Joe Marconi

Raising your labor rate and trying to increase your average ticket dollar amount in an effort to increase income may not be the way to financial stability. In fact, it might just make you fail! Before you send for the men in white coats and call me crazy, please have an open mind and read on. Like many of you, I once shared the belief that a high labor rate, quality work, high-ticket averages and superior customer service was the business strategy to create a successful repair shop. I also believed that the customers should never control the flow of work in my bays by dictating to me when they need service and that I should carefully plan out the day. There was also a time when I would refuse a walk-in for an oil change because I had too much work in the bays. Well, I’m here today to tell you that for me, this strategy is dead. It died along with the carburetor, points and condenser. The quality of your work, tracking key performance numbers and providing great customer service still holds true, but in today’s business world, it’s not enough. Look around at the world today. Has anything changed? You bet! We live in a fast past world where people balance work, family, fun, Church and other obligations. Both Mom and Dad have careers and are running from ballet to baseball. The media has been drumming into our head for the past thirty years that great service is getting what you want now and fast. Why do people today value their time so much? Because they have so little of it. So, here’s the scenario. Its Tuesday 2:00pm and Mrs. Smith arrives at your shop unexpectedly with a check engine light on. You politely and professionally tell Mrs. Smith that you would be more than happy to take the car in on Thursday. Now, she’s starts processing in her mind what she needs to do on Thursday: She needs to leave work early to bring her daughter to the dentist at 1:00pm and needs to be back at the office by 3:00 for a meeting, then dinner at 5:30 and the P.T.A at 7:00. “No, Thursday won’t do”, she says. Respectfully, you answer, “How’s next week?” At this point she gets frustrated and says she will let you know. You just may have lost a customer. You viewed her problem as a check engine light and how you would fit her car into YOUR calendar. She perceived her problem as another way to balance an already demanding schedule. Now let’s talk about labor rates and average repair order dollars, and I will hopefully tie all this together. Concentrating on bigger tickets and labor rates as a way to overcome inadequate car counts and low profit will simply not work. I’m not saying you shouldn’t charge what you are worth. I don’t give anything away in my shop and charge accordingly. But, what I’m more concerned about in today’s market is opportunity. I concentrate on maintaining healthy car counts to give me the opportunity to sell more. Today’s cars are not like those built in the 70’s and 80’s. You don’t have the highly profitable repair work anymore and cars are more reliable. Take a look at what the automakers are taking away from us: Timing belts, plugs/wires, fuel filters, distributor caps, rotors, etc. Not to mention long life coolant, transmission fluid and extended oil change intervals. This means you will need a healthy car count in order to give your shop the opportunity to sell profitable service work. This also means that you will need to be very proactive in managing your customer’s vehicle maintenance. You will need to be very innovative in your approach on maintenance and service, and diversify your services to fit a broader range of consumers. Successful “Big-Box” stores understand the law of compounding and moving product. Even in these tough economic times, Home Depot would rather sell 1,000 cans of paint a week and make $6.00 on a can, then make $12.00 per can and only sell 300. Why? Having that many people coming through their doors buying paint increases sales in other areas, such as paint brushes, primer, rollers and drop clothes. Again, when you increase the number of customers, you increase the opportunity to sell more products. This is the law of compounding sales through opportunity. Before you go lowering your prices, STOP. Most of us sell at a fair price already. What I’m suggesting is that when you increase car counts, you give yourself more opportunity to move product: such as air filters, cabin filter, batteries, wipers and other items. Plus, you are working on building a customer base that will more likely return in the future because your willingness to work around their schedule. You may have loyal customers, but if you’re not perceived as convenient and not willing to accommodate them when they need you, you may not be capitalizing on your potential to fully satisfy a customer. How do you increase traffic to your bays? Say “YES” as much as possible. Be more accommodating. Try to work around your customer’s schedule, not yours. Be more flexible. Your daily planner is not written in stone. Promote while-you-wait service, if at all possible. At my shop we welcome walk-ins and promote while-you-wait service. It has proven to be a gold mine of opportunity for us. I do understand that smaller 2 or 3 bay shops may not be able to handle a flood of waiting customers. For these shops you may need to rethink your business model to insure that your daily scheduled jobs are balanced properly in order to maximize opportunity. Remember; opportunity equals profit. View full article

As AutoShopOwner.com enters its fourth year, I would like to personally thank all the members for their continued contribution and making AutoShopOwner.com the “go to” online business forum for the independent automotive repair industry. The success of ASO is truly due to the strength of its membership. The combined knowledge and participation of its membership base has far exceeded our expectations. For that reason, we at AutoShopOwner.com are very proud. One year ago I wrote about the tough economic times we have endured the last few years. I stated that although 2009 was very challenging, 2010 would be the year to make our mark. Well, another year has passed and the automotive independent repair shops have once again shown their resilience and the ability to overcome just about anything thrown their way. We may have lost a few colleagues, but not many; certainly not nearly the numbers that were predicted. And, when you compare it to new-car dealership losses, we truly need to stand up and give ourselves a round of applause. In an era where conglomerates such as Chrysler and General Motors needed Uncle Sam to bail them out; we tightened our belts, restructured our pricing strategy, diversified our services, continued to train our technicians, and stood up to adversity. The truth is we maintained the attitude of, “Business as usual”. Our strength always has been and will continue to be, ourselves. Yes, I know how you are constantly being told that you need to run your shops more like a business, and I have heard over and over again how an industry of “mechanics-turned shop owners” is the main reason for our demise. But, how do you explain our continued success? How do you explain the fact that the independent repair sector is alive and well? How do you explain that we, the independent repair shops, are the number one preferred choice of the motoring public? I think it’s time to examine how WE do business, and maybe the rest of world should take a few lessons. To be honest, many of can do better financially. Shop owners and technicians work extremely hard, give a lot of the profits away in lost productivity, and simply do not always charge what they are worth. Too many of us end our careers with little to show for it. For many of us, breaking away from skills of mechanics and learning the skills of business is almost unattainable. As we get older and a bit wiser and beat up, we make the necessary changes to ease back and take more of a managerial role. We see the writing on the wall and feel the pain of years past in our backs, hands, and shoulders. But, we endure, and make a life for ourselves and our family. As a fellow shop owner, let me outline the profile of the typical shop owner. The typical shop owner is a dedicated, community focused person, involved with either the local Church or other organization(s). We put in an enormous amount of hours each week, working on every aspect of business. We always strive to do our best and produce the best product possible. We commit ourselves to continued education. We always give the customer the benefit of the doubt and will do just about anything (even at a loss) to keep the customer. We warranty repairs long after the warranty period. We come to work sick and take very little time off. We never hesitate to pick up a wrench, broom, mop or push a car into the bay. We are in the business of helping people and keep this country moving. Without us, our communities would come to screeching halts. We will work days on a problem, until we find the fix. We never give up. We always find a way to win. No one, and I mean no one, can take away the fact that the typical shop owner is truly committed to their customers and to the industry. As a group, we may not be the best business people, but we always find a way to get the job done. My vision for the future is to see more and more shops realize that our proven track record dictates that it’s time to secure our place in the future. We have done great things in the past, now it’s time to do even better. Continue to shift your role as a company leader and look for ways to transform your business where all the people in your company can enjoy the fruits of their labor. Build a solid future for yourself and for the people around you. This will be your legacy. Do this for all the reasons why you have done everything in the past, not solely because of economic gain, but because it’s the right thing to do. You owe to you, your family, and to the people who work with you. As we move forward in 2011 and beyond, AutoShopOwner.com is committed to your success and will continue to provide a platform where the open exchange of opinions and ideas will provide valuable information through shared knowledge and experience. Premium Members Can Download Here View full article

