Joe Marconi

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.

Source: Don’t lose sight of what’s most important

One of the reasons why I built my second shop was due to the perception that we did not perform oil changes. It was also true that I was not convenient for that service. Many of my customers came to me when they had a problem. For tires and oil changes, they went to a more convenient national chain. We had six bays at the time and busy most of the year. I had property on the same block, so I opted to build another 4-bay facility instead of dedicating one or two bays from my existing shop. The business model for the old shop remains the same: Heavy repairs, engines, transmissions, diagnostic work, brakes, etc. The model for the new 4-bay is to cater to those customers who prefer to wait for oil changes, we do tires, alignments, scheduled maintenance work, and other minor services. We DO NOT brand ourselves as a quick lube and will not speed thru an oil changes service, or any service for that matter. I can tell you that the plan was a success and we captured our entire customer base for all the oil changes and minor work. We also increased our tires sales and increased our market share. Car counts nearly doubled. Adding the oil change concept in to your business is a good idea. Things to take into consideration: the size of your shop, your productivity ratio, car counts and if you are losing too much of your customers. One more thing: if your shop is at capacity, the phone is ringing off the hook and you business model is working, be carful about dedicating an oil change bay(s). Taking away a bay that produces high profit maintenance and brake work is more desirable. It's the old saying "don't try to be everything to everyone"

Yes, truly a classic, and real fun to read!

It's unfortunate, but I have to agree with you Gonzo. There are many shops that work hard to make their shops credible. However, as you stated, it does not amount to much unless as an industry we are accepted as credible. Have you seen the new AutoZone commercials? The voice-over starts out, "Be proud of what of what you did". But they are talking about DIYers doing their own work on their own cars, and not referring to a pro. How in world can we gain credibility when those in our own industry make no distinction between the Professional Mechanic and a weekend warrior? And all to please Wall Street. After reading your post the whole issue with ASE is the same issue we have been battling for a long time: To be accepted as a credible trade that takes a great deal of training, talent and investment. We will keep the fight going. I will be the first to run up the hill....any followers?

This has been brought up before, but I would like to see what other shops feel about RepairPal. Consumers can check average pricing in their area and look for shops that are registered with RepairPal. What bothers me is the price estimating. We focus too much on price already. That's not the way to brand or market a company. We have to be competitve, I realize that. But a company must also bring something unique to the marketplace. If we are all juged by price, the consumer will choose on price alone. Is this good, bad, indifferent or what? Here's a link to the site: http://repairpal.com/

Do You Have, “Loss Of Business Income” Insurance? I recently read about a repair shop in Texas that burned down to the ground. A tech was removing a fuel tank and a spark occurred while using an electric impact. No one got hurt, but the fire was bad enough that it closed the shop for a while until it was reconstructed, and destroyed a few cars. The owner had liability insurance, but not Loss of Income Insurance. This type of insurance would have helped the owner and the employees during reconstruction. If you do not have Loss of Income insurance, I would urge you to speak to your insurance agent. You never know when tragedy will occur and you need to protect youself and the people you employ.

John Wooden, the legendary basketball coach from UCLA, once said, “In my forty years of coaching, I never took a shot at the basket, never scored a point and never made a rebound. That was not my job”. John Wooden understood his role as a coach and the role of his players. We, as shop owners need to do the same. For too many years I wore way too many hats. This notion that I, because I was the “Boss”, had to be the best technician, the best service advisor and essentially the best at all positions was ridiculous. This way of thinking leads to burnout and disappointment. Learning your strengths as a leader is crucial. Knowing the strengths of others in your shop and helping them become better is a gold mine. Thinking that the world surrounds us and that we need to have our hands in every element of the business will lead to our demise. When the second baseman is not performing, the coach does not take his place on the field, he gets another second baseman. Once we assume the role as business owner, our life changes. If we don’t clearly define our role and all positions in our company we will not succeed. Trust me, until I realized that it’s the people around me that leads to my success, I struggled daily. Running a shop is not easy. It’s perhaps, one the toughest jobs out there. But it can be rewarding both financially and emotionally. Work on your role first, and then go to work making others around you better at what they do. Your happiness and the happiness of others depend on it.

This sums it up: Professionalism!

Here’s a tip that might save you a lot of aggravation. One of my techs installed a new A/C evaporator in a 2003 Toyota Highlander. All went smooth until he pushed the A/C button on the dash when he got finished. The A/C button did not light up and there was a code for no communication between the A/C control module to the BCM and to the Dash Cluster. Going thru the troubled charts and pin out charts led to a failed A/C Controller Amplifier. My manager was not ready to order the A/C amplifier, stating that everything was working prior. He felt that something had to go wrong in the reassembly process. He was right. It turns out that there are two identical connectors, one for the vent control servo and one for the max air control servo. They are close to each other and interchanging them is an easy mistake. Switching the connectors was the fix. Two things we learned: The tech needs a review on carefully marking all connectors and we need to be real careful when interpreting trouble flow charts.

John Wooden, the legendary basketball coach from UCLA, once said, “In my forty years of coaching, I never took a shot at the basket, never scored a point and never made a rebound. That was not my job”. John Wooden understood his role as a coach and the role of his players. We, as shop owners need to do the same. For too many years I wore way too many hats. This notion that I, because I was the “Boss”, had to be the best technician, the best service advisor and essentially the best at all positions was ridiculous. This way of thinking leads to burnout and disappointment. Learning your strengths as a leader is crucial. Knowing the strengths of others in your shop and helping them become better is a gold mine. Thinking that the world surrounds us and that we need to have our hands in every element of the business will lead to our demise. When the second baseman is not performing, the coach does not take his place on the field, he gets another second baseman. Once we assume the role as business owner, our life changes. If we don’t clearly define our role and all positions in our company we will not succeed. Trust me, until I realized that it’s the people around me that leads to my success, I struggled daily. Running a shop is not easy. It’s perhaps, one the toughest jobs out there. But it can be rewarding both financially and emotionally. Work on your role first, and then go to work making others around you better at what they do. Your happiness and the happiness of others depend on it.

It seems that in shops across this great land of ours, the shop radio is a constant tug of war between the owner and some techs. I don’t understand why some techs value the radio so dearly. I enjoy music too and I really don’t mind music in the background. However, when the music becomes more of the focus than working on cars, I have a problem. I set strict rules with respect to volume and choice of stations. Recently, in my maintenance shop, we had a tech that constantly worked on his “play list”, The volume inched up little by little and he spent way too much as a disk jokey than I could tolerate. We had to put a stop to it. I asked the manager how he felt. He said to me, “You know Joe; the radio is a privilege, not a right. If they can’t understand that, it’s their problem, not ours.” So, how do you feel about the radio, and how do you handle this issue?

All I can say is thanks! You brought me to tears with laughter. And it's all true. You have a gift Gonzo! You really do, my friend. Keep the articles coming, it's part of my Saturday routine!