Joe Marconi

19 hours ago, DUFRESNES said:

It is very expensive to lose an employee, especially a master tech.  We just hired a new person.  We have to pay top wages and top benefits to keep the best.  Weather you pay flat rate, salary or combo.  Make sure the tech knows what he will be capable of making.  He is looking out for himself and his family.  Maybe we should do a forum on benefits.

Great post! And right on point here! 

You bring up two very important points: One, how do create a workplace environment and provide benefits that help with employee retention, and two; how can we offer a pay plan and benefits package that attracts quality people?  You are right, it's not just about the employee, it's about their family too. 

I made a post in the Health Insurance and Benefits, under the Human Resources forum. 

9 hours ago, xrac said:

Owning is the only way to fly.  Our property is not paid off yet but isn't too far off.  However, every month it puts about $4,000 cash in our pocket plus the indebtedness is reduced by over $2,400.  This means the real estate is producing over $75,000 in direct income and increased equity combined.

 

Now that math adds up in your favor! Nice! 

9 hours ago, xrac said:

I put up with a lot of stuff but eventually have a breaking point.  Then I set the customer straight.  They usually never come back again or straighten up.  Either way the problem is solved.  In 23 year years I have told about 3 people tp leave and never come back. My style is to put up with a lot until you make me mad then I push back hard.  My service writer usually will take no lip but immediately lets them know how the cow ate the cabbage. Both of our styles seem to work but I put up with more than he does. 

I too have a breaking point. However, the older I got, the harder it was to remain calm when a customer crossed the line.  I always tried to maintain my composure and my professionalism, but I have to admit, after decades of dealing with the public, it wasn't easy.

I always told myself and my staff, that the bad apples are rare, and that the overwhelming majority of our customers were amazing. 

5 hours ago, Jodie said:

I have several male customers who have stated openly to my face that they hate women or think they're stupid.  I usually tell them that shouldn't matter, because they aren't going to have to deal with any of my girl stuff anyway.  I have told 2 to get the heck outta our shop, and they did.  One keeps coming back.  So I told him he can keep coming back, but here are the rules...if he is insulting, I add labor because it takes work to put up with him.  (He thinks that's funny).  He kept it up, and I just started calling out numbers.  He asked what that was, and I told him that was the rising stupid tax I was adding to his bill because he is insulting the very person giving him an estimate.  Yes, he escalated it.  Turned into a standoff.  I also added $50 to the estimate.  When he was given the total, he was told that the extra $50 was added because of his abuse.  He laughed and had no problem paying it.  So hey, he thinks it's funny, I have thick enough skin to tolerate him, and I get to buy a new something for myself every time he's in, because he can't resist nasty comments about women.  I won't change him, but I can make it worthwhile!  (And no, $50 is not the going rate to insult me...shop joke now!)

Well, first of all, I really don't like the insults to you as a woman. Unfortunately, there are a lot of stupid people, and they are stupid to everyone! 

Now, I never did admit this before in public, BUT I would do the same thing you did. When someone was insulting and hard to deal with, I would intentionally raise the estimate, the more he talked trash, the higher the estimate. This "stupid tax" can add up.  

You are right, you cannot change him, so apply the "stupid tax" when needed. 

Great post! Enjoyed reading it!  

20 hours ago, NATURE said:

When I looked around for shops, the typical lease payment was $3000.00 a month.  My mortgage payment is $3000.00 a month.

Another great consideration.  In most cases, especially over time, buying property is a better financial decision than renting. 

4 hours ago, DUFRESNES said:

I am so excited, this is an update to Air conditioning.  We purchased our 1234 YF in December.  Robinair.  Then tech tells me we need a gas tester for leaks.  We just got it, then we find out you need a tank with 95% Nitrogen and 5% Hydrogen.  Yeah it works on R134A and 1234YF  This vehicle had a very small leak and it showed right up.  I was told this is what the professional HVAC people use.  So as I see it, we won't have to be doing R134A over as warranty.  We should be able to do it right the first time  Master tech said it would not have found the small leak the way we had been doing it.  We charge $225 for R134A and $550. for 123YF.  Hope this helps anybody thinking of jumping in the Air Condition field.  

 

Great information! Thank you for sharing! This is the power of Auto Shop Owner; sharing and exchanging ideas and strategies, and knowledge. 

