Joe Marconi

I was speaking to another fellow shop owner about the new Mitchell SE Management Program and how it automatically sends our customer information, repairs, mileage, etc directly to CARFAX. I am curious to see how shop owners feel about this and is everyone aware of this. In addition, if other shops use different management systems, are think linked directly to CARFAX too? We had a very sticking situation when a customer was trading his car in and the mileage came up wrong on the CARFAX, we entered the wrong mileage by mistake. We got it corrected thru CARFAX, but the customer was not happy because it delayed making his deal. We had to prove to CARFAX that we did not kick back the mileage. Any feedback would be appreciated.

You are right, the difference is you are taking care of your regular customers who frequent your shop on a regular basis. I am not suggesting that we start catering to people off the street who do not value what we do and give away services. If someone comes to me with a particular battery/charging/starting problem, we will charge a diag fee to test and analyze the car. But during a routine service for regular customers, we need to think about their battery and other service items. For example, during an oil change service, we also check fluids, lights, tire pressure, etc. We do that becuase it's the right thing to do for the customer. I don't like giving anything away and charge accordingly, but we do take care of regualr customers by building value in our services. And, by doing all the right things, we will increase sales and profits and that will pay for the expense of tools, equipment and payroll. I hope I cleared things up?

You bring up very good points. I want to add one thing. We don't have quotas in my shop, but we do adhere to a process that I know is in the best interest of the consumer. For expample: Battery Sales. We don't put a number on how many batteries we sell, BUT we do insist that every car we service three years or older get a free battery test. We tell the customer it's time for your free test, and if it fails the customer has the option to purchase a new one from us or decline. This process is not intrusive but does serve as a benifit to the customer. There is no hard sell, and no sales tactic, just a process of informing the customer. We end up selling a good amount of batteries, the honest way.

From my experience, if a dealer tech has a lot of years with one car line (15 years of better), they can't make the transitiion to an independent that deals with multiple car lines. The only dealer techs that have worked out for me were the younger techs. I now have 3 former dealer techs, but when they came to me there were all in their mid 20's. They are all working out fine. The dealer techs that were hired in the past that had 15 years or more did not work out. In fact they lasted about a month.

That's too bad. I hate to hear these things. We have enough tough times running our business. Plus, dealing with a fire is horrible.

Welcome Rob, glad you found us. You will not be dissapointed, there's a lot of great information on this site. Looking forward to your particpation. Welcome aboard!

That's pretty funny, I have to use that joke....

I received a nice compliment the other day. A fairly new customer said to me, “I like coming here because when I walk through the door, you guys know be by name, you remember me”. He went on to tell me that at the new car dealer, he would have to give his name every time, verify his address and phone number. It was just too impersonal. I guess this is another area where we dominate when it comes to customer service.

I just hired a tech from a local Toyota dealership. He said he was tired of the flat rate pay program. There were weeks when he booked over 60 hours and other weeks where he barely broke 10. But, the interesting thing he told me was that the dealer has been reducing flat rate times below published times in order to compete and to raise revenue. For example, a wheel alignment may have paid 1 hour, but the dealer, to compete with the market, has reduced the price and adjusted the alignment to .6 tech time. Other reductions are tire rotations, tire mount, major services, oil changes, Timing belts, other repairs and tire balance. In addition, Toyota has severely cut back on selling fluid services and any other preventive maintenance services that are not in the owner’s manual. All these reasons combined are making it difficult for an honest tech to make a decent wage in a dealership. Could this be an opportunity for the independents to acquire technicians?

36%, Wow! That is an outstanding number, you must be doing a lot of things right. We are 6% ahead of last year, which is what I projected. March was flatter than I expected, but Jan and Feb were above average. Overall pleased. Consumer are still concerned and are looking more for value, and gas prices are impacting their pockets, but luckily were are in a business that people need our services. Curious, Do you track both gross sales and net profit?

I am not quite sure what the reasons for all the strange happenings, maybe the moon, maybe the sun spots, maybe something else we are not aware of. But one things is for sure, there are times when the world seems to be off kilter and when that happens, strange people are drawn to repair shops like moths to a bright light.

No, I have found that those customers that go by the oil maint light are coming in with way over 10,000 miles on the oil. And when that happens, the tires are worn from lack of rotation, lack of tire pressure (some even ignore the TPMS light) the wipers are ripped and digging into the windsheild, etc. No one checks their own car like they should. Extended interval can lead to other neglected key maintenance areas. Under ideal conditions, the oil "may" be ok, but when you tell somone don't worry about the oil change untill the monitor tells you to, can be asking for trouble. I had a customer with a new Honda, she was told by the salesman not to change the oil untill the monitor light came on. She called us becuase she was concerned that the oil life still show about 40% and she had over 12,000 miles on the car with the original oil in the engine! I think the factory is doing and injustice to the consumer by promoting exteded oil services and by removing so much maintenance services from the owner's manual. I guess the car makers feel that if the car is well-maintained it will last too long and that would hurt new car sales????

