Joe Marconi

2 hours ago, autoguy said:

Everything keeps going up except the cost of parts which seems to be driven down by competition and availability online.

You are right on target.  Even without the internet, part prices in general are lower now than they were years ago.  That's why we need to be careful with margins. A 50% margin on a water pump that cost us $40, five years ago, is not the same as a 50% margin on a water pump today that cost us $30.  Years back we made $40 on that pump, now, at the same margin we make $30. Pay attention to dollars, not margins.

Add in the internet, and you have challenges. That's why we need to sell the Customer Experience, and make sure our labor dolllars drives our profit.  Keep expenses under control, keep production up and make sure we all get paid for the hard labor we do each and every day.   

I am, and the products are great and so is the support from my rep. We also promote the BG Lifetime Protection Plan.  This is a Gold Mine for shop owners.  You sell the service and the customer has a protection package.  If a failure does occur, such as a caliper or wheel cylinder, the customer has coverage and in most cases BG pays the entire bill.  And the best news is, it's not like working with an extended warranty company.

In terms of marketing, BG is something I would urge every shop to consider.

We sell service, not products. Yes, we sell water pumps, brake pads and air filters. And yes, those are products. But it’s the service we sell, the customer experience, which lives on well beyond the customer leaves your shop.

Think of it this way; when you buy a watch, or a new cell phone, the experience of what you purchase continues after the sale. When we replace a customer’s water pump or air filter, there is very little about those items that lives on beyond the sale.

But, what does live on is the customer experience. The better the experience, the more likely the customer will return to you.  So focus on the customer experience, not the products you install.

12 hours ago, xrac said:

Good story Joe! You are spot on.

 

Thank you Frank!  I always value your opinion.  If I don't speak with, Merry Christmas and all the best in the New Year!

Can someone truly have two personalities? A real life Dr. Jekyll and Mr. Hyde—the one you see, and the one everyone else sees? I had a Dr. Jekyll and Mr. Hyde employee a number of years ago; we’ll call him Dr. J. He was my shop foreman and helped the manager run the daily operations. Dr. J was employed about five years before things began to change.

I first learned about Dr. J’s erratic behavior from a few of my employees. According to these employees, his behavior was destructive, disrespectful and rude. He never acted differently in front of me, so I had a hard time understanding what was going on. I talked to Dr. J about what others were saying, and he looked stunned.

“Joe, I really can’t tell you why anyone would be unhappy with me. I get along with everyone,” he told me.

I met with the employees who expressed concerns and let them know that I appreciated their feedback. I told them that Dr. J had been with us for a number of years and that I had never witnessed any unusual behavior from him. I tried to look at all sides and suggested that perhaps he was going through some personal issues, so let’s try to be a little more understanding.

Out of respect, the employees agreed—but not for long. I was away on a business trip when I got a disturbing text message from one of my technicians. The text read, “Joe, if you don’t do something about Dr. J, we’ll deal with it ourselves.” It was late when I got the text, but decided to call the tech anyway. He told me in great detail what Dr. J was saying and how he behaved. I was shocked by what the tech told me. Could this person be a real life Jekyll and Hyde?

It was early Monday morning, my first day back, when my office manager came into my office, closed the door behind her and said, “Joe, if you don’t do something about Dr. J, people are going to quit.” I knew at this point I had a real problem on my hands.

I brought Dr. J into my office and told him everything that I had heard. I told him that the employees did not like the way he treated them and that the harsh words he used was causing a problem with everyone. Again, Dr. J was defensive and denied everything. However, this time he told me his perspective of the situation.

According to Dr. J, the rest of the employees were not pulling their weight and that all he was trying to do was to motivate them. I tried to explain to him that criticism and harsh words are viewed as an attack. And if this strategy is repeated over and over, people will push back and shut down—the exact opposite of any intended good. I could tell by the look on Dr. J’s face that he really didn’t agree with what I was saying, but he told me that he would take my opinion under consideration.

After that meeting, I paid careful attention to Dr. J’s treatment of others. All seemed good. Then one day, I witnessed the Jekyll and Hyde persona for myself. Dr. J didn’t know I was in the front office as he lashed out at one of the technicians. The tone and the words that came out of his mouth were unacceptable and appalling. I saw firsthand what everyone in the shop was experiencing. After repeated attempts to correct his behavior, his conduct never improved. It was time to let him go.

