Joe Marconi

Intelligent minds think alike.... I thought I was the only one that thought the BBB was a bunch of dues collecting dim wits that only had a dollar in mind. And your right the consumer thinks they walk on water.... dah... what a joke.

 

The cheap shop is a problem... had a customer stop in ask about my prices and when I went to lunch I seen their car at the cheap shop in line to be repaired... go figure.

 

I'm so so glad to see we are all thinking on the same lines... lets me know that I'm not the only boat in the water... well, gotta get back to paddlein' more to do today.

 

Thanx for all your comments. Hearing that we all have the same views is quite a comfort. thanx again.

It is what AutoShopOwner..com is all about...spread the word!

Asking how the wiper blades are doing or have the tires been rotated lately (and a quick mention that we'll check the brakes at the same time) sparks interest. I notice that most customers appreciate the "reminder" that there was something they forgot to tell me.

I totally agree. I tell my advisors to always ask questions such as; is the car due for rotation, how are you wipers, etc. If there is very little vehicle history we will also ask if they are up to date with all scheduled maintenance. The key is to ask...

Wow you guys have opened up a lot of subjects for discussion. If my writing isn't too good it is because I am bouncing down I-24 south of Nashville. Concerning the BBB I think they are a scam. They pressure businesses to join so they can collect the dues and then they do nothing. The consumer seems to think that BBB has some power or governmental type clout. They don't do anything. They are a joke. Even if a business is real shady it is hard to get any scoop on them from the BBB. They don't report it they don't want to get sued. They just want to collect the dues.

 

Concerning the really cheap shop. They will not be able to retain help and they will have to use cheap parts. Short cuts and poor quality work will be their norm. They will fight with customers over warranty work becuase they can't afford to do otherwise. They will not be around for long but long enough to damage all of the more responsible businesses. I saw this type of thing in the environmental consulting/contracting business I was in before.

I agree on both points, xrac. BBB is a scam, nothing more than robbing money from any business willing to pay the membership.

I too cannot believe that selling yourself short can last for long. You may struggle for a long time, but it must take it's toll in the long run. I don't want to see shop owners caving in and get into a price war, that will kill us all.

I know we have spoken about this countless times, but I need to hear again ideas on handling comebacks.

There are 3 types of comebacks; Part failure, communications or procedure breakdown, and tech failure. Part failure we have no control over. However when a pattern develops we need to look at the part supplier and question the quality of the part. Communications error between advisor and tech or between customer and tech can be solved, that’s relatively easy.

Now, what about tech error? Do you make the tech accountable for the error when it’s clearly the tech’s fault? And, how do you handle part failure with your supplier?

Of course your right again Joe, that's the media, the society and people in general...

 

But, on another subject... related to this... One of my old employees stopped by to say hi... wonder if I was busy... I'm not... He tells me he is making just as much as he did when he worked for me... but is doing 3 times as much work... and seems to always have more to do... I asked how is that possible... Oh you'll love this....

The shop he is at now... charges 40.00 an hour and cuts all the book times in half to the customer and the mechanics pay... Talk about a screw job .... This is another reason why I don't like the BBB I know this isn't there catagorey... but wouldn't it be nice if the playing field was level... this shop is staying in business because he is undercharging for his services...

Now I'm pissed... again.

Wow! This is a side of the industry that drives me crazy!!! There are too many shop owners that should not be in business. They hurt it for the rest of us. Let me ask you a question...How is staying in business????

Why is it that a “writer” for a magazine is the so-called expert? I agree with xrac. I have read too many articles that are very similar, almost word for word, like this one.

 

The articles always expose the negative things that happen, never promoting the good.

 

The truth is, and I know you all agree, that most shops work extremely hard at insuring that they do the best job they can. I have nothing but respect for my fellow mechanics and shop owners, and resent those with little knowledge of our industry telling the public questionable information.

