Joe Marconi

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.

In my 38 year business career, it has always been an issue with summer vacations. We want our employees to enjoy life, but the summer is our busiest time. What are shop owners doing to maintain production, while balancing vacation time?

Carl Ichan is making auto history through aquisitions, but has hit a few finanicial potholes. Below is an interesting article. What are your thoughts on all the aquistions and merges happening these days? http://www.tirebusiness.com/article/20180813/NEWS/180819990/icahn-automotive-in-the-red-in-q2-1st-half

We all have our favorite customers. You know who there are. They’re the ones that throw their keys on the service counter in the morning and say, “Do what you need to do and I’ll see you at 5 p.m.” They never question your price, they trust you and they keep coming back. But does that person define your true profile customer? The answer is probably yes. But it’s not the only criteria. It’s a little more complicated than that. Defining your true profile customer starts with you. It starts with who you are, why you are in business and the culture of your company. By the way, determining your true profile customer has nothing to do with excluding certain people due to their income level. The young 23-year-old college graduate who sets aside part of her paycheck to shop at Whole Foods does so because she believes in the company and for what they stand. It’s not about what she “supposedly” can or cannot afford. She is Whole Foods’ profile customer because she aligns herself with that brand. And Whole Foods welcomes her with open arms. Many of my profile customers endured tough economic times during the Great Recession of 2008. They lost their ability to pay for some of the things they previously could afford. What they didn’t lose was their loyalty to my company. So, what did we do? We helped them through that difficult time. We helped them manage their car care needs better, offering services that would save on fuel, reduce repair costs, and reduce breakdowns. We showed them how to squeeze every mile out of their tires and brakes. We took care of them and we still do to this day. We consider them family and we don’t turn our backs on family. One thing we didn’t do, and will never do, is compromise on price to get a job. That would not be fair to all my customers, my employees or the company. With regard to pricing your services and repairs, it’s a delicate balance between being profitable and competitive. But I don’t know of any shop that prefers a customer walk away or sends someone to another shop because he or she cannot afford a particular price. A smart service advisor will give options, prioritize the work needed, and offer finance options. If you’re a startup company, your doors are wide open to everyone. You need customers and car counts, and you need them right away. But as your business matures, you begin to realize that not everyone is your customer. And there’s nothing wrong with this realization. As you build your customer base, you begin to see that there are customers that respect the work you do, align themselves with your culture and appreciate what you do for them and for the community. They become your profile customers. Let’s say you sponsor a youth baseball team in your area, help out at community events and involved with local fundraisers. You will become known as the business person that cares about the community and children. That’s making your business stand out among the rest. As you define who you are, you also attract those that want to do business with you and support your brand. While I do recommend treating everyone the same, I don’t recommend trying to be everything to everyone. That’s not a sound marketing strategy—that’s a recipe for failure. Defining your customer and targeting your market does not isolate consumers. It actually increases market share. Here’s an important fact: In your geographical area, automotive shops basically do the same thing; they repair and service automobiles. So, how is a consumer going to choose you over another? You need to stand out. You need to be different. You need to build a brand culture and establish a marketing position that will make people take notice. By the way, every successful company, large and small, understands its true profile customer and creates a marketing plan on attracting them. One last thing: When you build a business around your culture, you put the focus on your brand and the value you provide. This strategy is one of your pathways to success. When you combine value with culture, you will have an enduring and profitable company. If you want to build a great company, ask yourself these questions: Why are you in business? What’s your life’s purpose? Your culture? Build a marketing strategy and a brand message around the answers to these questions. Not all people will take notice, but your profile customers will. This story was originally published by Joe Marconi in Ratchet+Wrench on August 3, 2018 View full article

