Joe Marconi

That would be something!

Managing the Customer’s Budget should not be taken lightly If anything good came out of the recent recession, it’s that many people have learned to budget their finances better. We are all well aware that there are times when the customer cannot afford all the services and/or repairs that we are recommending. For example, a customer comes in for a 60k service and you discover that the car needs brakes on all 4 wheels and tires. The customer, due to budgeting reasons, declines the 60k service but authorizes the brake work and tires. If it comes down to prioritizing work, then we must advise the customer accordingly. Safety will always take precedent over service work. Please bear in mind that preventive maintenance is always in the customer’s best interest, and this must be conveyed to your customer. I do not take any declined work lightly. If I recommend something today, it’s because it needs to be done. If the customer is on a strict budget and you opt to select certain service to be put off, you must set up a schedule and timeline for the customer to return. If you merely accept the declined work without any thought to getting the customer back, you have just told the customer that what you have just recommended was nothing more than a suggestion. One of biggest reasons for lost future sales is not properly setting up a timeline for the customer to return for the services recommended. Communicate with the customer; ask when they can return to complete the services. See if there are any options you can offer that will make the customer feel more comfortable. Find out how long the customer is planning to keep the car, who drives the car, and what the car is primarily used for. Asking questions is a great way to keep open the lines of communication. It allows the customer to be part of the decision-making process. This alone will improve your sales ratio. So remember, if you and the customer decide to hold off on some of the work you recommend, emphasize the importance of your recommendations, work with the customer to set up a timeline for the customer and book the next appointment. Do not leave it chance that the customer will return for those declined services.

My manager took a few days off, so I decided to hang around the shop and waiting area, just to see if I could help in any way. I overhead a customer during write up say, “ The car is running great, I know I am do for services, but I’ll take my chances. If the engine blows, I rather replace the engine”. We have all heard the foolishness that has come out the mouth of some people, but this statement particularly disturbed me. When asked how long he was keeping the car, he replied by saying at least another 12 years! 12 years and this guy does not want to maintain it? By the way, he drives a Toyota Matrix with 121,000 miles on the clock and he commutes to NYC each day, a round trip of nearly two hours. I decided to work with the tech and advisor just to see how this progresses. Looking at his service history, he needed a 120k service, and the road test revealed a very bad brake vibration. After we completed the multi point, I asked him to come into the shop to show him the brakes and discuss the 120k service. With his 4 year old son by his side, he said, “I’ll wait on that, just finish the oil change” I said, “Are you sure about that? You said you wanted another 12 years out of this car. You commute every day to the city, your brakes are not safe, you have young children, a wife and if something happens to the engine you rather replace it; an engine that will cost of 5,000 bucks; is that what you are telling me?” He was silent for a few seconds and I was fearful I said the wrong things. He replied, “Well, when you put it like that, I guess I need to listen to you”. We went ahead with the services, and the brakes, and I explained to him that while no one can predict the future, the only way to insure that you will decrease the odds of a major failure is through preventive maintenance. I am not suggesting that my approach was the best, in terms of speaking to people. I have known this customer since he was in grade school and perhaps I got away with more than most can.

Brilliant! Loved it. Thanks Gonzo, puts us all in the right Christmas Spirit!

Here's an article I found interesting, it's about the modern gas station celebrating 100 years. For many us, myself included, we grew up in the gas station business. http://blog.hemmings.com/index.php/2013/12/01/the-modern-gas-station-celebrates-its-100th-birthday/#.UpyoIhcsfqE.email

I agree with Frank. We too have a lunch room, which is used for lunch and for meetings, and in house training. Everyone is aware of the rules, and if there is any abuse, it should be brought up immediately. I do know that "hang out" areas can sometimes quickly form. Sometimes, it as if these guys think they are back in high school.