[/quote

 

I totally agree... it's not the fact that some "writer" wrote this article but the fact that he "umbrellas" the entire independent industry. It would have been a whole lot different if they would have said... "In some cases...." But it seemed to me that they were saying that ALL independent shops work this way.

 

I was really pissed when I read it, and I did send him a msg back. This letter reminds me of how the BBB calls me once a year and wants me to join. I always say no... why you ask... this is what I tell them... "Do you ever recieve a phone call or letter saying how happy they are for services they recieve from a repair shop, or are all/most of your calls from people having a complaint." It's just like this article... all one sided answers....

 

page 168 I think in my book has my thoughts on this subject... Joe, have ya read that section yet... it's not "the golden rule" but at least it's something.... I should post that section.

 

I read your thoughts on page 168 and you are right on point. It’s unfortunate but “sensationalism” will always win over “journalism” and a few bad apples in any industry will always be the focus of the media and the public.

 

I particularly like you comments on the Better Business Bureau. Again, right on point! It’s the number one reason why I will never join. The BBB promotes the negative and never reinforces the positive.

 

Like I said, and will repeat over and over….Our industry is filled with dedicated, hard working people who sacrifice each day to keep this country moving. THEY deserve the respect they have dearly earned.

 

You know what really kills me: The president of the U.S. or a star athlete can commit the most heinous crime and all he has to do apologize and he is made into a hero.

 

Just wait, Tiger Woods will be back and he will get a standing ovation the first time he steps onto the green.

Here is one that I like.

 

The sale most often goes to the most interested party

--Steve Chandler 100 Ways to Motivate Yourself

Great saying...I do think that before you motivate your customer, you need to motivate yourself.

In the balance between being competitive and profitable, I think it depends on the goals of the business. Profitability goals depend on the overall direction of the business as the owner sees it. While many owner's goal is to be as profitable as possible, it is not mine. My goal is growth. Growth at all costs. Being a fairly new business, I want to build a huge customer base first and make money later. As long as I am covering overhead, providing my employees with good pay and benefits, and am personally able to take a reasonable salary, I will cut prices to the bone to beat my competitors and gain their customers.

 

I can honestly say that I have never priced any service or product by a profitability projection. My prices are based on the market and I change my business to make sure it can operate under those margins. I feel that the most important thing in this economy is a strong customer base not maximizing the profit of each job/sale. While I think both can be done, I will never lose a reasonable customer to price. Never. I'll take a 15% overall profit on a tire sale if I know I gain a customer in the process.

 

I envision one day changing my business goals to maximize profit and when I do that, I will already have a strong and loyal customer base to support me. So again, I think that balance you are talking about depends on where you see your business in the future.

I completely understand what you are saying. We too, believe that growth is our number one goal; but how you get there depends on making a profit. No company can grow without making a profit. To say, growth all cost, may be one way to achieve that, but I do believe that a company can be competitive and profitable by having a strategy based price structure and not give the farm away.

You need to remember that a business like mine which has been around for 30 years has gone through many recessions and growth spurts. We recently built another facility and for the large part, adhered to you paradigm.

Building a strong customer base is vital to you growth and survival, you are 100% correct. For me, building my customer base with the right kind of customers is equally important.

I am taking the plunge and will soon hire another advisor. My top advisor will become the facility manager and under him he will have 2 advisors. After 30 years in business and with our new facility, I feel that I am being stretched to the limit and putting in the hours I did when I was in my 20’s.

We need to increase sales a bit to support the new advisor, but I need to make it work. At this stage in my life I want to completely take myself out of the day-to-day operations in order to continue to grow my business and work more on AutoShopOwner.com.

Please tell me your thoughts….

This is an ok article but really pretty basic. My guess would be that the authors never have had a lasting relationship with one shop. Having been in this business for eleven years and having been on the other side of the counter previously I can say that to me the best thing is for the consumer to find a shop they can trust and build a relationship with. I think that is the kind of place most of us on this board are.

