Quantcast
Jump to content

Local Dealer Lays Off 5 Techs

Joe Marconi
 Share

Recommended Posts

Gonzo Grand Master

Gonzo

Posted
Posted

My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

 

The brother of one of my techs works at a local Chevy dealer and told me the other day that they laid of 3 techs recently and will lay off another 2 today. This dealer is the only Chevy dealer left in its area and it's a sign of what the dealers cannot do, build strong relationships.

 

As dealer margins on new cars continue to shrink they will become more aggressive with building the service department. Dealers are already slashing prices, thinking that people want price only. Discounts will attract some people, but the effect it will have on industry pricing is what I fear.

 

Times are tough, but we must build for the future. We need to keep a close eye on the dealers. They are in a fight for their survival

 

 

 

 

 

  • 7 months later...
Guest

Guest

Posted
Posted

My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

FROGFINDER Rising Star

FROGFINDER

Posted
Posted

The gravy service's are being offered with the new car purchase in many cases. People being offered Free tires,oil changes,loaner cars, etc. It's war. We must Fight the good fight for a profitable niche so that our familes and employees can live a decent life.

B)

Spence Enthusiast

Spence

Posted
Posted

The gravy service's are being offered with the new car purchase in many cases. People being offered Free tires,oil changes,loaner cars, etc. It's war. We must Fight the good fight for a profitable niche so that our familes and employees can live a decent life.

B)

 

 

And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

Spence Enthusiast

Spence

Posted
Posted

Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

 

A lot of good comments you make Carl. It's applying those thoughts that I think would be good to explore. We'll see...

FROGFINDER Rising Star

FROGFINDER

Posted
Posted (edited)

And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

 

 

I am Second, Read My Bible Every day, Seek Wisdom , Service others as i would want to be served ,Give every customer something they can see for free. Give every person you meet a reason to smile and say hello next time they see you. Give a business card to everyone you meet thanking them for prayers and referrals,Early to bed ,early to rise makes one Healthy, Wealthy and Wise. No Drugs, No Booze. Happy Wife Happy Life, Go to Church often.Never Give Up. B)

Edited by FROGFINDER
  • Like 1

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • 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.

