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Joe Marconi

Management
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Posts posted by Joe Marconi

  1. 1 hour ago, newport5 said:

    Re: Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience? 

    Should we get back to the art of selling? NO! Customers don’t need to be "sold." We need to sell ourselves. Google search: “nobody likes to be sold.” More soon

    taking care of customers: YES !

    offering options? Such as?

    and making sure we create an amazing experience? OK. What makes for an amazing experience? I read online somewhere: “Today’s customers want an exceptional experience, one that puts you and your shop above the competition. Which means: easy scheduling, a fast turnaround, open communication, fair and transparent pricing, and repairs that are done right the first time.”

    To me, that is NOT an exceptional experience. That is the minimum. That is a routine experience.

    Thoughts?

    You are right.  Here is my take on this.  Creating an amazing experience is nothing more than building strong relationships, being nice, friendly and making sure that you are taking care of the customers needs. You are right, as we build value, we sell ourselves.

    I don't think the customers "expect" any experience. They get beat up everywhere, and now they are just looking for a someone who truly cares. For example, I am dealing with a knee issue. I called the doctor three times, left messages, got hung up on twice, and it took days for someone to call me back. And this is a doctor's office!

    Again, this is no brainer, just be nice, do a quality job, and the rest takes care of itself....for the most part. 

  2. On 9/6/2023 at 5:43 PM, Transmission Repair said:

    They say everything costs more these days.  I found more evidence of this when looking at Ratchet+Wrench Management Conference registration fee of $999.  Wow.  Add in airfare, hotel, etc. and this event for even just ONE person in a shop will be at least $2K, if not more.

    Although I'm sure the event will be worth it, to me it simply drives up training costs that needs to be calculated into a shop's pricing structure.  QUESTION: Do you have Training Costs as line item in your P&L?  As a percentage of sales, how much should be budgeted for Training Costs?

    In our shop, we had 1% (~$12,000) of sales budgeted for Training Costs, but in reality, it ended up being almost 2% (~$20,000) because we trained ALL employees.  Because we were a transmission repair specialty shop, a year didn't go by without 3 or 4 new transmission models added to the mix.  We would close the shop for a total of 4 days just to attend our annual Transmission EXPO.  Most years, the EXPO was in Vegas, but not every year.  One year we really blew our budget when the EXPO was held in Washington, D.C.  OUCH!!

    Tell me your story on training or continuing education.  

    Costs are rising, and every shop owner needs to make the decision on where to spend and how much. Events like the R+W can be valuable in terms of knowledge and networking, and morale. 

    As for the P/L, there needs to be a line item for Training and a budget. That budget will depend on the level of your team and your goals.  I would look at my total overall expenses (not including tech pay), and my goal is keep total expenses no more than 40% of total revenue. You business model, was different.. 

  3. The fact that inflation is under control is a good thing But that does not mean that the normal operating expenses have gone down. In fact, rising rents, utilities costs, insurance costs, etc. are much higher today than just a few years ago, 

    How will you as a shop owner respond to this economic situation? And what about your employees? They are feeling the pain of increased prices too. 

  4. 16 hours ago, TheTrustedMechanic said:

    Not to mention if they want to get a bank loan or a credit card or anything that might depend on their "income." Sure, it might feel nice to have that "extra cash," but anyone who wants to or is willing to work "under the table, " or "off the books" is really cheating themselves, including shop owners who skim the cash payments and only report what has a paper trial, ie checks and credit card receipts. I mean, cash payments aren't that big of a piece of the pie, are they? So, what's the big deal if I take the cash from quick jobs, it's not hurting anyone is it? (For the record, all italics are meant SARCASTICALLY and I am in no way advocating it.)

     

    You bring up great points. To add to your comments, this mindset of hiding cash also gives the shop owner a false sense of financial security, and leading to so many other negative consequences, as you mentioned. 

