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Showing content with the highest reputation on 03/24/2020 in all areas

  1. 1 point
    My Thoughts on the Coronavirus and Business In my 40 years in business, I have lived through many economic downturns. From the stock market crash of the late 1980’s, the housing bust of 1990’s, the tragic event of 911 and the great recession of 2008. This is different. The fears and the realities of the coronavirus has affected us all. And some areas of the country have been hit harder than others. In all other situations, I fought like hell to make a difference and beat the circumstances. Again, this is different. I am not an alarmist, not a defeatist and I do not get sucked into the sensationalism of the press. Just today, I heard a sports announcer on a talk radio show advise her listeners to stay at home, don’t go to work, don’t go to the movies, don’t go out of the house and isolate yourself from other people. Is this rational? I can’t do that. I am an automotive shop owner. What I do matters to my family and the community. I…WE….need to be there to ensure that the doctors, nurses, police, public officials and everyone else has their transportation ready to perform. Stay home? Us? Is that an option? But again…this is different. This afternoon, I was getting ready to go to Church; 4:00pm Mass, when my wife got an alert that Church as been canceled. Wait; let me say this again real slow…Church… has…. been…canceled. Fear has a way of eating at the fabric of our rational being. I fully understand the reality of what is happening. This virus will take people’s lives. But, do we run away in the face of a threat? Is this who we are? What do we do? Close our businesses for a few weeks? A month or two? How many of us can afford that? We all know the answer to that question. As automotive shop owners, technicians, service advisors and all the other valuable employees of this great profession, we need to take the proper precautions. Do all you can to protect yourself and your family. If you decide to continue to operate your shop during this challenging time, have a meeting with all your employees. Take the proper steps to protect yourself, your employees and your customers. Business may get ugly for some. My company has taken a 40% drop in business the past three weeks, directly contributed to the coronavirus outbreak. I write this to tell you how I feel; not to decide for anyone what to do. I will not force my employees to do anything they feel would put themselves or their families in harm’s way. For me, I intend to fight. I will take care of myself, take care of my family. But there are too many people depending on what I do, and way too may years behind me to hunker down and wait this out. Stay safe, stay healthy. Take this situation serious. But please don’t give up. We will prevail and we will get through this together. We are the hardest working, most resilient, toughest people on the planet. Let’s show the world and this virus who we are!
  2. 1 point
    Read my negative fb or Google reviews they are all because I charged someone to "just look" at their car. That's why people are shy to do it. I charge for diagnosis. My doctor charges me for it. My dentist charges me for it. My electrician charges me for it. Every professional on earth charges for their expertise. I do the same. Toughen up folks.
  3. 1 point
    Your lead tech is not performing up to expectations. Shop production is slipping and you’re not sure why. You hear through the grapevine that some of your employees are wondering when they will get their next pay raise. After a few agonizing weeks of pouring through reports, you make the decision to give across-the-board pay raises. Almost immediately, you see a boost in production. The shop is more upbeat and all is well. Your decision appears to be correct. Three months later, your shop is once again struggling to meet its sales and production goals—and morale has slipped, too. I have seen this scenario all too often. And, while there are times that we need to give pay raises, if your shop is struggling to meet its sales and production goals, increasing pay to improve business is not the answer. The reality is you have deeper issues. Let’s address employee compensation first. You must pay people a competitive wage with the opportunity to earn more. There should be incentives in place to reward your employees for reaching their personal and team goals. And, there needs to be a process in place where your employees understand how and when they will get a pay raise. However, in terms of long-term company growth, a focus on pay alone will never be the formula for success. In other words, throwing money at a problem is a short-term fix. It’s putting a Ban-Aid on a more serious injury that requires much more care and attention. About 10 years ago, Mercedes-Benz was struggling with its customer experience at many of its dealerships. In response to this, Mercedes decided to increase pay incentives, implement new policies and training programs. No improvements were realized. Mercedes top executives could not understand why customer service was not up to company expectations. After all, this is Mercedes, a car company that represents quality and sophistication. Why were their dealer employees so indifferent? A senior leader at Mercedes recognized the problem and stated, “Pride in the brand was not quite as strong as we thought, the level of engagement with work was not as deep as we thought.” Mercedes finally realized that until the employees at Mercedes genuinely cared more, no amount of money, policies or training would make a difference. Understanding the need to get front-line people more engaged and take pride in their work, Mercedes began to invite its dealer employees to spend 48 hours with the model of their choice. To experience not only the amazing performance and mechanical attributes of the vehicle, but also that they can turn heads as they drive through their neighborhoods or when they drive into the little league parking lot. Mercedes also built its Brand Immersion Center in Tuscaloosa, Ala., in 2014, where hundreds of employees go each year to spend time getting to know how the cars are built, gain a deeper understanding of the brand, the history of Mercedes and experience the legacy of the company. According to Philippa Green, brand immersion trainer for Mercedes-Benz, “The ultimate goal is to engage their hearts and minds around the brand. We’re teaching them about our legacy.” As business owners, we track KPIs, set goals, work on marketing and refine our business plans. We also ensure that we provide our employees with adequate training and a well-equipped environment. These are the essentials of our business. However, we must never overlook the importance of your employees taking pride in their work. And, pride comes from employees knowing who you are, what you stand for, what you do for your community and for the industry. Giving people pay raises can motivate them. But the bounce you get from that is short-lived. Once people have gotten over the excitement of the raise and made the financial adjustments to their lifestyles, the raise is long forgotten. If there are no other intrinsic motivators, then shop morale, production and employee engagement will fall right back to where it was before the raise. Anyone who knows me and has read my articles, knows how much I preach about leadership. The theme of this article also has its roots in effective leadership. You, the leader of your company, have the power to transform the people around you. Focus on the person, not the position. Recognize when your employees do things that are from the heart. Promote your company’s brand, vision and legacy. These are the keys to a long-lasting company. This is what will improve morale, not a pay raise. This story was originally published by Joe Marconi in Ratchet+Wrench on March 1st, 2020
  4. 1 point
    We hear all too often that the "other shop they went to, does not charge for diagnostic testing" or "waives the diag if the customer agrees to do the work" This may have happened years ago, but I really can't see this has common any more. Shop owners know the costs of complicated diagnostic testing. And shop owners know that 2 hours of testing has no part profit, so in order to maintain your hourly gross profit, you need to charge. And depending on your labor structure, many shops use a multi-tier labor rate to offset those jobs that have little to no parts for a particular job.
  5. 1 point
    When customers balk at a diagnostic fee, I just tell them the diagnosis is usually the most time consuming part of the job. I use the analogy that if the car was brought in for an evap leak and I spend the time to smoke test it and find a leaking gas cap, I still need to be paid for the diagnostic time not just the time it takes to replace the gas cap. I charge an hour for driveability and electrical diagnosis($99.00) and a half hour for other stuff. If someone doesn't want to pay the fee, they're probably going to be a pain in the butt about the repair cost as well.


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