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Joe Marconi

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Blog Entries posted by Joe Marconi

  1. Joe Marconi
    In order for the expansion project to be successful, we need to increase revenue. With an additional 4 bays, we will have the opportunity to service more vehicles in a given day, but opportunity alone does not pay the bills. Filling those bays each day will be the challenge.
     
    I have put together a plan that will increase car counts by increasing our exposure in the community and by providing a while-you-wait service program. We have begun TV advertising the start of the summer and have already realized positive results. We made a decision to decrease all print ads and increase our direct mail advertising to existing customers and prospect customers. We spent months getting all our advertising in order: creating a central theme, logo and artwork. It’s important to be being consistent with our message, creating our brand and value proposition.
     
    Our “Say Yes” program has been a huge success and will be our platform to launch the new facility. The “Say Yes” program simply means will never say no to a customer and will make attempt to accommodate the customer on their terms. I know what your thinking, “Is he crazy, have the customer dictate the schedule?” All I can tell you is that it works. Our “Say Yes” policy has increased our car counts and gross sales. Yes, it was difficult in the beginning and our techs did revolt. But after they saw an increase in productivity pay, they quickly changed their minds.
     
    We also plan on having radio ads and expand our exposure on the Internet, using Google and Yahoo. In addition to our paper newsletter, we started a monthly email newsletter, which is sent to all customers and all businesses the area. Email programs are extremely cost effective and can be launched at a moments notice.
     
    The last piece of the plan involves teamwork. We have created in-house customer training seminars to reinforce the value of customer service to all employees. Marketing starts and ends at the front counter. The best brake job in the world means nothing if the service you provide is not world-class.
     
    Next, I will share how to organize a large project.
     
    Stay tuned!
  2. Joe Marconi
    After working for more than 2 years, we finally have all the approvals for our expansion project. My business plan has been submitted to the bank and hope to hear from them soon. Our next step is to have the building designed approved, which we do not anticipate a problem.
     
    We now have 6 bays and will be adding four more bays, which will be a stand alone facility. This facility will accommodate all our while you wait customers and light service work. The repair work and bigger jobs will be done in the original 6 bay facility.
     
    A lot of work went into this project (many sleepless nights) to get to this point and it's not over yet. We broke ground last month and looking at 6-10 months for completion.
     
    I have to admit, creating a business plan and new model was not easy and out-of-my-comfort zone. It's like starting a new business. It's both fun and scary!
     
    I will make periodic updates as the project progresses and will share the step by step process needed to build and create something new.
     
    Please contact me with comments. I will share the experience with all.
     
    Stay Tuned!
  3. Joe Marconi
    Our building was approved by the Architectural Review Board last week, August 5, 2008. This is the final step in obtaining the actual building permit. We actually started in June demolishing the old building which will be replaced by the new 4 bay facility. As stated in earlier entries, this building will add 4 bays to our existing 6. The new 4-bay building will be a separate structure where all our quick, while-you-service will be performed. Our existing 6 bay facility will be our actual repair shop where larger and long term jobs will be performed.
     
    Once we have the actual building permit (which we should receive this week), the construction process will progress at a steadier pace. Our plan at this point is to get the building up and closed in by the winter. The interior will be finished during the winter months with a projected opening date of March 31, 2009.
     
    Stayed tuned!
  4. Joe Marconi
    Some people ask me why I have taken on a project of this size in this economy. With the downturn in business, why not wait until things get better? Other shop owners question my sanity. They tell me; “don’t you have enough problems running the business you have already’? Why do you want more headaches?
     
    Well the truth is, I didn’t know the economy was headed into a downward spiral. And even if I did know, would it be reason not to expand? And is growing a business adding more headaches?
     
    Right after I got my approval from the town planning board last February, my shop foreman, lead tech and service advisor came to me and urged me to wait on this project because of the economy and the rise in gas prices. I told them absolutely not. I assured them that I have done my homework and did the math. I told them this would work. It will take hard work and years to see a profit, but when this expansion is complete it will be the largest and best-looking state of the art facility in the area.
     
