By Joe Marconi
According to Zip Recruiter, tech pay on average is about $41,000 per year. Is this an issue? I know many of you pay more than average, but do you think that we need to increase tech pay in order to attract more people to the auto repair industry. One other thing to consider, the shop and shop owner needs to be profitable and make the money first in order to pay anyone a decent wage.
By Joe Marconi
The other day, a customer asked my service advisor, if he would price match a set of tires. This customer got an online quote from the internet; a local TIre Store know for discouting tires.
My rule, I don't price match. My prices are competive and fair.
Would you price match just to get the job, and sacrifice profit? Remember, no one really knows the true cost of any service or repair until the car is in the shop. So, internet quotes are not set in stone.
Our Service writer is paid 8% on all sales. When he is off for 2 days, we have another hourly person that service writes. My question is we pay the SW that was off for 2 days 8% on all sales, but take them as vacation days. The person filling in (he does a great job) pay him the difference if he was service writing and would be commission. Looking to see if somebody has a better solution. If the regular SW is on vacation, I can figure the sales from his last day till he comes back. That is not a problem
By Elite Worldwide Inc.
Let’s say you’re looking to hire a superstar technician. You find one who has a proven track record of success, and put them through a well-constructed interview process. You decide that the person sitting in front of you is the perfect fit, and you make them a formal job offer in hopes that they will agree to join your team. They agree, and for the first time in a while you’re able to sleep throughout the night, because you know you’ve done your due diligence, and have finally found the top tech you’ve so desperately been needing. All good so far, right?
Your new hire comes to work on Monday, and you’re off to a great start. And then…. it happens. Within the first few weeks you start to get the sinking feeling that you may have hired the wrong person. There’s no question that they can fix cars the right way, and they do it quickly. They also show up every day on time, and they keep their workplace clean. The problem is, they don’t follow your procedures very well. Your key employees are telling you that the new guy seems to complain quite a bit about meaningless things, and they’re sad to report that he’s not very social either.
You start to hope that he’ll either “adjust or come around”, or that he’s just dealing with some personal issues that will soon pass. But after a month or two you reach the inevitable conclusion – this guy doesn’t like to follow rules, he has an attitude that doesn’t fit well in your shop, and your other employees are not very pleased that he’s working with you. After many sleepless nights, you decide to let him go, and you start the process all over again.
Unfortunately, many shop owners live in this world of high employee turnover, or end up telling themselves that they’d rather keep someone who’s not a good fit than run the risk of simply swapping out one bad employee for another. If this sounds all too familiar to you, then consider this:
The trap most shop owners fall into is they hire people for what they know, and they end up firing them… for who they are.
To put it another way, shop owners often hire people for their skills, and they fire them for their behavior. So, the best-kept secret to hiring superstar techs and advisors? It’s going a step beyond learning about their skills and experience, and learning more about who they are as a person. As someone who has grown some of the most successful shops in America, I’ve learned over the years that in order to hire top employees that my entire team will really enjoy working with, I have to pay very close attention to their personalities and behaviors during the interview process. I do that to this day with Elite, and it’s been one of the most important keys to my hiring success. However, I also know that my perception of someone’s personality will only take me so far, so I have every applicant complete a 45-minute online behavioral assessment before the first interview. Here’s why.
An assessment can tell us whether an applicant has the propensity to follow rules, how social they are, their level of optimism, how open they are to constructive feedback, and a whole lot more. Not only do these assessments help us conclude whether the applicant is even someone we should interview, but they also give us direction on where we should dig deeper, and the questions we should ask during the interviews. For example, if the assessment suggests they are not very social, then you know you need to ask questions about how they worked with others in the past so you can discover if there were personality conflicts, ego issues, etc. If the assessment suggests they have a propensity to ignore rules and procedures, you can ask them specific questions about how they inspected and repaired cars, and how they interacted with the advisors.
So here’s what I’m going to ask you to do. First, think about the people you’ve fired. Hopefully it hasn’t been many, but I suspect you will discover that with rare exception, the reason you fired them had little to do with their skills, but was because of who they were as a person or how they behaved. Secondly, I’m going to ask that you accept the fact that there are many behaviors (and propensities) that will show up on behavioral assessments that you or I would never be able to detect during an interview, no matter how thorough we may be. And lastly, consider that if you do the math, hiring the wrong person is going to cost you at least $5,000.
If you now agree that you need to dig deep and learn more about who the person really is before you hire them, you need to do what Fortune 500 companies and the top shop owners in America do, and have every applicant complete a behavioral assessment before the first interview. There are many companies that provide such services, such as Predictive Index, Berke, and Myers-Briggs, to name a few. We use Berke, and have been quite pleased.
If you do begin assessing the people you may hire, then you have my promise: You’ll have a much higher probability of hiring the techs and advisors that your other employees will enjoy working with, they’ll follow your rules, and you’ll be able to go to sleep at night knowing you have an incredible team…of superstars.
“Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management courses. You can contact Elite at [email protected], or by calling 800-204-3548."
