not, I don't have a marketing background. I don't know how to create a brand voice. Okay. And then what I do is I share that document again with the AI, and I'm telling it what I'm trying to accomplish. I, my service writer's going on vacation. I don't I need to understand, I don't understand cars super well. I need to be able to give the customer- the information about their repair and their estimate. Here's, these... This is what I want. Here's my brand voice document. Write me a list of instructions and it- make sure you incorporate the brand voice. Jimmy Lea: Nice. I love that. So even in your instructions, you were talking about your service advisors leaving. Eh, let's say the service advisor is still there, we've got a brand new service advisor or we want to have a voice that is able to speak to a client or a customer in a, in easy terms and not speak down to them, but speak on a level that they're gonna be able to understand. That could be part of the instruction for the service advisor voice as well, correct? Jonathan Seitzer: Yes. Yes, absolutely. And it is part of it is part of mine, right? When we're talking about, warm, straightforward, neighborly, no pressure, you're an expert neighbor who explains things clearly 'cause you genuinely care. Jimmy Lea: Yeah. Jonathan Seitzer: Yeah. And that ensures what I get back should be to that level. But also, what did I say earlier? We're not just blindly trusting this. Jimmy Lea: Yeah. Jonathan Seitzer: So we're going to look. So here's what we have, right? Jimmy Lea: And one more question here before you go into this. Jonathan Seitzer: Sure. Jimmy Lea: Do you find that as you continue to use this LLM and as you continue to feed it with information, does it improve in its voice and tone and become more refined as to past inputs versus no? No, sweet. Jonathan Seitzer: No. This is very important when you're dealing with LLMs. These things don't learn. So the moment I push this button right here and it spouts- Yeah ... out a new one, it's forgotten it's ever told me anything. Jimmy Lea: Oh. Jonathan Seitzer: Yes. So there are certain applications now. So ChatGPT, Claude they do retain some memory. Okay. You can say, "Hey, remember this about me." So Claude's always going to remember that my name's John, that I own a shop, that I'm in New York, that I have a dog named Chrissy, that kind of stuff. But it's not... The AI does not improve itself, right? That's what all, y- that's what all these LLM companies are spending billions and billions of dollars trying to get to. It's not self-improving. It doesn't remember. If this thing spat out something that was totally awful, what I would probably do is I would figure out w- where and why, and then I would have to come back here and tinker with these instructions. Jimmy Lea: Change your instructions, yeah. A question's coming from John. Is there any way for you to share your instructions that you're using with Claude? And I think the answer is yes. However, the deeper answer or should be maybe... Jonathan Seitzer: Create your brand voice. Jimmy Lea: Create your brand voice. Have that interview with your ChatGPT or with your Claude and have chat ask you all those questions so that it comes through for you. Jonathan Seitzer: Yes. And you can do... y- I'm sure a lot of people are saying how do I do that?" You... These things are, it's... Once you get the hang of talking to this- Yeah ... it's wild how fast it unlocks. So how do you do it? Jimmy Lea: Yeah. Jonathan Seitzer: You ask, "Interview me. I need a brand voice document for my auto repair shop." You give it as much context as you can. "Interview me to get the thing." And it will quest- one question at a time, ask you questions. Jimmy Lea: Yeah. No, that's exactly it. Yeah the answer is yes. However, have your own Jonathan Seitzer: interview. If y- if I, if you use, if I send you my stuff, you're using my brand voice, which I think I have a great brand voice, but that doesn't mean it's yours. Jimmy Lea: Yeah, no. And I know, John, I know, John, you're gonna have a great conversation with your ChatGPT and have it interview you what kind of voice you want. And brand voice is the keyword that you wanna use there, John. Yes. So maybe what we c- develop here, Jonathan is some guidelines for them creating their brand voice. But anyways let's go back to what you're showing here, because- Sure ... this is where it gets exciting in putting this information into the point of sale system. Jonathan Seitzer: Yep. So here it's welcoming me to Dempsey's, so there's something in there that made... I wrote that told it I'm brand new. But yep, here we go. Here's our first mistake, right? This is not a 23,000 mile Mustang. You see there's nothing on the here that tells you it's a 23,000 Mustang. And again, we used the big, we used the more complex- Jimmy Lea: Don't create information ... marketing. You told it not- Yes ... to make stuff up, but it still made it up. Jonathan Seitzer: Yes. But now it's looked at the, it's looked at the thing, right? It tells you what's completed and approved, so here are all the recommendations it's got, and now it's going to go through each of the recommendations, and it's gonna, So f- the first thing it's gonna do, it's gonna tell me what the fix is, right? So we're gonna walk through this, then it's gonna give me the customer talk track. These are actual phrases I can use on the phone with the customer. "Our technicians noticed the drive belt showing signs of age," things like that. And then it's going to talk about what our recommendation is, why it's important, and what happens if we wait, right? Yeah. And for a solid week, and for those of you who don't know if you are s- if you're a single owner shop with a single service writer- Yeah ... the fastest way to make your phone ring is to send your service writer on vacation for a week. We did almost a record amount of cars. And it was John sitting at a desk waiting for Gemini and Claude to spit out the, trying to talk. And I actually, one of my parts distributors said I closed a lot of sales that week, so it was good. Congratulations. We still managed. All right, so that's that's our first demo here. Let's do- Let's do some analysis, right? Yeah. All so now we're going to go directly into Claude itself. Give me just a second to pull up my demo file, and we're gonna do a parts... We're gonna do some parts information. You guys aren't... You'll see this change in the Claude screen. I'm dropping two I'm dropping two CSVs. So I'm dropping some parts data from my from my shop management system. And now- So Jimmy Lea: this isn't the whole catalog from your parts supplier, this is what you've used- Yes ... Jonathan Seitzer: in the past. This is parts data for the shop that, have come in, have come out. So basically now I need to tell the AI what I want. Here's why we're doing this. I need to get some information to my accountant. Can you look at the provided data and let me know what my parts inventory cost was at the end of February, March, and April? Break the cost into parts, tires, fluids, and batteries. Jimmy Lea: So that was all voice dictated. Yes. You used just the microphone s-... Okay. Jonathan Seitzer: Yes. So I have a little program on the thing. I push a button, it records my voice. A lot of computers have this built in. I use a paid one just 'cause it's a little better, and guess what guess what's undergirding it? AI. Yeah. Jimmy Lea: Yeah. Jonathan Seitzer: So here we go. So this is what I want. Tell me what my pa- I gotta get my accountant what my on-hand inventory co- or price was. So we're gonna let it think for a little bit. And yeah, do anybody have any type of questions or anything we can go through as this thinks? 'Cause now we're at the part where this is probably gonna take a little bit of time, 'cause we're asking it to do a lot of different things and generate a lot of different information. Jimmy Lea: Yeah. So right now the process it's going through is opening each of these files and- ... looking into the dates, the parts, the costs. Jonathan Seitzer: Yes. Jimmy Lea: And it's trying to answer the question you've asked. So it's crunching a lot of data, and I'm assuming you've probably got hundreds of lines of data that it's crunching through. Jonathan Seitzer: Yes. Yeah. This is, every part we've ordered or has gone in or out the door since February 1st. Jimmy Lea: Wow. Jonathan Seitzer: So- This Jimmy Lea: could take a minute. Jonathan Seitzer: It's... You'd be surprised. I, my guess is probably... So right now it's tr- it's understanding the structure. Yeah, my guess is it's gonna take a minute or two. Yeah ... and anoth- that's another thing to get, to get used to as you're using these more advanced models. So there are basic models, there are thinking models, and then there's ways to make thinking models think longer. As you're using more and more complexity within your models, as you're turning on more features, if you're on these paid plans, you have usage limits. And somewhere depending on how much you pay it's, you're gonna hit your usage. Jimmy Lea: Got a question here from Sierra. She's asking, "Is this dir- linked directly into your shop management system, or do you have it upload all of the documents first, and then it does its searches?" Jonathan Seitzer: So I uploaded all the document for this demo. So I have an AI that is linked directly into my shop management system, or parallel linked via a public API. But we'll get more into that in two weeks. This is where the, I'm willing to spend nine hours on a Saturday building a connector into my shop system 'cause I'm a dork. Jimmy Lea: N- nerd. The preferred term is nerd. You're a nerd- Oh ... and we love nerds. Nerds are awesome. They're amazing. It keeps the world spinning, yes. Jonathan Seitzer: But yes. Jimmy Lea: So you love to nerd out on developing... this is your hobby. This is your go-to. This is your fun time. This is relaxing for you. Jonathan Seitzer: Yes. Yeah, this is I like building software and I... I like building software and I like building things that, that help me understand kinda what I've jumped into. 'Cause I can't stress this enough, I have not been working on cars for the last 15 years. Yeah. Or been a small business owner, or done anything that I do day to day anymore. Jimmy Lea: Wow. Wow. I'm glad you have this as a hobby. This is so much fun. This is where AI is going to assist the humans, and AI is gonna assist us to become better. I think it's gonna elevate us as a human race. Jonathan Seitzer: Yeah. So while that thinks, let's do another one. So we'll jump into Gemini. And so everybody knows, my AIs of choice are Claude and Gemini. I've used ChatGPT. I have no problems with with it. Actually, ChatGPT's new model, I'm told, is spectacular, which was just released in these last couple of weeks. It's just a matter of, the, there, you can only pay for so many things, and for what I use Claude for- Yeah ... it just makes more sense for me. But you can do this across just about any one. There's, and, there's a lot of, i- as you get more into this, there's a lot of, "Oh this model's good, and this model's good." The ranking changes week to week, right? Anthropic's on top now. Three months ago everybody was saying Google had ended the debate. Yeah. Don't, you don't have to do exactly what I'm doing. But here, let's we can... and the beauty of this is we can kick off parallel demos. So allow me to pull my folder here. Let's do something a little easier here. Jimmy Lea: I thought that said disco. Jonathan Seitzer: So this, here's what I wanna do. I've just joined a local chamber of commerce, and they're sending me a welcome packet. Can you read it and give me a list of action items I should do in the next five, 10, and 30 days? Jimmy Lea: That's hilarious. Jonathan Seitzer: Jimmy, do you- That's awesome ... read PDFs anymore? What are you, Amish? Jimmy Lea: Evidently. Jonathan Seitzer: I'm new to all this. I can't be, I can't be bothered to open and read PDFs. Jimmy Lea: I love it. Okay, go back to the other one. Did Claude finish? Jonathan Seitzer: Claude did finished. Okay. Don't contain ending inventory. So yeah, this is where it gets funny. So this is where it'll start to quibble with me, right? On-hand, list of every SKUs. So now it's given me... Here we go. So this is my... We'll ignore February 'cause that was half a month. But yeah, so now I can, to my accountant, I can say this was my parts on-hand cost and please get that to my ba- get that on my balance sheet," right? And, three minutes. Jimmy Lea: Wow. Jonathan Seitzer: Yeah. Jimmy Lea: Yeah, that's great. The other things you would have had to have done is gone into your Excel file and been an Excel wizard. Which I'm a pretty good Excel wizard. I know a couple of people that are better than me. But yeah, it wouldn't have taken me three minutes. It would've taken me a heck of a lot longer than three minutes. Or- I click on data. Jonathan Seitzer: Yeah. Or I would have had to have I would have had to have pulled Excel files for February, for March, for data, and now I just all in one throw it into the thing. I don't have to spend a bunch of time playing around in pivot tables. Jimmy Lea: Yeah. Jonathan Seitzer: And now I've got something. Now, obviously, double-check it. Yeah. I, I would, I've so I, I know this one works 'cause I've done it before. I've double-checked the numbers, so I know when I ask Claude this thing, 99% chance I'm going to get it right. Jimmy Lea: Nice. Nice. Jonathan Seitzer: All right. So there's that one. There's this one. And here we go. First five days, right? Oh my God. Things to do. Here's what to get done in 10 days. Here's 30. Now, in the next webinar, I can show you how to then fire this into your to-do list or project management tool, like a, an Asana or a Trello or something like that. And now it's not just a thing that lives on a web browser on my computer, it's on my phone in my app that I can go, I watched the video, click. Jimmy Lea: Love it. Jonathan Seitzer: And... Jimmy Lea: And you didn't have to read the PDF, Mr. Thomas. Jonathan Seitzer: Oh, gosh, no. It's, yes. Think of the time, think of the time savings. Now- Jimmy Lea: Oh, yeah ... Jonathan Seitzer: w- we joke now because it's, it's one PDF and who can't read one PDF? I'm, maybe I'm unique in this. I get between 15 and 30 newsletters a day- Yeah across technology, politics, economics, yeah, all the stuff I used to have to pay attention to that I still like paying attention to. I don't have time to read 'em all every day, so I have a tool that collates all of them and then turns them into a 20-minute podcast for me to listen to. Jimmy Lea: Oh my gosh. So you're, so you've customized 15 newsletters into one single podcast, and you listen to it while you drive home from work. Jonathan Seitzer: Yeah. So I do it twice a day. So I have a morning one and I have an evening one. So I listen to the evening one after, while I'm making dinner. I listen to the morning one as I'm finishing up my morning paperwork here and walking around and checking on things. Jimmy Lea: I love it. You're such a nerd. Jonathan Seitzer: I know. But it's Jimmy Lea: all- I'm glad I know you, John ... it's- I'm glad you're part of this industry. I'm glad you're helping share this with the rest of the world. Thank you. And the other John wanna know how it works. Jonathan Seitzer: It's all about buying back minutes, right? Time- Yeah ... and