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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. Perhaps in some Fairy Tale world, all techs are getting along nice, helping each other, not worrying about the other guy, just trying to do the best he can and can handle anything that enters his bay. But, reality is reality and techs are people and we need to understand that many have limitations and emotions can and will get in the way more often than we like. It is a delicate balance to give all my techs the opportunity to earn a good wage and dispatch the work fairly. But in a real world, it doesn’t always work out and animosity begins to set in. I cannot show favoritism either. That will kill the shop for sure. I deal with the emotions as best I can. I give praise to my techs for a great job and thank them often. Some things cannot be totally solved; this is one of those things.
  2. All great points! You would be shocked at how some shops treat their part suppliers. As we all know, a little "honey" goes a long way.
  3. We all know all too often the frustrations of dealing with your local part suppliers at times; wrong parts, defective parts, delayed deliveries, on and on. Although it may appear as if there is a conspiracy, I don’t think they intentionally want to do your business harm. The fact is we need our part suppliers and we need on-time deliveries. Productivity equates to profit and having the right part delivered in a timely manner is critical. We started a policy to be respectful and courteous over the phone to all parts counter people and to the drivers. We make a little small talk and make sure we thank the drivers for the fast service. You be surprised how people react to a little humanity for a change, after getting beat up all day. Think of it this way….if your shop stands out because you’re known has the “nice guys”; I promise you if there are 2 deliveries going out at the same time, your shop will be the first stop.
  4. Believe me; we all know how valuable a talented tech is. And, sometimes we make allowances because of that. How do the other employees feel? That will become an issue. Sometimes, others may not tell you, but it is affecting their morale and that may be hurting productivity. I am not preaching to you or anyone, I would be the first to tell you I have my share of mistakes with regard to employees and policy. I just want to understand the mindset of the employee and how they can sometimes hold the boss hostage. If that Euro tech wasn't any good, you would have gotten rid of him long ago...right?
  5. Gonzo, where do you find these people? Or should I say, how do they find YOU? I know I can speak for many when I say that by now we all look forward to another chapter in the life of Gonzo. Keep 'em coming!
  6. My grandparents, on both my mother’s side and father’s side, came to this country from Italy in the early 1900’s. I am the second generation born here. We were taught never to forget our ancestry, but more importantly, we were now Americans. And being American meant something. With a thick Italian accent, my grandmother would brag that she could read, write and speak English. I was taught as a young child to be proud of being an American. We never referred to a hyphenated name either. We were Americans…not Italian-American. When my father enlisted in the Army after Pearl Harbor was bombed, he was asked if he had any issues fighting the Italians. He lashed back and stated that he was an American, and was ready to fight anyone or any country to protect this great nation. Yes, my family came here to become Americans. We never looked back, only forward. We did not send money back to the “home land”, like so many immigrants do today. We came here not only to better ourselves but to make this country better. And we made a difference. We won wars and worked hard. But, it’s not the same anymore. There is something happening in this country that breaking the fabric that once held this country together. I for one am disgusted at what I see, particularly from our current President and his administration. I think it’s time to take back America!
  7. Well, that explains it! It looks like most of the country is like California.
  8. Put together a game plan. How much exposure and how often, being consistent is important. Once you commit to social media you need to monitor and be part of it, which is the idea behind social media. I can tell you that some people have a hard time at first, but eventually it becomes second nature. Also, the kind of content and the message you want to deliver. You also need to put together a plan to reach contacts and promote the fact that you are using social media to your regular customers and prospect customer, whether its facebook, linkedIn, etc. For example, if you are on facebook, invite people to your facebook page from your web site and every form of advertising you do.
  9. Great article. I tell my service writers you need to establish a relationship before you can sell anything. You need to think of the customer as a friend or family member. Once this is established, the customer has trust in you and everything else will fall into place. With many first time customers, we use the same approach as in the article; we inspect and advise. We feel that we need the customer to feel comfortable with us first. This can only be accomplished through relationship building.
  10. Social media is not a fad any more. It’s time to stop experimenting and start managing your social media strategy. Create a policy around social media, even if you’re only a one-person operation. Your social media policy should include your objectives for each site and any rules you have around posts, articles, pictures, etc. Creating this policy will eliminate employee confusion, problems and PR and potential digital reputation management nightmares.