    I also told thanked my crew for their concern and understood that they were fearful of their futures also. But I told them that without risk there is no gain. I reviewed with them the reasons for the expansion: the parking issue, the fact that we have outgrown our current facility, the fact that we own a building next door that is in such disrepair that its mere appearance hurts us and that just doing nothing would be wrong. By demolishing this building and erecting a new building with a brand new large parking lot would be good for business. The project also makes economic sense. It will increase the value of the property and makes the property and buildings more marketable.
     
    There will always be people who will think you are crazy. One of my tool vendors actually advised me against expanding because he felt I would be creating a business too large to sell. Too large to sell? Do you think Donald Trump ever felt that way? Or Bill Gates? Or Warren Buffet? I am not putting myself in their company, but that tool vendor is crazy, not me!
     
    My advice? Chase your dreams. Walt Disney lived by this creed and look at the empire he built. Don’t settle for average. Anyone can be average. Push yourself to keep growing and expanding. In business, if you’re not growing, you’re dieing!
     
    Stay tuned!
  5. Joe Marconi
    Now that we are close enough to pick a date for the grand opening, we need to start the promotion process and make plans for the day of the grand opening. We need to jump start this business with a big splash in the community. Having momentum right out of the gate will be important to the success of the project.
     
    To help promote the business I have greatly increased our advertising and marketing. Prior to this project the only advertising I did was in the local yellow books, sport sponsorships and ads with local charitable organizations. I concentrated mainly with my existing customer base through newsletters, emails, service reminder cards, promotional flyers and specials. In order to increase market share, we need to expand our horizons.
     
    We purchased mailing lists and started a post card campaign introducing our company to people who are not our customers. We target a five-mile radius from our shop. We also use a company to send offerings to all new residents in our area and we are part of the local welcome wagon organization.
     
    Last spring we shot a TV commercial and started airing the commercial the start of the summer. This has been a great success and is more affordable than you might think. We just shot a new commercial last month, which will feature the new facility.
     
    In January we started with radio. It’s too early to tell how affective this will be, but customers and friends tell us they hear us. And if they are hearing us, others are too.
     
    We hired a press agent to help us with getting some free press in all the local newspapers. It’s amazing how newspapers like to promote local businesses. I convinced my bank to feature us in their newsletter. This was a good move. I had a new customer just the other day that walked in for service because of that article.
     
    Six weeks prior to the grand opening we will start to invite people to the event. We will invite local politicians, bank officials, local businesses, local Chamber of commerce, all the people involved with the construction and, of course, our customers.
     
    We will also hold a series of consumer clinics as a way to showcase the new facility. We will use the clinics as fundraisers for local charities. This is great end around marketing.
     
    The day of the grand opening will be a daylong event. We will have food, door prizes and other products to give away. We will make sure that we obtain names and addresses for all who attend. We will cap off the day with a ribbon cutting ceremony and will drive the first car onto the first lift for an oil change. We will ask selected people to say a few words and I will also present a speech.
     
    Promotion is key. I want to cause a lot of excitement in the community.
     
    Stay tuned!
  6. 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!
  7. Joe Marconi
    There’s an expression that states, “You are who you associate with”. I have learned from this expansion project that this is brutally true. In order to grow and achieve the best for yourself in life you need to associate with people who share the same dreams, goals and aspirations. It’s amazing how many business people, including other shop owners, question the rationale behind my desire to grow my business. Maybe it’s a touch of jealousy? On the flip side, it’s remarkable how many customers wish me the best of luck and are behind me 100 percent.
     
