Joe Marconi

At the recent I-CAR conference in Boston, it was revealed by representatives from the NHTSA, The Insurance Institute for Safety and the Center for Automotive Research that there is a tidal wave of technology coming that will change the collision industry. By the year 2050, all cars on the road will have collision avoidance technology. How will this affect the collision industry? Does this mean that will be no, or nearly no collisions in the future? One thing is for sure; technology will change the entire auto repair and service industry. And it will happen sooner, not later.

We have seen an unusual high failure rate of steering racks recently; three in the last few months. The rebuilder of the racks is Cardone. Sorry Cardone, you may not like this post or my opinion. But I have had it with doing jobs over again and over and damaging my reputation in the process. I know these are rebuilt units. I know Cardone has a long history in the industry. I have bought their products for decades; but not anymore. The cost of comeback is too great these days. The loss of revenue is one thing; the loss of a customer's confidence is even greater. And let's not forget the customer's safety. I was on vacation in Chicago when I got a frantic email from my customer, a women who lost her steering over the Labor Day Holiday. We installed the rack last week and she picked up her car this past Friday. Again, Cardone, are you listening: "Lost her steering". There have been other issues with Cardone steering racks in the past. And I don’t think this is an anomaly. Other shops are experiencing the same issues. We need to have faith in the parts we purchase. The motoring public must have faith in us; if that the trust is broken we all fail. There’s no other way to put it: Comebacks kill.

I know if techs are active on Linkedn. It's a thought. I do agree that it should be easier now to find techs. Even when all those new car dealers closed in 08 and 09, I did not see any real increase in techs looking for work. I guess anything is worth trying. Let us know how you make out.

Welcome to the world of business. Ups and downs are to be expected. As you grow your customer base, the downs won't be as bad. Perhaps the best thing you can do is to make sure you take care of each customer. Speak with them about any future services. Make sure they are coming back to you. Every car in your shop will need a future service, the question is where will they be going? Do all you can to book the next appointment and follow up with any recommendations. Make sure you do a complete multipoint inspection on all cars. And one last thing, do not try to be everything to everyone. To build a solid business will take understanding your key profile customers. Take care of them, they will become loyal and bring more of the same customers. Hang in there! We all go thru the same things. All of us had to pulled from the ledge more than once in our careers.

A full house? Nice analogy and so true. It is truly amazing how different parts of the country go thru the same set of cards, and are affected in very similar ways. I was fearful while reading the article that the full full house theme turned into a house of cards....that sometimes happens too. Thanks anyway have a great holiday weekend!

This is when I question how advanced do we really think we are as a species , very sad to see

Employee behavior outside your shop can affect your reputation I got a call the other day from a fellow shop that needed to vent. He runs a big shop and gives his techs a lunch break every day from noon till 1pm. His techs got into the habit of going to the local mall and hanging out in the parking lot; smoking cigarettes and often getting a little too loud. They were not causing any real trouble, but it just didn’t look good. Someone finally called from the mall to complain and said that many of the business owners at the mall are afraid that this is affecting business. The techs were also not too careful about the cigarette butts. The shop owner was furious, disappointed and embarrassed. He asked me what he should do. I suggested that have a talk with everyone at the shop. Sit them down and explain to them that when they wear the company uniform they represent the company. And everything they do, even on their own time, may affect the reputation of the shop. If that reputation is damaged, business will suffer; especially if the business is in a small community. Everyone in the company should be accountable to themselves and to the company. I think this is a lesson for all of us. We need to be careful of who we hire and how we communicate the culture of our companies.

Speak to all part's reps in the area, other shop owners and trade associations. They can guide in the right direction. Sometimes there are local companies that can help you with bulk oil and other items. Good luck!

I assume you are not referring to in-house credit. That you should never do. Only exception is for fleet accounts and other municpal accounts. We do offer GE 90 day same as credit and the Goodyear Card - up to one year if a customer spends over a certain amount. As far as increasing sales, I am not sure if it will do that. People are extended as is these days. And another form of credit may not be the best choice. If you use the credit option when someone does not have the money, it's out of desperation and many will get declined. And again, never become the bank!

Does anyone advertise on shopping carts at your local Super Market? If so, has it been effective? I go shopping with my wife a least a few times a month, and have done it for years. I have to admit, I know that there are ads on the shopping carts, but I have never looked at one and can't recall the name of any business on the carts. But, I want to keep an open mind. I realize it is a form of brand awarness, but would like feedback from fellow shop owners.

I think anyone interested would have to do a little homework on the price and on what each tool can do for their particular shop.

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!