Joe Marconi

This is a real life issue, and I hear it often. You are on Indeed looking for resumes and see that your top tech recently posted his resume. What's your next move? Confront the tech? Ignore it? Or what?

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It sounds like you have a good process in place. I think many shop owners have a fear to close on Saturdays. Will customers go to another shop? This is a decision that has to be made by the shop owner. One thing, there are some people that truly have a hard time to get their car in for service during the week. Also, breakdowns can't be scheduled. I am playing devil's advocate, obviously. But these are things to consider.

I tend to agree with you. Many shops benefited from the right conditions coming out of COVID. There is still opportunity, but we must not get complacent and continue to provide value for our customers, take care of employees, and understand the numbers to stay profitable.

From what I am hearing around the country, the past two years has been a whirlwind for shop owners. Not only has been a challenge to find quality employees, the concern is also retaining the employees we have now. Many have enhanced their pay plans and benefits packages. What have you done, if anything, the past year or so, to enhance your pay plans and benefits.

In my 41 years in business, I was open Saturdays. Up until the 1990s, it was a full day. That was a time when cars broke down a lot! Eventually we settle on a half day for Saturdays, usually ending the day at 1pm to 2pm. Today it appears that most shops are not open on Saturdays, and many are considering a four-day work week. Some shops are open 4 days, while others are open 5 days, and rotate employees with a 4-day schedule of extended hours. SO, are you in favor of (or not) opening up Saturdays, and Why? And/or are you considering a 4-day work week?

Another Great podcast, and highly recommend for all shop owners!

Let me add one thing. First, I do agree with you 100%. When I was in business, my shuttle driver held a very important position, and actually helped to build relationships with customers. With that said, so was the person who cleaned the shop, the bathrooms and the entire facility. I guess what I am trying to say is that shop owners need to treat every position in their company as a key position. Making everyone feeling good about themselves, and help to promote the customer experience. Great post!

Have I got your attention? Great. Let me start by saying that I believe in giving praise when deserved and letting employees know when they dropped the ball. However, the truth is that no one enjoys being reprimanded or told they messed up. The question is, what is the appropriate balance between the right amount of praise and the right amount of critical feedback? According to studies done by Harvard Business School, the ratio of praise to critical feedback should be about 6:1 – Six praises for every critical feedback. I am not sure if I agree with that. From personal experience, I would recommend a lot more praise. The exact ratio doesn’t matter. What’s important is that before you consider giving critical feedback, ensure you have given that employee a lot of recent praise. If not, whatever you are trying to get through to an employee, will fall on deaf ears. When you do have to give critical feedback, remember a few things: Focus on the issue or behavior; never attack the person, and remain calm in your actions and words Ask the employee for feedback, their side of the story Speak to the employee in private Address the issue soon after it happens; never wait Don’t rely on second-hand information; it’s always better if you have experienced the situation yourself that you want to correct Have an open discussion and find things that both of you can agree upon Have an action plan moving forward that the employee can take ownership of Use the experience as a learning tool Make sure you bring up positive attributes about them Remember, you don’t want the employee to be angry or upset with you; you want them to reflect on the situation and what can be improved. One last thing. Everyone makes mistakes. We need to be mindful of this.

Great topic. I remember being stubborn too, and told my self that I would hold out until I was 50 before wearing reading glasses. How foolish. At 48 I gave in.

Employees today will disengage if they don’t feel valued. by Joe Marconi: Quiet Quitting: New Phrase, Old Problem - Featured in Ratchet and Wrench Magazine Some people go to work each day with great enthusiasm and believe they can change the world. But then, others anticipate each workday with feelings of despair. These employees do the bare minimum; just enough to keep their jobs and go unnoticed. They are called quiet quitters. While quiet quitting may be the latest catchphrase, it's not a new workplace disorder. We've called them disgruntled, disengaged and even toxic in the past. But who's responsible for this behavior? Is it the employee? Or is there a deeper problem brewing in the workplace? Work has Evolved As a young technician in the mid-1970s, the shop owner was typically at the top of the pinnacle. It was common back then for a boss to run his company with the mindset, "my way or the highway." Was it wrong? Perhaps. Thinking back, I don't think we clearly understood or appreciated the role we played in the workplace or how we fit into the company's structure. We accepted things the way they were, unlike employees today. I also believe we felt we couldn't change how things were. Today, it's a lot different. There has been a shift in the workplace. Societal changes, the internet and social media have changed our exposure and heightened our awareness of the world and the issues that confront us daily. Today, employees of every generation believe they should have a voice in the company's decisions and direction. It's important that their opinions count and that their job role has a purpose. Of course, earning a decent living is top of mind, but as always, not the prime motivator. At the top of what's most important is the workplace environment and the employee experience. When employees lack the experience they crave, they become disengaged, leading to what we call quiet quitting. Employees Want Accountable Leaders Lack of trust in leadership is another factor in quiet quitting. Shop owners and managers must communicate what their employees can expect from management and not only what management expects from them. Consistency in the message and following through on promises contribute to workplace morale. After all, if you can't trust the message, you will not trust the messenger. Some people will excel in any work environment. However, they are the exception, not the rule. If you want a team of employees where everyone is pulling in the right direction, you should consider the needs and opinions of your employees. If you are concerned that understanding your employee's point of view and acting on it is giving up control of your company, don't be. Earlier, I referred to shop owners from years back. Most of them had a good business but not a great business. The reason was that they were the business. Growth was difficult because it was dependent mainly on their abilities and talents. This one fact alone causes a business to plateau. However, when a business combines different points of view and strategies from the team, greater growth is possible. Start Within Lastly, there will always be employees who won't be happy no matter what you do. If you are confident that you have done all you can to help a quiet quitter, the only hope at that point is for the employee to look within themselves, which may be difficult for most people. Instead, focus more on what you can do. Look within yourself to ensure you are doing everything possible to create an amazing employee experience. Your goal must be to create happy employees. We've all heard the expression, "happy employees create happy customers." Well, they create happy employers, too. View full article

