Joe Marconi

As many of you know, in addition to being a shop owner and cofounder of AutoShopOwner.com, I also work for Elite as a business coach and also present business seminars. But, I want to remain as neutral as I can. ASO is an open forum and I want everyone to be able to express their opinions. That's why you will not see me promoting myself on the forums, it's not the right place to do that. What I can tell you is that understanding the numbers of the business and setting goals is your pathway to success. A great resource for understanding business and numbers are: Mitch Schneider's books, here's the Amazon link: http://www.amazon.com/Mitch-Schneider/e/B001K8TY4O/ref=dp_byline_cont_pop_book_1 I have read them all, and even though they were written a few years back, they still apply today. As far as seminars, I really can't comment on other companies. I can tell you that the Elite Fly with the Eagles Course is a 5 day powerful seminar that lays out the foundation for shop owners, covering key performance numbers, cost control, employee management, hiring employees, marketing, time management and a lot more. Again, I want to remain neutral on ASO, if anyone would like more info, you can always email me.

Thanks for sharing the tip, this is of great value and one of the reasons why the forums are so powerful! Thanks again!

Interesting point!

Best of luck and don't be a stranger to the forums.

All great reasons why we need to stay the course and conduct business as professionals. Another story: A customer with an old BMW bought a starter at the local AutoZone. He wanted us to install it. My manager insisted that we perform a battery/starter test first. After a lengthy discussion which bordered on an argument, the customer agreed. The problem was not the starter, it was a corroded starter terminal. But here's the other side of the story; the customer could NOT return the starter to AutoZone. Every shop owner has similar stories.

I agree. Proper scheduling will help with billable hours.

First, it's always good to celebrate and reward accomplishments. The only word of caution; put the emphasis on people, quality and customer service first. I am not suggesting that the numbers of the business are not important, they are. But you must reach people but rewarding the intrinsic values people have: Self motivation, helping others, team work and the desire to perform at one's best. When you promote these attributes, the rest will fall into place. Now, with that said, every business is different with what it needs to be successful. Some of the key numbers that shops need to track are: ARO, part profit, labor profit, shop/tech efficiency, shop/tech productivity and your expenses. There are benchmarks, but to be honest, I am not sure if using benchmark numbers should be used without understanding your business. I recommend speaking to an accountant or taking a shop management course for shop owners. Common benchmark number for the most common KPI's: Part GP: 50%, Labor GP: 70%, Expenses: 40%, productivity 80 to 90% and efficiency: Over 125%. BUT PLEASE, these are common benchmark numbers, I strongly advise you to do your due diligence on your business.

As shop owners, what we say to our employees and how we act is important in how others view our ability to lead. It’s crucial to be consistent with your policies and with everyone you employ. Never show favoritism and follow through on all promises and commitments. The morale of the shop starts at the top. The shop owner, the leader, sets the tone. We all know how hard it can be to remain positive and find the good in people and that silver lining each and every day. But, if we are poor leaders, inconsistent and convey a negative demeanor, the results will be damaging to not only to morale, but to the success of the company.

Source: Be consistent with what you say and do

Great article! The way you express what we go thru on a daily basis is amazing. I once had a customer accuse me of removing his tires and mounting a cheaper set. Why in the world would anyone do that?....you know...as I write this post I think I just felt it...something under my feet just moved...

I know many shops that need car counts and are still feeling the effects of a rough economy. It's hard to say no to a job, any job, at times. So, when a customer arrives at your service counter with a set of pads and rotors on a real slow day, it's hard to say no. But, the truth is, as an industry we are hurting ourselves in the long run. We survive on profit from parts and labor. And what about part quality or warranty? We are still responsible for the job we do. Try explaining to a judge that it was the customer's "Part" and not your "workmanship". And unless you are willing to boost your labor by 50% or better, you are losing big time by installing the customer's parts. Like I said, I know it's hard at times, but we would all be in a better place if we stood together on this one.

Does your management system have a calendar? Scheduling is not an easy task. You need to balance profitable work, emergencies, service work and waits (if you have customer waiting). The key thing is to make sure you have enough opportunity to book labor hours. If you run the shop like an emergency ward, you may find that labor production suffers. It's hard to say no, but you cannot be everything to everyone. Your best customer will understand. Try to stick to a schedule and leave open slots for those jobs you truly cannot say no to.

