Joe Marconi

Great advice! And very relevant!

I know two things about booking the next appointment. First, many struggle with it. And those that do book the next appointment at car delivery increase sales, maintain car counts, and have a better ROI. Why, they focus on the customer right in front of them. We all know that retention is less costly than new customer acquisition.

So why do so many service advisors struggle with this?  

19 minutes ago, Transmission Repair said:

Your advice is a sound strategy.  However, a lot of younger techs who become shop owners may not agree.  Our industry needs people like you, who also train.  Keep doing what you do.  Invaluable advice.

I appreciate the feedback and the kind words.  My father would often tell me, "We get old too soon, and smart too late."  

On of my core beliefs and purpose is to continue to help others in any way I can. And I am sure you feel the same exact way! 

Many shop owners are not aware that if they pay a bonus to their employees, that bonus may be subjected to overtime laws. There is a calculation that must be used if this pertains to you. Contact your payroll company, and/or a human resource professional to make sure if you are in compliant with labor laws for your state, and they can also help you calculate the correct overtime. 

Below is a bulletin from a company called SESCO, a Human Resource Company. 

The fear of raising prices, both in labor and part margins, always brings an element of fear. This is totally understandable. However, that fear may not be real. 

The first strategy when pricing is to ensure that you build value in what you are selling. If the perceived value is low, price becomes important. If the perceived value is high, price begins to fade as an issue. 

Additionally, understand your key profile customer. You know who they are. They are those that throw their keys on the service counter and say, "Fix it, I'll be back at 5pm to pick it up, and no need to call me for authorization."   Remember, you cannot be all things to all people.  

The bottom line here, is truly the bottom line. You need to charge the right price that ensures you earn a profit. Now, don't misunderstand what I am saying here. Raising prices to overcome inefficiencies in your business is not a sound strategy either. 

If your production levels are not where they need to be, don't automatically look to fault your techs. First, look for bottlenecks in the service staff, not charging the right labor hours, too much discounting, and not performing enough high profitable jobs. 

Your thoughts? 

17 hours ago, Transmission Repair said:

If I could call just one automotive article a complete seminar, this would be the article.  It was a very good article with some absolutely great books to read.

https://www.ratchetandwrench.com/shop-life/columnists/article/33006771/bennett-10-must-read-books-for-auto-repair-shop-owners

All great books. Perhaps we should start a Book List Post?  

15 hours ago, Transmission Repair said:

Great webinar.  My main goals at this stage of my life (retirement) are health-related.  Can I get a link to the slides used in the webinar?

Thank you! I will get you the slides. 

Ok, I am a little frustrated. My knee has been hurting me for a few months. I finally called an orthopedic specialist group (the largest and most well-known in the area).

These are the events that occurred:

1. When you call the office, you cannot speak to anyone. You need to leave a message or go online to fill out a form
2. I went to their website, filled out the form with all my info, and requested an appointment
3. The next day I got a call from the office; they wanted to verify my insurance (all about getting paid, NOT my knee pain) 
4. The person on the phone said that ANOTHER person would call me to schedule an appointment
5. FAST FORWARD - I have since called numerous times and left messages to get an update on my request for an appointment
6. Five days later, no call, still in pain...

This is a reminder to all shop owners to call back your customers. The unknown and waiting is"painful" 

As a former shop owner for 41 years, I know how important goal setting is.  Join me, as one of the speakers, for this important webinar. 

Click below to register: 

Thanks! These are great! And did brighten my day! 

Repair shops that have done the math, know what their labor rate needs to be. However, are they leaving money on the table when performing some jobs, such as complicated driveability, electrical work, and other computer-related work? 

Shouldn't we base the labor rate on certain jobs by the technicians that are assigned to those jobs?

In other words, if you have a drivability / electrical tech that is also the highest paid in your shop, shouldn't the jobs he or she performs be billed at a labor rate based on his/her pay scale?  

On 1/8/2024 at 9:24 PM, Gerald Martin said:

Absolutely.  The front desk can be a bottleneck.   When advisors are overloaded time is lost between inspection and approval, which means missed part deadlines, jobs slip from today into tomorrow, and it snowballs from there.

