Joe Marconi

Here are the result from a recent Tire Business Magazine online poll: Question: Since Congress reinstituted the 2 pecent payroll tax, have your sales been affected? 35% - Slightly down 26% - Sales have tanked 24% - Stayed the same 12% - Up a bit 3% - Sales have soared This is not the best news, but there may be other factors. How have your sales been the first quater of 2013?

A friend of mind, also a shop owner, told me about a company called Kukui. A strange name, maybe, but it seems like they have a lot of nice marketing programs and tracking capabilities. I thought I might pass it on to everyone. It’s always good to see what’s available. Here’s the link: http://www.kukui.com/

I recently had the opportunity to demo the MotoLogic repair program and I was impressed. The information is complete and there are a lot of nice features that Mitchell and Alldata do not have. From what I see it has everthing Mitchell and Alldata have and more. The wiring diagrams are great, and the information is OE. There’s even body information and labor guide. I like the way it is designed, it’s quick and easy to use. Does anyone have any firsthand knowledge or use MotoLogic? Here’s a link for a demo video: http://vimeo.com/39859135

Wow, this is a tough one. Does this happen on a regular basis? This may take more than one post to get you the answers you are looking for. In fact, I don’t know what sales and marketing training you have, but there are many issues to consider when selling any job. We don’t get a lot of price shoppers at my shop, mainly because we have built our business targeting customers that understand we need to make a profit and value the benefits of building a relationship with us. We all know we can buy anything cheaper, no matter what it is: lumber, plumbing, electrical items too. But if we hire someone to install a sink and faucet, the plumber needs to earn a profit and we will pay a mark up on the parts. One thing to consider, try to shift you sales presentation from parts and labor to selling the benefits of the job. People don’t want to buy parts and labor. Here’s an example; you don’t buy Tylenol because it is a shinny little pill, do you? No, what you are buying is “pain relief”. So when you make your presentation to the customer, sell them on you and why they need to get the brakes done with you. So, when selling a brake job, tell all the benefits first, (the warranty, the safety aspect, what a complete brake job entails and any little extras you normally do with a brake job), then at the very end, give the price and one price only. Do not break it down to parts and labor. Sell the pain relief, not the shinny little pill.

Declining OE Dealerships; Good or Bad? There are numerous reasons for the decline in the number of the new car dealerships in the past few years particularly with GM, Ford and Chrysler. Reasons include; there were too many dealerships, intense competition from the foreign car market, today’s cars last longer, new car warranty is down, the great recession, on and on. But is this a good thing for the independent shop owners or not? One of the predication a few years back from some was that the aftermarket will see a boom in sales, as the motoring public flocks to the independent to get their aging cars repair and serviced. Well, many of the independents are still waiting for that boom. Actually many shop owners along with business in general had a tough time the past few years. I am not going to make today’s column a preaching article, but will only say that opportunity is always there and will always be there, in spite of the economy, government, weather and anything else that life throws our way. But now we need to contend with what I call, “The thinning of the heard theory”. Yes, the number of dealers has declined but the ones that have remained are stronger, just like in the wild, and realize a few things and we need to take notice. The new era of car dealerships understand what WE, the independents shop owners, have known for the past 100 years. And that is simply; establish a neighborhood based business that has its roots in the community, offer people on-on-one world class service and build a long lasting relationship with your customers. The new era of dealerships, especially the big 3, has come to the realization that new car sales per dealership will not be like it was. New cars last longer, do not break down as often and the OE manufacturer has either removed from the car and the owner’s manual any hint of periodic maintenance. The OE dealerships are coming after our business, that’s a fact. They have been for years, but now they have a viable plan and the backing of the manufacturer. Their goal is to still sell cars, but they also understand that if they keep the customer as a service customer, the chances of that customer buying another car from the dealership is greatly increased. Let’s not bury our heads in the sand on this one. Let’s not fall into the trap that all the dealers offer horrible service and that no one really wants to go to the dealer, that old and foolish thinking. We need to recognize the fight that we are in. What we have in our favor is one of the laws of marketing, and that is, “Always be first in your market”. This law is based on the concept that people remember whatever is first of perceived as first. For example, “who was the first U.S. President? Washington. “Who was the second? Not so easy to answer. It was John Adams. Being first in your market is a powerful position. Because we, the community based independent shops, were first in our market as the number one choice of the motoring public we have the advantage, but do not take that advantage for granted. We need to work harder than ever to secure and anchor this position. Concentrate on your top customers, continue to build strong relationships and find ways to reach into the community and make every customer experience so enjoyable and memorable that your customers would not think of anywhere else to go for their automotive needs. Are you ready for the challenge, I know I am!

