Joe Marconi

28 minutes ago, Charlie said:

All five of our shops are feeling the slowdown which came on at the start of October. Frankly, I welcome the drop in car count; it causes us to focus on the fundamentals in order to stay busy, think of it as a chance to sharpen the saw. When times are flush (April through September) we tend to get sloppy, we limit the number of waiters, and sometimes fail to follow through with our 'No Process.' I have always felt car count changes with the outside temperature, more so than Back to School, the Holidays, or Election cycles. When it's hot in Virginia, cars break and AC repairs become the priority. When it's cold, cars break and stressed electrical systems surface. 

My advice to anyone who may be worried about the drop in CC, is to return to the basics, listen to your recorded phone calls, engage with the community and soon we will have a cold blast that makes the phone ring. Take this time to get your team to be their best. 

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! 

15 hours ago, Transmission Repair said:

Because I'm retired, the transmission shop I have the most contact with was once a sales & management client with me for about a year.  Because of his inability to hire a competent transmission rebuilding tech, he has pivoted his business into more G/R than a transmission repair shop.  The phone has a lot more activity, causing more R.O.s, and smaller AROs.  In addition to supply chain issues and inferior parts quality, he has the "triple whammy" of failure to hire competent technicians.  Needless to say, his business is suffering at a time when he should be retiring.  He's 10 years older than me.

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. 

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. 

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?  

The technician shortage is far from over. I don't believe that this problem will be easily solved.  One thing that I have been hearing is that the techs that are looking for a new company to work for are asking for a lot more money.  

My questions are: Are you willing to pay techs what they want, and what about those techs that are working for you now?  

There is a side of me that says, we do need to pay all techs, on average, higher wages. But where does the money come from? 

Women in Auto Care awarded more than $410,000 in cash and tool kit scholarships this year to deserving high school and post-secondary female students. 

For more information and to help promote the auto industry, go to: 

A great conversation about family in the business. Great comments and advice from Charlie and from Paul. Worth the watch for sure! 

59 minutes ago, Transmission Repair said:

Black Hills Tire of Rapid City, South Dakota is approaching training students even earlier than most.  They are holding Camp DRIVE, a two-day automotive camp for kids aged 12 through 15, which was launched to teach kids about automotive maintenance and to meet professionals in the field.   Check out the article at https://www.ratchetandwrench.com/shop-life/repairer-profiles/article/33012914/camp-drive-i-wanna-do-this-when-i-grow-up

A great idea!

This is such an important topic. I have said this years ago, we can solve the tech shortage if all the shops commit to an apprenticeship program. There is no one that will come to our rescue. It must come from within. 

And also, we need to continue to improve the image, the look and feel, the pay and benefits package, and the leadership skills of the independent auto repair shop industry.

Sorry, I'll jump off my soap box now, but this is such an important topic! 

On 10/9/2023 at 4:35 PM, Transmission Repair said:

I've always believed prices are like a 1-way check valve; they go up but never come down.  The problem I've seen with the shops I've worked with the most is improper pricing.  They don't keep current pricing and they don't use a markup matrix.  The result of these two issues is somewhere between leaving money at the counter and giving work away.  In the transmission business, prices change every day, which means checking the price on every part, every invoice.  Auto parts in general also have different pricing levels that can change based on the invoice.  A shop pays Level 4 one day and pay Level 3 the next day.  Watching each invoice is a tiresome job that must be done every day.

Another pricing strategy that causes problems is fear; the fear of asking for the money.  Never let fear enter into a pricing issue.  The antidote to fear is confidence.  You have to have confidence in your pricing structure.  Confidence comes from believing.  You have to believe in your pricing to have confidence.  The bottom line may seem like a lot, but if you believe in your pricing structure, it will only seem like the fairest price.  Fair to you, your employees, and your customers.

Great points Larry! A parts matrix has to be tweaked, as price costs increase, you need to move your tables up too. Great point.  And believing in yourself and your prices has ALWAYS been an issue. We need to value what we do first, before we communicate that value to the consumer!

A great strategy and important for the future of the aftermarket independent repair shops. Also, hosting car care clinics is also a great strategy. I held car care clinics for teens, woman's groups, seniors and even DIYers! It's amazing how people crave for information from a pro. 

4 minutes ago, Transmission Repair said:

Yeah, the inferior part problem is as bad as you're hearing.  It's not just automotive parts, either.  It's all over, in different industries.  Everybody tries to save money, and in the end, it bites them in the ass.

I recently saw a news story where 4 airlines grounded their 737s due to "fraudulent parts."  Instead of buying engine parts from the OE (GE) they bought them from somebody in the UK.  As it turns out, the FAA certification papers that come with each part were bogus.  Some of the parts were critical engine parts. (turbine fan blades) Check it out...

4:21

 

Oh man, this is a serious issue. And not to point to profit only, but what about comebacks and warranty issues? 

Two weeks ago I was the Elite Fly with the Eagles, a three days event where I and and another Elite business coach, present topics and hold discussions on how to operate and grow your auto repair shops. 

