Joe Marconi

While the United Auto Worker’s strike may be over, this won’t be the last time Detroit will hear from the UAW. As a result of the contract agreement, the Big Three (General Motors, Ford, and Stellantis) will now have to find ways to pay for the increases in wages and benefits, which are estimated that it will add $850 to $900 to each vehicle produced. Putting politics aside, the effects of this strike are far-reaching, with no clear winner. Here’s a quote from UAW President Shawn Fain, “We wholeheartedly believe that our strike squeezed every last dime out of General Motors.” Can you imagine your technician or service advisor saying that about you after a performance review? While the UAW is taking a victory lap, the Big Three will not just roll over without making key changes. No doubt, we will all pay more for new cars, and perhaps used vehicles too. Plus, even though many car companies don’t have union workers, the consequences of this contract agreement will impact the entire auto industry. But, enough about the UAW and The Big Three. Let’s focus on some of the lessons that many large corporations don’t seem to ever learn. At the heart of this strike is the relationship between big corporations and rank-and-file workers. As companies grow, they sometimes lose touch with their employees. All too often, the focus on profits, instead of people, becomes the main driver for decisions, and unfortunately, employees are sometimes used as pawns. Let’s be clear, I am not supporting the UAW, the union workers or the Big Three. There are problems on all sides. However, we need to understand that the power of the unions can only happen when management moves in a direction that the employees feel is unstainable. Which is a direct result of poor leadership. Here’s the biggest takeaway; as you grow your company, maintain the culture that has laid the groundwork for where you are today. Never forget about the people who come to work with you each day. Continue to create strong relationships with your employees. Continue to treat them with respect and find ways to pay them the salary you would work for and a benefits package you would want. I know everyone reading this knows all this, and in fact, I have more faith in you as a shop owner and your company’s future than I do in the Big Three. Perhaps The Big Three should take lessons from Auto Shop Owners!

An intense podcast on a very important topic. A must listen for ALL auto shop owners!

That is great to hear. Many shops are experimenting with a labor matrix. We all know all too well that many factors go into the correct labor times, and also that the Labor Guides are not correct.

I agree with your philosophy. I too was a firm believer in paying above scale. Even my part time clean up kids were paid higher than min wage. I tool the advice from Howard Shultz of Starbucks. If you want great people, them pay them well, treat them well, and provide them with a benefits package.

Are you a tech, manager, shop owner, other? Can you please provide more information. You post is a little disturbing. Your post is an important topic, and I would like to expand on it.

The Elite Masters Experience for Service Advisors: Your Questions Answered The Elite Masters Program is all about making big changes – turning Service Advisors into top-notch sales professionals who don't just drive revenue but deeply connect with every customer. And like anything new and exciting, there are questions. Let's dive right into them. 1. What Exactly Will My Advisor Learn? Our Masters Program goes beyond just the technical stuff. We focus on people, making every customer interaction count. Your advisors will learn to handle tough sales objections, build strong relationships with clients, and give an amazing customer experience every single time. 2. Why the Emphasis on In-Person Immersion? We believe that real learning happens face-to-face. Our upcoming session in San Diego at the end of this month, and early next year in Dallas, are designed to get everyone involved, share experiences, and learn in real-time. It's about more than just gaining knowledge; it's about bonding, sharing, and growing together. 3. How Much Time Will It Take? And Is It Worth It? Think of it as an investment in growth. It's 3 days of in-person immersion immersion with just an hour of weekly meetings over six months, your advisors get to experience something that'll last a lifetime. The numbers speak for themselves: an impressive $127 increase in ARO and a jump of $11k+ in average monthly sales. And it's not just about the figures; it's about the passion and energy your advisors will bring back. 4. Why Six Months of Weekly Meetings? Research shows us that repetition truly is the mother of learning. The weekly meetings allow your advisors to dive deeper into discussions and practice the material with their peers and instructors, rather than practicing on your customers. It is this practice, or repetition, in a learning environment that enables their new skills to become second nature. 5. How is the Elite Masters Program different from other advisor trainings out there? Many trainings focus merely on quick sales tactics, but we dive deeper. Our approach is holistic, aimed at the overall development of your advisors. The consistent change in behavior your advisor will gain from this course will lead to improved sales, but most importantly it will lead to improved customer satisfaction. Jump into the Masters journey, where every question leads to a new discovery, and every answer shows our dedication. Ready to get started? Spaces fill up fast. Act today. For more information and to register, click the link below https://eliteworldwide.com/elite-masters-program/    

We paid hourly, with a performance bonus plan, based on the the tech's level, and also based on the tech booking a min level of hours each week. This kept the tech accountable by knowing that in order to attain the bonus, he/she must book a required min level each week. (not including sick time, holidays, vacation time, or weeks that weather affected business). The different level techs had different goals and different min levels. We made it as fair as possible, and gave them the opportunity to earn more. One last thing, we also tracked comebacks.

