Joe Marconi

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.

If your shop is in New York, you need to go to this site and read about the new laws concerning installing new and used catalytic converters. The new law goes into effect June 1, 2013. I am surprised there isn't more press on this subject. New York is adopting California regulations. http://www.dec.ny.gov/chemical/87411.html

I understand what you are going through. I am in the same boat; Three service writers being charges as mechanics. The workers comp board and the government have no clue the difference between and service writer and a mechanic. Tomorrow is the appeals hearing with the workers comp board in New York. I will testify and do my best. But we all need to contact our elected officials and explain to them the difference between a mechanic and a service writer. It's hard enough today to run a business, without the added cost of unnecessary workers comp insurance. What are you going to do, raise prices to offset the increase in workers comp?????

This bill, if passed, will have a big impact on business in general. I think Best Buy is praying it goes through.

Welcome aboard! Don't be a stranger, we are all here to help. Also, use your marketing background to help grow the business. Set yourself apart from the rest. Find our what makes your different. Good luck!

Even after all these years, I still enjoy waking thru the tool truck and looking thru the tool catalogs. I have tools that I have saved that were my father's. One in particular is a Snap-On half-inch ratchet. It must be over 60 years old. Still works, but keep it mostly as a conversation piece. As long as there are machines and mechanics, there will never be enough tools for us, something new will always be needed.

That's a good question. People that are loyal to most independent repair shops trust the purchasing decision of that shop. Unlike some people that go to the new car dealer becuase they percieve the OE part to be better. Of course we need to use quality parts and stand behind our work and products we sell, but when you can get your customers to trust you, it makes all the difference.

The other day one of my service advisors dropped a car off at the local dealer for a recall. We were doing some routine work for the customer and she told us about the recall, but said she had no time to take it to the dealer. So Mike, offered to take it to the dealer for her. When Mike returned I asked him how the experience was. He said, “Not that good”. He went on to say that that the service advisor never made eye contact, appeared uninterested and spoke in a monotone voice. My first reaction was, “Wow, great news for us”. But then it got me wondering how many independent shops around the country are delivering customer service? Everyone who has contact with the customer must be trained in the art of Customer Service. And constant training, just like on-going technical training is crucial. Another thing: Be careful who you put on the service counter. I have made a few big mistakes in the past by hiring the wrong people, which cost me dearly! The Automotive Management Institute (AMI) has great courses in management and customer service, and of course Elite (the company I am affiliated with as a business coach/consultant) also has great resources. What about other shops, where do you get training, what training have you done and how do you hire service personnel?

I have been around long enough to see the evolution of the traditional repair shop. More and more the question of management comes up. But, who should manage the shop and do we get training for this? Plus, if we are to hire a manager, what qualifications do you look for? For me, I am just too busy to try to run things by myself. A few years back I made the decision to hire a manager and organize my shop in such a way that most of the issues and problems are handled thru the manager. Even when I see an issue, I will go to the manager first to see how it’s being handling, and many times I will stay out of his way. I would like to hear from other shops owner’s about how and who manages the shop. What do you look for and if you do have a manager, what are his/her duties, responsibilities and qualifications.

Update: This past November I was part of a committee which included a few shop owners and the Service Station's Dealers of Greater New York (an Auto trade organization). We met with the NY Compensation Board to explain to them why we are asking for a separate Service Advisor classification. Well, we just heard that we got denied. Their reasoning, (and please keep control of your temper): The board said the business defines the position and therefor the classification, it's not the position that defines the classification. In other words, just because we hire someone as manager or service advisor, it still involves (according the board) repairing and servicing cars, and they must all be lumped into the same classification. Are these people even on the same planet as we are??? If I hire someone to answer the phones and speak to customers that are having their cars repaired, do billing and help write up work orders, this person is subjected to the same potential hazards as a mechanic? This is insanity on the highest level. We have another meeting scheduled in May, but I am not too optimistic. I will keep everyone update. In the meantime, shops like mine are paying a lot more money on workers comp than it should!

Scott, we gave out the first Kindle and started using the program this past Thursday. We gave it to our lead tech, who is also the best at multi-points in our shop. The other techs are already wondering when they will get their Kindles. I really think this will help us to go to the next level and create a more efficient work flow process in everything we do. Again, great job! Oh, by the way Scott, my manager also said, "Hey Joe, why didn't you think of this!"

There is a local Valvoline Quick Lube near me that does not appear that busy. I wonder if it's just this location or are quick lubes going thru a change in their customer base? I know one thing that strikes fear in the quick lube industry is the extended oil change intervals and the fact that many people pay more attention to the maintenance light than actual mileage. How are quick lubes around the country doing?

There's also the issue with the dates of those used tires. We often replace tires because some elderly people put so little miles on the car, but the tires may be over ten years old. When we take these tires off the tread still has a lot meat, but I would not trust them. Just my thoughts on this.