The Institute’s Leading Edge Podcast

institutesleadingedgepodcast

The Institute’s Leading Edge Podcast is where forward-thinking Automotive Service and Repair Shop Owners come to sharpen their skills, expand their knowledge, and gain an edge in today’s competitive market. Hosted by The Institute’s team of seasoned consultants and leaders with decades of real-world experience, you’ll get direct, actionable advice tailored to the unique challenges of running and growing an auto repair business. Each episode feels like a one-on-one coaching session. Whether it’s improving profitability, building stronger leadership skills, mastering marketing, developing your team, or planning for long-term success, you’ll find strategies you can implement right away. Have a question about your shop? Send it in, and we’ll answer it on the show.

  1. 3D AGO

    205 - The Diagnostic Fee Debate: Ask Me Anything with Cecil Bullard and Lucas Underwood

    205 - The Diagnostic Fee Debate: Ask Me Anything with Cecil Bullard and Lucas Underwood May 13, 2026 - 00:56:50 Show Summary: Lucas Underwood and Cecil Bullard explain why diagnostic testing should never be treated as free work. They discuss how weak pay systems and poor communication have lowered the value of technicians across the industry. The conversation compares automotive testing to the medical field and explains why customers should expect to pay for professional diagnostics. They also cover technician growth customer education leadership and the need for stronger professionalism in repair shops. The episode ends with a call for the industry to raise standards and focus on creating long term value.   Host(s): Lucas Underwood, Shop Owner of L&N Performance Auto Repair and Changing the Industry Podcast Cecil Bullard, Founder of The Institute   Show Highlights: [01:00:25] – Customers understand testing better than diagnostics. [01:03:09] – Proper testing requires skill experience and expensive equipment. [01:04:04] – Shops lose profit when diagnostic time is given away. [01:06:47] – Flat rate pay discourages advanced diagnostic skill development. [01:12:10] – Lucas explains his Level One testing process. [01:14:45] – Cecil compares automotive testing to medical diagnostics. [01:19:22] – Skipping testing leads to poor repairs and wasted money. [01:31:06] – Lucas discusses leadership responsibility and coaching influence. [01:39:40] – Accurate testing saves money and prevents unnecessary repairs. [01:50:16] – The industry must value professionalism and technician expertise.   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/cUCa2tz_G1c   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript:   [01:00:00:01 - 01:00:11:22] Lucas Underwood  Good afternoon, everybody. My name's Lucas Underwood from Changing the Industry podcast. I'm also a shop owner. And this afternoon, I'm here with the man, the myth, the legend, Mr. Cecil Bullard. Cecil, how you doing, buddy? [01:00:11:22 - 01:00:14:10] Cecil Bullard  Howdy, howdy. I'm great, Lucas. As always. [01:00:14:10 - 01:00:24:14] Lucas Underwood  Yes, sir. Yes, sir. So we've got some deep dive topics for the day. I'm excited about it because this is a hot button series of topics. So let's dig right into it. [01:00:25:15 - 01:00:53:00] Lucas Underwood  Now, now, Cecil, we're talking diagnostics. We're talking testing. We're talking charging for it. But you know something? Very, very early on when I first started kind of working on improving my business, I went to ASTA for the first time and I got into some training classes. It was drilled into my head from the word go. You don't sell diagnostics. You sell testing and testing results in a diagnosis. How do you feel about that, Cecil? [01:00:56:10 - 01:00:56:24] Cecil Bullard  Who cares? [01:00:58:05 - 01:01:03:19] Cecil Bullard  I don't care. Here's the thing. I mean, I sold diagnostics for, I don't know, 25 years. [01:01:03:19 - 01:01:04:04] Lucas Underwood  Yeah. [01:01:04:04 - 01:01:52:00] Cecil Bullard  We're going to diagnose your car. Now, testing actually, we keep having these people that come into our industry and they come up with these great new words. And so let's not call it green anymore. Let's call it, I don't know, pumpkin pie or whatever. Who knows? Who cares? Right. And so if you're selling pumpkin posse. Yeah. If you're, if you're selling, if you're, if you're good at selling diagnostics, who cares? Right. This is the one instance where testing probably makes more sense only because the consumer probably understands testing a lot better than they understand diagnostics. Okay. And, and so, you know, I'm, I'm, if I'm going to go to the doctor, they're going to run a series of tests. [01:01:53:03 - 01:02:38:10] Cecil Bullard  If those series of tests don't give them the information they need, then they're going to run another series of tests or more tests. And, and so I think that at least because of the medical industry and the, and the work they've done, the testing probably makes more sense at this particular point. And if we made that shift in the industry, would it make it easier for your customers, your clients to understand what you're, what you're doing and why there's a cost to it? And, and the answer is probably yes. So, you know, as far as calling, you know, technicians, mechanics or mechanics technicians or specialists or whatever, I don't care what you call me, you know, just call, make sure you call me. As [01:02:38:10 - 01:02:40:16] Lucas Underwood  long as you pay the bill when you're done, I don't care. [01:02:40:16 - 01:02:41:09] Cecil Bullard  Yeah. [01:02:41:09 - 01:02:42:09] Lucas Underwood  Yeah. [01:02:43:17 - 01:02:44:16] Lucas Underwood  Go ahead. Go ahead. [01:02:44:16 - 01:03:09:03] Cecil Bullard  I just, we keep coming up with new words, thinking we're going to change the game when we're not really changing the game. The problem is that we don't value ourselves as an industry or our time as technicians or as mechanics and we never have, and we still don't value that time. And that creates a lot of the unrest in our industry and a lot of the financial issues in our industry. [01:03:09:03 - 01:03:45:15] Lucas Underwood  I agree a thousand percent Cecil. I completely agree with you. But here, here's where I'm at on the testing thing. Okay. And a couple of thoughts behind this process. When, when I bring a client into my shop, I start with a level one testing routine. Now look, if you've never tested a car, if you've never done the diagnostic process yourself, it is very easy to say, well, hey, I'm just going to wrap that into the price. It's not that big of a deal. No, it's a talent. There is skill associated. There is knowledge associated. There's tooling associated with it. If you've never been the one to do it, you just don't understand how complex the process can be. Okay. [01:03:45:15 - 01:03:52:14] Cecil Bullard  I'm talking to a shop yesterday. They have $189 posted labor rate. [01:03:52:14 - 01:03:53:07] Lucas Underwood  Yeah. [01:03:53:07 - 01:03:55:29] Cecil Bullard  Okay. They have an effective labor rate of 123. [01:03:57:26 - 01:04:00:08] Cecil Bullard  Now they're wonder why there's no money in the bank. [01:04:00:08 - 01:04:01:00] Lucas Underwood  Yeah. [01:04:01:00 - 01:04:02:13] Cecil Bullard  And you know, we're talking about. [01:04:02:13 - 01:04:04:06] Lucas Underwood  Everybody they're higher than everybody in town. [01:04:04:06 - 01:05:44:14] Cecil Bullard  How many comebacks do you have? Oh, we don't have any, we have hardly any comebacks at all. Okay. And by the way, that's the answer. 99.9% of the time, we don't have any comebacks. Okay. Wonderful. Wonderful. It's not that how many, how many DVI's do you give away without charging that to your customer? Yeah, we do DVI's for free for our clients. Okay. All right. How much, how many times does your master technician, your A-Tech have an hour to quote unquote run tests or diagnose a car and take two days? Oh man, that happens a lot. Okay. Now we've, we've, we've circled in on one of the main reasons that the effective labor rate. And by the way, it's like $27,000 a month for this shop because their effective labor is so far off of their posted rate. And they, their A-Tech is again and again and again. If it's so easy to do this quote unquote diagnosis, anybody can do it in half an hour, anybody can do it in an hour. I cannot, you know, you got these ego tacks out there and I'm going to get blasted, but they're out there and they're like, Oh, well anybody should be able to do that in an hour. You know, we should be able to diagnose this code in an hour that code. And yet hundreds, if not thousands of guys are spending three, four, five, seven, 10 hours on a car, trying to figure out what's really going on. And, and how does that not come together? My ego is being in the way of being profitable and making money. Right? Yeah. Then I'm going to come up to the shop owner who's cheating me. [01:05:44:14 - 01:06:47:25] Lucas Underwood  Well, so a couple of things here, right? First of all, let's just, let's put the elephant in the middle of the room and beat it. Okay. Because the reality of the situation is this, the pay systems and the way that we have set up the testing routines have not rewarded technicians. Okay. Now I get that there are thousands of ways to obtain reward and to find meaning and purpose in life, right? We go back to Michael Smith's leadership in the last. It's not all about money. It shouldn't be right. Right. But I'm going to tell you right now, if you don't pay somebody for it, they're not going to develop the skill. Right? I mean, let's just be real about it. You go and you work in the dealership and you get paid 0.25. You get paid 0.5 to go and do said testing that you know is going to take you an h

