Joe Marconi

With technology moving at light speed, it is a monumental task for technicians to keep up. 

What training do you require, and is that training mandated? 

Most of the members in Auto Shop Owner are probably independent auto repair and service shops. All do oil changes, and many may have quick lanes in their model; I did, I had two quick oil change bays in my large location. It was an 11 bay facility.

I think that oil change only these days is a tough model. This is my opinion.  If I were expanding today, I would focus more on preventive maintenance, EVs, hybrids and also general auto repair and service. I also believe that, unlike years back, to be All Makes/All Models is going to be a tougher business model in the coming years.

Contact the Oil Change Franchise companies for their research. You will see that they are changing their model too.

On 9/20/2023 at 2:14 PM, nptrb said:

Well, you don't get quality techs who want to get paid "off the books".

If the potential new hire wants the shop owner to pay them off the books because they're trying to fly under the radar for maybe unemployment, what kind of stunts would they pull on the shop owner?

I agree with you 100%! 

1 hour ago, weighit said:

One of my guys when I owned a body shop did side work for cash doing roofing for a friend of his. I get a call on a Saturday from him in the hospital, he fell off the roof. Wanted to have me tell the workmans comp and insurance that he was working for me in the shop and tripped and fell. He broke bones in his neck, and was going to be out of work for a while. Are you kidding? No way, working for cash has drawbacks and this is just one of them. Some folks can get away with under the table, but when it crashes, it can hurt in more ways than one. 

Great story, thanks for sharing. It is hard to believe that this stuff happens.  And to your point, in some way of anther we all end of paying for this garbage. 

I don't know what's worse: the tech shortage, the lower than needed rate of young people becoming techs, or the fact that there are many technicians leaving our industry. 

I guess all three topics are serious issues, but techs leaving the industry has to move to the top, in my opinion. 

What can we do as Shop Owners to provide a healthy work environment and career that tells techs we care and we want you to stay? 

8 hours ago, Transmission Repair said:

I just heard a Carm Capriotto webinar with Cecil Bullard as the guest.  I thought he had a great plan to cure the technician shortage.  Here are some of his talking points...

Here's the link to the webinar:  A Plan To Solve The Technician Shortage

Recent surveys and articles in the industry point to the fact that 73% of shops need to hire one or more employees in the next 12 months and that for 85% of those, it would be a technician • As much as 29% of the technicians are over 55 years old, and they are aging out of the industry • Only 15% of our industry is under 35 while 29% is over 55 • Every Automotive Service and Repair Business in North America will move their labor rate up $20 per hour tomorrow. We use $10 of this to increase the pay of every technician and/or mechanic working in our shops immediately.   We make it financially appealing to come into our industry by moving the wages up substantially.  If every shop (or 90% of the shops) did this, it would change our industry for the better dramatically.   We start new technicians that are learning at $25 to $35 an hour or $50K to $70K per year (a real living wage where they can support themselves and buy tools), and we pay veteran A-technicians $45 to $65 per hour or $90K to $130K. We take $5 of the increase and make sure we have a full benefits package.  Medical, vacation, dental, a reasonable number of sick days, a good retirement plan, all national holidays off with pay, including Thanksgiving, Christmas and New Year’s, as well as anything that other professional jobs offer. • We take the other $5 of the increase and join a non-profit organization that will market to the mothers and fathers out there (and potential technicians) and let them know that being a technician in a modern shop is a cool job, is financially viable and every bit as professional as becoming a lawyer, doctor, dentist, programmer or professor. • Lastly, every shop owner books an appointment at a college, auto tech school, or high school and ‘volunteers’ their time to talk to the students, teachers, and administrators about our incredible industry.

Yes, I listened to it also.  The fact is that if every auto repair shop hired one apprentice, we could solve the tech shortage.  We, the auto aftermarket repair shops have to do this. No one will do it for us.  And I also agree that we need to pay our people better. However, we need to improve the bottom line for repair shops and owners too. 

34 minutes ago, Transmission Repair said:

Also, don't forget about Social Security.  People who get paid "under the table" are unknowingly clipping themselves out of a lot of S.S. pay later in life.  Earlier in my career, I worked for a family who would pay us by check but insisted we cash the paychecks with them.  They had a safe in their back office full of cash.

They also had a construction company in Chicago that I now suspect took in a lot of cash, but who knows?  Now that I'm collecting S.S., I've come to realize they weren't reporting my income on the 941.  Thanks to those clowns, I'm now collecting much less S.S. than I should be because they weren't reporting my income.

