Joe Marconi

57 minutes ago, weighit said:

I was mostly on the body shop side of dealers and bodyshop managers tended to stay a few years then move to different dealer. That reason was almost always pay based or not getting along with the ownership somehow. And in many cases the Bodyshop techs would if they liked the managers style and attitude, would leave and follow that manager. Was not uncommon to see 3 or 4 techs up and leave with the out going manager. That normally told you that manager treated those fellows well, respected them and they him. When a dealer went through 4 or 5 bodyshop managers in 4 or 5 years that told you is was pretty unlikely that that dealer found 4 or 5 poor managers, but that the dealer principle was poor in his management style. Things have changer over the years with employees, but I think all of us/them still require some level of respect for us to want to continue working for that person/manager/ corporation or business. Money is not always the factor keeping someone working for you. Just my opinon.

Wow. You bring up so many critical issues. I do feel that the work environment and ownership/management has an obligation to provide a workplace that takes care of it's people.  As you said, money is not the only factor.  Another thing, most shop owners are former techs, with little to no training in employee management or leadership. Perhaps this needs to be addressed, or the problem will only get worse. 

27 minutes ago, pfseeley442 said:

If you are on any social media you see the trend today is to move jobs. Watch and listen as they explain why, todays employee feel the only way to advance is to constantly seek out new employment, pit employer against employer and leverage the best deals. They talk constant about how employers do not value the employee, there are sights where employees go to rate the employer and share pay rates. Our trade is no different. We don't provide clear career paths, pay increase, benefits etc. Long gone are the days when employees stayed at one place for their career. They take 401k and head for the door. No easy answer, make your little part of the world the best you can and carry on.

I agree with you, and to your point, this is a problem. Thanks for the valuable feedback! 

38 minutes ago, RYAN B said:

Joe, when I first started working with my father over 30 years ago, I wanted to hire a guy who was an ex Matco Tool man, he wanted 650 a week plus full paid benefits and 2 weeks a year vacation. My father told me it was too much, but if I thought the guy was good hire him and it was up to me to pull the difference. At the end of the first week my dad told me to give Karl an extra 100 cause he was worth it.  Not only did he pull his weight, but he was one of those guys that made everyone in shop better and helped me get better help.

Wow!  Another great story about how great people make a great difference. I too have learned though the years that we are only as good as the people around us! Thanks for sharing that story! 

8 hours ago, Gerald Martin said:

Spot on, Joe.  We all need to be humble enough to realize that not every experience, even in a great shop environment, goes off perfectly.

Thank you for the reminder to look at our processes though the eyes of a customer.

Gerald

The key word is humble.  A very important point! Thank you!

3 hours ago, Hands On said:

How do you handle this when your shop is too busy to schedule more then what already shows up with out any effort?

Do you mean that you are over-booked and cannot handle any more work, no potential? What about tech production? Need a little more information. 

16 hours ago, newport5 said:

I keep reading, with business, it’s all about the experience. And I read articles in auto trade magazines that mention a “great experience” and even read “dazzling experience. Now it’s an “amazing experience.” But nobody says what that is, would look like or how to achieve it. And could car repair be amazing?

How many store or business interactions can be amazing experiences? I would think a dinner, concert, sporting event, etc. could be amazing. But spending money on your car so that it runs the same as it did a month ago seems far from “amazing.” Maybe amazing compared to other shops.

Regarding going to another shop because your shop isn’t amazing, I don’t see it that way. Having said that, we work on high-end German cars and I think those people choose their repair shop carefully. They probably won’t just go to the next shop down the street because it was only a good experience.

I think if the customer talks to personable people at your shop, maybe there are some smiles or laughs, gets their car fixed at a fair price in a reasonable amount of time, that’s a “good” experience.

I suppose if your customers just have a “regular” car that’s not much more than transportation, and they see repair shops as a commodity, perhaps it’s easy to just go to the next shop.

Thoughts?

You make a great point, and I agree with you.  Going to get your car serviced and repaired is not like going out to dinner or a concert, etc. With those events, the consumer made a decision to spend money before they left their house. Plus, these are events that people look forward to, so it's a different mindset. With  auto repair shops it is different.

