Joe Marconi

First, I applaud your honesty. I don't think there is a shop owner around that has not made a ton of mistakes. We reflect, hopefully learn and move on. I will take another point of view. My goal from the first day I opened my shop in 1980 was to purchase the land. I finally did in 1998. The property became a windfall years later when I sold my company (2 locations). I have to admit, though, that my first location was not the best, but as the business grew it did not impact my growth.

Do you have plan when a tech or service advisor is on vacation? Especially if you are busy with the phone ringing off the hook. How do maintain production?

Great point and great story. As you point out, it goes back to basics, take care of your customers, commit to doing the right thing, and everything else will fall into place.

Great points! The cost of tools today is much different than when I broke into the business in the 1970s. Any help from the company would also go a long way with employee retention.

I think many shop owners and techs assume that tech tools are covered. It is worth a conversation with a qualified insurance specialist to make sure everyone is covered properly.

It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door. While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox. Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator. One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

The cost of tools, the toolbox and all the specialty tools needed these days is overwhelming. It's also hard to determine at times, what is a shop tool and what belongs in the tech's toolbox. Some tool boxes cost in the 10s of thousands of dollars. Should the company either supply the tools, pay for the tools or in some way subsidize the expense of a technician's tools? Or is it up to the tech to continue to invest in his or her future?

55 years! Oh man. You should be proud! Question, with all those years in business, do you find that marketing to your existing customer base is a big part of your success?

I have a good friend of mine who is starting a repair shop, but his location is not good. In fact, he gets virtually no traffic. Now, I am not the biggest fan of Repair Pal, Open Bay and similar companies, But could these type companies help a start up, just to get cars coming to his shop?

I know exactly what you are describing. In my 41 years in business, I lived through many economic rollercoasters. You also make great points. I agree, we are in different times, and I don't know why some areas around the country are affected more than others. One thing I do know, doing all you can with the customers right in front of you every day is crucial for future success. Business is never easy, especially the auto repair business. Keep pushing, create the right culture in your shop, take care of each customer, and continue to market for new customers. Keep us posted and good luck.

I cannot speak for all shops and all insurance policies, but many garage keeper's policies do not cover technician's tools. It might worth a call or meet with your insurance rep to discuss this. I am not an insurance agent, but I was shocked a few years back when I found this out, and had to modify my insurance coverage.

As a business coach (former shop owner) I see that many areas around the country are having a slow down in business. However, a lot can be done. Focus on your existing customers. Make sure that all deferred and declined work is followed up and reminders sent out. Regarding your advertising, local is always better. Just don't cut your advertising too much. Perhaps the most important factor is to have a positive open mindset. Look for ways to improve, discuss with your team. Don't sit on your hands and say nothing can be done. With the right approach, things will improve. Good luck!

Agree, Linc. Years back, for general repair shops, it was a lot easier. Today, it is so much more complex. To assure we are achieving our profit margins on labor, shops need to have multitier labor rates.

When speaking to shop owners, it still appears that many are still looking to hire a qualified tech. It has gotten better, and I believe it's because most shop owners are more willing to create a better workplace and pay package. What are your top ways or thoughts on attracting and keeping auto techs?

Thanks for the info. I think you made the right decision.

Did you do wholesale work, work for other shops? And also for warranty companies. Were there different labor rates for these, and how did you maintain a decent profit margin?

A critical strategy that should be consider by shop owners! Excellent podcast!

Once again, Hunt brings clarity and great information to shop owners!

With labor rates going up, one concept me also need to consider is multi tier labor rates. For example, performing jobs on heavy trucks is different than work on a Honda Civic, or Toyota Corolla. Also, if you do complicated computer work, electrical and driveability, that requires your top tech with the most expensive tools and training. And those jobs have no part profit. Shouldn't this be billed at a higher labor rate? Do you have a tier labor rate strategy? I would like to hear from other shops.

I think all of us have been down that road. We sometimes get in the way of our own success, when it's right in front of us. Great point!

I had a recent discussion with a coaching client, who was complaining that sales are off. But, when we looked at his car counts, it was steady with no decrease. In fact, car counts were slightly higher than normal for last month. Another thing we noticed was that his calendar was booked out about a week and a half out. Reviewing the calendar revealed that many of the customers had previous recommendations and deferred work that was not addressed at the time of the current appointment. After a proactive approach of reviewing the appointment and vehicle history, the service advisors were able to discuss with their customers past recommendations and increase sales. Do you use your calendar as a way to prepare for your customers and increase sales opportunities? What strategies can you share that helps you to increase sales by using your calendar or other technologies?

When I look back at my 41 years as an auto shop owner, there is a direct link between my best and most profitable years to the quality of my employees. Contrary to that, the years I struggled in business was directly related to having the wrong team, more specifically, a bad apple or a few bad apples. If you want to truly achieve great things in business, you need to have great people around you. Take a hard look at the people you employ now. Would you hire them again? Think about this: If your auto repair shop is reliant on your skills, your intellect and solely on you, your business will eventually plateau and stall. You need great people around you to build your empire. The strategy of finding the right people for your company is ongoing. Lastly, once you have assembled the right people, then you need to do all you can to give them the training, the coaching, the support, the praise and recognition to bring out the best in them.

You are right. Here is my take on this. Creating an amazing experience is nothing more than building strong relationships, being nice, friendly and making sure that you are taking care of the customers needs. You are right, as we build value, we sell ourselves. I don't think the customers "expect" any experience. They get beat up everywhere, and now they are just looking for a someone who truly cares. For example, I am dealing with a knee issue. I called the doctor three times, left messages, got hung up on twice, and it took days for someone to call me back. And this is a doctor's office! Again, this is no brainer, just be nice, do a quality job, and the rest takes care of itself....for the most part.

Wow. You bring up so many critical issues. I do feel that the work environment and ownership/management has an obligation to provide a workplace that takes care of it's people. As you said, money is not the only factor. Another thing, most shop owners are former techs, with little to no training in employee management or leadership. Perhaps this needs to be addressed, or the problem will only get worse.

Great advice! Sound business strategies!