00:56
If you're running your business as a shop and you want to be an amazing shop owner,
01:01
there's a lot of skills you have to relearn and there's nothing to do with fixing cars.
01:09
Beyond the Wrench with J. Gannon from Wrenchway.
01:14
On today's show, we welcome Sunil Patel from Techmetric. Sunil's got a very fascinating story.
01:31
I know I say that a lot whenever we have interesting guests on the show, which is
01:36
every single week, but this story is fascinating. I was telling Sunil before we hopped on and hit
01:42
record that Techmetric had put together a video on his story that I was able to watch this morning.
01:48
If you get a chance, go out and check it out on YouTube, but just a really, really fascinating
01:53
background. Welcome to the show, Sunil. How are you?
01:55
I'm doing great, Jay. Thank you for having me on your show.
02:00
I was watching this video this morning and it appeared that you came from pretty
02:05
humble beginnings in California and just worked your way up. It didn't come automatic that you
02:13
were coming into the automotive industry. Your origin story is very fascinating because
02:19
that wasn't something that you were born into. This industry wasn't something that
02:25
really, I don't know if you even saw us a line of sight to this industry early on in your
02:31
career, but let's talk about that a little bit. You grew up in California. What was it that led
02:37
you into the automotive world? I grew up in Southern California and-
02:41
I'm sorry, California, yes. Yeah, Southern California, yep.
02:46
I would tinker on my dad's old 1978 Ford Z4 station wagon. He bought it the
02:51
year we were born, my twin sister and I. We've had that car in the family forever.
02:57
It's no longer with us just to be clear. It was just sitting in the parking lot forever
03:04
and I don't know why, but I just wanted to crank it up every now and then. It had an
03:10
old six-cylinder engine inside of it that was carb rated and it wouldn't start sometimes or take
03:14
forever to start. Ultimately, dad and I just decided, let's just figure out what's wrong
03:19
with this thing and fix it. We would go to the local parts store, we would buy parts for it
03:24
and then he and I would replace a bunch of parts. I think he tried to fix things on the car,
03:30
like such as the timing of the engine. He didn't really understand how a timing gun worked at the
03:35
time, but ultimately that's where I kind of started tinkering in cars over time and I really
03:40
enjoyed it. There was just something about taking vehicles apart, putting them back together
03:45
and then getting them back to their original state, their operating state was something
03:49
fun for me. That's how my career and automotive started. Were you ever afraid that it wasn't going
03:56
to go back together all right? I mean, if it's a family vehicle and you're relying on it,
04:01
I know when I was young, I was always terrified if I were to put something back together and
04:07
it didn't work. You probably had a little bit of a different mindset there.
04:11
Yeah. This was just to be clear. This was the spare car. My dad was the only car in
04:15
our family. My mom did not drive ever, even up until now. It was a spare car and so if it
04:23
didn't go back together or something broke, my dad didn't really care. That was nice to have that.
04:30
Yeah. You kind of had this interest in tinkering on cars, but that didn't immediately parlay
04:38
into a career and automotive. It did not. My parents always wanted me to be a physician,
04:47
and I can remember even up until I was 10 years old, we would have relatives come over to the house
04:52
and they would tell my relatives, like, my son's going to be a doctor. I'm like, how do you know
04:56
that? I'm 10 years old. I guess the constant brainwashing over the years and years and years
05:03
ultimately led me to, I graduated high school early. I did it in three years instead of four.
05:08
I just wanted to be done with it and I just want to go straight to med school. I found a program
05:12
overseas. I went to med school and ultimately completed my medical school training and my
05:18
internship over there, came back to the US, joined the Baylor College of Medicine's internship
05:23
program here in Houston, actually, and decided that medicine wasn't really my thing. My wife
05:31
and I both graduate. We were classmates from med school and she got into infectious disease,
05:39
I'm sorry, she got into internal medicine initially in Henry Ford Hospital in Michigan.
05:44
I was just waiting with her. I was not into medicine. I didn't really want to become a doctor.
05:50
I was kind of trying to figure out what I'm going to do and ultimately decided to take my
05:55
vehicle in for an alignment at our local repair shop over there. I looked on the local
06:01
online Mercedes-Benz forums called, I think it was called mbworld.org and it's still a very active
06:08
forum today. I would go on the forum and I had a pretty big presence on the forum and I just asked
06:14
a bunch of guys, hey, what do you recommend for an alignment in Detroit area? They recommended
06:18
me to this particular shop in Commerce Township, Michigan. I take my vehicle in there for an
06:23
alignment and ultimately got to know the owner of the shop over there who happens to be a
06:28
radiologist that quit practicing radiology to open his automotive repair shop and that was
06:33
the moment that it clicked for me where I came home, told my wife, I am done with medicine,
06:37
I'm going to open an automotive repair shop. What was his story to step out of radiology to
06:43
start an automotive shop? Similar to you, right? Kind of a wide swath or a completely
06:49
different pivot. Yeah, so he's got an interesting story too. He's actually also a master
06:54
electrician. He's also a pilot. He's a physician and now he also runs his repair shop. So I think
07:02
I started doing some research on this particular topic of how people are switching careers. So
07:07
like any vastly different careers and hobbies. And so my wife helped me introduce me to this
07:14
word called a polymath, which I did not know what that meant at the time. Up until last
07:18
week, let me just put it that way. And she explained to me that your life has always been
07:24
like this where you dive into so many different things. And if you just stay focused on one thing,
07:31
you'll actually not be successful. The ability to be able to go into so many different areas in
07:37
life actually helps you in your full-time day job. I thought about that and I think
07:45
there's a lot of truth to that. I think that alone helps peak curiosity, right? When you're going
07:51
through life and a lot of times maybe it can get mundane or don't want to say boring, but maybe
07:57
you're not challenging yourself to what you could challenge yourself to be. Maybe introducing
08:03
something completely different just helps maybe generate that part of your brain or activate
08:08
that part of your brain to where you are curious. And it is maybe a little bit more
08:12
exciting than your normal day-to-day. Yeah. Interesting. Interesting. So you go down the
08:19
automotive path and eventually start your own shop, right? Is that correct? That is correct.