We all have had that week from hell. You know, the one week that makes you ask yourself why in the world you ever got into this business in the first place. The week that makes you doubt yourself, your customers and the people around you. And as you push through the week, every turn you make you find another fire to put out, another bounced check to worry about, another comeback that needs to be done over again, on and on and on. By Wednesday you say to yourself, “it must get better, it can’t get worse”. Well, guess what? It can. For me, my recent week from hell happened this past summer. I came in on Monday morning in the second week of July to find that my service manager was sick and would probably be out until Thursday. I also learned that one of my top techs got into a motor cycle accident over the weekend and was seriously injured, with no information about his return to work. It was 6:45am and little did I know, this was just the beginning, and it was about to get worse. A Subaru we serviced a few months ago was towed in over the weekend with a seized engine and the owner was blaming us for not putting oil in the engine. He was demanding we pay for a new engine because in his mind, it’s our fault. I gathered my crew together a little before 8am and told them this was going to be a very challenging week. I also told everyone to be positive, work together and we will get through this. On Tuesday my air compressor caught on fire. The compressor, only a little over two years old, apparently had a defect in the wiring which caused a short and fried the motor. We were one month over the warranty and I had to eat the cost for a new compressor motor. On the ride into work on Wednesday I called my shop foreman and asked if it was safe to come in. I was joking, but he wasn’t laughing. There was silence on the phone and I asked, “What happened now”? He told me that the transmission we installed in the Dodge Van last Friday was towed in overnight; “the transmission doesn’t even move”, he said. He also told me that there was a note from a very unhappy customer that said she needed the van back ASAP! Then he told me that someone threw a rock through the front window and that the Police are waiting for me. I wanted to turn my truck around a go to the hills and hide. Aside from these new issues, we were getting behind in our work as the problems kept mounting. Somehow, we made it through the rest of the day. Thursday morning started out ok. My Manager was back and we were well into the process of getting all the issues settled. The compressor motor was due to arrive that day. Luckily we had an old back up compressor which kept us going. The glass company was there installing a new window. Things were looking better, I thought. But, I was wrong. That morning we received the wrong tire shipment, and all the tire sales for that day had to be reordered. We lost electric power from a downed pole around the corner at 10:45am. We did what we could, but we all know how dependent we are with computers, lifts, phones and other equipment. The power came back late that afternoon and we all stayed late into the night to catch up. The push to get the work done was draining everyone, including myself. I could sense despair setting in as the morale in the shop was suffering. I spent the better part of Friday morning dealing with the customer of the seized Subaru engine. The truth is, there was oil in the engine, but low about 2 quarts and he couldn’t read any oil on the dip stick. According to our records he was 5,000 miles over his scheduled oil service. We only serviced his car once and as I questioned him, I realized he didn’t take care of the car as he should, often going over the recommended interval for an oil change. I asked him if there were any lights on the dash before the engine seized. After a short pause, he admitted that the oil light and check engine light had been on the day the engine seized. Knowing the truth put me in a better position to deal with the problem. He was still angry and wanted to know what I was going to do because we were the last to touch the car, but the facts were the facts and I stood my ground. By Friday afternoon I was mentally exhausted and was looking forward for the week to come to an end. About 3:30 that afternoon, a long time customer came in for service on her car. I walked over to her to say hello and she started to cry. I sat down in the waiting area with her and asked if there was something I could do for her. She told me that her daughter, 41 years old, just passed away from cancer. She left two young children and a husband behind. In an instant, all the problems that happened the past week took on a different meaning; all of the worry that I had the past few days suddenly vanished. This woman had real issues to deal with; issues about family and life, and in the end, are the only things that really matter. I sat with her until her car was finished and listened as she spoke about her daughter and family. When her car was complete I walked her out to her car. As I walked back to the office, I started to put things in perspective and realized that all the trouble that had happened in the last 5 days seemed a lot less important. As shop owners, we face adversity every day. At times I feel we are being tested. Sometimes, things appear to be too tough to bear. Sometimes, just sometimes, the problems we face are just what we need to remind us that things could be a lot worse. For me, I learned a valuable lesson about life. I learned to appreciate the things that really matter in my life and not concern myself about the things that are only part of life, not what life is all about. Tomorrow is Monday, and I don’t know what the auto repair world has in store for me. It may be hell or it may be paradise. But whatever happens, I’m ready for it. View full article

Now more than ever before, we need to think and breathe business. I know most of you may have started as techs and many still turn wrenches on a daily basis, but the brutal facts are in: We are in a fight, unprecedented from any other time in auto repair history. The battle will not only be fought in the service bays. The key battle will be for market share of the service and repair business. We all heard that the future looks bright with low new car sales and dealerships closing, which are positive signs but not the total picture. The new car dealerships that remain after the dust has settled will emerge strong and with the full backing of the car maker. Yes, there will be some dissension in the ranks between the manufacturer and the franchise dealers. There will undoubtedly be a line drawn in the sand, as car dealers fight for market share of the service business and the car makers continue their desire to promote vehicles that need little or no maintenance. Dealers want and need the service business, but that would mean an abundance of cars that would last long past what the manufacturer would like. Car makers want to sell cars, not make them last for years. Let’s throw national accounts into the mix. The world was a nice place when a muffler shop was a muffler shop, or a transmission shop was a transmission shop, and a quick lube just did oil changes. Now, every national chain has entered the service and repair business, a place once dominated by independent repair shops. No longer can a tire store rely on tire sales, or a transmission store satisfy its existence through the sale of rebuilding transmissions. All segments of the auto repair and service industry now perform a wide variety of services, from tires to brakes to oil changes, and more. This transformation of the repair and service market is cutting up the service and repair pie smaller and smaller. So, where does that leave the independent repair shop owner? Actually, in a very good place. Think about it, we wrote the book on automotive service. We are the preferred choice of the motoring public. We are convenient, knowledgeable, work on multiple vehicle makes, friendly, and have been part of the community long before those muffler chains even thought about selling tires. However, we must not take anything for granted. We do have the power to shape our destiny. It’s up to you and me to stay the course. A recent Lang Marketing Report indicated that the decline in dealer service bays will lead to an opportunity for independent repair facilities. However, how the independent aftermarket responds to this decline will play a crucial role in the future of the independent car and light truck aftermarket business. As independents we need to commit ourselves to continued training. We need to embrace technology. We need to provide the very best in customer service and learn not only the skills of mechanics, but also the mechanics of business. AutoShopOwner.com will be there, every step of the way. That is our commitment to you! It will not be easy, but anything worth fighting for is never easy. Within the forums of ASO is a wealth of knowledge that gets stronger every day. Participate in the forums, post your questions and opinions. Share happy stories and share those bad days too. We want to hear everything. Spread the word too, in numbers there is great strength. The larger the membership, the more benefits we share. So, are you ready to roll up your sleeves and go to work? I know I am. View full article

