Joe Marconi

Tracking expenses and keeping expenses in line is key to the bottom line profit. Remember, gross profit pays expenses and what's left over is net profit...the bottom line. To truly understand what your budget should be takes an understanding of the Profit/Loss statement. But, I hesitate to go into detail, only because there are so many key performance numbers to consider, (labor profit, part profit, sublet profit, etc.) and also you need to look at your debt; which is not on your P/L, but on your balance sheet. I am not here to pitch what I do for Elite, and never have, so don't think I am trying to sell anything....but I spend an entire day teaching all this at Fly with the Eagles Course. I only tell you this, because it may be difficult to explain in a post. One very good thing, you are asking the right questions! And you absolutely should have a written budget. Speak to your accountant too.

We reached out to Friends of Karen and the Putnam Resource Center. They chose the families. The Event started at 1pm and ended around 6pm. All the families were there, and they brought friends too. They were patient and enjoyed the day. In addition to food, we had games for the kids.

Thanks Suzanne for adding to this post. And thank you for all the help you gave us. If anyone is interested in Family Service Day, please give Suzanne a call.

There is a fee to Join the organization (Please contact Family Service Day for that info), plus you have to market the event. I managed to get local businesses to become sponsors, and my local parts supplier Central Auto (An independent part house, not a major chain) supplied the parts. BG donated chemicals and tires were at a deep discount from my supplier Max Finkelstein Tire. Local radio stations gave me free ad spots. And local newspapers also gave me free ad space. I did hire a professional photographer, created flyers, and paid for various press-releases. When I approached the local restaurants and deli, they donated the food and water at no charge. And I did have to pay for the live radio DJ. I asked my staff for volunteers and everyone in the shop donated their time without pay. My upfront costs totaled nearly $3,000, but I got most of that back with business sponsorship. So it really did not cost me much, roughly a few hundred dollars out of pocket. I did open a separate bank account to keep everything separate. Please note, I went overboard with the event. The plan is designed to get local businesses to sponsor the event, so that your costs are minimal. One thing to consider, it is a lot work to put on this event, or any event. I would strongly recommend getting someone or a team to help that can dedicate time to the event. I was fortunate to have my marketing agent take care of most of the details. The people from Family Service Day will help you with the process also. The most you will invest is time, but what you get back is priceless.

Here's an update on our Family Service Day event, held on May 6th. I have gotten numerous calls from people in the community and other repair shops, thanking me and my staff. There were people that I have never met, that picked up the phone to tell me that they heard of the event and they think it's amazing. We were written up in the local newspapers and on the local TV news station. I even had a first-time customer bring their car in with a water pump leak, shook my hand to tell me that I just gained a customer because of Family Service Day. We are involved with Family Service day not for any profit and not for any fame or glory. The concept of Family Service Day is in line with my culture and the culture of my company. The feeling you get helping people is something money can’t buy. My friend John said it best, “You know Joe, if everyone was involved with organizations like Family Service Day, the world would be a much better place.”

Truly a Gonzo Classic! Humor with American pride! You can't get better than that!

According to a recent survey featured in the May issue of National Oil and Lube News, 38% of the motoring public usually go to a new car dealer to have their oil changed. Second place was a quick lube and third place was the traditional auto facility. Now, I have to admit, this survey was done by a publication dedicated to the Quick Lube industry, so I am not sure of any bias here. But it is worth taking note that the people polled were car owners from across the country. And, in spite of what we think about the new car dealers, they do want to penetrate the consumer market we took for granted for so many decades. The point is that in today’s competitive climate we need to take a proactive approach to our business. Anyone who knows me or reads my articles and posts know I have been preaching this for some time now. We also need to be convenient and deliver world-class service. We need trained people on the phone and on the service counter. Of course you need quality techs, training, information systems and the best equipment. But, look at your business through the eyes of your customers. That will tell you your next marketing strategy. If I were you, I would do my own survey….find out for yourself….Who’s changing YOUR customer’s oil?

Yes, a little more info would be helpful. Thanks in advance.

I hope that everyone has a nice Mothers Day. Enjoy the day. Family is above all...Number one!

