Joe Marconi

I started my blog last week, Joe's Blog. It was suggested to me that I share my experience of constructing a new building, which will add 4 bays to our existing 6. I will outline the entire process, starting from 2 years ago when I first had this vision to expand. We broke ground just last month. The events and struggles were a real eye-opener for me and I hope you get both enjoyment and valuable information from reading about my project. Please join me while I re-create the journey from conception to construction. Joe

In the year prior to making the decision to grow the business and construct an additional 4 bays, I did extensive research in learning about franchise businesses, quick lubes, national chains and also big businesses such as Disney, GE, Starbucks, McDonalds and others. I wanted to find out why these businesses have a higher percentage of success and growth, as opposed to so many general independent repair shops that seem to struggle and plateau after a few years. I also visited many quick lubes and national chains to learn how they conducted business. I even took my car in for service at a few quick lubes and tire stores, without them knowing that I owned a repair shop. This experience was extremely enlightening and I advise all shop owners to do the same. What I learned from my research was that all these business differ the traditional repair shop in many ways and that there are many similarities among franchises, quick lubes and tire stores. And these similarities are not just common to the auto industry but common to all successful businesses. To be successful you need to have a plan, you need to have vision, you need to think like a businessperson, you need to market your business, you need to advertise, you need to create systems and you need to create policy that all in your company must follow. What I also learned is that the more consistent you become the more successful you become. This can only be achieved by creating systems that make your business more automatic and run without you. The more the business runs without you, the more profitable it becomes. If your business is dependent exclusively on you, your business will never grow. Perhaps the most important thing I learned is that you need to be a leader and that great leaders can't do it alone. Leaders need great people around them to accomplish great things. I created a team of advisors within my company. This team consisted of my service advisor, shop foreman and lead tech. I also recruited the help from my two sons, a financial analyst and a graphic artist. Together, we created a new plan to expand and grow the business. Stay tuned!

My first step in making the decision to expand the business was to overcome fear. Fear holds people back from achieving their potential. For me, it was the fear of failure and fear of the unknown. This project was doing something that was out of my comfort zone. For over a year I thought of every excuse NOT to expand the business: Where do I find more techs? How will I afford the new mortgage? Why do I want to start this at my age? Do I really need to do this? Why do I want the additional headaches? Aren’t things fine the way they are now? The project would involve demolishing and old building and constructing a new one. The new building will add an additional 4 bays and new customer waiting area. I had multiple meetings with the site engineer asking question after question. Finally he told me, “Joe, you have been going back and forth on this project for over a year, either sh_ _ or get off the pot”. At that moment I decided to go for it. I guess it’s easier to live in your comfort zone. It’s harder to move forward into the unknown. In future entries I will outline “The Plan” for the new building. Stay tuned!

28 years ago I made the choice to become a shop owner. For years prior to starting my business I worked hard to become a skilled mechanic. By the time I was 24 years old I was rebuilding engines, transmissions, solving the most complex electrical problems and became an ASE Master Tech. How did this benefit me when I went into business? NOT VERY MUCH! How did this help me with expanding the business and creating a new business model? NOT AT ALL! I opened in 1980 and after struggling for years it dawned on me that being skilled mechanically just wasn’t enough. I needed to become skilled with the mechanics of business. I needed these new skills to design my new business model. I will outline my steps in future entries and share the process. One thing is certain; you need to have a business mindset to create vision for your company. You need to become a leader. Why? You can’t do it alone. You need great people around you to help you build your empire. Stay tuned for more!

After working for more than 2 years, we finally have all the approvals for our expansion project. My business plan has been submitted to the bank and hope to hear from them soon. Our next step is to have the building designed approved, which we do not anticipate a problem. We now have 6 bays and will be adding four more bays, which will be a stand alone facility. This facility will accommodate all our while you wait customers and light service work. The repair work and bigger jobs will be done in the original 6 bay facility. A lot of work went into this project (many sleepless nights) to get to this point and it's not over yet. We broke ground last month and looking at 6-10 months for completion. I have to admit, creating a business plan and new model was not easy and out-of-my-comfort zone. It's like starting a new business. It's both fun and scary! I will make periodic updates as the project progresses and will share the step by step process needed to build and create something new. Please contact me with comments. I will share the experience with all. Stay Tuned!

I appreciate the input.

I have no issues when the vehicle is in the shop for service. We have no problems with that. What concerns me is giving prices over the phone before I see the car. It may seem straight forward at times, but I would still like to see the vehicle. I guess for certain jobs with regular customers, it should not be an issue. Agree? Or not?

I guess I am a little gun shy about giving price over the phone. How many times have you given a price on a particular service only to find the car need additional work, like front brakes or tires? Joe

My 2 cents worth of marketing for today: Market today for A/C work. Don't wait for customers to tell you their A/C is not working. Br proactive and ask customers if they want the A/C checked. Perform a simple visual inspection on every car and turn the A/C on every car before it enters the bay. Be proactive, be profitable!

My 2 cents worth of marketing for today: Market today for A/C work. Don't wait for customers to tell you their A/C is not working. Br proactive and ask customers if they want the A/C checked. Perform a simple visual inspection on every car and turn the A/C on every car before it enters the bay. Be proactive, be profitable!

Don't you think that we cannot rely on just on source of information anymore?