Many auto repair shops are still busy, and many are booked out from a few days to weeks. After the initial shock of Covid, the recovery for our independent auto repair industry has been quite good, with many positive indicators for the future. However, how many of the auto repair shops that did suffer a great loss in business during the lockdown phase of Covid would have survived if not for the SBA loans, the Pay Protection Program and the Employee Retention Credit? Building a cash reserve is crucial to prepare yourself for the next economic downturn. How much should you set aside? That depends on your business model, how much debt you have and other financial conditions. Speak to your accountant, financial advisor and business coach, if you have one. Rule of thumb, you should have at least three months of operating expenses set aside in a dedicated bank account. Some accountants and financial advisors may suggest up to six months.

Military Veterans are structured, understand the team concept, and also have leadership skills. Many of them were trusted with multi-million equipment. While many of their skills may not transferrable, many are looking at life after the military and are seeking careers in the trades. We should offer them opportunity. Also, we should consider veterans in other positions in addition to tech: service advisors, managers, office personnel, etc. Below are two websites for more information: https://www.dol.gov/agencies/eta/employers/workforce-development-solutions One key role of the public workforce system is to help businesses find the qualified workers they need. As a business, you will find an impressive array of screening and referral tools available. Depending on the capabilities and priorities of the local area, the services may include electronic job orders and job fairs, use of private interview space, background checks and customized screening, and regular referrals of qualified candidates. https://www.esgr.mil/ ESGR understands the unique talents and skill set Guard and Reserve Service members can bring to the civilian workforce. To make this arrangement work, both parties must be aware of their rights and responsibilities under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Learn more.

Thank you for the added perspective. I think that for most All Makes All Models, the business model will have to continue to evolve. There is nothing wrong with it, and it kind of makes sense. Think about this: There are pediatricians, surgeons, radiologists, Internists, psychiatrists, etc. BUT they are all called Doctors. Specialization, to some degree, will come.

That is hard to accept. I feel for you. You may not know, but I recently sold my company, so I am not up to date with QB. I did use them for probably 20 years or so. Let me do a little digging to see if I can find out more info.

That is hard to believe from QB! I don't blame you for being upset. There are no other options? Have you tried to reach out to them? I know the past few years they have been a growing company, and not the same company that I first started with them, years back.

Joe Marconi will be speaking at the upcoming virtual conference Amplify 2023, hosted by AutoLeap, with an exciting session to help shop owners be prepared with their business! Joe's session is titled "You Can & Will Survive an Economic Downturn". For most repair shops, the recent years have been smooth sailing for business. Although it's impossible to predict our economic future, does that mean you shouldn't always be prepared for what's next? The COVID pandemic brought a variety of challenges, and while it didn't bring significant negative impact to the repair industry, it does offer the opportunity to reflect and properly prepare for a time when an economic event could. Join Joe in this live session to dive deeper into this topic, happening at Amplify 2023 on March 24th, 1:00pm ET! Book your complimentary, virtual ticket today. https://bit.ly/3XSdY8b

As an "old timer" who got his start during the muscle car era, this is hard to accept. Am I too sensitive? The Associated Press covered some of the driveway mechanics and enthusiasts who are converting classic cars into electric restomods. This includes some business owners like Sean Moudry, co-owner of InspireEV near Denver. He recently restored a 1965 Ford Mustang with an electric powertrain. The project cost upwards of $100,000. Read the article in Ratchet and Wrench: https://www.ratchetandwrench.com/site-placement/latest-news/article/11461897/ev-restorations-booming

Great tips, and great advice!

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Do you think the reason for high productivity and beating the labor time is due to becoming very proficient in a particular area and skill set? As in your business model? In the "Most Car Makes, Most Car Models" world that I operated in, over the years it became more challenging to beat the time. For example: A tech's first car for the day is a Check Engine light problem on a Buick, then an ABS issue on a Lexus, and then a climate control problem on a Volvo. To be proficient in this environment is challenging, at best. Thoughts, comments?

Charlie, Yes we get the point! Great photo. You make great points about the current state of business. And as someone who has been in this industry since 1974, I can tell you that your words have never been more true. The "arrogance" you speak is the prime reason for writing this blog. Perhaps, shop owners should ask themselves, "Is my recent success directly related to what I did, or is it the benefit of current circumstances?" Thank you for you post!

Great comments and feedback! You are lucky that productivity is not an issue at this time, that means that you are doing a lot of things correct. You make a great point that many are afraid to charge what they need to charge. I wonder if it's from fear or not truly knowing their numbers and the need to achieve a profit?

Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple? The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels. Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer? And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs. Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.