Joe Marconi

There are infinite ways to set up a pay structure for techs, and for all employees. It would be hard to pinpoint what's best for a particular shop.

When I owned my auto repair company, I found that paying people a very competitive base wage, with the opportunity to earn more through increased production (for techs), and having sales goals and gross profit goals for service advisors and managers. I also believe in team bonuses. 

With that said, I did also track comebacks and customer service scores (online reviews).  You can't make the objective of more sold hours and sales, without considering the quality of your repairs and service, and also the customer experience. I was not a fan of a pure flat-rate plan, but there are shops where this is an effective pay program, with the right culture. 

Please note: Every pay plan should be received by a labor law attorney or human resource company. 

13 hours ago, weighit said:

I was a service writer at a Mercedes dealer years ago, the pay plan there was the light line techs were given a 40 hour pay, even if they failed to flag that amount of hours, the next tier was set a 45 and the heavy techs were set at 50 hours pay. The owner was a nice fellow and wanted each employee to want to come to work, but also wanted zero, none, no comebacks. His thoughts were if your sure your going to at least flag 40 hours there was no reason for any short cuts, rushed jobs and the possiblily to cause a comeback. that just ticked off the customer and made the dealer look bad. I have to say the entire service department worked extremely well and everyone seemed interested in doing a good job. And that was back when labor rates were in the mid $60 per hour range. None of the other dealers in the "Motor Mall" did that and seemed a lot of the techs in those other dealers were always coming in applying for a job. We rarely had any turnover in our techs.

A great strategy, based on culture!

Would you say that the technicians consistently produced the hours that were needed to maintain sales and profits? 

6 hours ago, Transmission Repair said:

I have a rule to never do any kind of advertising without a tracking number attached to it.  Call tracking is a measurement tool let you know what advertising works and which ones don't work.  

 

A good strategy, for sure!

3 hours ago, Eric Roberts said:

Diesel + Hydrogen mix from out of Australia Great News

Of course we all now know about the ridiculous race set out by our government to rid the world of carbon burning materials including our beloved fossil fuelled cars. In recent times we have had the world of electric and hybrid cars rammed down our throats. I know that I am a small garage owner and so have self-interests in this drive to disaster. Of course to rid the planet of petrol and diesel vehicles.

However people are realizing the foolishness and impossible targets set out by our politicians. Living without our cars will be an impossible disaster to most drivers in the UK. Millions of drivers will be forced off the road so that our politicians can brag about their achievements.

Well thank God that there are people out there looking for alternatives to the dreaded electric cars. I do understand the need for cleaner air to protect the planet from greenhouse gasses but scientists are working all the time to prevent this. Giving us cleaner cars from engine designs that use other materials along with the "status quo" of our regular petrol and diesel engine cars.

Electric and hydrogen cars already with us

Of course, electric battery operated cars are now with us thanks to people the likes of "Tesla". However these are far from perfect. Speaking from the UK, s prospective, we are a country of old "Victorian" architecture. We have very narrow streets and roads which will be unable to support the millions of electric charging points required.

At the moment the winner for me will be in the form of "hybrid" cars. These are now becoming very popular. With an engine supported by a standard battery and run on petrol. Combined with a lithium type battery. Hence the word "Hybrid".  Car manufacturers certainly like this type of idea for their customers and engineers have been studying and working on different ideas with mixed types of fuels. Including "Hydrogen fuel cells".

Thanks to a great article by journalist "Will Locket". Then we are looking at very strong and affordable competition to the EV revolution.

Australian Engineers come up with a great new revolution

I must confess that reading article has made my day. Researches in Australia have come up with a technology that can convert a diesel engine into a "carbon neutral" engine. The idea is to combine the burning of twin fuels, diesel and clean burning hydrogen. This is fantastic news and will include other diesel vehicle, including, and trucks farm vehicles.

So confident are the Australians that they are looking to convert certain types of diesel engines in the next couple of years. This is fantastic news for the public in the UK who love their small run around cars and the small garages that service and repair these vehicles.