Why is it that a “writer” for a magazine is the so-called expert? I agree with xrac. I have read too many articles that are very similar, almost word for word, like this one.

The articles always expose the negative things that happen, never promoting the good.

The truth is, and I know you all agree, that most shops work extremely hard at insuring that they do the best job they can. I have nothing but respect for my fellow mechanics and shop owners, and resent those with little knowledge of our industry telling the public questionable information.

Why They Stay, Why They Leave

 

Employees...

I feel that people don’t always view money as the only motivator. Once the basic needs of an individual are met, money no longer is the anchor that keeps them working at a particular company.

For many young people when given a choice, having time off vs. overtime…they choose time off.

Above all people want to be respected, treated fairly, make a decent wage and feel like they are making a contribution to the company. When all those are met, most people will not strive for more, whether it is money or higher position.

I have already discounted labor, and learned my lesson. The offer will be over on the 22nd of this month. This is a big college town so it is hard to get these people to pay for anything, and right now i can not turn away work. Thanks for the advice i do appreciate it. Oh and by the way, my location isn't that great, but the main street that runs by me is always busy. Unfortunately its a 45mph speed zone. I need signage!

Yes, signage is important. College towns are tough. Is it possible to contact the local colleges, maybe give a consumer clinic or fund raiser, student dicsout card? Just a few thoughts.

No matter how I hard I try, my mind always drifts to business. Many of you may know that I just returned from a 7 day cruise. While on the cruise, everyday around 3:00, I would go to the coffee bar on deck five. I know many of you are probably thinking; COFFEE? What about the margaritas? I drank many margaritas too, don't worry...

Anyway, back to the story. Everyday day I ordered my coffee and the person behind the counter would ask, "Would you like a pastry with that coffee?" After getting my coffee I would sit down and I could hear the guy ask everyone, "Would you like a pastry with you coffee"? Most said no, but everyone 4th or 5th person, said, "Sure, what do you have".

Here is the lesson; ask for the sale. It's like I always say; "Never tell, never sell".

I should send you the story I wrote about the differences between a doctor and a mechanic...

I love that joke. I actually told it to a doctor friend of mine.

Welcome and good luck to you on moving to a new location.

I want to cover a few things. Try not to fall into the trap by setting your prices and labor rate by what other shops are doing. I know you need to be competitive, but you also need to know what it will take to be profitable and nit just merely survive. You need to sit down and find out what your breakeven is and what return on investment you need to make. This may take a good accountant to calculate.

Xrac mentioned that a 20% mark up would drive him out of business. I would bet that there aren’t too many shops that can survive on that. Parts mark up should be in the 40 to 55% range and labor needs to be the 70% for the average shop. Again, sit down with your accountant and do the math.

I know firsthand a few shops that went out of business because they either beat of matched the price of the cheaper shops in their area. The reality is that the other shops never did their homework and they all suffered.

I like to be a leader and set the tone in my area. I worry about my bottom line, not the low-ball shop down the road.

As far as new business; I did very well when I expanded and built my new shop by using radio, TV, direct mail and getting involved in local business organizations.

One last thing; market to the customer you want, never try to be everything to everybody.

Thanks everyone for the warm welcome back. Good to get away, great to get back.

I was so tempted to use the ship's computer and log on to AutoShopowner, but I think my wife would have thrown me overboard. And not being a good swimmer, I thought it would be best to wait untill I get home.

So here I am!

Hello to all. I have just recently started an auto repair business in Tallahassee, fl. After just closing down our car-lot, we decided to open a mechanic shop. Employing just myself and my partner (girlfriend). How do you guys attract costumers? we have only been getting 1 call a day with only 2 cars a week. We advertise on craigslist, have just sent out postcards and have put up flyers around town. What do you suggest?

First, welcome and good luck.

How is your location? Are you visible to traffic? This is important.