  11. Choosing a management and repair system can be frustrating, and it must meet your needs. I have both Mittchell and Alldata. We also use Indentifx and IATN. Sometimes we access the OE sites if we need additional information. When I started in the mid 70's, all you needed was the old Motor Manual and you hand wrote all your invoices. Those days are long gone. I have not seen GarageOperator, sorry. Good luck on your quest...it's not easy these days.
  12. I'm going out with friends tonight and planning on tell this joke! This is a classic!
  13. The business model you speak of with the new Car-X stores is the same model I used for my expansion. My traditional 6 bay "repair shop" performs all the heavy repairs and diagnostic work. It's where the traditional "meat & potatoes work" is done. But, in today's fast past world and changing demographics; I saw an opportunity that I was not capitalizing on. My new building (a standalone 4-bay facility) is primarily for walk in trade, while you wait service, tires, alignment and other basic service work. The model works and our car counts and sales have greatly improved. The point is, and I know you realize this, is that we DO need to change with the times. We cannot conduct business the way we did 15 years ago. Smith Corona, the great typewriter company, viewed itself as a typewriter company and could not adapt to change. Instead of making the bridge into the computer age, it stuck by its traditional product and went belly up in the early 1990's.
  14. The other day a customer, with no appointment, came in asking for a State Inspection. The inspection was overdue and he was leaving to go on vacation. It was Friday afternoon and we were overbooked already. The service advisor said that although we are booked if you want to hang around we would do it before the end of the day. He said, ok. We got the inspection done by 4:30. After paying his bill, the advisor, expecting to hear a "thank you", was asked by the customer, " What took so long? It's only an Inspection". You can't change people....
  15. * Part of a series of real life stories you can relate with! I got a call a few weeks ago from a customer (we’ll call him Dave). Dave asked me to give him a price on a 60k service for his daughter’s Honda Civic. She was coming home from college and he wanted to get her car up to date with needed maintenance. I asked Dave how many miles were on the car, and after looking up the vehicle’s records, I realized that she had put over 12,000 miles on the Honda, since we saw it last. I explained to Dave that it would be in his daughter’s best interest if I give the car a general inspection first, from bumper to bumper; just to make sure everything was ok. After the inspection I would be happy to give him a price on the 60k service and any other items identified during the inspection. Dave responded back, “You really can’t give me a price on the 60,000 mile service?” I explained again that many miles have past since we serviced the car and I just want to be sure that we look at the car in its entirety and not just focus on the 60k. After a pause he agreed and booked the appointment. The Honda arrived a week later and was dispatched to one of our techs for a complete general inspection. The inspection revealed only a few additional service items along with the scheduled 60,000 maintenance service. I was a little concerned about Dave’s insistence about the price when I first spoke to him and told my service advisor that I would be calling Dave about his daughter’s car. I reached Dave at his office and informed him that we had completed the inspection on his daughter’s Honda and that the car was in great shape. In addition to the 60,000 mile service the Honda would need a rear brake adjustment, a brake light bulb and a set of wiper blades. I gave Dave the total price, for the complete job. Dave responded back, “How much is the 60,000 mile service?” A felt a little confused at this point and itemized all the prices for him. He proceeded to tell me that a local dealer sent him a coupon and their 60k service was $80.00 cheaper! He asked me, “Why should I spend the extra money with you for the same service?” I could have explained to Dave that the coupon from the dealer was a special promotional price only. I could have also explained that dealers sometimes use these specials as lost leaders. I could have gone on to say that we employ only ASE certified technicians and that they receive on-going training and that we invest in the latest equipment and information systems. I also could have argued that this is how we justify our prices. But I didn’t say any of that. What I did say was this, “Dave, do you remember when you were leaving for vacation a few years ago, on a late Friday afternoon, and you noticed you had a flat tire on your camper? Do you remember I stayed open until you arrived to repair the flat tire? And do you remember the day your daughter was leaving for college in her sophomore year, and the check engine light came on an hour into her trip? Do you remember you called me and asked for my help? Do you remember how I arranged for a tow company to stand by in case your daughter broke down? And do you remember that I stayed opened until your daughter returned back so I can check the car out? Dave, is the service we have given you throughout the years worth a least $80.00?” There was a long pause and I knew from the sound in his voice that he felt a little embarrassed. He apologized and said that that he was trying to save a little money with the high price of gas and food these days. He also admitted that, with his daughter in her last year in college, he is feeling a little lighter in the wallet. We completed the 60k and the other service items later that day. What’s important is that I never tried to discredit the dealership. That would have gone nowhere. I also tried to direct the attention away from price and focus on the value of the relationship we have created throughout the years. In retrospect, I don’t know if I should have thrown it in his face, about what I did for him the past. I have mixed feelings about that. I think in these shaky economic times we need to concentrate on service. We need to address the concerns of the customers and give them options. Your customers will be looking to you for help and guidance, that’s part of your job. The shop that continues to deliver outstanding service and charges a fair price will thrive. I have lived though many economic roller coasters in my 30 years in business and have no doubt that this ride will pass too. If you’re wondering if I gave Dave a discount on the job, you can ask me that and any other questions, in the topic I have started for this story, in our forums. Let me know how you feel I handled the situation.
