Successful automotive mechanics can transition from technical work to business management by developing systems, metrics, and financial understanding, which requires learning to calculate costs, set appropriate pricing, and build sustainable business operations rather than relying solely on technical skills.
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🔥 Jorge Ordoñez EN VIVO | Talleres, Diagnóstico y Negocio Automotriz本站添加:
Yes, but damn. Hey, they give you muscles and everything, but what about when they see you live? You already messed up there, did n't you? So you said you stopped dieting or something. Already.
Clear.
Or you're already sick. Uh-huh. You can use that one. No, it's the knee, the classic one, the knee.
The knee. No, that's not how it is. I think that one is already a classic for all of us. Are you going to say that one of you isn't already experiencing knee pain?
No, no, they're gone.
The 'm' doesn't hurt me, it grates on me. That's why I have a pillow there, but you can't see it. Mother's son. Yes, I'm also at the right age to be a creator of this trade, aren't I? Without saying that a colleague told me we'll all get very old.
A colleague of mine, who's almost 60, told me, "You know what? If you put WD-40 on your arms and everything, I was really sore, and I gave myself a boner and everything, and I felt better." I said, "Really?
That's what life's all about. [laughs] Those stories are dangerous. Listen, there's a truth I told my ophthalmologist, the one who does my eyes, and he said I think I looked like a liar, but once I was blind, I used to wear glasses, I do n't wear them now because I had surgery, but he got some break cleaner in one eye, and my eye saw perfectly for an hour, a whole hour. I was saying, "This is like wearing glasses and, I do n't know, maybe he's using his break cleaner drops, right?" [laughs] I felt like sending the other one over and that would fix it once and for all. Do you know what you forgot, Jorge? You forgot that stuff they use on the repairs when they restore them, which is like a little vapor, a buffer. [laughs] Hey, but here it goes. Hey, but here you go, okay? This same colleague from WD40 has several there, right? And he told me that once his back was badly injured, he says, and that they went fishing here at the dam in Tijuana. Those of you here in Tijuana, leave it at the bottom, I'm in Tijuana or I know Tijuana, but there's the dam and he went fishing and he says there were some rocks like this in a stream and well, he was kind of there and you know, right?
Like 80 years old, right? Uh, he's in his fifties and says he stepped on something funny and fell and was swept away by the current. He says, "It enveloped me," he says, "when I got out, I didn't feel any pain anymore," he says. [laughs] The adrenaline of the moment, surely, right?
I think so. I think so.
I thought the same thing, but then I remembered that Simpsons episode, right?
By law.
The chiropractor closed. Come on.
Well, you see what Jorge says. It's true about the drops. I told them that when I got burned, I put lemon drops in my eyes. [laughs] About what?
When you got flamed, he says. What's that?
Welding. Welding.
Welding.
Ah, yes, yes, yes. You do n't wear a mask or anything. That?
Yes. Your eyes feel like stone, like sand inside your eyes, and the light doesn't hurt you.
Of course, of course, it must be. No, it hasn't happened to me, but I can imagine.
And it comes off with drops of lemon.
Typically, one has some meat, a potato, or something. He was asking us, uh, what should we wear? "Well, meat," one of them said, "dad." And we took everything out and in the end he says, "No, lemon."
Mother, the pain will be so great that lemon will relieve it. No, I don't know because I didn't believe it until I did it myself, and yes, you won't see breast milk just because you get a pregnant woman. [laughs] What do you want it for? Do you want me to get a divorce?
Look, if you don't regain your sight, at least you regain your speed. [laughs] Speed.
Well, you're single again.
[laughs] Oh, yes.
Oh, oh, oh. Hey, there was a message here from Francisco, it says, "Greetings, Jorge. I follow your channel and it's very good.
How are you?
Thank you very much. Thank you very much. Oh, it was for you. Oh, sorry. No, hey, yes, now they have to clarify, right?
Which Jorge? [laughs] That's why I put Jorge O there.
Ah, Jorge, just Jorge. I'm Jorge. Or, please, Jorge O. If it's for me, so I don't have to keep responding [laughs] to other people's greetings.
And you know, I don't know if it happened to you, namesake, but the name Jorge is very common here in Mexico and at school in every grade without fail there were at least three Jorges. Jorge, we'd turn around.
Oh, wow. Of course. [laughs] No, not me, luckily.
My name is also common in Ecuador where I'm from, but I haven't had that experience of several Jorges suddenly appearing.
Imagine, it was common to say Jorge and the janitor would turn around... Director, right? [laughs] At the same time.
All generations [laughs] the naughtiest one is the one who turns around quickly, as they say, "Hey, who's got hot ears?"
Yes, yes. Greetings Olvera. There's good old Olvera Electronic. Camaña Electronics, says, "Hello, to Olvera."
Greetings, warm greetings from Argentina.
Argentina, dude, dude, dude. Look, there it is, that intro is longer than the beginning of Star Wars. [laughs] I can tell you the intro. What are you saying? V, what the counter was doing.
Yes, yes, yes. But I saw you guys live, right? While the counter was doing it, or was it just for me?
No, no, we weren't live. You only see the intro, that's all. In fact, I'm going to play it again. Here it is.
[music] [laughs] So you don't miss out.
For all these haters.
I say they should make it 5 minutes long. [ laughs] Elizabeth says the miraculous river made her walk.
That's right. That's right.
Greetings to the good colleague who told me that, I don't know if I should say his name, but I think I should.
Very good. Greetings from San Mateo, Atenco, Toluca, State of Mexico, to good old Jimmy. If you have Questions for Jorge about mechanics, his personal life, or his work as a YouTuber—ask whatever you want.
Business questions too.
You know what happened? I thought I shared the live stream from just now, but I actually shared one of your live streams from before.
Anyway, while we continue, today I'm sharing the live stream, which is... Yes, yes, yes, of course, of course, of course. So, what's been going on this week, colleagues? While our good friend Tocabio is looking for his messages, what's been happening at your shop? Olvera, Pistón, and me too. Let's see, tell us, today I was struggling with a Cherokee and a Durango.
A Cherokee that won't charge, classic Crusler.
Symptoms.
Symptoms. No, it was giving me a code... What was it? What did it say? About the alternator filament.
The Field.
Uh-huh.
Okay.
But this is like McDonald's, it's the computer combo.
Computer and alternator.
And an original alternator.
Yes, original.
Yes, yes, yes. If it's not going to burn it out again. No, look, I remember, I remember from way back, what do you like? When did the regulator start being integrated into the PCMSC in Chryslers? I remember I'd put one in, I'd adapt the external regulator, three of them in a star configuration, and I'd adapt it so it would charge.
The battery light would stay on, right? On the dashboard, but I remember that was in the 2000s or something like that. So, since when has the regulator been integrated into the computer?
Olvera, you're the one... I do n't remember exactly. You see, these... I do n't remember. I think it was with the Jeep Dogs when they started with that, before... The Jeep Dogs. Okay. The computer.
Hey, but look, that's where they're weak, right?
I mean, they've always been weak there, right?
And it's an expensive repair.
Uh-huh. Yes, yes, yes. Like you said, the combo, right? The computer and the alternator. Yeah, that sucks. Hasn't that happened to you, man?
And the master mechanic. Has n't that happened to you? You guys are talking about the 2000s. I was in kindergarten, I think, around then. No, [laughs] well, not that much, but no, I was a kid, 10, 12 years old. I did n't even know what mechanics were yet.
[laughs] [clears throat] It'll be, it'll be debatable.
Oh, oh, oh. What about you guys? Ah, well, I was working on a motorcycle, I went with a friend, it was more like a video I made when I went to workshops to see how they worked, but just for fun, to learn about other things, to learn techniques and other things that aren't in my workshop, and it was really helpful [clears throat] to get out of my comfort zone for a while and go somewhere else because I learned a lot about other workshops, their way of working, their customs, everything, and I was having a great time.
We had a case of a motorcycle that did n't It was carrying a load, and we worked on fixing it with three mechanics. We had some differences of opinion, even though the symptoms were the same. Each of us had a different idea, but in the end, we managed to fix it. We got the bike working and delivered it, and we even ended up with a lesson in that video. I recommend you check it out on my channel, okay? And you guys, Jorges, knock. Well, what did I do this week? That was the question, right? Like, what did we do, what have we been up to?
Yeah, what's been happening in the shop, what are you working on, whatever.
Well, some of you who follow the channel might have noticed that I stopped uploading mechanic videos a long time ago, years now, because basically, my role changed drastically.