Advertising and marketing is important but can be costly. You need to start by getting involved in your community. Introduce yourself around town, even to other garages. Get to know the quick lubes too; they can be a source of work that they are turning away. Join business organizations and network among the members. Also, get involved with sports teams, churches, schools, etc. All of these things don’t cost a lot and should get you going. You can sponsor a fund raiser at your shop, perhaps a car wash or clinic to attract people.

As you grow we can talk about advertising, but you need to get your name out first.

People need to realize who you are and what you have to offer.

Did you have a grand opening event, if you did not, you must do this.

well i will say this is going great.This is the best thing i ever done for my automotive repair shop.

Can you give us details on how it is helping you?

I’m back from my Caribbean cruise. We visited Puerto Rico, Antigua, Tortola, St Martin and Granada. I had lots of fun, rested a lot, had many of those “fruity” drinks with the little umbrellas and baked in the sun. It was real nice to get away, but now I’m back, ready to roll

Let’s see how long it takes me to get up to speed.

I am leaving for vacation on Sat. That is, if the snow lets up. NYC is getting hammered with snow and I am scheduled to leave 7:00am Sat.

I am going on a cruise, flying first to Puerto Rico.

Any way, wish me luck to get out ok...

I'm glad to hear you cleared your name and reputation with the paperwork trail. Good job there. But, you left one unanswered question... this one bothers me... WHO CALLED YOU IN??? I don't have a problem with the EPA, but I always run into problems with irate customers. Most of my general repairs are electrical in nature (Auto electric specialist) and I've seen people get bent because of the lack of understanding of how the systems work or over the cost of the repairs.

But, I am always looking over my shoulder for that "crack'd pot" customer that has set his vengance on myself or my company....

So.... did ya find out who it was... or have you started to look over your shoulder too....

I too want to know what information they obtained to fine you.

You handled it right and I am glad you were cleared, but are we easy targets for BS like this?

Getting back to the Midas story; unfortunately, our industry has no standards and not enough of us present ourselves in a professional manner. The public reads an article about how oil changes are ok every 10,000 miles, written by a free-lance writer for House and Garden Magazine and he becomes the expert!!!!

Have you calculated what all of your fixed costs are: taxes, insurance, telephone, utilities, rent, etc. How much are wages, employment taxes, any health insurance, etc. What is the bare minium you need to have monthly to survive? As a rule of thumb you should be able to generate $10,000-$12,000 per bay per month with proper staffing.

Calculating your fixed costs and variable costs is the best way to start. You need to sit down and start doing some calculations to see what you need to break-even. This number is key because you goal is not to break-even but to make a profit.

I suggest sitting down with your accountant to project these costs. It is vital from the very start that you understand and know the numbers of the business. Also, I recommend tracking these numbers.

Because this is a start-up, you may not know what your sales will be. Do not fall into the trap of giving the farm away to attract business. This will only bring in the wrong kind of consumer. I do, however, recommend Grand Opening Specials at a discounted price.

Are you planning on having a Grand Opening Event? When I opened my new facility last year I had a big grand opening event which actually gave me momentum that lasted throughout the summer.

Hi Curt,

 

Thanks so much for posting your experience with our brake products, I really appreciate you taking the time to let the members of the group know we have viable solutions to service problems.

 

As to your question on using the Brake Soap during disassembly, I have used it for that work with good results. I would base the decision on whether or not the parts are caked with heavy, greasy contaminants. Our specially formulated soap is not intended to cut heavy grease but rather to go deep in to the pours of the cast iron rotors and drums, to demagnetize and pull out the loose metal parts. If the parts are really dirty (greasy) us a serious degrease type product before the cutting and honing process. As a note, if the rotor or drum is rusted and dry, I highly recommend using a simple sand blaster (table top or cabinet style, etc) to remove rust and clean surface to a shine. From there you can rinse in our brake soap liquid before going to the lathe. It is imperative you have a shiny surface in the hat areas (adapter mating surfaces), before setting up on the lathe, otherwise you will induce run-out and create an out of spec part.

