Joe Marconi

The year was 1980 - the year I founded my company. And, like many new business owners, I didn’t have a clear understanding of what was needed to grow a successful business.  I thought that success would be determined by my technical skills and my willingness to wear the many hats of the typical shop owner. It wasn’t until I began to let go of trying to do everything that I realized that success is not just dependent on what I do, but by the collective work accomplished by the team. I eventually discovered that I was not the center of my universe.  After a few years in business, I began the transition from simply owning a job to becoming a businessman. And, while technology has reshaped our industry throughout the years—and will continue to do so—there is one constant that will never change: success in business rests largely on the people you have assembled around you.

By the late '80s it was obvious that I was doing way too much. I looked at each role I had my hands on: shop foreman, service advisor, shuttle driver, bookkeeper to lot attendant. And, as long as I’m confessing all this to you, I need to disclose that I was also the shop’s maintenance person; making repairs to the bay doors, the slop sink and equipment. You name it, I did it. I was literally too busy to be successful.

In order to lead my company, I had to first clearly define my responsibilities. These are working on the business, recruiting and hiring the best employees, becoming a leader of people and making sure that my business was successful. I also needed to fulfill the obligation I had to my employees. I realized that this required a deep understanding that putting people first is the best strategy for success. This was difficult at first because it requires working on things that have no immediate impact on the business. Unlike working in the trenches and having your hands on everything, working as a businessperson means that you need to spend time building for the future. The things that are most important to your success in business are the things that have a payoff down the road.  

I also clearly defined the duties I should not be doing and assigned those tasks to others. This is a critical step for any shop owner.  Warren Buffett says that in order to be successful in whatever you do, it’s crucial to focus on the things that generates the greatest return and that you can’t do it all, and that means sometimes you have to say, “no.”  

By the late '90s it became clear that the most valuable role I played in my business was that of coach. All the best marketing plans and the best business strategies mean nothing without a team of great people around you all pushing in the right direction. And that takes a strong leader. Not just a boss, but a leader.  Leaders inspire people. Leaders get others to reach down deep inside themselves and perform at their best because they are aligned with the leader’s vision. 

Leaders inspire others through praise and recognition for the work they do. When people feel their work matters, they have a purpose. People are motivated by the heart, not the wallet. That’s not to say earning a decent wage isn’t important. But a focus on money alone is not a strategy for success. Focus on people first and profit will follow.  

Spend time with your employees. Get to know them as people, not just the role they have in your company.  Find out what their dreams and goals are. And then find a way for others to achieve what they want out of life.  People cannot be motivated until they realize that what they do every day helps them to achieve what they want in their personal life.  

There are other people in our business world that we must never forget. And that’s our customers.  If you were to ask me, who is more important, my employees or my customers? I would answer, “They are equally important.”  You cannot have a successful business without the right employees and the right customers.  

One last bit of advice I can give you is to focus on your success, no one else’s.  Be very clear about the pathways you take and never forget about the obligation you have to others. Build a company culture of teamwork, quality and integrity.  Focus on what’s in the best interest of the customer and the people around you. Put people first, and everything else will fall into place.  

This story was originally published by Joe Marconi in Ratchet+Wrench on February 4th, 2020

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14 hours ago, JOEPROPER said:

I agree with everything said above.  Tech wages are too low and will need to rise, but in order to do this,  labor rates and parts margins will need to rise also.  The money needs to come from some where and the cost of living isn't shrinking, so this is the wakeup call that most shops are faced with. 

This has to do with the criticism / wake up call that I received recently.   I was told that my shop wasn't clean and orderly, which could have cost me an opportunity that I was in pursuit of.  Attracting techs and customers alike begins with your shop's appearance.   Clean and safe work place sets your shop ( in some cases) apart from the competition, which in turn allows you to raise rates and hopefully be more profitable.  This is only a piece of the puzzle and stepping back and analyzing your operation should be done regularly to optimize profitability. 

Attracting quality techs is and will always be an ongoing challenge, so I'll be watching out for any advice that I can get.

Well said Joe! And my hat's off to you for being professional and recognizing that we need do what we can as an industry to attract and retain quality people. And also attracting and retaining customers. Thanks for sharing and best of luck to you! 

With Mother Google literally tied to our hands, through our cell phones; are part margins becoming more difficult to achieve?  Traditionally, shops use a 50% part margin, which they deserve.  But, we live in a world today where part prices are so transparent that maybe we need to rethink this.

