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Joe Marconi

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Blog Entries posted by Joe Marconi

  1. Joe Marconi

    Before You Give Pay Raises, Consider This!

    By Joe Marconi,


    Employee Retention
    It appears that no matter where you go these days, repair shops are looking to hire. However, shop owners also don’t want to lose the people they have now. And many of them are considering giving pay raises as a way to retain employees. This is not a bad idea, especially if your pay plans are outdated and not competitive with the current market. However, before you give out pay raises, there are things to consider.
    First, have you done a complete review of your labor and part profit margins to support the raises?  If you are not sure, consult your accountant or business coach. Increases in wages must be in line with what your company can afford.  Adjustments to prices, labor rates, part margins, and production may be needed to finance those pay increases.
    Another important thing to consider is why employees leave in the first place. While money is a factor, especially with high inflation, it’s not the main reason employees quit their jobs. Most people leave their jobs because they are unhappy with their boss or manager.
    To sum up: before you give out pay raises, make sure your company can support the increase in payroll and, equally important, create a workplace environment that gives your employees reasons to stay.
  2. Joe Marconi
    The summer is in full swing, which means your shop is probably at its busiest. Summer also means it’s vacation season. You’ve probably done a great job scheduling your employee’s vacations, but what about yourself? Are you planning time off too?
    Shop owners are among the hardest-working people on the planet. This is a quality to be admired.  However, everyone needs time away from their businesses to spend with friends and family.
    Balancing work with life is your responsibility to yourself and your family. Your business must never consume your life; it must enrich it. Time goes by too quickly; trust me on this.
    There are also significant advantages to spending time away from your business. You clear your mind of the clutter that occurs from the day-to-day grind, you give your body a chance to recuperate, and most importantly, you’ll build memories with your loved ones.
    When you return to work, you will be more energized, with a fresh outlook on how to move your business forward. Essentially, the right balance between life and work will help you become more effective, making you more successful.
    I’ll leave you with this quote: “No one on their deathbed ever said, I wish I spent more time at work.”
  3. Joe Marconi

    Are Your Employee Pay Plans Legal?

    By Joe Marconi,


    Employee Retention
    As an auto shop owner and a business development coach, I know from experience that there are countless ways to create employee pay plans. From hourly, flat-rate, salary, incentive-based, performance-based, team bonuses, profit sharing, on and on and on. However, the question is: are your pay plans legal? 
    To complicate matters, overtime and minimum wage laws differ from state to state and may vary from county to county within a state.  Wage and hour laws are ever-changing too.  
    Here’s my advice to shop owners: Consider hiring a wage and hour labor attorney or retain a human resource company specializing in wage and hour regulations to review your employee pay plans. You cannot leave it to chance. All it takes is one disgruntle employee to make a claim against you, and your life could be hell.  You should also have your pay plans reviewed every few years and any time you change the details of a plan.
    Effective pay plans can considerably benefit your auto repair shop and incentivize your employees to reach their goals and company goals. In addition, great pay plans can help retain valuable employees.
    Protect yourself, your business, and your employees – Ensure your employee pay plans are compliant with federal, state, and local laws and regulations.
  4. Joe Marconi
    We all know there are times of the year that are better than others and times when business is slower than what you would like it to be. While every company goes through highs and lows, there are things you can do to help keep your bays full all year long.
    One of the best ways to achieve a more consistent car count is to make sure that every customer that leaves your shop today has their next future oil change or factory maintenance appointment booked. Please don’t tell me you have tried this process and it doesn’t work for you; it does work. You can’t get out of your dentist’s chair before booking your next teeth cleaning!
    Let’s face it, the days of the 3,000-mile oil changes are long gone, so if you are waiting for the customer to book their own appointment, good luck with that strategy. You need to be proactive and book the customer’s next service appointment. I would also recommend booking your customer’s next tire rotation, which will be approximately every six months for most customers.
    Here’s the essential component of this strategy:  Make sure all customers you have booked for a future appointment are logged in your calendar. And make sure that each customer receives a phone call or text a week or so before the appointment date; if the customer can’t keep that date, no problem! Simply book another day!
    This isn’t rocket science, but it does take a proactive approach on your part. Start today, and you will reap the benefits of this strategy in no time at all.
    What about electric cars? Well, they need services and repairs too. I will address that in a future blog, so stay tuned!
  5. Joe Marconi
    Herb Kelleher, the co-founder of Southwest Airlines, was once asked, “Who’s more important, your customers or your employees? Thinking back on what his mother had taught him, Kelleher responded, “My mother taught me that your employees come first. If you treat them well, then they treat the customers well, and that means your customers come back and your shareholders are happy."
    Shop owners have been taught that the customer is always right and that their needs supersede all other needs. Anyone in business dealing with people every day knows that this paradigm, in reality, doesn’t always hold up.
    In business, you need customers; without them, you don’t have a business. However, without employees, you don’t have a business either. It’s the old “chicken or the egg” question.  
    Here’s my view on this; I agree with Herb Keller that employees come first.  But I take it one step further. You need a team of superstar employees who share your culture and value the team concept. You need people that love what they do and want to help others.  Then, as their leader, you need to treat your employees well. Why? The way you treat your employees is how they will treat your customers.
  6. Joe Marconi

