Joe Marconi

Does anyone follow the MAP (Motorist Assurance Program) guidlines to promote maintenance to their customers? MAP has been around for a while and has a lot of good customer information. Here's a link to the web site: http://www.motorist.org/

A local GM Dealer is decreasing the tech hours for the third time this year. All techs were hired and required to work a 40 hour week, would get paid for 40, with bonus for flagged hours above the guarentee. That 40-hour guarantee dropped to 35 this past spring and now will drop to 32. But the techs are still required to be there for the 40 hours. Also, the service advisors got two pay cuts this year. Please do not ask me the name of the new car dealer, I was asked to keep the name anonymous. The source is credible and reliable. Is anyone else around the country hearing this from other dealerships?

We have all been down this road and I feel for you. I just hope that she knows this is not your fault. We take it on the chin so much in this business. I remember a few years back I had an issue with my stomach; the Doc gave me medicine that made me real sick. He said, “stop taking it”, but charged me anyway. Why is it different in our business? You are a good person, that's why you are doing this for free. I have a lot of respect for you and for each and every shop owner out there. We have proved time and time again that we are people of integrity. This is one of the reasons I started AutoShopOwner and dedicate this site to helping other shop owners. Let’s hope next time a bell will go off that will save you from this. And, don’t worry, good deeds come back to you.

Don't enter a price war. No one wins a price war. For a dealer to lower the labor rate that much means that the dealer is desperate and in financial trouble. The same way you saw no change in your business when you raised your labor rate, the dealers will see no change in their business. All they will accomplish is less income. Do what you do best, provide the best customer service and WOW the customer each and every time. Take price out of the picture by doing this. Think about this, ever go into a Starbucks lately? They are feeling the affects of the economy, but you still pay 2 to 3 times for a cup of coffee. They focus on the customer, not the price. We need to do the same. Hang in their, better days are coming. I know it and I feel it. We have turned the corner, and the road looks pretty good.

Every company needs policy and procedures in place, and certain tasks must be required and monitored. But, every process must root its purpose in a way that enhances the customer experience, rather than just a required company task. For example: instead of requiring a certain number of battery sales in a given period, it should be required that each customer vehicle have its battery tested when in for any service or repair. This is not only insuring that each customer is taken care of properly, but sales will occur as a result of the process rather than a focus on battery sales quotas.

Well said! And that's my point. Learning to delegate and finding the right people to work with us will make a big difference in our businesses.

Study Highlights Environmental Concerns for Electric Vehicles According to a recent study, electric cars, which are often perceived to have much less of an environmental impact than conventional fossil fuel-powered cars, do in fact present some serious environmental concerns over their lifetime, especially due to the materials and methods used during their production. Compared to conventional vehicles, which normally experience 10 percent of their life-cycle global warming potential (GWP) during the production phase, electric vehicles experience nearly 50 percent of their lifetime GWP potential during that same phase. Manufacturing electric engines and batteries, which contain heavy metals that produce toxic byproducts, is far more environmentally exhaustive than producing conventional vehicle components. Clearly, the lower emissions produced by electric cars make up for the high level of global warming potential generated up front, but, according to the study, not enough to declare them significantly more environmentally friendly than conventional vehicles. In fact, diesel-powered conventional vehicles were shown in some cases to actually have a lower lifetime environmental impact than electric cars. The study discusses the concept of “problem-shifting,” which it argues applies to electric vehicles because they reduce emissions on the road while failing to reduce levels at the factory stage, resulting in only a slight reduction in total emissions generated. In addition, the fact that electric engines and batteries contain higher levels of scarce metals means that the potential for widespread metal depletion is a legitimate concern as well. The study, entitled, “Comparative Environmental Life Cycle Assessment of Conventional and Electric Vehicles,” was published on Oct. 4 in the Journal of Industrial Ecology. Source: Automotive Aftermarket Industry Association news

Between Jeter being hurt and the fact that the Yankees are not hitting, I don't know if they can regroup and make a comeback. It's not impossible, but it will be tough.

