Joe Marconi

Thank you. Great process!

Thank you Larry! Appreciate it!

Carm, I agree. This is a very important topic. And as was pointed out on your podcast, "It's always the other guy that got caught." No so. And even if we never have an OSHA visit, we still need to provide a safe workplace for our team.

Lucky. My friend. Lucky.

If you are going to Vision in March, please stop by the Elite booth and say hello to Kevin Vaught, Tom Amero and the new Owner of Elite, Darrin Barney! Also, two great training sessions by Elite... High Impact Service Advisor Sales Course - Tom Amero and Darrin Barney March 2nd, 1:00 pm-5:00 pm People buy from people, not companies. As a Service Advisor, what you say and HOW you say it has a huge impact on whether or not people move forward with doing business at your shop! In this class, we will help you generate higher profits through increased sales, more repeat business, and more referral business. We will talk about how to ethically build relationships with your customers and how you can help them view you as a trusted credible expert. This course will be led by Tom Amero, an Elite Certified Sales Trainer. With over a decade of sales, sales training, and leadership experience, he will help Service Advisors build their confidence and gain the tools they need to create more success. Come to this training and let's get your Advising skills to the next level! The Care and Feeding of your Superstar Techs and Advisors - Darrin Barney March 3rd, 8:00 am - 11:30 am Everyone knows how important your team is for the success of your business. But in reality, how many people are able to find and most importantly, keep those superstars once they get them on their team? Darrin Barney will show you a road map that will allow you to find, keep and grow your most important asset.. Your employees. Darrin and his team have grown his shop to one of the largest independently owned auto repair facilities in North America, and they have customers, literally around the world. His unparalleled success quickly caught the attention of the industry, and it’s brought about his being featured in countless podcasts and nationally published articles, he’s been on the cover of Auto Inc. magazine, and he’s spoken at number of the industry’s largest events. He is also currently the President of Operations at Elite. Here are a few of the topics that Darrin will be discussing. ELITE WORLDWIDE

A great and relevant topic. A must-listen to podcast for all shop owners!

When I was in business, each year for 41 years, we experienced a slow down in February. The reasons are many, but by the second week of March, things went back to normal. However, from what I am hearing from some shop owners, they are concerned. They point to riding this wave of business since coming out of COVID, and fear that the wave may become a trickle. What is your opinion? Good times are still here? Should we be concerned?

IF YOU MISSED THE WEBINAR, HERE IS A LINK TO THE RECORDING: https://youtu.be/zgGld3MzxwI Do you feel as if you don't have enough time in the day to get everything done? Is your task list growing to a point where it's getting unmanageable? Well, you're not alone. As your company grows, so do your responsibilities and task list. However, attempting to perform all the required tasks in the day-to-day operations can backfire and make you ineffective as a leader. It also increases stress and reduces your overall performance. The solution? Delegation! Delegation is not dumping off your responsibilities. Instead, it is a shift from doing to leading. Delegating helps you become more efficient with your time. It also benefits your employees by enhancing their skills and making them an essential part of your company's overall mission. Join Joe Marconi on February 21st at 10AM PST for this 45-minute webinar, and learn the strategies for delegating and how it improves time management and shop production. Also, discover why delegation is a critical component in your company's future success and the development of your employees. Joe will reserve time for Q&A and give you a few key next steps to get you started on learning the art of delegation - Register below!

Great info! Thank you!

Nice! Do they also look at tires, exterior, etc.? And do they begin to discuss what services are due?