I never found out what changed Dr. J, but I did feel confident that I gave him every opportunity to correct his behavior. While Dr. J may have fooled me initially, I have to admit that I did see that the mood of the shop was tense and morale was down. With Dr. J no longer employed, morale improved and everything went back to normal.

The workplace environment is a delicate balance between culture and production. It’s also filled with emotions. People want to rally together for the greater good. But, they also need to know that their leader protects them from any threats that attempts to harm the team. It’s also wise not to readily dismiss the concerns your employees express to you. Be on the lookout in your shop. You just might have a Dr. J of your own.

This story was originally published by Joe Marconi in Ratchet+Wrench on December 7th, 2018

View full article

I will never forget the day I met Carlos. It was 13 years ago at a small business conference in New York City. The conference drew business owners from all types of industries throughout the greater New York area. Carlos was sitting next to me at orientation. The day was lined up with guest speakers, workshops and networking opportunities. By the third networking break, Carlos and I were hitting it off. We traded war stories, discussed business challenges and brainstormed new ideas. Carlos owns two Italian restaurants, one in Manhattan and the other in Brooklyn. His first restaurant was founded in 1986 when he was 27 years old. I finally asked Carlos, “What’s your background? Did you go school to become a chef? Did your family own a restaurant? Do you enjoy cooking?” Carlos turned to me, smiled, and said, “Joe, I am going to let you in on a little-known secret: I have never cooked a meal in my life.”

Unlike Carlos and his business venture, most auto repair businesses are started by technicians and use their technical skills to run their companies. I was one of them. I spent years honing my technical skills from the time I graduated high school in 1973 to my first day in business, Oct. 1, 1980. I worked hard at becoming the absolute best automotive technician I could possibly become. I also spent another decade after starting my business improving those skills. That is, until one day I realized that while I may have used my technical skills to start and initially build my business, it wasn’t enough.

In the first 10 years, I grew my business primarily with my hands, my strength and my determination. At the end of that decade, I hit a wall. Thankfully, that wall knocked some sense into me. My business was largely dependent on my abilities and what I could produce. After analyzing my business and realizing that it had plateaued for a number of years, I had to make a tough choice. It was time to put down the tools. I had to learn a different set of skills—the skills of running a company. This proved to be the right choice for me.

I’m not saying I regret what I did in those early years. I didn’t know any other way. I loved the auto industry and I loved working on cars. However, when the day came that I decided to become a business owner, my life changed. And, my awareness of how to build and run a business should have changed with it.

There are shop owners that were never technicians, and do quite well. It’s argued that they have an advantage over technician-turned-shop-owners. A technician’s brain is wired to look at the problem at hand, create a solution and move on. An entrepreneur looks at business from a different perspective: always looking to the future, at growth and what other greater things can be accomplished.

I remember many years ago meeting a very successful shop owner from the west coast at a trade show. We were both standing at a booth that displayed emissions-related products. I picked up a sensor, turned to this shop owner and asked what he thought of the new air fuel ratio sensors. He replied, “I wouldn’t know an oxygen sensor from a spark plug.” I kept silent. This shop owner was, and still is, well known in the industry—and very successful.

Here’s the bottom line: As a business owner, the skills of repairing cars have little to do with the skills needed for long-term business success. For many of you with a technical background, you may have come to the same conclusion. If you have not come to this realization, please take a long hard look at your life and your business. While you may love to be in the bays, your place it a helm of the ship. Use those technical skills, but understand that those skills may have gotten you this far, but they won’t get your business to where it needs to be. It will be your business skills and people skills that builds a sustainable company that continues to grow and becomes a source of enrichment for you, your family, your employees and their families.

Carlos and I still keep in contact with each other and he still owns and operates his restaurants. Carlos called me the other day and told me that he actually had the opportunity recently to work in the kitchen at one of his restaurants. Perhaps even entrepreneurs can cross over into the world of technicians. I’m betting it did a world of good for Carlos.

This story was originally published by Joe Marconi in Ratchet+Wrench on November 1st, 2018

View full article

At the end of each year, it's typical of tool reps and salespeople to give you tax advise. Often they will tell you that buying tools and equipment can be used as a way to lower income taxes. While this may be true, no one has a better handle on your financial situation that a good tax accountant.  Listen to the expert, not the tool truck rep.  Spending money to save on taxes also reduces your cash flow.  I am not an accountant, but sometimes its better to pay a little extra in taxes and maintain a cash reserve. 