There are a lot of part suppliers out, and I have been around the block for more years than I care to admit. For me, it’s about service and relationships. We all get frustrated from time to time about part quality, deliveries, pricing, etc. In the end I want to know that I have someone I can talk to, one on one, to help with key issues. In my area, no other parts company qualifies under this criteria than CARQUEST. They do deliver (sorry for the pun). I would like to know what other shop owners value from their suppliers.

Welcome to AutoShopOwner, Billy. Glad you found us. You will enjoy this site, it is packed with great information that relates to our industry. Please join in from time to time, ask questions, voice your opinion, vent....whatever....We can all benifit. Joe Marconi Cofounder, ASO

I deal mostly with CARQUEST for all my parts, and their new brake pad line has solved a lot of issues, with respect to noise, dust, wear and hardware. My CARQUEST rep is in constant contact with me; if there is an issue he will take any recommendations back to his higher ups. I don’t have much experience with Wearever. I used Wagner years back.

ASO members, I wanted to let all of you know that on May 5th Elite president Bob Cooper and I will be co-presenting a full-day marketing seminar in Philadelphia. At this seminar we will cover: • The secret to setting advertising budgets that will save you money. • How to identify your perfect customer. • The best-kept secrets of the great websites and social media. • How to dominate your community with grass roots advertising campaigns. • How to turn your existing customers into fans. • How to attract the emerging Gen Y market. If you’re interested in bringing more of the right customers into your shop, I’d love to see you there. Below you will find some more info on the seminar, and a link that you can click to learn more, or enroll directly online. Please feel free to let me know if you have any questions. Event Title: Marketing Auto Service During Tough, Competitive Times Date: May 5th, 2012 Time: 8:30am – 4:00pm EST Location: Philadelphia, PA Link to Event Web Page: http://www.eliteworldwidestore.com/event/253/marketing-auto-service-in-tough-competitive-times.html Joe Marconi

I hate to see this, it's not good for any of us. The fact is that most of us are hard working people that have a tough time getting what we deserve. We put in long hours, need to have the skills of DaVinci, the intellect of of a Rocket Scientist and the business knowlegde of Donald Trump. The media never does a story on the majority. It's a shame, I wish this never happened!

Oh, you are so right!

Gary, "interesting" is not the word I would use.....Scary is the how I would decribe it

Great insight on a topic we are all well aware of. The customer is the common denominator. From my perspective, dealing with people is a lot harder than dealing with cars. The car just sits there, nice and quiet, just waiting for you to find the cure. The public, well that's another story....

Great question. We got away from a bonus based on sales only, for that reason. Our goals are now based on gross profit dollars and each service writer needs to understand a bonus can only be awarded when the company makes money. In other words, a shop can have a $10,000 sales week with $2,000 in profit, but another week may yeild $4,000 from $10,000 in sales. So, your point about rising costs is well taken and I am glad you brought that up. Calculate your cost of doing business (breakeven) and add a percentage on top of that to insure you make a return on investment, only after that can you begin to start paying a bonus to a service writer.

Gonzo, that will happen some day, ASO has to grow a bit more, but it's in the cards....

I went to lunch the other day with a good friend of mine, who is also a shop owner. He took me to a local Deli and introduced me to the owner. I asked the owner how things are, and he responded by giving me the “thumbs down” sign. I am assuming business is not that great. As we sat down to eat our lunch I pointed out to my friend that as the owner of the business he should never covey any negative feelings about his company. And unless there is something really tragic in his life at this time he should remain upbeat and positive. Any negative attitude will have a negative effect on his business and his life. We all know how difficult business is and the past few years have been a challenge for all of us. But I am a firm believer that the more positive we are the better off we will be and the more successful we will be in the long term. To focus on the negative will only bring more negative things to you. My tip to all shop owners is to remain positive and convey strength at all times toward customers and the people who work with you. It will pay dividends in morale and eventually productivity. I know at times it’s hard; you as the owner have the weight of world on your shoulders that others may not understand. But, you are the leader of your company and leaders must set the tone that others will follow. You, your company, your employees and your customers will all benefit from your positive attitude and personality. So, when someone asks you, “How’s it going?” You say….”Great!”

It looks like the rise in gas prices is affecting the economy once again. Everything related to fuel cost will also rise, which will dampen the economic recovery (if there really is one). The confusing thing is that I think people are just tired of the roller coaster and all the bad news. I recently spoke to many business acquaintances at the local chamber of commerce meeting, and in general business is down in every sector. But, last week I went to the Cheese Cake Factory with an old friend on a Tuesday night and it was packed. We had to wait 35 minutes before we were seated! The economy may not be the best, but people are spending. They just might not be spending where we would like them to. It could be because people need to choose and budget their money better. I guess when it’s a choice between Teriyaki Chicken at the Cheese Cake Factory and a 60K service at my shop, the Teriyaki Chicken wins out?

Again, it's because you are truly a pro!