ICE Vehicles Will Long Dominate Aftermarket "The media teems with reports of surging Electric Vehicle (EV) sales and how EVs will soon replace Internal Combustion Engine (ICE) Vehicles. However, an examination of EV sales reveals a different picture and underscores the unlikelihood that EVs will displace ICE vehicles in the aftermarket any time soon." "The U.S. vehicle population has a much larger segment of older cars and light trucks than any other country with a VIO (vehicles in operation) of comparable size. Accordingly, it will take many years (even decades) for EVs to have a significant impact on ICE aftermarket sales in the U.S." EV Sales in the U.S. The U.S. pace of new Electric Vehicle sales is lagging behind many other major countries. Sales of all types of EVs in the U.S. topped 780 thousand in 2022, less than 6% of the 13.8 million total new vehicle market, which suffered its weakest performance in over ten years. After peaking at 361 thousand in 2018, EV sales in the U.S. shifted into reverse, falling to 318 million by 2020. In 2021, EV sales rallied to 546 thousand and reached a record-high level last year. Differentiating EVs Not all EVs are the same. The different EV powerplant configurations vary in their potential for disrupting the aftermarket. There are three types of Electric Vehicles: Hybrid Electric Vehicles (HEV), Plug-In Hybrid Electric Vehicles (PHEV), and Battery Electric Vehicles (BEV). HEVs and PHEVs are dual-powered, using an Internal Combustion Engine and Electric Motor, which work in cooperation. According, HEV and PHEV Electric Vehicles have a large portion of their miles powered by fossil fuel. Focus on BEVs In measuring the disruptive impact of Electric Vehicles on the aftermarket, it is best to focus on Battery Electric Vehicles (BEVs), separating them from the other types of Electric Vehicles (HEVs and PHEVs), which significantly rely on gas engines. Annual BEV Volume The EV light vehicle market in the U.S. differs from total EV sales when BEVs are separated. From 2018 through 2022, all Electric Vehicles sales topped 2.3 million. BEVs represented 1.7 million EV sales from 2018 through 2022, just over 76% of the total. Accordingly, BEVs generated only 2.2% of new car and light truck volume in the U.S. during these five years. BEV Small VIO Impact Battery Electric Vehicles represent an even smaller portion of cars and light trucks on U.S. roads. Between 2018 and 2021, BEVs climbed from about 0.3% to just over 0.6% of the nation’s VIO. Record-high BEV sales in 2022 did not push their VIO share past 0.8%, only about one-third of their 2022 new vehicle market share. Aftermarket Vehicles Lang Marketing has developed the concept of Aftermarket Vehicles: cars and light trucks at least four years old. These vehicles generate over 95% of total aftermarket product volume, not including Tires and Accessories. In 2022, BEVs represented less than 0.3% of Aftermarket Vehicles in the U.S. This underscores the significant time lag between the new sales share of EVs and their aftermarket impact. BEV Aftermarket Impact So far, Battery Electric Vehicles have replaced only a minuscule number of ICE vehicles at least four years old. Lang Marketing estimates that BEVs eliminated only about 0.3% of ICE aftermarket volume last year. Aftermarket Sales of BEVs BEVs do not share many operating components with ICE cars and light trucks. Nevertheless, BEVs still require aftermarket products, primarily Tires, Accessories, Batteries, and Electrical Components. BEV Impact on Aftermarket by 2030 Lang Marketing estimates that less than 5% of ICE vehicle product volume (not including Tires and certain Accessories) will be eliminated by BEVs during 2030 compared to what it would have been without BEVs on the road. ICE vehicles will record substantial aftermarket growth between 2022 and 2030. In fact, the annual rate of ICE aftermarket product growth between 2022 and 2030 will greatly outpace the “loss” of ICE volume due to BEVs during these eight years. Six Major Takeaways 1. New Electric Vehicle sales in the U.S. lag behind EV volume in foreign countries. 2. To accurately measure the aftermarket impact of Electric Vehicles in the U.S., it is necessary to focus on Battery Electric Vehicles (BEV), the only EVs without an Internal Combustion Engine. 3. The impact of EVs on the new car and light truck market in the U.S. is different when BEV vehicles are separated from total Electric Vehicle sales. Over the last five years, BEVs accounted for only 2.2% of the entire new car and light truck volume in the U.S. 4. BEVs climbed from 0.3% of total cars and light trucks on U.S. roads in 2018 to about 0.8% by 2022. So far, Battery Electric Vehicles have replaced only a minuscule share of ICE vehicles at least four years old (Aftermarket Vehicles). 5. Aftermarket Vehicles (cars and light trucks at least four years old) generate over 95% of total aftermarket product volume, other than Tires and Accessories. In 2022, BEVs represented less than 0.3% of Aftermarket Vehicles in the U.S. 6. Lang Marketing estimates that ICE product volume (not including Tires and certain Accessories) will be reduced by less than 5% during 2030 compared to what it would have been without BEVs on the road. The annual rate of ICE vehicle product growth between 2022 and 2030 will greatly outpace the “loss” of ICE volume caused by BEVs during these eight years.

You bring up a good point, it may depend on the business model. I guess for high volume shops, this may be more of an issue. But, as you point out, any help would be appreciated and also help overall workflow.

