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Joe Marconi
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Everything posted by Joe Marconi
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Makes sense, and agree. -
I am in total agreement. You know, way back in ancient times...the early 1980s, I only accepted cash and checks. As the price of repairs and services began to increase dramatically, it became unreasonable to expect customers to only pay in cash or check. We are on the same page.
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Many auto repair shops are adding a fee to the final invoice for customers using credit cards. I get it, but don't agree. For me it's simple. First, do your best to negotiate the best deal from your credit card provider service. Next, take that fee and add it to your cost of doing business. To me, I consider this fee an expenses, just like all other expenses: office supplies, utility bill, insurance, taxes, training, travel expenses, maintenance, etc. etc. From your total average monthly expenses, you will be able to determine your breakeven, and from there, set your net profit goal. In other words, forget about the charging the customer a fee, just build into your overall prices. You will accomplish the same thing, and not bring attention to the customer that small fee that may be a big deal.
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Great points, and I agree. Too many things can go wrong in our business. We need to protect everyone involved.
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You make a lot of sense, and I agree!
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Not a fan of earbuds. Too many hazards in the shop, you need all your senses. Plus once those earbuds are in, the person is in their own world. The wrong message in my opinion. If employees are overconcerned about background music, and the shop cannot come up with a compromise, that alone is an issue.
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Agree 100%!!! Shop owners need to sit down and do a deep dive into their operating expenses, and track it back over the past few years. That will open a few eyes! Many shops are doing better in SALES (not profit) because of increases in labor rates, and increases in parts. BUT the gross and net profit have probably not increased, and I would wager a bet, have gone down. When ever you hear about a shop stating their numbers, it's always the Top Sales Number. That number means nothing. It's the NET, what you keep that matters.
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There are so many issues with our industry, and you point out some of the more severe. The auto aftermarket needs a reset. Shops need to do all they can to get more younger people to enter our industry, we need to provide the best training available, great pay with benefits. And most of all, create a culture where people (including the boss) is respected. This takes money. Too many shops don't understand this, and undervalue what they do. To think we can hire "THE PEFRECT TECH" is no longer a reality for most. Another thing, techs today are always looking over the fence for greener grass. is it for money only? Or do have have bigger issues? I don't have any easy solution, and you bring up great points. Perhaps is starts with these conversations.
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Sometimes to narrow your focus ends up being more profitable.
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Upstate NY? I live in Putnam County NY, originally from the Bronx! Now that I am a business coach with Elite Worldwide, after spending 41 years as a shop owner, I have seen labor rates around the country raise increasingly the past few years. While EVERY shop MUST do their own calculations, I can tell you that $150 to above $200 per hour labor rates are becoming more and more common. It needs to be if we are going to attract and retain qualified employees and pay them the wages they deserve. AND to allow the shop owner to earn the pay he or she deserves.
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You bring up a great point; marketing must be consistent and continuous. How do you measure the effectiveness of each marketing strategy?
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The only reason I asked is because I have shop owner friends around the country, and I hear too many cases where the overtime laws are very confusing, even with flat rate. When I had my shop I used an HR company (SESCO). They opened my eyes to a lot that I was doing wrong. One NOTE, my two shops were in New York, so that too makes a difference.
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Aren't there overtime laws to consider even for flat rate. I have heard so much about the different changes to the laws. Just asking?
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How Do You Handle Techs Who Don't Want to Attend Training
Joe Marconi replied to Joe Marconi's topic in Education & Training
I like the approach. Make it part of the company culture and company expectations! -
Wow! With that many cars, it must be hard to manage! A good problem to have, right?
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Speaking with shop owners, there are always some that complain that some of their techs do not want to attend training. How do you convince or persuade techs to go to training?
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Ha! Well, that is a pretty interesting strategy!
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The raising of labor rates the past few years has increased revenue for many shops. What about car counts, steady? increase? decreased? And parts are an issue for many around the country too.
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When I started my shop in 1980, cars broke down a lot! Every day we had no shortage of work. We did no advertising. No need to. Those were the days, right? Well they are long gone! Today, auto repair shops must get customers to return by promoting preventive maintenance services. Maintenance is profitable, and best of all, it is a BIG benefit to the customer. It also gives you more control over scheduling. When you are in more control over your schedule, you become more productive, which increases sales and profits.
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Another outstanding podcast! The podcasts on Remarkable Results Radio is like a full-blown Business Course!
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I am from New York where flat rate is not the norm. However, when I speak to other shop owners around the country, many love flat rate. We are seeing a shift in the shop owner pay their techs. So what is your preferred method of paying your technicians?
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In our quest to attract and retain technicians, most auto repair shops have increased their benefits package. Examples are flex time, paid holidays, sick days, personal days, no overtime, and more. However, doesn't this affect overall technician production. Afterall, nothing gets billed until the tech works and completes a job. The more time away, the less time available. I am pushing a few button for a reason. Shop owners and managers must look ahead now to the following week and look at Available Labor Inventory. If a shop books too much work, and does not have the techs, what happens to the work? Your thoughts?
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As a business coach with Elite Worldwide, and a former shop owner for 41 years, I am in touch with many shop owners across the country. Many shops are beginning to complain that business is slowly up a bit. But, when they are challenged, asking about car counts, it becomes clear that something else may be happening. For the most part, car counts are the same, maybe slipped a little for some shops. But, perhaps the biggest stat is the drop in ARO and sales. So, what is happening? Consumers are afraid to spend money? Service advisors have become complacent? Is there another factor at play? Or are we in normal just back to the way it has always been?
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Another great podcast from Remarkable results. SOPs are crucial for financial stability, growth and employee engagement!
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I am so proud of this group! And so proud to be part of Elite Worldwide as a coach and presenter of Fly with the Eagles. The level of professionalism is incredible, and increasing every year. All of us need to be proud of our industry! I have a renewed confidence that through training, providing a great workplace and taking great care of our customer, the aftermarket auto repair service and repair industry will continue to dominate! https://eliteworldwide.com/