* Part of a series of real life stories you can relate with! I got a call a few weeks ago from a customer (we’ll call him Dave). Dave asked me to give him a price on a 60k service for his daughter’s Honda Civic. She was coming home from college and he wanted to get her car up to date with needed maintenance. I asked Dave how many miles were on the car, and after looking up the vehicle’s records, I realized that she had put over 12,000 miles on the Honda, since we saw it last. I explained to Dave that it would be in his daughter’s best interest if I give the car a general inspection first, from bumper to bumper; just to make sure everything was ok. After the inspection I would be happy to give him a price on the 60k service and any other items identified during the inspection. Dave responded back, “You really can’t give me a price on the 60,000 mile service?” I explained again that many miles have past since we serviced the car and I just want to be sure that we look at the car in its entirety and not just focus on the 60k. After a pause he agreed and booked the appointment. The Honda arrived a week later and was dispatched to one of our techs for a complete general inspection. The inspection revealed only a few additional service items along with the scheduled 60,000 maintenance service. I was a little concerned about Dave’s insistence about the price when I first spoke to him and told my service advisor that I would be calling Dave about his daughter’s car. I reached Dave at his office and informed him that we had completed the inspection on his daughter’s Honda and that the car was in great shape. In addition to the 60,000 mile service the Honda would need a rear brake adjustment, a brake light bulb and a set of wiper blades. I gave Dave the total price, for the complete job. Dave responded back, “How much is the 60,000 mile service?” A felt a little confused at this point and itemized all the prices for him. He proceeded to tell me that a local dealer sent him a coupon and their 60k service was $80.00 cheaper! He asked me, “Why should I spend the extra money with you for the same service?” I could have explained to Dave that the coupon from the dealer was a special promotional price only. I could have also explained that dealers sometimes use these specials as lost leaders. I could have gone on to say that we employ only ASE certified technicians and that they receive on-going training and that we invest in the latest equipment and information systems. I also could have argued that this is how we justify our prices. But I didn’t say any of that. What I did say was this, “Dave, do you remember when you were leaving for vacation a few years ago, on a late Friday afternoon, and you noticed you had a flat tire on your camper? Do you remember I stayed open until you arrived to repair the flat tire? And do you remember the day your daughter was leaving for college in her sophomore year, and the check engine light came on an hour into her trip? Do you remember you called me and asked for my help? Do you remember how I arranged for a tow company to stand by in case your daughter broke down? And do you remember that I stayed opened until your daughter returned back so I can check the car out? Dave, is the service we have given you throughout the years worth a least $80.00?” There was a long pause and I knew from the sound in his voice that he felt a little embarrassed. He apologized and said that that he was trying to save a little money with the high price of gas and food these days. He also admitted that, with his daughter in her last year in college, he is feeling a little lighter in the wallet. We completed the 60k and the other service items later that day. What’s important is that I never tried to discredit the dealership. That would have gone nowhere. I also tried to direct the attention away from price and focus on the value of the relationship we have created throughout the years. In retrospect, I don’t know if I should have thrown it in his face, about what I did for him the past. I have mixed feelings about that. I think in these shaky economic times we need to concentrate on service. We need to address the concerns of the customers and give them options. Your customers will be looking to you for help and guidance, that’s part of your job. The shop that continues to deliver outstanding service and charges a fair price will thrive. I have lived though many economic roller coasters in my 30 years in business and have no doubt that this ride will pass too. If you’re wondering if I gave Dave a discount on the job, you can ask me that and any other questions, in the topic I have started for this story, in our forums. Let me know how you feel I handled the situation. View full article

Give your customers a memorable experience and they will return Peter Drucker, one of the greatest business minds in recent history preached, “The purpose of business is to create and keep a customer”. That simple quote is perhaps the single, most important business principle. We often get too caught up in sales numbers, gross profit margins, car counts and average work order dollars. Those are the numbers of your business, but what is the heart of your business? What will drive your business for generations to come? The answer: Customer Retention. And that can only be accomplished with a sound marketing program and creating the ideal customer experience. Take care of your customer, give them a memorable experience, and the rest will fall into place. Let’s first take a look how marketing differs from advertising. Marketing and advertising are closely related but often confused. Advertising is part of marketing and effective marketing is vital to customer retention. To simplify matters, advertising is everything you do to get your name out to your market area in the form of ads, radio announcements, TV commercials, bill boards, coupons, etc. Think of advertising as inviting consumers to try your product or services through different forms of media. Marketing is how customers perceive your business. Marketing consists of everything you do with respect to the customer experience. The experience is the most important step in the sales process, its makes or breaks the business-to-consumer relationship. For the customer to want to return, the experience must be positive. And, I’m not only referring to quality repairs, that’s a given. I’m talking about how the customer was treated on the phone, at the front counter, the waiting area, the bathroom, as well as the look of your facility….The Experience. Advertising may get new people through your front door, but marketing will keep them returning over and over again. A bad experience will result in a one-time customer, which wastes valuable ad dollars and hurts future sales. Remember, advertising gets the phone to ring, but how the customer is treated on the phone will determine if that person actually comes in. Or, how that person was taken care of once she arrived at your service counter will determine if she returns. Marketing is the key; it’s the difference between building a business and failing. It’s where many businesses drop the ball. Everything you do once the customer drives into your facility must be somehow related to getting the customer to return. Let’s take a look at a few basic marketing ideas you can implement today that will make a big difference with customer retention. Many of these marketing ideas don’t cost any money and I’m sure most of you already know them, but a basic marketing tune-up from time to time can’t hurt. Who’s answering the phone? A tech? A porter? Are they trained in customer service? This has to be the first step in your marketing plan. The wrong person answering the phone can kill your business. At my shop, only service personnel answer phones. They are trained with the proper skills to handle issues, problems and scheduling. Call your business from time to time or have a friend call. Make sure the people you have on the other end of the line are saying the right things in a warm and friendly manner. Who’s on the front counter greeting customers? What impression does the customer have as she walks through your front door? Are your counter people well groomed? Are they enthusiastic when they greet customers? Do they smile? You’ll have a tough time selling if your service people don’t have the right attitude toward the customer. I tell my service advisors; “When a customer walks through the door, treat them as if you were waiting your entire life to meet them, that your whole existence is dependent upon their arrival. If you want the customer to return, make them feel special”. How’s the look of your facility? Is it clean and orderly? Can customer see junk engines or tires piled up in the back? Is your parking area clean? How’s the waiting area? What does the customer bathroom look like? Clean bathrooms and waiting area are a reflection of your business. The customer doesn’t always see the repair, but they DO see how well kept your bathroom and waiting area is. You need to take a long hard look at your facility and make sure it has the look that invites people, not turn people off. It doesn’t take a lot of effort to insure that your facility is clean and neat. But, it goes a long way with the customer. The condition of the facility will leave an impression in the customer’s mind, if your place is a mess, the customer will take this as a sign that maybe your work is a mess too. Customer follow up is a great way to show your customers you care about their welfare. We call all first time customers and every customer who had a repair or major service performed. We don’t call for simple services like oil changes and state inspections or wiper blade replacements. Many new customers are stunned when we call; it’s a great way to reinforce that positive customer experience. Car delivery is another great opportunity to strengthen your relationship with the customer. Review the work order; ask the customer if there are any questions. Thank them and shake their hand. Walk them out to their car or hold the door for them. Anything that tells the customer you really appreciate the trust they have in you and want to see them return. Book the next appointment. Your dentist does it, why not you? Your customers will need another oil change service, right? Let it be your shop, book the next appointment during car delivery before the customer leaves. Create a system using a computer schedule program or use your business management program to alert you of scheduled appointments. You will need to remind these customers with a reminder card or phone call, but it’s a winner. You also need to create marketing programs that will contact your customers on a consistent and continual manner. You need to keep your company branded in the mind of your customer. This is important, the next time your customer is thinking about his car, he needs to associate his car with your business. This can only be done by constantly reminding him about your company. People will recall what they are familiar with. Here are a few marketing strategy tips: •Offer free tire rotation with every set of tires. Also offer free tire pressure checks. •Send out yearly reminders for wheel alignments. •Offer free fluid top-offs between services. •Create a welcome kit of all new customers. Include your company brochure, business card, other information brochures, and a new customer discount coupon for their next visit, magnetic business card. You can even add a small gift like a tire gauge. •At write up, get email addresses and birthdays (not the year). Send your customer a birthday card, either by mail or email. •Create an email newsletter and send out monthly car tips and other service specials. •Send out seasonal promotions. •If your state has mandatory safety/emissions inspections, send out reminders. •Make notes about future service work and suggested repairs and send reminders either by email or regular mail. •If you perform a major repair such as an engine replacement or transmission, schedule a follow-up visit. Getting the customer to return must be your marketing goal, particularly for a first time customer. It takes a few visits for people to get to know your company and feel comfortable with your people. That’s why it’s so important to create marketing strategies that increases the chances for a return visit. It takes time and effort to build a relationship, but once established, you have a customer for life. Sam Walton, the founder of Walmart built a world–wide empire, and although many of Walmart’s business practices are controversial, Sam Walton did understand the consumer. His quote says it all: “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else”. View full article

