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Mike thought Carfix had a car-count problem. Then Matt Lofton started digging into the numbers and uncovered something much more interesting: a huge chunk of the shop’s volume was coming from state inspections that created almost no opportunity.

In this coaching call, Mike and Matt break down ARO, gross profit per hour, state-inspection-only tickets, customer retention and why simply getting more cars through the door doesn't necessarily make your shop healthier. They also get deep into pre-booking appointments, including why Matt believes it's one of the highest-return strategies a repair shop can implement without spending another dollar on marketing.

Plus: North Carolina State Fair economics, Mike's questionable relationship with fried food, SEMA/APEX, Matt's early days running what was basically a glorified lube shop, and why the piano tuner apparently has automotive repair shops beat at customer retention.

If your shop is busy but the numbers still aren't where you want them, this episode might make you look at your car count very differently.

Timestamps:
00:00 – Using AI to automatically pre-book customers
00:58 – Mike and Matt talk SEMA and AAPEX
04:35 – How automotive parts manufacturing really works
08:35 – Digging into Carfix's numbers
11:29 – Effective labor rate is going the wrong direction
13:20 – The NC State Fair is apparently hurting business
16:26 – Mike's current ARO and sales opportunity
18:53 – How much of the shop's car count is state inspections?
20:28 – About 40 state-inspection-only cars
22:56 – Why state inspections create limited opportunity
24:53 – Should shops limit inspection appointments?
26:29 – Calculating the gross profit target
27:51 – The next problem Mike needs to solve
29:13 – Why pre-booking takes months to pay off
31:57 – Treat pre-booking like compound interest
33:23 – Stop asking customers if they want another appointment
34:42 – Matt's shop was basically a lube shop
37:35 – What the checkout conversation should sound like
39:18 – Even Mike's piano tuner pre-books appointments
40:49 – Are state-inspection customers actually coming back?
41:21 – The $300 steakhouse analogy
44:10 – If there's no profit today or tomorrow, why do it?
45:23 – Replace bad car count with better car count
45:58 – Fly With the Eagles recap
49:11 – Elite Ignite 2027
53:19 – Mike's AAPEX invitation

Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HERE

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47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!

Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HERE

When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!

Mike Allen catches up with James Hornak and Nathan Ward roughly a year after their first appearance on Confessions of a Shop Owner—and a lot has changed. Their shop now has three full-time technicians, has been running roughly 180 cars a month at around a $955 ARO, and is pacing toward approximately $1.5 million in its first full year. They explain the strategy behind their controversial $29 oil changes, what happened when their first $100K month convinced them they could change roles too quickly, why finding the right service advisor has been harder than expected and how coaching and involvement in the industry accelerated their growth. Mike also opens up about the management mistake that wrecked his own shop culture, they discuss building strong DVIs without trying to sell every discovered item immediately, and Nathan casually declares that the goal for next year is $3 million. Oh—and James and Nathan finally reveal that they were behind the mystery Mike Allen shirts that had him accusing half of ASTA Expo of conspiring against him.

Timestamps:
00:00 – Mike Discovers the Mystery Shirt
01:26 – Martini Bar at ASTA 😂
02:24 – Is the Mustang STILL Broken?
04:19 – One Year of Insane Shop Growth
06:01 – Hiring Three Technicians in Year One
09:24 – 180 Cars a Month & $955 ARO
10:42 – The $29 Oil Change Strategy
12:25 – Pacing $1.5 Million in Year One
16:50 – Mike’s Shop Culture Fell Apart
18:59 – $100K Month → $60K Month
20:38 – Mike’s Best Service Advisor Was a Bartender
21:48 – Why Coaching Changed Everything
23:44 – Should They Buy a $2.5M Shop?
27:54 – Paying Off Debt & Building the “F You Fund”
28:30 – WHO MADE THE MIKE SHIRTS?! 😂
38:04 – Profitable Enough to Spend Money on a Joke
53:28 – The Free Diag Debate Returns
55:59 – $5,300 in Discovered Work
58:58 – The $3 Million Goal
1:03:03 – From Startup to $1.5M Through Community & Coaching

Tekmetric transformed my shop. Plain and simple. Want that for yours? Touch HERE

If you're like me and aren't good at marketing, don't do it on your own. Let the experts handle it. Touch HERE for more on Turnkey Marketing.

47 Consultants brings your shop’s story to life on social media, helping Carfix engage 60,000 people in Raleigh in just a few weeks. See what 47 Consultants can do for your shop, and tell them Big Daddy Mike sent you!

Elite Worldwide's Ignite 2027 is coming up in February and NOW is the time to sign up. It's happening in Vegas February 4-6 and it will be the best 3 days of your shops year when you attend. Save $100 when you use code CONFESSIONS HERE

When I used the maintenance tool for the fist time with Detect Auto, my mind was blown. My advisors had the same reaction - and then SO MUCH MORE TIME. Learn more about Detect Auto and book a free demo now!

Mike Allen and Bryan Pollock welcome Caleb McElmurry to talk about the realities of building a repair business when you’re still the technician, service advisor, estimator, parts department and owner all at once. Caleb started mobile, moved several hours away and essentially started over with a brick-and-mortar shop—and now he’s intentionally waiting until the business is consistently ready before hiring his first technician. They debate why hiring a cheap apprentice first can actually make a solo owner less productive, how many billable hours might signal that it’s time to hire, what types of jobs a startup shop should avoid and why some European cars can eat a new shop alive. Caleb also explains why his first major training event is focused almost entirely on business and service-advisor skills instead of technical classes, and the conversation turns into ASE certifications, technician licensing, customer communication, $1,000 AROs and why owners shouldn’t go home from training and try to change their entire business Monday morning. The bigger lesson: being great at fixing cars gets you started—but learning how to run the business is what determines what happens next.

Timestamps:
00:00 – Why Startup Shops Should Be Careful With European Cars
05:13 – Meet Caleb McElmurry
06:01 – From Mobile Mechanic to Brick-and-Mortar
07:09 – When Should Caleb Hire His First Technician?
09:22 – Why Your First Hire Shouldn’t Be Cheap Labor
10:05 – How Busy Should a Solo Shop Be?
13:00 – Tow Trucks, Winter & Small-Town Shop Life
16:00 – Stop Giving Jobs the “Go Away” Price
20:29 – First Training Event: Don’t Implement Everything
23:00 – Why Caleb Isn’t Taking Technical Classes
25:00 – Should Automotive Technicians Be Licensed?
30:00 – ASE, Apprenticeships & Industry Standards
33:00 – Just Get 1% Better
34:00 – Caleb’s Service Advisor Process
36:42 – Do Customers Need Prices Explained First?
38:00 – A $1,000 ARO in a One-Man Shop
39:00 – Caleb’s Plan for His First Technician
41:12 – The Difficulty of Turning the Business Off
43:13 – Late Nights at ASTA