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Stay Open Or Close? The Effects of the Coronavirus

Joe Marconi
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JimO Collaborator

JimO

Posted
Posted

My location is in Bergen County NJ about 25 minutes outside of NYC. Statistical reports released today show that NYC has the highest number of confirmed cases of Covid-19 in the USA. Our county has the highest number of confirmed cases in NJ. The severity of the situation in our area has prompted authorities to invoke travel curfews and close all non-essential businesses. Gas stations and vehicle repair are both considered essential services. Examples of non-essential services which are now closed are: malls, gyms, bars, barber shops, nail salons, clothing stores, movie theaters, wedding venues, department stores, gift stores, card stores, toy stores, furniture stores, shoe stores & most corporate offices. Pre-schools, public & private schools, colleges, churches, mosques, synagogues and public playgrounds are all closed. Eating in restaurants is not allowed but take out, curbside pick-up or delivery is allowed. The entire state and neighboring states are on a tight lockdown leaving most streets and highways quiet with little or no traffic. One of my techs is 67 and my brother/partner is 70. We decided it was best if they both stayed home because their age predisposes them to a possible worse outcome should they contract the virus. Both of these key people decided to stay home as bay work slowed down which worked out well. We have gas and repairs and our gas volume has dropped about 75%. I have several attendants that requested a leave of absence due to age, pre-existing medical conditions and also family pressure/fear. The loss of gas attendants came as gas volume eroded so that presented no problem. The closing of all non-essential businesses caused a self regulating slow down of both available business and available staff in a very timely manner. The authorities in our area are predicting that things will continue to get worse in the weeks ahead so I certainly could see the need to reduce hours or possibly close as less and less people venture outside their homes. I am having a meeting with my staff tomorrow and I will give them the opportunity to weigh in on matter. If my remaining staff members are willing to continue working and our customers continue to need us I plan to remain open. 

  • Like 2
Dr.Dave Enthusiast

Dr.Dave

Posted
Posted

I,m exactly not sure what to do. I have a small shop just getting by okley. Our town is mixed income but alot of lower income people , closing the resturants hit us hard ,alot of our customer are in the hospitality buisness or older, No one knows  heare in Maryland how long were going to be shut down or if its going to get wost. Thers only 3 of us .My son and another tech Ive known for 20 year or so , I have been thinking about telling the guys im laying them off so as to get unemployment while I wait to see what fedral and local goverment is going to do , I can keep working and my son can volenteer? Just to keep us open until aid happens , I'm only a week or so away from not making payroll. Any input good bad ?????? I'm feeling alone

JimO Collaborator

JimO

Posted
Posted

Road traffic is at an all time low as well as our gas volume. Two of my key full time gas attendants and one part time attendant told me today that they are unable to continue working because of health concerns. Totally understandable but my island staff has now been reduced from 10 employees last week to one full time and two part time employees as of today. Impossible to cover our normal gas island business hours from 6am-10pm so I needed to substantially reduce hours Monday thru Saturday and close completely on Sunday. Not my desire but I have no choice. Bays are very busy which is a bit strange considering what is going on around us.

Network Auto Body Newbie

Network Auto Body

Posted
Posted

Hi Joe!

Our Auto Body Shop in Valencia remains open as normal time (8-6 pm). We have less no. of workers due to Covid-19. And yeah it affects customers badly. We totally concern over social distancing and takes special care while working. We do have follow up customers via call when repair work is done. 

Our Shop Location:

Valencia - Network Auto Body INC

24854 Avenue Rockefeller
Valencia, CA, 91355

  • Like 1
alfredauto Experienced

alfredauto

Posted
Posted

During the 1918 Flu pandemic historians said it took people 3-4 years to get back to "normal". I am staying positive but I'm concerned.  I think if everyone goes back to work in a few months it will be a miracle. I'm thinking 12-18 months minimum. I'm hoping that there will be school in September but I'm not even too sure about that at this point. 

  • Like 2
juanpablo4219 Contributor

juanpablo4219

Posted
Posted

Good day..

I have submitted our application for the EIDL and for the PPP relief, thinking that this would help us...

Keep in mind, this process will take time but I am sure it is moving, any chance we have at it, it's better then nothing at all.

On the Payroll issue, our company does not have employees, we are independent contractors, so pay roll won't work for us, even though I record our pay checks, and at the end of the year we get a 1099.

...but any of these loans will certainly help for our fix expenses, rent, utilities and such.

In other words, we all qualify due to these Expenses. The PPP will help us to be and remain open until the new normal...

The sales that we might have until we get to the new normal, it will only help us just to get money to cover part of our fix expenses and take home.

Keep in mind, a lot of our customers, might be out of work.

This is my plan on the works,😁

Note: and here's my contributions to this commune and be known for, I learned this from my old Boss "Hope is not a Plan JP"

 

"HOPE IS NOT A PLAN"

 

  • Like 1
juanpablo4219 Contributor

juanpablo4219

Posted
Posted (edited)

"My banker just told me that 1099s don’t count because 1099’people are eligible to apply themselves. I had quite a bit of 1099 last year and it don’t count."

Exactly, I was never a Banker, but I am an accountant by profession and Business owner/Mechanic by trade.

therefore we should focus on how justify/paper trail to our expenses..

Tell your accountant to run your 2019 P&L and look at your expenses and go down the lines.. if u get the loan, that's whats going to cover along with payroll if any employees.

That will give you and idea. Also do the pay roll for those that are employees, just to get an idea and be familiar with what the banker is going to request.

if you keep receipts it's justifiable, Ex: lease agreement, utilities 

at the time, the Bankers are still getting familiar on the process itself.

I bank with Wells Fargo and my banker didn't know much. I knew more than him...

The process it's barely going to get in place/done by the government and then given to implement to the banks and then to us...

In my humble opinion, we might get the EIDL first than the PPP

We have to be Patience

 

JP

 


 

Edited by juanpablo4219
  • Like 2
Alex

Alex

Posted
Posted
On 4/5/2020 at 11:42 AM, JustTheBest said:

With all due respect, I think we'll be lucky if this only goes on for two more weeks. From what I'm hearing from various sources is that it could easily go on until the end of June.

We should hopefully see over the next 2-3 weeks if it peaks out or not. There needs to be a vaccine or "official" treatment for things to really calm down. 

  • Like 1

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
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      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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