When I was in business, I defined an amazing customer experience by how people feel when they call us, book an appointment, drop off their car, and at car delivery. We need to deliver an experience that focuses on kindness, empathy and listening. We did that by just being nice, by the follow up phone call, the follow up thank you card, and by ensuring that every step of the customer process is not just a transaction, but an opportunity to create a relationship.  

We also made it point to find out things about the customer other than about their car - For example, their kid's name, their pet's name, their hobbies. And we talked about that as if we were friends.

The bottom line is this, six months from now, the customer will not remember the Mass Air Flow Sensor we installed, but they will remember how they felt.

I hope this makes sense. 

5 hours ago, Transmission Repair said:

I agree with points #1 & #2.  However, unlike #3 repeat transmission business is very difficult to predict, unless it's an annual service.  Repeat business in the transmission business is usually either a warranty job as in leaks, a malfunction, or a very unlucky person with multiple vehicles.  But that's just me.  It's very different from the general auto repair business.  In a nutshell, while I do try to make all customers feel good about the repair and communicate effectively, it's more of a transactional business model than a relationship business model because I rarely see the customer again.

I can easily imagine how critical customer retention is in general auto repair, and I agree.  Our business is usually (as we call it) "won & done."

Yes, the transmission business, a lot like the collision business, it much different from the general repair model. However, I still believe that step # 3 can create song birds, if the overall customer experience was amazing.  It's all about how the customer "feels" when they leave. 

You make a lot of sense Larry, and I agree. The culture of the shop starts at the top!

11 hours ago, Gary Childs said:

Very good read. Always stand by your employee's, we all have ups and downs and will always be there for them 110%. 

 

Words of wisdom, Gary. Thank you for the feedback! 

1 hour ago, Charlie said:

Good post, Joe. I would suggest a follow-up post covering the next step, the phase beyond empathy. What does the shop owner do next, how can they provide aid in various examples while not breaking the membrane between a business leader and team member. 

I feel many business owners naturally have empathetic responses, but also a healthy fear of "what's next" and for good reason. Mastering the next phase is where Culture is built. 

Charlie, I like the way you think, my friend! Thank you for the feedback!  

10 hours ago, weighit said:

I have in the past been a service advisor for a very large Cadillac dealer and I was one of 5 advisors. We all got paid the same, a flat weekly salary and then the commission. The weekly pay was barely enough to say we got a check every week, back then it was $300 per week. Maybe at that time is was good but seemed low. Commissions were paid the second week check of the month for the previous month. As I recall it was 1% for the first $10,000 is parts and labor, not including any warranty sales, 2% for the next $10,000, 3% for the next $5,000 and 4% for the next $5,000 and 5% there after for the months sales. Way back then we were each writting anywhere from $45 to 60 grand a month is sales, again not inclulding warranty or sales taxes on the repair orders. Then there was "spiffs" added if a sale incorporated any of the few items on the list that month, tire rotation & balance, transmission flush, detail cleaning and waxing. That kind of extras. It was a flat $$ figure per sale added to the commission check. Owner was very concerened we didn't sell things that were not nor even needed. No funny business to add to your checks. This was back in 1975  or so,  a long time ago, but all of us advisors were pleased at that time with our incomes. Times have changed and I'm sure pay has changed upward a lot. 

Thank you for your perspective on your situation. Pay programs have changed throughout the years, with an emphasis on bringing the service team together and understanding the needs of the company and the individual.

One thing, you mentioned you got paid a base wage of $300. I remember hiring service advisors years back from dealers, and they were shocked that I paid a decent base wage.  I can't help thinking that a low base wage is a constant concern in the mind of the service advisor.  I always believed that the base pay must take care of the basic needs of life, with the opportunity to earn more. 

3 hours ago, Charlie said:

I might also add, to attract the best; sometimes we need to clean house. When I consider my past, I can remember several periods where I had a talented technician, maybe even a leader, who was just toxic. You know the type, the one with all the wrong body language while you hold your morning huddle? Out of weakness, I allowed those rotten apples to hang on the branch way too long; after all, they were producing hours, right? 

A-players only work for A-players. When we allow Buzzards within our flock, we will never be able to soar with Eagles. 

Sorry about all the idioms 😎

Yes, bad apples don't remove themselves. And they infect others. 

