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Exterior of Kinney's Automotive, Hurst, Texas.

Owning an automotive repair and service facility often requires the ability to balance all aspects of the business. Ricky Stephenson, president of Car Concepts and Kinney's Automotive Service in Hurst, Texas, can attest to this. "The three legs on the stool must balance - the customer, the employees and the business," said Stephenson. He believes that when a decision is made, it must be fair to all concerned.

Kinney's Automotive is a subsidiary of Car Concepts Inc. and is one of four locations Stephenson and his partners own serving the Dallas/Fort Worth metro area. Stephenson began his career in the automotive repair industry following high school graduation. He performed repairs in the garage of his home. "I started from my garage, eventually moving to a 1,000-square-foot warehouse facility in 1985, and finally building my own 8,000-square-foot facility in the early 1990s," said Stephenson.

As many automotive repair facility owners have discovered, Stephenson soon realized making business decisions while still performing repairs was not always in the best interest of the business. "I decided it was time to broaden my education. I have completed numerous Automotive Management Institute accredited business seminars, along with other automotive management-related courses," Stephenson said. In addition to management education, he is a National Institute for Automotive Service Excellence (ASE) master and L-1 certified technician. He also promotes continuing education to his employees. With this rounded knowledge, Stephenson understands what is required to be successful in both the technical and business sides.

While furthering his business knowledge and growing the business, Stephenson had the opportunity to purchase Kinney's Automotive in 2001. Following the purchase of Kinney's, Stephenson and his partners formed Car Concepts and began acquisitions of additional automotive repair facilities. Stephenson currently oversees the daily operations, which includes mostly administrative duties and strategic planning.

"Our shops range in size from 7,500 square feet to 26,000 square feet," Stephenson said. Kinney's is largest of the four facilities with 19 lifts in its 26,000 square feet. The facility, formerly a department store, was transformed into a state-of-the-art repair business. Among the four locations, the average weekly number of repair orders is between 80 and 120. "Our current 2003 revenue projection for the four locations is $6.3 million," said Stephenson.

Kinney's Automotive provides quality service and top-notch repairs with its 19 lifts and 26,000 square feer.

Kinney's has remained successful by following its well-established business philosophy of balancing the customer, employees and business. As a result of this philosophy, Kinney's offers its employees the opportunity to own a share of the business through an Employee Stock Ownership Plan (ESOP). Currently, 75 percent of the 13 employees are eligible to participate in the program. "Every full-time associate has the opportunity to participate in the ESOP as they reach eligibility," Stephenson said. Requirements for program eligibility include being a full-time employee, entering the program on either of the two enrollment periods in January or July and working for the company a minimum of one year. The participants are vested at the end of five years and upon retirement or when an employee leaves the company, can either hold or sell their shares back to the company.

According to Stephenson, the phrase "You will take better care of it when it is yours," seems to hold true. "We have seen our employee-owners take pride in their work, help control costs, and in general make good decisions to help improve overall profitability," Stephenson said.

Employees greet customers and answer phones at the front counter of Kinney's Automotive.

To further increase the customer-base, Kinney's utilizes various advertising methods. The most effective advertising method has proven to be within the firm's own existing customer-base. "Our message is that of quality and service, not that we have the lowest price," said Stephenson. To get this message out, the business uses customer follow-up phone calls, recommendation service letters, new mover programs, seasonal flyers, postcard reminders and customer newsletters. When asked what he would change about business, Stephenson replied, the perception of the industry. "Although we have developed some great trusting relationships with our customers and community, it seems perception is a constant work in progress," Stephenson said. Through its commitment to customers, employees and daily operations, Kinney's continually strives to improve the perception of the industry as a whole.

To demonstrate its professionalism and strengthen its image, the firm is involved with the local Chamber of Commerce, local school district, youth sports associations, church groups and various other community groups. Industry participation is also a key to the success of Kinney's.

The business has been an ASA member since 2001. "ASA membership, to an automotive repair business, is like a toolbox to a technician. The research, information and connections ASA makes available provides those tools needed to improve and enhance our business," Stephenson said.

By finding the delicate balance between business, employees and customers, Kinney's Automotive Service has positioned itself to continue growing and prosper for many years.

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Name: Kinney's Automotive Service
Location: Hurst, Texas
Square footage: 26,000
Web Site: www.kinneyauto.com
On ASA membership: “ ASA membership, to an automotive repair business, is like a toolbox to a technician.” - Ricky Stephenson, president, Kinney's Automotive Service

Automotive Repair Ownership: The Art of Balance

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