    Then, there are the rumors. The gossip that got back to me is actually funny and sad at the same time. People told me that they heard that a major parts company was backing me. Others told me that they heard the only way I could accomplish this expansion was by charging astronomical prices for years past and by paying my people dirt-cheap. The best story is that I am somehow tied to organized crime. While I do admit that I grew up in the Bronx and of Italian decent, this is laughable. I don’t think Tony Soprano would be interested in my auto repair shop in update New York.
     
    I guess what really hurts are the comments from shop owners I have known for years that throw digs my way. Is it that hard to believe that a shop owner, of my caliber, take on a project of this size? Is this too far fetched? Maybe they are reacting to their own inabilities.
     
    The truth is that when I stand back a look at my project, it IS hard to believe that I’m actually doing this. It’s scary and things can go really wrong in a hurry. But the thrill of doing something like this is incredible. I will end this with another saying, “It is better to have tried and fail, than to have never tried at all”.
  8. Joe Marconi
    In business, if your not growing you’re dieing. This may be harsh, but true. All companies need to grow to survive. Whether you have 2 bays or 30, it doesn’t matter.
     
    For the first five in business I grew from nothing, so any growth was positive. After eight years my sales hit a plateau and hard times followed soon after. By my tenth year, I was nearly broke. It took me an additional 2 years to realize that although I could fix cars I could not fix my business. My skills were all mechanical. I needed to learn a new set of skills: The skills of business. It took an additional 2 years to create a plan that would free me from the hole I dug for myself.
     
    By 1994, I created my first business plan. I made major changes to the business and started watching the numbers of the business. I increase the staff to take on duties that I once performed: Every position from lead tech, service advisor, janitor, office manager, shop foreman, receptionist and just about every other position. I needed to give up control of the daily operations in order to gain control of the business.
     
    Changes were made in areas of marketing, branding and advertising. We launched programs that targeted our existing customers and reached out to prospective customers. We experimented with different forms of advertising: some worked, a lot did not. But, you will never know what works until you try. Today, our marketing and advertising is focused on growth.
     
    Once we made the decision to increase the business from 6 bays to 10, we ran the numbers to see what sales we would need to generate the income needed to pay for the expansion and return a profit on the investment. We also learned how many techs will be needed, the number of service advisors and support staff.
     
    Everything is on paper in a detailed business plan. Comprehensive strategy and scenarios were also written to simulate real life conditions. In-house training will be a key component. We compare to this to a football team or baseball team where all players are working in unison toward a common goal.
     
    Growth in business is determined by you particular needs, abilities and desires. All that matters it that you grow. You don’t have to achieve the status of Disney World or Trump Enterprises to be successful.
     
    Everything starts with a plan. And a plan is written. If your goals, dreams and aspirations are all in your head, there’re in the wrong place.
     
    Stay tuned!
  9. Joe Marconi
    The construction of a new building involves a coordinated effort among many people and all must pull their weight in the right direction. Without teamwork and precise harmonization, things start to fall apart. And the buck stops with ME. No one else will share the blame when things go wrong. It’s a lot like running your business; every day you make tough decision that may not be favorable to everyone.
     
    This process of expanding the business has taught me to make those tough decisions based upon what is best for the company. You need to analyze what is best for the project to insure its success. It’s not important that a friend who happens to be an electrician did not get the contract. If you decide that another electrician is a better choice then make the right decision. Your friend will have to understand. And, besides, he doesn’t help you write the mortgage check…does he?
     
    Remember, in the end the entire success of the project rests on your shoulders. It’s not a popularity contest. When my kids were young I would tell them: “I am not your friend, I am your father. I make decisions based on what is best for you. I don’t worry about whether you approve of my decision”.
     
    There is a lot at stake with a project of this size. Educate yourself, do your homework, ask many questions and make those tough decisions. Think it’s easy? No. Does it get easier? No. Will you make mistakes? Yes. But you will never hit a home run unless you swing the bat. And sometimes you strike out too.
     
