Joe Marconi

4 hours ago, Obsidian Motors said:

Sounds like you've practically seen it all Joe. So I have a question; the landlord owns a small shop in front of mine that primarily does oil changes and smaller maintenance jobs. But he just recently added brakes. There is language in my lease that stipulates a clause that prevents me from advertising oil changes and I adhere to it. So I recently started advertising brake specials. So the landlord comes to me and says that I can't mention price. I believe he is way out of line here. I left the sidewalk sign up but wondering if going to "war" with him over this issue is worth it in the long run....although truthfully I want to since he appears to be a bit of a bully and the only way to beat a bully is to stand up to him.

While I do agree that a bully must be stood up to, you need t be careful. It appears that you may have two competing businesses right next to each other, and what complicates matters is the fact that he is the landlord. 

Before you engage in anything, you need to re-read you lease, and perhaps, have your attorney read it.  You do not want to start a war in your own backyard.  Short of moving to another location, which may be the ultimate option, try to work it out.  If he is truly a bully, all the more reason to seek professional advice.

I really hope things work out for you. Businesss is tough enough without something like this. 

By the way, I have seen a lot, not all, but a lot.

I really think that the increase in pricing, at this time in history, is different than the past. 

No longer can shops hold on to the old ways of conducting business. There are too many factors at play, and one of the biggest is to retain and attract employees. Not to mention that expense have gone up around us! 

We need to do the math, find out what are the costs of doing business, trim the fat (if there is any) and maintain production levels.

Customer may notice the increase, and they may not like it. BUT, that should not be the obstacle for shops NOT to increase prices, where needed.  But let's also remember, that true-blue key profile customers judge on the value you provide, not so much the price of the service or repair. 

Great conversation! 

Yes, I do go in about once a week to pick up mail and I am still cleaning out old files and personal items. But, for the most part, I am out.

Emotionally, it was and is hard.  I grew up in this business and in my own business for 41 years. I do miss the employees the most, and strangely, when I look back, it was the toughest times that brought the team together. For example, during a bad winter with many snow falls, when we spent hours in the cold and snow cleaning up. We would take a break from the cold and would huddle in the shop over coffee and egg sandwiches, and shoot the breeze.  That's what I miss the most.

14 hours ago, bracketracer said:

In my northeast rust belt area, I tend to avoid doing brake and fuel lines.

 

Rusted through brake and fuel lines are common in the rust belt.  I always used a different labor rate, and always informed the customer that unforeseen issues  will most likely arise.  If I had my choice, I wouldn't touch them, but many of them were key customers. 

31 minutes ago, Jerrys Auto Center said:

I’m in Long Island and grew up in Brooklyn/ Queens, I also grew up in the gas station (Esso) and race car (Island Porting Service) sector of this industry. I’m just waiting on my son to determine where he’s going to settle down, he graduates The Ohio State U this year and then I’ll work on getting out. I would love to find a medical tenant for my property and do a land lease. We’ll see, all in the works, all in time. 

A fellow New Yorker! Nice!  My advice, create a exit plan and work on it every day, starting now. Time goes by very fast my friend. You have put in a lifetime of work, and being in the auto business is like three business lifetimes!

Take of yourself and enjoy the fruits of your hard labor.  Family first. Always. 

Carm, I great podcast! And so relevant to the business today!  Dr. Wieman is right on point, and extremely interesting to listen too.  Every shop owner can learn a lot from the Dr. Dave, and of course from all your podcasts! 

4 hours ago, Old and Tired said:

It's interesting to see where we were at almost 5 years ago. Now its $158.00. Still seems low.

I agree 100%. 

Most shop owners are crunching the numbers and realize that labor rates have been too low for too long.  As a business coach for Elite, I recommend now more than ever that every shop owner sit down and perform a complete financial analysis on their business. Make sure that their expenses are in line and that their part and labor margins are correct for THIER business, not the shop down the road.  It's the only way to continue to build for the future.

One last thing, increased labor rates will hopefully bring in much-needed cash. So build your cash reserve. Everyone in business learned from COVID that cash is truly king. 

3 hours ago, Jerrys Auto Center said:

And I thought my February was bad!…

I HAD 2 1/2 technicians ( 1 was really, really short!😂)

My part time man works nights for the City of New York and worked for me M-Th 8-12… He got transferred to days 2 weeks ago… So I lost him. 
One techs cat had puppies for the last time on my watch… He’s gone!

The last tech unfortunately lost his mom in El Salvador and needed the week off to fly home. 
I literally went to work with ZERO employees this past week!!

I made appointments for next week, did end of year stuff, caught up on planning and changes for this year. 
After being in business since 1979… You learn to accept what you can’t change, You change what you can and with QUALITY customers it all works out. Every customer scheduled for this week got rescheduled for next week.
The comment from EVERY customer… “Is everything OK?”

I love my customers!

It sounds like you need an emotional hug.  I just sold my business after 41 years, and  I can certainly empathize with you.  And I don't' have an easy solution. You will have to make difficult decisions soon, and I hope an pray that you find quality people. You cannot do it alone, and I know you know that. 