Got your attention? Great! Now let me tell you what I really think. Advertising DOES work. Did the title of this article grab your attention? You bet it did. I purposely phrased the title in that way in order to get your attention. That’s advertising. There was a time when I only relied on word of mouth, the yellow pages and an occasional ad in the local paper. I would throw together an ad myself and when the results were poor, I would convince myself it was because advertising did not work –when this simply was not true. In today’s world of business, if you don’t have an effective advertising and marketing program, you are going to find it nearly impossible to compete in the future. The fact is, as business owners we need to be constantly thinking of ways to grow our companies, and advertising and marketing must be part of our business plan. The problem is that we are often unsure about the effectiveness of our advertising and feel that a lot of our advertising dollars are wasted. John Wanamaker, considered the father of both the modern department store and modern advertising was quoted as saying: “I know that half of my advertising dollars are wasted … I just don’t know which half.” Although there is some truth to this, it should not deter you away from advertising and marketing. There are things you can do to minimize the losses and increase the gains with an effective advertising plan. The rewards of an effective plan far outweigh the losses incurred when one of your ads or a promotion is not working. Four years ago when I was planning to build a new facility and expand my shop, I knew that in order to succeed I needed to gain market share in my area quickly, I could not rely on word of mouth alone. In order to grow at a faster pace, I needed to put together a comprehensive advertising/marketing program. With the help from a business consultant we set out to find a few critical factors; determine who my profile customer is, what products and services I want to bring to the consumer, and where to find more of my profile customer. I want to share with you some of what I learned from my experience and what forms of advertising are working for us. •There are some that say advertising does not work; that’s a myth. The right advertising works and you need to find out what works for you. You need to conduct a demographics study of your current customer base and the consumer base in you potential market area. Establish what your business is all about and what you bring to the market that sets you apart from your competition. Create a profile from your existing customer base to determine your ideal customer. Create an advertising program to attract more customers who fit your ideal profile. Find out where these people are in your market area and target these people. For example, if you are a high-end European service facility, catering to people who own Mercedes, BMW, Jaguar, Land Rover and Audi, then your advertising must reach out to these people. Your advertising does not belong in a discount publication. Remember; don’t try to be everything to everyone. •Don’t be afraid to try different forms of advertising; fear, sometimes keeps us back from achieving our potential. If something does not work, stop doing it. Try something else. That’s not failure; you have just gained knowledge that you did not have before. Don’t try everything at once either, build upon your program. Also, you need a blend of call-to-action and branding. You don’t always need to offer a coupon or discount. With our radio ads, we give seasonal auto tips during peak drive times. Sometimes it’s’ better to brand your company by getting your name out, then offering a discounted services. •Is word of mouth the best form of advertising? Yes and no. Word of mouth is great but it can be too slow. Several years back, I considered word of mouth to be my best form of advertising, while the truth was; I really did not have a well thought-out plan. •Many people say you can’t measure advertising. I don’t totally agree with that statement either. Every customer, new and existing, needs to be asked how they found you. You need to track and monitor this. I keep a spreadsheet of every contact I make; I want to know exactly how someone found us. This way I will know what works and what does not work. •All your advertising must be consistent in the message, colors, and logos. When someone sees your company, whether it’s on your website, TV, promotional flyer or print ad, it must be easily recognizable. Branding is everything. Don’t send mixed messages. That does not mean you can’t have different themes. Geico Insurance uses multiples themes. We all know the gecko and caveman commercials and easily associate these ads with Geico. I recommend recruiting the help from a professional marketing company to help you create an effective program. •The key to remember about advertising is that once you create a program along with a budget, you need to commit to that plan for the long haul. Your advertising must be consistent and continual. Inconsistent advertising does not work and actually ends up wasting valuable dollars. •People will buy your product or service when they are ready to buy, not necessarily when you are ready to sell. Just because a direct marketing promotion did not yield the results you were looking for, does not mean it failed. Keeping your company in the mind of the consumer through consistent advertising is powerful and will ultimately have positive results. Think of it this way; Dunkin Donuts does not expect you to jump off your couch every time it airs a TV commercial, does it? No. The purpose of the commercial is to keep embedding the Dunkin Donuts brand into your mind, which in turn they know increases their odds you will choose Dunkin Donuts the next time you are traveling down the road looking for coffee and donuts. After two years since starting our new marketing program, we now concentrate on TV, Radio, Internet marketing, email marketing and social media. This is what is working for us now. It may change in the future. That’s business. You need to do your homework and find out what will work for you. You will need to continually monitor and measure the effectiveness and make changes as you see fit, it’s an on-going process. Let me leave you with these thoughts; if you are not willing to advertise to your customer, I promise you, someone else will. Don’t get discouraged either; it takes time to establish your company in the market place. It’s like planting seeds; it takes time to see something growing from the earth. So, let me rephrase the title of this article: Advertising Does Not Work, the Right Advertising Works! View full article

