Joe Marconi

There are many areas of the country that are struggling. I think now is the time to make your presence know in the market. Try to increase your advertising and be more convenient to your customers. Be careful with discounting, it may hurt you bottom line and make it harder to increase prices when the economy turns around. Offer value packages like a Summer Promo. Put together a package that includes and oil change service, multipoint inspection and maybe an A/C check. Keep the customer top of mind, they will remember this.

I agree and want to add that in this market, you need to diversify. I'm not saying you can't be successful, as a specialist. But, there is more opportunity when you diversify. You can still have a performance shop, while offering full service to a larger market.

Yes, will post soon. Joe

Welcome aboard! As a business owner for nearly 30 years and a veteran auto tech since 1974, I have seen great changes in this industry. There is great opportunity now, more than ever. But it will take a lot of work and honing your business skill also. Use the forums in AutoShopOwner.com and tap into the brains of shop owners around the country. Joe Marconi

Dan, 8%! That's great news. Six days a week can be draining. That’s why we have added more techs and started a rotation schedule. Also, this keeps overtime down and gives techs much needed time off. We have built such a saturday trade that it would economic suicide to close at this point. Great hearing from you, Joe Marconi

Nancy, Great to her from you. You story sounds a lot like mine. Our customers look for us on Saturdays. Some people tell me it's the way you "Train" your customers. I think they are wrong. We are in a service business. For me I need to open on Saturdays. And, your right...it helps sets up Monday. Thanks! Joe

That's a great point. Start small, build the business and then adjust. Thanks for the response! Joe

During a coffee break at a recent seminar, a heated discussion started on whether a shop should be open for business on Saturdays. Many shop owners were adamant about not working Saturdays, claiming that they work hard enough Monday through Friday and having to work a sixth day would put them over the edge. I asked those shop owners that are closed on Saturdays: “Are you sure you’re not giving up much-needed sales by not being open Saturdays?” One shop owner fired back; “It’s my business, and I will run it the way I see fit”. Let me start by saying that we are all independent business owners and the decisions we make are the ones we alone must live with. That is our right in a free market. And, no one person has all the answers. There are different business models and different ways of doing business. Now having said that let me give you my spin on this debate. Most shop owners don’t want to work Saturdays because they know that their business is solely dependent on them being there. After years of working 6 to 7 days a week, they are tired and can’t see themselves pushing that 6th day anymore. And I don’t blame them. Another reason is that many shops are small, having one to three bays, where the owner is also the main technician. For these shops, adding another day to an already grueling week would be tough. But be honest, tell me you wouldn’t enjoy the extra income from Saturday sales while you’re on the lake fishing? Is your business that financially secure that you couldn’t use extra income? And don’t tell me, it’s not all about money either. I know the reasons why we as shop owners went into business: and those reasons include building our legacy, making a difference in the automotive service world, quality of life and taking care of our families. All those reasons require money. My shop made the decision to open on Saturdays for a variety of reasons. Our shop is located in a suburban area where most people commute to work Monday through Friday and are off on the weekends. There is no mass transit in my area, so just about everyone depends on their car. People in my area are overwhelmed with work and family obligations. Their time is limited and weekends seem to be when they play catch-up on the things they can’t get done during the week. I also found that the facilities that are open, the large tire stores and national chains, are very busy with work on Saturdays. For us, not to be open on Saturdays would not be a good business move. I cannot accept that fact that my customers may need to go somewhere else on a Saturday for a state inspection, oil change, a set of wipers or headlight because I decided to close. We created a rotation work schedule, which allows our technicians and service advisors to rotate Saturdays, so as not to burn anyone out. Technicians will also rotate a day off during the week every other week. We feel this rotation system is fair to all employees and allows us to be there when our customers need us. I suggest taking a look at your business model. Do your customers perceive your business as being convenient? Do you stick to a rigid schedule or are you flexible and take the customer’s needs into consideration? I understand that smaller shops with limited manpower will find it hard to add more hours. But, if you want to grow your business you must be ready to compete and that means you need to carefully consider a much more flexible scheduling system, extended hours and being open on Saturdays. The world has changed and we must accept what is happening around us. Many new car dealers are open Saturdays and some are even open on Sundays. All national chains have weekend hours and many have late night shifts. I don’t think we can ignore the fact that there is a lot of competition out there and that we need to be there for the customer. If we give our customers a reason to go to another facility because they are more convenient, we may lose those customers altogether. There’s been a lot of talk lately about how the new car dealers are hurting and that many more will close in the next few years. This SHOULD bring opportunity our way, but only if we prepare for it. If we think these customers will flood our doors just because we happen to be open for business… think again. Also, be prepared for a new breed of new car dealers and national chain accounts. The “automotive herd” is being thinned out and those that survive will fight to the death for a piece of YOUR pie. The fact remains that we as independents are sitting on the biggest opportunity in the history of automotive service. How will you react to this opportunity? What is your plan to capture the expected explosion of service work? Think about this; is your business ready and able? For me, I will listen to my customer. And if that means being there on Saturdays, evening hours or even on Sunday, so be it. I made the choice to be in business, no one else. I also accept the change in our industry and will do my best to adapt. I have an obligation to be successful and to take care of not only my family but also the families of those employed by my company. So tell me…do you agree or disagree? Challenge me…Please!

