Thursday, February 18, 2010
Monday, January 11, 2010
"A Fair and Competitive Automotive Repair Marketplace"
Well welcome back everybody to a new year, hopefully filled with prosperity and Obama's pocket "change" (which is just the leftovers of what he gave to everyone else but you and I). But I digress...
I was crawling along the BAR's website today and came upon the following quote:” To protect and serve California consumers by ensuring a fair and competitive automotive repair marketplace and administering a model motor vehicle emissions reduction program. "
But I got to thinking, as I watch more and more businesses wither and die, does all of this regulation make it any safer for consumers, and what about the businesses? I understand that having somewhere for our "911" calls to go so to speak is nice to have, but the consumers don't pay for their protection: we do. I am not complaining about that so much either, but what does grind my gears is that it drives prices higher, and consumers demand them lower. So money that could have been made at a lower price goes towards licenses, fees, taxes, bonding requirements, presentation requirements etc. So just like gas, every purchase a consumer makes includes the costs of such things in small increments. At the same time a market will only sustain a certain price, so the higher the fees, the higher the percentage it takes up in the price. So if the market will only hold a price of $100 per widget and 15% of the price has to go to covering the fees (not including any EPA or FED taxes or even rent) then there will be $85 left towards the rest of the stuff. So say you do oil changes, you need an EPA permit and need to pay EPA fees every quarter PLUS the cost of disposal. So now your left with $75. And in order for the business to cover payroll and the rest of the rent and utilities it will have to perform 100 widget services a month, and that reaches the break even point. Normally this business does 150 services a month. Now in a bleak economy the business is only performing 115 services a month and the market price has fallen to $85 per service. So now that volume is down, and the income is down and the expenses remain the same how do we fix it, we cut expenses.
How do we cut expenses? HMMM... we run the A/C less, turn off computers at night. Ah ha! we already have a loyal customer base, so we waste money to register with the state, we can fly under the radar and save hundreds, we can even drop those bonds and insurance, pay employees under the table to avoid taxes etc etc. So even before the economy took a turn south, many people saw this way of running a business as very lucrative, and profitable. So the automotive industry has turned into a black market business, just like alcohol during prohibition.
I do not say this to encourage people to stop paying taxes or to scare them, or to discredit the BAR or many other state consumer protection agencies. But rather to help people to understand what you really get when you go to have your car repaired. I do not recall the statistic, but the BAR has helped mediate consumers and businesses and assisted consumers receives a bundle of money in refunds or penalty money without ever have to go to civil court. Although the BAR cannot represent consumers in court, they do their best to mediate, and talk to the businesses on the consumers behalf in an attempt to resolve the complaint without further action.
So I understand that there are folks who pay stupid cheap rent and can afford to be cheap, but others pay a bit more for rent and pay their dues where applicable honestly and need to charge a bit more than the other guy just to get by. Which is where I go back to a prior post and remind folks that you may not be getting the best bargain by getting the lowest price.
I was crawling along the BAR's website today and came upon the following quote:” To protect and serve California consumers by ensuring a fair and competitive automotive repair marketplace and administering a model motor vehicle emissions reduction program. "
But I got to thinking, as I watch more and more businesses wither and die, does all of this regulation make it any safer for consumers, and what about the businesses? I understand that having somewhere for our "911" calls to go so to speak is nice to have, but the consumers don't pay for their protection: we do. I am not complaining about that so much either, but what does grind my gears is that it drives prices higher, and consumers demand them lower. So money that could have been made at a lower price goes towards licenses, fees, taxes, bonding requirements, presentation requirements etc. So just like gas, every purchase a consumer makes includes the costs of such things in small increments. At the same time a market will only sustain a certain price, so the higher the fees, the higher the percentage it takes up in the price. So if the market will only hold a price of $100 per widget and 15% of the price has to go to covering the fees (not including any EPA or FED taxes or even rent) then there will be $85 left towards the rest of the stuff. So say you do oil changes, you need an EPA permit and need to pay EPA fees every quarter PLUS the cost of disposal. So now your left with $75. And in order for the business to cover payroll and the rest of the rent and utilities it will have to perform 100 widget services a month, and that reaches the break even point. Normally this business does 150 services a month. Now in a bleak economy the business is only performing 115 services a month and the market price has fallen to $85 per service. So now that volume is down, and the income is down and the expenses remain the same how do we fix it, we cut expenses.
