Joe Marconi

I have learned a lot about marketing the past few years, especially about grass roots marketing in my community. In fact, I hold seminars for Elite on marketing and I share a lot of what I have learned. For independents with limited resources, it would be foolish to go head to head with the market leaders in our market areas. In other words if the Toyota dealer is open 7 days a week and gives out loaners cars like candy, it would not be a wise thing to think that I can compete with that. In fact, when a company tries to COPY another company, this is often looked upon as a copycat and you can loose your credibility. Remember, in marketing the company that brings something to the market first will always be considered the expert. It's why we say, "Make me a "Xerox" copy". But, we can take a page from Sun Tzu's, The Art of War, which states: "Win without fighting". So in order to grow in your community, find out what the major players are doing, and don't do any of that. Find out what makes YOU different and what you can bring to your market that will make you stand out. For me, it's my involvement in the community; The Chamber of Commerce, the Rotary, kids sport team sponsorships, Car Care Events, consumer clinics, seminars at the local libraries, local fund raisers, customer appreciation days, etc. This gives me a ton of free press and these are things that the big guys don't do. They never think locally, they are just too big for that. Their business spans a much larger area. So I win with this tactic, and never engaged in any warfare with my competitors. And the best part, it really does not cost that much, and it can work better than traditional advertising. Growth is important for any business, take it slow, one brick at a time. Make the foundation strong and the roof will be in place a very long time.

You know, this happens a lot. Communication between family members can be like the old kids game of "playing telephone". By the time the other person involves gets the story, a lot of key info is missing and a different spin on what was actually stated. About a month ago a father and son came in with a laundry list of problems and the father said, "Please call my son and discuss the issues and prices with him, he needs to make these decisions on his own, he's old enough". Well, when they came to pick up the car, the son's interpretation of what it needed and the price was 180 degrees different from what WE SAID. This led to a lot of discussions going back and forth at the counter. We finally resolved it and the father looked at my service advisor and said, "I guess maybe he's not old enough yet". The son is 18. A lesson for us all. Great Story again Gonzo, always, always enjoy reading them!

Thanks, a lot of what I do is concentrating on marketing. Today, with everyone getting into the total car care business (from dealerships to body shops) we need to differentiate ourselves and make sure we know our target customer base. We also need to identify and take especially great care of our champion customers.

I’m Glad you enjoyed the webinar. For me, rewarding loyalty is better than trying to be everything to everyone. As I stated on the webinar, I am not a fan of discounting, but I have no issues with creating loyalty programs that helps to anchor my top customers to my shop. You need to first start with identifying your top customers and understand that these customers will bring you the greatest amount of return. Plus, by creating programs that promote long term relationship building, it will help you recognize first time customer that qualify as your future champion customers. In other words, price shoppers live for today, they look for that discount and not interested in a long term relationship. The customers that I want are those that see the value in doing business with me on a long term basis. That's why I don’t advertise cheap oil changes or other cheap discounts. First, my promotions are built around packages. For example, this time of the year I will typically send out a promotion to my customers and to my target market area with a headline, “Hit any potholes lately?” Knowing that everyone hits potholes will draw the customer to read more. But, here’s the offer: It’s been a tough long winter; treat your car to the best! Winter Recovery Package Change oil and filter (up to 5 qts conventional oil) Rotate tires and check balance (if needed) Test Antifreeze/Coolant Test battery and charging system Inspect tires, adjust air pressure Add BG Engine Treatment and Fuel Cleaner Inspect air and cabin filters Inspect brakes, steering & suspension Top off all fluids at no extra charge Check lights and wiper blades All for $69.95 This narrows the target market, but those that see value buy this. For existing customers I have a "Pre Paid Maintenance Package" that includes an oil change, multipoint vehicle inspection, fuel and engine additive and a tire rotation with balance. (Notice,I don't call it an oil change package, in marketing be different, don't copy the other guy). Purchased individually the price each would run about $75.00. We sell a Pre Paid package price for $269.00. This marketing only attracts those loyal customers and those that have enough faith and trust that they want to return again and again. Those looking for a cheap $18.95 oil service never buy these, and that’s ok. I rather reward those that value the program and value my company. Hope this helps, I have more programs, but I think you get the idea.

