Joe Marconi

Inspections are very important to our business. If your place is like ours we have to constantly work with our technicians. Here is some points that may be helpful.

 

Service bay inspection: 27 points of profitability

 

http://www.moderntiredealer.com/News/Story/2010/06/Service-bay-inspection-27-points-of-profitability.aspx

We have a comprehensive checklist also. This is vital to insure quality customer service. We need to always address the customer's concerns but need to look at the entire vehicle. To address a brake issue without addressing a leak at the rear differential not only hurts profits, it's not doing the right thing for the customer.

Keith, you gave us valuable information. This is what I was waiting from you. You took your background from the management consulting side, applied it to real-world and found out what works and what does not. Coming from you, it’s like an endorsement.

I agree with your assessments, especially on pricing and competing with the dealers. We have also changed our strategy on diagnostic labor and made changes due to economic conditions and the push from the dealers.

This is great stuff Keith. You came through for ASO and I thank you.

You are right, people are using the internet for pricing and because of economic times. We try never to use their parts. We explain that we can't warranty the part and they would pay twice for the repair. Years ago, we did use a customer's starter. We ended doing it three times. She had purchased a really cheap inferior part. I can't say we never use customer parts, but usually only bulbs or wipers. Another instance, yesterday a customer came in and had a problem that another shop had done. As usual, we tell the customer to take it back to the shop that did the repair. He said I can't they are out of business. He was not happy that we were going to charge him $100. for diag. Service Writer explained that shops that don't charge for diag and markup on parts, can't stay in business. Shops have to make a profit on parts and labor and to take care of the customer's problem, then with a good warranty. Another instance customer with a BMW brought it in for a check engine light. We read the code and did the 1st step of diag. Tech said it could be several different items, we needed to go to additional testing, pin point testing. Customer refused. He went online and said he could get the parts for a 1/3 of our cost. We told him without further testing, we couldn't be sure which parts were absolutely necessary. He took the car and said he would do it himself. He ordered the parts and did the repair; it did not fix the problem. He called back complaining that we had diag the car wrong. Service Writer explained that is why we needed more money for diag time, which he had refused. He said now I have to package the parts back up and pay shipping and my car is still not fixed. These are just a couple of stories. After many years, one learns that there are some jobs you don't want. You can't win. You are in business to solve the customer's problem. Shop owners must pay for the overhead, employees, equipment, schooling, all the rest and still make a profit for the owner.

Well said! I only wish more shop owners felt this way. Many shop owners do not realize the hit they are taking by not charging what they are worth. Many think that a job is a job, especially when they are slow. That's not true. Doing work that is not profiable is a sure way to go out of business.

Here’s the scenario: Your writing up a customer at the front counter and another customer walks through the door, and you are the only one at the counter. You realize that you need to give the customer you are speaking with your undivided attention, but what about the customer that just walked in?

Well, you need to make some sort of contact with the customer that just walked in. That customer may feel uncomfortable just standing there not being noticed. You need to make eye contact with the customer and give a head nod or tell them you will take car of them in just a moment. This is good customer service and will put the customer as ease just by the fact that you took a moment to recognize them.

I am seeing more and more customers coming into the shop with their own parts or wanting us to estimate labor and they will bring the part. We had a car in the shop today with an overheating complaint. We found the cooling system low and pressure tested the system finding a leaking part. We have had a bad experience replacing this part with aftermarket in the past and now only use OEM. We priced this repair to the customer on the phone and they agreed to the repair. They called back a few minutes later and said they had called a parts supplier (I wont mention the company) 25 miles away and could get the part for almost 1/2 of my price and wanted to know what the labor would be. My wife explained to the customer that we had previous problems installing this part aftermarket and only installed OEM with a 1 yr parts and labor warranty. She advised her that sh could bring her own part but their would be no labor warranty. The lady was upset but stated that she wanted the labor warranty and to go ahead with the repair. How do you guys handle this type situation? Customers supplying their own parts (usually wrong) are killing me. Thoughts and comments?

