Joe Marconi

It all starts with the leader, the boss. And if you are not getting the results you want, start looking at yourself and the people you have working for you. You will find that the problem is a combination of both. This is one of those topics that will take more than one post to answer. First of all, for any business to truly be successful, the business must be built on system and procedures that allows the business to run without the owner. When you walk into any successful business, particularly a franchise, you don't ask for the owner. There are systems in place and the right trained people running the business. Absentee or having the business run on its own are two different things. I know many absentee owner businesses that are a half a step away from being bankrupted. Again, that business does not have the right people, or the right systems in place. Having the proper systems allows the owner NOT to be tied to all the operations of the business every single day of the week and every single hour of the day. If the business cannot run on its own to a point where you can’t take time off, that’s not healthy for you or your family life. The first step is clearly define all positions in your shop, including yours, the owner. Build an organization chart that has a chain of command that has a manager, service advisor, technicians, office people and support staff. Build a system of reporting and accountability that allows the owner to see the progress of the shop and to insure that everything that needs to be done is done. And I mean everything: Profit margins are met; cores and returns are taken care of, end of the booking out with all cash is accounted for, shop clean up, payroll, etc. This will take some time and a lot of work. Trust me, I have done this and it takes time and effort. But, the end result is that the owner will become more efficient and not wear all the hats of the business. This is a start, hope it helps. I also recommend reading the "E Myth", by Michael Gerber. It's a book that explains; Just because someone is a great mechanic or a great chef, does not mean they can run a business, the skills of running a business are vastly different.

First, welcome and good luck. I know the members of AutoShopOwner.com will help you along the way. The best advise I can give you at this point is to make sure your skills in business are sharp. The auto business today is not like it was when I started. The shops that understand business will be the most sucessful. I would venture into fleet work very carefully. Many shops do well with fleet accounts, but many are held hostage to them and if you loose major accounts, it could destroy you. Specializing can work too, just be sure you identify your taget customer and do everthing to attract this target group and take care of your key customers. I am sure they will be more dialouge to follow. Best of luck!

GM has announced it will offer free maintenance on all new cars sold. No doubt other car companies will follow. We need to watch this real close, we have discussed this before: How do you comptete with free? Here's a link to the article: http://dealer-communications.com/news/free-maintenance-offered-by-gm-on-2014-models/?utm_medium=Email&utm_source=ExactTarget&utm_campaign=Fixed+Ops+ENL+6-10-13

Workflow: It’s more than what happens in the bays Most of us, due to our mechanical background, have no issues with creating a workflow process that maximizes productivity and efficiency, once a job is sold. Where many of us fall short is involving the customer in that workflow process. Workflow involves more than what is managed through the shop, it’s also how the customer is managed through the entire sales process; from appointment scheduling, to write up, to up sell, to car delivery and the follow up after the sale. If any of the steps are not consistent with your delivery of world class service, the business will suffer with low productivity, low sales and poor retention rate. Each contact point with the customer is an opportunity to either make a positive experience or negative experience. The more positive impressions we make, the greater the emotional tie with the customer and the stronger the business. Remember, the customer is the most important element in your workflow process. Build a process that delivers world class customer service with the awareness that you are doing all you can to take care of the customer’s needs.

I guess you need to take each case on its on merit. I can tell you that of all the people that I have rehired thru the years, none of them really worked out. The issues that made them leave, for some unknown reasons, will resurface again and become a problem. I am not saying it can not work, but in my case, it has not.

Great article, I nearly forgot about those hidden blowers motors. I cut many inner fenders in my time to gain access to the blower motor. I remember years back I was working late. I promised a customer his car back. I had to replace the power steering pump. I don't remember the car, but I do remember it was a front wheel drive, transverse, 4cyl. My wife stopped by to keep me company with the kids. As I reached back behind the engine against the firewall, I felt around for the bolts, went over to my tool box, grabbed a few wrenches, a few sockets and a bent hand Snap-On ratchet. I stuck my left hand down out of sight and began the process of removing the PS pump. With one hand doing the job, I began a conversation with my wife and was looking at her as I worked. After a few minutes she stopped and said, "How can you work, talk to me and never look at what you are doing?" I never really thought about, it really came natural to me, as it does to every mechanic. I told her that as a mechanic our hands are just as important as our eyes and that we rely on our hands to communicate to our brain. She shook her head in amazement. You brought back fond memories, thanks! Oh, and thanks for using the terminology: Mechanic.