4 hours ago, vbtoytech said:

My dealership has been doing a lot of re-hiring as they are desperate for technicians.  It sours the atmosphere, as these guys were gone for a reason.

That is a great point. So, when they rehire a tech, it hurts the workplace morale? 

3 hours ago, Jerrys Auto Center said:

“The moneys in the dirt!”… A comment that been made to me numerous times… And Yes it is!!

I purchased my property 1998… 

1) Certain months when I couldn’t afford to pay ME rent… I didn’t throw ME out!

2) My commercial property is my main and largest  retirement asset, I’m 66 now.

3) I did, what I did, when I wanted to with the property. 

4) In the 22+ years MY repair shop has paid ME just about $1.5M in rental income. MY Used car lot has paid ME just about $1M in rental income. 

To me…

The moneys definitely in the dirt!! 

All great points.  Hard to argue with those facts!

2 hours ago, Charlie said:

Morning, Joe

Our shops are affiliated with Technet, there are two primary reasons behind the why. 1. is the ability to offer a Nationwide Warranty, and 2. is financial. We maximize our rebates using early pay, online ordering and threshold spending. While I know our prices may not be the lowest, the rebates amount to 8% of total purchases, that is a significant amount. We are also using their equipment buyback program, over a 5 year period (if our spending remains above the threshold) we will have recouped $88,000 in equipment expense. This was negotiated using our financing, which was a preferable interest rate. 

While we are affiliated with Technet, we choose not to promote our affiliation in any way. We do not allow any signage, and promotions or posters, and no handouts. My brand is just that, and I see no advantage to share our efforts with any third party. It may be a personal gripe, but I dislike the name - Technet. That name only confuses the consumer, and we certainly want to avoid that. I am grateful for the affiliation, however I manage the relationship by my terms. 

Charlie, great to hear from you.  

Wow! You stole my thunder for my follow-up question: How do feel about cobranding!  

I was part of the CARQUEST Advisory Council way back in the mid-1990s when we were discussing the idea of launching a national program. One of the biggest debates was co-branding and the name, TECHNET.  All the shop owner members agreed that they wanted to remain independent, and promote their own brand. 

I agree with you. While I do believe there is great value in being part of a national program like TECHNET, your brand in your community must be strong and should speak volumes. 

Great points Charlie! 

Over the last few decades, we have seen part companies create alliances with auto repair shops. Perhaps the most well-known are NAPA Car Care and TECHNET. 

Are you affiliated with a group like this, and what benefits do you see as a member? 

Years ago, I had a "No rehire rule." My thinking back then: If someone quits and I rehire them, does that send the right message to the other employees? That they can leave and I would take them back?  However, we are in different times.

Employees, especially techs, have left their jobs in recent years, lured away by better pay, in many cases. But, these employees soon realized that a job (a career) is not all about the paycheck. 

What would you do if an employee came back to you, asking for re-employment? 

July 7, 2022—As another delay impedes progress in the Right to Repair battle, the Automotive Care Alliance is asking its members to step up their support of the proposed legislation, ‘Right to Equitable and Professional Auto Industry Repair (REPAIR) Act’  (H.R. 6570), which puts the power of automotive repair choice into the hands of the consumer and allow independent repair shops access to pertinent tools and data to help these customers.

Read More: 

One of my goals as an automotive shop owner was to own my property.  Which I accomplished in 1998.  Owning the property came me more options when it came time to sell my business. This is my perspective.

I have spoken to other shop owners, and they think differently. Some rather secure a lease with great terms and leave the responsibility of the property to someone else. 

What's your opinion?  What are the pros and cons of owning your property and leasing the property? 

On 7/5/2022 at 11:53 AM, xrac said:

Recently I lost a young guy that I invested a lot of extra time and money into because he and his wife had a complicated pregnancy and birth. Then surgery on the baby and then they lost her through tragic circumstances that they probably partially blamed themselves for.  Needless to say his productivity was through the toliet.  He then eventually went completely off the rail and disappeared and eventually quit.  I guess he easily cost me at least $6,000 or more with all the drama, extra things I did for them, come backs, and lost productivity. Then I had to bring someone new in and start all over.   

Wow. What a story.  There are times when people cannot overcome tragedy.  And sometimes in spite of all your honorable efforts, the only person that can help is themselves.  