27 minutes ago, TheTrustedMechanic said:

I agree with you, in too many markets it is very hard for a shop to specialize.  In fact, in my town there are no strictly transmission shops anymore.  The only one that even advertises "transmissions" is a general repair shop that started off as a transmission only shop and then had to expand their services.  We have 3 "import specialty" shops and only one is truly import only with another having a very high percentage being "European" imports and the 3rd is now pretty much a G/R shop.  In Northern Michigan Subarus are a big deal and there is a Subaru only shop but as for single make or "sister" makes like Honda/Acura, Toyota/Lexus, etc. there are none.  All others are G/R shops because that is all the local market will support.

 

Even when the customer goes to the dealer sometimes that level of specialization isn't enough to solve their problem.  Sometimes "Most Car Makes, Most Car Models" comes in handy too.  I had a Lexus RX come in for a "lack of power" complaint.  They had taken it to two different independent repair shops and "the dealer" (I think it was actually a Toyota dealer) and no one could figure it out.  It would sometimes bog down and have no power taking off and when you were coming to a stop it would sometimes act like the brakes went out.  Those were the customer's explanations.  I think most experienced techs will have a very good idea of the root problem. I am a one man shop and I shuttled the customer and her attendant to a nearby coffee shop in the customer vehicle.  I pretty much knew the cause before we got to the coffee shop.  This was a Lexus but most of the "Most Car Makes, Most Car Models" shops have encountered the GM trucks and their false ABS activation issues.  A review of the WSS signals just like with the GM trucks proved that one of the front WSSs was slow to start a signal and early to drop to zero thus confirming the lack of power was traction control and the "brakes go out" feeling was the ABS activating.  Why the dealer didn't figure it out is beyond me,  but I had the entire diagnosis completed with two test drives and a brief inspection on the hoist.  The customer thought I was a genius because I figured out what 3 other shops could not.  All because I am a "Most Car Makes, Most Car Models" shop.

But you are 100% correct that as a "Most Car Makes, Most Car Models" shop, I am often not as productive as I could be if I dealt with just a few highly repetitive jobs.  But that is the state of the local economy, too few opportunities to specialize and survive.

Thank you for the added perspective.  I think that for most All Makes All Models, the business model will have to continue to evolve. There is nothing wrong with it, and it kind of makes sense. Think about this: There are pediatricians, surgeons, radiologists, Internists, psychiatrists, etc. BUT they are all called Doctors.  Specialization, to some degree, will come. 

13 hours ago, Transmission Repair said:

I have to add about our labor times.  In a transmission shop environment, it was really unusual for somebody not to beat the billed hours time.  That goes for both the build time and the R&R time.

As an example, if a technician works 40 clock hours, the billed hours usually ran somewhere in the range of between 50 to 60 hours.  That's between 120% and 150% efficiency.  Technician efficiency was not something I worried about and rarely checked.  New recruits were the only technicians who couldn't do better than billed hours.

The biggest problem I encountered with technicians was attitude-related.  One bad apple can turn into a cancer.  That happened to me once with two new hires.  Perhaps I'll post the letter I wrote to one of them sometime.

Do you think the reason for high productivity and beating the labor time is due to becoming very proficient in a particular area and skill set? As in your business model?

In the "Most Car Makes, Most Car Models" world that I operated in, over the years it became more challenging to beat the time. For example:  A tech's first car for the day is a Check Engine light problem on a Buick, then an ABS issue on a Lexus, and then a climate control problem on a Volvo.  To be proficient in this environment is challenging, at best. 

Thoughts, comments? 

48 minutes ago, Charlie said:

Joe,

I appreciate the fact that you are not just looking at the Labor Rate but also the operation as a whole. I believe we are all trying to reach a desired net profit, and how we get there involves hundreds of touchpoints. I would say that raising your labor rate is not the solution to low (or no) profitability; raising that rate is only part of the equation. 

Over the past few years, I have seen a dangerous level of arrogance creeping into our industry, a genuine threat. To achieve the actual profit we want/deserve, we must think like a CEO of a complex business. We must measure metrics throughout the process, looking for areas to cut costs and improve efficiencies. We must also listen to all recorded phone calls and perfect our technique rather than only adding more fuel. Here's a good analogy: How would a NASCAR team fare if, to win the Cup, they were hell-bent on more horsepower as the solution rather than suspension improvements, better aerodynamics, and improved traction? 

