Quantcast
Jump to content
    • You can post now and register later. Already registered? sign in now to post with your account.
    • ×   Pasted as rich text.   Paste as plain text instead

        Only 75 emoji are allowed.

      ×   Your link has been automatically embedded.   Display as a link instead

      ×   Your previous content has been restored.   Clear editor

      ×   You cannot paste images directly. Upload or insert images from URL.


      Once you submit your question, a new topic will be created for you in our forums. Our moderators may move your topic to a more suitable forum category if one exists. Members will see your topic and be able to respond to your question.

    • This will not be shown to other users.
Joe Marconi

COVID-19 Making Tough Management Decisions

Recommended Posts

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! 

 

  • Like 1

Share this post


Link to post
Share on other sites

We allow visitors to read the first post of each topic. To read this post, please login or register for a membership. 

  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Topics

    • By Joe Marconi
      A ride to the Mall with my wife today (yes, I went to the Mall, got a problem?) gave me assurance that things are really getting back to normal. The stores were full, the roads were packed and expect for the masks people are wearing, you would think it's just another ordinary summer weekend! 
       
    • By Joe Marconi
      I know none of us wants to hear this, but there will be a next crisis of some sort.  I have lived through many downturns in my 40 years in business, the COVID-19 was the worst.  But, out of every crisis comes lessons to be learned. So create your Crisis Plan today. 
      Start by understanding your numbers and knowing your breakeven.  Then add to your breakeven a percentage of profit you want to earn. Equally important is creating a cash reserve in a dedicated bank account that will be used only in a severe emergency.  Set your financial goals and stick to them! 
      Often overlook is your staff. Assemble the best team around you.  This is a crucial part to ensure your future business sucess.
      Lower your debt, get your credit rating up and maintain a good standing with all vendors.  Lastly, talk to your bank about a line of credit that can remain inactive until you need to use it.
      What other key things can we all share to help us through the next crisis?  
    • By Joe Marconi
      As part of our debt reduction, I revamped all of our usual marketing and advertising and put those dollars into customer service and social media. For example, we ramped up our shuttle pickup and delivery service, extended our hours of service, made sure we spend a lot of time with each customer and made sure we called as many customers as possible.  We also stepped up our meet and greet process and made sure will followed up with customer after the repair. Lastly, we increased our social media posts and increases ads and boosting. This has made a huge impact on our customer and already starting to pay dividends.
      What changes have you made to your marketing strategy since the Virus Crisis hit?
    • By AutoShopOwner
      DAYTONA BEACH, Fla. & RALEIGH, N.C.--(BUSINESS WIRE)-- As NASCAR Weekly Series sanctioned events begin to return at select tracks across North America, NASCAR and Advance Auto Parts (NYSE: AAP), a leading automotive aftermarket parts provider, today announced a multiyear official partnership, designating Advance as the series entitlement sponsor. As part of the agreement, Advance also becomes the “Official Auto Parts Retailer of NASCAR.”
      This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200610005058/en/
      "It's great to have Advance join us in welcoming the return of NASCAR-sanctioned grassroots racing," said Ben Kennedy, vice president, racing development, NASCAR. "Advance’s commitment to our Weekly Series will develop some of the brightest NASCAR talent across North America. Advance has a long history in racing, and we’re thrilled to see its expanded presence from the grassroots all the way through our national series.”
      The NASCAR Advance Auto Parts Weekly Series is one of the oldest series in NASCAR, where champions are crowned at NASCAR-sanctioned Home Tracks. The NASCAR Advance Auto Parts Weekly Series was paused in mid-March due to COVID-19 and recently returned with sanctioned events at select tracks beginning June 6.
      The series is run at nearly 60 NASCAR-sanctioned Home Tracks throughout the United States and Canada. NASCAR Home Tracks are a group of local short tracks sanctioned by NASCAR.
      “Drivers and race fans in North America have not been able to attend their local tracks due to COVID-19. We are excited to be partnering with NASCAR and the NASCAR Weekly Series to support tracks, drivers and fans as they resume live racing this year,” said Jason McDonell, Advance’s chief marketing officer. “We are committed to helping our customers advance in our stores, online and with this multiyear partnership with NASCAR. We are passionate about advancing local communities where we serve, and through this sponsorship we’ll be able to help grow racing at the grassroots level while supporting the next generation of champions.”
      Race fans can catch select NASCAR Advance Auto Parts Weekly Series races live and on-demand via TrackPass on NBC Sports Gold, the new streaming service from NASCAR and NBC Sports. NASCAR Advance Auto Parts Weekly Series races are part of the NASCAR Roots package for $2.99/month or $19.99/annually. The full TrackPass package, which includes NASCAR Roots, IMSA and American Flat Track events is available for $4.99/month or $44.99/year. TrackPass on NBC Sports Gold will be available on desktop web browsers and via the NBC Sports app on iOS and Android phones and tablets, Apple TV (Gen 4), Roku, Amazon Fire TV, AndroidTV, Xfinity X1, Xfinity Flex and Chromecast devices connected via HDMI.
      About NASCAR
      The National Association for Stock Car Auto Racing (NASCAR) is the sanctioning body for the No. 1 form of motorsports in the United States and owner of 16 of the nation’s major motorsports entertainment facilities. NASCAR consists of three national series (NASCAR Cup Series™, NASCAR Xfinity Series™, and NASCAR Gander RV & Outdoors Truck Series™), four regional series (ARCA Menards Series, ARCA Menards Series East & West and the NASCAR Whelen Modified Tour), one local grassroots series and three international series. The International Motor Sports Association™ (IMSA®) governs the IMSA WeatherTech SportsCar Championship™, the premier U.S. sports car series. NASCAR also owns Motor Racing Network, Racing Electronics, Americrown Service and ONE DAYTONA. Based in Daytona Beach, Florida, with offices in eight cities across North America, NASCAR sanctions more than visit www.NASCAR.com and www.IMSA.com, and follow NASCAR on Facebook, Twitter, Instagram, and Snapchat (‘NASCAR’).
      About Advance Auto Parts
      Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of April 18, 2020, Advance operated 4,843 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,258 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands. Additional information about Advance, including employment opportunities, customer services and online shopping for parts, accessories, and other offerings can be found at www.AdvanceAutoParts.com.

