Joe Marconi

I word of caution with regard to price. There needs to be a balance between being profitable and competitive. However, you need to be very carful you don't promote price over value. Two of the same services can be priced differently and yet the higher price may have more value. For example: If you sell a set of tires that includes lifetime rotation, flats fixed free and nationwide road side assistance, those tires can be sold at a higher price due to the value to the consumer. Longer warranties is another way to differentiate your services and not worry too much about price. With regard to transparency with customers, again we need to position our business not like every other business. We do not sell commodities, like milk and eggs. We sell service. Sell the job: the benefits that the customer can get from you, that cannot be gotten from another shop. Think of Starbucks, you are not buying a cup of coffee, Starbucks has more perceived value in the mind of the consumer, so price is not an issue. Of course there is one more marketing element: Starbucks targets its profile customer, those that are willing to pay. I hope I am making sense. I have been on both sides of the price equation. For me: Be competitive - Be profitable.

Spoken from a man of obvious wisdom.

You always find ways to top yourself! Amazing, truly amazing!

The Pearl Harbor Attack, December 7th 1941 A day that will live in infamy On Sunday morning, December 7, 1941 America's naval base at Pearl Harbor, Hawaii was attacked by aircraft and submarines of the Imperial Japanese Navy, killing 2,403 American military personnel and civilians and injuring 1,178 others. The attack sank four U.S. Navy battleships and damaged four more. It also damaged or sank three cruisers, three destroyers, and one minelayer. Aircraft losses were 188 destroyed and 159 damaged. The day after the attack, the United States declared war on Japan and entered World War II. President Franklin Roosevelt, in a speech to Congress, stated that the bombing of Pearl Harbor is "a date which will live in infamy." There are some things that we must never forget, the attack on Pear Harbor is one of them.

Thank you, but the truth is, it's shared knowledge. Time, age, experience has taught me well. And I am glad to share and help.

This is a topic that is brought up each year, but I think it's worth revisiting. Around the holidays and end of year, shop owners in general want to show their appreciation to their employees and will give them a bonus. How do your structure the bonus? Money? Tool certificates? Other?

What a classic! I really enjoy this. Gonzo, Thanks for all the great articles and all the great contributions you make all year long. I cannot thank you enough. It's members like you that have made ASO so successful and a great business resource for our industry!

This is a great post and a great topic. Take from someone who hit rock bottom 23 years ago. I was both emotionally broke and financially broke. The only way I was able to climb out of the hole that I dug for myself was to admit that the problem was me. It was not until I changed the way I thought and got the help I needed, that things began to change. From that moment on my business grew and grew and I never looked back. Today, my business is on auto-pilot and I am loving it! Shops owners in general are too technical and run their business from that mindset. We are business people. We are business owners. We are leaders. If we don't develop those skills, we will be in trouble. I wish you the best of luck. Get the help you need. Learn about business, about marketing, about customer relationships and employee management. Work on your business, not in it.

I know that there are many things on your mind this time of the year. With the winter coming and the holidays upon us, theres a lot going on these days. But, as a business owner, you need to consider that 2015 is right around the corner. The better you prepare now, the more successful you will be in the New Year and beyond. I have put together a short To Do list to help you prepare. 1. Review all the numbers for the first 11 months of 2014 and compare those numbers with the same 11 months in 2013 and 2012. 2. Based on the numbers, you can now begin to plan out your 2015 budget. 3. If you have not done so yet, have a meeting with your accountant. Review all the numbers for 2014. You want to know now about projected taxes you may owe, and not wait until April 15. Also, make sure you get a current checklist from your accountant on what is needed for yearend 2014. 4. Review your inventory. This goes hand in hand with your tax strategy. It will also indentify dead stock that hurts your cash flow. 5. Are there any tools, equipment, improvements to your facility or any other expenses that you can use in 2014 to reduce your tax liability for 2014. 6. Review all your goals for 2014. Did you achieve all your goals? If you did not, dont worry. Thats to be expected. Reestablish your personal and business goals now, before the end of the year. Also, start thinking about your future training and equipment needs. 7. Contact your financial advisor and discuss any financial issues and retirement plans. 8. Have an end of the year shop meeting. Outline all the accomplishments of 2014 and outline your goals and objectives for 2015 and your vision of the future. Most important; thank each and everyone for their efforts and make sure you convey to everyone that its the efforts of the team that determines success. 9. If you have not done so in a while, have one-on-one meetings with your employees. Do not make it a beat up session. Promote the positive attributes of the employee and ask for feedback on how the employee views the business, and ask for ideas and suggestions on ways to improve the business. 10. And, lastly, make sure you set aside time to work on self-improvement. As the leader of your company, all eyes are on you. Its your vision, your leadership qualities and your positive attitude that ultimately determines your success. Remember, you can achieve what you want from life, if you help others achieve what they want. I hope you had a good year, and best of luck in 2015 and beyond!

Great post! Another way we have found successful is to include the road hazard with selected tires. You will need to position the pricing accordingly to maintain your profit margin. But, as you state, to replace a damaged tire, especially a very expensive Michelin, can be unsettling for the customer. I also agree that peace of mind is what you are selling. It's the benefits of the warranty, not the cost. And I agree with Xrac, this post shows the strength in network and sharing ideas and strategies.

This is exactly what I am referring to! Great post!

