Joe Marconi

We try to attain a 50% gross proffit margin on parts. TRACS has the ability to set pricing any way you want. We mark everything up from cost. You can create a matrix that marks lower cost items up a little higher & higher cost items a little lower. Overall we want 50% GP. You really need to know how much gross proffit dollars you need to cover your expenses and make a little proffit. That will determine what your mark up needs to be.

I agree. Many of us can give you our matrix formula. I will do that if you like, just let me know. But it's more important to understand your break-even and overhead costs. Once you know these numbers you can start plugging in and tweaking your matrix.

50% GPM is what many people strive for, understanding that a matrix is a sliding scale. Lower cost part may list a 60-70%. While parts purchased at $400 may only be marked up at 20%. The concept is to get an overall balanced GP of 50%. (If that is the number you determine you need).

Hope this help. Please keep the questions coming. I don't know the Tracs system, so I really can't help you with setting up the program.

Marine check point video:

 

http://www.youtube.com/watch?v=_FaDhnkzqTU&feature=email

What a "sense" of humor. l listened to the video a few times!

My question is how do they make any money with free? What is the catch to get the "free" service. Nothing is free....

Free Maintenance is actually built into the price of car, plus the dealer and the car makers know that if you bring in more customers you accomplish a number of things: the chance to up sell, the chance to create a long time customer, the increased channce to sell another car in the future.

The marketing works and I don't like it. Xrax is right, how do you compete with free????

Many shop owners struggle when defining the purpose or the mission of their business. If we view our business as one that repairs and services cars, we are not seeing the bigger picture. Our business is defined by the value our customers see in us. Customers never buy products or services, they buy something much more important…they buy the peace of mind and the value you offer through the quality of your work and the level of service you provide.

If you want to grow your business; listen to your customer, understand what the customer likes and more important, dislikes. Find out what your customers consider is most valuable about your products and service.

Understand your customer and watch your company grow!

More and more new car dealers are jumping on the band wagon and offering free maintenance or a low cost maintenance plan with new car sales and used car sales. When you factor in the longer warranties, an added maintenance plan may keep your customers going back to the dealer for a longer period of time.

I do not like leaving things to chance. The new breed of dealers left behind after the economic dust settles will be an aggressive bunch, having the support of the car maker behind them.

Should we worry? Should we find a way to compete? Should we wait and see what happens? Like to hear from you…

This is a tough one. I'm hopping that another member has had to deal with this situtaion before. If not, we need to do some research. I will try to find out and get back to you.

I searched The US Department of Labor Web site and found the information you need. Here is the link...Good luck!

U.S. Department of Labor - Wage and Hour Division (WHD) - Family and Medical Leave Act

Hi everyone.

 

I have just taken controll of a shop in the Orlando area after a year of trying to buy it. It only has two staff other than myself which are 1 tech and 1 service writer. Unfortunatly I am stuck in the UK for a short while finalising things here, I am hoping to be moved around the end of the month. Here is the problem that I need some help and advice, the tech is a military reservist and yes he is getting deployed for a year. Obviously I am going to have to get another tech and understand the associated problems with that. However what are the legal issues concerning a reservist going on active service, with regards to having to keep his job open for him after his stint and pay etc. This is all new to me as I am from the UK and understand there are more than likely different laws regarding this there in the US. I look forward to hearing from anyone who has had similar issues or knows what is the correct thing to do. I am glad to have found this site and am happy that so many of you more experienced owners are willing to share advice and help to those of us that are new to owning shops.

This is a tough one. I'm hopping that another member has had to deal with this situtaion before. If not, we need to do some research. I will try to find out and get back to you.

Using a matrix will allow you to reach your overall profit margin. Let me make a suggestion to speak with your accountant. While the industry standard on part percentage profit falls in the range from 46-52 percentages, every business is different. It’s a delicate balance between being profitable and being competitive. Too high and we can price ourselves out of business, too low and the same thing happens.

The main concept for a matrix is to sell parts that have a low acquisition cost at a higher list and parts that cost more will be sold at a lower list. Don’t get too caught up with suggested list from the parts house either, it’s just a guide.

We are seeing more and more vehicles that need the steering angle sensor calibrated after an alignment. Luckily my Hunter alignment machine has the ability to perform the calibration. My question is, how are other shops charging or not charging for this? Should this be part of the alignment? Should there be an additional charge. Afterall, the update and future updates are not free. And, it requires additional time to perform the calibration.

Thoughts and comments?

When you say it's like the antitheft is preventing it from starting, what exaclty do you mean? What is the car lossing? Fuel? Ignition? Etc? Need a little more info. The only thing that was changed was the oil pump? Is there anything that could have been touched during the process?

I feel the same way. We cannot ignore social media or other forms of technology, especially when you consider that the next generation that will soon be our customers grew up in this technology/computer age.

All great leaders possess two things:

1- They know where they are going!

2- They are able to persuade others to follow!

 

The best leadership book I've ever read is the 360 Degree Leader by John Maxwell. That book had more of an impact on me as I've twisted and turned through this thing over the last 15+ years.