    Stay tuned!
  10. Joe Marconi
    Setbacks are inevitable. Some are controllable. Others are not. Three weeks ago we planned on pouring the cement slab and finish the sidewalks, but the weather turned too cold. With temperatures in the low 20’s and a bone-chilling wind, the mason decided to wait. This past week, Mother Nature cooperated, and with temperatures in the mid 40’s; we finished the slab and sidewalks. The mason and his crew worked till midnight the Wednesday before Thanksgiving. I have a deep respect for people in the trades.
     
    A major setback occurred this week and is yet not resolved. It threatens the project and may delay the opening of the new facility. This setback has to do with the Department of Transportation. (DOT). First of all, you cannot build anything in this country without intervention from government agencies. And I swear, the pyramids would probably still be in the planning stages if we had government intervention back then. As a matter of fact, I’m not sure if the word “intervention” is correct. It’s more like government “interference”.
     
    Before a shovel is put into the ground you need the approval of the Town Planning Board, Town Zoning Board and the Architectural Review Board. The Department of Transportation gets involved, along with the Environmental Protection Agency. If you survive this, there’s the bank loan process to add a few more gray hairs. This process for me took about 2 years. So, as you might have guessed by now, I have had it with regulations and government agencies. But anyway, here’s what happened…
     
    The DOT has their input with respect to the driveways and curbs out on the road. I had to get a DOT permit and issue a bond before any work was started. In the permit are certain specifications that the site engineer must conform to when he draws his plans. The excavator follows the plans, grades the property and constructs the curbs in accordance with the approved site plan.
     
    Before work is started we needed to inform the DOT and ask for a meeting, which we did. When we called the DOT, the agent assigned to our case said, “Just let me know when it’s done and I will come out and inspect the site”. That was our first mistake.
     
    Our second mistake occurred when we called the DOT agent just before we did the actual excavation work on the DOT section of the property (the driveway and curbs). The agent again told us to call him when the job was complete. And that’s exactly what we did.
     
    We completed the curbs, blacktop and driveways and called the DOT agent. After repeated calls to his office he finally came out and guess what he said? You guessed it… The work is not acceptable. There’s a problem with the driveway grades. The shoulder of the road needs to slop away from the center of the road according to the specifications stated in the permit. This was Wednesday before Thanksgiving. The same day the mason worked till midnight to finish the concrete slab. What’s more annoying is that the DOT agent was out to site on Monday and never said anything to anyone. No one knew he came out. No one saw him. I had to finally call him Wednesday afternoon, only to find out he did come and he would not approve the work. And to top things off, he is leaving early for the holiday. Early for the holiday! I guess it’s nice to have a cushy government job these days, while the mason has to put in a 16-hour day just to have off on Thanksgiving!
     
    The DOT SOB never came out when we asked for a meeting at the start of project, never came out when we asked to meet before we started the work on the DOT section of the property and we had to beg him to come out to inspect the work once competed. And he did not even identify himself when he did come out and never called me. I had to call him.
     
    What’s the lesson in all this? Cross every “T” and dot every “I”. Do your due diligence. In the DOT permit, it is advised that a meeting be set up with the contractor and site engineer. Don’t listen to a lazy DOT agent. Insist on the meetings, go over the site plans and get everything in writing. I blame myself only because I am the one who needs to overcome this obstacle. After all, the DOT agent went home to a nice early holiday weekend. I know he enjoyed his holiday bird while I ended feeling like a turkey.
     
    Stay tuned!
  11. Joe Marconi
    Where is your daily focus? This is a question I ask myself constantly. If your daily focus is fixing and servicing cars, then that is what you will accomplish on a daily basis. But, as the leader of your company, is this where your focus should be?
     
    We are in the business of repairing and servicing the motoring public. But in order to grow and be successful, the leader of the company must work on insuring the success of the business. The leader of the business must work on marketing, advertising and creating systems that, when followed, will allow the business to run on its own. I tell my people that our company can only be a success if it runs without me.
     
