The High-Performers’ Recipe: When Profitability Hangs on a Few Good Ingredients

Every successful company follows its own recipe: a unique blend of carefully selected and judiciously applied ingredients. Sometimes, simply putting the right elements in the right order can rekindle the flame of profitability.
A few weeks ago, I attended a meeting of a performance group made up of shop managers from automotive service centres. The goal: to share best practices, challenge ideas and help each other improve. That day, one member approached me with a special request: he wanted me to meet his brother-in-law, who owned a shop in serious trouble. Despite a healthy stream of customers, his business wasn’t turning a profit. Frustrated and worried, he had even begun to suspect his accounts clerk of dishonest acts, suspicions that proved unfounded after investigation.
Intrigued, I offered to visit his shop to understand exactly what was wrong. He asked that we meet in the evening at 8 p.m. to avoid distractions. Ironically, no sooner had we sat down than we were interrupted four times by customers picking up their vehicles, a telling sign of disorganization. He then led me into the shop itself, hoping for some quiet.
I asked him for a sales report from the previous month, including revenues from parts and those from labour. With a measure of pride, he handed me what he considered the best month of his life. Yet several inconsistencies leaped out at me: the parts-to-labour ratio was 73/27, instead of the ideal close to 50/50. Worse still, 416 invoices had been issued in a single month with three technicians on staff, an unrealistic pace. Generally, a technician can handle 3 to 3.5 vehicles per day. Such volume suggested inefficient management and an excessive number of superficial interventions.
Next, I asked a simple but revealing question: “What is the average age of your customers’ vehicles?” He fell silent. Not only did he not know that figure, but he didn’t grasp its importance. I explained that a younger vehicle fleet requires fewer repairs, whereas an older fleet increases service opportunities and profitability. After analysis, we discovered that the average age of his customers’ vehicles was six years, with only 17% of clients owning cars aged 1 to 3 years.
At the end of our meeting, he asked me point-blank what I thought. I replied honestly: “The problem is you.” Though shaken at first, he eventually agreed to listen. As both owner and operations manager, it was up to him to structure his business effectively and apply the industry’s best practices.
I then suggested he writes down, in black and white, the foundations of the “high-performers’ recipe”:
Stop selling simple oil changes: offer a recommended service that includes a 48-point inspection and a pre-scan of electronic modules.
Schedule preventive maintenance in the morning, including tire installation. This maximizes intervention efficiency.
Faire systématiquement un essai routier avant d’entrer un véhicule en atelier, afin de détecter des anomalies invisibles autrement.
Always perform a test drive before bringing a vehicle into the shop to detect issues that aren’t visible otherwise.
Complete the inspection rigorously and validate the results with the technicians. With an average vehicle age of six years, several repairs are logically to be expected.
Limit each technician to three vehicles per day, allowing enough time to perform the recommended work the same day.
Achieve a daily target of 2.25 billable hours per invoice. This ratio, often underestimated, is a key performance indicator. It ensures that each service generates sufficient profitability to cover the company’s fixed costs.
As he took notes, I saw a mix of doubt and insight in his eyes. His old habits were stubborn, but he seemed ready to try. Upon leaving, I felt a twinge of sadness: the recipe is simple, but one must dare to change.
I don’t know if he will follow these recommendations. But I do know he is driven by a sincere desire to succeed. Every day, he gives it his all. For that matter, he deserves our best wishes. Because sometimes, to find the path to performance, all it takes is a few adjustments … and a bit of courage.