Joe Marconi

You know what they say, everything old is new again. Anyone remember the Amphicar, same boat/car concept. A neat peculiarity but not useful to many in real life.

I do remember the Amphicar. That brings back memories.

More unfavorable news:

I always fear consumer confidence. To me, it's the one indicator that can have the biggest negative impact. Bad news spreads fast and people react more to the perception than actual events.

What do you guys think about this viewpoint?

There is some truth to what the article says. Although the author generalizes too much and small shops will always find their niche. I know performance shops and Corvette shops that are highly specialized and make a great income specializing in one particular area.

If you want to be a general repair shop, I agree, you will find it hard to compete if you want to be everything to everyone. We will need to find our particular strengths and what is profitable. There are very successful companies that understand who their customer is and compete to that market.

How anyone can give a dollar amount to survive does not hold water. For many shops, one million dollars is unattainable, for other it’s no money at all.

Although I understand what the author is trying to say (having enough income to purchase the correct tools and information), it’s more about who you are in the market place and what defines your business.

Know your competition, know your customer, know your market, know what is profitable. Do more of what is profitable, win the battle before you go into battle. You will find a way to thrive if you hold on to these principles.

Read the Art of War, it explains a lot of these principles.

Thank you and the same to you! Out of curiosity may I ask when your shop will be closed. We gave our team the choice of Saturday or Monday and they chose Saturday.

I was so undecided on what to do. We had people calling to bring their car in on Monday. I decided to close Monday and be open Sat. I hope I made the right choice.

Let us all make sure we fly the American flags this weekend. And let us not foget the meaning of July 4th. We need to embrace the meaning of the birth of our nation and the reasons why this great nation was founded.

Have a happy July 4th weekend!

Some of you may have already seen these. Posted photos and video:

 

AutoShopOwner - Automotive Management Network -> Gallery -> Viewing image -> Gibbs Aquada Car Boat

 

AutoShopOwner - Automotive Management Network -> Gallery -> Viewing image -> Rinspeed Under Water Car

 

Enjoy!

Now that's what I want! I will tell my wife to put this on my Christmas list!

You know, at the start of this year I would have told you that we have turned the corner. But, it seems that those companies that have a good handle on business and provide the very best in customer service will be fine. However, I see the economy taking its toll on a lot of businesses that were weak to begin with. For those, it will be hard to ride the storm. We are not out of the woods yet and will take some time for the economy to recover. It may never be the way it was either. Especially with the current administration.

The reality is, no matter what kind of economy we are in, some shops will do well, and others will fail miserably.

 

Below is a video that I recorded last year that talks about the economy and it's effects on our business.

 

Enjoy!

 

Great presentation. Lot's of good information that hits home.

Man Arrested for Stealing 14 Catalytic Converters in Broad Daylight

 

Sorry...

Broad daylight! That's hard to believe. I guess anything is possible. Makes you wonder though. No fear??

Competitor offers insights that can benefit your business.

 

http://www.moderntiredealer.com/Blog/Lori-s-Listening/Story/2010/06/Competitor-offers-insights-that-can-benefit-your-business.aspx

I have read this article before. It shows the strength and commitment of the aftermarket. We need to get this word out to the motoring public.

The sad part Joe, is that you're right... everyone has had to deal with people like this butthead. That's one of the reason why I feel it's important to write these stories. Since we all have had these experiences it only makes sense to remind ourselves and to inform the next shop owners and techs... that the world is full of odd balls like this guy. I think it makes me appreciate the rest of the consumer world more, and really appreciate that person who is happy to come to my shop to get some work done.

 

And one more thing. When I'm out running around and I'm "the consumer" I think I am more likely to understand the plight of the guy behind the counter after reading/writing these stories. I, myself, will not - never --- act like this guy... ever.

So true, when I am out shopping or going to the dinner, I am critical about the service but will make it a point to recognize outstanding service and thank that person.

I guess we all need to share things like this, it is like therapy when we know that we are al in the same boat.

I worked too many years in the very hot, no air moving dealership shop to not have A/C in my own shop that I built. Its currently turned off so I can get use to the heat before I go to Haiti on a missions trip next week but as soon as I get back it will be turned on.

How big is your shop?

I just kick on the A/C system when it gets hot in here. I built my own garage to be comfortable when I am working. LOL

A/C??????? Now that's nice!!!

Why is the world filled with jerks like this? Everywhere you go and every shop owner you speak to can tell they too have had their share of people who have absoulutley no respect for other people and are empty of common decency.

