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Joe Marconi

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Blog Entries posted by Joe Marconi

  1. Joe Marconi

    Never Apologize for Your Prices

    By Joe Marconi,


    Customers
    Shop owners today understand the challenges of rising costs and inflation.  Without addressing this issue and making the needed adjustment to your margins, the increase in your expenses will end up hurting your bottom line. Adjusting prices, up or down, is a function of being in business and, at times, unavoidable.
    Shop owners often fear that their customers may push back with any price increase. They ask themselves,  “Will my customers understand? Will they shop other auto repair shops to compare my prices?” 
    The truth is your true profile customers are not loyal to you because of the prices you charge for your services and repairs. Yes, you need to be competitive, but you also need to be profitable. Your best customers are loyal because of the value they receive from doing business with you.  Those are the customers you need to focus on and spend most of your energy on.
    If you determine that you need to raise your prices, do it, but never apologize. Continue to build value in what you do. When value increases, price fades as an issue. However, when the customer does not see the value in your services and repairs, the customer will then focus more on the price.
  2. Joe Marconi
    Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
    The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
    Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
    And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
    Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
  3. Joe Marconi
    Nearly every car that leaves your auto repair shop today will need some sort of service or repair in the future. The question is, will your customers take their car back to you? In this blog, I will discuss three simple ways to increase your customer retention rate, which will also increase sales and profits.
    First, ensure that the entire customer experience is amazing; from scheduling the appointment, vehicle write-up, the sales process, and especially car delivery. A poor experience could result in a lost customer. Remember, an amazing customer experience tells the customer, “We want you back!”
    Second, spend time at car delivery reviewing all the work that was done that day. Make the customer feel good about the decisions they made regarding the repairs or services done that day. Discuss all future services, recommendations, and any deferred work. Engage in conversation and always look to build a relationship with your customers.
    Third, and the most important, make sure that your service advisors are informing all customers of their next service appointment, and book that appointment. This step is crucial. As a business coach, I get pushback on this from shop owners and service advisors stating that their customers don’t want to book the next appointment. This is nonsense. Your dentist books your next visit, and so do your pet groomer, your doctor, hairdressers, eye doctors, and HAVAC companies. In fact, I got a reminder call the other day from the company that cleans my fireplace chimney about my October 26th  appointment. So, please, no excuses!
    The bottom line is this. One of the best ways to build a more profitable company is to pay attention to the customers right in front of you every day. Create an amazing experience each time, and make sure you perform the car delivery with such execution that it gives your customers a compelling reason to return to you.
  4. Joe Marconi
    As shop owners, we get consumed with the day-to-day routine of running our businesses. When we are young, we think we have all the time in the world to plan for our futures.  When we hit middle age, we think about our end game, but too few of us do something about it. And when we reach retirement age, we wonder if we did all the right things to prepare for life after owning an auto repair shop.
    The reality is that life can throw you a curve ball at any age. This means you need to prepare today. You have responsibilities to yourself, your family, your loved ones, and those you employ.
    Ask yourself, “What if something happens to me today that would force me to retire? Would I have everything in order so my family would be protected?  Would my business survive without me not being there?”
    No matter what stage you are in your business career, my advice is to do this: Set up a series of meetings with a financial advisor, your accountant, an attorney, and an insurance agent. And your business coach, if you have one. Tell them that you are concerned about your eventual exit from the business and to plan for the unexpected. They will help you to get all your priorities in order.  
    Remember, when it comes to life’s curve balls, age does not matter.
  5. 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.
  6. Joe Marconi
    Contrary to what many people believe, having a perfect 5-star Google review rating is not something a business should expect to achieve. After all, no company is perfect. And Google realizes this too.
    There’s no denying that consumers look at online reviews and base part of their buying decision on these reviews.  A great online review rating on Google is essential to draw traffic to your website and your business.  However, it’s better to have a mix of great and not-so-great reviews.
    To consumers, a perfect 5-star rating looks suspicious; they expect some negative feedback.  While most business owners get distraught over a negative review, how a business responds to the review is what’s most important.
    For automotive repair shops, a rating of 4.4 to 4.8 is probably what you should strive for. I am not suggesting that you don’t provide world-class service and quality repairs.  However, the reality is that you are not going to please everyone.
    Another thing to consider is that negative reviews don’t hurt a business as badly as we think. Rather than worrying about negative reviews, shop owners need to focus on engaging and replying to all customers who leave reviews, which tells your customers, and Google, that you care about what your customers are saying. Responding to all reviews will also help your search engine ranking.
    The next time you get a negative review, remember that you will never please everyone. Use the negative feedback as an opportunity to learn from the feedback and positively promote your business.
  7. 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. 
  8. Joe Marconi
    “Leave your problems at home” is a common expression. The thinking behind it is that if you are having a problem at home, it will affect your performance at work. So, change gears when you get to work and put the problem out of your mind.
    However, can people just shut it off?  Can they leave their problems at home?  Consider this example; your technician and his wife have a very sick child who is getting worse. Their doctor is concerned and wants to refer the child to a specialist, fearing that something is seriously wrong. In this situation, do you truly expect your technician to shut it off, and simply put it out of his mind?
    Problems at home are part of life. As a shop owner, you need to be more understanding and have empathy. You also need to build a solid relationship with your employees that allows them to approach you in times of need or crisis. This is a key component to building the right culture with high morale.
    Here’s another scenario to think about: Let’s say your service advisor is overwhelmed at work. She is having a hard time keeping up with all the work and reaching the point of burnout. In addition, she works with a problem technician that is always complaining about something. Do you think this service advisor can shut off her work problems and not bring them home?
    The bottom line is this; as shop owners, you need to reach your employees on an emotional level. Yes, you are running a business and you have your own set of issues and problems. I get that. But your success is directly related to the success of the people around you. That means that everyone must feel that they are people first, employees second.
    The next time you see something off with one of your employees, don’t assume the worst. Pull them aside, show them you care, and ask if there is anything they need and if there is something that you can do to help.
  9. Joe Marconi
    I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
    Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
    Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
    Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
    Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  10. Joe Marconi
    Losing My Patience, Never My Passion
     
