Joe Marconi

I wonder how many other professionals get grilled and interrogated? When the plumber arrives at someone's house, I wonder how much interrogation goes on? I do think that it is somewhat a personality trait of some people to doubt and question. My concern is that it happens way too much with us due to the image we have.

This appears to be a problem with many shops. A few years back we furnished a roll around tool box for the shop. It had all the basic tools that a tech can used to take care of most small jobs: LOF, mulitpoint inspections, etc. The idea was to have a tool box that can be easily moved around the shop if a tech had to work in a bay that was far from his own box. Also, it would be used for entry levels techs that don't have a lot of thier own tools. We took inventory and set up perodic inspections. Sadly, tools were lost and no one knew where they went. We stopped the program, now everyone is required to obtain their own tools and shop tools are the responsibliy of the manager. Every shop tool is inventoried and we check the list periodically. What bothers me is the lack of respect some techs for their own tools and personal belongings.

We recently had two bad PCMs from the dealer, for a Dodge Van. Drove us crazy. The original had a intermitnent stall, the first replacement had a no start right out of the box, and the second replacement had a rich idle and would missfire under a load. Hey, that makes three, right? The original, the first replacement and the second replacement...

When the day comes that collectively we realize all the true costs of being in business, and when we realize that as an industry to attract the best we need to offer a decent salary, then things will begin to change.

Everyone has their own perception on life and the world around them. This perception becomes reality and it’s the only reality that matters. At least for most. This does not always hold true for shop owners. As shop owners, we don’t always have the luxury of viewing things from our perceptive. There are other people around us and their families to consider. As the owner, and the leader, our concerns and issues take a backseat to the concerns and issues of others. This is something I know we accept and we do our best everyday to look at things from the perceptive of others. For me, it’s been 33 years since I put the key in the door of my repair shop for the first time. And I can tell there are times when I feel like it’s the 12th round of a 10 round boxing match. I am not complaining, mostly because my position does not allow me to complain. Leaders and business owners have to remain strong, positive and put the interest of others before themselves. This is in part what makes a leader a leader; the ability to put one’s interest aside for the greater good of others. However, this makes it very lonely at times. Leaders must have vision and work to not only improve themselves but improve the lives of others. Leaders also must look to praise and recognize the accomplishments of others. Moral building and team spirit become the essential building blocks of any organization. We as shop owners are well aware of this. I am not asking those who are employed to understand all of this. But please, is it too much to ask for just a little consideration and understanding of what WE go through? I am not going to get into all the petty situations that drive us crazy. It really does not matter. I also realize that the words I am putting on paper will do more good for me, and hopefully for you, reading this. It will not, I am sure, change the way many people think and act who simply go to work each day and expect a pay check at the end of the week. Ok, that’s off my chest. I feel better. To be honest, things are not that bad. I have a great family, great wife and three amazing children. I have built a company that I am proud of; a business that was only a dream decades ago. I entered this industry as a mechanic and was transformed into an entrepreneur. I have achieved a lot of the years. And I am not done yet. There is still much more to do and will work hard to achieve my goals and aspirations. Maybe I try too hard. Maybe I judge others by how I was and how I am today. Maybe that’s wrong. Perhaps, I am not the leader I think I am. Leaders must find other potential leaders and cultivate them to become future leaders. Leaders must also be understanding and find the good in others, and not focus on the negative. Maybe I needed to write this tonight to remind myself to stop complaining and get back to work. If something isn’t right, then I should take a long hard look in the mirror. The answer to my problems and questions can be found in the man staring back at me. So, let me get back to work. Yes, a leader can be real lonely at times. But I would not want it any other way!

