Joe Marconi

Many Americans mistakenly believe that Veterans Day is the day America sets aside to honor American military personnel who died in battle or as a result of wounds sustained from combat. That's not quite true. Memorial Day is the day set aside to honor America's war dead. Veterans Day, on the other hand, honors ALL American veterans, both living and dead. In fact, Veterans Day is largely intended to thank LIVING veterans for dedicated and loyal service to their country. November 11 of each year is the day that we ensure veterans know that we deeply appreciate the sacrifices they have made in the lives to keep our country free.

We all know the value of making a great first impression. The way you greet your customers has a direct affect on sales and your overall success. But, why is it even more important to impress a first time customer? Think about your favorite restaurant which you have been going to for years. You are a loyal to that restaurant and continue to patronize it without even thinking about it. But do you go out of way to promote that restaurant? Probably not; and unless someone happens to ask you, you don't go around your neighborhood telling everyone about your favorite restaurant. Your long-time customers are no different. You have done a great job over the years and built long-lasting relationships. You have created a level of experience that they have to come accept. And to some degree, take for granted. This is not a bad thing. Its just a fact. This is one of the reasons why you need to continue to deliver that level of service your customers have grown accustomed to in order to keep them. Now, lets take a first-time customer. Their anxiety is usually high. Your shop is all new to them and they don't know what to expect. They may have had a bad experience at another shop. If you dont do something so extraordinary, they will not be impressed. And if they are not impressed they will leave your shop with no reason to promote it, and no reason to return either. But, if you really do WOW them, if you go the extra mile and create an amazing experience, they will leave your shop with a feeling of elation. When the level of experience for a first-time is so extraordinary, they will leave your shop and become song birds for you. They will tell their family about you, their friends and their coworkers. Each new customer is an opportunity to grow your business. If the experience with a new customer is less the ordinary, so will your business.

Source: Do you know why it is so important to impress a first-time customer?

I can see how you can into trouble with the matrix. That's a great point. Our oil changes for conventional oil runs in the $49 to $59 range, for most cars. We charge more for large SUVs, Light Trucks and luxury cars. I think we need to better define the LOF and a maintenance service. What we do is to sell the idea of preventive maintenance and promote seasonal maintenance packages. So 4 times per year we offer a Seasonal Maintenance which will include an Oil Change service. The package starts at $79.00 for conventional pass cars. We perform a list of inspection item inspection, an engine additive and the tire rotation, if needed. People buy this for peace mind and it's more profitable that doing a LOF with the included multi point. I bring this up to point out that if we bring value to what we are selling and package it with value, people will pay for value. If we sell a commodity, which the oil service has become, we are always limited to what we can charge. I hope this makes sense, if not let me know so I can explain better.

All time classics. It is amazing some of the things people say and do. Great stuff, and very enjoyable to read.

The controversy of oil change services always stirs up a heated debate. Many shops still use the LOF as a means to attract and keep customers. Other's say that when you advertise a cheap oil change, it sets the benchmark for all your other services, and may bring in the wrong customer. I cannot state with all honesty what is right for all shops across the country. I will say that as an industry, our prices in general are too low. And if we do focus on price, we tell the consumer to please judge us on price alone. In the Northeast there is a company called, "Bob's Discount Furniture". He's on TV every night asking people to buy from him based on the price of his furniture. Most of us would go out of business with this strategy. Look at your business, understand the numbers, identify what customer type will give you the greatest return and create a business that caters to this customer. You will find that people come to you not because of price but what you really offer...and that's service, quality, peace of mind and the relationship.

Yodle calls me at least once a day. Has anyone used this, or heard of it, or can provide any feedback? I would appreciate it. Here's a link to the Yodle site. http://www.yodle.com/?utm_source=google-paid-search&utm_medium=cpc&utm_term=yodel&utm_content=Yodle%20-%20Core%20-%20General&utm_campaign=Branded%20Yodle%20-%20Exact

