Joe Marconi

Gonzo, very interesting; the things we take for granted are not so common in other parts of the world.

Sometimes it takes a trip to a different part of the world to bounce us back to reality. We all know the best things in life are things you could never put a price on. Great article and great to have you back.

I guess I caused a lttle confusion with my testing diag policy? Let me explain. If a customer comes to us with a check engine light, one of the first things asked is, "How much will it cost to fix" or "How much to diagnose it". Years back I would tell the customer to read the codes and diagnose the problem is $xx.xx. That would lead us down a path of no return, "How Much, just to see what's wrong? Will you take the diag fee off the repair? Other shops don't charge diagnostic charges!" On and On and on. Soooo, now when the customer comes in with a check check engine light, here is the process: Educate the customer about the check engine light Inform the customer that until we access the on board computer, we really do not have a direction We inform the customer to access the codes, a road test (if possible) and visual inspection will be performed at no charge After the intial checks, we will then discuss what testing is needed to start the diagnostic process We then sell the tests after the intial no charge checks Perform the tests that were authorized We get back to the customer after the tests are done We sell the repair End of process There are other variables, such as more testing needed, intermitent problems, etc. But this process has been a gold mine for us. We give a little in the beginning, and we end up selling the needed tests, with very little push back, if any, from customers.

This post in a follow up from a post I made a few weeks ago directed to part companies about the part quality issues we are experiencing in our industry. As I stated in the post, this is an industry problem and we cannot put blame on one part supplier. The purpose of that post was to attract attention from part companies. I have received calls from reps from a few part companies. They explained their view on the part quality issue. CARQUEST and Cardone came forward to take the time to speak with me. And to be fair and balanced, I think that we need to address the entire issue. There are always two sides to any situation. Although there are many shop owners that want to sell quality and care about reputation, there are shops that only care about price. I dont really know how this started, but for years now we have entered into this race to bottom with respect to price and is part of the blame the shop owners that put too much emphasis on price alone? And to make matters worse, this reduction in prices has eroded the profit margins of part companies, suppliers and shops too. In the end, we all suffer. So the question is; do we really want cheaper part from CARQUEST, Advance, NAPA, OReillys, AutoZone and other part companies, knowing that low prices may also affect the quality of the parts we install in our customers and familys cars? We are now in a situation where there are no real solutions. Too much of what we sell comes from countries where labor is cheap and accountability hard to monitor. I dont know have all the answers, but I do know that putting all blame and responsibility on the backs of the part companies is not the answer. Perhaps we all need to take a long hard look in the mirror.

Yes, we do charge a diagnostic testing fee. We must. We knew from the sound of the engine and the way that is was running that it was an engine related problem. We sold a compression test, leak down test and once we determined the cylinder, we went back to the customer to ask for time to remove the valve cover. The customer was actually greatfull at that point, for not just doing a decarb. Many shops fear charging for diag testing. If explained correctly you will not have the a problem. We always give the customer a visual inspection and a road test, with pulling any codes and a consultation before we start, for no charge. But, after that we sell Diagnostic Tests...not time...we don't sell time. No likes to buy time. You go to the doctor with a pain in your shoulder and the doctor orders an X-ray. You pay for the X-ray, not time. Then, as with a doctor, we disucss the results of the test and then the repair to get the car fixed. Make sense? Oh, the only fear I have with diag testing is doing work for the wrong customer. Again, when explained correctly and offer them a visual inspection and consultation first at no charge, they are fine. The ones that I cannot reach...well...Starbucks does not sell everyone coffee...does it?

I appreciate all the posts from everyone, and keep them coming. Again, I want to emphasize, we should NOT make this an opportunity to bash any aftermarket parts company. Our part suppliers do a great job everyday servicing us and for the most part help us thrive in this very tough marketplace. I speak for many shop owners when I say we fear that the quality of parts is a big issue today. This dialogue is an effort to hopefully reach the right people and maybe we can start to solve this problem. I know it won't be easy, but someone must start. This is an industry issue. And as I stated before, if the consumer perceives that aftermarket parts are not the same quality as OE, we are headed for trouble. The dealers will pounce on that perception and use that perception against us. Lastly, we the shop owners need to be honest with ourselves too. Is part of the problem the fact that too often we ask for lower prices? Has this gotten out of hand, and are we partly to blame? If we are ever to solve this problem, we need to ask the tough questions for all invloved.

