Joe Marconi

As shop owners, we get consumed with the day-to-day routine of running our businesses. When we are young, we think we have all the time in the world to plan for our futures. When we hit middle age, we think about our end game, but too few of us do something about it. And when we reach retirement age, we wonder if we did all the right things to prepare for life after owning an auto repair shop. The reality is that life can throw you a curve ball at any age. This means you need to prepare today. You have responsibilities to yourself, your family, your loved ones, and those you employ. Ask yourself, “What if something happens to me today that would force me to retire? Would I have everything in order so my family would be protected? Would my business survive without me not being there?” No matter what stage you are in your business career, my advice is to do this: Set up a series of meetings with a financial advisor, your accountant, an attorney, and an insurance agent. And your business coach, if you have one. Tell them that you are concerned about your eventual exit from the business and to plan for the unexpected. They will help you to get all your priorities in order. Remember, when it comes to life’s curve balls, age does not matter.

Good for you. I can respect that. Do you have any exit strategy at all? Life can throw a curve ball.

Glad to see you have a plan. Please help this group of employees with the process. Sometimes, their "desire" does not materialize into actual reality. I had two serious-minded employees that really want to buy the business but bailed out when the time came. Looking back, I should have done a better job of helping them through the process.

Frank, not to be all-knowing and personal, but you need a plan. It took me 5 years to sell, with multiple deals that fell through. Then I had major surgery in 2020, and that was the last and final push to make this happen. I sold my two shops and real estate. Got my check, paid my capital gains tax, and was done. Any questions, please ask away.

You bring a grim perspective, but much appreciated. When you think of the political push for EVs., it makes one wonder, what is the actual agenda? EVs, and all so-called green engery, is big business, which means money is to be made. The question is, as you say, will the smaller shops be left with the scraps?

Joe, Welcome to Auto Shop Owner! And great news that you are considering a career as an auto technician. There is a great future for young people, and an exciting time to get into the auto industry. Your dad is giving you the right advice. Working in a repair shop is a great way to see if this is your life's passion. Just be sure you find a good place to work. The best are independent repair shops, in general. As far as education. There are trade schools like Lincoln Technical and Universal Technical Institute. For 2-year college degrees, research colleges with an automotive program like Ohio Technical Institute. If you do work at a repair shop, the owner of the shop has tons of training he can provide for you. Good luck to you; our industry needs more young people. And please ask questions and keep us updated!

A recent Auto Leap Survey revealed that 64% of shop owners are looking to retire in the next 10 years. (Link below to survey) So, I want to take an informal survey of our ASO members: How long have you been a Shop Owner? When do plan on retiring?

Last week, I had an interesting conversation with a shop owner friend of mine. He told me that he does not mark up his parts as much as he once did, mainly because of pushback from customers. He states that Google, Amazon, Rock Auto, and others, have hurt that part of the business. I don't want to debate that fact right now, but what I told him is that It doesn't matter how you arrive at your required profit, but you need to maintain profits. If you concede on your part margin, then the only way to maintain your required Gross and Net Profit is to increase your labor rate. Your thoughts and opinions? I would like to know what other shops are doing with part margins these days.

Throughout the year, there are many industry trade shows and events. We can't attend them all, but what are your favorites? And why?

Do you have a formal onboarding, or employee orientation, process? I know that so many shops these days are looking for employees, and many shops have been short-handed for some time now. But, is it wise to throw people into the mix without a formal onboarding process? Many say that the time it takes to prepare a new hire will pay dividends down the road. Your thoughts and comments...

From what I am seeing, the majority of the shops in the U.S. are preparing for EV service, but for most, it's "wait and see what happens." There are a lot of questions that need to be answered. Plus, for many repair shops, especially in middle America, the EV revolution will take longer to take place.

Very interesting discussion. In the U.S., the state of California has the same agenda, and New York is going to follow. While I do know all about what is being discussed, you don't hear these facts often and are not reported on the majority of news stations or reported in the newspapers. The only TV News Station that I know of in the U.S. that reports these facts is Fox News. This is a serious situation, mainly because the EV push is so strong, politically. The people need to know all the facts. It is thrilling to hear this side of the facts on EVs. in the U.K. Thanks for posting!!!

The same here in the US. There is a big "behind the scenes" political agenda for pushing EVs. EVs are coming. is the world ready? I don't know. A lot of things need to be figured out: Charging stations, the time it takes to charge fully, the current state of the electric grid, what about those in heavily populated cities who live in apartment buildings, and the environmental impact of mining the elements needed to build the batteries. EVs are coming, there is no doubt about that.

I do understand the strategy, and the 4-day employee rotation model. I still think that this is a case-by-case decision that only the shop owner can make. I spoke to a shop owner last week at the Elite Eagles course, and he said that there was no way he was giving up the 6 day workweek, and also stated that Saturday is his best day of the week.

Great points Eric! How is the UK solving the EV charging station issue?

When I was in business, I had two locations, and we were open Monday thru Sat. Saturday was usually to 2pm, unless we were busy that day.

HA! I know, it appears that everyone has this on their minds; and not just people from the auto industry. At dinner with friends, I get bombarded with questions about Evs. But, I do agree....Please, let us wait and see.

I too became a big believer in in-house training years ago. It started out as a way to reinforce procedures and checklists, then evolved into online webinars, and inviting guest trainers.

I am really enjoying your posts! And I really hate hearing, "It's an EV; what's going to break? It doesn't need ANY servicing or repairs!" The public will learn the truth about EV eventually. Thanks for the info!

Larry, you bring up a few things I did not consider. And I guess if there is a strategy that works for one, who is to say it's wrong or right? As always, thank you for your perspective.

Last week I had the privilege to present the Fly with the Eagles Course in Indianapolis, Indiana. As always, the power of the course was the amazing shop owners, managers, and service advisors who attended the event. I left Indy with a fresh new enthusiasm that the aftermarket auto repair shop is alive and well. The level of professionalism and passion is proof positive that as an industry we are the very best, and will meet the challenges of the future!

When I started my repair shop in 1980, we mainly worked on three car lines: GM, Ford, and Chrysler. Through the decades, technology has dramatically changed the average automobile. Plus, today, we have many more car models to worry about, then add EVs, hybrids, and who knows what else car makers will throw at us. Is it time to rethink our business model? Can we really be that shop that works on All Makes, All Models?

I was speaking with a few shop owners last week at the Elite Fly with the Eagles conference. They were telling me that they are down a technician, and while the other techs are pitching in and doing a great job at getting the work done, one of their fears is tech burnout. I guess being busy is a blessing, but at what cost? What are you seeing at your shops? Is tech burnout a real issue?

This is fascinating information. What types of patterns do you see in terms of repairs and services on Teslas?

Training is becoming more and more crucial, mainly because technology is changing at light speed. Do you have a training budget? How do decide how much money should be allocated to a budget, and what areas of training?