Joe Marconi

Review 2010, Make Plans for 2011 By mid week you should finish analyzing your business, going over the numbers and reports, review your 2010 goals and finalize your plans and goals for 2011. You need to share your goals and plans with your staff. And remember, a business plan must be written, it does not have to be lengthy, but it needs to be well-thought out and written down. Goals also need deadlines. Meet with your staff; encourage them to get involved in the process of improving the business. Goals and plans that are made as a group will have a much greater chance of success, than if you just tell people what you would like to see happen. Most important, remain positve and strong. Success can never be accomplished by having a negative mind set.

That says it all....

We ended up with a 7% increase, a little lower than I would like. Our car counts were very strong, higher than last year. That bothers me a bit. I always view car counts as opportunity. Half way thru the year, I wondered if our car counts were too high, but with economic conditions the way they are, and tough competition these days, the last thing I want to do is refuse a customer, especially a new customer. We have many new programs to put into place and big goals for this year. I know where I need to improve and I may have to make a few changes with regard to staffing. I think as an industry, we are on the brink of gaining momentum in a very positive direction. Those businesses that retreated during the "great recession" will have a tough time and will be chasing the market. Those that remained on course will do much better. I want to wish all my friends at ASO the very best and much good fortune. Within the forums I have come to respect each and every one of you. As a group, we are strong...and the strong will not just survive...but thrive!

Here’s a question that has caused me to rethink my position many times. When installing only 2 new tires, should you put them on the front or rear? I know the differences between FWD, AWD, 4WD and RWD, but according to an article I read in a trade magazine, it really does not make a difference what vehicle you are referring to, if you are only replacing 2 tires, they should always be installed on the rear. What are your thoughts?

Everyone has to make the final decision with respect to any business issue. As long as you arrive to the same conclusion, that is to be profitable and successful, you can take whatever path you deem is the correct one. Of course, that path needs to be ethical and honest. No one has the right to tell you or any other business person, what is right for your business. However, the way I see it, if you always do what is the best interest of the customer for the long term, you really can’t go wrong.

Xrac, you always make my day a little brighter....thanks!

Just a word of caution: I know shops around the country charge supply charges and many business seminars promote this, but depending on local and state laws (AND, I am not a lawyer), any charge on the invoice has to backed up by a formula used to determine the charge. In other words, in New York you can charge a supply charge, hazmat charge, etc, but you need to justify how you arrived at that number. A few shop owners I know got fined because they were charging an arbitrary percentage. I called the NY DMV, and according to them, you need to show how much in “supplies” you use per job, how much you pay for hazmat. You can recoup your money, but you need to justify any charges on the invoice. I am just bringing this up so shops can be carful and find out local laws.

WOW! Coming from the Bronx, I can really relate to that! Very funny!

Here is my Christmas/Holiday business tip for all shop owners: For this holiday, which only comes once a year, forget about business, forget about your struggles, put down your tools, put away your spreadsheets and spend time with family and friends. The business will be there on Monday, trust me. We are a tough group, but we all need a little R&R, especially during the holidays. Merry Christmas, Happy Holidays! My wishes and prayers go out to everyone for a healthy and prosperous New Year! Joe Marconi

Great idea, great point, Dave.

Our tire business is growing, we do about $5-$6,000 per week, which is about 10% of total sales. Margins on tires are low, as you know, but when you sell a customer tires, the rest of the work follows.

I want to wish everyone a very Merry Christmas, Happy Holidays and great New Year. Joe Marconi

If I don’t know something, I will admit it. Years ago it was an ego thing. For some reason, we men, feel as if we need to instinctively know everything mechanical. But now, if I don’t know…I ask. I guess some men never get past that.

I was at a TECH NET meeting the other night and a discussion started on charging extra for mounting and balance new tires with TPMS. I was a little surprised to find that most shops don’t charge extra because they don’t rebuild the sensor by replacing the seal, core, retainer nut and cap. Most just let the air out, dismount and mount tire, put the core back in and that’s it. They claim that is only causes more issues and they can't charge for it becuase it adds too much more to the tire sale. I stock most of the TPMS kits and remove the sensor, replace the seal, the core and the cap when we sell a set of tires. I feel it’s the right way to do the job. We explain to the customer beforehand about the TPMS and also inform them that sometimes the sensors may need to be replaced if the core or retaining cap is seized. What are you doing in your shop?

Now that's the truth!

The ASA is a good organization. The training they offer, especially the management training (AMI), is also worthwhile. I don’t agree with where they stand on the Right to Repair Act, but that’s my opinion. The CCPN (Car Care Professional Network) is a very good organization which is part of the AAIA, (Automotive Aftermarket Industry Association). AAIA is also the Car Care Council. The CCPN will keep you updated with important issues. Here’s the link: http://www.aftermarket.org/ You should try to get involved with any affiliation with a major part company. I am TECH-NET facility and we have a strong group in our area. We meet often and discuss business issues. You should see if there are any local organizations in your area and also the local chamber of commerce and any other business group. Don’t limit yourself to just automotive, you will be surprised how much you can learn and grow your business by being involved with many types of organizations.

Inventory Write-Offs Speak with your accountant soon, depending on your accounting methods, you may want to check inventory for parts that have been damaged or have become obsolete. The drop in market value of the inventory can provide your company with added deductions.

I hear many conflicting points of view about Honda/Acura transmission services. The Honda/Acura dealers in my area only do a drain and refill. They claim that servicing the transmission with a total fluid exchange machine (notice I did not say flush) that removes all the old fluid and refills with new is not advisable. Also, Honda claims that if you should only use Honda fluid. We have all BG machines and perform transmission services on just about all makes and models. We have been doing this for more than 10 years. We also use BG synthetic fluid. I believe that I am giving my customers a great value by performing preventive maintenance and we back it up with the BG Lifetime program if the vehicle has under 75,000 miles. I do know one things, Honda/Acura has a lot of transmission issues that cannot be blamed on “TOO MUCH” servicing. I would like others to tell me their thoughts on Honda transmissions and other fluid services.

I laughed so hard I had to close the door to my office...I am still laughing...too funny!

Now that's a toy I want for Christmas!

My Snap On rep left me the new Snap On Verus scan tool. It appears to be really nice and has a lot of nice features, does anyone have any knowledge of the Verus Scanner?

First of all, welcome and best of luck! You say you have automotive experience, does that include management training? Do you have a business plan? The best advice I can give you is to make sure you have a well-written thought out plan. Many shop owners, myself included, were great techs, but knew very little about the world of business. I struggled for years until I realize that the skills of mechanics meant very little in being successful at business. do you have specific questions at this point?

December 7, 1941: Let us take a moment today and remember those who died 69 years ago, when the Japanese attacked Pearl Harbor and propelled us into WWII.

Thanks, I needed a good laugh this morning!