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Everything posted by Joe Marconi
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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.
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Why, because too many shops don't charge for diag time, or don't charge enough, or apply the diag charge if the customer authorizes the repair and so on. The problem is not the general public, the problem is us.
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Anyone using tire balance bags?
Joe Marconi replied to Joe Marconi's topic in Marketing, Advertising, & Promoting
Yes, that's it. -
Nice article, great points that needed to be said. I held a workshop at a shop networking meeting a while ago where we had to calculate the true cost to the shop for one hour of diag time. When you total all the shop costs (tech payroll, information systems, shop overhead, other data bases like IATN & Identifix, scan tools, scan tool updates, meters and other tools) the average among the group was $95.85. Let me repeat; that's $95.85 just to break even for one hour of diag time!!! We need top charge, plain and simple...
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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
You are right on both counts. The people in this country must get out on election day and tell this adminstration: We will not take it any longer! -
Anyone using tire balance bags?
Joe Marconi replied to Joe Marconi's topic in Marketing, Advertising, & Promoting
No, these bags are used instead of balance with weights. You just throw the bag into the tire. I think it was first used for large trucks. Here is the link again: Magnum Plus Balancing Compound -
Refund? How About a Bat to the Head?
Joe Marconi replied to xrac's topic in Customer Experience & Reviews
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Refund? How About a Bat to the Head?
Joe Marconi replied to xrac's topic in Customer Experience & Reviews
Hopefull he learned his lesson, but I don't know...A Tiger cannot changed its stripes. -
Refund? How About a Bat to the Head?
Joe Marconi replied to xrac's topic in Customer Experience & Reviews
You are right, like I always say; You can't be everything to everyone". Stay the course and you will be fine. Was the customer's reaction when you refused to work on his car? I would have loved to be there to see that! -
The Health Care Issue headed in the wrong direction
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
Maybe the fight is not over yet. You know what’s strange; I can't find one person who is FOR the health bill. Isn't the government: "for the people, by the people"??????? -
Refund? How About a Bat to the Head?
Joe Marconi replied to xrac's topic in Customer Experience & Reviews
I must admit there were times I felt like this guy, but actually taking a bat to someone? I don't know, this guy sounds nuts. -
It probably is much the same. All these programs try to mimick each other to stay competetive.
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We are a TECH-NET Facility (Through CARQUEST Auto Parts) and it operates much the same way. We also have a nationwide warranty program and it works great. I would highly recommend shops to explore the idea of becoming a member of one of these programs. We get a rebate on our purchases, marketing programs, training and a lot of other benefits. Here's the link: TECH-NET Professional Auto Service® - Home
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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 country was founded by great people, that most of us have forgotten. You know the health care bill is 2,700 pages? The US Constitution is only 6. That speaks volumes! -
Anyone using tire balance bags?
Joe Marconi replied to Joe Marconi's topic in Marketing, Advertising, & Promoting
Yes: Here is the company that NYTECH Tire Supply is selling, Magnum Plus Balancing Compound -
Anyone using tire balance bags?
Joe Marconi replied to Joe Marconi's topic in Marketing, Advertising, & Promoting
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Is anyone using the new tire bags? I just got a sample from NYTECH. Just wondering of anyone has any feedback, good, bad?
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Has anyone heard of this group?
Joe Marconi replied to CARMandP's topic in Workflow, Procedures, Shop Forms
Elite changed their entire site and accoirding to the site, the new price for membership is $79.00. Elite has a lot to offer and is worth checking into. It's a great business source. As I mentioned before, I am a member and know the founder, Bob Cooper, for many years. -
The Health Care Issue headed in the wrong direction
Joe Marconi replied to Joe Marconi's topic in Non-Automotive Discussions
This is another example of "Feel Good" legislation. The fact is that someone will have to pay for this. When will the people of this once great land stand up and say, "we have had enough"! The waste, fruad, phony law suits and political agendas have more to do with what's wrong in this country than anything else. This administration wants to grow the size of government, and that's goes against the princples of why and how this country was formed: "Government big enough to supply everything you need is big enough to take everything you have ... The course of history shows that as a government grows, liberty decreases". Thomas Jefferson -
When an employee can’t get to work on time
Joe Marconi replied to Joe Marconi's topic in Human Resources, Employees
At least with interns you stand a chance of making a difference, but when a 35 year old still has an issue with coming in on time, I think its too late. -
When an employee can’t get to work on time
Joe Marconi replied to Joe Marconi's topic in Human Resources, Employees
I had a similiar story, but this tech was good. I hated to let him go, but life goes on and we survived. It's not that I don't worry about losing a great tech, but if the tech stays, what will that do to my business due to bad morale and hard feelings among the other employees?