Joe Marconi

Labor rates are not only affecting the auto repair industry. This past week, I spoke to a good friend of my who owns a heating repair business. He says his labor rate now is $175.00 and that will go up the first of the year, 2023. His reason, in order to keep and attract quality people, I need be able to pay them, and still earn a profit. I have been in the auto repair business since 1974. We have been too cheap for too long. However, we need a balance between being profitable and competitive. And we need to pay our employees the wage they deserve.

Wow, now that is an issue that is worth discussing: How do you set up a process that keeps track of your mobile employees?

From my perspective, the key point in your strategy is in the last few sentences when you state that you will be selective about what you do. It will be interesting to see how your plan progresses. Keep us posted.

If you think about all that goes into servicing and repairing cars these days, it's hard to imagine being efficient at it. It has to be limited to basic and simple tasks.

No doubt, a great service for your customers.

According to Lang Marketing Aftermarket Consulting, Mobile repair and service is on the rise. I have mixed feelings about this, since repairing and servicing cars today is so complex. BUT, can mobile service be used to attract new customers, or used as a strategy to check the car out at someone's home or work, with the ultimate purpose to get the car to your shop? From Lang Marketing "Mobile Repair currently represents only a small portion of the Do-It-For-Me (DIFM) market, but it is growing at an explosive rate. As the DIFM light vehicle market plunged during 2020 and rebounded in 2021, Mobile Repair grew many times faster than the overall DIFM market, unhindered by the onslaught of COVID-19." Sources: Lang Marketing Resources, Automotive Aftermarket Consulting, Research and Analysis

I have heard from a few shop owners, that they are afraid to send their techs to a training event because they fear that they will be recruited by another shop. How do you feel about this? Perhaps it's time to sit down with your techs and see if all is ok? People quit for a number of reasons. Should we get ahead of this, if this is a real problem these days?

Wishing everyone a Happy Labor Day! I hope you take the time to spend with family and friends. You deserve a little R&R.

"In Search of Excellence" was a book that changed my way of thinking, way back in the 80s. One of the best strategies I gained from the book was MBWA (Management By Walking Around). To think that a simple process of walking through your shop and talking to your employees about all different topics, not just business either, would become a key part of employee management, boost business, and improve morale. Great book. Recommend reading, even though is nearly 40 years old.

Agree, that's the problem; we don't always know what potential violations we may have.

The last two years have been emotional times for workers in general, and priorities are all over the place. Personally, I think it is due to too many entitlements, or the perception of entitlements. It use to be, "Let me work hard, show my boss and/or manager what I am worth, and then we can sit and discuss my future." Build the best pay package you can. Include all the benefits you can offer. Look for quality people and don't give up. Also, consider growing your own through apprenticeships. As a business coach, I have given this advice through the years, with success. I know this may not meet your immediate needs, but it will pay off in the long term. Look for techs leaving dealerships too. Stay positive. I know it's a tough road, but mindset is everything. Good luck!

Yes, I agree. We tend not to see all potential violations and can get complacent over time. It's always good to get a pro's eyes to look at our shops. And not just to protect the shop owner, but also to maintain a safe workplace for your employees.

Thanks Larry, yes, we took content from the Elite Fly with the Eagles course. These tips will help shop owners avoid employees looking to leave. It's not all about money either. Surveys from Gallup and Glassdoor reveal that the company workplace culture is perhaps the number one reason why employees quit.

Words of wisdom, Frank! I need to admit, that I would be devastated when I got a bad review but learned the reality you speak about.

All great points. While we need to strive to please all, and provide the very best in customer service, the customer experience and quality repairs, the fact is that people are people and we cannot be everything to everyone.

It appears that the economy is not out of the woods yet, with inflation and the Feds looking to raise interest rates more. While gas prices are down (at least for now), there are other economic factors in play here that may affect your customer's wallet. So, is it time to tighten your belt a bit and squirrel away cash for a rainy day?

The word OSHA makes many shop owners cringe. I was lucky enough years back to have my insurance agent suggest I perform a voluntary OSHA inspection. A private company did it at the time. They found tons of violations; some we knew would be flagged, but most we did not. Have you ever had an OSHA inspection? And what can shop owners do to protect themselves?

While there are many different business models among all the automotive independent repair shops, what types of services or repairs give your auto repair shop the best ROI? Preventive Maintenance Services? General Repairs, steering, suspension, brakes, etc. Diagnostic/Electrical, etc. Or other?

A shop owner friend of mine told me that one of his top techs came to him to let him know that a shop across town contacted him to recruit him. The other shop offered more money and other benefits. This is not the first time I have heard this. While recruiting is something shop owners need to do on a consistent basis, when does it cross the line? Or does it?

Great perspective on a controversial topic! perspective

Contrary to what many people believe, having a perfect 5-star Google review rating is not something a business should expect to achieve. After all, no company is perfect. And Google realizes this too. There’s no denying that consumers look at online reviews and base part of their buying decision on these reviews. A great online review rating on Google is essential to draw traffic to your website and your business. However, it’s better to have a mix of great and not-so-great reviews. To consumers, a perfect 5-star rating looks suspicious; they expect some negative feedback. While most business owners get distraught over a negative review, how a business responds to the review is what’s most important. For automotive repair shops, a rating of 4.4 to 4.8 is probably what you should strive for. I am not suggesting that you don’t provide world-class service and quality repairs. However, the reality is that you are not going to please everyone. Another thing to consider is that negative reviews don’t hurt a business as badly as we think. Rather than worrying about negative reviews, shop owners need to focus on engaging and replying to all customers who leave reviews, which tells your customers, and Google, that you care about what your customers are saying. Responding to all reviews will also help your search engine ranking. The next time you get a negative review, remember that you will never please everyone. Use the negative feedback as an opportunity to learn from the feedback and positively promote your business.

I am sure of that.

Agree. Unless technicians are trained in the art of sales and customer experience, they should only have a simple conversation with a customer. Leave the sales and technical questions out of it. Years ago, I had a tech road test a car with a customer for a noise on turns. On the road test, the tech said, "Oh, I hear it, it's the left from wheel bearing, I have done tons of them. Should take under an hour to replace. And those bearings are cheap too." I learned a valuable lesson that day!