time is truly the only finite thing that we have. Jimmy Lea: Yeah. Jonathan Seitzer: And if it, if 20 newsletter I want to read my 20 newsletters. Jimmy Lea: Yeah. Jonathan Seitzer: I don't have the, I don't have two hours to do it every day. So- Jimmy Lea: Yeah ... Jonathan Seitzer: but I got 20 minutes to listen. Jimmy Lea: Yeah. Oh, for sure. For sure, especially while you're multitasking, you're driving, you're building making dinner. Yeah. All right. So what else are you gonna show us? Jonathan Seitzer: All right. So this last one is just a variant of the one that we did, but it's a lot more shop oriented. So here I am attaching one, two, three, four, five, six files for the month of March. How do I wanna say this? I need to understand better how my month went. Please show me a breakdown of my top five services by make, model, and category, as well as the revenue generated for each. Jimmy Lea: Wait a second, Jonathan. You could also do this for an entire year to discover your most profitable vehicles as well too, right? Jonathan Seitzer: So that's actually a really good- call out. So technically, yes, but when you're dealing with these AIs, another fun thing to keep in to keep in mind is that the AI can only take so much contact, context. So what is context? Context is everything that's going into this conversation. So these conversations, like the AI's not really having, we're not having a chat, right? If I go away for four days and then come back to this chat in this window and answer a question, what's going to happen is the entire conversation is going to get sent back into the cloud. The LLM's going to reread the whole thing. Again, like I said, this has no memory. So every time you're having a long con- a conversation with AI, it's basically sending the whole conversation back and then returning the whole conversation back with a response. So the longer the conversation you have, the more you're filling up this context window of however many million tokens or hundreds of thousands of tokens, and once you hit that window, the AI will start to... it starts to get weird after a while. It's, it becomes more prone to making making mistakes because it just can't... It doesn't have the capacity to remember everything. So if you're ever on Claude and you're having a long conversation with Claude, and that it's compacting, that's where it's suddenly, it's taking that context, throwing out what it thinks it can, and trying to keep the relevant points to keep the conversation going. So when I say, "Oh, yeah, could I throw this for a whole year?" Yes, but I don't know how well... that just might be too much for the AI. So typically what I do is every month I run one of these. And at the end of every week I run one of these, and I pull top-line metrics out for the week, and I keep that in a tracker like its own Excel document, and now I can, at the end of the year, I can point the AI at that Excel document and tell it to give me yearly insights without overloading the context and risking you're gonna get some bad information back. Jimmy Lea: Nice. Nice. Oh, that's awesome. All right. Jonathan Seitzer: So what- But yeah, look how fast this, look how fast this one came back, right? Here we are, top five service categories, repair versus inspection versus o- over the counter versus our snowplow business. We had 57 Fords, 33 unique, then Chevy, Dodge, Jeep and then we've got... that's, yeah that was an engine. So here's the actual, this is the fun... here's where you get insights, right? Jeep, revenue we had 10 unique ROs, but look at the revenue, right? So Jeeps are my unicorns. I don't get as many Jeeps as compared to Fords and Chevys, but the revenue, way up there, right? My- Yeah. So I know per ticket when I see a Jeep come in, oh, there's a chance this is going to be a much higher ticket for my shop, and that way I know. I know with three months of data that Jeeps and Silverados are what keep the lights on here. But as a snowplow seller also, I also know I have a lot of Silverados in this area, so when it's time for me to make my order for what type of snowplow mount kits am I making this year, I'm skewing to what I know I have a lot of, and I know I have a lot of because the da- I've got the data in this thing and it's summarizing it very cleanly for me. Jimmy Lea: Oh, yeah. Jonathan Seitzer: So yeah. So that is that is my presentation. Nice. Our little... Or those are our live things, Jimmy Lea: yeah. Jonathan Seitzer: What time are... 1:48. All right. I can get through the rest of this pretty quick. All right. So again to summarize our feed it section make sure you're using the right tools that your shop needs. Start with the big ones, but I can't stress this enough, you're gonna have to pay out of pocket. Start with the $20 models, see where it gets you. Up your spend as you find value. Jimmy Lea: Yeah. Jonathan Seitzer: Can't use that one. Don't throw your payroll data into this. The, the, these are going into the cloud. And also make sure that your that what you're getting back is accurate. You gotta check its work the first couple times, and that's not, I don't think, an unreasonable thing, right? You wouldn't hire a human and just let him go. Same thing here. In two weeks we're going to talk about the next evolution of this. The word you're probably hearing a lot now is agents. If you think of AI as a giant brain, think of agents as arms and legs. So we'll be talking about that in the next thing. But this is one important thing I wanna give to you guys before and, forgive me if I'm about to be a little vulnerable here. Jimmy Lea: Okay. Jonathan Seitzer: On the screen is the email you get from your company when you're laid off. So this was mine. Jimmy Lea: Oh. Jonathan Seitzer: Though, if you wonder why I'm not on Wall Street anymore, this is why. Now, AI did not take my job. I did not get laid off because of AI, and honestly, blessing in disguise 'cause now I have this cool new job. But there are a lot of people, and this is incredibly important I think, this is somebody who was an auto repair customer much longer than he's been an auto repair owner. If you live in an urban center with a large white collar population, understand that a lot of them are worried that this is coming. So when I'm using AI in my shop, and I am using AI a lot, you guys have all seen this, it's never customer-facing. I'm using it to make me better, but you saw my brand voice, right? I don't want my customer to ever think that they're dealing with an AI. 'Cause I think they n- you know, I think where I live, where there's a large white collar population, there's a lot of people that are worried about this. So by all means, use AI to increase, to make yourself a Superman inside your shop. Jimmy Lea: Yeah. Jonathan Seitzer: But be aware that people that, your customers probably have opinions about this, and use it use it for you. Don't push it to them if you're not sure they're, how they're going to take it. And that's my last thing. Jimmy Lea: Oh, man. I love it. I love it. A great shout-out here from Wayne. "Great job. AI's not gonna replace people, but love how it multiplies the effectiveness of the staff and the effectiveness of you as an owner and the effectiveness of your service advisor." It's really gonna help those relationships and those communications to happen at a much, a m- much better level. Jonathan Seitzer: Yes. Definitely. Jimmy Lea: Dude, John, this is awesome. Question here coming from... k- question, comment. It's more of a shout-out from Joshua. "There are solutions for connecting directly to your SMS." This is, in his estimation the best and easiest approach. Jonathan Seitzer: Y- I think it depends on your SMS. Like in my case to connect to mine, I had to talk to the I had to talk to them. I had to tell them what I was doing. I had to, make sure that they understood I w- I was building something for me, not something I'm trying to take to market. Yeah ... but y- you're right. Some of these SMSs, I think as we get more into it, they're going to start, it'll move into that rented space, where maybe from inside the SMS you can start to get a lot of this information. But there are ways to connect. Your mileage may vary depending on who your user is. Mine took a little bit of elbow grease. Jimmy Lea: Yeah. Yeah. No, that's phenomenal. That's phenomenal. Great information, John. Thank you. This opening up, opens up a whole new world of possibilities for what we should look at as we go down this road with AI. My daughter, she came to me and she says, "Man, I'm really worried about AI. I think it's gonna replace my job." And I said it's not gonna replace your job, but the person who does understand how to use AI is the person that's gonna replace your job." Jonathan Seitzer: Yeah. And one of the things I liked to stress back in my old life is right now there are no old graybeards of the AI world, the way there are in just about every industry. The- Yeah ... those of you, those of us who are using it and figuring it out and charting the course, we're the ones who decide how it winds up going and what it winds up being good at. Jimmy Lea: Oh, for sure. For sure. John, this is gonna be awesome, man. Any advice going into our next webinar, any advice for what people can do to prepare? Jonathan Seitzer: I would research things like ChatGPT's Codex or Claude Code and CoWork. Those are the two most accessible kind of agent harnesses out there. What I would advise against is Claude, or not Claude OpenClaude, something like that, Hermes Agent, some of these open source plug your agent in. Please don't go out and buy like a MacBook Neo or a Mac mini, if God help you, you could even get a Mac mini anymore. These agents are the reason why you can't buy Mac minis right now or a Studio Ultra. The next piece is, so I would say this, if you know what the terminal is on your computer the next webs- the next website or the next web- webinar's gonna be very useful. If if you've never coded anything or you're not super, I'll do what I can to show you guys where it is and how it goes. But the next stuff is all nice to have fun extras, but don't feel like the next one you gotta, it's all stuff you gotta do. You're not missing out if you don't do this. And it comes with work. It like, how important is your Saturday? Me? Well- Not super much, but... Jimmy Lea: but this is your hobby. This is what you're doing. Exactly. This is your relaxing enjoyment time. Jonathan Seitzer: Yes. Jimmy Lea: So what I'm hearing you say is let's get into a ChatGPT and have a conversation. Yes. And for the other Johns of the world, have a conversation, have chat interview you about what you want your brand voice to be- Jonathan Seitzer: Yes Jimmy Lea: so that you can create a prompt for other LLMs to use as your brand voice as you're talking to them Jonathan Seitzer: Yep. Jimmy Lea: So beyond them creating a brand voice and getting ready for two weeks down the road, open ChatGPT, have a conversation. Open Claude, if that's the one you wanna use. Open Gemini, if that's the one you wanna use, and have a conversation preparing for what we're gonna do in two weeks. Is that... Are we gonna go through setting up an AI agent here in two weeks? Jonathan Seitzer: I, I can... So cl- that's where the Claude code. So Claude Claude Cowork is like a out of the box agent, right? And you just kinda have to point it at a spot on your computer to go. Like a full setup. Now I've got full dork, integrated agent on a server somewhere else that I talk to in Slack. Y- we're not gonna do that. But- Oh, s- Yeah ... Jimmy Lea: you are such a nerd. This is awesome. Oh, Jonathan Seitzer: yeah. Yeah. Oh, I see a comment from Jeff. You heard at a conference Claude is better. I said this earlier. It's, it bears repeating. Claude is winning now. Gemini was winning a month and a half ago. ChatGPT will have its moment again in the sun. Use the one you get the most value from and the one that you're comfortable paying whatever the price is to use it. My preference is Claude. I like the answers it outputs the most. Some people really like the way ChatGPT sounds or comes back to them. They like the quality of the answers. It really is a pers- preference. There, Claude, ChatGPT, Gemini whatever you pick, you're not you're not losing out too much I don't think. I think you're gonna get roughly, especially if what you're getting it, looking for is data back, you're going to get roughly the same quality of answers if you're using the paid versions. As long as you're using the paid version you stick. Jimmy Lea: Yeah ... Jonathan Seitzer: peggy. Jimmy Lea: Yeah. Last question right here with Peggy. Where can- Jonathan Seitzer: YouTube University ... Jimmy Lea: AI answers for simple tasks like emails and calendars, et cetera. She didn't even know where to start, so this is for the total novice. Where can she start? Jonathan Seitzer: So there's a great channel on YouTube. Search a person named Elliot Prince. He's he's a British guy. He does a lot of stuff with Claude Cowork. He's got a bunch of videos of, like, where to start, here's what it does, here's what you can do. And also he makes his prompts and his lessons available publicly. Beware when you're on YouTube, a lot of these YouTube channels are really designed to get you to sign up for their paywalled course. That hasn't been the case I've seen with that one, and that one was really helpful as I was transitioning from Gemini more into Claude. Jimmy Lea: Yeah. And he's even taking the stance now that he's been with Claude for so long, he's now looking at ChatGPT and saying, "Oh, my gosh it's improved so much." I've gotta dig back into this to dig more into it. Yeah. So he's, even he's going through those gyrations of- Jonathan Seitzer: Yeah ... Jimmy Lea: they're constantly improving. Jonathan Seitzer: Yep. Jimmy Lea: Oh, that's awesome. Yep. That's awesome. For those of you who are listening thank you for joining us. John, thank you for joining. Thank you for sharing your nerd wisdom. We, we need people like you in the world, and in fact, we need all sorts of people. It's great that we're not all rubber stamp identical of each other. We are all different in this world, which makes us great. So thank you, John. I really appreciate it. Jonathan Seitzer: Thank you, all. It's been a pleasure. Jimmy Lea: Yeah. And for the rest of you who are listening, we we at the Institute, we are a coaching training company. We're a coaching training business. We're here to help you take those next steps, like we did with John when he bought a shop and didn't know what to do. We were able to step in. He hired us as his coach and his mentor. We even started coaching him prior to him buying the shop. So that's how valuable the, and important a coach can be to you and to your business to help take it to those next levels. So if you found this information valuable, if you found it interesting, understand this is the tip of the iceberg. There's so much more that we can do and that we can do together. Reach out. We'd love to have a conversation with you and to talk about your shop and your situation, 'cause yours is gonna be different than John's. Let's have a conversation to talk about what you can do to build the best business you can possibly build. My name is Jimmie Lee. I'm with the Institute for Automotive Business Excellence. So excited to be here with you today, and look forward to having our next conversation. Talk to you soon.