    57 min
  2. MAY 8

    204 - Part 1: Using AI in Your Shop to Increase Performance

    204 - Part 1: Using AI in Your Shop to Increase Performance May 6th, 2026 - 00:59:50 Show Summary: Artificial intelligence is reshaping how auto repair shops operate in practical ways. Jonathan Seitzer shares how AI can improve communication analyze data and save time on daily tasks. He explains a simple framework of rent it feed it and put it to work to help shop owners get started. AI is positioned as a tool that multiplies performance not replaces people. Real demos show how shops can create better customer messaging and gain insights from their data in minutes. The conversation also highlights the need to review AI outputs and use it responsibly. It closes with a look ahead at AI agents and how owners can begin experimenting today.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): Jonathan Seitzer, Owner, Dempsey’s Service Center   Show Highlights: [00:00:00] – Introduction to AI use in daily auto shop operations. [00:02:35] – Background in finance and technology applied to auto repair business. [00:06:20] – Three ways to use AI rent it feed it put to work. [00:08:17] – AI acts as multiplier not replacement for shop owners. [00:10:21] – Simple AI tools improve customer communication and service descriptions. [00:15:02] – Always check AI outputs since mistakes and errors can happen. [00:19:00] – AI helps create clear customer talk tracks from technician notes. [00:30:16] – AI quickly analyzes parts data saving hours of manual work. [00:37:31] – AI summarizes content into audio saving time each day. [00:45:21] – Use AI internally while maintaining trust with customers.   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. 👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/8_dcnz_4csE   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Jimmy Lea: Hey, good afternoon, friends. Depending on where, when you are joining us, it could be morning, afternoon, or evening. Good to see you, my friend. I'm glad you're here. Glad we are gonna have this conversation today as we talk about the future of our industry, and how does artificial intelligence really fit into our day-to-day operations? What does that look like? This is gonna be an interactive conversation. What do I mean by that? No, you're not gonna come on camera. No, we're not gonna unmute your microphone. Go to the comments section. We're live streaming on Facebook and YouTube and StreamYard. Go to that comments section and type in there your questions, comments, or concerns. In fact, go into that comments section and type in where you're joining us from, the name of your shop. Love to give you a shout-out as we talk about this industry that we love that's doing so well for us. And yeah, drop in your name and where you're joining us from because it's super exciting to be here with you, friends. It's super exciting. First and foremost is the current coach for our guest, Mr. Wayne Marshall, CEO of GEAR Group Holding, and he is joining us from Iowa. Good to have you with us, Wayne. Thank you for being here, brother. Also Steve from B&C Auto Center in San Jose, California. We've got Peggy from High Street Auto Repair, Jefferson City, Missouri. Jeff from Miller's Automotive, Orange Park, Florida. Jeff Byrne from German Tech Motorworks, Louisville, Kentucky. And let's see, Fernando, Rohrehard Park Transmission, Northern California. Evans from Evans & Lukes in Columbus, Ohio. Evan, good to see you again, brother. How you doing? Oh, that's awesome. And Justin Pepper, Quality Auto Repair here in Oklahoma City, Oklahoma. Nice. Glad you guys are here. Thank you for those who are vocal and know where that comments button is. This is gonna be so much fun. We're gonna have such a great conversation here. Joining me today is John from... Oh, one more shout-out. Todd from Atlanta Speedworks in Gainesville, Georgia. John joins us today from, where are you joining us from? Jonathan Seitzer: Newark, Delaware, Dempsey Service Center. Jimmy Lea: Dempsey Service Center. And John is a very recent purchaser, a recent joining the ranks of ownership, of shop ownership, and he joins us from computer industry, the computer world. What's your background, John? What qualifies you as a computer surgeon? Jonathan Seitzer: Prior to my move to the automotive industry, I was the head of product at Moody's Analytics for some of their suite of compliance products for, for their banking and government services. Prior to that I was at JPMorgan Chase for 10 years in various technology roles. I am not a developer. I live in the product and business analysis world. So for those of you shop owners out there, you should think of me a little bit like a service advisor in my last life. My job was to stand between my customers and my my software developers, help understand what the customer needed it, translated it into something the software developers could build, and then get that information back to the customer when we had a solution for 'em. Jimmy Lea: I love it. I love it, Jon. This is awesome. Love that you come from the world of computers, and I guess technically we could call you a financial whiz. Jonathan Seitzer: You c- you can call me all sorts of things. Jimmy Lea: Yeah. I heard JP Morgan Chase and a lot of financial institutions you were talking about. Congrats on that, that career, that lifespan that you had there in, in that industry. And oh, my gosh, look, we've got a few more shout-outs. Brandon from Pete's in Topeka, Kansas. Todd Compton's Automotive in Charlotte, North Carolina, and Lance Lupe joining us from... Lance, I, I can never remember where you're at. I think he's in New York. It might be New Jersey. I think it's New Jersey. Anyways, Lance is here with us as well. Jon so excited with your background. We had a great conversation at MARS in last October. Looking forward to another MARS conference, Marketing for Automotive Repair Shops, coming this October. Our conversation last October, we talked about, you talked about, hey, you know what? I do a lot with AI. I do a lot with the large language learning, and I really would love to share this with others in our industry and h- how they can use it, and what would make a difference for them. So let's help everybody else catch up to the conversation you and I had, Jonathan. How is it that you're using AI in your day-to-day? What are you doing? Jonathan Seitzer: So there's all sorts of different things. I'll actually, I have some demos we'll be showing in just a minute, but how about we head into the the presentation, and I'll walk you through the whole thing. Jimmy Lea: Yeah. The floor is yours, brother. Hey, so everybody, as you're listening to Jon, you've got questions, go ahead and type them into the box because as Jon is doing this demo on the different AI systems, it takes a minute to process, so that's a good opportunity for us to ask questions. So keep those questions coming in that comments box All right. Jonathan Seitzer: Awesome. Thank you, Jimmy. So hello everybody. Welcome. As said, my name is John Seitzler. I am the owner of Dempsey Service Center. We have been in business for 40 years here in Newark, Delaware. But as I said earlier prior to that I was... I've spent the last 15 years on Wall Street in various product and technology roles. And what qualifies me to talk to you all a little bit about AI is actually during my last stop, I was lucky enough in to release two different AI products to the market. One back in 2019 when we weren't really talking about AI all that much, and then again right before I left in 2025 we released our first agentic AI product into the market. I've got a fair bit of experience with AI knowing what it does, more importantly, what it doesn't do. And I just wanna get that information to you guys here. The fun part about this for me is I'm not here to sell you guys anything. I'm just here to help, and at the end of the thing I'll get you all my email. So in the event that you have questions, if you need help, if you're thinking about it, you want somebody to bounce an idea off, reach out. I am I am available. I look at AI in three different ways. There are three things you can do with AI as a shop owner. That's you can rent it, you can feed it, and you can put it to work. Now, in this demo, what we're going to do is I'm gonna... We're gonna talk about the first two. Put it to work is a big conversation. There's a lot of different things you can do, and there's a lot of different hurdles and jumps that you have to make to do it in a way where you can trust it. So we're gonna split that one out into another webinar in a couple weeks, so I hope to see a lot of you guys back there as we're doing that. But I think this diagram right here kinda, kinda illustrates, the amount of effort that goes into each one of this. Rent it, small and easy. Feed it, not as big as put it to work, but bigger than rent it. You're still gonna have to do some work. You're going to have to d