    As a shop owner, that began his career as a mechanic 36 years ago, the effort of building a business has taken its toll in many ways. While I have not lost my passion for what I do, I have lost my patience with many of the things I see around me. I have built a business from a small 2-man operation to a 2-facility company with close to 20 employees. It’s often said that you need great people around you in order to achieve success. But the truth is without leadership, vision, passion and a whole lot of determination, nothing will ever get accomplished. It also takes risk, with countless sleepless nights. All of which must come from the founder or owner of the business.
     
    Here’s my frustration. I hold myself accountable each and every day. If I screw up, I admit it and work twice as hard to rectify the issue. Why don’t others in the company hold themselves accountable? Not for me, for themselves. Take for example, a technician misdiagnoses a problem and costs the company money in lost time, wrong parts installed and an upset customer. Now, mistake happen, we are all human. That’s not my issue. My issue is the lack of remorse, the lack of concern, the lack of sense of urgency to make things right.
     
    I see too many times after a mistake has happen, that nothing changes in the attitude from the tech that made the error. He does not work any extra to make up for the loss. He does not come in early to try to make amends. And when I try to bring it up, I’m the bad guy and the tech gets upset at me! Upset at me? I have to suck it up and keep it inside me? And, Heaven forbid if I even suggest that the tech come back from lunch a few minutes early or maybe forgo his “natural birth right” of spending time on the tool truck.
     
    In their defense, my techs work very hard. They endure the cold, the rain, the sweltering heat of the summer and the daily bodily punishment of being a mechanic. I guess, what I want is just a little of the passion I have. That show of concern and the paying attention to all the details of the business. Also, I would love to see people have the same energy level as I have. I have more than 20 years on some of my employees and there are days that they can’t keep up with me!
     