Let’s go back to 1976, a much simpler time. I was working at a gas station in the Bronx called Randy’s Chevron. It was a 2-bay garage with two gas pumps and two mechanics. I was 21 years old, single, and loved what I was doing. The boss, Randy, was a World War II veteran, fought in many campaigns throughout Europe, grew up during the great depression, and outwardly expressed his dislike toward foreign cars; especially German and Japanese vehicles. I got along well with Randy. He was a tough guy, a throw-back from an era that believed in good old-fashion values, who loved this country and all that it stood for. Like My father, who also served in Europe during WWII, he attained the rank of Army Sergeant. Come to think of it, he was very much like my father; I guess that’s why we got along so well. I worked for Randy for three years; it was a great experience for me with fond memories that will last forever. One thing about Randy, he did not like change. I remember one day a Volkswagen rolled up the driveway and parked in front of the bays. I could see the displeasure on his face. He ran out to the car and firmly said, “I hope you don’t expect me to work on this thing”? Then he kept silent and stared at the driver of the car. The driver of the VW said something but I couldn’t hear what was said. Randy just continued to stare and the owner finally put the car in gear and drove away. As Randy stepped back into the shop, he turned to me and said, “We are not a foreign car repair shop… never will be!” Randy would talk about electronic ignition and how it was going to destroy the tune-up market. He also feared disc brakes, claiming that this brake system would make brakes last longer and that too will hurt business. He hated the fact that cars were mandated to have catalytic converters and other emission control devices. Randy said this will only complicate matters, make cars run worse, and accomplish nothing. Randy was a nice person and a great boss. But, like so many others, he could not accept the change that was occurring in the automotive industry. As we fast forward to the present, it becomes apparent that our entire way of life is about change and the automotive world we once knew, no longer exists. Forty years ago, in cities across the nation, street corners were dotted with gas stations that not only sold gas but were the go-to guys for repairs and service. There were no quick lubes and new car dealers were content with their healthy car sales. We all know the demise of the corner gas station, the emergence of quick lubes, and other national accounts that make up the auto service industry. New car dealerships now understand that in order to sell cars they need to focus on the customer cycle experience. If they sell a car and somehow retain that customer in the service department, they will increase their chances to sell that customer another car in the future. Because of this, many new car dealerships are very aggressive in their marketing approach to the consumer, attempting to do what independent shops have done since the first Model T rolled off the assembly line…taking care of the customer. Yes, the world will continue to change and it will become increasingly more difficult to compete in this market. However, if you are total car care facility today, you have a distinct advantage over your competitors; you sell tires and service, and attract the majority of the motoring public to your bays. You are the preferred choice of the motoring public, and no matter how bad things may appear in some parts of the country, you are sitting on a gold mine. Whatever the car makers throw at you, you will be ready. Let’s face it; whether it’s a hybrid, electric, or powered by hydrogen, they will all need to be serviced and repaired. Thirty years ago, I did not start out selling tires; I was strictly an independent “repair” shop. Five years ago when I began planning to expand and open up a new facility, I studied different business models and found that the model which offered the greatest opportunity for growth, was in tires and service. I watched through the years as many capable repair shops struggled and eventually failed. Not because they were technically inept, but because they did not see the change that was occurring around them. Their focus on heavy car repairs and complicated diagnostic work actually put them at a disadvantage. It’s not that they were wrong to perform this type of work; it’s still part of what we do today. It’s just that in order to thrive today, you need to accept that you need to be profitable, and that means shifting a lot of your focus to preventive maintenance, tires, brake work, and becoming more accommodating to your customer. My new facility model offers a mix of tires, wheel alignments, preventive maintenance, steering, suspension, brake work, and features express lanes for while-you-wait service. This new facility also serves as a feeder for my old shop where all the diagnostic work, engine work, transmissions, clutches, and other traditional repairs will be performed. This new model creates opportunity for the best of all worlds. Modern automotive service centers can no longer rely on those traditional repairs that once dominated the business. Cars are more reliable and many of those money-making services no longer exist. But one thing they can’t take away? They all need to roll down the road and that means eventually they will all need tires and service. We will obviously need to stay ahead of the curve by continually training our people and invest in new equipment. But, the work will be there, in some form or another. I often think back to those days working in that 2-bay gas station in the Bronx. It truly was from a much simpler time. There’s nothing wrong with reminiscing about the good old days, but time never stands still for anyone, so don’t get stuck there, you may not find your way back. View full article

As AutoShopOwner.com begins its third year, we would like to take time to thank the contributions from all its members. You have made this website the “go-to” website and forum, for the automotive service business. AutoShopOwner.com was created as an automotive management network of shop owners and affiliates to share and exchange ideas and opinions. It is our belief that together we can make a positive difference in the auto service business. The forum topics have been great and the dialogue priceless. It is truly amazing how much knowledge there is among us. AutoShopOwner.com has proven to be a viable medium where shop owners around the world can come to ask questions, gripe about issues, and help their fellow colleagues. New enhancements already made to AutoShopOwner.com for 2010: • We’ve revamped the site for easier use and increased the services offered within the community. • New Reputation system – Posts can now be rated, earning the author reputation points which can be highlighted with titles and badges. • New Personal Conversations – Users can now create private topics, accessible only to themselves and anyone else they choose to invite. (replaces the default message system) • New Mini Profile Popup – Wherever you see on your board (which is just about everywhere a member name appears), it can be clicked for a handy mini-profile popup. Send a PM, check reputation or find posts – without needing to leave the current page. • New Social Network Icons – Social network icons added to the top of posts, to easily add content to your favorite network. • New Live Chat – Integrated new live chat system • Blog section Updated – various new blogging features • Photo Gallery Section Updated – various new photo features • Downloads section Updated – Layout and operation updated • New “Who visited today” section – Added a section that shows who visited the forum today. Located on the main page of the forum, at the bottom of the page • New Text Editor added • New – Log in with your Facebook or OpenId account! • Synchronize FaceBook Account- Added the ability to sync your FB account to AutoShopOwner.com. • New Status Updates – Add “what’s on your mind” to show on the forum home page and in your profile • New Forum main page layout – new block additions, recent topics, etc. Right column can be closed or opened. • Event Calendar Updated – new features added. Add any events easier. • New Main Menu – Added new drop down main menu. Planned enhancements to AutoShopOwner.com for 2010: • Increase checklists and downloads for Premium Members • Create more extensive business tips and management information • New Articles section • Member Locator • Twitter Integration • More to come…. Another goal this year is to increase membership in order to boost the AutoShopOwner.com experience. You can help. Spread the word to fellow shop owners. Forward the monthly newsletter to other shops, industry associations, and colleagues. If you belong to an automotive trade group, talk about the benefits of joining AutoShopOwner.com. As you can see, AutoShopOwner.com is dedicated to you, its members. However, the strength of AutoShopOwner.com lies in its members and the interaction within the forums. The more people that use the services, the stronger the site will become. This will benefit everyone. Help us spread the word about AutoShopOwner.com. We also welcome your comments and suggestions. Remember, together we can make a difference. View full article

If you’re reading this article that means that you are still in business and have weathered the economic storms of 2009. While we are not out of the woods yet, things are definitely looking better than a year ago. 2010 will continue to bring us challenges and obstacles, but we all know that whatever doesn’t kill you will only make you stronger. Independent shop owners across this nation have proven their resolve and refused to participate in the recent recession. When thousands of dealers shut their doors and unemployment tipped 10%, automotive shops found a way to survive. I am not saying it was easy. I have heard from many frustrated shop owners this past year that questioned whether they should go on. Some did give up, but most did not. The fight goes on and 2010 will once again test your resilience. Many of your customers are still out of work and many small local businesses and local contractors are suffering. Both business and personal bankruptcy is still rising. These issues will no doubt continue to impact your day to day operations. We have already seen taxes go up in many areas and who knows what the health care calamity will bring us. The government will continue to spend like a drunken sailor on shore leave, which will have deep, long lasting affects on our economy for generations. The housing market had a few up ticks in 2009, but is still a long way from a recovery. Too many years of unrealistic growth combined with too much subprime mortgage lending nearly killed a once-touted safe haven for your money…real estate. Also, let’s not forget the war on terror, the global warming issue, the green movement, the volatile stock market or emerging Chinese dominance. Ok… I got the bad news out of the way. Now, here’s the good news. When the dust settles, who do you think will be there as a shining star? You will. Because the success and survival of your business rests totally on the person you look at each day in the mirror….You! You have no bail out. You rely on your own resources to make things work. You are tested each day and somehow get things done. That makes you strong. We are all sitting on a gold mine of opportunity. It may be hard to see, but it’s real. However, it’s an opportunity, not a gift. You will need to prepare for it and act swiftly. Those of us that plan now will reap the benefits later. There has never been a better time in history for the automotive service and repair industry. The motoring public is confused. They have lost faith in the American car companies. The government bail out to GM and Chrysler has made them look weak in the eyes of the consumer. Ford stands alone, not accepting a bail out. This may prove to be their silver lining. New car sales in 2009 were dismal for most car companies, including Toyota and Honda. Empty new car dealerships sent consumers scrambling for alternatives. We need to take advantage of what is happening in the economy and use it to our benefit. We need to show strength. Our day-to-day attitude must be positive toward customers and with our employees. Take a look at your operation, everything from the exterior facility appearance, waiting room, bathrooms, shop appearance, uniforms and everything else about your business. Make sure that your shop looks top-notch. I know it’s hard, but spend the money and make improvements to your operation. This will help boost your image and help increase confidence from your customers and the potential customers in you market area. Review your advertising and marketing strategy. Be consistent with your advertising. While others are pulling back on advertising, you need to keep forging ahead and stay in the consumer’s eye. Provide the very best in customer service. This is an area where you must not fail in. People will judge you more on how they are treated at the front counter than what brand of parts you install or what type of equipment you use. Trust me on this one. Customer service will make or break your business. Listen to your customer, they will tell you in which direction you will need to go. Your success in the coming years will be directly related to the level of customer service you provide. Make sure you have the right people at the front counter and answering the phone. Lastly, work on your leadership skills. As the business owner, you are the company’s leader. This puts you in a tough position where hard choices and decisions will have to be made. Make those decisions with the best of your abilities and don’t second guess yourself. You can’t be right all the time and being too fearful of making a mistake can cause indecisiveness, which will hold you back from achieving your goals. The good thing about making a mistake is the knowledge you gain from it. Be supportive of the people who work for you. Encourage them to be the best they can be. Promote the good things they do, rather than focusing only on what goes wrong. People want to be appreciated and recognized for the work they do. Remember, happy employees boost morale, which increases productivity and creates happy customers. Being in business is not easy, if it were, everyone would be in it. Being an auto shop owner in today’s economy is extremely difficult, but this career was our choice. The reward for being in business is making your enterprise your personal success story. Don’t worry about the size of someone else’s business. It’s not about building an empire like Disney World or McDonalds; it’s more about you and building your empire. That is the true measure of an entrepreneur. View full article

