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Everything posted by Joe Marconi
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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.
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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.
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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.
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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?
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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
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- health care
- health insurance
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(and 1 more)
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Exciting News From Ratchet+Wrench Magazine
Joe Marconi posted a topic in AutoShopOwner Announcements
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. -
How Does $5,700 Labor Per Hour Sound?
Joe Marconi replied to Joe Marconi's topic in Accounting, Profitability, & Payroll
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!
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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.
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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?
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Advertising Measurement Tool
Joe Marconi replied to RobMax's topic in Marketing, Advertising, & Promoting
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!
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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.
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I have seen a lot of situations in this country where the authority has crossed the lines of the constitution. It too bothers me that this country is quite different than it once was. I can't put my finger on it to give you and anyone else an answer. Maybe in our attempt to help the world, we are actually diluting the fabric of our foundation? My grandparents came to this country in the early 1900s to become Americans. They were proud to be American citizens and learned to speak English. As a young child I remember my mother telling my father, "speak English, not Italian, we are in America now. Since then the men in my family helped build this country and help to protect it, starting from the first world war on up to crisis in the middle east. Sacrifices were made, but my family, like so many other families were willing to accept that sacrifice. My father and mother only attained an eight grade education. I graduated high school and my kids went on to college. My grandparents were poor, my mother and father did better and I am determined to do even better. That is the American Way. The way you feel about this country is distressing. Many people perhaps feel the same way. But, we cannot give up hope. We cannot let certain situations serve to turn our backs on the history of the country. Just go back to the start of this country, the Revolution. We can learn so much from our nation’s birth. We need to resurrect the principles taught by founding fathers and reinforce the principles from our Country’s Constitution. Not distort it to “fit” into modern society. No changes need to be made; the Constitution needs to stand just as it was written. I still think this is the greatest country in the world. I am an American. My family tree may have originated in Sicily, but that tree has secured its roots right here in America. And those roots are here to stay!
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I want to wish everyone a Happy July 4th as we celebrate our nation's independence!
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Yelp No Help
Joe Marconi replied to Oviedo Auto Repair's topic in Marketing, Advertising, & Promoting
Have you tried to contact Yelp? I do agree that they want to make money and sell thier service, but I too have reviews on yelp, but have not heard of your particular issue. -
What a find! It's like finding a piece of the past, untouched!
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I am not a fan of government intervention, but I hope New York’s new law requirement on replacement catalytic converters meeting California standards, cure our comeback rate when using aftermarket cats. Many cats are replaced not due to failure or check engine light but because of rust thru on the attaching pipes. After the cat is replaced (which sometimes is half the size of the OE cat) is installed, the car comes back a few weeks later with a cat code. It’s frustrating and bad for business. I know this issue has been brought up before, but are there issues around the country concerning aftermarket catalytic converters?
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Don’t Let A Customer Compromise Policy A women came to the shop a few weeks ago asking for a donation for her son’s baseball team. The woman has come to us for minor service work a few times, but not one of our loyal regulars. After we gave her the donation, she thanked us and made an appointment for her car. It had a check engine light on and “claimed” it was diagnosed at another shop. When she brought the car in for her appointment, my service manager explained to her that we needed to obtain certain information from the on board computer and then discuss what tests would be needed to determine the cause of the problem. She was vehemently against paying any testing charges, stating that the car is already diagnosed and it needs a catalytic converter. She said, “Just put the catalytic converter in, no other charges." When my service advisor asks why the other shop didn’t do the work, she said, “Your shop gave me a donation, so I wanted to show my appreciation and come to you." After a few rounds of trying to reason with the customer and against his better judgment, he agreed to just install the converter. Well, guess what? Yes, the car is now back with the check engine light again, and with the same code. My service manager at this point explained that this would have been avoided if we only followed our policies and procedures and properly tested and diagnosed the car. She stated, “I never told you NOT to diagnose the car, I just didn’t want to pay for the diagnostic charges again.” No amount of reasoning would sink into this women’s brain (or lack of a brain) and we now have to start from scratch to see why the check engine light is on. The lesson: Don’t let anyone sway you away from proper procedure or policy. In the end WE were wrong and now we have to make it right. A lesson for all of us.
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Soon To Be Owner Of A Mobile Auto Repair Business
Joe Marconi replied to DavidMoblieMechanic's topic in New Member's Area
Welcome to ASO and best of luck in your venture. Also, thanks for the kinds words about this site. One thing is for sure, the members of ASO are a bunch of sincere pros. I am proud to be among them. They are the very best in this industry and always willing to help. When we founded ASO I wasn't quite sure of the direction, but the shop owners around the country (and a few from around the world) have proven that they really have what it takes. So, please ask questions and participate. It's the power of networking! -
What a fun article, very enjoyable. One question; How many techs these days even know what a variable venturi carb is? When I worked for Ford in the 70s, I remember going to a training course on those VV carbs, not fun. Always look forward to reading your articles each week, it's like a treasure hunt...you never know what you are going to find!
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I was passing one our “favorite” parts stores this morning and after seeing the sign posted in the window, “Check Engine Light On? Use Our Scanner”, a thought came to mind. Imagine passing a hospital or Dr. Office and you see a sign posted: “Break Your Arm? In Pain? Use our X-ray Machine” I know it may be a silly analogy, but maybe not. Your thoughts?
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Has anyone spoken to their insurance agents in regard to health insurance. I briefly saw my insurance agent at the last Chamber of Commerce meeting and he told me he wants to meet with me way before November, when it will time to renew, to discuss all the changes in the new health laws. From what I see in New York, rates are going up and coverages will not be the same.
