Joe Marconi

Perhaps one of the best forms of marketing is old fashion word-of-mouth. When a customer comes in saying they were recommended by a friend or neighbor, our job is half done. The referral from another customer is sometimes more powerful than advertising. We make sure that we thank the person making the referral and send them a thank you card. What we don’t do is ask existing customers for referral names or ask customers to send us new customers. Maybe I’m wrong, but I feel as long as we do our job right, provide world class customer service and create that memorable experience for our customers, this is all that is needed. Does anyone actively ask customers for referrals or ask customers to talk to friends and neighbors about your shop? If so, how do approach a customer?

I know that this is becoming an issue around the country, due to accidents and techs not knowing the proper way to set up a car on a lift. We created an in-house base on Rotary's safety's check list. I need to find out the requirements for certified inspections. Here's link to the Automotive Lift Institute for more information: http://www.autolift.org/

Trust your ears; listen and write exactly what the customer says That’s the advice I preach to my service advisors. I remember a few years back I overheard a customer give a 5 minute explanation of a no start problem. When the customer was finished, the service advisor typed on the tech word order: “Check battery." Boy was I furious. Customers give you clues to the problem. Do not translate or change in any way, the thoughts and words of the customer. Take the time to listen and write down exactly what the customer states. About 10 years ago, a customer, Dave Bell, came in saying that every time he passes Mrs. Murphy’s driveway, the transmission would slip. I took the car out on a few road tests and found nothing wrong. I gave the car back to him and he returned 2 days later insisting that it had something to do with Mrs. Murphy’s driveway. After a little detective work I learned that the problem only occurs in the morning. Each morning he would back the car down his driveway. Then he would put in drive and proceed down the block. Then he made a stop at the corner, turned right up a steep incline where he passed Mrs. Murphy’s driveway. There he felt the slip. It had nothing to do with poor Mrs. Murphy, but everything to do with the steep incline. Obviously he had a transmission issue. I learned long ago not to discount what customers say. Your ears can be an important part of the diagnostic process.

Oh boy...it's been a while....I can feel my anxiety level rise. It is truly amazing how customers expect us to be perfect. Doctors aren't even revered that way! Our feet are held to fire each day. And we all know how we go the extra mile, even when it results in unbillable hours, just to get it right. Thanks Gonzo, just when I thought this would be a relaxing weekend, you bring this up... (just kidding, great article, as always...It would not be Saturday without the Gonzo Report!)

Welcome to ASO! You have made a wise choice. The shop owner members are amazing. You will see. Best of luck!

"Forget the dog, beware of the owner!"

If the sole purpose to speak with one of your mechanics is to gain information or pick his brain, I would not allow it. Unless the customer is planning to bring the car to you and would like a consultation prior. The problem is also that a tech is not a service advisor. And although the tech may have good intentions, he may not phrase his words properly. For example, the customer may be complaining about a noise while driving, and the tech may say, "that sounds like a wheel bearing, not too bad of a job on that car." What's not too bad? Not a hard job? Not too expensive? What if the labor is 1 hour, but the bearing is 600 bucks? Just be carful. We often consult if we trust the customer's intentions. But, we always have a service advisor present. Hope this helps. BTW: It's a problem everywhere.

All great information! One more thing I can add. With tires you need to be competitive, but price is not the only concern. We sell a lot of tires and we know that we are not the cheapest. We track all local tire stores, Sears, etc. But we offer the customer benefits that differentiate us from the competition, such as: Lifetime rotation, road side assistance, road hazard, flats fixed free, etc. We focus on the benefits, not the price. You will be surprised at how many of your good customers will not worry too much on price. I know I cannot compete on price all the time, but I can compete on benefits.

According to a recent Wall Street Journal report, more baby boomers are buying new cars that were designed for consumers in their 20s and 30s. Cars brands like the Toyota Scion, Fiat, Chevy Sonic and Kia Soul were all cars originally targeted for the younger generation, but have attracted consumers over age 55. Last year, car buyers over the age of 55 accounted for more than 40% of all new car sales. Buyers between the ages of 18 and 34 represented only 12% of new car purchases. For the younger generation, it’s a matter of economics and priorities. They only have a certain amount on discretionary income, and buying a new car is not at the top of the list. And, unlike the baby boom generation, there isn’t the emotional connection with cars as with prior generations. The Y generation, those 18 to early 30s, will become the largest demographics for marketers in the coming years. Car makers will have to change future marketing strategies in order to attract the next generation. In the meantime, the older generation will continue their love affair with cars, at the delight of the car makers.