We have been using Identifix for about 2 years now. I think it is another valuable source of information. Today, you can't rely on just one source. We have Mitchell, Alldata, IATN and Identifix. It's a lot! The key is to sell enough diag time to pay for everything. Hope this helps

With the rise in the price of gas and food I am finding that my customers are unusually cranky. No doubt they are concerned, but are they blowing things out of proportion or are their concerns justified? I think we need to be positive and not feed more negative thoughts about this economic climate. What have you seen with your customers?

Yes, we have been using it for about 2 years. In today's world you need more than one information resource. We have Mitchell, Alldata, IATN, Identifix and will also log onto OE sites if needed. Information saves time and makes money.

Spring is in the air and people are usually in better buying moods. What spring promotions have you done that were successful in the past and what are your marketing plans for this spring season?

Great comments! Did you know that the main reason why people do not return to a business is because they feel that the business does not care about them. Get to know your customers. Treat them like family. Is it too much to ask to smile???? Outstanding customer service will grow your business faster than anything else. Your customers may not know what ASE is, or a Hunter Alignment Machine. BUT they do know when they have been misstreated.

First things first. It’s difficult to analyze another business when you don’t have all the facts. But after reading your posts, it appears to me that you have an above average shop and that you are dedicated to the success of your business. With that said, I think you know what the problem is already. It’s car counts. Have they been decreasing or steady? That’s important. You need to find out what’s happening in your area. I speak to many shop owners around the country and the main concern seems to be car counts. You need to find ways to increase your traffic. Do you sell tires? Offer while you wait service? Open Saturdays? Offer late nights? Is your advertising reaching the right people? Do you have a program that offers a complete line of services? Are your service people doing an outstanding job at the counter and on the phone? The answers to your business must come from your analysis of your business. Focus on what works and what is most profitable. Find ways to increase what is most profitable. Let’s keep the dialogue going and I hope other join in. One More thing: Remain Positive! Remember, if you’re negative, you will bring negative things into your life. If you focus on the positive and tell yourself today I will find one more way to attain my goal, it will happen

BRAVO! I agree with you %100. I take the same approach. A year and a half ago we started a new program called: “Just Say Yes”. When a customer calls, we find out when he wants to bring the car in and we book that time. This program has increased our car counts dramatically, without sacrificing productivity or quality. It works! The problem with these management companies is that their principles are outdated. They are living in the past. Look at all your national chains. They are all car care centers, open all week long, including Saturdays and even Sundays. We live in a fast paced world. People do not want to wait. We need to listen to our customers and find what THEY want. I think those management companies can take a few lessons from you.

I have attended the same class and countless seminars like those. First, let me tell…it’s not that cut and dry as when it’s explained in those seminars. And I don’t care who is giving them. The problem is that EVERY shop is different in the way they pay their techs, expenses, overhead, etc. For example if you just purchased a new alignment machine and built a new building, your expenses are going to be dramatically differently from a shop that has no mortgage and no outstanding loans. To generalize numbers can be misleading. Plus, you don't pay your bills with %, you pay them with profit dollars! You sound like you have a good handle on your business. Your ARO is great. I would not consider cutting staff or cutting benefits. That’s a sign of retreating and that can be bad for morale. You are probably going through the same thing that many shops are going through right now, my shop included. Our fixed expenses are increasing a bit faster than our sales income. Find what is most profitable and do more of those things. Increase car counts to increase your opportunity to sell more profitable service work. Make sure you get compensated for diagnostic work and look for ways to become more efficient and productive. I would do these things before I consider raising prices. Hang in there. You also sound like a leader. Trust in yourslelf and find ways to improve!

The key to a successful event is in the promoting. Send flyers to you customers and local businesses. Contact the local newspapers, local cable company and radio stations. Ask them if they would give you media spots as a public service. You might want to tie the event around a fundraiser. This is great PR. Good luck!

Welcome! It's a pleasure to have you on board. For me, it's been 27 years in business. Take from me, in today’s business world we need to network. As we share ideas and experiences we become stronger. With all the knowledge out there it makes perfect sense to align shop owners in a common cause. Thank you again and looking forward to exchanging ideas and opinions.

Service advisors are the key people in your company. You can have the best techs in the world and it won’t matter if your service people are not providing outstanding service. I see too many service advisors with no enthusiasm and have feelings of indifference towards customers. You want your business to fail, hire bad service advisors.

Some people say car counts are not a problem if you average repair order dollar amount is high. Some say you need high car counts to have the opportunity to sell more hi-profit service and maintenance work. I agree with that. I like healthy car counts. I want to know that large masses of customers seek my service. What's your opinion?

My plan involves rewarding those who deserve to be rewarded. It also involves training and one-on-one employee meetings. A process that demands its employees to follow a system, will not work. Your employees must see the importance of the plan and how it will benefit them, the company and the customers. Our bonus plan was more of evolutionary process. We tweaked the plan for a period of years and still make changes. When your people see the benefits, they will buy into it. The most important thing I have found is that the employee needs to know what his/her minimum level of expected performance is. Also, every employee goes home with a guaranteed pay amount. It’s the opportunity to earn more income that makes the difference. Tracking productivity and rewarding people for great work will help to insure the success of your company.

I think you speak for many of us. In an effort to be the best we can be, we hire the best, offer great pay, purchase the best equipment and enroll in continuous training. All this eats into our profits. I am not saying that we should change our business models. I am saying that with the ways things are today, we need to increase car counts in order to have the opportunity to sell more work. Business is different today, but too many are running their business as if it were 1975. And the national accounts and mass merchandisers are destroying the market by advertising cheap prices. We can have it both ways. We can’t expect to attract the best people, pay them a decent wage, pay for training, invest in the best equipment and not charge for what we are worth.