But I've actually got a core group of books that I keep at arms length to help keep things pointed in the right direction, when you can't see the forest for the tree's.

 

360 Deg. Leader - John Maxwell

Developing The Leader Within You - John Maxwell

7 Habits Of Highly Effective People - Stephen Covey

The 17 Indisputable Laws Of teamwork - John Maxwell

The Little Red Book Of Sales - Jeff Gitomer

I have read all those books as well....glad to see that you are an avid reader. That's another sign of leadership!

Hey guys I'm a new owner .I've been a tech all my life.I just opened I just got Napa Tracs .I'm very good at doing labor est by hand and I'mm getting better at looking the parts up.But I'm having a tough time learning Tracs.Having a tuogh time with small parts fluids clamps ect. I'm having a time looking up labor on a ticket when there are combinations,I,d like to put my own labor in quickly. I,m not sure why I still have purchase orders open.And I need to know how to put non Napa parts on a ticket on the fly.Do you print a job ticket out for the costomer to sign and ok some time in anvance?

I know of the Tracs system but I am more familiar with Mitchell. Did you get any training on the program???? I know at first it will be a bit confusing and overwhelming, but in the long run it will pay off, trust me.

It sounds like you have issue you need to have your Napa rep handle. Maybe there is an ASO member that uses Tracs????

Sorry I could not have been more help.

We had an Infinity I30 come in last week with cooling fans that would not shut off after they turned on at approximately 204 degrees, coolant temperature. There were no codes stored. This model uses 2 cooling fans with three-stage fan speeds. The car never overheated, but once the fans turned on, they stayed on until the car was shut off and the engine cooled down.

We verified the coolant temp of the engine with a scanner; both readings (at the sensor and scanner) were within 5 degrees of each other.

We followed the diagnostic flow chart and all looked normal. When we felt the bottom radiator hose, it was not as hot as we thought it should have been. We replaced the thermostat and solved the problem. We got side-tracked a little thinking too deep into this and actually thought we could have a programming issue.

It’s the same old rule…check the basics first.

Great jokes, nice to laugh...I am going to show the jokes to my wife...wish me luck!

There ya go again Joe... ya see right thru my little stories to the real issues. It's still that customer and his wallet that comes into play.

You know I probably lose 2 or 3 good jobs a week do to prices... because either the other guy is far cheaper or they just haven't got that kind of cash in their budget. I wonder sometimes how these cheap secondary parts stores stay in business when I have a customer come in and tell me they just exchange a starter or alternator for the 5 or 6th time... they can't figure out whats wrong but now they are convinced it's something other than the quality of the part that is wrong with the car. But, you know, it's a cheap part.. it wasn't made to last.. it was made to sell. AND sell they do.... so, until the consumer teaches themselves the difference between quality and price they will always be searching for the cheaper alternative. That's where the alligator skin comes in handy... listening to them tell me how they can get the same part cheaper, and those "cheap" parts are as good as my high quality part.... you can guess the rest of the conversation...

Go figure....

You make a valid point and I think most of us has grown that alligator skin you speak of. What bothers me is that the customer who wants the job done cheaper will find someone to do it. Now the problem is...the customer can't tell the difference...how in the world are we ever going to change that?

Reading the Declaration of Independence gave me chills! Thank you for posting it.

Gonzo is right we would have been there in 1776 and today 2010...side by side!!!

God Bless America!

Become an Effective Leader!

Every company needs an effective leader. Not someone that demands people to do things, that’s not a leader. A true leader gets the people in the company to do what is right for the company because they want to, not because they are told to.

Leaders listen, they coach, and they become truly interested in the welfare of the people around them. It’s a daunting task at times, but it’s the job of every shop owner.

What type of leader are you?

Thanks guys. I have been trying to get "outside" work. The downside to all that is with the dealer closings in the area there are several "shed" shops that are working for $20-$30 an hour and using/selling "discount" parts at cost. I have offered my services at 20-30% discounts and still cant match what the under-the-table guys are doing. Quality has gone out the window. And with the advent of OBD2 the dealers are keeping work in house. All factory scanners now have OBD diagnostics. Believe me I would much rather stay in the sun than go back north to fight the tornadoes and blizzards . I have started over before and believe me I have learned. I could fill a book on philosophy and business. I guess the biggest mistake I made was not looking far enough into the future and not planning for the very worse. Just 5 years ago I had over 80k in the bank. On paper I am worth a 1/4 mill. It aint funny but I still laugh. I believe my faith and GOD will take me where I need to go. I will succed!

Have a Great 4th and thanks again. I will be watching, if not from the front, then from the sidelines.

Jeff, it takes a real man to admit when 'he' alone is repsonisble for the world around him, and you are that man. Just one more thing to add; you mentioned faith and God, that will help you too. You need to be positve, it's not how hard you get knocked down, it's how quick you get to your feet and how you react that will make the difference.

Enough said, no matter what happens from this day on, I know you are already headed in the right direction.