I don't show prices in the waiting room, except for a bundled package, which is a promotion with value, not a discounted service. I also try not to make price a main focal point. Even showing prices of standard jobs, in my opinion, can send the wrong message. Promote who you are, not what you charge. Most of us are not discounters either, like Wall Mart or Sears. With companies like Sears, the discount price is the real price. When WE discount services or repairs, we reduce our profit margins. Every discount is paid for by someone, that someone is the shop owner. If discounts are used to increase car counts, you will always need to discount to maintain traffic to your shop. And, profit margins will always suffer. I feel that we should position what makes us different and the value and benefits of doing business with us. Once you go down the road of promoting discounts, it's like a drug. People look for the discounts and it will be hard to go back to regular pricing or raise prices. Focus on the quality of the service and repairs. Create packages that have value, rather than discounting services. Identify you prime customers and take of them, they will bring you the greatest return and bring others like them to you. Just my thoughts. This is a complicated issue, sorry to get long-winded.

I really appreciate your kind words. I guess the transformation from mechanic to businessman can seem out of sorts at times. You know as well as anyone, when you are in the trenches with the men, it's a lot different when you take a desk job back at HQ. Leadership takes on a different meaning. My roots are in the mechanics. I know that my path is different now and that I need to accept the challenges before me. I do want to make a difference and make this industry a profession we can all be proud of. Thanks for your support; when I have great people like you around me, I know we can all achieve great things.

That is a great question and can be an issue. When you take your top producer and put him in a role to oversee others, productivity can drop. It's like taking your top car sales person and making that person the sales manager. There is always the fear that car sales will drop. I moved my oldest master tech to the postion of foreman a number of years ago. I felt that although he is the best mechanic I have, he was not as fast as he used to be and why put him on all the toughest jobs like clutches, engines and transmissions? So, we created a plan what would have him improve the productivity of the other younger techs. It took a little time to work out the kinks to the workflow process, but it does work. We pay the foreman a salary with a bonus when the shop exceeds a certain gross profit dollar amount. And he is happy with that postion. One thing to be careful. Some techs use the foreman as a crutch, which may result in a younger tech not learning or going the extra mile on a problem. We now make the tech work thru a problem and created more workflow processes before he has the foreman go over and work his magic. Hope this helps.

This is an ongoing issue and appears to be getting worse. Years back I would put the word out for a mechanic and there would be a hand full of guys to pick from. Now, no so. Also, back then most of the mechanics we hired came from gas stations and repair shops, with no formal training. They started, like I did, as a kid working on the family car and friend's cars. With all the Tech schools, like UTI and Lincoln Tech graduating all the techincians today...where are all the techs? Plus, with all the new car dealers that closed down the past few years, you would think there would be a surplus. Again, not so. I use word of mouth, Craigs List, the local paper and speak to all part reps, tool truck guys, etc. I do think we need to do more. Add a page or two to our web site to constantly recruit and be constantly active looking for future techs. It's like looking for a good doctor, you don't want to scamble looking for a doctor when you are sick. Good luck! I am looking too, and no one so far...

Killer A/C Sales Tip I have posted this tip before, but it’s worth mentioning again. For those of us in the northern states, our A/C months are typically between late May and into September. But as we all know, it becomes increasingly more difficult to sell A/C work as we head into the summer months. So, here’s what I have done in the past and it works great. First, at write up and when scheduling an appointment, ask the customer if they have turned on the A/C yet and if they did, ask them if they feel if it’s working ok. Next, tell your customers that as part of the service today your techs will turn on the A/C just to see if it is functioning correctly. Make it part of your workflow process to include a quick A/C check. Create a little check list for the techs and have a quick meeting to review. It does not have to be elaborate, just something that is proactive and quick. What you don’t want is for the customer to turn on the air conditioner for the first time on their way to a wedding on Sunday afternoon to find out it’s not working, when it was just in your shop 3 days ago for a 60k service. You can also create a few promos. For example, and “A/C Performance Test and Inspection”, or an “A/C Performance Test and Service”, which would include and gauge check, check the cabin filter, inspect the belt, condenser and other components, etc. Be creative and price it right. The key is to be Proactive and Promote!

