Joe Marconi

On 6/7/2022 at 3:22 PM, Mike DelaCruz said:

A topic that I’ve become more and more interested in is the future of our industry, specifically when it comes to Technicians.  I returned from the Spring Leadership Days in Orlando by Auto Care Association with an entirely new outlook, continuously reminding myself:  What can I do to help strengthen our future?

As I scroll through my Facebook feed, reading through various forums and private group comments, I constantly hear about the Technician shortage and have been over the past few years.

Does that raise any concern that we’re still talking about this after several years?  

As I read through the comments in hopes to find solutions, regrettably the majority of the comments are not solutions to the problem.  So, my hope is to find a solution and identify what action I can personally take to help strengthen our future and do my part.  I don’t want to spend anymore time talking about what we already know (tech shortage), and watch our industry reduce to rubble in the years ahead.  Not on my watch… and I know a lot of you are with me!  Days turn into weeks, weeks turn into months and months turn into years.  Let’s not wait!

As I visit shops around the country, which is my favorite thing to do, I notice a common pattern in the workflow.  Nearly 70% of the shops that I have visited in the past year have empty bays.  For example, a shop in the Bay Area I visited recently had 8 bays, but 4 were empty.  They had 2 Technicians, who both told me they’re extremely busy and this has become the “norm” until they hire more Technicians.  

Of course, the owners have “tried everything”, but what does that mean?  Have they really tried “everything”, or are they looking for a band-aid to fix the short-term problem and not thinking about a long-term solution and preparing for the future?  

Shops are busy right now and business is booming for most.  So even though they have the Tech shortage issue on their minds, it’s less of a priority right now because they’re busy!  It reminds me of what one of my favorite industry coaches (and friend) told me one time about “Panic Marketing”. Business slows down, then we expect our marketing company to step up some SEO or Ads and get cars in today, when in reality you have to plan out your marketing 6-months or a year in advance.  

So what do we do when we have empty bays and a Tech shortage?  Many will simply place an Ad on Indeed, cross their fingers and hope for immediate applicants! That quick-fix strategy will never work.  But what will?  

There are shops out there with effective strategies that actually work well.  Look at what they’re doing and get some ideas.  Joe Marconi has some awesome tips on hiring great people.  Having worked directly with Joe, I’ve seen the success firsthand.

But for me personally, I’m more interested in the long-term and getting the “younger generation” interested in our trade.  I think this will help shape our future.  But how do we do this?  Someone once told me, if every shop ran an Apprenticeship program, this would help solve the problem.  

Is that the silver bullet?  If not, what is?  

 

Mike, I agree with you 100%!  You make a great analogy with what happens when business slows down and shop owners go into, as you say, "Panic Marketing." 

It is up to the shop owners to build the workforce of tomorrow. And we do need to get the younger generation interested in this amazing industry.

If half the shops in this great nation of ours started an apprenticeship program, we could solve the tech shortage in a matter of a few short years. 

14 hours ago, Transmission Repair said:

I rarely did exit interviews.  The few times I did conduct an exit interview, I did learn something.  Most of the time I either fired somebody or they quit; no exit interview for those ex-employees.  I've only regretted somebody leaving our shop 3 times and I still regret those guys to this day.  It's an uncomfortable situation for most, me included.

I  tend to agree with you. Even after 41 years in business, letting someone go, no matter what the situation, was uncomfortable. 

1 hour ago, tomkatv10 said:

Always respect your insight, Joe, but this one I disagree with. We always send the report first. We alert the customer they will be getting it and we’ll follow up within 30 minutes or they can call us. DVI’s got  my shop to it’s first million revenue and we haven’t looked back. Our customers love the report and are referring other customers because of it. My advisors have enough to do in the course of the day. This makes their job so much easier. And it sells the work by itself. That way my advisors can be advisors and not sales people. 

All great comments. And it's ok to disagree.   That is the purpose and the reason for the forums. There are many ways to achieve great results. A process or a tool has to work for you or modify it to accommodate the way you conduct business. 

One point, you do alert the customer that they will be getting the DVI report.  This, in my opinion, is better than sending the report blind, where the customer is not expecting it.

Great conversation. 

1 hour ago, xrac said:

We are definitely on shorter hours. No more Saturdays at our place. Covid was good for something. It made us cut out Saturdays. 

Other shops also found out that they didn't need Saturdays. COVID did bring change to many businesses. 

When I started my auto repair shop in 1980, it was typical to work at the shop 50 to 70 hours a week.  More than half of that time was working on cars. I kept that work pace for over a decade. I know that many shop owners of my generation did the same thing. 

That's all changed now. And for the better.  More shop owners today understand that their leadership roles are critical to their success and the best strategy for the welfare and development of their employees. 

Jump to the link below for a few quick stats on the different roles of today's shop owner. 