8 May 2026 - 59 min
episode 203 - The Future of Shop Training Is Personalized and Daily artwork

203 - The Future of Shop Training Is Personalized and Daily

203 - The Future of Shop Training Is Personalized and Daily April 22, 2026 - 00:53:43 Show Summary: Daily training keeps shop teams sharp and improving without disrupting workflow. Short mobile lessons build technical knowledge communication and consistency across roles. Data and gamification drive engagement while revealing skill gaps. Strong training habits lead to better performance stronger culture and long term business growth. Continuous development is key to retaining talent and preparing future leaders.   Host(s): Wayne Marshall, CEO & Industry Coach [https://www.wearetheinstitute.com/] Guest(s): David Boyes, Founder of Today's Class [https://www.todaysclass.com/] Show Highlights: [00:00:00] – Importance of daily training and consistent staff development [00:02:00] – Mobile learning delivers quick effective training in minutes [00:04:00] – Gamification creates competition and boosts engagement [00:06:00] – Advisors improve by strengthening technical understanding [00:08:30] – Training data helps identify individual skill gaps [00:12:00] – Expanding into leadership and communication training [00:18:00] – Training fills gaps for shops with limited access to resources [00:24:00] – Investing in people drives retention and shop performance [00:31:00] – Developing young technicians is critical for the industry [00:40:00] – Ongoing training separates top performers from struggling shops   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/Traa892RFnk [https://youtu.be/Traa892RFnk]   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  * Want to learn more? Click Here [https://www.wearetheinstitute.com/] * Want a complimentary business health report? Click Here [https://www.wearetheinstitute.com/business-assessment%7C] * See The Institute's events list: Click Here [https://www.wearetheinstitute.com/upcoming-events] * Want access to our online classes? Click Here [https://www.gearforshops.com/pages/course-library] ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com [marketing@wearetheinstitute.com].   Episode Transcript: Wayne Marshall: Welcome today for our webinar. It's exciting to have David Boyds with us from today's class. Some of the things that we talk a lot about at the institute comes down to the teaching and the training and development of staff. And when we think about what we're doing and as we work with different clients, we're dealing with it and we talk one-on-one or do other different events, and we're doing those on a weekly and monthly basis. But the beauty of some of the things that we have here to talk about today. That we're gonna have David share here more in a few minutes really goes into that daily constant feeding, developing of people and that focus. So today we want to get into and share a little bit more of the benefits and how to reinforce those different messages and those different things. It's a privilege that at the institute we have this opportunity to have a very strong partnership and alliance with today's class. Some of the content that we've developed and that we're doing, we're sharing with today's class. And David will talk a little bit more where we're able to take that content and he's been able to develop it and put it into that little bite-sized 2, 3, 4 minute daily things. And it could be on advisor, how to develop your phone skills, things that you can do better, that reinforces not only what we're teaching, but to make those people better on a daily basis and how it comes together. So with that, David. Thank you for coming with us today and sharing some things. If you would share a little bit about today's class, talk a little bit more as to what the content is how you get it out there, develop and the importance and what people can expect. David Boyes: Yeah. I'm really happy to be here. Today's class has been around for a long time, but what we've really focused on for the past few years is to make training as accessible as possible in a shop environment. We know that it can be difficult to carve out. 30 minutes of time, three hours of time carving out time in an evening. So we're coming at it a little different way, primarily through using mobile apps to push training that, that takes three to five minutes, typically for each user. It's engaging, it's gamified, but maybe most importantly it's personalized. So if we have, for example, in ATech, their training's gonna be different than a GST or an advisor. Our background was more on the technical side of things. We'd been an a SE accredited training provider for a number of years, so we really grew up in that space, providing technical training that could support a chef. This collaboration with the institute is exciting because now we're able to leverage their expertise and really take it to a whole new level. We know that a service advisor, for example, we can help them better understand technical concepts. However, the institute can take us to a whole nother level when it comes to things like, phone skills, communication, even things like accountability. So we're really excited to move forward here. Wayne Marshall: Yeah, it's it's interesting, you talk about gamification and I know when we, this goes many months back when we started working together on different things we, here at the institute, there was a group of us, Cecil being one that was part of it. So we're going on and be it on technical advisor, whatever it is we're going on and we're doing exactly what your clients were doing. And it got to be very competitive inside our walls because I'm doing the daily test and it's the same one that Cecil's doing, and now we're competing to see who's got 'em. All right. Am I getting more points? Am I ahead of Cecil or is he ahead of me? So that competition. It's really interesting because I know what it does to us. You're seeing that probably also with your clients because most of the people who do sign up for today's class, it's that rooftop or that shop with multiple people engaged. How well is it moving the needle when they get into the gamification or the competition? Yeah. 'cause guys got egos. David Boyes: Absolutely. So the reason that we include that gamification in there is 'cause we need to promote that daily habit. So this gets into some adult learning capabilities and motivations and so forth. But those points in the competition are a common hook. So people can earn points through being consistent with their daily training. But there's a variety of ways to leverage that. The most common thing that people will do is just treat it like a scoreboard. So if Wayne and I are on the same team, we can see who. Who's leading the pack so far resets each month. Teams can then compete against one another. So when we have various MSOs or if you're in a group, you can compete with your peers and that can just open up the doors to, to drive people to move forward. It's not something where, they have to overcommit to it, but it's a very light spirited way to keep it going. And the fun thing for us has been that. Seeing how shops come up with their own creative ways to leverage points, whether it's primarily about competition, whether it's weaving it into pay structures, incentives, tool bonuses, or ultimately creating your own reward store where you can take points and redeem them for gift cards, tools, trips, or time off. So really what we're trying to do is use the points as a way to. Create that engagement tool for a management team to be able to ensure their team Can train consistently. Wayne Marshall: Yeah. Yeah. There's a lot to be said about. All that content that's out there. And it's like anything with learning, you gotta keep it fresh. And the more we can do to engage people on a daily, regular basis, that keeps whatever the subject matter is of what they what, while it's on the track training track that they're on I can only imagine keeping it top of mind. Has made a difference. And when you talk to shop owners, they've engaged into your services, they got their staff using it. What kind of testimonials, what kind of results are they seeing that trickle into? Obviously better work's going out the door. They're having less comebacks. People are being more efficient. They're seeing that proficiency in tech time, on and on. How does that trickle in and what are some of the comments you get back? David Boyes: Yeah. Yeah, so I'd say the, I could boil that down to a few common use cases. One, I think for service advisors, on the technical side of things, we see a lot of benefit, very common for us to hear about customers who have an advisor who's great at communicating great with people. But just lacking some of that technical expertise. Today's class is a very easy way for them to begin to. Beef up on, on some of that technical knowledge terminology that improves their ability to not only communicate with the customer. But also with the technicians in the back. So we get a lot of great feedback on that in terms of getting them up to speed, very quickly, but also in a way that's non-threatening. They can do this on their own, they can do additional self-study. So we get a lot of good feedback from an ROI perspective on service advisors. When we talk about advanced level technicians. A lot of this gets into how things have changed. We talk about daily re-engagement, reinforcement. This is not a static industry. Things are moving all the time. So as we keep our content up to date and fresh, as a very experienced technician, you might see something you didn't know or something that has changed since you last learned it. So staying in front of it tends to be pretty key. And then from a measurable perspective, another area that we often see relates to a SE certifications. And a lot of that comes to prep and making sure that people are confident to go into these certifications through the way that we deliver training, the way that we measure where folks are. We've got great reports on building individual folks confidence, so they head into those certifications knowing that they're gonna pass it. Wayne Marshall: And on a reporting side, you are getting a lot of the information. Obviously you're seeing how people are, when they engage, what they're engaging in, how they're scoring or testing. So if they're showing because at the end, as they go through it. The test is gonna tell you if you've got competency of subject matter. So at the end, as you report all this, it's obviously going back to the shop owner. And they're being able to see where there's gaps or weakness. How are they using that then as part of that overall development and learning? As they continue to build it out? David Boyes: Yeah, so measurement is key for everything we do. We have tons of data and we have a variety of shops that are data junkies and other folks that want more of that headline data. What we tend to advise is to look at that data to inform some of the additional training you may need. The today's class experience is something that you can do in three to five minutes a day, but we recognize that technicians and advisors are gonna need more. Where this can help is the data can begin to inform that perhaps these two technicians over here really need some additional help, in, in AC services or electrical. And now instead of sending your whole shop to per an evening class, for example, let's send these two folks that really need help. So having a line of sight to what they actually know, what they actually are confident in can help a business operator make more informed decisions. Wayne Marshall: And I know part of this, besides just that daily interactive. You also are doing some other things where you're doing online training, where you just recently did one on air conditioning. And ended up doing it on live where you had 40 plus. Techs and others coming in that one of your instructors went through and took even that deeper dive to help them through this training or getting them to that certification. So it's not just the daily, it's also reinforcing it in a different way. As you're looking at everything that's going on, and we've talked a little bit about this, everybody's talking about ai. And they're talking about how this is changing and embracing, and I know you're looking at it. We're looking at it and how can we use it as a tool to reinforce and to help fine tune that messaging. Tell me a little bit, I know you've got some things in the works, nothing ready to announce, but tell me how you guys are looking at this, because it is changing our industry. David Boyes: Yeah. No, we need to use it as an enabler. So it allows us to evaluate content, be more consistent, with the volume of training that we push out each day and the data that we're crunching. It allows us to identify trends. So when we talk about this AC session that we did the other day, the benefit that we get. As thousands of users are training in the platform. Each day. We can get insights that say, people are struggling with this, or people misunderstand this, or maybe we need to enhance this particular content area, and the AI can help us crunch through that data more effectively. So it really just becomes something that allows us to do our job more effectively. Scale across broader data sets, more quickly. Wayne Marshall: Yeah. What's one of the biggest challenges that you guys face right now when it comes to the training and development of, what do you hear? What's some of the feedback that people are looking for that we're trying to continue to, as we do at the institute? What's the gap and how are we gonna start to develop and close that gap? David Boyes: Yeah. I'd say for us it's a bit of a balancing act because we know that the fundamental. Our key. A lot of times people are looking for what's next and we have to balance that to keep them looking ahead, but also recognize, are they doing those services right now in the shop? Yeah. We've got, limited resources for development. We have to have that balancing act. So we use those data insights, industry insights and feedback from customers to say, here's how we can prioritize our development roadmap. Wayne Marshall: Are you finding the need to become very manufacturer or model specific or anything like that? Or is it still staying? Pretty universal? David Boyes: It's pretty universal at this point, 'cause again, there, there's such deep rabbit holes you can get into once you go into that make and model specific. So at this point, we haven't gone down that road and we'll continue to explore it, but at this point we still have a lot of work that remains to be done kinda more from the broad level. Wayne Marshall: So part of our partnership reliance is you've been working hard 'cause you had a lot of great things and obviously you've moved the needle. You've got about 11,000 users roughly on the system, which is a big number. And it was very technical specific. And now we're starting to get into. More of those soft skills and we've been honored to be able to help with some of that content and information that will help with that service advisor, telephone skills what other things, when you talk about soft skills. Are we working on or you wanna work on to develop? David Boyes: Yeah, so leadership, accountability and shop operations more broadly. We wanna be careful to not be very narrow, let's say with a particular focus on, on, on breaks or engine performance, but we wanna ensure that. Teams can work to together effectively communication, handoffs, documentation to make sure that all of that pieces together. We don't, we want to enable broader shop operations. We know we can reinforce that, get that message out daily. We're even seeing with some specific customers that they're building out best practices in terms of the way they run their SOPs, the way they run their point of sale systems, where they can dish that out to their teams and enforce those behaviors daily. Wayne Marshall: Yeah, it's we're seeing this more and more. We've been to different industry events at the institute. We've had this opportunity to interact, present on different things and why there's a lot of good things going on in the technical side, those soft skills. Very much in demand. You know how to build good culture and how to be a good leader, not just be a good manager, but a good leader that inspires and gets people to rise up as we want 'em to do. So it's something that we're, again, we're excited to be able to help develop some other content that can be used, that can be put into those bite sizes. Just good action items and a reminder of, here's something I can do today. That can make a difference in my business to be a better leader, to be a better manager to, to operationally how to get into, so I know we, at the institute, we spend a lot of time, we've got our own dashboard, we've got all these operational KPIs, but how do you then take all this good data and implement implemented into daily operations? So it's gonna be interesting. I know we got a lot of work in front of us. To get it where it needs to be, but it's gonna be fun to build it and try to make this difference. I also find it interesting, and you've talked a lot about it in the past when we've talked. Talk a little bit of how it's different. Adult learning has changed and it's gonna continue to evolve. The young people coming up, the millennials, whatever, their attention span and how they look at things and how they consume is different than me as a baby boomer. What are some of the things in the trends you're seeing and how are you trying to adapt to, if you could? David Boyes: Yeah, I'd say a lot of it starts with recognizing that there's different ways to learn. I think there's a lot of, there's a tendency to learn the way that we all did, let's say in high school, for example. We gotta be very careful when it comes to a one size fits all approach, and also for longer bursts of time. There's just a lot of research that indicates. That there's only so much information an individual can absorb and retain over time. And then everybody's probably f familiar with the idea of the forgetting curve, that we're gonna get rusty on things over time. Yeah. So we're not, we're trying to just recognize those behavioral tendencies. Some folks might roll in attention span to that as well, which can be part of it. So we're trying to be very targeted. Hit you where you need it, hit you with what's relevant and ideally motivate you to dive deeper. Motivation is a key aspect to it when you think about somebody on your staff that it has to do required training. Yeah. The common behavior is they'll work through it, try to get to that finish line and say, I'm done. However, if you can flip that around and find a topic or an area that an individual's very motivated and interested