    1 hr
  3. APR 28

    203 - The Future of Shop Training Is Personalized and Daily

    203 - The Future of Shop Training Is Personalized and Daily April 22, 2026 - 00:53:43 Show Summary: Daily training keeps shop teams sharp and improving without disrupting workflow. Short mobile lessons build technical knowledge communication and consistency across roles. Data and gamification drive engagement while revealing skill gaps. Strong training habits lead to better performance stronger culture and long term business growth. Continuous development is key to retaining talent and preparing future leaders.   Host(s): Wayne Marshall, CEO & Industry Coach Guest(s): David Boyes, Founder of Today's Class Show Highlights: [00:00:00] – Importance of daily training and consistent staff development [00:02:00] – Mobile learning delivers quick effective training in minutes [00:04:00] – Gamification creates competition and boosts engagement [00:06:00] – Advisors improve by strengthening technical understanding [00:08:30] – Training data helps identify individual skill gaps [00:12:00] – Expanding into leadership and communication training [00:18:00] – Training fills gaps for shops with limited access to resources [00:24:00] – Investing in people drives retention and shop performance [00:31:00] – Developing young technicians is critical for the industry [00:40:00] – Ongoing training separates top performers from struggling shops   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/Traa892RFnk   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Wayne Marshall: Welcome today for our webinar. It's exciting to have David Boyds with us from today's class. Some of the things that we talk a lot about at the institute comes down to the teaching and the training and development of staff. And when we think about what we're doing and as we work with different clients, we're dealing with it and we talk one-on-one or do other different events, and we're doing those on a weekly and monthly basis. But the beauty of some of the things that we have here to talk about today. That we're gonna have David share here more in a few minutes really goes into that daily constant feeding, developing of people and that focus. So today we want to get into and share a little bit more of the benefits and how to reinforce those different messages and those different things. It's a privilege that at the institute we have this opportunity to have a very strong partnership and alliance with today's class. Some of the content that we've developed and that we're doing, we're sharing with today's class. And David will talk a little bit more where we're able to take that content and he's been able to develop it and put it into that little bite-sized 2, 3, 4 minute daily things. And it could be on advisor, how to develop your phone skills, things that you can do better, that reinforces not only what we're teaching, but to make those people better on a daily basis and how it comes together. So with that, David. Thank you for coming with us today and sharing some things. If you would share a little bit about today's class, talk a little bit more as to what the content is how you get it out there, develop and the importance and what people can expect. David Boyes: Yeah. I'm really happy to be here. Today's class has been around for a long time, but what we've really focused on for the past few years is to make training as accessible as possible in a shop environment. We know that it can be difficult to carve out. 30 minutes of time, three hours of time carving out time in an evening. So we're coming at it a little different way, primarily through using mobile apps to push training that, that takes three to five minutes, typically for each user. It's engaging, it's gamified, but maybe most importantly it's personalized. So if we have, for example, in ATech, their training's gonna be different than a GST or an advisor. Our background was more on the technical side of things. We'd been an a SE accredited training provider for a number of years, so we really grew up in that space, providing technical training that could support a chef. This collaboration with the institute is exciting because now we're able to leverage their expertise and really take it to a whole new level. We know that a service advisor, for example, we can help them better understand technical concepts. However, the institute can take us to a whole nother level when it comes to things like, phone skills, communication, even things like accountability. So we're really excited to move forward here. Wayne Marshall: Yeah, it's it's interesting, you talk about gamification and I know when we, this goes many months back when we started working together on different things we, here at the institute, there was a group of us, Cecil being one that was part of it. So we're going on and be it on technical advisor, whatever it is we're going on and we're doing exactly what your clients were doing. And it got to be very competitive inside our walls because I'm doing the daily test and it's the same one that Cecil's doing, and now we're competing to see who's got 'em. All right. Am I getting more points? Am I ahead of Cecil or is he ahead of me? So that competition. It's really interesting because I know what it does to us. You're seeing that probably also with your clients because most of the people who do sign up for today's class, it's that rooftop or that shop with multiple people engaged. How well is it moving the needle when they get into the gamification or the competition? Yeah. 'cause guys got egos. David Boyes: Absolutely. So the reason that we include that gamification in there is 'cause we need to promote that daily habit. So this gets into some adult learning capabilities and motivations and so forth. But those points in the competition are a common hook. So people can earn points through being consistent with their daily training. But there's a variety of ways to leverage that. The most common thing that people will do is just treat it like a scoreboard. So if Wayne and I are on the same team, we can see who. Who's leading the pack so far resets each month. Teams can then compete against one another. So when we have various MSOs or if you're in a group, you can compete with your peers and that can just open up the doors to, to drive people to move forward. It's not something where, they have to overcommit to it, but it's a very light spirited way to keep it going. And the fun thing for us has been that. Seeing how shops come up with their own creative ways to leverage points, whether it's primarily about competition, whether it's weaving it into pay structures, incentives, tool bonuses, or ultimately creating your own reward store where you can take points and redeem them for gift cards, tools, trips, or time off. So really what we're trying to do is use the points as a way to. Create that engagement tool for a management team to be able to ensure their team Can train consistently. Wayne Marshall: Yeah. Yeah. There's a lot to be said about. All that content that's out there. And it's like anything with learning, you gotta keep it fresh. And the more we can do to engage people on a daily, regular basis, that keeps whatever the subject matter is of what they what, while it's on the track training track that they're on I can only imagine keeping it top of mind. Has made a difference. And when you talk to shop owners, they've engaged into your services, they got their staff using it. What kind of testimonials, what kind of results are they seeing that trickle into? Obviously better work's going out the door. They're having less comebacks. People are being more efficient. They're seeing that proficiency in tech time, on and on. How does that trickle in and what are some of the comments you get back? David Boyes: Yeah. Yeah, so I'd say the, I could boil that down to a few common use cases. One, I think for service advisors, on the technical side of things, we see a lot of benefit, very common for us to hear about customers who have an advisor who's great at communicating great with people. But just lacking some of that technical expertise. Today's class is a very easy way for them to begin to. Beef up on, on some of that technical knowledge terminology that improves their ability to not only communicate with the customer. But also with the technicians in the back. So we get a lot of great feedback on that in terms of getting them up to speed, very quickly, but also in a way that's non-threatening. They can do this on their own, they can do additional self-study. So we get a lot of good feedback from an ROI perspective on service advisors. When we talk about advanced level technicians. A lot of this gets into how things have changed. We talk about daily re-engagement, reinforcement. This is not a static industry. Things are moving all the time. So as we keep our content up to date and fresh, as a very experienced technician, you might s

