Joe Marconi

Many shop owners have increased their labor rates in the past year or so. That is great news. Now, what's your next move? Anyone who knows me knows that, in my opinion, in general, we have been too cheap for too long. But, determining your labor rate is not the only consideration to attaining a profitable business. What about productivity, efficiency, keeping expenses in line, gross profit, and net profit? What are you doing to ensure you are meeting the financial needs of your business and also paying your employees the money they desire?

There are many programs out there, and some are better than others, depending on the size of your business and the type of work you do. From what I hear around the industry, a few of the top names are Tekmetric, Shop Ware, Protractor, Micthell1 (only to be used with Bolt On Technology), Auto Leap, and Shop Boss. There are others, but I would say these what I hear are the most popular. I used Mitchell, but there are a lot of drawbacks. Now that I coach, from my perspective, many clients are happy with Tekmetric, Protractor, Auto Leap, and for smaller shops, Shop Boss. Let's see what other ASO members say about this. By the way, any company you are interested in will do a demo.

Anxiously waiting, thank you.

Wow, fascinating how those images were generated, and thanks for your take on the future. And sad to admit I worked on those cars! Years back! Question, do you think the auto repair business is as "recession-proof" as people claim it is?

I sold my company and the land a little over a year ago. Made out good with the sale of two locations and property. However, one of the things I did (on the advice of my financial advisor) was to also fund a retirement plan over the past 25 years. Your question is valid and right on target, but you need advice from a CPA accountant and your financial advisor. For me, while the sale was good, I had to pay capital gains tax, but it wasn't that bad since the property was redeveloped in 2008, and I still had a lot of depreciation that helped reduce my tax liability. Another thing to consider is how your money will be invested. I moved my investments to more slow growth over the years as I got older and added the proceeds from the sale to this portfolio. You don't make large gains in a good market with slower growth investments, but when it turns bad, you don't lose as much. The point is that you need to sit down, do your budget for after you retire, and then determine how much your money will last with different scenarios. A good financial advisor can help with this. Only after that can you determine if the dividends will be enough. Sorry for not giving a direct answer, but I want to be honest from what I have learned.

Qualified techs are in demand and demand high pay. Cant blame them. As shop owners, it is crucial that we know our numbers and adjust for the higher payrolls. And all shops need to do this. The days of undercutting your labor rate must end. Let's face it, in general we have been too cheap for too long.

What are your predictions for 2023? Will it be that we will face an economic downturn? Will EVs increase market share? Will the tech shortage get worse or better?

Having lived through many evolutionary steps in the auto industry, I have faith the auto aftermarket will always find a way to succeed. EVs will bring big changes, but not anything that we cannot overcome. Great information.

Thanks for the update. And, thankfully you found out soon enough.

I have to admit, this topic is a little different from the usual topics posted, which are from the perspective of the business owner. However, it is an interesting post! There might be a great opportunity here, but there are a few red flags too. And you need to move cautiously. Mostly to protect yourself. You did a good job at outlining the details, but something tells me there is more to this story. From my perspective, as a business owner, to reach out to someone that I don't know and offer them a deal like this, would be extreme. I would want to build a solid relationship that takes time to develop. And there are a lot of steps in between to make an offer like this. Trust me, I have been there with people that I knew, that I "thought" were good candidates to run my company and someday buy it, but it did not work out. I don't know you, but I would bet that based on what you said in the post, you are a qualified person who has the experience, talent, and skill level to run an auto business. I would suggest that you seek advice from a business attorney, an accountant, and a business consultant knowledgeable in the franchise model and independent model. Also do a lot of research on this person, his business, and anything else relative. This is a big deal in your life, and if it leads to ownership someday, you need to do all you can and perform your due diligence to protect yourself. I don't want to sound negative, in fact, I wish you the best of luck and hope this is the opportunity of a lifetime. Just move slowly. Please keep the conversation going, and hopefully, we can all help you.

There is some truth to what you said, referring to not being a car guy. The best service advisors and front counter people I have hired were not former techs.

Good for you! I also agree with multi-tier labor rates. And I also agree that in spite of what shop owners think, most people do not question labor rates. Parts are a different story, thanks to the internet and part companies marketing to consumers.

AUTOMOTIVE BUSINESS OWNERS! Want to experience the most powerful Shop Management Course on the planet? Join Kevin Vaught and me, Joe Marconi, in San Diego as we present the Elite Fly with the Eagles! The course will be held Feb 7th to 9th, and you have our promise; you will come back reenergized and ready to take your business to another level! Improve your skills in time management, leadership, and goal setting · Fully understand your shop's financials and key performance indicators · Find and hire superstar service advisors and technicians · Turn your existing employees into self-motivated superstars · Fill your bays with the right kind of customers through new marketing programs · Utilize your step-by-step Action Plan to ensure your ongoing success Elite clients can attend at no charge. To enroll and to get more information: eliteworldwide.com/eagles

Believe it or not, technology may replace some of the jobs that humans traditionally performed. Do you welcome robots to the workplace? Would this harm or help our industry?

Happy New Year to all Auto Shop Owner members and their families! It's been a wild ride the past few years, but automotive shop owners and their staff are amazing and resilient people! Let's make 2023 and beyond our best years!

As time goes on, we will learn a lot about Tesla's and other EVs. And there will opportunity there.

Thanks for the info!

I agree, sometimes waiting and looking for the right person, is the best long-term choice.

From what I hear from my contacts who own tire stores, Tesla and other EVs wear tires out sooner. The low center of gravity, the weight of the vehicles, and the torque on acceleration all contribute to faster tire wear. NOW, will tire companies produce a different tire for EVs? Long-lasting? If that happens, the price must increase.

I have the books and articles from Gallup and fully understand the concept, but never actually did the strength finder test.

A friend of mine recently purchased a Tesla Model 3. I asked him, "Why?" He responded, "I don't have to buy gas, and the Tesla requires no maintenance or repairs." Oh really? If this is the public perspective of the electric vehicle, they are in for a shock. Yes, a fully electric car does not require gasoline, but they are far from problem-free or maintenance-free. EVs still have tires, steering systems, suspensions, a TON of electronics to repair and reprogram, a complex HVAC system, wheel bearings, differentials, brake systems, cabin filters, wiper blades, require wheel alignments, and on and on and on. Do we need to educate the public? Your opinion?

You bring up great points and a very concerning state of what is going on in this country. Good old-fashion work ethic is becoming a thing of the past?

Great advice! And I can safely bet that we have all been there!

A great podcast, worth listening to!

As we close out 2022, it's time to reflect on the past year. Review your accomplishments, the state of your business, your personal life, and things that could have gone better. The key thing to remember is that it's better to have a plan and goals instead of trying to fly blind. Establish your goals for 2023 and beyond. Include family time too, and time for yourself. It's not all about business. Having the right balance will actually make your business more successful. Speak with your employees too. Find out from them what went wrong, what went right, and what they would like to see in the coming year. While you can't always act on what your employees want, getting their perspective will not only help you create the plan moving forward, it will help to build morale, a win/win for all.