When Coaching Falls Apart: The PMA Report, ATI's Shake-Up, and Why Leadership Matters More Than Ever [E263]
About this episode
The latest PMA benchmark report delivers a shocking truth: bottom-performing auto shops actually charge higher labor rates than top-tier shops, proving that profitability hinges on leadership and execution rather than just pricing. Host Chris Cotton breaks down these findings alongside major leadership shake-ups at the Automotive Training Institute (ATI). With key executives departing ATI, shop owners are urged to evaluate their coaching relationships, prioritize productivity over marketing, and transition from a technician mindset to a true CEO. It is a candid look at why the person coaching you matters far more than the logo on the building.
The latest PMA Benchmark Report confirmed something we've been teaching at AutoFix Coaching for years: the biggest problem facing most independent repair shops isn't labor rates, marketing, or even the technician shortage—it's leadership.
In this episode, Coach Chris Cotton breaks down the coaching-related findings from the PMA report and explains why top-performing shops consistently outperform the rest through better systems, stronger leadership, improved productivity, and disciplined execution.
Chris also discusses the recent leadership changes at Automotive Training Institute (ATI), what those changes may mean for current coaching clients, and why shop owners should evaluate coaching based on the people, accountability, and results—not just the company name.
If you've ever wondered why some shops continue to grow while others stay stuck despite charging higher labor rates or spending more on marketing, this episode will challenge your thinking.
In this episode, you'll learn:
- Why higher labor rates don't guarantee higher profits
- The real reason productivity is a leadership metric
- What the PMA report reveals about elite-performing shops
- Why many owners become their own growth bottleneck
- What ATI's recent organizational changes could mean for coaching clients
- How to evaluate whether your current coaching relationship is helping your business grow
- Leadership changes everything. The numbers prove it.
Sponsored By Shop Marketing Pros
Shop Marketing Pros helps independent auto repair shops dominate their markets through SEO, website design, Google Ads, and digital marketing strategies built specifically for the automotive industry.
Learn more at:
https://shopmarketingpros.com
Need Help Understanding Your Numbers?
Schedule a discovery session with AutoFix Auto Shop Coaching today.
https://autoshopcoaching.com
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo: https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook Group, go here: https://www.facebook.com/groups/autorepairmarketingmastermind
Connect with Chris:
AutoFix-Auto Shop Coaching
www.aftermarketradionetwork.com
940-400-1008
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
YouTube: https://bit.ly/3ClX0ae
Email Chris: [email protected]
The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/
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PMA Benchmark Report
"And then the newest PMA benchmark report dropped and it absolutely destroys those excuses. The bottom performing shops are actually charging more per labor hour than the top performing shops."
A yearly financial report that looks at the numbers from hundreds of auto repair shops to show what the most successful shops are doing differently compared to those that are struggling.
An annual financial benchmark report published by Paar Melis and Associates (PMA), a specialized accounting firm for the automotive repair industry. The report aggregates financial data from hundreds of independent auto repair shops to establish performance baselines for profitability, labor rates, and productivity.
AutoFix AutoShop Coaching
"But instead, the report says exactly what we've been telling Autifix coaching clients for years."
The business coaching company run by the host of this podcast, Chris Cotton, which helps auto repair shop owners improve their leadership and business operations.
An automotive repair shop coaching and consulting firm founded and run by Chris Cotton. The company focuses on leadership development, key performance indicator (KPI) accountability, and operational processes to help shop owners transition from technicians to CEOs.
Automotive Training Institute (ATI)
"ATI has gone through significant leadership changes, including the departure of several longtime executives and coaches that many shop owners have known for years."
A well-known training and coaching company that helps auto repair shop owners learn how to run their businesses better and make more money.
A major coaching and consulting company for independent auto repair and collision shop owners. Founded in 1980, it provides business management training, financial analysis, and peer groups to help shop owners improve profitability and operations.
Hunt Demarest
"Overall, the PMA report didn't surprise me and if you don't know what that is, that's the Parmelas accounting report that Hunt Demmers put out. If you're not listening to his podcast, go over and listen to it."
An accountant who specializes in helping auto repair shops manage their money. He hosts a podcast and releases a yearly report showing how the best shops run their businesses.
A prominent certified public accountant (CPA) in the automotive aftermarket industry and partner at Paar Melis and Associates. He hosts 'The Business of Auto Repair' podcast and publishes the annual PMA financial benchmark report for independent auto repair shops.
ARO (Average Repair Order)
"CEOs measure every week, daily sales, hours sold, hours produced, ARO, GP, net new customers, Google reviews."
This stands for Average Repair Order. It is the average amount of money a customer spends when they bring their car in for service, calculated by dividing total sales by the number of customer visits.
A key performance indicator (KPI) in automotive repair shops calculated by dividing total sales by the number of repair orders written. It measures the average amount of money a customer spends during a single visit.
Shop Marketing Pros
"This episode is brought to you by Shop Marketing Pros. Here's something interesting. The PMA report proved that most struggling shops don't actually have a marketing problem first, they have a production problem."
A marketing company that only works with auto repair shops, helping them get more customers through websites, online ads, and social media.
A specialized marketing agency that focuses exclusively on independent auto repair shops. They provide websites, search engine optimization (SEO), Google Ads, and branding strategies tailored to the automotive aftermarket.
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