We finally opened our brand new 4-bay expansion and things are going great! Read all about it in Joe’s Blog.

Our grand opening was held on Saturday, April 25th. The weather was perfect. Hundreds of people came out to visit our new facility. The affair lasted all-day and ended about 7:30 that evening. All the money spent on prompting the affair was well worth it. A special thanks to CARQUEST Auto Parts, who provided their barbecue wagon, blow-up racecar, tent, banners and other items. It was great to see many customers share in the festivities and we had the chance to meet many new people from the community. We had a local radio station broadcasting a live remote that helped bring many people in and created a lot of excitement in the area. We opened the new 4 bay expansion shop officially on Monday, April 27th. The first week we had an increase of 27% in sales. This bounce in sales is obviously due to the excitement we created with months of promotions. Now we need to maintain the momentum. The best news is that the techs love the new facility. We had a meeting after the first week and everyone said that although we worked on more cars than usual it didn’t seem has hectic. We have total of 10 bays now and 6 techs, leaving bays open for walk-ins and up sells. Also, if a tech is waiting for parts that will not arrive for an hour or so, he can use one of the open bays, rather than putting the car back together. This increases productivity. I will keep this blog open to report on the progress of the new shop. Photos will follow soon too. Stay tuned!

Does anyone use a VIN code scanner. And, if so, does it speed up the write up process. I have Mitchell, and my rep told me it can used with Mitchell. We do 20-30 cars per day and looking for ways to speed up the write up process.

This is interesting. This can hurt us or help us. We can also use this to compare our prices. My fear is that this may start price wars???? Plus, too much cosumer inforamtion without the background of a particular service can be dangerous. And, you cannot always compare apples to apples.

I have a Snap On unit, but miss my Robinair. A/C work can be tricky. We like to sell A/C Maintenance Tune Ups which includes a complete inspection, gauge check, check for leaks, clean vents and disinfect. This service runs $89.95. BUT, we only sell this service on newer cars and only IF the air conditioner is working %100.00. For older cars we like to sell a complete evacuate and recharge with a dye and a follow up leak check for $189.95. AND for all A/C work we inform the customer verbally and state it on the invoice that the system must be inspected periodically for leaks. If a system is low, we cannot warranty any repair, even after we find a leak and repair it. My experience has shown that if it has one leak, its got more.

This is a strange year. Our car counts have gone from an average of 100 per week to 135 per week. And we see more new customers than ever before. The only negative thing I see is that people are more cautious and budget their money. Our over sales are up, but not what we would expect from such an increase in car counts.

I think social networking is here and we need to be a part of it. I also would like to here form other shop owners about social networking.