    Never Apologize for Your Prices

    By Joe Marconi,


    Customers
    Shop owners today understand the challenges of rising costs and inflation.  Without addressing this issue and making the needed adjustment to your margins, the increase in your expenses will end up hurting your bottom line. Adjusting prices, up or down, is a function of being in business and, at times, unavoidable.
    Shop owners often fear that their customers may push back with any price increase. They ask themselves,  “Will my customers understand? Will they shop other auto repair shops to compare my prices?” 
    The truth is your true profile customers are not loyal to you because of the prices you charge for your services and repairs. Yes, you need to be competitive, but you also need to be profitable. Your best customers are loyal because of the value they receive from doing business with you.  Those are the customers you need to focus on and spend most of your energy on.
    If you determine that you need to raise your prices, do it, but never apologize. Continue to build value in what you do. When value increases, price fades as an issue. However, when the customer does not see the value in your services and repairs, the customer will then focus more on the price.
  7. Joe Marconi

    Are Your Employees Looking to Leave You?

    By Joe Marconi,


    Employee Retention
    There’s a lot of talk these days about finding quality employees. Creating a continuous recruiting process to find and hire quality people is essential for your overall success. However, shop owners also need to consider their existing employees and create a work environment where people feel wanted. The truth is you cannot afford to lose the people you have now, especially if those employees are superstars.  Another reality is that with so many shops looking to hire, they may be trying to recruit and hire your employees!      
    To attract and retain employees, shop owners must create an amazing workplace experience. A great pay plan must also be a factor, along with benefits, but it’s not the entire reason why people stay employed with you. The truth is, people don’t quit businesses, they quit their boss or their manager.
    This is not to say that a pay plan is unimportant. It is, especially these days. However, to get your employees truly engaged and want to continue working at your company requires having a workplace environment where people feel appreciated for the work they do, are encouraged, and have a feeling of shared purpose.  This will help anchor your employees to your business and help prevent them from looking over the fence for greener grass.
    Lastly, get more involved with your employees on a personal level. Find out what matters to them.  Find out what their goals are.  When you align employee goals with company goals, you are well on your way to having a winning team. You will also create a strong bond with your employees. This strategy will help you retain employees, with a stronger and more profitable business in the long term.
     
  15. Joe Marconi
    Everyone has their own perception on life and the world around them. This perception becomes reality and it’s the only reality that matters. At least for most. This does not always hold true for shop owners.
     
    As shop owners, we don’t always have the luxury of viewing things from our perceptive. There are other people around us and their families to consider. As the owner, and the leader, our concerns and issues take a backseat to the concerns and issues of others. This is something I know we accept and we do our best everyday to look at things from the perceptive of others.
     
    For me, it’s been 33 years since I put the key in the door of my repair shop for the first time. And I can tell there are times when I feel like it’s the 12th round of a 10 round boxing match.
     
    I am not complaining, mostly because my position does not allow me to complain. Leaders and business owners have to remain strong, positive and put the interest of others before themselves. This is in part what makes a leader a leader; the ability to put one’s interest aside for the greater good of others.
     