  5. 17 hours ago, Transmission Repair said:

    I've said it before and I say it again, we use our Google PPC advertising radius to "throttle our business."  Normally, we would be listed at the top of a Google search within a 5-mile radius of the shop.  If it got slow, I would increase the size of the radius.  If we got slammed, I would even pause our Google PPC ads altogether.  If it got slow, I would increase the size of the radius.  The largest I've ever gone with our Google PPC program is a 100-mile radius.

    I know beyond a shadow of a doubt, the Google PPC program works for a transmission repair shop.  That's because, in our line of work, it is transactional-based.  How it would work for other automotive businesses, where it's usually relationship-based, I can't say for sure.

    If anybody wants to know that this works, make sure you get hooked up with a call-tracking company and use call tracking where you know, beyond a shadow of a doubt, it's either working or not working.  This is true with any type of advertising.  Each lead source has a different tracking number.  Otherwise, every phone call is just that, another phone call.  You have no way of knowing the source of that sales lead.  Without call-tracking being a part of any advertising campaign, advertising is just another bill you'd rather do without.

    Interesting point. Your business model relied on this strategy. For many long-established business, retention through delivering a great customer experience is also a solid strategy. For many business models, it's more cost effective to retain customers. However, every business needs an infusion of new customers too. 

  6. 20 hours ago, DUFRESNES said:

    Good morning.  February was a record month.  The Service writer kept saying February stinks, had to eat his words.  March we are full for the day and after, but don't have the long term waiting appointments.  Still a good month.  We send out rebate letters in 3 mailings Feb, Mar and April.  That helps us ins the winter months easing into summer

    .  

    Sometimes perception turns into reality. I have seen this all too often, "Feb is always slow, there is nothing we can do." Just by thinking this, it become the reality. A key thing you did was to be proactive, not giving in to the mindset that Feb stinks. Great job!

    When I was in business, we had a plan starting in Sept to flood Jan, Feb and Mar with Service reminders, backed up with reminder phone calls. Again, be proactive, not sit on your hands!

     

    • Like 1
  7. This may be a sensitive discussion, but many companies, especially restaurant chains, are considering Dynamic Pricing - Charging hire prices for meals during busy times. Hotels and airlines have been doing this for years. 

    I am not a fan of this, but I am being naive? With rising costs, and rising cost of payroll, is this something the auto repair shops should consider? 

  8. 10 minutes ago, newport5 said:

    I'm not a fan of scheduling the next appointment because "I" don't want to schedule anything 6 months away. I GUESS if it's in their appointments, when 6 months comes around, its a nice reminder.

    Every shop has different needs, I get that. My feeling is that too many consumers today don't think about maintenance as they once did. Some drive well over a year and over 12,000 mile without an oil change service, tire rotation, etc.  And then when the maintenance light (or sometimes the oil light) comes on, that drives them in for service. 

    I guess what I like to see is what dentists do, for the most part they schedule your next cleaning and checkup, it's a maintenance visit, to avoid things going wrong, It also helps to control the schedule. 

  9. 2 hours ago, Transmission Repair said:

    Different shops tend to write/sell labor by whatever method makes them feel the most comfortable.  I'm no different.  Behind the scenes, we calculate the number of hours X hourly labor rate.  However, on the printed estimate or invoice, we show a lump sum with the quantity of ONE.  That way we don't get into any discussion about the number of hours or how much we charge per hour.  If anyone asks, we simply say, "We don't charge by the hour, we charge by the job."  End of discussion.

    Since I've retired, I let my Adobe subscription lapse so I don't have a way of redacting a sample estimate to black out the customer's personally identifiable fields.  Please bear with me as this estimate was written 11 years ago.  You can see from my sample estimate exactly how we did it.  We did give the customer his AAA discount because that's how we got the job in the first place.  I never got into an hourly discussion with any customer.David Breding Revised Estimate.pdf

    I may have missed my point.

    I have shop read and heard on podcasts that if the shop creates an estimate for a check engine light analysis at 2 hours billed to the customer, but the tech finds the problem in one hour, the shop adjusts the labor down to one hour. MY QUESTION is, if a customer is billed 3 hours for a Water Pump Job, but completes it in two, we would never reduce the price. Right? So why do it on a Check Engine light or similar job. 

