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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. Joe Marconi
    I am honored to announce that I will be the keynote speaker at the Ratchet + Wrench Conference in September 2022. If you are planning to go to the conference, please reach out to me. It would be great to get together. Below is more information on the conference. Joe Marconi
  2. Joe Marconi
    Doctors do it, dentists do it, hairdressers do it, nail salons do it, oil burner service companies do it, veterinarians do it, Chiropractors do it, and chimney cleaning companies do it...Why is it that so many shops don't book the next appointment for their customer? The biggest argument I hear is that the customer does not know if they will be available on the future date set in the calendar. Well, no one can be sure that the date set 6 months from today is good. Here's my opinion. Every customer in your shop today will need another future service. And those customers in your shop today are right in front of you when they pay today's bill. Why not book their next appointment? If they can't make that future date, rebook it. Let me hear from you. Pros, cons, excuses, etc.
  3. Joe Marconi
    Wow, what a story. It's hard to imagine these days, any acts of kindness. Any update on this story?
  4. Joe Marconi
    Thanks, Mike, great to see you on Auto Shop Owner! Hope all is well my friend!
  5. Joe Marconi
    Those are words of wisdom, from the heart and real-world. Thank you for sharing!
  6. Joe Marconi
    Herb Kelleher, the co-founder of Southwest Airlines, was once asked, “Who’s more important, your customers or your employees? Thinking back on what his mother had taught him, Kelleher responded, “My mother taught me that your employees come first. If you treat them well, then they treat the customers well, and that means your customers come back and your shareholders are happy." Shop owners have been taught that the customer is always right and that their needs supersede all other needs. Anyone in business dealing with people every day knows that this paradigm, in reality, doesn’t always hold up. In business, you need customers; without them, you don’t have a business. However, without employees, you don’t have a business either. It’s the old “chicken or the egg” question. Here’s my view on this; I agree with Herb Keller that employees come first. But I take it one step further. You need a team of superstar employees who share your culture and value the team concept. You need people that love what they do and want to help others. Then, as their leader, you need to treat your employees well. Why? The way you treat your employees is how they will treat your customers.
  7. Joe Marconi
    When was the last time you sat down, one-on-one, with your employees? Let me clarify one thing, I was never a proponent of the traditional yearly review. For me, I would make time to sit down with my employees every few months. We would discuss their goals, how they view the company and how they view me as their leader and boss. I would also try to talk to everyone each week, very informal, and not about business. For me, this strategy helped with employee engagement and morale. What's your process for employee reviews?
  8. Joe Marconi
    Are other shop owners seeing an increase in customer financing? Are more and more customers in debt, or not adjusting their income to the increasing costs around them?
  9. Joe Marconi
    This is a great conversation, and very relevant to today's economy. There are pockets of the country that are not affected by inflation and other areas that are deeply affected. The key here is to be open to new ideas and programs that can help our customers, while still looking out for their best interests overall. And also, never forgetting the value we bring. We all know that there are times when spending money on a particular repair or service will save money in the long run, but may get push back from the customer. Too often when shops do offer to finance, it's a last-ditch attempt. And all too often, the customer gets declined. Another factor is that we don't want customers to go into more debt. This may lead to the customer not returning while paying off the bill. Again, this is a great conversation. Looking forward to different points of view.
  10. Joe Marconi
    First, welcome to Auto Shop Owner! Looking forward to your contributions and helping shop owners.
  11. Joe Marconi
    Agree, there are so many things you can share and learn from networking!
  12. Joe Marconi
    From what I have learned from speaking to shop owners, they are both very good products. The only thing I know about Shop Boss is that it's a little easier to learn and operate and targeted to smaller shops?
  13. Joe Marconi
    I hear your story all too often, and it greatly bothers me about today's workforce. It comes down to a matter of respect too. The key point is your last point, "Keep looking for our real criteria."
  14. Joe Marconi
    Ha! I know, "Can you fog a mirror? You're hired." Many shop owners, and small business owners in general, had to lower their standards due to the shortage. But soon learned that this type of hire has big disadvantages. I think all shop owners need to continue to network and fill their future pipeline of quality people.
