Joe Marconi

NEWS BREAK: Workers at a Mavis Discount Tire shop falsified records to make it look as if they completed brake work on a limousine before it crashed and killed 20 in Schoharie, New York, last year, when in actuality the work was never performed, according to the shop's former manager. Below is a link to the article: https://www.usatoday.com/story/news/2019/10/09/new-york-limo-crash-mavis-discount-tire-shop-falsified-brake-records/3920945002/

Technicians have been working very hard during tough times the past few months. And I am not just referring to maintaining production levels. The emotional strain is also a factor. They have been true heroes and have not let up with their commitment to their jobs, the companies they work for and the people they help each day. We need to recognize what they do and say thank you to our techs and let them know how much we appreciate what they do each and every day.

I am not one to get political, and there are people that really need help in these times. Let me be clear about that. With that said, the added $600 in most cases has caused more of an incentive NOT to work. I don't know the answer on how to distinguish who clarifies for extra help, but what I do know is that when people can make more money for sitting at home, it takes away the human spirit to go out and make a difference every day through hard work and community involvement. It also does not sit well with so many of the essential workers that have worked through the virus crisis, and put themselves in harms way to keep American moving. How do feel about this? I know it's controversial. Let's be open, honest and civil.

Due to COVID-19, many repair shops experienced a severe economic downturn, some with a drop in sales over 50%. Without a strong cash reserve and/or SBA funding help, many shops would have gone under. My 40 years as a shop owner has taught me to always have a cash reserve. However, never would I have ever imagined a downturn like the one with COVID-19. So, how do we plan for the next financial crisis. And, it will happen. Perhaps not as bad as the the virus crisis, but it will happen. Here are a few things to consider: Have a separate, and hard to access, cash reserve bank account that has least two months of expenses. Also, secure a line of credit for at least one to two months of expenses. Also, know your numbers, keep payroll in line, and make sure your prices are fair to you too, not just your customers. Keep in good standing with all your vendors and keep your credit score high! The bottom line here, is truly the bottom line. To weather the next financial downturn, you need a strong balance sheet and net profit to the bottom line. What other strategies are you considering or implementing?

Thank you. Sometimes we second guess ourselves.

In New York, face masks are required. And most people are wearing them. It is not an issue for us, since 99% of customer come in with a mask.

Auto repair shops in New York are doing ok, some are busy and many are just about normal. And, hard to believe, but some shops are doing quite well. This is amazing since it was only a few months ago that many auto repair shops experienced a drop of more than 60% on business and many new car dealerships actaully closed down. Traffic in my area (Putnam County NY-about 45 minutes north of NYC) appears to be back to normal too. However, I am concerned that many businesses in the NYC area will not go back to normal for some time, and this may have an impact on the rest of the State.

Auto repair shops in New York are doing ok, some are busy and many are just about normal. And, hard to believe, but some shops are doing quite well. This is amazing since it was only a few months ago that many auto repair shops experienced a drop of more than 60% on business and many new car dealerships actaully closed down. Traffic in my area (Putnam County NY-about 45 minutes north of NYC) appears to be back to normal too. However, I am concerned that many businesses in the NYC area will not go back to normal for some time, and this may have an impact on the rest of the State.

Most of are familiar or use the more popular Automotive Business Management systems, such as MItchell 1 or RO Writer. However, there is a lot of concern among many shop owners that these companies in particular are not meeting the needs for the modern automotive repair shop. What system do you use and/or what systems have you checked into that look promising?

As a result of COVID-19, most business realize the need to enhance their crisis planning. For example, I have always set aside funds to offset any downturn, but my worst-case scenario fund accounted for a 25% decline in business. That was not enough. In addition, securing a line of credit, to only be used in a economic crisis is another way to shore up a business financially. What changes have you made that will prepare your business for the next crisis?

As a result of COVID-19, we are seeing more and more businesses install plastic shields at their service and receptionist counters and desks. What are your thoughts. Will you install the shield, have done it or is it a no?

Thanks Frank for the feedback. We do think a lot a like!

No, not yet. We have not seen one R1234 problem yet. We still do a ton of R134 services, and repairs.

We all know the expression, "The Customer is always right." But is that really true? The other day a customer walked over to my tech and starting to scream at him for failing the NY State annual inspection. I intervened and told the customer to stop and get away from my employee. I also told him that I would not tolerate anyone yelling and screaming at one of my employees. Should I have been more "reserved" and try to defuse the situation? Should I have "politely" listened to the customer's issue? Have you been in this position and what would you do?

I know none of us wants to hear this, but there will be a next crisis of some sort. I have lived through many downturns in my 40 years in business, the COVID-19 was the worst. But, out of every crisis comes lessons to be learned. So create your Crisis Plan today. Start by understanding your numbers and knowing your breakeven. Then add to your breakeven a percentage of profit you want to earn. Equally important is creating a cash reserve in a dedicated bank account that will be used only in a severe emergency. Set your financial goals and stick to them! Often overlook is your staff. Assemble the best team around you. This is a crucial part to ensure your future business sucess. Lower your debt, get your credit rating up and maintain a good standing with all vendors. Lastly, talk to your bank about a line of credit that can remain inactive until you need to use it. What other key things can we all share to help us through the next crisis?

For R134 we charge a flat fee of $189.00 (includes the R134) for passenger cars and small SUV's. For Pickups, large SUV's and dual air, we charge $229.00. We also inform every customer with a recharge that there is a leak, and they must return at least twice for us to check for leaks, which is included in the intitial price. R1234 is a different ball game. Shops in my area (New York) are getting up to $550 for a recharge with the R1234

As part of our debt reduction, I revamped all of our usual marketing and advertising and put those dollars into customer service and social media. For example, we ramped up our shuttle pickup and delivery service, extended our hours of service, made sure we spend a lot of time with each customer and made sure we called as many customers as possible. We also stepped up our meet and greet process and made sure will followed up with customer after the repair. Lastly, we increased our social media posts and increases ads and boosting. This has made a huge impact on our customer and already starting to pay dividends. What changes have you made to your marketing strategy since the Virus Crisis hit?

I wonder what the long term effects will be wtih some businesses. Many resturants are still not operating at full customer capacity and many other businesses are taking a hit. While there are many positive economic signs, will those businesses that are still impacted by the virus have an effect on the entire economy? I suggest a very conserative strategy at this point, build a cash reserve, pay down debt as best you can and do not incurr new debt. If nothing bad happens, you will still be in a better economic position. Your thoughts?

With the COVID-19 situation, many shop owners of retirement age may be putting thier retirement plans on hold. I get this. It makes sense in many cases. But, please think about you and your family. Many shop owners have a 30, 40, even 50-year plus history in the auto business, with most of those years owning and running a shop. If it's possible, perhaps succession plan with the right person, or hiring a general manager to run your shop is a possibility. Perhaps a family member? The key thing is to have a secure business that, if you do plan on holding on to it, will bring you an income with stress-free time away from the shop, and back to your family. Your plans, thoughts, opinions?