How do we cut expenses? HMMM... we run the A/C less, turn off computers at night. Ah ha! we already have a loyal customer base, so we waste money to register with the state, we can fly under the radar and save hundreds, we can even drop those bonds and insurance, pay employees under the table to avoid taxes etc etc. So even before the economy took a turn south, many people saw this way of running a business as very lucrative, and profitable. So the automotive industry has turned into a black market business, just like alcohol during prohibition.
I do not say this to encourage people to stop paying taxes or to scare them, or to discredit the BAR or many other state consumer protection agencies. But rather to help people to understand what you really get when you go to have your car repaired. I do not recall the statistic, but the BAR has helped mediate consumers and businesses and assisted consumers receives a bundle of money in refunds or penalty money without ever have to go to civil court. Although the BAR cannot represent consumers in court, they do their best to mediate, and talk to the businesses on the consumers behalf in an attempt to resolve the complaint without further action.
So I understand that there are folks who pay stupid cheap rent and can afford to be cheap, but others pay a bit more for rent and pay their dues where applicable honestly and need to charge a bit more than the other guy just to get by. Which is where I go back to a prior post and remind folks that you may not be getting the best bargain by getting the lowest price.
Wednesday, December 23, 2009
Fix PCV with heater hose...not wise, not right!
Ok like I might have mentioned before, anytime I see something that needs to be addressed from my everyday experiences, I try to post about it as to attempt to help educate others.
Today I had a re-test vehicle in the shop, which failed for the PCV hose being disconnected and smoke pouring from the open end. Today upon re-inspecting the vehicle I found two problems. 1) Smoke was still making its way past the connection where the rubber hose and metal fitting came together (The hose being used is a fuz too big) and 2) The hose being used is heater hose.
Now I will admit that this will do the job, but it is not the recommended method of repair, nor is it accepted by the BAR. Because while the hose may route the crankcase gasses to the proper places, and not leak. The rubber is not made to handle the oil and other contaminants carried by the PCV gas. The oil and contaminants will break down the rubber in the heater hose at an accelerated rate, causing the hose to become gummy, and stretchy and will either collapse, tear or fall off. Not to mention it will seep oil slowly, and sometimes in enough quantity to create a mess in the engine bay.
Now there may be folks that wonder why its a big deal, there are alot of cars that inherently do not create alot of gasses, but on vehicles like Volkswagen, they create alot (who also make inherently crappy PCV hoses) Sorry VW, I love you like a brother from another mother but everybody has their fallacies. So if you were to spend any time near a broken PCV hose with the engine running on one of these cars, you would understand why they need to be maintained. (good luck with your headache)
Anyway just another splurge...and hopefully a helpful tip for preparing for a smog check!
Today I had a re-test vehicle in the shop, which failed for the PCV hose being disconnected and smoke pouring from the open end. Today upon re-inspecting the vehicle I found two problems. 1) Smoke was still making its way past the connection where the rubber hose and metal fitting came together (The hose being used is a fuz too big) and 2) The hose being used is heater hose.
Now I will admit that this will do the job, but it is not the recommended method of repair, nor is it accepted by the BAR. Because while the hose may route the crankcase gasses to the proper places, and not leak. The rubber is not made to handle the oil and other contaminants carried by the PCV gas. The oil and contaminants will break down the rubber in the heater hose at an accelerated rate, causing the hose to become gummy, and stretchy and will either collapse, tear or fall off. Not to mention it will seep oil slowly, and sometimes in enough quantity to create a mess in the engine bay.
Now there may be folks that wonder why its a big deal, there are alot of cars that inherently do not create alot of gasses, but on vehicles like Volkswagen, they create alot (who also make inherently crappy PCV hoses) Sorry VW, I love you like a brother from another mother but everybody has their fallacies. So if you were to spend any time near a broken PCV hose with the engine running on one of these cars, you would understand why they need to be maintained. (good luck with your headache)
Anyway just another splurge...and hopefully a helpful tip for preparing for a smog check!
Mele Kalikimaka me ka Hau'oli Makahiki Hou
Merry Christmas and a Happy New Year-In Hawaiian. Even though we are located in the middle of the desert, this is the time of the year I miss the most from When I lived in Hawaii. Seeing as I really did not have any other pressing topics to let you all know about, I thought it fit to at least wish everyone a happy holiday and a prosperous new year.
