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MY Best Strategy To Running a Successful Shop

Joe Marconi

By Joe Marconi
in Running The Shop

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JimO Collaborator

JimO

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 I have always tried to hire staff members that are knowledgeable for the work that we routinely do and share my same values and principles. General internal medical doctors send patients to specialists when their patients illness or symptom exceeds their knowledge base or experience level. The sign of a good doctor is that he/she sends you to a specialist when needed as opposed to trying to solve a problem without the proper background, training and or equipment. Can I possibly afford to hire a staff and set up a shop that could profitably repair any problem on any vehicle? The answer is that I could try but I could not accomplish this profitably. Recognize you shops ability and comfort level and NEVER allow your pride stand in the way of sending a job to the dealer. In general I think that too many shop owners feel that sending a customer to the dealer for a repair is the same as losing a customer. I know from experience that a trip to the dealer for an odd or complex repair increase our customers allegiance to us. Let the dealer keep the vehicle for ten days, charge the owner $2,000 for the repair only to have the owner return the vehicle multiple times because the problem is not fixed. Let that frustration and expense be associated with the dealer as opposed to me. Lastly, run a clean, well organized shop which maximizes productivity. 

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Hands On Community Regular

Hands On

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I always try to keep a tech on hand that can repair anything. When I do not have one I step into that role myself to deal with the difficult ones. I have a dealer around d the corner from me that sends cars to me. The key to staying profitable is explaining the diag fees up front and billing for your time accordingly. 

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newport5 Enthusiast

newport5

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I agree with the right people, but also shop procedures. It's one thing to run a shop when it's slow; the owner or manager can "touch" everything. But when it gets busy and they can't get involved with everything in the shop, that's when procedures pay off.

That is, a happier staff and happier customers.

If something goes wrong often, create a procedure to lessen the stress.

Hands On Community Regular

Hands On

Posted
Posted
On 5/24/2021 at 2:42 PM, newport5 said:

I agree with the right people, but also shop procedures. It's one thing to run a shop when it's slow; the owner or manager can "touch" everything. But when it gets busy and they can't get involved with everything in the shop, that's when procedures pay off.

That is, a happier staff and happier customers.

If something goes wrong often, create a procedure to lessen the stress.

I would like to get procedures written for everything in my shop. It is something I really need to sit down and take the time to do.  I want to open a second location. Duplicating what made my first so successful is going to be crucial. If I am going to put my name on a second shop I want it to be held to the same standards as I hold my first.

  • 1 month later...
juanpablo4219 Contributor

juanpablo4219

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On 5/28/2021 at 11:01 AM, Hands On said:

I would like to get procedures written for everything in my shop. It is something I really need to sit down and take the time to do.  I want to open a second location. Duplicating what made my first so successful is going to be crucial. If I am going to put my name on a second shop I want it to be held to the same standards as I hold my first.

Policies and procedures makes a big difference and how a business is successful or a failure. They should be aligned with the mission statement of the business

When we have written procedures, more than likely it's because something happened and was resolved. Policies and procedures reduced the amount of headaches for a shop manager or an owner.

...and Yes, the policies and procedures will confirm the success of the second location along with having the right people.

rpllib Enthusiast

rpllib

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The right people performing consistently has certainly been a key to my ability to have a life, while owning my business. Some of that, I have to attribute to a healthy dose of good fortune, throughout my career, but especially early on(first 10 years). It was securing a single A tech (started as a C tech) and a service advisor , both with the right attitudes and right work ethic, and keeping them for 25 years plus, that has made the biggest difference for me. Others have come and gone, but having a core team through it all, made an immeasurable difference for me. This is especially noticeable when I compare myself to other owners, who were never able to establish that long term "core team", that still work in their business's every day, and face difficult transition options to the next generation of ownership for their store.  

Some may call "good fortune", hard work and smart work, which fits in their somewhere, but that has little to do with having healthy key employees that wish to remain living in the area of my store, for their entire career.

For owners early in their career, I would suggest finding the right attitudes and grow together. Then start your transition planning a minimum of 10 years in advance of your intended transition time frame.  This will give you time to find the next gen team for your business, and grow together with them to a successful future for all.  

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bantar Community Regular

bantar

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Posted
On 4/18/2021 at 1:48 PM, JimO said:

Recognize you shops ability and comfort level and NEVER allow your pride stand in the way of sending a job to the dealer. In general I think that too many shop owners feel that sending a customer to the dealer for a repair is the same as losing a customer. I know from experience that a trip to the dealer for an odd or complex repair increase our customers allegiance to us. Let the dealer keep the vehicle for ten days, charge the owner $2,000 for the repair only to have the owner return the vehicle multiple times because the problem is not fixed. Let that frustration and expense be associated with the dealer as opposed to me.

We certainly send people to the dealer for Warranty work, recalls and difficult jobs that need one-off specialty tools.   I've generally felt uneasy doing the latter, but I like how you framed this....  "Let that frustration and expense be associated with the dealer as opposed to me."   Thanks!

 

On 4/11/2021 at 4:53 PM, Joe Marconi said:

In the 4 decades as a shop owner, my number one way to have a smooth running shop is to surround yourself with the right people.

On 7/26/2021 at 5:43 AM, rpllib said:

The right people performing consistently has certainly been a key to my ability to have a life, while owning my business. Some of that, I have to attribute to a healthy dose of good fortune, throughout my career, but especially early on(first 10 years). It was securing a single A tech (started as a C tech) and a service advisor , both with the right attitudes and right work ethic, and keeping them for 25 years plus, that has made the biggest difference for me. Others have come and gone, but having a core team through it all, made an immeasurable difference for me. This is especially noticeable when I compare myself to other owners, who were never able to establish that long term "core team", that still work in their business's every day, and face difficult transition options to the next generation of ownership for their store. 

We're still a startup, wrapping up year 4 in a few more months.   As a manager, I've always believed that great people, hopefully people way smarter and more talented than me, are the key to success in any field.  I've been in shops with these such tenured folks and was trying to figure out what we should be doing to accomplish longevity.   I recently lost 2 apprentice techs to a huge pay raise elsewhere, but I didn't see value in keeping them for a few reasons.  They needed to earn their pay and studying new technologies, etc  instead of just wanting it all now.  However, my shop foremen is 3 years in and it was time to reward his hard work.   I bumped his pay by 40%.  His attitude and ethics are great, so I want him to stay for a long while more.  

I'm blessed to have found another L1 Master Tech, who worked 15 years at his last shop (which sold), and a new B/C tech (still deciding).     Since Techs are in short supply.  My advertising approach was to let the candidates know what's in it for them.   In the end, they need to like coming to work everyday and there are tons of miserable jobs out there competing for the same position.   We have a great team, good overall vibe, so we touted it.   The L1 tech starts on Monday.   

Well, big raises don't come for free.   To stay profitable, I bumped my labor rate by $20/hr yesterday.   As I learned here, labor rate is derived from operations costs, but only supported by reputation.   I don't expect this to matter much, now that we have built a good reputation.  I'm sure I'll lose a few folks, but that's ok.

There are a lot of things that I'm doing wrong (or could do better), but my focus on people is spot-on!  

This thread has been great!   Thanks to all who have contributed!

 

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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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