Other’s May not Share Your Viewpoint If there is one thing I have learned in all the years I have been in business, is that everyone sees things from their perspective and sometimes trying to change someone’s point of view is not only a waste of time but can create a barrier between you and the other person. My brothers and I share very different political viewpoints. Years back we would get into heated arguments that dominated a Sunday dinner or holiday event. In the end, nothing got accomplished, and neither I nor my brothers ever got closer to changing our views. All we ended up doing was disrupting dinner and annoyed the rest of the family. So, I made it a rule a few years ago that we will not discuss topics that initiates an argument and we will always try to see things from the other person’s point of view. It was senseless to let differences of opinion come between brothers. When leading people in your company you must realize that not everyone will see things as you see it. This is not to say that you should not dictate policy and create procedures. What I am saying is that before we act on a situation that we perceive the other person wrong, we need to pause and try to see things from other people’s perspective. Understanding others and how their view a situation will allow you to become a more effective leader. This is not a sign of weakness or succumbing to others, but a sign of willingness to work with others for the common good of the company.

There are a lot of deep-rooted lesson in this article. I am not sure if that was intentional or just my perspective. I often kid with my doctor and tell him, "Hey Doc, you give me medicine when I am sick, it does not work, in fact it makes me sick even worse that when I came to see you. I have to go back two or three times to see you until you get the right diagnoses and the right medicine....and I get charged big bucks each time". I think it's funny...the doc? He doesn't think it's too funny. Again, this article has many directions and meanings and enjoyed reading it. By the way, How's my grammer, perfect or not?

I need to add something to this situation. My service advisor never gave the customer a price for the wheel bearing. Any amount was too much. "Times they are a changing"

Most of you know that I was born and raised in the Bronx, which makes me a die hard Yankees fan. Well my Yankees are in the playoffs AGAIN. When I travel around the country it seems the Yankees are the most watched, draw the most crowds at the stadiums, but can also be the most hated. Anyway, it should be a fun playoff season. Any other baseball fans at there?

Thanks Frank, I guess these days call for more compasion than ever before.

My only fear about technology is removing the human element from a particular task. Us old timers can remember when we had to back into a system to see why the engine had no spark or no fuel. We did not have any of the advantages we have today. We had to understand the engine systems and used our "Brain" to perform logical tests and base decisions on those tests. Now, most techs run to IATN, Indentifix and grab the scanner before they even attempt to logically think thru the problem. I am not complaining. The amount of information needed is mind boogling and I am quite greatful for the help and technology. But, when their backs are against the wall with a tough problem, that's not a known problem, it takes an old timer like us to walk them thru a logical step by step diag procedure. As long as the human brain keeps creating other brains, we should maintain a step ahead and remain in control.....notice I said we "should".....

The other day a women came in for a routine LOF, tire rotation and wheel alignment. During the road test the tech noticed a slight noise from the rear wheels. After spinning the wheels in the air he confirmed the noise coming from the right rear wheel bearing. The tech informed the advisor who then spoke to the customer, who was waiting in the customer service area. What happened next shocked me. My advisor did a great job by explaining that during the road test the tech heard an abnormal noise and confirmed the problem by spinning the wheel in the air on the lift. He continued to explain what a wheel bearing is, the purpose of the wheel bearing and the importance of replacing it. She was silent for a few seconds and then asked, “So what’s the worst that could happen if I don’t replace it”. The advisor tried to steer the conversation away from answering the question, but she firmly asked it again. The advisor reluctantly said, “Well, the job of the bearing is to reduce heat from friction and maintain smooth rolling action from the wheel. As the heat continues to build up, overtime the wheel will loosen up and may fall off”. The customer said, “Then let the wheel fall off”. I happen to be in the back office and overheard the conversation. I had to confront her. I walked over to the service counter. I could see the blank look on my service advisor’s face. I interrupted and said, “Excuse me, I hate to interrupt the conversation, but did I hear you just say, let the wheel fall off”? She said to me. “I just paid my property taxes, which were increased over last year, just spent a ton of money on school supplies and with the price of gas and food; I just don’t have the money”. I could see she was upset and embarrassed. Her statement was not made out of anger, but out of frustration. I spoke to the tech and he assured me that the noise is slight and not in any immediate danger. I told her I completely understand and would be ok if we call her in a week or so to discuss the wheel bearing. She agreed and I could see the stress leave her face. It is crucial these days that we listen and understand the consumer. These are tough times and people react from frustration, not from reason of logic at times. A few kind words and understanding of the consumer’s perspective will win out in the end. I have no doubt she will have the wheel bearing replaced, but it’s important that she feels that she maintains control of the decision. A choice made with a little help from us.

