Joe Marconi

You should not eat the cc fees. How you choose to charge is your choice. For me, I add all my cc fees into my cost of doing business, just like all other expenses. I then know my breakeven, and amortize the cost of all my jobs, just like all other expenses. For me, my opinion, I rather not show the cc added fee on the invoice, so my way, the cc fees are paid for, just spread out over all the invoices the same as all other expenses: Utilities, office supplies, etc. Hope this helps.

While I know that in some states, paying techs on flat rate is not legal, from what I am hearing, there are a number of auto repair shops in states that do allow flat, moving away from flat rate. What are your thoughts on flat rate pay?

Marketing Strategies to Attract and Retain Your Ideal Auto Repair Customers By Joe Marconi I had one main objective when I opened my repair shop in the fall of 1980: Acquire customers. Being a startup, gaining customers, any customers, was essential. Without them, business survival would not be possible. With limited knowledge of marketing, I did what many new companies do, I ran mass advertising promotions in local newspapers offering huge discounts. Did this type of marketing work? Well, that depends on how you define success. I can tell you that It did bring in customers, and a lot of them. But what I found out was that it didn’t bring in enough of the customers I wanted. Even early on in my business career, I wanted to create a company that catered to consumers who appreciated the total car care approach. With coupons in hand, most customers wanted only the discounted offer and nothing more. I remember one particular customer who came in for his discounted oil change that included a free tire rotation. I noticed that his wiper blades were ripped, broken, and digging into the windshield. When I offered to replace them, he shouted, “Don’t touch the wipers, just change the oil, rotate the tires, and let me be on my way!” I quickly learned that while my strategy did attract consumers, marketing to the masses was not going to be the way to grow my young auto repair shop. It’s not that I am against all forms of discounting. I am not. However, the better approach to growing an auto repair shop is to create a business strategy that attracts and retains those customers who are aligned with your business model and culture. In business, attempting to be everything to everyone is not a sustainable strategy. It is far better to narrow your focus, understand your key profile customers, and do all you can to gain more of them. In this article I will outline strategies to identify and market to your ideal customers, and why these strategies will help you achieve long-term success. Why Define Your Profile, Ideal Customer? As mentioned above, trying to be all things to all people is not a business model that works for the long term. If you are a startup company or need to increase car counts quickly, offering discounted services and repairs will fill your bays. And depending on the situation, this may be a viable option. However, in most cases, this should not be a long-term strategy. Kim and Brian Walker, at Shop Marketing Pros, recommend that auto repair shop identify their customer avatar, stating that “The most successful auto repair shop owners have a clear idea who they’re targeting.” Let me ask you a question. What type of customers do you want to work for? Wouldn’t you rather work for those customers who throw their keys on the service counter and say, “Don’t bother calling me, do what you need to do, and I’ll see you at 5 o’clock.” Well, those people are your ideal customers. They trust you, are loyal, and say YES to your service recommendations! Which also makes them your most profitable customers. And let’s not forget that dealing with these ideal customers is a lot less stressful for you and your entire team. Defining Your Profile Customer Defining your profile customer begins with understanding your business model and defining your vision, your mission, and your culture. What are the types of services and repairs you will offer, and the type of vehicles you prefer to work on? Also important is balancing the type of jobs offered to your clientele to ensure that you sell enough profitable work. While we may love what we do, we have a responsibility to be profitable. Knowing your profile customers will help ensure you achieve profitability. Creating the actual profile of your ideal customer will take a little bit more work. Start with what I call the “key droppers.” As mentioned earlier, those are the customers who don’t question