    I guess, maybe it’s a lot to ask. My techs are great people. The morale is great and we are profitable. Some people tell me that it’s impossible for an employee to care like the owner cares. I don’t agree. Before I went into business, I took my work personal. When I worked for someone, I worked like it was my own business. But, that was me and to be honest I didn’t stay in the workforce long, starting my own business at the age of twenty five.
     
    Maybe I have been doing this too long, maybe I need to ignore some things. Maybe I just need a break. But, I am who I am and I can’t see myself changing. My passion will continue to be the force that drives me into the future. I will continue to work hard to bring out the best in me and in my employees. I am dedicated to my family, my business and to my employees. I will not push my ways on anyone. People need to show respect for themselves first. Only then can they truly grow with others.
  11. Joe Marconi
    The summer is in full swing, which means your shop is probably at its busiest. Summer also means it’s vacation season. You’ve probably done a great job scheduling your employee’s vacations, but what about yourself? Are you planning time off too?
    Shop owners are among the hardest-working people on the planet. This is a quality to be admired.  However, everyone needs time away from their businesses to spend with friends and family.
    Balancing work with life is your responsibility to yourself and your family. Your business must never consume your life; it must enrich it. Time goes by too quickly; trust me on this.
    There are also significant advantages to spending time away from your business. You clear your mind of the clutter that occurs from the day-to-day grind, you give your body a chance to recuperate, and most importantly, you’ll build memories with your loved ones.
    When you return to work, you will be more energized, with a fresh outlook on how to move your business forward. Essentially, the right balance between life and work will help you become more effective, making you more successful.
    I’ll leave you with this quote: “No one on their deathbed ever said, I wish I spent more time at work.”
  12. Joe Marconi
    A recent study, done by Harvard Business School, concluded that the real problem with attracting and retaining employees has more to do with the workplace environment, not pay or benefits. While the study did find that an adequate pay plan and offering an attractive benefits package did help with recruiting and retention, it’s not enough to satisfy the needs of employees, especially those of front-line workers.
    The study also stated that in 2021, many companies were convinced that giving raises, sign-on bonuses, and other perks would solve the worker shortage problem and prevent people from quitting. However, this strategy did not work. So, what does work regarding attracting quality people and keeping them employed?
    Essentially, it all comes down to the culture of your company.  Management: do all it can to consider the individual needs of your employees. Your employees want to feel that they have a voice, that their opinion counts, and that their role in your company is both respected and recognized. Yes, pay and a great benefits package will go a long way toward making your employees feel secure, but that’s only financial security. People want more than money.
    To attract and keep top talent requires creating a company that people feel proud to work for. You need to reach the hearts and minds of your employees. Become a leader that people are enthusiastic about working for. You want your employees bragging to their friends and family that your shop is a great place to work!
    Step one to attracting and retaining quality employees: Create an amazing workplace environment for your employees!  Trust me, happy employees make happy shop owners too!
  13. Joe Marconi
    You’re out to dinner with a friend. The service was horrible, the meal took forever to get to your table, and it was not what you expected. You get the check, pay the bill, and start heading for the door. At the door is a woman, a staff member, holding it open and saying in a monotone voice, “How was everything?” You pause for a second, look her in the eyes, and reply, “Everything was fine, thank you.”  As you walk to your car, you turn to your friend and say, “That’s the last time I go to that restaurant!”
    It's often said that the kiss of death for any business is what your customers are not telling you. Most people avoid confrontation. If they don’t like the service, the price, or the product, many consumers will not say anything. They would rather leave it alone and move on and try another company.
    Think about your auto repair shop. Think about your customers. How many of your customers, after having a less-than-perfect experience, will not say a word to you or your staff? How many of these customers will come back to you? How many will not?
    It’s important to understand that your customers are not only judging you by comparing you to your competition but also by the combined experiences of all companies and the interactions they come into contact with daily. And most of those experiences are not good. So, it would be in your best interest to create an experience that tells your customers, “We care about you, and we want you back!”
    There are two things to consider regarding customer service and ensuring that you have met your customer’s expectations and created a memorable experience. First, when someone does give you critical feedback or post a negative review, use that feedback to learn and improve. How the customers view their experience may not be aligned with what you believe you have provided, but their opinion is their reality, and that’s all that matters.
    The other thing to consider is having open and honest discussions with your employees, especially service advisors, to understand what excellent customer service is like, and try to look at that experience through the eyes of the consumer. This may not be easy and will take training, but it is essential.
    Remember, it is the customer that ultimately determines what an amazing experience looks like.
  14. 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.
  16. 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.
     