    54 min
  4. APR 22

    202 - Building a Diesel Shop the Right Way With David Shaefer

    202 - Building a Diesel Shop the Right Way With David Shaefer April 15, 2026 - 00:58:22 Show Summary: David Shaefer shares how he built Cold Front Diesel from side work into a full time operation. He credits his upbringing in his father’s shop for shaping his desire for ownership and freedom. His time in the Marine Corps helped him develop strong leadership skills and a focus on running the business. He explains the importance of investing in the shop’s foundation through facility upgrades and process improvements. David outlines his plans for growth including hiring expanding space and exploring product development. He also discusses how the industry is becoming more technical and requires a higher level of professionalism. He emphasizes training coaching and building trust with customers as key drivers of success.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): David Schaefer II, CEO / Sales Manager Show Highlights: [00:00:00] – David explains the origin of Cold Front Diesel and its unique branding strategy [00:02:00] – Growing up in his father’s shop shaped his view of ownership and freedom [00:04:00] – Meeting his business partner and starting side work while employed full time [00:05:00] – Marine Corps experience forced him into business management and leadership [00:08:00] – Transitioning from side work to full time shop operations [00:11:00] – Rapid growth led to hiring his partner and scaling the business [00:14:00] – Leadership lessons from the military focused on respect and clear vision [00:18:00] – Building a high end facility to match a premium customer experience [00:26:00] – Plans to expand into manufacturing and reach beyond local geography [00:40:00] – Advice on customer trust training and investing in coaching In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: JImmy Lea: Hello friends, Jimmy Lea here with the Institute for Automotive Business Excellence. You are listening to the Leading Edge podcast. My guest today comes to us from Michigan. This is Dave David Schafer with Cold Front Diesel. David, how the heck are you, brother? David Shaefer: I'm doing great. Doing great, Jimmy. Thanks for having me on today. JImmy Lea: Oh, you're welcome, man. Cold Front Diesel. Where'd you get the name for? Cold Front Diesel. David Shaefer: So since we're up in Michigan, cold front is just kind of a play on the weather. Um, thought it was a unique name and you know, if you Google it, you're, you're not gonna get anything but us or weather. So it's not something that people are trying to fight over. Uh, pretty easy to differentiate us. JImmy Lea: Uh, that's cool. All right, show me. So, so where are you? David Shaefer: Right there, right in the, in the crevice up there. JImmy Lea: I love it. I, so I haven't, I've been all the way from the bottom to the top, went across the bridge to the up, but I didn't get over into the, uh, the pinky area. David Shaefer: Yep. JImmy Lea: When I was up there driving around. So, uh, that's every David Shaefer: vacation area. JImmy Lea: Heavy vacation. Really? They got a lot of camps up there. David Shaefer: Yep. Um, a lot of, a lot of the small lakes and, and the big bay is right next to us, so a lot of people are traveling off here. We have like, right about a mile or two away from us is at one point the third most beautiful lake in the world. So, uh, heavy, heavy vacation area. JImmy Lea: Wow. Third most beautiful lake in the world. Well that's, you know, that's something to stand up and say, hey. David Shaefer: Yeah. JImmy Lea: So what are the first and the second? If this is the third, David Shaefer: I don't know. We're not worried about that. JImmy Lea: We don't have to worry, but we know we're the third best lake in. Right, right. Yeah. You wanna see the third best? Come on and check it out. Well David, I appreciate you being on here and talking about your experience in the automotive aftermarket. Uh, and I really want to get into this with you and your history, your past. How did you start? In the automotive aftermarket. David Shaefer: So my, my dad, uh, was a mechanic as well, and he eventually started his own shop. And, uh, so I grew up in that. He started it in about 2001. So, um. I, I kind of grew up seeing that, you know, that was a majority of my, my young life is, is kind of watching him do that, being involved, you know, when I turned 16, I got a key to his toolbox into the shop and, um, you know, that was, uh, that was my place to kind of go and, and hang out and tin around trucks with friends or whatever. Um, so kind of knew that that was something that I wanted. I saw that, you know. Maybe he didn't make the most money in those years, but he was always present. So maybe he worked a lot of hours, but. If you forgot your backpack at, at home or something, you know, it was, it was on him. Like he could, he could go do that. He could make his own decisions, you know, he could be at the games, he could do things. So yes, he had to sacrifice time other places, but he still had the freedom when, when family mattered or something like that. So, you know, at, at least there was. It was on him, you know, and, and I thought that was, uh, that was cool. There's a lot of pride in him owning it as well. Um, so I always enjoyed that. Um. I don't know how I got into the diesel side of things really. I thought, uh, I think just in the high school area. Um, that's when, you know, I graduated in 2011, so around then some of the, some of the more powerful engines were kind of coming out and, and that was in the diesel performance industry was, was kind of starting to roll around then, and it, it seemed cool. So I ended up, I knew I wanted to do something eventually. I knew it probably wanted to be more, uh. Diesel related. So I went to a tech college. Um, but once you, once you go that route, it's kinda a weird industry to get into being truck specific. So you either go, you know, all automotive general dealership, or you go construction, industrial, semi-truck. Um, so got outta college in 2012. Um, and got a job at a Caterpillar dealership, um, that was pretty local to us, so started working on semis. Did that, uh, for, for a few years and while I was there. Um, so I'm, I have a, I have a business partner, uh, with cold front here. So, um, we actually met at, at Caterpillar. We both graduated same time. Both started working there at about the same time. Um. Both liked working on pickup trucks too. So we would come in and we'd work at my dad's shop after hours on the weekends, whatnot. Um, we were like, this is something that. We enjoy doing, you know, let's, let's see if we can make this happen. Um, so we kind of started, we just started tinkering with that. And then I actually joined the Marine Corps, went off for four years. Um, and I think that was probably what set us up the most for success because we had something that we both wanted to do. Something that, uh, we both, you know, were, we're very excited about. And then. Now I'm in a different part of the country for, for several years. Right? So, uh, what was really cool about that is you hear so many issues with partnerships, right? Um, and I think a lot of them are because you both are trying to be the same person, right? Um, so what was nice is when I was gone. I'm not physically there able to do any work, turn any, any wrenches. So it, it forced me into the management side. I can do the sales, I can do the estimates, I can do the customer contact, um, I can do the books, I can do all the business stuff, but I can't physically work on anything which allowed him to solely focus on just working, just, you know, managing the, the business side. JImmy Lea: Okay. Time out. Hold on one second. Are you saying. That you were away as a Marine and running your shop? David Shaefer: Yes, sir. And, and that JImmy Lea: was, how did you do that? David Shaefer: I mean, we were, we were still, you know, he was still working full time at Caterpillar. I was still in the Marine Corps. Right. So, oh, JImmy Lea: okay. So this is, this is the after hours, weekends we're building up our own customer base. David Shaefer: Yeah. JImmy Lea: You have that flexibility. Okay, I get it now. I thought this was like nine to five and the marine at nine or something and David Shaefer: Yeah, no. So, um, JImmy Lea: so where were, David Shaefer: yeah, it was, it was a slow buildup. JImmy Lea: Oh for sure. And congratulations on doing that. Thank you for serving in the Marines. My wi uh, my daughter is a Marine. She's stationed in Hawaii right now. She's been Oh, very David Shaefer: cool. JImmy Lea: Twice. Yes. So you, did you get put in the motor pool like really quick? David Shaefer: No, so I actually, so I was at Caterpillar for three years and my recruiter was actually, uh, a motor T mechanic and he was like, dude, you'll be perfect. You'll progress super fast, you know, if you take this

    58 min
  5. APR 15

    201 - From Technician to Shop Owner: Building Success Through Training and Integrity