your recommendations or your price, and they trust you. They literally drop their car keys on the counter, preapproving the work, basing their decision on earned trust. These customers will give you the foundation to build your customer profile. After that, run a report from your business system identifying your top 100 to 200 customers. Most systems sort this list by revenue per customer. In addition to the dollars spent per customer, what you are looking for is certain common criteria. Those criteria include length of time as a customer, visits per year, type of vehicles, where they live, and the type of repairs and services performed on their vehicles. You will find that your top-profile customers are the ones who follow your service and repair recommendations. Again, it’s the trust factor. For more extensive demographic customer profile building, marketing companies, like Shop Marketing Pros, have tools that can help with this process. After performing your due diligence with the initial list, you will end up with probably 50 to 100 customers that you will define as your key profile ideal customer. The next step is to build your marketing plan. Marketing Strategies to Gain More Profile Customers Once you have your customer profile, do all you can to cater to their needs. Listen to them, speak to them, and find out all about them. Their hobbies, birthdays, community involvement, the local newspapers they read, the local radio station they listen to, and their profession. Also, do they have children and pets? These things are important. Asking a customer about their child or pet, or remembering their birthday, goes a long way in building relationships, a key component in customer retention. But there’s another reason why this is important; and that is, to align your marketing and advertising strategy around your profile customers. Let me give you an example. Let’s say you find out that most of your profile customers are heavily involved in the community, such as fundraisers, or local youth sports activities. You then need to get involved with these local community events. Let your profile customers see that you are a business that cares about the community. Focusing your marketing efforts in areas where your profile customers will notice you will accomplish two things: it will reinforce your brand to your existing customers and will help you attract more of the same like-minded customers. A goldmine opportunity. The Rewards of Building an Auto Repair Shop Model Based on Your Ideal Customers It’s hard to deny the rewards of building a marketing strategy and business model around your profile customers. You’ll save on advertising costs by targeting your ad dollars, rather than using a shotgun approach, marketing to the masses. You will build a stronger and more loyal customer base, improve customer retention, increase sales, and generate higher profits. You will also build a powerful brand. The best part, you will lower the overall stress for your employees. Conclusion If you are an auto shop owner looking for innovative ways to enhance and grow your business, Elite Worldwide can help. At Elite, we have world-class, experienced coaches who understand your business. Our coaches have lived in the trenches and built amazing, successful companies. Elite also has sales and management training, and peer groups that can take you and your business right to the top. No matter where you are in your business career; startup, growth mode, or looking to retire, Elite can guide you and help you achieve your goals and build a more profitable and successful business. About the author – Joe Marconi – With over four decades of industry expertise, Joe is a seasoned professional whose accomplishments include owning and operating one of America’s most successful auto repair companies. A graduate of the Automotive Management Institute, Joe is a recipient of the CARQUEST Excellence Award, served on industry panels, and played a role in developing the ASE Engine Performance Certification test. As a former columnist for Ratchet & Wrench Magazine and co-founder of AutoShopOwner.com, Joe has been a keynote speaker at the Ratchet and Wrench Conference. After selling his automotive company in 2021, Joe now dedicates his time to giving back to the industry as a Top Shop 360 Business Development Coach with Elite Worldwide and serves on the board of directors for the Service Stations Dealers of Great New York. Joe, a Bronx native now residing in Patterson, New York, enjoys family time, community involvement, and pursuits such as tennis, golf, and woodworking. View full article