Gonzo, you make a lot of good points. Let me ask you, "don't you think that sometimes it's a communication problem?" Let me give you an example... I had a guy referred to me unhappy about a whining noise and lack of power. He said that the other shop took care of the lack of power, but the noise is still there. The other shop installed a reman transmission. He went back to the other shop a few times complaining that the transmission is just not right and that he stills hear a noise. The other shop checked the transmission a few times and told him, there was nothing wrong. After hearing his story I suggested we take a road test together. On the road test I could find nothing wrong with the car and headed back to the shop. The customer was disappointed. Then, when I turned the wheel real sharp to park in a parking space, he yelled out, "There it is! You hear it?" I said, "That's the noise?" The noise was from the power steering and obviously he had two separate problems. I suggested he go back to the other shop and clearly explain the noise. He thanked me and I could see relief in his face. This got me thinking to be real carful and listen real carful to what the customer is saying.

This particular story has a number of great points that gets at the heart of many of our problems. We deal with situations where there is lack of competence, lack of communication and a bunch of consumer issues. I can tell you, we also get a lot of these calls, and the last thing I want to hear is, "Hey, I already spent a ton on money on this car and the problem still isn't fix, so go easy on me."

A perfect example of the power of AutoShopOwmer.com!

I get those calls all the time too. Save your money, I agree with Alex. There are other ways to get credit when needed. You should look into LLC or Corp or S Corp, though. It does have advantages. Speak to your accountant and/or attorney.

Hey, I am 5'8 and in my 50s! Just kidding. I had the same thing happen to me. We diagnosed a water pump for a customer a few years back and the customer said that his friend will take care of it. A few hours later the friend is in MY parking lot working on the water pump! Can you imagine the insanity of some people? I told him to stop and leave. This started an argument, but I stood my ground. We do not need customers like that.

I know I speak for all: Olive branch accepted. As we can all see, the dialogue in the posts are amazing. A true testament to the culture of our industry. We have so much knowlegde to share. I know I learn each time I log on to ASO.

I want to remind everyone that Alex and I started ASO in order to bring shop owners together in an open forum to share and exchange ideas. ASO was also created as a means to bring up-to-date information that would be of benefit to all. We are all professionals and we need to show respect for each other. We can disagree and state our side. But, we must remain professional. I started that post about labor and time. I really don’t know how it morphed into an argument. My point was to consider the complexity of the job and what is takes to perform a certain operation. Time can get us into trouble. For example, an hour performing 2 oil changes is a lot different than an hour diagnosing a complex electrical repair. I am positive we can all agree on that. Right? The last thing we need is animosity among the members. ASO has become a valuable source for shop owners around the country. We can all learn from each other. ASO is committed to be the go to business resource in the industry. Please, let us work toward that goal. Unless someone has something else constructive to say, let us move on. Thank you for understanding and thank you for being part of AutoShopOwmer.com Joe Marconi Cofounder

This is a difficult question to answer. There are many variables and different ways to calculate the value of a business. Take for example a 6-bay shop that has no mortgage, owns the property, has not debt, has a big data base and has been in business for 30 years. Now take a similiar 6-bay shop in the same town that has a $6,000 a month rent, has loans on equipment and 3 tow trucks, does not own the property, and has only been in business for 5 years. On the surface they may appear to have the same potential in terms of income and profit. But a more closer look reveals that the first shop is more profitable, and will bring at a higer number. I think this question is best left up to a pro, someone who does this for a living.

Here’s a true story from a few years back worth mentioning: A man walked into a local shop asking for a few small services, nothing big. He said he was new in the town and wanted to start a relationship with a repair shop. When the car was ready, the man paid cash for the services and he went on his way. A few weeks later, he came back asking for a set of wipers, a bottle of washer fluid and check the tire pressure. He also paid cash for the wipers and fluid. The man came in a few more times to price tires and brakes. Each time he would spend time speaking to the shop owner, becoming real friendly. A week went by and the man came in to make an appointment for the 4 tires, alignment and brake work. When the car was done, the man told the shop owner to please lock up the car, he would pick it up after hours and he would be by in the morning to give him the cash. And guess what happened? Yup, you guessed it. The man was never to be found again. The address was false, the name false and the phone disconnected. I don’t know what made me think of this today, but I thought I would share it.

The The Automotive Oil Change Association (AOCA), accompanied by industry allies (the Automotive Aftermarket Industry Association, the Service Station Dealers of America and the Tire Industry Association), is urging members of Congress to insist that the Federal Trade Commision take action with regard to the Magnusson Act. We need to write letters, eamils to these ogranizations and to our elected officials. Below is an article to reference this: http://www.noln.net/article/august-2013/aoca-takes-automakers-magnuson-moss-warranty-act-violations-congress

A recent survey reveals that body shop labor rates have basically remained the same for the past 10 years. The study was conducted by CSi Complete and was released by the Washington Metropolitan Auto Body Association. How does this impact the typical Auto Body Shop? What about employee raises, investing in new tools and equipment? And what about a return on investment for the shop owners? This is disappointing news.