I came to learn that not reporting all income comes back to haunt a person much later in their life.

Another excellent point!

7 hours ago, weighit said:

All that can so is come back and bite you hard. If that guy was to ever need to collect workmans comp for an injury, guess who he tosses under the bus trying to get his full money.  I gave cash bonus money for Christmas but all paychecks and hours worked was by the book, and checks. issued.

Great point about workers comp. No one enjoys paying taxes, but as you point out the risks are too great, and as I mentioned earlier, how does this help raise the bar for our profession? 

43 minutes ago, NoticeAutoTN said:

No way.  Usually means he's hiding from something and probably isn't to be trusted anyway...we had a local shop for a while paying his guys 1099...which I think is almost as bad..

 

1099?  Seriously! That is just as bad, might be worse! 

45 minutes ago, SW Car Care said:

Absolutely not.  I've had guys sheepishly ask in the past, but they are given the standard response, "If I'm paying my taxes, YOU are going to pay yours!"

Good for you! And you are right on target!

42 minutes ago, NoticeAutoTN said:

No way.  Usually means he's hiding from something and probably isn't to be trusted anyway...we had a local shop for a while paying his guys 1099...which I think is almost as bad..

 

1099?  Seriously! That is just as bad, might be worse! 

A shop owner friend of mine recently interviewed a technician he was looking to hire. At the end of the interview, the tech turned to my friend and said, “If I get hired, I would like half cash off the books, and half by check.” My friend replied, "That’s not happening.”

I hope to not sound naïve, but does this still happen?  Please, I have been around for many decades, and years back this was common. But I hope that we have progressed as a profession through the years.  

Tell me I am wrong. Tell me I am right. But tell me how are we ever going to raise the level of professionalism if there are shop owners paying people off the books? 

Doesn’t this also hurt the actual pay scale by lowering it from what it is? How does help to attract new people to our industry?

Please let me know your thoughts on this.

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18 hours ago, Transmission Repair said:

We were a transmission specialty repair only; we didn't use CRM at all and perhaps I should have.  I don't really know.  Because the majority of our customers had us perform major transmission repairs, what else could we sell them?  Hindsight being 20/20, perhaps I could have used CRM for future transmission service jobs. (fluid, filter, and a road test looking for codes) But the fact remains we didn't engage former customers with CRM.

Unlike the general auto repair industry, our relationship with the customer was more of a transaction-based than like relationship-building which is critical for the G/R industry.  When I was trying to sell the shop, our customer list wasn't worth anything.  At least the prospective buyers didn't think so.  Early in the sales process, I was trying to impress the buyer that our customer list had value, the buyer asked me, "Why would I want a list of people that just had their transmission rebuilt?" OUCH!  They surely can drum up the Annual Service Jobs from all of our 1-time customers.  So, I left the buyer with the customer and vendor lists without being compensated.  They were like me and never followed up with customers.

You bring a lot of great points. The transmission business is different, such as collision shops. It would have been interesting to see if you could have gotten customers back after a major repair for a fluid service, health check or some other way to keep in contact. As you say, a one and done type customer base has no real value. 

I like to refer to CRM as Customer Retention Marketing, which is nothing new in the auto repair business. And everyone reading this understands its value. However how many shops consistently implement a CRM process that boosts future service appointments? Which will help to reduce slow times for your auto repair shop. 

An effective CRM starts at car delivery. Inform and BOOK the next appointment for your customers.  Also, inform them of upcoming needed services, and discuss a timeline for any deferred and declined work. 

Fill your calendar in advance with future appointments from your existing customers. A VERY AFFORDABLE way to market your company.

Lastly, this strategy is nothing new, but it needs to be revisited from time to time. Especially since the last few years have been banner years for most repair shops.

A consistent CRM process is perhaps the most effective and affordable way to market your business.

What CRM strategies to you use to boost your future business? 

On 9/5/2023 at 4:14 PM, Transmission Repair said:

Buying even minor parts for a Tesla is a costly ordeal.  I predict the aftermarket will eventually start making aftermarket parts for a Tesla so that the buyer doesn't have to go through Tesla.  A good example are coolant hoses.  These are very commonly the first part(s) that need to be replaced on a newer vehicle.  As the aftermarket parts supplies for EVs grow, so will the service opportunities.  I just received this notice from Motor...

 

The aftermarket has always and will always find a way. Agree!

