Joe Marconi

When I look back at my 40-years as a shop owner, there is one thing that stands out among everything else: It’s the people we surround ourselves with that will have the biggest influence in determining our success. Think about it, even the greatest NFL coach will never win a Super Bowl without great players. 

I have worked with a lot of employees through the years, including technicians at all skill levels, bookkeepers, service advisors, managers, and support staff. I can tell you with 100 percent conviction that the years that were the most successful were the ones that I had assembled the best teams. Now, I am not just defining success by profit alone. These were also the years that were the most fun, with less stress and the years that we made the biggest positive impact with our customers and the community.  

Let’s talk about production first. Highly motivated, skilled technicians with the right attitude produce more.  They also get paid more, and they should. The right team of techs will average higher labor hours. I learned many years ago, it’s not the hourly rate you pay a tech that matters, as much as the hourly labor dollars produced by that tech. 

Next up are your service advisors. Here is where you can make or break your company. The service advisor is the face of the company. They represent you, your company and everything you do. The best brake job in the world means nothing if the service advisor doesn’t deliver a world-class experience that gives your customers a compelling reason to return.  

The long-term damage from an incompetent service advisor is hard to recover from. For the most part, you don’t run a transactional business. Your company relies on strong relationships and a strong culture.  There isn’t a big-box brand name over your bays. It’s your name. And that means service advisors need to go above and beyond to exceed your customer’s expectations. If not, you lose. 

For the success of any repair shop, I put great emphasis and responsibility on the owner when it comes to employee management. All too often, a poorly run, failing shop is the fault of bad leadership. The shop owner’s ability to lead and motivate is crucial with building a winning team and successful business.  However, I have also learned that sometimes we have the wrong people. And no matter what you do or how you try to motivate and lead, there are some people that just don’t “get it.” If it’s not in someone to begin with, nothing you do will change that person. 

In today’s business world, you need a team of great players.  You need to hire people that can produce quality jobs, with minimal comebacks, have the right attitude, self-motivated, willing to attend training and have the willingness to work in a united, team environment.  You need to hire people that “get it.” 

With regard to your customers, your business hinges more on the customer experience than it does on the equipment you have or the brand of parts you use. Of course, the parts you purchase matter. Of course, your alignment machine matters. But none of that is as important as what the customer sees.  The customer sees and judges you on her overall experience. Which is how she was greeted at the service counter, how she was spoken to during the sales process, the car delivery, and the experience driving away with a smudge-free steering wheel.  

Lastly, here’s something you need to accept as a business owner. There isn’t a process anyone can create that will make up for mishaps caused by employing the wrong people. You do need to have processes and policies in place. It’s how you build a smooth-running and efficient business. However, we don’t run a McDonalds or a Dunkin Donuts. We can’t make up for poor customer service with a process or with a point-of-sale computer terminal. The processes and policies you create will only work the way they were intended to when you have employees fully aligned with your culture and have the right attitude. You need to have the right people. 

There are many components of business. The financials, choosing the right vendors, training, equipment, and advertising are among them. The two most important components of your business are your employees and your customers. However, you have great control over who you hire. And we all know, great employees create great customers.  Assemble the right people around you and the rest will fall into place. 

This story was originally published by Joe Marconi in Ratchet+Wrench on August 5th, 2020

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1 hour ago, xrac said:

Great article! Well said Joe!  In all of our lives yesterday is gone and tomorrow never comes. Today is the day that matters. Those who wait until this is over to move their business forward will probably find they don't have a business anymore.

So true! thanks for the feedback!

January 2020 started without a hitch. We hit our sales and profit goals in textbook fashion. However, by the end of February, it was obvious that something wasn’t right. Sales for the month dipped by more than 30 percent. It was devastating. What we didn’t realize was that this was just the beginning of even greater losses. By the time Governor Cuomo of New York issued the stay-at-home order on March 22, sales had dropped 75 percent. With most of the country in lock-down, I didn’t know what to fear more—the coronavirus or the impending financial disaster the world was about to endure.  