  17. Joe Marconi
    No, I have not lost my mind. You and I both know that the oil change business is different today from what it was years ago. If we go back to the 1980s, and up through the 1990s, we judged customer visits by a factor of 4 to 5, which meant that we needed to see a customer at least 4 to 5 times a year, an indicator of customer retention rate and loyalty. Back then customers brought us their vehicles every three to four thousand miles for the traditional oil change. That business model no longer holds true.
    Today, the customer mindset has changed. Plus, oil change mileage intervals are a lot longer. For many, they don’t think about the oil change service the way consumers thought about it years ago. Just look at your customer base. How many customers drive well over the suggested oil change mileage interval?  How many customers wait until the Maintenance Light comes on? Or even worse, the Engine Oil Light! 
    I am not suggesting that you don’t perform oil changes, what I am suggesting is that you take a different approach. First, for those customers who drive well over the oil change mileage interval, it is in the best interest of the customer to educate them on the value of preventive maintenance. Instead of selling an oil change, promote the value of the vehicle’s scheduled maintenance service; for example, a 15k or 45k Service.  This is not new; we all know this concept. Selling a maintenance service will help to ensure that we are doing all we can to protect our customers, promote vehicle safety, and extend the life of our customer’s vehicles. This concept also lowers the overall cost of vehicle ownership over the vehicle's life.
    Lastly, you have the perfect opportunity at vehicle delivery to educate your customers about the importance of preventive maintenance. Review with all customers, the service interval that is due next, and book that service with your customer. If we focus on what is best for our customers, we can’t go wrong.
    I frequently tell shop owners, “Every vehicle in your shop today will need a future service or repair. Make sure that your customers return to you.”
  18. Joe Marconi
    Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
    At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
    I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
    Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
    With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
    Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
  19. Joe Marconi
    The other day one of my techs was replacing front brake pads and rotors on an older Subaru. The caliper bracket bolts were seized and one of them snapped off. This is a common problem and we are well aware of it. We try our best with rust busters and heat, but sometimes nothing works. The tech drilled out the broken bolt and finished the brake job. No problem, right?
     
    Here’s the problem, who pays for it? Me,or the customer? I asked the tech if he informed the service writer. He said he did. I asked the service writer if he told the customer and up-sold the repair. The writer told me it was a hard sell just to sell the brakes and felt he could not approach the customer. I informed my service writer that I did not buy the car, build the car or break the car.
     
    I did something that maybe I should not have done; I went into the customer waiting room myself and explained the situation and sold the caliper bracket repair.
     
    My issue is this. Are they times when we can't charge and we just have to eat it? I say yes and no. That depends on the situation. I also think that this particular writer needs more training in customer relations.
     
    What do you think? Charge or not charge? What policy do you have?
  20. Joe Marconi
    About a year ago I hired a service advisor that I believed at the time would be a great asset to my shop. He had a lot of experience, knowledgeable about the business and well-spoken. He showed all the right credentials.
     
