Joe Marconi

I know that for many of us, these are tough times.  But, as the saying goes, "This too shall pass."

The reality is that no matter how bad things get, we will get through this.  The question now should be, "What did we learn from this and how can we make ourselves and our businesses stronger."

Out of every crisis there is triumph.  You cannot have a rainbow without a storm.  Learn from this crisis.  Make decisions that have long-term affects.  I know many of you are in crisis-mode, and rightly so. But the more you plan for the future, the better and stronger you will be.

Get your numbers in order. Re-calculate your break-even, trim the fat off the expenses, get payroll in line with sales, negotiate your rent or mortgage and other loan terms, build a larger cash reserve. Don't sit on your hands.

You are a shop owner....You wrote the book on Being Tough. Now, in the time of Crisis, prove it! 

12 hours ago, tomkatv10 said:

This post is getting us a decent amount of cars. Obviously the price is right, but this has been shared 42 times and over 10k have seen it. We've gotten a lot of five star reviews from it including one from the township fire department. NAPA is providing the oil and filter. I’m providing the labor. We haven’t tried to sell anything else on the customers car, just informed them. About 50% got other work done and the others have said they’ll definitely be back

I like it.  This type of community involvement goes a long way, and people will remember it for a long time. 

14 hours ago, dfrisby said:

From Minnesota, that looks pretty solid still.

Agree....There is still a rear quarter panel... what more do you want? 

1 hour ago, xrac said:

Joe, you may find this if interest:

https://www.bloomberg.com/graphics/2020-sba-paycheck-protection-program/

Wow. It kind of confirms what many of us have been thinking.

1 hour ago, xrac said:

Joe, you may find this if interest:

https://www.bloomberg.com/graphics/2020-sba-paycheck-protection-program/

Wow.  This confirms what a lot us have been thinking.  

I think that many people are paying attention to local businesses now more than ever. But, they are not reacting. So many are hunkered down. And we understand that.  

I would encourage every shop to continue to send "Feel Good" promotions and message to your local community. Down play any hard sales, increase your exposure through all the media you use to tell everyone Your Story - "We are here to help. Auto-related or not.  We are part of the community!"

People will remember WHO you and your culture long after the crisis is over. 

4 hours ago, xrac said:

Yesterday we removed a tail light to change a bulb! Surprise as this is what we found. Joe you may see a lot of this in the rust belt but here not so much. 

Ha!  This is common in my neck of the woods!

We have not gotten our PPP money yet.  It is frustrating that so many businesses are suffering.  

While I am believe that businesses need help due to the crisis, we need to look beyond this crisis and rebuild our businesses. We need to make the adjustments to payroll, trim expenses where we can, and undertand our new KPI's.  If business remains soft for the near future, we need to undertand what we need to do to remain in business, while undertanding the long term affects of the economy. 

My advice is to restructure your business to meet the current state of sales.  Utilize the financial help with the understanding that any long term success will be deterimined how you as the shop owner adjusts your business to your sales.   Keep payroll and expenses in line, and prosper. 

Thanks Frank! I appreciate the kind words.  I will keep giving everyone updates on the cirisis from New York.  If a guy from New York can make it through this, we all can!

America Together! 

New York Governor announced yesterday that the stay-home order will remain in effect until May 15th.  With so many consumers not driving and so many businesses closed; sales will be a struggle for the next  4 weeks or more.  Many Auto Shops across the country will be in the same boat.

Ok, that's the bad news.  The good news is that you are a shop owner, and no stranger to making tough decisions and finding solutions to the most complex problems. I know this is different, but truth is we are all learning together, and we will beat this.

With that said, you will be called upon to remove the emotions from the situation and make the decisions that are best for your employees, family and for the business.  You will need to look at your average sales and projected near-future sales and adjust your payroll accordingly.  I hesitated for a few weeks, but then made the tough decision to cut staff to get my payroll in line with current sales. It had to be done.  

You will also need to look at each line on your Profit/Loss statement and see where you can shave any expenses. Even a few percentage points can end up saving a lot of money at the end of the month.

Lastly, have daily meetings and let your remaining staff know what you are doing. Let them know that the number 1 goal is the health and welfare of everyone. Number 2: Ensure the business thrives, not just survives.

You are tough....now go make those tough decisions! 

9 hours ago, Plony's Auto Service said:

We were approved for the ppp today but have not closed on it yet, has anybody seen the fine print?. I don't really want to incur additional debt especially now.

I am on my 5th round of more PPP paper with my bank.  You really need to speak to your lender for all the details.  As it's written right now, you have to use 75% of the loan for payroll and hire back to pre-crisis level before June 30th.  I am not an expert on this, so get the right information.  Your concerns are valid; you don't want to incur more debt after this is all over. 

Topauto, you are on the right track.  Be very carful as we move forward with all this help.  Speak to your trusted advisors and don't get into a situation where you pile on debt after this is all over. 

For some shops, that were forced to close, you will need to seek help. But again, be careful.  Debt has a way of biting you back. 

