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About this blog

A Blog by Joe Marconi, co-founder of AutoShopOwner , owner of Osceola Garage, and  Business Development Coach at Elite Worldwide, Inc.

Entries in this blog

Customers

Never Apologize for Your Prices

Shop owners today understand the challenges of rising costs and inflation.  Without addressing this issue and making the needed adjustment to your margins, the increase in your expenses will end up hurting your bottom line. Adjusting prices, up or down, is a function of being in business and, at times, unavoidable. Shop owners often fear that their customers may push back with any price increase. They ask themselves,  “Will my customers understand? Will they shop other auto repair shops to
Joe Marconi

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Management

Raising Labor Rates and Prices May Not Achieve Profitability

Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple? The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production
Joe Marconi

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Customers

Three Simple Steps to Improve Customer Retention, Sales, and Profits

Nearly every car that leaves your auto repair shop today will need some sort of service or repair in the future. The question is, will your customers take their car back to you? In this blog, I will discuss three simple ways to increase your customer retention rate, which will also increase sales and profits. First, ensure that the entire customer experience is amazing; from scheduling the appointment, vehicle write-up, the sales process, and especially car delivery. A poor experience could
Joe Marconi

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Management

Don’t think you need an Exit Plan? Think Again!

As shop owners, we get consumed with the day-to-day routine of running our businesses. When we are young, we think we have all the time in the world to plan for our futures.  When we hit middle age, we think about our end game, but too few of us do something about it. And when we reach retirement age, we wonder if we did all the right things to prepare for life after owning an auto repair shop. The reality is that life can throw you a curve ball at any age. This means you need to prepare to
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Marketing

Do You Know the First Step in Your Marketing Plan?

There are many things to consider when creating a marketing plan. Among them are establishing a budget, what forms of media should be used, and whether traditional advertising, such as TV, radio, and print, is still relevant.  And of course, how much should be allocated to social media and digital advertising? All the above are essentials to any marketing plan. However, the first step is ensuring that you have a healthy workplace and that your employees understand your company’s culture and
Joe Marconi

Joe Marconi in Marketing

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Customers

Why You Don’t Want a 5-Star Google Review Rating

Contrary to what many people believe, having a perfect 5-star Google review rating is not something a business should expect to achieve. After all, no company is perfect. And Google realizes this too. There’s no denying that consumers look at online reviews and base part of their buying decision on these reviews.  A great online review rating on Google is essential to draw traffic to your website and your business.  However, it’s better to have a mix of great and not-so-great reviews.
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Management

5 Reasons for Low Shop Production

Typically, when productivity suffers, the shop owner or manager directs their attention to the technicians. Are they doing all they can do to maintain high billable hours? Are they as efficient as they can be?  Is there time being wasted throughout the technician’s day?  All these reasons factor into production problems, but before we point fingers at the technicians, let’s consider a few other factors. Are estimates being written properly? Are labor testing and inspections being b
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Employee Retention

Shop Owners: Don’t Expect Your Employees to Leave Their Problems at Home

“Leave your problems at home” is a common expression. The thinking behind it is that if you are having a problem at home, it will affect your performance at work. So, change gears when you get to work and put the problem out of your mind. However, can people just shut it off?  Can they leave their problems at home?  Consider this example; your technician and his wife have a very sick child who is getting worse. Their doctor is concerned and wants to refer the child to a specialist, fearing
Employee Retention

Want to End Your Technician Shortage? Focus on Retention!

I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought abou

Losing My Patience, Never My Passion

Losing My Patience, Never My Passion   As a shop owner, that began his career as a mechanic 36 years ago, the effort of building a business has taken its toll in many ways. While I have not lost my passion for what I do, I have lost my patience with many of the things I see around me. I have built a business from a small 2-man operation to a 2-facility company with close to 20 employees. It’s often said that you need great people around you in order to achieve success. But the truth is without
Joe Marconi

Joe Marconi

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Management

Why You Need to Balance Life and Work

The summer is in full swing, which means your shop is probably at its busiest. Summer also means it’s vacation season. You’ve probably done a great job scheduling your employee’s vacations, but what about yourself? Are you planning time off too? Shop owners are among the hardest-working people on the planet. This is a quality to be admired.  However, everyone needs time away from their businesses to spend with friends and family. Balancing work with life is your responsibility to yours
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Employee Retention

Your First Step to Attract & Retain Quality Employees

A recent study, done by Harvard Business School, concluded that the real problem with attracting and retaining employees has more to do with the workplace environment, not pay or benefits. While the study did find that an adequate pay plan and offering an attractive benefits package did help with recruiting and retention, it’s not enough to satisfy the needs of employees, especially those of front-line workers. The study also stated that in 2021, many companies were convinced that giving ra
Customers