The full technical merits can be read in this great article by Will Locket. I will certainly having a beer tonight to celebrate this great news and keep my fingers crossed that everything goes well for the Australian car designer and developers, without retributions from the EV and green lobby. This development may also make the UK government change its mind about banning the sale of  petrol and diesel cars by 2030. So allowing millions of families in the UK to keep their diesel cars which will be by then "carbon neutral" and fit for purpose.

Original article by "Will Locket"

Excellent post, and while disturbing, it is nice to see that we in US are not alone with the issues of fossil fuels and EVs.  This new research in Australia is interesting and hopeful.  My fear is that the that the same force that is looking to end fossil fuels will block this new technology. 

Again, great post! 

TACKLING TESLA MISCONCEPTIONS

SOURCE: Motor.com

Posted on October 20, 2022

An independent shop owner reviews the experiences that he and other professionals have had servicing vehicles made by the world’s largest EV manufacturer. This first of a two-part article discusses seven misconceptions 

 By Jay Huh 

Today, it is hard to ignore the popularity and the exponential growth of electric cars, specifically Tesla. In 2019, Tesla delivered 367,200 cars globally. In 2021, they delivered 935,000 cars; that’s an increase of over 250% in only two years. In Q3 of 2022 alone, Tesla produced 365,000 cars…  just shy of entire 2019 sales. What spurred this massive growth in EVs? Is this trend here to stay? Many automotive professionals and independent shop owners including myself are soon to be at a crossroads where we need to decide whether to pursue investing in electric vehicles or ignore them. 

This year we saw a massive spike in gas prices, over $120/barrel oil that sent gas prices soaring to over $6/gallon in some parts of the country. Undoubtedly, this pushed some consumers to find solutions for a cheaper fuel source. In May of last year, we also experienced a price surge when the Colonial Pipeline was shut down. It was that week where I decided to buy a Tesla. The result? In 15 months, my wife and I have logged a total of 60,000 miles in a Tesla Model S, Model Y and a Model 3. I can confidently say there are many misconceptions floating around about EVs. For the first installment of this two-part article, I interviewed two shop owners and a master certified Tesla trainer and share their experiences surrounding seven common misconceptions. 

 Misconception #1: Teslas are difficult to work on 

file:///C:/Users/joe/AppData/Local/Temp/msohtmlclip1/01/clip_image002.jpgAaron Jones, Tesla Master Technician, automotive trainer for OPUS IVS and WORLDPAC Training Institute, says, “Teslas are very component-based and the OEM does its best to make a ‘plug and play’ software to diagnose everything that is wrong with this vehicle, so it’s not a lucrative business deal.” 

file:///C:/Users/joe/AppData/Local/Temp/msohtmlclip1/01/clip_image003.jpgSeth Thorson of Eurotech Auto Service (four locations based in Minnesota, $6 million/yr revenue) says: “Tesla is a technology company first, car manufacturer second. The car in itself is the scan tool.” 

 In the automotive industry, diagnosing the fault correctly is often found to be the most difficult task in a repair. According to Jones and Thorson, Tesla is reversing this trend with software and, with the most difficult part of repair taken out of the equation, it should in essence make working on Teslas much easier. Almost all of Tesla fixes for recalls are done through over-the-air updates, says Thorson. 

 When asked about the learning curve in working on Teslas, Jones states: “I think the learning curve is taken away as soon as they try.” 

 Misconception #2: Easily electrocuted  

 Bernard Tripp of Autohaus Lake Norman in North Carolina says: “a common reaction I see is how people act like they will be electrocuted if they remove a tire or a trim panel. First off, the car has both high voltage (400V) and low voltage (12V) systems, most of which are low voltage. This means the infotainment, windows and locks, seats, lights, etc., are all low voltage and can almost be treated like any other vehicle. The parts that are “high voltage” have safeguards in place to prevent accidental contact while live. I don’t think people realize that outside of the HV system, it is still just a car and has basic car functionality and needs (tires, filters, fluids, brakes, wipers, etc.).”  

 Misconception #3: No parts and service info availability 

The biggest misconception surrounding Tesla repair according to Thorson is that there is no parts and/or service info available.  