An extremely important topic! Required podcast for shop owners! As always, thank you Carm for bring important and relevant topics to the forefront!

From what I see, from shop owner friends and clients, 2025 is starting off as a better year than 2024. What are you seeing in your neck of the woods?

Over the weekend I met a 67 year old shop owner who has been in business for 41 years, and still involved in the day to day operations. He added that he has done nothing to plan for his future and his exit. Life can throw us a curve ball at any age, are your properly prepared. I know it sounds a little crazy, but the right time to get you business ready to sell, is when you first go into business. What are you doing to prepare for your exit, sale or if life throws you a curve ball?

Also, please check the laws in your State regarding shop supplies. Thank you.

It is also important to point out that some states have regulations on how to charge for supplies. This may lead to legal issues. As you said, incorporate what you pay for supplies into your cost of doing business, and you will be fine.

Too keep things equal and to show integrity, any immediate family members were run through the business like a regular customer, and I would pay the bill in full. As I grew my business, I had to show honesty, there were too many people in multiple locations that I had to send the right message. Friends and other family members, treated like a regular customer.

Are the any considerations for insurance and liability?

It all comes down to how discounts hurt the bottom line.

Sometimes the shop owner makes decisions based on the greater good for all. It has to be a win for all, and the shop owner. And I agree, "Make your rules and then stand by them totally."

Thanks for the info. I think in your business model, this is a sound strategy!

Let me first say that I hate discounts! The more you understand your numbers, the more you will hate it too. My opinion. BUT, I also know the reality of offering discounts to certain people. Do you offer discounts to employee family members and/or a friend discount?

I am no longer in the business, sold my shop after 41 years. As a coach now with Elite, I can tell you that things are spotty around the country. Many shops have shifted their focus to the customer experience and also being more proactive about getting customers to return for their next service and for any deferred work. That is making a difference. Advertising is tricky these days.

I did the same exact thing. Sometimes we need to take the emotions out of the situation, and do what is right and for the greater good.

Do you think that poor management, which results in low production, is also a problem with shop culture?

Ha! You are not alone. Not to make a cheap plug, but the Elite Fly with the Eagles, does cover recruiting and the hiring process. Plus Elite has many tools to help shop owners. Again, sorry for the cheap plug, but as a former client of Elite and now a business coach with them, it is worth checking out.

I am referring to a company such as Shop Marketing Pros, or TurnKey Marketing, Etc.

A worthwhile goal. Work on those numbers, systems and processes. Work each day on your goal. You will attain it!

I agree with your assessment. While we need to track and improve tech production, I too spent a lot of effort in making sure that we wrote proper estimates, and paid great attention to labor hours per invoice. Great assessment!

When we have low production, the first thing we often point to is the tech. But, is low production the fault of the tech in all cases? As a former shop owner, and now a business coach, I have learned through the years, that it take a team of the right people to attain high production levels. It also take effective service advisor skills, and charging he right labor times. From your experience, what are the main drivers to attain high production levels, and the challenges?