    However, this makes it very lonely at times. Leaders must have vision and work to not only improve themselves but improve the lives of others. Leaders also must look to praise and recognize the accomplishments of others.
    Moral building and team spirit become the essential building blocks of any organization. We as shop owners are well aware of this. I am not asking those who are employed to understand all of this. But please, is it too much to ask for just a little consideration and understanding of what WE go through?
     
    I am not going to get into all the petty situations that drive us crazy. It really does not matter. I also realize that the words I am putting on paper will do more good for me, and hopefully for you, reading this. It will not, I am sure, change the way many people think and act who simply go to work each day and expect a pay check at the end of the week.
     
    Ok, that’s off my chest. I feel better. To be honest, things are not that bad. I have a great family, great wife and three amazing children. I have built a company that I am proud of; a business that was only a dream decades ago. I entered this industry as a mechanic and was transformed into an entrepreneur. I have achieved a lot of the years. And I am not done yet. There is still much more to do and will work hard to achieve my goals and aspirations.
     
    Maybe I try too hard. Maybe I judge others by how I was and how I am today. Maybe that’s wrong. Perhaps, I am not the leader I think I am. Leaders must find other potential leaders and cultivate them to become future leaders. Leaders must also be understanding and find the good in others, and not focus on the negative. Maybe I needed to write this tonight to remind myself to stop complaining and get back to work. If something isn’t right, then I should take a long hard look in the mirror. The answer to my problems and questions can be found in the man staring back at me. So, let me get back to work.
     
    Yes, a leader can be real lonely at times. But I would not want it any other way!

     
  16. Joe Marconi
    AutoShopOwner.com is proud to announce it now has over 1000 members! This truly is a milestone and exciting to see how ASO has grown in just a few short years.
     
    AutoShopOwner.com was founded on the concept that there is a wealth of business knowledge among automotive shop owners, and by bringing these shop owners together, great things can happen.
     
    Thanks to its loyal member base, AutoShopOwner.com has exceeded expectations. It is within the forums that shop owners engage in dialogue, communicate ideas, voice opinions and help their fellow shop owner through difficult issues. What ASO also discovered is the dedication and commitment shop owners have to the industry.
     
    AutoShopOwner.com will continue to bring exciting posts, content and information to keep its members up to date with the latest business challenges faced each day. ASO is OUR website. It’s our online voice to collectively work to help raise the image and level of professionalism of the auto service industry. As a fellow shop owner, I am proud and honored to be part of this extraordinary group of business people.
     
    Joe Marconi
    AutoShopOwner.com, Cofounder
  17. Joe Marconi
    A good customer called me the other day to let me know that he has concerns regarding the quality of our work. Last week we installed an exhaust system on his Maxima and two days later it sounded like the muffler had fallen off. There was so much noise he was afraid to drive the car. We went to his house to pick it up. We found that the baffles had broken apart in the brand new muffler we just installed.
     
    About two month ago this same customer had to bring the Maxima back due to a grinding noise from the brakes. We had done front brake pads and rotors a week prior. We replaced the defective pads along with a new set of rotors at no charge and everything was fine, or so we thought. With each incident we did a follow up call to insure that there were no additional issues.
     
    Apparently, these two situations did not sit well with this customer. During his phone call he reminded me that he was a loyal customer and that our customer service is exceptional, always going above and beyond the norm. However, he went on to say, "Exceptional customer service can’t make up for the quality of the repairs." He was very candid and honest. He said he would not “jump ship”, but he has concerns, and that if there are any more quality issues, he will look to go elsewhere. He even mentioned the dealer as an alternative to us.
     
    I did not make any excuses, only apologized and assured him that we will do our due diligence to find the root cause of these issues. I thanked him for calling me and let him know that most people would not make this call, and how we welcome the opportunity to know how our customers feel.
     
    This situation was a real eye-opener for me. I always believed that exceptional service can save you when things go wrong, but obviously this is not necessarily so. There is no doubt that due to our “above and beyond” customer service culture, we are able to sustain most negative cases. But, I guess even the best customer service can’t save a restaurant if the food is continuously bad.
     
    I now need to take a more proactive approach with respect to where I purchase my parts. We also need to track every part issue and see if there are any trends or patterns to the failures. We will bring it up to the parts supplier, but if the parts supplier makes no effort to fix the issue, I will have to seek other companies to do business with.
     