Ha! Sorry....but I cannot get political, hope you understand.

Not legal in New York too.

Why Employees Underperform Joe Marconi - Featured in Ratchet and Wrench Magazine Four reasons why you may not be getting the best out of your team and what to do about it. When auto repair shop owners get together, it’s common to hear them discuss their employees. But how often do you hear shop owners talking about their best employees? Not very often, right? Shop owners are usually obsessed with underperforming employees. Let’s explore the reasons why. Potential Many shop owners and managers assume that potential, or the desire to excel, will eventually turn into positive outcomes. Unfortunately, having potential or desire doesn’t always lead to high performance. It’s important to note that no matter what someone’s potential is, they may only attain a certain level of performance, which is largely based on their natural talent. Motivation Motivation is another factor we need to consider. As a business coach, clients often tell me their employees are money motivated. I challenge this thinking. The technician who is planning to get married, buy a house and have kids knows their future involves money—and a lot of it. But what is the true motive behind the money? Sit down with your employees. Find out why they come to work each day. What really motivates them? Preferential Treatment Another reason people may shut down is when they perceive certain employees are held to a different standard. For example, your shop’s starting time is 8:00 a.m., but every day the same two employees arrive late. If you allow some employees to set their own rules, you are sure to have morale problems. Your best employees will eventually question your leadership if you don’t hold everyone accountable to the same standards. Personal Challenges Have you ever had a star employee who has performed at high levels, but suddenly seemed indifferent to his job and his coworkers? This employee may be going through personal or health issues. Maybe she is burned out between obligations at work and home. It’s best not to assume anything. Again, sit down with this person. Find out what’s going on. Think about this: are you approachable enough that your employees feel comfortable about telling you what is going on in their lives? While it’s hard to ignore employees who are underperforming, not recognizing those who are performing at consistently high levels daily can damage overall morale. Failing to recognize your best people will eventually demotivate them, leading to a reduction in their performance. Creating a shop environment with high performers takes a team concept with strong leadership. If you have employees not performing up to expectations, you need to ask yourself a few things: Are you doing all you can to establish those expectations that everyone must follow? Are you providing the right training for everyone? Are you having one-on-one employee meetings where you learn about your employee’s career goals? It’s also important to realize that no two people are alike. Everyone has different needs and wants, and no strategy works for everyone. Going the extra mile to know your employees will send the strongest message of all by communicating that you recognize them as individuals, not just workers. One thing worth mentioning: There will come a time when no matter what you do, there will be an employee who will not perform at the level you need. In this case, you’ll have to decide whether to tolerate or terminate. From my experience, to terminate for the sake of the team, and for the individual, may be the best choice. Let me leave you with this: Expecting high performance from others starts with you. Are you reaching your potential? Are you striving to improve and set high expectations for yourself? What you expect from others you should expect from yourself … and more. View full article