The other day, the alarm panel at the shop displayed a message that said, “Low Battery”. I called my alarm company and got the owner on the phone. He said that means the battery in the panel needs to be replaced and he would be over in a few hours. A few hours later, the alarm company owner arrived with the battery in his hand, walked over to panel, opened it, pulled off two spade terminals, removed the old battery, put the new battery in place and push on the two terminals. All of this took about one minute, which included saying hello to me and complaining about the Knicks losing to the Pacers. Then he handed me the bill: Labor: $95.00 Battery: $45.00 Total: $140.00 plus tax I did the math and the labor works out to $5700 per hour. What do we get to install a car battery? I know, I know, it’s a ridiculous analogy. But hold on for a second, is it really? Installing a car battery is a lot more difficult than a little alarm battery with push on terminals. Isn’t it? We have the battery hold down to deal with, corroded terminals, corrosion on the tray to clean, a memory saver to hook up to the OBDII connector. And on some cars, like BMWs, we have to register the battery in the computer to insure it will charge properly. And, we have to sell the battery after we spend time testing the battery and the charging system. And what’s the average labor charge for installing a car battery? 25 bucks? 35 bucks? Some charge no labor, just happy to sell the battery and make the part markup. I am having a little fun with this, but the truth is the alarm company owner did the math and knows what he needs to charge to remain profitable. He knows what every service call costs him in time, gas, insurance, workers comp, payroll costs, and other overhead expenses. If this is what he truly needs to remain profitable, then so be it. I only wish we can be as brave at times to charge what WE need to remain profitable.

Welcome aboard John, glad you chose ASO. Looking forward to your posts on the forums.

Very funny, big gas funny!

I would set up a meeting with the landlord. It sounds like the move has potential and worth making. Speak to your lawyer too. Even though the lease is a contract, it can be altered or broken. Back a few years ago, I owned property that I leased to tenants. One of the tenants came to me to break the lease and we worked it out. Hopefully the landlord is open to working things out.

Thank you for posting this again. And thank you for being such an important part of ASO.

Like many other shop owners around the country, Identifix is a great online resource for repair information, known problems, a hotline resource and other valuable information that shops need and use on a daily basis. I can also say that what we pay for the online service is well worth the price. However, there are some out there that circumvent traditional channels and resort to stealing a fellow shop owner’s identity. How do I know this? It’s been happening to me for over a year now. Here’s how it works. Someone will call Identifix claiming to be the shop owner of a targeted shop. He or she will say that they need to verify the user name and password because they are having problems logging onto Identifix. These people will even go as far as using a program that mimics the phone number of the shop they intend to steal the credentials from, so the rep on the line at Identifix thinks it’s a legitimate call. The user name and password is then given to the caller. The user name and password is then sold to other shops and techs (even at dealerships) at a price far less than what we would pay for it. Identifix eventually finds out because they notice that the IP address from the computers are scattered all over, covering numerous states, and the number of users increases. Now, there will always be crooks who want to make a fast buck the dishonest way. But, I don’t know what bothers me more; these dishonest people or the shop owners and techs in our industry that are willing to go along with this cheating. Don’t they realize that this hurts us all? It’s bad enough that shop owners are having their identity stolen, but what does this say about our industry? I know this is a select few bad apples, but it needs to stop. And it will only stop when shop owners chase the S.O.B. out of their shops when these crooks come knocking at their door. Sorry to vent today. But anything that hurts our image and may tarnish our good name is a cause I am willing to fight for. PS: By the way, if you are not using Identifix, check it out and consider it as another informational source. You will not regret it. It is a powerful informational resource and will help you become more efficient and more profitable. Here’s the link: https://www.identifix.com

With all the controversy and turmoil around the world, it’s so important that we never forget the men and women who made the ultimate sacrifice in service to our country. Our great nation enjoys freedoms not found in other countries and we need to cherish the memories of those that fought to maintain these freedoms.