    Soon after being hired, I noticed something that I did not pick up in any of our three interviews; he did not smile. How was it possible I did not notice this? A few more days turned into weeks and I could see that this person’s personality, or lack of personality, did not fit the culture of my company. We had a few meetings together and I would ask him, “Is everything ok? You never smile”. He didn’t think too much of it said that everything was fine. Personally, I had my doubts.
     
    Shortly after I hired him, an equipment rep came to see me said to me, “Joe, your new hire, you do realize he never smiles”. Well, this began to worry me. As time went on I could see that his demeanor did not go well with the other people in the shop, or with the customers. People feed off other people’s personality. When someone walks around with the look of doom and gloom, it affects the attitude of others. And it surely affects how the customers react also. It actually affects our ability to communicate and sell. I knew that if something was not done soon, it would have tragic consequences.
     
    It also bothered me that no one in shop really liked him. I later found out that was because he did not treat people nicely and would berate the techs.
     
    I tried all I can to help this person to change, but nothing I did could crack a smile on this guy’s face. Time went on and I hoped for the best. I soon learned that hope is never a plan for success. Soon, customers began to complain. After a while it became apparent that the negative behavior from this person was having a negative effect on the customer’s behavior. In other words, people feed off of other people’s personalities. If someone walks into a place of business and is greeted with a warm smile and a big friendly hello, it puts that person in warm and friendly frame of mind. When the opposite happens, things will go downhill and turn bad.
     
    As usual, I waited too long to pull the trigger. I gave myself every excuse why I should keep this person, when the truth was it was also affecting my personality and my ability to remain upbeat. For the sake of everyone I finally fired him, but not after the damage he had done to my company.
     
    The sad fact is that he will never see what his personality is doing to himself and to others around him. Why he was so unhappy remains a mystery, I hope in time he can release those demons. For me, I learned a valuable lesson. There are times that you cannot get people to change. For the greater good of everyone, stop the bleeding and fire the person. You are doing the best thing for that person, for others in your company and for yourself and your family.
  21. Joe Marconi
    Everyone has their own perception on life and the world around them. This perception becomes reality and it’s the only reality that matters. At least for most. This does not always hold true for shop owners.
     
    As shop owners, we don’t always have the luxury of viewing things from our perceptive. There are other people around us and their families to consider. As the owner, and the leader, our concerns and issues take a backseat to the concerns and issues of others. This is something I know we accept and we do our best everyday to look at things from the perceptive of others.
     
    For me, it’s been 33 years since I put the key in the door of my repair shop for the first time. And I can tell there are times when I feel like it’s the 12th round of a 10 round boxing match.
     
    I am not complaining, mostly because my position does not allow me to complain. Leaders and business owners have to remain strong, positive and put the interest of others before themselves. This is in part what makes a leader a leader; the ability to put one’s interest aside for the greater good of others.
     
    However, this makes it very lonely at times. Leaders must have vision and work to not only improve themselves but improve the lives of others. Leaders also must look to praise and recognize the accomplishments of others.
    Moral building and team spirit become the essential building blocks of any organization. We as shop owners are well aware of this. I am not asking those who are employed to understand all of this. But please, is it too much to ask for just a little consideration and understanding of what WE go through?
     
    I am not going to get into all the petty situations that drive us crazy. It really does not matter. I also realize that the words I am putting on paper will do more good for me, and hopefully for you, reading this. It will not, I am sure, change the way many people think and act who simply go to work each day and expect a pay check at the end of the week.
     
    Ok, that’s off my chest. I feel better. To be honest, things are not that bad. I have a great family, great wife and three amazing children. I have built a company that I am proud of; a business that was only a dream decades ago. I entered this industry as a mechanic and was transformed into an entrepreneur. I have achieved a lot of the years. And I am not done yet. There is still much more to do and will work hard to achieve my goals and aspirations.
     
