Joe Marconi

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.

http://www.socialmediaexaminer.com/social-media-case-study-victory-auto/ Above is a link to a great article that I know you will enjoy reading and learn from.

AMEN! AMEN! AMEN!

Not bitchy at all, in fact I am working on an article which I may publish that is very, very similar. As I stated...in an industry issue. Gonzo, write as you wish...we ALL look forward and can relate...ok?

When saving the customer money; backfires! A few months back a customer came in with a broken seat frame on her Honda Pilot. The car has over 150,000 miles on it and the seat frame broke through use. Replacing the seat frame, with labor, would be well over $1100. My foreman recommended welding the frame, saving the customers hundreds and hundreds of dollars. Two months later the car returned. The seat frame broke in a different spot. Explaining this to the customer is difficult. She paid for a repair and wants satisfaction. The service advisor informed her that the seat frame broke in a different spot and that we were looking to save her money by welding the frame, as opposed to replacing it. She asked why she was not given a choice. After a few go-arounds with the customer, the service advisor told her we would credit what she paid on the weld repair toward the job of replacing the seat frame. She was ok with this. The lesson here is to clearly explain to the customer all the options. Don’t let your first inclination to “save” the customer money influence you into not letting the customer decide what the repair should be. Present all the options, the pros and cons, and have the customer be part of the decision making process. You can certainly give your opinion, but there are times that you should not decide for the customer. Plus, we need to clearly state all the options on the invoice and review again at time of car delivery.

Source: When saving the customer money; backfires!

This is a classic example of one of the pitfalls in our industry. Too many other shops are too ready to discredit another shop. And all too often not all the facts are addressed. One of the things we can never expect is for the consumer to take responsibility and have them hold themselves accountable. Consumers will always look to seek the blame of others. Perhaps the most disturbing is when you see a customer that knows you for years and has trusted you for those years, jumps ship and are under the spell of someone else they have just met. What makes this other person they have just met, the automatic expert? Isn't the years of building a relationship strong enough to overcome this? Apparently not, I guess my statement is a "Paradox"

Mitchell1/Shop Key5 will be holding another work shop in Jacksonville Florida on Oct 3-5. If you are itnerersted, below is a link for more information. http://www.buymitchell1.net/form/m1usersinfo.htm

One of the nation's largest corporations is 105 years old. General Motors (GM) was conceived by William Durant of Flint, Mich. Durant co-founded Chevrolet — named after noted racing car drivers Louis and Gaston Chevrolet, originally from Switzerland, and Durant promoted Buick to prominence on early racetracks. Over the years, Durant headed — and then lost control of General Motors not once, but twice. In addition to Oldsmobile, GM has made several brands that are no longer around, including the Marquette, Oakland and LaSalle. In 1908, when GM was founded, there were just 198,000 cars and trucks in the U.S. Today, domestic manufacturers produce that many cars alone in just over 25 days. Source: Babcox Aftermarket News http://www.aftermarketnews.com/Item/118279/this_day_in_history_general_motors_founded.aspx

Sadly, with some people, price is a game. But paying our bills is no game and we need to make a profit. Now with that said, we would all be a lot better off if the entire industry did not focus on price as much as it does. Every TV ad that has anything to do with auto repairs uses the words: discount, low price, cheap and other words to draw consumers on price. Those who know me know that I always preach; if we brand ourselves on price, we will die by price. My shop is not Joe's Discount Auto. It can't be. In order to discount I would have to hire low skilled workers, use cheap parts, work on certain cars, target masses of people and limit the amount of services we offer. That means I become a Wall Mart type business. After 33 years here's what I have learned about price and business; The more I narrow my focus and target the customer I want, the more profitable I become. Don't be everything to everyone, understand your key customers, and take care of those key customers as if they are family.

We often take a customer’s car to the dealer when we discover the vehicle is under warranty. We prefer to take it ourselves, because the dealers are like vultures and too often my customers come back with a ton of service work done, much of which we already performed! Plus, it's no secret that the dealer wants my customer. Yesterday I took a Subaru with a warranty reprogramming recall back to the dealer and as I pulled into the service drive, there was a big sign that stated: We’ve Lowered our prices! Under the headline listed these services: Oil change service $19.95 Wheel Alignment $59.95 Tire rotation $9.95 These prices for my area are cheap. In fact, the average wheel alignment in my area is $89 to $129. This is more proof that the dealers are trying everything they can to increase business in their service bays. My hope is that they price themselves out of business. Now, will many shops lower their prices to match the dealer? I hope not. If the dealer wants to position their brand on price, let them. Do not enter in that "race to the bottom." Remember, think of your best customers. You know, those people that never question price and throw the keys on the counter and say, "Call me when the car is done". These are the customers that you need to base your business on. These are also the customers that rarely question price. I know that the last few years have been tough on everyone, but we still need to maintain who we are as a brand. Do the things that have made you a success. And remember, your best customers don't continue to go to for your price. Recognize WHY they are loyal and build your business around that.

Very interesting!

So true and too funny. It's maddening when a family comes in and everyone tells you a different version of the what's happening with the car? Even worse, each family member asked one their friends and now each of them are telling you the different stories of what each of the friends told them. Amazing, but like you said, you gotta laugh, being in this business, we have seen it all, that's for sure.