    In this business climate, too many things can go wrong. We, as business people, need to understand the perspective of the customer. And, no matter how much we preach customer service, the quality of our work is the signature of our brand and our company.
  18. Joe Marconi
    About a year ago I hired a service advisor that I believed at the time would be a great asset to my shop. He had a lot of experience, knowledgeable about the business and well-spoken. He showed all the right credentials.
     
    Soon after being hired, I noticed something that I did not pick up in any of our three interviews; he did not smile. How was it possible I did not notice this? A few more days turned into weeks and I could see that this person’s personality, or lack of personality, did not fit the culture of my company. We had a few meetings together and I would ask him, “Is everything ok? You never smile”. He didn’t think too much of it said that everything was fine. Personally, I had my doubts.
     
    Shortly after I hired him, an equipment rep came to see me said to me, “Joe, your new hire, you do realize he never smiles”. Well, this began to worry me. As time went on I could see that his demeanor did not go well with the other people in the shop, or with the customers. People feed off other people’s personality. When someone walks around with the look of doom and gloom, it affects the attitude of others. And it surely affects how the customers react also. It actually affects our ability to communicate and sell. I knew that if something was not done soon, it would have tragic consequences.
     
    It also bothered me that no one in shop really liked him. I later found out that was because he did not treat people nicely and would berate the techs.
     
    I tried all I can to help this person to change, but nothing I did could crack a smile on this guy’s face. Time went on and I hoped for the best. I soon learned that hope is never a plan for success. Soon, customers began to complain. After a while it became apparent that the negative behavior from this person was having a negative effect on the customer’s behavior. In other words, people feed off of other people’s personalities. If someone walks into a place of business and is greeted with a warm smile and a big friendly hello, it puts that person in warm and friendly frame of mind. When the opposite happens, things will go downhill and turn bad.
     
    As usual, I waited too long to pull the trigger. I gave myself every excuse why I should keep this person, when the truth was it was also affecting my personality and my ability to remain upbeat. For the sake of everyone I finally fired him, but not after the damage he had done to my company.
     
    The sad fact is that he will never see what his personality is doing to himself and to others around him. Why he was so unhappy remains a mystery, I hope in time he can release those demons. For me, I learned a valuable lesson. There are times that you cannot get people to change. For the greater good of everyone, stop the bleeding and fire the person. You are doing the best thing for that person, for others in your company and for yourself and your family.
  19. Joe Marconi
    Losing My Patience, Never My Passion
     
    As a shop owner, that began his career as a mechanic 36 years ago, the effort of building a business has taken its toll in many ways. While I have not lost my passion for what I do, I have lost my patience with many of the things I see around me. I have built a business from a small 2-man operation to a 2-facility company with close to 20 employees. It’s often said that you need great people around you in order to achieve success. But the truth is without leadership, vision, passion and a whole lot of determination, nothing will ever get accomplished. It also takes risk, with countless sleepless nights. All of which must come from the founder or owner of the business.
     
    Here’s my frustration. I hold myself accountable each and every day. If I screw up, I admit it and work twice as hard to rectify the issue. Why don’t others in the company hold themselves accountable? Not for me, for themselves. Take for example, a technician misdiagnoses a problem and costs the company money in lost time, wrong parts installed and an upset customer. Now, mistake happen, we are all human. That’s not my issue. My issue is the lack of remorse, the lack of concern, the lack of sense of urgency to make things right.
     
    I see too many times after a mistake has happen, that nothing changes in the attitude from the tech that made the error. He does not work any extra to make up for the loss. He does not come in early to try to make amends. And when I try to bring it up, I’m the bad guy and the tech gets upset at me! Upset at me? I have to suck it up and keep it inside me? And, Heaven forbid if I even suggest that the tech come back from lunch a few minutes early or maybe forgo his “natural birth right” of spending time on the tool truck.
     
    In their defense, my techs work very hard. They endure the cold, the rain, the sweltering heat of the summer and the daily bodily punishment of being a mechanic. I guess, what I want is just a little of the passion I have. That show of concern and the paying attention to all the details of the business. Also, I would love to see people have the same energy level as I have. I have more than 20 years on some of my employees and there are days that they can’t keep up with me!
     