Is there are advantage for the service advisor starting the multipoint process, if at all possible? For example, the service advisor is writing up the car and performs a walk around, takes a few photos of the exterior, take a look a the tires, looks for damage, maybe an obvious torn wiper, etc.? Would this speed up the process and build value? Again, this may be hard to do for some shops. Thoughts and comments?

I was talking to a shop owner at the Elite Fly with the Eagles course this past week, and said that he feels that his service advisors do too much, and sales are suffering. Between answering phones, scheduling customers, checking in customers, building estimates, finding the parts, car delivery, on and on, it's a whirlwind of tasks. I tend to agree. I know is may be hard to do, but how can we get the help the advisor needs, or redefine the position?

Let's face it, no one or no entity will help us with the Tech shortage. The truth is, this is not new. This shortage has been created largely from decades of steering young people to college, and not the trades. I believe we need to get involved with apprenticeship programs. Below is an article in Motor Magazine. Your thoughts? Comments?

You bring up a lot of great points. I am sure we have all seen situations where the issues of low production can be traced back to a poor process that originates at the intial write up.

Great points! The key thing is to dig deeper when issues with production arise. Experienced techs are efficient; they have control over that. However, writing the job correctly and other factors play into low production. As we have all learned, productivity and efficiency are not the same.

Typically, when productivity suffers, the shop owner or manager directs their attention to the technicians. Are they doing all they can do to maintain high billable hours? Are they as efficient as they can be? Is there time being wasted throughout the technician’s day? All these reasons factor into production problems, but before we point fingers at the technicians, let’s consider a few other factors. Are estimates being written properly? Are labor testing and inspections being billed out correctly? Are you charging enough for testing and inspecting, especially for highly specialized electrical, on-board computer issues, and other complex drivability work? Is there a clear workflow process everyone follows that details every step from the write-up to vehicle delivery? Do you track comebacks, and is that affecting production? Is the shop layout not conducive to high production? For example, is it unorganized, where shop tools, technical information, and equipment are not easily accessible to every technician? Are you charging the correct labor rate and allowing for variables such as rust, vehicle age, and the fact that most labor guides are wrong? Also, is there effective communication between the tech and the service advisor to ensure that extra labor time is accounted for and billed to the customer? These are a few of the top reasons for low productivity problems. There are others, but the main point is to look at the entire operation. Productivity is a team effort. Blaming the techs or other staff members does not get to the root cause in most cases. Maintaining adequate production levels is the responsibility of management to create the processes that will lead to high production while holding everyone accountable.

You can't pick up a newspaper or watch the news on TV without reading or watching something about the state of the economy. No matter how this was caused, or whether we are in a recession now, or it is coming, will the state of the economy affect the Auto Repair business? Are we recession-proof as so many say we are? Or should we prepare ourselves for tough times ahead?

Yes, Mitchell is not cloud-based, and while the system does do an auto backup, Mitchell reps have told me also to do a daily back up too. This is a headache, plus for multi-store owners, Mitchell does not work. Trust me on this, I had multi locations. I do believe most all other programs are cloud-based now.

When you say "on-premise system" are you referring to a non-cloud based system?

All business systems have access to labor and parts guides. I can't speak to the cost for each system, sorry. But, it is not significant when you think about its value. Please bear in mind that a labor guide is just a guide. And sometimes they are way off. Also, the parts guide gives OE prices. With this said, it will be important to understand YOUR DESIRED labor and part margins. One step at a time; don't get overwhelmed. Put first things first, shop around, get demos and make a decision. And don't worry about a wrong or right decision. No business system is perfect and will do all you want it to do.

Great advise!

Let me add something. I used Quick Books along with Mitchell. Quick Books is a full accounting program and works really well for most small businesses. And most systems can export the data to Quick Books, such as labor sales, part sales, inventory, and sublet sales. Quick Books will allow you to pay your expenses and together with the information from your business system; you can generate reports such as Profit Loss, Balance Sheet, and cash flow statements. Among other reports. The reason why you need a Business System for other reasons: Looking up labor times, parts, tech time, the use of can jobs, managing estimates, scheduling, and so many other tasks that Quick Books does not do. My opinion. Choose a business system (look at previous posts for companies) and also use Quick Books for the accounting side of your business.

You are 1000000% correct! I was really referring to my age. Those cars broke down a lot back then, and we did capitalize on it.