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Joe Marconi

Management
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Blog Entries posted by Joe Marconi

  1. Joe Marconi
    The other day one of my techs was replacing front brake pads and rotors on an older Subaru. The caliper bracket bolts were seized and one of them snapped off. This is a common problem and we are well aware of it. We try our best with rust busters and heat, but sometimes nothing works. The tech drilled out the broken bolt and finished the brake job. No problem, right?
     
    Here’s the problem, who pays for it? Me,or the customer? I asked the tech if he informed the service writer. He said he did. I asked the service writer if he told the customer and up-sold the repair. The writer told me it was a hard sell just to sell the brakes and felt he could not approach the customer. I informed my service writer that I did not buy the car, build the car or break the car.
     
    I did something that maybe I should not have done; I went into the customer waiting room myself and explained the situation and sold the caliper bracket repair.
     
    My issue is this. Are they times when we can't charge and we just have to eat it? I say yes and no. That depends on the situation. I also think that this particular writer needs more training in customer relations.
     
    What do you think? Charge or not charge? What policy do you have?
  3. Joe Marconi
    I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
    Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
    Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
    Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
    Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  6. Joe Marconi
    You’re out to dinner with a friend. The service was horrible, the meal took forever to get to your table, and it was not what you expected. You get the check, pay the bill, and start heading for the door. At the door is a woman, a staff member, holding it open and saying in a monotone voice, “How was everything?” You pause for a second, look her in the eyes, and reply, “Everything was fine, thank you.”  As you walk to your car, you turn to your friend and say, “That’s the last time I go to that restaurant!”
    It's often said that the kiss of death for any business is what your customers are not telling you. Most people avoid confrontation. If they don’t like the service, the price, or the product, many consumers will not say anything. They would rather leave it alone and move on and try another company.
    Think about your auto repair shop. Think about your customers. How many of your customers, after having a less-than-perfect experience, will not say a word to you or your staff? How many of these customers will come back to you? How many will not?
    It’s important to understand that your customers are not only judging you by comparing you to your competition but also by the combined experiences of all companies and the interactions they come into contact with daily. And most of those experiences are not good. So, it would be in your best interest to create an experience that tells your customers, “We care about you, and we want you back!”
    There are two things to consider regarding customer service and ensuring that you have met your customer’s expectations and created a memorable experience. First, when someone does give you critical feedback or post a negative review, use that feedback to learn and improve. How the customers view their experience may not be aligned with what you believe you have provided, but their opinion is their reality, and that’s all that matters.
    The other thing to consider is having open and honest discussions with your employees, especially service advisors, to understand what excellent customer service is like, and try to look at that experience through the eyes of the consumer. This may not be easy and will take training, but it is essential.
    Remember, it is the customer that ultimately determines what an amazing experience looks like.
  7. Joe Marconi
    A good customer called me the other day to let me know that he has concerns regarding the quality of our work. Last week we installed an exhaust system on his Maxima and two days later it sounded like the muffler had fallen off. There was so much noise he was afraid to drive the car. We went to his house to pick it up. We found that the baffles had broken apart in the brand new muffler we just installed.
     
    About two month ago this same customer had to bring the Maxima back due to a grinding noise from the brakes. We had done front brake pads and rotors a week prior. We replaced the defective pads along with a new set of rotors at no charge and everything was fine, or so we thought. With each incident we did a follow up call to insure that there were no additional issues.
     
    Apparently, these two situations did not sit well with this customer. During his phone call he reminded me that he was a loyal customer and that our customer service is exceptional, always going above and beyond the norm. However, he went on to say, "Exceptional customer service can’t make up for the quality of the repairs." He was very candid and honest. He said he would not “jump ship”, but he has concerns, and that if there are any more quality issues, he will look to go elsewhere. He even mentioned the dealer as an alternative to us.
     
    I did not make any excuses, only apologized and assured him that we will do our due diligence to find the root cause of these issues. I thanked him for calling me and let him know that most people would not make this call, and how we welcome the opportunity to know how our customers feel.
     
    This situation was a real eye-opener for me. I always believed that exceptional service can save you when things go wrong, but obviously this is not necessarily so. There is no doubt that due to our “above and beyond” customer service culture, we are able to sustain most negative cases. But, I guess even the best customer service can’t save a restaurant if the food is continuously bad.
     
    I now need to take a more proactive approach with respect to where I purchase my parts. We also need to track every part issue and see if there are any trends or patterns to the failures. We will bring it up to the parts supplier, but if the parts supplier makes no effort to fix the issue, I will have to seek other companies to do business with.
     