to go through, obviously they'll enjoy that more, but there's a lot of research that suggests that the retention there is much stronger. So with a lot of our strategies. We're trying to build it in that way where people can, do what they need to do, but then ideally, push deeper into areas that they're very excited about. Wayne Marshall: Yeah I'll pick on myself and, being someone who was in college in the seventies and, being in my later sixties. I'm still old school. I still gotta have stuff on paper. I wanna be able to tactically touch it, read it, and work through. I look at my kids and grandkids man, they're in the digital space, and I know it's really hard at times when you sit there and you try to feed this content. And how it's gonna stick for this person to this person. And yeah, this industry's changing. A lot. But when I look at myself and I look at a lot of owners that are out there who are in their, later fif mid later fifties and beyond. Yeah. Some of us are still pretty old school. David Boyes: And building on that, I think some of the trick in terms of what we try to do, when you think about having an individual, let's say take a course on, on breaks Yeah. Or ac. Your sense of where they might need help is attached to that broad topic? Yeah. When we break it down to these smaller pieces, we can tell you exactly where somebody's struggling, exactly where they need help and maybe we can take them for being 90% effective. To 95 to a hundred, so we can still make meaningful gains even with those small pieces. Wayne Marshall: Yeah. And and I get your daily feeds, 'cause I've got the app on my phone. I don't, I'll be honest, I don't do it every day. There was a stretch there that we are competing more internally, but it is nice and we all work with a smart device of some kind. Be it a tablet, be it your phone, whatever. So it makes sense. But at the same time, I know how it affects me and how I still learn and consume that kind of educational material. And yeah, still this day I still can't get outta the habit of not printing. But I'm not the future as they say. I'm still the present and working and I look at the generations coming up and I just wonder there's been a lot of statistics out of that attention span, how you teach, how you develop, and how they become good with their hands and do. Yeah it's getting harder and harder, yeah. To say. David Boyes: Yeah. And I think it's, constraints are a big piece of it too, because people may have a preference for those deeper dives. They may have a preference for hands-on, but I think that the reality is carving out the time or getting to the location you need to, that's not always easy. We have a lot of customers that are in very rural locations because they may not have a lot of options. Yep. You can do this on your phone. It's short, it's successful. You can dig deeper if you want, but a lot of these folks may not have the time or availability to, to dig deeper. And again, as I said earlier, we don't view this as the only solution that, that, folks can leverage. I think this fits that gap where you can build from other things and tie it all together. Wayne Marshall: Yeah I gotta compliment you, as I've looked at some of the technical training it's very detailed now. It is in those snippets. So you know, you're not gonna just get on for five days and go through breaks as an example or air conditioning. And at the end of that, say, Hey, I'm ready. Now go take the a SC, I can be certified, whatever. But there's enough content in those lessons that you look at, and it's in, it's in the dozens, it's 2030, but if you get through the whole segment of you've gained and consumed a ton of information that really will get you prepared. It's, I compliment you in staff and I've been very impressed with the details and the level that you can take people. I encourage everybody, take a look. There's so many ways to stay current. There's so many ways to learn and develop, and we've talked about that. Yeah. There's a lot of service centers that are an hour, two hours from a city where training is gonna be happening, and now the expense of sending someone who's got a drive, maybe there's a hotel room. You go down the list. It adds up and it gets really expensive fast for some of these different events. David Boyes: Yeah. And that's where I think our data for our customers that do that they're in a good position to make that call, because you're gonna have to do that hands-on training. You're gonna have to travel. But if you can do so by knowing that this employee's ready for this training. Let's flip it around. Now, maybe I don't make that expense because I know you're already beyond it and I can say, Hey, we're not gonna invest the time and the cost to do that. Let's wait for a session that's more appropriate for you. Yeah, Wayne Marshall: no I hear you. What are some other areas that you're considering? I know we've talked about, besides the technical, we've already talked a little bit about some of the other different leadership management culture. Are you gonna add in accounting, financial training? David Boyes: Financials is an area that we're very interested in. I think for a lot of, the younger, technicians, for example, that are very interested maybe in opening their own shop someday. We would love to break into that and start. Delivering some of that foundational financial experience that everybody can benefit. Whether you're gonna open up a shop or you're gonna go off and do something else. That personal finance can be key. And again, that's where we're really excited to work with you guys on that. Leverage your expertise. Yeah. 'cause I think we would all agree that everybody, Wayne Marshall: yep. David Boyes: In that shop, if they all have a good understanding of that. That's gonna improve the communication, that's gonna improve expectation setting and allow things to be smoother. Wayne Marshall: I know this is in my past life. Years ago I worked for a company, manufacturing company and I had a meeting with staff and the title of the meeting was, how do we make money? And I can remember taking the time and breaking down, materials, labor, and all the things that it took. 'cause it was a custom manufacturing company and everything that it took and showed them and staff, how do we make money? And I agree with you. I think when we start talking to coaching clients and others, the owner understands. But sometimes the service advisor, the tech doesn't realize this lack of efficiency or this happens or that happens. Erodes or eats into the overall financial statement. The other thing I, is we're seeing, and you read the statistics as I do right now in this industry, they're saying between 50 to 60% in the next 10 to 15 years of service centers are gonna change ownership. There's a lot of people and we see 'em within our marketplace who are in that age of 55 plus who want to get out and want to do it. And we're already working with clients who are selling to a service advisor or a general manager or to a tech, but now they need to understand. So this is a great way, again, not having access to certain things. Yep. To fill that gap, and it's a big gap that's coming. David Boyes: Yeah. I'll tie that back to the learning motivation. So imagine that you get exposed to a little bit of this and you're interested. Now I understand. It's not such a mystery to me. Yeah. And that might motivate you to learn more. Imagine if you're an owner having, your experienced technician come up to you and start asking some of these questions about the finances of the business, that can be a very encouraging step in that development cycle. Wayne Marshall: Yeah, very. Yeah, I agree a hundred percent. And it's something that. I know with, and I've done some coaching calls where the owner says, are you okay? Can we have one of the coaching calls? And I'm gonna bring in my, service manager, general manager, one of my advisors. And would you talk to them about all these things that we're just talking about operationally? Financially. They get it and they know it, but to be able to coach and teach and let it go out to them only moves the needle. And if they got focus on the dollars and everything that's going on, yeah, it trickles down. And now that shop's making more money, now they have the money to buy that extra specialty tool or to get the new alignment rack or to give out bigger bonuses or incentive plans for the tax to the service advisors to. Everybody else, so everybody wins. Training is just so critical and we just have to constantly do and build. And I always tell our coaching clients, we talk about when we go to events, if you don't invest in your biggest asset, which is your people. They're gonna find someone who will invest in them and that's not maybe gonna be at your shop. So I just feel like you can't stress training enough and you've gotta invest and you gotta help these people. And when you do it and it makes them better, makes you better as a shop and they know that you really do care for 'em, which builds culture. David Boyes: Yep. Wayne Marshall: All the things we talk about. As you look to the future. Do you see anything out there that is going to be a big change, big movement, any concerns or is just keep an eye on the prize as they say. Keeping an eye on what we need to do. David Boyes: We gotta keep our eye on the ball but again, I think there's a lot of enhancements from a content but also a data perspective. We want to make, we will ultimately want to move into a more dynamic. Training model right now, our customers will select the type of training that they want. It's menu driven, but whether I'm ATAC or I want somebody to focus on breaks, as we begin to get more sophisticated with data, we can look at business ops and begin to shift that dynamically and start pushing training automatically to somebody based on what they need. Now again, they can always seek out more information, but the more that we can do on behalf of the shop. The better off. We think that they are. They can certainly, take the wheel and steer it, but they they have a lot going on, and if we can use our expertise and their data to inform that, we think that's effective. Wayne Marshall: We look at shop management software, obviously. We have different things we have within our own dashboard that allows us to pick up so many different data points. And all of this trickles back down to, okay, we got all this great data, but if I can't take that data and put it in a form that gives me insight or knowledge, which allows me to make better decisions, which I like. What we said earlier is that, as a shop owner. I can see all this thing on your dashboard. I can see who's going in on a regular basis. I can see well how they're doing on the testing. I can see if they need more training. These are so important data points. No different than am I getting the right gross profit on my parts? Am I getting the right gross profit on labor that gives me the overall gross profit on my business? But if we don't take all that data and use it to have better insight and knowledge to make better decisions. Then it's just bits and bytes and it's just data. David Boyes: Yeah. We gotta be very careful with that. We will hear that constructive criticism from our customers that these dashboards are great, but there's a lot, how do I make sense of that? I know. And I don't disagree. That's gonna be some of the excitement coming going forward because we're gonna continue to refine this and make it more actionable, a little more clearer. You mentioned just some of the financial stats. If we think about the number of metrics the typical shop owner's gotta manage, it's not a short list. No. So we can do our part to try to tighten that up and connect it to those metrics because ultimately we want those training dollars to be, or those training metrics to be informing those dollars and so forth. So the better we can tighten that up. It makes it simpler from a reporting perspective and more effective overall. Wayne Marshall: Yeah. We whenever we get a new coaching client, we, start the whole conversation of, let's get a status of your business. Let's look at the health, let's start looking at some of those data points. Then it starts, okay, where do you need to train? Where do you need to develop, new skills or new opportunities? But at the end of the day, it it starts, nothing happens. Until the phone rings. That's right. Nothing happens until a customer drives into your lot and walks in the door. We can do all that, but once that starts, that gets the opportunity to sell 'em. But what brings 'em back is the quality. Of the experience with the service advisor to the quality of the work the tech did, and that it's of what it needs to be. That when the customer drives away, they have a happy experience. All that comes and we keep reinforcing it. But it all comes through training and reinforcing. One, one of the things that, we talk about from a culture standpoint, what gets rewarded, gets reinforced, and sometimes we reinforce and reward the wrong thing too. So this is an opportunity when we have the right metrics, get the right KPIs, we get the right training going, we keep it and sustain it. Now it reinforces all the right things you wanna do. So that customer experience is at a high level. The retention stays up. So when that phone rings and they come in and you get a new customer, you keep the new customer. And then you just build on that energy and we're seeing a lot of that. And I go back to the beginning. This is what's exciting of being able to work together and what we're seeing that it does to reinforce what we coach and train and speak about. So yeah, it's gonna be fun to continue to help with content. New things, new stuff, that we can get it to that next level. To truly make this, as we say, a better industry. David Boyes: Yeah. Wayne Marshall: Because that's what we want. David Boyes: Yeah. Wayne Marshall: Everybody wins. David Boyes: Yeah. We're big believers and two heads are better than one. Yeah. So it's been exciting, to work with you guys. And again we're very excited to work with experts and bring in different perspectives. 'cause I think broadly what we've done is confirm that this learning model and this access works and it's. Talking to thousands of shops, we know there continues to be opportunity where they need information, there are access limitations. So if we can get the right content piped through to those folks, the better they'll be overall. Wayne Marshall: Yeah. I agree 110%. It's just, there, there's so many shops out there and there's only enough hours in a day. David Boyes: Yeah. Wayne Marshall: It's like how do we continually try to help and make a difference? I say and I've been around it for a lot of years, but this is a great industry. It's exciting, and I think we need to continue to do a better job as an industry to entice and bring in the young people. Sometimes we still have the phobia of what it was 20 and 30 years ago. It's dirty, it's greasy, it's this Cars aren't dirty and greasy like they used to be. Engines don't leak and do other things like they used to do and the electronics and everything that's into it. Is making it a more exciting, interactive and challenging activity. I think about my grandson who loves the video games and the computers and all the things, but then you sit there and you try to tell him all the other things you can do and what's in the automotive space. It is exciting. It is exciting. And what we're gonna be able to do. I don't have the right answer, but it's the only way we can do is to continue talking about it as an industry. Continue to encourage, to continue to engage, but once we get 'em in, what are we gonna do to take 'em to the next level? What are we gonna do to continue to start? Because I hear too many stories of, especially at the dealership level, the kid comes out, maybe you went to the community college. They're not through all the programs they could do it to, but they end up being a loop tech. Then the dealership keeps 'em held down and they don't want to do this. They don't want develop 'em, and they don't want to go in these other directions. So what does the guy do? He leaves. I can't make enough money. I can't support myself, so I'm gonna find another one. And he goes to another industry, might be welding, it might be, a machinist, it might something else that, that can pay him. That he is not getting because he is being held down. So I say this all the time, and as I look into the camera guys, we as a whole, as a team, we have to improve ways of what we're doing to develop the young people of this day. It is so critical and this training opportunities and the things that we're doing with today's class and it's with others in the industry, it's just so critical. If we want to retain the next generation and beyond, and it's gonna, it's gonna take time and it's gonna be hard, but we gotta start someplace and we've gotta make those investments. And it's gotta be frequent. I don't know about anybody else, but man I've had the privilege in all my years of working. I've learned a lot. But if I don't go back and refresh, I forget it. I forget it. And the daily aspect of it is huge. Yeah. It's huge. Just keep top of mind. David Boyes: Yeah. And I think, again, challenging when you think about bringing in, younger folks, I think we need to challenge some of the assumptions related to is the way that we've done it, the way it needs to be in the future. So we're trying to push a little bit in terms of this di this idea of daily engagement and the way people actually learn and what's effective. And these things will continue to evolve. The audience is changing. We need to look at them in a different way and what works. Yeah. Whether it's, we hear a lot of it, tying back to what we talked earlier about with the points and recognition and so forth. We hear from a lot of our customers when they use our. Metrics and engagement tools, that money isn't the biggest motivator for a lot of their employees. No, it isn't. It, it's the recognition, a lot of these other tools, and it's fun to see some of the ideas that they come up with. And we also notice that those incentives vary a bit from their younger crew to their more experienced crew as well. Wayne Marshall: That no, it's it's been proven for. I go back to. When I was in college in some of my classes, that was proven in statistics 40 some years ago. That money is not the ultimate motivator. It's job enrichment, fulfillment, and other things you do. And that is true. And this helps to fulfill some of those. Just inner needs psychologically that we have. David Boyes: Yeah. Wayne Marshall: Yeah, don't get me wrong, money's important and we talk a lot about the Maslow hierarchy, and you get into that, basic needs. Everybody needs money to pay their rent