Consider this: What  if we concede on prices?  Hold to a suggested list…BUT…raise our labor rate to offset the loss in overall profit. In other words, keep your parts prices at a margin the consumer will not question,  but raise your labor to make up the part profit? 

This is being discussed around the country and there are shops that have implemented this strategy.  We can’t give up our overall gross profit, so is this a viable option?

Your thoughts?

Got your attention?  Good! 

Take it from me, a shop owner for 40 years;  before you invest a dime on advertising, get your internal marketing in order....in other words...get your house in order.

No amount of advertising or marketing means more than what you do each and every day. And that is creating an amazing customer experience that gives your customers a compelling reason to return.  

Make sure that each customer contact point creates a positive experience. The phone call, the drive up to your shop, the parking lot, the customer write-up, the upsell, the car delivery and every other point of contact with the customer.  

These things I speak of means more than any money you spend on advertising.  So, before you spend that dime, get your house in order. And remember, everyone in your shop is an important part of your marketing strategy! 

Usually the winter drops off in sales, but along with car counts.  This year is different.  Customers seem consumed with debt and worried about thier finances, and putting off needed vehicle maintenance.  Not good.  In the long run this leads to breakdowns and larger repair bills. 

It takes a while for any new employee to get up to speed in thier new position, no matter how seasoned they are.  We have found that using checklists for basic procedures are a great way to acclimate new employees.  

What strategies to you use to get new employees up to seed? 

There are many shops in urban areas that are using Uber and Lyft, and it's working.  Perhaps better than having a shuttle service. 

1 hour ago, xrac said:

Joe to this point we have only saw about 2 vehicles where we could have used one of these units. 

Us too Frank....not sure what to do at this point.  A local Body shop has the machine, and if we need a recharge we can farm it out to him.  I guess wait a little longer...maybe the price will come down more. 

We are begining to see the need for a Y1234 recharge machine. Who has purchased one and what tips can you share? 

Tech pay is determined by the profits generated by the repair shop.  Too many repair shops struggle and want to remain competitive, but don't realize that all too often we compare our prices to the masses that undercharge their services and repairs.  I have seen this time and time again for decades. It has changed somewhat since I started in 1974, but we need to go further.

Sit down and do the math.  Determine all your normal costs of doing business: Your rent or mortgage, insurance, workers comp, utilities, tools, equipment, computer programs, training, advertising and all other ordinary expenses. Then add up all those monthly costs. These expenses occur without even making a sale. AND, you haven’t even factored in payroll yet, or payroll costs.

Once you have this number, you will then have a better understanding of what you need to charge in order to pay all your expenses and to generate a profit….yes…a profit. 

On 1/15/2020 at 5:47 PM, FROGFINDER said:

Anybody offering vehicle pick up and drop off service at customers home or workplace? How is it going? 

We do, and it's going very well.  You will have to assign an employee or hire someone to shuttle customers and have a specific vehicle to use.  We opted to buy a small Van and have our logo on the vehicle.  There is a cost to have a shuttle service, but it does pay for itself by offering customers options. 

I don’t know your geographical area but set a few guidelines. For us, a ride to work could mean taking them to Manhattan, an hour-long drive. 

We live in a world today where convenience drives business. Shuttling customers could be a competitive advantage.

Imagine....You walk into Starbucks....You ask for a large cappuccino.  The cost? Over 4 bucks with tax.  You ask the barista if she could match the price from the local deli across the street….$1.95. 

You tell me what would happen. 

And for those who say it’s not the same. It is.  

Years back we never considered the car dealer a threat. But today it's different.  After the great recession, the dealers that survived understand that in order to thrive they need one thing….the independent aftermarket consumer.  In other words, your customers. 

New car dealers today are more competitive, their customer service has improved, they make a big deal at the time of the sale to get that customer back to the dealer for service, and they are very proactive with giving away oil changes and selling maintenance packages.

Your customer may be loyal, but under the spell of very convincing salesperson, a new car buyer just might cross over to the dark side.

What are you doing to retain your customers?

So far for winter 2020, we are having a better than normal season.  This is good news since, late fall sales fell. I am hopeful this will continue. Sales of new cars fell last year, with the average age of cars on the road are at an all time high. Near 12 years.  And the scrappage rate has greatly declined.  

What are you seeing in your area?

Update Winter 2020, We are having a better than normal season.  Happy and hopeful it will continue. 

