Gearbox Podcast

Latest Episodes:

Navigating Profit Distribution and Managing Employee Performance in the Automotive Industry With Lalo Castro Aug 17, 2023

Show notes

In this episode, Lalo Castro returns to shed some light on some crucial aspects of team management. He shares his team's unique arrangement, where the net profits are divided equally among all members. Lalo explores the potential challenges that could arise if the team had more experienced members and highlights the importance of recognizing and managing employees who may negatively impact team morale.

He also delves into the crucial roles of a service advisor and an estimator, emphasizing the need for effective communication between clients, advisors, and technicians. Finally, Lalo discusses the financial side of running a business, sharing his experiences with providing bonuses to his employees and the potential trade-offs that come with it.

00:05:05 Finding answers, but no vehicle or parts.
00:08:13 Practice, self-improvement, and unrealistic expectations at training.
00:14:39 July went well, money was given as a bonus.
00:18:27 Fair, fault, team bonus, roles, group effort
00:22:09 Importance of feedback and decision-making for bonuses.
00:28:44 "Raise your rate, improve service, increase income."
00:33:55 Divide counter sales, prioritize, and advise.
00:41:13 Divorce, advisor, price, answers, biased, warranty, empathy.
00:44:29 Similarities between two things, division, bundling, price. Growth, ideas, training, seminars, and hearing others' experiences.
00:51:55 Ensure clear work orders for technicians and limit communication.
00:58:34 Marketplace protocol: Assist without disrupting current tasks.
01:04:32 Smooth schedule, work gets done calmly.
01:08:56 $200 Volvo XC 90, needs engine, salvage yard.
01:12:20 Long bed ad: engine knocks, $1,000.
01:18:58 Confusing ad for Chevy long bed truck.
01:21:58 Lalo is excited for ASTE

Rising Above: Overcoming Obstacles and Thriving in the Ever-Changing Auto Industry With Christian Mercado Aug 10, 2023

Show notes

In this episode of the Gearbox Podcast, Jimmy is joined by the passionate and highly experienced Christian Mercado. With over a decade in the automotive industry, Christian's love for helping others and giving back to the community shines through in every aspect of his work. From shifting his mindset to prioritizing assistance over being the cheapest to going the extra mile to help those in need on the side of the road, Christian's dedication to his customers is truly commendable. They delve into Christian's journey, exploring the challenges and triumphs of running a shop and the emotional attachment that drives success. They also discuss the importance of organization, flexibility, and embracing new opportunities in this ever-evolving industry.

Topics discussed:

[00:03:16] Monitor fails; the client wants honesty.

[00:06:24] Opinionated writer finds editing challenging and exhausting.

[00:16:03] Desire for success drives us to learn.

[00:19:51] Different motivations for side work are fascinating.

[00:22:15] Side towing caused conflict with the landlord and job.

[00:32:07] "Drop everything. Be there. Organize. Execute."

[00:36:44] People fear raising labor rates, unsure how.

[00:43:19] Transition from technician to owner is challenging.

[00:47:26] Forced into building purchase, driven by determination.

[00:49:30] Industry involvement and fear of failure.

[00:59:27] Running the shop is driven by giving back.

[01:04:23] Skilled labor side work undermines industry standards.

[01:08:12] Work hard, don't make excuses, be responsible.

[01:13:19] Relax, focus, and schedule; success follows.

The Value of Customer Returns for Repairs: Feedback, Improvement, and Smart Business Moves with Tyler Henry Jul 27, 2023

Show notes

In this episode, Jimmy Purdy sits down with the incredibly knowledgeable Tyler Henry for their second interview. They dive into various topics, including aftermarket car parts, the importance of vehicle maintenance, the unpredictable nature of the road, and the intriguing concept of subscription-based car services.

Topics Discussed:

[00:03:57] Out-of-town wedding guests deal with transportation issues.

[00:07:44] Unnecessary fluid changes can harm transmission.

[00:14:17] Road trips, vacations, Tesla Loop, underground tunnels.

[00:19:58] Insurance companies, registration costs, and safety features.

[00:30:52] Hated but smart business; need feedback.

[00:33:56] Maintain ongoing relationships, avoid freeloaders, and communicate.

[00:42:11] Interesting thought, asking for payment upfront. For independents, it's not a big deal right now. Most parts are available the same day but are sometimes unnecessary.