It sounds like you are in the NYC area, or near NYC, my shop was in Putnam County and I'm originally from the Bronx, and grew up in the gas station business.  I too have learned that your employees are your most important asset, but can also be a big disappointment. 

Perhaps, ask a few questions and maybe we can brainstorm on the forum and help? 

I agree, Sears was BIG years back,  and not just on automotive service.  And what a history and legacy that was all destroyed. Sad. 

After a tough number of years, and declaring bankruptcy in2017, Sears finally closes it's reaming auto centers.

While it's not stated from what I read, I can't help thinking that the scandal in the 1990s, when Sears was found to promote unethical sales practices, had a lot to do with this. Here is a quote from the NY Times, June 12, 1992: 

"The California Department of Consumer Affairs today charged Sears, Roebuck & Company's automotive repair shops with systematically defrauding customers by performing unnecessary service and repairs, saying it would seek to revoke the company's license to do such business in the state." Source: https://www.nytimes.com/1992/06/12/business/accusation-of-fraud-at-sears.html

Tire Business article on Sears closing its remaining 15 stores: https://www.tirebusiness.com/news/sears-auto-centers-close-last-15-locations

Your Thoughts? 

9 minutes ago, xrac said:

Any time we have ventured to after market accessories we have regretted it. 

Yes, Agree. During COVID, a customer wanted us to install aftermarket brakes, calipers, rotors and exhaust.  What a nightmare.  We took it in due to lack of work during the pandemic, but it wasn't fun. 

On 1/9/2022 at 11:39 PM, Obsidian Motors said:

Are there are any repair jobs your shop prefers to not do for whatever reason? 

I just saw this post.  Interesting question.  I was a shop owner for 41 years, and rarely refused much of anything. BUT, I also new the limit of my employees. The key thing to remember, from my perspective, is that you must make sure you do the job efficiently and make a profit, and do it well enough to be considered a professional repair or service. 

We did stay away from jobs we felt were not aligned with our talents and with our expertise. For example, undercoating, rust proofing, some electrical work, anything to do with accessories: Radio, Navigation, etc.  

Got your attention? Good!  

Every business needs a marketing and advertising plan, and to create a budget for that plan. However, the biggest bang for your buck, and the area of the greatest return on your efforts is what you and your employees do each and every day- Providing an Amazing Customer Experience!  And that cost little to nothing.

Before you spend a dime on advertising or marketing, make sure that you are providing an amazing customer experience. Build value and focus on the customer at each visit.  This will also help with customer retention.

What are your strategies to provide an Amazing Customer Experience? 

1 minute ago, xrac said:

Your right just got to keep working but it’s hard on an old fart. 

Ha! Join the club! 

1 minute ago, xrac said:

The biggest month we ever had was a February but that’s when people were getting early tax refunds. This February is terrible. Lost 4 man days to snow, lost 2 man days to a death, lost 3 man days to a new baby and 2 to an employee concision plus fired a guy. Lots of business absolutely buried but no sales due to all the time lost and parts delays. 

Wow, I feel for you.  Sometimes those curve balls that life throws at you are tough to hit. Remain positive my friend. It will work out. 

When I ran my shop, there was one month I hated...and that was February.  No matter what I did, Feb sales were off.  BUT, I never gave up testing a new strategy to bump up sales.  I called it "Operation February." 

Each year we would increase service reminder's for Feb, launch different promotions, and make a lot pf phone calls to customers that we recommended work for. Did it help, Yes....but only to a certain degree. 

The problem with Feb is that it's a short month, the snow storms kill work days, and cabin fever hurt consumer mindset.  The key thing is not to give up, because the rewards of marketing are slow and steady, and pay off down the road.  So, in the big picture, it's all ok. 

How's your Feb in your part of the country, good? Bad? Normal?  

Now that COVID is diminishing, the states are beginning to end mask mandates.  I think that we all need to get back to normal.  If someone wants to still wear a mask, then wear it. 

But, for society to get back to feeling safe, we need to believe that we are safe.  FOR ME, fear is not good for anyone; not good for society, our mental health, and not good for business. 

Let's get back to normal.  It's good for all. 

Great conversation!  It shows the difference in generations.  There may not be a wrong or right here, but there is certainly a different perspective.  Even though FMLA is unpaid, it does disrupt the business. There is no denying that.  I am not saying that the business cannot work around it, but it something that the business needs to consider. 

I have three children, and didn't even think about taking time off longer than the day they were born and the day we took the babies home.  Not sure if that was too much in the other direction, but that's the way it was.  Different times for sure.  

Today, you have certain laws and a different mindset.  

I remember reading the the 1980s that hydrogen cars, not EVs, will dominate the future of the automobile. What happened to change that.? There are companies doing research into hydrogen cars, but it's funny how the EV took over. 

And, the other funny thing is when people say we need to get away from a non-reusable energy source (oil).  I get that (to a degree), HOWEVER, I would bet that not many people understand all the non-reusable resources needed to build the batteries for the EV! 