Yes, we like for an advisor to bring the customer thru the entire process, from write-up to car delivery. If for some reason, the advisor will not be there when the customer picks the car up, the advisor will schedule time on the phone and perform the car delivery on the phone. The advisor will then gather all the paper work and update the other advisors. You want a seamless continuous work flow, with the advisor taking care of the customer throughout the entire experience.

This is a tough topic. First of all , if someone is calling around for prices, they could be looking for the cheapest price. With this person, A BMW owner, she must know what kind of a car she has? People call for prices for two reasons, they don't know what else to ask, or they truly are looking for the cheapest price. If they are looking for the cheapest price, they may not be your customer (or future customer), unless you are a discount store. I instruct my service people to ask questions and avoid price, if at all possible. Thank them for the call and say, "How did you hear about us?", "Is this a car you plan on keeping for while?", "What is the car primarily used for?" How long have you owned the car?", "Do you rely on this car for work", And the biggest question..."Are you calling around for prices, or are you looking to schedule an appointment? If you find that price is the only concern, you may have a tough time bringing them in. I don't like playing games over the phone either. Some shops will give a bottom line price or starter price, to get them in and then upsell when they arrive. We usually invite first time callers to come down and meet us, we give them options on everything. We ask a ton of questions and hope for the best. The reason why you ask questions? Because no one else does. It sets you apart. Should you call back? It can't hurt...and you might learn something from it.

Oh, don't just "think" about it...please do!

What a perfect story for this time of the year. Thanks Gonzo for sharing it. These are he moments that transcends the material things in this world, the things no one can ever put a price on.

This has been a topic discussed before, but since we have so many new members, I would like to hear from shop owners to see how they handle bonuses for this time of the year. I know that many businesses, not just repair shops have reduced the amount of bonus, and some have cut it out. Due to recent tough recession. Do you give a bonus as a percentage of regular pay? Do you give a flat bonus based on years at the job? Do you give a bonus in gifts, or tool gift certificates? Do you give a bonus as part of a retirement contribution? Do you factor in performance, quality, comebacks, etc? Do you give a bonus at all? Any other thoughts with regard to bonus?

On December 7, 1941, the Japanese attacked Pearl Harbor. It will always be remembered as the "Day of Infamy"; words spoken by President Roosevelt during is declaration of war speech. More than 2,400 American troops died in the early hours of Dec. 7, after the Imperial Japanese Navy swarmed on Pearl Harbor in Oahu, Hawaii, hurtling the U.S. into the World War II. It's been 72 years since that attack, but as Americans we must never forget.

The phone is as valuable as any other tool in your shop. I know how tough it can be when the phone rings off the hook at times, but it must be managed. We just hired a part time receptionist to help with the phones. We also bought a phone system a few years back that will pick up the phone with a message after the 6th ring. We really don't like a computer automated person, but it's a lot better than not answering it.

Thank you, you too. And stick with us here at AutoShopOwner.com, We will help you thru the good times and the tough times. That is my promise to you and to all ASO members!

I got involved with the Toys for Tots program a few years ago. It's a program that collects new unwrapped toys for needy kids. It is sponsored by the US Marine Corp. I have to tell you, it's a very rewarding thing to do. We have a big box in our waiting room with the Toys for Tots logo on it and customers see it and come back with a small toy. It is amazing how giving people are. We promote it thru all our advertising media the month of December and thru email blasts and social media. I like doing things like this around the holidays. I don't know how others feel, but during the holidays I shift my mind away from business and focus more on people and spreading Goodwill. Here's a link: http://www.toysfortots.org/

That is exactly what I do. Customers know who we are and what we do. Building relationships and showing them you really care about loyalty will pay dividends in the future. I like sending seasonal tips thru a email blast and on social media, highlighting all the concerns people have during the winter months: Tire tips, wipers, the importance of antifreeze, snow tire tips, travel tips, tips if you get stuck, have your battery tested if it's more than 3 years old, etc.. Then I have a link which goes to my web site for more information and my seasonal promotion, which is a winter check(checking all those concerns) with an oil service with a rotation. We also add a BG oil additive and a BG fuel treatment. I like this type of marketing because it shows more value and it gets the customer thinking about the need for safety and maintenance. We do this 4 times a year, for each season.