Since the summer of 1973, the year I graduated high school, until 1980, my goal was to become a world-class mechanic. On October 1, 1980 I put the key in the door for the first to my own repair shop and was ready to rock the world. “Bring it on”, was my motto, “There’s nothing I can’t fix.” Only to find that less than 10 years later I would be nearly broke; financially and emotionally. The problem? I was a great mechanic, but not so great business man. While I could fix just about anything that rolled into my bays, when my business broke, I didn’t have the skills to repair the damage that would almost lead to my demise. Failing has a great way of teaching us valuable lessons. I learned the hard way that the skills of being a mechanic have nothing to do with the skills of running a business. So, in the early 90s I switched gears and began my quest to learn the skills of running a business. I wasn’t totally ready to weld shut my tool box, but I knew that things had to change or I would not have a business to worry about at all. Perhaps the hardest thing to change was my mindset that the business and its success were solely dependent on me. That no one could do as good a job as I could. I had this crazy idea that I was the best at trouble shooting, the best at repairing cars, the best at road testing, at selling, at speaking on the phone, at doing the books, even cleaning the bathrooms and fixing the roof. To change meant that I had to give up control, hire and assign others to help and do the work that I thought could only be done by me. Little by little I handed over the reins to others. As I hired new people, I wrote job descriptions, policies and procedures. Specialized training was implemented to teach each person to be responsible for their particular position and slowly but surely, it began to work. The tasks that I once thought could only be handled by me were now the responsibility of others. We became more efficient and we were finally growing. Then came another turning point. Now that I was on the sidelines more, I could see things that I could not see before. This is where another awakening comes into play. I could clearly see when and how others failed at their jobs and I was not too diplomatic on how I told them how I felt. I managed my staff by the principle of “My way or the highway”. This, of course, was positioning my business on a collision course with disastrous consequences. To make matters worse, I drilled into everyone’s head; the numbers and processes that were crucial to our success and made it clear that everyone is responsible to maintain certain productivity and sales numbers. If not, I would have to replace them. After all, I had a business to run; and numbers and profits were the only thing that mattered, right? Well, not exactly. As I pushed for more sales and productivity I also pushed my staff farther away. Moral was suffering and we had a tough time meeting our goals at times. No amount of reasoning could reach the minds of the people around me. Until it dawned on me that my focus was on profits and process, not people. My relentless stream of numbers, stats, systems, procedures and reports was compromising the spirit of my business. I had forgotten that you should never put profit before people. I knew that we had most of the building blocks in place; the only missing piece was culture. I stopped holding “numbers” meetings and starting having “people” meetings. At these meetings I asked for everyone’s input and to tell me what is right with the company and more importantly, what was wrong. I listened and changed our focus from a numbers-driven business model to a people-driven model. Lifting moral and creating an exciting and enjoyable workplace was the goal. It took months, but the turnaround was dramatic. I had to put aside my hunt to find mistakes and mishaps and began a new mission to find people excelling and catching people doing things right, not wrong. I started a practice at the beginning of each week, which I still do today, to create a written list of each employee and write next to their name, something that I could praise or thank that person for. Throughout the week, I will make it point to speak to each employee in a sincere and positive manner. Soon, all the issues we had reaching our goals were vanishing. By taking care of people, by recognizing their hard work, by thanking people on a daily basis, all resulted in higher sales and greater profits. I learned that when people are recognized and feel that their contribution to the shop matters; things begin to fall into proper order. I still work on the numbers, the systems, the policies, the procedures and everything else a shop owner needs to do. I set goals and establish deadlines. But, what I won’t do is forget about people. Helping people around me and getting others to achieve their personal success, is my focus. No one is an Island, and leaders need great people around them. Do we still have challenges and problems? You bet we do. That will never go away. But, we are far better off today than we once were. As shop owners, our lives are filled with daily challenges and maintaining a positive attitude tests our fortitude and character. There will be those days when you will question is it all worth it. After all, who gives us a pat on the back when we need it? Remember, we have chosen a life to lead and help others. And while it may seem difficult to see at times, helping others prosper and making others feel good about themselves will truly become our own pathway to success. View full article

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AutoShopOwner.com is proud to announce it now has over 1000 members! This truly is a milestone and exciting to see how ASO has grown in just a few short years. AutoShopOwner.com was founded on the concept that there is a wealth of business knowledge among automotive shop owners, and by bringing these shop owners together, great things can happen. Thanks to its loyal member base, AutoShopOwner.com has exceeded expectations. It is within the forums that shop owners engage in dialogue, communicate ideas, voice opinions and help their fellow shop owner through difficult issues. What ASO also discovered is the dedication and commitment shop owners have to the industry. AutoShopOwner.com will continue to bring exciting posts, content and information to keep its members up to date with the latest business challenges faced each day. ASO is OUR website. It’s our online voice to collectively work to help raise the image and level of professionalism of the auto service industry. As a fellow shop owner, I am proud and honored to be part of this extraordinary group of business people. Joe Marconi AutoShopOwner.com, Cofounder

Are there any March Maddness Fans? I am not a big NBA fan, although years back I was. Now, I do get caught up in the excitment of the NCAA.

A recent report from the US Energy Information Administration and the Automotive Aftermarket Service Association stated that Americans are driving more miles and the trend will continue for the next few decades. This is exciting news, and a reversal from the past few years. The forecast for miles driven for 2013 is 2.6 trillion. And the projected miles for the future will continue to rise and reach 3.6 trillion by 2035. It's interestinbg to note that the report also pointed out that while there has been a focus on public transportation, there is real no subsitute for personal transporation. Public transportation is not a viable option in most areas of America. Essentially, the U.S. infrastructure is primarliy based around the car. Good news we can all use!

