Joe Marconi

My plan involves rewarding those who deserve to be rewarded. It also involves training and one-on-one employee meetings. A process that demands its employees to follow a system, will not work. Your employees must see the importance of the plan and how it will benefit them, the company and the customers.

Our bonus plan was more of evolutionary process. We tweaked the plan for a period of years and still make changes. When your people see the benefits, they will buy into it.

The most important thing I have found is that the employee needs to know what his/her minimum level of expected performance is. Also, every employee goes home with a guaranteed pay amount. It’s the opportunity to earn more income that makes the difference. Tracking productivity and rewarding people for great work will help to insure the success of your company.

I think you speak for many of us. In an effort to be the best we can be, we hire the best, offer great pay, purchase the best equipment and enroll in continuous training. All this eats into our profits. I am not saying that we should change our business models. I am saying that with the ways things are today, we need to increase car counts in order to have the opportunity to sell more work. Business is different today, but too many are running their business as if it were 1975. And the national accounts and mass merchandisers are destroying the market by advertising cheap prices.

We can have it both ways. We can’t expect to attract the best people, pay them a decent wage, pay for training, invest in the best equipment and not charge for what we are worth.

I think the only way to stay in the game IS to remain profitable. I do agree that many "price sensitive" services must be priced accordingly. We are too often judged on the prices of the basic services we offer. However, in other areas the boxing gloves come off, such as diagnostic work, electrical, engine repair, transmission repairs, etc. In these areas we need to charge what we are worth.

I have this fear that if we focus too much on price to the consumer, they will loose site of the value we have to offer them. I rather be a Ruth Chris Steak House than a McDonalds.

But, that’s me.

I fear price wars. Has this become a trend in our industry to stay alive?

We don't have that type of market. Our market is residential, home owners, with kids, who rely on their cars for everyday use and to commute to work. For us is great.

What should shops do to stay ahead of the curve? In your opinion.

A question for everyone. We are charging extra for tires with TPMS when we replace the valve kits. Is anyone charging extra labor on cars and trucks with TPMS as a general rule.

I urge all memebers to check out the download section. More download forms and checklists will be added. If you have suggestions please let us know.

Joe

I am in line with your thinking. We need to position ourselves with lost leaders to attract customers. We also need to be very profitable where we need to be. I think we could do a lot better if we charge what we deserve with respect to diagnostic work. We tend to give away too much in that area. What are your thoughts?

With the cost of fuel and everything associated with it, are you planning to raise prices this year? You need to remain profitable, but you need to remain competitive also. The fine line between profit and chasing people away is a tough line to cross. How are you handling the current economic conditions?

You do need to promote it be successful. It’s also great PR for your community. Last year we tied the campaign around a fundraiser for the local MDA chapter. That worked quite well. Promoting maintenance and making people aware of preventive maintenance is always a plus.

Great to have you onboard. Looking forward to networking with you. There's a lot of history behind your business, that's good to hear!

Joe

One thing to remember: all the fancy marketing in the world means nothing if the service at the counter and on the phone is lousy. Sometimes it's not because advertising is not working, it's because the service is not up to par. Successful Marketing is about having your entire company offering the best service and quality and being inline with your marketing messages.

Wise words. I think too many of us are so caught up in the day-to-day operations we often don't have time to stop and smell the roses.

I still am a firm believer that we need to identify who are customers are and concentrate on providing the best service we can. We need to have a plan. When the economy turns around (and it will) we will be in a better position if we strengthen our market base now.

Yes, let me know.

We started a policy the start of Jan 2007 that we would try to accommodate our customers better on their terms. In prior years we were strict about dictating our schedule. We did not bend. We found that many people were going to quick lubes for oil changes and the quick lubes were getting a lot of the gravy maintenance work. Since we implemented our new policy we have increased our sales, car count and ARO. We found that doing while you wait LOF’s also gave us the opportunity to sell high profit services like; air filters, cabin filters, batteries, wipers, brake work and many other services/flushes. We now have worked into our schedule assigned “wait” times throughout the day. This has been a real winner for us.

We have six bays; it may be hard for smaller shops to take on this practice. But, I think the key thing to remember is the consumer and their needs.

Tom, the overall indiacators in my area are not that great. But I'm not sure if it's due to the economy or to the changing industry. Too many shop owners area learning that the tools needed to run a business are not found in your tool box.

I agree with you, many shop will find it tough the next few years. But like my father always told me, " what does not kill you, makes you stronger"

I think you are on the right track Steve. To what market are we trying to attract? The better shops need to postition themselves as pros, not just average. What will set us apart will be the level of service we offer and all the items you mentioned.

However, many shop see declining car counts and start to panic.

The business is changing and we need to understand what the customer wants and give it to them, but remain profitable. Do more of what is profitable.

Where do you see our industry headed? What types of services and repairs will we be seeing in the future?

Based on what you see, what does the typical shop need to do in order to saty alive? You mentioned tracking ket numbers and watching costs. In the end, a shop needs income, whcich is driven by sales.

Your thoughts?

Wow! I didn’t realize how bad things were in your part of the country. I guess tough times turn you into a fighter. I am happy to see things are on the up swing.

I agree with you that many parts of the country are in the same boat, and it will take innovative moves to stay alive in the future.

Is there a light at the end of the tunnel? Or is the light another train coming our way?

PS: No thanks to the invitation...I have my own set of problems!

Tom, I totally agree with that once labor time is lost, it’s lost forever, and that selling something is better than selling nothing. But, are you setting the stage for the constant “let’s make a deal" atmosphere? Survival is one thing, but is this what has happened to our industry? Are there any ways to increase business? Or has the business changed that much?

Trust me…I am not judging. I am asking questions. More and more shop owners feel the same way you do.

So you sell a job with 2/24, at higher price? How do you structure your pricing?

Great idea! Let's do it!

We are similar in our approach. The plan is a bit involved but I will summarize:

- “A” rated techs must book 1 hour of labor for every 1 hour they work (100% productive). They get a set hourly wage and a bonus for booking over 100%

- “B: rated techs, same as above, except they must reach 90% productivity

- Service advisors and managers are paid salary. They must reach sales goals based on break-even and last year sales. They get a percentage of the increase over that goal.

- We also team sales goals where all employees get a bonus if sales reach a second, higher sales goal.