1 hour ago, JimO said:

To Frank - I feel so bad that you and so many other people are being faced with such difficult decisions. This is certainly not a good time in our country and I hope that you receive your much needed stimulus money as soon as possible.

To Joe - Your comments to Frank are written from your heart and in a way that is surely helping us all. We all need encouragement, we all need to hear that what is happening is beyond our control and we all need to know that if we need to let go that it is OK. I applaud your efforts and ability to communicate your thoughts in a way that is so helpful to everyone. Thank you.

Thank you for your kind words JimO! We need to remain strong and positive during this crisis, just as we, as a society, have done in the past.   Shop owners are tough. Look what we do when things are normal??? We are in the trenches each day, fighting the battles we were born into. Let's pray we stay healthy and when this is over, we will have learned so much and be better off than before! 

By now, the dust is settling a bit with regard to the COVID-19 crisis, and we are well into making the adjustments needed to save our shops. There are many shops around the country that have not been affected, and there are many that have been devasted economically. Being from New York, I can tell you that the last 8 weeks have been tough. With sales down more than 50%, I had to make a lot of tough decisions. 

The good news (so far), my family and myself are all healthy, and none of my employees have contracted the dreaded coronavirus. I pray each night that it stays this way.

Now, I look beyond the virus. I need to rethink my goals, my financial expectations and feel confident in the fact that we will beat this, and believe that we will be better and stronger when this is all over.

I know many of you are seeking help from the SBA, negotiated terms with your vendors, have worked our deferments with mortgages, loans and insurance payments. And I know that many of you have made the needed adjustments to payroll and staffing.  All these things are essential, but the most important factor for you to survive and thrive will be how you handle yourself and your leadership in the coming weeks and months. 

You must believe in yourself. Trust you gut and move forward. Remain positive. Shop owners are the most resilient business owners on this planet. Don’t forget that. Move forward starting today and look beyond the virus!

6 hours ago, Plony's Auto Service said:

Technicians that we kept on to work are angry at the amount of money  that people are getting on unemployment for sitting home doing nothing .  Our techs are working extremely hard, are somewhat overloaded,  and putting themselves at risk by exposure to potential areas of the virus. I'm open to ideas as to how to address this    @Joe Marconi . 

There is no easy answer to the question about unemployment and the additional federal unemployment. Human nature kicks in as those that have not lost their jobs feel that it is unfair.  

I have communicated to all my techs the reality of what is going on.  We have seen sales drop more than 60%.  I had to make a choice, and the employees that I selected to lay off were those that I felt were the ones that were most expendable.  The employees that I did not lay off are the ones that show ethics, leadership and high morale.  

I am correct with my plan and decision?  Who the hell knows. I am learning on the fly like all of us. 

45 minutes ago, alfredauto said:

During the 1918 Flu pandemic historians said it took people 3-4 years to get back to "normal". I am staying positive but I'm concerned.  I think if everyone goes back to work in a few months it will be a miracle. I'm thinking 12-18 months minimum. I'm hoping that there will be school in September but I'm not even too sure about that at this point. 

I tend to agree, especially in the hard hit areas like New York, where I am from.  The big difference from the 1918 pandemic is technology. We can do more today and much greater speed. But, you are right, this crisis just can't turn itself off. Let's be prepared for a bumpy ride and hope it's not as bad as we anticipate. 

5 hours ago, JimO said:

I own a gas station with repair bays and my staff of 14 is now down to a staff of four including myself. Some left because of warranted pre-existing health conditions but a major portion of my gas island staff left because of fear. My shop is in North East NJ in the shadow of NYC. Positive test results and fatalities in my county are unfortunately the highest in NJ so it is easy to understand that my employees are fearful.  I am very grateful for the staff members who have soldiered on and stayed with me. If I succeed at obtaining this SBA Loan Paycheck Protection program how could I send a paycheck to everyone that stayed home because of fear? What message does that send to my other staff members who stayed with me and worked? Two choices: Stay home, watch tv and get a check in the mail OR come to work every day, expose yourself to this terrible virus and get a check handed to you. Not a difficult choice to make. As Joe mentioned “read the fine print” which is a very valid point. Unfortunately life right now is beyond hectic and filled with long hours, major business disruptions, heightened tension caused by the threat of contracting this virus coupled with the fear of bringing it home to family members and now we also have to read the fine print. That is a job that I hate to do (I think by nature most mechanics avoid fine print thinking they can figure it out on their own) so I am following Joe’s second suggestion and we will be reviewing all options with our accountant tomorrow morning.

Great points JimO!  No doubt your story is similar to so many other shops.  Being so close to NYC, makes it different too.  Keep us updated and stay safe!

1 minute ago, xrac said:

Joe, I may chose to close or at least pass the reins to someone else. 

Frank, in times of crisis, there are no wrong or right decisions. You have been on the front lines as an automotive shop owner for a long time. You should be proud of who you are and what you have done.  No one can tell you what is best for you and your family. If this is your decision, hold you head up high and enjoy life with the knowledge that you gave it your all for all of us to make the auto industry better! 

