Joe Marconi

What's next? We make a recomendation that a vehicle needs a transmission service at 65,000 miles based on the condition of the fluid and we get sued because the owner's manual states 100,000 miles. This is crazy. We make recomnedations based on condition. It does not state in the owner's manual when to change wipers and brakes, but if a car needs them, you replace them. Right? We are the pro's. The car maker wants t sell cars and create the illusion that their cars don't need a lot of maintenance. If customers followed our recommendations, cars would last a long time, break down less, pollute less, have a higher resale value, perform better and would be more fuel effecient. That's exaclty what the car maker does not want. Agree or not?

All great comments. And I agree: How to compete with the backyard mechanic?...You don't. Every business must define their customer base. Never compete on someone elses terms. Be fair and honest and profitable. If you know what type of business you want to run, you will know what kind of customer you want. Find those customers and don't worry about the rest. In the 32 years I have been in business, I have seen many of these backyard, under the table shops. They don't stay around for long and the ones that do are never, ever profitable.

Gave me chills. Thanks for posting this. We all need to reflect at times.

I had a little fun with a customer the other day. I was in a good mode and just could not help myself. Here’s what happen… A first time customer failed NY state inspection for a worn tie rod and also needed a tire rotation. After the service advisor informed him he replied, “Oh, I do all my own work”. Here’s where the fun began. I walked over to the service counter and..... Me: “So, I just heard you need a tie rod and a tire rotation” Customer: “Yes, and I do all my own work” Me: “Really, that’s great, so you want to take care of the tie rod yourself and the tire rotation” Customer: “Yes, I’ll take care of it and come back for the inspection sticker” Me: “Can I ask you a question” Customer: “Sure” Me: “What alignment machine do you have in your garage at home?” Customer: “Uh, alignment machine?” Me: “Yes, after you install the tie rod, you need to at least check the toe in, and that requires an alignment machine”. Oh, and what kind of wheel balancer do you own, Hunter, Coats, Snap-On”? Customer: “Uh, balancer”? Me: “Yes, you ARE going to check the wheel balance when you rotate the tires, aren’t you”? Customer: “Oh yeh, sure, you bet I will” I could see he was getting flustered so I told him I was just having a little fun with him. He looked at me a little strange. I then told him that we have all the machines, tools, equipment, information to do an expert, quality job and that some things really cannot be done in your driveway at home. You know what he said to me at that point? “But I do all my own work”

Great article! And so true! Just the other day a customer came in and said, "I have no time, I need my crank sensor replaced, I know that's the problem and you need to do it now". I calmly told him that we have a room full of peolple waiting already (I motioned my head to the people behind him seated in my waiting area). He turned around to look at the other customers and turned back to me and said, "this won't take you long, I would do it mysef but I hurt my back recently". At that point he pulled the sensor out of his pocket. Now, a little disturbed, I said, "when were you going to tell me you had the part"? He was silent fo a few seconds and replied, "Is it a yes or no". I said "no", and he walked out. So ,this guy is also out there somewhere in the ether searching and searching and searching....

This is where the issue begins. Think about it, you have to remove the tire from the car, inspect it, put it in water to find the leak, break it down, inspect the inside, perform the proper repair, remount the tire, you may want to check the balance, put it back in the water to make sure the repair is ok and put it back on the car. All for how much? Right now we charge $28.50 for this repair. Some people look at me like I have two heads. They tell me, "I can get it plugged down the block for 10 bucks". I do agree, we need to protect ourselves, the tire companys have washed their hands of any liability. What about the shops that don't care or worry about the liability, will they make it bad for the rest of us?

I know this will be a battle, but I cannot sit on my hands when I know that shops in New York and probably around the country are paying too much for workers compensation insurance, when it comes to their service staff. I employ 7 mechanics, 3 service advisors and office personnel. My service advisors are true service advisors. They do not turn wrenches, they do not get their hands dirty and they are not subjected to any of the same hazards as the mechanics. They might get a paper cut once in a while, but that’s it. But, I pay workers comp insurance for my service advisors at the same rate as mechanics. And, I am sure there are a lot of other shop owners in the same boat. New York state workers compensation board has no classification for service advisors and consequently the rate we pay for workers comp for them is the same as the mechanics. Which means each year thousands of dollars are wasted needlessly? I know that the State needs money, and going down this road may seem futile, but I am going down the road anyway. I am working with the local Trade Organization and trying to get a meeting set up with the compensation board. I would like to hear from other shops in New York, send me your thoughts on this and opinions. The more information we have the better. In addition, I would like to hear from shops around the country on their workers compensation laws with respect to mechanics and service advisors. Any help would be appreciated on this matter. Thanks in advance! Joe Marconi

My top tech had an unfortunate comeback the other day that cost us dearly. He had been stepping us his game for the past month or so, mainly because the work was beginning to flow in and he knew that due to mediocre winter sales, the shop needed to play catch up. Maybe in retrospect, I should have pulled the reins back a bit. I have seen this before when great techs get too caught up in production and sometimes quality suffers. The tech felt really bad and worked on his own time, coming in early, staying late and even coming in on Saturday to fix the problem. I did not come down on him too hard, I am convinced he genuinely felt bad and was willing to make amends. My job now is to insure that his confidence level is ok. I spoke to the foreman and we both agreed to dispatch to him a few basic jobs and to more closely monitor his work for the next week or so. This tech is not only a great producer, but has a great personality and a morale booster. I don’t want to minimize the mistake in any way, but we all make mistakes, including me. I thought I would share this with other shop owners, I know you have all been down this road too.

