Joe Marconi

I think you are going to see other big changes in our industry that are contrary to rules that we once held sacred. 10 years ago I would never suggest "while-you-wait, no appointment needed" as a stradegy, but times have changed. Those who embrace change will make it, those who resist will not.

With car counts down we need to take a look at new ways to stimulate work. Now is the time to welcome walk-ins. Bring the customer in. Try to accomdate the customer on their terms. I know it will be tough, but these are tough times. Agree? Disagree?

After weeks of working with a graphic designer and reviewing tons of marketing information, we finally agreed upon the new signage and tag lines for the business. The new logo is redesigned from the old logo and will be more visible from the road. The tag lines are simple and to the point. The colors did not change: red, white and blue. We proudly took our new proposed signage to the Architectural Review Board for approval only to be shot down like a duck on the first day of hunting season. The panel consisted of six people who scrutinized my drawings as if there was a deep, dark, hidden message within my logo. They talked among themselves as if I were not even in the room. The funny thing about it was that the chairman said he had no problems or issue with my signage. It was the rest of the panel that had issues, especially one woman who wanted to change the shape of the signs; which would actually change the logo. I lost my cool for a moment and asked the panel if they gave McDonalds, Starbucks, Dunkin Donuts and K-Mart a hard time about their signs, colors and logos. I went on to explain that logo branding is a key part in marketing and that extensive research goes into logo and signage design. That did not go over well. All I got after my comments were blank stares and an invitation to come back in two weeks. Their concerns were that the signage might not go well with the building design. From the road, the building shows only the customer service area, the work bays face the rear of the property. Maybe they have a point. So now I need to go back and make changes and compromises, but holding to my original logo design. When dealing with town boards, compromises are inevitable. Stay tuned!

The quality shops need to hang in there...and they will. I have been through many cycles in my 35 years in the auto business and this one is BAD. But we will indure and only come out stronger.

Welcome aboard, great to have you part of AutoShopOwner.com. This industry needs a coalition of dedicated people to unite and help increase our impact in the automotive market. It’s a tough economy and with all segments of the auto repair industry fighting for a slice of the auto service pie, it will only get tougher. Looking forward to sharing and exchanging ideas. Joe Marconi www.AutoSopOwner.com www.osceolagarage.com

Like I always said, no one can beat the service you get from the independent shops in this country! Thanks for video.

We have all seen botched automotive repairs by people who were either not qualified or who tried to save money by attempting to do the repair themselves. And in the end it cost more money then it would have originally been because now the job has to be done over or completed correctly. The same holds true when building an addition or new facility. Picking a General Contractor is perhaps one of the more crucial steps if you are going to expand your facility or build another facility from scratch. Unless you have experience in construction or your family is in the construction business, I would not recommend doing it yourself. You need to pick a qualified General Contractor. There are just too many areas that you may not be qualified in. In my case, the general contractor picked up many questionable items during the design stage that would have cost me money down the road. Also, the coordination of all the different contractors is mind-boggling. A good G.C. knows the right contractors and will hand pick the best people for the job. The G.C. gets paid a percentage of the total job, but it’s well worth it. For me, I need to know that the project will be taken care of from start to finish so I can concentrate on building and running my business. My expertise is the automotive business, not the construction business. When choosing a G.C. ask people in your local area about well-known builders. Also, ask your customers. There just might be a G.C. or builder in your own database. Try to stay with a local company. It will be easier to go and see some of the work that the G.C. has done before. Plus a local G.C. knows the area, has dealt with the town before and will be familiar with your local building department, planning board and zoning board members. This makes a huge difference, especially if you live in a small town. As we speak, the framing is started and the property is finally graded and ready for new blacktop. Stay tuned!

SUN ALIGNMENT MACHINE MODEL # EEWA101A INCLUDES 4 HEADS W/MOUNTING CLAMPS TO FIT UP TO 18” WHEELS 14” COLOR MONITOR KEYBOARD PRINTER MOUSE ALL NECESSARY CABLES RACK MOUNTED JACKS FOR EASY USE CALIBRATION BAR STEERING WHEEL LOCK PEDAL LOCK MANUALS INCLUDED CAN BE USED WITH ANY MODEL LIFT All for Only $2,0000 CALL JOE OR BILL FOR MORE DETAILS AT 845-628-7900 Osceola Garage

The comment about management trainers preaching raising prices is true. In an effort to offset poor productivity, many of us were told to raise prices. The reality is that most shops (at least in my area of the country) were 2 or 3 bay shops. With a shop that size, productivity is difficult to increase. Added to the fact that you cannot always be convenient to the customer. If you bays are full in a small shop and a customer walks in for an oil change, you can’t do it. This is bad buisness. I think this trend of maintaining competitive pricing combined with the chronic poor productivity for small shops will make a deadly combination. Small shops will continue to fold. I think larger shops will have an easier time in the future. Their size allows them to be more convenient to the customer. We have a six bay facility and are in the process of adding 4 more bays. We have gone to a “Just say yes” policy. We let the customer tell us when they want to bring their car in, we don’t tell them. This is also contradictory to what we were taught in the past. But for us it has been our salvation.