    201 - From Technician to Shop Owner: Building Success Through Training and Integrity April 15, 2026 - 00:58:22 Show Summary: Roberto Ibarra shares his journey from studying automotive technology in Mexico to building a successful repair shop in California. He explains how continuous education and a passion for electrical diagnostics shaped his career. Roberto discusses starting a business during the 2008 recession and why mindset played a critical role in his success. He highlights the importance of honesty, communication, and clarity in customer service. The conversation also dives into technician development and why shop owners must invest in training. Roberto explains his work training technicians and helping them grow in the industry. He closes with advice for future shop owners to learn the business before jumping in.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): Roberto Ibarra, Aztek Auto Repair   Show Highlights: [00:04:45] – Roberto moves to the US to continue training and grow his skills [00:06:30] – Discovering a passion for electrical diagnostics changes his career path [00:10:45] – Starting a shop during the 2008 recession with a strong mindset [00:13:30] – Early business mistakes highlight the importance of learning operations [00:18:45] – Customers value honesty and doing the right thing every time [00:25:30] – Poor communication is the biggest failure point in most shops [00:34:30] – Shop owners must invest in technicians to grow the industry [00:39:15] – Training programs help technicians advance and build careers [00:43:30] – Future shop owners should learn inside a shop before starting [00:50:15] – Continuous learning is the key to long term success In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Jimmy Lea: Hello friends, Jimmy Lea here with the Institute for Automotive Business Excellence and you are listening to the Leading Edge podcast. And my guest joining me today is Roberto. I Oh, I was Roberto Ibarra: Ibar. Yes. Ibarra Jimmy Lea: Abria, Roberto Abria. He is from Aztec Auto Repair up in the Bay Area near Fremont. Is that right? Roberto Ibarra: That's why in the Heart Fremont is. Jimmy Lea: Oh, I love it. I love it. I'm pretty sure I've driven past your shop once or twice in the last decade and a half that we've been, that I've been in the automotive industry. I'm sure that I've driven past your shop, Roberto, Roberto Ibarra: most likely. Yeah. We have a lot of shops around the area right here. Jimmy Lea: Oh, that's awesome. That is awesome. Roberto I need to tell you a story about my brother, and his name is Robert. And my grandmother came to visit once upon a time, I think Robert was maybe 2, 3, 4, 5, maybe, somewhere in that area. And she says and what's your name? And he says, oh and no. She says and your name is Robert. Can I call you Robbie? Rob and he says, no, my name is Roberto. That's like the one and only time he had ever done that. And we just died laughing because where did he hear this? How did he know his name was Roberto? Roberto Ibarra: Yeah. He liked the, oh, you know the, I have another story with that name. When I came to F Freemont 1996 person was on the shop. And then he say on your uniform, he should say, 'cause I work with my uncle on that time, he should say, Bob, 'cause my name is Roberto. And he say, you should put Bob on your uniform. And I told him, I look at him and I tell him, no, that's a dog's name. He said no. That's my name. He say, that's my name is Robert. He say and we call Bab on us. We, we call Babs the robbers. We call Bobs. I tell no on Mexico we call him Bobby. Bobby. Bobby. The dogs. Bobby. Bobby. Bobby or Bobby. Oh, he say, no, not my David say they say okay. Maybe later. Jimmy Lea: So did you get Roberto on your uniform? Roberto Ibarra: Yes. Yeah. Are you always use Roberto on my uniform? Yeah. Jimmy Lea: Oh, that, that's awesome. There's a sense of pride with a name, isn't there? Roberto Ibarra: Yeah, my grandpa. My grandpa, that's, that was his name. And that's why, yeah, Roberto, is, this is gonna be dead. Jimmy Lea: Okay. So your grandfather's name is Roberto. Is your father's name Roberto? Roberto Ibarra: No, that's my mom's, that's my mom's side. Yeah. Jimmy Lea: And but your uncle's name is Roberto. Roberto Ibarra: No, I don't have the, no more Roberto's in the family. Only my son. My son is Roberto. My, my oldest is Roberto. Jimmy Lea: Oh, see, okay. So we, we are very aligned. I didn't know this Roberto. I didn't know this about you. My grandfather's name is James Arthur. My dad is James Bruce. I'm James Christian. My son is James Derek. So we have an A, B, C, D. Lineage. He's in charge of E so the pressure's off. I'm good. I got, I fulfilled my duty. Roberto Ibarra: No. Yeah, it is complicated. 'cause I have a customer, his name was Manuel. His dad was Manuel and his grandpa was Manuel. And he say, I don't want no more Manuel on my family. So her, Ernest, his son, he never named Manuel his son. He said, no, I don't, I wanna cut it here. He said, Jimmy Lea: oh, that's funny. Roberto Ibarra: Yeah. Sometimes people don't wanna carry the legacy, the or the name basically. Jimmy Lea: Yeah. Yeah. And you're right, it does get very confusing. And I tell you, within my own family there's a lot of things that my dad has on his credit that shows up on my credit, and we constantly have to just clean things up. But, and I think that's a good practice no matter what your name is. Chances are you've got some things on your credit that you probably ought to pay attention to and make sure that somebody's not abusing you and using your information. But Robert you talked about moving to America in 96. Roberto Ibarra: That's correct. Jimmy Lea: How, why, what happened? How did you what's the story there? Roberto Ibarra: I graduate as a technician on 19 92, 93. Mexico. I went to school as a, I went to a college for technician, and then when I graduate, I continue my education, because I say I need, this is not enough. Three years was not enough. So I continue going to some trainings, and then I found out that it was not enough. I say I have to continue education. Where's the technology is on north. So I called couple colleges over here in the Bay Area to sign up for getting some more training. And I got, I came to Fremont because there was a college on that time over here. I was, I forgot the name of that college. What was it? Biotech, I think. Biotech. So I came to continue my education. I wanted to get certified a, SC and all that. So I wanted to grow on the industry. Then I ended up getting some training over here on Concord area here on the criminal area. And I start working at the same time, and then I start going to school or to learn the language. So in less than two years, I was already speaking English, pretty much. And then I continued my education. So since that time I thought I wa I was, I wanna get some more education and then that's it. Here I am after almost three years, still going to trainings and myself teaching some other guys after. The technology is never, is not stopping right there. So it is, but I like it. I love it. I love the change. I love the dry. I'm coming from the carburetors area to the computers area, so I'm. I'm not afraid of touching a carburetor, and I'm not afraid of touching a computer because, I have both words on, I have, I, I see both words, 'cause I leave it I leave both of them. Jimmy Lea: Yes. And I love where you're talking, Roberto. You talk about you were in university for three years. Did you learn at all? No. You discovered that the more you learn, the less you know. Then you come to the United States, you are in training for another three years, six years total. Six years now that you're in training. And the more you learn, the less you know. Roberto Ibarra: Oh yeah. It is. It's, it is just when you start, like going to school and then one. One specifically area. And then you see, oh, there's another area, A, B, S Oh, now we have communication computers. You have short sequence. Now you have new technology and there's ac you have a now you have, it is endless. It's endless. There's a lot of things to learn that, it is, you cannot, you can say you, you can say, I have experience, but you cannot say, I know everything. That's not true. Jimmy Lea: So at what point did you realize in your life, at what point did you realize, hey, you know what, this is the industry for me. This is where I wanna be. I enjoy automotive industry. Roberto Ibarra: When I start going, when I started looking at the electricity electric side of the industry 'cause when I was a kid. One of my uncles used to fix televisions, TVs. Yes. And I helped him to open the cases and check the boards, check the resistance, the capacitors, the valves the to do measurements and using the multier and all that. On the, Jimmy Lea: is this back when you were checking TVs and they had

