Joe Marconi

The total car care theme is rampant around the industry. Are collision shops also considering expanding their business into other repairs or services which are not traditional to collision shops? Such as brake work, preventive mainteance and other similiar services. Is this a good thing, or should collision shops focus on their core business and not try to move away from their business model?

First, if we recommend a service or repair, the customer needs it. If we cannot sell a particular service or repair that day we make sure we inform the customer and give him/her a timeline in which to have it done. We then try to book that appointment. For example, if a customer is in with a check engine light repair and also needs tires, but due to budget reasons, they cannot go for the tires, we try to bring the customer back within a reasonable time for the tires. Before they leave we will discuss tire options and price. We then enter a recommendation reminder in our Mitchell system so they will get a post card or email reminder, and if they do not show up for the tires, we call them to see why not. I do not think this is too invasive. If MY customer truly needs tires, they will have to buy tires somewhere, so it might as well be with me.

Wow, that video opens up multiple possible scenarios!

Overselling is always a concern and I will not stand for it. The other side of the coin is underselling, which sometimes is as great a problem. From speaking to many shop owners, too many of their customers may not be getting the complete total car care treatment they should be getting. For example, a customer comes in for a check engine light problem, which is taken care of in a timely manner, but the rest of the car is never inspected to insure other vital safety items are up to par. In the end it takes the right people, the right pay plan, with the right system understanding total car care, to insure that the customer is always taken care of properly.

There is a lot of confusion out there about the direction of health care insurance and the costs of premiums. The news is filled with stories from companies, large and small, that are planning now for what they believe will be big increases in their health insurance premiums. Insurance companies will also be required to pump large amounts of money into health care program to pay for the uninsured; many say this will lead to increased premiums across the board for everyone. I would like to hear from other shop owners and what they are doing or not doing with respect to health insurance.

I want to wish everyone and their families and Happy Thanksgiving. Spending time with family and friends is what life is all about. Joe Marconi

Early End of Year Tax Tip 2012 With the end of the right around the corner, we all need to think about any items, tools and equipment we are considering to buy in the near future and purchase those items before the end of year to maximize deductions for this year. If cash flow permits it, it is recommended that you act before the end of the year. As always, speak to your accountant to discuss this and other tax tips.

Sorry, I have no knowlegde of this. Is it more of a accounting program than a business management like Mitchell1?

I am not in this line of business, but will support you and help in any way I can. I think xrac brings up excellent points and we need to listen to what he says. There is a market for anything out there, as long as we understand the market. We also need to know what is profitable and what is not. I know of a restoration specialty shop that recently closed its doors, mainly because all his customers with money have been affected by the economy and are trying to do things themselves or not doing anything. As business people we need to balance our passion with the reality that we also need to feed our economic engine. Maybe diversify into to other services to bring in a steady stream of income. Also, the people that fit in that specialty market also own regular cars and have family and friends that own your everyday cars. Maybe expand your market penetration to reach out to repair work on these vehicles. Again, I am not in this line of work, but those are my thoughts and trying to brainstorm ideas to help.

We see a lot of that type of damage in my area. What's nice, is that a situation like that makes a connection with your son, things happen for a purpose. I have two sons and both of them worked with me starting around 12 years old. I would bring them down to the shop and make them sweep the floors, clean the office and I introduced them to My World. They also got paid, which they really liked. As they got older I had them changing oil, do brake jobs, tire rotations and other minor repairs. Both of them worked until they went off the college. My youger son worked as my service advisor durning the summers while in college. That was real special, working side by side. Both of my sons went into different careers. They had to follow their own dreams, which I understand. My younger son Anthony works for company in California that buys, sells and invests in commercial real estate. It's a high presure job. He has told me on many occasions that he often thinks back about when he worked in the shop with me with fond memories. That's really special and for that I am truly grateful.

Yes, it really made me feel good to help a neighbor in need.