08:26
So I came to Houston to find a place to build a repair shop and ultimately found an empty building.
08:33
There was a warehouse that used to be owned by a company called Granger. They're a pretty
08:39
large industrial parts distribution company in the US. And so I ran out of the building out.
08:46
It was $10,000 a month for a 10,000 square foot building. I did not know how I was going
08:54
to come up with the money, signed the lease, and ultimately raised a little bit of money from
08:58
my cousins and a friend and started the repair shop. I did actually build a business plan,
09:06
but I don't know if I really stuck to the business plan. But ultimately, at the end of the day,
09:09
everything worked out, right? So I ran that repair shop. We were profitable the first year.
09:14
We did about 750K in annual revenue that first year. And then we jumped to like 1.2, 1.6,
09:22
and then we just kept going up all the way to close to 2.8 million in revenue annually.
09:27
Did you know anybody in Houston when you went? Why Houston?
09:31
My twin sister. My twin sister happens to be living in Houston. I wanted to be
09:35
somewhat close to family. And then we were in the process of relocating my parents to
09:39
Houston too. So that's how Houston started. Interesting. So you're moving there.
09:44
I can't imagine you had a whole lot of connections or contacts there when you go.
09:49
No, I didn't actually have any J. I didn't really have any connections in the industry.
09:54
It was just, I had a pretty large virtual presence on the online forums. And so
10:00
as soon as the local Houston crowd came to know that I was opening a repair shop for
10:03
European cars, a few of them started bringing their Mercedes to me for service. And a lot of it
10:09
was just word of mouth. And then we would like, we built these tri-fold brochures and then we would
10:15
go to the mall parking lot and we would stick them on the windshield of cars that did not work.
10:19
Just to be clear, like I don't even think I got a single customer from that effort.
10:23
But we, and then I tried to do Google AdWords myself because I couldn't afford to hire
10:28
an SEO specialist. And a lot of it was just trial and error and just learning.
10:35
Trial and error is easy to say when you've got money, but when you don't have money,
10:39
how difficult is that trial and error? Because that is, you hear it from so many
10:44
business owners that I think they'd love to do trial and error on a lot of things,
10:48
but maybe don't quite understand how to do it without a budget.
10:52
True. Mine was very risky. And look, at the end of the day, it worked out. I did not recommend
10:59
anybody does it the way I did it. I think we're all that way. Was it scary? Like when you're
11:07
going down and you sign that lease? I would say it wasn't scary for me at the time,
11:13
although I was married. I didn't have any kids. And my naiveness just doing this
11:19
without thinking about it actually helped me. It pushes you, right? Like you have to,
11:26
you have to just be focused in the moment and you just keep pushing yourself.
11:30
How many hours were you working a day when you first got to Houston?
11:33
12 to 14 hours a day morning. And then so I would take in vehicles in the morning,
11:38
talk to customers, occasionally work on. And remember, this is me inside this entire
11:43
building. And then ultimately I would try and fix the vehicles at night
11:48
and then rinse and repeat. And then it got to the point after like four or five months,
11:52
I couldn't do it anymore. I needed some help. And so I hired my first technician
11:56
and that took a lot of my plate. I don't think people understand what you took on there, right?
12:02
We talk a lot about the tech metric stuff and all the great stuff you've done there. But
12:07
that step right there and those long hours and just trying to make it work,
12:11
I give you so much credit because that is, and maybe it's because you're doing what you love that
12:18
you, you know, maybe it doesn't feel like work as much, but there had to have been some stress
12:23
there, right? And making sure that you could pay the bills and making sure that the work is
12:27
still coming in the door so that you have something to pay the bills with.
12:32
Yeah, that's very true. Yeah. Yeah. So you get the shop up and going,
12:37
your first hire, is that a technician? It was a technician from the Mercedes Benz store,
12:41
the local Mercedes Benz store here in Houston. And he stuck around with me for a good five,
12:47
six years, I think. Wow. Wow. And was there any kind of getting to know each other as he comes in?
12:55
And maybe you always kind of hear of technician turn manager and maybe sometimes their expectations
13:03
don't align with that new person coming in. Or maybe that person, we just call it like
13:06
the Michael Jordan effect or Wayne Gretzky effect, right? Where you have this excellent
13:10
tech that brings somebody in and maybe they can't do all the same things that I as a person can do
13:18
in terms of fixing a car. Did you experience any of that or was it pretty seamless?
13:23
It was fairly seamless. He was a very strong technician. He would be able to
13:29
diagnose and replace parts very quickly on the electronic side is where he struggled a
13:34
little bit. So that's the part I actually enjoyed working on. And so using an oscilloscope and
13:40
looking at waveforms and looking at wiring diagrams. So those are programming, coding,
13:47
CAN bus networks. That's stuff I really enjoyed. And so we made a good team.
13:51
That is you always kind of, I think advice in general, surround yourself with folks that
13:58
might not have the same skill set that you do or add something to your skill set.
14:03
And so it sounds like you did, you did that. Now, as you're building this shop,
14:08
did it occur to you right away that, hey, maybe I want to start a software company someday?
14:13
No, no. So my goal was probably to build multiple of these repair shops.
14:20
And I would get stuck in, so first of all, remember this idea of shop coaches. I don't
14:24
know if they existed or not, but I wasn't privy to any of them. So I kind of had to
14:28
figure out how to run the shop myself. And I think we were pretty successful out of a
14:34
five-base shop generating about 2.8 million in gross revenue.