Here is prime example of who we are as shop owners. This is how we go the extra mile. Jeff, thank you for the post. I know that this happens everyday around the country. Shop Owners should be proud of what we do and how we keep the motoring public moving!

In 1975, the U.S. government passed the Magnusson Moss Act. Please read it when you get a chance. Everyone in the industry must know what it is and why it’s important. Here’s a link: http://www.consumer.ftc.gov/articles/0138-auto-warranties-routine-maintenance Essentially, a car maker cannot state that a new car owner must go back to the dealer and/or use their factory parts in order for the warranty to remain in effect. The choice to where a new car owner wants to go for service and repairs is theirs. But, we have all seen through the years how new car dealers and car makers ignore the law, putting pressure on new car owners that if they don’t bring their new car back to the dealer and used dealer parts, they warranty will not remain in effect. This is false and hurts the independents. The dealers use strong-arm tactics that remind me of some of the guys I knew from my old neighborhood in the Bronx. Here are a few examples: Mazda press release (2011): “Only genuine Mazda parts purchased from an authorized Mazda dealer are specifically covered by the Mazda warranty. The original warranty could become invalid if aftermarket parts contribute to the damage of original parts.” Kia Motors technical service bulletin No. 114 (2013): “If the engine oil has been recently changed and a noise condition has developed, perform an inspection of the oil filter and/or customer oil change maintenance records to help you in determining if an aftermarket filter or the wrong oil viscosity was used. If the vehicle is equipped with an aftermarket oil filter, perform an oil change and filter using the correct oil grade/viscosity and a replacement genuine Kia oil filter at the customer’s expense.” BMW MINI Cooper owner’s manual (2013): “Only MINI dealers are to perform oil changes.” BMW provides no qualification or exception to this branded service-tying statement and, therefore, violates MMWA’s prohibition against tying arrangements on its face. FTC takes no action. We cannot bury our heads I the sand with this issue. Stayed informed and speak to all your customers with new cars. We all know that more and more new cars are offered some sort of free maintenance. But, you will be shocked to find that many dealers are SELLING pre-paid maintenance packages. And many are doing it by subtle suggestions from the salesperson, “You should purchase this plan, after all, you never can trust those aftermarket parts, which may affect your warranty.” How do I know this? It happened to me and my wife when we picked up her new Volvo!

An article in National Oil & Lube News tells about a recent study conducted by the Kellogg School for Management at the Northwestern University. The study found that women, who don’t appear knowledgeable about repair costs, may end up paying more money. The study was conducted in collaboration with AutoMD.com They had men and women call for prices for a radiator replacement on a Camry. They concluded that women, although informed on the “market price” of a radiator prior, were quoted higher prices than men. Is it me? There are more holes in this story and survey than a hunk of imported Swiss cheese! What is the reason for this survey? How was it conducted? What shops were called? Please, enough already with bashing repair shops. Do they really think that there are enough shops out there that are going to give prices over the phone? And, those that did, how can they give an accurate estimate? Did all the men and women stick to the same script? And what the heck is “Market Price.” What are well selling, Striped Bass off the docs at Montauk Point? I never conducted a survey, but know a lot of shop owners, and I can’t see shops around the country quoting women higher prices than men! Are there are few bad apples? Probably. But there are bad apples everywhere. Let’s have a survey on how many shop owners and techs stayed late on a Friday night to make sure a soccer mom had her minivan ready and safe for Saturday’s game! Here’s a link to the article. It’s short. Please read it and tell me how you feel. http://www.noln.net/article/august-2013/study-women-quoted-higher-prices-auto-repairs-more-successful-negotiating

You can't imagine how timely your article is. Just this morning I posted in "Joe's Business Tip" and in my Blog, about a friend, a fellow shop owner, who was just told he has brain cancer and has about six months to live. For too many years I fell into the trap you described so well. But lately, I make sure I take time to smell those roses. I do work hard, but it's by choice. In life we need balance. And never forget the things that matter the most.

Don’t lose sight of what’s most important I just received news that a fellow shop owner has brain cancer and was told by the doctor he has 6 months to live. I will leave his identity unknown, for obvious reasons. He is the owner of a body shop in my town; a family man, a Vietnam Veteran and a hard worker. He took over the business from his father in the early 80s. The business has been part of the community of over half a century. His father sent a lot of work my way when I first opened up and was a mentor to me. I was a young 25 year old kid, who thought he knew everything. He showed me the ropes, and I will never forget that. Now, his son, in his early 60s has cancer and is not expected to live. The relationship we had over the years was solid. We became business allies, and friends. It will be sad to see him go. I write this post today as a reminder that life is precious. We sometimes focus on the things that, in the end, really don’t matter. Take time today and reflect on family, friends and life. Make the most out your time here on earth. Death is a part of life. Live each day as if it was your last.