Source: By Joe Marconi - How to Make Price Irrelevant My wife and I recently celebrated our 46th wedding anniversary. While this is truly a noteworthy event, it was our 25 anniversary that I will always consider as one of my most enduring memories. It’s also when I learned a valuable lesson on the difference between price and value. More importantly, how an amazing customer experience can make price fade from our minds. For our 25th wedding anniversary, I wanted to do something special for my wife. She often talked about having dinner at this swanky upscale restaurant. This restaurant was known for its elegant atmosphere, first-rate service, quality food, and also known for its high prices. I was a little hesitant, but believing this would be a great choice, I called the restaurant and booked a reservation. As soon as I entered the parking lot, I knew that this restaurant was different. There were parking lot attendants directing cars right up to the front entrance, where our door were opened for us, and then escorted inside. One of the attendants let me know that after dinner, my car would be brought up to the entrance. We were greeted inside by two women with big friendly smiles. I gave her my name, and she immediately replied, “Yes, Mr. Marconi, 7:00 pm reservation for you and your wife, please follow me.” In less than a minute, a waiter walked over to our table, introduced himself, and then asked us if we were celebrating any special occasion. I told him, “Yes, it’s our 25th wedding anniversary.” The waiter gave us a big smile and said, “Congratulations! May I ask you and your wife’s name? I replied, “Sure, my name is Joe and my wife is April.” He then asked, “Would you like for me to send over our sommelier to discuss our wine list?” I had never heard of a sommelier before, so being a little embarrassed, I simply said, “Sure, that would be great, thank you.” The waiter then said, “I’ll be right back with tonight’s menus.” At this point, I knew that this night was going to cost a small fortune. A few minutes later the waiter returned and handed my wife and me leather-bound menus. At the top of each menu was written in bold letters, “Happy 25th Anniversary April and Joe!” I was stunned! To have the ability to produce a personalized menu in-house, and in a few minutes was simply incredible. After ordering our dinners, the sommelier helped us choose the right bottle of wine. And trust me, it was not cheap. The rest of the night continued to amaze my wife and me. The food, the wine, the dessert, the service, everything was perfect. This restaurant not only lived up to its reputation, they hit it out of the park. You are probably wondering about the cost of dinner. Let’s just say the amount was more than most large families spend on groceries for a week. But, I have to admit, the remarkable experience made the price irrelevant. While dining in a high-class, swanky restaurant may not be the same as going to your auto repair shop, there are things you can do to enhance your customer’s experience. Now to be fair, can we completely make price irrelevant? Not totally. However, a solid strategy with a focus on providing value will help you create solid relationships with your customers and build a more profitable business. In this blog, I will outline proven strategies to help your customers focus on the value you provide, rather than the price of your repairs and services. Hire the Right People Your success is directly dependent on the people you surround yourself with. The foundation of your business starts with who you hire. Look to hire superstars, not just anyone to fill a position. And once you hire great people, your job isn’t over, it just begins. As the leader of your company, you must create an environment where employees feel engaged, are recognized and praised for the work they do, and feel that what they do matters to the success of the company. Additionally, the responsibility of management is to bring out the best in employees by being responsible for their development and their career path. In other words, creating an amazing employee experience will help create an amazing customer experience. Happy employees create happy customers. Identify Your Profile Customer and Build Strong Relationships There is no point in business trying to be all things to all people. A much better strategy is to identify your profile customers, cater to them, retain them, and acquire more of the same type of customers. You know who your profile customers are, they are the ones who throw their keys on the service counter in the morning and say, “No need to call me, I trust you, see you at 5 o’clock.” Do all you can to take care of these customers. Find out everything about them and then build a marketing plan around your ideal customer profile. Ideal customers become brand advocates. They are aligned with your culture, which makes them a lot easier to deal with. They are also your most profitable customers. Build strong relationships with your profile customers. Find out things that are specific to them, such as their birthday, their anniversary date, their favorite sports team, if they have children, their hobbies, and other specific attributes. Make notes in their customer file in your business management program so that every service advisors can recall this specific information and make small talk when the customer arrives. This is powerful. Connecting with customers on a personal level will create life-long loyal customers, and they in turn will refer more of the same like-minded customers. Perhaps the biggest benefit of building strong relationships with profile customers is that they appreciate the recognition and see the value of having their vehicles serviced and repaired by you. This strategy goes a long way in making price less important and puts more focus on the relationship and the experience. Find Ways to Make Your Business Remarkable When the waiter returned and handed my wife and me leather-bound menus that said Happy Anniversary, I was filled with such positive emotions that it still resonates with me to this day. When a business does something remarkable, people don’t forget. In fact, it makes that business stand out from the rest. When a business is like all others, with nothing to differentiate it, that business is not remarkable, which makes it forgettable. Find what makes you remarkable, something unique. But, it has to be something that people care about. In all due respect, performing the best brake job or wheel alignment means nothing to the average consumer. Think about this; I can’t remember the food I had or how it tasted at that swanky restaurant, but I DO remember those leather-bound menus and the incredible way my wife and I were treated! If you truly want to make your business remarkable, make the customer experience something they cannot get from your competition. Also, follow up with customers on a personal level, not just with texts and emails. When you make your auto repair shop remarkable, people will take notice. Everything you do for the customer must focus on value. When customers see the value you bring, the price starts to become irrelevant. Conclusion At Elite we understand the challenges and the obstacles you encounter every day. We also know how rewarding and profitable your business can become. If you are a shop owner looking for innovative ways to enhance and grow your business, Elite Worldwide can help. We have world-class, experienced coaches who understand your business. We also have sales and management training, and peer groups that can take your business right to the top. No matter where you are in your business career; startup, growth mode, or looking to retire, Elite will guide you and help you achieve your goals and build a more profitable and successful company!

Years back, we did very little advertising. Fast forward to today, and we are seeing more and more auto repair shops using a marketing company. Are you using a marketing company to help with advertising and marketing? How is that going? And what are the advantages?