What Your Customers Don’t Tell You is What’s Most Damaging

You’re out to dinner with a friend. The service was horrible, the meal took forever to get to your table, and it was not what you expected. You get the check, pay the bill, and start heading for the door. At the door is a woman, a staff member, holding it open and saying in a monotone voice, “How was everything?” You pause for a second, look her in the eyes, and reply, “Everything was fine, thank you.”  As you walk to your car, you turn to your friend and say, “That’s the last time I go to that
Joe Marconi

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A Customer Teaches Me About Life

A Customer Teaches Me About Life   I will always remember the first day I met Mort Rubenstein. He was in his early 70’s at the time, about 18 years ago and used a walker to get around. He told me that he preferred to wait with his car while it was serviced and that he didn’t mind waiting, no matter how long it took.   I remember as he was leaving my office for the first time, I offered to help him to his car and tried to hold the door open for him. Since he used a walker, I felt I was doi
Joe Marconi

Joe Marconi

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Employee Retention

Are Your Employees Looking to Leave You?

There’s a lot of talk these days about finding quality employees. Creating a continuous recruiting process to find and hire quality people is essential for your overall success. However, shop owners also need to consider their existing employees and create a work environment where people feel wanted. The truth is you cannot afford to lose the people you have now, especially if those employees are superstars.  Another reality is that with so many shops looking to hire, they may be trying to recru
Customers

Shop Owners: Stop Doing Oil Changes!

No, I have not lost my mind. You and I both know that the oil change business is different today from what it was years ago. If we go back to the 1980s, and up through the 1990s, we judged customer visits by a factor of 4 to 5, which meant that we needed to see a customer at least 4 to 5 times a year, an indicator of customer retention rate and loyalty. Back then customers brought us their vehicles every three to four thousand miles for the traditional oil change. That business model no longer h
Employee Retention

Here’s The Perfect Automotive Technician Pay Plan!

Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best. At a recent industry event, a

To Sell or Not to Sell?

The other day one of my techs was replacing front brake pads and rotors on an older Subaru. The caliper bracket bolts were seized and one of them snapped off. This is a common problem and we are well aware of it. We try our best with rust busters and heat, but sometimes nothing works. The tech drilled out the broken bolt and finished the brake job. No problem, right?   Here’s the problem, who pays for it? Me,or the customer? I asked the tech if he informed the service writer. He said he did. I
Joe Marconi

Joe Marconi

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The Long Term Effects of Keeping An Employee Who Should be Fired

About a year ago I hired a service advisor that I believed at the time would be a great asset to my shop. He had a lot of experience, knowledgeable about the business and well-spoken. He showed all the right credentials.   Soon after being hired, I noticed something that I did not pick up in any of our three interviews; he did not smile. How was it possible I did not notice this? A few more days turned into weeks and I could see that this person’s personality, or lack of personality, did not
Joe Marconi

Joe Marconi

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The Lonely Leader

Everyone has their own perception on life and the world around them. This perception becomes reality and it’s the only reality that matters. At least for most. This does not always hold true for shop owners.   As shop owners, we don’t always have the luxury of viewing things from our perceptive. There are other people around us and their families to consider. As the owner, and the leader, our concerns and issues take a backseat to the concerns and issues of others. This is something I know
Joe Marconi

Joe Marconi

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Customers

Who’s More Important, Your Customers or Employees?

Herb Kelleher, the co-founder of Southwest Airlines, was once asked, “Who’s more important, your customers or your employees? Thinking back on what his mother had taught him, Kelleher responded, “My mother taught me that your employees come first. If you treat them well, then they treat the customers well, and that means your customers come back and your shareholders are happy." Shop owners have been taught that the customer is always right and that their needs supersede all other needs. An
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Customers

How to Keep Your Bays Full, All Year Long!

We all know there are times of the year that are better than others and times when business is slower than what you would like it to be. While every company goes through highs and lows, there are things you can do to help keep your bays full all year long. One of the best ways to achieve a more consistent car count is to make sure that every customer that leaves your shop today has their next future oil change or factory maintenance appointment booked. Please don’t tell me you have tried th
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Management

Nine Ways to Improve Your Bottom Line

The strategies outlined in this blog reflect real-world strategies I have learned and used in my 41 years as an auto shop owner. I also use these strategies when helping clients as a business development coach.  While running a successful auto repair shop today has many components, the list below contains the top 9 strategies I believe every auto shop owner should consider when looking for ways to improve their bottom-line profit.  Ten Ways to Improve Your Bottom Line: Hire the
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