First, let me clarify one thing: I AM NOT THE EXPERT.  But there are  things about the PPP that concern me. Such as this quote fron the SBA:  "Forgeven amounts will be considerded income for federal tax purposes." So, if you get a forgiven loan in the amount of 100,000- that will be added as income? 

And, the fact that we need to rehire to full staff by June 30, 2020.  So, in an area like mine where we don't expect business to return for 6 months or longer, I need to rehire to full staff, with 60% of sales down, use the SBA PPP to make payroll????   This is insane economics.

I do not want to rain on anyone's parade here. Being in NY, I got hit early and got hit hard.  We are going on more than 8 weeks with little to no business.  I too need financial help.

Look, the point is take it slow and get all the information from a pro.  This is what I need to do too.  Please get the advise from your banker, your attorney, financial advisor and your accoutant.

The only  true way out of this is for business to return to normal, through sales and revenue.

1 minute ago, xrac said:

Joe, if this continues another 2-4 weeks on shutdown I just don't see us ever being able to recover from it.  The government is leveraged to the hilt and hasn't got enough money to make people whole.  

I agree Frank!  Nothing matters until people can move about and spend their money.  We need people going  to resturants, to the deli, to the hardware store and to us. This nationwide shut down and people ordered to stay home cannot be fixed by throwing money at it.

Frank, you know me a long time.  I am the most positive person around.  I am not going to fool myself or anyone, brace yourself and plan to rebuild your businesss. YOU and Me and every other shop owner will  need to accept this.  The alternative is to close. 

2 hours ago, MINI4U said:

We just submitted our application for the SBA Paycheck Protection Program. Two different accountants said it is a no brainer. It will pay for all the employees and us the owners for 8 weeks plus money towards rent/lease and utilities. And we don't have to pay it back! No fees either!

Be careful. Please read the fine print. There are conditions.  Speak with your bank advisor and/or accountant. 

1 hour ago, xrac said:

Joe, I will continue this week but beyond that I am not sure. I have to have the stimulus money to stay open. If I don’t get it with 10 days I will probably consider shutting down completely. This is a fine place to find ones self in at 67 1/2 years old. 

Frank, at 65 years old, I feel the same way.  You are not alone. Most shops, and many small businesses, cannot continue without financial help. However, my fear is that it may not be enough, since the only way out of this is through sales, not a bail out.  And while a portion of the PPP loan will be forgiven, there are conditions to be met. 

The amount forgiven is reduced based on failure to maintain the average number of full time equivilant employees by June 30, 2020. So, does that mean we need to hire back to full staff, even though there is no business???? This would lead to using the money for payroll, but little help with other expenses. No Customers + No Sales = No Revenue.  0+0=0

Another question for the SBA and the Feds:  How does the PPP Loan help those businesses forced to close or must close due to no business?  Again, rehire staff? For what purpose? 

These are tough times, and while the Feds and the SBA want to help, at this point I really don't know the best way forward.

One thing is for sure: No customers means no sales and that means we cannot pay our bills. 

You will see many businesses throw in the towel, and sadly that may be best for them. 

Now more than ever, make each decision carefully.  Communicate and be honest with the staff. Face the brutal facts of the situation, and make decisions based on the long term future. For many of us, it will be like starting over. And that's ok.

Nothing is more important than life itself.  Let's keep that number one.  The rest, will work it's way out. 

I feel for you Frank, and for all other shop owners in this position.  I am in New York, not far from the epicenter, and it's not pretty.

Stay safe everyone. Hug your kids and your family. Facetime friends and family and Pray.  We are all in this togther, and we will prevail! 

One of the toughest decisions we face with the COVID 19 crisis is how much staff we need.  When do we impose layoffs?  I have never in 40 years had to lay off an employee due to any economic crisis. But this time it's different.  Half my staff is layed off, primarily becuase sales have dropped more than half. 

To paraphrase Abraham Lincoln: "It's better to cut a limb to save the body; never sacrifice the body to save a limb."  

Believe me, it's tough, but we all need to make the decisions that we save your company.  

Thanks Alex. Shop owners, find out all you can about the SBA and other programs.  Conact your banker and your accoutant.  There is help for small business. To be honest, it may be a bandaid for a  much larger looming problem. But, you need to do it.

I too am concerned that things we consider normal may not return for some time.  There is also too much confusion comimg from all sources, including the SBA, the news sources and the government.  Here is one example: The Payrolll Protetion Program from the SBA has as its goal to get businesses to keep thier empolyees working?  Many businesses are forced to closed, considered non-essential. And the ones that are open, like mine, have seen a 50% or more drop in revenue. That means we cannot pay our bills. So to think that any money we do get would be to keep employees on the payroll is not practical.

I am not painting a bleak short term future, just facing the reality of the crisis.  We need to see the virus contained, the curve flattened and then decline. We also need the people in this country to go back to work for things to begin to get back to normal. I see that months away.  I hope I am wrong, I really do.