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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. Social media is not a fad any more. It’s time to stop experimenting and start managing your social media strategy. Create a policy around social media, even if you’re only a one-person operation. Your social media policy should include your objectives for each site and any rules you have around posts, articles, pictures, etc. Creating this policy will eliminate employee confusion, problems and PR and potential digital reputation management nightmares.
  2. Choosing a management and repair system can be frustrating, and it must meet your needs. I have both Mittchell and Alldata. We also use Indentifx and IATN. Sometimes we access the OE sites if we need additional information. When I started in the mid 70's, all you needed was the old Motor Manual and you hand wrote all your invoices. Those days are long gone. I have not seen GarageOperator, sorry. Good luck on your quest...it's not easy these days.
  3. I'm going out with friends tonight and planning on tell this joke! This is a classic!
  4. The business model you speak of with the new Car-X stores is the same model I used for my expansion. My traditional 6 bay "repair shop" performs all the heavy repairs and diagnostic work. It's where the traditional "meat & potatoes work" is done. But, in today's fast past world and changing demographics; I saw an opportunity that I was not capitalizing on. My new building (a standalone 4-bay facility) is primarily for walk in trade, while you wait service, tires, alignment and other basic service work. The model works and our car counts and sales have greatly improved. The point is, and I know you realize this, is that we DO need to change with the times. We cannot conduct business the way we did 15 years ago. Smith Corona, the great typewriter company, viewed itself as a typewriter company and could not adapt to change. Instead of making the bridge into the computer age, it stuck by its traditional product and went belly up in the early 1990's.
  5. The other day a customer, with no appointment, came in asking for a State Inspection. The inspection was overdue and he was leaving to go on vacation. It was Friday afternoon and we were overbooked already. The service advisor said that although we are booked if you want to hang around we would do it before the end of the day. He said, ok. We got the inspection done by 4:30. After paying his bill, the advisor, expecting to hear a "thank you", was asked by the customer, " What took so long? It's only an Inspection". You can't change people....
  6. * 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.
  7. I think you hit the nail on the head when you said you hired the right person to manage the business and hired the "right people". Too many of us have this notion that our entire business world revloves around us and we (because we are the owners of the business) are solely responsible for its sucess. While this is true to some extent it is not the whole picture. When Yogi Berra was asked, "What makes a great coach", Yogi replied, "Great players". It's the people around you that make you great. Yes, you need to do your job, but to be really successful, there has to be a team effort.
  8. There’s nothing wrong with helping out in the shop from time to time, but it must not become a crutch for the survival of your company. Each new tech will have his hours tracked and an average hour potential will be established. That becomes their base. So, if a tech averages 35 hours of labor per week, he must beat that before he gets a bonus. For every hour he books above his base, he will get paid an additional hour pay. In other words, if a tech has a base of 35 and books 45 hours of labor, he will get paid an additional 10 hours of pay at his hourly rate. Now, the key is to raise the bar every month or so until the tech is at 100% base. So, if a tech works 40 hours, you expect 40 hours of labor booked before he reaches bonus. I hope this helps, let me know.
  9. Are you sure you are not located near Transylvania?
  10. Coming from an Italian background, that is truly funny. I laughed so hard, I really needed the laugh after a hot, tough day!
  11. Starting your own business is a huge step and to answer all your questions at once will be overwhelming. But, through ASO, I am sure that we can help you with key points and give you valuable and life-saving advice. After 30 years in business I can tell you that the most important skills to being successful will be your skills to manage and run your business. I was a great mechanic, but knew very little about business. After struggling for a decade, I realized that I needed to become not just a man in business, but a businessman. I took seminars and classes on business topics: accounting, advertising, marketing and other business related courses. I read all I can on business and leadership. To be successful in the auto business, you need to be proficient in technical aspects of the business and in the managerial aspects of the business. Too many shop owners have failed because they were great techs, but poor business people. Let’s keep this conversation going, there is a lot I can tell you. Do you have any specific questions?
  12. Gonzo, if it were not for the details, I would say this story was made up. You have to sumit this story again during Halloween. I have to admit, it's not just the story...it's how you tell it. I tip my hat to you. Keep these stories coming, they are really fun to read.
