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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. If you’re like me, in the over-50 age bracket, it’s no surprise that you view the world a lot different than the younger generation. On the other hand, people from the younger generation will struggle with many of the values and ethics of the older generation. When you consider the diverse demographics today combined with a multi-generational workforce, it’s easy to see how the differences in values and behavior are having a profound impact in the workplace. These differences may lead to conflict, which could have negative consequences on your business. Shop owners, in particular, need to understand these differences in order to maintain order and morale. Our perspective on life is molded by our upbringing. Our ideals are taught to us by our parents and from the events of our childhood, which help to shape who we are and how we live our lives. I am part the baby boomer generation. I am the son of parents who were brought up during the Great Depression, fought in World War II and learned that sacrifice and survival are the same. When I entered the work in the mid 70’s, the boss was the center of authority. The “My way or the highway” attitude was accepted as the way things were. If the boss raised his voice, he probably had a good reason. There was no discussion about it. If you screwed up, you knew it, and you vowed to yourself to do a better job next time. Because this was an accepted way of life, many people from my generation adopted this style of management and implemented it into our own businesses. The problem we now face is that yesterday’s management style no longer works with today’s diverse workforce. Priorities and lifestyles have changed. Past generations mostly focused on family and work. Free time was a luxury that was reserved for that rare vacation. Today, people place a high value on free time for themselves, family and friends. In my era, overtime was considered a gift. Today, overtime is often viewed as an inconvenience if it conflicts with personal time. How we approach workers today has also changed. If the boss approaches an employee to discuss an issue and is perceived as being confrontational, the conversation will not go well and will cause a rift between the employee and the boss, even if the employee was dead wrong. Before we go on, I want to make one thing clear. I am not judging any generation or group of people to be better than the other. Being right or wrong, or should I say being perceived as being right or wrong, doesn’t really matter. Everyone has their own way of thinking and adheres to certain core values that they believe they should live by. For business owners, it becomes a problem when we cannot see beyond these differences. My own shop went through difficult times recently with personnel after we expanded and built our second facility. With the hiring of new workers, most under the age of 30, we lost that close-knit family atmosphere. Moral and productivity tanked. My first mistake; I had forgotten that skill should never outweigh attitude. Identifying people with the same culture of your company means more than an impressive resume or grade point average from a trade school. I knew that morale and working as a team was essential. So, in my effort to improve morale and unify the company, I made more mistakes by refusing to accept the differences of the younger generation and by pushing my values on them. This resulted in alienating people and divided the shop even more. Some of the newly hired employees had to be let go, some left on their own. The reason in both instances however was the same; they were not the right fit. So, after a series of employee turnovers I eventually found the right people and at the present time our staff consists of people who age from 18 to 60. Learning how to get along and work as a team, however, was another thing. Morale becomes the foundation for success. Your workforce is a team, no different from any other organization. We all know that a divided shop cannot survive; morale will suffer along with productivity and profits. All teams must find common ground that can hold the group together. In order for any team to be successful, they need to rally around a common cause. A baseball team rallies around winning the World Series; it becomes the chemistry that bonds the team together. To improve morale at my shop we started to hold open meetings to air out opinions about how to make improvements in the business, particularly workflow. I let the meetings run themselves, only adding my input as a moderator, not an enforcer. From these meetings I began to understand what was dividing the shop. It became apparent that the diversity in personalities and ideals were causing indifference, dividing the shop. It was not lack of respect or animosity; it was more about the lack of understanding in the differences among the group. It also became clear that being the leader meant I had to set the mood of the shop. The mood and culture of an organization is always shaped by the frame of mind of the leader. If I am frustrated or negative, the rest of the shop will follow. In order to improve morale I needed to remain positive and become a leader that represented the culture of the shop. This also meant I needed to find ways to bridge the gap between the workers. What is the bridge? Find out what is important to each of your employees. What are their goals in life? What do there care about? Why do they get up in the morning and come to work? What do they want to see in the workplace? Most of all, find that common cause, a goal or series of goals that will inspire the people in your company to rally around. Running a business today is more about managing personalities than managing the numbers. To have a successful company you need to learn that it’s not all about you, you can’t do it alone. You need good people around, who feel good about themselves. The better the people in your company feel about themselves and about their coworkers, the stronger the company. Your culture must align people and inspire them. When looking to hire, find people who fit the culture of your shop. High priced talent alone does not insure success. The culture of your company is what matters and that can only come from you. Build a company where the culture is so strong, that people go to work because they want to, not because they have to.