    58 min
  6. APR 15

    200 - Live with Wayne Marshall & Lucas Underwood: Culture and Hard Conversations

    200 - Live with Wayne Marshall & Lucas Underwood: Culture and Hard Conversations April 14, 2026 - 00:57:08 Show Summary: This conversation explores the challenges business owners face when leadership culture and direction are unclear. It shows how a lack of vision and poor communication can make problems feel overwhelming. Real examples highlight how integrity accountability and honesty help overcome major setbacks. The discussion stresses the need for a clear destination and consistent leadership by example. It also explains how avoiding hard conversations creates bigger issues over time. Key takeaways include breaking goals into steps reducing noise and building a team aligned with the vision. Strong leadership is the foundation for long term success.   Host(s): Lucas Underwood, Shop Owner of L&N Performance Auto Repair and Changing the Industry Podcast   Wayne Marshall, CEO & Industry Coach   Show Highlights: [00:00:00] – Wayne shares his path to leading the institute and driving change [00:02:45] – A shop owner admits fear of failure and constant burnout [00:04:00] – Most problems come from weak leadership and no clear direction [00:05:30] – Wayne loses a million dollars but chooses integrity over quitting [00:07:30] – Truth and honesty build lasting trust with everyone [00:10:00] – Reverse engineering goals makes big problems easier to solve [00:12:30] – Culture is built by actions not words [00:14:00] – Success comes from team behavior not strategy [00:20:00] – Avoiding conflict leads to confusion and poor results [00:51:00] – Keeping the wrong people pushes great employees away   In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   👉 Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/VAu4ek2afFU   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Lucas Underwood: What is up everybody? Lucas Underwood here. I'm here with Wayne Marshall. Wayne was just asking the question, how many profanities can we have in each a MA session? I'm gonna tell you that Cecil usually averages around 10, so as long as you get at least 10, we're in good shape. Wayne, you're the CEO of the institute. Uh, welcome. Thank you for being here. And I think we should kind of start, first of all, we had planned to go one direction. Something happened last night. Yeah. I'm gonna shift directions on this a little bit. Want to, uh, talk about something that I think is important and, uh, Wayne, I would love for you to introduce yourself. I know a lot of folks know you, but a lot of folks don't. Would you introduce yourself to the people? Wayne Marshall: Sure. I'm honored. Hey, first, it's great to be here again, Lucas, we. Always enjoy our conversations, connections with you, David, as we work through many, many things. So, uh, yeah, I've been at the institute, um, I mean, I started off coaching and doing a little bit of other things on the side with them and helping 'em on, you know, bigger leadership things. And ultimately, uh, was honored to be asked if I would step into the CE role and helping with a lot of transitional things. So I've been in this position for a little over a year now. Uh, we've made a lot of changes within the institute. Some you're aware of some. People in the market are aware of, you know, we did create a holding company, gear Group Holdings. Uh, we're slowly building and we're gonna have multiple entities underneath that, more announcements to come in the future. It's an exciting time. This industry is doing great things and I'm just honored to be with the institute and helping and contributing to everything we're trying to do to make it a better place, a better industry, just like we say. Lucas Underwood: Amen. Absolutely. Yes sir. And so, you know, here's the thing is I'm, I'm watching the Institute grow to this group of individuals, right? Yes. Like we talk about our core team all the time, and I'm watching this core team develop in some of the smartest people I've ever met or on this core team. Now, Wayne, you've worked in big business before and you've worked in some big dollar businesses. And you've told a story in the past about some of the troubles in some of those big dollar businesses in the past and some of the stress and some of that. And, you know, I'm, I'm gonna tell you, I, I've been through struggles here recently. You know, the, the kind of 3:00 AM wake up where you're laying in bed saying, can I get through this? Is it even possible for me to navigate this? And so we were supposed to be talking about the five Cs today. Okay. We will do an a MA on the five Cs, I promise. We're, it's an important topic. We're gonna cover it, we're gonna cover it in great detail at some point. But last night I had a gentleman reach out. Now I'd been telling him for a couple days that I was going to call him, and I've been real busy and I hadn't been able to call him. And, and he sends me this message and it kind of struck at my heartstrings and he said, um, I can only meet after about 5 30, 6 o'clock, seven, somewhere around there where I'm finishing up my day in the shop. And it, it just struck me as odd. That conversation went on a little bit and he said, uh, man, I, I just feel like my shop is going to fail. I, I, I don't think I can step away from the shop, and that is a warning sign. Okay, Wayne, I know you've seen it. I've seen it. Um, yep. If we get to the point with our shop that we can't walk away, we can't step back, we can't take a day off. We have to stay till seven o'clock at night. We have to come in at 6:00 AM or everything falls apart. Something is very wrong. And chances are it's that we're trying to squeeze this sucker. Like we're trying to get blood from a turnip. We're squeezing so hard, we're causing part of the problems. And so last night I said, you know what? I'm gonna go ahead and call him. And so I called him. We had a really great conversation and. As we began to talk, I, I just so related to my own personal life in this discussion, because he gives me a list of all the problems. This employee did this, this car did this, this happened, and this employee that used to work here did this, and the previous leadership did this and all of these things. And I said, whoa, whoa, whoa, whoa, whoa. Stop. And he said, what? I said, you know, my first business coach, I gave him a list of very similar problems and we didn't fix any of them. And he said, what do you mean? Like all of these huge problems I've got going on? And I said, listen, I said, it sounds like we've got a void in leadership. It sounds like we've gotta void in culture. And that the problem is, is your team doesn't know where you're trying to go and it's really hard for them to follow you somewhere that they don't know where they're going. We don't have a map, we don't have a destination. He began to talk about the fact he has this partner and the partner's kind of disengaged and not really involved, and the money is really falling on his back and, and me and you have had hard conversations about this because you told me a story one time about being in that spot. And people that you trusted, people that you thought were gonna do a, an amazing job and help you accomplish all the things you wanted to accomplish. It didn't work out that way. Did it? Tell us a little bit. Wayne Marshall: Yeah. It's, it's, you know, we've all had those. Unfortunate life lessons that we have to learn. And yeah, I mean, it goes back a few, well, more than a few. It goes back, uh, about a dozen years or more. And, uh, I had a partner. We were rolling. The business was growing and come to find out outside of myself, but in his situation, um, he failed to pay the IRS. On his personal taxes. There was other things that came in and there was some other stuff and, and at the end of the day, he was not gonna be the best partner. We decided it was best that we separate out. There was litigation, IRS coming, everybody trying to cross sue and do other things, and it was very hard and he ended up costing me about a million dollars. And that's not a hard one to come back from. And you know, as we were a growing business and we were able to recover, we were able to continue to grow. And before I sold the company and got out, we reached 10 million in revenue. Um, so we, you know, we ended up being very successful. But that's where it really starts to measure who you are as a person. Lucas Underwood: Amen. Wayne Marshall: Choose to treat others. Uh, you know, we talk about culture as you mentioned a little bit, you talked about that leadership element of, and I always say, you know. Problems are gonna happen in life. What really defines you as a person is what you choose to do next. Lucas Underwood: Amen. Wayne Marshall: And as the attorneys told me, they, you know, you just need to file bankruptcy. I said, I'm not gonna do that. I'm not going to stick vendors and others with a problem. That is not their problem. It was my problem. And through hard work,

    57 min
  7. APR 15

    199 - The Tax Credit Most Shop Owners Miss (And How to Claim It)