Your thoughts?  

National Pearl Harbor Remembrance Day, which is annually on December 7, commemorates the Japanese attack on Pearl Harbor, in Hawaii. Many American service men and women lost their lives or were injured on December 7, 1941. National Pearl Harbor Remembrance Day is also referred to as Pearl Harbor Remembrance Day or Pearl Harbor Day.

Here's a tip I have posted before, but it's worth repeating. 

One job that goes unnoticed most of the year is the job of the part's driver.  You get part deliveries all day long, every day, all year long.  Many times, these part's drivers take all the abuse due to wrong parts, the parts took too long to be delivered, on and on and on.  Those drivers may not say anything, but they take it to heart. 

So, here's what you are going to do.  Buy small gifts, such as small boxes of candy or chocolate.  Nothing expensive.  During the holidays, give all the drivers one of these small gifts and say "Thank you, I appreciated what you do."

Two things will happen. First, the driver will be stunned and will not know what to say, and they will be very thankful that you thought of them. 

The second thing that will happen is this:  The very next time those part drivers have three delivers to make at three different shops, what shop do you think they will want to go to first?  Yes...Yours!

Veterans Day, formerly known as Armistice Day, was originally set as a U.S. legal holiday to honor the end of World War I, which officially took place on November 11, 1918. In legislation that was passed in 1938, November 11 was "dedicated to the cause of world peace and to be hereafter celebrated and known as 'Armistice Day.'" As such, this new legal holiday honored World War I veterans.

In 1954, after having been through both World War II and the Korean War, the 83rd U.S. Congress -- at the urging of the veterans service organizations -- amended the Act of 1938 by striking out the word "Armistice" and inserting the word "Veterans." With the approval of this legislation on June 1, 1954, Nov. 11 became a day to honor American veterans of all wars.

Retail stores have known for a long time that adding or increasing the size of shopping carts also increases sales. Consumers may go to the store with a list, but as they pass through the aisles, having a cart makes it easy to add to that list. 

While your repair shop does not use shopping cart, the same strategy can used. Every customer that books an appointment as done so with some sort of list; an oil change service, a brake issue, tire rotation, etc. 

Through an effective multipoint inspection and looking at service schedules, you can make suggestions to your customers that can add to their cart; essentially increasing sales per vehicle.

One last thing: Always make service and repair suggestions to the customer that is in their best interest and have value, and you can’t go wrong.  It’s actually great customer service. 

2 minutes ago, mikerisich said:

Digital is the way to go but sending a video is a bit clunky.  The customer has to go through the whole video, then try to look back at pieces of it.  I think pictures as part of an inspection would be the better way to go.  Reserve video of items that move or make noise.

Well,  Mike is the expert, so I will defer to his expertise!  Mike makes great points.  

Trust is number 1 above all.  Building relationships is the key to success.   

Video helps to build that trust, especially with new customers.   In addition, customers can clearly see what we are explaining.  It just helps the entire process. 

I know how frustrating it can be when you cannot rely on your employees to think on their feet and solve problems.  However, the truth is, if you are the only one in your business that can solve problems. your business will by limited by your talents and abilities. No team or organization can be successful for the long term if it relies on one person.  If you cannot get your employees to progress and contribute, it may be time to find new employees.

Now, with that said, the problem may be that because you are so good at what you do, you tend to step in too much. After a while, your techs stop thinking on their own and look to you for the answer.  You become their crutch.

I know you are making an effort, but they need more. Also, money is not the prime motivator. Praise, recognition and encouragement are the prime motivators. 

Show your techs the process, teach them the logical approach to a problem.  Have them make small mistakes and praise any movement in the right direction.  Celebrate any small win. In time, the wins will get bigger and bigger.

Keep us updated!

I have never met a shop owner who didn’t have the desire to be successful. People go into business with dreams of changing the world and to make a positive influence in the industry to which they have dedicated their lives. They’re devoted, sacrifice time away from family and, at times, drive themselves to exhaustion—all in an effort to become the best they can be and make their mark. However, all too often, something happens along the way and the business begins to suffer.