Until three years ago, I did mechanics practically every day, but three years ago I decided to stop doing mechanics to start learning, just like I learned to diagnose and repair, but now for my shop, for the management side. I didn't think it was going to be The change has been so drastic that, for example, in the last month, I haven't been to the workshop, but I know everything that's going on because my goal has been to build a system where I can know exactly what's happening if I want, daily, weekly, monthly, and stay in contact with my partner who operates the workshop. But I don't necessarily have to go there, you know? So, my weeks are super boring, that's why I don't upload videos, because what I do is sit in front of the computer for 10 hours a day, generally, sometimes a little more, sometimes a little less, working on that, on systems, taking advantage of the artificial intelligence that now gives us these facilities. I swear, just 6 months ago I was saying, "No way, I mean, if I do that, it's not going to work for developers or something like that, right?" But now with artificial intelligence you can make applications, you can do data analysis, it's amazing. So I spend every day, even more than I'd like, because sometimes I also dedicate weekends to further refining that aspect of my management skills.
So, it 's really not as boring as you say, is it? You say, "Ah, my day is so boring."
Document it. For me it's exciting, but seeing myself on my computer. Yes, yes, but you know that when something motivates you, you want to talk about it, right?
So, tell us, tell us. And it's like I've tried, I've been trying, but it doesn't work, it doesn't work like mechanics, it doesn't work like a diagnostic where you don't know what's wrong, you look at it, you search here, you find the fault, the car is fixed. Hey, but you know, I've always been against that. Take, for example, teaching, in terms of instruction, the teachers from school onwards, right? Forget about the mechanical part, an instructor of a class that you and I know, several of whom are among the very first, right? But most of the time it's not that they don't know, but rather that they don't convey that teaching in a way that sticks with you, makes you want to learn, that gives you that moment of ' Okay, I understand now.' I mean, I remember when I really started learning the theory of what I do, because I started doing it with my boss and I did it because, well, this is how it's done, you check here and expect to see this, right? Turn on the light bulb, boom, boom.
But once you start studying and everything, I remember that moment of, "Okay, no wonder that lightbulb goes on," and then it motivates you to want to do it, right? And obviously, you have to do homework and everything, right? Look for the right teachers, among them are many that you and I know and maybe follow. So, what you're saying might be boring for someone who doesn't know how to convey it or someone who doesn't have that passion. That's why I'm saying, tell us about it. Do you mean that I should do it right now or that I should get motivated and put it in videos?
What do you mean?
No, no, put the videos out and tell us a little bit. Just a brief overview. Uh, the days are very boring, but look, I like this and that.
Oh, no. Yes, yes. I mean, I have videos where, for example, I fixed up the workshop a few months ago, I put it out there and wow, it was great because there's something entertaining, but for example, making videos of this type is generally what we 're seeing. Right now, we're talking.
Uh, I'm really trying to make some entertainment out of management, but it's super complicated, I mean, it's not that I 've ruled it out, it's just that I haven't found it yet. He says, "Boom, like, for example, making mechanics videos, but I'm more focused than ever on what you're saying, on how I convey this, because a few years ago I was blind, I was really lost on how the heck I should operate a workshop." Now I think I have a pretty solid foundation to teach, but I realized it's super complicated to do so. In other words, like in mechanics, it's not the same for you to say what you know as for the other person to understand and learn it.
So, I'm looking for that, but I feel pretty much in slow motion in that aspect, yeah, but otherwise I'm working really hard on the projects that are in the back.
I have a question, Jorge.
Clear.
So, do you feel like you've figured out what you want to be, or do you feel like you've lost your way? Ah, because at some point you, who started as a mechanic, transformed into a YouTuber and evolved into an entrepreneur.
Businessman.
So, how do you feel? Do you feel that things have become clear regarding what you wanted, or do you feel that you are still searching for something you can't find without knowing what it is?
No, yes. Listen, and that topic is deeper for me than it seems, because that thing has led me to points where I say, "Okay, what do I do?" In other words, I either concentrate here or I concentrate there. Uh, what for? I mean, why am I doing what I'm doing every day? It has even led me to moments where I've said, "Damn, it seems like I'm depressed because I'm not enjoying what I'm doing, am I?"
So, I could tell you that today I can tell you that I know who I am. I am a mechanic who owns a workshop and knows how to make videos, who can make videos, and transmit that in videos.
And apart from that, I'm trying to condense everything I have, that background, let's say, to continue both evolving myself and perhaps helping the people who follow my videos. And why not? With tools, in this case digital ones, that I am preparing to offer the same solutions that I sought before, but in a much more concrete way to people. So, I don't fight with him anymore. I'm either a mechanic, a YouTuber, or a workshop owner; I'm all of those things, and from my point of view, that creates a mix and probably a result that I couldn't achieve if I were just a mechanic, just a workshop owner, or, I do n't know, just a YouTuber. So, I'm combining all of that. In other words, for me my identity is everything I have done and that little bit of everything allows me, in my opinion, to see things from a certain perspective. Quite interesting, but at the end of the day, well, everything, how can I put it? Everything is relative, right? In other words, what applies in mechanics, I mean, the processes, uh, the logic, I mean, you can't skip step two to skip step four, uh, it's the same thing, right? In the business section, in the help section, of course.
Uh, how can I put it? So, there's a process in everything, right? So, you have a very well-defined way of transmitting a diagnostic process on video, right?
Clear.
So that's why I was asking, have you already found the right profile to broadcast on? Because I've seen many of the videos, the latest ones he's uploaded, mainly on Facebook. I have n't seen you upload much to YouTube lately, and most of what I've seen is more helpful, for us workshop owners, to improve in that area. I 'm at that point right now personally, and I'm kind of missing that click I had when I said, "Ah, okay, I connected the light bulb with what the theory said. Ah, that explains why the little light comes on, right? If it doesn't, it means this, that, or that.
So it's like they're linked. I don't know if I'm explaining myself well. Have you found that yet, or are you still looking for it?
You mean, have I found how to transmit in videos?
No, no, I haven't found it.
No.
Okay.
No, because I've tried, but no, it's not life. They 're not as powerful as mechanic videos.
And what do you think is holding that back? As a technician, you say, "Mechanic, right?" "Teach me how to diagnose, or your process itself, or maybe a combination of both."
Yes, I think it's both. Look, because what happens is that when you're in mechanics and you own a shop, you don't want to hear about management until you reach a point where you say, damn, I need it. Because what you want to know is mechanics, how to fix the car better. Of course, that's what I thought, what I wanted, but at a certain point it's not just that anymore, because at a certain point you get older. Look, I started the shop when I was 27, I'm almost 40 now.
So, I don't regret at all having made the decision three years ago to dedicate myself to what I truly feel is my calling, which is learning how to have a successful shop. I mean, I want to have a successful shop and eventually, hopefully, a chain of shops, right?
That's what it takes to be the best mechanic, my answer was no.
So, managing the shop was the solution for me. So, that's where I find myself. So, if I want to share what I've learned in management in multiple ways, there aren't many people who want to listen to that because they think what they need is to know how to fix their car better. I understand because I've been there. That's one thing. And two, obviously it's not as entertaining as editing a video where there's a problem and more eyes wanting to watch it.
Right.
So, social media doesn't pay very well. It's like, "You know what happened there, Jorge? You created there, you know what happened? You created a niche and a community." Right.
And they're expecting exactly what you initially gave them as a taste.
So, when you want to talk about another topic, I'm telling you this because it happened to me.
Yes, yes, I first created my channel, I created a motorcycle mechanics forum, and when I wanted to share other aspects of my life that fulfilled me, people started unsubscribing, my numbers started dropping, everything started badly because I actually had questions for you here, but all the You answered that it was almost like this: did you do what you liked or what people wanted you to do? Uh-huh. Because that's happened to me before, I want to share certain things, but people don't approve, and you have to follow the path they want. So, you do what you like.
Yes. Uh, I do what... look, when I realized the views weren't the same anymore, since I wasn't diagnosing or repairing cars, I wanted to put the same effort into management, but there wasn't the interest, right?
So I started looking for ways to just focus on making the videos more entertaining, but I didn't enjoy doing it.
Right. So it went badly for me too because I did n't have that desire to do it. I did it because I wanted to keep, let's say, nurturing my social media presence.
Right.
Then I stopped completely, I stopped for about a year, I didn't do anything.
Oh, yes, yes, I remember.
And I said, we were all asking, "Where's my namesake, where is he?" Exactly. So, What happened there? I told myself, "Nothing, I'm going to do what I have to do." I have to learn about management, I started studying, I followed consulting firms, I traveled, many things, but now what I'm doing is planning everything to come back with something that I say, whether it has views or not, whether people approve or not, I know that this is going to resonate with a specific group of people who are going to love to see it and that I'm going to be able to help them, just like maybe I helped or entertained those who watched the mechanics videos.
So right now that's my only goal, like, while I'm doing all this behind the scenes, I don't really need to put out videos. I haven't taken them out yet, but when the time comes I'll do it from that point of view, because otherwise, I tell you, it's depressing not to do something you don't really want to do.