to, make their car payment, have food and that. But once people start getting past the fundamental things, the base of Maslow, and you start to climb up, you're looking for other things. You're looking for that enrichment that, fulfillment of and what fills your soul, so to speak, that makes you want to go to that job every day and do what you do because you find the challenges of it. And that's something that's important as these young people start to grow. And go through I'm curious, have you guys have any connection or. Are you gonna work to get connections with maybe some of the trade schools and or community colleges with your content that helps their students and other things? Do you got anything like that? David Boyes: We've tested it a bit. We're working with one school that we've been working with for years in Adrian, Michigan. And the, it works well. I think the trick that we sometimes find in particularly schools is. It is more of a one size fits all approach. Those instructors do need to bring you into this subject area. You're gonna have a quiz on Friday, and then we're gonna move to the next one. So the individualized approach, they often like the idea of that IEP, that in individualized program. However, it can be a distraction from what the instructors. Routine is of doing. So it's been a bit of a mixed bag, so it hasn't been a focus for us. We used to work in that business and begin to shift back towards the aftermarket. Wayne Marshall: Got it. Yeah. I could see as we at the institute have the privilege to engage with Weber right here in the community, which is one of the top automotive technology programs in the country. Yeah. And in our meetings and being part of their advisory board and group, it is interesting. We sit there and we're looking at that and how to connect better. Just as we said earlier we've gotta invest in the young people. We gotta invest in this next generation. So we've been working harder to get connected with some of the schools and do more. Do what we say, and what we preach, but to do more. But then you sit there and say, okay, so how can we continue that? So they can see that there is a very good career path of knowledge, teaching, training, development that takes from the next level. But I could see maybe someday. David Boyes: Maybe someday. And we're not opposed to do more, but it, but yeah, it's. It was interesting. We, we, particularly for teenagers, there was this thought, okay, an app-based approach would be a home run, right? And again, I think the students were interested, but it became, for an instructor, they've already got a full plate and it became an extra piece that they had to manage. Wayne Marshall: Yeah. David Boyes: But I do think that this, going to what we talked about earlier, imagine being a student and knowing that, hey, I could be taught not only about. Turning wrenches. I can be taught about sales, culture, leadership, financial. Yeah. I can learn not just to do this job, but how to run an actual business when it comes to this. Wayne Marshall: Yeah, it's exciting to look, 'cause a, again, we get many people who come into the institute and we, and I just ask 'em, how did you get to own this shop? I was the top tech at that shop or another shop, and I decided instead of working for somebody else, I wanna work for myself. David Boyes: Yeah, Wayne Marshall: so they knew the technical side. They knew the business as to fixing cars and how to, read an ro repair order and how to get it done and fix riding out the door and make the customer happy. What they didn't know is all those other skills. That makes a difference if you're in business five years from now or you're not in business five years from now. David Boyes: Lots of details and whether it's the people, the financials the legal. There's lots of layers to it where, you know, who knows? I think there's an an advantage as well. Maybe somebody gets exposed to some of those things and they say, you know what? That's not for me. I am pretty comfortable with where I am right now. I'm gonna focus on what I do well. I don't wanna have to deal with, managing people or these pieces of the puzzle. Wayne Marshall: Yeah it's a lot when you talk to some of those and I've always found it interesting and it has nothing to do with age. We we work with some young people. I mean that, when I say young, they're in their twenties and thirties. To those who 45, we're, I've got a coaching client that I'm working with here at the institute yeah, mid forties. Bought his first shot. But he was the top tech and decided I wanted to do my own thing. Yeah. And now he's building. But yeah, all of a sudden he realized why he was doing okay. He wasn't making the money. He should, he wasn't having all the success. And we started digging in and just, yeah. All that financials and just the. Standard operating procedures and processes, the HR aspect of just managing and leading people, and it's a whole different skillset. Some people have it naturally, but most. Myself included, I had to learn it and develop it over time. Oh yeah. David Boyes: It's not easy. The analogy that we'll often talk about is somebody that's a really good cook or you're very passionate about that. But running a restaurant's a whole different animal. You, amen. And I think that's one that people can relate to a bit. 'cause we've all been there. We can understand what's going on in those kitchens, but there's a lot of layers to that. And I think there's a lot of value also to maybe being exposed to something and realizing that's not for me, and save yourself that trouble. There's a lot of benefits knowing where you don't belong and if you can find that out before you commit to that step, that can be a, that can be a, Wayne Marshall: it's, it was interesting. This goes back a little bit of a shop owner. I knew he sold a shop and he went back to being a tech. Because he decided you know it, and that's okay. He said, I'm not, I don't consider a failure or anything. I realized I was not a good business owner. I couldn't, we did. Okay. But I'm a better tech. So he went back to wrenching on cars every day and I still talk to him for probably about five, six months. But he was happy and very content. It's sometimes it's not always for everybody, as they say, but yeah, it's a lot to think about as you look and how to develop that and how to get those skill sets to be that good, strong dynamic. Runner or business owner and it is it's got a lot of challenges that come into play that people just don't think about. David Boyes: Yeah. And promoting discussion among that I think is helpful as well. What we find in our experience is it's non-threatening. You can see this stuff through the app. You can get exposed to it. Yeah. There's some. Hesitancy often to raise your hand in that class I don't understand what a p and l is. Help that make sense? Yeah, so by making training available and accessible and pushing it to you, we think there's an advantage there. We're also enabling more communications through the platform as well. You mentioned the webinars that we are doing on AC this week. We've got some discussion feeds as well, but again, ideally. For a technician that's listening to this, if we can expose you to some, additional knowledge on finance, culture, leadership, et cetera, get you thinking about it and maybe discussing it with one of your peers or encouraging you to go reach out and seek more help, we think that's a benefit. Wayne Marshall: Yeah. I always find it interesting when I, when we get in conversations. Our clients and just the industry in general. And I get people saying why do I need training? I'm running a pretty good shop, or why should I get coaching? Or why should I do this? Why should I do that? I always look at it and I always look at what we see out here and if you watch golf on a Sunday and the masters we just recently have, you look at professional sports and I always find it interesting that you look at the top performers in many other things. They have coaching. David Boyes: Yeah, Wayne Marshall: they have training. Just using golf as an example. They've got a putting coach, they got a swing coach, they got, someone for this. They got so many people that are helping 'em get to the very top. And when you think about what they do to excel and stay at the top and what it takes. I always wonder, why don't we do that enough in business in general. And I look at myself when I started, got outta college many years ago, but I was blessed to have some really good people in my life who were strong mentors. I took advantage of different certification programs, other training, other things. To help build my career, to get me to where I got to. And I've been an embracer of it, even at this point. I still got people I talk to. That can help me answer those questions. So I challenge our industry out here. There's so many good resources out there and there's some really talented, sharp people talk to 'em, engage our friendly competitors we have out there in this coaching, teaching, training space. All of us just wanna make and get. I guess just a lot of pride or fulfillment of making a difference for you, making a difference that you can do and be more successful for your family, for your co, for your team. And I tell people that when you sit there and go with my shop's, got five people or eight people, I says, no, think about them and their family. You've got 20, 30 miles that you're really responsible for. That's a big burden. That's a big responsibility. Financially. We want everybody to get the best and the most out of it. So training, taking advantage of today's class. Other resources and things that are out there. They're huge. It's huge. And just as you look at many top business people, professionals, athletes, whatever, all have multiple people in their lives, helping them be the best they can be. I just say people why wouldn't you take advantage of some of these things? David Boyes: Yeah. Wayne Marshall: And make that investment. David Boyes: Yeah. There's a, the professional sports is such a great example for it, and I think a lot of people. They wait until it burns 'em, until they get to that point. Yeah. And it recognize that carving out the time for personal development and training plan, it can be challenging. Who knows? Maybe that's an upcoming topic that we can collaborate, couldn't collaborate. Like why we ignore this and what can happen and maybe what's happening internally for us, why we might wanna avoid it. 'cause sometimes it could be like, I'm not comfortable because I don't know this. And I'd rather just set that aside now and hope it doesn't burn me. But if we can get ahead of that and continue to build. I think most folks would agree that's gonna put you in a better spot. People always have things to learn. Things are changing so fast in this industry and look it up. If you choose in terms of the way our brains work, you're losing information, you're forgetting it over time. So if things are moving forward and we're losing stuff, you gotta stay on top of it. So if you think you've got it all figured out. Perhaps today, but I would argue it's in your interest to stay ahead of it and plan for the future. Wayne Marshall: Yeah, it's it's unfortunate we get those phone calls where. Someone says we're desperate. David Boyes: Yeah. Wayne Marshall: My business is struggling. I don't have, I can't make payroll this week coming up. I can't pay my parts people. I can't. And you gotta help me. You gotta save me. And it's unfortunate that, oh, I just wish you would've called, three months earlier, six months earlier, there's so much we could have done. But you're to the point that you're so close to the end. That it's hard to turn it around. Yeah, again it's no different than we always talk. Just being focused. Great industry events are out there, great opportunities, things we're trying to do, things you're trying to do how we're trying to do it together to move that needle. 'cause it hurts me to hear that person who says they're in that tough of spot and we wanna help, but we know that they're in such a bad spot. It's just hard to get 'em to pull out. And to turn it around in that short of a window. It doesn't take a long window. But man, if we could have just had that extra David Boyes: Yep. Wayne Marshall: 60, 90 days, we could have saved it. We could have made a difference. So yeah, I think we beat up the importance of. Training and continue the development of content and education to keep you top of mind and keep it fresh. And I know we're getting down to those last minutes. Hour went by, click. I told you it would. David Boyes: Yeah, absolutely. Wayne Marshall: I said we'll get going and we'll start talking about all these things, but yeah, I mean there's just so many good opportunities. You just don't wanna see anybody miss out. And we wanna be able to deliver. And sometimes our industry doesn't have the best reputation with the consumers, so this is an opportunity to sit here and reinforce it. I don't think, and I tell, we tell this to our clients, we tell it to everybody. When people come in. And you got customers coming in, let 'em know that your techs are certified in this. Put that certificate up that your service advisor went through this training, this program. These are experts. This is a person who can, you can trust to consult with you. To give you the best and the most you need outta your car to give you that longevity. As many statistics next to your house. It's the second largest purchase unless you buy a big boat. It's the second largest purchase that you make without a car. You don't go to work. Unless you work from home. But it's so important. At least you got a house that's still there, but your car does so many more things for you that helps you keep your house. Because if you can't go to work, you're not gonna get paid. And if you don't get paid, you're not lose your house. So your car's invaluable, valuable asset. You gotta take care of it. And we as an industry can do even better by being smarter, better with our understanding the training and how things go on. I know I'm looking at my watch as we get down to the end. So what are some of your final words of wisdom? David Boyes: Building one, one on one thing you just said right there. Another tool that, that we have enjoyed rolling out, for some shops that have done it, is building up what you said with certificates and so forth with some of the gamification I referenced earlier. People can highlight that stuff. Think of, taking an Uber and looking at their star rating. We've got ways where we're able to represent, here's the topics that, this technician, the service providers graduated. That information can be made available. For those customers waiting in that shop, it might just be a little thing that indicates, Hey, these folks are continuing to grow. They're recognizing those things. But I would say from a closing thought perspective, we're again thrilled to be working, with you and your team. On taking this to an to another level. Again, really focusing on the broader shop as a whole. Trying to, improve knowledge, engage these folks, get them to be asking other questions as well. So we think there's, a lot of opportunity ahead and again we look forward to collaborating with other groups and then to try and, grow this industry. Wayne Marshall: This was very valuable and I know we have as the institute here as a whole and even outside as we've been to events. Yeah, I talk about today's class and people go, man I need my tech to need this and that. Talk to today's class. And I know we've recommended, and I know those clients that I've talked to who have engaged into your services. I've had not one complaint. Everybody's been happy. It's made a difference. They're getting a good return on that investment. It, I know it's not overly expensive, but it's something that moves the needle and it truly is a measurable reportable. We say all the time, what, what doesn't get measured, doesn't get managed. And anytime you can get those measurements and you get that data points, it gives us as leaders of a company, an opportunity to manage it better, to have those different and better conversations. Staff. 'cause all we're trying to do is move it up the ladder a little bit, just a little bit more, a little bit more, a little bit more. The old thing of is, man, if I can just do 1% more every day, we work 20, 21 days a month on average, that's a 20% increase. By the time you get to the end of the month, what would you do with a 20% better effort or better increase in everything you're doing? That's just by doing that little bit 1% more every day. No, we're. We're happy and very ecstatic to be able to work together on the way we are to help feed some of the content, what you fed back to us that's making a difference with our coaching clients and how we engage. So it, it's exciting and I tell people who might be listening or listen to this, I know many listen after the fact. Reach out, get in touch with today's class. It costs nothing. Nothing to sit on one of your presentations as you put the group together. And you run through the features and benefits and how you do the different things you do. Take the time. All it is just 'cause what does it take? 15, 20 minutes as you go through. It's not real long. David Boyes: Yeah. Wayne Marshall: When you do your demos and just show what's available. But the knowledge gain and the opportunity is worth your time. It's really worth your time. And obviously always, we're always here at the institute. Please reach out to us. Our staff, we're here to help in another way. Training is so much, it's just so much out there that needs to continue to be worked on things that we want to continue to raise that bar of not only the content we have, the quality of it and how we deliver it out there so that people engage, learn, and we become better. And we say it all the time, better life, better business, better industry, and if we can do all this together. We're gonna have that to where you're gonna have a great run and shop. So it's gonna make your life better. It's gonna make your business better, which only makes the industry better. So I see we are up to that last couple minutes. I thank everybody. Reach out, stay in touch. Let's just keep talking and we're gonna continue to take deeper dives. As David said, we got more topics to, to cover here in the near future when it comes around training and obviously how it's consumed and the benefits of keeping it on a daily and keeping it fresh. So last words. David Boyes: Thank you very much for having me. Wayne Marshall: So glad to be here. Thank you, sir. David Boyes: Appreciate it. Wayne Marshall: It was an honor. We'll be talking more. Thanks everybody that jumped in on the live and for those later, let's talk more. We got a lot to do. Thank you.

