Joe Marconi

I saw a demo of the Snap On Verdic and it looked pretty nice. The only problem with a demo is that the sales person is going to show you all the nice features to make it look impressive. I think you did the right thing by using it for a week and you bring up some valid issues. my concern is that the scanner debate is getting more confusing: should we go we OE? Or are there acceptable aftermarket scan tools that we do the job? Let's hope more people will get a chance to use it and we can get more opinions on it.

We have many glass companies in our area that come right to our shop and perform the glass replacement. It works out pretty good. We work with the insurance company on behalf of the customer and get a percentage of the job. We handle the paper work only. The only problems we have is the insurance companies and what they are willing to pay. But, as far as the job is concerned, I am happy with the work these sub contractirs do. We used to make more money a few years back, but the insurance companies have gotten tougher to deal with. If the customer does not want to go thru insurance it's a lot easier and more profitable.

If the Bush years was the cause for all this mess, then why are things worse now? And, why has there not been steps to get us headed in the right direction? At this point, I don't think putting blame on the past is the answer. If a ball team lost in the past with players from the past, how does that affect the team and how it plays now? I understand residual effects, but that only explains the issue to a certain point. I think there are vast amounts of people today that do not like the direction of where this administration is headed. I am one of those people. Spending boat loads of money is not the answer, and I really don't care if a democratic does or or republic does it, it's just wrong. Plus, moving toward bigger government is not the answer either.

The truth rings loud and clear...let's hope it reaches the right people. Take back American on election Day!

Remember and Use the Customer’s Name Dale Carnegie once said, “Nothing is sweeter to someone than the sound of their name”. Part of providing the very best in customer service is to remember the customer’s name. You also need to use the customer's name during your conversation with them, whether booking an appointment on the phone, at customer write-up or explaining a particular repair. For first time customers, this is vital. Once the customer tells you their name, make sure you say their name a few times during the conversation. This will help ease any tensions the customer may have meeting you for the first time and will help make a connection between you and the customer.

Hey Gonzo, Sum Guy was working up here in New York last week....I found him! Here's what happened: We suggested a transmission service on a customer's car last month, which she agreed to, no problem. She came in last Friday for a State inspection and LOF, and she said that she was talking to somone and this guy, who knows a lot about cars, told her that no car ever needs a transmission service. I said, "what, who told you that?"...she said, (Yep you guessed it)..."Sum Guy did". True story. Thanks Gonzo, your stories actually are like therapy. Keep them coming!!

AutoShopOwner.com Adds Body Shop Collision Forum After attending the NACE/CARS Convention, I realized that there are a lot of great auto body shop owners out there with issues and challenges that are somewhat unique but surely something that we can all share and learn from. So, we added a separate forum dedicated to the auto body shop owner. ASO welcomes auto body shop owners to its family of shop owners and I know, without a doubt, that this will add great value to AutoShopOwner.com. So spread the word and tell your friends and colleagues in the auto body collision business that ASO wants to be their “go to” business forums web site to express their ideas and opinions, learn about business issues and participate in discussions that are relevant to today’s automotive industry.

We have seen an increase recently in new car sales. A lot of those cars that my customers were hanging onto are long past the useful life. The problem is that there are many new car dealers giving 2 years or more of free maintenance. How can we compete with this? Do we need to be concerned? Think of all the other challenges we have these days. I know many of you might say that we lose a certain amount of customers for the first few years anyway when a customer buys a new car. But, I think now it’s different. The dealerships need the service work now more than ever. Plus the dealer is beginning to understand the sales cycle. If they do a great job in the service department, it greatly increases their odds of selling those customers new cars in the future. I would like to hear from other shop owners on what they think about free maintenance and how we can compete with this.

Great story for the season, enjoyed reading it again!