Sure, yes. No, you're not interested. No, but notice that there's something you might agree with or not. Let me, let me figure out how, how do I put this?
I have felt, I personally, that the process of diagnosing a vehicle is so logical that once you develop a program it is as easy as I was telling you, Vera. I tell him, just now he was working on a 3.6 six engine that almost daily tells us, "Ah, it was the Pentastar, it was to such a degree that Piston's wife said, it's the same car." And now he sent us a video, uh, this is another one, uh, so you don't think... But what I'm getting at is, I was saying to Olvera, I said, "Are you going to make a video on how to time without any special tools and with one hand tied behind your back?" No, I mean, it's so simple that you already have it, you don't even know, you've mastered it, right? So, a logical process comes into play that helps you in life matters, right? Now, let's talk about how to develop yourself in the workshop, how to develop yourself as a person, how to develop your beliefs, how to develop whether you are political or not, how to filter and deduce, because you know that, for example, there isn't one check that says " computer is bad," it's a series of checks and one comes to the deduction or conclusion that it probably is, it's not even certain, right? So the diagnostic charts say, try a new module, right? Or try a module, uh, what do you say? Try a module that works, right?
Yes. Replace the module with an unknown one. Okay, module, replace the one that follows, they tell you.
So, what I'm getting at is that process translates into everything else, right? That's why I was telling you a little while ago, everything is relative, right? In other words, everything is relative. So, my question would be, how can we motivate ourselves? I'm telling you, I'm in that process. Motivating ourselves to want to grow in that area. Could it be that, as Piston said, you created a niche and so maybe you have to reinvent yourself by opening another channel in a different niche, or in the same one, or how does it work, right?
In fact, I did. Look, I opened a new channel to dedicate myself to talking only about management, but you know that dealing with something from scratch also takes time. So, of course, that's developing. But what I can tell you is that I have n't dedicated as much time to recording videos as before. Well girls, before I used to spend whole years, 3, 5 in the morning editing videos so I could upload them.
Then I hired people; they did the editing for me.
Uh, but nowadays my main focus is on the workshop, management, and developing a finely tuned process that then allows me to scale a lot, right? So, that's why I distanced myself a little from social media. So, when I return, well, we also have to accept reality. In other words, you only get attention on social media if people want to see you. It doesn't matter if I feel good making the video or whatever. I have to come up with a good proposal, just like they liked the mechanics videos, I have to come up with a good, different and powerful proposal that people want to see. And as I said, I haven't developed it that much; I've given more priority to other projects outside of social media.
Clear.
Yes, yes, yes.
Let's look at some messages, shall we? This, Autch.
Yes, go ahead, go ahead.
Let's see. We're not even going to see anything like that, just randomly. He says, "I work doing diagnostics and general mechanical work at people's homes. Sometimes I don't earn enough for my monthly expenses. Several times I've thought about looking for a different job. Everyone, give him some brief advice [sighs] on what can help this person grow his business and not have to go back to working, because that's his biggest fear. From my experience, having also worked doing diagnostics at people's homes, first of all, you charge a certain, how can you say, fee just for coming in, and then you charge for your diagnostic.
Oh, I don't know if it's the same in Mexico, or wherever, that's also the problem, because here in the United States you do have to charge for the diagnostic, right? It's not free, it's like the prayer where you just arrive and they give you, what's it called? The code, and then they tell you, 'Oh, I'll sell you the part.'" That's a peasant. That's not a diagnosis." A diagnosis is finding the root cause of the problem, and it can be one or several problems to begin with. You have to value your work because you can't let the customer pay you with beers or something like that.
They have us... they have us... they've got us... that's what they told me, a beer there, my friend, the customer here.
Look, I don't have a problem with that, huh? I mean, if they want to pay me, I'll sell them. [laughs] It's just that they don't see us... how would you say it?
as mechanics, they have a different concept of us.
No, it's not like a technician and a mechanic are different. The mechanic is the one who fixes things, but like Jorge said, they're already based on the old ways, like an alternator and things like that, which can be repaired. And the technician is the one who looks for the root cause of the problem, the one who is... how can you say it? studied, has invested time in all of that. That's the difference. Well, for me, that's the kind of mechanic, a... a diagnostician.
You know what the point is, my friend Volvera?
That I agree With everything you're saying, the problem is that we know this, but we often can't convey it to the client, and that's the big challenge. Because to the client, we're still just monkeys with keys in our hands, I mean, let's be honest, for most people. So, we can do it, but we also have to understand the client from the beginning; that's the problem.
Of course, we have to be honest, that's how it is.
I tell my clients here, " You know, I'm already working hard, and I'll fix you as much as you want. If not, look, I won't even waste my time." But because you already have status, you understand?
No, but even so, you also have to value your work.
You have status. The four of us here have a channel that supports us a lot and helps us, and we already have a track record that helps us. But, for example, this guy is new, and he's just trying to get into it, and he doesn't have a channel and he doesn't have that kind of support. So, how can he develop without keeping his job, without going back to work? What advice can you give him? Because his fear is that he's already He invested all his time and money in this and doesn't want to take a step back. So, my advice is to use what's trending, which is social media, the same thing that helped all of us. Promote your work, because if you don't promote it, what are you selling?
What are you offering? What does that guy do?
But if you promote what you 're capable of, like we did, the work will come to you on its own.
Okay, getting back to the topic of diagnostics, you have to cover the basics. Sometimes we go out there wanting to pull out the oscilloscope and do everything and be the good guy, right?
And it was just a fuse. It was a fuse. Or the battery was loose, the terminal was faulty.
So, you have to cover the basics, right?
Where does the diagnostic process begin?
Well, from the moment you interview the client, right? Hey, how often does this happen? Do you do it when you're cold? Do you do it when you're hot? Out of the five days you've been working on it, how many days does it happen? In what situation? And so on. Right? Right? So, here's the main thing: if you use networks, you know you have to know how to charge. Just today, a colleague came to me who works at an AutoZone two blocks away. I know him; he's sent me work.
When he's stuck on something, he sends me the job, right? And now he came to me with a car, and he'd already replaced everything. It was an Explorer, like a 2013 or something. And he says, "I already changed the spark plugs, the coil, the coil pack, the wires, I already changed everything, and it's still malfunctioning." And the lady is really picky, she's really picky, she says.
And so I said to her, look, I started asking her, "Hey, what have you done?" "And why did you change them?" and things like that, right?
Anyway, at the end of the day I told him, "Look, uh, we can check it out, I can schedule you for the day after tomorrow, I can't see you tomorrow, but look, the first hour is charged like this, the following hours like this and so on and so forth so you can talk to your client, right?"
And he says, "You know what? I'm going to start doing that," he says, "because you know he has n't paid me yet and he's already told me the whole story, right? What I'm getting at is, you do have to know how to charge, you do have to have good equipment, you do have to use networks, but basically, what do you do? All brands, diagnostics, mechanics, I mean, what do you do? Programming. So, you have to find a niche, right? And you know what, I'm good at this, so you know what, that's what I'm going to focus on. That's going to be it, and then if I'm already using networks, hey, I see vehicles that won't start, right? A colleague I also invited to the channel says, ' I work on vehicles that won't start, right?'
Yes, he says, and that's a niche, right? I know someone who's already migrated. I know, yes, he's already migrated to another one. Perfect, but his niche is vehicles that won't start. Others might be doing very well. Their niche is, you know what? I'm going to..." I'll program any module you want, from any brand you want. I have all the equipment available, and it's perfect. It's a niche, right? And you use social media, right? To promote yourself. But actually, I don't know who it was; I was looking for the comment here, I didn't know who it was, but the advice from Cristo Salva 2024 is to find a niche. That would be the starting point. Once you find your niche, then we can start to see what tools you can use, both literally and like what Piston said about social media and all that kind of stuff. I'll know how to charge, as Olvera said, right? I don't know what you all think.
I'd also like to give my colleague a recommendation based on my own experience. I'd like him to realize something, which is exactly what we were talking about a moment ago. He's no longer just a mechanic; he's now the owner of his own company, his own business. He knows as much as, or even better than, how to manage his mobile business than he knows how to fix a car. And if the answer is no, that's probably where the problem lies.
Why does it cost him more, or sometimes not even cover expenses, and he's undercharging? The thing is, when you stop thinking for a moment about how to better diagnose a car and start thinking about how much each hour I spend diagnosing, repairing, or investing my time in a client's car costs me, if it costs me, for example, 50, then I ca n't charge less than 50 because I'll lose money. So, I have to calculate that price based on those 50 that it costs me. So, what's my profit? 60, 70, depending on what I want to earn.