  13. Below is my matrix. BUT, I need to emphazize, these are my numbers and what works for me. Plus this is a guide for general parts. It really does not apply to those invnetory parts that are fast movers, such as wipers, air filter, cabin filters, headlights, oil filters, belts, batteries and other quick movers. For fast movers I price at a competetive price beacuase I want to make it a no-brainer upsell when I have the car in for regular service. Again, pricing takes a lot into account. I have said this before but it is worth repeating. There is a delicate balance between being competive and profitable…too high priced and you wont’t sell, too low priced and you’ll be out of business. Let me know how you make out. I also think Curt can help you, he uses the Napa system. From ------------- Profit Margin $0.01 to $3.00 --- --- 76.10% $3.01 to $9.00 --- --- 71.45% $9.01 to $15.00 --- --- 69.20% $15.01 to $20.00 --- --- 63.65% $20.01 to $30.00 --- --- 60.00% $30.01 to $100.00 --- --- 53.00% $100.00 to $275.00 --- --- 45.95% $275.00 to $400.00 --- --- 33.33% $400 on up --- --- 20.00%
  14. Sorry to hear the news…however, some of the best things in life come out of hard times. We tend to learn more from failure than success. Remember, it’s not how hard you get knocked down; it’s how quick you get back on your feet. I have a strong feelings you are going to be fine. Good luck and keep in touch. Stay part of ASO too, we all want to hear from you and keep tabs on you. Ok?
  15. Do you have access to IATN or Identifx?
  16. Great question…and the best answer is….it depends on the list price. Different companies may have different list prices and that’s why the list price should only be used as a guide, not the written word of God. Unfortunately when a customer calls around parts houses or the dealer, they are going to give that customer their list price, which may have an impact on what your price is. BUT, I would NOT change my policy based on the handful of people that may call and question. I know what I need to be profitable and at the same time, competitive. That is a delicate balance. Sometimes I rather sell at very attractive price for some items to move product during a State Inspection or LOF; items like, wipers, air filters, cabin filters, belts, etc. For these items I price them very attractive to increase added on sales. However, if I need to sell an engine mount or fuel injection relay, then those would be sold above list because these items are not price sensitive in the eyes of the customer. I hope I am clearing things up for you. This is a very complicated issue, as you can see. Please let me know if you have any additional questions or thoughts…
  17. Great article... I read the print version over the weekend.
  18. Please keep us updated. I'm sure we can all benifit.
  19. I have feared that this day would come. Look at how the Internet has changed the way people buy cars. People go shopping first on the web, get the best price and then beat up their local dealer. It's the same with hotels and plane tickets. Well, we are next. Just one more thing to have to worry about.
  20. I agree. Many of us can give you our matrix formula. I will do that if you like, just let me know. But it's more important to understand your break-even and overhead costs. Once you know these numbers you can start plugging in and tweaking your matrix. 50% GPM is what many people strive for, understanding that a matrix is a sliding scale. Lower cost part may list a 60-70%. While parts purchased at $400 may only be marked up at 20%. The concept is to get an overall balanced GP of 50%. (If that is the number you determine you need). Hope this help. Please keep the questions coming. I don't know the Tracs system, so I really can't help you with setting up the program.
  21. What a "sense" of humor. l listened to the video a few times!
  22. Free Maintenance is actually built into the price of car, plus the dealer and the car makers know that if you bring in more customers you accomplish a number of things: the chance to up sell, the chance to create a long time customer, the increased channce to sell another car in the future. The marketing works and I don't like it. Xrax is right, how do you compete with free????
  23. Many shop owners struggle when defining the purpose or the mission of their business. If we view our business as one that repairs and services cars, we are not seeing the bigger picture. Our business is defined by the value our customers see in us. Customers never buy products or services, they buy something much more important…they buy the peace of mind and the value you offer through the quality of your work and the level of service you provide. If you want to grow your business; listen to your customer, understand what the customer likes and more important, dislikes. Find out what your customers consider is most valuable about your products and service. Understand your customer and watch your company grow!
  24. More and more new car dealers are jumping on the band wagon and offering free maintenance or a low cost maintenance plan with new car sales and used car sales. When you factor in the longer warranties, an added maintenance plan may keep your customers going back to the dealer for a longer period of time. I do not like leaving things to chance. The new breed of dealers left behind after the economic dust settles will be an aggressive bunch, having the support of the car maker behind them. Should we worry? Should we find a way to compete? Should we wait and see what happens? Like to hear from you…
  25. I searched The US Department of Labor Web site and found the information you need. Here is the link...Good luck! U.S. Department of Labor - Wage and Hour Division (WHD) - Family and Medical Leave Act
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