The 2013 Industry Profile is featured in the May Issue of BodyShop Business magazine. There is a lot of great information. The shop owner profile caught my attention. Sixty percent of body shop owners are between the ages of 50 and 64 and the average years in business is 31.6. This stat is very similar the mechanical shop owners. This indicates an aging group of shop owners. The survey did indicate that 86% of body shops are family owned, so many of these shops will someday be taken over by a family member. It will be interesting to see how this plays out in the next decade or so. For those nearing retirement age, what are your plans for your body shop? Who will take over? Will you sell?

When someone asks me how long have I been working on cars, I look down at my watch and answer, "Including today?" The looks I get are priceless!

Me too!

New York also has a free inspection program. I had it done last year and it was a real eye-opener. We had a lot of issues I was not even aware of. If I had a real OSHA inspection, boy it would have cost me dearly.

Don’t Be A “Me Too” Brand When someone says “Volvo”, we think safety. When we say “Starbucks”, we think coffee. These companies have done an amazing job at marketing. They own a concept or position in the mind of the consumer. It is nearly impossible for two companies to the same concept or position. Market leaders are often the first to bring to the market a concept or position. Being first is important. Other car companies have tried, including Mercedes, to brand safety in their marketing campaigns, yet only Volvo has succeeded in anchoring the concept of safety in the prospect’s mind. For shop owners, we need to study and understand our market, but be careful not to copy our competition, especially if the competition owns a concept or position in our market area. Copying what the competition does will result in you becoming what’s known as a “me too” brand, a copycat. And copycats are rarely considered credible. Find your niche, find what makes you different, find out what you do that others do not do. Only then will you stand out from the pack and become a market leader in your area of differentiation. I know we all service and repairs cars. That’s how we generate sales, but it’s not what defines us. Find what makes you different and you will build your pathway to success.

I thought I would really switch gears today and ask; What's your favorite BBQ. I have two Weber grills and I love summer time and BBQ. My Weber charcoal grill is my favorite. It's a lot more work and you have to wait for the charcoal to get to the right temperature, but for me you can't beat the flavor of charcoaled steaks, hot dogs and burgers. Later today I am trying for the first time those wood planks and will be cooking salmon.

ASE certification is a requirement in my shop, with the techs and with service advisors. We started holding study groups at lunch and after work to insure that techs and advisors were studying. I attended a few of these study groups and help to tutor the group. We just started this and the test scores were amazing. The interaction of the group makes a difference. The group also took practice tests and we reviewed the tests and the answers. Just thought I would pass this along.

I was wondering if any ASO member has experience with OSHA and what were the results. We have all heard horror stories about OSHA and violations. Also, what training and self-inspections are shops doing to prepare themselves in the event of an OSHA inspection?

I wonder how many other professionals get grilled and interrogated? When the plumber arrives at someone's house, I wonder how much interrogation goes on? I do think that it is somewhat a personality trait of some people to doubt and question. My concern is that it happens way too much with us due to the image we have.

This appears to be a problem with many shops. A few years back we furnished a roll around tool box for the shop. It had all the basic tools that a tech can used to take care of most small jobs: LOF, mulitpoint inspections, etc. The idea was to have a tool box that can be easily moved around the shop if a tech had to work in a bay that was far from his own box. Also, it would be used for entry levels techs that don't have a lot of thier own tools. We took inventory and set up perodic inspections. Sadly, tools were lost and no one knew where they went. We stopped the program, now everyone is required to obtain their own tools and shop tools are the responsibliy of the manager. Every shop tool is inventoried and we check the list periodically. What bothers me is the lack of respect some techs for their own tools and personal belongings.