Before we go on, it’s important that we all remember those that have lost their lives due to COVID-19.  As in any crisis, there will be suffering. However, as a society, we must not dwell on it or let the crisis beat us. We must find a way to fight it and succeed.  

When the impact of the virus first hit, emotions filled my mind every waking moment, mostly due to the uncertainty of the situation. Then, reality set in and all I could think about was my obligation to others. As an essential part of the community and the nation, it was my obligation to keep the doors open and be there to make sure that those that needed to get to work, could. If we were to win, survive and thrive, we had to create a winning environment. That meant that I had to elevate my leadership to a new level, put the health and welfare of my staff before anything else and realign my goals. In the coming days and weeks, I would get a working man’s PhD on how to win in times of crisis. 

The first lesson learned in all this is to have the right mindset. We can’t look backward in time or wait around for a return to what we perceived was once normal. Looking forward and building a new future is all that matters. If you tell yourself, “the sky is falling.” It will.  Negativity spreads like a virus and infects everyone around you. Your mind shuts down in panic mode, clouding your judgment and mentally and physically paralyzing you. You must remain mentally strong and positive, even when you know the brutal facts of the situation. This is crucial. You, the leader of your shop, cannot lead others if you show fear and negativity. Be human, show emotions, but have the mental fortitude and show your team that we will get through this crisis. 

The next lesson is to make sure you have the right people around you. A strong team with the right culture is important in business. In times of crisis, it’s the difference between success and failure. As the weeks unfolded, it became clear to me who my leaders were. It would be those employees that I would turn to in order to maintain morale and lift everyone’s spirit. Leaders cannot succeed without having the right team around them. Take a look around you. Do you have the best employees with the right attitude? If not, begin the recruiting process today. 

Realigning my goals and understanding my new key performance numbers was next up. My 2020 business plan, created in December 2019, had little meaning by mid-March. I am not admitting defeat for the year by any means. Rather, we now have new objectives and a clean slate. From this point on, it is critical that we remain profitable: watching every expense, tracking production, keeping payroll within budget, and building for the future. The past is the past, it cannot be changed. What we have now is the opportunity to make each day better than the day before. 

Perhaps the biggest lesson learned was more of reminder than a lesson. It’s that above everything else, people come first.  All the planning, goal setting, marketing and number crunching mean nothing unless you understand that you, as a shop owner, have the power to achieve great things by your words and actions. Yes, it all goes back to leadership and understanding your obligation you have to others. All of us will have different lessons learned from crisis.  Which means, there is great opportunity on the horizon. Use those lesson to make your tomorrow better than yesterday. 

My hope is that by the time you read this article, COVID-19 will be well under control.  Human interaction is crucial to our overall well-being. We need not only, the emotional touch of another person, but also the physical touch of others.  While Facetime and Zoom will get us through, it will never replace a good old fashion handshake and a hug. 

This story was originally published by Joe Marconi in Ratchet+Wrench on June 5th, 2020

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Nick is on the front lines of customer service each day. He is a talented service advisor, with a passion for helping others. Nick and I often debate what’s more important to the customer: price or value? He’ll often tell me, “I know you preach value, Joe, but people care about price, too. In the end, price is a major concern.” I always respond, “Nick, it’s not all about price, it’s really about value. Build a strong relationship, reach the customer emotionally, have them believe in you and they will trust you. And when that happens, price will not be the focus.”  

Here’s the reality. I would be lying to you if I told you that price has absolutely no bearing on a person’s decision to buy from you or not. However, are consumers only interested in price? I know that sometimes it may appear that way, but the bottom line is this: being competitive and profitable is a fine line we walk each day. When the perception of value diminishes, price then becomes the focal point.  Nick, who debates me on the philosophy of value, learned a valuable lesson recently, which made him a believer that there is most definitely a difference between value and price.  

About a month ago, a first-time customer called us to ask if we could take a look at her son’s tire, which was losing air pressure. Nick took the call and said, “Sure, we would be happy to help you.” He took down all the needed information and let her know that he would follow up with a phone call as soon as her son arrived.  

When the son arrived, Nick wrote up the car and dispatched it to a technician and then called the mother to let her know that her son had arrived. He also let her know that he would call her as soon as he knew something about the tire. 