  2. Yes, we need to deferentiate ourselves from the mass marketers. The problem will be in educating the consumer.
  3. family...that's what it's all about!
  4. Enjoying a great day with my family!

  5. Gonzo, I can top that. We had a Subaru towed in last November, new customer with a no-start. We diagosed the car and repair it the same day. Every day the the customer would call and asked, What time do you close?" Well, after six weeks of this he finally arrived at the shop, gave us half the money for the repair and did not pick up the car for another 3 weeks! Is it that bad out there?
  6. Are You Tracking Comebacks? “Comeback”, one of the most hated words in our business. We all get them. But how we handle comebacks, track them and learn from them is vital to our success. I don’t have to tell you how important it is to take care of a comeback in the quickest manner. In addition, no matter what the comeback, you will need to follow up with the customer in a day or so to make sure everything is ok and to show you care. Another thing you need to do is keep records of the comebacks. Was it a part issue, a tech issue, a training issue or a procedure issue? Keeping track and reviewing the findings with your staff will help make necessary changes and improvements to your business. If you find that an unusual amount of water pumps are failing from a particular supplier, you will have the documentation to back that up and possibly look for a new supplier. If your tracking identifies a problem with one of your techs, you can use this information to retrain the tech or get him the necessary training to avoid issues in the future. You need to share this information with all staff members; I call it, “Shared Knowledge”. We can often learn more from our mistakes than any other way. Knowledge is power, it takes a little effort on your part, but trust me, it will go a long way at improving your bottom line.
  7. Well, you are right, not politically correct....but.......
  8. i want to wish all the Mom's a very Happy Mother's day. To all ASO members, have a wonderful day with your family. Joe Marconi
  9. According to Honda, thier Ow20 is a semi synthetic blend. As far as a better oil change...most shops were charging more for an oil back in the 80's, when the oil, the filter and labor was a lot cheaper. Marketing and advertising from some segments of the industry (including new car dealers doing $19.95 oil changes) is killing us. Look what we do when we do an oil change....It should be called a maintenance service. Plus now you have to reset the light, take down the splash pan, on and on and on. An oil change is just not an oil change. Sorry for getting off topic...
  10. Some new Honda's require 0w20 oil, which is a synthetic oil from the suppliers that I have contacted. The local Honda dealer in my area sells the oil change service for the same price as conventional oil. This is hard to compete with. Any thoughts on oil and marekting 0w20?
  11. I understand the issue with correct friction modifiers, but if your service your transmission using BG fluid every 30,000 miles, BG will protect your car and give you a protection plan for the life of the vehicle for your transmission. The plan will give you $2,000 if you start the servicing under 36k miles, $1000.00 if you start the program under 75k miles. BG is a good company, why would they stand behind their product, if the product did not work? Maybe we should hear from a BG rep????
  12. That's the biggest issue in our area too. The condition of the rotors are so bad due to corrosion, it is not in the best interest of the customer to attempt cutting them, in most cases.
  13. I was waiting for your post....and you did not dissapoint me! Too funny!
  14. Oh boy, I got 12 out of 15....what does that tell you?
  15. Ray, I have been around the block a few more times I care to remember, and I can tell from the way you express yourself that you have great potential. I am glad you found AutoShopOwner.com. I hope you stay active in the forums; there are a lot of fine members with so much to offer this industry. The power of our industry is our collective knowledge. Remember, success is not a destination; it's a never ending journey.
  16. Hey Gonzo, do you ever wonder if there's a book out there that the consumer reads on how to treat a mechanic? You know, a book that for some reason is never shown to us? There has to be, think about it. How else do you explain these things? How can there be so much similarity among what people say to us. There's a book out there...I know it!
  17. So, You Fix Cars…So What? Do you ever think about why you are in business? Do you ever think about how you market your business to your consumer base? I know; you perform brake work, oil changes, steering, suspension, tires, alignments, check engine light analysis, blah, blah, blah. We all do that, so what? What I want to know is why you do what you do. What makes you different from your competition? Now, you’re not going to tell me it’s because you do a “quality” job, are you? The fact is the consumer can buy a Goodyear tire anywhere and get a brake job or an oil change done anywhere. Plus, there are a lot of quality shops out there. Is the only reason you keep going back to your favorite restaurant because of the good food? The truth is quality work is expected, and must not be used to define your company. Another truism; the average consumer has no clue nor do they care about your Snap-On sockets, Hunter Wheel Balancer or your OE factory scan tool. Those are things WE CARE about. Do you go to your doctor and say, “Hey Doc, what brand X-ray machine do you use?” Do you ever ask your dentist, “Those are nice instruments you are using on my teeth, who makes them?” Indentify who your most loyal customers are and find out WHY they keep coming back. The answer will define your business and define who you are. This is what you market and advertise; this is how you attract more customers who fit your culture.