28 Apr 2026 - 53 min
episode 202 - Building a Diesel Shop the Right Way With David Shaefer artwork

202 - Building a Diesel Shop the Right Way With David Shaefer

202 - Building a Diesel Shop the Right Way With David Shaefer April 15, 2026 - 00:58:22 Show Summary: David Shaefer shares how he built Cold Front Diesel from side work into a full time operation. He credits his upbringing in his father’s shop for shaping his desire for ownership and freedom. His time in the Marine Corps helped him develop strong leadership skills and a focus on running the business. He explains the importance of investing in the shop’s foundation through facility upgrades and process improvements. David outlines his plans for growth including hiring expanding space and exploring product development. He also discusses how the industry is becoming more technical and requires a higher level of professionalism. He emphasizes training coaching and building trust with customers as key drivers of success.   Host(s): Jimmy Lea, VP of Business Development [https://www.wearetheinstitute.com/about-us]   Guest(s): David Schaefer II, CEO / Sales Manager [https://www.coldfrontdiesel.com/] Show Highlights: [00:00:00] – David explains the origin of Cold Front Diesel and its unique branding strategy [00:02:00] – Growing up in his father’s shop shaped his view of ownership and freedom [00:04:00] – Meeting his business partner and starting side work while employed full time [00:05:00] – Marine Corps experience forced him into business management and leadership [00:08:00] – Transitioning from side work to full time shop operations [00:11:00] – Rapid growth led to hiring his partner and scaling the business [00:14:00] – Leadership lessons from the military focused on respect and clear vision [00:18:00] – Building a high end facility to match a premium customer experience [00:26:00] – Plans to expand into manufacturing and reach beyond local geography [00:40:00] – Advice on customer trust training and investing in coaching In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  * Want to learn more? Click Here [https://www.wearetheinstitute.com/] * Want a complimentary business health report? Click Here [https://www.wearetheinstitute.com/business-assessment%7C] * See The Institute's events list: Click Here [https://www.wearetheinstitute.com/upcoming-events] * Want access to our online classes? Click Here [https://www.gearforshops.com/pages/course-library] ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com [marketing@wearetheinstitute.com].   Episode Transcript: JImmy Lea: Hello friends, Jimmy Lea here with the Institute for Automotive Business Excellence. You are listening to the Leading Edge podcast. My guest today comes to us from Michigan. This is Dave David Schafer with Cold Front Diesel. David, how the heck are you, brother? David Shaefer: I'm doing great. Doing great, Jimmy. Thanks for having me on today. JImmy Lea: Oh, you're welcome, man. Cold Front Diesel. Where'd you get the name for? Cold Front Diesel. David Shaefer: So since we're up in Michigan, cold front is just kind of a play on the weather. Um, thought it was a unique name and you know, if you Google it, you're, you're not gonna get anything but us or weather. So it's not something that people are trying to fight over. Uh, pretty easy to differentiate us. JImmy Lea: Uh, that's cool. All right, show me. So, so where are you? David Shaefer: Right there, right in the, in the crevice up there. JImmy Lea: I love it. I, so I haven't, I've been all the way from the bottom to the top, went across the bridge to the up, but I didn't get over into the, uh, the pinky area. David Shaefer: Yep. JImmy Lea: When I was up there driving around. So, uh, that's every David Shaefer: vacation area. JImmy Lea: Heavy vacation. Really? They got a lot of camps up there. David Shaefer: Yep. Um, a lot of, a lot of the small lakes and, and the big bay is right next to us, so a lot of people are traveling off here. We have like, right about a mile or two away from us is at one point the third most beautiful lake in the world. So, uh, heavy, heavy vacation area. JImmy Lea: Wow. Third most beautiful lake in the world. Well that's, you know, that's something to stand up and say, hey. David Shaefer: Yeah. JImmy Lea: So what are the first and the second? If this is the third, David Shaefer: I don't know. We're not worried about that. JImmy Lea: We don't have to worry, but we know we're the third best lake in. Right, right. Yeah. You wanna see the third best? Come on and check it out. Well David, I appreciate you being on here and talking about your experience in the automotive aftermarket. Uh, and I really want to get into this with you and your history, your past. How did you start? In the automotive aftermarket. David Shaefer: So my, my dad, uh, was a mechanic as well, and he eventually started his own shop. And, uh, so I grew up in that. He started it in about 2001. So, um. I, I kind of grew up seeing that, you know, that was a majority of my, my young life is, is kind of watching him do that, being involved, you know, when I turned 16, I got a key to his toolbox into the shop and, um, you know, that was, uh, that was my place to kind of go and, and hang out and tin around trucks with friends or whatever. Um, so kind of knew that that was something that I wanted. I saw that, you know. Maybe he didn't make the most money in those years, but he was always present. So maybe he worked a lot of hours, but. If you forgot your backpack at, at home or something, you know, it was, it was on him. Like he could, he could go do that. He could make his own decisions, you know, he could be at the games, he could do things. So yes, he had to sacrifice time other places, but he still had the freedom when, when family mattered or something like that. So, you know, at, at least there was. It was on him, you know, and, and I thought that was, uh, that was cool. There's a lot of pride in him owning it as well. Um, so I always enjoyed that. Um. I don't know how I got into the diesel side of things really. I thought, uh, I think just in the high school area. Um, that's when, you know, I graduated in 2011, so around then some of the, some of the more powerful engines were kind of coming out and, and that was in the diesel performance industry was, was kind of starting to roll around then, and it, it seemed cool. So I ended up, I knew I wanted to do something eventually. I knew it probably wanted to be more, uh. Diesel related. So I went to a tech college. Um, but once you, once you go that route, it's kinda a weird industry to get into being truck specific. So you either go, you know, all automotive general dealership, or you go construction, industrial, semi-truck. Um, so got outta college in 2012. Um, and got a job at a Caterpillar dealership, um, that was pretty local to us, so started working on semis. Did that, uh, for, for a few years and while I was there. Um, so I'm, I have a, I have a business partner, uh, with cold front here. So, um, we actually met at, at Caterpillar. We both graduated same time. Both started working there at about the same time. Um. Both liked working on pickup trucks too. So we would come in and we'd work at my dad's shop after hours on the weekends, whatnot. Um, we were like, this is something that. We enjoy doing, you know, let's, let's see if we can make this happen. Um, so we kind of started, we just started tinkering with that. And then I actually joined the Marine Corps, went off for four years. Um, and I think that was probably what set us up the most for success because we had something that we both wanted to do. Something that, uh, we both, you know, were, we're very excited about. And then. Now I'm in a different part of the country for, for several years. Right? So, uh, what was really cool about that is you hear so many issues with partnerships, right? Um, and I think a lot of them are because you both are trying to be the same person, right? Um, so what was nice is when I was gone. I'm not physically there able to do any work, turn any, any wrenches. So it, it forced me into the management side. I can do the sales, I can do the estimates, I can do the customer contact, um, I can do the books, I can do all the business stuff, but I can't physically work on anything which allowed him to solely focus on just working, just, you know, managing the, the business side. JImmy Lea: Okay. Time out. Hold on one second. Are you saying. That you were away as a Marine and running your shop? David Shaefer: Yes, sir. And, and that JImmy Lea: was, how did you do that? David Shaefer: I mean, we were, we were still, you know, he was still working full time at Caterpillar. I was still in the Marine Corps. Right. So, oh, JImmy Lea: okay. So this is, this is the after hours, weekends we're building up our own customer base. David Shaefer: Yeah. JImmy Lea: You have that flexibility. Okay, I get it now. I thought this was like nine to five and the marine at nine or something and David Shaefer: Yeah, no. So, um, JImmy Lea: so where were, David Shaefer: yeah, it was, it was a slow buildup. JImmy Lea: Oh for sure. And congratulations on doing that. Thank you for serving in the Marines. My wi uh, my daughter is a Marine. She's stationed in Hawaii right now. She's been Oh, very David Shaefer: cool. JImmy Lea: Twice. Yes. So you, did you get put in the motor pool like really quick? David Shaefer: No, so I actually, so I was at Caterpillar for three years and my recruiter was actually, uh, a motor T mechanic and he was like, dude, you'll be perfect. You'll progress super fast, you know, if you take this motor T job, I'm like. Man, I'm not trying to take a quarter of the salary and do the same job. I said, I'm gonna go do something completely different. So, um, I get in as a combat engineer. So completely different, you know, if, uh, if you've heard of that job field, it's, it's very cool. A lot of you deal with, uh, construction and explosives. So, um, JImmy Lea: oh, you know David Shaefer: that, that's JImmy Lea: every David Shaefer: child parade, right? JImmy Lea: That's every boy childhood dream is to be in for. Construction equipment and explosive, let's blow it up and let's play in the dirt. David Shaefer: Right? Right. So, um, yeah, so I, I didn't do a, a parallel field, you know, I did something completely different. I said, if I'm gonna go do it, I'm gonna do something that, you know, you can't really do in, in the civilian side. So, um, that's, that's, that's what I went for and it was great experience. Um, and I, I credit that to a lot of. Foundation of who I am now, you know? Um, JImmy Lea: but David Shaefer: totally agree. But yeah, it gave us, uh, it gave us that opportunity to really divide ourselves and, and I really had to focus on how to operate a business, how to, how to structure things, you know, where I think a lot of people get trapped in the bays. Um, yeah. So it was a good perspective. It kind of put us in our places. And then, uh, when I got back home in, in 2019, we said, Hey, I'm back. I actually went back to Caterpillar. They brought me back on. Um, and we said, let's, let's crank it up a little hotter and let's see if you know, like. Time ticking. Let's see if we're gonna do this or not. You know, and we wanted to play it a little safe. We both had homes. I was married, um, you know, working on having kids and we, you know, I definitely had a good career. Didn't want to. Necessarily sacrifice everything, I guess. Yes. So we were being kind of cautious. Uh, we knew we had a, a safety net of, you know, my dad's shop. You know, we're not the in, in the driveway in the garage. Like a lot of people, you know, we're in a fully functional repair facility. Right. So, JImmy Lea: yeah. David Shaefer: Um, gotta give him credit for, for letting us do that. Right. That was a, that was a kickstart for us for sure. Um, so, you know, we kind of turned up the volume and, um. Things started, pick up, pick up, and then, you know, you're losing on both ends at a certain point, you know, we, we started getting a lot busier. We're, we're trying to get out minimum hours, you know, at at Caterpillar, and then we're trying to do this after hours, you know, Hey, let's do it, you know, Friday, Saturday, Sunday, and then, oh, we're too busy for that. Let's do. Wednesday, Friday, Saturday, Sunday, and then it's Monday through Sunday. You know, it's the typical, I feel like a lot of people have similar, similar core things that happen to 'em when they start a business. And I think, you know, as much as people give you advice not to do, I think it's just kind of part of the game. You know, sometimes, Hey, don't drive yourself, you know, don't work yourself into the dirt. Uh, it's kind of part of the game. Hey, you know, don't, uh. Don't do this, don't do that. We don't wanna see you go through these, these hours. We don't wanna see you go through not not doing this, we don't wanna see you, you know, not charging high enough labor rate. And I feel like it's just something that, that just naturally happens and it's getting out of it that's the most important. But, um, yeah. But anyways, uh, you know, we, we progressed and we got to the point where we needed to make a decision. We were gonna jump in or not. Um, and, uh. Since my dad was still, my dad was still working, we were basically renting out, uh, a section of the shop, if you will. Um, and I said, well, I'll go first, you know, and, uh, that way if something happens, at least I can fall back. I can work with my dad, you know, we can make something happen there. Um, so I came over, started doing full-time operation. Um. And so then I was doing it all except Caden would come in and, and do some of the wrenching in the after hours. Um, and then it was, I mean, it was five, four or five months and it was like, I can't keep up. So he came over and uh, we kind of started growing from there. JImmy Lea: Oh, congratulations. What happened to you guys when COVID hit in 2020? David Shaefer: So we, so we started January of 2021, so, uh JImmy Lea: oh. David Shaefer: We were kind of, that, that was kind of fizzled out by then. JImmy Lea: Yep. David Shaefer: Um. So, you know, that was as, as far as like, repair, it didn't really affect us, I would say, as far as like starting, starting the business or having to shut down or anything like that. JImmy Lea: No. Good for you. Good for you. That's, that's awesome. That's awesome. And so you've, you've built the business, it was you and, and then Caden came in and, and what does it look like now? What does it look like today, the footprint of your shop? Are you still renting from pops or what? David Shaefer: So, uh, at this point my dad's been coming up on retired a, a little over a year and a half. So, um, he was, he was, we were kind of working outta the same, we actually added on these two bays right here. Uh, we added on our first year, um, and. Then we kind of started pushing him further towards the front, you know, because he was trying to slow down. He was getting ready to retire. He, he knew, uh, we were gonna buy the, the facility from him and, and all of his equipment. Um, so he was, he was 60, you know, he, he just turned 62. Uh. He turned 62 and then like two months later he retired. So, um, oh, JImmy Lea: congrats. David Shaefer: He was, he was trying to slow down, um, and we were trying to ramp up, so it kind of worked. He was, he was coming down, we were coming in. So as he scaled back to need as