Joe Marconi

Since the summer of 1973, the year I graduated high school, until 1980, my goal was to become a world-class mechanic. On October 1, 1980 I put the key in the door for the first to my own repair shop and was ready to rock the world. “Bring it on”, was my motto, “There’s nothing I can’t fix.” Only to find that less than 10 years later I would be nearly broke; financially and emotionally. The problem? I was a great mechanic, but not so great business man. While I could fix just about anything that rolled into my bays, when my business broke, I didn’t have the skills to repair the damage that would almost lead to my demise. Failing has a great way of teaching us valuable lessons. I learned the hard way that the skills of being a mechanic have nothing to do with the skills of running a business. So, in the early 90s I switched gears and began my quest to learn the skills of running a business. I wasn’t totally ready to weld shut my tool box, but I knew that things had to change or I would not have a business to worry about at all. Perhaps the hardest thing to change was my mindset that the business and its success were solely dependent on me. That no one could do as good a job as I could. I had this crazy idea that I was the best at trouble shooting, the best at repairing cars, the best at road testing, at selling, at speaking on the phone, at doing the books, even cleaning the bathrooms and fixing the roof. To change meant that I had to give up control, hire and assign others to help and do the work that I thought could only be done by me. Little by little I handed over the reins to others. As I hired new people, I wrote job descriptions, policies and procedures. Specialized training was implemented to teach each person to be responsible for their particular position and slowly but surely, it began to work. The tasks that I once thought could only be handled by me were now the responsibility of others. We became more efficient and we were finally growing. Then came another turning point. Now that I was on the sidelines more, I could see things that I could not see before. This is where another awakening comes into play. I could clearly see when and how others failed at their jobs and I was not too diplomatic on how I told them how I felt. I managed my staff by the principle of “My way or the highway”. This, of course, was positioning my business on a collision course with disastrous consequences. To make matters worse, I drilled into everyone’s head; the numbers and processes that were crucial to our success and made it clear that everyone is responsible to maintain certain productivity and sales numbers. If not, I would have to replace them. After all, I had a business to run; and numbers and profits were the only thing that mattered, right? Well, not exactly. As I pushed for more sales and productivity I also pushed my staff farther away. Moral was suffering and we had a tough time meeting our goals at times. No amount of reasoning could reach the minds of the people around me. Until it dawned on me that my focus was on profits and process, not people. My relentless stream of numbers, stats, systems, procedures and reports was compromising the spirit of my business. I had forgotten that you should never put profit before people. I knew that we had most of the building blocks in place; the only missing piece was culture. I stopped holding “numbers” meetings and starting having “people” meetings. At these meetings I asked for everyone’s input and to tell me what is right with the company and more importantly, what was wrong. I listened and changed our focus from a numbers-driven business model to a people-driven model. Lifting moral and creating an exciting and enjoyable workplace was the goal. It took months, but the turnaround was dramatic. I had to put aside my hunt to find mistakes and mishaps and began a new mission to find people excelling and catching people doing things right, not wrong. I started a practice at the beginning of each week, which I still do today, to create a written list of each employee and write next to their name, something that I could praise or thank that person for. Throughout the week, I will make it point to speak to each employee in a sincere and positive manner. Soon, all the issues we had reaching our goals were vanishing. By taking care of people, by recognizing their hard work, by thanking people on a daily basis, all resulted in higher sales and greater profits. I learned that when people are recognized and feel that their contribution to the shop matters; things begin to fall into proper order. I still work on the numbers, the systems, the policies, the procedures and everything else a shop owner needs to do. I set goals and establish deadlines. But, what I won’t do is forget about people. Helping people around me and getting others to achieve their personal success, is my focus. No one is an Island, and leaders need great people around them. Do we still have challenges and problems? You bet we do. That will never go away. But, we are far better off today than we once were. As shop owners, our lives are filled with daily challenges and maintaining a positive attitude tests our fortitude and character. There will be those days when you will question is it all worth it. After all, who gives us a pat on the back when we need it? Remember, we have chosen a life to lead and help others. And while it may seem difficult to see at times, helping others prosper and making others feel good about themselves will truly become our own pathway to success. View full article

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AutoShopOwner.com is proud to announce it now has over 1000 members! This truly is a milestone and exciting to see how ASO has grown in just a few short years. AutoShopOwner.com was founded on the concept that there is a wealth of business knowledge among automotive shop owners, and by bringing these shop owners together, great things can happen. Thanks to its loyal member base, AutoShopOwner.com has exceeded expectations. It is within the forums that shop owners engage in dialogue, communicate ideas, voice opinions and help their fellow shop owner through difficult issues. What ASO also discovered is the dedication and commitment shop owners have to the industry. AutoShopOwner.com will continue to bring exciting posts, content and information to keep its members up to date with the latest business challenges faced each day. ASO is OUR website. It’s our online voice to collectively work to help raise the image and level of professionalism of the auto service industry. As a fellow shop owner, I am proud and honored to be part of this extraordinary group of business people. Joe Marconi AutoShopOwner.com, Cofounder

Are there any March Maddness Fans? I am not a big NBA fan, although years back I was. Now, I do get caught up in the excitment of the NCAA.

