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  Shop Profile

When Opportunity Knocks

Posted 4/4/2002
By B.J. Johnson

The Dr. Volvo Specialist
Exterior of the Dr. Volvo shop in Fountain Valley, Calif.
Jerry Fair, majority stakeholder in Dr. Volvo, is an unusual entrepreneur in the automobile repair business. He is not a technician. In fact, he admits his mechanical aptitude is less than average. When asked how he got involved in an industry in which he was so unfamiliar, he responds, “Occasionally we are in the right place at the right time.”

In 1988, a good friend, who was a Volvo factory-trained technician, wanted to start his own Volvo business. He asked Fair for his business advice since Fair had already started and operated three different corporations in the previous 13 years.

After many discussions and a feasibility study, the two decided to become partners and form the corporation, Dr. Volvo. Three years later, due to his partner's illness, Fair bought him out.

To keep overhead low, Dr. Volvo began its operation in a small, 1,800-square-foot shop. For two years all proceeds were reinvested into the business with no salaries to the partners. In March 1993, Dr. Volvo moved to its current, expanded location in Fountain Valley, Calif. This facility has 11,500 square feet, 26 bays and performs approximately 175 repairs per week.

The Dr. Volvo Specialist
Employees hard at work inside the shop.
“One of the wonderful things about entrepreneurship is the only limitations we have is our imagination. Anything we can conceive and believe in, we can create,” said Fair.

One spin-off from the repair business was a natural. Dr. Volvo added a second dimension in 1996 and began selling Volvos. The two operations greatly complement each other. Fair's greatest concern was to maintain quality and reputation in both entities. He believes quality is the cornerstone for success and longevity of any business.

Dr. Volvo maintains a large inventory of widely assorted Volvo parts, which is necessary because the business is open for extended hours and on Saturdays. Their 95 percent one-day repair rate can be largely attributed to a $250,000 Volvo parts inventory.

A third company was created in 1998 - The Dr. Volvo Wholesale Parts Specialist. This company sells Volvo parts nationwide, which fills a special void. According to Fair, most Volvo dealerships do not carry a large assortment of Volvo parts more than 10 to 15 years old. These hard-to-find parts are the company's specialty.

These three related companies currently employ 22 employees. Projected sales volume for the repair facility is $2 million, $600,000 for the Volvo sales and $1.5 million for the wholesale parts company.

Fair's main role in all three companies is focusing his attention on growth potential, marketing and business legalities.

The Dr. Volvo Specialist
Waiting area of Dr. Volvo.
“I give our business general direction and guidance, delegating proper responsibility to co-workers, which allows them the flexibility needed to be successful. We must surround ourselves with trustworthy, successful people and reward them accordingly,” said Fair. He feels fortunate to have a knowledgeable and capable group of people on his staff.

Marc Kennedy is the general manager of the corporation and is a prime example of surrounding oneself with successful people, said Fair. Kennedy has been with Dr. Volvo since 1988 and has worked his way up to general manager.

Continuity for the employees is a very important concept for Dr. Volvo. “All key employees are given an opportunity to own stock in Dr. Volvo. Currently we have five employees who are stockholders. Each of these stockholders has been with us for over nine years,” said Fair.

Dr. Volvo has three goals that are crucial to its success. They are, in order: to please the customers, to provide an optimum workplace for its employees, and to remain profitable. “The proper order of customer first, employee second and owner third must never be violated,” said Fair. He believes so completely in this order of importance that employees are constantly reminded to keep these goals in proper order.

The Dr. Volvo Specialist
The Dr. Volvo Wholesale Parts Specialist counter.
By remaining committed to this philosophy and sharing it with his peers, another opportunity presented itself. In 2001, Fair began an information-based company and seminar named “Keys to Building a Better Business.” This sector of the corporation is designed to assist repair businesses solve common problems at a reasonable cost. “We aim to answer questions the repair business owner hasn't the time to ask or research. Learning to duplicate ourselves is an important process of growth,” said Fair.

During the six-hour seminar, Fair addresses several topics including administration issues, employee relations and marketing. “I have personally spent some time calling on independent shops and identifying common needs and problems,” said Fair. Additional research was done through telephone calls to major successful independent Volvo repair shops around the country asking for new advertising ideas since Sept. 11. A list of 18 creative advertising ideas is presented during the seminar, and is available free of charge upon request.

Fair appears to have an innate ability to approach situations in a proactive manner. As an Automotive Service Association member he collected approximately 1,500 customer signatures in support of U.S. House Resolution 2735, “The Motor Vehicle Owner's Right to Repair Act.” Fair took it upon himself to contact 600 other independent Volvo repair facilities around the country to inform them of the legislation and ask for assistance in gathering the signatures.

The Dr. Volvo Specialist
Counter area for the Volvo sales department.
“I believe communication and understanding through ASA is critical to the success and continuity of the quality independent repair shop. I appreciate ASA's drive to pass H.R. 2735. All manufacturers should have responsibility to make available to the public all information and necessary equipment to diagnose and repair their product. Anything less is not democratic,” said Fair.

Fair's proactive approach is not limited to business decisions. His community also benefits. “We sponsor a local soccer team and we never say no to any local charity,” he said. In addition, Dr. Volvo established a non-profit fund for Sylvia's Kids, a foster home placement program. “We also donate to the American Legion White Cane Post No. 266 veterans in Garden Grove, Calif., a foundation established to assist older veterans of foreign wars. We raise funds from various sources to help,” said Fair.

Achieving success in all areas of his life is very important to Fair. A driven and committed man, Fair says he will continue to seek new and challenging opportunities while advancing his current ventures. “I love the limitless possibilities of creativity that challenge the small business owner,” said Fair.

Shop Stats

Name: The Dr. Volvo Specialist
Location: Fountain Valley, Calif.
ASA member since: 2000
Square Footage: 11,500
No. of employees: 22
No. of years in business: 14
Business slogan: “ Volvo service the old-fashion way. We do it right the first time.”


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