I know NASCAR governs everything, so my example is terrible, but we all get the point. Don't we?

Charlie, Yes we get the point! Great photo.  

You make great points about the current state of business. And as someone who has been in this industry since 1974, I can tell you that your words have never been more true. 

The "arrogance" you speak is the prime reason for writing this blog. Perhaps, shop owners should ask themselves, "Is my recent success directly related to what I did, or is it the benefit of current circumstances?" 

Thank you for you post! 

8 hours ago, bantar said:

Well said!  We raised our labor rate by $20 this year to $170.  May not be high enough still.  But my main issue that we're working to solve are the large leaks in the dam. We're correcting  the labor guide to more closely reflect actual times or building contingencies into our estimate to allow for us to request more labor when needed.  When communicated correctly it works. 

Then we are rounding up the labor.  Labor guide is close sometimes and has errors or is misleading at other times.   

In a class today, we discussed bumping the actual labor time by 20-30%.  Then he said to add 10% to the total and give everyone a loaner car or Uber.  

Being afraid to charge properly all the time was an expensive lesson.   We're doing way better now.   I feel like we are about 80-90% corrected.  Also, need to keep one of my techs from doing unauthorized / unsold work too.   When he gets on a roll, stop is not in his vocabulary.   We're working on this too. 

Productivity isn't an issue for us yet as I'm staffed for where I expect to be (which is overstaffed for today).  We'll be ready to manage that when it is required.

I'm happy that our profitability has grown enough to allow me and my shop foreman to attend the Vision Training Conference in Kansas City.  Today was the 1st of 4 days.  Both of us had a great 1st day!

Great comments and feedback!  You are lucky that productivity is not an issue at this time, that means that you are doing a lot of things correct.  You make a great point that many are afraid to charge what they need to charge.  I wonder if it's from fear or not truly knowing their numbers and the need to achieve a profit? 

17 hours ago, newport5 said:

1.       Is EVERYTHING written up at the initial drop off, to limit waiting for additional approvals? Such as, are you adding a line for brake rotors for approval, just in case it’s more than just pads?

                "If it turns out to be THIS, can I get your approval now?"

2.       Is everything in writing for the technician, every time, versus a, “Hey, that car gets a …”

3.       Is the technician cleaning his bay versus the lot guy, whose not producing hours?

4.       Has the service advisor created a great relationship with the customer to get most things approved?

You bring up a lot of great points.  I am sure we have all seen situations where the issues of low production can be traced back to a poor process that originates at the intial write up. 

Great points!  The key thing is to dig deeper when issues with production arise. Experienced techs are efficient; they have control over that. However, writing the job correctly and other factors play into low production. As we have all learned, productivity and efficiency are not the same. 

On 1/11/2023 at 1:09 PM, Juli Southard said:

We own the business and the land outright, we also just paid off our home 12/30/22!!  I'm hoping to have one or both (business & land) fund our retirement hopefully in the next 3 to 5 years.  We are currently in the process working with an amazing insurance agent/planner organizing our mess of current numerous policies into two better plans for my husband and myself.
When the eventual sale/lease of the business and/or property comes to fruition, is there somewhere to sock away what's left in it's entirety (after CA takes the tax) to just let it grow and live off the dividends?

I sold my company and the land a little over a year ago. Made out good with the sale of two locations and property.  However, one of the things I did (on the advice of my financial advisor) was to also fund a retirement plan over the past 25 years.

Your question is valid and right on target, but you need advice from a CPA accountant and your financial advisor. For me, while the sale was good, I had to pay capital gains tax, but it wasn't that bad since the property was redeveloped in 2008, and I still had a lot of depreciation that helped reduce my tax liability. 

Another thing to consider is how your money will be invested.  I moved my investments to more slow growth over the years as I got older and added the proceeds from the sale to this portfolio. You don't make large gains in a good market with slower growth investments, but when it turns bad, you don't lose as much. 

The point is that you need to sit down, do your budget for after you retire, and then determine how much your money will last with different scenarios. A good financial advisor can help with this.  Only after that can you determine if the dividends will be enough.  Sorry for not giving a direct answer, but I want to be honest from what I have learned. 

