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Joe Marconi

Management
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Blog Entries posted by Joe Marconi

  1. 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!
  2. 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.
  3. 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.
  4. 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.
     
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