Joe Marconi

In order to make any sale,the person you are trying to sell to must see the benefit of what you are recommending. Your customer must see that you are trying to help them, rather than just sell them something. Each of knows the reasons "why" we recommend a timing belt or a wheel alignment. But, sometimes in the mist of a busy day we don't effectively communicate the "why". When a customer understands that replacing the timing belt is thousands of dollars less than major engine repair, the customer knows the why. The customer sees that you are trying to help. The other component in selling is clearly identifying your true profile customer. You will have an easier time selling to those customers that you have created strong relationships with. Focus on these customers and do all you can to continue to identify and build more of these relationships with the right customers. I am not saying to ignore certain customers, but the truth is we cannot be everything to everyone and attempting to be will eventually hurt sales, morale and profits.

Now that's funny!

I want to express my sincere appreciation to all AutoShopOwner.com members. And, in the spirit of Thanksgiving, a big thank you to all our valued members for making ASO the "go-to" online site with the very best in automotive business-related discussions. So many shop owners from around the country have expressed to me the amazing posts, information and discussions. The real thanks goes to you, the members that contribute so much and make ASO a success. HAPPY THANKSGIVING TO YOU AND YOUR FAMILY! Joe Marconi

Gonzo, guys like us have seen an evolution of car designs, some good, a lot bad. Diets are like fads, and that holds true for car designers too. But, I have to agree, just getting to the engine and various components is a job these days. I hate to attribute some of the difficulty to our age. Or should I?

Gonzo, I would like to add number 11... 11- I would do it myself, just don't have the time. Thanks Gonzo, Saturday would not be Saturday without reading your article.

With the holiday season right around the corner, its a good time to remember things that matter the most. And while we are all business people, we must have balance in our life and promote that balance in the lives of the people we employ. Find ways to celebrate the holidays with your staff. It doesn't have to be anything extravagant either, just something that brings people together. This will show you are a caring boss and leader. Morale will improve, which will help to enrich the lives of everyone. A win for all, and your business.

You are right, that is the problem.

Thank you, love this story every time I read it!

November 11, or what has come to be known as Veterans Day, was originally set as a U.S. legal holiday to honor Armistice Day - the end of World War I, which officially took place on November 11, 1918. President Woodrow Wilson honored the first commemoration of Armistice Day with the following words: "To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations..." In 1954, Congress, at the urging of the veterans service organizations, struck out the word "Armistice" and inserted the word "Veterans." With the approval of this legislation on June 1, 1954, November 11 became a day to honor American veterans of all wars.

Great article, very interesting. The one thing about this business...just when you begin to think you have seen it all, that's when you are again challenged.

Source: Before you raise prices, raise production

I got a call the other from a shop owner friend asking me to help calculate his labor rate. I told him that before you calculate your labor rate, you should check your labor production (also known as effective labor rate). I asked him to total up his total tech paid hours for the month and then divide those hours by his total labor dollars sold for the month. He got back to me and was surprised that although he posted a $90.00 labor rate, his actual labor dollars per hour was only $62.00. I pointed out that this is a production problem, not a labor rate price issue. Raising labor production is equally important as understanding what your labor rate should be. In fact, ensuring your labor production is where it should be will add much needed dollars to the bottom line. One thing to consider; low labor production is not just the responsibility of the technician. You need to also take into account: Are you billing enough hours? Are you charging properly for diagnostic time? Are the techs waiting too long for parts or for the service advisors to sell jobs? Is there too much down time between jobs? Look at the entire shop operations and workflow process. Each minute increase in labor production will add much needed dollars to your bottom line.

Source: Can Your Service Writers Really Overcome Sales Objections?

If one of your best customers brought his car to you with a brake problem, and you told him the car needed front brakes and brake rotors, would he give you a sales objection? Would he say, “Are your sure it needs the brake rotors too?” or, “Really, that much? I can get those rotors cheaper on the Internet.” Think about it, would you have to go back and forth handling sales objections one by one, until you hopefully make the sale? Your best customers don’t give you a hard time, they simply say yes. The problem? Your top best customers only make up about 20% of your customer base, at best. So, all too often we are stuck with this mentally-exhausting negotiation where we handle objection after objection, until a champion emerges. Either the customer wins or you do. The only way to decrease sales objections is by creating strong relationships with your customers and building value in what you are selling. If you sell parts, labor and price, you better be prepared for sales objections. If you work on the relationship and build a lot of value by promoting your warranty, quality parts, convenience, and by providing world-class service, you will be in much better place. Your objections will go down and your sales will go up.

Gonzo, I have to be honest, we all have been in this position, but I take a different approach now. Let me explain; When I go to any professional,(a doctor, lawyer, accountant, dentist, plumber, electrician,etc.), I never expect that person to fully explain how something works in such detail that I can do it myself. I hope I am making sense. In other words, if there is something that is beyond my scope of performing to a professional degree, I defer to the pro. They explain the problem, the solution, the price and either I say yes or no. So, when a person walks up to my service counter with paper work, manuals and downloads from the Internet, I tell the person to put all that stuff away, I am the doctor, not the teacher or collaborator on the repair. I hope I don't sound too mean, but some of these people just suck the life out of us. Your thoughts?