It's not hard to see how production suffers in this scenario.   What are some ways to help?

1.  Support staff.  Offload some of the busy work - so advisors can focus on the the client.  Vehicle arrival photos, QC checks, loaner cars, etc.

2.  Parts staff.  A good parts person can save advisors a lot of time on the phone.  A great parts person might even be able to help prepare estimates.

3.  Order parts proactively.  This becomes a judgement call.  But if a parts deadline is about to be missed, order the part you will probably need later today before getting the client's approval.  If you misjudged and the client declines work deal with the returns.  With time you will be right more than you will be wrong, and this will keep jobs from slipping into the next day.

Great questions Joe and I will be interested in hearing feedback from shops who have mastered this one.  We're still in grade school...

Gerald

Great points, Gerald! And I like your comment, "We're still in grade school."

Achieving your objectives will require growth, financially.  I wonder how other view this, an obstacle or opportunity? 

We judge our shop's production by car counts and billable labor hours. But isn't this dependent on the ability of the Service Advisor to get write-ups done, cars dispatched, make sales, handle phone calls, walk-ins, etc.?  

If the service advisor's load increases, doesn't this affect overall shop production?

18 hours ago, newport5 said:

To:victorb newportmotorsports.net

Thu 1/4/2024 9:55 PM

 

 

Regarding:  I recently spoke to a shop owner who told me his techs give him pushback on performing the multipoint inspection (MPI). After a few questions, I think I revealed the REAL problem. His techs are paid Flat-Rate, and not being compensated to do the MPI.

(If so, that seems simple: pay the techs. A half hour? I knew one shop that paid a full hour. How long does it take them? But I can hear the shop owner saying: But it’s more money for the techs. Yes, AND more for the shop owner)

 When on flat rate, every minute means earned pay. However, is it a flat rate issue or a culture and leadership problem? (pay the techs) Or the wrong employees? (Pay the techs)

(OR, other possibilities. Do the techs have two racks each so they can work on another car while the estimate is written and the customer called? Or do they wait? Does the advisor write it up in a timely fashion? Are the advisors getting enough approved?)

I realize that time must be compensated on that type of pay system, but what about the customer and their safety?

(I think that is more the shop owner's concern, but I would think ANY tech would point out a safety issue. Having said that, I got tired of hearing safety brought up along with “benefits and value” when getting approvals, so I searched how many accidents were caused by faulty vehicles. If I remember correctly, of the 3 or 4 top-ten lists of causes of accidents I found, only one list had mechanical issues and it was 9 or 10 on the list.)

And speaking of MPI’s, how does every car NOT get one? Isn’t that a shop’s job? Let the customer know about issues so they can decide to do them now or in the future? Of course, using the advice of the advisor, who’s looking out for the customer’s best interest, not their own.

Or is the shop too busy to add another hour or two in the day? If not, then you have to take the time to make another appointment, write them up when they get there, put the car on the rack again, take it off again and road test it again. That sounds like 20 minutes. At only $120 an hour that’s $40. You’ll have to bill $120 to earn that $40.

Schedule it lighter? Are the advisors swamped? But that might be for another post.

This makes so much sense, and should be read by every shop owner. Great outline and explanation! 

And you are right, I have started another post about Service Advisors being too swamped these days! Thanks!

As always, thank you Carm for the opportunity! It was amazing and a lot of fun!  

And THANK YOU for what you do for the industry. Your efforts have made a positive difference in the automotive aftermarket!

Keep it going in '24!

Happy New Year! 

38 minutes ago, Transmission Repair said:

With automatic transmission repair, part prices aren't easily looked up online like G/R is.  What our customers looked at was our bottom line.  The few that did look up part prices online would look up the price of a complete transmission and weigh that compared to what we charged.  We rarely had an issue with our prices, although we got top dollar for what we did.

Good point, in your business model there are not well-known parts, therefore those prices are not price-sensitive. Good point! 

I think the past few years have told us that consumers, in general, want their cars repaired and serviced with a high degree of quality, a fair price, and a good experience. Let's face it, labor rates have gone up a lot for many shops around the country,  but with little pushback from loyal customers. 

