Joe Marconi

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.

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.

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.

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!

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?

That is Funny....I am going to use this joke...thanks for the laugh....needed it today!

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!

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.

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.

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/

Why Make Follow Up Phone Calls? If you are not making follow up phone calls to your customers, you are missing out on a great opportunity to reinforce your culture and brand to your customers. Making follow up calls tells them you care, it builds relationships. It also tells your customers you understand that the relationship you have with your customers does not end when they drive away from your shop. Create a script and decide who will be called. Make this a collective effort with everyone who will be making phone calls. In my shop we make all calls within 72 hours. We don’t call each customer. We call all first-time customers, customer that just had a substantial amount of work done and customers that returned with an issue about work previously done. The person making the call is usually the service advisor who worked with the customer on a particular job. Remember, every point of contact with a customer is an opportunity to make a positive impression with your customer and promote the culture of your company. When people know you care, a relationship is created. And the more relationships you create, the stronger your company.

I just want to add that to base your decision when to change a particluar fluid should not be based on what a fluid company says is protocol. However, companies like BG stand behind their fluids and will pay for a given repair. In order to have this type of program they need to insure that their fuid is being used on a regular bassis. We base our decisions on a number of factors when or when not to recommend fluid services. One of those factors is when a customer tells us that they want to keep their cars at least 8 years and/or 200,000 miles. We just had a customer with 175,000 miles that needed a front differential. It was nice to tell that customer that BG will pick up the bill. The $4,000 worth of BG covergage was more than enough to pay for the repair. And the customer was jumping for joy. It's a complex issue, and I guess each of us must decide what's best for our customers.

Very excited for you and congratulations!!! Speak to your accountant, if you do not have one, get one. A few points to consider: Are you a corporation or a sole proprietor? There are tax issues/advantages to consider. Being a start up you probably have many "one time" expenses, particularly if you financed the company yourself. This is a good thing. So, your return on investment must be taken into account also. I am a corporation. I pay myself a salary each week and also receive the profits generated at the end of the year. One more thing, remain the manager. Work on the business! This will give you a greater chance of success.

A recent stat from carMD states that car repair costs are up by 10%. The average auto repair job now costs $367.84. With this rise, some question; Has technician wages increased also? This is a very complicated issue and misleading if the details are not properly dissected. The past few years have been a wild economic ride for businesses across the nation. And, not just the auto repair sector. In general, all businesses have seen their costs increase dramatically. For us, car parts cost more to purchase, insurance continues to escalate, workers compensation has gone up, utilities costs have gone up, on and on and on. All these factors add to a higher overall repair bills. Now, what about technician pay? Is there a connection between higher repair bils to the consumer and technician pay? In the short answer; not really. We can debate this issue and compare auto technician pay to other industries, but the fact remains that technician pay is a part of the cost of doing business. Tech pay can only go up, if there are enough profits generated. No company, no matter what the business is, can blinding raise payroll without understanding the true costs to running a business. In other words, to pay a technician a certain rate or raise wages, the company must take into account the profit dollars produced. Until our industry collectively increases what we charge to the consumer, technician wages will reflect what we are able to pay. Whats your take on this? Should tech wages be higher and how do you think we should achieve this?

Below is a link to an article from Tire Review Magazine. Theres a lot of confusion with the new health care laws. It's a good article and worth reading. http://www.tirereview.com/Article/114537/health_care_reform_update.aspx

Jake Weyer, Editor of Ratchet+Wrench Magazine has offered me a position as a columnist, which I have accepted. For those who may not know the magazine, Ratchet+Wrench is an automotive trade publication that features the business side of the auto repair and service industry. So, this position is a perfect fit for me. I will be writing a monthly column, which I am intensely looking forward to. It has long been my goal to enhance the auto industry, especially when with regard to shop owners. This will allow me to further my reach and my goal. This will have no impact on my status with AutoShopOwner.com. I am committed to ASO and all our fine members. For more information on Ratchet+Wrench, heres the link: http://www.ratchetandwrench.com/ If you are not receiving the publication, I urge you to do so.

