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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. Joe Marconi
    First, welcome to Auto Shop Owner! Looking forward to your contributions and helping shop owners.
  2. Joe Marconi
    Agree, there are so many things you can share and learn from networking!
  3. Joe Marconi
    From what I have learned from speaking to shop owners, they are both very good products. The only thing I know about Shop Boss is that it's a little easier to learn and operate and targeted to smaller shops?
  4. Joe Marconi
    I hear your story all too often, and it greatly bothers me about today's workforce. It comes down to a matter of respect too. The key point is your last point, "Keep looking for our real criteria."
  5. Joe Marconi
    Ha! I know, "Can you fog a mirror? You're hired." Many shop owners, and small business owners in general, had to lower their standards due to the shortage. But soon learned that this type of hire has big disadvantages. I think all shop owners need to continue to network and fill their future pipeline of quality people.
  6. Joe Marconi
    Do you Network with other shops in your area? if not, why not? I know that the shop down the road might be a competitor, but networking is a key component to growing your business. And help the auto industry. Comparing strategies and tips can be very beneficial to you, the other shop, and the industry. That does not mean you have to exchange your trade secrets or price fix, but it might be nice to know that the shop owner down the road has the same challenges you do, and maybe brainstorming ideas can be beneficial. Thoughts? Comments?
  7. Joe Marconi
    I know how difficult it is these days to find and hire employees, especially technicians. But the reality is that making a wrong hire may end of hurting you in the long run. What are your criteria for hiring employees? What standards do you look for?
  8. Joe Marconi
    We are well into the month of April, which means the first quarter is over. Time to review the year-to-date sales and profits, and realign your goals. From what I am hearing, in general, shops are doing well, even though the winter for some shops experienced a slight slow-down in sales. How did your shop do the three months of 2022, and how do you project the year to turn out?
  9. Joe Marconi
    Choosing a business management system these days may not be as easy is once was. There are many things to consider: Is it cloud-based, able to expand to multiple locations, and does it include other features such as DVI, labor guide, part procurement, repair access, scheduler, phone tracking, and CRM? And there are many other features to consider. What system do you use, and are you happy with it? What features do you like, dislike, and would you consider a new system?
  10. Joe Marconi
    According to a recent article in Ratchet and Wrench, there is a severe battery shortage that will not be subsiding any time soon. Also, the price of lithium has increased 480 percent in the last year! Will this administration change its stand on fossil fuels? Or will we be held hostage by countries like China? NOTE: this is not a political post, but an issue WE need to have an open and honest discussion about.
  11. Joe Marconi
    Almost exactly one month after issuing his first delay, Judge Douglas Woodlock issued another procedural order on the day of his self-imposed deadline saying he would not make a decision. Citing "the resurgence of a demanding criminal trial schedule" as well as other non-trial-related delays in the order, Woodlock pushed the decision deadline back by nearly three months to July 1. Once again, our industry is not considered a Top Priority. Except to us, who live it each day!
  12. Joe Marconi
    How is Canada responding to the cost of labor, the tech shortage, and part shortages?
  13. Joe Marconi
    That's for sure Frank! And I agree, some of the younger consumers don't even know how to open the hood. I guess that may be a good thing too!
  14. Joe Marconi
    Let's face it, the days of the 3,000-mile oil change are long gone. And so is the $24.95 oil change price too. Today, we are lucky if customers schedule an oil change service. Many of them wait until the OIL LIGHT comes on. How many of your customers come in with NO, TO LITTLE OIL, in the engine???? For years the new car dealer salespeople, the carmakers, and the owners manual have brainwashed the average consumer that nothing is needed in terms of maintenance. With low viscosity oils, low tension rings, and extended oil service intervals, we see a ton of engine-related issues. I am not a proponent of the extended oil change service over 6,000 miles, no matter what you drive. Tell most consumers that 10k is ok, and you are lucky to see them at 20K! Isn't it time to change our strategy? Start promoting Maintenance services? Educated customers? And charge appropriately for this maintenance service?