This great nation was founded on strong beliefs and principles that are still held sacred today. The citizens of the United Sates treasure the opportunities that have been instrumental in making this country the world power that it is. One of the reasons why Democracy works is because of free enterprise. People in this country can aspire and fulfill their dreams through the spirit of entrepreneurship. Among many rights, the people in the country have the right to choose where they want to live, where they want to work, where they shop and whom they buy from. When these rights are compromised, Democracy is in jeopardy. We have now come to a crossroad. The Right to Repair Act is more than a disagreement between the car manufacturers and the aftermarket auto repair industry. It is about the basic right of the people to choose where they want their car serviced. It is about preserving free enterprise. We cannot let an industry, such as the car manufacturers, hold hostage the citizens of this country. We cannot let any industry create products and systems that destroy the basic principles of free enterprise. There must be a level playing field. Competition brings out greatness. Without it, brings demise. Letting car makers hold back certain information and build complicated systems that force people back to the new-car dealerships will destroy the right to choose. It takes away the rights of the people and the spirit of business. And let’s not make a mistake in believing that if we let the new car manufactures enter into an honor system to provide information, that all will be ok. That’s like letting the opposing team set the rules for the game. It will not work. I am not for big government, but this is not about big government. This is about preserving an industry that the people in this country have chosen to patronize for more than 100 years: the automotive aftermarket industry. The automotive aftermarket greatly contributes to the economy of this country. The aftermarket independent repair facilities are the preferred choice of the motoring public. The aftermarket auto industry keeps this country rolling. Independent shops have never interfered with the process of manufacturing or engineering new cars. Independent shops across the country continually learn new technology, invest in tools and purchase new equipment: all for the purpose to serve the motoring public. All the aftermarket asks is the right to compete fairly. I urge everyone to support the Right to Repair Act. Let the people of this great land decide where they want to take their cars for service and repair, not the car manufacturers. Below is a link for more information on the Right to Repair Act and information on how to contact your public officials: http://www.aftermarket.org/Government/RighttoRepair.aspx View full article

I received a distressing email the other day from a fellow shop owner. The shop owner stated in his email that he was scheduled for surgery the next day and asked if I knew of a tech that wanted temporary work. He went on to say that his other tech (a full time Police Officer), works at his shop between shifts, and with him out of commission due to surgery, he will need help in the shop. This shop owner fills in when the tech is working at his other job. This shop owner has been in business for more than 25 years and well into his fifties. What’s wrong with this picture? To be honest I didn’t know how to reply to the email. After years of being in business, this shop owner has not grown his business to a position that allows him to take time off, without the worry that the shop can’t run on its own. I’m not talking about leaving early on Friday afternoon. In this case this particular shop owner is scheduled for surgery the next day and while his main concern should be on his personal health and well being, he has the added stress of finding a tech to take his place while he’s out recuperating. And to make matters worse, his other tech has a full time position and career in a different trade. Is this the way a business should be run? It may sound like I’m passing judgment on this fellow shop owner, but please understand, I know exactly what this person is going through. Back in 1988, I broke my foot playing basketball with a group of friends. Back then my shop centered on me. My job positions included everything from answering the phones, lead tech, service advisor, shop foreman, bookkeeper and janitor. So, when I broke my foot I had no choice but to suck it up and go to work. I was supposed to be on crutches for at least 4 weeks but rarely used them. I didn’t take any time off. My doctor told me to rest a least a week and use the crutches, but I told him I had a business to run. My foot never healed properly and to this day it gives me pain. Another time, I was cutting a piece of steel with a torch to fabricate a section of frame, when the jig broke and a piece of hot metal shot into my hand. It was a serious injury, which required minor surgery and stitches. Again the doctor told me to rest for a few days, but you know the rest of that story. I’m not saying I was wrong with my decisions, at that time I did not know any other way. The difference is that I learned through the years that if I were the center of my business universe, I would never grow. If all the daily tasks of running a business were solely my responsibility, I would eventually fail. For the first 11 years of my business career, I never took time off, worked 6 to 7 days a week, worked holidays and put in a minimum of 12 hours a day. By 1991 I was physically and emotionally burned out at the ripe old age of 36. It took me years to turn things around and run my company like a true business. Today I have every position filled by trained, qualified people. My business grew dramatically when I let go of total control and put the right people in the right positions. I learned that a well-run business is one that runs without me! I urge you to ask yourself these questions: Could your business survive if you had to take time off for an extended period of time due to illness or another crisis? Would you still draw your usual income if you could not work for an extended period of time? Do you have people in place that could run your business the way you want it to, without you? And, do you have systems and policies in place to insure your business runs smoothly until you return? If you answered no to any or all of theses questions, your business needs help. The only possible exception to this would be shop owners that work alone or have one other employee. But, regardless of your size there still needs to be a system that allows the owner to take time off, for either health reasons or just for a well-deserved vacation. We will be faced with many challenges in the coming years. The better you become at running your business, the better chance you will have at thriving, and not merely surviving. Look at your business and do some sole searching. Not just for you, but for your family too. You made the choice to go into business, that doesn’t mean you need to be a slave to it. Have the strength to hire people, put yourself in a position that allows you to grow the business, and take time off. It won’t happen overnight, but it will work. To be successful you need to let go and not let the business control you. As for my fellow shop owner, I replied back that I would keep my eye out for anyone looking for temporary work, and that if I could help in anyway, to please let me know. When he recovers, I plan on talking to him. By the way, I changed the story details, as not to embarrass or insult him. View full article

