Joe Marconi

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.

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.

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?

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!

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.

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.

I listened to this podcast with a lot of emotions. Collin Draker's perceptive as a technician should be required listening for all auto shop owners. The issues he brings up about the work environment and the auto industry are a real. With that said, there are many shop owners that are making a big difference, especially in the area of culture and the workplace, but we need to go further. Shop Owners: Take the time to listen to this podcast!

Great feedback, and great strategy! Thanks for sharing.

I like the six months inspection. Before I sold my business, I began a Pit Stop Service, where customers were scheduled every 6 months for a basic inspection. Unfortunately, the plan was implemented just before I sold the business, and without much data on it success.

Great strategy! Question, How long have you been using this strategy, and how has it made a difference in overall GP dollars?

Source: Feature in Ratchet and Wrench Magazine https://www.ratchetandwrench.com/magazine Vehicle Delivery Process: The First Step to Your Next Sale Every fall I have my chimney cleaned. For years, I would search for a reputable local company. Then, 10 years ago, I met Mike at AAA Chimney, and he became my go-to guy. Each year, Mike returns and earns my trust over and over. You may wonder if it's because he cleans my fireplace better than anyone else or if it's the price. While those are reasonable questions, the real reason why he gets my business year after year is simple: Before he leaves my home, Mike takes the time to review exactly what he did, gives me tips on how to best care for my fireplace and then he books the next appointment for the following year. In essence, he performs what we know as a vehicle delivery process, or in Mike’s case, a chimney cleaning delivery process. Performing a comprehensive vehicle delivery process and booking the next appointment in our industry is nothing new. Many shops have been doing it for decades. However, there are still many repair shops that have not adopted this goldmine strategy. The vehicle delivery process helps to create that memorable experience that gives the customer a compelling reason to return. When combined with scheduling the next appointment, your repair shop stays branded in your customers’ minds, improving customer retention and helping to ensure future sales. The auto repair business today is not like it was. Even 10 years ago we would measure customer retention with a factor of four, meaning that customers visited your repair shop about four times a year for routine services. Today, unless there’s a breakdown or a warning light, you’re lucky to see your typical customer once a year for routine service. Consumers these days don’t have the same sense of urgency regarding vehicle maintenance as they once did. Just think about all those customers who have traveled over 15,000 miles in their vehicles since their last oil change. This trend has been slowly creeping up for the past 15 years, if not longer. There’s another factor we need to consider: if the length of time between visits is too long, the average consumer loses some of the emotional connection they have with their repair shop. What you don’t want to happen is when the oil maintenance light does come on, your customer just finds the most convenient shop to get the oil service done. Think that doesn’t happen? Unless you're fortunate enough to be in a heavily populated area with no competition, and car counts are never a problem, you will benefit from a well-defined vehicle delivery process; a customer touch point that brings the entire customer experience full circle. Vehicle delivery is never a transaction. It is an opportunity to keep building the relationship. It’s also essential that your service staff discusses and books the next appointment. Everyone reading this knows that booking the next appointment is a strategy being done by dentists, doctors, hairdressers, nail salons, eye doctors, pet groomers, and yes, even Mike at AAA Chimney. Booking the next appointment is not limited to oil change services either. Just consider all those recommendations you make on just about every car you service each day. Why not create a process that helps to fill up your calendar with profitable future services needed by your existing customers? Don’t rely solely on your CRM program either. The impact of an engaging vehicle delivery process is powerful. Every customer that leaves your shop today will need future services and repairs. The question is: Where will they go? Make your vehicle delivery process your first step to your next sale. View full article

All great points, and also interesting to hear from your perceptive.

Great post relating traditional auto repair and service to the transmission business. In your opinion, did those customers that understood maintenance have less breakdowns with respect to transmission failures? Or do some models have have an inherent problem? Or a combination?

A must see for all business owners and leaders! An important lesson that will improve our lives and the people around us.

Time management is a shop owner's responsibility. Too often, you are doing too much. You are spread too thin. I get it, and I understand it. I was a shop owner for 41 years. And being sucked into the role of fireman was a daily ritual. However, if you are putting out fires day after day, you are not building your business. Why? Because you are taking care of the immediate needs, the things that are urgent and happing right now. To build a more profitable business and a better future, you need to live in the future. And that means working on things that will have a greater impact in the future, such as recruiting when you don't need to, working on your marketing plan, creating a budget, and setting the goals of the company. Allocate time each day, even if it's only a hour or so, to work ON the business, and not IN it. Build the processes and procedures that gets the team on the same page. Teach and mentor, as opposed to doing it all yourself. Learn to delegate tasks that you don't need to do. A wise man once told me, "You, the shop owner, should only do the tasks that only you can do. Everything else should be delegated to others."

Way back in the 1980s and most of the 1990s, we would base our business by the frequency of customer visits, usually 4 to 5 times a year. Those visits were mostly Oil Changes. Today, you are lucky to have customer that even THINK about doing an oil change. Most customer wait for the maintenance light to come on, and some wait until the OIL LIGHT comes on! Plus the miles driven has gone from 3 to 4,000 miles to well over 10,000 miles for the average oil change interval. With all that is changing, including the consumer's lack of understanding proper vehicle maintenance, isn't it better to sell a complete service, rather than just an oil change? Let your customer know that we are going to inspect the entire car, bumper to bumper, filters, etc., everything. And charge accordingly. Your thoughts and comments?

A shop owner friend of mine was concerned that a tech candidate did not have a resume. This tech reached out to this shop owner from a social media ad. Also, this tech has been working at a dealership for 10 years, and now wants to make a move. So, should we require a resume for every situation?

Words of wisdom, Gary. Thank you for the feedback!

It would be interesting for you to give us periodic updates, this is an interesting topic.

Charlie, I like the way you think, my friend! Thank you for the feedback!

“Leave your problems at home” is a common expression. The thinking behind it is that if you are having a problem at home, it will affect your performance at work. So, change gears when you get to work and put the problem out of your mind. However, can people just shut it off? Can they leave their problems at home? Consider this example; your technician and his wife have a very sick child who is getting worse. Their doctor is concerned and wants to refer the child to a specialist, fearing that something is seriously wrong. In this situation, do you truly expect your technician to shut it off, and simply put it out of his mind? Problems at home are part of life. As a shop owner, you need to be more understanding and have empathy. You also need to build a solid relationship with your employees that allows them to approach you in times of need or crisis. This is a key component to building the right culture with high morale. Here’s another scenario to think about: Let’s say your service advisor is overwhelmed at work. She is having a hard time keeping up with all the work and reaching the point of burnout. In addition, she works with a problem technician that is always complaining about something. Do you think this service advisor can shut off her work problems and not bring them home? The bottom line is this; as shop owners, you need to reach your employees on an emotional level. Yes, you are running a business and you have your own set of issues and problems. I get that. But your success is directly related to the success of the people around you. That means that everyone must feel that they are people first, employees second. The next time you see something off with one of your employees, don’t assume the worst. Pull them aside, show them you care, and ask if there is anything they need and if there is something that you can do to help.