Publicity: Sometimes Better than Advertising I am a believer in “guerrilla marketing”, which is a strategy that allows us to compete with the big guys, without going head to head with them. It helped the colonies win their independence from the British. The British Army was more organized, larger, trained and better armed. Initially, unconventional warfare gave us an edge. Most of us cannot compete on the same level as a large dealership or national account, and we shouldn’t. It’s actually more important to find what the competition is doing and do the opposite. To think that I can compete with the Lexus dealer and have available 30 loaner cars is insane. But where I can compete is by branding my company in my local community, which will give me lots of publicity, which more times than not is actually more effective than advertising. Let me give you an example. When I opened my new facility I started doing consumer clinics. Eventually people began asking me to do the seminars at the local libraries. This branched out to the local Rotary, Chamber of commerce and recently at different local functions. Each time I do one of these, I get a lot of free press, which helps to boost my image and promote my brand. Remember, we may be in the auto repair business, but that’s not who we are and why we are in business. We all have a story to tell. Find WHY you are in business and tell that story to the world. It will become your brand identity. If you focus on the tools and equipment of your trade, you will reduce yourself to a commodity and become a “Me-Too” brand. Differentiate yourself from the pack. This will narrow your target audience, but will actually increase your market share. Give it a try, think about it. It works!

I held my Tire Safety Event this past Saturday. We had the local radio station doing a live remote, we cooked hot dogs and burgers, gave away prizes and raffled off a set of tires. We had about 150 people stop by and we inspected a ton of cars for free. We sold a lot of tires and other work, but more than that, it was a good PR day and boosted our brand in our community. I know it's a lot of work, but I have been doing these events for years and it is always a success.

North Carolina is yet another state that is considering repealing their periodic vehicle safety inspection requirement, leaving only the emissions test. It baffles me how our elected officials think. In New York we identify so many cars that are unsafe; some due to neglect, but many due to wear and tear, pothole damage and other conditions. Our good customers are thankful that we have recognized a potential safety issue that could put them, their families and others on the road at risk. I think we need more public awareness and tell our elected officials that mandatory vehicle inspections are a good thing. When I was young it was common to give your car a quick “once-over” on a Saturday morning. Plus, with full service gas stations back then, the gas attendant would check under the hood, look at the tires, etc. Today, people get in and drive. I don’t know how many states have an inspection program, but those that do need to get the word out that this is more than just a revenue stream, it’s a matter of public safety.

Oh man, I pulled a leg muscle just watching that!!!

You know, this is a side of the gun issue that I was not aware of. I think this video should be watched by all Americans.

I am very, very careful what I say to a customer at the front counter or on the phone. As the person speaks, my inner hard drive begins to search back the nearly 40 years I have been in this business for files that are relevant to the particular problem. But, I don't give opinions or solutions without a written work order. I do ask a lot of questions, which is what we should do, if the person is willing to have me work on the car. If someone is fishing for answers, I don't say much at all. Perhaps worse that being at the front counter and being grilled for an answer is being at a wedding or other affair and being tortured by someone you have just met, who has a problem with his car, who has been to a few mechanics already and now wants an answer from me, after I had a few gin & tonics. Does this guy really think I can solve that problem now? I know we have all been there.

I agree with xrac, you need to identify those customers that appreciate and value what you bring to the market place. Bill Cosby once said, "I don't know the secret to sucess, but the secret to failure is trying to be please everyone". You bring up very good points and I can say that this has been an issue at my shop too. But, those that are my profile customers trust me, and I will always tell the truth. I wish everyone would. This notion that if we tell the customer everything will upset the customer is wrong. Imagine your doctor holding back a health issue because he was afraid that he may sound pushy or just trying to make money on you. Stay true to who you are, find out what your story is; Why you went into business. You will find that it's a lot more that just buying tools and fixing cars. Who you are and why you do what you do is what creates your brand. Think of Harley Davidson, is it just a motorcyle? No, it's a Harley. I hope this helps.