In a recent Wall Street Journal article, automakers are asking the European Union to hold off on their 2035 plan to ban the sale of gasoline-powered vehicles. Automakers state that the disruption would be too great for auto supply companies and that the charging infrastructure will not be ready in time for the ban. In addition, the shift would cause big job losses.  

How do you feel about EVs? 

With so many different models on the roads these days and the challenges of obtaining all the necessary training, tools, and technical information, should auto repair shops consider narrowing their focus on fewer makes and models?  

Is "All Makes, All Models" really achievable today? 

Digital Vehicle Inspections (DVI) are becoming more and more common these days. I think this is a good thing. 

What I am concerned about is how the the DVI report is being used.  I am not a fan of sending the digital report to the customer to be used in place of the service advisor speaking and explaining the results of the report first.  Would a doctor send the MRI, lab tests, and x-rays directly to the patient without the doctor first discussing the results?  In fact, there are times when the doctor never shows the report results. 

In my opinion, the DVI is a tool, and it's not meant to take the place of good old fashion person to person discussion, which is called customer service.

Agree? Disagree?  

The only time I have done an exit interview is when a really good employee gave me his/her two-week notice.  If I fired someone, I didn't bother to sit down with that employee, it was too uncomfortable for me. Maybe that was wrong?

People quit for a number of reasons.  All of us quit our jobs to further our personal careers as shop owners. Some people quit to pursue other careers. Some quit because they believe they are working in a toxic work environment.   

I do think there are lessons to learn with every employee that is leaving your company, for whatever reason. 

Do you perform exit interviews?  Are there lessons to learn? 

The Elite Invitational was a huge success, with many great shop owners attending. The guest speakers were amazing, and the customer panel gave us their perspective on how they view auto repairs, the independent repair shops, and the new car dealers.  An information-packed event! 

Remember COVID?  Many shops suffered because of their lack of cash reserve. 

While no shop could fully prepare for an economic event like COVID, it is crucial that you build a cash reserve.

What cash reserve do you have? How much cash reserve should a typical shop have? 

Got your attention?  Good.

The topic of the tech shortage has been discussed, kicked around, and debated now for decades. It is nothing new. So, what are YOU doing about it? 

If we wait for some "entity" to solve our tech shortage, we will be waiting forever. 

Here is what I think, and tell me how you feel about this:

1. All shops need to start an apprenticeship program
2. Shop owners need to attend career days at the local high schools
3. Shop owners need to reach out to tech schools and post-secondary auto tech schools and let them know of their apprenticeship program
4. Shop owners need to improve the work environment to increase their employee retention rate
5. Shop owners need to sit down once a quarter, do the math, know what they need to be profitable, and put a plan together to raise their employees' wages, including their own! 

Thoughts? Comments? Opinions? 

With high inflation appearing to be an issue for the foreseeable future, I feel it is critical for shop owners to continue to promote the value and benefits of doing business with you. 

Are your customers holding off on needed services or repairs? How are shops dealing with inflation?  And don't forget, inflation affects YOU too. 

I will be at the Elite Invitational next week and also making a presentation on "Identifying Your Ideal Customer." 

If you are attending the event, please let me know. I would enjoy getting together. 

For more information, click the link below. 

Let us all take time this Memorial Day weekend to remember and honor those who have died while serving in the United States Armed Forces, protecting this great nation! 

1 hour ago, DUFRESNES said:

The grumble right now is we haven't had a raise for a long time and everything costs more and myself as the owner never made so much.  No clue how to run a business.  This is how employees think  I am going to have a meeting with each one.  So the 1st one is a B tech.  He is a good tech, but has some bad habits late for work by a few minutes, sick alot for just 1 day at a time and the biggest won't try again to get ASE certified.  With that said his pay is $16.00 an hour Plus 5% on sales labor and parts he does and 5 %   With just sales and commission for 1st quarter 2022  is 23.40 per hour or with aflac, bonus, 401K match and holidays is $25.53.  This doesn't include parts at cost, vacation and bonus

How do I convince him this is better than just a flat dollars raise.  I would really like to raise his commission instead.  We are a busy shop with very few slow days.

There are a lot of components to this, and I just want to throw a few things out there. First, let me say that these issues may go deeper than what I am reading. 

When dealing with employees, it all starts with having the right people.  When an employee has issues that seem to linger without a resolution, there may not be much you can do. People are who they are. 

I think you are doing the right thing by sitting down with everyone and getting their perspective on things. Be open and show you care. 

Every shop needs to do the math and make sure that the company is profitable enough to make any increase in pay. If at all possible, come up with a plan that gives the employee a competitive base wage with the opportunity to earn more, much like you are doing right now. 

There are many ways to incentivize employees, but it all starts with knowing how the employee feels, and what are their goals and needs. 

But remember, the wrong people will drain you, so make sure you have people that are worth your time, efforts, and money.

Boy, I hope this helps. Please keep us posted. 

