Joe Marconi

Has it become more of an issue with the economy the way it is lately or do things seem better???

Jake, have you any issues once the car is in the shop about pricing in this economy??

Joe

Thanks to all for the positive response to my expansion. I will update my blog this weekend and as soon I can I will start to post photos. The foundation for the building was completetd last week so there is not much to see at this point, but It might be fun to watch the project unfold.

So stayed tuned for more info and photos

Thanks, Joe

Most shops put their best tech (which is usually the highest paid tech) on tough diagnostic work. Shops also spend tons of money on equipment and education. What this means is that if the labor dollars don’t match the time and investment for that tech to work on a particular diagnostic job, the shop losses big time.

I agree with you that we need to look at the bottom line and not micromanage our business. But, as we see more and more hi-tech systems enter our shops, we will no doubt see an increase in labor time devoted to hi-tech analysis. Much of the profitable work we did 20 years ago is no longer required on the modern automobile and shops find it hard to fill the bays. Times are changing.

I believe that if the customer is approached correctly, you can get paid a decent price for diagnostic work. We are becoming specialists and need to be compensated for that.

For years we have used aftermarket cats with no problems. We recently had an issue with a Honda. The vehcile came back with the same cat eff code. After a bulletin search we found Honda had an updated cat for this car. I am not saying go to the dealer as your first choice, but only suggesting that you do a bulletin search on any diagnostic work.

The dealer cat solved the problem.

Shops need to get paid for diagnostic time. Why is it that I speak to so many shop owners who have a fear charging for what they are worth? If I hear one more time that it only took his tech 20 minutes to diagnose a faulty O2 sensor or if the customer agrees to the repair they remove the analysis charge, I just may shoot someone!

Shop owners have NO problem selling 1.2 hrs for replacing front brake pads and rotors on a Honda Civic which takes most techs about 15 minutes, but struggle with charging diagnostic time???? What about all the years of training, cost of diagnostic tools, updates, Alldata, Mitchell, IATN, Identifix, Factory web sites, etc. Factor those costs into your analysis time and you’ll see it’s not just the 20 minutes it took to find the faulty O2, but years of training and ten’s of thousands of dollars of investment.

Who among fellow shop owners is as frustrated over this as I am?

I started my blog last week, Joe's Blog. It was suggested to me that I share my experience of constructing a new building, which will add 4 bays to our existing 6. I will outline the entire process, starting from 2 years ago when I first had this vision to expand. We broke ground just last month. The events and struggles were a real eye-opener for me and I hope you get both enjoyment and valuable information from reading about my project.

Please join me while I re-create the journey from conception to construction.

Joe

I appreciate the input.

I have no issues when the vehicle is in the shop for service. We have no problems with that. What concerns me is giving prices over the phone before I see the car. It may seem straight forward at times, but I would still like to see the vehicle.

I guess for certain jobs with regular customers, it should not be an issue.

Agree? Or not?

I guess I am a little gun shy about giving price over the phone. How many times have you given a price on a particular service only to find the car need additional work, like front brakes or tires?

Joe

My 2 cents worth of marketing for today:

Market today for A/C work. Don't wait for customers to tell you their A/C is not working. Br proactive and ask customers if they want the A/C checked. Perform a simple visual inspection on every car and turn the A/C on every car before it enters the bay. Be proactive, be profitable!

My 2 cents worth of marketing for today:

Market today for A/C work. Don't wait for customers to tell you their A/C is not working. Br proactive and ask customers if they want the A/C checked. Perform a simple visual inspection on every car and turn the A/C on every car before it enters the bay. Be proactive, be profitable!

Don't you think that we cannot rely on just on source of information anymore?

We have been using Identifix for about 2 years now. I think it is another valuable source of information. Today, you can't rely on just one source. We have Mitchell, Alldata, IATN and Identifix. It's a lot! The key is to sell enough diag time to pay for everything.

Hope this helps

With the rise in the price of gas and food I am finding that my customers are unusually cranky. No doubt they are concerned, but are they blowing things out of proportion or are their concerns justified? I think we need to be positive and not feed more negative thoughts about this economic climate. What have you seen with your customers?

