Joe Marconi

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.

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.

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.

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

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.

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

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.

This past April 25th, 2010 marks the first full year since opening our new facility. As many of you may know, we built an additional 4-bay shop which offers while you wait service and welcome walk-ins. This new shop features basic services, maintenance work, tires, brakes, accessories, oil changes, state inspections and other minor services and repairs. It also serves as a feeder for more complicated work and diagnostic work, which is sent to our existing 6–bay repair facility. This business model, for those shops large enough to accommodate it, is the future. The lessons learned this past year have been both positive and negative. With all the planning we did for the years and months leading up to the opening of our new facility, nothing is like real-life. Our projections and prayers came to be, adding some 60 to 80 more per week to our workload. I still say that a healthy car count equates to opportunity, however control is crucial in effectively managing the increase. First, the successes: The image and look of the brand new facility increased our visibility in the market and made us shine in our community, creating a draw for many first-time customers. Consumers and businesses in the area took notice of our growth; many questioned how we grew in a time when most businesses were feeling the effects of the recession. Our marketing and advertising programs worked and added a steady stream of new customers on a daily basis. Sales increased, car counts went up and the rate of new customers also grew. The new shop was featured in many local publications, which help to brand our new business model. The increase in sales and income is paying the expenses and we are running in the black. A lot of our one-time expenses incurred are being paid down on time and as these expenses get paid in full, will add to our bottom line as profit. Now, some of the failures: The sudden increase in car counts caused workflow issues at times, which resulted in mistakes and comebacks. Our quality control system was not being followed consistently, which added to our problems. Mistakes that should have been noticed slipped past and customer satisfaction slipped also. Our process was and always has been to review all work order before the job is started, maintain communication with the tech during the job and review the work and any up sells with the tech after completion. Also, all vehicles go through a quality control check list before the car is delivered back to the customer. In our effort to maintain the increased workflow, short cuts were taken and quality suffered. Shop morale began to fade and stress among staff members grew more and more apparent. The work conditions in the shop and the demands we were making on everyone were taking their toll which on added to the ever-growing series of problems. Something needed to be done…and fast! Last October I held two strategic meetings, one with the technicians and the other with my service advisors and office personnel. I simply told them not to hold back and tell me was not working, tell me what they don’t like and tell me what we need to change and how. This proved to be a valuable and eye-awaking experience. Out of these meeting came solutions and ideas that allowed us to tweak our processes and get control over the workflow issues. Our main goal: Creating solutions to solve workflow issues, reduce comebacks, improve morale and customer service. So, based on the suggestions and ideas from all staff members, I created a revised work flow process with new scheduling requirements and quality control systems. I held a general meeting with the entire staff and unveiled the new plan. The new plan outlined a more balanced schedule which limited the amount of diagnostic work and big repair jobs for our 6-bay repair shop. This will leave room for up sells and additional work sold from our new facility. We limited the amount of scheduled while-you-wait customers and spread out the work more evenly throughout the week. We gave customers options which were more in line with our schedule. The plan also included the addition of another service advisor, another technician and one more lube/tire tech. The added support staff was the number one concern from both the technicians and service personnel. We rewrote our workflow process to include more safety and quality control checks which made it easier to process the cars and paper work. It took us a full six months to implement the new plan and we stumbled a few times and fully expect to stumble again, but things are definitely better and shop moral is back to where it was. No company can grow and expect to be problem free. You learn more from failure sometimes than from you accomplishments. We pushed the envelope last year and luckily we were able to see the negative effects in time. Growth is a good thing, businesses need to grow. But growth needs to be managed properly and the lessons we have learned will help us to continue to grow. Growth and change are two of the same, and the pain and uncertainty associated with it is what people fear the most. No gain can be accomplished without change and growth, and if we fail at times…. well, that’s ok too.

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?

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.

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.

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

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

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.

' 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.

We pay half.