Joe Marconi

Thanks for the info!

I agree, sometimes waiting and looking for the right person, is the best long-term choice.

From what I hear from my contacts who own tire stores, Tesla and other EVs wear tires out sooner. The low center of gravity, the weight of the vehicles, and the torque on acceleration all contribute to faster tire wear. NOW, will tire companies produce a different tire for EVs? Long-lasting? If that happens, the price must increase.

I have the books and articles from Gallup and fully understand the concept, but never actually did the strength finder test.

A friend of mine recently purchased a Tesla Model 3. I asked him, "Why?" He responded, "I don't have to buy gas, and the Tesla requires no maintenance or repairs." Oh really? If this is the public perspective of the electric vehicle, they are in for a shock. Yes, a fully electric car does not require gasoline, but they are far from problem-free or maintenance-free. EVs still have tires, steering systems, suspensions, a TON of electronics to repair and reprogram, a complex HVAC system, wheel bearings, differentials, brake systems, cabin filters, wiper blades, require wheel alignments, and on and on and on. Do we need to educate the public? Your opinion?

You bring up great points and a very concerning state of what is going on in this country. Good old-fashion work ethic is becoming a thing of the past?

Great advice! And I can safely bet that we have all been there!

A great podcast, worth listening to!

As we close out 2022, it's time to reflect on the past year. Review your accomplishments, the state of your business, your personal life, and things that could have gone better. The key thing to remember is that it's better to have a plan and goals instead of trying to fly blind. Establish your goals for 2023 and beyond. Include family time too, and time for yourself. It's not all about business. Having the right balance will actually make your business more successful. Speak with your employees too. Find out from them what went wrong, what went right, and what they would like to see in the coming year. While you can't always act on what your employees want, getting their perspective will not only help you create the plan moving forward, it will help to build morale, a win/win for all.

A friend of mine who owns a 6-bay shop in New York recently hired a tech. He was short a tech for months and was desperate. Without getting into details, the newly-hired tech lasted two weeks. Between his work ethic, bad attitude, and comebacks, it was a costly mistake. Have you hired the wrong person in the past? I know you need to fill an important decision, but is hiring anyone the right move, hoping that things will work out?

I don't think there is anyone that does not appreciate time off, especially during the holidays. However, balancing staff hours and time off does present a problem during the Christmas and New Years holidays. Some shops close down the entire shop from Christmas to New Year, other shops have extended days off, and some rotate staff. What has worked for you OR NOT worked for you?

Marconi: You Can (and Will) Survive an Economic Downturn Joe Marconi December 12, 2022 Speaking with shop owners around the country, it appears that the recent surge in business may be showing signs of vulnerability. For most automotive repair shops, the past few years have been a comfortable ride with sales and profits exceeding expectations. While no one can predict what will happen in the future, should we be concerned at this point? The COVID pandemic may have been a challenge for businesses in general. However, it proved to be a minor blip on the economic radar screen for most repair shops. Yes, there were some areas around the country where business slowed to a crawl and some repair shops had to close their doors permanently. But for the most part, the conditions caused by the pandemic created the perfect opportunity for most auto repair shops. Will this perfect opportunity lead to the perfect storm? Let’s take a closer look. Due to the pandemic, many repair shops received some monetary relief in the form of the Economic Injury Disaster Loan, the Payroll Protection Program, and more recently, the Employee Retention Tax Credit. The concern is what these programs are having on the economy. Another issue is this: Did these programs give us a false sense of accomplishment, boosting our cash reserve when most shops experienced an increase in business? If we are honest with each other, then we need to consider two things. How many of us were prepared for such an extraordinary event as COVID? And how much of the recent boon in our businesses resulted from anything we did? Most shops are reaping the rewards of ideal conditions caused by factors that were mainly out of our control Today, we face high inflation, rising interest rates, parts shortages, a technician shortage, rising wages and a possible recession. Is this all doom and gloom? No, of course not. As a former shop owner who spent 41 years working in the trenches, I have lived through many economic downturns and survived. From each economic downturn, the hardships endured led to valuable business and life lessons for those willing to view the tough times not as stumbling blocks but as stepping stones to a better future. The strategy now for shop owners is to build their companies to prepare and withstand the unknowns. You cannot assume things will stay the same. They never do. Complacency can be just as damaging as fear and negativity. Revisit your key performance indicators to ensure you continue earning a profit. Build a healthy cash reserve. If needed, adjust your pricing, margins and labor rates. Get your personal finances in order, too. Continue your marketing efforts, especially if you feel you are heading into a slowdown. Don’t make the mistake that so many companies make and pull your advertising budget to cut expenses. Bump up your training programs and invest in new technology. Perhaps the most important component in preparing for the future is assembling a great team of employees and creating a workplace environment that tells your employees, we care, and we want you to stay Our economy goes through wild swings, combined with good and bad times. The truth is that no economic situation is sustainable forever. The companies that prepare and grow their companies in the best of times will make it through the tough times. However, surviving is not the goal; thriving is. Become diligent with your approach to your company. Work hard today to grow your business in every aspect. Preparation, combined with hard work, will always pay off in any economy. https://www.ratchetandwrench.com/articles/13005-marconi-you-can-and-will-survive-an-economic-downturn?utm_campaign=10MMCD221212014&utm_medium=email&utm_source=newsletter&oly_enc_id=2793F8381667E8G