It takes a lot for me to endorse a product, but today I was fortunate to sit in on a webinar where I learned about Repair Shop Solutions, a vehicle multipoint inspection process that blows the doors off anything I have seen in the past. The inspection process is done on a PC, laptop or tablet (probably the most efficient way). It’s online and cloud based, so no software to download and completely customizable to fit your shop’s particular needs, it tracks history and the inspections can be saved and retrieved later. It’s has a very extensive reporting system, where you can analyze what is being discovered by the tech and what is being sold. You can create different check lists for coolant, under car, under hood, steering, or anything else that fits your particular shop needs. You can see where the missed opportunity is, and make changes to your business. The customer gets a clean report and it’s accurate. I already signed up for the program, you owe to yourself to check it out; the website link is below. My only regret, why didn’t I think of this! http://www.repairshopsolutions.com/

Are you referring to fleet work?

I know I can speak for all when I say our thoughts and prayers go out to the victims and the families of those killed and injured in yesterdays bombing at the Boston Marathon. Also, thank you to the brave people who responded and put themselves in harm's way to help others.

First, I want to wish you the best of luck! Scared to death! I know how you feel. Business is not easy and it's a daily renewal. Before I give you advice, we need a few facts. Who will be employed what will your job description be do you have equipment and other needed tools With your business plan; did you factor in any start up costs: Insurance, utilities, uniforms, tools, furnishings, etc. Are you planning a grand opening (you should consider it) How will you promote the shop This is just a start. I can tell you that you will need to understand the numbers of the business. The better you are as a business person, the better chance for success. Like the past post, know the numbers. Don't be the cheapest, DON'T compete on price. Find out what the competition is doing and do not be like them, be different. Find your niche, that something different that will make you stand out. If you don't differentiate, you will just blend into the background and will not get noticed. Find out what you want to bring to your market area, and do not try to be everything to everyone. The more narrow you define your business the more you can target your customer. Starbucks knows exactly who their customer is and they don't waver from that position. You mentioned the family name. What is your strategy to build upon this? As far as the $17,000 is concerned, it all depends on what initial start up costs will be, and what your one-time expenses will be. This is exciting, the more planning and homework you do, the better. When is the launch date? This is just the start, keep the dialogue going, We'll help you thru the process.

That is a strange problem, and I have not seen any issues on those models.

You know, there are times like this when I feel the same way. It's as if my mission is somehow to change this person and the perception he has of me and the industry. But sometimes, you got to let it go. Do you know the story of the frog and the scorpion? The scorpion is stuck on the lake floating on a leaf and a frog comes along and the scorpion says to the frog, "let me jump on your back so I can get to land". The frog says, "No way, you will sting me and I will die". The scorpion says, "Now why would I sting you? If I do, you will die and I will drown". The frog says to himself, well that makes sense and allows the scorpion to jump on his back. Half way to the shore, the scorpion stings the frog and as the frog is dying and they are both drowning, the frog says, "Why... Why"? The scorpion says to the frog, "I am a scorpion, it's who I am, it's what I do". Understanding people are just as strange and it may not be right, but its the way it is. (Boy, I feel like a preacher)

Yes, you are not alone Gonzo. Shop owners are a tough breed, they have to be. The things we see and go thru can fill volumes. If ASO can be a place to vent, share ideas, scream, teach, learn, whatever...then I am proud to be part of it. But, the true strength of any organization is its people, and ASO has great members, so the real thanks goes out to all the members!

I pushed the local trade organization to have a meeting with New York Compensation Board. It was held this past November. It was in NYC. We met with the board. I as among a few shop owners and also insurance carriers. We presented our case, and the board just sat there as if we were speaking a different language. They could not or did not want to understand our position. I have three service advisors that are being charged as mechanics. Is that fair? I took photos of my shop, showed them where the service area is and how it is separated from the shop and handed them job descriptions, which they refused to take! The said that to reclassify would cost more money. More money? How? I said! They said that if they take the people off that are now service advisors, there would be less money in the fund? They have no clue to the fact that shops ADD service advisors as they grow. The number of mechanics stay the same and service advisors are not subjected to the same hazards as mechanics. This is a hot topic and I can feel my blood pressure once again rising!

