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Joe Marconi

Management
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Everything posted by Joe Marconi

  1. 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.
  2. 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.
  3. 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!
  4. 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!
  5. 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.
  6. 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.
  7. Be careful. Please read the fine print. There are conditions. Speak with your bank advisor and/or accountant.
  8. 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!
  9. 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.
  10. 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.
  11. 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.
  12. Yes, we need to stay on top of all the programs coming out, SBA and any state and local help. Be careful, things are changing daily. Talk you all your advisors.
  13. Yes Frank. I agree. I have been in business 40 years. Never before have I asked for helped or expected it. This is different. When Churches are closed, you know these are different times. Stay safe.
  14. Contact your Accountant and bank. FInd out about the Payroll Protection Program and the SBA Disaster Relief Fund.
  15. Whatever your normal advertising and marketing strategy is, now is the time to tone down call to action advertising and promotions and communicate your brand to your community. In times of crisis, it’s crucial that your customers and community know what you stand for and there to help if at all possible. Contact your customers by phone, email, text, etc. Not to sell them anything, but to ask if they are ok. Let them know that you are thinking about them. Connect with them emotionally, like a friend or family member would. For many shops across this great nation, there will be significant sales drops. With the new financial package, there will be help on the way. Contact your accountant, payroll company, financial advisor, bank rep and find out about the help that is coming your way. We will get through this together.
  16. I am hearing this story over and over, and not just from our industry. I spoke to the local deli owner yesterday. Business for him is down 95%. He is working alone, and has one employee working 2 hours a day. He cannot pay his rent or his bills. The only thing that I can say is that this will pass. Right now is seems like the worst of times, and being in business for 40 years, and in New York, I can tell you that I am never seen anything like this. But, we will prevail. Talk to your banker, accountant, financial advisory. Get the help you need and make those hard decisions. You need to save the business first, then rebuild when things begin to get better. I know it may sound fruitless at this point, but maintain a positive and strong attitude. This will help your mind find ways to get through this. It will not be easy, but we will succeed.
  17. You are not alone. I am in New York, ground zero and we are suffering too. We are all in this together. Speak to your accountant, your financial advsior and your banker. Get their help to create a plan. There will be assistance for us, this time. This is not our fault. Also apply online for the SBA Disaster Relief fund. Call all the vendors and other companies you owe money and negotiate a deal. Call all your customers to let them know you are thinking about them and offer to pick up and deliver, if that is something you want to do. Talk yo you employees. You may have to cut hours or lay off temporarily. This will pass, it will not be pretty, but we will get through this.
  18. No one knows what will come next. Where we are in New York, it's the hardest hit state in the country. Things change by the hour and we are making adjustments as needed. We do not plan on shutting down, but we will adjust hours and staff as needed. Hang in there everyone, this is not our fault, we will get throught this.
  19. I have been contacted by many shop owners about the decision to close or not. In most cases across the nation, Auto Repair Professionals are considered essential workers. Which means that we can stay open for business. However, even though we are essential, I personally will not demand my employees to come to work. If business fails because of this virus, it will fail in the short term. We will all eventually find a way to come back and rebuild our businesses. Things are changing by the hour, and that makes our decisions as leaders even more difficult. I don’t want to get sucked into panic, but I don’t want to turn a blind eye to the fact that we are in uncharted territories and that we are all learning from this crisis together. The decision to close your business is yours. There is no wrong or right decision here. The safety and well-being of our families are our number one concern. If it makes it any easier, make your next decisions from the heart, not from a business standpoint. Be strong, be a leader, and know that we will get though this. When the dust begins to settle, we will have learned a lot about business and even more about who we are are as a culture and a society. I cannot tell you what I am doing tomorrow. I plan on having a meeting with my staff, and a decision will be made to stay open, cut staff, cut hours or perhaps another scenario will surface. I will keep you updated and try to bring a little sanity to everyone during these crazy times. You are all leaders; you are automotive shop owners. You are the toughest of the toughest. I know you and I will prevail through these troubling times and I look forward to the future when we can all look back and say…”We may it through, and we’re better off for it.”
  20. We are holding at a 50% decline in business the last 4 weeks. However, looking at the numbers, something was going on since mid January. Numbers were down about 20% in January and worse in February. I thought it was the lack of a tough winter in the North East, but now I know that it was more than that.
  21. I respect your decision. There is no right or wrong decision here. Stay safe.
  22. Frank, you are lucky. Please be prepared. Have a plan. If nothing affects your area, you will still benefit.
  23. Alex, we have seen a 40% drop in business the last three weeks. The worst drop in business in my 40 years. I made a post, by the way, under Joe's Tip. Here's is our plan: We have daily meetings with emoloyees to maintain our aim to keep oursleves clean and our customer's car clean We wipe down customer's cars before we get into them. The areas we are in contact with. We launched more radio spots to let people know that we are taking precautions, we will santize your car before and after we work on it. We are also promoting that we will pick up and deliver your car if you wish not to come out of your house We are offering a Deep Cleaning of the HVAC system at cost, $39.95...Usingb BG Kits. We purchased cases of small hand sanitizer and are gvivng them out to our customers No overtime and we may need to cut hours. No non-essential spending I have advised my employees to also not to spend any money now, unless necessary I have some employees take vacations now, We need them when business returns Don't panic Stay postive PRAY! Let's share our ideas and beat this thing!!!
  24. My Thoughts on the Coronavirus and Business In my 40 years in business, I have lived through many economic downturns. From the stock market crash of the late 1980’s, the housing bust of 1990’s, the tragic event of 911 and the great recession of 2008. This is different. The fears and the realities of the coronavirus has affected us all. And some areas of the country have been hit harder than others. In all other situations, I fought like hell to make a difference and beat the circumstances. Again, this is different. I am not an alarmist, not a defeatist and I do not get sucked into the sensationalism of the press. Just today, I heard a sports announcer on a talk radio show advise her listeners to stay at home, don’t go to work, don’t go to the movies, don’t go out of the house and isolate yourself from other people. Is this rational? I can’t do that. I am an automotive shop owner. What I do matters to my family and the community. I…WE….need to be there to ensure that the doctors, nurses, police, public officials and everyone else has their transportation ready to perform. Stay home? Us? Is that an option? But again…this is different. This afternoon, I was getting ready to go to Church; 4:00pm Mass, when my wife got an alert that Church as been canceled. Wait; let me say this again real slow…Church… has…. been…canceled. Fear has a way of eating at the fabric of our rational being. I fully understand the reality of what is happening. This virus will take people’s lives. But, do we run away in the face of a threat? Is this who we are? What do we do? Close our businesses for a few weeks? A month or two? How many of us can afford that? We all know the answer to that question. As automotive shop owners, technicians, service advisors and all the other valuable employees of this great profession, we need to take the proper precautions. Do all you can to protect yourself and your family. If you decide to continue to operate your shop during this challenging time, have a meeting with all your employees. Take the proper steps to protect yourself, your employees and your customers. Business may get ugly for some. My company has taken a 40% drop in business the past three weeks, directly contributed to the coronavirus outbreak. I write this to tell you how I feel; not to decide for anyone what to do. I will not force my employees to do anything they feel would put themselves or their families in harm’s way. For me, I intend to fight. I will take care of myself, take care of my family. But there are too many people depending on what I do, and way too may years behind me to hunker down and wait this out. Stay safe, stay healthy. Take this situation serious. But please don’t give up. We will prevail and we will get through this together. We are the hardest working, most resilient, toughest people on the planet. Let’s show the world and this virus who we are!


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