Joe Marconi

This is all we need, Bad Press Again. When was the last time the news showed a shop owner that worked thru the night to make sure that a family had their car ready for vacation? BYW: the lady went in for a LOF and ended up needing an engine?

Unless you are profitable enough to pay the entire amount, I agree with Frank, it's better for the employee to have skin the game. We see increases each year. To be honest, we, like so any other small businesses, cannot raise our rates and prices to keep up with the rising costs of doing business around us. We will eventually have to rethink health insurance too. To everyone: Know your numbers, know your cost of doing business and make sure there is profit each week. I know it's tough, I have been doing this over 3 decades, but it's easy to busy, not so easy to make money.

Welcome to ASO. You take some time and go thru this site. There is a ton on information from a lot of the best minds in the Auto industry. And, ASO members are the best when it comes to helping out too.

The amazing thing is that the passengers are laughing! Not me. You won't find me on that bus either.

Working with extended warranty companies can be frustrating. Some go over the line and make me question if we are still in America. The other day, Mike one of my service advisors was obviously upset on the phone. He was calling to get authorization for a claim. The claims rep questioned our labor rate, stating that the average labor rate in our area was $30 dollars less than ours. The claims rep also stated that he wanted to see all our part invoices because they only pay MSRP list (whatever that means) with a cap at 15% over what we pay! It was obvious that he was strong-arming Mike. My opinion? These tactics must stop. Who are they to tell me that my labor is too high? Who are they to dictate to what I can charge? Who are they to demand me to send them my part invoices. This is America, right? I told Mike to give that I would call to finalize the claim. I gave rep an earful and refused to back down on my labor rate. I also refused to fax him part invoices. I actually told him, what if I got the parts for free? What are you going to pay me? I simply told, Just give me what you are paying and the rest is coming from your insured He did not like that, and I did not care. Luckily, we have a policy to warn customers about these warranty companies, and inform the customer that they will be responsible for the balance that Their warranty company does not pay. In the end, the warranty company was the bad guy, we were the heroes, and the job was done the way we want.

I am going to give you two different scenarios, with two completely different results. Scenario 1: A few weeks back I walked into my Doctor's office for a 2:45pm appointment. I approached the receptionist and waited a few minutes as she finished writing something on a note pad. She finally looked up at me expressionless, and I gave her my name. She looked puzzled has she struggled to find my name on the appointment sheet. In obvious disgust, she blurted out, "Who are you and what are you here for?" Scenario 2: Last spring I called to make a reservation at Mortons Steak house, and upscale restaurant. The women on the phone asked me if I was celebrating anything special. I told her that my wife and I are celebrating our wedding anniversary. The women on the phone gave me a 7:15pm reservation time. When my wife and I walked into the restaurant, the receptionist approached us was with a big smile on her face and said, Mr. and Mrs. Marconi? I said, Yes. The receptionist continued, "Welcome to Mortons and happy anniversary." Its obvious that scenario 2 left a much better impression on me. And its one of the reasons why Mortons is known for its world-class customer service. For us, repair shop owners, we should adopt the same warm and friendly concept that Morton's has. While we may not know everyone that comes through our doors, we need to embrace people and welcome them to our shop as family. If you schedule people for service, make sure you know why they are coming and what vehicle they are bringing in for service. So when Mr. Customer walks in your shop with a scheduled appointment, make sure you say, "Yes Mr. Customer, welcome! We've been expecting you. You are here for an oil change on your Chevy Pick Up." Thats a lot better than saying, "Who are you and what are you here for?"

Simply amazing, perhaps the best video I have seen, thanks for posting it!

This is perhaps the more frustrating thing we go through. It has gotten to a point where we stopped ALL pricing before we inspect and test the problem. Just the other day a first time customer came to us asking for a price on pads and rotors. I asked him, "How do you know it needs pads and rotors?" He said, "Son, (he was younger than me by the way) I have been around cars my whole life, I can tell a brake squeal when I hear it." Well, it turned out he needed a belt, brakes were fine. Just as you stated, I hate this merry-go-round-price game. Sadly, it will not end. Oh, I knew a old blacksmith years back, if you asked him how much, he would show you his hammer and strike his anvil few times real hard. Could it be he had the right strategy?

I want to make the point that not matter what we pay, we need to understand that what we charge will determine if we are profitable or not. Paying $20.00 for a rotor or $30.00 for that same rotor from another suppier is one issue, but the price to customer is what we need to consider. I have said this in the past, we need to find a balance between being competitive and being profitable.

I ran the numbers yesterday, and we are 10% off for Feb, as compared with last year for the same time period. Nothing we can do, too many storms, too many days closed. I have to readjust my strategy, it is never easy. But, knowing is a lot better than not knowing.

This is the reason to take it slow, one step at a time and work the details. Great replies from everyone!

We have a claim in with the Chevy Dealer for that defective steering gear, but generally, Good Luck with most dealers. Ford does have a program, but it also depends on what dealership, some don't want to honor it.

I want to know if any shops use license plates frames as a marketing tool, and if you do, do you any special slogan or saying?