Speaking of new year, there is something I would like to remind you of. Beginning January 1st 2010, the smog program welcomes diesel vehicles 1998 and later under 14,000 pounds. This will apply to vehicles with even numbered model years, who's renewal notice was mailed on or after January 1st 2010. It is not clear if there will be a increase in price for diesel vehicles or not. If you have modified your diesel trucks in any way for example, you may want to plan ahead before obtaining your first smog check. Check out the BAR website to learn more about the diesel inspections. http://smogcheck.ca.gov/80_BARResources/05_Legislative/RegulatoryActions/DieselWorkInf.html
Speaking of new year, there is something I would like to remind you of. Beginning January 1st 2010, the smog program welcomes diesel vehicles 1998 and later under 14,000 pounds. This will apply to vehicles with even numbered model years, who's renewal notice was mailed on or after January 1st 2010. It is not clear if there will be a increase in price for diesel vehicles or not. If you have modified your diesel trucks in any way for example, you may want to plan ahead before obtaining your first smog check. Check out the BAR website to learn more about the diesel inspections. http://smogcheck.ca.gov/80_BARResources/05_Legislative/RegulatoryActions/DieselWorkInf.html
Friday, December 11, 2009
"I don't understand why I have to get a smog, my car has never failed"
…Until now. This is a common question I get all the time. "Why do I need a smog check, modern vehicles come with all the equipment" or "new cars don't make smog". The truth may be that most late model cars make very little amounts of smog that contribute to the smog problems. But just like anything else on your car just like brake pads and tires, devices that reduce smog forming emissions simply wear out over time. EGR valves will stop opening, catalytic converters break down or become covered in hydrocarbons. But in most cases that could cause an increase in emissions will not cause any significant drivability issues, so they go unrepaired. That is why we have smog inspection requirements.
Not only that, but there are still the modern day hot rod drivers who will remove some smog devices in the hopes of gaining a few extra horse power. So we look for modifications and missing smog equipment. Many aftermarket parts as well require a California Air Resource Board (C.A.R.B.) executive order number to be legal for use in California. We look for such modifications and verify that they have a C.A.R.B. number. Such devices include air intakes, headers, throttle body spacers, PCV oil collectors, MAF sensors and any other device that modifies emissions in any way either directly to a particular device or to the fuel management or computer systems etc. A complete listing can be found at the C.A.R.B. website
Another thing I hear from customers is "It's just another scam for California to get a buck out of us". But at the same time I hear these same people tell me that the reason they moved to Palm Desert, was to get away from the smog...which is getting better as a result of the cleaner vehicles of today, and the efforts of the smog program at forcing the repair or retirement of gross polluting vehicles. But it is not just a California mandate, the smog program is the states direct compliance to Federal mandates requiring the state to clean it's air. So be mad at the state all you want, because it has to answer to a higher power too, unless of course you want dirtier air and less of our federal tax dollars coming in to maintain the streets and highways?
Not only that, but there are still the modern day hot rod drivers who will remove some smog devices in the hopes of gaining a few extra horse power. So we look for modifications and missing smog equipment. Many aftermarket parts as well require a California Air Resource Board (C.A.R.B.) executive order number to be legal for use in California. We look for such modifications and verify that they have a C.A.R.B. number. Such devices include air intakes, headers, throttle body spacers, PCV oil collectors, MAF sensors and any other device that modifies emissions in any way either directly to a particular device or to the fuel management or computer systems etc. A complete listing can be found at the C.A.R.B. website
Another thing I hear from customers is "It's just another scam for California to get a buck out of us". But at the same time I hear these same people tell me that the reason they moved to Palm Desert, was to get away from the smog...which is getting better as a result of the cleaner vehicles of today, and the efforts of the smog program at forcing the repair or retirement of gross polluting vehicles. But it is not just a California mandate, the smog program is the states direct compliance to Federal mandates requiring the state to clean it's air. So be mad at the state all you want, because it has to answer to a higher power too, unless of course you want dirtier air and less of our federal tax dollars coming in to maintain the streets and highways?
Tuesday, December 8, 2009
When is a bargain really a bargain?
