Joe Marconi

Yesterday, around mid-day, I headed out to run a number of errands. I first stopped for a quick lunch, then on to the hardware store, the beer distributor (for Father's Day BBQ), the grocery store, and then I went to Staples to pick up a few shipping cardboard boxes. EVERY place I went to had a sign out in front: NOW HIRING! I don't get it, where are all the workers? The unemployment rate is at 3.6%. Does that really reflect the number of people out of work, or is the number higher when we factor in those that don't want to enter the workforce or those that have left the workforce? Something doesn't add up.

Having been a shop owner for 41 years, I have lived through many economic swings, both good and bad. I can tell you that increases in prices, from gas to food to new car prices, can prove to be a good thing for auto repair shops. People tend to tighten their belts during tough economic times, but also understand that they need their cars in the best shape they can be to save on fuel and save on costly breakdowns. How can you help your customers save on fuel costs and focus on preventive maintenance?

When it comes to advertising, there is an endless list of strategies. And, it appears, that everyone has a different strategy and opinion about what works and what doesn't. So, the question is: What's Your Most Effective Form of Advertising?

Before I started my auto repair shop, I worked for a Ford Dealer way back in the late 1970s, and my goal before leaving that dealership was to become an A-rated Master Tech. Their definition, at that time, was that a Tech had to be able to repair everything and anything from bumper to bumper. Is that definition even possible? Can someone become proficient in every area of automotive service, repair, testing, and diagnosis? About 10 years ago, I hired a technician that grew up in Greece. He was trained in one area of the automotive; Undercar. He was highly skilled in brakes, suspension, steering, wheel alignment, wheel balance, axles any issues or problems related to undercar. He was the best in his class, and I considered him an A-rated Master tech....in that area. With technology changing at light speed these days. Is it time for techs to specialize or narrow their scope of skills?

These are all great points. We have to remember that many of us would not be where we are today if it were not for an older shop owner giving us a chance. I was hired as an entry tech when I was 20 years old at a two-bay gas station in the Bronx. I had no formal automotive mechanical education, just what I learned from my father and doing my own car. At that age, I was no Ace, but I learned fast. In fact, 5 years later I had my own shop. I only bring this up because someone gave me the opportunity. If we don't build for our future, no one will.

Mike, I agree with you 100%! You make a great analogy with what happens when business slows down and shop owners go into, as you say, "Panic Marketing." It is up to the shop owners to build the workforce of tomorrow. And we do need to get the younger generation interested in this amazing industry. If half the shops in this great nation of ours started an apprenticeship program, we could solve the tech shortage in a matter of a few short years.

I tend to agree with you. Even after 41 years in business, letting someone go, no matter what the situation, was uncomfortable.

All great comments. And it's ok to disagree. That is the purpose and the reason for the forums. There are many ways to achieve great results. A process or a tool has to work for you or modify it to accommodate the way you conduct business. One point, you do alert the customer that they will be getting the DVI report. This, in my opinion, is better than sending the report blind, where the customer is not expecting it. Great conversation.

Other shops also found out that they didn't need Saturdays. COVID did bring change to many businesses.

When I started my auto repair shop in 1980, it was typical to work at the shop 50 to 70 hours a week. More than half of that time was working on cars. I kept that work pace for over a decade. I know that many shop owners of my generation did the same thing. That's all changed now. And for the better. More shop owners today understand that their leadership roles are critical to their success and the best strategy for the welfare and development of their employees. Jump to the link below for a few quick stats on the different roles of today's shop owner.

In a recent Wall Street Journal article, automakers are asking the European Union to hold off on their 2035 plan to ban the sale of gasoline-powered vehicles. Automakers state that the disruption would be too great for auto supply companies and that the charging infrastructure will not be ready in time for the ban. In addition, the shift would cause big job losses. How do you feel about EVs?

With so many different models on the roads these days and the challenges of obtaining all the necessary training, tools, and technical information, should auto repair shops consider narrowing their focus on fewer makes and models? Is "All Makes, All Models" really achievable today?

Digital Vehicle Inspections (DVI) are becoming more and more common these days. I think this is a good thing. What I am concerned about is how the the DVI report is being used. I am not a fan of sending the digital report to the customer to be used in place of the service advisor speaking and explaining the results of the report first. Would a doctor send the MRI, lab tests, and x-rays directly to the patient without the doctor first discussing the results? In fact, there are times when the doctor never shows the report results. In my opinion, the DVI is a tool, and it's not meant to take the place of good old fashion person to person discussion, which is called customer service. Agree? Disagree?

The only time I have done an exit interview is when a really good employee gave me his/her two-week notice. If I fired someone, I didn't bother to sit down with that employee, it was too uncomfortable for me. Maybe that was wrong? People quit for a number of reasons. All of us quit our jobs to further our personal careers as shop owners. Some people quit to pursue other careers. Some quit because they believe they are working in a toxic work environment. I do think there are lessons to learn with every employee that is leaving your company, for whatever reason. Do you perform exit interviews? Are there lessons to learn?

I know, it's not rocket science.

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!

The Elite Invitational was a huge success, with many great shop owners attending. The guest speakers were amazing, and the customer panel gave us their perspective on how they view auto repairs, the independent repair shops, and the new car dealers. An information-packed event!

Remember COVID? Many shops suffered because of their lack of cash reserve. While no shop could fully prepare for an economic event like COVID, it is crucial that you build a cash reserve. What cash reserve do you have? How much cash reserve should a typical shop have?

Got your attention? Good. The topic of the tech shortage has been discussed, kicked around, and debated now for decades. It is nothing new. So, what are YOU doing about it? If we wait for some "entity" to solve our tech shortage, we will be waiting forever. Here is what I think, and tell me how you feel about this: All shops need to start an apprenticeship program Shop owners need to attend career days at the local high schools Shop owners need to reach out to tech schools and post-secondary auto tech schools and let them know of their apprenticeship program Shop owners need to improve the work environment to increase their employee retention rate Shop owners need to sit down once a quarter, do the math, know what they need to be profitable, and put a plan together to raise their employees' wages, including their own! Thoughts? Comments? Opinions?

With high inflation appearing to be an issue for the foreseeable future, I feel it is critical for shop owners to continue to promote the value and benefits of doing business with you. Are your customers holding off on needed services or repairs? How are shops dealing with inflation? And don't forget, inflation affects YOU too.

I will be at the Elite Invitational next week and also making a presentation on "Identifying Your Ideal Customer." If you are attending the event, please let me know. I would enjoy getting together. For more information, click the link below.

Let us all take time this Memorial Day weekend to remember and honor those who have died while serving in the United States Armed Forces, protecting this great nation!