Campbell, Calif.-By learning from the best in the automotive repair business, acquiring the latest data, and adopting the most sophisticated systems available to him, Dave Kusa, owner of Autotrend Diagnostics in Campbell, said he has been able to thrive in an unpredictable market.
"Fixing a car is very similar to running a shop," Kusa said. "You need the right tools and the right people with the knowledge and experience to succeed or you won't make it. I learned a long time ago that I don't know everything, and there's nothing wrong with going to proven experts and systems for help. You can't run a successful shop all by yourself, and if you try to, you're setting yourself up for failure."
Kusa, 44, purchased Autotrend seven years ago after working there as a technician for two years, he said. He said he has more than 22 years of industry experience and is a 1985 graduate of the highly regarded auto tech program at De Anza College in Cupertino, Calif.
"It's always been my goal to own a repair shop," he said. "I knew early on that I had the mechanical skills to be a good tech, and I thought I could use my business knowledge to run a shop."
Autotrend operates out of a 3,800-square-foot facility with two lifts and three bays and employs two technicians, Kusa said. The shop works on every type of domestic and Asian vehicle and does every type of repair and maintenance, with the exception of alignments and smog, he said. The bulk of the shop's business, at least 70 percent, is maintenance and diagnostic work, and 30 percent is what Kusa calls "breakdown/tow-in work."

"We've been seeing a lot more breakdowns because people are avoiding repairs," he said. "They try to save money and then it costs them more because their vehicles end up needing things like new engines and transmissions."
Kusa said that a wide range of factors have contributed to his survival in a tough market, including participation in trade associations and professional networking groups, as well as using superior systems to run his shop and perform diagnostics.
"One of the smartest things I ever did was when I joined the Automotive Service Councils of California (ASCCA)," he said. "I am currently a chapter rep for the San Jose area, and it's been the best decision I've made businesswise. It's allowed me to meet some amazing people like Allen Pennebaker, Larry Moore, and Laurie Moore, just to name a few. It's been a huge help because I've learned so much from them. I can't assign enough importance to it."
Three years ago, Kusa started using the QuickTrac business diagnostic tool, a shop management system developed by Cecil Bullard and Larry Moore, he said.
"QuickTrac helps me stay on top of my productivity," he said. "Its analytic functions are very helpful because they let me and my techs know where I am and where I need to be with my car count and how much income I'm getting from each job. It's led to my technicians inspecting cars properly and getting more work out of each vehicle that comes in here."

Kusa said he is also a member of the Bottom Line Impact Group, a 20-member group of shop owners throughout the country.
"We have meetings three times a year where we sit down face to face and share ideas," he said. "Twenty minds are better than one, and you can always benefit from other people's experiences."
For his diagnostics, Kusa said he uses Identifix, Mitchell-on-Demand and iATN. Coupled with ongoing training, it's proven to be a winning combination, he said.
"Since we see a wide range of different cars, it just makes sense for us to have access to all the best data out there," he said. "We need to be able to tap into the knowledge that larger shops have assembled, and Identifix is great for that."
Selling his services based entirely on price is not a solid approach to running a repair shop, Kusa said. "We don't discount things around here, and we never have," he said. "That's basically a trap that you can never get out of. We stress our features and benefits to our customers, and it works well. They value the quality of our work, and price becomes a secondary issue at that point."
Marketing and advertising are an important aspect of the big picture at Autotrend, Kusa said. "You have to do marketing. But, the trick is doing it the correct way. Putting discount coupons in the newspaper is not the answer because then you get people who are just looking to save a buck, and they won't be loyal customers. As soon as they find another shop offering another discount, they'll go there."
Kusa said he is spending 3.5 percent of his total revenues on marketing and advertising but that he should be spending 6-8 percent.

"Right now, we're not spending enough on marketing," he said. "Statistics tell us we're going to lose 20 percent of our customers every year because people move out of the area or buy new cars under factory warranty. To stay static, you have to replace them, and marketing and advertising is the best way to do it."
Kusa said he turns to four major parts vendors and the dealerships in his area for all of his parts. "I use Winchester, Kohlweiss, WORLDPAC, and Fast Undercar primarily," he said. "We carry hardly anything here at the shop--maybe $4,500 in fluids, filters, chemicals, and additives. We can get everything we need fast and efficiently, so it makes no sense to carry any inventory."
When it comes to parts, Kusa said quality and delivery are equally important to him. "Price is last because we give our customers a two-year, 24,000-mile warranty," he said. "If we put low-quality parts on the cars that come through here, we're going to get a lot of comebacks, and that will kill you."





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