 Tesla released all service and repair information and it is currently free. You can sign up for it on Tesla’s website and it includes everything from service manuals to parts manuals, body repair, tooling, wiring diagrams, service bulletins, labor codes and labor guides. 

Tesla charges $500/mo or $3000/yr for their diagnostic software. 

Note, however, that the service information is only available directly from Tesla; you won’t find it in any of the third-party information products. 

As for parts, as a shop owner you can also sign up online to buy parts from Tesla. Thorson warns that one should be careful as they don’t follow the same rules as other manufacturers. If you receive a defective part, make sure to follow the correct procedures for the return. Do not just order another part hoping to get a return, because you won’t. Thorson learned this lesson the hard way as he has a new defective steering rack that is not returnable. 

 Misconception #4: There are different ways to communicate with Tesla Service 

If you are trying to call or contact someone at Tesla service to make an appointment, inquire, or get a status update on your car, good luck. There is no phone number and there is no way to contact someone by phone. 

 Everything is done on the app and you can only send messages through the app. You book your appointment on the app. When you drop off your car at Tesla service, no one is there to greet you. You park your car and they will give you Uber credits while your car is in service. You never see or meet your advisor unless you go out of your way to do so. 

This is an area where an independent shop can really shine. There will be customers that prefer human interaction with better and faster service.  

 In my personal experience, my appointment with Tesla service got pushed back four times, so it took two months to get my vehicle in but the actual work took half a day. 

Misconception #5: Teslas have no oil or other fluids 

Thorson recommends replacing oil in the drive units at 60,000-mile intervals. These units also have spin-on oil filters. The high voltage batteries and drive units produce a lot of heat, so Teslas require coolant as well; however, it is important to note that a Tesla cooling system is nothing like a gas car cooling system. Tesla’s system is low pressure; it is imperative that one not use a coolant pressure tester as the plastic coolant pipe will burst in the most inconvenient location; i.e., above the HV battery, warns Thorson. The specs of Tesla coolant is identical to BMW coolant and should be maintained as such. 

Even with regenerative braking, Tesla still uses DOT3 brake fluid and the hygroscopic characteristics stay the same and should be flushed out. 

 Misconception #6: Nothing to fix on a Tesla 

This is probably a shop owner’s biggest fear with fewer components on EVs compared to ICE (internal combustion engine) vehicles. Tripp shares some common failures he has seen on Teslas.  

 “Each model has its fair share of issues, like any other vehicle. For Models 3 and Y, it is upper control arms. For Models S and X, it is lower control arms. Early Model S and Model X batteries seem to be a weak point. Those that were replaced under warranty are already failing. I know of 2012 and 2013 models that have had two or three HV (high voltage) battery pack replacements. Cooling system failures start occurring after a certain age. For Model S, we replace lots of exterior door handles and we also do instrument cluster screens due to internal fluid leaking out. Due to the aggressive charging of the 12V battery, it is not uncommon for the 12V battery to need replacement in 2-4 years.” 

Thorson adds that it is not uncommon to see drive unit failures early on. He has seen many case leaks and has seen several with internal coolant leaks due to bad seals where Tesla would recommend replacing the complete drive unit. He has fixed many by replacing the seal itself, saving owners thousands of dollars. He also adds that a steering rack on the Model 3 is a Land Rover rack and is prone to failing. 

Jones specifically points out common axle shafts problems which contribute to stuttering when accelerating. 

 Misconception #7: Tesla’s require little to no maintenance 

 It’s true, you no longer need to perform 5,000-mile oil changes but that does not mean these cars require no maintenance. 

According to Jones, the tires on Teslas wear out much faster than ICE vehicles and along with that, regular alignments should be performed along with regular tire rotations. 

The design of Tesla’s HVAC is problematic for the smell of mold in the cabin due to moisture, so cabin filters must be replaced at a shorter interval compared to other vehicles.  

 With regenerative braking, brakes on Teslas can last up to 130,000 miles or more but that brings other problems such as seized caliper slide pins. Both Thorson and Jones recommend taking apart the brakes and lubricate all components regularly. 

As stated earlier, EVs still have oil and spin on filters, coolant and brake fluid that needs to be replaced.  