14:39
And ultimately, I wanted to open more of these repair shops, but then I would get stuck in,
14:47
it's already hard enough with the hiring the people and the talent,
14:50
and then what if somebody's absent? And then I was thinking like,
14:54
if I multiply that by a second or a third shop, that's going to get even harder.
14:58
And so later on, in about 2012, I started a vehicle sales business within my building.
15:09
We cordoned off the front of the building as a showroom. And so for about two or three years,
15:13
we ran that vehicle sales facility. And we did mostly European and high-line vehicles,
15:18
mostly the Porsche GT series, Lamborghinis, Ferrari, those are the kind of cars that we
15:23
would sell. And then I had a business partner at the time. And then ultimately,
15:29
I wanted to grow that business much bigger, and he wanted to keep it smaller. And so we decided
15:34
to part ways. And so I'm like, you know what, why don't you just buy my share out? I will
15:38
go do something else. And at the time, I didn't know what that something else was. And so
15:42
I started thinking about, so also at the same time, I actually switched to a on-prem system
15:49
at my repair shop that kept on crashing. And ultimately, we struggled a lot with the system.
15:56
And so I reverted back to my original point of sale system, which was also an on-prem system.
16:01
And ultimately, what happened was I started thinking like, there's got to be a better
16:05
way to build a cloud-based point of sale system. I didn't know how I was going to do it.
16:11
I just knew I wanted to get it done. I did program a little bit in the old
16:16
arcade languages like C++ and Microsoft Basic. But those languages are nowhere to be seen in
16:22
the space that we operate in, in cloud. And so ultimately, I hired a local company in Houston
16:28
to build our first version of TechMetric back in 16. And this was like after I sold the vehicle
16:35
sales business, I just had the service business. I was in the process of selling the
16:39
service business because I wanted to focus all into the repair software and the TechMetric
16:44
system. And ultimately, the software that this company built for me locally was a disaster.
16:50
Like multiple people couldn't log in. It was very slow. It wasn't even complete.
16:56
They used a very non-standard tech stack for the software. It wasn't scalable.
17:02
And ultimately, we had to pull the plug on them and start all over.
17:06
And that was a tough decision to make because I had taken in some money from friends and
17:10
family to raise the initial pool of money to build the software. And ultimately, it all went
17:16
to waste. We had some of it left over so that we lost a decent amount of money.
17:22
And then it's so hard. Sorry, Suniya. I just want to ask you about this part before we move on.
17:27
How hard are those conversations to have? Just being able to
17:34
have the confidence that you still have something there, but knowing like, hey,
17:39
we need to start over again. We can't keep going down this path.
17:44
That's got to be an interesting pivot and just a huge risk. I think at some level,
17:50
you're probably trying to earn trust and trying to get people to... Even though the first
17:56
go failed, you're still pretty confident in this thing.
18:00
Yeah, Jay. So I don't like sugarcoating things or hiding things from people. I always
18:07
wanted to be very authentic with every... That's just one of my life mantras is just being very
18:12
honest and authentic with high integrity. And so we just were all very honest with that. Like,
18:16
look, this is what happened. This is why it happened. And this is what we're going to do
18:19
to prevent it from happening again. And ultimately, so there was four of us,
18:26
one of the guys decided to back out and decided to... So we gave him his money back
18:31
with interest. And ultimately, there was three of us left. And the three of us were like,
18:38
we still feel like there's still something here. And so let's just keep going at it.
18:42
And let's just learn from our mistake. Learning from your mistake and growing from it
18:47
is a true definition of growth mindset. And it's actually one of our company's
18:50
number one fundamentals, which is actually the basis of the success of TechMetric today.
18:56
And so we decided to move forward with just... So I went to Scrum School at the time
19:02
and decided to learn how software development should work. I also had this failing as a
19:08
learning lesson on what not to do. And so ultimately, we hired a UX UI designer
19:14
to build screens for us for about six months. And then we hired our first engineer,
19:19
whom now is our CTO, Taylor Fuqua. And ultimately, Taylor built a version of
19:24
TechMetric, which was pretty fast in response time, scalable. It didn't have all the features
19:29
and everything today that we have, but it still proved a point or a concept that
19:35
we have something. And ultimately, I think we can continue building on this to see what happens.
19:41
Now, when we launched it, soft launched it back in 17, 18, it was tough still, Jay.
19:49
I still couldn't get people to use it. I couldn't even get people to use it for free.
19:52
And I still remember going... I was at my sister's house in Atlanta.
19:55
I took a rental car and I was going shop to shop and I would get kicked out of shops.
20:00
I didn't have a sales team and I would just try to get people to use the software for free and
20:04
it wasn't easy. But I still didn't give up. And we got a little bit of a following online on Facebook
20:12
through various groups. We would go to all of the trade shows. We would spend most of our
20:16
money at trade shows actually and try and get that because that group was very
20:22
forward thinking, wanted to see what the best technologies are. Everybody was using an on-prem
20:28
system at the time. And so we contained focusing on the trade show route and we pretty much attended
20:35
every single trade show that there was in the automotive space for the US. And ultimately,
20:41
that gained us a lot of success, a lot of attention. Now, remember at the same time,
20:45
there's also competitors coming out with cloud-based point-of-sale systems.
20:49
So my focus was like, let's just focus on winning and it's also one of my leadership principles.
20:54
Just keep focusing on winning. Don't shit talk the competitor. Just focus on winning
21:02
the hearts and minds of users of the product. And it's interesting with trade shows, right?
