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Joe Marconi

Management
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Blog Entries posted by Joe Marconi

  3. Joe Marconi

    5 Reasons for Low Shop Production

    By Joe Marconi,


    Management
    Typically, when productivity suffers, the shop owner or manager directs their attention to the technicians. Are they doing all they can do to maintain high billable hours? Are they as efficient as they can be?  Is there time being wasted throughout the technician’s day? 
    All these reasons factor into production problems, but before we point fingers at the technicians, let’s consider a few other factors.
    Are estimates being written properly? Are labor testing and inspections being billed out correctly? Are you charging enough for testing and inspecting, especially for highly specialized electrical, on-board computer issues, and other complex drivability work?  Is there a clear workflow process everyone follows that details every step from the write-up to vehicle delivery? Do you track comebacks, and is that affecting production?  Is the shop layout not conducive to high production? For example, is it unorganized, where shop tools, technical information, and equipment are not easily accessible to every technician?  Are you charging the correct labor rate and allowing for variables such as rust, vehicle age, and the fact that most labor guides are wrong? Also, is there effective communication between the tech and the service advisor to ensure that extra labor time is accounted for and billed to the customer? These are a few of the top reasons for low productivity problems. There are others, but the main point is to look at the entire operation. Productivity is a team effort.  Blaming the techs or other staff members does not get to the root cause in most cases.
    Maintaining adequate production levels is the responsibility of management to create the processes that will lead to high production while holding everyone accountable. 
  4. Joe Marconi
    A Customer Teaches Me About Life
     
    I will always remember the first day I met Mort Rubenstein. He was in his early 70’s at the time, about 18 years ago and used a walker to get around. He told me that he preferred to wait with his car while it was serviced and that he didn’t mind waiting, no matter how long it took.
     
    I remember as he was leaving my office for the first time, I offered to help him to his car and tried to hold the door open for him. Since he used a walker, I felt I was doing the right thing. He sternly told me that he did not need any help. For the next few visits after that I would always offer to help him and he would emphatically tell me, “Joe, I appreciate the offer, but believe me, I don’t need the help”. Then, he turned to me and said, “Joe, let me tell you a little about me. I grew up during the great depression of the 1930's and lived though those tough times. When the Japanese bombed Pearl Harbor in 1941 I enlisted in the Army. I fought my way through North Africa, landed on the beach of Normandy during the invasion of France and fought my way through many battles in Europe during World War II. I survived the war without even getting a scratch. Two years after I got out of the Army in 1947, life through me a curve ball; I contracted Polio. That’s why I use a walker today. I have accepted it, and will not let it defeat me. So Joe, when I tell you I don’t need any help, that’s the reason why”.
     
    I didn’t know what to say. I remained silent as I watched him walk to his car.
     
    Over the years, Mort became more than a customer, he became a friend. When he brought his car in for service, we would talk about the War, about business and about life. As his polio progressed he was confined to a wheel chair. But that never stopped him. He purchased a van with a special seat and ramp and would get in and out of the van by himself with the aid of a motorized wheel chair. He was in his late 80’s, still driving. Mort never gave up and lived life to the fullest and was always positive. As the years past I knew, from talking with his wife, that the polio was getting the best of him, but he never showed it. He was always upbeat and smiled.
     
    Mort died recently. He was 91 years old. Some would say that Mort lived a tough life. Not me. Mort was part of that generation that never asked for anything. Mort, like so many from that era, was willing to go to war for our country and ready to make the ultimate sacrifice. They didn’t have much but were happy and thankful with what they had. They endured the hardships of the great depression but never complained. That’s why they are called the Greatest Generation.
     
    I will always remember Mort and what he taught me about life. How to live life to its fullest, how to remain positive and get the most from the cards you are dealt with. I only hope that I can be as strong as Mort was if life happens to throw me a curve ball.
  11. Joe Marconi

    Are Your Employee Pay Plans Legal?

    By Joe Marconi,


    Employee Retention
    As an auto shop owner and a business development coach, I know from experience that there are countless ways to create employee pay plans. From hourly, flat-rate, salary, incentive-based, performance-based, team bonuses, profit sharing, on and on and on. However, the question is: are your pay plans legal? 
    To complicate matters, overtime and minimum wage laws differ from state to state and may vary from county to county within a state.  Wage and hour laws are ever-changing too.  
    Here’s my advice to shop owners: Consider hiring a wage and hour labor attorney or retain a human resource company specializing in wage and hour regulations to review your employee pay plans. You cannot leave it to chance. All it takes is one disgruntle employee to make a claim against you, and your life could be hell.  You should also have your pay plans reviewed every few years and any time you change the details of a plan.
    Effective pay plans can considerably benefit your auto repair shop and incentivize your employees to reach their goals and company goals. In addition, great pay plans can help retain valuable employees.
    Protect yourself, your business, and your employees – Ensure your employee pay plans are compliant with federal, state, and local laws and regulations.
  12. Joe Marconi

    Are Your Employees Looking to Leave You?