 On Models 3 and Y, there are instances where bolts in the front suspension loosen over time, so these need to be checked and retorqued regularly. 

 Final Thoughts: 

By really diving in and taking a close look into the rapid change in the world of transportation today, we uncover fears and stereotypes that surround new technology. However, by objectively looking at the situation head on, we can see that there is a bright future ahead for independent shop owners and a light at the end of the tunnel for early adopter consumers in dire need of better service and options in fixing and maintaining their vehicles. Whether Tesla/EV continues long term or something new comes along, the automotive repair industry needs to continually strive to adapt and train to be relevant in an ever-changing environment. 

Perhaps this is a trick question, but it's worth a discussion.  Many auto repair shops spend a lot of money to get new customers. But what about the ones we have already?  

What marketing strategies do you have to attract new customers and retain the ones you have now? 

I recently read an article that said that giving a technician a pay guarantee each week promotes complacency and leads to lower production.  In other words, if they don't produce, they don't get paid.  Really?  While I do get the logic, I don't agree. 

I am not going to promote one pay plan against another, but for me, if I require a technician, or any employee to be at my company a certain amount of hours, then they will get paid for every hour they are there. Now, I do believe in performance-based bonuses; so if someone produces more, they need to be rewarded for that. 

What I have found is that business success and maintaining high production levels requires hiring the right employees, and having the right culture combined with the right leadership.

Your thoughts and comments? 

On 10/10/2022 at 2:17 AM, Eric Roberts said:

Hi guys just  a short one this! As garage owners present or past how do or did you cope with the "can you just" brigade. This is the customer male or female (or otherwise) who just asks if "you could pop a light bulb in for me please". I no it could be a slow day, then this would not be problem, but does it annoy you. We had one in the other Saturday. A guy pulled in and wanted us to check  knocking on the rear end. The car was road tested and on the ramp for two hours on a busy Saturday morning.

Eventually we found a broken coil spring on the front of the car! I am sure there are much worse stories than this but it really gets me mad sometimes?

I agree with Craig (bantar) 100%.

As a shop owner, we need to have a clear understanding of when charging for our time begins. It's ok to check someone's tire pressure or install a set of wiper blades that the customer purchased, but does know how to install them.  But, if we need to spend time chasing down a problem, we need to get paid for that. 

As a Business Coach, I can tell you that the biggest labor loss for too many repair shops is lost revenue when a tech is inspecting, testing, or checking into a problem. That time must be tracked, and the customer has to pay for that time.  

Not to bring up another topic, but the labor rate for testing and inspecting should be higher than your regular rate. The reason?  There are no parts involved when a tech is performing tests, checking, or working on complicated driveability problems. And that means no part profit.  Perhaps this is a topic for another post? 

9 hours ago, Transmission Repair said:

Joe,

You talk realities.  We would all like to think our crew at the shop could handle everything like we did after we're gone.  The truth of the matter is for former employees need to get strongly engaged in coaches like you.   Bob Cooper, and other shop coaches in your company.   I spent a lot of money with Bob Cooper's company years ago, but it was a great deal in the long run.  No regrets.

J. Larry Bloodworth, [email protected] (801) 885-2227

Thank you, Larry, for your kind words, and your endorsement. Before I began coaching and training, I was a client of Bob Cooper and Elite. Being coached greatly helped me in business too.  It's my time to give back, it's why I coach others today and cofounded Auto Shop Owner.  

Not to sound like a sales pitch here, but a coach can help a shop owner today, and through the process of preparing for an eventual exit. 

Thanks again, Larry! 

3 hours ago, JerryK said:

I have been a shop owner for almost 42 years. I have a good team that take great care of our clients and I am only in the shop a few days each week. It is a great time to be an owner! Why sell? 

Good for you. I can respect that. Do you have any exit strategy at all? Life can throw a curve ball. 

40 minutes ago, tomkatv10 said:

Two years, I’m out. Some of the employees are forming a corporation in 2023 to buy the business in 2024. I’ve been in it for 28 years and at the 30th year, I will walk away. I will stay on, though, for about 6 months in a consulting role. After that, my plan is to consult younger shop owners to help them grow their businesses. I have been approached by a coaching company already, but they don’t fit my style so I’ll be looking around for the best fit. As for the real estate side, I own several residential rentals and have had no desire to own commercial real estate in the state of NJ. Leasing has always been the best option for me.