I highly recommend the Masters Course By Eliite. I have been through this course and can tell you it's a winner. It's primarily for service advisors and will make a difference in sales, that I can attest to. If anyone is interested the information is below, or you can alwways contact me. Info on the Elite Masters Program: The Elite Masters Program starts with three days of intensive sales training June 6-8 in San Diego, which is followed by 6 months of guidance from an Elite sales expert to ensure permanent results. This industry acclaimed course has been proven to help service advisors: Turn first-time callers into customers for life! Master customer concerns and put the most difficult sales objections to rest! Effectively sell maintenance, diagnostic services, single point repairs, multiple services and repairs & more! Implement the sales procedures and best practices that are essential to increased sales! Utilize their customized action plans to ensure permanent results! Presenters: Bob Cooper and Doris Barnes of Elite Dates: Thursday, June 6th - Saturday, June 8th Location: Sofia Hotel - 150 W Broadway, San Diego, CA 92101 Learn More at: http://www.eliteworldwidestore.com/affiliate-details/3/elite-masters-program-service-advisor-training.html Contact Number: 800-204-3548

Are You The Boss, Or A Leader? Legendary Green Bay Packers Football coach Vince Lombardi was more than just a coach, he was a leader. Lombardi made average players great and great players even greater. He understood the principles of leadership and how to motivate people beyond the ordinary. Lombardi knew that if he could get his players to think as a team, and focus as one, he would be successful. He accomplished this strategy, wining 5 national championships and the first two Super Bowls before retiring in 1967. Vince Lombardi preached more than football. He preached discipline, integrity, respect for authority and to always strive to be the best. He was tough on his players, but dedicated his life to them. Lombardi lived by many rules; among my favorites: “Chase perfection. If you settle for nothing less than your best, you will be amazed at what you can accomplish in your life.” We are Shop Owners. We are the bosses of our companies. But we are more than that. We are leaders. And with that comes a responsibility to ourselves and the people we employ. As the leader you need to bring out the best in people. Inspire them to work hard to achieve excellence. Create a philosophy of teamwork where everyone knows the vision of the company and all are unified by the same cause. And above all, understand that as a leader you must always do what is in the best interest of your customers and the people that work with you. Vince Lombardi was also a man of character. This one attribute is crucial for us as business owners. Moral Character dictates our culture. It’s who we are as a person. Our moral character will ultimately determine how effective we are as leaders and consequently how successful we become. By the way, the only true way to attain success is to help others around us become successful. I will end with another favorite quote from Vince Lombardi: “Improvements in moral character are our own responsibility. Bad habits are eliminated not by others, but by ourselves.”

The other day someone walked up to the service counter holding a code reader and asked if I would hook up my scanner and give him the code. He said his car was a 1994 Buick and his scanner would not plug into it. He went on to say that all he needed was the code, he’ll do the rest. My luck (or his bad luck), I happened to be on the front counter that afternoon. I asked him, “What do you mean when you say, you’ll do the rest?” He said he would go online and Google the code and get the needed information to repair his car. I couldn’t hold back at that point. I said to him, “Really, you think it’s that easy”? I tried my best to make him realize that it would be in his best interest if a professional did all the testing and inspecting. After a few more words back and forth and his persistence of just reading the code, I finally told him, “No”. He had this look on his face of disbelief. I did ask him why didn’t he go to an AutoZone and he replied that he tried but due to the age of the car, they did not have the right code reader. I ended the conversation by telling him, the only way I will hook any piece of equipment to his car is if I do all the testing and diagnosis and that he will have to pay for it. Again, I got that blank stare of disbelief. He didn’t say a word, and walked out. Was I wrong? Should I have helped him? Or better yet, should I stay away from the service counter???

The one glaring thing I see from your article is how customers are sometimes bounced around from shop to shop. Do you think it’s that way in the medical profession? I guess we hear stories about a wrong diagnosis and differences of opinions among doctors, but why is it that in our industry there is little consistency among repair shops and customers don’t always see value, but focus on price. I have been told by many first-time customers that my shop was the last choice. Not because we were not respected as a reputable shop. On the contrary, our reputation is unmatched. We are known as the go-to shop, but not the cheapest. In fact, our prices probably match the dealer and at times higher. So people with issues do try the cheapest way out. They go to other shops thinking they might get lucky, but end up unlucky. When they come to me, they will often tell us, “I already spent a lot of money on this car from the last three shops, so go easy on me”. Go easy? They never once think that if they came to me in the first place, they would have SAVED money. This industry has many great strides the past few decades. The customer….well…will always be the customer. We, as an industry need to create more consistency. And that starts with intense training and for shop owners, a deep understanding in what it takes to run a business.

