149 - Designing a Self-Managing Shop and a Life You Actually Want, with Tracy Cotton
September 18, 2025 - 00:43:56

 

Show Summary:

This episode features Tracy Cotton of Santa Cruz to talk mountain biking, mentorship, and building a self-managing Japanese-specialty shop. Tracy shares how a bankrupt dealership-adjacent shop turned into his business overnight, why he narrowed to core Asian makes, and how interviewing classic Toyota owners protects culture and margins. He digs into team structure, bonuses, and the autonomy that lets him step away for days without a call. The two unpack coaching that “hurts your feelings but tells the truth,” the BAR surprise visit his team handled flawlessly, and Tracy’s next chapter: rekindling passion, potentially selling to his leadership duo, and maybe coaching. They close with a big wish for the industry: unite independents under one strong voice and defend the right to repair.

Host(s):

Jimmy Lea, VP of Business Development

 

Guest(s):

Tracy Cotten, Owner of Mick's Automotive 

 

Show Highlights:

[00:02:10 ] - Toyota T-TEN grad to shop owner after a sudden bankruptcy, buying the business for about $23K nearly three decades ago.

[00:08:39 ] - From “we worked on everything” to a focused Asian lineup, and why Kia and Hyundai no longer fit his model.

[00:11:22 ] - The interview policy for classic Toyotas, with a paid maintenance inspection required to ensure commitment and protect culture.

[00:13:15 ] - Saying no to “PSS” cars keeps morale high, procedures consistent, and the brand promise intact.

[00:14:24 ] - Six lifts in roughly 3,900 sq ft, landlocked in Santa Cruz, and zero interest in a second location by design.

[00:20:45 ] - Delegation rhythm that grows a 21-year-old from apprentice to full tech while the foreman orchestrates workload.

[00:21:35 ] - BAR shows up while Tracy is away, the team handles everything, corrects the ask, and documents the win.

[00:28:50 ] - Team bonuses versus individual drive, attempts to nudge a steady 30–35 hour tech higher, and the tradeoffs of roster changes.

[00:37:15 ] - A wish for one unified voice for independents, better technician economics, and a strong right to repair.

 

In every business journey, there are defining moments or challenges that build resilience and milestones that fuel growth. We’d love to hear about yours! What lessons, breakthroughs, or pivotal experiences have shaped your path in the automotive industry?
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Episode Transcript Disclaimer

This transcript was generated using artificial intelligence and may contain errors. If you notice any inaccuracies, please contact us at marketing@wearetheinstitute.com.

 

Episode Transcript:

Jimmy Lea: Hey friends, good to see you. My name is Jimmy Lee. I'm with the Institute for Automotive Business Excellence, and this is the Leading Edge podcast. Super excited to have you here with us today, and my guest today is Tracy Cotton. Tracy, how the heck are you, brother?

Tracy Cotton: Doing awesome. Doing awesome. Another beautiful day here in Paradise.

Jimmy Lea: It is. It is a great day, isn't it? Now you, we were just talking. You love mountain biking. I am a road biker, so I have my Marin. That I go for long rides on the bike. Me and Dave Cusa hook up every once in a while, go riding you and tsu. Did you guys go mountain biking here for a minute?

Tracy Cotton: Yeah, so he came up for the A SCC meetings.

We rode around here in Santa Cruz and then took off to Truckee and after the meetings, Truckee and Mammoth and went mountain biking and yeah, it was all good. All good time to get some sweat out. Pound the pedals so I don't pound other things, you know? Yeah. It was all good.

Jimmy Lea: Well, good. And how was the meetings?

How was the association?

Tracy Cotton: Good. I've got friends that have been trying to get me into it. I've kind of gotten out of going to training, meetings, groups and everything. Last two years. 'cause I've been in 'em since day one. Day one. And I just needed to step back and, you know, with my own thoughts.

They was good. It's good. It's, I'm thinking of joining it, you know, California needs more support, you know, so highly likely. I will.

Jimmy Lea: Well that's wonderful. You know, and it's great that you've been such an avid. Advocate for the industry and the association for so many years. I know it's not just been a few, it's been a lot.

And it's okay to take a minute to take a knee and say, Hey man, I gotta catch my breath. I need to take a break. Yeah. And do that. And as you come back in, realize where are those boundaries? When is it become too much? When, and you know, these things. Yeah. Yeah. That's good. That's good. Well, Tracy, how did you get started, speaking of being in the A-S-C-C-A for so long, but in the automotive industry?

How did you get started in the automotive industry?

Tracy Cotton: Well I actually went to school to become a mechanical, what I call technician, which is, goes out in the field and builds what the engineers build, has engineering, you know, got engaged, dropped outta school because that didn't work. That fell through.

And had to get going something. And I'd been, I've never had a job out of the automotive field, gas stations, tire shops. I was a wholesaler to Napa for a while and said, Hey, I gotta do something with my life. And went to school. I actually got a grant or by the Toyota was one of the first Toyota T 10 graduates, way back when, you know.

Took off running with that. Moved to Santa Cruz and after the dealers, one of the guys that I bought my shop from was working at the dealer 'cause he did what a lot of people did was jump in headfirst into a shop, not knowing what to do and, yep. I he was a parts soul set. He was the parts manager, so he was going around to the dealers to help them.

Found me, stole me from the dealer. And then a year, just over a year later, he declared bankruptcy. Yeah. So terrible. Yeah, I was taken off on vacation. He called me two days later 'cause I was, it, I was managing, working on it and every, not, I wouldn't call managing it. I was running the day to day things and he's like, no, we're shutting it out.

I'm like, what? He's like, no, we're shutting it down now. Not while you're gone on vacation. So. Three days later I didn't go on vacation and me and my girlfriend stayed and three or four days later I basically bought the shop from the wholesale. This is, you know, and, you know, took off on vacation anyways 'cause I figured I wouldn't have time.

And, a week later I was running a shop, so, yeah. Oh, so you bought the shop you were working in? Yeah, well he declared bankruptcy and yeah, so we bought, you know, wrote everything out, wrote him a check. For the, what the, to satisfy the bankruptcy courts. And then wrote his mom a check for the business, so the bankruptcy court wouldn't take it.

And basically I got a established business for 2220 $3,000. But now, this was 28 years ago.

Jimmy Lea: Well, so translated maybe today it's $300,000, but still it's one heck of a deal.

Tracy Cotton: For the people that are looking to run a second or third shop to get an established shop, then yeah, this was, he established, you know, I knew the numbers.

Called my dad up and said, Hey dad, I'm, I've got this opportunity. I just bought a house. I go, I don't need the money, I just need the confidence. If I do need the money, I can come to you to borrow money. You know? And he said, yes. He goes, well, you gotta gimme. Gimme some type of outline. I, you know, back then put it on Word, sent it to him.

He is like, okay, take off. You know, and I took off running, you know, so, and then I started with. Business mentors from day one.

Jimmy Lea: Who were your mentors who helped you?

Tracy Cotton: Well, at first some guy that I fired because he just didn't understand things. And a guy named Mike Sers, which I believe passed away.

Yeah, he was in and stuff. And then I joined the World PAC groups. Right. Yeah. One meeting before Cecil took over. Oh. And I'd actually gone to a meeting with Cecil, one of the classes early on. And, you know, he was, you know, and then actually I think Cecil took over on the first class that's been 15 ish years ago.

So, yeah. And joined the world Pac business groups when it was way back way, way back when, you know. Yeah. And yeah. Took off running.

Jimmy Lea: So what did you think of Cecil's? Classes in the the World Pack group, the smart groups. I've heard mixed reviews, so I just wanna preem