For automotive shop owners, tax planning is an ongoing process. You should meet with your accountant at least once a quarter to review your financials, expenses, major purchases, cash reserve, payroll, etc., and make needed course corrections. Below is a general list of tasks that should be done by the end of the year to prepare for tax season, which is right around the corner. Schedule a meeting with your accountant and ask if any information, reports, or documents are specific to your business. Update your inventory and run a report for December 31. Review your and your employee’s retirement accounts; fund them if needed before the end of the year. Purchase equipment, vehicles, etc., to reduce taxes ONLY after discussing with your accountant and coach. Check your accounts/receivables and print a report with a closing date of December 31. Prepare a list of any uncollectable debt for your accountant. Prepare your accounts/payables. Determine which bills will be paid in the current year. Ensure that all loan interest income and expense is properly itemized on your P/L. Ensure that all major equipment purchases are properly itemized on your balance sheet. Prepare any investment dividends documents. You may need to wait until January to obtain these documents. Make sure you have all receipts and records for any capital improvements or leasehold improvements made this year. Contact your attorney for any required corporate meetings, filings, etc. Discuss with your accountant how to payout any end-of-year employee or corporate officer bonuses. Ensure that all payroll information and worker’s compensation information are correct. Remember, preparing now may save you from paying too much in taxes and will relieve stress from your life.

We often speak of the "Customer Experience," which is crucial to the success of your auto repair shop. But equally important is the "Employee Experience." I don't have to remind anyone that happy employees make happy customers, but this concept goes even further. If you want to attract superstar candidates and hold on to the superstars you employ right now, you must do all you can to ensure that your employees have a healthy workplace where they are appreciated and can grow and enrich their careers. I know we have a lot of great shop owners on this forum. What do you do to create a great workplace environment that both attracts and retains top talent?

This is amazing! ASO members helping each other! The power of networking and the ASO forum! Great job!

National Pearl Harbor Remembrance Day, also referred to as Pearl Harbor Remembrance Day or Pearl Harbor Day, is observed annually in the United States on December 7, to remember and honor the 2,403 Americans who were killed in the Japanese surprise attack on Pearl Harbor in Hawaii on December 7, 1941, which led to the United States declaring war on Japan the next day and thus entering World War II.

One correction, sorry, I didn't mean to state the QB had a scan feature. I scan important documents to my computer in a drop box file. It is saved in the cloud and easily accessible. In fact, you can share the file with others if needed.

Agree, and we also need not to forget that EVs will still have the problems that cars have today: tires, wheel bearings, steering/suspension issues, wheel alignments, fluid services, cabin filters, HVAC issues and other mechanical issues.

I really don't have any magic bullets for you. I have been in business for 41 years, and I simply used the basic file cabinet system and organized the files in a way that I could easily find what I needed. I did use technology in the later years, scanning and filing on my computer and backing it up. I used the filing system Drop Box: https://www.dropbox.com/ Drop Box automatically backs up files to the cloud. And can be accessed through any computer you have, at home or work. I also had an accountant, an attorney, and a financial advisor who all had their own set of files, which was very helpful. Great question, I hope I helped.

Thanks for sharing, Larry.

Not to bring politics into this conversation, and whether we like it or not, the Electric Vehicle push is on. And in a big way. We need to prepare for EVs, implement EV training, and invest in new technology. The question is how aggressive do we need to be at this point?

I think that the labor side of this is much more important than the part side. Would you say that labor time can get eaten up fast when you come across a problem?

It's very common. We often get complacent.

Keep us updated on this. I know many of us are interested! And good luck!

As we head toward the end of the year and look to 2023, I thought it would be beneficial for all if we share the biggest challenges that are facing auto repair shops. Is it hiring new employees? Employee retention? The economy? Technology? Or perhaps, finding the right training for your employees? Let's start the conversation and post your biggest challenge!