If people don't want to pay that, they have to evaluate whether they can lower their rates to charge less, or they simply have to find clients who value what they offer. And a very critical point for me is that many times we try to show value in our work to the wrong client. So, critically, define your client. What do you do? Well, I do good diagnostics.
Then, you have to work for the client who values having their car's problems found. It fails precisely, not to the customer who thinks that diagnosis is just plugging in a scanner, seeing a code, and that's it. And we have the skill to sometimes address those customers who have these misconceptions, and perhaps with a good explanation, you can say, "Hey, here's what I'm going to do for you."
In fact, I've removed the word " diagnosis" from the shop. I tell the service advisor it's forbidden to say "diagnosis" because people misinterpret it. Because diagnosis is really about procedures.
Sometimes you're going to have to disassemble something to inspect it, right? So, that's what we call a procedure; it's a process of removing and replacing, and that has a cost. So, it's even about understanding a little bit of customer psychology and seeing how we can educate them so they actually pay what you need to charge for that.
So, if you don't do the math, if you don't learn about your costs, it's very difficult for things to improve. And yes, going back to working as a mechanic if you don't master the management side of things would be the only alternative. And this idea of being your own boss... Business is really tough, I mean, we have to accept that. Really tough. It's not as glamorous as we imagined when we were starting out. We've all been through it, we're going through it now, and we'll go through it as we grow what we're doing.
But I think if you focus on learning workshop management or business management, that's the critical point that's probably holding you back right now. And from there, as all my colleagues here have said, you'll focus on networking to promote yourself and build authority, you'll improve diagnostic processes and whatever else is necessary, but knowing exactly why you're doing it.
Very good, very good.
[clears throat] Okay.
Alfonso López says here, " Best regards." Good harmony to listen to the mastery of the four in this sacred office and blessings. Thanks a lot.
Greetings, forg says, "Good evening. I want to open a workshop when I'm 18. What do you all think?
I'd say, excuse me for butting in, but I'd say 18, wow, you're really young. I think it's better to learn as much as possible from someone who pays you to learn, which is sometimes a job. When you get paid to learn, get the most out of a job and then, with a little more experience, go for it. This isn't easy even for people who have been around for 10 or 20 years, much less when it's one of your first jobs, unless I'm wrong and the guy started working at 13 or 14 and knows what he's doing. I see him at 18.
You at 18? Oh, yeah, there in Mexico.
But you were a mechanic even younger.
Oh, yeah, since I started when I was 8, I couldn't even walk.
Jorge wasn't even born yet, he says [laughs] no.
I was already three Kids.
You opened a shop when you were 18.
Yes, I opened a shop when I was 18 in Mexico.
And what happened? How did it go?
Well, like always, a whole month, I had no work at all, not even the flies would land.
And then you're in that shop now?
No, no, no. I'm here in the United States now. I left it there and came here.
You're swarming with flies, right? [laughs] It's not the first month anymore. I had no work, nothing. They're doing absolutely nothing. Oh, I had a friend who was a taxi driver and he saw me there and he asked me what I was doing. Well, I opened my shop and I fixed his car, I did the brakes, I remember, taxi driver. Ah, the caliper, talking about bad customers, right?
And that's what some people say, I mean, to each their own, right?
And he sent me the whole fleet of taxi drivers from his town.
The problem is they want it practically for free, and they need it urgently, right? I mean, but George, that's a key point. Look, if you can give something like that super cheap to a taxi driver, because that's what they value, and you can make it profitable, great. But what you do, that intensive diagnosis you do, trying to pinpoint the exact problem, isn't something a fellow taxi driver is going to appreciate, because they're in a hurry, they want to pay as little as possible for their own business, and they generally think they know how things should be done, right? I think we're somewhat in agreement on that, but there are many people who do very well if they focus on that niche, as long as they're prepared to deal with that.
Yes, because I also used to fix the public transport vehicles back in my town, and I'd do the adjustments the same day, and they paid me well.
And what happened with the shop, buddy? Since you have the same story as the person who asked for advice, what happened a month later, or how did things go?
Well, I'm telling you, that's how I started building my clientele with them. And you kept the workshop going for a couple more years, months. I had it for 5 years. 4 years.
4 years. And then what? Did you come to the United States or what? I came here and started over.
And did you ever open a workshop here or not?
We're working on it. Yes, I had another partner right now, but I want to go my own way.
So, you have a workshop with a partner.
Mm.
How long have I been with him?
Right.
Oh, 4 years.
4 years. Let's see, 18. 4. Come on. 22. How old are you?
I'm 40.
Oh, so we're almost the same age. No, I think I'm missing the beard and [laughs] Oh, okay, okay, okay. No, so I was born when you opened the workshop. We're almost the same age.
[laughs] Hey, that's interesting. Look, just watch this conversation. Right now, the approach my namesake is taking, right? To everything. I mean, he was just talking to Olvera, a little while ago he was talking about the person who, hey, some advice, I'm not a mobile technician, and he started talking like a businessman.
So, you can see that there, you can see the passion, right? And that's what I was referring to a little while ago, uh, finding [clears throat] that, like, oh, how do I say it, not just going for it, going for it. Uh, yeah. Ah, like a typewriter, click and OK.
Like this, ta ta ta. Oh, you already said that.
It's just that I've also noticed that those who are, like, technicians and open their own business, it's hard for them, and someone who's dedicated to the business and opens a mechanic shop, gets it up and running really fast.
Yeah, because you see, they don't have the comfort that we mechanics have, where if there's no one else to do the work, I'll step in, put on my cape, son of a [ __ ], and just keep working and working Everything. Why? Because I can, but instead, I'm setting a very low ceiling for my business to truly thrive, but it's the easiest thing for us. On the other hand, the guy who doesn't know, the person who doesn't know how to do mechanics, has to be a good entrepreneur and find people who can do what he knows the business needs, and that's why I think they grow faster.
Yes, I'd say we have an advantage being mechanics, but what happens is that we get confused and do what's easiest, getting under the car instead of using what we know to hire better and grow our business, right? We do lean more towards the mechanical side than the business side. Right, right, right. Good point.
Or a question, and I want you to be honest with this question I'm going to ask you.
Oops. Oops.
You've already reached a good level where we all know about your successes, and I don't want to focus my question on that because I already know you're successful. My question is actually the opposite.
What did you have to go through, and what moment Do you sadly remember what you had to go through to get where you are now?
Because to be sitting in that chair right now, there had to have been a series of good and bad events, but there had to be some very strong ones that at one point made you say, "No, this isn't for me, I'm quitting." See you." What? What was the biggest setback you experienced along the way?
I think my answer might surprise you a little because the first time I said, "Mechanics isn't for me," I mean, yeah, mechanics started when I first came to the United States, and every car I touched, I messed up, and I don't know how my boss didn't fire me. So I said, " Mechanics isn't my thing." And I branched out into driving a taxi, doing other things.
And then, kind of by chance, someone was looking for a mechanic, and I said, "Okay, I want to try again." And I rediscovered my passion for mechanics. I mean, I 'm almost not a mechanic at that point. Almost, almost.
Hmm, after three, no, what would it be? Four or five years of working as a mechanic, I started getting into diagnostics and becoming somewhat good because I wasn't that good. I started learning more when I opened the shop. Well, after four or five years, I said, "Now I want a shop." So, I went into the shop with all the excitement and everything that... I was going to break it. And at my job I was earning, I don't know, $700, now I'm going to earn $1,000, I'm going to earn $ 2,000, but for five years that reality didn't materialize.
So I said, maybe I'm not a good shop owner and this mechanic thing was killing me. I had already gone to the hospital in an ambulance, I had reached points where my mind wasn't working well because I was working so much, I was so stressed, weekends, early mornings, I was out like a piston biker at 3 in the morning, just giving myself a little something to cope with all the hustle and bustle. I mean, in the fifth year of having the shop I said, maybe I'm not a good shop owner or maybe mechanics itself is useless because this thing isn't working, I don't have money, I'm... I'm tired of all this. And that's when I gave myself the opportunity to learn shop management.
So I learned shop management in the first year, I was really excited.
I saw how things changed, sales in the shop grew. I finally managed to establish procedures They were more or less doing well, and I reached the point where I no longer had to do mechanical work; that was my goal. So I said, "Now I'm going to be complete."
And something strange happened: when I had the shop up and running, people working with me, doing the work for me, the shop billing more than ever, I fell into a kind of depression. I would sit in front of the computer and spend all day there, not knowing whether to start here, or there, whether to do this, or that, whether to record videos, whether to go to the shop, and so I would go to the shop, thinking, "What am I doing here? I'm not fixing the car anymore, and I feel like I'm wasting my time."
So it's like I had everything I ever wanted on this path, and I felt empty. Completely empty, worse than when I was stressed, because when I was stressed, at least a car would come in that wouldn't start or had a problem, and when I fixed it, even if it was 2 or 3 in the morning, going to... The house, I was so happy because I wanted to start that damn car.