21:08
Because I think early days of a company, we went through something similar on our
21:12
wrenchway side where it does generate a lot of conversations. And I don't know if you experience
21:20
this, but our early days, even to this day really, our booths were typically back in a closet
21:27
somewhere and people had to really want to find us to find us. But I think that helps get some
21:34
of those conversations.
21:40
Want to build a pipeline of young technician talent in your shop? Check out School Assist.
21:46
Powered by wrenchway and ASE, School Assist makes it easy for shops and dealerships who are looking
21:52
for young technician talent to build relationships with instructors and their students.
21:58
Schools post specific requests for things like equipment, tools, advisory committee members,
22:04
shop visits, and more. Shops can view these requests and directly connect with program
22:10
instructors all in one place. Over 2,800 schools and 2,000 shops are already using
22:18
School Assist to build valuable connections. See if it's right for your shop.
22:23
Learn more at wrenchway.com slash school dash assist. Link is in the show notes.
22:30
Do you recall maybe first customer, first good experience where it just kind of gave you that
22:39
warm feeling that, hey, we're on to something here, we're getting it?
22:49
We had some customers that were very interested in using the product, even though I knew we
22:55
were not ready for these customers. Stefan Gribina, he owned a shop that mainly did BMWs on the east
23:02
coast, Scott Elmore out of Colorado Springs. I'm like, guys, you guys are like much bigger shops
23:10
and we're not going to be able to support. I was honest with them though. I was like,
23:14
I think that was the one thing that they really appreciated is that I was just honestly
23:19
telling them we're not ready for you. Even then, they were like, we see what you're
23:22
doing. We've been watching you for a couple months. We see how many features you're coming out with.
23:26
We didn't want to give you a shot. We did and we got a lot of the early
23:33
shop owners to adopt our product, even though we weren't ready for them. They had a lot of
23:37
workarounds to get everything working in the system to meet the same speed and efficiency
23:43
that they were doing with their previous system. It was just awesome and eye-opening to see
23:49
how these customers just truly believed in what we were trying to do.
23:53
I think the biggest validation for us was in 2018, late 2018, Christian Brothers Automotive,
24:00
at the time they were 220 stores. They put an RFP out. We were part of it. They had four
24:05
point of sale systems and they gave it to us. It was the same story. It was like,
24:11
I was like, are you sure you want us? Because we weren't ready for a big
24:17
enterprise customer at the time, but we're like, well, if we get Christian Brothers Automotive,
24:21
we'll more than double our roof talk count. They were a very supportive group of guys.
24:27
They still are today. It's one of the best run organizations that I've ever worked with.
24:33
They're truly a partner. It's just been awesome to see how they truly work with us.
24:39
They actually, in the early days, helped introduce us to large parts players.
24:46
We would work with them very deeply on future development. Ultimately, they've been a great
24:52
partner and they just renewed their contract about a year ago, I think. They're really a
24:57
good organization. Congratulations. Now, as you go through that growth, I know in my experience,
25:05
one of the things I tell my friends and family is that I had read a lot in business books about
25:12
growing too fast and the challenges behind that. When we first started our company,
25:20
I was like, whatever. Then you go through it and I,
25:26
the hiring, the cash flow challenges that presents, it's a lot to come at you at one time.
25:35
Did you experience that as you're taking on a Christian Brothers or even some of those larger
25:40
shops to start? Yes. You have to think about when we were a much smaller company, we didn't have
25:47
a people and culture department. We didn't have a true vetting process and hiring employees.
25:53
It's basically like, hey, who do you know that wants to get a job? Who has a pulse
25:57
in the industry? Let's just figure out how we can get them to fit into what we're trying to do.
26:03
Many of the folks at TechMetric were multitasking. They would do maybe sales and support and
26:09
onboarding and product requirements. You just did everything at once. A lot of startups have
26:17
this. A lot of software startups have this culture where you're doing a little bit of
26:22
everything. As the company matures, you have to put structure behind it. You have to put some
26:28
rigor in your process of interviews. You have to score card employees. You have to do all these
26:33
other things. What happens is some of those early employees that started with you don't want to be
26:38
with this company anymore because it's not the same company they joined. I believe it's a
26:43
natural evolution of a company. I think it's very tough to keep that startup mindset
26:50
as the company matures into much larger revenue multiples than numbers. It's the same thing we
26:58
saw. We have maybe two or three people that started with us at TechMetric that are still
27:02
with us today, and now we're an organization of more than 300 employees. It's just natural
27:10
to see that attrition rate. It's pretty incredible what you've built. As you're telling
27:15
that story, it reminded me of our early days. I found myself almost trying to talk people out of
27:21
coming to work for me because I was like, one lady in particular came to work and she was coming from
27:29
corporate America. I said, listen, make sure you talk it over with your family. Make sure this
27:34
is not a certainty. This is so much different than the corporate lifestyle joining a startup.
27:42
She ultimately still made the call to come and had a very successful career with us, but
27:48
it is one of those things where there's people's lives at stake. Maybe that's
27:53
a little dramatic, but their own family's financial future lies on your shoulders at some
28:01
level. You don't want to bring somebody on and then fail and then feel terrible about
28:08
their own, maybe they're putting them in a bad financial spot. I always found it interesting
28:15
from my shoes of the pressure on a business leader from that sense. It's easy to talk about,
28:22
but until you're in that position, it was a real stressor for me.
28:28
Yeah, it was tough. Even I still remember, I wasn't taking a paycheck in the early days,
28:38
even until we got Christian brothers because I just had to figure out how am I going to pay
28:42
the engineer salaries. We didn't want the engineering team to know that we were running
28:46
out of money. I still remember, I met a physician friend of mine, I'm like,
28:51
hey, bud, I need some money. He wrote a check for half a million dollars and said,
28:56
I know you've got something here. Yeah, that was a huge thank you. We paid him back with
29:05
interest in everything over time, but ultimately, I don't think we would have made it without all
29:09
of our friends' support. We would just be knocking on friends' doors.