About ten minutes later, the tech informed Nick that the tire was damaged from riding with too little air pressure and that the tire would have to be replaced. He also said that the other three tires looked new and that it would not be a problem replacing the one tire.         

Nick prepared an estimate for the tire and called the customer. Nick explained why the tire needed to be replaced and let her know that we could have the tire installed and have him on his way in about an hour or so. Nick then gave her the price for the job. The mother replied with, “Ok, give me five minutes and I will call you right back.” 

Fifteen minutes later the mother called, and said, “Nick, I found another shop that will install that same tire for $50.00 less than you can do it for.  So, can you put air in the tire so I can have my son drive it to the other shop?” Nick thought for a second and responded, “putting air in the tire and having your son drive his car to the other shop is not safe. Here’s what I will do. I will have my technician put the spare on the car. He’ll also check the tire pressure in the other three tires. Afterall, we want to make sure that your son is safe.” The mother thanked Nick and hung up the phone.  

A few minutes later, the mother called again, asked for Nick and said this, “You know Nick, you were so nice to me from the very beginning when I first spoke to you and right up to now, and you put my son’s safety first. You also didn’t try to force me into buying your tire. Please install the tire at your price.” Nick, now on cloud nine, hung up the phone and told the tech to finish up the job.  

Nick learned a valuable lesson that day. He learned that he didn’t sell a tire—he sold something much greater. He sold an emotional feeling. He reached the customer on an emotional level and the price of the job became less important. Does this work with everyone? Of course not. But, if you want to make more sales and build the right clientele, sell value, sell relationships and sell a positive emotional feeling. 

Later that day, Nick told me what happened. I could tell that he was proud of how he handled the situation. And he should be. I just listened as he told me the entire story and relived the moment. After he had finished, I calmly asked him, “So Nick, is it really all about price?” Nick just smiled. 

This story was originally published by Joe Marconi in Ratchet+Wrench on May 5th, 2020

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1 hour ago, MINI4U said:

 

I understand your frustration.  No one can truly steal anyone, because no one owns anyone.  We have issues, that's a given. We need to look at ways to retain good people. This issue will no doubt get worse as the skill level increases of quality people. 

Great point!

While I cannot answer why some shops don't perform an inspection on every car, I am sure that all techs and shop owners understand why they should.  In my opinion, we owe it to the customer to perform a inspection, even a basic one.

Whenever you go to the doctor, either the doctor of a nurse takes your vital signs and asks you a series of questions.  This is their multipoint inspection.  You may go to the doctor for knee pain, but I am absolutely sure you do not want the doctor to ignore a blood pressure issue!

Shops need a process in place, need to inform the customer ahead of time about the inspection, and need to have service people skilled in knowing how to speak to customers.

I have all the respect in the world for shop owners and techs. After 47 years in the business, it still amazes me how dedicated the typical shop owner and tech is to their profession. Let's all learn together. 

Frank; thoughts and prayers go out to you and your employees.  You are right, this is no joke, let's not get complacent at this point! 

Speedy recovery my friend! 

First, I would be the last person to tell anyone that car counts is not a measurable and important KPI.  Every shop needs to know their needed car count and what their sweet spot is. And then use that KPI to understand other important KPI's - ARO, Labor margin, part margins, etc.

Now, with that said, the industry in general, has and will see, a decline in the amount of times your customers will visit your shop. It was not that long ago when we had customers bring their cars in 4 to 5 times per year. That has changed.  Plus with COVID and many people not using their cars as they used to, we cannot rely on trying increasing car counts. We should, rather, making sure that we make every vehicle visit...COUNT.  

Here is my strategy to drive up sales per visit, while promoting the right culture with your customers: 

1. Ensure that the customer experience is the best on the planet! - Give every customer a reason to return back to you.
2. Perform a complete MPI on each vehicle, but find out the particular needs of customers. What is their car used for? 
3. Get your entire staff to understand that the customer is everything and their safety and their car care needs are most important.  Promote your Culture of taking care of people, not sales - Believe me, sales will come and so will the profits. 
4. Promote vehicle maintenance, safety, and reducing the overall cost of owning their car. 
5. NOW HERE'S THE TOUGH ONE:  PLEASE BOOK THE NEXT APPOINTMENT AT CAR DELIVERY!  Doctors do it, dentists do it, boiler service companies do it, hair dressers do it, nail salons do it, ..even chimney cleaning companies do it! It's not hard, just do it. 