much of the facility we were scaling up. Needed more. JImmy Lea: I love it. So was, was pop's wrenching at 62 years old? Is he wrenching as well or did he have an advisor and a, a tech? David Shaefer: No, so my dad is, uh, is. He, he got up to the point, uh, at one point in time I think he had, he had three techs and then he was kind of in that, uh, advisor position, if you will. Um, I think he primarily liked, you know, he, he didn't like having to manage people, you know, he kind of liked doing his own thing. He's, he is very, very good at what he does, found his niche, um, and, you know, made it, made it to what he wanted to be. I think when it, when it got to several employees, he didn't really. Enjoy the, the management side of, of dealing with all the, the people, you know, so, uh, or, or dealing with the employees and all the stuff that comes with that. So, um, he was usually happy with like one, one other employee kind of thing. So, um, luckily COVID kind of took them outta place. They moved, they went somewhere else. Um, and, and that kind of gave him the ability to, to scale down and prepare for retirement. JImmy Lea: Yeah. Very cool. So, uh, just because you own a business doesn't mean you're a good leader. I've said this a few different times. What do you think has influenced not, what do you think, what has influenced your leadership style in running your shop? David Shaefer: So, I would say Marine Corps was, you know, one of the most blessed things that I got out that was leadership and, uh. I, I saw very good leaders and I saw very poor leaders. And I, especially in my, in my early years and then I experienced a lot of poor leaders and it, and it helped me reflect, 'cause it's so leadership heavy, especially more than any other branch. It's very, uh. Very heavy on leadership, even at very low, uh, low rank level. Um, so I, I learned a lot of things there. Um, and I progressed pretty fast in that, and a lot of it was my leadership style, I guess, um, would, was a big part of it. And I learned that. You know, leading, being in a, in a position of, you know, a higher position or a higher rank, or a, or a, you know, higher level boss, whatever it is, right? That doesn't mean that you get any kind of, uh, respect for that. Like there's, there's a difference between respecting a physician and respecting a person, right? Um, so you know you're gonna have a better time getting people to. To assist you to go with you to complete or fulfill your visions or your dreams or, or the, the task or the mission, whatever it is. If your team respects you and wants to work with you or for you, right, and you can't hide behind a, a position or rank. In order to do that, they have to respect you as a person too. And that a lot of that has to do with being somebody that they want to emulate, somebody that they want to be like. Um, and I think you know where it goes wrong a lot is like, Hey, I'm the boss. I want you to do this. That doesn't work. You know? Hey. We need to accomplish this. Hey, understanding why is, is very important too. I think. Um, people wanna know why we're doing this or, or what is the goal. You know, you don't wanna just float into the abyss of, we're doing this for why, and where are we going and what are we doing? You know, they, they, they need a more solid foundation led by somebody that they, that they respect. JImmy Lea: Yeah. My father has always said, everybody's a good example. You're either a good example of what you should do. Or you're a good example of what you shouldn't do. And with a lot of those bad leaders, you, you learned, okay, I don't wanna do that. I don't want to do that, I don't want to do that. I know the right way to do it, uh, to be a good leader and, and sharing the why. Oh man, that, that helps with the vision, that helps with the, the enthusiasm, that helps with the motivation of everybody on the team. We're all going in the same direction. David Shaefer: Absolutely. JImmy Lea: Oh, that's fabulous. So what, what's the footprint of the current shop? You added on the two bays, which I see behind you, you got a lift and it looks like a flat. David Shaefer: Yep. So, um, a, a very original facility, when my dad first bought this property, uh, in 2014, it was, it was three bays. I, I call 'em XL bays. So each, each bay is, is roughly 20 foot wide by 44 or 50 foot deep. So a lot of room in between stuff. We're not, whoa, we're not post to post, you know? So, um, JImmy Lea: it's on this double. David Shaefer: Yeah. Yeah, it was, uh, so it was originally three in 2017, he added on two more bays, and then we added on these two, and we went a little bit deeper here. So we're, we're seven bays in total on, on this building, um, alignment rack, uh, five lifts. Alignment rack, five lifts, and then this, this bay next to me is our Washington Detail Bay. Um, so, and any truck that we work on in some form or fashion, it gets detailed before it goes back to the customer to complete the experience. So, um, that was a big, a big thing for us is having the efficiency of having a true dedicated Wash Washington Detail Bay. Um, so that's, that's a footprint here. We're roughly 7,500 square foot, uh, in this building. And then we. Our good majority of the way through completion of, of a new building that's about 3,200 square foot, uh, on the front of the property, three really big bays. So it's 60 by, uh, sorry, 50 50 deep by 64 wide. So 50 foot deep. We can power two pickup trucks back to back and let 'em, you know, you can store 'em pretty easily there. So, um. That building, we'll move our alignment rack into that. Free up another bay here. Um, alignments, you know, two buildings, you don't really wanna have two buildings. It makes tooling equipment. You know, it makes stuff weird there. Alignments you gotta pull out, pull back in. Anyways, so we're gonna put the alignment over there, storage and then we're actually building a gym in the first part of it, so, JImmy Lea: oh, nice. David Shaefer: Excited to do that. But we've done a lot of remodeling this year on, on the exterior of the facility, the office space, and then new construction. So. JImmy Lea: Nice. Nice. And so, and you, you're, are you, so you're building the new building, are you also in the middle of remodeling the current building too? David Shaefer: Yeah, so slightly, you know, a lot of, you know, the, the back four bays are, are brand new. Um, and, but the, the exterior was kind of dated, you know, uh, it was like a light blue steel on the bottom and. The back part is brand new, and then the front part that everybody walks into is like, kind of faded, you know, from 1998. Right. Um, so when we built the new building, we said, Hey, this is a good chance to, to refresh. So we did like a, like a slate rock on the Wayne's coat on the bottom part of the building. And then we had. All of the Wayne's coat on the, the main shop taken off and, and upgraded to that, um, put in a better front entryway to the shop. And then, um, our most proud possession, we put in an 80 foot tall flagpole, uh, at the front entry. So JImmy Lea: 80 foot. So when as an as a boy scout, I earned the rank of eagle and I was 13. My Eagle project was to put up a flagpole in front of the church. David Shaefer: Oh, very cool. JImmy Lea: I had to get wet signatures. I had to work with architects, I had to work with engineers. They had to know the specs of the flagpole. Yeah. We were thinking grab an old, uh, street light that had been run into, cut off the bottom, plant it in the ground, and you're good to go. Oh, nay, nay. It's quite the process to get an approval. To put a flagpole up in front of any structure. David Shaefer: Yeah. JImmy Lea: And an 80 foot the flag you can fly on that is massive. David Shaefer: Oh yeah. Yeah. JImmy Lea: That is cool. Did it take like an act of Congress to get your approval for an 80 foot flag pole? David Shaefer: No. So like, we're actually positioned in a pretty good area. Okay. We're pretty relaxed, uh, pretty relaxed township. There's no regulations on that. Um, and you know, they saw what we've done over the past couple years, improving, uh, cleaning up. And, you know, with the remodel of the building, we said, Hey, we want to do this. We want. You know, any, everybody knows where we are, whether they do business or not. That's, you know, and there's actually, JImmy Lea: you, you, you have become a landmark. You, you're a mountaintop. David Shaefer: Yep. We are the, the guys with the big flag. You know, so, um, that's, that was part of it too, is we knew we wanted to do a flagpole, but we said, Hey, let's do the biggest one we can. 'cause we want to, we want to be known. That, that that's us, you know? So, JImmy Lea: yeah. David Shaefer: Good for you. Um, but it, it was pretty easy. It, it, uh, we didn't get a whole lot of flag for it. Everybody was supportive of it, so, JImmy Lea: oh, yeah. It was cool. That, that is awesome. In, uh, St. George, Utah, there was an RV park that put up a very, very large flagpole, and they didn't get the city permits, and the city came in and said, Hey, you're gonna have to take this down. Oh, you're anti-American and you're anti, no, no, no, no. This is permits if this thing falls down, because you guys didn't put it up right. There's gonna be some hecka lawsuits. So it's not about patriotism. This is about safety. David Shaefer: Right? Yeah. JImmy Lea: But they, they, uh, they, they David Shaefer: jump camping world. 130 footer, I think is what it was. JImmy Lea: What, what's, David Shaefer: I think, I think it was 130 foot, that one. Camping World, I believe is the one that you're talking of. Yeah. It's huge. JImmy Lea: It is. It's massive. And you see it from the freeway. Yeah. And they've got a massive humongous flag on there. And when the winds blowing, oh baby, that's Oh, yeah. Loud. It's, it whips wh David Shaefer: Oh yeah. It cracks. JImmy Lea: Oh yeah, it cracks. Yeah. Well man, that's awesome. Congrats on on living in an area that's gorgeous. You're, uh, cold front up there in Michigan. It must be gorgeous up there all the time. David Shaefer: Absolutely, absolutely. JImmy Lea: Get some lake effect. Uh, are you guys buried in snow right now or is it pretty David Shaefer: Uh, it's, it's been weird, weird, uh, winter this year. It, it comes heavy and then it was raining the beginning of the week and, and JImmy Lea: it's all gone. David Shaefer: Coming back again. Yeah. Yeah. Now it's snowing again today. So it doesn't know what to do. JImmy Lea: No, that's wild. Well, congrats on the, the expansions, the growth. David Shaefer: Thank you. JImmy Lea: Uh, it just sounds like you're doing extraordinary things up there in Michigan. Congrats. This is super awesome. So what, what is the future for you, David? What is your three to five year plan look like? David Shaefer: So three to five year, um, I would say right now, um, you know, all that stuff sounds good and cool, um, and sounds exciting, but obviously, you know, we're young in business and you gotta pay those bills too, right? So, um, I'm not saying we're sitting over here and don't know what to do with our money, you know? Yeah. You got JImmy Lea: rolling in it. David Shaefer: Yeah. No, we've, we've invested heavily into our. Our foundation system. So, um, we wanted to make sure that, you know, we do high-end white glove repair. Um, we're, you know, we consider ourselves top tier. We do typically more involved repairs. Um, so we're, we, we we're known for our quality of work and we needed to make sure that our facility, uh. Reflects the quality of work that we do, right? JImmy Lea: Yeah. David Shaefer: Um, we have to make sure that our facility is on, on, on par with our brand that we've built. So, um, you know, these, these last couple years have been, Hey, we have things in motion, we have things, things working, but let's invest in the foundation. Let's make sure our facility is ready for growth, our processes are ready for growth. Um, make sure that, you know, we. When you come into the shop, it is what you anticipate coming into, uh, especially when you're searching those, those higher end clients, uh, or the people that do care about value over price, you know? So, um, you know, it's been, it's been a lot about building the foundation to, to grow from there. So, you know, we've gotten to where we're pretty comfortable there. And then this year is, is about building up our staffing a little bit heavier. Um. So with that being said, three to five year plan is, you know, our, our foundation is set with, with facility up staff. Um, and, you know, now work on, on getting our car count up now, work on getting our sales up, um, and judging by the base space and, and kind of projecting, um, you know, our growth over the last couple years. I anticipate, and I hope that within three years we start feeling constraints of size and we have to start thinking about moving facility or doing something. We're kind of tapped out on building on here. So my hope is that we continue our growth on the same trajectory and we have to, we start feeling, uh, we start feeling the pains of. Of getting some of the inefficiencies back by not having enough room. That's my goal. Um, so the five-year goal is, is to be searching, actively searching or, or in a new, bigger facility Is, is what I'm, what I'm shooting for. Um, JImmy Lea: oh, congrats man. David Shaefer: So as far as that's, that's kind of that side as far as, you know, uh. Business type things. Obviously grow our repair facility, you know, grow, uh, grow our business. But, um, we wanna work into getting into at least some light manufacturing or offering some products of our own, uh, to be able to expand our reach. You know, we are, we are limited by geographic location, so we're a peninsula. We're on a peninsula and a peninsula, um, limited by a lot of water. Michigan is very. Interesting because you have wearing the rust belt, so vehicles don't last as long. Uh, so you investing into that vehicle. It, it is hard sometimes because they're not worth it after so long. So, um, the, just some geographical things we, we do have to keep that in mind of what is our true potential on, on overall growth, you know, over 10 years, over 20 years, is that gonna support continual growth? Um, so we're looking at what can we do to expand our region, um, and is, is having part sales of our own or getting onto e-commerce. You know, can that kind of help bridge some of that gap? So that's something that, that we're starting to, starting to get a little bit more involved in over this year. JImmy Lea: Oh, dude, that's, that's a whole lot of fun. So, are you gonna get a CNC machine? You're gonna start fabbing your own brackets, your own braces, your own parts and pieces. What, what does this look like? David Shaefer: So right now we've, we've, we've, it's been an idea for of ours that that's something that we wanted to get into. Obviously when you're still pretty fresh in, in, in business, you gotta fix, you gotta fix trucks and get 'em out the door, you know? Yeah. So, focusing on all this other stuff, uh, the, the core of the business is, you know, uh, be a solution for the customer and, and. Fix their, fix their vehicle and get 'em back on the road. So, um, can't be overly distracted, but we gotta, we gotta start making time and, and plans, right? So, um, right now my, my, my brother and his in-laws, they actually own a own a machine shop, uh, outta state. And so we have a little bit