Joe Marconi

It appears that no matter where you go these days, repair shops are looking to hire. However, shop owners also don’t want to lose the people they have now. And many of them are considering giving pay raises as a way to retain employees. This is not a bad idea, especially if your pay plans are outdated and not competitive with the current market. However, before you give out pay raises, there are things to consider. First, have you done a complete review of your labor and part profit margins to support the raises? If you are not sure, consult your accountant or business coach. Increases in wages must be in line with what your company can afford. Adjustments to prices, labor rates, part margins, and production may be needed to finance those pay increases. Another important thing to consider is why employees leave in the first place. While money is a factor, especially with high inflation, it’s not the main reason employees quit their jobs. Most people leave their jobs because they are unhappy with their boss or manager. To sum up: before you give out pay raises, make sure your company can support the increase in payroll and, equally important, create a workplace environment that gives your employees reasons to stay.

ADAS calibration is becoming an everyday service. Do you perform ADAS calibration in-house, or do you sublet it to another shop or a mobile company? And what challenges does ADAS bring to your business?

With all the different makes and models these days, and the complexity of modern vehicles, is it still possible to work on all makes and all models? To add to that, we now have to contend with electric cars. Are we heading to more specialization? How do auto repair shops evolve their business model and their target customers?

I recently read an article in Auto Success online, a publication for dealerships. It states that there is a market for used tires. I was never a fan of selling used tires. Link to article below. Your thoughts? Comments?

Great points! What are your thoughts about cities, with hi-rise apartment buildings? With tenants on the 8th floor, it doesn't seem feasible at this time to own an EV in that situation.

Wow, good for you! What type of shop are you, general repair, or specialize in certain makes/models, etc.? Also, when you say the techs write the estimate, do you have a service advisor staff? Who interacts with customers?

I tend to agree with you. Too many things are changing also, and who knows what technology will bring out in the next few years.

Great points! I too, before I went into business, did side work to earn additional money. I also work for a tow company on Sat and Sundays. I also know techs that make a great income but still have their side-work lined up. This topic does have a lot of twists and turns.

Again, Frank, right on point. I am right behind you at 67. And yes, for the first time since high school, I have the right balance. In fact, I am writing this from my son's home in California, staying here until August. Get your plan together and reach out to me if you have questions. But, do what's right for you.

Frank, I think you hit the nail on the head. For those that hate what they do, ending a career would be easy. For me personally, I always enjoyed what I did. My original plan was to wait until age 70, but with all that I was doing, it just wasn't in the cards when I began to be approached by buyers.

All great points, Frank. Middle America does not have nearly the amount of EVs as the East Coast or West Coast. And a restaurant of some kind, near a major highway with adequate parking may be an idea worth looking into. For me, my advice is to wait and see. Too many variables at this point.

Every shop owner has different needs and approaches life and business differently. It sounds like you have done an amazing job at building a solid business while creating a great workplace environment. For me, selling my company last year, was the right decision for me, to pursue other interests. Although, I do miss the shop, can't deny that. Great to hear from the "kid"

I will be presenting the Elite Fly with the Eagles course with my fellow Elite business coach, Kevin Vaught. The course will be held in Indianapolis, Oct 4 to 6. This is Elite's premiere shop management course for shop owners and managers. Hope to see you there. For information and to enroll:

If you are going to the Ratchet and Wrench Conference in September, please let me know. I am honored to be selected as the keynote speaker. I will be speaking about my message and takeaways to the industry after selling my company. Hope to see you there! Joe

With the massive push from car makers to build more electric vehicles in the coming years, does it make sense now to install an EV charging station? What percentage of your current customers own EVs? And do you have customers asking questions about EVs?

Do you use a digital inspection program? If so, how do you feel it helps your workflow and sales. What are the pros and cons of the program you are using?

Wow! Thank you for sharing this. After 41 years as a business owner, and nearly 50 years in the business, I sold my last location this past Dec. 2021. I really thought it would be easy, but it isn't. I agree with you 100%. My work was my identity. And even with all the struggles and challenges and disappointments, I have no regrets about being an auto shop owner. In fact, I do miss it. Luckily, I am involved in the industry, working with Elite Worldwide as a coach, trainer, and other duties. And I write for Ratchet and Wrench Magazine, And Of course, cofounder of Auto Shop Owner. I am also 67 years old too. Get involved with something, we all need to have an identity, and sometimes that is worth more than money. It won't totally replace being a shop owner, but it helps.

Most shop owners I speak to are having banner years. They are as busy as ever and booked with quality, profitable work. With the uncertainty of the economy, will it last? Should shop owners prepare for a downturn?

Moonlighting, side jobs, side-hustle. It's all the same. Many techs work after hours to earn more money. How do you feel about that? Does it interfere with the job you employ them for? Do you feel it lowers the professionalism of our industry? Other comments and opinions?

Throughout the years, I purchased either Ford F250 or Chev 2500. Both HD. The last truck I purchased was a Silverado 1500, with HD package. And that worked out fine for us too. I felt that these trucks suited my business needs. I needed a truck for general use for the repair shop, road calls, plowing and hauling. Hope this helps. One other point, speak to your accountant on how to expense any truck you purchase. This can help you on taxes.

You have a lot going on, with the potential to grow your base business and revenue streams. I think the key thing here is what you said earlier, "I might pivot sometime in the future..." Great content, thanks for sharing so much info! Every business is different, no such thing as a cookie-cutter repair shop business.

It is obvious you have a good handle on your business, and you don't try to be everything to everyone. One last question: What is your income/revenue driver? In other words, what type of services are generating the greatest amount of sales and profits for you?

Agree, good points. For people with money, it may not matter. But, do you think for people on a strict budget, maintaining their existing car will pay off down the road?

Well said! It would be good to hear from the group what steps they did to help secure their financial future.

Exactly what I was referring to. Many shop owners that rent, have used the business to provide for their families and to build wealth while they are in business. I agree; there's more than one way to skin a cat. (Can you say that these days?)