The only good news, it’s not only me.

Great story again Gonzo….keep ‘em coming!

Joe, that is a very good point. We have seven bays and five techs. If we give up an hour of time percentage wise that is not as great as a 1-2 mjan shop giving up an hour. In addition our labor rates and parts markup is also usually higher than the small shop which is also an advantage if using a lose leader.

To be honest, smaller shops really need to find their niche in the market place. It will be tough, but possible. They need to find their competitive advantage. Their size will only become an issue if they try to compete on the level of a new car dealer or large franchise store; for example, providing loaner cars.

In other words, don't bring a knife to a gun fight.

Great points and great discussion! It appears that we are all experiencing the same things with respect to part quality, pricing and warranty reimbursement. It’s hard to make a choice today, but I agree that we need to look at the company and/or store we are dealing with.

We need to support those companies that support the professional. It makes no sense to support companies that diminish the value we are trying to sell.

Geez, got a story on that subject... called "runs in the family" I might post that one next... LOL

Can't wait to read it!

Service advisors need to explain the benefit to the customer when recommending a particular service or repair. To simply tell a customer, “Mrs. Jones, your car needs a tire rotation”, may not have much meaning to the customer.

A better way to sell the service would be to explain the reasons why the tires need to be rotated and the benefits of extended tire life and better tire wear. When the customer sees the value in the service you are recommending your chances of making the sale increases greatly.

Another great story Gonzo! It really captures the sometimes strained relationships between customer and mechanic. Not that all customers are difficult, but the ones that are really make it difficult appreciate the good customers, at times.

There are days when I just want to be locked up inside a bay with my tool box, no phone, no paper work…just my tool box and a broken car.

Joe, I loved that story. A few years ago I had a lady in her late seventies come into the shop. When we check out her 93 Saturn we found she had ran over a parking stop and had badly bent her subframe. She was going to have to have it replaced and didn't have the money and she was in hysteria. I talked to her and told her we could install a used subframe and if she would pay me $300 now that we would let her make payments on the rest. She did and we did and she became a very loyal customer. The last time I saw her was when she had a blow out about 1/2 mile from our shop and was again in hysterics. She had AAA and I told her to call them and I would be there to pick her up. I picked her up and got her and her car to the shop and we put a couple of cheap tires on it for her. Her old tires were dry rotted. A couple of months later I saw her death announcement in the obituaries. Then a week or two later I had a woman come in who introduced herself as this woman's neice who was handling her affairs. She asked me if her aunt owed us anything (she did not) and said she wanted to be sure that we were taken care of if her aunt had owed us money because she knew how kind we had been to her and how well we had taken care of her.

These stories really touch my heart and there will be a place for us for doing the things we do. We all work and have a business to make money, but some things transend money and the rewards we get, that feeling we get, you cannot put a price on.

Again I need to say, it's reasons like this that I am proud of ASO and it's members. Shop owners are truly the best of the best.

What great stories to share on fathers day too!

As always thanks!

Today I had a woman approached me at the service counter telling me she thought she was out of gas and di I have a gas can. The car was at the Sonic Drive-in which is next door. Of course I had a gas can and funnel available but no gas. There is a station about two blocks away. I was busy but thought it was too hot to have the woman (about 55) walk to the station, purchase gas and walk back to her car carrying the can. I took her to the gas station, she paid for the gas that I pumped. I brought it back to her car, pumped it into the car and we got the car started.

 

I then learned that while all of this was going on her grown son, his girlfriend and their two kids were feeding their faces at the Sonic where the car had been pushed when it ran out of gas. This grown son was doing nothing while momma fixed the problem.

 

I spent about 20 minutes of my time when I was busy working. I used my car, my gas, my gas can, and my funnel and all I got offered from the woman was a thanks. That was it. I got no offer of anything for my time or my gas or the use of my stuff. Now if the woman had asked me if she owed me anything or if she had offered me $10 or $20 for my efforts I would have politely declined. But my point is the way I grew up and was taught you would have ALWAYS asked if you owed anything or would have ALWAYS pulled out some money and offered. I basically supplied her with a $20-$30 roadside assistance call for free.

 

My gripe is a lazy son who would let his momma try to solve the problem while he did nothing. There is no way in the world I would have ever done that to my mother. My other gripe is the lack of courtesy and respect that was shown by not offering some compensation or asking. The woman had money because she had to get change to pay me for the gas and she was on her way to Wal-Mart.

 

Am I just crotchety and old fashioned? Should this have bothered me?