    199 - The Tax Credit Most Shop Owners Miss (And How to Claim It) April 8, 2026 - 00:56:05 Show Summary: This episode explains how shop owners can use the R and D tax credit to recover significant money. Derek VanNess breaks down recent tax changes that allow credits from past years and shows how common shop activities qualify. He explains that labor and process improvement drive the credit, not equipment purchases. Many shops can receive ten to forty thousand dollars each year. The episode also highlights using these savings to build long term wealth.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): Derrick Van Ness, Founder, Big Life Financial Show Highlights: [00:00:00] – Introduction to R and D tax credits and industry crossover [00:02:00] – New tax law creates limited time opportunity for past credits [00:04:30] – Why most shops qualify through daily improvements [00:08:30] – Labor hours drive the credit more than equipment costs [00:13:30] – Front office systems and software changes can qualify [00:18:00] – How credits turn into real cash or tax savings [00:24:00] – Tax strategy can add ten to twenty percent to profits [00:30:00] – Shop technology upgrades like alignment systems qualify [00:36:00] – Long term investing turns tax savings into millions [00:46:00] – How to get a free estimate and take action     In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode. Unlock the full experience - watch the full webinar on YouTube: https://youtu.be/TM7FyJlKDVo   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Jimmy Lea: My guest today is Derek VanNess. Derek is with Big Life Financial and we have a phenomenal, phenomenal amount of information to share with you today. Derek has been in the industry for quite a some time at my behest. He was heavily involved in the dentistry industry and I said, Hey Derek, you have got to come check out the automotive industry. We're having a great time over here. It is so much fun. Come check us out. And he brings with him a lot of knowledge and information that transfers between dentistry and the automotive industry. So with that, thank you Derek for being here. Good morning. Derick Van Ness: Good morning Jimmy. Excited to be here. And yeah, I'm always amazed at how similar dentistry and the auto repair business really is. Uh, if you think hygiene appointments and you think oil changes or checkups, suddenly you start to see. People come in, they do a diagnostic, you're working on cars, they're working on teeth. But it's, uh, it really has translated well over the last, last six or seven years. Jimmy Lea: Dude, that's awesome. That's awesome. And what we're talking about today is, is it, are we going into the r and d tax? 'cause that been a constant conversation that we've had over the last two or three years, but it seems like things are changing. Derick Van Ness: Yeah, there's, there's been some big changes in the, uh, research and development arena. Uh, the most people know there was a big tax bill that passed last 4th of July, and in that tax bill, it fixed the RD credits. Now, a lot of people didn't know they were broken, right? And we could go back three years. And so we were filing for people for 20 20, 20 21. But 22, 23 and 24, actually, the tax code had been changed or, or broken from the 2017 tax rewrite. Um, and people didn't know, like the credits still existed, but they weren't necessarily worth doing because, uh, long story short, it would make your income go up more than the tax credits would help. And so it wasn't worth doing now, uh, over the long term. It, it worked itself out, but it was, it wasn't worth doing for those couple of years. The tax bill in July actually fixed that. But we only have one year from that date, so this 4th of July to where we can go back using the new code and claim all of those credits for 22, 23 and 24. So that's, that's what you were talking about with expediency, is if you can get this done and in before the 4th of July, then you can get all that money coming back in one year. What broke it before was you have to take it over five years and. It raises your income. So I don't want to get into all that 'cause it's kind of technical and most people's eyes glaze over the net. Net is, um, there's an opportunity right now to go back and claim credits that you just couldn't really claim or didn't make sense to claim. And so we're trying to help as many people get that money as possible. Jimmy Lea: Nice. What qualifies the automotive industry? As an industry to qualify for this r and d tax, what is it that makes us unique or, uh, susceptible to this? Derick Van Ness: Well, I don't know if you guys know this, but you kind of have a technical industry, right? And most people, when they think of RD credits, they think of like guys in white lab coats with beakers making some sort of concoction that's gonna change the world or something. But the truth is the RD credits actually were created for the automotive industry way back in the eighties. Um, basically when the, the foreign cars came over and the US wanted to be able to compete with those, uh, Congress said, Hey, we want our people to, to experiment, to try new stuff, to be cutting edge. And we also know when you try new stuff, sometimes it doesn't work. So we're gonna give you credits to help you do that and help fuel that innovation. Long story short, fast forward to where we are today with the automotive industry, with all the changes that happen all the time. Every time you try something new and there's something called the four part test, I won't bore you guys too much with it, but if you're doing new things in your business to improve a product or process, most of what you guys are doing is process. Um, and it's based in technology. So. Computer science, biology, physical science, or engineering. Obviously you guys do a lot with computers, a lot with engineering, probably not so much with biology, but um, but anytime you guys buy new diagnostic equipment, right, which is a really common one where, hey, we want to be able to, uh, diagnose a problem. Faster, cheaper, more accurately. You know, get the solution a better outcome for the client, but also make it easier for us so we can be more profitable. They want to encourage that they being the government and so they give these credits for that. So, um, with EVs coming out, with all the self-driving stuff, with all the new, you know, features that are happening with cars, with all the technology that's allowing people to. You know, communicate from the shop up to the office and back and forth. Automated billing, automated follow up, automated tracking, all you know, all of that. Plus of course, all the innovations in how you guys are diagnosing things and, and fixing them more quickly. Uh, all of that is technology based. So if it's new to your business, it's technology based, and you're trying to solve a problem so you can get better. You're probably qualifying for credits, and if you're listening to all that going check, check, check, it's because we've done this for hundreds of shops and there are very few that don't qualify for something. Yeah. Some of them is really big. Some of them, you know, it's, it's a little more modest, but it's pretty common for shop owners to get between 10 and $40,000 a year for this, depending on the size of the shop. Jimmy Lea: Oh, now, so that is, is that the moderate number? Derick Van Ness: Uh, yeah, I mean, yeah, I would say like, it seems like I have a lot of shops that are in that 20 to 30 range, you know, if you're, yeah. A million to $2 million shop. Right? Which is, Jimmy Lea: yeah, Derick Van Ness: pretty common for, for shops that are probably working with you guys. I know you guys take them to the moon, but a lot of them, when they come in, they, they've got it kind of figured out, but they're going to the next level, right. So like the guy who's working out of his garage, bringing in $200,000 a year of revenue and maybe only 50 KA profit, he's not paying a lot of taxes. Probably not worth it. Yeah. But I would say doing over half million dollars of revenue, then it starts to make sense. You're gonna, you're gonna get enough credits 'cause you're probably big enough to grow, try new stuff. You've got some employees. Um, yeah. So I would, yeah, I would say. 10 to 10 to 30 is really common. If you've got a bigger shop, you get into multiple shops, it gets quite a bit bigger. And we, we have some, you know, MSOs who get a couple hundred thousand dollars back so it, it can get quite large. Jimmy Lea: Oh wow. So you started with the technical and you totally had me, I was like, oh yeah, Pico scopes, OB two sensors, all the scopes that they get. And, and it's not just a scope, it's not just, uh. Had or tablet that, that diagnosis, they've got it for every make and model. Sometimes. Uh, certainly Volvo has their own software and Porsche has their own software and Mercedes and BMW. There's usually not an al