  15. Joe Marconi
    Not only is this a hard concept for some, but many accountants also don't get it. But you are right, the Cost of Labor must go in the Cost of Sales (also known as Cost of Goods) section of the Profit & Loss Statement. The main reason is that this is how we price out jobs on a daily basis: We factor in the Cost of the Part, and the Cost of our Technician. Great points Larry!
  16. Joe Marconi
    60% overall gross profit (parts and labor) is a realistic and needed number to attain. For a general repair that usually means a labor margin of 70% and a part margin of 50%. Even in this age with the Rock Autos, Amazon, and eBay, a shop must achieve its needed part profit. While there are differences around the country, it's becoming more uniform in terms of overhead expenses. Sit down, and crunch your numbers. Review all your expenses. Understand what it takes to be in business. Your expenses should be around 40% of sales revenue. BUT, here is the difference: Once you know the Cost of Doing Business, you then add an ROI, a return on your investment. That's right, profit. Typically, general repair shops target a goal of 20% net profit. There are other factors involved, but these are the core numbers of a general repair shop: 60% overall GP, keeping expenses at 40%, and a goal of 20% net profit.
  17. Joe Marconi
    One of the things I battled with when I had my shop was offering financing to my customers for large repairs. I felt that some customers who needed help with financing would only add to their debt and those that could manage their money and wanted to spread out the payments. To be honest, I did not push financing. I focused on a clientele that knew had to manage their own money. Do you use financing options to help sell work? Pros and cons?
  18. Joe Marconi
    Words of wisdom James. Let me add that the shop is stronger when the employees work as a unified team that can act without the owner there all the time. Leadership is important, but culture holds the team together. By the way, I bet there are a lot of members that can relate to the sleepless night you mention, myself included.
  19. Joe Marconi
    Great information for all! And, for a transmission business, this it is critical that calls get tracked and conversions from leads to appointments.
  20. Joe Marconi
    That's what I heard too. The shop has to pay $1200 to sign up, and then give COSTCO members a 15% discount. I really don't know about this. How does the shop know that the COSTCO members fit the profile for the shop? Happy Easter!
  21. Joe Marconi
    Is Anyone signed up for the COSTCO Auto Repair Program? Or know of a shop that is? COSTCO members get a 15% discount at participating shops. That is a huge number! Here is a link to the COSTCO program: Costco members save 15% on parts, service & accessories | Costco Auto Program
  22. Joe Marconi
    When I had my shop, we did track lost leads, but we had to define what a lead was. For me, it had to be a customer asking a question about an issue or auto-related topic and the ability of the person on the phone to convert that into an appointment. While we did record calls, we left it up to the service advisors answering the phones to log a lost lead. (Each advisor had a daily log sheet). This wasn't the most accurate, since, without verification, we were not always sure what took place. However, I relied on the right people and the right culture to get as much information as possible. Now, not everyone calling is a potential customer either. A call asking about bodywork, or installing his own brake parts is not a lost lead, if not converted to an appointment. Open and honest discussions with the personnel are crucial in an effective lost leads process.
  23. Joe Marconi
    Larry, you bring up a good point; the older we get the less sensitive we are to people's reactions to our prices. And a big part of that is what you state with regard to your P/L. When the shop owners truly understand what it takes to turn a profit, setting margins and pricing becomes a normal function of the business.
  24. Joe Marconi
    Happy Easter and Passover!
  25. Joe Marconi
    Let's all remember, that a labor rate is an internal number we need to know in order to remain profitable after we pay our technicians. The consumer does not the ability to understand this number. For example: If a shop charges $175 labor to replace front pads and rotors on a Honda Civic, and that can be done in 45 minutes, that translates to about $233 per hour. HOWEVER, if your labor charge for an oil change service on that same Honda is $20.00 and that is done in 30 minutes, that equals $40 per hour. Sell the value of the job to your valued customers and receive value in return for your labor. My hope is that ALL shops across this great nation crunch their numbers and realize how labor is crucial to their success and to pay their employees!

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