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Everything posted by Joe Marconi
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How to scare away a customer...
Joe Marconi replied to IntegrityAutoCare's topic in Customer Experience & Reviews
I feel for you. We have all been down this. I have customers I can't get rid of for decades now. No matter what I do, they keep coming back. They argue, shout at me, tell others how expensive I am...but they keep coming back. I do know a guy from the Bronx that can take care of her for you...you know what I mean? Just kidding, want to try to cheer you up! -
We don't teach people how to change oil or any other repair of service. We might show people how to replace wipers blades, but that's about it. We make it informative: how to save money on fuel, how to extend the life of your car, why rotate tires, warning signs of trouble, what to do when you get into an accident, how to prepare for a road trip, getting your college kid back to school ok. The topics are endless. The clinics are short too, about an hour. Leave room for questions. If people are asking question, that's a good sign.
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Liability/Workmans Comp Insurance Price
Joe Marconi replied to Pjauto's topic in Shop Insurance, Certifications, Laws, Legal
Depends on the state, number or techs, office people, owners (they have a different class). I hate to tell you what I pay, but it's well over 20K! -
This really is a tough topic. But I will bet that many shops around the country are having the same problem. You have a few issues to overcome. First, you bring up a classic example of how co-branding two different business models, confuses the customers and ends up more destructive than helpful. Once the community brands you, it is hard to overcome this. I would study your best current customers. Speak to them and find out why they come to you and ask them how you can reach out to more like them. I too think that you need to get more involved with the community. Let them find out who you really are. Lastly, you need to do something that is so different to your place that people will turn their heads and say, "Is that a new business". Let me tell you a quick success story. In the next town over from me on a main road is this restaurant. For years, owner after owner failed. Why, the first owner of the restaurant went bankrupt and the new owners after him never changed the look. Changing the name was not enough. Until someone with a brilliant marketing idea came along. This guy repainted the outside and created a totally new look. He also featured a southwestern theme. Something totally different and it made him stand out. The place is packed now, and on weekends you need a reservation. Just a few thoughts, good luck and keep the dialogue going. Let see if we can brainstorm too.
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We created posters for the customer area, along with a sign-up sheet on the front counter. We gave each customer a flyer about the clinic when they picked up their car. We talked it up a lot with all customers at the counter. We also did press releases in the local newspapers and radio. News media loves community content and will promote it for free. Just ask. A few weeks prior we send out email blasts to our customer base. We get 20 to 30 people on average at each clinic.
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Is Flat Rate the Future for Shops?
Joe Marconi replied to Joe Marconi's topic in Accounting, Profitability, & Payroll
When a tech is hired we monitor and track the production hours sold against what the tech works. We do this for 4 to 6 weeks, depending on the level of the tech. We then get a base, (the average the tech produced in that time). For example; if a tech works 40 hours and is averaging 35, that becomes the base, or the min level of expectation, he needs to make before he makes a bonus. Anything after that he will get another hour of pay for each hour produced. So, if he books 40 hours in a 35 hour week, the tech will get another 5 hours pay. But the goal is to get the tech to 100% - for every hour worked. We raise the bar each month until the tech reaches 100%. We like this because the tech competes against himself. We don't set the min standard, the tech does. The techs like it because they are motivated to earn more, but will also get paid for the hours they work. Again, if a tech works 40 hours and produces 45, the tech will get paid for 40 and a bonus of 5 more hours. Hope this is clear, if not let me know. -
Anyone know or Use MotoLogic
Joe Marconi replied to Joe Marconi's topic in Management Software, Web Sites & Internet
Advance is working on the lack of coverage. It is getting better and better, but will take time. Advance wants this to work and is doing all it can to insure that. I think that by early next year we will see great improvement. -
Why Make Follow Up Phone Calls?
Joe Marconi replied to Joe Marconi's topic in Joe’s Business Tips For Shop Owners
We do make the calls during the day. When I did all the calls years back, I did them in the evening and I felt I was intruding on the customer's time. Plus, it meant staying late. The advisors dedicate time to make the calls in a private office. There is not particlar time, they look at the schedule and coordinate it among themselves. They make comments on the invoice about the call and I review the comments. -
Here are interesting facts from the AAIA (Automotive Industry Aftermarket Industry Association) 2012 Aftermarket Factbook, with regard to the typical DIY (Do-It-Yourself) consumer: -Is a single male -Between the ages of 50 and 59 -With some college education -A white collar worker -Has an anuual household income between $30,000 and $49,000 -Drives a car older than 15 years and has more than 150,000 miles on the odometer Is this consistent to what you see?