While shops owners may start their business with passion and vision, they tend to create a world in which everything revolves around them. When the business is small, the owner pays careful attention to every detail. Every car is repaired with the highest degree of excellence. Quality time is spent with each customer and a bond is created, which gets stronger and stronger as the years pass.

As the business begins to grow, the owner realizes that the amount of work to be accomplished each day is overwhelming and hires more employees. Everyone is working, but not necessarily with the same culture the owner has. They do their job, but they are not really aligned with the goals and vision of the owner. The shop owner continues to work on his or her skills, learning everything that is needed to run a successful business. After a number of years, the shop owner becomes skilled at running a shop and proficient in nearly every aspect of business, except one: the area of people. And that is when the downward slide begins.

The owner recognizes that, in spite of the dedication to excellence, things are not right. The shop owner has established the goals of the company and put everything in place. Everything is attainable. But it’s not working. Frustration sets in, and it’s not long before the owner begins to complain about the lack of performance and drive from the employees, which is the perceived root of the problem.

Well, the root of the problem is the owner. We all know that running a business is not a walk in the park, but if your business is struggling, you, personally, are struggling. If your people are not performing the way they should, then you are not performing the way you should. Granted, there are employees that are a problem, and if that’s the case, they need to go. But even superstar employees will turn sour under poor leadership.

There are endless issues and problems you encounter each and every day, and some of those problems are out of your control. But, excluding a cataclysmic event, you can trace most of your problems back to you. You are the shop owner, you are the leader. The strength of your business begins and ends with you. Given two equally talented ball teams, the difference between winning and losing is usually leadership.

Employees need to know you care about them. The people you employ have vision and goals, too. Not the same as yours, but real nonetheless. One of your jobs, as leader, is to align their goals with yours.

We throw this leadership term around a lot these days, and for good reason. It’s the most powerful skill you have in terms of getting the results for which you are looking. The horrible truth is there are too many bosses and not enough leaders. Anyone can be a boss. Bosses order people around. And people will follow, but not for the long term. A leader motivates others by understanding what drives the individual. A leader gives credit to others, never seeking gain at the expense of others.

Next time you walk through your shop, pay attention to the mood of your employees. Are your employees laughing and talking to each other? You know, having a little fun at work. Do your employees look to engage in conversation with you, or are their heads buried under the hood of a car as you pass them by? Even worse, does everyone stop talking when you are around? These are signs that your employees are not engaged, which means they are not aligned with the goals and vision of the business, and you are not aligned with theirs.

A leader finds out what’s important to others, and works to help them achieve it. Aligning the goals of the individual with the goals of the company will achieve great things. When employees are respected as people, they become motivated and perform at their best; not because they are told to, but because they want to. This is the highest form of team spirit and becomes your driving force toward success.

This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2018

View full article

As shop owners, we sometimes feel that we need to answer every question and handle every situation. While you need to be proficient as a business owner, you also need your employees to think for themselves. 

Empower your people to solve problem.  Ask them for their opinions and don’t be too quick to jump in on every situation.  The more you jump in and solve their problems, the more they will rely on you. This is not to say you don’t have their back; but a team functions best when everyone takes ownership of their position and takes responsibility to take care of problems.

Will employees make mistakes? Yes.  But there isn’t a shop owner on this planet that has a perfect record at making decisions.  We all make mistakes.

As a shop owner; teach, mentor and coach.  Include your employees in on decisions that relate to their job position.  When employees feel you trust them, they will begin to solve their own problems. This will set you free to work on the things that will bring you greater success.

Congratulations! 39 years is a long time.  You did well and should be proud.  I have nothing but respect for all shop owners such as yourself that stood the test of time. I am in my 38th year, so I know what it is to ride the emotional and financial roller coaster.

I wish you all the best! And I hope you fill us in on what you are doing and keep posting!

great joke! Enjoyed it, as usual!

If you are going to the Ratchet and Wrench Conference next week, I will be there to kick things off as the Key Note Speaker on the first day. I will also be making a presentation; Charging for Diagnostics on Friday, Sept 21. 

If any member is attending the conference, please let me know and hopefully we can meet. 

Here is the link to the conference: https://www.ratchetandwrench.com/articles/5651-ratchetwrench-announces-details-of-2018-management-conference

Thank you,

Joe Marconi 

It always amazes me why people cross the line of ethics.  If these people would only put the same effort in a legal strategy, they would probably make more money, and not get arrested. Plus, we don't need any more black marks against our industry. 