  15. Joe Marconi
    Do you Network with other shops in your area? if not, why not? I know that the shop down the road might be a competitor, but networking is a key component to growing your business. And help the auto industry. Comparing strategies and tips can be very beneficial to you, the other shop, and the industry. That does not mean you have to exchange your trade secrets or price fix, but it might be nice to know that the shop owner down the road has the same challenges you do, and maybe brainstorming ideas can be beneficial. Thoughts? Comments?
  16. Joe Marconi
    I know how difficult it is these days to find and hire employees, especially technicians. But the reality is that making a wrong hire may end of hurting you in the long run. What are your criteria for hiring employees? What standards do you look for?
  17. Joe Marconi
    We are well into the month of April, which means the first quarter is over. Time to review the year-to-date sales and profits, and realign your goals. From what I am hearing, in general, shops are doing well, even though the winter for some shops experienced a slight slow-down in sales. How did your shop do the three months of 2022, and how do you project the year to turn out?
  18. Joe Marconi
    Choosing a business management system these days may not be as easy is once was. There are many things to consider: Is it cloud-based, able to expand to multiple locations, and does it include other features such as DVI, labor guide, part procurement, repair access, scheduler, phone tracking, and CRM? And there are many other features to consider. What system do you use, and are you happy with it? What features do you like, dislike, and would you consider a new system?
  19. Joe Marconi
    According to a recent article in Ratchet and Wrench, there is a severe battery shortage that will not be subsiding any time soon. Also, the price of lithium has increased 480 percent in the last year! Will this administration change its stand on fossil fuels? Or will we be held hostage by countries like China? NOTE: this is not a political post, but an issue WE need to have an open and honest discussion about.
  20. Joe Marconi
    Almost exactly one month after issuing his first delay, Judge Douglas Woodlock issued another procedural order on the day of his self-imposed deadline saying he would not make a decision. Citing "the resurgence of a demanding criminal trial schedule" as well as other non-trial-related delays in the order, Woodlock pushed the decision deadline back by nearly three months to July 1. Once again, our industry is not considered a Top Priority. Except to us, who live it each day!
  21. Joe Marconi
    How is Canada responding to the cost of labor, the tech shortage, and part shortages?
  22. Joe Marconi
    That's for sure Frank! And I agree, some of the younger consumers don't even know how to open the hood. I guess that may be a good thing too!
  23. Joe Marconi
    Let's face it, the days of the 3,000-mile oil change are long gone. And so is the $24.95 oil change price too. Today, we are lucky if customers schedule an oil change service. Many of them wait until the OIL LIGHT comes on. How many of your customers come in with NO, TO LITTLE OIL, in the engine???? For years the new car dealer salespeople, the carmakers, and the owners manual have brainwashed the average consumer that nothing is needed in terms of maintenance. With low viscosity oils, low tension rings, and extended oil service intervals, we see a ton of engine-related issues. I am not a proponent of the extended oil change service over 6,000 miles, no matter what you drive. Tell most consumers that 10k is ok, and you are lucky to see them at 20K! Isn't it time to change our strategy? Start promoting Maintenance services? Educated customers? And charge appropriately for this maintenance service?
  24. Joe Marconi
    Not only is this a hard concept for some, but many accountants also don't get it. But you are right, the Cost of Labor must go in the Cost of Sales (also known as Cost of Goods) section of the Profit & Loss Statement. The main reason is that this is how we price out jobs on a daily basis: We factor in the Cost of the Part, and the Cost of our Technician. Great points Larry!
  25. Joe Marconi
    60% overall gross profit (parts and labor) is a realistic and needed number to attain. For a general repair that usually means a labor margin of 70% and a part margin of 50%. Even in this age with the Rock Autos, Amazon, and eBay, a shop must achieve its needed part profit. While there are differences around the country, it's becoming more uniform in terms of overhead expenses. Sit down, and crunch your numbers. Review all your expenses. Understand what it takes to be in business. Your expenses should be around 40% of sales revenue. BUT, here is the difference: Once you know the Cost of Doing Business, you then add an ROI, a return on your investment. That's right, profit. Typically, general repair shops target a goal of 20% net profit. There are other factors involved, but these are the core numbers of a general repair shop: 60% overall GP, keeping expenses at 40%, and a goal of 20% net profit.

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