12 hours ago, xrac said:

I belong to a BNI networking chapter and we have an electrical contractor in our chapter.  He has been talking about install EV charging lately.  Seems that business people are coming to our town from larger cities trying to drive EVs.  They are finding few inconvenient charging options in our town.  He is being contracted to install EV charging stations for a few companies.  Now I know what this guy charges and he is not cheap.  I would make a guess that most of what he does will cost $3000-$5000 at least.  That is if the place where it needs to be installed has a large enough service panel.  This could get real expensive depending on where it has to be located and what capacity is available.  I do think politiians and people ever think abou the cost they will incurr to install a charging station at home, at work, at the vacation home, etc.  Way more cost in these EV's than purchase price and kilowatt hours.    

I think there are a lot of unknows at this point. There are still no specific standards either.  And what about city dwellers?  In NYC you could have a hundred families in one apartment building.  If you live in an apartment, how do you charge your EV?  I think all the issues will be figured out, but not without a price to someone, and if the government takes over, it will be through taxes. Or, will innovation jump over the EV and invent something else? 

Major car makers are fighting back and want to push the implementation of the Right to Repair Act in Massachusetts from 2022 to 2025.  Two proposals are now being considered. This would only hurt the aftermarket by delaying much-needed information to repair and service vehicles. 

I urge everyone to stay informed and if you agree with Right to Repair, do what you can to voice your opinion.

Thoughts and comments? 

Here's an article about what's happening in MA, with Right to Repair:

https://www.wired.com/story/fight-right-repair-cars-turns-ugly/

41 minutes ago, bantar said:

First, let me say that I think EVs are here to stay, but just as a hammer isn't the only tool in your tool box, neither will EV's be alone.  

Adoption Barriers:   Amongst the many single family homes here are some super sized apartment complexes... lots of them.   Living in an apartment severely dampens the convenience of having a personal plug for your EV.    You will have to hook up, charge and leave so that the next person can arrive for charging.    If all spots are full, you must wait for one to free up.    Most apartments do not have EV chargers and if they added one, it would need to be a profit center as apartments are experts at expense reduction.    There are some apartments here with garages, so that helps.      I think this inconvenience will continue to be an impediment to adoption.    How many of us have been so late for a meeting that we can't spare the few minutes to pump gas into our tank?  Imagine forgetting to charge and needing one now.    Another factor is the vitrol that I hear about EV's from everyday customers.   It's surprisingly loud.   Then, you have your EX-Tesla drivers with not so great stories of their adventure.    Contrast that with Prius drivers and those guys are generally happy and keep their cars quite a long while.

IMO, I think the manufacturers with the most ICE engines remaining will mop up the majority of the new car sales.  I think the CEOs are building for a perceived market vs an actual one.   Hype always precedes adoption.  But, hey, I'm not a visionary.

Personally, I have no desire roasting in a spontaneous Lithium fire, so it's never in my future.   I'd be open to other alternatives (fuel cell, propane, alkaline batteries, etc) if it made sense and was peppy.

Profitability:  I would say that the majority of the Tesla drivers that I see at our shop (for State Inspections) are cheapskates.   They think that they've solved the maintenance and gas mileage conundrum.   Add to that, a very small set of early adopters (not cheap folks).   I also see their cheapness in their driving habits.   They have a super-accelerator-machine, but pushing on the pedal uses their precious battery, so I zoom past all but 1-in-a-1000.   These guys aren't using their brakes much.   I see more tire wear from alignment issues than driving wear. (For reasons noted here are currently refusing Tesla alignments... we've only done 1).  Most of the Teslas are low mileage vehicles.  The highest I've seen is 70.3K miles on a used 2016 Tesla S.  93% < 40K miles in all.    I bring this up, because I think it foretells the types of customers that you are likely attracting.

 

Wow! You did your homework. Great insight on this topic! 

14 hours ago, Old and Tired said:

Do any of you smart successful people look at the percentage of gross sales that your cost for parts is? If so, what's the goal and do you raise labor or parts prices to the customer to achieve the goal?

Let me lead first by saying that success is subjective. We all strive to be our personal best. 

With that said, every repair shop is different. A heavy truck shop will work on different margins than a general repair shop.  A quick lube is also a different business model.

I was in the general repair business, servicing and repairing mostly Asian cars, domestic cars, and light trucks/SUVs. For MY model, my goal was 50% to 55% on parts, overall, 28% on tires.  My labor goal was 70%, which became more difficult when we extended into working on more car lines, like BMW, Mercedes, Audi, etc. 

In regard to raising prices; your labor and part profit must be taken into account when setting your prices. Your  business must be profitable. 

I hope this helps. Great question! 

11 hours ago, xrac said:

Joe, EV will have no impact on my business that will effect me.  Where I live is one of the last places to adopt new technology and by the time it makes an impact I would be in my 80's if I live that long.

 

Frank, first of all...I wish you a long a happy life.  For many around the country, your situation is accurate.  The internal combustion engine will be here for a while yet. EV's will make an impact, but it will slow and incremental.