A common concern from many of the shop owners and managers attending the part quality. This has been a concern from the days of COVID, and still exists. 

MY QUESTION: What are you seeing with part quality? Is it as bad as what I am hearing?  

All great points. We need to do all we can to attract and retain quality employees. 

22 hours ago, Transmission Repair said:

Joe, all of this is very true, especially about employers being underpaid.  I could never pay top wages until the shop as a sole & separate entity made a decent profit.  After that, I was able to pay $25-$50 per clock hour, not flagged hour.  ($1,000-$2,000/wk.) All my guys (except the manager) punched a time clock.

Happy to hear that you agree. I would like to hear from other shop owners. Are you making the income you need, deserve, and expect from your auto repair shop business? 

22 hours ago, Transmission Repair said:

Yeah, you're right Joe.  We are a transmission shop and RARELY had a wait customer.  Perhaps 2-3 waiters a week, rarely more.  We wanted 10-year-old and newer vehicles for obvious reasons.

You had an advantage due to your business model, great point!

When I was in business, I knew the value of Wait Customers. BUT, I clearly defined what that meant.  

With vehicle visits way down to what it was, we need to be careful not to have too many customers waiting for service. You need the time to inspect the vehicle and time to perform the work you want to sell.

I had a rule:  A wait customer is a low mileage vehicle, scheduled for a basic oil change service or tire rotation, or a vehicle that has been recently in for a major service or repair, and now in for a re-inspection. 

Additionally, even though I had a large facility, 11 bays in my main location, I would only schedule two 8am waits and two 1pm waits.  Our car counts were 100 plus per week. 

There are some shops that do not allow any wait customers. I think this may be difficult for general repair shop model. 

Your thoughts, opinions. 

I hear it in podcasts, I read it in magazines and it's all over the news - Employees need to earn more money.  Well, I agree, especially in the auto industry.  For too long technicians and all other employees in the typical auto repair shop have been under valued and under paid. 

HOWEVER, too many shop owners have not be compensated properly for what they do either! 

The problem: Too many shop owners are not as profitable enough, they don't always underhand their numbers, shop production is too low and their prices structure is not adequate- all leading to shop owners not paying themselves what they deserve. 

MY OPINION - shop owners need to earn more in order to pay their employees more.

Challenge me, agree with me, add your comments. This is an important topic if we are to attract and retain employees! 

13 hours ago, Transmission Repair said:

No inflation easing here in Salt Lake City suburb of Draper.  It's just as expensive as always.

I agree, in spite of the what the news tells us, prices these days are higher than ever, and the cost of living keeps creeping up. 

13 hours ago, Transmission Repair said:

 

The shortage of workers in the trades is a complex issue with several contributing factors. Here are a few reasons why the trades may struggle to find workers:

 

1. Perception: Over the years, there has been a societal shift towards placing greater emphasis on obtaining a college degree rather than pursuing a trade. As a result, many young people may not consider the trades as a viable career option, leading to a smaller pool of potential workers.

 

2. Skills Gap: The trades often require specialized skills and technical knowledge. However, due to the lack of emphasis on vocational training in some educational systems, there is a gap between the skills required for these jobs and the skills possessed by potential workers. This disconnect can make it challenging for employers to find qualified candidates.

 

3. Aging Workforce: Many skilled tradespeople are nearing retirement age, and there may not be enough new workers entering the trades to replace them. This demographic shift exacerbates the shortage and further highlights the need for attracting and training new talent.

 

4. Perception of Job Stability: There may be a perception that jobs in the trades are less stable or have limited opportunities for career growth. This perception can deter individuals from pursuing careers in the trades, leading to a smaller labor pool. Addressing these challenges requires a multi-faceted approach. It involves raising awareness about the benefits and opportunities within the trades, promoting vocational training and apprenticeship programs, and bridging the gap between industry needs and educational curricula. Additionally, offering competitive salaries, benefits, and career advancement opportunities can help attract and retain workers in the trades.

This is a great detailed list of the key issues we face these days!

1 hour ago, Hands On said:

I never felt it was worth it. I did not want to lose all I have built over some tax cheating. There was a fellow one town over from me that started at the exact same time I did. The last I heard he was shut down and kicked out and owed the IRS over 60k in 941 taxes. I am still going strong.

 I agree, it is not worth it.  Live your life by ethics, integrity and morals. 

According to economic reports, inflation has eased in 2023, which is largely based on commodity items and certain other goods. But, does this mean auto repair shops should lower prices? Sounds crazy? It is.

I am making this post to remind everyone that auto repair shops in general have been too cheap for too long. Additionally, repair shop owners must continue to track their expenses and ensure that their labor rate and pricing is where it needs to be. 

Shop owners deserve a great income for several reasons: 

• A business must turn a profit
• Profit allows a business to grow
• Profit allows the business to pay their employees the wage they earn and deserve.
• Profitable auto repair shops help with attracting and retaining employees.