Managing Your Most Important Asset, Your Employees A practical guide for shop owners By Joe Marconi We all know that without customers, your business would not survive. The strength of your customer base insures the success of your business and that success is directly related to the quality of people who work in your company. The only way to insure a great customer base is by building a great team of employees. When Yankee legend Yogi Berra was asked, “What makes a great manager of a baseball team?” Yogi replied, “A great ball club”. His answer may be simplistic in nature, but it speaks volumes. Satisfied customers can never be achieved without happy employees. Perhaps the most difficult part of management is motivating our employees to work toward the common goal of insuring the success of your company. Managers and owners deal with a variety of issues each and every day; from personality differences to generational differences. Workers from the baby boomer generation often have a tough time understanding younger workers which can cause resentment on the part of your older workforce. Speaking for myself, a baby boomer, I understood the unspoken hierarchy that the boss was king. And when the boss spoke, you listened. The boss commanded respect and ruled by the doctrine of, “My way or the highway”. I remember the owner at my first job at a gas station in the Bronx telling me the day I was hired: “You’ll work Monday through Saturday, half days on holidays, pump gas when needed and I’ll start you off at minimum wage”. The owner of that gas station never shut the bays doors unless it rained hard or snowed, never turned on the heat and we had no hot water. No one at that shop complained, we didn’t know any better, we were just happy to be working. Today, we live in a completely different world. I am not here to judge which way was better, only to say that the differences in the generations, gender and cultural must be recognized in order to maintain healthy morale in your workplace. For without a healthy and a cohesive workplace, your business will not thrive. The boss may still be king, but the king needs to earn the respect of the people that work in the company. Priorities and lifestyles have changed too. Past generations viewed their job and their family as their number one priority. Today, people still hold their careers as vital to their survival and future, but also desire a life beyond work. Time off, free time, family and friends are part of their makeup. Motivation becomes the issue. There was a time when just having a job and providing for your family was all the motivation you needed. That may not hold true anymore. People today are more social. They want a balance between work, family and play. So how do we motivate and get our employees to work as a team? How do we express to them the importance that the quality of their work is directly related to the success of the business? Well, the very first way is to tell them. That’s right; let your people know that you appreciate them. Spend time talking with the people in your company. Praise them when they do a good job. I remember when I worked at a Ford dealership in the late 70’s, the only time you would see the boss come out his office was to reprimand someone. You would cringe when you would see him walk toward you; you knew it wasn’t good. Don’t be that boss. Find things to talk about with your people. Become genuinely interested in what interests them. It could be sports, their last vacation, their family, the weather or anything other than work related. This shows your human side and lets people know that you care about them as a person, not just a worker. Get your employees involved in some of the decision making processes. If you are looking to upgrade your tire balancer, hold a meeting and discuss it with your staff. Have them help research the different equipment makers and collectively arrive at a decision. Making your employees feel important enough to help you with a key decision will go a long way in improving morale. That must be you goal. Remember, I can’t say it enough times: Happy employees make happy customers. I must be honest with everyone. I too once followed the doctrine of “My way or the highway”. However, though the years I have learned that you can be more effective when you get the people in your company working and producing because they want to, rather than because you ordered them to. When the people in your company feel the company respects their position and values the work they do, they begin to take ownership and pride in their work. People need to feel that they are making a contribution and that the company they work for recognizes this. Everyone likes to feel important and appreciated. Start today by walking around the shop and talking to your employees. Pat a few people on the back for a job well done. Let your employees see that you are more than just their boss. Trust me; you cannot grow your business by yourself. You need good people around you. Positive employee morale will result in higher productivity, better customer relations and more income to your bottom line. Employees are people first, workers second. Treat them as people and watch your business grow.

I agree with you. When I was at the CARS Convention, I had the chance to speak to New-Car Dealer owners. They are looking at different business models to increase income that is lost with the lack of new car sales. Many are adding more service bays, quick service lanes and collision shops to thier facilities. To think that the dealers are going to accept low car sales as status quo and not react would be a mistake on our part.

I pray this is a true prediction. I think a lot of this is potentially good news, however,we need a huge surplus of new cars to flood the market too. This is vital for the future. The new car dealers that have made thru these tough times will emerge stronger. The will use every tactic in the book to gain market share, OUR market share. Plus with national accounts like Pep Boys increasing their numbers, we need to take a very proactive approach with our business. These are good times for the aftermarket, I still believe that. But, we must not take it for granted. Your thoughts?

My advice is not to come out of the gate too high priced or too low priced. You need to have a balance between being competitive and being profitable. Eventually, after you have been in business for while and track your costs of doing business, you will know what your breakeven is and what you need above breakeven to make a return on investment. With that said, you also need to build a customer base. Sell value, not price. The price is the first thing the customer asks for and should be the last thing you tell them. In other words, don’t tell a customer, “You need a tire rotation”. Instead, tell the customer, “Mr. Customer, your front tires are starting to show wear on the outer edges and to maximize tire life and save you money in the long run, we need to rotate the tires today”. See the difference? I know you asked for help with a matrix, but I want to stress, it’s not all about price. Again, show value in your service. For lower cost items you can charge 60 to 80%, let say under $15.00. So if a part that cost you $3.00, you may be able to get $12.00 list. As the cost price gets higher, let say $50.00, you may want to charge $100.00 for that part. You overall profit should be enough to support your business. If for purchase an engine for $1,500.000, your percentage may only be 15-20%. Shops typically look for anywhere from 45-55% overall on parts. Hope this helps…

I love it!

Let's hope we make a difference this November. Because, the "change" we were promised might just be the change left in our pockets.