I know that for many of us who work under the lift and behind the counter, we believe that we charge a premium for our services for many reasons. One is because we have to pay the rent to keep the doors open, two is to pay our employees, and three is to EAT! (And we believe we are the best at what we do!) But we understand that our customers go through many of the same ringers to earn their money that we do, and that these days it has become harder to part ways with our hard earned dollars. But next to lights, eats and sleep what is our most important necessity? Our cars! It gets us to school, work, the store reliably and safely without asking for too much in return. But when it does ask, why should we skimp on the gifts we give to our hardest working family member?
I know from being on the other side of the counter at one point as well, I realize the fear many folks have about taking their cars in for service, its worse for some than going to the dentist. But many think (and in some cases unwisely) to much about the price of the repairs rather than the quality. Many people assume, especially with the introduction of OBDII, that your scan tool will tell you exactly what’s wrong and what to replace. Right? So why not just take the vehicle to the cheapest guy on the block, seeing as any monkey who can read the instructions the computer spits out, can diagnose and repair any problem. But here are some things to think about when considering the cheapest guy.
For instance, the cheap guy still has many of the same expenses we all have: electricity, phones, advertising costs, payroll and if he’s doing things legit, he’s got EPA fees and waste fees and taxes. If this is true, then how can he afford to be so cheap? One of two simple ways he’s either doing something illegal, or something illegal. He may not be carrying the proper insurances, which we all know can be expensive, especially in California. The worst case scenario is that the repair facility is not licensed. In California all automotive repair shops are required to be licensed through the Bureau of automotive repair (BAR). For instance Smog Dog Palm Desert’s automotive repair dealer number is ARD-252692. You can visit the BAR's website and verify licenses. For smog check stations and other auto repair dealers http://smogcheck.ca.gov/70_SiteWideInfo/02_Tools/03_VerifyLicense.html is where to check it out. It will also tell you if the dealer has been cited, whether or not his license is valid or not etc.
But back to insurance, if the shop owner does not have the proper garage keepers insurance, what happens if an employee wrecks your car while on a test drive, or it falls off the lift, or otherwise damaged while in the possession of the shop? What if the work performed causes a catastrophic failure of other components? If he leaves this much to chance and sleeps well at night then what kind of person is he really?
If not avoiding taxes and license fees, then what else is illegal that he could be doing to make his "nut" every month? Maybe you go in for a drivability problem, and the service writer tells you that the reason for the problem is your fuel pump, so you authorize the repair. He then informs you that while the fuel pump were the problem, the cause was that your fuel tank was severely rusted on the inside, and the corrosion would get into the new fuel pump and destroy it in a matter of months. So you again authorize the increase in costs for the additional repairs. Later in the month you get a flat tire and take the car to another shop that specializes in tires to try and save money because they do higher volumes while under the car the tech notices that your CV boot is torn, and is letting grit and debris in and could cause severe damage to the joint. So you buy your tires and tell the tech you will have to ask your spouse about the extra costs when you get home because you have dumped a ton of money into the car lately. When you get home your husband (if you’re a woman in most cases) or most men in general will inspect the boot just to make sure it is in fact in need of repair. During the inspection you discover that the boot is torn, but appears to have been freshly CUT! pissed off you proceed to crawl out from under the car in a hurry and bump your head on the fuel tank...which was just replaced to cure the rust problem. Then you get red in the face and steam pours from your ears, you just realized your fuel tank is PLASTIC!
In this tough economy shops are struggling because although car counts are up, average ticket prices are down. This is not to say we blame people from stretching their dollars as far as possible, but in the above scenarios, the bargain turned out to be a sham. because if everybody else is doing job A for X dollars, and cheap guy is doing the same job for less, and the cost of parts remain the same and overhead is the same then how does the cheaper guy stay in business? Just something to think about.
In the smog business in particular, I wonder about the guys who do smog inspections for $40 bucks. Nearly $20 cheaper than me, but look closer there is a certificate fee and electronic transmission fees that total $10. Cuts the difference by half and additional fees are not always displayed in the most conspicuous manner. So now consider this, if we both do ten cars at $60 I make $600, he makes $500. He would have to smog an extra two cars just to make the same as me, and also do more cars just to reach break even. So how does he stay open? Maybe he sells more gas caps that weren’t really bad? or his failure rates are higher...maybe higher than they should be. I have a price that makes me enough money, so that i do not have to fail cars that should have otherwise passed to make extra, much less break even.