29:15
I think that's part of our conversation today is on leadership. I want to take what you just
29:21
said there and build upon that, but the perseverance that you've really established
29:26
throughout your career, it feels like there were many opportunities for you to just
29:32
fold up and not continue on. I just want to understand what pushed you to drive through
29:39
these things because these aren't easy obstacles to get around.
29:44
I don't think I've spent a lot of time thinking about this until much later in life.
29:49
And so one of the things I said in that video that you watched earlier was struggle has created
29:54
way more champions than privilege ever has. And I truly believe that because I think when you're
29:59
faced with hard decisions, and so this goes back to that whole poly-map thing again, right?
30:09
So one of the things I didn't touch upon is I'm also a law enforcement officer.
30:14
And when you're faced with life and death decisions. So it's not even life and death,
30:18
it's like decision making, right? You're forced to make a decision in law enforcement
30:24
and you have to own the outcome. That principle of being able to make decisions
30:30
very quickly in a high stress environment, I have translated that to in tech metric.
30:36
And so if you think about what leadership or what leaders do in our company or in any company,
30:41
it is all about decision making. The most important thing that I have to ensure that we
30:47
have in our top leaders is the ability to make great decisions. Because if you actually go into
30:58
Adlerian philosophy, all of the world's problems are interpersonal relationship problems.
31:04
And so if you distill that down to just human beings interacting with one another,
31:10
all of the problems that we create in the world are because we create them. They're all
31:14
people problems. And I, this is just my belief when it comes to SaaS software,
31:19
if you have great product market fit, your talent is what's going to hold you back
31:25
from success. And why is it that the talent is going to hold you back? Is it lack of
31:30
decisions maybe? Is it interpersonal relationship problems, other teammates, whatever that is,
31:36
there's a bunch of reasons why that's going to hold you back. And so we as a leadership team do
31:41
spend a lot of time, especially when we're hiring executives at the company, and we're
31:45
scorecarding them. How do you make decisions? What's your framework on making these decisions?
31:50
Because these are very important, large decisions. And I want you to get them right
31:53
most of the time, not all the time, most of the time.
31:58
With your shop background, do you see anything that maybe that shop
32:04
leader that's out there listening to this right now might be able to learn from what
32:08
maybe you see on the SaaS side or the software side of leadership and the reason I'll
32:15
maybe put some context behind this. I think a lot of times we see a lot of struggles in shops
32:22
because maybe they're not hiring the right people or they're desperately hiring people
32:27
and trying to get people in the doors. Maybe it's people that don't have a cultural fit.
32:33
As you're going through and explaining some of your learnings, even from early days,
32:37
tech metric to today, do you see anything that maybe that shop leader that's out there could
32:43
learn from your path and kind of what you've built out and maybe lessons that you've learned
32:48
from the software side? Jay, before I answer that question, I will first say I was a horrible
32:54
shop owner. I don't want to say typical. I was a shop owner where I had a very
33:03
heavy hand in trying to get my team to do things. It was always by authority and it wasn't by inspiring,
33:13
it wasn't by motivating, it wasn't by mentoring. I took a very wrong approach at running your
33:21
shop and yet we were still pretty successful. But then if I was to ask those people that
33:25
worked with me back in the day, how did they feel about me? I'm probably going to get an
33:28
answer or something along like he was tough to work with. He was a hard ass or whatever it is.
33:34
There's the multiple things that would have come up and it's taken me a long time to realize that
33:40
leadership isn't just one thing. It's multiple things that you have to learn.
33:45
And so if you're running your business as a shop and you want to be an amazing shop owner,
33:52
there's a lot of skills you have to learn and there's nothing to do with fixing cars.
33:57
It's all about inspiring people, inspiring your team, motivating them, mentoring the right way.
34:03
And then there's also this difference of you're trying to teach maybe younger folk
34:08
and you feel like your generation is the best generation and this new generation doesn't know
34:12
what to do and how to live. I think that's just such a wrong philosophy. I believe it's
34:19
the older generation that actually has to adapt to the newer generation and learn how to work
34:24
with the younger generation. And that's great advice and I think something that a lot of our
34:30
industry struggles with. You look at that service manager that's out there. I think we've got a lot
34:37
of shop leaders that are very similar to how you used to be where you really rule with that iron
34:43
fist and I think at times it can create maybe it's definitely more of a stick versus carrot
34:50
approach where you're kind of making, I don't know, I grew up in that shop. In my family shop,
34:56
my dad was that way and it was until I left and went to other places to work that I started to
35:04
understand that there were leaders that maybe didn't kind of have that leadership style.
35:10
When you're young, I think I kind of assumed that or when I was young, I assumed that all
35:14
leadership styles were kind of that way and had I been caught in the shop not actually doing
35:19
something, I was going to get my ass chewed. It was not going to be good. And so it's interesting
35:25
that you talk about your evolution as a leader because I think that is a lesson that all shops
35:31
can learn. Regardless of how good of a leader is in that shop or running that shop, that there are
35:38
things you can learn. You can become a better leader. You can get kind of those raving
35:41
fans within the shop that really want to go out of their way to help you out.
35:46
I'm interested with your experience. What made you shift? Like what made you change?
35:54
I think this goes back to always wanting to learn. And so I read a lot. I read about
35:58
two books a month at least. And they're typically not, a lot of them are personal growth topics,
36:03
but I just like learning constantly. And I think the hardest part for a leader is personal
36:11
growth. And are you ready for that? Because I think the one question you have to ask or any
36:17
leader has to ask themselves is if you reflect back on the years that you've actually been leading
36:22
up until now, how is that gone? Is there room for improvement? Like could you do things a little
36:28
differently? And I always try to, so like I talk about this in my leadership team.