To be fair, I am sure this is not a representation of all Snap On Tool dealers and other tool companies.

In my 40 plus year career, I have seen many auto related accidents due to poor tire condition.  When you think about, what other component on a vehicle is more important than the tires?

Yes,  Welcome and give us an update!

There's a time to work, and there's a time to relax a bit. We are in the middle of a three- day weekend; Labor Day. The very name Labor Day should make us all think about how hard we work all year long.  We need balance in our lives. We need time with friends and family.  So, take a break and recharge your batteries this holiday weekend. It will do you a world of good.  Trust me, the business will be there after the weekend is over. 

Happy Labor Day Weekend!

Roughly a month ago, I went to lunch with a good friend of mine. He works for the YMCA, so we discussed what the YMCA does to attract new members. A few years ago, my friend and his team realized that while they were good at attracting new members each year, they had little to no retention. It was a constant battle to bring in new members to fill the void of lost members.

The YMCA realized that it’s easier and less expensive to keep existing members, than to go out and find new ones. They created a new marketing strategy with a focus on keeping existing members. The plan was simple: create an amazing experience for their members and offer new programs to these existing members. The plan worked. Member retention improved. What worked for the YMCA will also work for your business.

Before you spend a dime on advertising, you need to understand one crucial component of your business; the customer experience. Without a great customer experience that gives your existing customers a compelling reason to return, you’re simply wasting your money on advertising.

Advertising is often aimed at new-customer acquisition. There is nothing wrong with this. Every business loses clientele each year for a number of reasons, and we need to get our name out to our community about who we are and what we do in order to attract new consumers. But, to rely on new customer acquisition alone without a plan to keep existing customers is not a strategy for long-term, sustained growth.

Every marketing plan starts with looking at your entire operation and how it relates to the customer experience. Are you doing all you can to create an amazing experience that builds solid relationships? If not, you will be in the same position the YMCA was: using advertising to fill the void of lost customers.

While there are many aspects of the customer experience, let’s focus today on the four essential areas: The customer write-up, the sales process, the car delivery and the follow-up. Each of these touch points must be executed with one thing in mind: create an experience so amazing that the customer will have a compelling reason to return your shop again.

Customer write-up starts the process. It’s where you begin the relationship or continue to preserve it. It must be performed as if you are welcoming a guest into your home. The sales process must communicate value and benefits to the customer. This gives the customer peace of mind, reduces anxiety and buyer’s remorse. The car delivery is your chance to leave a lasting positive impression of you and your company. It should not be a transaction, but instead the opportunity to resell the job, you and your company. The car delivery should not be rushed. Take the time to review the invoice, ask the customer if they have any questions. Let every customer know how important they are and how much you value his or her confidence and trust in you and your company. The follow-up continues the customer experience. This is where you reach out to the customer with a phone call, email, or thank-you card. It helps with customer retention by making another positive impression in the mind of the customer.

Getting back to car delivery: Make sure you review all future service recommendations and let the customer know that they will receive a service reminder. But don’t rely on a postcard or email alone to bring back customers. Think about this: If you had a bad experience at a restaurant, no offer or ad is going to get you back there—only an amazing experience will. The same holds true for your business.

By the way, an amazing customer experience is created by the people in your company. Sure, you need to have a clean, well kept facility with nice amenities. But it’s the people in your company that make the difference. Billion dollar stadiums don’t win championships—it’s the quality of the players on the field that win championships. Everyone in your company is part of your marketing plan. A simple smile and hello from a technician when a customer walks past the bays can do more for your business than any ad can.

Let me leave you with this thought: Customers will not remember the mass airflow sensor you installed or the exhaust leak you repaired. But they will remember their experience. A positive experience is lasting in the mind of the consumer. It’s the most powerful marketing tool you have—and it’s virtually free.

This story was originally published by Joe Marconi in Ratchet+Wrench on September 1st, 2018

View full article

We know the value of technical and sales training, but what about in-house training.  What I am referring to is review policies and procedures.  By reviewing in house written procedures gets everyone on the same page, improves production and also improves quality in the repair process. A simple process such as everyone following the same procedure for a cooling system problem will add to the overall shop's production and in the long run procedure a better quality job.