With all the recent news about improper tire repairs I would like to hear from fellow shop owners on what your policy is on tire repairs. It seems as if the tire manufacturers are washing their hands of any responsibility once a tire has been repaired. We need to protect ourselves from potential litigation. Maybe we share ideas, procedures and policy and learn from each other.

Welcome Larry. I know we are all looking forward to some of your stories, it sounds like you have a very interesting shop. Welcome again! Joe

How do shops find techs? What has worked and what has not worked?

I am glad you enjoyed the article. I feel that leadership is crucial with today's workforce and maintianing morale is also key. If you read about all the great leaders in history, Lincoln, Churchill, Washington,etc., you find that these greats knew how to motivate people and get them to understand the "greater good".

Are You Reviewing Invoices? Every shop should have a workflow process; from scheduling, to customer write up, to car delivery. Each step of the process must be clearly defined and your service advisors and technicians must be held accountable to insure that the process is executed properly. All notes, upsells and additional parts should be documented properly on the technicians work order and transferred to the invoice. A review of all work orders after the work is complete must part of your overall quality control system. Was all work performed and all parts accounted for? Are there any cores, returns or defects? Are all customer concerns being addressed? Are technician recommendations being communicated to the customer? Are recommendations and any unsold needed work being documented on the final invoice? Are technicians completing the required multipoint check list? Is there consistency in the process? These are just a few of things that need to be reviewed and corrections made. With each improvement you make in the process, you increase productivity, which results in more profits to the bottom line.

What a nice touch and a nice story. You know, maybe we focus too much on those customers that give us so much grief. We need to step back once in a while a be thankfull, there are a lot of great customers we take care of. Glad you wrote this article, Gonzo. It made me reflect on many situations I have had thru the years like the one you wrote about.

Sorry, I don't sell any used tires, no one in my area does. We sell a ton of new tires. What type of market are you speaking of? We have many cusstomers who commute to work and put 25k plus miles on per year. Why not create a market selling new tires? You can add a few benefits such as, Lifetime rotations and free flat repairs, to get the customers returing to you. Just a thought...

The nationwide new car dealer population fell over 21% between 2000 and 2012, plunging from 22,250 to fewer than 17,540 outlets. This shuttered more than 45,000 dealer bays and slashed dealer light vehicle service (DIFM) share. Much of the dealer decline occurred between 2007 and 2011 when more than 3,500 dealers disappeared. However, the dealer population slide now appears to be over and dealers, with a different prospective on the service market today than just a few years ago, will be a strong competitive force in the U.S. DIFM market moving forward. ***resource: Lang Marketing, Aftermarket Insight **** I think this “thinning of the herd” may have produced a force to keep a watchfull eye on. The new car dealers that are left want a greater piece of the aftermarket pie. That means they are coming after our customers. I know we still are the preferred choice of the American motoring public, but we should not take our market share for granted.

Always look forward to good joke, breaks up the day! Thanks and keep them coming!

