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Who is Your Real Competition?

Joe Marconi

By Joe Marconi
in Auto Shop Franchises

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  • 1 month later...
MaximumVelocity Rookie

MaximumVelocity

Posted
Posted

My market is a bit different, seeing as I run a Performance shop. I would like to say other performance shops in the area, but because their work is so shoddy, they are actually some of our best "indirect customers". Other shops work on cars, mess them up and they are brought to us to fix, lol.

FROGFINDER Rising Star

FROGFINDER

Posted
Posted

Dealers,auto parts stores that do things for free and the other guy that will do it cheaper. That being said They Dealers cannot compete with my warm smile and love for my customers. Remember 20% of your customers provide 80% of your business. Always look for and ask for for referrals. Thank and Reward those that refer you. B)

  • 2 weeks later...
Kevin S Rookie

Kevin S

Posted
Posted

@FrogFinder.

 

LOL. That's the spirit! Word of mouth has always and will always be the best form of advertising. People listen to those they trust more than others. I know I do.

Gary A Community Regular

Gary A

Posted
Posted
For me, my biggest competitor is the new car dealer.prices in an attempt to get cars in their bays, offering free oil changes and other maintenace services, are dirt cheap on some tire lines and are advertising to work on all makes and models. Plus, some dealers are open extended hours, including Sat and Sun!

 

They're doing a lot more than that! http://www.kare11.com/video/default.aspx?bctid=1223849949001

 

I'll post part 2 when its available. A customer told me that he saw this on TV today. This is part 1 from yesterday.

  • 2 weeks later...
TheTrustedMechanic Community Regular

TheTrustedMechanic

Posted
Posted

They may have misdiagnosed the problem or may be more expensive because of a higher labor rate, but all the extras they found were legit, because every car that comes in needs at least $300.00 worth of repairs don't ya know?

 

And I recall one of ASO's members quoting that. And if you listen to the so-called management guru's you will hear basically the same thing, the money is out there, you just have to find it, by doing "world class" inspections. And they will tell you that EVERY vehicle that comes in needs more work than you are selling, so you can make your average RO on every car, if you do a good enough inspection. If this is true, then why is the dealer wrong for recommending the work that was needed, the owner just didn't know? I am not super articulate so I maybe didn't express myself well regarding the BS we are all fed about how we leave so much money on the table so please forgive me.

 

My opinion is, and no one will ever change my mind,that each customer's car will need what it needs nothing more. You may find it all, you may find very little and leave other needs undiscovered, but that vehicle will only need certain repairs whether they are the totality of the customer's concerns or more than what it was brought in for. You may spend 15 minutes inspecting it or you may spend 3 hours inspecting the car. The simple truth is, if you follow established industry and ethical standards you will only find so much but they will all be legitimate. And no matter how much you want to meet your average RO on every car, nothing you can do or say will make that oil change need anything more than it does. If it only needs an oil change and a pair of wipers, nothing the management gurus quote you will make it need $300.00 worth of stuff to make your average RO (or what ever you ARO $$ is).

 

But that is what you will find as the underlying issue with the dealers and the big chains. They are managed by numbers, not by relationships and real people interacting. You have some bean counter in an office looking at reports saying they need more sales. So all of a sudden 3/32 on rear shoes is worn out and needs a brake job when the factory spec is 1/32 and new the shoes only measure 5/32. But because they need to make their numbers, all of a sudden your 50% left is now almost worn out. And I know of many independent repair shops that are run the same way. The numbers say, so it must be, now go make it so. And all of a sudden standards drop, guidelines widen and what was marginal is now impending catastrophe.

 

I am a terrible businessman because I don't believe in adjusting my standards or changing my procedures because I'm off my numbers. I do what I do, I treat my customers with the utmost integrity and honesty, some months are good, some are terrible, but I can sleep at night and I don't have to worry about what my customers might say in front of my children. I trust God will provide and so far my trust has not been broken. Could I be doing better, sure. Is it because of my poor business skills? Probably in part. Am I in peril of failure? Not based on historical trends but it's always possible. But when my days end and I stand before my maker, making my numbers won't matter much. How I treated my fellow man and how I acted in business towards those who placed their trust in me will matter far more than how much money I made. I will continue to try and adapt as times and conditions change, but it certainly won't be for such a fleeting, short-term reason as my numbers are too low and it's the third week of the month. Thank you for reading my diatribe. Time to go spend some quality time with my pillow.

FROGFINDER Rising Star

FROGFINDER

Posted
Posted

They may have misdiagnosed the problem or may be more expensive because of a higher labor rate, but all the extras they found were legit, because every car that comes in needs at least $300.00 worth of repairs don't ya know?

 

And I recall one of ASO's members quoting that. And if you listen to the so-called management guru's you will hear basically the same thing, the money is out there, you just have to find it, by doing "world class" inspections. And they will tell you that EVERY vehicle that comes in needs more work than you are selling, so you can make your average RO on every car, if you do a good enough inspection. If this is true, then why is the dealer wrong for recommending the work that was needed, the owner just didn't know? I am not super articulate so I maybe didn't express myself well regarding the BS we are all fed about how we leave so much money on the table so please forgive me.

 

My opinion is, and no one will ever change my mind,that each customer's car will need what it needs nothing more. You may find it all, you may find very little and leave other needs undiscovered, but that vehicle will only need certain repairs whether they are the totality of the customer's concerns or more than what it was brought in for. You may spend 15 minutes inspecting it or you may spend 3 hours inspecting the car. The simple truth is, if you follow established industry and ethical standards you will only find so much but they will all be legitimate. And no matter how much you want to meet your average RO on every car, nothing you can do or say will make that oil change need anything more than it does. If it only needs an oil change and a pair of wipers, nothing the management gurus quote you will make it need $300.00 worth of stuff to make your average RO (or what ever you ARO $$ is).

 

But that is what you will find as the underlying issue with the dealers and the big chains. They are managed by numbers, not by relationships and real people interacting. You have some bean counter in an office looking at reports saying they need more sales. So all of a sudden 3/32 on rear shoes is worn out and needs a brake job when the factory spec is 1/32 and new the shoes only measure 5/32. But because they need to make their numbers, all of a sudden your 50% left is now almost worn out. And I know of many independent repair shops that are run the same way. The numbers say, so it must be, now go make it so. And all of a sudden standards drop, guidelines widen and what was marginal is now impending catastrophe.

 

I am a terrible businessman because I don't believe in adjusting my standards or changing my procedures because I'm off my numbers. I do what I do, I treat my customers with the utmost integrity and honesty, some months are good, some are terrible, but I can sleep at night and I don't have to worry about what my customers might say in front of my children. I trust God will provide and so far my trust has not been broken. Could I be doing better, sure. Is it because of my poor business skills? Probably in part. Am I in peril of failure? Not based on historical trends but it's always possible. But when my days end and I stand before my maker, making my numbers won't matter much. How I treated my fellow man and how I acted in business towards those who placed their trust in me will matter far more than how much money I made. I will continue to try and adapt as times and conditions change, but it certainly won't be for such a fleeting, short-term reason as my numbers are too low and it's the third week of the month. Thank you for reading my diatribe. Time to go spend some quality time with my pillow.

 

 

In order of importance i place safety first,leaks second and maintenance third. Yes because of inflation ALMOST every car could use $300 worth of service/repairs. (in 1969 it was $30.00) but i let the customer decide. Tell people the truth and God will do the rest. B)

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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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