Mandatory vehicle safety inspections have been debated for years. States that perform a mandatory safety inspection, cherish the opportunity to insure that motorists are driving safe vehicles. States that don't require it leave it up to auto repair shops and car owners to insure that cars are safe for the road. On Nov. 14, the Automotive Service Association (ASA) and the Automotive Aftermarket Suppliers Association will host the Vehicle Safety Inspection and Maintenance Forum in East Norriton, Pa. The purpose of the forum is to discuss the importance of periodic motor vehicle inspection programs and what can be done to protect these programs, the ASA said in a release. Does a Vehicle Inspection Program help business and is it needed? For more information, here's a link: http://www.ratchetandwrench.com/RatchetWrench/November-2014/ASA-to-Host-Vehicle-Inspection-Safety-Forum/?utm_source=KnowledgeMarketing&utm_medium=RW%20-%20Newsletter%20Emails&utm_term=RW%20-%20RW%20Insider&utm_content=RW_TheRWInsider_20141104&utm_campaign=Be%20Prepared%20to%20Sell%20Your%20Business&eid=211700044&bid=959389

No, sorry.

I was attending a recent TECH NET council meeting a few weeks back and one of the topics discussed was Exit Strategies. One of the members spoke about finding a key person in your company, if there is no one in your family to consider. There are many shop owners out there that are near retirement. It would be a good idea to share a few ideas. I know many shop owners may not even have a plan. My lawyer approached me about a year ago and insisted that I sit down with him to plan out my future. I am 59, been in business for 34 years and been in the auto repair business since high school. If your story is similar to mine, it's something we need to start planning. Thoughts? Comments?

Automechanika Chicago, the U.S. tradeshow dedicated to high-end training and new product discovery for service and collision repair shop owners and technicians, currently reaches 150 exhibitors and is on track to reach the expected goal of 400 exhibiting companies for the 2015 inaugural event. Over 8,500 attendees are expected to attend Automechanika Chicago which will take place April 24 – 26, 2015 at McCormick Place West, Chicago, Illinois. Companies already committed to Automechanika Chicago include SATA, BOSCH Automotive Services Solutions, WORLDPAC, ZF Services, Hitatchi Automotive Systems Americas, Honeywell Turbo Technologies, Schaeffler Group, and many more. Here's a link for more information: http://www.searchautoparts.com/automechanika-chicago/automechanika-chicago-event-news/automotive-industry-shows-strong-support-auto

Here's a quote for Election Day: "Nobody will ever deprive the American people of the right to vote except the American people themselves and the only way they could do this is by not voting" Franklin D. Roosevelt

Welcome to AutoShopOwner.com. If you joined looking for knowledge about the automotive business, you are in the right place. The members contribute a ton of knowledge, and I have no doubt you too will contribute. We are all in this together and that's the strength of ASO.

This has been a record year for automotive factory recalls. Some 40 million cars have been recalled already. And while we would assume that this would have a negative impact on new car dealers, the increased traffic to the dealers has actually helped dealers with new car sales. Below is link for to an interesting article in Aftermarket Business. I wonder how this strategy can be used to our benefit? http://www.searchautoparts.com/aftermarket-business/market-trend-analysis/dealers-look-build-customer-relationships-auto-recalls?cid=95879

A few years back, my service advisor was speaking to a customer about the condition of her tires. He explained in detail that the tires on her car were worn to the point that she needed to replace them and recommended she do this before the winter. He explained all the safety benefits, the differences between all-Season tires, winter tires and standard radials, and also gave her a few top brand choices. He did a great job. He did everything but sell the job! Let’s fast forward. On her next visit, her oil change service, my advisor noticed a brand new set of Bridgestone tires on her car. Perplexed, he asked the customer why she did not buy the tires from us. She replied, “You told me I needed tires, you never once said you could sell me tires.” She believed my service advisor and was thrilled he took the time to educate her. But, he forgot one important part of the sales cycle; Asking for the sale.

Source: Be Careful you’re not making a sale for your competition

Gonzo, I truly admire how you take a theme and transform it into a story that we can relate to and enjoy at the same time. You bring awareness to things that we look at, but don't see. Thanks for continuing to post your article. They add so much to these forums.