  18. Yes, I know...here's a story for you. We had a Ford Probe with a no start at times and would break up under hard acceleration, ONLY at times. To make a VERY LONG story, real short. This car was at a trans shop for a transmission overhaul. They broke the end off the tab for the crank sensor on the flywheel and bent it back into place. Well, it lasted for about a year before having problems. It took me 4 days to find out this problem. I kept getting a strange signal from the sensor, but it would start, stall, no start, break up. Drove me nuts...It felt real good when I found it and fixed it, but lost my shirt, my socks, my pants and my underwear on the diag labor.
  19. Wow, that would have drove me crazy! You must really know your stuff, you stuck with it with conviction. Hope it was worth it $$$$$, becuase you deserve it...
  20. Enjoying a day with my family. Happy Easter!

  21. We all need time away from business to focus on those things that truly matter in life; family and friends. A little down time is good for the soul and will reenergize you. Your business will always be there. Happy Easter!
  22. Raising your labor rate and trying to increase your average ticket dollar amount in an effort to increase income may not be the way to financial stability. In fact, it might just make you fail! Before you send for the men in white coats and call me crazy, please have an open mind and read on. Like many of you, I once shared the belief that a high labor rate, quality work, high-ticket averages and superior customer service was the business strategy to create a successful repair shop. I also believed that the customers should never control the flow of work in my bays by dictating to me when they need service and that I should carefully plan out the day. There was also a time when I would refuse a walk-in for an oil change because I had too much work in the bays. Well, I’m here today to tell you that for me, this strategy is dead. It died along with the carburetor, points and condenser. The quality of your work, tracking key performance numbers and providing great customer service still holds true, but in today’s business world, it’s not enough. Look around at the world today. Has anything changed? You bet! We live in a fast past world where people balance work, family, fun, Church and other obligations. Both Mom and Dad have careers and are running from ballet to baseball. The media has been drumming into our head for the past thirty years that great service is getting what you want now and fast. Why do people today value their time so much? Because they have so little of it. So, here’s the scenario. Its Tuesday 2:00pm and Mrs. Smith arrives at your shop unexpectedly with a check engine light on. You politely and professionally tell Mrs. Smith that you would be more than happy to take the car in on Thursday. Now, she’s starts processing in her mind what she needs to do on Thursday: She needs to leave work early to bring her daughter to the dentist at 1:00pm and needs to be back at the office by 3:00 for a meeting, then dinner at 5:30 and the P.T.A at 7:00. “No, Thursday won’t do”, she says. Respectfully, you answer, “How’s next week?” At this point she gets frustrated and says she will let you know. You just may have lost a customer. You viewed her problem as a check engine light and how you would fit her car into YOUR calendar. She perceived her problem as another way to balance an already demanding schedule. Now let’s talk about labor rates and average repair order dollars, and I will hopefully tie all this together. Concentrating on bigger tickets and labor rates as a way to overcome inadequate car counts and low profit will simply not work. I’m not saying you shouldn’t charge what you are worth. I don’t give anything away in my shop and charge accordingly. But, what I’m more concerned about in today’s market is opportunity. I concentrate on maintaining healthy car counts to give me the opportunity to sell more. Today’s cars are not like those built in the 70’s and 80’s. You don’t have the highly profitable repair work anymore and cars are more reliable. Take a look at what the automakers are taking away from us: Timing belts, plugs/wires, fuel filters, distributor caps, rotors, etc. Not to mention long life coolant, transmission fluid and extended oil change intervals. This means you will need a healthy car count in order to give your shop the opportunity to sell profitable service work. This also means that you will need to be very proactive in managing your customer’s vehicle maintenance. You will need to be very innovative in your approach on maintenance and service, and diversify your services to fit a broader range of consumers. Successful “Big-Box” stores understand the law of compounding and moving product. Even in these tough economic times, Home Depot would rather sell 1,000 cans of paint a week and make $6.00 on a can, then make $12.00 per can and only sell 300. Why? Having that many people coming through their doors buying paint increases sales in other areas, such as paint brushes, primer, rollers and drop clothes. Again, when you increase the number of customers, you increase the opportunity to sell more products. This is the law of compounding sales through opportunity. Before you go lowering your prices, STOP. Most of us sell at a fair price already. What I’m suggesting is that when you increase car counts, you give yourself more opportunity to move product: such as air filters, cabin filter, batteries, wipers and other items. Plus, you are working on building a customer base that will more likely return in the future because your willingness to work around their schedule. You may have loyal customers, but if you’re not perceived as convenient and not willing to accommodate them when they need you, you may not be capitalizing on your potential to fully satisfy a customer. How do you increase traffic to your bays? Say “YES” as much as possible. Be more accommodating. Try to work around your customer’s schedule, not yours. Be more flexible. Your daily planner is not written in stone. Promote while-you-wait service, if at all possible. At my shop we welcome walk-ins and promote while-you-wait service. It has proven to be a gold mine of opportunity for us. I do understand that smaller 2 or 3 bay shops may not be able to handle a flood of waiting customers. For these shops you may need to rethink your business model to insure that your daily scheduled jobs are balanced properly in order to maximize opportunity. Remember; opportunity equals profit. View full article