For the past few years I have held some sort of event during the month of April to piggy back National Car Care Month. This year we are holding it with an awareness on tires and safety. We will have the local Radio Station there to help promote it, we will be grilling hot dogs and burgers and giving away prizes. It does cost money and it's mostly a P.R. day, but we do get a nice bounce after it and since we have been doing it, people will talk about the event the rest of the year. Has anyone done an event or is thinking about doing one? It does take a little planning, but it's great for the community.

Customers May Not Want to Hear the Truth, So Lie? Last week I attended a business luncheon, comprised of local business owners. At the table where I was seated, a local contractor was telling the group that sometimes he feels he needs to lie, because the customer does not want to hear the truth. I jumped right in and said, “Please make me understand, your customer may not want to hear the truth, so you lie”? He went on to say that instead of informing the customer that they are behind due to staff issues or problems at another job site, he would tell the customer that the wrong material came in, or the lumber was wrong, or make up some other fib. I said, “Really?” He replied, “People don’t want to hear the truth”. This got me thinking about our business. When things go wrong in our day, are we afraid to tell the truth? If your tech makes an error and a customer’s job will not be completed when promised, should we tell the customer, the wrong part came in? I think we all need to think about what’s right and what is wrong and hold ourselves accountable to uphold our morals and ethics. When you break down everything we do in life, it always comes down to who we are as a person. Business is business, but our business is an extension of who we are. Isn’t it? If there are flaws in this contractor’s workflow, and his job planning is inefficient, he needs to work on that and not try to make it up by lying to his customers. Lies begin to compound on top of each other and before you know, you can’t remember one lie from another. Humans are wired to tell the truth, not lie. Abraham Lincoln said’; “No man has a good enough memory to be a successful liar”. I don’t mean to step up onto my soap box today, tell me your thoughts, please.