But, is this a complete picture?  I am not sure, while labor is more accepted in the mind of the consumer, aren't part prices still an issue since it's easily researched, such as on Google, Amazon, Rock Auto, etc.? 

I want to wish all our members the very best during the holiday season, and the very best in the New Year!  

What you do every day is essential to the lifeblood of our country. You keep America moving, and you should be proud!

I recently spoke to a shop owner who told me his techs give him pushback on performing the multipoint inspection (MPI). After a few questions, I think I revealed the REAL problem. His techs are paid Flat-Rate, and not being compensated to do the MPI. When on flat rate, every minute means earned pay. However, is it a flat rate issue or a culture and leadership problem?  Or the wrong employees? 

I realize that time must be compensated on that type of pay system, but what about the customer and their safety? 

Many shop owners are saying that the great business increase we experienced in the past few years is fading.  I don't think so. Are things stabilizing? Probably. But we are in very good times, with great opportunity. Many shops finally raised their labor and prices that can earn them a decent profit, the average age of a car is around 12 to 13 years old and still rising.

I can't speak for everyone, but would like to hear your thoughts on the state of the Auto Repair Shops from your perspective. 

50 minutes ago, Transmission Repair said:

I've been a transmission repair specialist for all of my 40-year career.  At first, it was because I loved the challenge of automatic transmissions.  As time went on, I learned I was truly blessed because I haphazardly learned that specialization was the key as well.  Lucky me.  I don't know of a tech that can meet the time for any G/R time the first time they do a job.  For that reason, I never went into G/R because there were too many 1-off and first-time repairs.

However, I was tempted to go into G/R when transmission repairs got slow.  I agree that specialization is the key, as well as the future, of G/R.  I predict the majority of the shops will do what they've always done when technology changes; they will adapt.  After all, didn't G/R originally adapt from the blacksmith shops to cars?  Below is a recent CNBC news video that puts forward an idea of what the automotive industry can expect over the next 11 years...

https://youtu.be/P-NF-7miGLo?t=418

Good points, and perspective! And thanks for the link!

9 hours ago, Gerald Martin said:

Great questions Joe.  In my opinion, the future is bright for independent repair shops that embrace emerging technologies and invest in training.  See you all at Vision 2024 in Kansas City!

However, I can see the possibility that we no longer expect that every tech has the knowledge or training for every job that comes through the shop, as may have been expected in the past.  There may be alignment and ADAS techs, diesel repair techs, driveability diag techs, etc.  Oh, and high tech immobilizer and key programming work that requires locksmith level training.  A certain amount of specialization is inevitable, isn't it?

Wouldn't it make sense to have a goal of having two technicians in the shop that have competency for services offered by the company?

Gerald

 

Gerald, I agree with your assessment. Specialization is the key, and we need to assess the strengths of our employees and provide training in those areas. A shop's business model will dictate the competencies needed to provide top-level service/repairs to their customer base. 

One more thing to add to this discussion; top pay or A-rated pay cannot be reserved for the "traditional" definition.  Please note that flat rate pay is not the norm in many states, such as New York. Rethinking pay scales is also inevitable. 

Looking forward to Vision 2024! 

Too many shop owners spend too much time on new customer acquisition. While this is important, they sometimes forget about the customer right in front of them. 

Retention is your key marketing strategy.

Great topic SMP! As always, great podcast! 

When I started as a young auto technician in the mid 1970s, working in a general automotive repair shop was a lot simpler. After all, we mostly worked on GM, Ford and Chryslers, and most of the work was mechanical. Fast forward to today, can the General Repair shop model still work? 

Today's techs who work in general repair shops have to bounce from Toyota, to Honda, to Nissan to GM to  BMW, to Hybrids, and on and on. And then switch gears to a Ford pickup diesel.

Techs also need a working knowledge in, electrical, on board computer and driveability issues a wide variety of car makes and models. 

And what about the training needed and the tools/equipment need to service and repair a wide range of worldwide car models? 

If you are a general repair shop, I would like to learn more about how you are adjusting to the challenges of running a general repair shop.