We all survive by and need healthy car counts. That's a given. But all too often I see auto repair shops with "steady" but not "growing" car counts, but with new customers coming in each week.

So, the question is, "If a shop has steady car counts and has new customers each week, then why are car counts not growing?"  

This is a topic that's complicated for a post but here are a few things to consider:

1. Is your marketing attracting the right customer that matches your key profile customer? If not, the wrong customer may be a one-timer and that does not help your car count.  Or, if you are promoting too much discounting, you may be attracting the wrong customer, and that's not a long-term strategy either. 
2. Are you making every effort to WOW all new customers and create an amazing experience that gives the new customer a compelling reason to return? All too often we are too transactional and don't spend enough time establishing relationships.  Make every effort to spend time with each customer and ESPECIALLY with first time customers. Its the relationship not salesmanship that builds a company!
3. Are you booking your customer’s next vehicle appointment?  Please don’t tell me this does not work. It does!  Hairdressers do it, doctors do it, dentists do it, nail salons do it. My chimney cleaning service company evens books the next chimney cleaning!  If you are not booking your customer’s next visit, trust me, someone else will.

I hope this makes sense. What are your thoughts? 

“Why are we discussing these issues when the people who need it the most are not here? We’re not reinventing the wheel. We get it. But the ones who don’t get it need to be here, too!” 

Those were the words spoken by one of my service advisors during a recent meeting. We were discussing quality issues and ways to improve overall production, which, we determined, would improve sales and profit. I listened as Tommy (not his real name) continued for a few minutes. I could hear the frustration in his voice, so I let him speak until I felt he expressed all his feelings to the group. 

I am a firm believer in holding regular meetings. And, while there are times when the group gives me feedback, rarely does anyone voice their opinion with such passion and intensity the way Tommy did that day. Drawing on experience, I thanked him for his openness and honesty. I also asked him if we could continue this discussion in the morning in private. He agreed. 

The next morning, I paged Tommy and asked him to come to my office. I thanked him again for his openness and asked him to elaborate more on what he said the night before. Tommy hesitated at first, but slowly began to tell me his frustrations. It really boiled down to the level of commitment from a few techs. Tommy spoke in length about what he would like to change in the shop, and again repeated that we’re not reinventing the wheel. His words were clear and on point, “Joe, we all know what to do. We all know our goals. And we all know when we perform to the level we are supposed to. So, I just don’t understand why all of us can meet those expectations.” 

Tommy’s insight into the work environment and the dynamics of people’s behavior was perhaps deeper than he even realized. When people within an organization feel that some of their coworkers are not pulling their weight, animosity begins to set in. Essentially, your top employees want to make sure that everyone is committed to the company’s success and doing their very best for the greater good of the team.

We also need to remember that people look at things from their own perspective. And their perspective becomes their reality. The key thing is to keep the lines of communication open, learn from each other and try to view different situations from the viewpoint of others.  

After nearly 30 minutes of discussion, it was time to give Tommy my input on how I viewed the situation. I let him know that, while not everyone will be in total agreement with how he views these concerns, he has made a giant step forward at letting me know the issues we have in the shop. I then asked Tommy, “Out of our 16 employees, how many people in your opinion, without giving me any names, do not live up to the expectations of the company?” Tommy thought for a moment and replied, “Well, when I think about it, just a few. Two, maybe three.” Here was my opportunity to bring logic into a very emotional discussion. “So, what you are telling me is that the majority of your coworkers do live up to the company’s expectations and do a quality job?” Tommy replied, “Yes, I didn’t see it that way.” I let Tommy know that I would take his ideas and implement them into my strategy to improve the work environment. He appreciated the fact that I listened to his concerns.  

Here’s the bottom line. When a person speaks up like Tommy did—listen to them. Don’t shut them down. They are expressing more than their frustrations over a few of their coworkers. They are giving you real-life, from the trenches information. And although it may be from their perspective, their viewpoint can give you valuable information that will help you and your company improve. Even a few people not pulling their weight can be enough to affect morale. And others may be feeling the same way. 

What you don’t want are “yes” people who merely agree with you because you’re the boss. No matter how uncomfortable it may be, welcome feedback and criticism from your key people.  We also need to listen more and speak less. And most of all, we need to understand that the solutions to our problems don’t always have to come from us. Sometimes, an employee’s outburst is just what we need to put things in the right perspective. 

This story was originally published by Joe Marconi in Ratchet+Wrench on January 1st, 2020

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What’s wrong with my employees? Why don’t they do what I ask of them? It’s the same thing every day.  I say one thing, they do another. It seems as if I am the only person who knows what to do around here.  

