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No matter how things change, service work remains key

xrac

By xrac
in General Automotive Discussion

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Joe Marconi Grand Master

Joe Marconi

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I have been reading another great piece by somebody by the name of Joe! Ha! Joe, this is a good one that I wanted to be sure that everyone saw. As some of you know I am president of the Joe Marconi fan club! :D

 

 

 

However, this article has sparked some thoughts that I want to talk about namely how we have to change to remain competitive. My shop has been open for 11+ years and we had never invested in any Eurpoean diagnostic software or equipment. Last week I broke down and made my first investment for the European software and connectors for our Snap-On Modius. It wasn't a huge expenditure (about $1100) but it was a first. Why did I do this? It use to be that the Eurpoean cars we saw (BMWs, Mercedes, VW, Volvos, Landrovers, etc.) were few and far between. Remember that Evansville is in the middle of nowhere and we do not have an Infiniti, Landrover, or Acura dealer. However, as our business and reputation has grown we are seeing more and more Eurpoeans and we have been working on a lot of VWs lately. I realized that if we are going to be servicing that customer base I have to become equipped to do it.

 

On the subject of change the two newest Car-x Franchisee stores that opened in Indianapolis have been built as 8 full service bay shops with three additional quick lube bays attached. These stores are doing $1,000,000 in their first year. The area manager there says they build the quick lube bays, run cheap oil changes to build a database, and then use direct mail to market their other services and it works. This last month the store in the whole Car-x system with the highest sales was a store in Champaign, IL, which has been open less than one year and it is built on some type of tire store model. Remember that Car-x started as muffler shops. My point is that change is a fact of life and something we all have to be open to. If hybrid technology becomes popular we are all going to be forced to look at our business model.

 

The business model you speak of with the new Car-X stores is the same model I used for my expansion. My traditional 6 bay "repair shop" performs all the heavy repairs and diagnostic work. It's where the traditional "meat & potatoes work" is done. But, in today's fast past world and changing demographics; I saw an opportunity that I was not capitalizing on. My new building (a standalone 4-bay facility) is primarily for walk in trade, while you wait service, tires, alignment and other basic service work. The model works and our car counts and sales have greatly improved.

 

The point is, and I know you realize this, is that we DO need to change with the times. We cannot conduct business the way we did 15 years ago.

 

Smith Corona, the great typewriter company, viewed itself as a typewriter company and could not adapt to change. Instead of making the bridge into the computer age, it stuck by its traditional product and went belly up in the early 1990's.

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  • Have you checked out Joe's Latest Blog?

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      Raising Labor Rates and Prices May Not Achieve Profitability
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      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
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      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.

  • Upcoming Events

    • Amplify 2023 - Auto Repair Virtual Conference Essentials of Growth
      March 24, 2023 01:00 PM Until 09:00 PM
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      Hi all,
      AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
      You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
      Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
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      The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
      You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
      #AutoLeapAmplify23

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