    Maybe I try too hard. Maybe I judge others by how I was and how I am today. Maybe that’s wrong. Perhaps, I am not the leader I think I am. Leaders must find other potential leaders and cultivate them to become future leaders. Leaders must also be understanding and find the good in others, and not focus on the negative. Maybe I needed to write this tonight to remind myself to stop complaining and get back to work. If something isn’t right, then I should take a long hard look in the mirror. The answer to my problems and questions can be found in the man staring back at me. So, let me get back to work.
     
    Yes, a leader can be real lonely at times. But I would not want it any other way!

     
  23. Joe Marconi
    Herb Kelleher, the co-founder of Southwest Airlines, was once asked, “Who’s more important, your customers or your employees? Thinking back on what his mother had taught him, Kelleher responded, “My mother taught me that your employees come first. If you treat them well, then they treat the customers well, and that means your customers come back and your shareholders are happy."
    Shop owners have been taught that the customer is always right and that their needs supersede all other needs. Anyone in business dealing with people every day knows that this paradigm, in reality, doesn’t always hold up.
    In business, you need customers; without them, you don’t have a business. However, without employees, you don’t have a business either. It’s the old “chicken or the egg” question.  
    Here’s my view on this; I agree with Herb Keller that employees come first.  But I take it one step further. You need a team of superstar employees who share your culture and value the team concept. You need people that love what they do and want to help others.  Then, as their leader, you need to treat your employees well. Why? The way you treat your employees is how they will treat your customers.
  24. Joe Marconi
    We all know there are times of the year that are better than others and times when business is slower than what you would like it to be. While every company goes through highs and lows, there are things you can do to help keep your bays full all year long.
    One of the best ways to achieve a more consistent car count is to make sure that every customer that leaves your shop today has their next future oil change or factory maintenance appointment booked. Please don’t tell me you have tried this process and it doesn’t work for you; it does work. You can’t get out of your dentist’s chair before booking your next teeth cleaning!
    Let’s face it, the days of the 3,000-mile oil changes are long gone, so if you are waiting for the customer to book their own appointment, good luck with that strategy. You need to be proactive and book the customer’s next service appointment. I would also recommend booking your customer’s next tire rotation, which will be approximately every six months for most customers.
    Here’s the essential component of this strategy:  Make sure all customers you have booked for a future appointment are logged in your calendar. And make sure that each customer receives a phone call or text a week or so before the appointment date; if the customer can’t keep that date, no problem! Simply book another day!
    This isn’t rocket science, but it does take a proactive approach on your part. Start today, and you will reap the benefits of this strategy in no time at all.
    What about electric cars? Well, they need services and repairs too. I will address that in a future blog, so stay tuned!
  25. Joe Marconi
    The strategies outlined in this blog reflect real-world strategies I have learned and used in my 41 years as an auto shop owner. I also use these strategies when helping clients as a business development coach. 
    While running a successful auto repair shop today has many components, the list below contains the top 9 strategies I believe every auto shop owner should consider when looking for ways to improve their bottom-line profit. 
    Ten Ways to Improve Your Bottom Line:
    Hire the best people and have enough staff. You will have a much easier time achieving success when you’re surrounded by the right people. Calculate your correct labor rate and adjust that labor rate every quarter. Charge a higher labor rate for jobs that do not include any parts, such as electrical testing, check engine lights, onboard computer issues, and drivability problems. The missing part profit must be made up somewhere. Review and refine your checklists and procedures to improve overall efficiency. Make sure all your equipment is working correctly and that you have the equipment and tools needed for the vehicles you service and repair. Make sure your part margins allow for a respectable gross profit.   Make sure your inventory is up to date, with up-to-date pricing, and you don’t have too much stock sitting on the shelf. Make sure you have a process to get the proper credit for part cores, returned parts, and defective parts. Invest in ongoing training for all employees. BONUS TIP: Speak to your accountant and business coach about tax planning strategies. But do not wait until tax season. Tax planning should be done throughout the year.
    I hope you found this information helpful.

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