    In this business climate, too many things can go wrong. We, as business people, need to understand the perspective of the customer. And, no matter how much we preach customer service, the quality of our work is the signature of our brand and our company.
  9. Joe Marconi
    Herb Kelleher, the co-founder of Southwest Airlines, was once asked, “Who’s more important, your customers or your employees? Thinking back on what his mother had taught him, Kelleher responded, “My mother taught me that your employees come first. If you treat them well, then they treat the customers well, and that means your customers come back and your shareholders are happy."
    Shop owners have been taught that the customer is always right and that their needs supersede all other needs. Anyone in business dealing with people every day knows that this paradigm, in reality, doesn’t always hold up.
    In business, you need customers; without them, you don’t have a business. However, without employees, you don’t have a business either. It’s the old “chicken or the egg” question.  
    Here’s my view on this; I agree with Herb Keller that employees come first.  But I take it one step further. You need a team of superstar employees who share your culture and value the team concept. You need people that love what they do and want to help others.  Then, as their leader, you need to treat your employees well. Why? The way you treat your employees is how they will treat your customers.
  11. Joe Marconi
    Contrary to what many people believe, having a perfect 5-star Google review rating is not something a business should expect to achieve. After all, no company is perfect. And Google realizes this too.
    There’s no denying that consumers look at online reviews and base part of their buying decision on these reviews.  A great online review rating on Google is essential to draw traffic to your website and your business.  However, it’s better to have a mix of great and not-so-great reviews.
    To consumers, a perfect 5-star rating looks suspicious; they expect some negative feedback.  While most business owners get distraught over a negative review, how a business responds to the review is what’s most important.
    For automotive repair shops, a rating of 4.4 to 4.8 is probably what you should strive for. I am not suggesting that you don’t provide world-class service and quality repairs.  However, the reality is that you are not going to please everyone.
    Another thing to consider is that negative reviews don’t hurt a business as badly as we think. Rather than worrying about negative reviews, shop owners need to focus on engaging and replying to all customers who leave reviews, which tells your customers, and Google, that you care about what your customers are saying. Responding to all reviews will also help your search engine ranking.
    The next time you get a negative review, remember that you will never please everyone. Use the negative feedback as an opportunity to learn from the feedback and positively promote your business.
  12. Joe Marconi
    The summer is in full swing, which means your shop is probably at its busiest. Summer also means it’s vacation season. You’ve probably done a great job scheduling your employee’s vacations, but what about yourself? Are you planning time off too?
    Shop owners are among the hardest-working people on the planet. This is a quality to be admired.  However, everyone needs time away from their businesses to spend with friends and family.
    Balancing work with life is your responsibility to yourself and your family. Your business must never consume your life; it must enrich it. Time goes by too quickly; trust me on this.
    There are also significant advantages to spending time away from your business. You clear your mind of the clutter that occurs from the day-to-day grind, you give your body a chance to recuperate, and most importantly, you’ll build memories with your loved ones.
    When you return to work, you will be more energized, with a fresh outlook on how to move your business forward. Essentially, the right balance between life and work will help you become more effective, making you more successful.
    I’ll leave you with this quote: “No one on their deathbed ever said, I wish I spent more time at work.”
  13. Joe Marconi

    Why Your Employees May be Looking to Quit

    By Joe Marconi,


    Employee Retention
    I don’t think there’s an auto repair shop in the country these days not looking to hire. At the top of the list is finding qualified technicians. However, while auto repair shop owners may be on the hunt for new workers, they shouldn’t forget the people they employ now.
    A recent Gallup poll found that while job seekers consider pay compensation and benefits package their primary consideration, it isn’t why many employees feel disengaged at work and may be looking to quit.
    A recent Gallup poll revealed these three main reasons why employees are disengaged at work:
    Not seeing opportunities for development Not feeling connected to the company’s purpose Not having strong relationships at work Shop owners, study the above bullet points and think about what you can do to get ahead of any employee who feels disengaged at work and may be looking over the fence for greener grass. Create a work environment where people feel wanted, praised, and recognized for their work. 
    Make sure your employees feel connected to the company’s goals, vision, purpose, and mission.  Lastly, build a career path for your employees that combines the needs of the business with the future goals of the individual.
    What it comes down to is culture.  A strong workplace environment with high morale and the right culture will send a strong message to your employees and go a long way in helping to retain key employees.  
  19. Joe Marconi
    A recent study, done by Harvard Business School, concluded that the real problem with attracting and retaining employees has more to do with the workplace environment, not pay or benefits. While the study did find that an adequate pay plan and offering an attractive benefits package did help with recruiting and retention, it’s not enough to satisfy the needs of employees, especially those of front-line workers.
    The study also stated that in 2021, many companies were convinced that giving raises, sign-on bonuses, and other perks would solve the worker shortage problem and prevent people from quitting. However, this strategy did not work. So, what does work regarding attracting quality people and keeping them employed?
    Essentially, it all comes down to the culture of your company.  Management: do all it can to consider the individual needs of your employees. Your employees want to feel that they have a voice, that their opinion counts, and that their role in your company is both respected and recognized. Yes, pay and a great benefits package will go a long way toward making your employees feel secure, but that’s only financial security. People want more than money.
    To attract and keep top talent requires creating a company that people feel proud to work for. You need to reach the hearts and minds of your employees. Become a leader that people are enthusiastic about working for. You want your employees bragging to their friends and family that your shop is a great place to work!
    Step one to attracting and retaining quality employees: Create an amazing workplace environment for your employees!  Trust me, happy employees make happy shop owners too!









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