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Joe Marconi
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Everything posted by Joe Marconi
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Do you track Average Repair Order Dollar Amount (ARO)? Shops with low car counts and high ticket amounts will have a high ARO, while shops with quick lanes for state inspections and oil changes will typically have a lower than average ARO. Does the size of the ticket matter to you or the gross profit dollars in your pocket? What are your thoughts? -
New York Cost of Doing Business
Joe Marconi posted a topic in Business Talk - How's your shop doing?
The cost of doing business in NY is high. It seems as if the expenses are going up faster than our sales income. How do we keep pace with cost of living and still remain competitive? It's hard to decrease fixed expenses. -
Has anyone purchased a new tool or equipment recently that’s a real winner?
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It appears that this is a universal problem: where to find new techs. What’s happening to our industry? Why aren’t we attracting enough quality people to our industry? Is it pay? Is it work place environment? Is the job too difficult? Is it due to a generation of parents that told its children to go to college and get a “good” job? I remember when I was in high school pumping gas was considered cool. But there aren’t many service stations left that pump gas these days. And I don’t think selling milk and potato chips at the local convenience store is as cool.
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A company needs to understand how a tool or piece of equipment will return the cost of the tool and continue to earn profits. How are calculating your return on investment when considering the purchase of a new tool or equipment?
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If you project negative feelings and run around screaming the sky is falling, your people will react to your pessimistic attitude and soon your entire shop will mimic your negativity. Shop Owners and managers are the leaders of the business and need to remain strong and positive. Do you find it hard to be positive or are you overwhelmed by the workday?
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No one can argue that advertising is necessary, but how do we measure how effective advertising is? I have found that advertising to my existing customer through direct mail, newsletters, reminders and emails work great. However, when trying to reach out to new customers we often don’t hit the mark. What form of advertising works best? Different companies need to explore and track what works best for them.
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I don’t think anyone would argue that the success of McDonald’s is not due to the delicious hamburgers and fries. So how can a business that sells fast food become such a worldwide giant? Their secret: systems, policies, consistency and convenience. I think we can all take lessons from the best franchise models.
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The Internet is as important to your business as the telephone. We live in a world where communication is the key to your success. Web sites, email, online parts ordering, and online information access will all help to improve the efficiency of your business and its productivity.
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Providing outstanding customer service is a must for the success of your business. But has today’s consumer changed? With so much choice and low prices bombarding the consumer, has this paradigm change? Some say people today not only demand quality service but competitive prices, quick service and other perks. Is the business model changing or are too many business reacting to a different economic climate?
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Due to increase competition and our modern global economy we have seem prices on many parts fall (brake parts, steering, etc). Many shop owners see this as a way to compete and satisfy the consumer. But, working on a 50% margin with reduced prices can be putting less dollars in your pocket. If you can sell more services by reducing prices that’s one thing. To sell the same amount of work on less gross profit dollars may hurt your bottom line.
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Many shop owners are stating that car counts are down. Is this the norm? Are we headed in a direction where there may be too many segments of the auto service industry wanting a share of the service and repair pie? In order to grow, a business needs opportunity. And opportunity starts with a healthy car count.
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The market has changed. We need to realize that we need to be competitive in certain areas (such as basic services) and highly profitable in other areas (diagnostic testing and electrical). The consumer has choice today and is looking to save. Give your customers outstanding service and charge a fair price. Understand what you need to make in order to be profitable. Sell more of what is most profitable.
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Many shop owners are stating that car counts are down. Is this the norm? Are we headed in a direction where there may be too many segments of the auto service industry wanting a share of the service and repair pie? In order to grow, a business needs opportunity. And opportunity starts with a healthy car count.