History of Veterans Day World War I – known at the time as “The Great War” - officially ended when the Treaty of Versailles was signed on June 28, 1919, in the Palace of Versailles outside the town of Versailles, France. However, fighting ceased seven months earlier when an armistice, or temporary cessation of hostilities, between the Allied nations and Germany went into effect on the eleventh hour of the eleventh day of the eleventh month. For that reason, November 11, 1918, is generally regarded as the end of “the war to end all wars.” In November 1919, President Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words: "To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations." Let us honor all those that have fought, died and served our great nation in order to protect the freedoms which we enjoy each day. Joe Marconi

I have a related topic about information and communication. That’s the information received from the customer to the service writer, and relayed to the mechanic. I instruct my service writers to write down or enter in the computer everything the customer’s states and exactly what they say. Do not interpret or put a spin on what the customer is telling you. For example, a customer says to you, “Once in a while on wet mornings only, I hear a click when I turn the key and the car won’t start. I try it again a few times and the starts up normally”. Don’t just write on the mechanic’s repair order, “Check for no start at times”. This drives me crazy.

I have every machine BG offers. I believe in fluids services and the advantages of promoting the BG Lifetime Protection Pan. People keep their cars longer these days and people want value. With so many maintenance items taken out of the owner’s manual, you will need to hone your skills as an advisor in order to promote preventive maintenance. For example, with a spark plug change, we will also sell the added benefits of a fuel system/Decarb service. Once the customer understands the benefits of the service and the value of the lifetime protection, they are more inclined to go ahead with your recommendations.

No matter who is sits in the White House, we ultimatley answer to one person on this planet, and that's that person you look at in the mirror each day.

She did not have the invoice with her from the dealer, but she said that she did everything that was listed on the dealer 15k. She would not tell me what she spent, but said it was "a lot".

All great advice. Let me add to make sure that a service writer understand the sales goals of the business and know when the shop is making money. Many shops base the writers pay and/or bonus on sales without knowing breakeven. We all know that gross sales and gross profit dollars are two different things. Gross profit dollars is what we need to focus on. For example, a service writer can sell a ton of tires in one week, so the gross sales look great on paper, but the GP dollars will be lower than if the same writer sold a ton of brake jobs, steering, suspension and preventive maintenance. My advice is to carfully look at the numbers of the business, know when the shop is making money and base the pay/bonus on this number. When the writer has a target to shoot for, he or she is apt to hit it more often. BTW: For me, breakeven is not just paying bills, it's a precentage above when all the bills are paid. That percentage above is determined by many internal and personal factors.

Yes, I explained to her that the 15k service the dealer sold her was a "Dealer written" service, not the factory service. I also added that many of the services she had done, were not needed at that mileage. But people react funny when you present them with the facts, especially if they think you are questioning their decision. It becomes a power play, they almost want to defend their decision, rather than admit they were misled. The more I spoke the more I could see the anxiety increase in her face, so I explained to her (and showed her) the factory schedule. But again, it becomes MY WORD against the DEALER'S WORD. And while deep down I put doubts in her mind, ego tends to cloud people's view and that FREE thing keeps coming up as a way to rationalize everything else. She actually said at one point, "Well I guess they got to sell you something for all the free stuff they give you". This is a tough one, tough for me at least. The dealer has an advantage because the sell the car and more and more dealers understand that if they get the customer to come back for service, they not only increase the overall profit of the dealer, they greatly increase the odds that the customer will buy another car from them in the future.