15 hours ago, Gary Childs said:

Great points for sure. I take pride in being quality shop for both my customers and my people working for me. No flat rate here at all, very good hourly pay and bonus's payed monthly as a team. I take pride in not selling things not needed right away like brakes at 20% life and just let the customer know they will be needing brakes in the next 6-12 months or so and we will keep and eye on them at oil changes etc. One of the things I learned long ago was how you treat a comeback or warranty problem, that gets top priority over anything right away! Get it back in the shop right away over any other work etc that is here or waiting to be worked on. Fixing a comeback or warranty instantly as we can gives more good word of mouth then anything else it seems. My guys know how I work and they all look out for customers for us too, pay them very good and they know it. Heck if we even get all the work done for the day I let them go home and pay them for the whole day. 

 

Gary, True Leadership Wisdom. As you state it IS all about the culture of the company, founded in hard work, team work, integrity and just doing the right thing for the right reasons.  There are a lot of shops like yours. I have the highest respect for every shop owner on the planet, however, our responsibility also rests with the future. We, as an industry must do all we can to ATTRACT and RETAIN qualified and passionate people. 

31 minutes ago, Transmission Repair said:

Yes, he has a valid point.  I believe there is a disconnect between quality techs and quality shops.  It seems to me that the quality techs can't find a quality shop and the quality shops can't find quality techs.

I also believe that a compensation framework built upon the flat rate system does more to push techs out of our industry than any other single cause.  Running a close second is shop culture.  In Adam Smith's 1776 book, The Wealth of Nations, he was the first to recognize the supply and demand theory of markets.  As the quality and quantity of techs dwindles, compensation will increase.  By how much will be determined by the markets.

Over time, I further believe there will be a "shake out" of quality shops where the quality shops will thrive and the other shops will eventually go away.  The future market for quality techs will be driven by the number of quality shops.

You bring up another rather sticky point, but valid; our pay structure, and the flat rate system. 

Also, very impressed, Adam Smith and the Wealth of Nations, a timeless classic!

On a recent podcast, I listened to a technician complaining about the repair quality from some repair shops.  He also stated that we don't have a lack of technicians, we have a lack of quality repair shops to choose from, which is pushing techs out of the industry, and a reason why we don't attract enough qualified people. 

I understand that this his perspective, and one point of view. But does he have a point? 

23 hours ago, Framingham Auto Service said:

We have seen constant grow for the last 3 years. On my opinion it is all due to the high prices of new vehicles, along with high interest rates.

Even with higher parts pricing, it is still making more sense for the consumers to repair and keep their vehicles vs overpaying for a new one.

How long does this wave is going to last, is the big unknown.

 

As long as the aftermarket continues to give value, we will be in good shape. That does not mean, cheap, we need to charge what we deserve. 

From speaking to shop owners, clients and friends, it appears the summer months have been very good. Banner months for many.

My question is, do you think this is a trend? Or is it an anomaly? 

As cars age, and with many shops closing the past few years, there is great opportunity.  In addition, there are a lot of cars on the road these days, and motorist art taking to the roads more now than ever. 

How do you view the auto repair and service business? What trends do you see? 

Happy Labor Day to all!  Take time to reflect on your hard work and commitment to the Auto Industry!

13 hours ago, Gary Childs said:

Yes we use a strong labor matrix manly being in a salt belt state the labor guides do not compensate for the rust problems around here. Times should not be the same in per say Arizona versa upstate NY. Many techs I know when I lived in Arizona would quite on the spot then work on a upstate NY car or truck. They would run away screaming.  

HA! I bet you are right!  I am in New York, born and raised in the Bronx, but my repair shop was in Putnam Country NY, about 45 minutes north of NYC.  We learned how to use a torch before learning how to use a wrench!

Published book times are a joke for so many operations.  As pros, we need to factor in the variables. As you point out NY is not the same as Arizona.  

In the end it comes down to LABOR DOLLARS, not LABOR TIME. 

I would be very interested in hearing from other shop owners, what they feel about flat rate, and also from former techs, now shop owners, who worked under the flat rate system.

4 hours ago, Transmission Repair said:

Excellent podcast!  I've never been a fan of the flat rate system because I spent a year in that system working at a Cheverolet dealer.  IMHO, the flat rate system promotes shortcuts and poor workmanship.  Not only that, but the flat rate system absolves all management responsibility of marketing, promoting, and keeping the shop full of work.  I can't add up all the hours I was at the dealership, but yet, no work to do.

I also do believe that ASE certification should be required to have a job in this industry.

I was never a fan either. It's an antiquated process that pushes the envelop in the wrong direction.  I know there are shop owners that swear by it, and say they have no issues. It was just not for me.