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Everything posted by Joe Marconi
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I like the car wash feature too. Morale is an issue, anything that an employee can view as a added perk is good.
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Great point! We all need to be carful, it's still a business; favor or not.
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I agree. Increasing shop productivity is more complicated than the actual time the technician takes to complete a job. We all know that a tech can beat the book time on most jobs, so why would productivity be lower than normal in a given shop? To elaborate on Evan’s remarks; wasted time between jobs, techs performing tasks that are not productive, time wasted finding the right tools or equipment, receiving the wrong parts, on and on, all contributes to lower than normal productivity. I too agree that shop owners need to do an analysis on the actual work-flow process, much the same way the Japanese did decades ago when analyzing how to improve the efficiency of the assembly line, in order to find the waste in shop production. As each problem is solved, more profit is generated to the bottom line.
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It felt REAL GOOD to take this poll. My marks were not favorable, trust me!
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Importance Of Identifying Your Shop and Staff
Joe Marconi replied to Alex's topic in General Automotive Discussion
You would think that in this day and age, a business owner would realize the importance of signage. -
I limit my techs to their own cars and immediate family, not their uncles, cousins, etc and NEVER friends. It must not interfere with business and I prefer they come in early (before the day starts). I don’t allow big jobs like engine swaps or transmission, that’s taking it too far.
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Connect With Your Customers, Increase Sales
Joe Marconi replied to Joe Marconi's topic in Joe’s Business Tips For Shop Owners
I hate to repeat myself, but once again I tip my hat to my fellow shop owners that truly take this industry to another level! -
First, thank you for serving your country and protecting this great nation, I salute you. As one of the founders of ASO (AutoShopOwner.com) I want to personally welcome you and look forward to sharing your thoughts and opinions. You will have the opportunity to network with ASO shops across the country and around the world. If you need help, just ask. ASO will be there for you. Again, welcome and best of luck to you, Joe Marconi
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Increase Productivity, Order Online!
Joe Marconi replied to Joe Marconi's topic in Workflow, Procedures, Shop Forms
The better you can automate the customer process the more productive you become and the more prodcutive your shop becomes, which adds dollars to your bottom line. We all need to use technolgy to not not help us in the shop, but also in the front office. -
Connect With Your Customers, Increase Sales
Joe Marconi replied to Joe Marconi's topic in Joe’s Business Tips For Shop Owners
Thanks for your great input. I see you truly understand customer relations and how it has a positive affect on your business and the auto industry. Your comment on your suppliers is right on track. You actually stole part of my thunder for my next tip. -
It’s important to connect with your customers. Take for example: When a customer informs you that she needs her car back by 4:00 because her son has a soccer game, make a note of that. Make sure you have that car ready on time when she picks up the car that afternoon, say something such as, “Tell your son good luck at the game”. She will remember that more than the service you performed. Here's another tip. We use the customer remarks field in Mitchell Manager to make notes about the customer. If Tom Smith enjoys playing golf, we make a note of that. The next time Tom brings his car in for service, we ask, “How’s your golf game going”? It’s a nice way to connect with your customer and trust me, being personal will help you with sales.
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That is a different story, and in that case the tech's head is not on straight anyway. I have been down that road too and it's something that's part of life. But you can't make policy based on the extreme. That's the way I feel, anyway. And, of course, no cell phone use while road testing, AGREE.
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I read Elite’s article and I “kind of” agree. I understand the need to concentrate and the safety issue. And if this were 1995 I would totally agree, however…this 2010 and the world has changed. Many people today don’t even own a land line and are too accustomed to staying in touch with their family via the cell phone. I would not feel right if I did not give my people the same privileges that I enjoy. How can you tell a tech that his wife can’t call or needs to leave a message and their husband can only return a call during break time or lunch? Would you accept that? Not me. If my wife calls or a family member calls, it’s important. Having said that; I don’t allow cell phone abuse or in any way encourage cell phone use. I tell my entire staff, please do not abuse the privilege, you can have the cell phone on you, but it is only to receive emergency calls. I also tell them that I know that having a cell phone attached to your hip is part of how our society functions. This is my policy and I never have an issue.