We are also seeing an increase of people asking to supply their own parts. I think it’s a combination of economic conditions and the Internet. I also question why some part suppliers would sell to the consumer the same price we get the parts for; that bothers me. Most part stores give some sort of discount for walk-in trade, but the public should not receive the same discount as a professional.

As for allowing people to bring in their own parts, I avoid it. I don’t want to go down that road. It’s a road to failure because you lose too much profit. We earn a living on labor and the profit we make on the parts, taking away the part profit will most definitely hurt our bottom line.

Are there exceptions? Of course: People buy tires through Tire Rack, some people will buy struts and attempt to do it themselves and find out they can’t do the job, people buy a set of plugs and realize the job is too big for them, etc, etc. For these customers I will make an exception, but all in all…I supply the parts, the labor, give the customer a great warranty and that’s it.

I found this article in Dealer Magazine (a trade publication for New Car Dealers), and thought is was interesting....

Millennial Buyers Compare Car Buying Experience with Going to the Dentist

Dealers have to be ready to deal with every kind of buyer that is going to walk into their dealership. These include the buyer that doesn't have a clue what they want, to the buyer who knows everything. One buying group dealers need to keep track of is the Millennial buyers. These buyers are the tech-savvy generation of consumers that have grown up with the internet and are very comfortable with technology. Microsoft recently conducted a study of more than 1,100 Millennial (those aged 18-29) buyers and found this generation is disappointed with the technology capabilities of their dealers and potential vehicles.

The research was conducted to get a feeling for how the Millennial generation feels about the technology features and options offered in cars and how they use technology to research potential cars for purchase.

Here are some results of the study:

• Two-thirds (67 percent) of Millennials believe buying a car is one of the most intimidating purchases a person can make, and more than half (56 percent) classify negotiations with a salesperson as more painful than going to the dentist.

• Eighty-four percent of Millennials agree that having convenient Internet access in the dealership during the car buying experience would make the process seem more transparent and fair.

• More than a quarter (27 percent) say the technology they would most associate with cars today is a 1980s desktop computer or a typewriter, indicating that there is plenty of room for improved in-car technology in auto maker’s future lines

The survey was conducted between April 6 and April 12, 2010 by Wakefield Research. About 1,100 people were surveyed via the internet.

Good move Joe. With you writing ability you are a natural for this. I predict great things. Just remember me if you need some help!

Thanks for your vote of confidence!

I am pleased to announce that I will be working with Elite Worldwide as a business development coach helping shop owners reach their business goals and become more successful. I have known Bob Cooper for many years and have been a member of Elite Worldwide for more than a decade. I can tell you first hand, Elite Worldwide has been a driving force in taking my business to a higher level. To have the opportunity to help other shop owners will truly be an honor for me.

If you are interested in finding out more about how we can help your business become more profitable, please contact me; 845-628-7900 or email me at [email protected]

For additional information about Elite Worldwide go to Automotive Repair Shop Management by Elite

Part of our marketing is attendance to various car shows in the area, as we are a high performance shop. Basically we just display our personal cars and sometimes, customers' car (with permission, of course) and answer questions. Usually it is for 3-4 hours on the weekends, after regular work hours. For several of the guys, it is no problem, but we have 1 hourly employee. He likes to go and usually takes one of my extra car, but i am worried about the labor laws and insurance. Before I rack up hours with a labor law attorney, I wanted to canvas the membership here for information.

Due to different state labor laws I suggest consulting your attorney and/or accountant. If there is a State labor office, you can contact them too. I would not want to give you wrong advise.

Joe,

 

I don't have a quick answer on this one. I have a marketing program that ties everything in together. If you go to my website you will see my specials that I run. We don't have state safety inspections in california, only emissions testing. When I get a minute I will outline what I have been doing the past two years now that is working VERY well!

 

Keith

Thanks Keith, did not mean to give you homework, but....

If there ever was a customer that I would never forget... it's Sarge.

He never had a dime in his pocket, he never drove the nicest or best cars... but... he had a heart of gold.

I look at it this way... if I was in a combat situation and needed someone to watch my back... I'd get Sarge.

and I'd do the same for him too.

