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Gain Commitment From Your Team: Lead From the Front [AW 182]


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Tom Palermo discusses the importance of continuous training for technicians, the increasing average age of vehicles, and his strategies for fostering a positive company culture and building strong customer relationships. He also discusses the challenges and opportunities presented by electric vehicles and the importance of hands-on training.

Tom Palermo, Preferred Automotive Specialists in Philadelphia, PA. Tom's previous episodes HERE

Show Notes:

  • The current state of business at Palermo's (00:03:26) Tom Palermo discusses how busy his shop is and becoming the go-to shop for diagnostics.
  • The increase in the average age of vehicles (00:04:07) Tom Palermo mentions that the average age of vehicles is still increasing due to inflationary times, as people are choosing to hold onto their cars longer to avoid car payments and increased insurance costs.
  • Getting commitment from the team (00:05:08) Tom Palermo shares his strategy of leading from the front and actively participating in his own business to motivate his employees and create a family-like culture in the shop.
  • Training and expanding services (00:06:28) Discussion on the benefits of cross-training technicians and expanding services to become a one-stop shop for customers.
  • Creating a culture of learning and teamwork (00:08:03) Exploration of the importance of building a team environment, promoting culture, and providing training opportunities for technicians.
  • Concerns and opportunities with electric vehicles (00:10:23) Conversation about consumer concerns and technician concerns regarding electric vehicles, as well as the need for businesses to adapt to the evolving automotive industry.
  • The importance of continuous training (00:13:13) Discussion on the evolution of the automotive industry and the need for technicians and shop owners to continuously train and adapt to new technologies.
  • The challenges of hands-on training (00:16:02) the need for hands-on training in the automotive industry and the effectiveness of learning through practical experience.
  • Monitoring productivity and customer loyalty (00:18:16) Explanation of how monitoring productivity can be used as a training tool and the shift in customer behavior, from seeking diagnoses and getting repairs elsewhere to valuing a good shop.
  • The value of relationships and trust (00:19:27) The importance of building relationships with customers and gaining their trust in the automotive industry.
  • Customer relationship management strategies (00:20:28) Discussion about the various customer relationship management techniques used, including email blasts, follow-up phone calls, and special promotions for valued customers.
  • Training for service advisors (00:25:04) The need for more training for service advisors in the automotive industry and the importance of standardized approaches to dealing with customers.
  • Retention rate and treating employees like family (00:26:29) Conversation about the high retention rate of employees at Palermo's and their approach of treating employees like family.
  • Creating a better work environment for technicians (00:28:34) Importance of providing a well-lit, air-conditioned, and well-equipped shop to improve technician productivity, safety, and job satisfaction.

Thanks to our Partner, Dorman Products.

Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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