Joe Marconi

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?

Mitchell1/Shop Key Management Work Shop Saint Louis, MO July 19-21 This advanced training workshop designed to turn existing shop management system customers into power users who get the most out of their software and business. These user-group sessions are designed for those who have previously established competence using their shop management software and now want to learn more advanced capabilities, better methods and shortcuts. This two day session will guide users through all levels of functionality in the Mitchell 1 Manager and ManagerPlus system. Instructors will explore program setup values, inventory, reporting, best practices and advanced transactions, as well as integration with aftermarket cataloging. Attendees will also learn about the new Mitchell 1 SocialCRM™ customer retention and new customer acquisition service during a relaxed evening reception. For more information click here: http://www.buymitchell1.com/form/m1usersinfo.htm

I am not one to stick up for Juffy Lube or any other quick lube, but I do not like the tone of the class action suit. While the 3,000 mile interval may be a little out-dated, a business as the right to make recomended oil change intervals and not be held hostage to what the factory states. The car makers want to sell cars, if they could they would put a pad lock on the hood. Car makers know that preventive maintenance and more frequent oil changes will extend the life of any car to hundreds of thousands of miles. We know that, that's why we promote preventive maintenance. I recommend 4,000 for conventional oil and 7,500 for syn. I educate my customers who care about their cars to adere to this policy. I would hate someone else dictating policy for me. Imagine your doctor not being able to make recomendations? Please, I would like to hear from other ASO members on this one...

I hope everyone enjoys a day spent with family and friends, and also reflect on this day in history, the adoption of the Declaration of the Independence; July 4th, 1776.

All valid points, Thanks. I was being sarcastic about being English, it was. Sometime my reaction is because my experience has shown that some attributes are part of a bigger picture. My handwriting is terrible, but as you said, it's not a direct link to my ability. The difference: I take the time to write so others can read it. The tech in question has completed a two-year course from a prominent automotive school. He has the intellect and the potential. He is well spoken and has talent. What I think he lacks is the awareness of paying attention to detail. My quick reaction was more due to the fact that we have gone over this before. Handwriting and sloppiness are two different things. It’s my job as the leader of the company to look at the entire person. Again, decades of experience has taught me to look at work habits and to convey the importance of being a complete individual. We have many in-house meetings, both team meetings and individual meetings, working on all the little things that make a big difference at the end of the day. I posted this more out of frustration for my reaction or over-reaction. I am old school in many ways, but I truly have this tech’s best interest at heart, and the interest of everyone who works for me. I don’t want sloppiness to put himself or someone else in a potential dangerous situation. Thanks for the input, really do appreciate it!

Yes, please send me the link, I would like to learn more about it, thanks...

We now have over 800 members and I want to welcome all our recent new members. This site is getting more powerful day by day and I see great things in the future. I also want to give a special thanks to all our current veteran members who share with us their knowledge, opinions and thoughts. It's like I always say; there is a wealth of knowledge among us and networking today will only make us stronger in the future!

We have specific forms we use with first time vehicles, to obtain all the correct vehicle and customer information. Either the service advisor will fill out all the vehicle information or the tech will, or a combination of both. It was very busy the other day and I gave my young tech the form and instructed him to bring a first-time customer’s car in for a state inspection and a LOF. He brings me back the form filled out, but it appeared he used a language I did not recognize. I called the tech over and said, “Please help me understand what you wrote, is this the VIN number? Is this in English”? He said let me read it for you. He grabbed the form and stared at it for a few seconds and then he said, “Boy, I can’t read it either”. Now I’m getting hot, it was busy and he wasting my time and his time. He had to run out to the car again and re-enter the info. I said to him, I don’t expect you to write like a calligrapher, but you need to write so that others can read it! He said that’s the way I write. I will try to write better. I told him that’s the reason you don’t write clearly, you were told to “try” in school, but this is real world, trying is not good enough. He walked away upset and I was too, maybe I was too tough on him. But please, he couldn’t read his owner hand writing. Was I wrong, right? Too tough? Not tough enough? The way I see it, if he's sloppy with his handwriting, will that spill over with his work?

Gonzo, it’s getting worse and worse. Partly due to the economy with people attempting to perform repairs using the internet as their pipeline to the "All knowing and All wise" somewhere in the heavens. The other reason is the A to Z part stores claiming to have "advanced" knowledge in solving problems (like the way I phrased that?). I think I told you about the BMW owner who had a charging system checked out by their mechanic and then rechecked by A to Z. He brought me the alternator and after a debate on why we need to test and diagnose the problem first, he reluctantly agreed to the diag. The alternator was fine; the connection at the back of the alternator was bad. A half hour labor charge only to repair. So, he wasted his money by buying an alternator that now he cannot return. Good stuff Gonzo, not good for the BP, but good stuff!

Correctly if I'm wrong, but Mitchell revamped thier CRM program? Correct?

The start of summer and the end of the school years usually means that people will be planning road trips. Take this opportunity to perform pre-trip inspections and promote safety and peace of mind thru proper maintenance. Do it with every customer. Let's share our summer promotions....

I can't tell you how many times I get customers in for no A/C, only to find out that either the A/C button was never turned on or it's in the heat mode. I once had a customer complaining that her rear speakers were not working recently after we serviced her car. One quick look at the read deck revealed a blanket and 2 pillows covering the speakers. The funny thing is that she claims the blanket and pillows were there for years! I could go on and on....

An employee handbook is much needed today. My only word of caution is that states differ in labor laws and other regulations. So, using someone's manual may not be appropriate, but you can get ideas. There are companies and programs you can use to help deisgn an employee manual. There are trade organizations that can also help. You should also seek the advise from your lawyer. if you use a payroll company, many times they will offer this service also. Good luck!

Gonzo, I hear what you are saying and I point to the quality of the person more to the quality of their mechanical ability. My last visit to my family doctor was to address an issue with headaches. She did her normal checks and asked me a bunch of questions, but she KNEW when to stop and say, we need to bring in another doctor, more specialized with these issues. And I think this is where so many mechanics and shop owners get into trouble, their pride or whatever, does not allow them to think clearly. We cannot be everything to everyone. I have 7 mechanics aging from 21 years old to 57. Obviously the oldest is the most experienced and is the mentor to the younger techs. But, I have one tech in particular who has was hired as an A based on his age and experience, but clearly is a B and may not ever reach A status in my opinion, but that's ok. We are all different, with different skill levels and different brain power. Even the best must know their strengths and weaknesses. More importantly we need to know the weaknesses and strengths of our employees. What it all comes down to is the level of professionalism we have and know how to get the help we need. When I get stuck on a problem, I find out who can help me and my customer. That's what it's all about. Moving forward with no real plan or knowledge is wrong. Lastly, we should always strive to be the best we can, know what we excel in, and know what areas we need to stay away from.