Oct. 30, 2023 Visit Us | Subscribe Top Stories GM Is Last Holdout as UAW Talks Drag On Over Retirement Costs More General Motors Co. workers walked off the job over the weekend after the automaker failed to follow its Detroit rivals in snagging a deal with the United Auto Workers to end the six-week strike. Stellantis NV, maker of the Jeep, Ram and Chrysler brands, reached a tentative agreement with the UAW on Saturday, which included the same 25% hourly pay raise plus cost-of-living allowances over the more-than-four-year contract included in a similar deal reached by Ford Motor Co. last week. Those agreements still need to be voted on by the companies’ union members. Now, GM remains the sole holdout. Source: Bloomberg UAW Leaders OK Ford Deal with $8B in Manufacturing Investment The UAW’s tentative agreement with Ford Motor Co. calls for the automaker to invest more than $8 billion in manufacturing investments, including $1.2 billion in Louisville, Ky., for assembly of a new electric vehicle. The deal also puts an EV battery plant Ford is building in Marshall, Mich., and an EV campus under construction in Tennessee under the national contract. The National UAW-Ford Council on Sunday approved the tentative agreement, sending it to members for ratification votes in the coming weeks. Source: Automotive News Leasing Returns Expected to Rise Then Plunge in ’24 Leasing returns in the U.S. are expected to rise over the next four quarters but then plummet in late 2024 as the industry reaches the three-year anniversary of inventory shortages. Experian predicts retail leasing returns will rise to 1.1 million in the second quarter of 2024 but then fall to only 640,000 by the end of that year. The decline is expected to continue through late 2025 to a low of 510,000. Source: Automotive News Japan's Slow Walk to EVs Starts to Look Wise Japan's automakers are world leaders in a host of powertrain technologies, from futuristic fuel cells and hyperefficient hybrids to traditional internal combustion systems. But there is still one gaping hole in their product plans: battery-electric vehicles. Taking a page from their efficient manufacturing philosophy of having parts arrive at factories only when needed, auto leaders here insist their EVs will also arrive "just in time." Source: Automotive News Ford, GM Push Back Spending on EVs Slowing demand for electric vehicles has prompted General Motors and Ford Motor Co. to postpone billions of dollars in investments as the automakers decide they don't yet need additional production capacity. The companies say they remain committed to an electric future and are not canceling future EVs or mid-decade profitability targets, even as they pull back on volume in the short term. GM and Honda also abandoned plans to co-develop a line of affordable EVs starting in 2027. Source: Automotive News Toyota Global Sales, Output Hit Record 5.6 Million Vehicles Toyota Motor Corp.’s global sales climbed 8.3% in April to September from a year earlier to a record 5,596,183 vehicles, putting the world’s biggest carmaker on track for another year of strong gains thanks to robust demand and improving supply conditions. Global production in the fiscal first half rose 10% to a record 5,738,126 units, including subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., the Japanese carmaker said Monday. Source: Bloomberg

As a business coach, I get to speak to a lot of other coaches and clients. One the more popular topics is on tech production: How to increase overall billed labor hours. While the tech must be accountable for his or her efficiency, many factors are at play here regarding overall production, for example: Skill level Training Available tools, the right equipment and information The speed of the service advisors building estimates Does the shop have workflow systems in place, and is it being managed AND (THIS IS THE ONE THAT I FOCUS ON FIRST) - Are all jobs being estimated correctly? Are the labor times adjusted downward to get the sale? is the labor for testing complicated drivability or electrical work too cheap? Does a shop rely too much on published labor times? This is an informal conclusion, but from my experience, a 15% to 20% labor improvement can come from paying more attention to how a job is built, and ensuring labor hours match the actual time spent on a job. YOUR THOUGHTS?

One thing you are correct about is that the shop has to be able to afford pay raises and your pay structure. As a former shop owner, and now a business coach, I did an informal survey with my fellow coaches. Entry levels techs and GS Techs are making from 18 to 25 per hour. B level range from 25 to 35, and A level techs range from mid 30's to over 50 per hour. HOWEVER, these rates are based on other factors. Some shops pay a lower base, and a tiered increase as techs produce certain billable hours. Others pay a guarantee, and a performance based bonus. There are many other pay plans, too much to list here. NOTE: Flat rate is not legal in many states. We need to keep this conversation going. The future of our industry relies on quality people. Money isn't everything, but a impressive pay package with benefits is important. In general, techs (and shop owners) have been underpaid for too long. Perhaps this will change.

First, Charlie, always great to hear from you. I agree with you 100%. Your advice is what I preach to clients. Getting back to basics is the best strategy to operating a sustainable business. Let me add one more thing: There is a lot of focus today on new customer acquisition. While I do understand the need for new customers, we all know that it's far easier to retain your existing customers than acquiring new ones. So, make sure you are taking care of the customer right in front of you, and book the next appointment!

Oh boy, I feel for this guy. But it sounds like he has not done a lot of the right things in his business, and now at a point of no return. He needs help to create an exit strategy.