A recent report from the US Energy Information Administration and the Automotive Aftermarket Service Association stated that Americans are driving more miles and the trend will continue for the next few decades. This is exciting news, and a reversal from the past few years. The forecast for miles driven for 2013 is 2.6 trillion. And the projected miles for the future will continue to rise and reach 3.6 trillion by 2035. It's interestinbg to note that the report also pointed out that while there has been a focus on public transportation, there is real no subsitute for personal transporation. Public transportation is not a viable option in most areas of America. Essentially, the U.S. infrastructure is primarliy based around the car. Good news we can all use!

If there is one thing that have seen over and over in our industry, it's shop owners going the extra mile for the customer. Even to the point where it turns into a financial disaster for the shop owner. Your decision showed the true pro that you are and in the end you made the right decision for you and the customer, a win-win.

I'll bet a month's salary Gonzo knows this old Sun Machine. I found this Sun Machine in a furniture store in Los Angeles, while visiting my son and daughter-in-law. The price tag was $4,300. I had the same machine back in the early 1980s.

Tell Your People Why? Years back, when I first started working, my father would instruct me to listen to my boss, and if he asked me to sweep the bay, I should sweep the entire shop. He would also tell me not to ask questions. The boss is the boss and he has the power to hire and fire. Well, that style of management no longer applies to today’s workforce. Today, to simply expect someone to follow orders without understanding why, will not create long term buy-in. People need to understand the inner workings of how a business is run and the reasons why certain procedures and policies need to be followed. Employees may follow orders, but only for the short term. It’s one of the reasons why techs and staff follow a new procedure for the short term, but as time goes on, the process is either abandoned or performed half-hearted. From the perceptive of the shop owner, this is interpreted as a lack of caring or lack of willingness to do what is told. Make sure everyone in your company knows the reason behind a certain procedure or policy. Ensure that there is clarity on the part of the employee whenever a task is assigned. When the people in your shop understand the importance and the reasoning behind the task or policy, they are more inclined to comply. Get people to work as a team. The best organizations have people who understand that each position in the company is key to the overall success of the team. When each person views their position as a valuable piece to the overall success, it creates buy-in from the individual and the team spirit flourishes. Of course, as always, you need the right people in your company also.

I was wondering the other day how shops compare or differ with regard to shop expenses. For me my biggest expense, besides payroll, is insurance; liability, workers compensation, health insurance, etc. I am assuming that this is the norm around the industry. I do have a few equipment loans and truck loan, but once they are paid off, there is a period of time that we get a break. With insurance, it seems it is always on the rise and something we are always reviewing. How do other shops view their expenses and how do you control them?

A shop owner's nightmare. I think too many techs get too comfortable over time. Lifting a 3000 pound object is nothing to take lightly.

First, glad to have you back Gonzo! Your article touches on a very serious fact; even with all the technology and information we have these days, you cannot replace common sense, gut instinct and technical knowledge of how systems work. It frustrates me a lot when we have to literally close the book and find different paths to solving a problem. Again, the question always goes back to getting paid. There are some things that the general public will never understand.

By now we have all heard that different manufacturers and Google are working on the driverless car. That fact does not bother me too much, but the claim that driverless cars will lead to less collisions, does. It’s pointed out that most accidents are caused by human error and cars operated by computers are safer and will be involved in fewer accidents. Well for me the jury is still out on that claim. I guess the main thing is realize that technology is moving faster and faster and as shop owners we need to cope and embrace not only technology but all the changes we will see in the near future. What’s next, the flying car? Here's a link to an article on Google's driverless car: http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/

By now we have all heard that different manufacturers and Google are working on the driverless car. That fact does not bother me too much, but the claim that driverless cars will lead to less collisions, does. It’s pointed out that most accidents are caused by human error and cars operated by computers are safer and will be involved in fewer accidents. Well for me the jury is still out on that claim. I guess the main thing is realize that technology is moving faster and faster and as shop owners we need to cope and embrace not only technology but all the changes we will see in the near future. What’s next, the flying car? Here's a link to an article on Google's driverless car: http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/

Very funny, loved it!

Just wondering if shops charge extra for TPMS on doing tire rotations and other related jobs with cars that have TPMS?

What managment system to you use? We use Mitchell and it has a pretty good inventory control system. It sounds like you have a lot of material, as opposed to a repair shop with part inventory.

I have heard this story all too often from dealer techs. I have a few dealer techs working for me because they could not take the rollercoaster ride anymore. They made great money when it's busy, but when it's slow, they go home with a few hundred bucks at best. Even if you average the highs and the lows, the pay is not great. I hate to hear the frustration in your voice. There are a lot of great independent shops around that offer pay plans and give techs the opportunity to earn a nice living. We pay by the hour, with overtime and pay performance bonus. My techs like it because they know the minimun they can make and strive to earn more by producing more. I hate to tell you this but we hire entry level techs for more money than you are making. An entry level tech in my shop in New York starts out with $15 to $16 an hour. Please don't give up yet, talk to others in the area and maybe out of your area. There are shops that offer good pay, training and other benefits. Just look at the quality of shop owners that are members of ASO.

