Joe Marconi

I think you make a great point. Money is not the only motivator. Great working conditions, benefits, have confidence in the industry and in their future, are just some of things people look in a job. It often boils down to leadership, starting at the top. This is tough industry, the more we understand the workforce of today, the better we can plan for the future.

I have bought my share of lifts in the past 34 years in business. My opinion Rotary and Mohawk, would be my two choices.

Smith Corona, a global typewriter company, was founded in the 1886. In 1991, CEO Lee Thompson made a statement that Smith Corona would never abandon it core product: The Typewriter. Four years later Smith Corona was bankrupt. What went wrong? Smith Corona viewed itself as a typewriter company, not a company that offered solutions and products to businesses. By the time Smith Corona tried to get into the word processing market, it was too late. Technology had passed them by. So, the question for all of us is; “What business are we in?” We will see big changes in our industry in the next few years. It’s how we adapt to change, embrace technology and truly define who we are that will make the difference in our survival. Your thoughts?

The chips people have on their shoulders is bad enough. Sometimes, other shops go out of their to prove they are right and the other shop is wrong. They half-listen to the customer, prejudge and want to make themselves look good at the expense of the other shop. Great topic and very relevant to real world experiences.

Wow, what history in your family! Thanks for sharing!

Man, this can go on forever. Never thought about, but there's a lot more behind a name than I realized. A little off topic, but it still deals with car names. When I worked for Ford in the 1970s, we had a customer who bought a Ford Granada. He picked it up and returned the next morning to show the salesman something. On the driver's side of the car was the name Granada, and the passenger side had Monarch (Mercury's version of the same car). We never did find out if this was a joke from a factory worker or just a mistake. When asked if he wanted the Monarch name removed and the Granada nameplate installed, he said "No, are you kidding? This is priceless. This will be the talk of the town." After all, it's in the name, right?

Today is July 4th, the birthday of our nation. July 4, 1776 is when we declared our independence from England. As we take time to celebrate, we need to also reflect back on our nation's beginnings and all that we, as the greatest country in world, as accomplished. I want to wish everyone a happy July 4th holiday weekend! Joe

Many people are hurting financially. It's no wonder that so many people are trying to save money. But the fact is, when they try to save a few bucks, they end up wasting more. I don't know where we are headed with this situation. But I do agree with you Gonzo, shops need to make a profit in order to remain in business. As an industry, we are too often under paid, and go above and beyond the call of duty to try to educate and consumer base that is not willing to learn.

With school ending, the focus will be on summer, and that means vacations. Meet with your techs and advisors and strategize on ways to insure that your customer’s cars are prepared for summer driving and for road trips. Create and promote a “Summer Vacation Road Trip Package”. Emphasize to your customers the need to insure that their cars are road-ready for the summer fun. Areas of concentration: Air conditioner Coolant Tires Wipers Oil Change Air and cabin filter Lights Fluid levels Belts and hoses Etc. Be proactive today. Your customers and your bottom line will thank you.

We are headed down the road of no return if we continue to let people dictate to us how to do business. Can anyone walk into Starbucks and say, "Hey bud, that cup of coffee is way too high, the deli up the block sells a cup for 59cents. Can't you do better?" Now, before you tell me that it's not the same, it is. And until we realize that it's the same, we are all going to suffer. We put too much emphasis on WHAT we do, instead of WHO we are. You can get a water pump or an alignment anywhere, right? Just like you can get milk or eggs anywhere. And that's the problem, if the consumer sees little difference from shop to shop, price becomes the issue. Now, I ask you, Can you get a Starbucks anywhere? No, because Starbucks does not sell coffee, they sell, "the experience of going to a Starbucks" Have an open mind here. Position your shop differently and get the clientele you want and appreciates you. Don't sell water pumps or alignments....sell quality, community focused, world class service, great warranties, the experience,etc. My thoughts, agree or disagree?

The comments made in this forum are right on target! Great posts! When Goodyear came to me to become a G3X dealer, my first worry was to become branded as a tire dealer. That, I did not want. Because of this, I did not change the look of my shop, and I do not fly the Goodyear Logos anywhere (Except on certain marketing material and business cards) I always sold a lot of tires. I did not need Goodyear to help me. And, I DO NOT want to change my brand image. What G3X gets me is better pricing, marketing promos and the advantage of using the Goodyear credit card ( 0% percent financing, up to one year on all repairs and service, not just tires). I price my tires to make a profit, not to be competitive with the three Tire Dealers in my town. But, I need to emphasize, my shop looks no different than it did before becoming a G3X dealer. Our shop's success is in who we are, not what Goodyear is.

Finding quality techs has always been an issue. Let's face it, the best techs already have jobs and the industry does not attract enough quality people. It's amazing when you think about the thousands of techs that graduate each year from tech schools...but where are they? And the ones we see are not ready for prime time. Mentoring a young tech can be done, I have done it. BUT, you need to find the right person. Look for people with talent, a great attitude and has the ethics to work hard. If he or she has the talent and the drive, all the other skills can be taught. Great post!

A little different for you, but as usual, right on point. There are so many businesses, not just repair shops, that run their business like it's 1980. Everything living thing has to evolve. And a business is a living entity. If we don't embrace change and refine our strategy, we fall victim to complacency. As you pointed out, we need to stay at the forefront of mechanical technology, but also with regard to business and marketing. Be more proactive is both challenging and intimidating, but it will put you headed in the right direction.

Well said! Your father has found the key ingredient to success.