 

Right after my book was published I called his son and told him to come down to my shop and that I had something for him. I gave him a copy of my book... he read the entire book cover to cover. Then he told me what he had done.

 

He went to his fathers grave sight and read the story "Old Sarge" to his father.... I was proud and humble at the same time... semper fi

What a moving story! This is what America is all about. "Old Sarge" and others like him is what make America the greatest nation in the world. Let us pray we never foget those people. My father was a Sergeant during WWII and I too was facinated with his stories. I started to compile his stories on paper so the memories I have will live on.

Gonzo, thanks again for bringing so much to ASO.

Yes keith, come out of hiding, it will onl add the value of ASO. I am also thrilled you value in this web site. Like I always sau, there is a wealth of knowledge among us, and through networking we can all raise the bar.

Keith, can you tell us a little about what lost leader programs you are using, if any. You warned about some of the oil change programs that may be destructive; are there any programs that are working for now?

The phone is absolutely critical. At our shop 90% of the phone calls are answered by either myself or my service manager. We are both very good (just my opinion) at dealing with people on the phone and talking them into the shop. In addition once per month we are mystery shopped by Car-x and recorded and scored accordingly. This helps us to know if something isn't what it should be. You might try having a friend or family member anonymously shop you by phone and record the results.

Excellent suggestion; having a mystery shopper call from time can be great tool to improve phone skills.

You company phone is your lifeline to your business. You need to have the right people answering the phone. Having the wrong people answer the phone can damage your business. We spend a lot of time and money on advertising and marketing to make that phone ring. All that can be wasted if the person answering your phone is rude, unfriendly and doesn’t understand the skills of customer service.

Everyone answering the phone needs to be trained properly. Be cautious of having techs answer the phone too; having to break away from a swinging an engine and running to the phone may be a big mistake. Their frustration will show right through to the customer and will be perceived in a negative way.

You need to have dedicated people answer the phone that have the proper training. Obviously, it should be those in customer service; service advisors, service managers, office personnel or receptionist.

This may not be practical for smaller shops. For smaller shops, select those with the best phone manner; create training scripts and have them practice.

Trust me, the wrong people on the phone will turn off people and just may turn them away.

A litle something for all those car guys and gals out there... Enjoy.

The Cars We Drove In The 50s & 60s

Gonzo, thanks, that was great.... a blast from the past. I had a few of those cars back then. It's why I got started on this business. I guess for many of us, these are our roots. Those muscle cars will always hold a special meaning for guys like us.

Good morning all! I would just like to introduce myself s we have just joined this week as a sponsoring member of AutoShopOwner.

 

My name is Danny Sanchez and I have been part of the Automotive Industry for over 23 years. My shop in California is still there today, I left 7 years ago to start a new business and life in North Carolina. My brother and father have since sold the business, and have also moved to North Carolina!

 

I have been using my experience and helping others through sales and management training, the last 7 years I have spoken and trained at some of the largest events in our industry. I really enjoy speaking and training.

 

Our main business is Internet Marketing for the Automotive Industry. We are the only company to have won multiple times in the AutoInc. Top Ten websites for the last 2 years. (7 out of the last 20 to be exact) We are the only full agency to the auto repair industry, we design and build award winning websites, have a staff dedicated to SEM or paid search, expert SEO, Email Marketing, Social Media Marketing... and more. Our goal is to continue to be the leader in electronic media marketing in the Automotive Industry.

 

I hope our involvement here will be of good use, I beleive in helping others and business will follow. If you have any questions, please don't hesitate to ask.

 

 

 

Danny Sanchez

Autoshop Solutions

Danny, again welcome aboard. Great to have you part of ASO. Looking forward to your participation!

Joe,

 

Thanks for the kind words. I will "come out of hiding" and be more proactive with this website. I really like this website and feel it is the best thing I have seen out there in terms of education and training for our industry. I will respond to more posts using my background of training and my past seven years of business ownership. I hope all is well out there.

 

Keith

Yes keith, come out of hiding, it will onl add the value of ASO. I am also thrilled you value in this web site. Like I always sau, there is a wealth of knowledge among us, and through networking we can all raise the bar.

