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
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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.