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Here we go again...What about the honest repair shop. What about the people who try to get away without paying or agree to a job only to find out they can't pay. Why is always the "Dishonest Shop". Here's my reply I made at the end of the article: Another short-sighted stupid political move. What about the honest repair shop and the dishonest people who don't want to pay thier bills. Ever think about that???
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I like that quote from Carnegie. Once shop owner realize what it cost to be in business and to earn a profit, the fear of charging goes away. Why are so many shop owners afraid to charge what they are worth? Is it really the fear that "some" people may complain? SO WHAT if someone can get it cheaper from Pep Boys or AutoZone. I truly don't care. My mark up is a reasonable markup at 50% on parts and 70% on labor. That's needed to pay my bills, pay my people, put food on my table and put a little aside for the future. Don't I owe that to myself? I am not ashamed of what I charge and when I person says to me; “I can get that part cheaper”, I reply and say, “YES YOU CAN, DO YOU HAVE ANY OTHER QUESTIONS FOR ME”?
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The Health Care Issue headed in the wrong direction
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
Priceless! A picture is truly worth a thousand words!!! -
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.
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My service writers struggle when charging for interment problems, especially when the problem cannot be duplicated. Here my policy: “Mrs. Customer, unfortunately we cannot duplicate the problem you are experiencing, but would like to perform a few tests based on the symptoms you describe. These tests may help us by analyze the problem and will let us know if all the major functions of your on board computer, fuel system and ignition system are working properly, The cost for these test is “X” dollars. Remember Mrs. Customer, the problem is not occurring at this time and further testing may be required”. I would like to hear how you handle this and your policy.
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Great question! I pay my service writers a base pay with a sales bonus. BUT, here's the key; base your bonus not on sales alone, but on gross profit dollars. For example: If we had a week where we install 2 engines and 2 transmissions, our gross sales may “look good” on paper, but what is the actual profit dollars? When you do the math, the gross profit (parts/labor) may only be 40%. Let’s say you have a week with similar sales but you filled your week with brake jobs, maintenance work, steering work and suspension work. The gross profit on these sales may be 60% or better. The sales amount for both weeks were the same, but there is more money in your pocket. You need to sit down and calculate your break-even. Create a sales goal based on the amount of money over break-even. I add 20% above break-even as my goal. Anything above that amount I give my service writers a percentage of those sales. I also track what each service writer sells (Mitchell Manager tracks this). My top writer receives a larger portion of the bonus and so on. If you need further clarification on this program, please let me know. BTW; Gross profit dollars is calculated by adding you labor dollars sold plus the profit on your parts. Labor dollars for week= $10,000 Parts sales for week = $10,000 Total gross sales = $20,000 Profit on parts = $5,000 Total gross profit dollars: $10,000(labor) + $5,000(profit from parts) =$15,00
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The Health Care Issue headed in the wrong direction
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
This article not only rings true...it downright scary! We have created a population of uneducated, ill-informed people. The question is can we stop it? I just read in the Wall Street Journal about how a number of school districts have gone to a 4-day school week to save money on their budget. SAVE MONEY! Who is running the asylum, the insane? How much will a four day school week cost us in the future? Our younger generation has a hard enough time competing now. Other countries have extended their school; we want to retreat? There is a hidden agenda that’s moving this country in the wrong direction. -
I had the same issue. You may not want to hear this, but, you need to hire another service writer. My original shop had 6 bays, 4 techs, one service writer. We built the car counts up to 100 to 120 per week. Our productivity suffered because the one writer could not get the paper work processed quick enough and sell the work. After a while, we were not selling the work we knew we could sell. I hired another service writer, and the productivity went up and up-sells went up too. We now have 10 bays, 7 techs and do 180 to 200 cars per week and have three service writers. (I help too, if needed). You need enough service people if you have the work. The service writer needs the time to speak with the customer, create the estimate and sell jobs. Techs standing around will bleed money from your business. Plus, you will eventually burn out the service writer. The increase in productivity and the increase in those up-sells will pay for the additional service writer.