Yes, that is the first question, Why is he selling? This is a very important step, and I strongly recommend getting the advice from a pro. Talk to an accountant that has experience in this matter. Another source is a commercial loan officer at a bank that does commercial loans. Also, a lawyer that specializes in real estate. There are business brokers, but be carful with that route. Here are a few things to consider and to discuss when you meet: You are going to have to see all his financials, any loans he has on equipment, inventory, what equipment stays, NON-compete agreement, if there are any liens, lease, and information on his customer data base. I wish you all the luck in the world, but you need to go into this armed with the right people asking the right questions. Lastly, and this is the advice I give to all: Learn about business, REPEAT, learn all you can about the business side of running a shop. Too many of us spend all of our time in the bays, you need to understand the other side of business: The numbers, business management and leadership skills. This will help you more than you know. Best of luck, I like to see people venture out on their own.

Yes, great resource and great information.

We need to be very carful with Loyalty programs. Too often, a shop can give away much needed profit dollars to loyal programs, because where the real problem lies is that the shop does not increase production. Car counts remain the same, production remains the same. So, a shop may end up giving away profits, and not increase sales. If a shop is struggling with customer retention and customer frequency, then a loyalty program may work, but be carful. Profits are still needed to pay the bills and make payroll. Another factor to consider: Why do your BEST customers keep coming to you? Price? I don't think so. We offer loyalty benefits in a different way: Free Road side assistance, free rotations with tire sales, flat tire fixed at n/c, free quick checks and washer top offs between oil changes for loyal customers, Customer appreciation days where we offer hot dogs and burgers. Plus, we promote the lifetime protection from BG products which in essence is a loyalty program, since your best customers usually enter the program and return for those fluid services that maintain the protection plan. Lastly (and sorry for being so long-winded): Base your business model on Who you are and Who are your best customers. Why are they loyal? If you make a focus too much on price, that becomes your business model. No one goes to Starbucks for a cheap cup of coffee.

Source: Part Quality in general, on the decline

If you worked at an Esso Station, you have been around for while. Remember Sinclair Gas? The Dinosaur?

Due to our frustrations with part quality from the aftermarket on some lines, we have resorted to going to the new car dealer for some parts. A decision that does not sit well with me and one that I may end up regretting. To me, it's like supplying my enemy with ammunition. Recently we had an issue with a steering gear, purchased at a local Chevy Dealer, that did not function correctly and we had to redo the job. When discussing the issue with the dealer, we were told that they are seeing an increase in their part comebacks too. These are GM reman units. We are we going with this? As I have stated time and time again in the past; will this race to the bottom with looking for the best price end up to be our demise? We have to get back to quality. Our industry reputation is at stake. We really need to have a coalition of all the part companies and repair shops across the country to come to terms with the reality. We need to rethink "price" and seek "Quality" Let's face it, as an industry we are not getting any richer with lower priced, poor quality parts anyway. So, let's take a deep breathe and dig ourselves out of this mess. This is not an Advance Problem, or a CARQUEST problem, or a NAPA problem....this is an industry-wide problem. And we need to start fixing it, today.

I announced a few months back that I have accepted a position as a columnist with Ratchet + Wrench, a publication dedicated to shop management and other shop business issues. This has been a great experience so far, since my goal has always been to help the industry in any way I can. Below is a link to my article in the Feb 2014 edition. If you are not getting R+W, please do. I am sure you will enjoy it. And, please look for future articles. http://www.ratchetandwrench.com/RatchetWrench/February-2014/Get-Paid-for-Diagnostics/

Below is a link to an article from Ratchet and Wrench Magazine. Apparently, the great recession has done more damage to the consumer pocket book than a lot of us expected. The DIY market has increased as a result. The repair sector for us will improve, but to what extent is not known yet. http://www.ratchetandwrench.com/RatchetWrench/February-2014/Study-DIY-Increases-as-Repair-Industry-Rebounds-from-Recession/?utm_source=KnowledgeMarketing&utm_medium=RW%20Newsletter%20Emails&utm_term=RCHT%20-%20R+W%20Insider&utm_content=RW_TheRWInsider_20140217&utm_campaign=Study:%20DIY%20Increases%20as%20Repair%20Industry%20Rebounds%20from%20Recession&eid=211700044&bid=820317

Source: 10 Ways to Lose Employees

10 Ways to Lose Employees One of the things that I have learned over the years is how much influence the boss has in regard to morale and employee retention. And looking back, I have made mistakes in that department, too many mistakes. The past few years I had to take a long hard look at myself and realize that in order to maintain a healthy work atmosphere, I have to set the tone and the mood for the shop. My actions, my mood, whether happy or sad, will spread through the shop like a virus. Now, that virus can be bad or it can be a good. So, I put together a few things to consider and the impact on your employees. Oh, and by the way, we have reasons why we dont walk around each day with a big fat smile on our faces: bounced checks, comebacks, taxes, rent increases, workers comp increases, family issues, on and on. But, the reality is we put ourselves in the position of leadership and we have an obligation to our employees for not only their greater good, but the greater good of our families and for ourselves too. 10 Ways to Lose Employees: 1. Never say good morning or good night to an employee or ask how he or she is doing 2. Never ask an employee about their family or what they did over the weekend 3. Only address an employee when he or she has a comeback or made a mistake 4. Never ask an employee their opinion on any matter 5. Never smile 6. Speak constantly in a negative tone 7. Never give praise 8. Never recognize the accomplishments of anyone 9. Never sit down with your employees and have an open discussion 10. Walk around like you are a cast member from the "Walking Dead" Well, there you have it. I am sure there are more. Feel free to add your own Ways to Lose Employees. We can all learn. Oh, by the way, have I asked you lately, "How's the family doing?"

Thanks for the tip Gonzo, I will be sure to share this with my techs.