Joe Marconi

My fear is that we has independents may not be able to compete in the market because we not perceived as a convenient has your tire stores and national chains. I don’t have the answer, but I do know that when I started a while-you-wait policy and took in customers without appointments, my car counts went up. And Saturdays have become a premiere day for us.

But, this is my decision and it works for me. Every shop owner must decide for themselves what it the right thing for their business.

I think you hit on a great point. I too value family and time off. That's why we work so hard.

If the burden to work 6 days a week is on your shoulders, it will not work. We have adopted a rotation schedule so everyone has time off. I don't want to work 6 days a week, and I don't expect my people to do it either. But, I firmly believe that we need to be there for our customers.

We are open Mon thru Fri 5-6 and Sat 8-3.

Your thoughts?

Is your competetion open Saturdays? What are your reasons for not being open? Just wondering. I see you have 2 late nights. I'm just trying to get a handle on where the industry is headed. All major national chains are open Sat, many are open on Sundays.

I can't help thinking that the motoring public wants the choice of weekend hours. They are too busy durning the week.

Welcome to AutoShopOwner.com and best of luck. You are in a great position to start an auto business today. Read my blog when you get a chance on my expansion. I have been in business for almost 30 years, and there are many other shop owners out there who are willing to help you. So post any question you may have.

Joe Marconi

AutoShopOwner.com

Osceola Garage

Studies have shown that Thursady night would be the best day to have a late night. It depends on your local community. If your shop is in a business district, where people commute away back home, then late nights and Saturdays may not work.

But, being there when the customers needs you, is top priority.

The older I get the more valuable time and family become. We need to find happiness within our own world. Our business should be there to support that happiness. Too many shop owners have businesses that are the source of their stress. This can damaging.

I'm curious too, how's things going?

Thanks for the vedios! This is great information!

I'm not a fisherman, but do enjoy going out once in a while. It's great you make time for fishing. That's important. It's not all about business. It's about the quality of life.

Thanks. This a big move in these economic times. It will take time to take off but I must have faith in what I'm doing.

You are so right!! And I am happy to hear you say that. I have attended many seminars, from a variety of companies, nothing replacing “real-life experience” as your primary teacher. However, many shop owners get stuck in the day-to-day operations and never grow their businesses. Many are unhappy and unfulfilled.

As you say, shop owners have a wealth of knowledge, but still may lack the ability or know-how to go to the next level.

I encourage you to post your ideas, comments or questions. With your background, it will be very valuable to all! I like your theme: "What I learned going backwards".

By the way, did you get a chance to see my blog? It’s all about my expanding the business.

Joe

Keith,

Great to hear from you, old friend. It's an honor to have you onboard and thanks for the compliment. Coming from you, it means a lot. I try to bring real-life information based on my 30+ years in the business.

Let's keep in touch, Joe

I agree, I just think that in this economy, the little ad-on sales can go a long way at improving one's bottom line. I know many shops that spend countless hours diagnosing a check engine light, and never speak to the customer about service work. Some shop owners never even check the car out for service items.

I know you can't sell everything, but if you never tell, you'll never sell.

With 2 months to go before we launch our expansion, things are little hectic. So much to do and so little time left. You can read about it in Joe’s Blog. It traces all the steps in detail: From the conception of the idea to putting the first shovel in the ground. Join me as I complete this project.

Joe Marconi

Thanks, it's a different strategy, but one I think will pull us through this economic mess.

Spread the word about AutoShopOwner and I promise to keep giving you more ideas to help your business.

Joe Marconi

Raising your labor rate and trying to increase your average ticket dollar amount in an effort to increase income may not be the way to financial stability. In fact, it might just make you fail! Before you send for the men in white coats and call me crazy, please have an open mind and read on.

Like many of you, I once shared the belief that a high labor rate, quality work, high-ticket averages, and superior customer service was the business strategy to create a successful repair shop. I also believed that the customers should never control the flow of work in my bays by dictating to me when they need service and that I should carefully plan out the day. There was also a time when I would refuse a walk-in for an oil change because I had too much work in the bays. Well, I’m here today to tell you that for me, this strategy is dead. It died along with the carburetor, points and condenser. The quality of your work and providing great customer service still holds true, but in today’s world, it’s not enough.

Look around at the world today. Has anything changed? You bet! We live in a fast pace world where people balance work, family, fun, Church, and other obligations. Both Mom and Dad have careers and are running from ballet to baseball. The media has been drumming into our head for the past thirty years that great service is getting what you want now and fast. Why do people today value their time so much? Because they have so little of it.

So, here’s the scenario. It’s midday, Tuesday, at 2:00pm and Mrs. Smith arrives at your shop unexpectedly with a check engine light on. You politely and professionally tell Mrs. Smith that you would be more than happy to take the car in on Thursday. Now, she’s starts processing in her mind what she needs to do on Thursday: She needs to leave work early to bring her daughter to the dentist at 1:00pm and needs to be back at the office by 4:00 for a meeting, then dinner at 5:30 and the P.T.A at 7:00. “No, Thursday won’t do”, she says. Respectfully, you answer, “how’s next week?”