Then that satisfaction, like in management, was gone because if I saw something improving, it would take six months, a year, two years, three years, maybe five years, and that immediate satisfaction was gone.
So I got more into psychology. I think I should have gone to a psychologist so I wouldn't be making things up myself, but I spent a lot of time listening to books on psychology to try to understand what was happening to me, and in the end, I'd say that only now do I feel good being a workshop owner without having to be on top of everyone, of everything that happens in the workshop. And I wouldn't say I'm successful yet, because for me, success would mean having a fully functional workshop operated by other people, and not having to live in fear that if someone leaves, or if this happens, or if that happens, I'll have to come back. So, that would be incredibly successful, right? How?
You're still afraid, right?
Yeah. You know, I had a good experience with that. Remember when we did a live stream and you were saying to me, "What happens if two of your three leave?"
Guess what happened. Guess what happened.
What happened?
Two of my three left. Guess how long after each other they left.
What? What?
I had three mechanics, right?
And you were saying, "Wow, but if two leave, you're stuck with one." Okay.
Two left. One left on Friday and the other left around Tuesday of the following week.
No, right after. Sure, after that, but not right after, right? This happened about a year ago.
The thing is, look at how... and that was also a really good test, hey, for me to see if I was really cut out to be in the position of workshop manager.
It turns out that one of them really screwed up and practically ruined an engine. A transit van.
The engine's acting up, how much will it cost?
Maybe 18,000. Okay. Screwed up.
We agreed to come and check it out to see what happened. To learn from it. The guy doesn't show up. Okay, too bad. He's gone, he never came. I already told him not to even come, I mean, what did my boss want, right?
But it turns out he was the brother of another guy who was also there, and they shook hands, I think, between brothers, and the other one left too.
So I was left with the damaged engine, without the mechanics, and now with all the other cars piling up, with that car taking up space. So, that was the only time I said, I have to fix this car so the only mechanic left can deal with everything else, keep making money.
Yes. And then, once I'm out of this mess, I'll keep looking for another mechanic because I'm going to need him. So that was the moment I said, "Screw it!" I mean, am I going to be able to overcome this with all this damage? Did they leave, with the loss of practically 50% of the workshop's production? And the answer was yes, because my workshop was intentionally designed to be profitable with 50% of its production. That is, 50% of what the workshop produced was dedicated to keeping the workshop afloat, and what I could do with the other 50% was dedicated to generating my profits.
So I operated at the break-even point for a few months until I found another mechanic, and well, we kept going. But what I want to tell you is that, I mean, having my numbers clear, having a clear strategy, did work, because otherwise, it would have knocked me down and sent me back to being a mechanic.
Fortunately, I only repaired that one car, but I didn't go back.
Hmm. Do you understand? So it was a good test, and the prophecy came true.
But the good thing did come true, right? And I knew it was going to happen because [laughs] look, I kept thinking after that question that He says that maybe your employees were going to see the video and that's where they often got the idea, "That's right, because I'm going to leave and I'm going to create my own thing." Do you understand?
I'm going then, but they didn't leave for that reason. They didn't leave for that reason.
But, but, you know what? Look, there's a detail. I mean, you asked him, "What things have you been through?" No. And he sadly told us how he struggled and everything, but if there are no mistakes, there's no learning.
If there's no difficulty, there's no growth. It's like when you go to exercise.
I remember going to the gym and I had a trainer who would tell me, "So much blood, so much blood."
And what he meant was, "Okay, it was six routines of this and you can't do it anymore, do two more until it hurts, until it bleeds, and the next day don't do chest, you're going to do legs, you're going to do back." Why? Because you have to let the muscle grow. It bled, it's going to be sore, it's going to repair itself, and the muscle will to grow. So, if there's no failure, there's no learning. The thing is, here, as my namesake rightly said, it's like us, right? I mean, we've all had to deal with, and we'll continue to have to deal with, that unbearable situation.
For example, people are asking, "Hey, what happened to the Nissan?" They say, "It was Nissan waiting."
What happened to last week's Nissan, and so on, right? So, we're going to get those difficult cases that might make us think, "Wow, maybe I 'm not in the right business," right?
Like, you know, I do something else, as someone said, right? Someone made a comment, right? But if we have a solid foundation, we're more likely to find a solution. Why? Because we're on solid ground. But if we're just wandering around and we only know that the lightbulb has to go on, but we don't know why, right?
Well, we're going to get tired and say, "No, you know what?" "I already lost."
Besides, Jorge is Superman, I mean, he's a businessman by night, and that's true, but he didn't become Superman overnight. He keeps coming back, I mean, he can come back, fix two engines, and go back to... Ah, I don't know, I don't know if that's an advantage or a disadvantage because, like I said, the most convenient thing is to stop and go, right? But, now that you bring it up, I do think we shop owners need more space, especially where we can be more in touch, because I think this mentally wrecks us. I mean, I've never suffered mentally as a mechanic what I've suffered as a shop owner. I swear, I've never faced anything this intense, and it's still happening to me.
There are days when I try to give 100%, but sometimes it's only at 10%, and if that's my 100% that day, well, I give it up to 10%, right? But, I mean, there Things happen, you know, the solution isn't in fixing a car right now, the solution lies months from now.
Hey, buddy, excuse me for interrupting, but it's more like, okay, when you have a mechanical problem, what happened with your mechanics? I mean, you can throw in the towel and whose problem is it? The shop owner's.
Oh, yeah, right.
But when you're that owner, right? Then the profit is different too, you have more at stake than the mechanic, right? So, you earn more and expect to lose more, right? But compared to what I was going to lose as a mechanic, as a businessman, you did the right thing. I mean, you said the key, you said, "You know what?" The thing is, the workshop, I knew the numbers, the workshop was made precisely so that I would work with 50% of the bearded guys and oh boy [laughs] oh boy, man, he doesn't let himself be, does he? But that's the point, you have more at stake, but you have your foundations, like again with the mechanic example, right? So, the key point here is that the person who wants to start a business, let's learn, because I'm in that process, let's learn from our experience and apply it to this other one because they are very related, it's just that we don't understand it and we need someone to motivate us. That's what I've been telling you from the beginning, I mean, you already found that, I do n't know, you yourself remember when I invited you here to the channel years ago, do you remember?
Yes, yes, 21.
Since then, since then you had in mind, I'm not going to be a mechanic, I'm going to be an entrepreneur. And you and I were talking, it's just that Scanner gave us a tool that you have no idea about and you told us about it and I have the same thing.
Piston too. Look, this person knew exactly where to start to awaken that thirst for learning, because then we went on to take other more advanced courses and whatever else you like, but it took time to see that spark. So right now you 're in a situation where I really hope to see more from you, honestly, because I haven't seen you release anything lately and I really want to see it, I really want to see it. I mean, I'm going to come back, and I'm working hard behind the scenes, as I said, on tools that aren't just about telling a colleague, "Ah, you have to know your break-even point," and a lot of other things that will be completely incomprehensible to them and they won't even be interested in learning. I'm preparing technological solutions to make them available to those who need them, right? And as I said, that's opened up for me lately, so I'm really involved this year. I'm really into that, so no, definitely not, I mean, disappearing from social media is impossible, impossible. And we're going to ask you a favor, we're going to ask you a favor, um, when you have something like this, let us know so we can also support the audience, and also if you, who are watching this video, want to know more about the namesake, look, down there at the bottom there's a little bar running where it says Jorge Ordóñez, but it's with N. Ordones, automotive diagnostics. Can you tell us a little more about automotive diagnostics? Did you mention anything to us? Let's see.
Ah, yes, I was saying that automotive diagnostics is part of my background because I started with automotive diagnostics, but definitely my life is now focused on something else, related, as you say, I mean, the chain of mechanics and what I'm doing, it all goes hand in hand, but I no longer dedicate myself to diagnostics, I mean, I can diagnose a car, I haven't forgotten everything I know, right?
I can repair a car like I used to, but my focus is now more on management, so soon that automotive diagnostic might disappear from my channel names because it's no longer relevant.
Look, my wife Elizabeth Astorga has a question. She says, "Mr. Jorge Ordóñez, oh, 'sir,' he doesn't even call me that, [laughs] but it's okay. What advice would you give to someone who is very interested in learning about mechanics and diagnostics as a career, for example, through courses, university, or doing an internship?" She has a brother who's very involved, he really likes this and he's kind of toying with the idea. I imagine that's why he's asking. What would your advice be, namesake?
Well, for my part I would say that there is nothing better than doing both things, which is the practical and the theoretical part. I think that nowadays you can learn a lot online. I don't know how old that person is, but if they're not super dedicated, it would be best if it were in person, if possible.