I know that many shop owners, including myself, have been reluctant the past few years to increase labor prices and part margins. We have lived through extraordinary times the past few years with so many of our customers losing jobs, their homes, loss in the 401k and retirement, and other economic difficulties. But while many of us have been sitting on our prices, the world has still moved forward. Our cost of doing business has risen the past few years with increases in insurance, medical, taxes, workers comp, unemployment insurance and many other of our fixed and variable expenses. So, the question becomes, “To raise prices or not to raise prices”. We all know the effects of pricing ourselves out of business, but we also know that maintaining prices can also drive us to close our doors. In the past I have always looked to increase production and sales per customer. But that strategy is not easily implemented in this battered consumer market. I am one of those shop owners that has not raised prices the past few years, but now I am putting together a plan to make price increases. It will be small and incremental, but it must be done. I will also create new programs and promotions to promote more value for the consumer. Value is key these days. People want to walk away from your shop knowing the money they spent was not a mistake but a real value. How are other shops keeping up with rising costs of doing business?

On June 8, 2012, the EPA gave final approval for the use of E15 ethanol blend fuel for sale for vehicles 2001 and newer. But this ruling is not without controversy. Among those opposed to E15; The Alliance of Automobile Manufactures, The Specialty Equipment Market Association, General Motors, Ford, Chrysler, Toyota, Volkswagen and other foreign car makers. Those opposed to the E15 state that the chemical properties of E15 are harmful and destructive to certain automotive parts. In addition, there are no steps to insure that some motorists with older cars may use E15 by mistake. The EPA says it has done extensive testing on E15 and states that it completely compatible in 2001 vehicle and newer. We all know the effects of ethanol can have on certain vehicles. What’s your opinion on E15 and the EPA ruling?

Are multi-shop conglomerates edging out the traditional mom and pop independent body shops? It appears that doing business these days is getting more and more challenging. Business owners are being faced with a multitude of issues: decreasing margins, declining accident rates and flat projected market growth are just a few of the problems that shops need to deal with these days. In addition, insurance companies feel more inclined to favor large consolidated companies, and not small independents. If you are an independent body shop, how are you planning for the future and how will you market your shop to compete with the giants?

I don't blame you, I would feel the same way. There needs to be more accountability these days. Everyone must earn things in life. While I do like the fact that this tech wants BMW training, he needs to realize that there is a cost attached to that. And, he has to abide by the policy of the shop. If he is mature about it, he will learn and be better off. If he takes a negative attitude, like it's punishment, well than that's not too good. Having employees is not easy. We tend to go the extra mile for our people, and sometimes we feel let down. I get discouraged at times, but will always remain positve and respectful for everyone that works with me, and give them everthing the need to suceed.

You have a good point. And as time goes on, reviews will become less and less credible. Anyone can make a review, even if you have never been a customer to a particular business. To make a review on Tire Rack, you need to log in with your invoice, this filters out non-customers.

I don't dissagree it's not worth that much, but at that point, sell a tire. It becomes a point of what value the customer sees in the repair vs a new tire. If we all got 50 bucks for a major tire repair, we may end up doing less repairs and sell more tires? The consumer may not see the value in the repair if the price is too high, even though we may be able to justify the cost. I hope I am explaining my self clearly....

For an inside repair, which includes dismount, inspection, properly repairing the tire, remount and balance: $28.50. AND, that's a giveaway when you factor in the time it takes, but at that dollar amount, people complain. WHY? Because shops up the street will plug any tire, and many times not charge for it. We scrutinize every tire now before we repair it. If there is any evidence that the tire was driven low, or if the tread depth is too low or if we feel that to repair the tire will compromise safety, we sell the a tire(s). We also do tire repairs at N/C, because all our tire sales come with free rotation and free tire repairs. I don't mind this, these are my customers that are loyal and come back for all other services and repairs. Great topic, glad it is continuing....