By Joe Marconi
Sometimes I feel like I’m alone on a deserted island. I charge for diagnostic analysis. Why? Because I know what cost is to buy the tools, equipment, information systems, training and pay a technician to professionally and accurately diagnosis a check engine light, air bag, ABS or any other complicated problem. But, I feel a lot of shops are willing to give this up in hopes to get the work. In my opinion all they are doing is digging themselves in a hole.
And, I have heard all the reasons:
“If the customer gives me the job, I waive the analysis”.
“I package the analysis into the repair, so the customer does not see the diag charges”
“I will lose customers if I charge analysis”
And the best yet: “It only took me 10 minutes to diag the O2 sensor, so I can’t charge diag labor”.
Waiving the analysis is the same as a doctor waiving the x-rays and blood tests. They don’t do it, we should not either. I will also challenge those who “package” the analysis into the repair. You mean to tell me that after taking 1 hour to find a faulty mass air sensor, you will add the 1 hour to the 5 minutes it takes to install a new mass air? Come on, we all know the truth.
And let’s address the 10 minutes it took to find the failed O2 sensor. Did it really take 10 minutes? NO, it took years of training, years of experience, the investment in the right equipment and the investment in the right information systems. Why we sometimes diminish what we are truly worth is amazing. No other profession does that.
Sorry for being so tough on this topic, but business is hard enough these days and people question everything. If shops don’t realize what they are giving up, it makes it bad for all of us.
Please tell me what you think. Agree? Disagree? Or any other thoughts....
It's that time of year again folks! VisionKC is coming up right around the corner.
And that means that the annual ASOG dinner is ramping up its registration efforts!
The dinner is open for all to attend, regardless of membership to ASOG and all proceeds go to the ASOG scholarship efforts!
ASOG will bring another lucky shop owner with 3 years or less in business to VisionKC. This will be the 3rd scholarship the group has provided, but it certainly won't be the last. We look forward to providing scholarships to events all over the country, and working to ensure scholarship winners are given the tools and paths needed to succeed.
Jacob and Lacey Bunyard were last year's winners - when we met Jacob and Lacey things were tough! It wasn't just the business that was suffering, through the suffering of the business, Jacob and Lacey's family...their children were paying the true price.
Today, Jacob and Lacey, through the connections and offerings presented at VisionKC have turned the business from a significant liability into a resource which provides a good life for their family.
We've also offered scholarships to the greatest automotive show in the south east, ASTE by The Independent Garage Owners Of NC and seen tremendous growth of that shop owner as well.
We ask that you, as shop owners, and part of the automotive family join us for dinner. We ask that you support our efforts to improve this industry, even if it's one shop at a time. And most of all, we ask that you join us in continuing to bring unity to shops nationwide, to continue to share a vision of something better for this industry - a higher potential, a better life for owners who haven't been given the opportunity to see there's a better, more profitable way.
Isn't it time that we stop seeing each other as competition, but as allies?
Please join us for dinner if you are able.
Information about the dinner is available at
By Joe Marconi
Not every shop pays flat rate; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.
As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money.
Overtime without high levels of production will eat into profits and if not controlled, with kill your business.
If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
By Joe Marconi
After 39 years in business, it's time to get serious about my exit plan. While I don't think I will ever truly retire, I do think it's time to plan the next chapter in my life. I would like to hear from shop owners out there in the same situation. What are your plans? Are you selling your repair shop? Do you have a succession plan? And are you thinking about a different line of work to keep you busy?
Who likes tax deductible food? 🙋♂🙋♂ If you want to make sure you are deducting all of your business meals. Please read the entire article.