  16. I think you hit the nail on the head when you said you hired the right person to manage the business and hired the "right people". Too many of us have this notion that our entire business world revloves around us and we (because we are the owners of the business) are solely responsible for its sucess. While this is true to some extent it is not the whole picture. When Yogi Berra was asked, "What makes a great coach", Yogi replied, "Great players". It's the people around you that make you great. Yes, you need to do your job, but to be really successful, there has to be a team effort.
  17. There’s nothing wrong with helping out in the shop from time to time, but it must not become a crutch for the survival of your company. Each new tech will have his hours tracked and an average hour potential will be established. That becomes their base. So, if a tech averages 35 hours of labor per week, he must beat that before he gets a bonus. For every hour he books above his base, he will get paid an additional hour pay. In other words, if a tech has a base of 35 and books 45 hours of labor, he will get paid an additional 10 hours of pay at his hourly rate. Now, the key is to raise the bar every month or so until the tech is at 100% base. So, if a tech works 40 hours, you expect 40 hours of labor booked before he reaches bonus. I hope this helps, let me know.
  18. Are you sure you are not located near Transylvania?
  19. Coming from an Italian background, that is truly funny. I laughed so hard, I really needed the laugh after a hot, tough day!
  20. Starting your own business is a huge step and to answer all your questions at once will be overwhelming. But, through ASO, I am sure that we can help you with key points and give you valuable and life-saving advice. After 30 years in business I can tell you that the most important skills to being successful will be your skills to manage and run your business. I was a great mechanic, but knew very little about business. After struggling for a decade, I realized that I needed to become not just a man in business, but a businessman. I took seminars and classes on business topics: accounting, advertising, marketing and other business related courses. I read all I can on business and leadership. To be successful in the auto business, you need to be proficient in technical aspects of the business and in the managerial aspects of the business. Too many shop owners have failed because they were great techs, but poor business people. Let’s keep this conversation going, there is a lot I can tell you. Do you have any specific questions?
  21. Gonzo, if it were not for the details, I would say this story was made up. You have to sumit this story again during Halloween. I have to admit, it's not just the story...it's how you tell it. I tip my hat to you. Keep these stories coming, they are really fun to read.
  22. Below is my matrix. BUT, I need to emphazize, these are my numbers and what works for me. Plus this is a guide for general parts. It really does not apply to those invnetory parts that are fast movers, such as wipers, air filter, cabin filters, headlights, oil filters, belts, batteries and other quick movers. For fast movers I price at a competetive price beacuase I want to make it a no-brainer upsell when I have the car in for regular service. Again, pricing takes a lot into account. I have said this before but it is worth repeating. There is a delicate balance between being competive and profitable…too high priced and you wont’t sell, too low priced and you’ll be out of business. Let me know how you make out. I also think Curt can help you, he uses the Napa system. From ------------- Profit Margin $0.01 to $3.00 --- --- 76.10% $3.01 to $9.00 --- --- 71.45% $9.01 to $15.00 --- --- 69.20% $15.01 to $20.00 --- --- 63.65% $20.01 to $30.00 --- --- 60.00% $30.01 to $100.00 --- --- 53.00% $100.00 to $275.00 --- --- 45.95% $275.00 to $400.00 --- --- 33.33% $400 on up --- --- 20.00%
  23. Sorry to hear the news…however, some of the best things in life come out of hard times. We tend to learn more from failure than success. Remember, it’s not how hard you get knocked down; it’s how quick you get back on your feet. I have a strong feelings you are going to be fine. Good luck and keep in touch. Stay part of ASO too, we all want to hear from you and keep tabs on you. Ok?
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