Joe Marconi

We all know that a great customer experience leads to great online reviews. But what other methods do you use to get more reviews?

Wow, lets hope this is a positive sign. With labor rates a lot higher now than just 4 years ago, I wonder what adjustments these warranty companies are taking?

December is the best time to do a final review of the year and to finalize your goals and objectives for the new year. What new goals and objectives do you want to attain in the coming year, 2025?

What was the learning curve to get adjusted to Tekmetric?

The rumor is that Mitchell is finally working on a cloud-based system among other enhancements, I think they are finally realizing the effect of so many legacy Mitchell users jumping ship. Thanks for the info!

Thanks for the information. Knowing AutoLeap, I can se how they would be an advantage to Canadian Shops.

Ha, Never. Just keep your mind sharp and you will never be irrelevant!

Question, you did not have a traditional automotive business management program?

Thanks for this, and for all your contributions to so many of the posts!!!

For information and to register:

I want to wish all our members the very best this Thanksgiving! Take time to reflect on your wins, celebrate the great times, and most of all spend time with family and friends. It's much healthier to be thankful for what you have, rather than to focus on what you don't have.

It seems there is a big movement to change business software management programs these days. I would like to know who has, the old program, the new one you choose, why, and if you are happy with your choice?

As a former shop owner turned business coach, this is a topic that I see often: A shop takes the time to establish their true labor rate, and in many cases, raises their labor rate significantly. While they get a short-term boost in labor profit, the long-term results are mediocre, at best. Why? One of the reasons is that the cost of doing of business has also increased, along with payrolls, and in many cases, at a faster rate then the rising labor rates. And then there is the issue with poor productivity. Has this happen to you and what are your strategies to maintain needed profits?

We have all tried different strategies during the holidays. What's the best advertising/marketing strategy you ever did, or still do?

This has happened to most of us: You have a series of interviews, asked all the questions you needed to ask, did your due diligence, and hire a new employee. Two weeks, later, you realize you made a bad mistake. What do you do, what have you learned from the wrong hire? And how long do you hold on this person?

I agree, if we know that a customer is buying a car, I think we do need to educate them on all the facts and help them make a more informed decision. All too often, the customer has already purchased the warranty, and some through independent companies they hear about in ads.

Another amazing podcast, a must listen to! As always!

Great advice for all!

Your comments truly resonate with me, and I feel the same way. Shop owners have a moral obligation to be profitable. Shop owners need to feel good about themselves, pay their employees well, earn a profit for future growth, and take care of their families. Too many shop owners are caught up in the day to day. They need to reach out for help, get a coach, get management training. Know the numbers, build more profit. They will sleep better at night too!

I think we would all be better if they adopted your strategy!

Great perspective, and great article too!