[00:45:21] OE parts popularity decline; aftermarket offers better warranty.

[00:51:36] Jeep calls me a valued customer.

[00:54:02] Hard on vehicles, losses, backups, unexpected.

[00:59:30] Luke's aftermarket clutch is not better. It's cheaper but cannot be improved. The standard gearbox is strong but not for daily use. People used to take better care of their vehicles, and nowadays, they don't.

[01:06:51] BMW offers subscription-based car services with all options included, allowing customers to add or remove features as desired.

[01:12:54] Justify the cost of the cold month, and skip expenses.

[01:15:28] Waiting for hovercrafts to make a comeback.

From Farm Equipment to Big Rigs: A Diesel Mechanic's Story With Cody Wykoff Jul 20, 2023

Show notes

In this episode of the Gearbox podcast, Jimmy sits down with diesel mechanic Cody Wyckoff. They delve into his career specializing in farm equipment. Cody shares his experience attending a sometimes controversial technical school and his decision to pursue working on larger vehicles.

Topics Discussed:

00:00:32 Diesel mechanic shares valuable experience.
00:06:29 Shop culture affects job satisfaction.
00:09:39 Techs should be treated well.
00:14:45 Disposable culture harming the automotive industry.
00:19:02 Take care of your belongings.
00:22:09 Tractors can be expensive investments.
00:28:56 Diesel engines provide job security.
00:31:01 Complexity of tractor repairs.
00:35:08 Repairing tractors can be challenging.
00:40:03 Dealing with snakes on the job.
00:46:41 Mechanics deal with customer misconceptions.
00:49:31 Maintenance is crucial for equipment.
00:53:37 Importance of a supportive work environment.
00:56:39 Teamwork and care are essential.
01:01:07 Appreciation for different work environments.

Tales from the Shop Floor with Lalo Castro of Paso Robles Auto Repair Jul 13, 2023

Show notes

In this episode of the Gearbox Podcast, Lalo Castro discusses a recent issue he encountered with a Ford F-150. After trying various repairs, including replacing the coils and injectors, they discovered that a broken bolt on the crank was causing the misfires. The vehicle started running smoothly again after replacing the bolt and fixing the crank trigger. The episode highlights the importance of thorough inspections and checking every vehicle component when diagnosing problems.

Topics discussed:

00:05:48 Importance of thorough vehicle inspections.
00:09:52 Misfire and breakdown on the bridge.
00:14:49 Different approaches to free diagnostics.
00:20:09 No takeaway.
00:23:30 Importance of pride in work.
00:26:42 Bottleneck with diagnostic time.
00:29:35 Competition is unnecessary, so collaborate.
00:36:17 Customer reviews drive business.
00:39:37 Value your time and expertise.
00:46:27 Clear communication is essential.
00:49:02 Prioritize and assess vehicle issues.
00:53:00 Shops should prioritize honesty.
01:00:31 Repairing vehicles is often more cost-effective than buying new ones.
01:02:08 Car maintenance is an essential investment.
01:06:37 Value of maintaining older vehicles.
01:14:30 Be cautious of complex sales.
01:16:10 Repairing head gaskets on high-mileage vehicles can lead to future engine problems.
01:21:22 Common sense logic in selling.

Behind the Scenes at a Dealership: Exploring the Changing Landscape of Automotive Repair Jul 06, 2023

Show notes

In this episode, Jimmy is joined by Eric Faley, a 40-year automotive industry veteran. They discuss the changing landscape and how it's the same or different from previous changes in the industry.

Topics discussed:

00:06:27 Dealerships facing challenges with electrification.
00:06:48 Jeep and Dodge are expanding their hybrid and electric vehicle offerings.
00:15:32 Changing technology in automotive repair.
00:19:52 Disposable world, longer repair times.
00:28:51 Transmission repairs are becoming more complex.
00:31:24 Rapid changes in automotive technology.
00:38:02 The future of EVs is uncertain.
00:41:25 Resistance to EV adoption among experienced technicians.
00:47:05 Importance of staying updated with technology.
00:52:20 Importance of using a scope.
00:57:50 Rebuilding hybrid and electric batteries.
01:04:09 People are disconnected from their vehicles.

Owning More Than One Business With Serial Entrepreneur Jed McClure Jun 29, 2023

Show notes

In this episode, Jimmy Purdy speaks with Jed McClure, serial entrepreneur and former wine tour driver. They reminisce about their time working together and discuss the challenges and rewards of buying and owning multiple businesses.