    To have a company run on its own requires systems and policies along with the adequate training to insure that all procedures are followed. All systems and policies must be written and explained in detail to every member of the company. Constant review is vital. A system of checks and balances must also be put into place.
     
    To create a self-run company takes a great of time, and trail and error. Take for example the work-flow process. Every detail of the work-flow process must be detailed and itemized in writing: Customer write up, dispatch, reviewing the work order with the tech, road testing, the checklist, up sells, the actual repair, reviewing the completed work order and car delivery.
     
    With my expansion project, I have taken every segment of my business and broken it down into categories. For each category, I have written a series of procedures so that every employee understands what his duties are. Check lists and reports are generated and reviewed to insure that things are getting done properly.
     
    Years ago I was the hub of my business and every action required my involvement; from obtaining parts, to diagnosing jobs, to making payroll, cleaning the shop, road testing, selling work, etc, etc, etc. This is the most inefficient way to run a company and was doomed to fail. I needed to change and I did.
     
    Build a business that runs without. Empower your people to act with authority with the ability to make decisions. Create positions in your company where people report to each other and not to you. Relinquish control and watch your company grow.
     
    Stat tuned!
  12. Joe Marconi

    Hey Boss, Are You Approachable?

    By Joe Marconi,


    Management
    My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
    If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
    Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.
  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.  
  14. Joe Marconi
    With two months to go before the grand opening, I reflect back to 7 years ago when I first had the vision to expand. It took a few years to actually begin the process. There were things I needed to learn and a tremendous amount of fear to overcome. I can tell you honestly that the fear never goes away nor does it get any easier to handle. It’s there and I accept it. The hardest part was to pull the trigger. Once you make the decision, only look forward. It makes no sense to look back and second-guess yourself. Mistakes will be made, but that’s how we learn.
     
    The past 4 years were filled with countless hours talking to engineers, bank loan committees, town planners, general contractors, site engineers and architects. But that’s only part of the story. I spent almost every minute that I wasn’t working doing research on the auto industry, quick lubes, franchise models and other large companies. I also studied other companies like Toyota, Star Bucks, GE, General Motors, Disney, South West Airlines, McDonalds, Apple and Microsoft. Thank God for the Internet.
     
    I read books on leadership from great people like Winston Churchill, Benjamin Franklin and Abraham Lincoln. In addition, I studied the works of Dale Carnegie, Jack Welsh (former CEO of GE), Jim Collins (the author of Good to Great), John C. Maxwell and The Art of War by Sun Tzu. Not a day has gone by in the last 4 years that I did not work toward my goal. And reading was a big part of the process.
     
    So once you acquire knowledge, what do you do with it? The answer? You give it away. By sharing knowledge, you make the poeple around stronger, which will only make your stronger.
     
    We hold short meeting at my shop almost daily. These meeting only last about 10 to 15 minutes, but in these meetings I slowly share the knowledge I acquired. My goal is to share every aspect of the project and what is needed to be successful. I share the entire process including the numbers. It’s like a baseball team or an orchestra: although a team or orchestra is made up of individuals, they all work in unison toward a common goal and all the players know each other’s job.
     
    Power point presentations were created and after-hour training sessions were held and will continue to be held on all aspects of the business. From procedure, to policy and basic training on topics such as understanding charging systems, starting systems, ABS brakes, wheel alignments, steering, suspension and other service procedures.
     
    Probably the most important thing I learned the last 4 years preparing for the expansion is that every member of the organization must fully understand our goals and implement the plan.
     
    If the knowledge I gained, remained only in my head, that knowledge becomes useless.
     
    Stay tuned!
  15. Joe Marconi
    After weeks of working with a graphic designer and reviewing tons of marketing information, we finally agreed upon the new signage and tag lines for the business. The new logo is redesigned from the old logo and will be more visible from the road. The tag lines are simple and to the point. The colors did not change: red, white and blue. We proudly took our new proposed signage to the Architectural Review Board for approval only to be shot down like a duck on the first day of hunting season.
     