Glad to see you have a plan.  Please help this group of employees with the process.  Sometimes, their "desire" does not materialize into actual reality. I had two serious-minded employees that really want to buy the business but bailed out when the time came.  Looking back, I should have done a better job of helping them through the process. 

On 10/15/2022 at 9:43 AM, xrac said:

I will be 70 in December and have ran a shop 24 years in March. My shop is for sale. Covid hit and killed a potential sale. Another sale was killed because another less expensive shop came up for sale during due diligence.  We have had five shops or body shops change hands here in the last year. 

Frank, not to be all-knowing and personal, but you need a plan.  It took me 5 years to sell, with multiple deals that fell through. Then I had major surgery in 2020, and that was the last and final push to make this happen.  I sold my two shops and real estate. Got my check, paid my capital gains tax, and was done.  Any questions, please ask away. 

7 hours ago, Eric Roberts said:

Hi many of us in the \UK think it will be the death of the independent small garages that we all know today. We are now  starting to fight the transition as it will cost millions of jobs as the work is passed around the large franchises. The rest will be fighting for the scraps. They did this to our "corner shops" . All were owned and run as  a small family business. The supermarkets opened up down the same road and closed them down. Then a year or so later the big supermarkets opened up on the exact same site as the old closed down corner shops. A well executed and coordinated plan. Now they have a new enemy called Amazon. I am sure you are aware of them! Something similar will happen to the small family run garages if we dont start to fight this. Thats my opinion for what its worth Eric Roberts

You bring a grim perspective, but much appreciated.  When you think of the political push for EVs., it makes one wonder, what is the actual agenda?  EVs, and all so-called green engery, is big business, which means money is to be made. The question is, as you say, will the smaller shops be left with the scraps? 

22 hours ago, Joseph Collins said:

Hi guys I’m in high school and interested in becoming an auto technician from your experience what would the best thing for me to do my dad says I should get a job at a shop and build trust to make sure I really want this I’m thinking of getting a 2 year associates degree and certifications needed what kindve school should I go to if needed and what should I do right now to prepare? Thanks, Joe

Joe, Welcome to Auto Shop Owner!  And great news that you are considering a career as an auto technician.  There is a great future for young people, and an exciting time to get into the auto industry.

Your dad is giving you the right advice. Working in a repair shop is a great way to see if this is your life's passion.  Just be sure you find a good place to work. The best are independent repair shops, in general. 

As far as education. There are trade schools like Lincoln Technical and Universal Technical Institute. For 2-year college degrees, research colleges with an automotive program like Ohio Technical Institute. 

If you do work at a repair shop, the owner of the shop has tons of training he can provide for you. 

Good luck to you; our industry needs more young people.  And please ask questions and keep us updated! 

A recent Auto Leap Survey revealed that 64% of shop owners are looking to retire in the next 10 years. (Link below to survey) 

So, I want to take an informal survey of our  ASO members:

1. How long have you been a Shop Owner?
2. When do plan on retiring? 

Last week, I had an interesting conversation with a shop owner friend of mine. He told me that he does not mark up his parts as much as he once did, mainly because of pushback from customers. He states that Google, Amazon, Rock Auto, and others, have hurt that part of the business.

I don't want to debate that fact right now, but what I told him is that It doesn't matter how you arrive at your required profit, but you need to maintain profits.

If you concede on your part margin, then the only way to maintain your required Gross and Net Profit is to increase your labor rate.

Your thoughts and opinions? I would like to know what other shops are doing with part margins these days. 

Throughout the year, there are many industry trade shows and events. We can't attend them all, but what are your favorites?  And why? 

Do you have a formal onboarding, or employee orientation, process?  I know that so many shops these days are looking for employees, and many shops have been short-handed for some time now.  But, is it wise to throw people into the mix without a formal onboarding process?  Many say that the time it takes to prepare a new hire will pay dividends down the road. 

Your thoughts and comments...