Because of the storm this week I made it a point to meet and speak with every customer who managed to come in. Many came by to check their car for damage, some even stopped by to charge their cell phones, since they had no power. I spoke to a number of customers with new cars and asked them why they haven’t been in for service, but only for State Inspections and other minor issues, such as a tire light on. They told me it was due to their free service at the dealership. These car makes included; Toyota, KIA, Subaru, Volvo, and Audi. I know this has been brought up before, but the question is, “How do we compete with free?” Another question is, “What is free?” Many consumers don’t realize that the oil change is the only freebie. The customer will pay for items such as tires, brakes, tire rotation, air and cabin filters and wipers. In fact, one customer showed me her 15k service on her Subaru which included spark plugs, transmission service, coolant service, tire rotation air filter, cabin filter and a whole lot more. That’s a 15k service! HOW'S THAT FOR FREE SERVICE, RIGHT? We know what goes on, but the consumer does not. Why they can’t see thru the smoke and mirrors will remain a mystery, but the sad fact is that we may be losing the battle to this false marketing that anchors customers to the dealership. I don’t mind healthy and fair competition, but the questionable disguise of FREE service casts a voodoo-like magic over the consumer. It’s amazing how they recite the words from the sales person, “Everything is free, everything is free, I was told everything is free”. And when questioned about what exactly is free, they stare at you in silence. So, how do we compete with Voodoo Free Service?

The National Highway Traffic Administration (NHTSA) has issued a warning to both consumers and repair shops to be aware of counterfeit airbags entering the aftermarket. These counterfeit airbags, within the last few years, have been tested by the NHTSA and shown to malfunction and may explode metal shrapnel during deployment. Although no deaths or related injuries have been reported, it is a major consumer concern and a liability issues for auto body shops and repair shops. Every repair shop is urged to confirm the authenticity of every airbag purchase. In addition, all used cars that have been purchased within the last 3 to 4 years should have its history checked either through CARFAX or other sources to see if the car has been in a collision and if the airbags were replaced.

I just read an article in November issue of Fortune Magazine, written by Nina Easton, about the lack of skilled workers in this country. It’s a crisis, but not a lack of jobs crisis, but a lack workers who are able to fill the jobs that are available and will be available in this country. These aren’t jobs that require a college degree either; they are well paying jobs that require trade skills. We, as shop owners are well aware of this crisis. There are 3 million jobs right now in this country that go unfilled. When we speak of the unemployment rate, we cannot discount that this numbers factors into this state of affairs. We need to take responsibility to secure our future. We need to find ways to increase interest in our industry, get involved with local high schools, trade schools and with automotive college programs. We also need to implement apprentice programs, mentorship and internship programs. This year I started an internship program with the local trade high school. This spring, handpicked automotive students who plan on furthering their automotive education will have the opportunity to work side by side with a tech or service advisor at my shop. They will be required to write about their experiences and about their future. We will then, will the help from their teachers, choose one of these students and my shop will award that student a scholarship. I would like to hear from other shop owners around the country on what you are doing and what you think needs to done to bring qualified people into our industry.

As we near the presidential election, I feel compelled to say a few words. What I will not do is turn this post into a political position or voice personal opinions on how I will vote. My intentions are to keep this post neutral. Rather, the importance of this election and every election is to recognize who we are as free nation. We are a melting pot of people who have migrated here from literally around the world. Even the American Indians trace their roots back to Asia. This diversity gives us great strength and a unique heritage. My own family migrated from Italy in the early 1900’s, coming through Elis Island and settling in New York City. As a child I remember hearing stories of the old country, but my family also spoke about how proud and fortunate we are that we are now Americans. I clearly remember my parents, who would switch from speaking Italian to English, stop themselves and would tell each other, “We are Americans now; we need to speak English, not Italian”. My father told me time and time again growing up, “You are an American. Yes you have an Italian ancestry, but never forget that you are an American”. Patriotism, hard work and family were the ethics I grew up with. When my father enlisted in the Army the day after Pearl Harbor was bombed, he was asked if he had a problem fighting the Italians. My father sternly told that person, “I am an American and proud to serve and fight for this country”. This sentiment embodied my childhood. At every Election Day my father would remind the family, “It is not just a right, but our obligation to vote on Election Day”. He would tell us often, “Whether you are a democrat or republican or whatever, don’t blindly vote your party line, vote for the person you feel is the best person for the job”. So, with Election Day almost here, let us not forget our obligation as Americans and work to continue to make this Nation the greatest nation in the world.

Yes, I do remember reading this before, but it is such a great story, it's worth reading again. A truly amazing story!