of an in, I guess you could say, um. With being able to get some products manufactured without having to take on the full investment of, you know, machinery. Buying all the machinery. Right. Oh, yeah. On, on a, on a starting basis, you know? So, um, at least we have somebody that we can. Refer to get some guidance from, talk things over with. Yeah. Um, and figure out what products we can bring to market, what makes the most sense, um, and then kind of grow it from there. So we actually have had some more in depth conversations about what that looks like over the last week. So. JImmy Lea: Bro. That sounds amazing. That sounds awesome. I'm, I'm so excited for you, for you, I David Shaefer: put it out there, so now I gotta, I gotta make it happen. JImmy Lea: Well, and, and that you've got an in, you can say to 'em, Hey, look, okay, send me six of this product and six of this product. This one's super popular. I want a couple dozen of these. Right. Uh, you know what? I only need two or three of these. You, you are, you're able to really hone in on and not, and now all you have is inventory. You don't have the machinery to do it. So, uh, yeah. Super. Awesome. Congrats. Where do you see the, the future of the industry going as a whole, whether it's auto repair or diesel repair? Diesel is in your back pocket. Where do you see the industry going as a whole? David Shaefer: So. Obviously I'm still pretty young in this, um, but I did, I did get to see, you know, my, my, my dad grow up through, you know, grow up through this. So, uh, I would like to say I have a little bit of depth of understanding at least. Um, but one thing that I, that really sticks out to me that I've noticed. Is as these vehicles and, and trucks are kind of dumb compared to some of these newer cars, right? Uh, they, they seem to lag a little bit farther behind. But what I see is there's, there's more electronics, there's more, uh, circuitry, there's more modules, there's more complex systems. Uh, you know, especially we, we dive into the fuel systems of a diesel truck. I mean, it's emission systems. It's, it's, it's a lot and it's. It's truly not mechanics, it's technicians. It is, it is a profession that requires, you know, a a a wealth of knowledge and experience and, uh, eagerness to learn and to advance. And, uh, we're, we're getting to the point where things as simple as a break job with the electronics that are in them now. Aren't what Jimmy Joe is gonna be doing in his driveway anymore. So as the industry gets more complex and more advanced, I feel like it's, it's at a turning point where a lot of the, the old guys that didn't want to get on board with electronics, a lot of, they didn't want to get outta carburetors and they, and, and. Name a car with a carburetor. Not very much. That's, you know, so, you know, and then they didn't want to get on with electronics and modules and, and those people phase out over time. And it, and it, and if you are willing to advance, you are willing to invest into the future. Uh, it gives you a lot of opportunity for market share. So I think you add on. The, the electronics and the need for information, knowledge, equipment, testing tools, um, it's, it's also not only pushing out a lot of the repairs from the, the shops that don't want to advance, but also the do it yourselfers. So I think, like I have this feeling that we're, we're really on a cusp of that next generation of people that didn't want to evolve fizzling out. And also the, the do it yourself. We're in a heavy do it yourselfer industry. The, the diesel world is, you know, heavy with those people that are blue collar, that have a, have a know-how and willingness to do it, whether they're good at it or not in some cases. Right. Um. But I kind of see that. So if you get on board and you do invest into training and, and learning and, uh, the technology and the equipment, I think we're at a point where now we're not mechanics grease monkeys. We're not the the shop down the road. We're a true, serious profession that. And Bill what we need to, to be a profitable business, you know? Um, I think the people that really get on board and, and, you know, a lot of the, the more automotive hospitality thing is, is taking a little bit stronger hold now I think as well. Um, so these, these $80 an hour shops are, you know. Not as much of a competition, uh, to us as, as they may have used to be. Um, and now we can justify being able to, to work in more profitability into the business model. I think. JImmy Lea: Yeah, yeah. You, you have a different way, different business model, uh, operating compared to, and, and that's the beauty of it too. You know what it costs for you. You know what you want to be able to provide for your family, for your technicians, for your service advisors. You want, you know, what kind of life your business can provide to them and what it costs to provide that, and you have to charge accordingly, right? JImmy Lea: Those shops that are operating sub one hundreds. On their labor hours, they, they don't know it, but they're one sneeze away from bankruptcy. They're one sneeze away from closing the front doors. One catastrophe happens and they're out of business. David Shaefer: Right. And unfortunately, the, the, you know, the consumers at that point, not as much the clients, but the consumers at that point are typically not as, not as easy to deal with as well. So I think that's something to consider too. JImmy Lea: Yeah. So, uh, uh, learning, learning is a constant. We are constantly learning leaders or readers. You're probably reading quite a few books, but into training. Where do you go for training for the diesel, and do you take your technicians with you, or what do you do? David Shaefer: So, again, pretty young into it. So we're, we're trying to. You know, we're trying to get as involved in that stuff as we can, um, and grow into where we're doing it more consistently. Um, so I'd say. Three years ago or so, the first thing that we started with was, uh, if you've ever heard of Thoroughbred Diesel, they're a wholesale distributor. Um, so obviously you guys are, know them well. You, you deal with a lot JImmy Lea: of people. David Shaefer: We do, right? So, JImmy Lea: diesel's been there twice and, and yep. Presented, uh, just phenomenal, well, well received. David Shaefer: Absolutely JImmy Lea: diesel industry. Yeah. David Shaefer: Yep. So, survivor, thrive, uh, Chris here at, at Thoroughbred is, is is the big driver for that. But the whole team in general, I can't say enough good things about 'em. But, um, that was our first real, like, training event, you know? And that was like a year in and we're like, oh, wow, this is. This is eyeopening, like holy cow. Because we were stuck in that we gotta be cheaper than somebody. 'cause we're just a couple young kids, you know? And, well, I can't charge more than a map, you know, how do I do that? They can look online, you know, and then. That, you know, it was, it was that price look instead of how do I add the value look, you know, so we dove extremely deep into how do I provide value over price from there. Um, and then that turned into vision. Um, so, you know, vision and, and, and Survivor Thrive were two big ones. And then what's, you know. Now plans for A STA or you know, local, you know, trying to expand our networking as well. There's, there's a lot of resources, um, just through local shops coming together, uh, to, to put on training, you know, um, and, and kind of bring everybody together for that instead of having to go to a, a convention or something like that. So, um, we really try to do anything that we. We can, you know, that we can justify or afford or time permit permits and, um, I want to get on a more consistent routine with it as well. So, you know, there's with, with the mixture of, of the events, you know, getting at least a couple people, you know, every quarter or so out to some of the bigger things. Um, but then continual, just small, you know. Meetings or trainings in between. But, uh, you know, we are, we're a smaller staff. We have five guys. So, um, it's, it's not terrible to, to get us all to a training, you know, or Yeah. But now we're, you know, we're growing into that size. We're, you know, maybe now we, we keep the shop. At least open, which, which kind of helps too. And, and bring a couple people and, and kind of mix that in. So JImmy Lea: there is a show you might wanna check out. There's two shows, uh, that I'm gonna tell you about. One is HDAW and it is this weekend in Grapevine, Texas. So imagine the scale of Vision, vision High Tech Expo. You've been there, right? David Shaefer: Yeah. Yep. JImmy Lea: Imagine that level, that quantity. And it is diesel only. Oh, David Shaefer: and that's what what's crazy is getting into it. You don't even, it's like, where, where do I even find these things? You know? It's exactly, it's interesting until you get really involved. JImmy Lea: So that's a January one. It's in d in, uh, a Grapevine, Texas. The second one for you to check out is Auto Value. They do a, a show in February in Grand Rapids. David Shaefer: So they just canceled that this year. JImmy Lea: Oh, no. David Shaefer: Yeah. Yep. It's 'cause I, we went to that the last two years. Yeah. And we're like, perfect. There's not much going on during the winter. JImmy Lea: And yeah, David Shaefer: we went to that and we're like, perfect. Well, this'll be a perfect little small one day deal. And then a couple months ago they, they announced that they're not gonna do it JImmy Lea: ever again, or just this year. David Shaefer: I, I'm not a hundred percent sure on that. I, it sounded like it was one of those things where. They're gonna do away with that, but they're gonna try to invest more into smaller, probably online or, or, you know, smaller trainings type sessions. JImmy Lea: It, it, it, David Shaefer: I think there's something worth going to something. JImmy Lea: There is, there absolutely is. The hands-on is, is paramount, especially in our highly tactile industry. You've got to have that, um, hands-on experience. To do it online is great and you get the value, you get the, the theory of it, but you don't get that tactile. I get to touch and feel and work and torque. Uh, it's, it's totally different. Um, or the David Shaefer: networking. JImmy Lea: Oh, networking's huge. Yeah. Uh, a STA if you do that one in North Carolina. That would be a good one. There's a lot of, uh, diesel dudes that are showing up for the, that one. David Shaefer: Yeah. Yep. JImmy Lea: Cool. Very cool. Well, that's awesome. Congrats man. Alright, so if, if you were to give yourself some advice, and this is you, you are now at a level that you have lots of water under the bridge, you've learned a lot. Yes. You know that there's still a lot for more for you to learn. You're learning a lot. If you were to give yourself advice today because you're starting your shop today, what advice would you give yourself starting your shop today? David Shaefer: I would say. Servicing the customer and providing value is number one, 'cause that that is what it's all about, right? So, um, sometimes you gotta do what's right and it, it's way easier to swallow the pill and, and eat it rather than try to try to lie to the customer. Like, there's, there's nothing worse that you can do, you know? So it is just being honest and, hey man, you're gonna get through. Whatever it is. So if you provide value and you have good intentions and you wanna service that client to the best of your abilities, even if something unforeseen happens, uh, it'll all work itself out. As long as you tell, you know, as long as you go through, uh, Hey, I'm gonna build this off a trust and I'm going to, uh, um, I'm not gonna be embarrassed about telling my side of the story of anything, you know? Um, but number one is obviously providing that value. Um. Focusing on, on training and then I think, you know, get yourself to the position where you can afford to, to have a coach or to be involved in some type of coaching. It sounds like a lot of money, but. You're missing out on a lot of money because you, you're buying experience, you're buying decades of experience, you know, and, uh, yeah, you see that, that bill come out every month or so. Um, but you gotta take a step back and look where your numbers go to over the course of that year. And, uh, there couldn't be anything better that I've decided to do, you know? JImmy Lea: Nice, nice. That's phenomenal. Who are you coaching with right now? David Shaefer: So, I coach with elite. JImmy Lea: Nice. Congrats. Who's your coach with? Elite, David Shaefer: Doug Callahan. JImmy Lea: Nice. I don't know, Doug, that that's awesome. David Shaefer: Great. JImmy Lea: Yeah, that is good. That is good. Uh, and that's what we're about here at the Institute for Automotive Business Excellence is helping you to build a better business, and the result is a better life, a better life for you, your, your employees, your technicians. Not only them, but also their significant others and their children. It's a better life for everybody. Even your customers, your clients have a better life because you've built a better business, better business, better life, better industry, David Shaefer: absolutely. JImmy Lea: That is exactly what we're all about. And helping you to make sure that you're, you are getting that return. David Shaefer: Right. ' JImmy Lea: cause if you, you don't know what you don't know. David Shaefer: Absolutely. JImmy Lea: And a coach is there to help you learn those things. You don't know. So you stay on that right path. David Shaefer: Absolutely. JImmy Lea: Straight and true. Oh, David Shaefer: that's awesome. Don't be afraid to, to be friends with other auto shop owners. You know, there's plenty of work out there, there's plenty of work out there. Um, you know, if you can help each other out, it all comes full circle. And a lot of the times it's, you know, realizing that, you know, there's. There's better ways to lift up the whole industry and it works out better for everybody, you know, so. Oh JImmy Lea: yeah, absolutely. David Shaefer: Um, I think getting to know other, other shop owners, start out with ones that aren't in your state, and then get more comfortable and get to the ones local with you, if that's what it takes. But JImmy Lea: if that's what it takes, David Shaefer: having, having friendships in, in the industry is, is a humongous. JImmy Lea: It is, it is. 'cause you may have tools they need, they may have tools you need in a moment's pinch. You may have cars that need service that you just can't get to and they've got availability. Mm-hmm. Friends in the industry, lock arms, lock arms and grow together. It's, it's, it's it, it makes for a brighter future and it's better when we all go together than if we try and make this journey individually. David Shaefer: Absolutely. JImmy Lea: David, thank you so much, brother. I really appreciate your time. Appreciate your insight. Thank you for your service. Thank you for helping keep our country free. You're awesome, bro. Thank you so much. David Shaefer: Appreciate you having me on. Thank you for the time and uh, you guys set the institute, keep doing what you're doing 'cause it, it's makes bay huge impact on the industry for sure. So we appreciate everything from you too. JImmy Lea: Awesome. Thank you brother. All David Shaefer: right. Take care.

22 Apr 2026 - 58 min
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