Call it old fashion, call it crotchety... I really don’t care...but you are RIGHT to feel the way you do. We have all been down this road too many times before and we get taken advantage of because of our good nature. But the rewards we get for being the way we make it worth.

About a year ago a women in her 70’s walked in my shop asking for help. She got gas at the self serve station on the corner and when she got back into her car it would not start. The people at the gas-and-go told her to walk over to my shop to use my phone to call AAA. It was a summer day, hot and humid, about 95 degrees. Why she could not get help from the gas station or use their phone baffles me!

Anyway, I let her use my phone to call AAA and after trying to work through their phone prompts, she was becoming increasingly upset over the entire episode. After reaching the AAA dispatch they told her without an exact physical address, they could not dispatch a truck. By now she was drained, I could see in her face that lost feeling. I asked her if she would like me to help her and grabbed the phone from her. After attempting to deal with the idiot on the other end of the line at AAA, I gave up and hung up the phone.

I asked the women for her keys and told her I would go to the corner and see if I could help. She asked me how much? She said she was on a very fixed budget and did not have much money. I told her that I want to see what the problem was and for that I would not charge her anything. She seemed to relax and started to calm down.

I took a helper down to the corner. The car was blocking the bays and someone from the store shouted to me that I better get that car out of the way soon! I just stared at him with a look that could kill, walked over and told him, “If you had any sense you would have helped the old woman instead of making her walk a few blocks in this hot weather. Now turn around and go back inside”. Without a word, he did just that.

The problem was a dead battery. I jumped the car, got it back to my shop and put a new battery in it. She asked me how much? And I asked her what she could afford. She said she had $75.00 on her. I told her to give my $50. She started to cry and told me that she knew it was more than that.

The next day her daughter came over to offer me more money. I refused and told her some things are more important than money. She could believe her hears and thanked me.

I know each of us have a similar story to tell. These are the reasons we are the best of the best!

Happy Father's Day to you too and every ASO member who is a Dad! Unfortunately I will be visiting my father in the hospital tomorrow. He got some sort of infection, I just found out today. I believe he is ok, just being left in for a couple of days, for observation.

Sorry to hear that Alex, I hope all will be ok.

Happy father's day. Relax tomorrow and enjoy your family, fishing, golf or whatever makes you happy. Forget about the shop for one day, it will be there on Monday, I promise you.

I've been broke into too. It was years ago... many years ago. I've gone to a monitored alarm system and every employee gets their own security code... which is erased when they leave. They theives only wanted the safe... they left all the tools and computers.

 

Not to change the subject but I've had employees that stole from me also... caught him red handed... He was one of my interns and I brought it up to his parents. Oh, of course, the story was, "My boy would never steal anything." Yea right, ...

There will be thieves, but I will never get use to it. I only pray they take money from the cash draw, which we leave there on purpose (A few hundred bucks). Don’t touch the tools, the equipment or destroy the place.

If we get into the more complicated stuff we charge accordingly and we will sometimes ask the customer to authorize a certain amount of time upfront. Examples of where this applies is diagnostic engine tear down or chasing an electrical problem. Other times we tell them we have no idea how long it will take and we will have to charge accordingly but we will be fair. Of course our guys don't like it and gripe some but it is not a deal breaker. The way our compensation works it is not bad since our guys are paid a percentage of parts and labor with a base guarantee.

I am a little concerned that we may be headed down a slippery slope for smaller shops and may not be able to get back up the hill again. If I am hearing this correctly; use diag fees to maintain healthy car counts. I would agree to this, however, smaller shops may find it hard to be profitable because they are physically limited by their size. Dealerships, large franchise store and large independents (those facilities with more than 8 bays) can support a lost leader approach because it gives them the opportunity to not only fix the check engine light but to up sell other related service work they identify while the car is being repair.

Now let's look at a 2 or 3 bay shop: A check engine light repair can tie up the main tech for an hour or so performing the analysis leaving the other bay or 2 open for other work. The problem is there's not enough space or man power to keep a steady flow of more highly profitable work; such as brakes, steering, preventive maintenance and so on.

Now take a 12 bay facility; they can have performing analysis work while the other bays are performing service work, this keeps a steady flow of income which offsets lost leaders.

This is why and how dealers and large franchise stores take the lost leader approach.

I guess my fear is that smaller independents will use the lost leader approach with respect to analysis work but may not be able to recoup because their size prohibits them from capitalizing from more profitable work. Their efforts will be to get the car done and on to the next.