My manager took day off yesterday, so I decided to step into his role and oversee shop production for the day. Boy, the things I uncovered! How does anything ever get done? The schedule is a mess, jobs not checked out early enough, too many wait customers, too much conversation among the techs, and they even took a lunch break! By noon, I was so frustrated that I needed a gin-n-tonic to calm down. (Just kidding, actually drank an Ice tea). I pushed all morning long MY WAY, and everyone pushed back. So, after their “Lunch break”, I decided to do more observing than interfering. And guess what happened? By the end of the day, all the work was done, all the customer problems were solved and everyone ended up on a high not. What? How could this be? I need to take some of my own advice, and let go of control. Not doing things MY WAY is not always a bad thing.

Source: Letting go of control of the shop is still so hard to do

Simply amazing! Gonzo, you are a mechanical god! You never cease to amaze me with your diversity!

It's amazing how much we have evolved in just the past few decades. But it is true what you say...Plastic does dominate!

October starts the year’s fourth and final quarter. A time where shops begin to reflect back on the year and look toward the next year. For many of us, it’s been a wild roller coaster ride, for others not so bad. That’s business, and we all know that there will always be good days and bad days. The key thing to remember as leaders of your business, is to always be looking to the future. Learn from the past, but don’t dwell on it. Become more proactive. Try different things and don’t be afraid to fail. Through failure are valuable lessons. Set your sights high and remember to begin planning now for 2016. Don’t wait until the end of the year, or even worse the start of 2016. The earlier you begin to dissect and analyze the current year, the better position you will be to improve your chances of a more successful future.

Before you call me crazy, please read on. Last year was one of the toughest winters in history for many shops in the northern states. Records snow falls and frigid low temperatures caused many shops to lose days, and in some cases weeks’ worth of sales. Many shops are still struggling to eke out a profit for this year. That’s the bad news, and the reality of what happened and what can happen again this winter. The good news is this: We all learned from it. And because of what happened we are better prepared, or should be better prepared for it. He’s a rundown of the strategy most of us will implement. Please feel free to add to this list, so we can all share in each other’s knowledge: · Create a Fall Promotion to get your customer’s car ready for the winter · Have a meeting with the entire staff; key on the service areas that are winter-related and check these items at every vehicle visit: o Battery testing o Antifreeze testing o Check wiper blades o Check tire condition o Suggest snow/winter tires o Check all fluid condition o Check operation of heater and fan speeds · Make sure your service staff is proactive with regard to needed maintenance services · Identify the next service for all customers, inform the customer. · Book and flood your customer base with service reminders during the slower months to boost sales · Implement a phone call system to call customer to remind them of recommended services, especially during the slow months · Create another Winter-Related promotion and send out during the months of January, February and March. o Flood your customer base with these promotions. No one can predict the future, and no one can tell how any effect any marketing plan will be. But there is one thing I CAN guarantee; if you do nothing, expect nothing. Your thoughts?

This past Saturday, October 3, was the ASA of Pennsylvania’s Super Saturday Event. I had the chance to attend the key note breakfast meeting. Tony Molla, longtime industry veteran and Vice President of ASA (Automotive Service Association), gave the Key Note Speech. Tony projected an optimistic future, with big changes to come in the next decade. Here are a few highlights of his speech: · The internal combustion engine will be the main power plant well into the future · The average age of cars built today will still be on the roads 10 to 15 years from now, which means for the most part, there is a lot of potential work for the aftermarket · The auto industry will continue to build and develop more Hybrids, electric cars, increase diesel engines and experiment with hydrogen cars. Although the internal combustion engine will dominate for the next few decades · New technology and sophisticated electronics will increase and will be a main factor in new car models · The need to understand the Y-Generation is important for our future success · Training will become more important than ever, to keep pace with technology · Customers will become more educated, which means we need to become better at understanding the needs of the consumer and learn how to market to them · The aftermarket independent shops continue to dominate the auto service and repair landscape and is still the first choice by the motoring public · Value and trust ranks higher in all consumer surveys over price · Becoming involved with your local community will become a key part of your overall marketing strategy to attract the right kind of customer · Becoming involved with Auto Part Company Programs, such NAPA Car Care and CARQUEST/Advance TECH NET should be considered. Partnering up with National Brands can be a viable way to remain competitive in the future Tony Molla also may it a point to say that the auto aftermarket must put aside any differences it has and work together. He went on to say that we all need to get involved with the industry, attend trade shows and keep up to date with what’s going on in the auto industry.

Great story Gonzo! And thank you, now I know two more things I should never do...buy a used rental car or go to Pike's Peak! Joe

Great, I will let people know when and if this happens.