So the next time you consider shopping for the absolute bottom price, especially on services, ask yourself when is a bargain really a bargain? And consider how much money it costs to be able to provide you with our services, and that this is what makes up most of the price we charge, not our greed.
I know from being on the other side of the counter at one point as well, I realize the fear many folks have about taking their cars in for service, its worse for some than going to the dentist. But many think (and in some cases unwisely) to much about the price of the repairs rather than the quality. Many people assume, especially with the introduction of OBDII, that your scan tool will tell you exactly what’s wrong and what to replace. Right? So why not just take the vehicle to the cheapest guy on the block, seeing as any monkey who can read the instructions the computer spits out, can diagnose and repair any problem. But here are some things to think about when considering the cheapest guy.
For instance, the cheap guy still has many of the same expenses we all have: electricity, phones, advertising costs, payroll and if he’s doing things legit, he’s got EPA fees and waste fees and taxes. If this is true, then how can he afford to be so cheap? One of two simple ways he’s either doing something illegal, or something illegal. He may not be carrying the proper insurances, which we all know can be expensive, especially in California. The worst case scenario is that the repair facility is not licensed. In California all automotive repair shops are required to be licensed through the Bureau of automotive repair (BAR). For instance Smog Dog Palm Desert’s automotive repair dealer number is ARD-252692. You can visit the BAR's website and verify licenses. For smog check stations and other auto repair dealers http://smogcheck.ca.gov/70_SiteWideInfo/02_Tools/03_VerifyLicense.html is where to check it out. It will also tell you if the dealer has been cited, whether or not his license is valid or not etc.
But back to insurance, if the shop owner does not have the proper garage keepers insurance, what happens if an employee wrecks your car while on a test drive, or it falls off the lift, or otherwise damaged while in the possession of the shop? What if the work performed causes a catastrophic failure of other components? If he leaves this much to chance and sleeps well at night then what kind of person is he really?
If not avoiding taxes and license fees, then what else is illegal that he could be doing to make his "nut" every month? Maybe you go in for a drivability problem, and the service writer tells you that the reason for the problem is your fuel pump, so you authorize the repair. He then informs you that while the fuel pump were the problem, the cause was that your fuel tank was severely rusted on the inside, and the corrosion would get into the new fuel pump and destroy it in a matter of months. So you again authorize the increase in costs for the additional repairs. Later in the month you get a flat tire and take the car to another shop that specializes in tires to try and save money because they do higher volumes while under the car the tech notices that your CV boot is torn, and is letting grit and debris in and could cause severe damage to the joint. So you buy your tires and tell the tech you will have to ask your spouse about the extra costs when you get home because you have dumped a ton of money into the car lately. When you get home your husband (if you’re a woman in most cases) or most men in general will inspect the boot just to make sure it is in fact in need of repair. During the inspection you discover that the boot is torn, but appears to have been freshly CUT! pissed off you proceed to crawl out from under the car in a hurry and bump your head on the fuel tank...which was just replaced to cure the rust problem. Then you get red in the face and steam pours from your ears, you just realized your fuel tank is PLASTIC!
In this tough economy shops are struggling because although car counts are up, average ticket prices are down. This is not to say we blame people from stretching their dollars as far as possible, but in the above scenarios, the bargain turned out to be a sham. because if everybody else is doing job A for X dollars, and cheap guy is doing the same job for less, and the cost of parts remain the same and overhead is the same then how does the cheaper guy stay in business? Just something to think about.
In the smog business in particular, I wonder about the guys who do smog inspections for $40 bucks. Nearly $20 cheaper than me, but look closer there is a certificate fee and electronic transmission fees that total $10. Cuts the difference by half and additional fees are not always displayed in the most conspicuous manner. So now consider this, if we both do ten cars at $60 I make $600, he makes $500. He would have to smog an extra two cars just to make the same as me, and also do more cars just to reach break even. So how does he stay open? Maybe he sells more gas caps that weren’t really bad? or his failure rates are higher...maybe higher than they should be. I have a price that makes me enough money, so that i do not have to fail cars that should have otherwise passed to make extra, much less break even.
So the next time you consider shopping for the absolute bottom price, especially on services, ask yourself when is a bargain really a bargain? And consider how much money it costs to be able to provide you with our services, and that this is what makes up most of the price we charge, not our greed.
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