Tom, I have a problem with this. GP does not always equate to profit dollars. And just because the shop down the block charges $45.00 for an alignment does not mean I need to be in his ballpark. He may not have done the math and arrived at his price because he assumes this should be the price. Getting back to GP. When brake rotors were $50.00 two years and we charged $100.00, we made $50.00. When brake rotors came down to $25.00 and we charged $50.00, we made $25.00 LESS money. But the GP stayed the same. My bills are paid with Dollars not GP. Personally, I focus on each job. You thoughts???

It’s early Monday morning and you watch as a customer rolls into your driveway with the tail pipe hanging and dragging along the ground. The repair? Obvious. Based on years of experience, you or your service advisor begins the mental process of generating an estimate and repair remedy even before the vehicle stops moving. As the customer walks through the door there is an almost mutual agreement that the exhaust needs to be repaired or replaced and that money will exchange hands. After a price is agreed upon, the repair is done and the customer is back on the road. The beauty of this type of repair is that it is tangible and mechanical in nature. Something is broke and the customer can clearly see that. Selling this type of repair is relatively easy. But what happens when a customer arrives and says, “ My check engine light has been on for a few days, but the car runs great.” How do you or how should you proceed? Unlike the dragging tail pipe, this repair is intangible. Your customer may have a tough time understanding that a problem actually exists. This is where many service advisors and shop owners struggle. Unlike the exhaust problem, selling diagnostic testing is not something that is easily accepted by customers when no apparent problems are occurring. Trouble shooting check engine lights can be an unprofitable nightmare if you’re not charging correctly. It is crucial not to give away diagnostic labor. The costs related to solving complicated on-board computer problems are just too high. But in order to sell diagnostic labor you need to understand human emotions. The one emotion you have on your side is that sense of the unknown. The feeling that although nothing is evident, there still may be problem. And even for the untrained eye, the check engine warning light has to mean something. You need to act on this emotion. This is where you knowledge of the on board computer system comes into play. At this point you need to explain in detail the purpose of the check engine light and why the computer system turns on the light to alert the driver. You also need to explain the series of tests that will be performed in order to pinpoint the reason why the computer turned on the check engine light. It’s equally important to inform the customer that even though there may be no noticeable perfromace issues, a problem still exists. Now comes the key part of the process. Sell the diagnostic labor before the car is taken into the bay. After explaining in detail the process from analysis to repair, inform the customer the charge for the diagnostic testing. You need to separate the analysis from the actual repair. Trying to sell the diagnostic charges with the repair after the car has been analyzed will back fire. Be up front with the customer. I have found that a full explanation of the testing process reducing problems later. It also pre-qualifies the customer. If the customer objects paying for diagnostic labor he will also have a hard time accepting paying for the repair. By the way, don’t bother telling the customer what it costs for overhead, technician salary, equipment, tools, rags, information and training. The customer has no interest in what it cost YOU to be in business and cannot relate to this. Their concern is their car; this is where your focus needs to be. Keep the customer in the loop. Inform the customer that after the tests are completed, you will review the test results and be in a better position to explain what repair is needed. Also, if needed you will call first to explain any additional tests and any costs. I am not suggesting that this process will solve all the problems when selling diagnostic labor. It takes well-trained technicians following a comprehensive outline of tests. Plus there are other factors involved; intermittent problems, lack of information, not having the correct scan tool program update, etc. The important thing to remember is that you need to have a plan. Review you current procedure and insure that both you and customer are both being compensated fairly.

Are you saying that many of the good shops will dissapear, which will leave the door open for backyard shops to arise to power all due to the economy????? Isn't this the time where the better shops who know how to plan will win out?

I hate to sound like a broken record…but THIS time I truly believe that only the strong will survive. Shops that are on the fence financially and do not have the business skills to weather this economic storm will not be able to ride it out. Many shops will come out this weakened and battered. Many will be gone.

I recently read a survey in a trade magazine showing the average national price on 4-wheel alignments. The survey contained mostly tire shops. What I surprised (and disappointed) to see was how low priced some shops charged for the average 4-wheel alignment. In some cases as low as $49.99. Don’t we give enough away? We all know that an alignment system with a rack can cost upwards of $50,000. It’s funny, with bodywork, the insurance companies will either pay us a menu price or give us the time from a recognized published labor guide, which for some cars exceed 1.5 hours. Even at a labor rate of $70.00, a labor time of 1.5 is $105.00. Is the alignment service just another commodity doomed to be priced low such as the common oil change?

Thanks for the tip.

A word of thanks for the great info!

There appears to be a push from many franchise institutions such as Midas, Mineke and others urging independents to become franchises. With the economic climate the way it is these days, are there any shop owners out there that may be considering this option?