57 minutes ago, weighit said:

Years ago I learned how expensive it was to hire a new emp;oyee without any experiance in the field of our business. With the maistakes and costly errors in learning it didn't take very long to realize it was much cheaper to keep the guys I had without having a big turnover. Making them feel wanted, thanked them for their work and desire to do a good job. Then came pay, I paid the fellows I had dollars more than any of the competition paid. That ensured that my guys would not be leaving to go to the other guys and lose money. I made sure the benifits were way above the competition too. In the 10 years i owned that business, one fellow was there 3 week short of 10 years, the newest employee had 6 years seniority. the other guys fell in between 6 years and 10.  Turn over was nil and over the years I felt paying them more made me more, Not all business owners feel the same way, But I had a very comfortable living and actually enjoyed going into work with a crew that also liked being there. Worked for me.

Great post! The industry can learn from what you have learned!

19 hours ago, xrac said:

I thank God for the freedoms we have as Americans and wish a happy day to you Joe and to all that frequent this forum. 

Agree, Frank. So much to be thankful for. 

This topic has been discussed before, but I think it's more relative today than ever. 

Smart auto shop owners understand they need to constantly recruit, but what about keeping the employees we have now? 

Let's revisit this topic and discuss your retention strategies and other comments on keeping your valued employees. 

I want to wish everyone a Happy July 4th Holiday!  Let us take a moment and also celebrate the birth of this great nation we live in. 

The Fourth of July—also known as Independence Day or July 4th—has been a federal holiday in the United States since 1941, but the tradition of Independence Day celebrations goes back to the 18th century and the American Revolution. On July 2nd, 1776, the Continental Congress voted in favor of independence, and two days later delegates from the 13 colonies adopted the Declaration of Independence, a historic document drafted by Thomas Jefferson. 

Source: History.com

In spite of gas prices nearing $5.00 a gallon, people are expected to take to the road in record numbers this July 4th holiday, according to the AAA and the Wall Street Journal. This is potentially good news for the automotive aftermarket. 

Are you seeing an increase in your customers preparing for road trips? 

20 hours ago, bantar said:

At the 6 mega apartment complexes near my shop, how will all 600 residents charge their EV?   Does the apartment complex tear up the parking lot and install chargers at every spot?  Do they put in 100 chargers and everybody place parking lot shuffle?  Or just stay with the 2-4 token ones that they have now.

I've said it before and will continue to say it.   INFRASTRUCTURE is king.   Cost to deploy complex infrastructure kills many interesting projects.

EV will be here forever.  It's not for everyone. 

Great points! Agree!  Our infrastructure at this point does not make the EV practical.  This problem must be solved. 

I read that there is a company that is developing a charging system built into the roadways. As your EV drives down the highway, your car is being charged. In my mind, this opens up a countless amount of questions and issues. 

21 hours ago, DUFRESNES said:

My belief is keep doing what works and look for new ways to wow your customers.  It works.  Track all marketing.  This is our best year ever.  I believe, when new cars become available, we will see a change again.  As a small business, we can be ready to adjust and adjust to what ever is thrown at us.  

 

You bring up a great point. Change will happen again. We cannot become complacent,  we need to keep pushing and wowing our customers.  Great advice.

18 hours ago, DonnieJ said:

In the shop at least, because I'm there almost every day (by proud choice) I like to expect the next customer to call or come in while cleaning my tools and equipment. That way when the next customer miraculously comes in they're impressed by how clean everything is. Otherwise, I'm searching for forums like this lol.

Ha! I can relate!

I was always been a firm believer in being in the trenches with my staff. I did my best to balance life, family, and business. Very hard at times. As I got older, it became more and more important to put more emphasis on the things money cannot buy. 

As we continue to move forward it will also be our people skills that will be our best strategy in business and in life too. 

Great conversation! 

38 minutes ago, Transmission Repair said:

My kids live out-of-state 1,500 miles away, so I rarely see them.  However, my wife and I spend time doing what we like.  She loves to cook, sew, work puzzles, and play computer games.  I spend my days sitting on our deck, reading books, reading the newspaper, watching YouTube news stories, watching TV and reading and answering forum posts.  It's a life of leisure with no schedule or commitments outside of the Honey-Do's.  I do occasionally go to the senior center to eat lunch and mingle with other retirees.

My sister once told me, "Larry, you do a whole lot of nothing."  And that's the way I like it. 🙂

You have earned the right to do what you like.