    I hope I am making sense. 

    • Like 1
  10. When a tech completes a timing belt in 3 hours, but the job is billed to the customer at 4 hours, we don't reduce the labor charge.

    BUT, if we project a check engine diagnosis to take 2 hours, but the tech completes the testing in 1.5, why do so many shops reduce the labor charge to 1.5 to the customer?

    We need to get away from selling time, to selling what the job is worth.  We need to factor in that highly complicated jobs require your top tech (the most expensive too), the most expensive equipment and information programs, more service advisor time to explain, and have NO part profit.

    Your labor rate also has to be based on your top tech's pay rate, plus your average gross profit percentage added to your labor rate, at minimum. 

    Your thoughts, comments, opinion? 

     

     

     

  11. I know two things about booking the next appointment. First, many struggle with it. And those that do book the next appointment at car delivery increase sales, maintain car counts, and have a better ROI. Why, they focus on the customer right in front of them. We all know that retention is less costly than new customer acquisition.

    So why do so many service advisors struggle with this?  

  12. 19 minutes ago, Transmission Repair said:

    Your advice is a sound strategy.  However, a lot of younger techs who become shop owners may not agree.  Our industry needs people like you, who also train.  Keep doing what you do.  Invaluable advice.

    I appreciate the feedback and the kind words.  My father would often tell me, "We get old too soon, and smart too late."  

    On of my core beliefs and purpose is to continue to help others in any way I can. And I am sure you feel the same exact way

    • Thanks 1
  13. Many shop owners are not aware that if they pay a bonus to their employees, that bonus may be subjected to overtime laws. There is a calculation that must be used if this pertains to you. Contact your payroll company, and/or a human resource professional to make sure if you are in compliant with labor laws for your state, and they can also help you calculate the correct overtime. 

    Below is a bulletin from a company called SESCO, a Human Resource Company. 

    image.png

  14. The fear of raising prices, both in labor and part margins, always brings an element of fear. This is totally understandable. However, that fear may not be real. 

    The first strategy when pricing is to ensure that you build value in what you are selling. If the perceived value is low, price becomes important. If the perceived value is high, price begins to fade as an issue. 

    Additionally, understand your key profile customer. You know who they are. They are those that throw their keys on the service counter and say, "Fix it, I'll be back at 5pm to pick it up, and no need to call me for authorization."   Remember, you cannot be all things to all people.  

    The bottom line here, is truly the bottom line. You need to charge the right price that ensures you earn a profit. Now, don't misunderstand what I am saying here. Raising prices to overcome inefficiencies in your business is not a sound strategy either. 

    If your production levels are not where they need to be, don't automatically look to fault your techs. First, look for bottlenecks in the service staff, not charging the right labor hours, too much discounting, and not performing enough high profitable jobs. 

    Your thoughts? 

     

  15. 17 hours ago, Transmission Repair said:

    If I could call just one automotive article a complete seminar, this would be the article.  It was a very good article with some absolutely great books to read.

    https://www.ratchetandwrench.com/shop-life/columnists/article/33006771/bennett-10-must-read-books-for-auto-repair-shop-owners

    All great books. Perhaps we should start a Book List Post?  

    • Thanks 1
  16. Ok, I am a little frustrated. My knee has been hurting me for a few months. I finally called an orthopedic specialist group (the largest and most well-known in the area).

    These are the events that occurred:

    1. When you call the office, you cannot speak to anyone. You need to leave a message or go online to fill out a form
    2. I went to their website, filled out the form with all my info, and requested an appointment
    3. The next day I got a call from the office; they wanted to verify my insurance (all about getting paid, NOT my knee pain) 
    4. The person on the phone said that ANOTHER person would call me to schedule an appointment
    5. FAST FORWARD - I have since called numerous times and left messages to get an update on my request for an appointment
    6. Five days later, no call, still in pain...

    This is a reminder to all shop owners to call back your customers. The unknown and waiting is"painful" 

     



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