"A lot of the shops are finding the current environment very healthy," Gunn said.  "People are fixing, keeping, and wanting to make there cars run longer, and that bodes well for our industry."

Gunn said he is seeing customers divide into two groups, those who are choosing to fix everything and those choosing to do almost nothing.

"You are going to have to get into your customers' minds and find out what they are thinking," he said.  "What are they doing?  What are they feeling?  We need to quit doing all of the talking and listen to them." 

For instance, Gunn said, some customers may be choosing to park their pickup but putting many more miles on their Honda.

Once a shop owner or service adviser has taken the time to learn about customers' desires and how they are using their vehicles, he can tailor his offerings with that information and educate the customer on how the shop can best meet their needs and wants, Gunn said. 

 
"More than at any time before, we're in the information business," he said.  "We need to educate our customers.  We need to provide them with the information that they need to make the proper decisions for how they are using their vehicles and how long they are planning on keeping them."

One of the things that many shops are learning as they listen to their customers is that the way they have always done business did not necessarily consider their customer's convenience, Gunn said. 

"One of the biggest things that is hurting independent repair shops is the hours that they are open," he said.  "Shops have to understand that they're in a retail business.  Shops expect to be open 8-5, Monday to Friday, and still attract customers.  The dealers and chains all have evening hours and weekend hours.  My car doesn't know if it's Saturday or Monday.  If you're not open when I need your service, I'm not coming to you."

When economic conditions soften, it is the shop owner's job to manage the situation, Gunn said, making sure there is a realistic budget in place and knowing the numbers that the shop needs to accomplish on a day-to-day basis.

"I think the key to this environment is to plan," he said.  "Make sure your employees know your plan and buy into it and know that you are not just leaving it to chance."  He suggested that shops hold regular meetings to keep their staff apprised of how things are going, to put a positive spin on what employees are hearing, and to tighten up the company's service process.

Gunn said that he believes that a lack of financial understanding and planning is probably the most common and dangerous problem among shop owners today.  He said he believes that as few as 25 percent of shop owners really know what their numbers are and have a budget that they are working to accomplish. 

 
"There are really only three ways to improve your situation," he said.  "You can sell more, increase your gross profit margin, or reduce costs.  Normally it takes a combination of improvement in all three areas.  Do you understand all three areas and what are you doing to improve in each of them?"

Gunn stressed that owners need to be looking at the numbers from the day before, particularly their total net profit, and making adjustments immediately when needed. 

"The shop owner who only gets a P&L from his accountant every three or four months is going to go out of business," he said.  "You need to know what you're numbers are every day.

"If you don't understand your numbers, then there is nothing else that you can really do to fix your business," Gunn said.  "You can't outrun stupidity.

"A lot of guys just don't know where to start," he said.  "It doesn't mean they're bad guys; they just haven't learned this yet."

The importance of understanding the financial side of the business has made Automotive Service Leaders' "Money Financial" workshop its No. 1 offering, Gunn said.

The class, along with seven others, form the Lifeline series that Gunn has developed to help owners create their own operational manual.  "Why do people buy franchises?  For the manual," he said.  "We teach them how to write their own manual that is best suited for their business.  We teach them how to take the information, much of which they have probably already learned, and actually use it to implement change in their businesses."

While Gunn said he offers the courses in person at many association events and training days around the country, he also holds "webinars" featuring the eight modules on Tuesdays 36 times a year.  The Money course is offered each Tuesday when the webinars occur, as well as 12 times a year on Saturdays. 

He said there is also a free Pay Off Tools webinar that is offered during the Tuesday webinars as well.  This class offers the 10 leadership management processes that are stressed in the other courses and allows an overview for new participants, he said. 

 
There are two other times slots during Tuesday's webinars.  One features a rotation of three classes designed for shop owners, while the other features a rotation of three courses that are designed for the service writer, Gunn said.

One of the advantages of the webinars is the consistency, he said.  "Instead of getting re-energized three or four times a year, you get 36 Tuesdays or 12 Saturdays.  One time hearing a workshop is often not enough.  This lets you process the information and then come back and clarify or expand upon what you've learned.  That's why it's the strongest training format."

On Thursdays 36 times a year, Gunn said he interviews a successful shop for his Showcase series, which shop owners can watch live or through the company's online training library.

Gunn said he also runs a 20 group for shops that are interested in taking a different approach to working on their operations.  "In a 20 group, it's the camaraderie that makes the group work," he said.  "It's not about what I bring to the party; it's about what everybody brings." 

To really reap the full benefits of a 20 group, shops must be committed to the process, which requires four days away from their shop three times a year, Gunn said.  Those that do participate also have free access to the company's webinars, Showcase interviews, and other aspects of its training library, he said.

Gunn said he urges shop owners to talk to a number of trainers and talk about the different training approaches that are available until they find one that fits them.  "I think the key is that you need to commit yourself to a lifetime of learning," he said. 

 
"It's taken them years to become a good technician," Gunn said.  "If they put the same effort into becoming a great owner, they will be able to get there business to where they want it to go."