I have them all; And all BG. Transmission, Power steering, Fuel system, Engine Cleaner, Coolant service, Differential, brake flush, de-carb. If you are performing preventative maintenance you are missing $$$$$$$$$$$$$

Welcome and the best of luck! I think you are getting into this business at the right time. I have been in business for nearly 30 years and have never seen the opportunity that will reveal itself in the next 2 to 5 years. My advice: Start small but always think big. Work ON the business as much as IN the business. Profit on labor and parts will vary depending upon your overhead and what the market will bear. Generally look for a 60% gross profit on labor and a least a 50% overall mark up on parts. Establish a parts matrix. That means for low cost items that cost $10.00, you can charge $25-$35. The higher the cost the lower the mark up: For example; a part costing $500 will generally sell for around $800.00. The idea is to achieve an “overall” 50% gross profit or better. Please forward any other questions… AutoShopOwner.com is here to help!

The need to network is more important now than ever before. With the knowledge we have, there is no issue that we can't solve with the collective help from other shop owners. We need to make our claim now! The new car dealers that survive will be the strongest group of dealers ever. Now is the time to increase our market share. If we miss this opportunity, I fear we will never have another chance. Increase your marketing, training and promote you business by offering the very best in customer care.

Loaner cars can be a huge benefit. The problems are insurance and having enough cars available. If you advertise loaner cars and your car counts are high, you may end up disappointing people when you don’t have a car to give them. This is the problem even dealerships have. We made a deal with a local Enterprise for a good rate. (Approx. $30.00 per day) Enterprise will meet my customer at my shop and handle the entire transaction. For high-ticket jobs, I will give them the rental if it helps to get the job. Are there any rental companies in your area? If so, meet with them a broker a deal. Joe

Right on target. No matter if it's your part or the customer brings it in, you are the Pro and responsible. I agree, build relationships and don't be everything to everybody. Joe

Just remember, for every dollar of labor sold, usually equals a dollar of parts sold. So, when you allow customer to bring in their own parts you are giving up a lot of needed income. Plus, you may be attracting the wrong kind of customers. Remember the old saying...You wouldn't bring a steak to the restaurant and ask the chef to cook it up for you? Would you?

For my business, 35% is just too low. I’m not sure how the people are where you are, but for me, I’m not really concerned if a person knows how much the parts cost. If I go to home depot and buy a faucet for $25.00 and installing myself, that’s my choice. But if I call a plumber to install the same faucet, he will charge a markup on the part and labor. The plumber has overhead and has to insure it. It doesn’t matter at that point if I know how much the faucet cost, does it? One of our responsibilities as business owners is to make a profit and to put away money for the future and for reinvestment into our business. Too many of us give away too much and too many give away their entire career. I try to stay in the range of 50-60% gross profit on parts. I don’t really go by anyone’s list. I know what I need to stay in business, so I charge accordingly. When I sell a job I sell value and benefits and sell the entire job. I don’t focus on parts or on labor, but sell the entire job as one. This is the way I do things and have been doing it for nearly 30 years.

Here are my thoughts… You need to create a parts matrix that allows you make 50-60% gross profit on parts, overall. That means that small items you purchase for around $10.00 you need to sell in the range from $20-$30. Smaller items like hardware or bulbs that cost you under a dollar, you can sell for $4 or more. Items you buy at $50.00, I would sell for a minimum of $110.00. The higher the cost, the less you can charge. If you buy a used rear diff for $500.00 you can’t sell for $1,100, but you can easily sell it for $800.00. The idea is try to get into that 50-60% overall gross profit. You need to track your profit and adjust until you achieve your target goal. Your overhead might be low now, but if you want to grow you will need to charge accordingly. Systems like Mitchell Manager can set this up for you.

Most shop owners were techs that became business owners. The skills for fixing cars are quite different from the skill needed to fix a business. I think all shop owners can benefit from management and finical training. Too many shop owners spend countless hours wearing all the hats of their operation, literally killing themselves. This is due to their lack of business education. Shop owners need to take a few lessons from the franchise world, create a plan, systems and policy. The best run businesses are those that can operate without the owner.

Thanks for the tip. I have the new Wireless Launch as a demo. It seems like a nice tool.