You make a great point, and I agree with you. Going to get your car serviced and repaired is not like going out to dinner or a concert, etc. With those events, the consumer made a decision to spend money before they left their house. Plus, these are events that people look forward to, so it's a different mindset. With auto repair shops it is different. When I was in business, I defined an amazing customer experience by how people feel when they call us, book an appointment, drop off their car, and at car delivery. We need to deliver an experience that focuses on kindness, empathy and listening. We did that by just being nice, by the follow up phone call, the follow up thank you card, and by ensuring that every step of the customer process is not just a transaction, but an opportunity to create a relationship. We also made it point to find out things about the customer other than about their car - For example, their kid's name, their pet's name, their hobbies. And we talked about that as if we were friends. The bottom line is this, six months from now, the customer will not remember the Mass Air Flow Sensor we installed, but they will remember how they felt. I hope this makes sense.

From my sources, and speaking with shop owner friends and clients, most auto repair shops in the northeast are busy. However, car counts continue to slip as more and more motorists are extending their oil change intervals beyond the recommended interval from their repair shop. The uptick in business is coming from larger repair jobs, higher ARO, and increased labor rates; all positive signs. In addition, as the average vehicle age continues to increase, this will bring more repair opportunity to independent repair shops, which will keep those cars out of the dealer bays. How are auto repair shop doing in your area? How's your repair shop business?

With the average age of cars on the roads these days approaching 13 years, this should give us a big advantage, especially with new-car dealerships. However, I warn shop owners not to get complacent. While COVID appeared to be a blip on the economic radar for most auto repair shops, the aftermarket repair industry bounced back nicely, despite the issues with part availability and quality. As vehicles age, they need more attention. Make sure that you make every vehicle visit a time to educate your consumers, and make sure you focus on maintenance. While breakdown repairs may be an easy sell, there is no denying that selling preventive maintenance is more profitable, with less chances of comebacks. Most important, the benefits to the customers are obvious as you lower the total cost of vehicle ownership. A win for you and a win for your customers.

Yes, the transmission business, a lot like the collision business, it much different from the general repair model. However, I still believe that step # 3 can create song birds, if the overall customer experience was amazing. It's all about how the customer "feels" when they leave.

Nearly every car that leaves your auto repair shop today will need some sort of service or repair in the future. The question is, will your customers take their car back to you? In this blog, I will discuss three simple ways to increase your customer retention rate, which will also increase sales and profits. First, ensure that the entire customer experience is amazing; from scheduling the appointment, vehicle write-up, the sales process, and especially car delivery. A poor experience could result in a lost customer. Remember, an amazing customer experience tells the customer, “We want you back!” Second, spend time at car delivery reviewing all the work that was done that day. Make the customer feel good about the decisions they made regarding the repairs or services done that day. Discuss all future services, recommendations, and any deferred work. Engage in conversation and always look to build a relationship with your customers. Third, and the most important, make sure that your service advisors are informing all customers of their next service appointment, and book that appointment. This step is crucial. As a business coach, I get pushback on this from shop owners and service advisors stating that their customers don’t want to book the next appointment. This is nonsense. Your dentist books your next visit, and so do your pet groomer, your doctor, hairdressers, eye doctors, and HAVAC companies. In fact, I got a reminder call the other day from the company that cleans my fireplace chimney about my October 26th appointment. So, please, no excuses! The bottom line is this. One of the best ways to build a more profitable company is to pay attention to the customers right in front of you every day. Create an amazing experience each time, and make sure you perform the car delivery with such execution that it gives your customers a compelling reason to return to you.

This is a great conversation. Not all business models can support wait customers. When I started in 1980. I had a small 4 bay shop and we did a lot of breakdowns, which made it very difficult to cater to wait customers. However, when we purchased the property next door and rebuilt the shop to an 11 bay facility, I did allocate 2 bays to waiters. HOWEVER, I clearly defined what a Wait Customer is, and the process. For example, a Check Engine light is not a wait. A transmission problem or a brake problem is not a wait. With that said, if we had a regular customer that needed a State Inspection or an Oil Change, and we knew the history on that vehicle, we would schedule a wait time. We did limit the waits, but we also knew that we could provide that service in certain situations. One last thing: Every car got a MPI, and if something was found, we would shuttle the customer home. You don't want any customer waiting hours for a repair or service. In some cases, we would reschedule and follow up to ensure we get the car back.

All great points! One thing, honesty is something to be proud of, and it can be a profitable strategy.

A recent article in Auto Service World finds that parents still continue to push their kids away from the trades. With the future of our industry at stake, we need to take the responsibility to get promote our industry. If not us? Then who? We need to raise the bar, increase of profits, offer people great wages, great benefits and a career they can be proud of. Am I a dreamer, or a visionary?