If there is one thing that have seen over and over in our industry, it's shop owners going the extra mile for the customer. Even to the point where it turns into a financial disaster for the shop owner. Your decision showed the true pro that you are and in the end you made the right decision for you and the customer, a win-win.

I'll bet a month's salary Gonzo knows this old Sun Machine. I found this Sun Machine in a furniture store in Los Angeles, while visiting my son and daughter-in-law. The price tag was $4,300. I had the same machine back in the early 1980s.

Tell Your People Why? Years back, when I first started working, my father would instruct me to listen to my boss, and if he asked me to sweep the bay, I should sweep the entire shop. He would also tell me not to ask questions. The boss is the boss and he has the power to hire and fire. Well, that style of management no longer applies to today’s workforce. Today, to simply expect someone to follow orders without understanding why, will not create long term buy-in. People need to understand the inner workings of how a business is run and the reasons why certain procedures and policies need to be followed. Employees may follow orders, but only for the short term. It’s one of the reasons why techs and staff follow a new procedure for the short term, but as time goes on, the process is either abandoned or performed half-hearted. From the perceptive of the shop owner, this is interpreted as a lack of caring or lack of willingness to do what is told. Make sure everyone in your company knows the reason behind a certain procedure or policy. Ensure that there is clarity on the part of the employee whenever a task is assigned. When the people in your shop understand the importance and the reasoning behind the task or policy, they are more inclined to comply. Get people to work as a team. The best organizations have people who understand that each position in the company is key to the overall success of the team. When each person views their position as a valuable piece to the overall success, it creates buy-in from the individual and the team spirit flourishes. Of course, as always, you need the right people in your company also.

I was wondering the other day how shops compare or differ with regard to shop expenses. For me my biggest expense, besides payroll, is insurance; liability, workers compensation, health insurance, etc. I am assuming that this is the norm around the industry. I do have a few equipment loans and truck loan, but once they are paid off, there is a period of time that we get a break. With insurance, it seems it is always on the rise and something we are always reviewing. How do other shops view their expenses and how do you control them?

A shop owner's nightmare. I think too many techs get too comfortable over time. Lifting a 3000 pound object is nothing to take lightly.

First, glad to have you back Gonzo! Your article touches on a very serious fact; even with all the technology and information we have these days, you cannot replace common sense, gut instinct and technical knowledge of how systems work. It frustrates me a lot when we have to literally close the book and find different paths to solving a problem. Again, the question always goes back to getting paid. There are some things that the general public will never understand.

By now we have all heard that different manufacturers and Google are working on the driverless car. That fact does not bother me too much, but the claim that driverless cars will lead to less collisions, does. It’s pointed out that most accidents are caused by human error and cars operated by computers are safer and will be involved in fewer accidents. Well for me the jury is still out on that claim. I guess the main thing is realize that technology is moving faster and faster and as shop owners we need to cope and embrace not only technology but all the changes we will see in the near future. What’s next, the flying car? Here's a link to an article on Google's driverless car: http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/

By now we have all heard that different manufacturers and Google are working on the driverless car. That fact does not bother me too much, but the claim that driverless cars will lead to less collisions, does. It’s pointed out that most accidents are caused by human error and cars operated by computers are safer and will be involved in fewer accidents. Well for me the jury is still out on that claim. I guess the main thing is realize that technology is moving faster and faster and as shop owners we need to cope and embrace not only technology but all the changes we will see in the near future. What’s next, the flying car? Here's a link to an article on Google's driverless car: http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/

Very funny, loved it!

Just wondering if shops charge extra for TPMS on doing tire rotations and other related jobs with cars that have TPMS?

What managment system to you use? We use Mitchell and it has a pretty good inventory control system. It sounds like you have a lot of material, as opposed to a repair shop with part inventory.

I have heard this story all too often from dealer techs. I have a few dealer techs working for me because they could not take the rollercoaster ride anymore. They made great money when it's busy, but when it's slow, they go home with a few hundred bucks at best. Even if you average the highs and the lows, the pay is not great. I hate to hear the frustration in your voice. There are a lot of great independent shops around that offer pay plans and give techs the opportunity to earn a nice living. We pay by the hour, with overtime and pay performance bonus. My techs like it because they know the minimun they can make and strive to earn more by producing more. I hate to tell you this but we hire entry level techs for more money than you are making. An entry level tech in my shop in New York starts out with $15 to $16 an hour. Please don't give up yet, talk to others in the area and maybe out of your area. There are shops that offer good pay, training and other benefits. Just look at the quality of shop owners that are members of ASO.

I number of years ago I purchased the Mac Tools 5 piece lug nut torque wrench set. In the last year, my techs have been breaking the most used torque wrenches; 80 and 100 foot pound. The Mac Tool rep says he has no other shop that breaks the tools. We are a high volume shop, but I feel the tool should handle the use. Does anyone have any info or experience with this tool set? I am wonderig if it's "use" or "abuse"