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Will Banner Programs Compete with the Big Boys?

Joe Marconi

By Joe Marconi
in Auto Parts Banner Programs

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Randy Apprentice

Randy

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It has it's advantages. I can pick up a phone and call corporate or I can call another owner and seek advice or help. It can be about management, sales, marketing, advertising, yellow pages, computer software, shop equipment, parts purchasing, etc. There are new programs and services offered. The business model is discussed and expanded, etc. Sometimes it is real helpful other times maybe not so much. The question now is is it worth 5% of gross sales. Our franchise agreement expires in 4 1/2 years.

Joe this is Randy this sounds like management success agian!!

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Randy Apprentice

Randy

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In what way?

[/quote

They are strictly manage by statics. This is the key to the whole program.They also were talking about the percentages on parts, labor, office, overhead, and what percentage your are really need to make (20%profit) This is a lot things you have be talking about all over this site.

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Randy Apprentice

Randy

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While I do agree that all businesses must track key numbers and recognize certain trends, I do not take that as the only criteria. I have been to many management training seminars and clinics and have taken countless home study courses.

 

Numbers are great, but real world is better. My philosophy is to look at each shop and find out what works for them. I really don’t think you can use a benchmark number in California and say it holds true in Rocky Mountain N.C .

 

Every business is different with different fixed expenses, goals, employee wages, labor rates, rents, etc. A shop owner needs to sit down with his/her accountant and find out that they need to turn a profit.

 

So, while we need to understand the numbers of the business, it’s our numbers that really count.

That is right every shop is different but they all have a break even and some shop owners do not have the business training.Nor do they have the advertising experience it takes to book a shop like it should. To run a business or does the shop run you????

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RickM Apprentice

RickM

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Too many shop owners have nothing more than a job and not a very good job because they don't charge enough. They work a lot of hours and sacrifice themselves and their families but wind up with little to show for it. They have no retirement plan, they have no buisness asset they can sell or pass on, their bodies are broken down, their equipment is worn out, their location is terrible, someone else owns the property, etc. They have never understood return on investment, opportunity cost, gross profit margins verus net profit, etc. The shops my dad use to take his cars to all closed when the owner died or retired. Not a one survived. They worked all of their lives and then got to the end of their life and find that they had nothing.

WOW!!!!!! It seems you have described me and my business to a T. I have owned my business for 5 1/2 years. I have worked for both Ford and Chrysler dealerships both as a tech and as a Service Manager. I have myself and one son working full time and two part time who are mostly lube and tire techs. I feel my biggest issue I can not seem to overcome is trying to work the front desk and the back both. I see daily that I run wide open all day, still do not accomplish much. Our shop stays super busy but we still dont seem to get ahead. I have been on both sides of the fence (shop and management) Any ideas, suggestions would be appreciated more than you know. Im gonna have to go spend a day in xrac's store>

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RickM Apprentice

RickM

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Rick, I thought you were going to stop by and visit us. My service manager and I will be happy to help you every way we can. However, one of the problems you have is location. People in rural areas want everything cheap.

I am coming up to see you xrac, just havent been able to get away. When I first opened, the Chrysler dealership I was at closed so I opened with a good cusstomer base. I opened running it a lot like I ran the Service Dept at the dealership. I opened as a Tech-Net shop. I used the Customer Survey Cards, Tech-Net Vehicle Inspection forms. I was even a National nominee for the Tech-Net dealer awards. However it seems as I get busier I let these things slide. I have been considering taking a few days to clean, rearrange and more or less reopen almost like a new shop. Maybe this would instill a more professional image. I have a good customer base of customers who are more interested in quality and customer care (just as Joe described) but seem I am being overwelmed by the bottom feeders. I could ramble on and on. Joe, xrac any thoughts, ideas, suggestions? I know I have the opportunity to corner the market in my community by being a more professional shop. Just seems I have trouble running the business instead of letting it run me. Our area has plenty of shade tree shops, but I think the quality customers are looking for quality repairs and honest caring service.

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    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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