But get involved in the practical side, because when you only learn theory, you don't even really know what will be useful to you, so you need to delve deeply enough in class and then see it in practice. But when you have that practice and those walls, you get much more value from the classes, let's put it that way.
I don't know how old I am.
38.
How much? 38, I think.
38, right? So, he's already of age, practically the same age as me.
Oh, you have to do both, and intensively. I mean, I think that if you really want to do it in diagnostics, it's a great opportunity because we're going back to the point that, as a workshop owner, finding people who can diagnose a car and repair it well is practically impossible. I even used to set average salaries of 120, 130, 150,000 a year as a method of exercise, and you'd think I'd find someone who knows how to repair and diagnose a car, but there simply aren't any of them out there. So it's a great opportunity because I think that at least in the United States, a good mechanic, a diagnostician who knows how to repair a car well, can earn $100,000 a year without any major problems these days, and even more.
Exact. So it's a good career.
It's a good career, but if you're just starting out, that means you have to be careful.
If you sleep 8 hours, the rest of the time has to be dedicated to practice and study.
Yes that's how it is. If you slack off there, many years will pass and maybe you'll stay, so you have to work hard.
Hey, namesake, and now that you're talking about how you get mechanics, what your filtering process is when you're looking for a technician for your workshop, what kind of profile are you looking for? Uh, how do you filter them?
Yes, look, the last lesson I had— because every time I hire someone, it's a lesson for me, nothing is perfected, I'm learning every time—but the last time I did something I hadn't done before, which was practical tests, and I used to focus maybe only on what they told me, on what their summary said, but I realized that I need to know a lot more about the things behind it, those thoughts that drive it, where I need to investigate more to know if it's someone who's going to fight against what we do in the workshop or someone who's going to support it.
So, after filtering, I've searched all the available websites here, like Indeed, C Recruiter, and other online sites where you can hire people, but I think there's a big problem on both sides. The thing is, there are many businesses that are constantly looking, but they don't respond to the candidates, and the candidates just keep filling out applications, filling them out, boom, and sending them, and then they don't even check them. So, I've received bills of 1000, 2000 per month with zero qualified candidates, few curious ones, zero qualified candidates.
So that's where I've leveraged my network, yes, social media, because that's where, for example, the mechanic who works with me has been with us for 3 years now, that guy is gold and I take care of him like you can't imagine because first because he's a good person and second because he also enjoys working with us.
Yes. So, the tests I've prepared, I've dedicated myself, for example, to listening to books on psychology, uh, business books where they tell you how to interview, and now taking advantage of artificial intelligence, creating questions, conversing with artificial intelligence, what should I look for in those candidates? Taking the candidates' data, having it analyzed so that I can also have someone to brainstorm with, right? Yes, Olviera interviews us as if he were going to ask for a job, so that he can give us an example. Olvera is a good mechanic and Jorge is looking for one. So, what questions would you ask Olvera, Jorge? Yes, Olvera, let's just say Olvera is okay. I'm looking for a diagnostic mechanic.
Yes.
Okay.
So, I'll greet you first. How are you, Olvera? How are you doing? Thank you for coming to the online interview.
Tell me, tell me a little about your journey.
Look, ah, well, just like that, quietly. We're going to start too. I'm not going to find you forever, am I?
[laughs] I started working in a workshop when I was 8 years old, and I started out like everyone else, right? From the bottom cleaning tools, the workshop and then the moment came when I was able to learn to assemble engines and other things until I was able to open my workshop in Mexico and from the age of 8 until now we are still doing the same thing. I am certified in the state of Michigan. You need a license to be a mechanic. I don't know if it's the same in New York. I have certifications; I am a level 3 technician for the Chrysler brand.
What do you value most about working in a workshop?
Ah, what I value most, you could say it's a passion for me, is working in mechanics. I can work all day, even without eating.
What I find most satisfying is having a difficult case that I can solve. I understand. And we have strict processes in the workshop regarding how to perform certain procedures, safety methods, digital inspections, and similar topics. How strongly do you support that policy? Do you think you could do it without it affecting or contradicting your customs in any way?
Well, we're in an era where everything is technology, aren't we? Well, I might feel strange at first, but he'd have to go, how should I put it? This, getting used to it, getting used to not fighting.
Okay. Yes ok. Now, uh, I've gotten cold here, Piston Biker, but let's continue.
Me too.
[laughs] I told them to get something to warm up, but yes. Look, so, for example, this is clearly a somewhat hypothetical example, right? But we need to keep looking a little further to see if our friend Olvera is going to become a defender of our process or not. And in that sense, what else would you ask him in this case? It would be, I liked something I heard, I mean, I'll add, right? Something I heard Mr. Musk say, they asked him exactly that, right? Hey, how do you filter them?
And I really liked that he said, "I ask you, what has been the most difficult project or situation you have encountered and how did you solve it?"
Ah, yes, yes, that's right. And then he explains, look, a person who had a problem and he found a solution, wow, he's going to talk to you and know the details of things, right? On the other hand, someone who wrote no, look, I solved it, maybe they were part of the team that solved it, but you ask them for the details and they don't know completely.
You know what, George? That reminded me of a question I also had in these forms, in the interviews, it was, what has been the biggest damage you have done while preparing a car or the worst diagnosis you have had?
Tell him right away and you'll kill two birds with one stone. Honesty, learning, I mean, wow. No, exactly. So, many, almost all, almost all.
Ah, yes. I forgot to add a clip.
Ah, I've hardly ever had those failures and I spent 20 years working on cars.
But how are you? Once, after the mess I made where I burned out the computer, half the car, the computer, the transmission, the starter, the stereo, the fans, I made a short circuit, but oh well.
And I say this because I am a person and people make mistakes, and that's why not everyone is willing to accept it because someone did something wrong recently. Yes, recently someone told me, I don't remember who, honestly, but we were talking about something very similar and he told me that he mentioned to a mechanic that if he could remove the, you know, right?, to change the heater core or the little radiator that comes behind the dashboard of a vehicle, because typically you have to take apart the whole dashboard, right? To change the radiator. For those who are unfamiliar with the heater core. And he said to her, "Can you take it off?" Yes of course. And that he removed it.
And he put it together and the owner put a screw in there. He, the owner, put in a screw and then waited to see what reaction he had, and then he saw that the person, well, he had already assembled it, right? Well, he was still holding that screw in, and he was there, he was there, he was there, when he asked him, "What happened? Is everything okay?" He says, "Yes, I'm thinking, where did I get this spare screw?" Because I remember that I put everything in.
And he says the person told him, "Don't worry, I put the screw in." And then I realized that the person was honest and methodical. Phew! I stayed. Wow! I'm telling you, I don't remember if I saw it in a video, or if someone told me about it. You know, right?
Sometimes you don't remember where you saw the information, right? But you're left with a lesson and wow, this person is so clever. Or well, not cunning, because cunning is being very intelligent for bad things, but how intelligent this person is, right? In order to filter, right?
Clear. But you know what, and I really want to emphasize this. No matter how good things turned out, once you're on the battlefield, you really have to see if you made the right decision. Let's see again why it froze. Let's see again. What did you say?
Hello. Hello. Yes, yes, yes. Are you OK?
Yes. I was saying that no matter how much you filter, and even end up falling in love with the candidate, saying, "Ah, this is the one, I'm going to be happy, I found the one." Yes, but when you really realize if it's a good decision or not, it's in the first few weeks of work, and you see if his energy is going down, down, down. That's why there needs to be a trial period. And my workshop lasts 3 months. So, I have the last candidate structured by weeks and months, the measurable achievements that he has to meet in order to be able to say in the third month, "Okay, you stay."
Okay, they'll pass me a filter. Hey, how are you doing with your time? Jorge, we're fine because you told me it would be an hour. No, yes, yes, I can stay a little longer and then we'll say goodbye there [sigh]. What he says is true, because I know many, many who are certified, they say they have the master's degree and all that, and I've seen them on YouTube fixing problems. M, [laughs] sure, even because of the brakes, anything like that. I mean, you were supposed to have come here showing off that you were the big boss and nothing more.
And speaking of that, uh, for example, in the United States I know that certifications are very important in the process of hiring someone for your workshop, let's say. What percentage of the role does being certified play versus having experience?
Who are you asking that? Me?
Ah, you. Okay. Yes, sorry.
For me, that's enough, and all the workshops will consider it because a minimum certification means that you're really committed to the field, that is, you've done something to truly master what you do. Already.
And of the candidates I've interviewed in recent years, very few actually have it, and strangely enough, those who claim to have it don't even respond to the message from the application they submit, right?
But super important for me, critic, I mean, it shows your interest. Check it out, wait a little bit. I found a really good question.