    By Joe Marconi,


    Employee Retention
    There’s a lot of talk these days about finding quality employees. Creating a continuous recruiting process to find and hire quality people is essential for your overall success. However, shop owners also need to consider their existing employees and create a work environment where people feel wanted. The truth is you cannot afford to lose the people you have now, especially if those employees are superstars.  Another reality is that with so many shops looking to hire, they may be trying to recruit and hire your employees!      
    To attract and retain employees, shop owners must create an amazing workplace experience. A great pay plan must also be a factor, along with benefits, but it’s not the entire reason why people stay employed with you. The truth is, people don’t quit businesses, they quit their boss or their manager.
    This is not to say that a pay plan is unimportant. It is, especially these days. However, to get your employees truly engaged and want to continue working at your company requires having a workplace environment where people feel appreciated for the work they do, are encouraged, and have a feeling of shared purpose.  This will help anchor your employees to your business and help prevent them from looking over the fence for greener grass.
    Lastly, get more involved with your employees on a personal level. Find out what matters to them.  Find out what their goals are.  When you align employee goals with company goals, you are well on your way to having a winning team. You will also create a strong bond with your employees. This strategy will help you retain employees, with a stronger and more profitable business in the long term.
     
  14. Joe Marconi
    For automotive shop owners, tax planning is an ongoing process. You should meet with your accountant at least once a quarter to review your financials, expenses, major purchases, cash reserve, payroll, etc., and make needed course corrections.
    Below is a general list of tasks that should be done by the end of the year to prepare for tax season, which is right around the corner.
    Schedule a meeting with your accountant and ask if any information, reports, or documents are specific to your business. Update your inventory and run a report for December 31. Review your and your employee’s retirement accounts; fund them if needed before the end of the year. Purchase equipment, vehicles, etc., to reduce taxes ONLY after discussing with your accountant and coach. Check your accounts/receivables and print a report with a closing date of December 31. Prepare a list of any uncollectable debt for your accountant. Prepare your accounts/payables. Determine which bills will be paid in the current year. Ensure that all loan interest income and expense is properly itemized on your P/L. Ensure that all major equipment purchases are properly itemized on your balance sheet. Prepare any investment dividends documents. You may need to wait until January to obtain these documents. Make sure you have all receipts and records for any capital improvements or leasehold improvements made this year. Contact your attorney for any required corporate meetings, filings, etc. Discuss with your accountant how to payout any end-of-year employee or corporate officer bonuses. Ensure that all payroll information and worker’s compensation information are correct. Remember, preparing now may save you from paying too much in taxes and will relieve stress from your life.
  15. Joe Marconi
    AutoShopOwner.com is proud to announce it now has over 1000 members! This truly is a milestone and exciting to see how ASO has grown in just a few short years.
     
    AutoShopOwner.com was founded on the concept that there is a wealth of business knowledge among automotive shop owners, and by bringing these shop owners together, great things can happen.
     
    Thanks to its loyal member base, AutoShopOwner.com has exceeded expectations. It is within the forums that shop owners engage in dialogue, communicate ideas, voice opinions and help their fellow shop owner through difficult issues. What ASO also discovered is the dedication and commitment shop owners have to the industry.
     
    AutoShopOwner.com will continue to bring exciting posts, content and information to keep its members up to date with the latest business challenges faced each day. ASO is OUR website. It’s our online voice to collectively work to help raise the image and level of professionalism of the auto service industry. As a fellow shop owner, I am proud and honored to be part of this extraordinary group of business people.
     
    Joe Marconi
    AutoShopOwner.com, Cofounder
  18. Joe Marconi

    Before You Give Pay Raises, Consider This!

    By Joe Marconi,


    Employee Retention
    It appears that no matter where you go these days, repair shops are looking to hire. However, shop owners also don’t want to lose the people they have now. And many of them are considering giving pay raises as a way to retain employees. This is not a bad idea, especially if your pay plans are outdated and not competitive with the current market. However, before you give out pay raises, there are things to consider.
    First, have you done a complete review of your labor and part profit margins to support the raises?  If you are not sure, consult your accountant or business coach. Increases in wages must be in line with what your company can afford.  Adjustments to prices, labor rates, part margins, and production may be needed to finance those pay increases.
    Another important thing to consider is why employees leave in the first place. While money is a factor, especially with high inflation, it’s not the main reason employees quit their jobs. Most people leave their jobs because they are unhappy with their boss or manager.
    To sum up: before you give out pay raises, make sure your company can support the increase in payroll and, equally important, create a workplace environment that gives your employees reasons to stay.
  24. Joe Marconi
    There are many things to consider when creating a marketing plan. Among them are establishing a budget, what forms of media should be used, and whether traditional advertising, such as TV, radio, and print, is still relevant.  And of course, how much should be allocated to social media and digital advertising?
    All the above are essentials to any marketing plan. However, the first step is ensuring that you have a healthy workplace and that your employees understand your company’s culture and the overall mission and vision. 
    We all know that happy employees create happy customers. No form of advertising can overcome a toxic workplace with unhappy employees. If your employees are not creating an amazing customer experience, your marketing plan will not work.
    Advertising and marketing may bring in customers, but the people in your company creating an amazing customer experience will be the most important component of your marketing plan.  It’s the customer experience that sells work and gives the customer a reason to return. 
    Creating an amazing employee experience, which creates an amazing customer experience, is also the most cost-effective part of your marketing plan. In fact, it cost next to nothing.

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