The decision to expand, move, or open up another location is never easy. I found myself in the same position about 8 years ago. At the time I had a six bay shop with very little parking. There were times when you could not even enter my driveway. I had to make a move. Luckily, years back, I bought property adjacent to my shop and in 2008 constructed another 4 bay facility and a much larger parking lot. We finished the project in 2009. The advise I can give is to run the numbers, know exactly what you will need to remain profitable, understand that you will need good people around, and build the systems and procedures that will allow the business to run without you having to hold everyone's hand each and every day. If you read my early blogs, I outline the steps I took for the project. http://www.autoshopowner.com/blog/2-joes-blog/

Source: Your business success is often found in what you dont do

As shop owners, we are often overwhelmed by all the tasks we need to accomplish on a daily basis. We run from morning till night putting out fires and dealing with difficult situations. The days, weeks and years pass us by. And we sometimes end up realizing that activity does not always equate to accomplishments. To be quite honest, too many shop owners are doing too many things that they should not be doing. For example, is it the best use of your time running across town to pick up parts? Or repairing the plumbing in the customer bathroom? There was a time when I thought that I had to be everything, everyone and everywhere; the lead tech, the service advisor, the manager, the building repairman, the bookkeeper, the receptionist, and even the janitor. And I also thought that every situation had to be handled by me. If not by me, how would things get done? In order to grow a profitable business, the owner needs to concentrate on what will achieve the greatest amount of return. For one week create a list of all that you do; every activity from answering the phone to helping in the shop. Then, begin to strike from the list, things that could and should be handled by someone else. When you narrow your focus on those tasks you should be doing, you will become more efficient and achieve more. Delegate and help others in your shop grow. Success is determined by not only how much you achieve, but also by how much you help others achieve.

The holidays are a great way to thank your customers, especially your loyal customers. Cards are great and small gifts are fine too. I like to keep the holidays strictly a gesture a gratitude, and nothing about business. For example, I got a Christmas Card last year from one of my vendors with a 10% coupon enclosed in the card. I don't think that's necessary. Treat customers the same as family.

Not crazy Gonzo. Real life stuff. I am a nut about tools. I got it from my father. He would say,"use a tool and put it back." If you didn't you would be in trouble. My frustration is seeing other techs not respecting their own tools. So how can they respect others. At the dealership, way back in the 70s I would mark my tools. To this day when I walk in the shop I am always on the hunt for tools. As you said under the bench, behind the lathe, on the press. Every where. Nice change and nice article. Enjoyed it.

A good friend of mine owns a plumbing business with 10 workers. Seeing rising workers compensation he found and signed with a local insurance broker that claimed to offer super low rates on workers compensation. This was 6 years ago. I will not bore you with all the details, and will fast forward to three years ago when my friend dropped the insurance because of so many billing errors being made by the insurance company. About a year ago, he got an email, (that's right an email) from the insurance company, not the broker, that he owed $10,000 in workers comp fees. After a year of trying to figure this out on his own, he finally brought all the paper work to his attorney. Here's the outcome: His lawyer reviewed all the paper work and found that the contract my friend signed exempts the broker from any liability and responsibility, that the workers comp insurance company can assess and requests increased fees above and beyond the contracted dates and rates at the time of the contract, and that all arbirtration is subject to the laws of the British Islands and all litigation will be held in the home state of the insurance company, Nebraska. My friend is from NY. The bad news, he is legally responsible to pay the $10,000. The bottom line; know what you are signing and have a lawyer review all contracts for you. We hear this story too often. Please note; due the possible law suits, I cannot mention the insurance company by name or the name of my friend.

In a few hours I will be flying to California to spend the Thanksgiving holiday with my grandson and family. But, before I left, I felt compelled to post a special thank you to all the loyal AutoShopOwner members. ASO has seen great growth in the past few years and the quality of content on the forums is unmatched by any other forum site. The passion we have, the dedication to our customers, and the willingness to help each other is a testament to the integrity of our industry. In the spirit of Thanksgiving, I would like to extend my sincere gratitude to each and every member and wish everyone and their families a joyous Thanksgiving holiday!

First; welcome and the best of luck. Building a business takes time...one customer at a time. Let me add that your need to also reach out into the community. Let everyone know who you are and what you do. Create flyers and make sure you hand out your business cards like its candy. You don't have to promote discounts on the flyer, just let your community know you, and I mean everyone. From the deli owner, to the diner, to the hardware store, the local schools, Churches, everyone. It will take time, but you will get there.

This is a tough situation. Everyone involved will have their perspective on things. It's one reason why I shy away from partnerships unless there are clearly defined structured roles. You need to have a sit down with the parties involved and come up with a solution that is best for the business and one that everyone involved can live with and agree to. If not, your hands will always be handcuffed. Business and friendship are two separate things. If friends can't work it out, there's a problem with the friendship and the business. One more thing to consider, your plan does not take into consideration how he feels about what you want to do. If the two of you are not on the same page, there will always be issues. Lastly, I agree with the others, speak to your father too. Good luck!

I think what you are doing is great! Meetings are a great way to boost morale and get buy-in from everyone. I hold at least 3 meeting a week with my manager. He holds at least 2 meetings per week with the service staff. We hold one meeting a week with the techs. We always have an agenda and never make it a beat up session. We bring up success stories and make sure everyone engages in the conversation. You have the right idea with your agenda. Best of luck to you.

Welcome to AutoShopOwner.com. There are a lot of great shop owners on the forums. So, you are in the right place. Looking forward to seeing you on the forums and the best of luck to you.

Why, why...it's still the fall!

You know the old saying; s_ _ t happens. It's good business to admit those things. People understand that things go wrong. It's when you try to hide it and get caught that's bad. You did the right thing. You set a great example for everyone.