Yes, we have been using it for about 2 years. In today's world you need more than one information resource. We have Mitchell, Alldata, IATN, Identifix and will also log onto OE sites if needed. Information saves time and makes money.

Spring is in the air and people are usually in better buying moods. What spring promotions have you done that were successful in the past and what are your marketing plans for this spring season?

Great comments! Did you know that the main reason why people do not return to a business is because they feel that the business does not care about them. Get to know your customers. Treat them like family.

Is it too much to ask to smile????

Outstanding customer service will grow your business faster than anything else. Your customers may not know what ASE is, or a Hunter Alignment Machine. BUT they do know when they have been misstreated.

First things first. It’s difficult to analyze another business when you don’t have all the facts. But after reading your posts, it appears to me that you have an above average shop and that you are dedicated to the success of your business.

With that said, I think you know what the problem is already. It’s car counts. Have they been decreasing or steady? That’s important. You need to find out what’s happening in your area. I speak to many shop owners around the country and the main concern seems to be car counts. You need to find ways to increase your traffic. Do you sell tires? Offer while you wait service? Open Saturdays? Offer late nights? Is your advertising reaching the right people? Do you have a program that offers a complete line of services? Are your service people doing an outstanding job at the counter and on the phone?

The answers to your business must come from your analysis of your business. Focus on what works and what is most profitable. Find ways to increase what is most profitable.

Let’s keep the dialogue going and I hope other join in.

One More thing: Remain Positive! Remember, if you’re negative, you will bring negative things into your life. If you focus on the positive and tell yourself today I will find one more way to attain my goal, it will happen

BRAVO! I agree with you %100. I take the same approach.

A year and a half ago we started a new program called: “Just Say Yes”. When a customer calls, we find out when he wants to bring the car in and we book that time. This program has increased our car counts dramatically, without sacrificing productivity or quality. It works!

The problem with these management companies is that their principles are outdated. They are living in the past. Look at all your national chains. They are all car care centers, open all week long, including Saturdays and even Sundays.

We live in a fast paced world. People do not want to wait. We need to listen to our customers and find what THEY want.

I think those management companies can take a few lessons from you.

I have attended the same class and countless seminars like those. First, let me tell…it’s not that cut and dry as when it’s explained in those seminars. And I don’t care who is giving them.

The problem is that EVERY shop is different in the way they pay their techs, expenses, overhead, etc. For example if you just purchased a new alignment machine and built a new building, your expenses are going to be dramatically differently from a shop that has no mortgage and no outstanding loans. To generalize numbers can be misleading. Plus, you don't pay your bills with %, you pay them with profit dollars!

You sound like you have a good handle on your business. Your ARO is great. I would not consider cutting staff or cutting benefits. That’s a sign of retreating and that can be bad for morale.

You are probably going through the same thing that many shops are going through right now, my shop included. Our fixed expenses are increasing a bit faster than our sales income. Find what is most profitable and do more of those things. Increase car counts to increase your opportunity to sell more profitable service work. Make sure you get compensated for diagnostic work and look for ways to become more efficient and productive.

I would do these things before I consider raising prices.

Hang in there. You also sound like a leader. Trust in yourslelf and find ways to improve!

The key to a successful event is in the promoting. Send flyers to you customers and local businesses. Contact the local newspapers, local cable company and radio stations. Ask them if they would give you media spots as a public service.

You might want to tie the event around a fundraiser. This is great PR.

Good luck!

Welcome! It's a pleasure to have you on board. For me, it's been 27 years in business. Take from me, in today’s business world we need to network. As we share ideas and experiences we become stronger. With all the knowledge out there it makes perfect sense to align shop owners in a common cause. Thank you again and looking forward to exchanging ideas and opinions.

Service advisors are the key people in your company. You can have the best techs in the world and it won’t matter if your service people are not providing outstanding service. I see too many service advisors with no enthusiasm and have feelings of indifference towards customers.

You want your business to fail, hire bad service advisors.

Some people say car counts are not a problem if you average repair order dollar amount is high. Some say you need high car counts to have the opportunity to sell more hi-profit service and maintenance work. I agree with that. I like healthy car counts. I want to know that large masses of customers seek my service. What's your opinion?