This month, AutoShopOwner.com celebrates its first year anniversary as a web-based automotive management network and forum, dedicated to the success of automotive shop owners around the world, through shop owner networking and the exchange of ideas. I want to take this time to thank all members, welcome new members and wish everyone great success in the coming year. We all know that 2008 has brought many economic challenges to not only our industry, but also to industries around the globe. It appears that the economy will not begin to recover for a while. It seems that every sector of the economy is affected. We haven’t seen a downturn like this, since the great depression. Whether you are for or against the “bail out” of American corporations, the fact remains that, what ever happens in the short term will greatly affect us all, well into the future. Many businesses, large and small, will fail in 2009 and more people will loose their jobs as companies trim the fat and become leaner; something that should have been done years ago. More domestic new car dealerships will close their doors. For many of them, they have no choice. Their business model just doesn’t make sense anymore. Is there only bad news? Not really. We happen to be in an industry that prospers in any economic climate: good and bad. 2008 was a terrible year for new car sales and ALL manufacturers, resulting in the greatest opportunity for service and repair work we’ve seen in decades. People may have held back spending money in “08”, but eventually they will need to get their cars in to you for service. And you need to be ready. Now is the time to be aggressive in your marketing and advertising. Create ways to offer cost savings services to your customers. Give them options and be flexible. You don’t have to hit home runs to win the game. I understand money is tight, but the shops that stay strong and invest today will reap the benefits when the economy turns around. History as proven that the companies that maintain a positive outlook, continue to advertise and adjust to the changing times, are stronger after the economy picks up. Maintain a constant watch on all the businesses in your area that are suffering, especially other automotive chains and new car dealerships. As these companies fail, this will create opportunity for you. Watch your overhead, but continue to invest in training, tools and equipment. You can’t afford to be left behind technologically these days. Playing catch-up may not be that easy. And of course, be accommodating to your customer and provide outstanding world-class service, anything else won’t cut it. In tough times, consumers can become fussy and demanding and won’t settle for sub standard service. From the dialogues I have had on AutoShopOwner.com, throughout this past year, I am impressed by the resolve and strength of the typical shop owner and see a positive future for our industry. As a group, we are strong. Failure is not an option for us. We find ways everyday to solve the most complicated mechanical problems and that determination will be the reason why we will not just survive in the coming years, but thrive. The best of luck to all shop owners in ‘09’ and look forward to the forum discussions. View full article

Prior to the great depression of the 1930’s, Ford outsold Chevrolet. Reacting to the downturn in the economy of that era, Ford cutback back on advertising while Chevrolet continued with an aggressive marketing plan. Ford’s sales suffered and the two companies actually reversed roles in the automotive market place. It seems everyone is looking to cut costs theses days, and for good reasons. With the economy in a recession, we need to make tough decisions. Cutting advertising during these times is simply the wrong thing to do and a great way to kill your business. Shop owners need to look at their expenese made during the last few years and find ways to cut the “fat” not the “meat”. We need to understand the difference between an expense and an investment. Investments will eventually add to your business, unnecessary expenses will hurt business. Want another way to kill your business? Offer deep price discounts. We are all concerned about our customer’s wallets and hear the complaints about prices everyday. If you think that deep discounting is a way to sell work and bring in customers, think again. In past recessions, it hasn’t been the companies providing the cheapest goods and services that have done well. Consumers become very picky about how they spend their money during tough economic times. Concentrate on value, not price. If consumers only cared about price, the Yugo would have outsold Toyota or Honda. Yugo was about price, not value. The end result: You don’t see a lot of Yugos around, do you? Being competitive in your market is one thing, giving away much-needed profits can be disastrous. It’s better to offer a Winter Maintenance Package (which includes an oil change) for $49.95, then trying to sell $14.95 oil changes. Selling a Winter Maintenance Package has value and will give your techs the opportunity to look for other profitable service work. Work on increasing car counts, this will increase your opportunity. Don’t try to hit a home run on every car. The little things add up at the end of the day. Adding a few cabin filters, air filters, wipers and batteries will add much-needed dollars to your bottom line. Here’s another way to kill your business: Worrying about all the bad things that might happen. When your thoughts are focused on all the things that can go wrong, a lot of the things you worry about actually occur. It’s like the kid in little league that walks up the plate and says to himself over and over again; “I’m going to strike out. I hope I don’t strike out. I always strike out”. And guess what happens…he strikes out! Be positive. You are the leader of your company. You need to be strong and show confidence. This is equally important when talking with customers. Don’t complain about the economy, this makes things worse. People want to be associated with winners. And here’s the last way to really kill a business? Ignore your two most important assets: your employees and your customers. Your loyal customers and your faithful staff were with you building your business during the good times. When things seem bleak, it’s easy to forget the good times. But good times will come again. Things go in cycles. Don’t take my word for it, just look at history and listen to people like Warren Buffet. So, take care of the people that made your business a success: your employees and your customers. Treat them with respect, show them you care about their well-being and they will be there when things turn around. View full article

After two days of winter storms I was eager to get some work produced in the shop. It was Wednesday, the third week in February, two years ago. The winter already had its share of storms, which was killing business. Winter storms might be good for future work, but at that moment I was looking ahead to Friday…Payday. And with little money generated so far this week, things became a economy industry people Recession repairlittle worrisome. Among a few small jobs we had scheduled this Wednesday, we had a Subaru booked for a 60k service, a nice profitable job. I assigned a tech to the job, that returned to me about 20 minutes later, with disturbing news. The cylinder heads were leaking coolant. I now had to tell the customer that the pre-sold 60k service had a more pressing issue. I called the customer at her office and explained the problem. I also explained that it would be in her best interest to replace the timing belt, drive belts, and water pump, if we were to do the cylinder head work. After an endless series of “Oh my God, oh my God, oh my God”, she asked how much would it be to do all the work, including the 60k service. Were my ears hearing correctly? If I could sell this one job, it would bring in much needed dollars to the shop. I gave her the entire price and after a long pause she said, “Do it all”. After printing an updated work order, I ran over to the tech and gave him the good news. As I was walking away back to the service counter, a depressed thought came to me. Is this Subaru covered under the extended warranty for cylinder head failures? If so, shouldn’t the customer be informed? I asked the shop foreman to find out. After a quick call to the local dealer, the foreman confirmed it: this customer was indeed entitled to have the cylinder head work done at the dealer, at no charge. My thoughts immediately again went to Friday…Payday! What do I do? Tell the customer? Don’t tell the customer? This is when that devil shows up on your shoulder just like in those old Bugs Bunny cartoons and starts telling you things like: “Hey, don’t be stupid, you need the money for payroll and besides, the customer will never know”. But the angel on the other shoulder tells you, “Joe, do what’s right”. I have to be honest; at the time I was tempted NOT to tell the customer and began to rationalize in my mind that this is a matter of survival. But, the angel won out and I decided to call the customer and give her the news. The customer was ecstatic. She could not thank me enough and said my honesty was refreshing. She called the local dealer, which sent over a flatbed. We all sadly watched as the flatbed drove away, fading into the winter sunset. I don’t know how we did it, but we somehow got through payroll that Friday. We’ve all heard the expression, “Give and you shall receive”. What happened in the next few months was incredible. What I didn’t know at the time is that after I hung up the phone with the customer, she began telling everyone at her office about what I had done. The news spread like wildfire and I picked up a few of her coworkers as customers. The best news was that the dealer wanted to sell her the 60k service along with the cylinder head work, and she told the dealer no. She came back to me, to finish the 60k service. In retrospect, being honest was the right call. We’ve all had that devil on our shoulders from time to time, but my advice is not to give in. Always do what is in the best interest for the customer, even though the short-term loss for you appears unbearable. View full article