You make great points! I don't think I felt cheated, if that's what he needs to remain profitable, so be it. Yes, I agree, he could have prepare a better invoice to show value. In my shop I emphasize a lengthy explanation for the customer, for that reason. Bottom line, everyone needs to track the numbers and truly know what it cost to be in business and charge accordingly.

Here's one thing to add: You pop the hood, reach in to release the wind-catch and there's a chain wrapped around the radiator support and through the holes on the underside of the hood, preventing you from opening the hood. A lock holds the chain together. No key on the key chain for the lock. So, you call the customer and he tells you, "Oh, I have the key in my pocket, you need it?" You can't make this stuff up!

That's a great question. My best answer is, "It depends". Let's say our road tests reveals a steering wheel shimmy at 55 to 60mph. We would inform the customer that this is a wheel balance issue, not an alignment problem. We would then insist on checking wheel balance and charge for that according. NOW with that said, I may offer an alignment check, at no charge. Just to see if the alignment is within spec. From my experience, 6 out of 10 cars need an alignment anyway. People usually ask for an alignment if they feel a pull to one side or wheel shimmy. If the wheel shimmy is at low speeds, under 25mph, we would discuss with the customer that this is an indication of a bent wheel or out-of-round tire. Again, we would like to check the alignment. Especially because if the car has a bent wheel. The alignment may have been affected anyway. Last point, you should always perform an inspection prior to any work with regard to an alignment, steering, suspension or wheel balance problem.

One of more common complaints about ASE Certification is that the public has little idea what it means or what it stands for. For the most part that’s true. I have been ASE Certified since the mid-1970s. My wife has seen my study for the tests, has seen me go take the tests, knows that our company and ASO endorses and promote ASE certifications. She also knows that my shop is a Blue Seal Shop. But when asked; “What exactly is ASE?” She gives me that blank stare. My wife along with countless others may not know exactly what ASE stands for, but they do know it stands for something of value. I remember waiting in my lawyer’s office and on the wall was an award given to my lawyer form a law organization. For the life if me I cannot remember the organization, nor do I remember the name of the organization. But, I do remember thinking it was a positive thing. How do you feel about ASE and does it matter that your customers may not know what it stands for. And, should we be doing more to promote ASE within our own shops?

This sounds like an interesting idea. Question, how would a shop differentiate itself using this method? If there was some sort of criteria or profile the shop will follow, that would work. As you already know, it cannot be a cookie cutter approach. it must be targeted. I also think that many shop owners shy away from advertising simply because it becomes an EXPENSE, a drain on the business, rather that a revenue generator. Can you give more details? Perhaps a scenario?

That is a tough choice. I have Mitchell and been using it for about 10 years. It's a good program, and easy to use. I don't think Mitchell has kept up with the times, sorry to say. There are many things that were promised to us a decade ago, but never really happened. Well, maybe I should not say "promised", it was more like shop owner suggestions to enhance the program. I am looking at a new product from Advance Auto Parts. Yes, that's right, Advance. It looks like a winner. I will be testing it soon and will give feedback soon. Also, check out Maxxtraxxs, http://www.scottsystems.com/ and good luck!

First, when a customer asks for a wheel alignment, we question the customer to find out EXACTLY what the customer is experiencing. Many times the customer has a wheel shimmy at high speed and thinks the alignment is needed. Don't let the customer dictate your work or sway your judgment, you are the DOCTOR, not them! We inspect every car prior to the alignment along with a road test. That standard procedure. We have different menu prices for: Passenger cars, Large SUVs, Light Truck/Large Vans and Luxury models. Every car gets all 4 points checked and the customer gets a print out. The price is the same, even if only the toe was adjusted. It's a menu based price. If any parts or additional labor is needed, that's extra. For example, on Ford trucks replacing the camber shim on the spindle. Or, drilling out the weld spots on a Ford Windstar and Taurus, etc. I hope this helps.