By Joe Marconi
New York Governor announced yesterday that the stay-home order will remain in effect until May 15th. With so many consumers not driving and so many businesses closed; sales will be a struggle for the next 4 weeks or more. Many Auto Shops across the country will be in the same boat.
Ok, that's the bad news. The good news is that you are a shop owner, and no stranger to making tough decisions and finding solutions to the most complex problems. I know this is different, but truth is we are all learning together, and we will beat this.
With that said, you will be called upon to remove the emotions from the situation and make the decisions that are best for your employees, family and for the business. You will need to look at your average sales and projected near-future sales and adjust your payroll accordingly. I hesitated for a few weeks, but then made the tough decision to cut staff to get my payroll in line with current sales. It had to be done.
You will also need to look at each line on your Profit/Loss statement and see where you can shave any expenses. Even a few percentage points can end up saving a lot of money at the end of the month.
Lastly, have daily meetings and let your remaining staff know what you are doing. Let them know that the number 1 goal is the health and welfare of everyone. Number 2: Ensure the business thrives, not just survives.
You are tough....now go make those tough decisions!
By Joe Marconi
I have been contacted by many shop owners about the decision to close or not. In most cases across the nation, Auto Repair Professionals are considered essential workers. Which means that we can stay open for business. However, even though we are essential, I personally will not demand my employees to come to work. If business fails because of this virus, it will fail in the short term. We will all eventually find a way to come back and rebuild our businesses.
Things are changing by the hour, and that makes our decisions as leaders even more difficult. I don’t want to get sucked into panic, but I don’t want to turn a blind eye to the fact that we are in uncharted territories and that we are all learning from this crisis together.
The decision to close your business is yours. There is no wrong or right decision here. The safety and well-being of our families are our number one concern. If it makes it any easier, make your next decisions from the heart, not from a business standpoint. Be strong, be a leader, and know that we will get though this.
When the dust begins to settle, we will have learned a lot about business and even more about who we are are as a culture and a society.
I cannot tell you what I am doing tomorrow. I plan on having a meeting with my staff, and a decision will be made to stay open, cut staff, cut hours or perhaps another scenario will surface. I will keep you updated and try to bring a little sanity to everyone during these crazy times.
You are all leaders; you are automotive shop owners. You are the toughest of the toughest. I know you and I will prevail through these troubling times and I look forward to the future when we can all look back and say…”We may it through, and we’re better off for it.”
USA Today article (Friday September 27, 2019 by Nathan Borney - USA Today) shows that “the average age of cars and light trucks on U.S. roads reached an all time high of 11.8 years in 2018.”
The article goes on to claim... “By 2023, there will be about 84 million vehicles on the road that are at least 16 years old, reflecting a 240% increase from 35 million in 2002, according to IHS.”
Are you getting your share?
There’s only 90 days left in 2019 and the market is changing. Sorry, it HAS changed. Are you ready? Do you have your plans laid out for marketing your shop in 2020?
Auto Service Marketing - Fix Your Car Count FAST!
Hope this helps!
"The Car Count FIxer"
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Zeus, Snap-on has said they will remain with the windows 7 platform on Zeus after the end of life 1/2020. No upgrades to Win 10. Any insight on tool impact, If any?By dstremski
Zeus, Snap-on has said they will remain with the windows 7 platform on Zeus after the end of life 1/2020. No upgrades to Win 10. Any insight on tool impact, If any?
Six metro Detroit auto repair shops and dealerships are under fire by the Michigan Secretary of State for allegedly not being in compliance with state regulations.
Two repair shops were ordered to cease and desist from conducting business. The agency also summarily suspended the business registrations of four other facilities.
According to a news release from the agency, the cease and desist orders were issued to:
Star Motor Auto Repair, 21579 Schoenherr Road, Warren, owned by Jack Musa. The facility allegedly performed brake, electrical system and tune-up repairs without a certified mechanic. A regulation agent discovered Musa’s mechanic certification had expired, the agency said, but he was continuing to repair vehicles. Star Motors' telephone number has been disconnected and Musa could not be reached for comment. MC Auto Repair, 1650 Waterman St., Detroit, owned by Michael Castro, for allegedly operating without certified mechanics. A regulation agent completed an inspection at the facility Dec. 11, the agency said, and found Castro, whose certification had expired in July 2005, performing repairs. Castro met with department staff at a preliminary conference in January, and the temporary cease and desist order was issued Feb. 8. Castro could not be reached for comment. MC Auto Repair's number is not in service and the facility is marked "closed" on Yelp. The cease and desist orders prohibit the businesses from performing any more repairs until the facility complies with state law.
The agency also suspended the registrations of the following businesses:
VAN Car Co., 7101 E. Eight Mile Road, Warren, owned by Nadhem Shaiya, was suspended March 15. The dealership no longer is operating at its registered address and failed to notify the department’s Business Compliance and Regulation Division of a change of address. A preliminary conference was scheduled for Feb. 12, but the dealership owner failed to attend. Shaiya could not be reached for comment. Witko Group Inc., 33457 Gratiot Ave., Clinton Township, owned by Don Witkowski, was suspended March 18. A regulation agent attempted to conduct a lot and records inspection Feb. 6 and again Feb. 7, but the dealership was closed with no sign or hours posted. Witkowski told the Free Press on Friday that a dealership is not at the site. He said he owns the building, in which there is a separately operated auto repair business. Witkowski also said he is unaware of any suspension and has not been contacted by the secretary of state. Mogul Trading, 2801 S. Beech Daly St., Dearborn Heights, owned by Milton Small, was suspended March 8. Lot and records inspections were attempted Jan. 16 and again Jan. 28. The dealership wasn’t open during posted business hours and couldn’t be inspected. Small could not be reached for comment. Superior Plus Auto Sales Inc., 10614 Joy Road, Detroit, owned by Ghada Chokr, was suspended March 8. A regulation agent attempted a lot and records inspection Jan. 16 and again Jan. 28. The dealership wasn’t open during posted business hours and couldn’t be inspected. Chokr could not be reached for comment. The dealerships may regain their license if they show they’ve complied with the law. Consumers can verify whether the repair shop they are using is registered with the state by using the online search tool at ExpressSOS.com and clicking “Business Services” and then “Repair Facility Services.”
News Source: https://www.freep.com/story/news/local/michigan/2019/03/29/michigan-auto-repair-shop-dealerships/3301802002/