Joe Marconi

Do You Have, “Loss Of Business Income” Insurance? I recently read about a repair shop in Texas that burned down to the ground. A tech was removing a fuel tank and a spark occurred while using an electric impact. No one got hurt, but the fire was bad enough that it closed the shop for a while until it was reconstructed, and destroyed a few cars. The owner had liability insurance, but not Loss of Income Insurance. This type of insurance would have helped the owner and the employees during reconstruction. If you do not have Loss of Income insurance, I would urge you to speak to your insurance agent. You never know when tragedy will occur and you need to protect youself and the people you employ.

John Wooden, the legendary basketball coach from UCLA, once said, “In my forty years of coaching, I never took a shot at the basket, never scored a point and never made a rebound. That was not my job”. John Wooden understood his role as a coach and the role of his players. We, as shop owners need to do the same. For too many years I wore way too many hats. This notion that I, because I was the “Boss”, had to be the best technician, the best service advisor and essentially the best at all positions was ridiculous. This way of thinking leads to burnout and disappointment. Learning your strengths as a leader is crucial. Knowing the strengths of others in your shop and helping them become better is a gold mine. Thinking that the world surrounds us and that we need to have our hands in every element of the business will lead to our demise. When the second baseman is not performing, the coach does not take his place on the field, he gets another second baseman. Once we assume the role as business owner, our life changes. If we don’t clearly define our role and all positions in our company we will not succeed. Trust me, until I realized that it’s the people around me that leads to my success, I struggled daily. Running a shop is not easy. It’s perhaps, one the toughest jobs out there. But it can be rewarding both financially and emotionally. Work on your role first, and then go to work making others around you better at what they do. Your happiness and the happiness of others depend on it.

This sums it up: Professionalism!

Here’s a tip that might save you a lot of aggravation. One of my techs installed a new A/C evaporator in a 2003 Toyota Highlander. All went smooth until he pushed the A/C button on the dash when he got finished. The A/C button did not light up and there was a code for no communication between the A/C control module to the BCM and to the Dash Cluster. Going thru the troubled charts and pin out charts led to a failed A/C Controller Amplifier. My manager was not ready to order the A/C amplifier, stating that everything was working prior. He felt that something had to go wrong in the reassembly process. He was right. It turns out that there are two identical connectors, one for the vent control servo and one for the max air control servo. They are close to each other and interchanging them is an easy mistake. Switching the connectors was the fix. Two things we learned: The tech needs a review on carefully marking all connectors and we need to be real careful when interpreting trouble flow charts.

John Wooden, the legendary basketball coach from UCLA, once said, “In my forty years of coaching, I never took a shot at the basket, never scored a point and never made a rebound. That was not my job”. John Wooden understood his role as a coach and the role of his players. We, as shop owners need to do the same. For too many years I wore way too many hats. This notion that I, because I was the “Boss”, had to be the best technician, the best service advisor and essentially the best at all positions was ridiculous. This way of thinking leads to burnout and disappointment. Learning your strengths as a leader is crucial. Knowing the strengths of others in your shop and helping them become better is a gold mine. Thinking that the world surrounds us and that we need to have our hands in every element of the business will lead to our demise. When the second baseman is not performing, the coach does not take his place on the field, he gets another second baseman. Once we assume the role as business owner, our life changes. If we don’t clearly define our role and all positions in our company we will not succeed. Trust me, until I realized that it’s the people around me that leads to my success, I struggled daily. Running a shop is not easy. It’s perhaps, one the toughest jobs out there. But it can be rewarding both financially and emotionally. Work on your role first, and then go to work making others around you better at what they do. Your happiness and the happiness of others depend on it.

It seems that in shops across this great land of ours, the shop radio is a constant tug of war between the owner and some techs. I don’t understand why some techs value the radio so dearly. I enjoy music too and I really don’t mind music in the background. However, when the music becomes more of the focus than working on cars, I have a problem. I set strict rules with respect to volume and choice of stations. Recently, in my maintenance shop, we had a tech that constantly worked on his “play list”, The volume inched up little by little and he spent way too much as a disk jokey than I could tolerate. We had to put a stop to it. I asked the manager how he felt. He said to me, “You know Joe; the radio is a privilege, not a right. If they can’t understand that, it’s their problem, not ours.” So, how do you feel about the radio, and how do you handle this issue?

