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Is the Price of Gas Affecting Sales?

Joe Marconi
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Transmission Repair Experienced

Transmission Repair

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While gas prices are up considerably, I don't think it's really affecting automotive repair very much.  Maintenance, perhaps, but G/R no.

MY RANT:  What's affecting the automotive repair industry the most is general INFLATION.  I created the attached image in Illustrator yesterday for a Facebook post I made on my FB page.  I think it puts things into perspective.  If gas was the only thing going up, most people wouldn't complain.  -HOWEVER- Combine gas prices with severe inflation of groceries, housing (rent), and most everything else, it all seems a bit much.  IMHO, I think the reason people complain about gas the most is because we're being lied to by Biden and his administration.  Putin isn't the cause of high gas prices.  You don't see people complaining about groceries as much as gas because we aren't being lied to about groceries.  Two weeks ago in just 2 days, the price of crude dropped from $130/barrel to under $100/barrel.  That's a 24% price drop.  What did the price of gas do?  We'll see.

How does our federal government calculate the inflation rate?  Seems more like hocus-pocus than reality.  The numbers they are putting out is not even close to what sort of increase I'm actually spending.  The federal government purports inflation is under 7%.  Total unadulterated, 100% uncut bullshit.  I wish it were only that amount.  Would you agree it's a lot more than 7%?  My wife and I are fully retired and on a fixed income but are still able to save $2K/mo.  At the rate our country is going, inflation is going to slowly eat into that.  Perhaps I shouldn't complain.  I know shop owners in their 80s who still work full-time in their shops simply because they can't afford to retire.  I read about retirees being forced to make a choice between medicine and food.  There's retirees homeless in the streets.  We have more people homeless today than in any other time in the history of our country.

My wife calculated that if we never made a penny off of our mutual fund investments, at our current level, we could live to 91 before running out of money.  Looking at the government aging & death tables, my wife and I are predicted at our ages to live to 85 years old.  I predict she will WAY out live me because she has never drank, smoked, or done substances in her life; not once.

RANT OVER.

Gas Prices.png

 

  • 3 weeks later...
tirengolf Collaborator

tirengolf

Posted
Posted

Repair is good, Tire sales are in the tank. My Michelin rep came by this morning and verified this. I thought it was just me.

  • Like 1
Transmission Repair Experienced

Transmission Repair

Posted
Posted
On 3/21/2022 at 12:15 PM, Joe Marconi said:

Thugs?  Too strong? My religion forbids me from saying a few other choice words. I think you make very good points.  For many shops across the country, they are doing just fine, but I have to think that the increases in prices and gas has to be affecting the average consumer. We do need change, I just hope it comes soon enough. 

As Larry Kudlow says, "The cavalry is coming." talking about the November elections.  I'm an open minded voter who votes for the best person for the job.  However, somehow, I end up voting Republican 90% of the time.  Here's the GOOD NEWS... There are currently 31 House Democrats who are not going to run for office come the mid-term elections in November.  Most are retiring, but not all.  I think that will be a lot better for our country.  Give a 30-second listen to this: Biden’s sinking popularity points to GOP sweep in fall

I find it odd how we can elect a new president (Trump's full of it, the vote wasn't "stolen") to office and everything go to hell in a handbasket so quickly and affect our industry so much.  I still stay in close contact with a couple of local transmission shops and they both tell me business is down.  The two shops and myself are in the Salt Lake City market area.

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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
         0 comments
      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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