A question for Jorge. Would you let one of your mechanics make their own [snort] videos like you do in your shop? [laughs] I could n't. The thing is, my workshop's task execution time is so well measured that I couldn't include video production in the middle of it because it would harm its efficiency. So, how is the current workshop doing right now, right? In other words, it would mess up efficiency, and that's measured minute by minute.
M is very different. Yes, unless we have some special agreement. Yes, yes, yes, yes. Okay. Yes, yes. If you work, I don't know, on commission, for the cars you make, I have a very big workshop. No, but even so, you know? The thing is, there's an important issue: each workspace in your workshop has to generate a certain value in dollars, in hours. So, if you say, "Oh, well, you can work half-time if you want to make your videos, but the problem is, who's going to pay me for the other half that isn't being productive, when someone else could be doing it, you know?
Then, my workshop definitely could n't work.
Hey, tell us a little bit about how to calculate what each space should generate, what it depends on, just like that. I know it involves a lot of things, but just a quick overview, so we get the general idea.
Sure, buddy, you see, it's really simple.
You have 8 hours a day, right? And you have a mechanic who works 8 hours, let's say, on average.
You can sell those 8 hours to a client as long as you sell 100% of the time, but the reality is that let's say you sell 90% of that time, so you can sell 7.2 hours. If you multiply 7.2 hours by what you charge per Now, that's what that space can generate in labor.
So far, so clear.
Right.
Yes.
You know that for every labor sale, parts sales come in, and that has a historical relationship in your shop. All shops have that.
In my case, it's 0.9.
That is, if $100 in labor came in, then $90 in parts came in. In other words, if you charge $100, that space generates $190 per hour.
Is that clear?
Yes.
Multiply that by 7.2. That's what that fence should generate.
Okay.
Some days it will generate more, others less, but that's my point. That's my point, because you do n't always have 100%. Right. And even less so when it's a small shop, right? Or a medium-sized one, I suppose.
Oh, no, actually, look, if you have enough hours sold for the mechanics you have, for the value you have, I mean, it doesn't matter if it's big or small, there's no There's a difference there. Right, what I meant was that maybe you don't have the workload, right? I mean, in a day you might not fill up, well, maybe you typically don't fill up, or at least here in Mexico you wo n't fill 100%, let's say.
Right, guys, here's another thing: one tends to think that what you need is a full car lot, but it doesn't matter if you have the car inside, if you're not producing the hour charged to the customer, what difference does it make if you 're full of cars if you're not getting paid?
Right, but if you have four bays, as you say, and you sold 8 hours in one bay, you have three more left, right? Unused.
That's what I meant, well, you don't have... Yes, yes, that's measured with something called productive capacity utilization.
Okay.
So, what does that mean? If you have three bays, you have 24 hours to sell that day.
There. 3 times 8 = 24. Exactly. So you, then that's where the owners, the managers, those of us in charge come in, meaning you multiply it by bays, 8 hours per bay. Exactly. That's why if someone is going to make videos and they're not going to produce that, then they lose money. It does n't work out. It does n't work out. Exactly. Yes. But here in Mexico, where it's not done by the hour, what advice would you give us? Because here, I mean, I understand it there, right? That they charge by the hour, but here it's based on a different system where people don't want to pay for a diagnosis from the start.
Here it's like, "There's the car, fix it for me, charge me for whatever it is," and it's not charged by the hour, which is another issue that doesn't help us much. What can we do about it?
Piston, yes, we do charge, it's just poorly calculated.
You charge by feel, but you charge.
Why? Because the longer you take, the more you charge, the less you charge? In fact, you do charge by It's just that you're not calculating correctly. Calculating the hourly rate isn't as complex as one might think. It has its little details. But if you calculate it and say, "Ah, okay, it costs me this much per hour to trade this, and the market could pay me for that hour." "If you can charge that, great."
But here's an important point. You do n't have to tell the client, "I'm going to charge you for so many hours." You keep telling the client, "It's going to cost you $200, but you calculate it in hours because you know that's the correct rate to charge for that job to make it profitable, as you've calculated."
In other words, how much does it cost you to open the shop? 8 hours divided by four hours, right? I mean, electricity, supplies, everything involved, right? The business, right? Permits, everything divided by that.
That's what you're saying.
Well, almost, because what you have to divide isn't for the hours you're physically open, but for the hours you can bill, which is generally never 100%. That's where the 90% comes in. You take everything that costs you and divide it by the time you can bill. That's what it costs you, that's what each hour costs, and that's what you have to add your profit margin to so the shop can be profitable and ensure... That the workshop stays busy producing hours.
What percentage is your percentage of what?
Uh, well, the profit, right? You're saying, you're dividing, and the profit.
Yes, we aim for 20% net profit.
20%. But for example, in my workshop, last year we had a net profit of around 10%, that's bad. And when it's 5%, that's worse because you're on thin ice. When it's that bad, explain a little bit, explain a little bit about net profit.
I knew, I knew that an average number for a good workshop is around 18% net profit, right?
Right, 18, 20%. They say around here that with steroids it's 25%, but really 18 or 20%.
Big, well-known workshops that didn't hear about it.
Of course, it's not easy, it's very difficult to get there.
Yes, yes. Explain that a little bit, Tocayo, because Please.
Okay. Net profit. [clears throat] So, there are two types of profit that we always confuse. When you sell, for example, a service, you have the labor and you have the parts, you pay the mechanic, you pay for the part, and what you say is, "This is my money," and generally, poorly managed, we put it in the bank. That's the gross profit. That's still not your profit, because from that you have to deduct the rent, the electricity, the phone, the internet, the administrative salaries of the salesperson, the secretary, all of that, including your salary as the owner of the work you're doing.
Right. And all of that keeps eroding, eroding, eroding until at some point you're left with money that can be used for business purposes, like reinvesting in parts, paying yourself a surplus at the end of the year if you want. So, in the end, that's the 20% we're aiming for, so that if you billed a million dollars, you're left with 200,000, like You win, 20% is left. Okay.
Yes. And it's difficult, and I think it's quite fair if the stock market produces historical returns of 10% and similar, I mean, why shouldn't someone with such a tough business aim for 20%?
Right. Do you understand?
So, practically, the net profit is once everything is paid for, what you're looking for is 20%. Correct. Well, I think that answers Juan Rosas' question, which was, "Out of every 100,000 in profit, how much do you actually have left in your pocket?" That's more or less so you have an idea. Juan is perhaps referring to if the net profit is 100,000, how much goes into the stock market? Well, I think he imagines it's just you, but you already have a whole established business with many things to pay for and so on, but he imagines it's just you running everything and that you have $100,000 left over, and how much... You're left out of that.
But it's more than enough, you mean, you mean that I have some left over for the workshop in general, that is, it's the answer you were giving, that it was 20%.
Yes, of course. If the workshop sold 100,000, 20,000 has to remain as profit, and the owner can decide what to do with that 20,000. Normally, that profit is divided into three areas: one for reinvestment, another for reserve funds, like, for example, when someone breaks down an engine and you have to find extra money to put it in, that's where that reserve comes from, right? And the other part, you can distribute at the end of the year as a bonus on top of your salary, which you've already paid yourself during the year.
So, those three things work quite well. Obviously, when you have a profit, you also have to pay taxes, but to keep things simple, that is, it's only counted before taxes.
But I'm telling you, many workshops, you split that net profit with your partner, Excuse me, do you split that net profit with your partner, or does he get a salary?
Oh, yes. So, what we decide to split at the end of the year—let's say, for example, we sold $1 million and $ 200,000 was left over, or more simply, let's say $ 300,000 was left over. Of the $300,000, we say $100,000 has to be reinvested, no exceptions. Approximately $100,000 should remain as business reserves. And of that other $100,000, you take 50 and I take 50. That's extra on top of our salaries, if that's the case, right? But $300,000 means you would have had to have sold around $1.2 million, and that's quite a lot for my workshop. I mean, my workshop would have to be extremely productive for that.
So, what you're saying about the 20% net profit you were talking about... Right now, what percentage should be kept for reinvestment in the shop, or to have a little cushion, let's call it?
That's a matter of strategy, but I say, if you're starting out, reinvest as much as you can, I mean, don't put anything in your pocket. Everything.
Of course. Yes, like any business that's just starting out.
Yes, yes, yes, of course.
Sleeping on the couch, sleeping in whatever [laughs] and you survive on the salary you pay yourself for the work you do. Of course, you just don't touch any more money. It's a bad habit of shop owners who are doing well.
I think that applies to the whole business, right?
[laughs] These profits, and instead of reinvesting, they spend them.
I got paid this much for an engine, okay, I have money now, but that's not your money. Your money is what you pay yourself monthly for the work you do, nothing more.
Hey, and what about warranties?
How do you manage that? Does it fall under the money you set aside for the shop? I mean, For example, I'm thinking about the engine you mentioned.