      View source version on businesswire.com: https://www.businesswire.com/news/home/20200610005058/en/
      Investor Relations:
      Elisabeth Eisleben
      T: (919) 227-5466
      E: [email protected]
      Media Relations:
      Darryl Carr
      T: (984) 389-7207
      E: [email protected]
      Source: Advance Auto Parts, Inc.
    • By Joe Marconi
      Sometimes I feel like I’m alone on a deserted island. I charge for diagnostic analysis. Why? Because I know what cost is to buy the tools, equipment, information systems, training and pay a technician to professionally and accurately diagnosis a check engine light, air bag, ABS or any other complicated problem. But, I feel a lot of shops are willing to give this up in hopes to get the work. In my opinion all they are doing is digging themselves in a hole.
       
      And, I have heard all the reasons:
      “If the customer gives me the job, I waive the analysis”.
      “I package the analysis into the repair, so the customer does not see the diag charges”
      “I will lose customers if I charge analysis”
      And the best yet: “It only took me 10 minutes to diag the O2 sensor, so I can’t charge diag labor”.
       
      Waiving the analysis is the same as a doctor waiving the x-rays and blood tests. They don’t do it, we should not either. I will also challenge those who “package” the analysis into the repair. You mean to tell me that after taking 1 hour to find a faulty mass air sensor, you will add the 1 hour to the 5 minutes it takes to install a new mass air? Come on, we all know the truth.
       
      And let’s address the 10 minutes it took to find the failed O2 sensor. Did it really take 10 minutes? NO, it took years of training, years of experience, the investment in the right equipment and the investment in the right information systems. Why we sometimes diminish what we are truly worth is amazing. No other profession does that.
       
      Sorry for being so tough on this topic, but business is hard enough these days and people question everything. If shops don’t realize what they are giving up, it makes it bad for all of us.
       
      Please tell me what you think. Agree? Disagree? Or any other thoughts....


  • Similar Tagged Content

    • By Joe Marconi
      A ride to the Mall with my wife today (yes, I went to the Mall, got a problem?) gave me assurance that things are really getting back to normal. The stores were full, the roads were packed and expect for the masks people are wearing, you would think it's just another ordinary summer weekend! 
       
    • By Elite Worldwide Inc.
      Although COVID-19 has brought our industry plenty of challenges, it has also taught us a valuable lesson. Many of us have seen a drop in our car counts, but have simultaneously witnessed an increase in our AROs and happier customers. These slower days give us the opportunity to spend more time with each and every individual and vehicle that enters our shop, yielding positive results for both our business and our customers.
      From this point forward, in order to maximize every single opportunity at your shop, I recommend you implement the following three items.
      First, I recommend you hold a meeting with your employees as soon as possible and make sure they know that each vehicle that comes in should be properly, professionally and ethically inspected. Make sure they also know that everything should be documented.
      Next, it’s important that every single customer that enters your facility gets full disclosure on what is going on with their vehicle. This includes what needs to be done now, what should be done in the near future, and what may need to happen in the long run.
      Lastly, make sure that everyone in your company believes in all of your products and services. When a tech or advisor is on the phone with a customer, they must truly believe in their recommendations in order to really get through to that customer. The customer will be far more likely to listen if they know the recommendations are coming from a place of honesty and care.
      If you can implement the three items above, not only will you see sales go up, but you will have happier customers as well. I can assure you that the more time you spend on each vehicle and with each customer, the more successful you will be. 
       
      For additional help making the most of your shop’s opportunities, visit the Elite website or call 800-204-3548.

      View full article
    • By Joe Marconi
      Whatever your normal advertising and marketing strategy is, now is the time to tone down call to action advertising and promotions and communicate your brand to your community. In times of crisis, it’s crucial that your customers and community know what you stand for and there to help if at all possible.
      Contact your customers by phone, email, text, etc.  Not to sell them anything, but to ask if they are ok. Let them know that you are thinking about them.  Connect with them emotionally, like a friend or family member would.
      For many shops across this great nation, there will be significant sales drops.  With the new financial package, there will be help on the way. Contact your accountant, payroll company, financial advisor, bank rep and find out about the help that is coming your way.
      We will get through this together.

  • AutoShopOwner Sponsors



×
×
  • Create New...