Hope this helps. Thoughts???

The choice is yours, of course. But don't make age an issue.  I did a major expansion at the age of 55, and then opened up two more stores by age 60.  I am now 65 and working on my exit strategy. I am down to one store at this time, my main location I started with 40 years ago.

What I can tell you is that you will need the RIGHT people around you. The wrong people will drive you to drink. Trust me on this!!!  The right people will lift you to another level that will allow you to reap the benefits down the road.

One last thing, and this is NOT due to your age...Create an exit strategy, or succession plan.  Everyone reading this, no matter how old or how long in business, needs to think about life after owning a business. 

No one can predict the future, but to work to help create the future is key.

BEST OF LUCK!

8 hours ago, JimO said:

As if getting Covid is not enough you also have to try your best to finish all of the “in progress” jobs and contend with being down for an unknown amount of time. Running a small business has it’s rewards but I bet right now you wish you could just go home and get paid for hibernating under the covers like the majority of the population has done. I wish you and your tech a quick recovery.

I know what you mean, and I get it.  Shop owners, techs and other auto-related employees in our industry have always been on the front lines. We come to work in the middle of a snow storm, go to work when we feel sick, and try to drum up work when it seems impossible during an economic downturn. We work in conditions that makes us cold in the winter and hot in the summer. For once, it would be nice to hide and get paid for it.  It's just not us. But, I get it.

It's hard to believe that it's almost a year since COVID-19 hit.  And for many businesses, and repair shops, it's been a challenge.  While many areas around the country have not seen a downturn, there are other areas that have been harshly impacted.

Areas such as mine have seen a decline in miles driven per customer of up to 50% or more.  Just consider working from home, the drastic decline of going out to dine and other activities, a decrease in after-school activities, a decease in youth sports, buying online and every other action that has become the norm, and it adds up to a negative impact for so many shops.

NOW, you know ME.  I always put a positive spin on everything.  At this too shall pass. COVID-19 will be behind us and we need to prepare for great times ahead.  

I urge everyone to focus on people: Your family, your employees, your customers, and the community.

With regard to your customers, they will remember you and their experience long after the water pump or mass air filter you replaced in their car.  

If you are having a decline in sales, here a few tips:  Establish your new goals, look at your expenses, reevaluate your breakeven, make sure your labor and part margins are in line.  BUT, never forget that your most important strategy is the culture of your business. 

Lastly, cherish every minute with family.  This Crisis has brought Clarity. And let's never forget the things that money cannot buy. 

8 hours ago, xrac said:

And it keeps on affecting. One of my techs and yours truly have tested positive.  I have the shop with no one to enter the building except people that I have no symptoms and are waiting on test results. Trying to clear out cars that are in the shop so people don't go days or weeks without them.  Maybe not perfect but I think it will be effective.   So far it only feels like a mild head cold.

Above all, Frank, the health and welfare of everyone is number one.  I hope that you and your tech recovers fast, with no continuing issues.  When I hear stories like this, it really opens my eyes once again as to the seriousness of this virus.  As a small business that relies on a constant input of customers, this virus will no doubt take a toll on many repair shops. Keep us updated and best of luck.  

19 hours ago, JimO said:

Joe is correct that Covid-19 has affected everyone to some degree. Our gas volume is still off by 30-40% which is both a concern and hardship but repairs have been good so I feel very fortunate. There are a handful of varied businesses that have prospered during Covid such us drug chains, Urgent Care facilities, testing labs etc. Sadly there are so many businesses such as restaurants, movie theaters, hair/nail salons, catering halls, fitness centers, hotels/motels ..... that have closed up permanently. A shopping mall near me has a severe failure rate with 40-50% of the stores shuttered for good. A Hilton in my backyard closed permanently. Huge corporate office buildings in my area still lay dormant with all employees working from home. The overall business climate is still very poor in our are and concerns me.