  23. As AutoShopOwner.com enters its fourth year, I would like to personally thank all the members for their continued contribution and making AutoShopOwner.com the “go to” online business forum for the independent automotive repair industry. The success of ASO is truly due to the strength of its membership. The combined knowledge and participation of its membership base has far exceeded our expectations. For that reason, we at AutoShopOwner.com are very proud. One year ago I wrote about the tough economic times we have endured the last few years. I stated that although 2009 was very challenging, 2010 would be the year to make our mark. Well, another year has passed and the automotive independent repair shops have once again shown their resilience and the ability to overcome just about anything thrown their way. We may have lost a few colleagues, but not many; certainly not nearly the numbers that were predicted. And, when you compare it to new-car dealership losses, we truly need to stand up and give ourselves a round of applause. In an era where conglomerates such as Chrysler and General Motors needed Uncle Sam to bail them out; we tightened our belts, restructured our pricing strategy, diversified our services, continued to train our technicians, and stood up to adversity. The truth is we maintained the attitude of, “Business as usual”. Our strength always has been and will continue to be, ourselves. Yes, I know how you are constantly being told that you need to run your shops more like a business, and I have heard over and over again how an industry of “mechanics-turned shop owners” is the main reason for our demise. But, how do you explain our continued success? How do you explain the fact that the independent repair sector is alive and well? How do you explain that we, the independent repair shops, are the number one preferred choice of the motoring public? I think it’s time to examine how WE do business, and maybe the rest of world should take a few lessons. To be honest, many of can do better financially. Shop owners and technicians work extremely hard, give a lot of the profits away in lost productivity, and simply do not always charge what they are worth. Too many of us end our careers with little to show for it. For many of us, breaking away from skills of mechanics and learning the skills of business is almost unattainable. As we get older and a bit wiser and beat up, we make the necessary changes to ease back and take more of a managerial role. We see the writing on the wall and feel the pain of years past in our backs, hands, and shoulders. But, we endure, and make a life for ourselves and our family. As a fellow shop owner, let me outline the profile of the typical shop owner. The typical shop owner is a dedicated, community focused person, involved with either the local Church or other organization(s). We put in an enormous amount of hours each week, working on every aspect of business. We always strive to do our best and produce the best product possible. We commit ourselves to continued education. We always give the customer the benefit of the doubt and will do just about anything (even at a loss) to keep the customer. We warranty repairs long after the warranty period. We come to work sick and take very little time off. We never hesitate to pick up a wrench, broom, mop or push a car into the bay. We are in the business of helping people and keep this country moving. Without us, our communities would come to screeching halts. We will work days on a problem, until we find the fix. We never give up. We always find a way to win. No one, and I mean no one, can take away the fact that the typical shop owner is truly committed to their customers and to the industry. As a group, we may not be the best business people, but we always find a way to get the job done. My vision for the future is to see more and more shops realize that our proven track record dictates that it’s time to secure our place in the future. We have done great things in the past, now it’s time to do even better. Continue to shift your role as a company leader and look for ways to transform your business where all the people in your company can enjoy the fruits of their labor. Build a solid future for yourself and for the people around you. This will be your legacy. Do this for all the reasons why you have done everything in the past, not solely because of economic gain, but because it’s the right thing to do. You owe to you, your family, and to the people who work with you. As we move forward in 2011 and beyond, AutoShopOwner.com is committed to your success and will continue to provide a platform where the open exchange of opinions and ideas will provide valuable information through shared knowledge and experience. Premium Members Can Download Here View full article