Unfortunately, there are people, who only see price. So, the more value we put into the job the better. In order to avoid customers questioning labor and/or your overall price, you need to do a few things: Bring value to your services and repairs, know your key profile customers (the people that trust you and don't question you) and instead of selling parts and labor, sell you and your shop. Let me explain. Outback sell steak...just a steak. So the price has to be cheap. Their brand caters to a particular segment of the population, or to consumers that are looking for a good meal at a reasonable price. Now, Morton's Steak House or a Ruth Chris Steak House, does not just sell steak. They sell customer service, fine dining, atmosphere and they sell the "experience." Their steaks are 4 to 6 times higher in price than at Outback. Is the steak at Morton's 6 times better than at Outback? Who knows. But the point is they can charge those prices because they have done a great job at removing price from the equation and replaced it with a lot of value. The best shops and the most profitable understand this concept. Don't sell just a water pump, if you do, you will be in trouble. You are not a Deli selling commodities like milk or eggs. If you were I would say price IS a concern. Bring value by telling the customer what they get, all the little extras you do, the warranty, the follow up inspection. Anything that positions yourself different from the Shop down the block. And find the Right Customers. If we continue to go down the road Repair Pal wants us to, we are going to be in trouble. You cannot "cookie cutter" your services. Sorry for being long-winded.

The issues with labor rates continues to plague the industry. Most of us do not get the labor dollars we desperately need. But, there is also something we need to consider. Labor production in the independent repair shops on average is about 55-60%. So, even if you charge $100 per hour, your effective labor, which is the real dollar amount you are making per hour, may only be around $60 per hour. In other businesses, if they work 3 hours, they multiply their labor rate by 3 and that's it. It's not always that way for us. A tech brings in a car that has 2 labor hours assigned to it. The tech then helps another tech bleed brakes, goes onto the tool truck, has a smoke break, helps push in a another car for another tech, and ends up taking three hours on the job. So, to add my 2 cents here: Look at your production efficiency, your shop layout, how you bill the customer, charge for testing and Diag properly, and charge what you need to charge. Thanks xrac for bring up this issue.

I am not here to judge anyone or tell someone how to run their business. But, here is situation that bothers me. I was recently at a shop council meeting and one of the shop owners told that his master tech, a man in his mid 30s cannot get a bank loan to buy a house. When he told ne what he was paying him, I asked him, "That is a real good salary, why can't he get a loan?" He went on to tell me that this tech has only worked for him for 9 months and all his other jobs were either "off the books" or partially off the books. So his last three years of tax returns do not look all the good. I am not naïve or going to tell anyone that I am a Saint. But, this got me thinking. Is this just another one of the reasons why we are plagued with image issues and maybe a reason why many shops struggle? Let me play devil's advocate here. Isn't it true that the best run shops and the most profitable are those that are 100% legitimate. I will leave it right there....

Thank you Scott for your honesty. The truth is we source out the best parts and if we see a trend failure, such as a particular brand that has a high failure rate, we will not buy that particular line. We deal with many different part suppliers because of that reason. We also will go to the dealer (reluctantly) for certain items. For example, on some cars we will only buy factory catalytic converters. What I can tell you too, is that we are seeing an uptick with dealer defective parts too. We needed a transfer case for a Jeep, and we decided to go with the dealer unit. The first 2 units were defective right out of the box. The third was ok. So, I think that what ever is happening, is an issue industry wide. We purchased a PCM for a Dodge Van from the local dealer, and we went crazy trying to find out why the Van would not start. Defective PCM. In regard to my culture, you are correct and I mean what I say. My people are my brand and we are known for our customer-friendly employees and how we treat our customers. Thanks for the comments. That's the power of ASO and of networking on the forums.

You know, it is hit or miss. I have done a lot and tried a lot. What I have learned is that it is never one thing, but a combination of many things. I also learned that different forms of marketing and advertising works differently in different parts of the country. What I can tell you is that the only form of marketing that has worked the best and the most consistent is at the Front Service Counter and on the phone. Delivering world-class customer service. If you deliver that world class service and get the customer to truly think of you as a friend or family member, they will trust you and not question your price or recommendation. This will also keep them coming back. Think about, if your best friend, brother or sister came to you today and you told them they needed front brakes, would they question you? Well, get customers to feel like they are family or best friends. I hope this answers your question.

Welcome and great post. There are tons of great information on the ASO. So, don't be a stranger and best of luck to you.

Oh, so that the reason! Good reason. Funny!