00:04:52 Managing multiple businesses requires multitasking.
00:05:03 Small tasks can feel overwhelming.
00:10:04 Know your internal numbers.
00:14:36 Pricing based on competitor rates.
00:19:00 Consistency and personal touch matter.
00:23:11 Customer service challenges in the automotive industry.
00:30:04 Handling difficult customers builds maturity.
00:35:41 Buying commercial real estate is challenging.
00:37:08 Commercial real estate faces foreclosure crisis.
00:42:47 Possible opportunity for discounted commercial space.
00:45:57 Real estate prices are increasing.
00:51:03 Costs of running a business.
00:55:27 Middle adulthood can be stressful.
01:00:13 Being a business owner requires dedication and responsibility.
01:04:08 Importance of tracking expenses.
01:08:37 Salesmen may have game-changing solutions.
01:16:18 Creative financing for purchasing a property.
01:17:57 Owner-carry financing for properties.
01:23:06 Owner carries can minimize seller's taxes.
01:28:05 Importance of specialized knowledge
01:33:06 Variance in professional expertise.
01:37:14 No takeaway

The Challenges of Hiring in the Automotive Industry with Lalo Castro Jun 22, 2023

Show notes

In this episode of the Gearbox podcast, Jimmy is joined by Lalo Castro to discuss the challenge of finding good help when you're busy. Lalo shares his experience of having people seem to fall into his lap while Jimmy discusses his struggles with posting ads on job sites and social media.

Topics discussed:

00:00:39 Finding good help can be luck.
00:06:00 Hiring people you know works.
00:15:45 Invest in training and education.
00:17:22 Hiring and retaining skilled technicians is challenging.
00:22:02 Communication is key to success.
00:27:19 Creating a safe space for communication.
00:33:42 Hold employees accountable for growth.
00:36:45 Set clear expectations for raises.
00:45:45 Delegate problems to save time.
00:50:25 Focus on training staff efficiently.
00:54:15 Older cars can be profitable.
00:59:22 Say no to European cars.
01:02:31 Importance of advanced diagnostics.
01:11:43 Set boundaries and stay focused.
01:13:50 Don't take on bad jobs.
01:22:22 Goal is to duplicate success.
01:27:25 Plan well to reduce worries.

Travis Smith of Custom Works in Paso Robles California Jun 15, 2023

Show notes

Jimmy sits down with Travis Smith of Custom Works in Paso Robles, California.

Topics Discussed:

Introductions. (0:00)

It’s like watching paint dry. (3:50)

Do it for one reason or another. (5:10)

Why is it hard to find welders? (9:38)

School of hard knocks and learning. (13:30)

The target market of the auto industry. (20:54)

Managing time and productivity. (26:34)

The problem with the car industry. (34:05)

Why don’t you buy someone else’s project? (37:43)

The generational gap in the industry. (43:28)

When you don’t know something. (47:39)

The importance of keeping up to date with new technology. (51:59)

How do you calculate the cost of service? (56:58)

Paying for skilled labor. (1:01:02)

Every job has to be badass. (1:07:06)

Advice for people looking to get into the industry. (1:11:42)

The Nuances of Running a Business with Lalo Castro of Paso Robles Auto Repair Jun 08, 2023

Show notes

Lalo Castro and Jimmy discuss their experiences running a business and even firing customers. They reflect on the difficulties of starting out and attracting clients and the challenges that come with transitioning from the previous owner's habits to their own.

Topics Discussed:

00:03:30 Selective clientele brings success.
00:06:49 Standard operating procedures are crucial.
00:11:02 Diagnosing car issues can be complex.
00:17:29 Importance of good communication.
00:20:37 Reviews create fear of mistakes.
00:25:03 Customers can be challenging.
00:30:06 Start diagnosing leaks from top.
00:34:30 Dealing with difficult customers professionally.
00:39:02 Be cautious with oil leaks.
00:44:30 Consider a retainer for diagnostics.
00:48:28 Negotiating car repairs can be exhausting.
00:56:11 Difficult customers should be avoided.
00:58:37 Customer satisfaction improves with experience.
01:02:27 Building a good culture matters.
01:07:20 Customer relationships are important.
01:16:50 Offer honest inspections for revenue.
01:24:39 Higher prices for quality services.
01:26:32 Implementing a parts matrix improves profits.

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