As a young tech, there wasn’t anything I couldn’t do. I diagnosed every car with the accuracy and skill of a Greek god. My efficiency week after week was over 150 percent, and with no comebacks. As a shop owner, I sold every job, and at a profit. Each new day was better than the day before. Boy, when I look back, I was amazing. Those were days. OK, OK, perhaps I am stretching the truth a bit. The fact is my past was not a smoothly paved road to success, but rather an obstacle course riddled with emotional and financial potholes, with more ups and downs than the biggest rollercoaster. Was it amazing? Oh, yes. Amazing because of all the mistakes I made along the way. As the years have piled up in my life, I often find myself thinking back to the “old days” and judge people by how “perfect” I thought I was back then. Oh, don’t get me wrong, I was a good technician and somehow evolved into an accomplished businessman. But was I really as good as I remember? I was outside the bays talking with my manager when Nick, one of my techs, began his road test on a Chevy Tahoe. As he passed us I could hear that unique “squeaky” sound a seized, worn out u-joint makes. I yelled to him, “Hey, check the u-joints.” He nodded his head and drove off. About 30 minutes later, I walked over to Nick and asked him what he found on his multipoint inspection. He told me that the wiper blades were torn, there’s a little play in the right side outer tie road and he recommends a four-wheel balance with a wheel alignment. I asked him, “What about the u-joints?” Nick replied, “They’re fine; nice and tight.” I could feel the tension begin to rise when I continued with, “Nick, I asked you to check the u-joints because I could hear that something was wrong. How did you check the u-joints? Do you know how to check u-joints?” Nick was visibly upset, so I suggested another road test—this time with me. During the road test, I told Nick to roll down the windows and listen. I said, “Do you hear that squeaky sound? That’s a seized u-joint.” Nick listened closely and then said, “I never heard that noise before.” To myself, I said, “You must be kidding me! How in the world can this tech not know it’s a seized u-joint?” But, thankfully I paused, and replied with, “Nick, how old are you? He responded proudly, “Twenty-one, boss.” Nick is a recent graduate of a well known tech school. He comes to work on time, works hard, and learns every day. His production improves each month. He has a lot of raw talent and a great attitude. At 21, how in the world could he know what I know at 63? I often forget how young some of my employees are. I also need to remember that people will make mistakes and they need the time to hone their skills through years of experience. They don’t have the gray hair of knowledge that often comes with decades of experience. Allowing people to grow will mean making mistakes. A tech will make the wrong diagnosis. A service advisor will lose a sale or forget to sell the tire rotation. But, did you or I diagnosis every car correctly? Did we make every sale? Were we absolutely perfect in everything we did? Of course not. So let’s be a little more understanding. I am not suggesting we settle for mediocrity. People need to strive for excellence. But even the best home run hitter will strike out at times. As business owners, especially those from my generation, it’s our job to pass the baton, to teach others, to be a mentor and a coach. Don’t be too judgmental. If we are honest with ourselves when we look back on our lives, we will see triumphs mixed with a lot tough days. When you feel yourself losing your temper or getting upset over the mistakes or lack of knowledge from one of your employees, just think back and view your own past. Don’t look back with a skewed memory of your greatness, but with an honest recollection of your struggles and mistakes. And you never know, you just might help others avoid some of the mistakes you made. Oh, by the way, my approach with the way I handled the situation with Nick and the seized u-joint? Another mistake on my part. So even at 63, I am still making mistakes. Kind of humbling, right? This story was originally published by Joe Marconi in Ratchet+Wrench on July 6, 2018 View full article

Not every shop pays flat rate; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale. As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money. Overtime without high levels of production will eat into profits and if not controlled, with kill your business. If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?

A few weeks back I had a problem with my refrigerator. I got a referral and called an appliance repair company. I called three times and each time I called this is what happened: "C and E appliance, please hold." I was put on hold three times for about 5 minutes. After being put on hold each time, a women would say, "What's the problem?" No engagement, no sign of interest for me the customer, no signs of caring. I gave the women a brief description of the problem and each time she told me someone would call me back. Well, no one did. So, I called for the 4th time, and as the person answered the phone I said, "DO NOT PUT ME ON HOLD." There was silence, so I continued. I explained to her that she has spoken to me three times, I left messages three times and three times you told me that someone would call me back. She replied, "You are talking to the wrong person, if you have any complaints, write a letter to my boss, after all he won't listen to me anyway." I hung up the phone and called another company. The lesson and takeaway here is simple: Who's answering your phone? The wrong people on the phone in your shop can kill your business. Have meetings with your people. Make sure you review your phone skills policy. If you don't have one, create one. Empower your people to people to handle issues. And make sure you log every phone call. If you feel you have a problem, start recording phone calls. Your phone is your lifeline to future business. So, please ask yourself....Who's answering your phone?

Last week I was at a resort with family and the grandkids. We had a great time and it was a much-needed vacaction. For one day, I did it....I left my cell phone in the hotel room safe. It was not easy, and we all know how addicted we all are to our phones and laptops. The day passed and guess what? Nothing urgent happened. And if it did, I need to put trust in the people I employ that all will be taken care of. So, the question is: Can shop owners truly ever unplug from the outside world?

In addition to finding techs, we need to also consider "home grown" techs. There are shops that have been very sucessful with hiring entry level techs and creating a career path and training program. Let's face it, at one time every Master Tech was an enrty level tech. I know this takes time, but it's worth considering for the long term.