Five Proven Tips to Improve Your Bottom Line By Joe Marconi, an Elite Blog - A recent Small Business Administration (SBA) report revealed that one of the main reasons for small business failure is due to a lack of financial knowledge. Another survey, also conducted by the SBA, found that 83% of failed business owners stated that their failure was due to cash flow problems. While there are many facets to operating a successful auto repair business, one thing that is common to all is that it needs to be profitable. The fact is that too many auto repair shops struggle financially. The sad news is that most of them actually have a booming business that is clouded by their financial woes. The typical auto repair shop has consistent car counts, a calendar booked out for at least a few days, and in many cases, booked a week or more. Where so many auto shop owners fall short is understanding their financials, more specifically, not focusing enough on generating consistent profit and improving cash flow. In this blog, I will outline five proven tips to help you increase your bottom-line profit and improve cash flow. Becoming financially stable also improves your personal life and the lives of those you employ. Understand Your Financial Reports. Establish Your Financial Goals There are three main accounting reports that you should have a basic knowledge of: The profit and loss statement, the cash flow statement, and the balance sheet. Most auto repair shops either have an in-house bookkeeper or an accountant to generate these reports. It doesn’t matter who updates and runs these reports, as long as they are reviewed by you, the shop owner, periodically. Have regular meetings with either your bookkeeper or accountant and become familiar with your financial reports. You do not have to understand these reports as well as your bookkeeper or your accountant does. However, the more knowledgeable you are about your financial reports, the better financial decisions you will make, which will make a difference to your bottom line. Performing an in-depth analysis of your financial reports will give you valuable information on the financial strengths and weaknesses of your company. This information is crucial when establishing your financial goals. Having financial goals is essential to your company’s future. Share your goals with your entire team and brainstorm collectively to find ways to achieve them. Focus on Gross Profit, Not Total Sales When shop owners get together they typically share their year-over-year sales increases. While total sales revenue is important, it doesn’t tell the entire story. And it may not reflect the true financial health of your company. If you had a choice, would you rather have a 1.5-million-dollar business that produces a net profit of $50,000, or a one-million-dollar business that nets a profit of $175,000? The answer is obvious. Why? Your bottom line net profit is what truly matters, not the total sales number. To have a healthy net profit requires that you have a healthy bottom line. Gross profit is the amount of money left over from your total sales after paying your technicians and paying all the costs of sales items for all work performed. The higher the gross profit, the higher the net profit. Gross profit is important because it pays for all other operating expenses and loans. After paying all your operating expenses, what’s left over is your net profit. Depending on your business model, typically, auto repair shops look to attain a net profit of 10% to 25%. Improving your bottom line requires that you properly establish your labor and part profit margins. While there are benchmarks for the average auto repair business, the margins you set for your company may be different. With that said, we usually want to see 40% to 55% part profit, and a 70%-plus labor margin. A good number to shoot for is a 60% overall gross profit for parts and labor. One more thing to consider when calculating your gross profit requirement: Your operating expenses need to be in line too. Keeping your expenses in line by cutting excess and waste will lower your operating expenses and increase your net profit. If you are not sure how to calculate your margins properly or need help with maintaining your expenses, speak to your accountant, or seek help from a qualified business coach. Improve Quality and Total Shop Production During the Great Depression of the 1930s, Chrysler gained market share and financial stability by improving production. While other car companies were looking for ways to cut costs, Chrysler made a bold decision to focus on building more affordable cars and improving overall efficiencies. Their strategy was to produce more cars with the same labor costs. This ultimately resulted in increased sales and profits. It also propelled Chrysler to become known as one of the “Big Three” automakers, along with General Motors and Ford. Improving workflow production in your auto repair shop by utilizing the same direct labor cost will result in increased sales and profits. Essentially, improving productivity by using your current workforce means more work is done in a given period. Shop owners, take a long hard look at your overall workflow processes. Track all the steps your technicians are taking throughout the day. Are there wasted steps that can be eliminated? Are there bottlenecks in the service advisor process? Are your service advisors properly trained in the art of sales, and in delivering exceptional customer service? Improving your total shop production and quality will result in increased profits. One last word on the topic of production; look at your shop layout. Are tools, equipment, and information systems easily accessed? And let’s not forget how continuous training for all employees is a key component in delivering consistently high levels of quality and productivity. Build More Profitable Estimates Years ago, we used to say that technicians have control over their efficiency. This may have been true to some extent, but today there are too many variables. Let me give you an example. Your service advisor wants to sell exhaust manifolds on a Chevy pickup truck. The published labor time in her business systems calls for 1.7 hours per side. However, all the studs are rusted away which will require drilling and installing new studs, which is probably a 6-hour job, or more. If the wrong labor time is sold, there will be no way the technician can complete this job in the labor time sold to the customer. Sometimes you need to close the book, and openly discuss with your technicians the true labor time based on experience and the individual scenario. There are too many published labor times that are not correct. Increasing billed labor hours is perhaps one of the best ways to improve your bottom line. Control Account Receivables and Inventory Controlling your account receivables will not affect your gross or net profit. However, it will impact cash flow. Essentially, high account receivables reduce the amount of cash on hand. Available cash and profit are not the same. Your shop can generate a net profit of $25,000 for the month, but if your account receivables are $35,000, you will have a $10,000 shortfall of cash for that month. Most auto repair shops these days do not have an extensive inventory. Exceptions are repair shops that stock tires and shops located in extremely rural areas. Even if your inventory is low, pay attention to it. Limit your inventory to only those items that move fast. Having old stock sitting on a shelf reduces your available cash. Another important task is to ensure that your inventory pricing is up to date. Charging out-of-date prices are losses that go under the financial radar and will hurt your bottom line. Conclusion Most shop owners have their vision of a successfully-run business. This vision includes providing a healthy work environment for their employees, providing training and equipment, and having a clean and customer-friendly facility. Additionally, shop owners want to provide a benefits and pay package that attracts and retains the best employees. And of course, the owner must be able to earn a respectable wage too. All this requires profit. At Elite, we understand what auto shop owners desire from their businesses. We not only provide the business tools, one-on-one coaching, service advisor training, and peer groups that we know will help take your company to the next level, but we accomplish this in the most honest and ethical way. View full article