View full article
Similar Tagged Content
By Joe Marconi
The year was 1980 - the year I founded my company. And, like many new business owners, I didn’t have a clear understanding of what was needed to grow a successful business. I thought that success would be determined by my technical skills and my willingness to wear the many hats of the typical shop owner. It wasn’t until I began to let go of trying to do everything that I realized that success is not just dependent on what I do, but by the collective work accomplished by the team. I eventually discovered that I was not the center of my universe. After a few years in business, I began the transition from simply owning a job to becoming a businessman. And, while technology has reshaped our industry throughout the years—and will continue to do so—there is one constant that will never change: success in business rests largely on the people you have assembled around you.
By the late '80s it was obvious that I was doing way too much. I looked at each role I had my hands on: shop foreman, service advisor, shuttle driver, bookkeeper to lot attendant. And, as long as I’m confessing all this to you, I need to disclose that I was also the shop’s maintenance person; making repairs to the bay doors, the slop sink and equipment. You name it, I did it. I was literally too busy to be successful.
In order to lead my company, I had to first clearly define my responsibilities. These are working on the business, recruiting and hiring the best employees, becoming a leader of people and making sure that my business was successful. I also needed to fulfill the obligation I had to my employees. I realized that this required a deep understanding that putting people first is the best strategy for success. This was difficult at first because it requires working on things that have no immediate impact on the business. Unlike working in the trenches and having your hands on everything, working as a businessperson means that you need to spend time building for the future. The things that are most important to your success in business are the things that have a payoff down the road.
I also clearly defined the duties I should not be doing and assigned those tasks to others. This is a critical step for any shop owner. Warren Buffett says that in order to be successful in whatever you do, it’s crucial to focus on the things that generates the greatest return and that you can’t do it all, and that means sometimes you have to say, “no.”
By the late '90s it became clear that the most valuable role I played in my business was that of coach. All the best marketing plans and the best business strategies mean nothing without a team of great people around you all pushing in the right direction. And that takes a strong leader. Not just a boss, but a leader. Leaders inspire people. Leaders get others to reach down deep inside themselves and perform at their best because they are aligned with the leader’s vision.
Leaders inspire others through praise and recognition for the work they do. When people feel their work matters, they have a purpose. People are motivated by the heart, not the wallet. That’s not to say earning a decent wage isn’t important. But a focus on money alone is not a strategy for success. Focus on people first and profit will follow.
Spend time with your employees. Get to know them as people, not just the role they have in your company. Find out what their dreams and goals are. And then find a way for others to achieve what they want out of life. People cannot be motivated until they realize that what they do every day helps them to achieve what they want in their personal life.
There are other people in our business world that we must never forget. And that’s our customers. If you were to ask me, who is more important, my employees or my customers? I would answer, “They are equally important.” You cannot have a successful business without the right employees and the right customers.
One last bit of advice I can give you is to focus on your success, no one else’s. Be very clear about the pathways you take and never forget about the obligation you have to others. Build a company culture of teamwork, quality and integrity. Focus on what’s in the best interest of the customer and the people around you. Put people first, and everything else will fall into place.
This story was originally published by Joe Marconi in Ratchet+Wrench on February 4th, 2020
View full article
By Joe Marconi
My son was an accomplished wrestler in high school, competing in the New York State Championships. He continued competing during his college years. At a major tournament, in which my son was ranked No. 1, the coached worried about his first match. In tournaments, the No. 1 ranked wrestler competes against the bottom-ranked wrestler in the first round. When I asked the coach why he worried about the bottom-ranked opponent, the coach replied, “Tough competition keeps you sharp. Weaker competition makes you complacent.”
In business, as in sports, complacency occurs when you fail to recognize the strengths of your competition—even if the competition is considered weaker than you. Complacency is caused by many reasons. It could be the result of being successful, which gives you a false sense of security that the good days will continue forever. Or, it could be that the business owner is so entrenched in the day-to-day operations that he fails to recognize the world around him. Complacency also lowers your drive and your focus. It spreads to your employees. Eventually, this will have a detrimental effect on your business.
However, loss of business due to complacency doesn’t happen overnight. It’s a slow, painful death. One day you realize that your car counts are down, your customer base is dwindling and your new customer acquisition is declining too.
Today, consumers have choice and competition is fierce. Every segment of the auto repair industry wants a piece of the service and repair pie. You need to take a long hard look at your competition, analyze it and study it. Then build a strategy around what you bring to the marketplace that will set you apart from the rest.
One thing to keep in mind: In the business world, competition is everywhere. And it’s not just other repair shops, dealerships or the tire store down the road. Your business is being judged and compared to by every experience the consumer encounters. In other words, if your customer had an amazing experience at a local restaurant, your business will be judged against that experience, too. But the question is: How should you compete?
In his book The Purple Cow, author Seth Godin makes the point that your business needs to be so remarkable, people will stop in their tracks to learn more about you. To make the cow comparison: Cows are essentially boring. They really don’t stand out. But, if you’re driving down a road and see a purple cow in a field, you’ll more than likely stop your car to take a closer look. Now ask yourself: Is your business boring? Does it have the look and feel as every other repair shop in town? What can you do to make your business so remarkable, so different, that people will stop in their tracks and take notice? This is a powerful marketing strategy.
