Joe Marconi

Well Said!!!

Here’s my problem with flat rate: I speak to many techs that put in 45 hour weeks, only to get paid for 20, because the shop does not have the work to keep the tech busy. However, the shop owner requires that the tech remain in facility and performs odd jobs like clean up, building repairs, working on tow trucks, company vehicles, the owner’s boat, the owner’s classic car and panting the walls. How many jobs do you know of that mandates the worker to put in 45 hours but pays them for 20? I’m not saying that this is all shops. And, many times the tech is not productive. But, if I tell a tech that he needs to work a certain amount of hours, he needs to be compensated for those hours. For shops that are constantly busy all year long with tons of work and the “opportunity” is always there for the tech to make money, then in that case flat rate works.

This is a friend? Let me tell my story. When I started my business in 1980 I had tons of friends. I gave them all super discounts because I thought they were like family. I thought they were special. Well, after a while I realized most of them wanted too much from me. They were killing my business and tying up too much of my time. When I changed my policy and told them that I can give them a 10% discount across the board, and that I would supply ALL PARTS, I lost most of my friends. The bottom line is: if they truly are like family they don’t want you to fail and will support you business, not drive it into the ground. You are in business to turn a profit, you can’t please everyone. Look out for yourself and take of the people that appreciate what you do and are willing to pay what you deserve.

The issue with the stolen phone is a sticky one. So let me understand; your tech is going to leave you because someone stole his phone? That does not seem right. Not to be pushy, but are there any other issues besides that? How did it get stolen? Where was the phone? If this tech is really that important to you, buy him a new phone and make sure it’s secured from now on. Also, find out what the heck is going on in the other shop. Who would steal a phone? As far as paying a tech, the range is wide. In my area B techs make anywhere from $16 to$ 22 (without bonus pay) and an A techs can make much more. It depends on what level you are looking for and what you can afford.

Yes, I agree 100%. We have all been down this road. The following note is explained and printed on every invoice for all check engine light problems and other diagnostic work: "Note: Our diagnosis has identified a problem with you vehicle's on-board computer system. Due to your vehicle's computer program design, some tests may have been blocked as a result of the fault. After the repair has been made it will be necessary to run your vehicle for a few days to insure the check engine light does not return. Because the check engine light may return,more testing and analysis fees may be needed". As gonzo said, this does help if the light should return or additional problems ocurr.

Excactly, market your business to create return customers. That is the purpose of marketing. Also, like I always say, don't try to be everything to everybody. Can you tell me more about your brake promo?

I agree. Always give options, but guide your customer to make the right choice. I don't give my alignments away. Why? Because I won't just set the toe and let it go. By the way: I also use the phrase; I didn't buy it, build it ot break it....the three "B's" of the auto repair business.

Welcome to the team, looking forward to share ideas and learn from each other.

Wow, great article. I agree, depressing. But don’t give up. I believe that the tied will turn soon. I can’t believe that the American people are that stupid. There are however, fooled by the political climate. I still have faith the traditional small business that made this country great. We hold all the cards, we just to know it.

I charge more for any alignment that requires more labor. For example, if I need to install a ball joint shim on a Ford truck, I will charge accordingly. If I need to drill out the rivets on an upper strut mount plate under the hood on a Ford, I will charge more. I also have different prices for 2 wheel, 4 wheel, light truck and Hi-end cars such as Mercedes, Jaguar, BMW. ETC

Please keep us posted!

I believe the only way to become successful is to slowly work yourself out of the bays. It’s hard for some, I know it; it was very hard for me. But when I was tied up all day long to the day to day operations, I did not grow. I reached burnout in my 30’s. I was a slave to my own business. I did not realize that I was not a business man but merely owned a job. When I finally realized that I needed to run my company and not just work in it, my company began to grow. Find the best techs; find ways to increase shop production and provide the best service you possibly can. Eventually I hired enough people to take care of every task and operation my company performs. This freed me up to do what I need to do…and that’s to continue to grow my company and look for other business opportunities. I may have switched gears a little on the topic, but I feel that this needed to be said.

It’s truly amazing how some people view our industry. What other business allows this to happen. I never hear my plumber, oil burner service man or carpenter complain about people wanting to install their own parts. Is this a “left over” vestige of times long ago? Or are there still a lot of shops out there that are so desperate or ignorant that they think they need to take in every type of customer?

Thanks for the tip. That’s a lot of great info. One thing I'm not too sure about and that's discounting. How do feel about discounting in good or bad times? I prefer building packages that give the customer value, rather than a discount. For example, we sell a “Seasonal Maintenance Package” for $69.95, which includes: LOF, tire rotation(with the balance), BG engine and BG fuel additive, top off fluids and a 30 point inspection. We sell a ton of these and promote them 4 times a year. Thoughts?

