Joe Marconi

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.

So many consumers do not understand the concept of paying for diagnostic testing. We still charge for diagnostics testing, but we stay away from the words, labor and time. We have adopted the process much like the doctor. For example, when someone comes in for a check engine or air bag light or ABS light, we offer them the initial scan at no charge. We explain that until we have a direction, giving prices on diagnostic testing is difficult. After we scan the computer and access the trouble codes, we then prescribe what tests are needed and explain this to the customer. The charges are for the tests only. Much like a doctor ordering lab tests and an X-ray. We explain that after the tests are done, we will discuss the results and what will be needed to repair the car. This has worked really well since we started this plan about 4 years ago. It stopped all the up front push back from customers. In fact, it allowed us the make a profit on diag testing. Now 9 out of 10 people go forward with the tests; as before, we spend WAY too much time trying to explain and justify diag testing, and many people walked away. One thing to note, your best customers will never argue price, ever notice that?

Welcome to ASO! Don't be a stranger, we are all here to help each other.

We stock an extensive line of oil filters, cabin filters and air filters. It is rare that I don't have a filter for just about any car on the road. We do a lot of service work, many of them while-you-wait (by appointment). Cabin and air filters are a great add-on sale. When you show a customer a cabin filter plugged with decaying leaves or a mouse nest, it's an automatic sale for us. Look at the type of business you are doing. I am not a fan of increasing stock, but if it improves production and increases sales, go for it.

It would be nice to be able to walk out to a car or scan a car in for the first time in the bay. This will save time getting the needed information and speed things up. We see a lot of first time customers. The service advisor can get a jump start on the work order while the tech is doing his work.

I agree with you. People do business with people. When you create an atmosphere where people feel good about doing business with you, they also begin to have trust in you. The better the experience, the more odds the customer will return. Everyone likes to be recognized, even customers. It's makes them feel good. When customers know how much you appreciate them, it will go a long way to establishing long term customers. In addition, this will set you apart from so many other businesses, who show little to no appreciation for anyone. Lastly, don't forget to thank the people you work with. Like I said, everyone likes to be recognized.

It always amazes how people make bad decisions over and over, but take their shortcomings out on the person who is trying to help. We have all been down this road, and it's a real bumpy ride!

No, still typing in VINs. I am looking at Key Link from Advanced and have a demo version that I am using. But, don't know if it has VIN scanner option. The other concern is wireless.

We use MechanicNet. The people are great and very helpful. Just make sure that your colors and logo are on all post cards and emails. You always want to brand your company over and over again. Brand awareness is perhaps more important than the offering on the card or email.

Welcome and the best of luck! Looking forward to you participation in the forums.

I too have made countless notes while working with the old books. I grew up those books. It's hard to imagine the way things were back then. With no IATN, Internet, Identifx, etc. As far as Labor Guides go, or Labor "Misguides", as I like to call them. Please, we are held hostage to these guides way too often. I have a totally different way of thinking than from most. If my tech takes an hour to test and diagnosis a complicated electrical problem and another tech is doing a brake job that takes an hour, are they both worth the same, with respect to labor rates? Let me put it another way...It takes 2 hours to cut and trim my lawn. It also takes two hours for some brain surgeries. Are THEY BOTH worth the same because they both took the same amount of time. Labor rates and labor time must be redefined. Sorry for go on and on, but you got me started Gonzo, it's your fault (all good stuff, right?)

First of all, the best of luck to you. You post addresses a lot of issues, maybe too much to answer within the forums. But, let me try to offer my help. I have been in business for 33 years. One of things that I have learned is that we sometimes focus too much on the price and what everyone else is doing. You need to charge what you are worth, and make a profit. You need to understand the balance between being profitable and competitive. But with that said, if you market your company with a focus on price, that is all the customer sees. For example; People go to Wall Mart for the everyday low prices. That's because Wall Mart markets themselves that way. You don't have to be the cheapest and don't promote price. Find what makes you different and unique and promote that. Part mark up is another issue. We target min of 50% overall, even with dealers parts when we can. But we work on a matrix, getting more for lower cost items and less for higher cost items. We do not give a warranty if the customer brings their own parts. But, this is rare for us, we discourage anyone from bringing their own parts. That is not my customer. I never worry about labor rates, I am usually the highest in my area. But again, I don't promote price, I promote value service, long warranties, money savings maintenance packages, convenience, shuttle rides home, lifetime protection on major components and many other feature benefits. The more perceived value, the less price becomes an issue. Think of McDonalds....now think of a fancy Steak House......two totally different perceptions, right? One last bit of advice. I also learned that being everything to everyone is a sure way to fail. I have found that the narrow the market I target, the more profitable it is. Understand you key profile customer and take care of these. They will bring you the greatest amount of return and send more people like them. Again, best of luck!

Seven ways to lose a customer My experience on a recent trip to Chicago prompted me to write this week’s tip: After punching in my information at the self check-in, my boarding pass stated that I needed to see an airline agent at the gate for seat assignment. Confused and annoyed I headed to security and then on to the gate. At the gate I found three, that’s right three, airline personnel. They went on with what they doing, totally ignoring me for 5 minutes until I finally spoke up. What happened next was an example of the very worst in customer service... So, from my travel experience with American Airlines, here are six ways to lose a customer. Hopefully you will never do the following: When someone approaches the service counter, ignore them Never make eye contact with the customer As the customer speaks, stare into space. Make no gestures, no comments, just stare away with indifference After the customer has finished speaking, continue to stare, don’t say a word If the phone rings, pick it immediately and turn away from the customer at the counter. Oh, and act real friendly with the caller on the phone. Without addressing the customer’s concerns, tell the customer, “Hold on” and walk away When you return, ask the customer, “Ok, how can I help you” Believe it or not, this is what happened at the American Airlines gate. And the airlines wonder why they are not profitable?