No matter how successful your business may be, it’s wise to look at all prominent businesses in your area. Find out who they are, how they market themselves and what makes them stand out. Then, create a strategy that differentiates your business from the rest. By the way, never compete with another business by copying what it does or by the benefits it offers. Copying the competition is what many businesses do, and it’s a mistake. Studying the competition is more about learning what they do, and then finding out what makes you different. What can your business bring to the marketplace that will make people take notice? Think about the company Harley Davidson. When you drive a Harley Davidson, you drive a Harley. It’s not a motorcycle—it’s a Harley. Harley Davidson is a brand so strong, people will actually tattoo the Harley logo on their bodies. Consider Starbucks. People don’t say, “I’m going to get a cup of coffee.” They say, “I’m going to get a Starbucks.” These two companies have a unique brand identity. They stand out among the rest.
Competition is a good thing. It makes you stronger. It makes the entire business world better. It forces you to think about yourself and your brand. And by improving your brand, the customer benefits also improve, which, in turn, makes your business more successful. Never fear competition; rather, you should embrace it. Learn from it. But, remember, look for ways to set you apart from other businesses.
One last thing: Don’t focus on what you do. We all essentially do the same thing—oil services, brake work, suspension, tires and more. Think about why you are in business. It’s your culture. Think about what makes you special and communicate that to your customers and potential customers. Make that special something your purple cow.
By the way, my son took first place in that tournament. Although every match was a challenge, the two toughest matches were the final round and (you guessed it) his first match against a weaker opponent.
This story was originally published by Joe Marconi in Ratchet+Wrench on July 31st, 2019
View full article
By Joe Marconi
Can someone truly have two personalities? A real life Dr. Jekyll and Mr. Hyde—the one you see, and the one everyone else sees? I had a Dr. Jekyll and Mr. Hyde employee a number of years ago; we’ll call him Dr. J. He was my shop foreman and helped the manager run the daily operations. Dr. J was employed about five years before things began to change.
I first learned about Dr. J’s erratic behavior from a few of my employees. According to these employees, his behavior was destructive, disrespectful and rude. He never acted differently in front of me, so I had a hard time understanding what was going on. I talked to Dr. J about what others were saying, and he looked stunned.
“Joe, I really can’t tell you why anyone would be unhappy with me. I get along with everyone,” he told me.
I met with the employees who expressed concerns and let them know that I appreciated their feedback. I told them that Dr. J had been with us for a number of years and that I had never witnessed any unusual behavior from him. I tried to look at all sides and suggested that perhaps he was going through some personal issues, so let’s try to be a little more understanding.
Out of respect, the employees agreed—but not for long. I was away on a business trip when I got a disturbing text message from one of my technicians. The text read, “Joe, if you don’t do something about Dr. J, we’ll deal with it ourselves.” It was late when I got the text, but decided to call the tech anyway. He told me in great detail what Dr. J was saying and how he behaved. I was shocked by what the tech told me. Could this person be a real life Jekyll and Hyde?
It was early Monday morning, my first day back, when my office manager came into my office, closed the door behind her and said, “Joe, if you don’t do something about Dr. J, people are going to quit.” I knew at this point I had a real problem on my hands.
I brought Dr. J into my office and told him everything that I had heard. I told him that the employees did not like the way he treated them and that the harsh words he used was causing a problem with everyone. Again, Dr. J was defensive and denied everything. However, this time he told me his perspective of the situation.
According to Dr. J, the rest of the employees were not pulling their weight and that all he was trying to do was to motivate them. I tried to explain to him that criticism and harsh words are viewed as an attack. And if this strategy is repeated over and over, people will push back and shut down—the exact opposite of any intended good. I could tell by the look on Dr. J’s face that he really didn’t agree with what I was saying, but he told me that he would take my opinion under consideration.
After that meeting, I paid careful attention to Dr. J’s treatment of others. All seemed good. Then one day, I witnessed the Jekyll and Hyde persona for myself. Dr. J didn’t know I was in the front office as he lashed out at one of the technicians. The tone and the words that came out of his mouth were unacceptable and appalling. I saw firsthand what everyone in the shop was experiencing. After repeated attempts to correct his behavior, his conduct never improved. It was time to let him go.
I never found out what changed Dr. J, but I did feel confident that I gave him every opportunity to correct his behavior. While Dr. J may have fooled me initially, I have to admit that I did see that the mood of the shop was tense and morale was down. With Dr. J no longer employed, morale improved and everything went back to normal.
The workplace environment is a delicate balance between culture and production. It’s also filled with emotions. People want to rally together for the greater good. But, they also need to know that their leader protects them from any threats that attempts to harm the team. It’s also wise not to readily dismiss the concerns your employees express to you. Be on the lookout in your shop. You just might have a Dr. J of your own.
This story was originally published by Joe Marconi in Ratchet+Wrench on December 7th, 2018
View full article
Who likes tax deductible food? 🙋♂🙋♂ If you want to make sure you are deducting all of your business meals. Please read the entire article.