Joe Marconi

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.

What type of programs are you running now? What is your mix of tires vs repairs and maintenance?

I strongly believe in incentive programs. People who work hard and produce should be rewarded. We set productivity goals for out techs, sales goals for our service advisors and team bonuses to create an atmosphere of teamwork and for morale. Every company needs to have goals in order to grow. A company that does not have goals does not grow and falls behind. Do you have any ideas you want to bounce around?

Yes, we do. It's a great way to get people educated on the need for preventive maintenance. We usually set up time (on a Sat) to inspect cars at no charge. We usually tie it to a Fund Raiser. Last year we raised money for the local MDA. It'sgreat PR.

As part of TECH-NET we warranty our work nationwide, parts/labor for 12,000 miles/12 months. Sonsio is the company that pays the claims. It works well and it gives cusotmers peace of mind for those that do a lot of traveling. The warranty applies to customers who travel farther than 25 miles from your shop. Without TECH-NET there would be a monthly fee for the program, but it's part of the yearly enrollment fee.

Steve, do you wish to continue the conversation?

Great to have all new members aboard. The inner power of our industry is what we need to bring to the surface. The independent shop owners are in a real dogfight. The service and repair pie keeps getting smaller. The good news is that we still hold the market share and we still are the preferred choice of the motoring public. But, we cannot rest on what we have, but find ways to increase our market share.

I believe you should use a warranty program as a way to promote your business. Many shop owners take care of their customers well beyond the posted warranty period. It’s just good business. We went to 2 year, 24,000-mile warranty about 3 years ago and now considering 3 years, 36,000 miles on selected items that we know have a low failure rate. You need to ask yourself, what competitive advantages do you have? A sound warranty program can go a long way in promoting consumer confidence. We are a TECH-NET facility with a great nation-wide program. Again the key is to promote. You also need to track warranty and make sure that you factor in the cost of the program if you are to do it internally. PS: How do you like the NAPA program?

That's a great concept, but don't you feel that most people will not tell you unless they are asked? We need to constantly ask the customer what matters to them. We must also find out what is not working. Communication is vital. It's the cusotmer who walks away angry and never returns that hurts the most. We may never know why they left.