36:35
And to me, it's easy to find people to do tasks, right? Whether it's a great finance person,
36:43
whether it's a great engineer, whether it's a great sales leader or an account executive,
36:49
you're trying to find a person that's the best at those skills.
36:54
The hard part about this is orchestrating all of those people together
36:58
into one unisome orchestra. And making everybody hum to that tune is not easy to do
37:08
because everybody learns differently. Everybody is inspired differently. And if you ask most people
37:15
like what's the most important thing for their career, money is usually not the number one
37:19
thing. Money is one of the things which is not the top thing usually. It's basically how
37:23
does somebody feel when they come to work? And it's the CEO or the president or the
37:28
shop owner's job to ensure that they create a culture at that company to make people want
37:35
to come to work. That is our responsibility. It had to have been hard for you though because
37:41
when you look back over the course of your career and the growth you had in the shop,
37:47
at some level you have to kind of question wasn't it that leadership style that got
37:51
that growth? When you had turned a shop that you started from scratch into that level of shop,
38:01
there's got to be elements of that that were effective.
38:05
Potentially, Jay, but I think we were just so focused on providing great service store
38:09
customers and fixing vehicles and complex problems that other shops would turn away
38:14
or shy from. I believe that gained us more customers and more revenue. But if you actually
38:22
ask the question to our internal teams, what do you feel about the culture of your repair shop,
38:28
I think the answer would be very different. Did you think about culture when you were in the
38:33
shop? Not a whole lot. No. Or you're just day to day get through the fires, get everything
38:40
taken care of. I don't think that's too different than a lot of the shops that are out there right now.
38:47
Yeah, you're probably right. Yeah. Just to continue on this path, we've done a lot of
38:53
surveying of technicians over the years. Most times it comes down, you talk about those
39:00
people skills, a lot of the complaints that technicians have are because of lack of communication
39:06
or lack of respect. You talked about in those interpersonal relationships that create
39:18
this lack of culture or maybe this budding of heads constantly each and every day. I think
39:24
there are a lot of things that if that shop manager that's out there listening to this right
39:31
now, if you were to do just like Sunil just said and do some reflection and look at yourself
39:38
in the shop and how you interact on a day-to-day basis, I think there's always room for improvement.
39:45
But even for those folks, if they question themselves on a Sunday night going into a Monday,
39:51
am I looking forward to talking to the people on my team tomorrow? If the answer is no,
39:56
you might want to change something. You're absolutely right. And that's good.
40:06
This week's episode of Beyond the Wrenches brought to us by Jasper Engines and Transmissions.
40:11
Okay, your customer's engine or transmission has failed, but now is not the time for them
40:16
to trade their vehicle, not without a working engine or transmission. Besides,
40:21
would they have kept their vehicle another three to five years if their engine or
40:24
transmission had not let them down? If you answered yes, then Jasper Engines and Transmissions
40:30
is your choice to give your customer's vehicle new life and many thousands of miles of enjoyable
40:35
driving performance. When considering the high cost of a new or newer used vehicle,
40:40
there's a pretty good case to be made for replacing a drivetrain component that has
40:44
failed or is delivering poor performance. Rather than trading their car, truck, van, or SUV,
40:50
install a quality remanufactured Jasper product for less than your customer would have to invest in a
40:55
new vehicle or a newer used vehicle. Check out their website at JasperEngines.com to learn
41:01
more about the money-saving value of Jasper. You're just a genuinely good leader and you
41:12
talked about the reading and how much that's important to you. I'm in the same boat where
41:19
I love reading about leadership and love reading about culture and just ways to do things better.
41:26
As you go through this and you apply the lessons of leadership that you've learned over the years,
41:33
what are some key things that you would point out in leadership that somebody could learn and
41:39
take back and use today? I actually went down the process of creating my own leadership
41:47
principles. The leadership principles that I created were based on all of my readings and
41:53
then how they applied to our company Techmetric and how we've been able to scale and grow the company.
41:59
I would focus on areas that teams are struggling in. I'll give you this small
42:07
example. Most companies will have a bunch of individual contributors. Let's just say
42:13
technicians. Let's just use a shop example. You'll have a bunch of technicians and you have
42:18
this technician that's amazing at diagnosing vehicles and repairing cars as fast as possible,
42:23
low comeback rate, and he just does a fantastic job. The first thing the shop owner is going
42:30
to want to do typically is let's promote him to a team lead. You just took your best tech
42:36
out of the field and you promoted him to a team lead.
42:41
It's just very natural to correlate personal output or individual person's output
42:51
to a promotion. This happens not just in automotive shops. This happens across every
42:56
industry in the entire world. We, as a company, have started focusing on like
43:03
when you do that, though, when you start promoting an individual contributor to a manager
43:08
or a team lead, you are potentially giving that title to somebody who's never managed
43:13
a human being in their life. That's something that people forget about because if you're
43:19
managing and responsible for another human being's success, that is not something that
43:25
you're born with innately most of the time. At Techmetric, we have actually started
43:31
to build out our own internal program where we are training individual leaders to be great
43:38
managers. It has nothing to do with how they perform as an individual leader.
43:43
They just have some unique skill set, the way to inspire, the way to talk people that maybe
43:49
makes them a better manager than an individual contributor. I spoke about earlier like my
43:55
leadership principles that I've created. One of my biggest or my best or my favorite, I
44:00
should say, is speed and accuracy of decisions by our first principles. First principles,
44:06
thinking is not something that it is a difficult concept to understand because most human beings
44:14
start involving bias in decision-making. Aristotle was the first philosopher that actually came
44:21
up with first principles thinking. Our most notable and most famous person today is probably
44:26
Elon Musk that has implemented first principles thinking in everything that he does. Elon Musk
44:31
decided he first made an engine. He basically emulated something that's been happening since
44:37
the 40s. It's liquid oxygen combined with another chemical that provides the thrust in
44:44
these rockets. Remember the key difference that Musk wanted to do was he wanted to provide a
44:49
reusable rocket. What was happening though is because of this earlier propellant,
44:57
there's a lot of carbon buildup that required a lot of cleaning because he was reusing the rockets.