    The panel consisted of six people who scrutinized my drawings as if there was a deep, dark, hidden message within my logo. They talked among themselves as if I were not even in the room. The funny thing about it was that the chairman said he had no problems or issue with my signage. It was the rest of the panel that had issues, especially one woman who wanted to change the shape of the signs; which would actually change the logo.
     
    I lost my cool for a moment and asked the panel if they gave McDonalds, Starbucks, Dunkin Donuts and K-Mart a hard time about their signs, colors and logos. I went on to explain that logo branding is a key part in marketing and that extensive research goes into logo and signage design. That did not go over well. All I got after my comments were blank stares and an invitation to come back in two weeks.
     
    Their concerns were that the signage might not go well with the building design. From the road, the building shows only the customer service area, the work bays face the rear of the property. Maybe they have a point.
     
    So now I need to go back and make changes and compromises, but holding to my original logo design.
     
    When dealing with town boards, compromises are inevitable.
     
    Stay tuned!
  16. Joe Marconi
    I am going to borrow a quote from billionaire, Warren Buffet, “The best investment you can make is in yourself,” This statement, while simplistic, speaks volumes. A shop owner is much more than a boss, a shop owner is a leader. And leaders are solely responsible for the success of their team. This means that you must work hard and commit to a life of continuous learning and improvement. It also means that if the team fails, a leader must always blame himself or herself for that failure and find ways to improve.
    For your business to flourish, you must invest your time and energy in understanding what your role is in your company. It also means that you must be committed to continually improving your level of competence. This does not mean that every task is your responsibility. However, it does mean that the buck stops with you. If your business is not where it needs to be, or you are looking for increased growth, then it is your obligation to do the hard work and set goals, have the vision, perform the research, and develop the plan to achieve your overall objectives.
    When you invest in yourself to become the best leader and the best businessperson you can be, others around you will feed off your energy and your passion. This sends a strong message to everyone on your team that you have what it takes to bring the company to the next level.
    One last thing, another obligation to your company is assembling the right team of people around you. Once you have the right people, you need to invest in them too. Find what truly motivates them, not what you believe inspires them. Be a coach to your employees and always strive to bring out the best in them. Be strong with your convictions and expectations, build strong relationships with your employees, and don’t be afraid of admitting when you drop the ball.
    While Warren Buffet is best known for making billions of dollars with his investment strategies, I want to believe that this quote has its basis in something that money cannot buy.
  17. Joe Marconi

    Are Your Employees Looking to Leave You?

    By Joe Marconi,


    Employee Retention
    There’s a lot of talk these days about finding quality employees. Creating a continuous recruiting process to find and hire quality people is essential for your overall success. However, shop owners also need to consider their existing employees and create a work environment where people feel wanted. The truth is you cannot afford to lose the people you have now, especially if those employees are superstars.  Another reality is that with so many shops looking to hire, they may be trying to recruit and hire your employees!      
    To attract and retain employees, shop owners must create an amazing workplace experience. A great pay plan must also be a factor, along with benefits, but it’s not the entire reason why people stay employed with you. The truth is, people don’t quit businesses, they quit their boss or their manager.
    This is not to say that a pay plan is unimportant. It is, especially these days. However, to get your employees truly engaged and want to continue working at your company requires having a workplace environment where people feel appreciated for the work they do, are encouraged, and have a feeling of shared purpose.  This will help anchor your employees to your business and help prevent them from looking over the fence for greener grass.
    Lastly, get more involved with your employees on a personal level. Find out what matters to them.  Find out what their goals are.  When you align employee goals with company goals, you are well on your way to having a winning team. You will also create a strong bond with your employees. This strategy will help you retain employees, with a stronger and more profitable business in the long term.
     
  18. 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.
  19. 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!”

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