On 10/13/2022 at 10:02 AM, Hands On said:

Am I the only one in the forum preparing my shop for EV services? Maybe I will not have much competition?

From what I am seeing, the majority of the shops in the U.S. are preparing for EV service, but for most, it's "wait and see what happens."  There are a lot of questions that need to be answered. Plus, for many repair shops, especially in middle America, the EV revolution will take longer to take place.  

5 hours ago, Eric Roberts said:

Please take a look at the UK Talk radio link its very interesting   

 

Very interesting discussion. In the U.S., the state of California has the same agenda, and New York is going to follow. While I do know all about what is being discussed, you don't hear these facts often and are not reported on the majority of news stations or reported in the newspapers. The only TV News Station that I know of in the U.S. that reports these facts is Fox News. 

This is a serious situation, mainly because the EV push is so strong, politically.  The people need to know all the facts. 

It is thrilling to hear this side of the facts on EVs. in the U.K. Thanks for posting!!!

6 hours ago, Eric Roberts said:

Hi Thanks fir that! Electric cars a well in the minority however they are slowly creeping up in numbers. I think car manufacturers are getting huge back handers to develop these things. The clean air brigade are fuelling the desire of  power hungry politicians to achieve a carbon zero climate by 2030. However this has been interrupted by spike in electricity costs and the government are having to rethink. My small town ,Halifax is as old as the hills and will never accommodate charging points to charge all the electric cars that are desired and regular car owning people dont want them anyway, they are a rich mans toy at the moment and lets hope they stay that way! Only time will tell and I am running out of that > 

The same here in the US. There is a big "behind the scenes" political agenda for pushing EVs.  EVs are coming. is the world ready? I don't know.  A lot of things need to be figured out: Charging stations, the time it takes to charge fully, the current state of the electric grid, what about those in heavily populated cities who live in apartment buildings, and the environmental impact of mining the elements needed to build the batteries. 

EVs are coming, there is no doubt about that. 

2 hours ago, Transmission Repair said:

As I posted earlier, we were open 5 days a week, Mon-Fri 8:00 am - 6:00 pm.  However, if we had slow days, I would give the guys time off.  Some of the guys took it, some didn't.   This is because I paid the employees by the hour.  Giving them time off was considered a pay cut by some and if they needed money, they wouldn't take off.

What I've learned from this thread is that a 4-day work week doesn't mean the business is open only 4 days a week.  Employees only work 4-day work weeks but the business is open 5-6 days a week.  Here's a video from down under New Zealand with their perspective on the 4-day work week.

12:56

 

I do understand the strategy, and the 4-day employee rotation model. I still think that this is a case-by-case decision that only the shop owner can make. I spoke to a shop owner last week at the Elite Eagles course, and he said that there was no way he was giving up the 6 day workweek, and also stated that Saturday is his best day of the week. 

8 hours ago, Eric Roberts said:

Hi I pretty much agree with you all. From a UK prospective then we have all the same problems but on a smaller scale. People live in old Victorian streets or high rise flats and will not get the same service from charging points .Another good point is the fact that the electric cars will still be part of a mix of technologies. it will be up to us to dictate what parts of the car we wish to repair or service. We made a bold decision a few years ago to pass onto a specialist any engine problems. We were spending too much time and never got the real profit margins. Now we get a trade price and have an add on amount to the customer. This frees us up for the more profitable jobs. Well the electric cars will be the same. Also the owner of the Teslas here in the UK are the same guys who bought Mercs and larger BMW,s ! Its a prestige car at the moment.

Thanks for a great topic Eric www.pellonautocentre.com

 

Great points Eric!  How is the UK solving the EV charging station issue? 

14 hours ago, Hands On said:

M-F. 

When I was in business, I had two locations, and we were open Monday thru Sat. Saturday was usually to 2pm, unless we were busy that day. 

13 hours ago, Transmission Repair said:

This topic has been beat to death.  Let's just agree to take the "Wait and see." position, Okay?

HA! I know, it appears that everyone has this on their minds; and not just people from the auto industry.  At dinner with friends, I get bombarded with questions about Evs. But, I do agree....Please, let us wait and see.