Tom, as a graduate of AMI I can attest to the fact that this training is vital to the success of the independent shops across the country. Management training often takes second place to technical training. It should be the other way around for shop owners, managers and service advisors. Joe Marconi

Tomorrow is the bank closing for the construction loan. A construction loan is different from a bank loan for property, home or condo. Let’s say you looking to buy a home that sits on an acre of land and the agreed upon price is $500,000. The bank will do its due diligence to determine if this is a sound investment. The bank will also insure that your income qualifies you for that particular loan. With a construction loan such as mine, where I am erecting a 4 bay facility on property that I already own, I go to the bank with a plan. My plan must include projected costs of the project, projected increase in business and details on how I will grow the business. The bank does an analysis to see if the plan makes financial sense. For a construction loan, the bank will need to see detailed estimates from the builder, plumber, electrician, excavator, etc. The bank will also perform an appraisal to determine the value of the property and business at the present time and the projected value after the completion of the project. This is extremely important. If the loan amount you’re asking for is $500,000, the bank will use the property and building as collateral against the $500,000. Another major difference with a construction loan is how the money is disbursed. Let’s go back to the example with the purchase of a home. The bank will lend you the full amount at closing for the home less closing costs and any money you put up. You start paying back the loan with interest usually the following month. With a construction loan, money is disbursed in stages. The bank oversees the project and distributes only the money to pay for the portion of the project that has been completed. So, let’s say the excavator’s work is complete and his bill his $75,000. The bank will release the money to pay that part of the project. You pay only the interest on the portion of the money borrowed. The actual loan (principle and interest) does not begin repayment until the project is complete. This is why it is extremely important to work with the contractors and vendors to get hard figures and calculations. You don’t want to go over budget and be left with less loan money then what you projected. AND, always build in a contingency figure of 10% or 15% to cover unexpected expenses. Believe me, there will most certainly be unexpected expenses. Also remember to factor into the project all the expenses you incurred prior to putting a shovel in the ground; Architect fees, site work, attorney fees, consulting fees, town fees and any other expenses incurred prior to and not including the actual building construction. A word of advice when dealing with contractors and vendors, get everything in writing. Don’t rely on the “good old handshake”. Another piece of advice, when you make a mistake, and you will along this tough process, put it behind you. Mistakes are unavoidable. Stay tuned!

People will no doubt changes their driving habits, but only so far. Most people who live in suburban areas with no mass transit must get to work. They may give up that weekend trip or plan errands better, but they will use their car. Many of my customers have purchased smaller cars and parked their pickups and SUV in the driveway. We also need to be concerned about the winter months. People will adjust their budgets accordingly. People in the northern areas have to eat, keep warm and get to work. They will have to cut some luxuries out of their lives, at least for now.

Miles driven per motorist has been on the decline due to the rise in fuel. Because of this car counts are down across the country. This probably hurts the Goodyear accounts and other similiar stores that rely on a high car count to remain in business.

Not that I am aware. I read in one of the trade magazines that the stores that will be closing are company stores that are just not profitable.

This past week the foundation for the new building was completed and the land is now being graded in preparation for the new blacktop. The process of constructing the walls will start within two weeks. The dream is slowly becoming a reality. Earlier in the week I met with the general contractor, bank project manager, electrician, plumber, architect, excavator, the building inspector, Hunter Alignment rep, Rotary Lift rep, advertising agent, overhead door company and the company that will be installing the bulk oil tanks and pumps. By Thursday night I was shot! I didn’t sleep that night at all. I am now in the phase of the project that you begin to second guess yourself. Did I make the bay sizes correct? Did I pick the right equipment? Did I pick the right people do construct the building? Did I get the best rate for the bank loan? Will I be able to increase the business to repay the loan? Question after question I asked myself into the wee hours of the morning. I was a walking Zombie by Friday. The excavator needed to break up the driveway to run power lines and drains and decided to work through the weekend so as not to disturb my business. This morning, Sunday, I picked up coffee and donuts and brought it down to the crew. There were very thankful. Do you think I am scared? You bet! But I can’t quit now and need to put my faith into the belief that all the preparation to this point will pay off. Did I make mistakes this past year? Tons of mistakes! Mistakes that cost me dearly. But that’s all part of the process. All I can say is, if it were easy everybody would be doing it. Fear keeps people from sometimes achieving their potential. It kept me from growing my business for years until I asked myself what’s the worst that could happen? Actually the worst would be to loose everything, but I don’t think that will happen. After 28 years in business, this is something I need to do and want to do. Stay tuned!

We are seeing more and more Volvos comming to our shop. We have many scanners, including the Launch but find it hard to access all the modules. We heard of the Vedis but would like to hear from Volvo techs out there. Is the Vedis my answer? Or is there another scanner I need to look into. I do not want to turn away work to the dealer. Help would be appreciated. Joe M

What we are going to see (and probalny seeing now) is survial of the fittest. The weak shops will close, they will not be able to compete. This, in the long run, will be good for the shops that remain.