3 hours ago, Obsidian Motors said:

Yes, it will. Seems you can't throw a rock in this city without hitting an auto repair shop and car dealership, so we're hoping this will give us an edge and increased visibility. 

Keep us updated on this.  I know many of us are interested!  And good luck!  

1 hour ago, Obsidian Motors said:

We're slated to try local broadcasting within a 15-mile radius on Spectrum.  Just submitted the 30 second commercial. First time using TV ads so hoping that the campaign is successful. 

Will the TV ads match up to your demographic profile? 

35 minutes ago, Transmission Repair said:

Great tips, Joe!  I wish I had those tips when I was in business before I retired.  The one tip the I, as well as most shop owners struggle with is "Hire the best people and have enough staff."  Easier said than done.  I hooked up with 3 automotive technical colleges in our region with limited success.  They were 

Automotive Technology | Transportation Technologies | Utah Valley University

 

Automotive Technology

 

I still had to train the students as if they were green off the street.  That part didn't bother me.  What bothered me was the unrealistic expectations the student had as far as production and salary expectations.  The students couldn't grasp what a major investment we were making in training them.  They weren't used to working alone and having production expectations put on them.  After many years, I went back to hiring out of the industry and paying above normal salaries/hourly pay to attract the best of the best.

Surrounding yourself with the best people is something that is critical to all businesses. And there are many shop owners that have a difficult time getting the right people.  However, it's the first step to success for any organization. After that, it's the leadership of the company.  Too many leaders Demotivate their employees.  But that's a topic for another post! 

Thanks Larry, for your comments! 

1 hour ago, Old and Tired said:

Finding those people has been the difficult part. I've felt like all they wanted was to milk me as long as they can and do as little as possible.

Agree. You need the right team of advisors around you. And that can be difficult. 

3 hours ago, Transmission Repair said:

Joe,

Great post, brother.  Here's what we think of even less.  That is before we retire, IF, the BIG IF, we are selling our shop to employees or anybody of the technical mindset, hook them up with a shop trainer.  If I had it to over, I would have paid a trainer's fees a couple of years in advance for my purchaser.  They had the money to buy the shop, but little more.  They were expecting an immediate return on investment because they didn't have any money to do otherwise.  Food for thought.

I did sales and management training shortly after retirement and got disappointment after disappointment.  The biggest disappointment was after the gig was over, the shop I was coaching went right back to doing the S.O.S. they were doing in the first place that got them in the jam to seek coaching.  All, but 1, is now out of business.  The one that's not out of business is only 3 miles from my house and stopping by to say HI! keeps them on track.  Thank goodness it doesn't cost me a hotel and airfare.  A profitable, well-run, and managed company rarely seeks consulting services.

I read somewhere that a shop owner thinking about retirement was going into coaching shops.  He's living in a dream world and his desire has no basis in reality.  If you think owning and running an automotive shop takes commitment, you don't know what commitment is until you coach other shops.  Personally, I couldn't do it.  I only lasted 6 months and I had enough.  I wasn't cut out for living out of a suitcase and dealing with hotels, airlines & airports on a weekly basis.

Thank you, as always for your feedback and great comments. It's much appreciated. 

With regard to coaching, perhaps the most difficult part is when you see things, and give advice, and the client does not act. Experiences have been a great teacher for me, and for many. But it's like the old saying, "When the STUDENT is ready, the TEACHER appears." 

15 hours ago, xrac said:

I never cease to be amazed at some shopowners who nearly have a heart attack because they got their first negative review.  They even try to bribe customers to get them changed. I do not like to get a 1 star review but I know if I will get five new five star reviews I basically bury it. An active business will get bad reviews occasionally that you deserve but often you get them from competitors, from disgruntled employees, from idiots that don’t understand anything, or from people who wanted something from nothing. The answer to bad reviews is respond professionally and get enough good reviews to bury the bad reviews. As Joe says a rating in the mid 4sis good enough.  Just don’t let it fall below 4.0 because Google search tends to ignore business below that level. 

Words of wisdom, Frank!  I need to admit, that I would be devastated when I got a bad review but learned the reality you speak about.