GREAT suggestion, great advise, I have the read the E Myth twice and actually took the E Myth Master Course. It helped me understand that we need to build a business that runs on its own and one that can grow with the right people in place and by creating systems and polices. The beauty of the E Myth is that it applies to all types of business. When the owner of the shop is nothing more than the hub of the company and everything is dependent on him/her, the business will suffer. The bottom line is that shop owners need to be more than just technicians tied down to the day to day operations. Remember, just because someone is a great chef, does not mean he knows how to run a restaurant. The same holds true for mechanics.

It’s a bit involved but I will do my best to explain. First, all newly hired techs are told that we track productivity and for the first month or so we keep carefully track of their productivity and efficiency. This is done to find what they are capable of doing. In other words if a tech works a 40 hour week and is producing an average of 35 hours per week, we make that number his minimum level of expectation. The goal is to get this tech producing 40plus hours in a 40 hour work week. This strategy works because it gets the tech to compete against himself, rather than worrying about what other techs are doing. After about 4 to 6 weeks we put the tech on commissions based bonus. The tech will receive a bonus when the tech books any over his minimum level. So, if a tech is rated at 35 hours and he books 40, he will get a 5 hour bonus (based on his hourly rate) for that week. Every month the tech will be bumped up 5 percentage points. After that A techs must achieve 110% efficiency and B techs must achieve 100%. To be eligible for bonus the tech must work a minimum of 40 hours. All comebacks that are clearly the techs fault will come off their bonus. If a tech cannot achieve these levels, the tech needs to find another job. Please note; if the shop has little work due to a snow storm or other reason, we do not count those hours. I hope this explains my system. I tried to trim it down to make it easy to understand. Please let me know if you need anything clarified.

Evan, first, welcome to the forum! It’s about time you joined in. For those of you who don’t know Evan, he was very instrumental in helping me during my expansion project working on getting my focus directed in the right direction with respect with understanding customer demographics, marketing to “My Customer”, branding and understand value proposition. As usual, you clarified princely what needed to be said, nice job. Question; do you think that some shop owners resort to "desperation marketing" when the see their bays empty and perceive that other shops may be doing better?

It is what AutoShopOwner..com is all about...spread the word!

I totally agree. I tell my advisors to always ask questions such as; is the car due for rotation, how are you wipers, etc. If there is very little vehicle history we will also ask if they are up to date with all scheduled maintenance. The key is to ask...

I agree on both points, xrac. BBB is a scam, nothing more than robbing money from any business willing to pay the membership. I too cannot believe that selling yourself short can last for long. You may struggle for a long time, but it must take it's toll in the long run. I don't want to see shop owners caving in and get into a price war, that will kill us all.

I know we have spoken about this countless times, but I need to hear again ideas on handling comebacks. There are 3 types of comebacks; Part failure, communications or procedure breakdown, and tech failure. Part failure we have no control over. However when a pattern develops we need to look at the part supplier and question the quality of the part. Communications error between advisor and tech or between customer and tech can be solved, that’s relatively easy. Now, what about tech error? Do you make the tech accountable for the error when it’s clearly the tech’s fault? And, how do you handle part failure with your supplier?

Wow! This is a side of the industry that drives me crazy!!! There are too many shop owners that should not be in business. They hurt it for the rest of us. Let me ask you a question...How is staying in business????

I read your thoughts on page 168 and you are right on point. It’s unfortunate but “sensationalism” will always win over “journalism” and a few bad apples in any industry will always be the focus of the media and the public. I particularly like you comments on the Better Business Bureau. Again, right on point! It’s the number one reason why I will never join. The BBB promotes the negative and never reinforces the positive. Like I said, and will repeat over and over….Our industry is filled with dedicated, hard working people who sacrifice each day to keep this country moving. THEY deserve the respect they have dearly earned. You know what really kills me: The president of the U.S. or a star athlete can commit the most heinous crime and all he has to do apologize and he is made into a hero. Just wait, Tiger Woods will be back and he will get a standing ovation the first time he steps onto the green.

Great saying...I do think that before you motivate your customer, you need to motivate yourself.

I completely understand what you are saying. We too, believe that growth is our number one goal; but how you get there depends on making a profit. No company can grow without making a profit. To say, growth all cost, may be one way to achieve that, but I do believe that a company can be competitive and profitable by having a strategy based price structure and not give the farm away. You need to remember that a business like mine which has been around for 30 years has gone through many recessions and growth spurts. We recently built another facility and for the large part, adhered to you paradigm. Building a strong customer base is vital to you growth and survival, you are 100% correct. For me, building my customer base with the right kind of customers is equally important.