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Anyone know or Use MotoLogic
Joe Marconi replied to Joe Marconi's topic in Management Software, Web Sites & Internet
They Are. Advance Auto, who owns Moto Logic, will soon bring to the us a lot of great programs: Management, Training, customer retention programs and more. Stay tuned, there is a lot on the way, very soon. I will be reporting it as it develops. -
ASE: Still Not Recognized By The Public?
Joe Marconi replied to Joe Marconi's topic in Auto Parts Banner Programs
When we speak of success and taking care of our customers, every aspect of the business needs to be considered, and ASE certification and continuous training is part of it. I know, I know, I know...I have heard ALL the objections: The cost, there are great mechanics out there that are not ASE certified, ASE does not mean you can really fix a car, the public has no idea what ASE is, on and on and on and on. Every profession requires some sort of training and certification. You can't cut hair without a license, and yet you can hire someone off the street tomorrow with no accreditation and he can repair your mother's or sister's brakes??? Is this the industry that shines with professionalism? Business is tough, I have been around the block more times then I care to admit. I have seen a lot in my 40 years since staring as a mechanic straight out of high school in 1973. I too have many reservations with ASE, but the more we move to an industry with standards and raise the bar, the more respect and compensation we will receive. -
Congratulations and best of luck in your new venture. I am going to assume (the term Super Man is a tip off) that you are probably a top notch mechanic. That's good, and equally important for business requires a profound understanding of the business side of running an auto service center. The trend toward more general repairs from former transmission shops and other specialty shops is a growing trend in many sectors of our industry. The combined knowledge of your future partner and yours will compliment each other nicely. My advice for you and your partner, get everything down on paper NOW. Even though you are a partnership, you need to clearly define each other's roles, job descriptions, tasks and responsibilities. Base this on each other's strengths. And, don't overlap this plan. For example, if you determine that on of your responsibilities will be in keeping track of inventory, cores, returns, then only you should do it. Divide and conquer. Also, create a business plan, with as much detail as possible. Success is in the details. There is so much info on this site and don't forget about the blogs and articles too. Good Luck again! And stay in touch!
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When speaking to customers I often reference the medical profession. Imagine calling a doctor on the phone and telling him, "Hey Doc, I have this pain in my head, what's wrong with me and BEFORE you see me tell me HOW much it will cost." The reality is we need to adopt the diagnostic approach similar to the medical profession. Doctors sell Tests or a series of Tests to arrive at a conclusion. The tests are separate from the repair. We, in our business, too often tie it all together and too many shop do not charge correctly for testing. To reach a proper diagnosis requires proper tests. Not charging enough is, in my belief, a major area of concern and hurting the overall profits of the typical shop.
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We have a wall poster too, plus the techs and advisors will also check with Mitchell and Alldata. We have a system which is part of the techs work sheet that requires the tech to ID any and all wheels removed. The tires that are put back on must be torqued and observed by a fellow tech or a service advisor. The observer must indicate on the techs work sheet that the wheels were torqued. The tech will chalk each tire he torques; we call it "Torque and Chalk" method.
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When we send out recommendation emails and postcards, there is $10.00 rewards discount for spending over $100 and $15.00 for over $150.00. Follow up, recommendations, booking the next service,making follow up calls, are all great ways to keep a constant flow of customers coming thru your bays.
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From what I have learned in my business, "Don't follow the crowd". Like your mother told you; "Just because Tommy jumps off the roof, does not mean you should". In marketing you need to differntiate yourself from others. By immating others, you become a copy cat. All those that are offering free stuff and deep discounts will get those people that are looking for cheap. And contrary to what EVERYONE seems to be saying these days...not everyone out there is look for cheap and free. Another thing, if you make price your "brand", you better be armed and ready for a tough long fight, and you will loose the war. Customers will always tell you price is a concern and everyone wants to spend less, that's human nature. But it's not the only reason or the real reason why your KEY customers come to you. We went down the road reducing prices, waving diag charges and cheapy coupons. Car counts stayed the same, customers stayed the same, profits went down. I am now back to running my business BEFORE the recession and making money again. Just my thoughts, hope it helps. Find out how to bring value, promotion packages, preventive services and reward programs. And pay attention to your key customers. They will give you the greatest return!
