By Joe Marconi
It's hard to believe that it's almost a year since COVID-19 hit. And for many businesses, and repair shops, it's been a challenge. While many areas around the country have not seen a downturn, there are other areas that have been harshly impacted.
Areas such as mine have seen a decline in miles driven per customer of up to 50% or more. Just consider working from home, the drastic decline of going out to dine and other activities, a decrease in after-school activities, a decease in youth sports, buying online and every other action that has become the norm, and it adds up to a negative impact for so many shops.
NOW, you know ME. I always put a positive spin on everything. At this too shall pass. COVID-19 will be behind us and we need to prepare for great times ahead.
I urge everyone to focus on people: Your family, your employees, your customers, and the community.
With regard to your customers, they will remember you and their experience long after the water pump or mass air filter you replaced in their car.
If you are having a decline in sales, here a few tips: Establish your new goals, look at your expenses, reevaluate your breakeven, make sure your labor and part margins are in line. BUT, never forget that your most important strategy is the culture of your business.
Lastly, cherish every minute with family. This Crisis has brought Clarity. And let's never forget the things that money cannot buy.
Barry Barrett, a Certified EOS Implementer
As an EOS Implementor in his company, Business With Purpose brings dedicated support to Leadership and Sales teams in all types of organizations, helping them structure the six key components of their business to make it operate with the best processes for their specific industry, using the EOS Model.
Barry’s energy is contagious no matter if he is in a session with a client, giving a keynote address, or rolling up his sleeves in a workshop. Barry is a business coach with his positive mental attitude, incredible work ethic, and determination for excellence, his results-oriented approach is matchless.
Barry is driven, caring, and passionate; traits that he uses to help his clients grow their businesses in a positive way. Find Barry’s other episodes HERE.
Key Talking Points
People- 80% of business issues stem from85% of the world lives in the quadrant “good at their job, but don’t like it.” Find people that share your core values- everyone values things differently, if they don’t share the same core values it doesn’t make them a ‘bad person.’ Kicking vs pulling back- would you rather have an employee you need to pull back vs someone you have to ‘kick?’ Discovering your core values- pick 3 people you admire most in your organization (if you had 100 of them you could take over the world), if not in the organization then 3 people in your life you admire. If you cannot choose 3, then really consider who you surround yourself with and who you hire in your business. RPRS- right people, right seatRight people- fit the culture and share core values Right seat- get it (born to do the job), want it (want to come to work every day), and have the capacity to do it (tools, time and training)Wrong person, right seat/right person wrong seat Being the right person to implement EOS- love people (if you don’t love people then you can't lead, abundance minded, more afraid of status quo than change ExpectationsUnmet expectations lead to frustration Most owners aren’t clear about their expectations How is overrated, who is underrated Completing and working a job is easy, finding the right people is hard Having the right people at your business means you can teach them the “what.” “Who Not How” by Dan Sullivan If you have enough money you don't have a problem If you don't have enough time you won't have enough money You can’t make more money by spending more time doing the “what” People that have freedom of time generate more money
Thanks to Barry Barrett for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page, highlighting all books discussed in the podcast library HERE. Leaders are readers. Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP's HERE Find every podcast episode HERE. Every episode is segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch with the show:
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NAPA AutoCare’s PROimage program makes it easy for you to make the most of the NAPA brand. A PROimage upgrade lets you maintain your shop’s identity as a reliable, locally-owned business while letting your customers and potential customers know you’re partnering with NAPA, the most recognized and trusted name in the automotive aftermarket. AutoCare Centers that have completed a PROimage exterior upgrade enjoy an average 23 percent sales increase during the first year. You can also choose to go PROimage on the interior and transform your customer waiting area from merely utilitarian to warm and welcoming. You can even get a free look by visting www.NAPAAutoCare.com and clicking on the NAPA PROimage link under the NAPA PROimage tab. Of course, the AutoCare site is also the place to go to find out about all the advantages being part of the NAPA family has to offer.
Click to go to the Podcast on Remarkable Results Radio
If you want to become a successful independent auto repair shop, it’s essential that you have your sights on not only developing a long-term strategy for expanding your customer base but also pivoting in a way that has sustaining momentum.
The key to accomplishing this strategy is not by focusing on gigantic steps, but by achieving a steady stream of small efforts, which means using effective and trusted tools that are specifically designed for you as an auto repair shop owner. Fully utilizing your Google My Business (GMB) page is an efficient way to grow your business and we can tell you why you need to be using it to be competitive.
GMB is a free and completely verified online listing service that uses best practices for getting new customers in the door. Are you the type of business owner who uses an online marketing and branding strategy? If not, you should!
LEARN MORE about how to optimize your GMB page.
Hi all - first time poster here. I’m opening a quick repair / tune up shop in California soon so Im trying to get an idea of what the financials will look like. If I offer the below services when I open, what Product Sales percentages would be reasonable to expect? For example, is assuming ~30% of sales coming from Oil Changes too high? Too low?
Service Sales % Oil & Filter Change Transmission Fluid Flush Cooling System Flush Brake Fluid Flush Engine Air Filter Replacement Cabin Air Filter Replacement Wiper Blade Replacement Spark Plug Replacement Pre-purchase Car Inspection Car is not starting (inspection) Check Engine Light is on (inspection) Thank you for any feedback!
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By Joe Marconi
Not every shop pays flat rate; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.
As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money.
Overtime without high levels of production will eat into profits and if not controlled, with kill your business.
If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
By Joe Marconi
There is been a lot of discussion lately across this nation about raising the minimum wage. I am not going to debate that issue today, but I will go on the record that I believe it may affect our industry and how we pay out technicians.
With companies such as Wall Mart, McDonalds, Starbucks, Chipotles, and many more increasing wages, this will send a message to the workforce that wages need to be more in line with the needs of the worker.
Pay scales for techs are all over the map depending on where you are in the country. But, the age old issue is that we need to attract quality entry-level people to our industry. With chatter that entry-level positions in the fast food chains and other big box stores may exceed $10.00 per hour and even reach $15.00, we need to take a look at what we pay our people.
The bottom line here is truly the “bottom line”. Shop owners cannot simply raise wages unless the shop’s profits are enough to support the raise. Shop owners need to take a long hard look at their pay plans and ensure that you offer competitive wages, but importantly, offer a work environment and career paths that will attract quality people.