Does any of this sound familiar? Have you said these words, or a variation of these words, from time to time? If so, you’re not alone. Getting people to follow policy or a new marketing strategy sometimes feels as if you are trying to move the earth off its axis.  

People in high levels of authority are well-aware of the need to get things done. Each member of their team plays an integral part in the success or failure of the organization. In your shop, you are the authority: you are the shop owner. You know that the responsibility of attaining success directly rests on your shoulders. This is a weight you carry around with you each day. 

Eventually, if your efforts don't attain the results you need to run a successful business, you begin to look around to find out what’s causing the problem. And the tendency is to assign blame. All too often, you find that your employees are not all pulling in the same direction. And you determine that this is the cause of your problems. The following may not sit well with you, but if most of your employees are not engaged and not performing up to your expectations, it’s probably not their fault. You need to take a long hard look in the mirror. The fault may lie with management, and that means you. 

Assigning blame is destructive. It keeps our focus directed in the wrong areas. This is not to say we can never have a bad employee. But, if we focus on seeking blame, we are directing our attention from where our focus should be; and that’s accepting the responsibility to correct what’s happening and make the necessary changes. 

In order to really get things done and achieve personal success and the personal success of your employees, it takes the cooperation of each team member. Getting people to work as a unified team involves commitment, not compliance. Compliance is demanding people to do something. And they will—but only up to a certain point and only for a certain period of time. What you need from your employees is not compliance; you need commitment. 

Surveys have shown that the majority of employees in most businesses are not engaged at work and the primary reason is that most employees don’t know the overall goals and vision of the company. And they also don’t know what’s expected of them. Employees are largely left to react to their situations during the day; never really having a clear understanding of how their role contributes to their success and the success of the company. 

A business team is no different than a sports team. Every member needs to know the objective and goals. Imagine the coach of a football team who does not let the quarterback—or the other players— know what the play is? He simply tells the players to get out on the field and perform. After all, the players are well-trained, highly capable and all professionals. Shouldn’t they know what to do to win?  And when they fail to win, the coach ends up blaming the players. Is this a ridiculous analogy? It may be, but this is what happens every day in shops across the country.  

Your best employees don’t want to fail. They don’t intentionally ignore what you want from them. It’s more likely that they really may not know what you expect from them. Employees need to know exactly what is expected of them and they need to be motivated and inspired to perform their best. However, the only way your employees can perform at their best is for each of them to know what the company goals are. In other words, what is our overall objective and how we, as a team, are going to achieve it.  

Each employee also needs to know that when the business wins, they do, too. When employees realize that achieving the company goals is also aligned with achieving their personal goals, you have commitment. And commitment equates to success. 

Communicate the goals of the company often. Communicate what success looks like and how we are going to attain it. Create a workplace where the goals of the individual are aligned with the goals of the company. If things get off track, just look in the mirror. If you want to blame someone, you might want to start with yourself.  

This story was originally published by Joe Marconi in Ratchet+Wrench on December 3rd, 2019
 

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A few years back, my service advisor, Tony, was trying to sell a customer a new battery. Let’s call this customer Ed Jones. Here’s how the conversation unfolded; “Mr. Jones, my technician completed our 21-point inspection on your vehicle and everything checks out fine. However, I do want to discuss the battery. Your battery was tested with our Midtronics digital battery diagnostic tool, which is a very accurate piece of equipment. Your battery is rated at 575 cold cranking amps, and your battery tested at 300.  Would you like me to replace the battery today?” Ed Jones looked at Tony, and three seconds later said, “Thank you for the information. Let me think about it.”

I know Ed very well. The car we were servicing that day was his daughter’s car, who was home from college for the Christmas holiday. Ed’s daughter is in her first year at Plattsburgh University in upstate New York, which is about a five hour drive and near the Canadian border.  

I could see the frustration on Tony’s face, so I gave him a little advice; “Tony, ask Mr. Jones who drives the car. After he answers you, ask him what the car is used for. Listen to his answers and then use that information to sell safety and peace of mind, not a battery.”

Five minutes later, Tony reported back to me excited and amazed; “Joe, great advice!  He authorized the battery! I guess you knew he would buy the battery with the right questions?” I replied, “You were trying to sell Ed Jones a battery by pointing out the technical process we use to determine the health of the battery. What you need to do is reach the customer on an emotional level. The questions I recommended you ask made him realize that it’s the welfare of his daughter he was really buying, not a battery.” 