We recently had two bad PCMs from the dealer, for a Dodge Van. Drove us crazy. The original had a intermitnent stall, the first replacement had a no start right out of the box, and the second replacement had a rich idle and would missfire under a load. Hey, that makes three, right? The original, the first replacement and the second replacement...

When the day comes that collectively we realize all the true costs of being in business, and when we realize that as an industry to attract the best we need to offer a decent salary, then things will begin to change.

Everyone has their own perception on life and the world around them. This perception becomes reality and it’s the only reality that matters. At least for most. This does not always hold true for shop owners. As shop owners, we don’t always have the luxury of viewing things from our perceptive. There are other people around us and their families to consider. As the owner, and the leader, our concerns and issues take a backseat to the concerns and issues of others. This is something I know we accept and we do our best everyday to look at things from the perceptive of others. For me, it’s been 33 years since I put the key in the door of my repair shop for the first time. And I can tell there are times when I feel like it’s the 12th round of a 10 round boxing match. I am not complaining, mostly because my position does not allow me to complain. Leaders and business owners have to remain strong, positive and put the interest of others before themselves. This is in part what makes a leader a leader; the ability to put one’s interest aside for the greater good of others. However, this makes it very lonely at times. Leaders must have vision and work to not only improve themselves but improve the lives of others. Leaders also must look to praise and recognize the accomplishments of others. Moral building and team spirit become the essential building blocks of any organization. We as shop owners are well aware of this. I am not asking those who are employed to understand all of this. But please, is it too much to ask for just a little consideration and understanding of what WE go through? I am not going to get into all the petty situations that drive us crazy. It really does not matter. I also realize that the words I am putting on paper will do more good for me, and hopefully for you, reading this. It will not, I am sure, change the way many people think and act who simply go to work each day and expect a pay check at the end of the week. Ok, that’s off my chest. I feel better. To be honest, things are not that bad. I have a great family, great wife and three amazing children. I have built a company that I am proud of; a business that was only a dream decades ago. I entered this industry as a mechanic and was transformed into an entrepreneur. I have achieved a lot of the years. And I am not done yet. There is still much more to do and will work hard to achieve my goals and aspirations. Maybe I try too hard. Maybe I judge others by how I was and how I am today. Maybe that’s wrong. Perhaps, I am not the leader I think I am. Leaders must find other potential leaders and cultivate them to become future leaders. Leaders must also be understanding and find the good in others, and not focus on the negative. Maybe I needed to write this tonight to remind myself to stop complaining and get back to work. If something isn’t right, then I should take a long hard look in the mirror. The answer to my problems and questions can be found in the man staring back at me. So, let me get back to work. Yes, a leader can be real lonely at times. But I would not want it any other way!

The other day, the alarm panel at the shop displayed a message that said, “Low Battery”. I called my alarm company and got the owner on the phone. He said that means the battery in the panel needs to be replaced and he would be over in a few hours. A few hours later, the alarm company owner arrived with the battery in his hand, walked over to panel, opened it, pulled off two spade terminals, removed the old battery, put the new battery in place and push on the two terminals. All of this took about one minute, which included saying hello to me and complaining about the Knicks losing to the Pacers. Then he handed me the bill: Labor: $95.00 Battery: $45.00 Total: $140.00 plus tax I did the math and the labor works out to $5700 per hour. What do we get to install a car battery? I know, I know, it’s a ridiculous analogy. But hold on for a second, is it really? Installing a car battery is a lot more difficult than a little alarm battery with push on terminals. Isn’t it? We have the battery hold down to deal with, corroded terminals, corrosion on the tray to clean, a memory saver to hook up to the OBDII connector. And on some cars, like BMWs, we have to register the battery in the computer to insure it will charge properly. And, we have to sell the battery after we spend time testing the battery and the charging system. And what’s the average labor charge for installing a car battery? 25 bucks? 35 bucks? Some charge no labor, just happy to sell the battery and make the part markup. I am having a little fun with this, but the truth is the alarm company owner did the math and knows what he needs to charge to remain profitable. He knows what every service call costs him in time, gas, insurance, workers comp, payroll costs, and other overhead expenses. If this is what he truly needs to remain profitable, then so be it. I only wish we can be as brave at times to charge what WE need to remain profitable.