The past few months have been an eye-opener for me. My prior perception of Advance Auto Parts is quite different from what my view is today. I see Advance as a company that truly wants to be a partner to the independent auto shops. Advance will be unveiling programs such as Motor Logic (repair information), a Business Management system and a service reminder program what will rival the best out there. In addition, they can help shops with their web sites and much more in the way of marketing and help shops grow. I have been a loyal customer to CARQUEST for decades, but actually that loyalty was to BWP Distributors, the Stockel family that owned BWP and to all the fine people who worked at BWP, from the company reps right down to the store personnel. Advance purchased BWP and it appears that the culture that anchored shops like mine to BWP will be there into the future. I attended a recent meeting where shops go a first hand view on the E-services programs, which will be available to shops very soon. And, I can tell you I was impressed by what I have seen. I am watching the developments very closely and will keep everyone updated.

Last night I took my wife to our favorite local Italian restaurant; a kind of, pre Mother’s Day celebration. When we pulled into the parking lot it appeared that the entire town had the same idea. I did make reservations so I had no fear we would be seated ok. The host told us our table would be ready within 10 minutes. I wasn't finished pushing my chair in when someone walked over and put the bread on the table. Shortly after that the waiter came over and in a really quick voice told us the specials. It almost sounded like those guys at an auction. We needed more time, but he was persistent and game back shortly. We gave the waiter our order and he marched off. It had to be no sooner than a few minutes when the appetizers arrived and it was much long after that the dinners arrived. My reaction was, “Wow, that was fast, were these meals pre-made?” The entire experience felt rushed. We have been to this place many times before and part of the reason we go back is for the experience. The food is always good and we never minded the wait. I guess what I am saying is that the fast service was more in line with a diner, not a fancy Italian restaurant. This got me thinking about what we do, especially customers that wait for a repair of service. What are their perceptions of time? Does time have a factor with our customers with respect to the cost of a job? I know we look at productivity and track time, but how does this equate to the value and perception of the consumer? Can service be too fast?

I think this is how we can separate what we do from others. If the consumer truly knows that what we recommend will save them down the road, they will see that the true cost today is far less than the consequences down the road. We approach T belts this way. People often tell us, "I don't have the money for a T belt". We respond, "Do you have the money for an engine repair, and a tow back to the shop and the inconvenience of breaking down?" Sometimes you need to reach people with the same logic they are using not to do the work. We often tell them it's in their best interest, but their focus is the money. We need to show them that we can save them money. Here's another example, I had a customer come in for service a few months back and we noticed that the wiper arms were loose inside the cowl. When the service advisors told him about it, he said he knew but did not have the money to fix it. The service advisor used that logic to sell the job. he simply said, "Eventually the arms will break off and it will happen in the rain and you will be left with a bigger repair bill". He authorized us the fix the wipers.

Let me add something to this discussion. It appears that there is no real standard with respect to diag time and labor charges among shops. By that I am saying that if we poll shops around the country on how they perform a brake job, wheel alignment, LOF service, T belt job or whatever, I will bet that most of us follow pretty much the same procedure. But when it comes to how we approach the customer with a highly complicated diagnostic issue, we find it hard to communicate to the customer what's involved with that process. Is it because of customer perception? Is it the nature of the job? Is it our fault? Or the fault of too many ads proclaiming "Free" check engine light checks? What ever the reason, the question I pose to everyone is this: As cars become increasingly more complicated, will this non-conformity hurt us down the road? Let me put it another way; there is no one out there reading this that can tell me a brake job is not profitable, right? But I will bet that we cannot say the same when it comes to complicated diagnostic work. Your thoughts...