  • Similar Topics

    • Changing The Industry
      Episode 271 - Training New Techs & Building a Lasting Automotive Business With Charles Mitchell
      By Changing The Industry
      Episode 271 - Training New Techs & Building a Lasting Automotive Business With Charles Mitchell
    • Hands On
      "Service Up" Contacted me today saying one of their members wanted to use my shop
      By Hands On
      The emailed me a form to sign up to be a "service provider" The company Service Up will send me the client. They will bill the client and pay me after the repair. Look at some of the highlights from the terms:
       All transactions completed through the Platform are subject to a transaction fee ranging from 1.99% to 10% of the gross amount of each repair, with a baseline marketplace fee of 3.99% unless otherwise specified in a fleet-specific addendum.
      The marketplace fee applicable to a given repair is one of the following:
      • 3.99% (baseline) of the gross amount of all repairs completed through the Platform for all other customers, including customers to whom ServiceUp has referred you.
      • A rate specified in a fleet-specific addendum, which overrides the baseline, provided such rate falls within the 1.99%–10% range stated above.
      In addition to the marketplace fee, the following optional fee may apply:
      • QuickPay fee — an additional 3.50% of the gross amount of the repair if you elect to receive early payment (typically next business day). In the event a credit card is used by the customer for payment, the 3.50% QuickPay fee will be automatically applied.
      So, the fee they charge is any where from 1.99% to 17% if they pay credit card and you want funds next day
      Company reserves the right, in its sole discretion, to modify, increase, decrease, or otherwise change the transaction fees, early payment fees, or any other amounts payable under these Terms at any time. 
      But those fees could go up with no notice at all
      The Company shall remit payment to you net of any applicable transaction fees as promptly as practicable after, and contingent upon, Company’s receipt of payment from the applicable fleet customer for the services rendered by you. 
      They will pay you for the work you did, as long as they are able to get paid.
      You acknowledge and agree that the Company shall not be responsible for any delays or failure to pay that may be caused by a fleet customer.
      And if the customer fails to pay them, too bad.
      You further acknowledge and agree that (i) the Company may withhold funds in the event of any dispute between you and the Company pending the resolution of such dispute, (ii) you shall not collect any fees for services rendered hereunder directly from a fleet customer and shall receive payment for such services solely from the Company, (iii) in the event the Company determines that you have violated the foregoing subsection (ii), the Company shall have the right to charge a penalty of 10% of the gross value of the applicable services and may withhold that amount from future payments or debit your bank account to recover the penalty and any applicable fees for services.
      AND if they customer fails to pay them and you go directly after the customer yourself, tack on another 10%
      So basically, you fix our cars, and we maybe pay you after we take fees.
      Has anyone used this platform? What do you think?
    • Changing The Industry
      Episode 268 - Mastering Shop Management and Technician Relations in Today’s Auto Industry
      By Changing The Industry
      Episode 268 - Mastering Shop Management and Technician Relations in Today’s Auto Industry
    • carmcapriotto
      The Dealer Alternative Advantage in Today’s Auto Repair Industry [THA 482]
      By carmcapriotto
      Thanks to our Partners, NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode In this episode, host Carm Capriotto sits down with Larry and Kara Rose of Larry’s Automotive in Newburgh, Indiana, to celebrate their recognition as the NAPA 2025 Auto Care Center of the Year. Their story is more than an award; it’s a roadmap for building a sustainable, family-driven business through discipline, culture, and long-term vision.
      What You’ll Learn
      How Larry turned a driveway side hustle into a scalable business Why Kara’s systems and structure were key to growth A clear, intentional plan for family succession How strong culture outweighs individual talent The impact of daily training and continuous learning Why service advisors are critical to customer trust Growth strategies like “dealer alternative” positioning and coaching
      Building a lasting shop requires more than technical skill; it takes structure, culture, and a long-term vision for people and growth. Larry and Kara Rose, Larry’s Automotive, Newburgh, IN Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/ Subscribe on YouTube:https://www.youtube.com/carmcapriotto Follow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/ Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmasters Join Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976 Join our Insider List:https://remarkableresults.biz/insider All books mentioned on our podcasts:https://remarkableresults.biz/books Our Classroom page for personal or team learning:https://remarkableresults.biz/classroom Buy Me a Coffee:https://www.buymeacoffee.com/carm Special episode collections:https://remarkableresults.biz/collections
      The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion.https://remarkableresults.biz/ Diagnosing the Aftermarket A to Zwith Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.https://mattfanslow.captivate.fm/ Business by the Numberswith Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcastwith Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.https://autorepairmarketing.captivate.fm/ The Weekly Blitzwith Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.https://chriscotton.captivate.fm/ Speak Up! Effective Communicationwith Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.https://craigoneill.captivate.fm
          Click to go to the Podcast on Remarkable Results Radio
    • bigbob556677
      CCC One Api Question
      By bigbob556677
      Any other CCC one devs around?
      In CCC one for our group of body shops, I’m trying to perform an MT10720 request for an accounting session that my api user did not make (my user can view the report in the desktop app)
      but I’m getting the following back from the API
      <ErrorCode>303</ErrorCode>     <ErrorMessage>Accounting Export Session ID xxxxxx is not accessible for this user.</ErrorMessage> 
      The api can pull exports it creates, just not other users. Which doesn’t work well with our accounting flow. We need it to be able to pick up any export by any of our users.
      any idea what permissions /issues would be causing this?
      as an aside. Under the accounting permission, there’s an option for “Never allow export” or something similar. it’s not enabled, but that setting seems odd. Any idea what it does and is it perhaps connected to this issue?
      Our CCC Rep has been less than helpful, so I hope someone here would know a bit more about it than I do! haha


  • Joe Marconi

    Every shop owner tracks gross sales. But is that really the number you should be focused on?

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 1 34 views
    nptrb

    Mid-Year Reset: What Your Auto Shop’s Numbers Are Telling You

    By nptrb, in Automotive Management,

    0 comments 6 views
    Joe Marconi

    Marketing Strategies To Attract and Retain Your Ideal Customers

    By Joe Marconi, in Automotive Marketing,

    1 comment 7,923 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...