Joe Marconi

Coming from an Italian background, that is truly funny. I laughed so hard, I really needed the laugh after a hot, tough day!

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?

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.

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%

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?

Do you have access to IATN or Identifx?

Great question…and the best answer is….it depends on the list price. Different companies may have different list prices and that’s why the list price should only be used as a guide, not the written word of God. Unfortunately when a customer calls around parts houses or the dealer, they are going to give that customer their list price, which may have an impact on what your price is. BUT, I would NOT change my policy based on the handful of people that may call and question. I know what I need to be profitable and at the same time, competitive. That is a delicate balance. Sometimes I rather sell at very attractive price for some items to move product during a State Inspection or LOF; items like, wipers, air filters, cabin filters, belts, etc. For these items I price them very attractive to increase added on sales. However, if I need to sell an engine mount or fuel injection relay, then those would be sold above list because these items are not price sensitive in the eyes of the customer. I hope I am clearing things up for you. This is a very complicated issue, as you can see. Please let me know if you have any additional questions or thoughts…

Great article... I read the print version over the weekend.

Please keep us updated. I'm sure we can all benifit.

I have feared that this day would come. Look at how the Internet has changed the way people buy cars. People go shopping first on the web, get the best price and then beat up their local dealer. It's the same with hotels and plane tickets. Well, we are next. Just one more thing to have to worry about.

I agree. Many of us can give you our matrix formula. I will do that if you like, just let me know. But it's more important to understand your break-even and overhead costs. Once you know these numbers you can start plugging in and tweaking your matrix. 50% GPM is what many people strive for, understanding that a matrix is a sliding scale. Lower cost part may list a 60-70%. While parts purchased at $400 may only be marked up at 20%. The concept is to get an overall balanced GP of 50%. (If that is the number you determine you need). Hope this help. Please keep the questions coming. I don't know the Tracs system, so I really can't help you with setting up the program.

What a "sense" of humor. l listened to the video a few times!

Free Maintenance is actually built into the price of car, plus the dealer and the car makers know that if you bring in more customers you accomplish a number of things: the chance to up sell, the chance to create a long time customer, the increased channce to sell another car in the future. The marketing works and I don't like it. Xrax is right, how do you compete with free????

Many shop owners struggle when defining the purpose or the mission of their business. If we view our business as one that repairs and services cars, we are not seeing the bigger picture. Our business is defined by the value our customers see in us. Customers never buy products or services, they buy something much more important…they buy the peace of mind and the value you offer through the quality of your work and the level of service you provide. If you want to grow your business; listen to your customer, understand what the customer likes and more important, dislikes. Find out what your customers consider is most valuable about your products and service. Understand your customer and watch your company grow!

More and more new car dealers are jumping on the band wagon and offering free maintenance or a low cost maintenance plan with new car sales and used car sales. When you factor in the longer warranties, an added maintenance plan may keep your customers going back to the dealer for a longer period of time. I do not like leaving things to chance. The new breed of dealers left behind after the economic dust settles will be an aggressive bunch, having the support of the car maker behind them. Should we worry? Should we find a way to compete? Should we wait and see what happens? Like to hear from you…

I searched The US Department of Labor Web site and found the information you need. Here is the link...Good luck! U.S. Department of Labor - Wage and Hour Division (WHD) - Family and Medical Leave Act

This is a tough one. I'm hopping that another member has had to deal with this situtaion before. If not, we need to do some research. I will try to find out and get back to you.

Using a matrix will allow you to reach your overall profit margin. Let me make a suggestion to speak with your accountant. While the industry standard on part percentage profit falls in the range from 46-52 percentages, every business is different. It’s a delicate balance between being profitable and being competitive. Too high and we can price ourselves out of business, too low and the same thing happens. The main concept for a matrix is to sell parts that have a low acquisition cost at a higher list and parts that cost more will be sold at a lower list. Don’t get too caught up with suggested list from the parts house either, it’s just a guide.

We are seeing more and more vehicles that need the steering angle sensor calibrated after an alignment. Luckily my Hunter alignment machine has the ability to perform the calibration. My question is, how are other shops charging or not charging for this? Should this be part of the alignment? Should there be an additional charge. Afterall, the update and future updates are not free. And, it requires additional time to perform the calibration. Thoughts and comments?

When you say it's like the antitheft is preventing it from starting, what exaclty do you mean? What is the car lossing? Fuel? Ignition? Etc? Need a little more info. The only thing that was changed was the oil pump? Is there anything that could have been touched during the process?

I feel the same way. We cannot ignore social media or other forms of technology, especially when you consider that the next generation that will soon be our customers grew up in this technology/computer age.

I have read all those books as well....glad to see that you are an avid reader. That's another sign of leadership!

I know of the Tracs system but I am more familiar with Mitchell. Did you get any training on the program???? I know at first it will be a bit confusing and overwhelming, but in the long run it will pay off, trust me. It sounds like you have issue you need to have your Napa rep handle. Maybe there is an ASO member that uses Tracs???? Sorry I could not have been more help.

We had an Infinity I30 come in last week with cooling fans that would not shut off after they turned on at approximately 204 degrees, coolant temperature. There were no codes stored. This model uses 2 cooling fans with three-stage fan speeds. The car never overheated, but once the fans turned on, they stayed on until the car was shut off and the engine cooled down. We verified the coolant temp of the engine with a scanner; both readings (at the sensor and scanner) were within 5 degrees of each other. We followed the diagnostic flow chart and all looked normal. When we felt the bottom radiator hose, it was not as hot as we thought it should have been. We replaced the thermostat and solved the problem. We got side-tracked a little thinking too deep into this and actually thought we could have a programming issue. It’s the same old rule…check the basics first.

Great jokes, nice to laugh...I am going to show the jokes to my wife...wish me luck!