45:03
He's like, let's wipe the slate clean and let's start all over. Because when you do that,
45:11
if you try to build something based on how something else was built in the past,
45:16
you're confining yourself in what you actually can do. Ultimately, what it does is it limits
45:24
the possibilities of what you can do. What he did was he ultimately got his engineers together
45:31
and they built a version of this rocket which is the cleanest. I think they're the only ones
45:34
who use this rocket, but it's the cleanest form of propulsion with also the most amount of
45:42
power that any rocket engine is able to provide today. He wouldn't have been able to do that
45:48
if he used an engineer that built the previous rocket. You basically want to try and break
45:55
that norm. We do this all the time at Technectric. Let's just say there's a decision that has
46:04
to be made. Maybe it's around hiring somebody in a leadership role in the company. What
46:10
you're doing is you're assessing the person's capabilities based on maybe your experiences in
46:16
life on this particular role. What I try to get everyone to understand is Technectric is a very
46:22
different company. I don't care about how you used to do things in the past, how you've managed
46:29
this person before. I want you to remove all of that. I want you to think about what are we
46:34
hiring this person for at this company today? Then let's figure out what are the skills that
46:40
we're going to test against this person to ensure that they're meeting the bar for this role.
46:45
What you end up doing is you hire a person that is very different than the person you
46:50
thought you were going to hire. We've had some great outcomes here at Technectric using
46:55
first principles. It is a muscle. It takes time and energy and skill to keep working on
47:01
this muscle on using first principles thinking. As it relates to people, is that similar to
47:07
getting the right person on the right seat on the bus, or is that different altogether?
47:15
I think it's a little different altogether. Maybe there's some correlation. Lentioni talks
47:21
about this, getting the right people on the seat of the bus. I believe it's a little bit
47:27
different because you're actually going a little deeper into understanding the capabilities of
47:31
that person on the bus. Maybe there's some correlation, but you're trying to really dig
47:38
deep into the capabilities of this person and then finding the seat for that person.
47:42
How do you find that out? Is that through some type of aptitude testing? Is that through
47:49
experience with the individual? How do you come to the conclusion of where their best fit is?
47:56
A lot of interviews, Jay. We spend a large amount of time in interview process because
48:04
one or two hour interview is not enough to figure out how a person is. Especially when
48:08
you're looking at executive level positions at the company, it takes a lot of effort to...
48:15
Remember, you're going to be marrying this person literally. You're probably going to be
48:19
spending more time with this person than your own spouse at home. You're trying to figure out
48:24
how this person thinks. There are a series of questions you can try to use to get to that
48:32
conclusion, but ultimately, I also try to look at the most recent decisions they've made in the
48:37
last six to 12 months in the previous company to understand why or how they came up to that
48:42
conclusion to make those decisions. Interesting. It so contradicts so many other companies,
48:51
not just in our industry, but companies as a whole, that are very reactionary in the hiring
48:56
process rather than really going out. When you said the point about an hour or two with a person
49:03
really isn't going to give you a whole lot of information, that is so true. Even for me,
49:12
taking advice out of this, I think that is such a great point. In Dave Ramsey's book,
49:18
Entree Leadership, he talks about how they go out to dinner together. Because he said,
49:26
I can hire this person, but if there's a disconnect with the spouse, that's going to
49:30
cause a lot of trouble at work. What you're talking about to me falls in that same vein of
49:37
really trying to get to know somebody in a time when that can be a real challenge, especially
49:43
we talk with a lot of shops, very reactionary in hiring a lot of times because, hey, we need
49:48
somebody to work on this car. We need to get somebody out there as soon as possible.
49:53
So we end up hiring somebody that's not a fit just because we have to fill a hole.
49:56
And I just feel like that is the source of so many of our issues as an industry,
50:01
it's just maybe not being as intentional as we should there.
50:05
Yeah, so you bring up an important point, Jay. So the importance of getting the spouse on board
50:14
with this big decision is very important. In fact, I have the numbers of all of the spouses
50:19
of my leadership team on my phone. I do that because there is a text message that will go
50:25
out every now and then to see how they're doing. I also asked my direct reports on how
50:30
their spouses are doing because that time that you're going to need your employee to work with you
50:36
for 10 to 12 hours on a particular project away from the kids at home,
50:40
it's going to go a long way when the spouse is on board with what the mission of the company is
50:45
and what this person's doing. Man, that is, that right there is, I don't do that. And that
50:51
would be something I could learn from. And I think it's, if you think about the normal
50:56
at home life, if that employee is having to go home and tell their spouse, hey, listen, I'm going to be
51:04
at the office for a lot of time here this next week, because we've got a big project,
51:10
we've got to get done. It almost feels like maybe a little backup for the employee too,
51:14
right? To be able to go in and say, we got this long road ahead of us here and we need
51:20
to put the time in right now. And it's not just like, yeah, I'm just going to go spend some time
51:25
hanging out at the office, more time at the office, so I'm not at home. I don't know, it just makes
51:30
so much sense to me. I'm really glad you brought that up. As far as kind of your vision for the
51:42
future and obviously you're an excellent leader, as we're talking here, I'm just taking notes and
51:50
I'm learning so much from you. When you look at a software company and being able to kind of
51:56
continually push the limits, my own family shop is on tech metric. I can tell everybody that's
52:02
listening, it is fantastic software, very user friendly, very easy. How do you keep innovating
52:08
and really even understanding what to innovate on? Okay, so we have shifted as a company from a
52:17
point of sale system to a platform for automotive repair shops. And the platform eventually will
52:24
consist of the core and key things that a repair shop has to do. We have over 100 integration
52:31
partners into our ecosystem with our API. We are not trying to replace all of those partners
52:38
with building product. But I believe there are some key things that should be native inside of
52:44
the point of sale system, which is like the core point of sale system we're going to
52:48
continue innovating on. Payments is fully integrated and embedded into the product.