Setting up a bonus plan need to be thought out. I would suggest paying bonus for anyone involved with production: mechanics, service advisors, managers, etc. But, the key thing is you need to know your numbers, when you are profitable, and you must set goals. You must also set min levels of expected performance which they must hit on a consistent basis. Perhaps the toughest part is the what amount to be paid. That's why you need to know the numbers. Many shops get into trouble when they base it on sales only. You can have the same sales week two weeks in a row, but with different gross profit amounts. When you say twice a year, do you mean the bonus will be based on a six month goal to hit? The reason I ask is this; if you make the goal to hit weekly it keeps people energized, too long a period and people loose interest. One more thing, the goal to hit for bonus must be something to work toward and not too easily achieved. For techs you need to look at hours of production and for service people the plan must be based on sales. I hope I did not complicate matters.

Life can sometimes throw us a curve ball. All of us have a something or someone in our lives that presents a challenge for us. You are probably stronger because of your experience. Thanks, and happy Father's Day!

Wow, you nailed it again Gonzo. We see this sort of stuff all too often. We had a Jeep sent to us for a brake problem. The other shop correctly diagnosed the master cylinder, but could not get dash light to go off. The brake fluid low level switch in the new master was defective. Not brain surgery. I don't understand the thought process of some of these techs. Maybe it's the shop culture? Maybe there isn't enough training or any operating procedures. Whatever it is I agree with you, go the distance.

Thanks, I wrote that years ago and repeat from time to time. A lot for personal reasons, as you can imagine.

MEN OF STEEL Some of my fondest memories as a young boy in the 1960’s were the Saturday afternoons I spent with my father at Babe’s Body Shop in the Bronx. Babe and my father were old army buddies who served together in World War II. They grew up in the same neighborhood and remained friends their entire lives. I never knew his real name or his last name, everyone just called him Babe. As my father and Babe would talk about the old days and the War, I would wander off and watch the men in the shop perform their magic. I can still remember as if it were yesterday. I watched in amazement as these men took a wrecked car and pounded it back into shape. In those days, you didn’t just replace a fender or quarter panel, you fixed it. These guys had the strength of Hercules and the skill of a Michelangelo. I remember on one particular day, my father noticed how fascinated I was watching the guys in the shop. He knelt down beside me, pointed to the guys and said, “I call these guys, Men of Steel. These are tough guys that work hard each and every day. They can take a crumpled-up fender and with hammer in hand, work it back into shape just the way it looked when it rolled off the assembly line; and all by eye”. Before we left to go home, my father and I walked around the side of the body shop and pulled two sodas out of the Coke Cooler. Then we would sat down on a bench seat taken from of an old Desoto and finished our Cokes. Could an eight year old ask for a better summer Saturday afternoon? For many of us, childhood memories have served to create pathways to our careers. The auto repair industry is filled with shop owners and mechanics that draw upon past memories to shape their lives. The auto repair industry may have changed a bit, but we still perform magic every day. We are a dedicated breed and should be proud of what we, as a group, have accomplished. My passion for this business was born watching those “men of steel” back in the 60’s. I knew from a young age what I wanted to do in my life. I feel lucky that way. I often wonder how many people go to work every day hating their jobs. I am a mechanic and a shop owner. It’s the life I chose and it’s the life you chose. We all have a special bond. The glue that has bonded us together is our past. That same glue will help secure our future. My father encouraged me to open my own shop and we shared some great times before his passing in 1986. You see, he was also one of those “Men of Steel”. I’m not one to live in the past, but I would give just about anything to have one more summer Saturday afternoon, sitting on that bench seat behind Babe’s Body Shop sharing a coke with my Dad. Happy Father's Day!

We have all been there. When we are busy, we sometime are focused on putting out all the fires in the bays. I think that the because you took the time to post what happens tells us that you feel you could have done things differently. So, learn from it, and move on. Life is a journey, not a destination. Each step is another opportunity to see new things and learn.

Years back, traditional marketing and advertising worked really well. But, if you are like me and have been tracking the effectiveness of traditional marketing and advertising (radio, TV, print, direct mail, etc.) you will agree that it's just not what it used to be. A few years back I began to get more involved with the community: youth sports teams, school events, fund raisers for local organizations and other community-based functions. And it's paying off. I also reduced my ad budget as I did this, and put the money into this community-based strategy. I also started doing the local Business EXPOs and other local business street fairs. It's a long process, but worth it. You build your brand around the community and attract people to you that are also like-minded and value what goes on in your home town. I am not suggesting giving up your advertising all together, but if want to build your company in your community and make it stand out, consider this strategy.

Truly understanding the numbers and how they relate to the bottom line is the only way to insure your success. Many hidden problems can be identified by evaluating the numbers. While I do agree that gross profit dollars are what we should be most concerned about, the right mix of KPIs will get you to where you need to be. One example: You are posting an $84.00 labor rate, you have two techs working 40 hours each and you pay those techs 20per hour. With payroll expenses and other benefits the techs cost you $25.00 per hour. The $84.00 labor rate is needed to attain your 70% gross profit on labor. In a perfect world you would expect 2 techs billing 80 hours per week, at your $84.00 rate should produce $6720 in labor, right? Well, what if the two techs produced only 50 hours of labor (which is typical of many shops)? That would lower your labor dollars to $4200. Now, when you look at the labor produced vs. the hours the techs worked, there is a shortfall, and the actual labor per hour generated was only $52.50 per hour, not enough gross profit to support the two tech's payroll. So, what you need to do is to see where the issues are: Is it the tech's efficiency? Is there too much down time between jobs? Are we not billing enough labor? Are we giving away too much unbilled labor? Are the techs doing other tasks around the shop that do not produce income for the shop? Finding the reasons will cure the labor problem. Sorry to be long-winded, but that is one example of truly understanding the numbers.

What a chase, what a driver!