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ASA, AutoInc. Top Ten Web Sites
Joe Marconi replied to Joe Marconi's topic in Automotive Parts & Suppliers
That is interesting. Social media plays a part in many facets of our daily lives, business and personal. -
The Affordable Care Act (ACA) requirement that large employers (businesses with 50 or more full-time equivalent employees) must offer health insurance to full time employees beginning Jan. 1, 2014, or face a fine, has been delayed one year until Jan. 1, 2015. Read the entire article: http://www.searchautoparts.com/aftermarket-business/searchautoparts-advanstar/news-distribution/aca-employer-mandate-delayed-until-?cid=95879 What are your reactions? Is this a sign that there is push back from large companies? And what about many unions that now do not support Obama Care? Will this affect us? Your thoughts?
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That is Funny....I am going to use this joke...thanks for the laugh....needed it today!
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The son of a long time customer asked to speak to me. The mother brought her Lexus in for a check engine light issue. The car needed an O2 sensor. The sons issue was over the diagnostic charges. He claimed that even the dealers dont charge for diagnostic testing. I let him speak, without interrupting him, until he was finished. When he was finished I asked him why call me now after all the years the mother has been a customer? He told me that nothing seemed out of line before and as a matter of fact, we saved the mother a lot of money over the years because my services and oil changes are lower than the dealer. So, I asked him: How is it, when I charged less money, you never called me to let me know that? He laughed, but I said, "I'm serious." He laughed again and he did not have much to say after that. I ended with, "The policy at the dealer or another shop has no bearing on my policy, but please keep checking my charges and I do expect a call the next time I UNDERCHARGE you." The conversation ended on a happy note, thankfully!
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We got a call the other day from someone who asked us if we would give her a second opinion. The car was at another shop and she wanted to know if the diagnosis on the steering rack was correct. She actually wanted us the give a price and make the diagnosis on the phone based on the notes from the shops work order. We have been down this road before and we are VERY cautious on how we handle this. I dont know how you feel, but when someone doesnt trust another shops diagnosis, it makes it very awkward for us. We want to get all the facts and try to drill down to find exactly why the customer does not trust the shop. In this case, after a series of questions from my service advisor, we found that the callers brother-in-law checked the car before bringing it to this shop and he said the pump had failed, not the steering rack. The brother-in-law works in construction. Seeing where this was going, the service advisor insisted on having us look at the car before any second opinion is given. He also said that he was inclined to believe the other shop, not the brother-in-law. She said she would call us back to make an appointment. My guess? Shes probalbly calling other shops right now.
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Why Make Follow Up Phone Calls?
Joe Marconi replied to Joe Marconi's topic in Joe’s Business Tips For Shop Owners
We have been making calls for well over 10 years now and the only issue we had was from a customer who did not know the person from my shop making the call. As we grew I could not make all the calls myself and I handed the job off to one of the office workers. The customer called me to say that there was a disconnect because he felt that the woman in the office really did not know him. After that I made it policy that the service advisor who took care of the customer call the customer. There is a direct relationship and it works fine and it has helped us grow the business. The only time we call people to sell recommended work are those customers that at the time of car delivery we set up a time and day to call. If the customer tells us that they will contact us, we respect that. However, we do ask if they would prefer a service reminder, if they don't want us to call (either by email, text or postcard) and every customers says yes. -
Owner's Manuals - - Who writes them? Who reads them?
Joe Marconi replied to Gonzo's topic in AutoShopOwner Articles
I never could make sense out of the "Owner’s manual". I don't know many car owners that read them. Perhaps a better name might be the "lonely manual", or the "Forgotten Manual". And, I often wonder it the only time someone does crack it open, is when a mechanic looking for information. -
Is anyone a paid member of Angies List and if so, how is it working for you? Here's a link for more info: http://www.angieslist.com/