We have all been there, below is an article I wrote a few years back, a true story... A Bad Week Ends Up a Lesson On Life November 21 2010 06:00 PM | Joe Marconi in Customer Service We all have had that week from hell. You know, the one week that makes you ask yourself why in the world you ever got into this business in the first place. The week that makes you doubt yourself, your customers and the people around you. And as you push through the week, every turn you make you find another fire to put out, another bounced check to worry about, another comeback that needs to be done over again, on and on and on. By Wednesday you say to yourself, “it must get better, it can’t get worse”. Well, guess what? It can. For me, my recent week from hell happened this past summer. I came in on Monday morning in the second week of July to find that my service manager was sick and would probably be out until Thursday. I also learned that one of my top techs got into a motor cycle accident over the weekend and was seriously injured, with no information about his return to work. It was 6:45am and little did I know, this was just the beginning, and it was about to get worse. A Subaru we serviced a few months ago was towed in over the weekend with a seized engine and the owner was blaming us for not putting oil in the engine. He was demanding we pay for a new engine because in his mind, it’s our fault. I gathered my crew together a little before 8am and told them this was going to be a very challenging week. I also told everyone to be positive, work together and we will get through this. On Tuesday my air compressor caught on fire. The compressor, only a little over two years old, apparently had a defect in the wiring which caused a short and fried the motor. We were one month over the warranty and I had to eat the cost for a new compressor motor. On the ride into work on Wednesday I called my shop foreman and asked if it was safe to come in. I was joking, but he wasn’t laughing. There was silence on the phone and I asked, “What happened now”? He told me that the transmission we installed in the Dodge Van last Friday was towed in overnight; “the transmission doesn’t even move”, he said. He also told me that there was a note from a very unhappy customer that said she needed the van back ASAP! Then he told me that someone threw a rock through the front window and that the Police are waiting for me. I wanted to turn my truck around a go to the hills and hide. Aside from these new issues, we were getting behind in our work as the problems kept mounting. Somehow, we made it through the rest of the day. Thursday morning started out ok. My Manager was back and we were well into the process of getting all the issues settled. The compressor motor was due to arrive that day. Luckily we had an old back up compressor which kept us going. The glass company was there installing a new window. Things were looking better, I thought. But, I was wrong. That morning we received the wrong tire shipment, and all the tire sales for that day had to be reordered. We lost electric power from a downed pole around the corner at 10:45am. We did what we could, but we all know how dependent we are with computers, lifts, phones and other equipment. The power came back late that afternoon and we all stayed late into the night to catch up. The push to get the work done was draining everyone, including myself. I could sense despair setting in as the morale in the shop was suffering. I spent the better part of Friday morning dealing with the customer of the seized Subaru engine. The truth is, there was oil in the engine, but low about 2 quarts and he couldn’t read any oil on the dip stick. According to our records he was 5,000 miles over his scheduled oil service. We only serviced his car once and as I questioned him, I realized he didn’t take care of the car as he should, often going over the recommended interval for an oil change. I asked him if there were any lights on the dash before the engine seized. After a short pause, he admitted that the oil light and check engine light had been on the day the engine seized. Knowing the truth put me in a better position to deal with the problem. He was still angry and wanted to know what I was going to do because we were the last to touch the car, but the facts were the facts and I stood my ground. By Friday afternoon I was mentally exhausted and was looking forward for the week to come to an end. About 3:30 that afternoon, a long time customer came in for service on her car. I walked over to her to say hello and she started to cry. I sat down in the waiting area with her and asked if there was something I could do for her. She told me that her daughter, 41 years old, just passed away from cancer. She left two young children and a husband behind. In an instant, all the problems that happened the past week took on a different meaning; all of the worry that I had the past few days suddenly vanished. This woman had real issues to deal with; issues about family and life, and in the end, are the only things that really matter. I sat with her until her car was finished and listened as she spoke about her daughter and family. When her car was complete I walked her out to her car. As I walked back to the office, I started to put things in perspective and realized that all the trouble that had happened in the last 5 days seemed a lot less important. As shop owners, we face adversity every day. At times I feel we are being tested. Sometimes, things appear to be too tough to bear. Sometimes, just sometimes, the problems we face are just what we need to remind us that things could be a lot worse. For me, I learned a valuable lesson about life. I learned to appreciate the things that really matter in my life and not concern myself about the things that are only part of life, not what life is all about. Tomorrow is Monday, and I don’t know what the auto repair world has in store for me. It may be hell or it may be paradise. But whatever happens, I’m ready for it.

This is a problem everywhere, and I hope it does not get worse. And, it's just not our trade, but all the trades. For too many years, this society has pushed college as the only true way to a career. Plus, sadly, too many of us, me included, did not do enough to encourage the younger generation to enter the business. When I started there were still gas stations that young kids go to work pumping gas after school, I loved that job and it was what motivated me to become a mechanic. Now, I work with the local BOCES high school. (BOCES is a high school system in New York for those that want to learn a trade; auto, collision, culinary, electrician, etc). We offer part time jobs and internships to kids interested in going into this industry. I think as an industry we all need to do more to promote what we do. This business is getting so technical, we need qualified people, not just those that can't make it in school. Good luck, ask everyone out their, tool reps, parts people, everyone.

I too had problems with Saturns, Corollas and Chrysler cars with drums. I remember we had a noise problem on a Corolla and after trying a few sets of drums, we dug out the old drums that came off the car, machined them and the noise went away. We then ordered a set from the dealer, which I hated to do. Now, if we can we cut the OE drums, if they are still in spec. We have brought this up to our supplier.

Welcome to ASO! That's great that you turned the business around by being proactive about understanding business. One of reasons why AutoShopOwner.com was created was to share ideas about business to help each other grow and become more profitable. I hope you share with us your story some day. Welcome again and please don't be a stranger on the forums!