Now, let’s clarify something. Tony didn’t say anything wrong with his sales presentation. But he got the process backwards. He was leading with logic. If you’re trying to sell something by using logic alone, you are going to struggle. People make buying decisions based on emotions. To make a sale, you need to connect with the part of the brain where emotions reside, and then back it up with logic.   

Bombarding the customer first with facts and features tends to confuse the brain as it tries to make sense out what you are saying. That can be difficult because the technical information is usually not fully understood by the customer and the confusion usually results in the customer saying, “No.”  

Let’s review the conversation when Tony asked the right questions; “Mr. Jones, who drives this car?” Ed replied, “My Daughter.” Tony continued, “And what does she use the car for?”  Ed replied, “She uses it to go college at Plattsburgh. She’s home for the holidays and goes back to school on Monday.” At that point, Tony realized why I urged him to ask those questions, and continued with, “So, your daughter drives this car back to college, and leaves on Monday. She goes to Plattsburgh, which is near the Canadian border.  Mr. Jones, it’s wintertime and that’s a long, lonely drive. Her battery tested weak and may fail without warning. For peace of mind and your daughter’s safety, wouldn’t it be in her best interest to replace the battery before she leaves?” Ed now makes the emotional decision, “Yes.” 

Here’s the bottom line. First, know your customer. Build rapport during the write up process and find out all the details of why the car was brought in for service. Second, tone down the technical side of what you do. That’s not to say it’s not important. But, before you give the technical facts, reach your client on an emotional level. Ask questions to find out as much as you can about the customer, and then direct the conversation to the reasons why what you are trying to sell will benefit the well-being of the customer and/or the customer’s family.  

Remember, decisions are easier to make when it has meaning to them or a family member. In Ed’s case, not replacing the battery would have been unsettling to him. Tony’s recommendation to replace the battery is perceived as the right decision because it promotes the safety and well-being of his daughter.

Humans are driven by feelings and make emotional decisions, then justify it with logic. Next time you are trying to sell anything to a customer, ask yourself, “Why should the customer buy what I am trying to sell?” The answer may surprise you. 

This story was originally published by Joe Marconi in Ratchet+Wrench on November 1st, 2019

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You need to get Garage Keepers insuance ASAP - I don't know if anyone on this forum can help with that; expect to say that you need to protect yourself. Make this today's main and only goal. That's my opinion. 

Matthew, all great points.  Which I do agree with.

Before I would even entertain a price match, let's match it line by line.  In the 40-plus years in this business, I have never seen a job matched up the same exact way. There is always something left out or the parts are not the same, or the warranty is not the same, or there's something else that makes their job different from mine.

We all know how so many play the game.  ABC Auto gives a customer a price for a water pump, thermostat, hoses and labor. The customer calls a competitor and asks, “How much is a Water Pump?" (Neglecting to mention all the extras) The competitor gives a down and dirty price on only the pump and labor.  Which makes the "perception" that ABC auto is priced too high.  

With tires is worse. This particular company advertises online pricing for the tires only. When you book your appointment and arrive at that tire store, they then explain the labor to install, and upsell the wheel alignment.  Often making thier price higher than mine or other shops. 

Here's the bottom line for me; I don’t sell parts and labor.  I sell relationships and trust.  And through the years, I have been successful with that strategy.  I learned a long time ago that If I want to have a quality shop and afford to pay my employees a very good wage, I need to attract the consumers that appreciate the work that we do.

Now with that said, if I get an objection about price, I will offer options.  I find that when people are left in control and decide between A or B, and not yes or no….A Sale is Made.

Thank you for the great conversation!  This is how we learn and grow!

Joe 

Monday is Veterans Day.  Let's honor and thank those who served in the American Armed Forces 

The other day, a customer asked my service advisor, if he would price match a set of tires.  This customer got an online quote from the internet; a local TIre Store know for discouting tires. 

My rule, I don't price match. My prices are competive and fair. 

Would you price match just to get the job, and sacrifice profit?   Remember, no one really knows the true cost of any service or repair until the car is in the shop.  So, internet quotes are not set in stone.   

Painted floors do make a difference, but depending on the process, it can be quite expensive. There are many different products too.  Do your homework. 

The mild fall appears to have caused a slow down for many shops. We have seen this before.  But, winter tempertures are here, and the threat of snow will boost repair shops.