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Joe Marconi
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Everything posted by Joe Marconi
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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….
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Email from a regular customer...
Joe Marconi replied to Gonzo's topic in Customer Experience & Reviews
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. -
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.
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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.
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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".
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I love that joke. I actually told it to a doctor friend of mine.
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Parts mark-up and advertising
Joe Marconi replied to boydsauto's topic in Marketing, Advertising, & Promoting
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. -
I'm back from Vacation! Did you miss me?
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
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! -
The Best Service, The Best Quality and The Best Automotive Car Care Finding the right Automotive Car Care Service Center that gives you quality and cares about you and your vehicle at affordable prices today just got easier. With more than 29 years of experience and a highly ASE trained, service focused staff is what Osceola Garage presents in Putnam and Northern Westchester County. We service the surrounding towns of: Mahopac, Baldwin Place, Somers, Yorktown, Jefferson Valley, Carmel, Brewster. We represent and strive for 100% customer satisfaction in quality and service and are dedicated to our customers in providing quality service to you and your vehicle. Whether you require a simple oil change or an engine repair Osceola Garage is there for you in helping you keep your vehicle in tip top running condition. We offer a wide range of services along with our Lifetime Protection, and Saftrack plans and Roadside Assistance Plans.
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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.
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Can you give us details on how it is helping you?
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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.
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As AutoShopOwner.com begins its third year, we would like to take time to thank the contributions from all its members. You have made this website the “go-to” website and forum, for the automotive service business. AutoShopOwner.com was created as an automotive management network of shop owners and affiliates to share and exchange ideas and opinions. It is our belief that together we can make a positive difference in the auto service business. The forum topics have been great and the dialogue priceless. It is truly amazing how much knowledge there is among us. AutoShopOwner.com has proven to be a viable medium where shop owners around the world can come to ask questions, gripe about issues, and help their fellow colleagues. New enhancements already made to AutoShopOwner.com for 2010: • We’ve revamped the site for easier use and increased the services offered within the community. • New Reputation system – Posts can now be rated, earning the author reputation points which can be highlighted with titles and badges. • New Personal Conversations – Users can now create private topics, accessible only to themselves and anyone else they choose to invite. (replaces the default message system) • New Mini Profile Popup – Wherever you see on your board (which is just about everywhere a member name appears), it can be clicked for a handy mini-profile popup. Send a PM, check reputation or find posts – without needing to leave the current page. • New Social Network Icons – Social network icons added to the top of posts, to easily add content to your favorite network. • New Live Chat – Integrated new live chat system • Blog section Updated – various new blogging features • Photo Gallery Section Updated – various new photo features • Downloads section Updated – Layout and operation updated • New “Who visited today” section – Added a section that shows who visited the forum today. Located on the main page of the forum, at the bottom of the page • New Text Editor added • New – Log in with your Facebook or OpenId account! • Synchronize FaceBook Account- Added the ability to sync your FB account to AutoShopOwner.com. • New Status Updates – Add “what’s on your mind” to show on the forum home page and in your profile • New Forum main page layout – new block additions, recent topics, etc. Right column can be closed or opened. • Event Calendar Updated – new features added. Add any events easier. • New Main Menu – Added new drop down main menu. Planned enhancements to AutoShopOwner.com for 2010: • Increase checklists and downloads for Premium Members • Create more extensive business tips and management information • New Articles section • Member Locator • Twitter Integration • More to come…. Another goal this year is to increase membership in order to boost the AutoShopOwner.com experience. You can help. Spread the word to fellow shop owners. Forward the monthly newsletter to other shops, industry associations, and colleagues. If you belong to an automotive trade group, talk about the benefits of joining AutoShopOwner.com. As you can see, AutoShopOwner.com is dedicated to you, its members. However, the strength of AutoShopOwner.com lies in its members and the interaction within the forums. The more people that use the services, the stronger the site will become. This will benefit everyone. Help us spread the word about AutoShopOwner.com. We also welcome your comments and suggestions. Remember, together we can make a difference. -
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...
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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!!!!
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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.
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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.
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Great, Great information! It amazes me the amount of useful information we can all share in. The power the these forums is very exciting!
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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".
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I agree, to offer a cheap oil change to lure people in will on bring the wrong type of customer; unless, you build your business as a discounter and cater to that type of consumer. For me, that’s not my business model. We “top off” all fluids at no additional charge. That does not mean if a customer is down 3 quarts of transmission fluid, we give him three quarts. “Top off” means “top off”. To pay for the top offs; we did a study on how much we give away in a year. Then we raised prices on air filters, cabin filters, bulbs and hardware to pay for it; it amounts to pennies when you amortize it across a few product lines. We call it strategy based pricing. We stopped charging supply charges and hazmat fees. People don’t mind spending $300.00 for a brake job, but look at that $2.00 on the bottom of the invoice and start to question it. We did the same thing with supply charges; amortize the yearly income from the supply charge we were making and added a few pennies to a few product lines. The strategy works. Here’s a great program that we started about 10 years ago. We sell prepaid LOF Maintenance coupons. Customer pre-purchases a book of 4 oil change services and gets a discount off the oil changes. The reason this works better is that you are selling to people that are loyal and will become loyal to your company, plus you are guaranteed to get them back at least 4 more times.
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Women's Free Automotive Clinic Osceola Garage
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
Thanks, perfect timing; we are working on our flyer as we speak. Thanks again! -
That's true, we don't get much cash either.
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You have a lot to do in the next few weeks. The "Meet & Greet" is perhaps the most important step with respect to customer service and how you portray your company. Here is the process I go through: (I use the Mitchell program) 1. Each customer is written up detailing all that is requested and a complete interview and review of vehicle history is performed with the customer 2. We generate a repair order or estimate, depending on the customer request 3. We make sure that we get preauthorization of any diagnostic work 4. We make sure we have correct current information; customer address, phone numbers, etc 5. We ask when the customer needs the car and give them a realistic time for completion. We always try to under-promise and over-deliver 6. We keep the customer in the repair/ service process throughout the day 7. For customers waiting we make it a point to get to their cars ASAP 8. We generate a tech sheet and an general inspection form for the tech (these forms can be found in AutoShopowner for premium members) 9. All up sells are explained in detail and the price with the tax is explained to the customer 10. All up sells will be accompanied by an updated tech sheet for the tech with all the additional work and times listed 11. We call the customer when the vehicle is done and set up a delivery time 12. We review the work once again with the customer 13. We complete the transaction, give the customer a paid invoice 14. We have a cash draw, not a cash register. The cash draw is not linked to the Mitchell program. We do not get much cash, mostly credit cards and some checks. The Mitchell keeps tracks of all transactions and will create daily reports for the bookkeeper. With those reports we can balance the day and also report any account receivables. We do not use special paper. The Mitchell program produces and nice professional looking invoice, estimate, tech sheet and repair orders.
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Wow, I feel that I should be paying for this information. I urge every member of AutoShopOwner.com to read this and digest the information in its entirety. This is equivalent to taking a seminar. I appreciate you taking the time and sharing this information with us. It really puts a different and accurate spin on not only the subject of nitrogen but also on marketing. Thank you.