Yes, yes. I had already calculated that so the business would be at 50%.
Tell us a little bit about that.
The warranties come directly from that reserve fund you have, right? I mean, for example, in the hours we produce in the shop, there are the hours we charge customers and the warranty hours.
So, those warranties come from what the shop has in reserve to be able to continue paying the mechanic, because you can't stop paying him to pay for parts that you might have to pay for again, that weren't covered by a warranty, or things like that. So, that's why the shop has to have enough money, ideally for three months of operation, just in case, okay?
And, for example, in this situation when both mechanics left suddenly, the money was there. Even if I hadn't been able to survive with the one who stayed, the money available to deal with that small crisis was there and is, so it's very important that it exists and it's a tremendous peace of mind.
Excuse me for interrupting, but I heard that three-month strategy you mentioned from a gentleman who helped me buy my house. He said, "Always have three months' payment in advance, just in case." Always keep the Ah, exactly, exactly. And that's exactly the same, look, as aiming for a 20% profit, because if you aim for half to break even or 5%, one bad move can bankrupt your business and it'll all be over.
You're practically betting that everything will turn out well, that there won't be any failures. Yes, that's why it makes perfect sense to go to those numbers. Isn't it beautiful? Understanding all this kind of stuff. It's like metrics, isn't it?
Piston tells us a lot, doesn't he? Look at the metrics, and just like that, one person climbs up, and those who get involved, right?
Look, the meter tells you this and that, and you're like, "Yeah, yeah, yeah, that's fine, man, right?"
And you know that in the workshop I only handle everything with metrics because if you're looking at it number by number, it's something the brain can't process. Whereas if you look at a curve, if you look at columns, your month-to-month performance, trends, your average repair order this month versus last month, what happened? What fell?
Did the estimates fall? That's where everything starts to come together, and you say, "Okay, ready, let's focus on this area.
If I see there are no sales, but the mechanic is being efficient, I'm not going to focus on the mechanic; I'm going to focus on the other areas that are down, like the conversion rate, the number of elite ads coming in, the average repair order, and so on." So that's how it works, right? Like a scanner. Right.
It says here, and this was also a question I had, uh, how do you see yourself in 5 years, Jorge?
Marruco, [laughs] besides Marruco, in 5 years I have to have a solid foundation if I want to expand branches in workshops, plus what I can build in a more globalized way, let's say, with the digital tools I 'm developing. I mean, that's where I'm going, local workshops, obviously the one I have, I need to make it work without me. In 5 years, it has to be, I mean, there's no chance, and I should already have more branches.
Local. That's it, [clears throat] on one hand, but on the internet side, I want to have digital tools that other colleagues can use— software, for example, that I'm using right now, that didn't exist before, and I developed it to help me get those metrics that connect the technical side with the financial and operational side, you know? And it works perfectly for me; I've been using it for over a year now, so I want to expand on that, I want to make it available to the people who need it.
Okay, that sounds very interesting, and that would have to [clears throat] be adapted to local needs, right?
Of course. Configurable for everyone.
That's right.
But you know, George, you know that everything is more similar than you imagine? I'm telling you this because I've already studied these topics in the United States, in Ecuador, in Colombia, in Peru, I've been to bootcamps, to places where workshop owners from 10 countries meet, and we don't suffer from very different things, almost all the same, but it happens as he says Piston, no, we don't charge by the hour here.
Yes, you do charge by the hour, but when you get into the process, of course, you just didn't realize that, and it's the only way to measure the production of a larger workshop.
I learned that today, I'm taking that advice with me because you're absolutely right, and why not listen to you if you've done so well in that area?
Hey, and you know, I also wanted to ask you something else that I've been wanting to ask you for a while now, and you've been waiting for today to be the day. Okay, I'm saying this respectfully, okay?
Oops.
Why? Why, Jorge Ordo? [laughs] Put them there alone so they can fix themselves.
Yes, yes, yes. Let's put them to see [laughs] the gloves.
But Jorge.
Why, Jorge Ordóñez, do you demand so much of yourself? It's not just the YouTube part, because the editing you do and the video quality is, I mean, as a creator, I know exactly what you... It involved making a video. Um, you're also very demanding of yourself in the workshop, and as a person, I see that you're very, I don't know, like, very perfectionistic. Why are you so demanding of yourself, Jorge?
I think the honest answer is because I believe that's my nature, I mean, I can't help it. I can't produce something that I don't feel has value. I can't offer the client in my workshop something that I'm not 100% confident is the best I can offer them. The client can't be in any better workshop than mine, even if I'm not the best, I mean, I accept that. I may not be the best workshop in the world, but I know myself, I know what we offer there, and I have that confidence, right? If I can't manage that level of trust with the client, I feel like an imposter. And I've suffered many episodes of imposter syndrome. Have you heard of that?
Yes.
So, no, but I can imagine.
Yes. I mean, it's that thing where you I feel like you're hard on yourself and you think that maybe you don't deserve something or you don't have enough authority for it. And I've been really hard on myself about that, and I've also read books to understand that situation because I've asked myself, why do I think that? I mean, things haven't gone badly for me, they've gone well for me, things have happened that, for me, I mean, like social media, like winning the lottery, because sometimes I feel like I'm not enough.
So, I've come to understand that my very nature demands that I be 100% sure of something, and I don't want to fall into perfectionism because nothing ever comes of that, but I do need to be confident that what I offer in all aspects—a well-made video, a well-done mechanical job, good customer service, and eventually the extra things that come up—are things that are worthwhile.
I think you don't feel tired at the end of the day because it's so much, uh, not at the end of the day, but over the years, yes. I mean, the arrival, for example, The last time, the last low point I had in the workshop, because of what I told you, damn, a month, two months would go by, lots of candidates, but none that convinced me, and I'd be thinking, well, I'm working on breaking even, and who do I complain to, who do I ask for advice?
That loneliness is brutal, it's really tough, and even though it's tough, I always try to remind myself that if today is a bad day, I usually rest, try again, and after a while I see a little bit of progress, and then I get back on track. So, I think that's what being an entrepreneur is about, I think that's it, and I think I'm just naturally entrepreneurial. Hey, namesake, have you always been like this? I mean, you've always had that perfectionism syndrome without actually being [laughs] a perfectionist, like you said. Yeah, yeah, yeah, like you said just now, right? I mean, always being confident in yourself. You know what? If the video is going to be made, I want it to be the best video I can possibly make. Right now. If this is what it's going to be, I want it to be the best I've ever done. You always had that drive since you were a kid, or something like that... No, yeah, I think I always had it, it's just that before it used to paralyze me. Before, I wanted to do my best, and if it wasn't the best, I wouldn't do anything, but now at least I do something of better quality, even if it's not perfect. Let's say I've been getting over that, but it's always been there. And what helped you, what helped you jump from doing nothing, right? If it's not the best, I don't do anything. Oh, you know what?
Well, the best I can do. What helped you?
The one who helped me was my mom when she stopped giving me everything I needed [laughs] again. At that point, I didn't have a choice anymore. Oh, I have to get laid, so whatever. So, that's it, necessity, I'd say.
Yeah, yeah, yeah. Oh.
Oh, well, look, um, well, I personally learned a lot of lessons today. Uh, you who are Watching this video, remember that we're broadcasting live on different channels, so please comment below what you liked most about this chat, what you'd like to hear from the great Jorge Ordóñez, because we're thinking of inviting him back. The truth is, this is a conversation that really can't end here.
Personally, as I told you, namesake, and as I mentioned to you all, I'm in that phase where I'm trying to fine-tune the details in my life, and I found it very interesting, and I'm sure that many of you watching this video are also going through a similar situation, and this kind of conversation can be very helpful. So let's support our good namesake.
His social media links are below, so you can find him. Don't forget, his channel, Buen Pisto's channel, my channel, is also in the description of this video.
So, to wrap things up for today, since there's a [unclear] Today is already tomorrow, both Tocayo and Olvera are already men of the future, so tell us which horse is going to win so we can bet on it.
Yes, [laughs] like Back to the Future. That's right.
That's right. The only thing I can tell you, as someone once said, if it's not common, it's dirt.
That's right.
Good advice, there's some skin there, right?
That's right. Excellent advice. So, gentlemen, see you next time. Does anyone want to add anything before we leave?
Comment. Okay. Thank you very much for inviting me.
Perfect.
I was hooked enough to continue this conversation.
Yes. Since more were needed, right?
Because of all the comments, not all were read, and many people... I think we're going to have to do a second part, Jorge. If you accept another invitation on Claro, of course, with pleasure. If people ask for it, we'll do it.
So, you know, leave your comments below, and well, see you next time, gentlemen. Thank you very much for being here, everyone. Here, and we'll see you next time.
Greetings.
Greetings. Goodbye. Take care. Yes.
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