    56 min
  8. 198 - Overcoming Set Back to Go From Farm Kid to Shop Owner

    APR 8

    198 - Overcoming Set Back to Go From Farm Kid to Shop Owner

    198 - Overcoming Set Back to Go From Farm Kid to Shop Owner April 8, 2026 - 00:58:14 Show Summary: Peter Bailey shares his path from farm life to owning Limitless Garage in Iowa. Early setbacks redirected him from the military and law enforcement into automotive. He built skills through hands on work and formal training while learning leadership in a fast paced shop. His focus on culture and people shaped how he leads today. He started his business in a home shop and grew into a full facility. He believes hiring for character matters more than experience. His story shows grit faith and steady growth.   Host(s): Jimmy Lea, VP of Business Development   Guest(s): Peter Bailey, Founder and Owner of Limitless Garage Show Highlights: [00:02:45] – Peter discovered he loved fixing equipment more than working livestock on the farm. [00:09:20] – His first shop job started with labor before earning the chance to repair vehicles. [00:13:40] – He learned attention to detail prevents mistakes and builds strong habits. [00:14:45] – Safety work like brakes and suspension must be done right every time. [00:19:10] – He pursued leadership after seeing limited growth at his first shop. [00:28:10] – Running a fast paced oil change business became his leadership training ground. [00:33:10] – Leadership means building culture that helps people grow and succeed. [00:38:20] – He left his job and launched Limitless Garage from a shop at home. [00:42:10] – He faced zoning issues and rejection before securing a commercial location. [00:47:10] – The technician shortage comes down to culture not pay or skill level. In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry? Share your story with us at info@wearetheinstitute.com, and you might be featured in an upcoming episode.   Don’t miss exclusive insights, expert takeaways, and real talk you won’t hear anywhere else. Hit Subscribe, drop a comment, and share it with someone who needs to hear this!   Links & Resources:  Want to learn more? Click Here Want a complimentary business health report? Click Here See The Institute's events list: Click Here Want access to our online classes? Click Here ________________________________________ Episode Transcript Disclaimer This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.   Episode Transcript: Jimmy Lea: Hello friends. This is Jimmy Lee with the Institute for Automotive Business Excellence, and you are listening to the Leading Edge Podcast. My guest with me today is Peter Bailey. He is the owner and operator of Limitless Garage in Des Moines, Iowa. Peter, how the heck are you, brother? Peter Bailey: I'm doing well. Thank you for having me on. How are you? Jimmy Lea: Oh, fabulous. Thank you very much. It's a beautiful day outside, beautiful day. If we could be outside, it would still be a beautiful day. Peter Bailey: Is it cold? Where you, where you at? Jimmy Lea: Uh, yeah, I woke up, it was 19 degrees this morning. Peter Bailey: Yeah. That's chilly. Yep. It's similar around here. Jimmy Lea: Yeah. Yeah. Did you guys have snow here this last week? Peter Bailey: Not this last week. Well, a minimal amount and it didn't stick very long, so it's all gone at this point. Jimmy Lea: Oh, yeah. Yeah. We had a few inches and it was gone the next day by lunch. Uh, anywhere in the shadows it's still there, but otherwise it's, it's pretty much gone. Peter Bailey: Yeah, I, we had a small snowstorm, like a little blip come through on Saturday and it was like right as I went to the shop to pick up actually one of, uh, my pieces of equipment to take it back to my home. And I had my boys with me. And so anyways, it was completely clean, but by the time we got it home, I had to wash again. So that was frustrating, but so good. Jimmy Lea: So what is a little snowstorm in your book? I'm new to this cold area. I grew up in Las Vegas. I lived in St. George, Utah. I'm a desert rat, so this climate change is new to me. Peter Bailey: Yep. Jimmy Lea: What is a small snowstorm in your view? Peter Bailey: Oh gosh. I mean this, when I, when I was saying with snow, small snowstorm for this, it lasted all of an hour and a half. And it was done. And so the amount of snow left on the ground was, I mean, it was there, everything was white, but at the same time, we're talking like half inch at best. So it's not much. Jimmy Lea: No, that's not much at all. You, you barely hit mock three, driving on the street, having the stars come at you like Star Wars. Peter Bailey: Yeah, it, it was heavy snow like coming down, but the temperature, it was still warm here on Saturday, so we were like 35 degrees or so. So by the time it hit a lot of it was melting anyways. Jimmy Lea: Yeah. Yeah. That's awesome. That's awesome. Well let, let's talk automotive, let's talk the industry. Let's talk, uh, automotive aftermarket. Want to start Peter, at the beginning? How did you get into this industry? Peter Bailey: Yeah. Um, so I've been in automotive now for 15 years at this point. Um, I started out actually wanting to go into the military, and so I had gone through like. All of my testing through my asvab, through my maps and everything in preparation to go into the military, into the Marine Corps, but then was denied at the end due to a heart mur. So no process went through, tried to get a waiver for it, didn't work, and by that time it was like six or eight months of a process and I was like, I'm not doing this again. I gotta see what plan B is. And Plan B was, I really enjoyed. Automotive. And so I was, um, yeah, I was sucked into there next, so it was going to find a shot to work for and uh, that's where it started. So I worked. Jimmy Lea: So, so where did you, I mean, how did you get, how was even automotive a plan B for you? Peter Bailey: That's a good question. Growing up, um, I grew up on a hobby farm and I really enjoyed tinkering on small things. And now almost Jimmy Lea: the ranch. Almost the farm, Peter Bailey: yeah. Almost a farm. Yeah. So like we had small tractors, we had, you know, trucks, stuff like that. Right. Dad still worked his normal eight to five job and everything, but we, we would do everything to bailing hay, you know, and livestock. And so I enjoyed working on the stuff around the farm and actually, of all people, I was thinking of being a farmer initially. None of my family was. And then one day we're sitting at the supper table and my sister looks at me and I was probably 16 at this point, and she goes, Peter, you don't really enjoy going out and doing all the livestock chores, but what you do seem to enjoy is fixing and maintaining all the equipment debt has. I said, well, you're right. I hadn't really thought about that, but I do find enjoyment in that. So that kinda sparked from like 16 years old on. Then I was like working in small engine shops, so like lawnmower shops, dirt bikes, stuff like that. All the way up until I turned 18 when I moved out, and that's when the whole Marine Corps thing happened. And then it's been history since, Jimmy Lea: right? The Marine Corps thing happened and then didn't happen. Peter Bailey: Yeah, it's gone. Jimmy Lea: It's gone. Yeah. Well, and I have a daughter that's a Marine. Peter Bailey: Oh yeah, Jimmy Lea: yeah, yeah. So she's in Hawaii right now. Um, and then my grandfather, similar story to you. He, his was not a heart mur. He had shaky knees. They called him, uh, crazy legs in high school. His knees were really loose. So here he got his draft notice and he was heading off to war. Oh, wow. And he had to report, so he sold his business. Peter Bailey: Oh, wow. Jimmy Lea: Showed up. On whatever showed up. And, uh, they, they gave him the physical and by the end of the physical they said, uh, thanks, but no thanks. Here's your ticket. Uh, you can go, you can leave now, you can Peter Bailey: go Jimmy Lea: home. Peter Bailey: That's terrible. That's a way worse story than mine. Jimmy Lea: Yeah. So he, he, uh, he had sold his business. He, he went back and, uh, opened up another dry cleaning business, uh, and his wife had a daughter. Like, I mean, he was going off to the war and it was not a good thing. But anyways, yeah, that, yeah. Lucky for him. He had shaky knees, crazy legs. Okay. So, so on the farm, you're working on everything, you're, you're really enjoying the mechanics of it all. Yeah. Thank heavens for the women in our lives that can look and see and say, Hey, you know what? You really light up when you work on. Cars, trucks, tractors, lawn mowers. Peter Bailey: Yep. Yep. You got it. Jimmy Lea: You're, you're swearing at these animals. What's going on? Peter Bailey: Just about, yeah, you're actually not too far from that. 'cause even now I got kids that wanna raise animals and we live on a small acreage now, and so like I've got some hard nose. I'm not raising that type of anil and sheep is like at the top of that. I'm not gonna raise sheep any longer. So anyways, that's the side story. But at the same time, you're right, a hundred percent. I did not enjoy the livestock as much. Jimmy Lea: Okay, so on the sheep thing, my brother is in Sacramento, California. Cameron Park, he has goats. Peter Bailey: Oh, okay. Jimmy Lea: Yeah. And sheep. Not sheep, I guess you can't call him sheep. Uh, dirty Fred is, is the, the alpha male. And then there's all this, this harem that he has. Uh, and they have all these little baby. The baby goat are so cute. They're absolutely adorable. Peter Bailey: And that's what everybody likes and they want, right? That's what my wife, Jimmy Lea: your Peter Bailey: daughte

    58 min
5
out of 5
6 Ratings

About

The Institute’s Leading Edge Podcast is where forward-thinking Automotive Service and Repair Shop Owners come to sharpen their skills, expand their knowledge, and gain an edge in today’s competitive market. Hosted by The Institute’s team of seasoned consultants and leaders with decades of real-world experience, you’ll get direct, actionable advice tailored to the unique challenges of running and growing an auto repair business. Each episode feels like a one-on-one coaching session. Whether it’s improving profitability, building stronger leadership skills, mastering marketing, developing your team, or planning for long-term success, you’ll find strategies you can implement right away. Have a question about your shop? Send it in, and we’ll answer it on the show.

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