To answer Joe’s question as to what lessons I have learned - Adapt to change as quick as possible, do not financially over extend yourself, realize and react to untapped opportunities, increase and improve communication with customers and employees and be thankful to be able to come to work every morning because too many people are unable to do that.

Great post and great lessons learned.

A lot has happened since last Winter.  In some ways it's seems like years have past.  Tough times reveals how tough people really are. 

My hope is that everyone learns from the events of COVID and takes those lessons to continue to push forward in business and in life.  And of course, take the time to celebrate the things that money cannot buy.  Life, health and family. 

Happy New Year everyone!  Maintain the right attitude. Be positive and keep moving forward. 2021 will be a great year!

We are still down about 20% from normal for this time of the year. It's not that we have lost customers, they are just not putting on the miles that they used to.  2021 will be a better year. I think we will see a surge by late spring and it will carry through the end of the year. 

Henry, there are many different ways to create a pay plan. Are they any trade organizations in your area. The reason I ask is that there are many labor laws you need to be compliant with.  For example, in my state, Flat Rate is not legal. 

I hate to be vague, but I just want to make sure you get the right information.  Pay plans can be complicated. However, the right pay plans can incentivize the right people. 

Let's face it, all of us were affected by COVID-19. Some more than others.  One of the biggest issue is the feeling of uncertainty....what we call the unknown.  But, humans are no strangers to tough times.  Tough times brings clarity and opportunity.  It forces us to create new strategies in an effort to improve both our business and personal life. 

We cannot turn back the hands of time. 2020 will be behind us in a few days.  Work hard now to make 2021 a banner year.  There has never been a time so important as now. Learn from the events of 2020. Create your new goals. Work on your people skills. Work on the numbers of the business.

I am sure all of us learned many lessons this past year, and one of them was to be financially prepared for a crisis.  While COVID was different, the financially-stronger shops did do better. 

Lastly, have a positive mindset at all times. And set the right tone as the leader of your shop. Your positive attitude will create the right culture and a pathway to better times.  

What lessons have you learned and would like to share? 

On 12/20/2020 at 9:53 AM, autoguy said:

Do you have a face mask required sign up at your shop or have you made one? I was browsing around and found these on Amazon:

Thanks for the info!  This is great!

Got your attention? Good.  That's the power of advertising and marketing.  I know many of you are affected by COVID and experiencing a downturn economically.   Studies have shown that the businesses that maintain advertising during downturns do better with market share and sales when the economy returns to normal. 

Maintaining your marketing presence is a lot easier and less expensive than playing catch up when things get better. 

I know the reality of tough times.  Do your best to maintain your advertising during tough times.  You will get back what you invest. 

Business is steady for us, but not like it should be.  Customers are understanding about their car care needs, but many are reluctant to spend. Probably due to the uncertainty of COVID and the impact is had on the local economy and life in general. I am cautiously optimistic about 2021, but we will need to work hard to do all we can to maintain and improve business.

Merry Christmas to all!  2020 was a challenging year. Looking forward to 2021 and beyond!

Today is Veterans Day. An important day when Americans honor and show appreciation for all who have served in the United States military—in wartime or peacetime, living, or deceased.

Thank you to all the Veteran for your duty, service, and commitment to preserving our nation’s liberties and freedoms.

What Your Customers Want to Tell You…But Don’t

Auto shop owners and managers:
Join us for a free webinar series and learn firsthand what actual customers think about the auto repair experience.

To learn more about the online event and to register, click the link below:

https://mitchell1.com/micro/elite-event/

The governor of California last week proposed a ban on all internal combustion vehicles by the year 2035.  A very aggressive move that the EPA is questioning if this is even legal.  We all know that the electric vehicle will make an impact in the future, but with the overwhelming of cars being build and sold in the next decade, how practical is the proposed ban? 

Your thoughts on this? 

Here's a article from Motor Trend: 

https://www.motortrend.com/news/california-ban-gas-diesel-executive-order-newsom/