Joe Marconi

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?

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.

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

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

It's officially July, which means the NAPA Expo is this month in Las Vegas! If you're going, you aren't going to want to miss Bob Cooper present The Top Shop Playbook for Finding & Hiring Top Techs. Bob will be discussing what it takes to create an incredible compensation & incentive packages, and how to create a principle-based culture that fosters growth and development. You'll also learn how to make offers to the superstars that are truly irresistible, and you'll discover easy to apply ways for you to connect with the stars that you are looking for! Mark your calendars, Bob will be speaking Tuesday, July 19 at 1:00 – 2:15pm & 4:30 – 5:45 p.m., and Wednesday, July 20 at 2:45 – 4:00 p.m. Learn more here!

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?

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.

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.

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!

You have earned the right to do what you like.

Family. Number one, most important in my book.

This is nuts. The time spent chasing down parts and tires does eat into profits.

I thought this article from Ratchet and Wrench was an interesting perspective. Let me know what you think? Joe Marconi Is It Time to Raise Your Labor Rates? May 27, 2022 Nolan O'Hara No Comments With increasing costs and rising inflation, many shop owners realize it may be time to raise their labor rates. But it’s always a battle. There are several factors to consider, including customer satisfaction. Every shop owner needs to keep their pulse on the industry and make sure they're running an effective business, but when do you know, and what steps should you take when you’re considering raising your labor rates? The Backstory Andy Massoll, founder and CEO of The Detroit Garage, has been working in the auto industry for over 20 years. His father opened their first store, Curt’s Service Center, which Massoll still operates as part of The Detroit Garage auto family. Massoll understands the battle shop owners go through when considering raising their labor rates. He also knows there’s a misconception in the industry that gets a lot of shop owners into trouble: the difference between a door rate and an effective labor rate. The Problem It’s difficult to run a shop, and it’s certainly not easy to find and keep professional technicians. It’s vital to know your numbers. Massoll bases his labor rates on his effective labor rate, analyzing his wages and costs. Massoll says understanding your effective labor rate is critical and provides a better insight into your true costs, including the costs of obtaining and keeping your skilled labor. “If I can’t obtain or retain (professional) talent … that is when, clearly, I need to pay more,” Massoll says. Shops need to control rates to balance customer expectations and run the business. The Solution Massoll keeps a close eye on his shops’ productivity. That means understanding how many billable hours your shop is producing and comparing the number of hours worked. Understanding where your productivity is at is crucial in determining raising your labor rates. “You can’t begin to make an educated guess on what (the) labor rate you should charge is until you truly know your labor costs,” Massoll says. “And it’s hard to know your labor costs if you don’t understand and know your labor proficiency or productivity.” Close supervision is key, but you don’t need to write it all out on a whiteboard. Massoll uses a software program to make sure he has a keen understanding of his shops’ productivity. Their goal at The Detroit Garage is to always be at 100 percent productivity overall. That helps Massoll understand when it’s the right time to raise his rates. Additionally, Massoll is on top of his numbers. He spends time in the weeds, analyzing his total number of labor hours and the labor dollars they sell per store over a month, comparing that to his employees’ wages, and understanding the true costs of his business. Massoll knows when it’s the right time to raise those rates because he’s spent the time analyzing his numbers, working to keep on top of a gross profit goal of 70 percent to 72 percent on labor. The Aftermath Eventually, there comes a time when it’s necessary to increase those rates, and Massoll has done so fairly recently. Economic factors are also important to consider—factors like rising parts costs and inflation. As inflation soared to around 7 percent in 2021, Massoll gave all his employees a 7 percent pay rate increase to counter that economic influence. Because of that, he increased his labor rates. The Takeaway With prices going up everywhere, Massoll’s biggest piece of advice for other shop owners is to charge appropriately for your work. He says too many shop owners think of the decision emotionally, wanting to help their customers. Massoll acknowledges it needs to be a factual and calculated decision. Massoll notes that he once had a long-term customer come in, who, when he paid for his bill, asked, “That’s it? That seems too cheap.” Massoll explained to him that he was a good customer, and Massoll wanted to take care of him. The customer told him, “If you don’t charge me appropriately and be profitable in your business, and you go out of business, how does that help me the next time I need your service?” That’s a lesson that’s stuck with Massoll through the years. “This industry is full of very good people; our business is in helping people. People have car problems, and we help them,” Massoll says. “But we do that for a monetary exchange. And too many business owners run their business with their heart, and when it comes to business, you have to be profitable.”

Now that I am not a shop owner, I had to make an appointment to have the A/C checked on my wife's car. While the vehicle was being serviced, the tech noticed a bubble on the tire. I told the service advisor to get me a good set of Michelins. He said that might be hard since he had trouble getting some sizes and models. My wife drives a Mercedes E350. Are you seeing tire-related shortages too?

The Summer is in full swing, a time when many people take vacations and also spend time engaging in their favorite hobbies and activities. How do you spend your free time?

I will never forget the day when a customer, who didn't like the price, took cash out of his pocket, crumbled up the cash, and threw the money at me. This customer clearly crossed the line, in my opinion. Before I tell the rest of this "true" story, I would like to hear from you: How would you have handled this situation?

As an auto shop owner and a business development coach, I know from experience that there are countless ways to create employee pay plans. From hourly, flat-rate, salary, incentive-based, performance-based, team bonuses, profit sharing, on and on and on. However, the question is: are your pay plans legal? To complicate matters, overtime and minimum wage laws differ from state to state and may vary from county to county within a state. Wage and hour laws are ever-changing too. Here’s my advice to shop owners: Consider hiring a wage and hour labor attorney or retain a human resource company specializing in wage and hour regulations to review your employee pay plans. You cannot leave it to chance. All it takes is one disgruntle employee to make a claim against you, and your life could be hell. You should also have your pay plans reviewed every few years and any time you change the details of a plan. Effective pay plans can considerably benefit your auto repair shop and incentivize your employees to reach their goals and company goals. In addition, great pay plans can help retain valuable employees. Protect yourself, your business, and your employees – Ensure your employee pay plans are compliant with federal, state, and local laws and regulations.

HA! I know!!!!!

Wow, amazing numbers! viewpoints That's the beauty of a forum like this, we get to hear all viewpoints, strategies, and opinions!

Interesting. Do you think a lot has to do with the fact that you were in the transmission business, and needed to reach out to a different clientele than most traditional auto repair shops that tend to build long-term relationships?

October 4 - October 6, 2022 Fly with the Eagles The Industry’s Most Powerful Shop Management Course This is a 3-day course, with each day devoted to a new topic, but you have the option to pick and choose the days you’d like to attend. October 4th-6th, 7:30am – 5:00pm EST After attending this comprehensive course for shop owners you will be able to Improve your skills in time management, leadership, and goal setting Fully understand your shop’s financials and key performance indicators Find and hire superstar service advisors and technicians Turn your existing employees into self-motivated superstars Fill your bays with the right kind of customers through new marketing programs Utilize your step-by-step Action Plan to ensure your ongoing success This AMI-accredited course has one objective: to help you create a more profitable, successful business! Bob Cooper built this course from the ground up based on his own success as a shop owner and his experience in helping thousands of other shop owners go right to the top. This series is now presented by Joe Marconi and Kevin Vaught, who have both experienced extraordinary success as shop owners as well, so it’s no surprise that Fly With the Eagles II is heralded by many industry leaders as the most powerful shop management series available to shop owners and general managers. To learn more and to register: https://eliteworldwide.com/event/fly-with-the-eagles/