Joe Marconi

I have a fellow shop owner who would like to know of how to "legally" dispose of waste gas? Any suggestions or waste disposal companies would be appreciated. The shop is located in Connecticut.

Makes sense, and I agree. I always say, when you are looking at a production problem, you need to look at the entire process: Estimating, scheduling, shop layout, training, tools & equipment, in-house information systems, service advisor skills, enough staff and great management.

I tend to agree with you. To add to your comments, I do think that there is also a responsibility of the shop owner or manager to ensure that estimates are written properly, and that the correct labor is applied to each job (as best as possible). For example. how often are deals made with the customer to sell the job, and many times the labor to test a complicated driveability problem is waived? Does the tech get the labor time, or does the tech suffer? There are many more examples. Labor hours is not just techs responsibility. It takes a team effort.

Great points about KPIs! Question, do you think team morale, culture and leadership also has a large effect?

That is an interesting comment. Can you go into more detail?

Like so many from my generation, I was a technician-turned shop owner. I was a tech on a Friday at a Ford Dealer, and a Shop Owner the following Monday. While I was technically competent, I had no clue how to run a business. I struggled for years until I understood my role as the business owner. This was a time when there was very little help to understand how to run an auto repair shop. With all the available business training, online resources, consulting services, and coaching companies, is it easier today to start your own business? I would like to hear from those shop owners who recently opened up their businesses. Is it an easy process? Hard? Overwhelming? And what business help, if any, are you getting?

Many shop owners believe that paying flat rate is the only way to achieve high labor production. Others say that flat rate promotes the wrong culture. Many technicians are on straight salary. And there are those that prefer a blend of paying hourly plus an incentive bonus if certain billed hours are produced. While there are many pay plans out there, is there one that has worked for you? And produced the results you are looking for?

The Fourth of July, Independence Day, marks the historic date in 1776 when the Declaration of Independence was approved by the Continental Congress. The written declaration stated that the American colonies were tired of being ruled by Great Britain. They wanted to become their own country.

Great points, Gerald! Perhaps the most frustrating is that fact that changes and enhancement's come slow and not always in line the requests from the users. There is no one-size-fits all, but I do believe that being able to customize the software is something that should be considered.

I read just about everything I could on the auto repair industry. It seems many repair shops are doing great, some, not so great. Plus, working with repair shops as an Elite Business Coach, I see areas around the country that are having banner years, and other areas where business has slowed up a bit. It's hard to get a handle on the state of the industry. How is your auto repair shop doing, compared to the past few years? Do you feel the we are headed into good times or not so good signs. I know that this is not an exact science or a formal survey. But I think it would be interesting to get first-hand information from our members.

There is new technology coming out that will enhance the online scheduling process. Should auto repair shops invest in more technology to increase online scheduling? There is also some merit to the fact that many people would rather not call their auto repair shop, and simply book an appointment from their phone or computer. Are you using online scheduling? If so, what's your process and how is it working?

Featured in Ratchet and Wrench Magazine - June 2023 Steve Jobs may have been best known as the co-founder of Apple Computer and a great entrepreneur, but his style of leadership and management was highly controversial. Jobs would schedule meetings with his team, then randomly point to someone and ask, “Tell me what’s not working at this company?” After that person gave their opinion, he would then turn to the group and ask for everyone’s feedback. Then he would point to another person, and say, “Tell me what is working?” While his technique may appear divisive, Jobs placed a high value on getting valuable feedback. Which meant that he had to know the truth, no matter how ugly it might be. For most people, it’s difficult to receive critical feedback. No one enjoys learning that we dropped the ball, or that something isn’t going right. And how often does an employee walk up to you, and pull you aside to inform you of bad news? Not very often, right? While receiving praise and recognition does motivate us, growth opportunities also exist when things go wrong. How we deal with adversity and bounce back from failure tells us a lot about our mental toughness. Great success is never dependent on everything going right all the time. That’s not reality. Look at it this way: getting only good news all the time is mostly useless. On the contrary, bad news can be good news. And we should accept and welcome it. If employees are reluctant to bring you bad news, it’s an indication that they may fear confronting you. As the shop owner, you need to do a little self-reflection to ensure that you are a leader that is approachable, and not on the defensive when an employee wants to sit down and discuss things. Be mindful of how you interact with others too. Your body language and the tone of your voice will either draw people to you or push them away. If you truly want to grow as a business owner and as a leader, you need to allow others to voice their opinions and let you know that your company, at times, may not be the paradise you believe it is. The question is how do you create an environment that gives people the confidence and willingness to confront you with critical issues? Make it known that you want to create a work environment where feedback, especially when things go wrong, is accepted and welcomed. Remember, if people fear bringing you bad news or only tell you the good things, you may not have an open environment where people feel they can discuss all issues, good and bad. It’s also important to realize that to give critical feedback to others, you must be open and willing to receive critical feedback. At the start of any team meeting, let your employees know that you will be asking for everyone’s opinions on ways to improve. Emphasize that you want to hear not only what’s going right, but also where the company is failing. People’s opinions may not be shared by everyone, but one’s perspective is their reality. We need to listen to all voices. Be transparent and let everyone know that you will listen to everyone and do your best to act on everyone’s feedback. Another thing to be aware of; don’t allow an atmosphere that encourages gossip or venting. This will promote negativity and bring down morale. You need honest, healthy feedback that everyone can accept and learn from. The bottom line? The next time someone brings you bad news, look them straight in the eye, smile, and say, “Thank you!” View full article

You are spot on, Carm. Tom has a remarkable, but not uncommon story. You know the expression, "When the student is ready, the teacher will appear." I had to fail miserably at the age of 35, before I knew that I needed help with my business. But, once I changed my mindset, my world changed for the better. Carm, your podcasts are changing the industry, and in a very positive way. I also enjoy listening to the Aftermarket Radio Network. Thanks for all you do for our industry!