    I guess, maybe it’s a lot to ask. My techs are great people. The morale is great and we are profitable. Some people tell me that it’s impossible for an employee to care like the owner cares. I don’t agree. Before I went into business, I took my work personal. When I worked for someone, I worked like it was my own business. But, that was me and to be honest I didn’t stay in the workforce long, starting my own business at the age of twenty five.
     
    Maybe I have been doing this too long, maybe I need to ignore some things. Maybe I just need a break. But, I am who I am and I can’t see myself changing. My passion will continue to be the force that drives me into the future. I will continue to work hard to bring out the best in me and in my employees. I am dedicated to my family, my business and to my employees. I will not push my ways on anyone. People need to show respect for themselves first. Only then can they truly grow with others.
  20. Joe Marconi
    A Customer Teaches Me About Life
     
    I will always remember the first day I met Mort Rubenstein. He was in his early 70’s at the time, about 18 years ago and used a walker to get around. He told me that he preferred to wait with his car while it was serviced and that he didn’t mind waiting, no matter how long it took.
     
    I remember as he was leaving my office for the first time, I offered to help him to his car and tried to hold the door open for him. Since he used a walker, I felt I was doing the right thing. He sternly told me that he did not need any help. For the next few visits after that I would always offer to help him and he would emphatically tell me, “Joe, I appreciate the offer, but believe me, I don’t need the help”. Then, he turned to me and said, “Joe, let me tell you a little about me. I grew up during the great depression of the 1930's and lived though those tough times. When the Japanese bombed Pearl Harbor in 1941 I enlisted in the Army. I fought my way through North Africa, landed on the beach of Normandy during the invasion of France and fought my way through many battles in Europe during World War II. I survived the war without even getting a scratch. Two years after I got out of the Army in 1947, life through me a curve ball; I contracted Polio. That’s why I use a walker today. I have accepted it, and will not let it defeat me. So Joe, when I tell you I don’t need any help, that’s the reason why”.
     
    I didn’t know what to say. I remained silent as I watched him walk to his car.
     
    Over the years, Mort became more than a customer, he became a friend. When he brought his car in for service, we would talk about the War, about business and about life. As his polio progressed he was confined to a wheel chair. But that never stopped him. He purchased a van with a special seat and ramp and would get in and out of the van by himself with the aid of a motorized wheel chair. He was in his late 80’s, still driving. Mort never gave up and lived life to the fullest and was always positive. As the years past I knew, from talking with his wife, that the polio was getting the best of him, but he never showed it. He was always upbeat and smiled.
     
    Mort died recently. He was 91 years old. Some would say that Mort lived a tough life. Not me. Mort was part of that generation that never asked for anything. Mort, like so many from that era, was willing to go to war for our country and ready to make the ultimate sacrifice. They didn’t have much but were happy and thankful with what they had. They endured the hardships of the great depression but never complained. That’s why they are called the Greatest Generation.
     
    I will always remember Mort and what he taught me about life. How to live life to its fullest, how to remain positive and get the most from the cards you are dealt with. I only hope that I can be as strong as Mort was if life happens to throw me a curve ball.
  21. Joe Marconi
    The other day one of my techs was replacing front brake pads and rotors on an older Subaru. The caliper bracket bolts were seized and one of them snapped off. This is a common problem and we are well aware of it. We try our best with rust busters and heat, but sometimes nothing works. The tech drilled out the broken bolt and finished the brake job. No problem, right?
     
    Here’s the problem, who pays for it? Me,or the customer? I asked the tech if he informed the service writer. He said he did. I asked the service writer if he told the customer and up-sold the repair. The writer told me it was a hard sell just to sell the brakes and felt he could not approach the customer. I informed my service writer that I did not buy the car, build the car or break the car.
     
    I did something that maybe I should not have done; I went into the customer waiting room myself and explained the situation and sold the caliper bracket repair.
     
    My issue is this. Are they times when we can't charge and we just have to eat it? I say yes and no. That depends on the situation. I also think that this particular writer needs more training in customer relations.
     
    What do you think? Charge or not charge? What policy do you have?

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