I agree Frank (xrac). We just had a customer reffered to us by two other shops for a decarb service. He wanted a price for a decarb induction service and fuel system cleaning. He actually mentioned the other shops. We were recommended because we use BG products. We refused to give him a price until we saw the car. Make a long story short....he had a broken valve spring! After a few more questions, the reason he was calling around for a decarb and fuel service is beacuse he READ ON THE INTERNET THAT HIS CAR MODEL HAD CARBON ISSUES!

I hope not. But I can't help believing that if a shop owner is going to engage in bidding, it stands to reason that in order to win the bid, he will price the job cheaper than normally would. The other thing I am trying to get my head around is the fact that consumers upload photos and give other information to the site. The shop then has to make a decision based and give a price on partial information. It's sometimes hard when the car is in front of you, let alone thru photos and communications from the consumer.

From what I understand, Repair Jungle charges the shop a fee that gets the bid. But I agree with you. This opens up the door for price shoppers to choose the cheapest shop. Is that how we want the consumer to judge us?

Our strategy is similar. We calculate all the behind the scene expenses: shop rages, cleaners, wire ties and other misc. expenses and amortize those costs into all the jobs we do per year. We then know how much more per job is needed to cover those costs, plus a little more. The customer only sees parts, labor and tax.

The average age of passenger cars in the U.S. is increasing, according to the marketing firm Polk. Both passenger cars and lights trucks have been increasing steadily since 2002. The average age of passengers now stands at 11.4 years and 11.3 years for light trucks. This trend is expected to continue, which should open up opportunity for aftermarket repair shops, especially as the economy improves.

Sorry, I don't know much about that system. Hopefully there are members that do.

That is Gonzo! Hey Brad Pitt, watch out!

Internet auto repair bidding is here. There’s a new online service called Repair Jungle, recently launched this past January. Its market area at the present time is Washington D.C., Virginia and Maryland. Repair Jungle is a web based service that allows shops to compete for jobs through a bidding Process. Now, are you ready for this? Consumers upload photos, describe the problem, give other vehicle information and local shops can bid for the job. Is it me or does this sound a little over the top? Fred Yu, the founder of Repair Jungle says, “The goal is drive down prices and drive up customer satisfaction by creating a competitive market place for automotive repair.” There are 70 repair shops signed up and the service reaches 1,000 customers, thus far. Please reread Fred Yu’s statement, “…drive down prices and drive up customer satisfaction…” Hey Fred, “You can’t have both, please choose one of the two.” My first fear; we are headed in the wrong direction. We are not discounters, nor do we market our shops solely on price. What type of customer does Repair Jungle target? Yes, you guessed it, the price shopper. And are shops so desperate that they will bid for a job, just to get traffic to their bays? If shops engage in this form of marketing they are telling the consumer: Please judge me on price alone. Not quality, not service, not the culture of my company, but on price alone. Bidding may work for commodities, but what we do is hardly a commodity. My worst fear? More and more shops will sign up for this. Please, tell me your thoughts on this one!

The last thing I want to do is to support the new car dealerships and give up on the aftermarket companies. In all fairness, Cardone reps have called me with these issues and they invited me to their next tech council meeting. They know they have problems and do not want to loose the confidence of the independent repair shops. I don't know how this race to bottom with respect to pricing started. Maybe is our fault, maybe not. I really don't know. But with low prices came low quality. I have been around the block more than I care to share, and I can tell you a rotor in 1990 was not the same as it is today. And it cost anywhere from 50 to 90 bucks, or more. Now we are getting rotors that are made in China, shipped in containers across the ocean and it cost 17 dollars? Really? This is a good thing? And most shops wonder why their gross profit dollars is eroding more and more. We made more gross profit dollars years ago then today. I am talking GP Dollars here. Not percentages. The percentage you are making is the same, but I pay my bills with dollars not percentages. We all need to get back to quality. I hope this country wakes up. I don't want to bash other countries like China, but it is clear that too much of what they produce is inferior. And we are putting these parts on our customer cars, our family cars and friend's cars. It has got to stop.

Source: Cardone Part Failures: Rack and Pinions

As long as the car is being towed to me, I don't ask for money up front. I never did in all the years in business and never had a problem. I create a line item for towing on the invoice. All the tow companies in my area have a wholesale rate and a retail rate. We make a few bucks on a tow, not much. But, it's not a profit center for me. A typical $80.00 to me, will cost the customer $100.00. I do ask, what the retail price is, so that we are line with what the tow would be to the customer.

