By Joe Marconi
For many of us, it's been a wild ride the past few months. We had to take care of everything, making tough decisions, dealing with banks and the SBA and running the shop from the trenches. But, with things looking better each day, it’s time that we get back into the role of building and operating the company.
For many, the COVID-19 crisis is far from over. However, the sooner we begin to adjust and build for the future, the better off we will be.
Shop Owners are among the hardest working people on the planet. We find ways to get through the most difficult situations. I have no doubt that the lesson’s learned from this crisis will make us stronger and more successful.
By Elite Worldwide Inc.
By Bob Cooper
During difficult times like these it's important to look for creative ways to keep your shop's name in the minds of your community members. Here are 3 easy-to-implement tips that will help your shop build its brand recognition in today's climate.
1. If you have a shuttle or any type of vehicle that features the name of your shop, it's important to get that vehicle out in your community. There are plenty of charitable organizations you could partner with that may need delivery assistance, such as Meals on Wheels. You could also provide a shuttle service for local retirement homes and any other group that may need assistance getting around your community, or you could even deliver groceries or household items to these groups. Getting your business's name out there and helping your community will certainly help people remember your shop.
2. Host an online course for people who are currently stuck at home. One specific idea is to host an online car care clinic for new drivers, teaching them things like how to maintain a car, how to deal with a flat tire, how to read and use their car's owner manual, and other similar topics. Not only will this help them learn vital information, but it will give them an indoor activity to focus their attention on, which I'm sure their parents will thank you for.
3. Now more than ever, it's important to have the right attitude each day. This is crucial not only for your own well-being, but for the well-being of everyone around you. A positive outlook will permeate throughout your staff and your community, and show people the type of business you have; one that views each day as a new opportunity to build a wonderful life and a wonderful company.
For additional help building a more successful auto repair business, feel free to give us a call at 800-204-3548 or visit the Elite website.
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I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.
By Joe Marconi
With Mother Google literally tied to our hands, through our cell phones; are part margins becoming more difficult to achieve? Traditionally, shops use a 50% part margin, which they deserve. But, we live in a world today where part prices are so transparent that maybe we need to rethink this.
Consider this: What if we concede on prices? Hold to a suggested list…BUT…raise our labor rate to offset the loss in overall profit. In other words, keep your parts prices at a margin the consumer will not question, but raise your labor to make up the part profit?
This is being discussed around the country and there are shops that have implemented this strategy. We can’t give up our overall gross profit, so is this a viable option?
Virginia's Governor in his 2020 budget proposal has included elimination of the state's vehicle safety inspection program. In addition, a state legislator has introduced a bill doing the same. I serve on the board of the Virginia Automotive Association, a group of over 200 independent shops who have banded together to lobby in the interests of our industry. VAA has ponied up a a $25000 increase in the lobbying budget to fight the move. As a shop owner, I have mixed emotions on the subject, but if I were gambling I would bet that the program will go away. On one hand, it's kind of nice that the state's motorists are forced to bring their cars to a shop once a year, giving us an opportunity to make them life-long customers. Also, it has created a cadre of technicians in the state who have been vetted and background checked by the state police. On the other hand, there are a litany of negatives inluding customer resentment, anger when their vehicle fails, uneven management by the state police who oversee the program due to limited resources. Some shops are "by the book" while others are "sticker mills" who will pass anything. Unfortunately, VAA and others have been unable to produce hard statistics that show that the program .makes a difference in highway safety. The big studies I have found blame driver error for the majority of accidents. What is ironic is that just this year VAA won a long battle to get the inspection fee raised from 16 to 20 dollars. The legislature convenes in January to enact laws that will take effect in June.
I would like to hear how other Virginia shop owners feel and I would like to hear from other states that have witnessed termination of these programs.