 

If a shop is still using brake clean to prepare a rotor for assembly, they are behind the curve nearly 10 years. In tests done over 7 years ago at Aimco (largest mfg of brake rotors), it was determined a soap and water cleaning of rotors or drums removed 40% to 60% more of the loose metal introduced during the cutting process. The properly washed rotors, the ones cleaned with soap and water, retained less than 3% metal while the brake cleaned rotor retained 25% to 35%.

 

If metal particles are left in the rotor or drum surface, when they are heated during the braking cycle, the metal will work it way out and impregnate the pad surface. This will case excess heat to build during the stop but of more concern is the chance for noise.

 

Please call me and get some Brake Soap, you will never go back to expensive brake clean. Better, you will be providing your customer with the best brake job possible.

 

Gary

1(800) 266-4497

Gary, I know I speak for all members and want to thank you for the information. This is a serious problem. Techs do not realize the long term damage from the use of brake cleaner and other chemicals.

 

Not to scare you, but a good friend of mine is a machinist and used brake cleaner to clean parts for more than 20 years. He recently had a kidney transplant for a failed kidney.

 

The doctors attributed to brake cleaner!

 

 

 

That's still scary Joe....

 

If we could look through the microscope at almost anything these days, we would probably all be running for the wide open country. I used to spray a lot of Dupont Imron paint years ago and today I feel I'm suffering from the affects it had on my central nervous system. (It had Cyanide in the formula)

 

I just wanted to mention the we manufacturer a very special soap for cleaning brake parts, we needed something to go along with our OE Approved "5 Step" Brake Procedure ( www.StopBrakeNoise.com ).

 

You simply mix a couple of tablespoons of the powder in a gallon of water and your have a solution that is perfectly matched to the surface of a rotor or drum. By that I mean, the surfactants, anti corrosives and lack of oil, make it perfect for demagnetizing and cleaning of the pores. This is a critical if you want to eliminate potential problems when the rotor or drum heats up on the vehicle. When that happens, any remaining metal particles from the cut works their way out and into the pad surface and cause excessive noise. ( www.BrakeSoap.com )

 

Best part is the GWR Brake Soap is biodegradable and costs less than .05 cents to properly clean a vehicle's brake system. Be careful comparing this to a couple of cans of brake clean per vehicle, times the number of jobs per year, you'll have a heart attack. Even if you don't use our soap for other services, doing brakes is a large consumer of brake cleaner in today's shop. If you figure only a case or two a week of sprays, using Brake Soap can save you $500 to well over a $1,000 per year.

 

Hope this is of value...

 

Gary

1(800) 266-4497

www.GWRauto.com

 

Great, Great information! It amazes me the amount of useful information we can all share in. The power the these forums is very exciting!

That's what I wanted to know. My wife and I have talked about something like this for a while. What kind of price do you do?

A few customers told me that they considered the supply charge the same as those annoying charges on your phone bill or electric bill. I know that many shops use it with no issues; I just thought that I did not want anything negative. It was a business choice.

The LOF program works great. I was tired of seeing quick lube stickers on my customer’s windshield, so I created this plan. The customer purchases 4 pre-paid coupons and will receive $10.00 off each LOF service. So, if an oil change price is $35.00, the customer will save $40.00 on a book of 4.

The concept is to have the customer pre-pay for the plan. In this way, it prequalifies the customer because the customer understands that he or she is making a commitment to YOUR business to return at least 4 more times.

This program took off from the start, and even though is it a lost leader; we get tons of work from it because we create loyal customers. And, everyone buys more coupons when they are used up.

I am working on a new program designed for newer cars under 36k miles where I will package a BG MOA and CF5 and feature the BG lifetime protection along the BG Saftrack Road Side Assistance. It will also include a 10% discount card on all future maintenance and factory scheduled services. The concept will be the same; the customer will pre-purchase the LOF program at a discounted price. The only difference is it will include the BG products at a greatly reduced price.

I believe in the razor blade theory: "Give away the razor, the money is in selling the blades".