What application is that wiper for? We stock all types of blades, both conventional and the new beam type, cost us anywhere from $7.50 to $20.00. We don't install junk either, I buy Bosch, Anco, Trico. We try to have a complete inventory too. You can't sell them, if you don't have them.

The dispatch area is adjacent to the customer service reception area. We use wall racks to organize the work. The service advisor will code each work order in order of urgency, type of job, wait customer, long term, comeback, etc. No tech takes his/her own work. The tech is not part of the process. The service advisor will, at times, choose the tech he feels is better suited for a particular job, but the service advisors and foreman coordinate the work, organize the workflow and review all work in progress. We also give the techs the expected time of completion, so the tech has a target to shoot for.

I may throw you a curve ball and please with all due respect, but around the holidays we don't market or advertise. We send out holiday greetings cards and email blasts and travel tips. We also promote that we collect toys for Toys for Tots campaign. Sometimes the best promotion is no promotion at all, just good old fashion greetings and wishing everyone goodwill.

Shop Owners: Time for thanks and to look forward Thanksgiving is the start of the holiday season and it also means that another year will be ending soon. We all know how tough business has become, and with each passing year, it becomes increasingly more complicated. But, when you reflect on the big picture, we need to be thankful for a lot of things. Oh, I know there are shops and areas of the country that are still feeling the affects of the recent recession. But, if you are reading this, you are still around, and that alone is a testament to your resilience. As the year comes to a close and we enter into the holiday season, focus on the positive and on the things that make life worth living. Disregard what went wrong and live by the principle my father preached to me. “Make today better than yesterday, and work hard today to make tomorrow better than today.”

Great question! First, we factor in road test time when we calculate diagnostic testing time. If you add up all the minutes, that turn into hours, at the end of the week, it is time that must be accounted for. Time = Money. We do have different road test routes, depending on the problem. And we do try to limit the road test time. When we need to recheck and re-test after a repair, we have the foreman do the final road test, so the tech can keep productive. If the car is not legally registered we avoid road testing. We also avoid road testing on bad snow days. Here's another issue: How about when a car comes in on empty, have you ever run out of gas with a customer's car on a road test? I have and it's no fun!

This is a topic that I often discuss with other shop owners. While people may think a particular price is high, let's say for a Italian combo sandwich, it's accepted and the consumer pays for it. I often make reference to Starbucks. The line at my local Starbucks is out the door every morning. Maybe coffee isn't just coffee, and that's the secret of Starbucks. When you think about the price for a typical LOF and compare it to other items, you begin to scratch your head. My wife is buying a scarf for my daughter with a price tag north of $50! For what, a piece of cloth? Well, again, maybe a scarf is not just a scarf. The consumer sees little difference from repair to repair shop across town. When the shop across town gives away Diag time, why don't we, the consumer asks, right? The next time I am in the Deli buying a cup of coffee and my buttered roll, I think I will ask, "Hey, that's a lot of money for a buttered roll and coffee. Can't you give me a break? After all, how much do YOU pay for that roll?"

I don’t know where you stand on this issue, but State Farm’s mandate that Collision and repair shops must use PartsTrader parts to procure parts has started a storm of controversy. The Alliance of Automotive Service Providers of Minnesota (AASP-MN) has filed a formal complaint with the Minnesota Department of Commerce, requesting legal action to prevent State Farm from continuing this program. Is this a sign of what’s to come, with regard to insurance companies? Will this intrusion into our business become the norm and continue to erode our margins? Many, including the ASA of Ohio and many groups and other organizations across the country, believe so. How do you stand on this issue? For more information go to: http://www.partsandpeople.com/node/5782