Once again Gonzo, valuable words of wisdom. Consumer education, while needed, takes a lot of time and effort. Some people can’t get beyond the price. I have never met a person who has told me, “No problem, go ahead with that 4 wheel brake job, I budget money every week for car repairs.”

People would easily spend a few hundred bucks at the mall, but hesitate for set of quality wipers. Staying calm is another issue. If a person truly can’t afford a repair, just tell me…I will work with that customer. But it’s hard to tell the difference. If a person wants it cheaper because it just doesn’t want to pay the price, then we have an issue. Either we are not showing the customer the value of our service or the customer truly does not want to let go of his money.

Jeff, I would have to agree with Joe on this one. I've been there... making the last job of the week just to make payroll and not enough left over for the guy who started the whole thing... ME. I feel your pain buddy... I wish I could help... but that's not possible... but I can give you moral support to let you know that things DO turn around... If you can hang in there... I'm sure things will work out for the best.

 

Keep your chin up.. just remember .. it's not your fault... it's more likely the economy that brings you to this decision.

Check and see if there are other shops in the area that you could "farm" jobs for. Go to the used car dealers, stop by the vo-tech schools... car rentals, check with plumbing,electrcial and or any other business that would have a fleet of trucks.

 

There might still be a way to get thru this. Even if you have to move back home... I think you'll keep all that you've done as part of a learning experience and will be able to see any pitfalls in the future... life is a learning experience... and this is one of them.

 

Good luck my friend... I'm pullin' for ya. Gonzo

Gonzo is right, it's not your fault....if we could we would be right there in the trenches with you. The key thing is to do something. My father (a World War II vet) said that in battle when all things seemed impossible and it looked liked the end was near, the only thing that kept most of them alive was to do something, anything. When you are pinned down with bullets whizzing past you, it's hard to make a move. But if you stay there trapped, you will surely die. In business the same is true.

Just get out there, pound the pavement, go to every business, school, organization, church and hand out your business card.

Do something, don't get pinned down! And please, use this forum as somewhere you can let off some steam and vent. It will do a world of good and actually, the process of venting may reveal possible solutions.

Joe I believe it a combination of things. The local unemployment is said to be 12-13%. But a recent paper article figured it closer to 20-20% after taking into account those who fell of the unemployment rolls and were no longer looking for work. We also are very seasonal here with the "snowbirds" coming in late Sept and staying into April. But our illustrious leaders decided to raise taxes on property that was not decalred a pemanent residence there by driving many of them to sell or just not come back. Then when the housing bubble burst a lot of folks just walked away and went back to where they came from. Last year was the first time in Florida history there was a decline in population. I suppose there are a lot of other things but it is mostly unemployment and HIGH taxes.

Jeff, I am not going to be one of those guys who will attempt to try to analyze your problem and give you a magic bullet. I have too much respect for you and that would not help matters. After reading your situation I truly believe that you are in a tight spot and it must be eating you up inside. I remember in the early 90’s when the whole world came crashing down on me and I could not make payroll. I good week was when I could pay my 2 mechanics, but still did not have enough money in the bank account to bring a check home to my wife and three little kids. We all know how humiliating that is for a man, don’t we. So please, with all due respect, I do know how you must feel and I wish I could help.

Are there any other businesses or shopping mall in the area you can go to and try to work out a deal with them? Do you specialize in any area that you can market to other businesses or other shops? I am just trying to see if there is any way you can find new work.

Jeff, we have all been there. The auto business is so tough and can beat you up on the best of days in the best of times. What issues are you having? Is the high umployement? Is it that people are afraid to spend? Or?????

Sorry for the delayed answer. The shop is 4500 sq. ft. If I had built the shop, I would have had it a/c'ed.

 

I have contacted several insulation "specialist" and they have various answers/quotes.

 

1. Spray on elastomeric paint on the roof. $4,000 (with permission of landlord)

 

2. Add sheet radiant barrier below the batt insulation. $3-$4000

 

3. Take off the batt insulation and spray on the bottom of the roof with radiant barrier. $2500 (we remove the insulation)

 

4. Spray the bottom of the insulation with radiant barrier paint. $2100

 

5. Paint the inside of the west/south walls with an elastomeric roofing paint with a radiant barrier additive. < $1000

 

I am leaning toward spraying the roof and painting the walls, because of aesthetics.

 

Thanks for any advice.

This is great information. I assumer with the changes you made the effeciency is greatly improved.

Bad news travels fast... that's so true... I sometimes wonder if a lot of people always live in fear and doubt rather than in confidence and working towards the future.

 

One comedian I heard years ago made the joke that all his relatives hid in the cave while the big old dinasour walked by looking for any easy meal... If they didn't hide they were dinner...

 

That could be true... but I think aggresive thinking, working out problems and dealing with the pitfalls is part of business.

"If ya can't stand the heat... get out of the kitchen."

There is a lot of truth to what you say, but today with all segments of the auto industry...from quick lubes to transmission shops, to muffler shops and new car dealers....wanting of peice of our service pie, it is not getting any easier.