I think it's a great idea. Cars today can easily last 200k or more. It could even be promoted thru social media, where it could gain traction. I would promote the fact the preventive maintenance is the key the lowering the cost of car ownership and extending the life of your car.

Welcome to ASO! Don't be a stranger on the forums.

I don't have the entire answer, but the fact remains that for the most part we need young people to enter into the workforce and remain there. I believe it is the responsibility of the present-day shop owners to do whatever they can in their communities to help create a pathway for these young people. I know many of them cannot hire just anyone, but perhaps a shadow program or some type of internship? Everyone where I go and everyone I speak to continues to complain about the lack of quality techs, we need to do more than just complain.

What a story! The young boy is destined for greatness!

I think that's what separates the "traditional mechanic", from a parts changer. I have known many speedy mechanics in my time that can beat the book on anything from a clutch to an engine swap, but when their backs against the wall with a problem, they fall flat on their face. Being able to think abstract is a talent, and something you cannot teach to someone. I would love to sit down with a few veteran mechanics and trade MacGyver stories.

No, it's everyone and everywhere. It's amazing what we have to deal with at times. Thankfully there are still a lot of quality customers too.

I have not heard of any training with Mudlick. As far as the effectiveness, I have heard different success stories. I guess it depends on different factors: the branding message, consistency and the target customer.

Is the auto repair and service industry getting so complicated that we should consider different level technicians and specialization? In Europe you have tire techs, transmission techs, electrical techs, etc. Let’s face it; with what a tech has to learn these days, it’s hard to have a tech bounce from a complicated air bag problem on a Mercedes to an intermittent fuel injection problem on an Audi and then to an alignment on a Ford Pickup. Would different level techs or specialization in different areas be a better approach? Or am I way off base here?

Keeping track of tech's hours is crucial to understand labor profit. We use Mitchell Manager, and the techs hours are entered in to the system. If a tech works 40 hours and he bills 40 plus hours, that's good. But if he is billing lower hours than he is working, you need to find out why. Is there enough work? Is there too much down time between jobs? Is the tech waiting too long for parts? Is the tech waiting too long to get authorization for a job? Or is the tech too slow due to lack of training or experience? All these are factors that must be analyzed. I can tell you that low billable hours vs. what a tech's potential hours is a big problem in terms of profit. One more thing, efficiency and productivity are different. A tech can finish a T belt in 3 hours, but the book time is 4. That means the tech was efficient on that job. But if he has to wait an hour and half before he starts his next job, his productivity just went south. That's where a time clock can help you with understanding efficiency and productivity. Hope this helps?

One thing I see different with young techs today from years back is the lack of hands-on experience. In my era, mechanics got their start pumping gas, working with their father on the family car and helping friends. By the time you landed a job in a garage, you had the basics under your belt. I am firm believer in hiring entry level techs, always have been. I contact the trade schools; Lincoln Technical, Universal Technical Institute, etc. I have to tell you, the last few years have been a bit discouraging. When I look at their resumes I am shocked that they never worked in a repair shop. Oh, they have worked as a camp counselor, at the local deli, at Rite Aid and Apple Bees. But no hands on mechanical work? Some of them never worked on car other than what was required at school. These schools are pumping out techs by the thousands. Are they all like this, and where are they too? Our future is dependent on a strong entry level workforce. I think we need to rethink the process. I also think that trade schools should adopt a concept similar to the medical field. Nurses and doctors must go thru mandatory work at hospitals while still in school and then go thru internship programs. You would never put a doctor in an operating room, fresh out of Med School with no hands-on experience. Would you?

Through the years in business I have hired a lot of techs. While I never encourage the joke playing on the new guy, I am fascinated by what the veterans come up with. I remember once when the other techs stuffed a pair of uniform pants with dirty shirts and rags and put the bottom of the pant legs in pair of work boots. Then they laid the pants behind the right rear wheels as the new guy was backing a car out of the bay. They started screaming as the car was moving, and in the rear view mirror he saw the uniform pants and boots and thought he ran over a fellow mechanic. Funny? Well thank God the newbie had a sense of humor and strong heart.

Not yet, we are working on a 150K program and need to come up with a slogan for the frame. I want something different that will stand out. Like: 150,000 MILES, STILL GOING. THANKS OSCEOLA GARAGE!