They say experience is the best teacher. If this is so, there’s probably enough information among automotive shop owners to fill a library the size of the Empire Sate Building. Each day, shop owners conduct business in the trenches of automotive service and repair. They make tough, real-world decisions. If someone has a question about running an automotive business, there’s probably a shop owner out there who knows something on that topic. It’s time we profit from this knowledge. If you have ever been involved with a networking association, a twenty group or a local business council you know the power of brainstorming among your peers. But what if we take this concept and expand it over the Internet to thousands of shop owners? What you would have is a network of shop owners around the world who can share and exchange ideas and best business practices. This is what AutoShopOwner.com is all about. Did you ever have a question about labor rate, or technician’s pay? Or what about advertising ideas or issues on customer service? How valuable would it be to you to be able to find out what other shops are doing around the country? Why not tap into the greatest resource available today…. your fellow shop owners. AutoShopOwner.com has now made all this possible through its online forums. I have no doubt that once you have experienced the power of online forums, the automotive business world will become more exciting and rejuvenate your company. Here’s a list of some of the online forum categories we urge you to participate in: • Paying Your Techs • Entrepreneurship, Owner’s Responsibility • Family, Recreation, Personal Growth, Building Wealth • Marketing and Advertising your Business • Growing your business • Reinvesting in Your Business • Sales, Job Costing • Leadership, people management, and building you team • Systems, Procedures and Polices • Management Software • Workflow, Facility Management, Shop Layout • Scheduling and Dispatching • Labor Rates, Labor Gross Profit, Cost of Labor • Hiring and Firing • Parts Pricing • Inventory Control • Customer Write-Up, Vehicle Delivery, and Customer Follow up • The Irate Customer • Quality Control • Team Concept, Productivity And More! View full article

Just a reminder on this historical day. The first battle engagements of the Revolutionary War between the 13 American colonies and the British army began on April 19th, 1775 at Concord, Massachusetts. In Massachusetts they call this date, Patriot’s Days. I felt this was worth mentioning.

Is that real? It's pretty amazing...

True words of wisdom, Gonzo. The arrogance of some people and the lack of respect is something that I try to change every day of my life. We do need to change our mindset. I have been guilty too, of that quick, instant diagnosis. Just because we have seen a problem a thousand times before, does not mean we should give it away. Let me tell you a true story. About a year ago I hurt my right knee, the pain was pretty severe and I had a tough time walking, especially going up and down stairs. After two weeks, I finally went to an orthopedic specialist. I was seated on that examinations bed (you know, the one with the white butcher paper down the middle). The doctor walked in, I explained where it hurt, he grabbed my leg twisted it a few times and said, “I know exactly what’s wrong, I don’t need an x-ray or MRI to tell me you have a torn meniscus in your knee.” NOW, in 35 seconds he knew what was wrong with my knee. He did, sort of, a parking lot diagnosis. How did he know what was wrong? Because just like us, his years of experience. But, here’s the difference…..the charge for the visit: $250.00. So, I want to expand on Gonzo’s story and make a plea to all shop owners to always convey a professional attitude. And one more thing…WE ARE pros, just like a doctor, lawyer, accountant, dentist, whatever! You want more respect? Start with the way you look at yourself.

Want Happy Customers? Create Happy Employees This is no secret to any of us. The way to create happy customers is through happy employees. It sounds easy enough, but hard to do on a consistent basis. The emotional roller coaster we are all on day after day can make us forget the real purpose we are in business, and that’s to take care of our customers. We do that by taking care of our employees. No matter how tough things get, we all need to remember that the customer has no idea what we go through. Be patient with your employees and with your customers. As the shop owner, you set the tone of the shop. If you are in a bad mood, the rest of shop will follow. And that foul mood will be picked up by your customers. As the boss, your employees need to know that you are behind them all the way. I know it’s tough at times, but it’s something you must do. The better you control your emotions and lift the morale of the shop, the better production you will get. When morale is up, people feel good about themselves and enjoy their work; this will shine through to your customers in a positive way.

While working at a Ford dealership in the late 70’s, at the ripe old age of 24, I became extremely disillusioned by the auto repair business. I felt that both the customers and the mechanics were not treated with great respect and that was the cause why the public did not have a very good image of our industry. I was tired of hearing that mechanics rip people off. I made a vow that I would change the image of the auto repair business, by treating people with respect, both techs and customers. I wanted to build a facility with class and convey the image of professionalism. I wanted to raise the bar so that people will grow to respect our industry, a place where techs will want to work because they feel they are respected too. So in 1980 I opened my repair shop. I am still working on my WHY, but feel that I have made a difference. My WHY is also the reason I cofounded AutoShopOwner.com. I wanted to bring a higher level of professionalism to our industry. WHY I get up in the morning is to make a difference in this world, to be better today than I was yesterday….I happen to do that by owing a repair shop.

Maybe it’s hard for us to realize this, but when ask ourselves what business are we in, we typically say something like: auto repair or auto service or something similar. Right? Well if you think about, there are a million shops out there doing the same thing. In other words, WHY do people come to you? People can buy a Goodyear tire anywhere. People can buy brakes anyway. People can get an oil change anyway. Repairing cars is WHAT we do, not WHY we do it. Find out WHY you are in business, promote that to your consumer base and your staff and maybe you and your customers may look at your business a little different. People buy Apple computers because of the culture Apple built. Apple attracts a certain part of the consumer market who WANTS to buy Apple. Those people don’t care about the price, nor do they compare Apple to a PC. Why? In their minds there is no comparison. Apple did a great job to market their product so different from the status quo, which makes people buy Apple because they believe in it. The consumer does not really know If Apple is really any better, nor do they know the technical aspects of an Apple computer. AND, Apple does not market this….they market the culture of the company. I hope I am not confusing the issue, but if we make price the motivator, we lose. If we tell people that we do brakes, alignments, oil changes, steering, timing belts, check engine lights…..so what? At that point the only thing people can judge you on is price. No matter what the consumer education is, most people don’t know the difference between a Hunter Road Force tire balance and tire balanced with a bubble balancer, nor do they truly care. THEY KNOW YOU, THEY TRUST YOU….THAT’S WHAT WE NEED TO SELL

Wow, what a discussion…please hear my take on this… People focus on price because we are a price-driven industry, and like it or not much of what we sell has been reduced to the status of a commodity. Every week at the supermarket we price milk, eggs, orange juice and Pepsi. When we need gas for our cars the first thing we do is look at the price, right?? Well, it’s the same with auto repair. I hate to tell you this, but it’s our own fault, not the public. How many of you ride a Harley Davidson? Would you ever consider another bike? Were you inconvenienced by the wait the last time you ordered your bike? Does Harley produce the cheapest motorcycles? No. It’s debatable that it produces the best machine, nor is a Harley dealership considered the “friendly service” in town. But the fact is no one cares about the price or service….as a matter of fact many will tattoo the Harley logo on their arm! Let me go step further, people who DO NOT ride a Harley, who have even never been on a motorcycle, will wear Harley Davidson clothes. The market of non-motorcycle riders who purchase Harley Davidson clothes and other apparrel represents 12% of Harley Davidson gross sales!!! Again, price never enters into the picture. I don’t know how to do it, but we must move away from price. This “price” thing bothers me as much as anyone. I know one thing that no one can refute: If we sell our company brand like a supermarket sells a dozen eggs or milk, we are in trouble. In other words, if we identify our business by the parts and services we sell, then the consumer will judge you by what you sell. Price becomes the only determining factor, because YOU told him that. I have been thinking for a while to position my shop in a different light. I am re-branding my culture and targeting consumers who want my type of culture, those people who don’t want the status quo. People who will allow me to take care of their car and family because they believe in me and my people, just like a family or friend. When and if I figure it out I will let you know…

Share Good News and Sales Records With Your Staff Any time your shop has an exceptionally busy week and one that is profitable, you need to share this with your techs and staff. It’s not important that you share the numbers if you don’t want to, just bring the staff together and simply saying thanks for a great job shows that they know you really appreciate their efforts. Everyone needs praise and recognition, sometimes more than money. When customers go out of their way to compliment you or your shop, your staff needs to know this too. Employees need to know that the work they do does not go unnoticed. Too often, the only time employees hear any news is when it’s bad. Improve moral, highlight the good that happens. Trust me when morale is up, sales will go up…that I can promise.