As a business coach, I am often asked, "What's the best ratio of Service Advisors to Technicians?" 

The answer, in my opinion, is not straight forward as you think.  It depends on the type of work you do, your weekly car counts, and how your team is structured.

My shop was general repair, with car counts of about 120 per week. We did a good mix of service work. We had six techs and three service advisors. I found that this was the perfect ratio for me. One of the Advisors was also the manager but was involved in writing service.

You need to look at your particular operation. Do you have support staff that helps at the counter and on the phone?  Are the bulk of the jobs you do heavy repair, such as heavy trucks? Are your car counts low with a high ARO, such as EURO specialists? And, do you have a parts person helping to procure parts?  All these factor into the equation.

With that said, What is your perfect ratio for your shop? 

Marty Long from Hills and Dales Auto in Ohio hosts an annual car show each year.  He gets over 200 cars to sign up for it. A great community event and great marketing to promote your shop. Of course, you need to have room in your parking lot. 

But maybe smaller events can achieve the same thing?  Have any other shops held community events? 

With run-away inflation and the never-ending increase in gas pricing, auto repair shops in the Northeast are cautious.  While 2022 so far has been very good for most, the fear is that the forces that eat away at the consumer's discretionary spending will also affect their ability to pay for recommended services and repairs. 

How are you dealing with this? What strategies could we share? 

A recent survey from The Muse found that 72% of people that left their jobs are not happy, and nearly 50% would consider getting their old job back.  So the question is, would you rehire someone who left you recently, and is now not happy?  

Source: 

7 hours ago, xrac said:

Man I had never even considered this. Fortunately by the time this comes full circle I’ll be retired.  

I know, a lot to consider. And makes you wonder what other technology will be coming in the future years.  My biggest worry was learning fuel injection and electronic ignition. 

Boy, thinking back when we had points, condensers, carburetors, 4-wheel manual drum brakes, no power steering.....the good old days????  Not really sure. 

4 hours ago, xrac said:

Joe I think it will definitely impact. We have a house rented in Destin Florida in four weeks. I am trying to figure out what to drive to Florida instead of my gas guzzling Lexus GX460.  I have to drive some thing. The house rental is paid and can’t be canceled. Should I take my wife’s convertible or our granddaughter’s Lexus ES350? Just thinking out loud. 

Frank, I think just about everyone is thinking about how to save in so many areas. Going out to eat is more, gas is more, groceries are more, Etc. To fill up a tank these days for most is about $100.  That is insane. 

With that said, shop owners need to remain the voice of reason and come up with sound positive solutions.  I know it's hard, but getting sucked into the consumer's drama will only make things worse. 

Thoughts? 

As of today, May 18, 2022, the price of gas is over $4.00 per gallon in every state of the U.S., with prices in states like New York and California way over $5.00.  

Are you seeing a decrease in consumer driving?  Do you think this will hurt the summer season when so many people plan road trips, that help auto repair shops with all the related services and repairs? 

Lastly, what's your plan to help your customers, and also help you to maintain sales during the road trip, and vacation season? 

May 17, 2022—Drivers of Mercedes ML-, GL-. and R-class SUVs from 2006 through 2012 are being asked by the automaker to stop driving them immediately, according to a WQOW report.

Mercedes has asked vehicle owners to have their brakes inspected for brake booster corrosion. If the brakes are performing normally, the automaker will require owners to have the brakes re-inspection within two years. If the brakes need repair, the booster will be replaced at no charge. Mercedes will provide free inspections and towing of vehicles for inspections and repairs, as well as help with setting drivers up with alternate modes of transportation while their SUVs are being repaired.

25 minutes ago, juanpablo4219 said:

Good day.

ADAS is my next adventure/challenge. I have been studying this for about a year. 

What I have learned so far... the technology is in the cars but not so much for the aftermarket repairs shops..
At this time, It's still very expensive for a shop to make such a large investment. There's no universal/one fit all equipment able to calibrate all models or cars.
It requires an enclosed bay with a level floor, lighting(and why not A/C too😁) an extensive knowledge of alignment and be familiar with the different systems that are calibrated, able to diagnostic and trouble shoot electrical problems(at some point), It should be ez, I dare to say.😂

Here's my question, where do we get the training to have a better understanding of such systems?
...Things that I have encounter, sales people sale, tech installed and the training is very poor, since the tech does not do the work daily with the systems.
I would like to know who's the "Guru" on this type of systems, If we have to attend a training that would make us feel comfortable on doing this type of service.

If we can get some answers to this questions, it would make us more at ease in performing this task.

JP
Brake and Front Shop

All great points! There is a lot of training available these days. The ones I have used are the following:

• World Pac training
• CTI (CARQUEST Technical Institute)
• NAPA
• ATTS - Automotive Technician's Training Services

In addition, speak to companies such as Hunter and Snap-On to see what they are developing. 

Good luck!