Do You Know When You Are Making Money? Way back in the 1980s, shops enjoyed a steady flow of broken cars. GM, Ford and Chrysler dominated the roadways and there was a lot of repair work. But, like many shop owners, I was a much better mechanic than I was a business owner. I never really knew the true costs of running my business. I was busy, but not very profitable. I survived, but never really thrived. And, there was never any money left over for my future. Even as I began to understand how to break down a job and look at labor and part margins, I still did not see the big picture. It wasn’t until I physically looked at all my expenses, what I needed to live on, understand money was needed to grow the business and calculate future needs, that I truly understood how much I needed to make to generate true profit. Many shop owners calculate breakeven, but still are short on cash flow. This ends up with a lot of frustration and confusion. Calculating breakeven should be more that merely paying your bills. It should allow enough for company growth, adding money to your retirement account, putting away money for your kid’s education and setting up a cushion for unexpected expenses. You should also factor in your return on investment. That’s right, your R.O.I. Why else are you in business? Unless you have multiple income streams, your business is your sole source of income, which means your life, now and into the future, is dependent upon what you earn, which means: Do you truly know how much profit dollars are needed from your business? Many of us have been in survival mode the past few years. And thinking down the road is not at the top of the list. But, history has shown that economics are cyclical and we need to prepare now for our future. Take the time to go through all your accounts and start building your breakeven and future planning analysis. Start by calculating all you fixed expenses, variable expenses and allow for unexpected one-time expenses. Add into that report all the future expenses you will need; retirement, R.O.I., kids’ education, that boat you want to buy, etc. When you truly know what profit you need, you can begin to work on your business to achieve your goals. If you don’t know, you will always be wondering, “Why don’t I ever have enough money left over?”

In the days of leaded fuel, points, carb adjustments and adjustable timing, you knew when your car was running differently, which meant a tune up. Today, even with the check engine light, the driver may not feel a difference with the way the car runs. Unless there is a hard failure, such as a coil or injector, the computer adjusts. Then, as you point out, what pain hurts the most? The car's or the wallet. The only hope we have is if we convey to the customer that by not taking care of the problem, the pain in the wallet will be worse.

Gonzo, what do you consider a diagnosis? Let's say you have an EVAP code and you need to do extensive testing. How is that handled?

We hold in-house ASE clinics in our shop. Today I was doing a class on alignments and found it amazing that when the techs (youger techs) are not in front of the Hunter computer screen, they struggle with knowing which way to move control arms to adjust for camber and caster. Years back we had to know the alignment angles in our head, not relying on the computer. These new machines are much faster and more accurate, but is there a trade off with respect to technician actual know-how?

This is a topic that always brings up a lot of great points and a lot of tension. It is an area where lots of profit dollars are lost and I have personally seen great shops go out of business because they did not adopt a profitable work flow process to maintain enough labor dollars to pay for tech training, tools, equipement, and information systems needed to diagnose these rocket ships on wheels we work on today. With that said, and I am going to choose my words very carfully hear, if shops do not undertand the "costs" related to system testing, they will not survive. A MRI or X-ray cost what it does becuase of all the technology and costs associated with that test. Not the "time" it takes to peform the MRI or X-ray. We need to sell testing, not diagnosing. I see service advisors that have no issue with charging 1.3 hours for a pad and rotors on a Corrolla,which requires no expensive tools, a low skilled tech and no special training, which takes 30 to 40 minutes to complete....but struggle with an $89.95 labor charge to test a check engine light which takes your top tech with expensive equipment and training and a whole lot more time. In other words the "costs" associated with testing complicated systems are far greater that other repairs such as brake work, steering, suspension, etc. I am not going to dictate policy or tell anyone how to run thier business. Please let me know if what I say makes sense and keep this dialouge going. It's a critical topic that affects us all.