Isn’t It Time We Rethink What a Master Level Technician Is? By Joe Marconi, an Elite Worldwide Blog - My roots in the automotive industry go back to the 1970s working in a small 2-bay auto repair shop. As a young technician, my goal was to attain the status of master-level. That meant that I was expected to repair or service nearly anything that rolled into my work bay. However, “anything” really only meant vehicles made by General Motors, Ford, and Chrysler. The Big Three, as they were once known, dominated the roadways in those days. With a limited number of vehicle brands to learn, it didn’t take long to become proficient in all areas of automotive repair, from engine mechanical, drivetrain, electrical, steering, suspension, and all other systems. That was back then. Let’s fast forward to today. Unless you specialize in certain areas and/or on specific vehicle brands, it is becoming increasingly more difficult to be proficient in a wide range of vehicle models and vehicle systems. The training, technical information, and equipment that is required today to be an all-around master-level technician is too overwhelming. In this blog, I will explore a few ideas and push the envelope with a few controversial concepts. My goal is to help advance the automotive aftermarket and to improve the perception the typical consumer has of our industry. Everyone employed in the automotive industry should feel proud of the work they do. The Reality of Modern-Day Automotive Repairs and Service Is it reasonable these days to expect a technician to solve a complicated check engine light problem on Lexus, then jump to an electrical fault on a Volvo, and then analyze a transmission issue on a Dodge diesel pickup truck? Is it also reasonable to expect that technician to remain highly productive bouncing from problem to problem on different vehicle brands? The belief that the average technician can attain master-level status on a wide variety of vehicle brands and in all areas of auto repair has become unrealistic. We need to define different criteria. Should There Be a Change to ASE Certifications? We also need to consider the standards set by ASE (Automotive Service Excellence). Achieving ASE Master Level status requires passing a series of tests in a particular area of expertise. Most technicians consider ASE certifications to be a badge of honor, an achievement of accreditation. There is nothing wrong with this. However, in this modern world of sophisticated automotive technology among a vast array of vehicle brands and systems, does passing a series of tests accurately determine someone’s skill level and proficiency? There is no doubt that the ASE does a great job of creating standards for our industry, and their dedication to our industry cannot be ignored. However, I believe that the topic of what determines a Master Level Technician is something that the ASE needs to take a hard look at. A Shift in Our Mindset is Needed About eight years ago, I hired a technician that emigrated from Greece., we’ll call him Pete. When I reviewed his employment application, he noted that he was an Undercar Specialist. In his home country, Greece, he was trained in brakes, steering, suspension, wheel alignment, driveline issues, axles, tires, and wheel balance. I hired him, at first, as a B-level technician. What I found out in a short time was something I never considered before. Pete was so competent in his areas of expertise that I eventually promoted him to A-level technician and paid him accordingly. By focusing on certain vehicle systems, he was able to become highly proficient in those areas; to the point where he was the go-to tech in my shop for any undercar problem. Pete’s work was top-notch, with virtually no comebacks and the highest quality. The question is, why shouldn’t Pete be awarded the recognition of Master Level in his field of expertise? Here’s another thing to consider. We often complain about finding competent technicians. Techs that can handle everything we throw at them. Again, is this realistic? That may have been a reasonable expectation in 1985, but is it today? We need to shift our mindset and help young technicians choose their area of expertise, based on their strengths and preferences. This will build a larger pool of qualified technicians. This strategy would also open up more jobs for more people to enter our industry. With the proliferation of technology, diesel, hybrids, and electrical vehicles, doesn’t it make sense to have many areas of master-level status? Perhaps we need to take a page from the medical field. In the medical field, you have surgeons, cardiologists, gastroenterologists, pediatricians, obstetricians, gynecologists, dentists, and more designations. They are all specialists in their particular field, and they are all called Doctors. The Economic Reality I want to address the economic impact of running an auto repair shop these days. There isn’t a shop owner today who is not financially affected by the evolution of the modern automobile. The associated rising costs for tools, equipment, training, and information systems are heading into uncharted territories. Can the average repair shop afford to keep current on all makes and models? Buying expensive equipment, for example, has become a challenge. Shop owners often struggle, asking, “Why buy an expensive piece of equipment, only to be used once or twice a year? Where’s the return on investment?” With respect to being profitable, again I go back to what I stated earlier, can an auto repair shop be productive in all areas and on all makes and models? High levels of production are needed to generate profit. However high levels of production rely on creating processes on a predictable set of operations. What this means is that when a repair shop narrows its focus on what they do best, and on the vehicle brands they train on, those shops become more productive. They also become more profitable than those shops trying to be all things to all people. My Proposed Solution The automotive aftermarket industry must adopt a new way of thinking. Just like the medical field, technicians should be able to, and encouraged, to specialize. This would allow someone to achieve master-level status technician in a specific area of automotive repair. Just as in the example above with my technician, Pete, we would have highly skilled technicians proficient in different areas. We would have under-car specialists, transmission specialists, drivability specialists, EV/Hybrid specialists, engine specialists, and other designations. And they would all be considered Master Level Technicians in their field of expertise. Productivity and efficiency would improve, more jobs would be made available, and more people would have pride in what they do, and in the industry they work in. Conclusion At Elite Worldwide, we are committed to helping our clients stay on the cutting edge of business strategies. We are also firmly committed to elevating the auto industry, raising the bar for all auto repair shops, and for those working in the automotive aftermarket. From our Top Shop Coaching programs, Pro Service peer groups, and our service advisor Master’s Program, Elite has the business solutions to help you take your company right to the top! View full article