Boulder, Colo. -- Jim Mueller readily admits that his business philosophy goes against the grain of many industry instructors' teachings, who urge repair shop owners to squeeze the most possible profit out of each repair order (RO). Instead of measuring profit per RO, Mueller said he gauges the success of his independent repair shop on repeat business and the amount of referrals that walk through his front door.
"My basic philosophy is to make the customer feel comfortable," said Mueller, who opened shop a decade ago. That is achieved by advising the customer of their choices, informing them of what the solution is, and allowing them to make the repair decision, he said. "It's not going to make me the highest production shop, but that's not what I want.
"We want them to be our customer rather than scaring them into a sale," he said. That approach creates loyalty, resulting in referrals and repeat business, which he said accounts for nearly 70 percent of his volume. "My customers tell their friends and family; and that's how I know we're doing the right thing."
If you don't have happy employees, they won't take care of your customers, Mueller said, pointing out that he pays his six employees salary, not commission. "Employee happiness and customer happiness go hand in hand," he said. "If you don't have one, you won't have the other.
"It gives them a steady check, and it doesn't motivate people to take short cuts," he said. "I want my people to focus on what needs to be done correctly.

"I want to be able to employ people, take care of my customers, and support my family," he said. "There is plenty of money to be made by treating people well."
Mass-market repair chains that advertise $99 brake jobs make it difficult for independent repairers, Mueller said, adding that the chains mark up the price once they get the customers in their shops. "I can't even buy the parts at that price," he said.
Many shops promote those low-cost enticements to the transient Boulder market, yet Mueller said he does not advertise.
By investing in employees instead of advertising, he said he's able to keep a steady flow of loyal customers. One of the team-building activities is sending the whole crew on a Mexican beach vacation each year to places such as Playa Del Carmen and Cozumel, he said, which keeps people friendly with each other's families.
Another strong retention tool is offering benefit packages that include vacation and health insurance, Mueller said, adding that he is planning to add 401(k).
"It's a situation that they know I'm keeping their best interest at heart," he said. "As long as the company is making money, I can treat them well and there's no reason for them to go anywhere else."
The shop conducts a variety of maintenance and repair, including heavy-line work, such as engine and transmission installations, Mueller said. In the past, he said he would have most units rebuilt, but because of warranty problems with individual rebuilders, he has swapped rebuilds with production-remanufactured units. If there was a problem, he said he usually had to absorb the cost.
Since then, he said he has switched to exclusively using Jasper Engines & Transmissions because of its high quality and a warranty of three years or 100,000 miles on most units.
"They will take care of problems, even send a new engine to get the customer back on the road and settle the problem later," Mueller said. Most of the time Jasper has what the shop needs, he said, and if it doesn't, the shop will occasionally send the original unit to Jasper, Ind., to be remanufactured.
Engine or transmission failures usually occur because of lack of proper maintenance, he said, such as not changing oil on time or replacing a timing belt.
Operating environments have a lot to do with transmission failures, he pointed out. "Transmissions have a huge job and may not live up to it," he said. "Many people don't bother to change the transmission fluid."
The shop also benefits from several manufacturer failures, such as transmissions in Ford Explorers or head gasket repairs on Subaru 2.2- and 2.5-l. engines.
Around 100,000 to 115,000 miles, the head gasket goes out on Subaru engines, Mueller said. The job is usually $1,200, but once repaired it will go another 100,000 miles. "The repair is solid," he said. "I've never had to do it twice."

When conducting that repair, he said his technicians will only use OE gaskets bought from the dealer. Subaru also offers a coolant additive that helps stem the problem, he added.
Another failure Mueller said his shop frequently sees is in GM intake manifolds on the 3.8- and 5.7-l. engines. A lot of them fail because they are now made of hard plastic and rubber gaskets that don't hold up well to the head over time, he said. Dorman has engineered a new gasket for the 3.7 l, and he said he purchases gaskets from the dealer for the 5.7 l.
If a differential needs to be replaced, he said they do that work in-house and purchase parts from Drivetrain Specialists or CARQUEST. He added that he prefers to use OE parts to do the job.
When it comes to choosing which oil to offer his customers, Mueller said he sticks with Valvoline and Mobile One for synthetic.
"There are more expensive oils, but we've never had any problems in the past," he said. "If you change the oil regularly, most will keep the engine clean."
The proliferation of fluids used in vehicles has forced the shop to purchase most of them from dealerships, Mueller said.
"You have to check and double check to make sure you put the correct fluids in," he said, pointing out that there are many manufacturer-specific types of coolant and even power-steering fluid now. "Some won't intermingle and can cause major failures." He said he relies on AllData and Mitchell 1 to obtain the proper fluid information.
For nonmanufacturer-specific fluids, he said he relies on Clear Choice Antifreeze, an antifreeze recycler and distributor in Henderson, Colo. "You have to have an ample and diverse amount on hand to have it when you need it."
When it comes to choosing vendors, Mueller said he prefers to choose those that he has a relationship with. After spending 15 years at a GM dealership and graduating from GM's Automotive Service Educational Program (ASEP) program at Arapahoe Community College, he said he's come to prefer using ACDelco parts, relying mainly on U.S. AutoForce, formerly known as T-K Distributors.






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