52:54
We have a CRM product or marketing product that is fully integrated into tech metric,
52:59
but it should a shop owner want to use something else they're totally welcome to.
53:02
But we want to let shop owners to pick and choose whatever they want to use.
53:06
There's a couple other things that are going to start working their way into tech metric,
53:12
which is VoIP or phones fully embedded into tech metric. And then the last thing is the
53:19
repair guide, automotive repair guide for technicians. And so to me today, that's
53:24
going to round out our product set for being a platform. But the sky is the limit, Jay.
53:30
Honestly, every six months, some new idea will crop up and we'll think about doing something
53:37
that is tangential or in a different vertical. I don't know. There's all kinds of things that
53:43
we can continue innovating on. But at the end of the day, we want to provide the best
53:48
platform for automotive repair shops. You understand what to say no to.
53:55
That's a hard one. So several years ago, we were in Austin, Texas doing an offsite
54:03
and we decided to make a decision on what we're not going to do. And so we made an
54:08
intentional decision. We are not going to build software for heavy duty shops, marine shops,
54:16
you know, jet ski boat, RV, motorcycle, like all of these other areas.
54:20
And what we did was we said we are going to build a point of sale system for general
54:27
mechanical auto repair. And we did and we stayed focused on that. So what happens when
54:32
you stay focused on your own little vertical is that all of your resources and your energy
54:36
and your people are all geared towards winning in this one vertical. And we've been pretty
54:41
successful in doing that. Two years ago, we released a tire module, which is for tire
54:47
specific shops. And we're continuing to work on the tire space. But for the, you know, I can't
54:54
think of us going into any other areas right now anytime soon because there's just so much to do in
55:00
general mechanical auto repair and tire right now.
55:04
A really good, honest answer. And I give you, again, a lot of credit for having the
55:11
discipline to kind of have that meeting, right? To have the meeting of what to
55:16
say no to. I don't know that there are a lot of leaders that would have that conversation. And
55:22
I think it's a balance between the hyper growth of keep growing, keep growing, keep growing,
55:26
but also being like, I want to own this space, like this, this space is our space and we've
55:32
got to dominate that one space. So I think that's interesting perspective. I honestly don't know
55:38
that I've heard of anybody doing a what to say no to meeting. But I give, I give you a lot
55:44
of credit there too just to have the wherewithal or the thinking to be able to drive that conversation.
55:50
Now, as we get close to the end of this podcast, we have our three questions that are kind of
55:58
maybe a little off topic, but a little on topic. So I'm going to start with
56:05
if you weren't doing this job, what would you be doing?
56:08
Jay, I would probably do one or two things, be flying the plane or
56:14
focusing on law enforcement and helping people.
56:17
The law enforcement thing, I didn't even get to ask questions about that. And I have so many
56:21
questions about that in general. So that we'll have to have you back on some time to talk about
56:24
that. Do you fly currently? I do.
56:28
We do. All right. How long have you been doing that for?
56:30
It's been about a year. So I'm still in the process of completing my private pilot
56:34
license. But it is a, like there's a lot of time you have to spend in order to
56:39
complete everything. So time is always my limiting factor.
56:43
Interesting. What was your first job?
56:47
Movie theater, the dollar of theater in Amarillo, Texas. I was the
56:52
guy that was cleaning the popcorn machine for the longest time. And then eventually became an usher.
56:59
Anything you learned from back then that you kind of still apply to this day?
57:10
Interesting. Last rapid fire question here. What time do you get up in the morning?
57:15
I get up at 4.30 in the morning. And I am in the gym usually by 5.15.
57:19
And I usually work out four days a week.
57:22
For you, has that been consistent throughout your career, early riser?
57:26
Early, it's something that's like, I can't live any other way.
57:30
I see a consistent trend with a lot of our high-performing guests when we ask that question.
57:37
Very early to rise, get a lot of work done before anybody else is even awake.
57:42
And I think when I look at you as a whole, it's such an impressive
57:47
career and really legacy that you've laid out now. And I think it is routine that really
57:53
drives a lot of that. On top of you just being an incredibly smart person and well-read
57:57
person and doing all of the wonderful things that you've done.
58:00
So I can't thank you enough for coming on the podcast today.
58:04
This has been an absolute pleasure. I've got an entire page full of notes here that I took
58:10
over the course of the podcast. Just really looking forward to following along what you're
58:14
able to do with Techmetric in the future. It is really, really exciting. And congratulations
58:19
on everything. Thank you, Jay. It was a pleasure being here with you.
58:22
That wraps up another episode of Beyond the Wrench. If you liked this episode,
58:27
please show your support by rating and following the podcast.
58:30
You can also watch the video interviews on Wrenchway's YouTube channel.
58:34
Speaking of Wrenchway, did you know Beyond the Wrench is managed and produced by the
58:38
Wrenchway team? Wrenchway is an online community dedicated to promoting and improving
58:43
automotive and diesel careers. We help technicians find the best shops to work at,
58:48
and we also help auto, diesel, and CTE instructors get more support from local industry.
58:53
You can learn more by visiting Wrenchway.com.