All I can say is thanks! You brought me to tears with laughter. And it's all true. You have a gift Gonzo! You really do, my friend. Keep the articles coming, it's part of my Saturday routine!

I feel for you. We have all been down this. I have customers I can't get rid of for decades now. No matter what I do, they keep coming back. They argue, shout at me, tell others how expensive I am...but they keep coming back. I do know a guy from the Bronx that can take care of her for you...you know what I mean? Just kidding, want to try to cheer you up!

We don't teach people how to change oil or any other repair of service. We might show people how to replace wipers blades, but that's about it. We make it informative: how to save money on fuel, how to extend the life of your car, why rotate tires, warning signs of trouble, what to do when you get into an accident, how to prepare for a road trip, getting your college kid back to school ok. The topics are endless. The clinics are short too, about an hour. Leave room for questions. If people are asking question, that's a good sign.

Depends on the state, number or techs, office people, owners (they have a different class). I hate to tell you what I pay, but it's well over 20K!

This really is a tough topic. But I will bet that many shops around the country are having the same problem. You have a few issues to overcome. First, you bring up a classic example of how co-branding two different business models, confuses the customers and ends up more destructive than helpful. Once the community brands you, it is hard to overcome this. I would study your best current customers. Speak to them and find out why they come to you and ask them how you can reach out to more like them. I too think that you need to get more involved with the community. Let them find out who you really are. Lastly, you need to do something that is so different to your place that people will turn their heads and say, "Is that a new business". Let me tell you a quick success story. In the next town over from me on a main road is this restaurant. For years, owner after owner failed. Why, the first owner of the restaurant went bankrupt and the new owners after him never changed the look. Changing the name was not enough. Until someone with a brilliant marketing idea came along. This guy repainted the outside and created a totally new look. He also featured a southwestern theme. Something totally different and it made him stand out. The place is packed now, and on weekends you need a reservation. Just a few thoughts, good luck and keep the dialogue going. Let see if we can brainstorm too.

We created posters for the customer area, along with a sign-up sheet on the front counter. We gave each customer a flyer about the clinic when they picked up their car. We talked it up a lot with all customers at the counter. We also did press releases in the local newspapers and radio. News media loves community content and will promote it for free. Just ask. A few weeks prior we send out email blasts to our customer base. We get 20 to 30 people on average at each clinic.

For those who use Mitchell1 Manager System, the next workshop in Jacksonville is not open for registration. I have been to these workshops and they are well worth it. Here's a few links for more information and to register: To register: More Information:

When a tech is hired we monitor and track the production hours sold against what the tech works. We do this for 4 to 6 weeks, depending on the level of the tech. We then get a base, (the average the tech produced in that time). For example; if a tech works 40 hours and is averaging 35, that becomes the base, or the min level of expectation, he needs to make before he makes a bonus. Anything after that he will get another hour of pay for each hour produced. So, if he books 40 hours in a 35 hour week, the tech will get another 5 hours pay. But the goal is to get the tech to 100% - for every hour worked. We raise the bar each month until the tech reaches 100%. We like this because the tech competes against himself. We don't set the min standard, the tech does. The techs like it because they are motivated to earn more, but will also get paid for the hours they work. Again, if a tech works 40 hours and produces 45, the tech will get paid for 40 and a bonus of 5 more hours. Hope this is clear, if not let me know.

Advance is working on the lack of coverage. It is getting better and better, but will take time. Advance wants this to work and is doing all it can to insure that. I think that by early next year we will see great improvement.

We do make the calls during the day. When I did all the calls years back, I did them in the evening and I felt I was intruding on the customer's time. Plus, it meant staying late. The advisors dedicate time to make the calls in a private office. There is not particlar time, they look at the schedule and coordinate it among themselves. They make comments on the invoice about the call and I review the comments.

Here are interesting facts from the AAIA (Automotive Industry Aftermarket Industry Association) 2012 Aftermarket Factbook, with regard to the typical DIY (Do-It-Yourself) consumer: -Is a single male -Between the ages of 50 and 59 -With some college education -A white collar worker -Has an anuual household income between $30,000 and $49,000 -Drives a car older than 15 years and has more than 150,000 miles on the odometer Is this consistent to what you see?