At this point she gets frustrated and says she will let you know. You just may have lost a customer. You viewed her problem as a check engine light and how you would fit her car into YOUR calendar. She perceived her issue as another way to balance an already demanding schedule.

Now let’s talk about labor rates and average repair order dollar and I will hopefully tie all this together. Concentrating on bigger tickets and labor rates as a way to overcome inadequate car counts and low profit will simply not work. I’m not saying you shouldn’t charge what you are worth. I don’t give anything away in my shop and charge accordingly. But, what I’m more concerned about in today’s market is opportunity. I concentrate on increasing my car counts to give me the opportunity to sell more. Today’s cars are not like those built in the 80’s. You don’t have the highly profitable repair work anymore and cars are more reliable. Also, take a look at what the automakers have taken away from us: Timing belts, plugs wires, fuel filters, distributor caps, rotors, etc. Not to mention long life coolant, transmission fluid and extended oil change intervals.

This means you will need to increase car counts in order to give your shop the opportunity to sell profitable service work. This also means that you will need to be very proactive in managing your customer’s vehicle maintenance. You will need to be very innovative in your approach on maintenance and service and diversify your services to fit a broader range of consumers.

Successful Big-Box stores understand the law of compounding and moving product. Even in these disastrous economic times, Home Depot would rather sell 1,000 cans of paint a week and make $6.00 on a can, then make $10.00 per can and only sell 300. Plus, having that many people coming through their doors buying paint increases sales in other areas, such as paintbrushes, primer, rollers and drop clothes. Again, when you increase the number of customers, you increase the opportunity to sell more products. This is the law of compounding sales through opportunity.

Before you go lowering your prices, STOP. Most of us sell at a fair price already. What I’m suggesting is that when you increase car counts you give yourself more opportunity to move product: such as air filters, cabin filter, batteries, wipers and other items. Plus, you are working on building a customer base that will more likely return in the future because your willingness to work around their schedule.

You may have loyal customers, but if you’re not perceived as convenient and not willing to accommodate them when they need you, you may not be capitalizing on your potential to fully satisfy a customer.

How do you increase traffic to your bays? Say yes as much as possible. Be more accommodating. Try to work around your customer’s schedule, not yours. Be more flexible. Your daily planner is not written in stone. Promote while-you-wait service. I don’t understand why so many shops distain the idea of people waiting for service. We now welcome walk-ins and promote while-you-wait service. It’s a goal mine of opportunity. Remember; opportunity equals profit.

I am selling my Branick Wall Mounted strut tool. Anyone interested, make me an offer. I paid about $650.00 for it when it was new.

I need help with this one too.

We recenlty bought the launch, it's ok, but does not do it all. The problem is you need many scans tools to get the job done. We are independents and work on a variety of cars. We can specialize. We also have the snap-on, I pro, Master Tech, Ford scan tool, BDM and a few other I can't remember. And it's not enough!

It is getting touch out there. Just be careful and not get into a price war. Also, it may hard to raise prices once the economy comes around. Instead of heavy discounting we are giving customers options. Talk with your customer; see what their budget is.

I had a customer the other tell me that my 90k service was $100 more than the dealer. When we compared the dealer 90k to mine, the dealer wasn’t going to do all the things we were going to. But, I listened and gave the customer the option to do those service items only, so as not to loose the job.

Also offer value packages instead of discounting. We have a mid-winter promo for $69.95, which includes an oil change, tire rotation, BG fuel and oil additive and a safety check. It works well, the customer gets a lot of benefit, feels good and we maintain our profit margins.

My fear is that we will feed into the fear of the consumers.

Congratulations Brad! There could not be a better time to get into the auto service business. I wish you the best of luck. It will be a long hard road but well worth it. After 29 years in business I still enjoy it.

One word of advice, work ON your business. I know in the beginning you are going to wear all the hats, but to grow you will need to let go of the daily operations, hire people and market the business.

Please feel free to post any questions, ideas or comments. We will help you with your progress.

Good luck

Joe Marconi

Great idea, thanks

You make great points. I don't think that a shop has to become part of franchise. But, while studying how to grow my business I looked at the franchise business design and a lot of their basic business principles work.

Franchises promote an atmosphere where people are more apt to buy. There is something to be said about a clean, flashy environment. Franchises have a business plan; they practice consistency and do a lot of marketing. Our industry could learn a few lessons from them.

I got them too, works great

In tough economic time people get picking and frustrated easily. Don’t loose a customer over an overlooked service item or a grease spot on someone’s seat.

Create a checklist where every aspect of the job is completed and reviewed.

You can also go to the download section of AutoShopOwner and download some of these checklists.

Make this year the year to look to add more services to your sales arsenal and increase your marketing strategies. Be innovative.

Here are few suggestions, let’s hear from other shop owners and add to this list:

• Create a lube bay and offer while you wait service.
  
• Purchase flush machines
  
• Start doing detailing work
  
• Consider buying an alignment machine
  
• Sell a few used cars
  
• Offer a late night for service work
  
• Carefully consider opening Saturdays
  
• Solicit to other shops and body shops for work they don’t perform.
  

Let’s add to this list and make 2009 an banner year!