Great podcast. As a business coach, the content discussed in this show is very relevant.

I was taught a valuable lesson in pricing back in the 1980s by a fellow shop owner. Tom (not his real name) owned a five-bay independent auto repair shop. We met in a training class and became instant friends. The discussion of labor rates and pricing came up often, and his opinion was spot on. He would tell me, “Joe, we will never get paid what we deserve until we put a higher value on what we do.” This leads me to the reason for this blog: The mindset that auto repair shops should price themselves lower than new car dealerships, is a myth. Tom would emphasize, “Look at your expenses, your payroll, the benefits you give to your customers, and don’t forget your payroll and company profit. Then, do the math and set your prices.” What influenced me was not only his forward-thinking but the fact that he would call the local dealers, to make sure his labor rate was ABOVE theirs! Positioning your prices lower than the dealer just because you are an independent auto repair shop is selling yourself short. Your labor rate and prices should be determined by you, factoring in your overhead operating expenses, payroll, financial goals, the amount of net profit you desire, and the value you provide to your customers. Another thing: don’t be everything to everyone. Understand your key profile customers and build your marketing plan around them. Cater to those who are loyal to you. Here’s the bottom line with pricing: sell value, not parts and labor. When the value increases, the price fades as an issue.

Agree 100%. Our country is off track. I totally understand WHY people want to be here in the United States, but there has to be rules. And I do question the WHY some people want to be here. It's not the same as it once was. We were once a melting pot with common dreams and goals. What happened?

As a former shop owner, and now a Business Coach with Elite, I often get asked, "What Shop Management program should I get?" This is a tough question, since there are so many variables. So, I thought it would be good for the group to tell us WHY you chose your business system and what you like or dislike about it. Thanks in advance.

Happy Father's Day! Spend quality time with family!

For most repair shops, the summer season is usually a busy time, with a lot of opportunities. However, that doesn't take away from the fact that we still need to market our businesses. And sometimes too busy can have negative side-effects. What Summer Marketing Strategies do you implement that have worked for you over the years?

Thank you for your perspective on your situation. Pay programs have changed throughout the years, with an emphasis on bringing the service team together and understanding the needs of the company and the individual. One thing, you mentioned you got paid a base wage of $300. I remember hiring service advisors years back from dealers, and they were shocked that I paid a decent base wage. I can't help thinking that a low base wage is a constant concern in the mind of the service advisor. I always believed that the base pay must take care of the basic needs of life, with the opportunity to earn more.

I am a firm believer in providing employees with a competitive wage and the opportunity to earn more through incentives. However, any additional incentive bonus must pay for itself. That means any additional incentive compensation must not eat into company profits. While we typically look at payroll as an expense, everyone in your company must be productive enough to support their compensation plan. This is especially true with service advisors. Too often, shop owners don’t properly establish sales and gross profit goals. What occurs then is that the incentive pay, which is above the base pay, reduces overall gross profit, which decreases net profit. Here are a few guidelines when considering a pay plan for service advisors. First, you need to know your breakeven and calculate it at least twice a year. Remember breakeven is never a goal, it’s just the sales number your company must attain BEFOFE it makes any profit. Next, you need to establish sales and net profit goals above breakeven. Many shops shoot for a 20% net profit, so you need to determine your desired labor and part gross profit. If you don’t know how to calculate your breakeven or gross profit, please reach out for help from your accountant or a business coach. After that, you need to establish minimum sales and gross profit goals that must be achieved consistently before any incentive is to be paid. In other words, if you determine that achieving a 20% net profit requires on average $30,000 in sales per week with an overall gross profit of $20,000 per week, then that becomes your minimum required weekly goal that must be maintained by your service advisor team every week. This is important because you don’t want three weeks where your sales and gross profit were below your goals, and pay an incentive bonus in the fourth week, just because your service advisors had one good week. Additional pay incentives can only be paid when the company is consistent in achieving its required sales, gross profit, and net profit. One thing, if the goal is too high and perceived as unattainable, your service advisors will give up. Lowering the bar in some cases may be needed, just have a plan in place to incrementally raise the bar to ultimately achieve your desired financial goals. Please also note that for you to have a consistently profitable business requires a healthy work environment, training programs, systems, processes, and of course a great technician team. One last thing, the service advisor’s base pay must meet the individual’s basic needs in life. And as I said earlier, incentive pay is the opportunity to earn more. However, they must consistently produce, after all, incentive pay should be earned, and never an entitlement.

In a 2020 referendum vote, the law was approved by 75% of the voters. However, many automaker-backed trade groups argued to block this law the past few years. A federal judge denied the latest attempt to block this law by the Alliance for Automotive Innovation. Right to Repair becomes law June 1, 2023.

On 6 June 1944 – 'D-Day' – Allied forces launched the largest amphibious invasion in the history of warfare. Codenamed Operation 'Overlord', the Allied landings on the beaches of Normandy marked the start of a long and costly campaign to liberate north-west Europe from Nazi occupation. A total of 4,414 Allied troops were killed on D-Day itself, including 2,501 Americans. More than 5,000 were wounded. In the ensuing Battle of Normandy, 73,000 Allied forces were killed and 153,000 wounded.

And this technology is spilling over to all models and brands. Technology is great, and it's also going to increase costs for repairs and routine services too.

According to an article in Body Shop Business, non luxury brand vehicle repair costs are 27% higher than gas-powered counterparts. And, Mid-size luxury brand repairs are 53% higher than non-EVs. This indicates that technology, information, and electronics will continue to drive opportunity for the collision/body shop businesses.