They Are. Advance Auto, who owns Moto Logic, will soon bring to the us a lot of great programs: Management, Training, customer retention programs and more. Stay tuned, there is a lot on the way, very soon. I will be reporting it as it develops.

When we speak of success and taking care of our customers, every aspect of the business needs to be considered, and ASE certification and continuous training is part of it. I know, I know, I know...I have heard ALL the objections: The cost, there are great mechanics out there that are not ASE certified, ASE does not mean you can really fix a car, the public has no idea what ASE is, on and on and on and on. Every profession requires some sort of training and certification. You can't cut hair without a license, and yet you can hire someone off the street tomorrow with no accreditation and he can repair your mother's or sister's brakes??? Is this the industry that shines with professionalism? Business is tough, I have been around the block more times then I care to admit. I have seen a lot in my 40 years since staring as a mechanic straight out of high school in 1973. I too have many reservations with ASE, but the more we move to an industry with standards and raise the bar, the more respect and compensation we will receive.

Congratulations and best of luck in your new venture. I am going to assume (the term Super Man is a tip off) that you are probably a top notch mechanic. That's good, and equally important for business requires a profound understanding of the business side of running an auto service center. The trend toward more general repairs from former transmission shops and other specialty shops is a growing trend in many sectors of our industry. The combined knowledge of your future partner and yours will compliment each other nicely. My advice for you and your partner, get everything down on paper NOW. Even though you are a partnership, you need to clearly define each other's roles, job descriptions, tasks and responsibilities. Base this on each other's strengths. And, don't overlap this plan. For example, if you determine that on of your responsibilities will be in keeping track of inventory, cores, returns, then only you should do it. Divide and conquer. Also, create a business plan, with as much detail as possible. Success is in the details. There is so much info on this site and don't forget about the blogs and articles too. Good Luck again! And stay in touch!

When speaking to customers I often reference the medical profession. Imagine calling a doctor on the phone and telling him, "Hey Doc, I have this pain in my head, what's wrong with me and BEFORE you see me tell me HOW much it will cost." The reality is we need to adopt the diagnostic approach similar to the medical profession. Doctors sell Tests or a series of Tests to arrive at a conclusion. The tests are separate from the repair. We, in our business, too often tie it all together and too many shop do not charge correctly for testing. To reach a proper diagnosis requires proper tests. Not charging enough is, in my belief, a major area of concern and hurting the overall profits of the typical shop.

We have a wall poster too, plus the techs and advisors will also check with Mitchell and Alldata. We have a system which is part of the techs work sheet that requires the tech to ID any and all wheels removed. The tires that are put back on must be torqued and observed by a fellow tech or a service advisor. The observer must indicate on the techs work sheet that the wheels were torqued. The tech will chalk each tire he torques; we call it "Torque and Chalk" method.

When we send out recommendation emails and postcards, there is $10.00 rewards discount for spending over $100 and $15.00 for over $150.00. Follow up, recommendations, booking the next service,making follow up calls, are all great ways to keep a constant flow of customers coming thru your bays.

From what I have learned in my business, "Don't follow the crowd". Like your mother told you; "Just because Tommy jumps off the roof, does not mean you should". In marketing you need to differntiate yourself from others. By immating others, you become a copy cat. All those that are offering free stuff and deep discounts will get those people that are looking for cheap. And contrary to what EVERYONE seems to be saying these days...not everyone out there is look for cheap and free. Another thing, if you make price your "brand", you better be armed and ready for a tough long fight, and you will loose the war. Customers will always tell you price is a concern and everyone wants to spend less, that's human nature. But it's not the only reason or the real reason why your KEY customers come to you. We went down the road reducing prices, waving diag charges and cheapy coupons. Car counts stayed the same, customers stayed the same, profits went down. I am now back to running my business BEFORE the recession and making money again. Just my thoughts, hope it helps. Find out how to bring value, promotion packages, preventive services and reward programs. And pay attention to your key customers. They will give you the greatest return!

That is interesting. Social media plays a part in many facets of our daily lives, business and personal.