Jim, I started this post because I want the right people to read it. I am not looking to bash any part company. But we need to get back to quality. I am doing all I can to bring these issues to the aftermarket. And I will not give up. Our future is not buying from the dealerships or OE, but our future also rests on the quality of our service and repairs. Thanks to all, keep posting!

About a year ago we became a AAA Approved Auto Repair Shop. AAA has one of the most recognizable logos and the organization is one of the most popular in the country. We have had reasonable success with the program, but would like to expand on marketing the program. The AAA Approved program is fairly new in New York and would like to hear from other shop owners around the country about their successes in promoting the program. Thanks in advance.

The first question I have for you is, "how did you find out about it". The reason why I ask, is to be sure you can trust the source. Then again, if this person is poking fun and trash talking behind your back, this is a problem. Gossip and trash talk about the boss or fellow workers is poison and should not be allowed. I am sure most of us were brought up the way I was; "If you can't say anything good about someone, don't say anything at all." I would approach the person, but be very careful and be professional. This person will know that someone in the shop "turned him in" and this may lead to other issues. Morale is what I am concerned about. In the end, they are only words and maybe this person has issues within his own life. He is lashing out on you either out of jealousy, because you ARE the boss, or he may feel inadequate with himself. It is most likely not about you at all, but about himself. Above all, this is the time for you to be a true leader and rise above all pettiness.

I get a chance to speak to a lot of shop owners around the country. While there are many mixed reviews on the economy, for the most part independent repair shops are doing well. Many have been holding their own the past few years and a surprising amount of shops are actually recording increases in sales. How is your shop shaping us for 2013? Let us know how the last few years have impacted your shop and your area.

Plan Now for 2014 With one more quarter to go in 2013, this is the perfect time of the year to start your review of the 2013 and start making plans for 2014. Speak with your accountant to get a projection of how 2013 will impact your tax situation and other important business considerations. Don’t wait to the start of 2014 to access your 2013 tax liabilities. By then it’s too late. You should also do a review of all your expenses, deductions and current budget. Start now making adjustments to your budget and calculating your breakeven. And remember, breakeven is not just the number you hit to pay your bills. Your breakeven must also include return on investment, paying backing any loans, putting away money for future, planning for unexpected, and reinvesting in your business.

That is a great question. I am also looking at all the new products Advanced has to offer. So I guess we will both be checking things out. As far as saying know, that is so tough. I have learned thru the years that it is important not to say no to the customers that are your profile customers. We have been in business for 33 years, so for us we have a lot of history with a lot of customers. We try to leave a few slots open each day for those top premiere customers. We also learned that you cannot be everything to everyone, if you try you end up disappointing a lot of people.

This past week we installed a set of brake rotors and pads on dual rear wheel, 2005 F550 Dump. Those of you that have done this job know that this it is considerably more work than a passenger car. On the road test we heard a scraping noise from the wheels. It would come and go and sometimes even go away when you applied the brakes. After numerous times pulling the brake rotors off (which is very time consuming) we could not understand what was happening. We did see marks on the backing plate where we believed the inside of the rotor was hitting. We decided to call the supplier and order another set of rotors. We installed the new rotors and the noise was still there, but different. Again we removed the rear brakes and rotors to take a look. We tried repositioning the backing plate, but no luck. I could see my techs and manager was getting frustrated. I told my manager to order a set of pads and rotors from the local Ford dealer. We installed the Ford parts and the noise was gone! The back of the aftermarket rotors were not the same quality as the Ford Rotors. I am not going to say what aftermarket part company I bought these parts from, because I feel the quality of parts these days is an industry problem, not isolated to just one company. But I do have a personal message: NAPA, CARQUEST, Advance, O’Reilly’s, AutoZone and all the rest…Wake up! This race to the bottom supplying us with cheaper and cheaper parts needs to stop. It is killing us. In your effort to give us a cheaper part, you are compromising quality. You can have cheap parts or quality parts, but not both. Choose one! It’s not just one part line; the problem of poor quality is rampant. The automotive aftermarket repair shop was always known for its quality. Now we are in jeopardy of losing that status. If the consumer’s perception of aftermarket is subpar with new car dealers, this will be our demise. I urge shop owners to also take a long hard look at this issue too. If we focus on cheap part prices only, the race to the bottom will be littered with casualties. PS: I have heard all the arguments: overseas cheap labor, competition from China, the unions in the USA, shop owners want cheap parts, if we don't have cheap parts we will loose business, our margins are thin as it is, we are forced to go to foreign countries. DID I FORGET ANY??? All these excuses will not amount to anything when we fail as an industry.