I number of years ago I purchased the Mac Tools 5 piece lug nut torque wrench set. In the last year, my techs have been breaking the most used torque wrenches; 80 and 100 foot pound. The Mac Tool rep says he has no other shop that breaks the tools. We are a high volume shop, but I feel the tool should handle the use. Does anyone have any info or experience with this tool set? I am wonderig if it's "use" or "abuse"

I was among a handful of shop owners yesterday, March 14, who attended a meeting with BWP/CARQUEST and Advance Auto Parts. As we all know, Advance Auto Parts has purchased BWP/CARQUEST in the North East. I can tell you when I first heard the news back in December, I was stunned. My prior perception of Advance was not good. To me, Advance was a company dedicated to the DIY market, a retailer who had no understanding of the aftermarket independent repair shops. The shops in my area have a strong relationship with the Stockel family (owners of BWP/CARQUEST), and even though Advance has two stores in our area, shops did not buy from them, always remaining loyal to CARQUEST. Well, after sitting in on the meeting yesterday, I can tell you that Advance is committed to making changes that will have a positive impact on our industry. They are willing to sit down and listen to us. Advance has been working on programs and information systems that will rival other companies and are a huge benefit to independent shops. Advance understands where the market is going, and it’s not the back yard weekend warrior. I did voice my reasons why I had a negative perception: Free check engine light scans at the store, free battery installations in the parking lot, free battery and alternator testing, etc. However, they were very open and wanted to know exactly what it was about their current marketing and advertising that upsets shop owners. I walked out the meeting feeling a lot better than when I walked in. I was impressed by the people from Advance and their willingness to listen and help us. In the coming months Advance will be working with shops and bringing to the aftermarket many exciting programs. I also have a strong feeling that Advance will change their marketing and put more focus on building bridges with independent shops owners and tear down some of the walls that were constructed from prior ad campaigns. Perhaps the key to all this rests in knowing that the Stockels, (owners of BWP) are staying on for a period of time working through this transition and integration period. There is a strong feeling that the culture of relationships will remain intact, making this a powerful alliance and one that will greatly benefit the aftermarket.

I think the first thing you need to do is a demographics study in your area. See if there is substantial market in your area of vehicle owners with the cars you want to work on that fit your profile customer. Defining or specializing your business is not a bad thing, but the key to any business is knowing who your customer is. In the 90s, when people were on a spending spree and leases were becoming popular, many of my customers either purchased or leased higher-end Euro cars: Volvo, BMW, Mercedes, etc. However, later down the road these same customers are now driving Hondas, Subaru’s and Mazdas. If I concentrated on the car make and model, and not the customer, I would be in serious trouble these days. In marketing we like to “position” our company different from the rest, making us stand out among the crowd as something different and unique. But the real potential is finding the right customer that wants to come to you because of your unique position. People basically stay the same, but the car they drive may change. I am not saying your plan is not viable, just understand and know your market.

That is a great question, and one that many people ask. And we struggle with it too at my shop, but I rather tell the customer the truth and what we think is in their best interest. Imagine going to the doctor for a knee injury and he was afraid to tell you about other health issues for fear that you might think he is being pushy? The issue is that not enough shops are proactive about preventive maintenance, and when they get to you, there's a laundry list of service items. Make is policy that all first time customers will get a complete multipoint inspection has part of today's service and that you will review the inspection list with the customer. Most important, point out what's good with the car (hopefully there is). Try not to start the conversation by bringing out all the negative stuff. Whenever possible, first inform the customer what the car DOES NOT need, then go into your presentation about what it does need. Also, ask a lot of questions at write up, such as, "How long do you plan on keeping the car"? and, "What is the primary use for this vehicle"? People like to be part of the process and anhything you can do to lower the anxiety will help with sales. Hope this helps.

Hi Kevin, 24 years old, I have socks older than that! Only kidding. I was 25 when I started my business. And after 32 years, It has been some journey. Welcome to ASO, please ask away and join in on the forums. We are all family here and together we can accomplish a lot. Good luck and don't be a stranger to the forums. Joe

I am seeing a pattern, and I hope it’s not long-lived and isolated. I don’t know the entire reasons, maybe money, maybe the fact that cars don’t break down as much or maybe the perception is that cars don’t need much maintenance. But whatever the reason, we are seeing many cars with nearly 200k on the clock for the first time that are a mess. We then try to get them caught up with services and maintenance work, it’s a real struggle. Keep in mind, these are first time customers. My concern is that we as an industry may not be doing the best job in terms of promoting needed maintenance. When they arrive at my shop, we do a complete multipoint and customer interview. We reveal many issues that the customer either had no idea or may have declined over the years. We see 10 year old cars with over 175,000 miles with no record of replacing spark plugs and other maintenance items. We even see cars with cabin filters so packed with debris it’s amazing that there’s any air flow throughout the car. Whatever the reason, it appears too much money has been left on the table.