As we celebrate Memorial Day, we all need to reflect and honor our brave servicemen who fought and those who gave their lives to preserve our freedom.

WOW! What a speech. He should run for president, he would have my vote. What he is saying needs to be said. The current administration is killing the fabric of this great country. We need to change, we all need to get involved and stop this madness from happening.

Keith,

First, let extend my sincere appreciation for your insight and sharing your thoughts with us. I want to emphasize to all ASO readers that Keith’s background from the training side of business combined with actual shop ownership experience is a unique situation which we can all learn and benefit from.

I agree with your assessment. I warned many of my colleagues not to compromise on price in an effort to maintain car counts. As you have found out, an increase in car counts can decrease your overall profit. Busy does not always equate with profit. There needs to be a delicate balance between being accommodating and profitable. In addition, we must understand who are client base it and continue to market to these people. We have lived through possibly the toughest economic period in recent history. In the 30 years I have been in business, this appears to be the toughest.

I think the reason we were up in sales is due to our recent expansion and marketing programs. We did a lot of homework and due diligence finding our target audience and market heavy to this audience. I don’t compromise on quality or want to be known as a discounter. And, so far it’s working.

The issue with implementing ideas from a management training seminar is a touchy one. Many struggling shop owners, who happen to be great techs, are overwhelmed with new ideas and because of the problems they are having with their business, feel that they need to play catch-up. And, often ends up with a frustrated staff and disappointed results.

Keith, it was great hearing from you and please continue to participate in the forums. It’s what ASO is all about; the free exchange and sharing of ideas and opinions.

Joe

Thank you, Very helpfull, Wish i found this site sooner, Its nice to be able to see what other shops are doing, hopefully i can help also.

I am thrilled you feel that way, that's why we started AutoShopOwner.com, together we can all prosper!

Could i get some ideas on what you base your bonus plan on?

It’s a little complicated, but I will do the best I can to explain.

When a tech is hired we track the techs labor hours sold and compare those hours against the hours worked. In other words if a tech books 20 hours in a 40 hour work week, that tech is 50% productive. If the tech books 40 hours in the same week, then that equates to 100%.

What we do for all new techs for the first 6 weeks is to find what their average potential is and after 6 weeks we will give them a bonus (based on the hourly rate) for every hour they book over their average. The average potential becomes their minimum level of performance expectation.

So, let say a new tech averaged 35 hours in a 40 hour week for the first 6 weeks of employment; the 35 hours becomes his goal to beat. Anything above that, he will receive a bonus. If he books 39 hours for a 40 hour week, he get 4 extra paid hours.

Now the goal is get that tech to 100% level. Each month we raise the bar and within 6 months the tech has to achieve 100% in order to get any bonus.

We feel that this is fair because it allows the tech to compete against himself and not other techs.

With that said, there is a lot that goes into maintaining high productivity levels: wasted time with comebacks, wasted time with waiting for parts, the wrong parts, defective parts, not selling enough labor hours, giving away diagnostic time, slow service advisors not selling the work quick enough, shop layout, tool truck time, cigarette breaks, late back from lunch…..you get the idea. The only way to truly get shop production up is to do a complete shop analysis of where the bottle necks are and track every minute of the tech’s time.

I hope this helps.

When I saw this I was very thankful no one was injured when we had our lift failure.

'

That is sad. Sometime mechanics get too comfortable or just make stupid mistakes. When I worked at the Ford Dealer in the 1970's, we had 2 cars fall off the lifts, all due to human error,

We had a member post a question asking about the company Fleets Plus. After speaking to one of the owners of Fleets Plus, it appears other members confused Fleets Plus with another company. Some of the replies about the company Fleets Plus are not true.

ASO asks its members to please be careful about posting comments about a particular company. For liability reason, confirm the source before posting comments. Although AutoShopOwner.com was founded on the principle for the free exchange of ideas and opinions, we want to insure that our integrity drives the forums.

AutoShopowner.com is committed to all its members and will continue to provide a valuable business source for automotive shop owners around the world.

Thank you for contributions to ASO and your understanding on this matter.

Can ask if you are paying all of medical cost, percentage?

We pay half.