  24. We all have had that week from hell. You know, the one week that makes you ask yourself why in the world you ever got into this business in the first place. The week that makes you doubt yourself, your customers and the people around you. And as you push through the week, every turn you make you find another fire to put out, another bounced check to worry about, another comeback that needs to be done over again, on and on and on. By Wednesday you say to yourself, “it must get better, it can’t get worse”. Well, guess what? It can. For me, my recent week from hell happened this past summer. I came in on Monday morning in the second week of July to find that my service manager was sick and would probably be out until Thursday. I also learned that one of my top techs got into a motor cycle accident over the weekend and was seriously injured, with no information about his return to work. It was 6:45am and little did I know, this was just the beginning, and it was about to get worse. A Subaru we serviced a few months ago was towed in over the weekend with a seized engine and the owner was blaming us for not putting oil in the engine. He was demanding we pay for a new engine because in his mind, it’s our fault. I gathered my crew together a little before 8am and told them this was going to be a very challenging week. I also told everyone to be positive, work together and we will get through this. On Tuesday my air compressor caught on fire. The compressor, only a little over two years old, apparently had a defect in the wiring which caused a short and fried the motor. We were one month over the warranty and I had to eat the cost for a new compressor motor. On the ride into work on Wednesday I called my shop foreman and asked if it was safe to come in. I was joking, but he wasn’t laughing. There was silence on the phone and I asked, “What happened now”? He told me that the transmission we installed in the Dodge Van last Friday was towed in overnight; “the transmission doesn’t even move”, he said. He also told me that there was a note from a very unhappy customer that said she needed the van back ASAP! Then he told me that someone threw a rock through the front window and that the Police are waiting for me. I wanted to turn my truck around a go to the hills and hide. Aside from these new issues, we were getting behind in our work as the problems kept mounting. Somehow, we made it through the rest of the day. Thursday morning started out ok. My Manager was back and we were well into the process of getting all the issues settled. The compressor motor was due to arrive that day. Luckily we had an old back up compressor which kept us going. The glass company was there installing a new window. Things were looking better, I thought. But, I was wrong. That morning we received the wrong tire shipment, and all the tire sales for that day had to be reordered. We lost electric power from a downed pole around the corner at 10:45am. We did what we could, but we all know how dependent we are with computers, lifts, phones and other equipment. The power came back late that afternoon and we all stayed late into the night to catch up. The push to get the work done was draining everyone, including myself. I could sense despair setting in as the morale in the shop was suffering. I spent the better part of Friday morning dealing with the customer of the seized Subaru engine. The truth is, there was oil in the engine, but low about 2 quarts and he couldn’t read any oil on the dip stick. According to our records he was 5,000 miles over his scheduled oil service. We only serviced his car once and as I questioned him, I realized he didn’t take care of the car as he should, often going over the recommended interval for an oil change. I asked him if there were any lights on the dash before the engine seized. After a short pause, he admitted that the oil light and check engine light had been on the day the engine seized. Knowing the truth put me in a better position to deal with the problem. He was still angry and wanted to know what I was going to do because we were the last to touch the car, but the facts were the facts and I stood my ground. By Friday afternoon I was mentally exhausted and was looking forward for the week to come to an end. About 3:30 that afternoon, a long time customer came in for service on her car. I walked over to her to say hello and she started to cry. I sat down in the waiting area with her and asked if there was something I could do for her. She told me that her daughter, 41 years old, just passed away from cancer. She left two young children and a husband behind. In an instant, all the problems that happened the past week took on a different meaning; all of the worry that I had the past few days suddenly vanished. This woman had real issues to deal with; issues about family and life, and in the end, are the only things that really matter. I sat with her until her car was finished and listened as she spoke about her daughter and family. When her car was complete I walked her out to her car. As I walked back to the office, I started to put things in perspective and realized that all the trouble that had happened in the last 5 days seemed a lot less important. As shop owners, we face adversity every day. At times I feel we are being tested. Sometimes, things appear to be too tough to bear. Sometimes, just sometimes, the problems we face are just what we need to remind us that things could be a lot worse. For me, I learned a valuable lesson about life. I learned to appreciate the things that really matter in my life and not concern myself about the things that are only part of life, not what life is all about. Tomorrow is Monday, and I don’t know what the auto repair world has in store for me. It may be hell or it may be paradise. But whatever happens, I’m ready for it. View full article
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