Are your service advisors engaging customers, or are they part of the walking dead? Ok, I admit it. Let’s get it out in the open. I am a zombie movie fan. There is something about dead people shuffling around grunting in an expressionless, catatonic state that captivates me. The new TV series, The Walking Dead, is my current favorite show. However, when it comes to catatonic customer service people…well that’s another story. Two Saturdays ago I went to an upscale clothing store to purchase a new suit for my son’s wedding. Being a special event and the fact that I haven’t bought a new suit since Reagan was President, I figured it was time. Buying a quality suit was my goal, the money was secondary, not that money isn’t important, but this is my son’s wedding and buying a nice suit would, for me, add to the overall enjoyment of the occasion. Well, the karma in the store just wasn’t right. Everyone seemed preoccupied, confused and stressed. After waiting for nearly 10 minutes I finally managed to get a saleswoman to help, and together with the help of my wife, I picked out a real nice suit. The Tailor worked his magic and told me to come back in a week to pick it up. Last Saturday I went back to the store to try on the suit. Again, you can tell something just wasn’t right. There were sales people on the floor and a few at the sales counter. But they were not engaging anyone, just shuffling around aimlessly. Every minute or so a sales person would shuffle by us gazing into space. As I tried to communicate, I could hear a faint grunt coming from the sales person. I couldn’t make out what they were saying, but it was definitely a grunt…..maybe a secret sales language? Or code? After a while my wife turns to me and says, “It’s like the walking dead”. So here we are in the middle of this upscale clothing store, where my original intention was to have an experience what would add to the enjoyment of my son’s wedding, and it feels more like the movie set of “The Night of the Living Dead”. I did finally find the same saleswomen who helped me originally. I quickly tried on the suit, grabbed my wife and ran out of the store. I was afraid that whatever infected these people might be contagious. It may sound like I am making light of the situation, but don’t mistake my humorous analogy with a very serious situation. This incident got me thinking about business in general and how customers are treated, especially in our shops. When customers come into your shop, are your service advisors engaging with them in a timely manner? Are they smiling and act in a way that make customers feel special, like family? Are your service advisors doing all they can to provide world-class service, treating people with respect, smiling and engaging in a little small talk? Or are they more like the Walking Dead, arms hanging at their sides, expressionless faces, with eyes staring off in the distance and grunting like zombies? Let’s face it; being in business is not always a walk in the park. Some days are tougher than others, and we all get caught up with the daily struggles that weigh heavy on our shoulders. But the truth is the public has no idea what we go through and we need to understand that above all the customer experience is what matters most for the success of our companies. So, where ever you are from now on, whether it’s a restaurant, hotel, on a plane or even in your own shop, pay particular attention to the sales people. See if you can spot any of the walking dead. If you do, tell them they just may be better off auditioning for next year’s Walking Dead TV series, and stay out of the customer service business. View full article

Success By Helping, Not Selling We all know that a business must remain profitable to survive and thrive. But to focus only on numbers and sales will backfire in the long run. In business, your primary objective is to help your customers. Find out your customer’s needs and wants. Learn about how you help them by identifying and solving their problems. Helping people go beyond your customers too. Become more involved with your employees, vendors and your community. By adopting a culture of helping people, you will be well on your way to achieving your own goals. “In helping others, we shall help ourselves, for whatever good we give out completes the circle and comes back to us.” Flora Edwards

I think the glaring issue here it the part quality. We see more and more cheap parts that are killing our bottom line. I don't want to single out China, but China and the current "low price mentality" is an issue. After repeated failures of new china axles, I will now rebuild my own, if I cannot get a reman. NEW, no longer mean better, nor does it mean quality. A problem, as the one in this article, ends up with a lot of second guessing, loss of profits and low morale. It's not good all around. You are the rare exception Gonzo. Many good techs will throw their hands up in disgust. I track part failures and I see a definite rise in premature part failures and a rise in failures right out of the box. This will be an on-going issue. My fear, will it get worse?

First, congratulations on your success. Your business is young and you have done well. All businesses evolve and must grow. But smart growth is different than growing for the sake of growing. Change is also needed in business. Businesses that do not grow and do not evolve remain stagnant and become stale. Change is good because it fosters growth and builds excitement. People also want to be associated with forward thinking leaders. Fear of the unknown keeps many people from reaching their potential. Taking risk is all part of being a leader and a shop owner. While no one can guarantee success, I do know that inaction in business is not good for the long term and a mistake. Create a plan and make calculated decisions. Don’t let the fear of the unknown hold you back. If you make a mistake, learn from it and move on, but always move on, never retreat. For me, I chose a local bank in the mid 1980’s that I knew was community focused. Each time I needed a loan for improvements or expansion, the bank was there for me. I expanded my business time and time again, starting with a 4 bay shop and grew to a two-facility company with a total of 11 bays. Again, calculated smart growth is good, don’t fear it. Embrace it. You started with nothing and look what you have accomplished in just 3 years. You are a business man and a leader. Leader must have vision. Create your vision, get the loan you need, put a plan together to make sure it makes financial sense and you will be fine. Being a shop owner means you are on a never ending journey, constantly evolving. It’s not about reaching a certain level or size, it’s about continually moving forward. You will have good years, bad years and great years. Business can be like a roller coaster ride, it’s exhilarating and scary.

Comebacks will eat into your profits, especially in today’s world. Part companies handle labor differently around the country. But the fact remains that when we have part failure, someone pays for it, and when it’s the shop owner, profits are lost. We track on a spreadsheet all comebacks and designate: Part failure, tech error or other. We track each vendor for part issues and will track the percentage from each supplier. When we see part trends, we bring this to the attention of the supplier. The spreadsheet will also tell tech error and track their comeback ratio. It may seem like a lot of work, but warranty must be added to your cost of doing business. Let’s say you account for a 2% warranty for your Cost of Doing Business, and you see an increase to 4%, you need to analyze this to find the problem. Is it a part issue, or part line issue? Is it a tech problem? Either way, knowing this information can help you correct it. I would recommend sitting down with your supplies and let them know you will be tracking part comebacks and come up with an agreeable labor claim arrangement, if you can’t come to an agreement, it’s time to look for a new supplier. If you have a tech comeback problem, find out the reason: Training? Procedure issues? Sloppiness? Other?