Great topic and great comments. Pricing strategy is your key to profits. I do agree that there are different areas of the country that affect cost of living, and therefore affect labor rates. In addition, Hi-end luxury models and HD truck/diesel must command a higher labor rate, that's basic economics. In my area of New York, about an hour north of NYC, it's typical to find labor rates $120 or more for independents. Some Euro dealers are $150 and above. When you consider an A level Master tech commands 30 to 40 an hour, you labor rate has to be 120 and above. One last thing, the more value you deliver, the less price is an issue. You need to be competitive, but profitable too. As Sam Walton, Founder of Wall Mart, said; Price is what you pay. Value is what you get.

Scott, Trust me, I am not suggesting that booking the next appointment and/or informing customers of needed future work is the cure all to all of our problems. As a coach for Elite, I get to talk to a lot of shop owners and coaches from around the country. There are pockets of the country that are doing quite well, other areas are struggling. The reasons area many. All that I am suggesting is that as shop owners, we need to be as proactive and positive as possible: Do complete inspections on all vehicles, look at vehicle history and help your customers by mapping out their total,future car care needs. Any effort in the right direction will help. And there is one more thing I want to say; but before I say it, I say this with all sincerity and respect for all my fellow shop owners. Here it goes: don't look for reasons why business is bad. Because you will find it. Yes, the economy plays into it, the current political climate, the weather, the competition, etc. Don't dwell on it, because it will become contagious and your employees will begin to become negative too. And before you know it, you will go week after week wondering what happened to business. Look at each day as a reason to win. Look at the positive. Celebrate every win,each sale, no matter how small. Set goals and talk to each customer in a positive way. When people ask you how you are doing. Tell them great. Sorry for going on and on, just trying to help here. After 37 years of riding the repair shop roller coaster, I know that in tough times, being positive is lot better than being negative. I only wish the very best for each shop owner out there!

Thanks for sharing your stats. And best of luck with your goals! You will get there!

Thanks Charlie. I guess when culture comes together with the right cause, it makes an unbeatable union! Thanks again for raising the bar and showing the motoring public the honorable side of the Independent Auto Repair Business. Joe

Booking the next appointment does not mean getting 100% of your customers to return at the day and time you set up. It works as part of your marketing strategy, and it takes time for the process to work. By informing customers of their next service appointment and other services and repairs due in the near future, you are increasing the odds that your customers will return to you. When a patient leaves the dentist's office, the dentist sets up the next cleaning or dental work needed. Even the dentist knows that not all people come back as scheduled. However, many do. And those that due are the ones that value preventive maintenance and also value the opinion of the dentist. I do agree that most shops do not book the next appointment, and most shops do have a effective rate of return. But those that are diligent and give time to train their customers and are proactive, do see positive results. I also agree that it takes work. You will need some form of reminder other than the typical service reminder or email. Successful shops will either text or phone call the customer a few days to a week prior the scheduled appointment. Even if the return is a handful, it's a win because you are in better control of the work and your schedule. The repair shop business has changed of the decades. We need a proactive approach to remain competitive.

Family Service Day- An Amazing Day! Yesterday, May 6th, my shop participated in National Family Service Day. It was one of most rewarding things that I have ever done in my career as a shop owner. The appreciation from not only the families we helped, but from the community, was something that no amount of money can buy. All my employees donated the time and worked throughout the day to make this event a success. I want to praise and thank Charlie Marcotte, owner of American Pride Auto and founder of Family Service Day. His concept has grown nationally, with repair shops across the country joining in this worthwhile cause. I want to also thank Suzanne Hawley, Executive Director, for all the help she gave us launching our first annual Family Service Day event. As small business shop owners, our biggest advantage is our ability to impact our communities. While there are many things you can do in your community, please consider joining your fellow shop owners from around the country and becoming involved with Family Service Day. For more information: http://www.familyserviceday.org/

There are Quick Book experts that you can hire to come and help you on sight. Check with QB or check locally.

Now that's funny!

Booking the next appointment is a gold mine. I know, I know...I have heard all the shop owners that say it doesn't work. Really? Just ask your dentist, your doctor, the hair salons, the nail salons, the boiler repair guy, the chimney cleaner, the eye doctor, the chiropractor and the septic cleaning company. They do it; why does it work for them???

Many shops are experiencing a slower than expected spring in pockets around the country. The shops that are doing good are those that are proactive with sales and vehicle inspections. If you wait for the customer to come to you and tell you to service or repair their car....good luck. You must view every car as opportunity and looking at the entire car. Also, every car in your shop today will need future service and repairs. Make sure those cars come back to you. Book the next appointment and plan out their total car care. I don't have all the answers, but sitting on your hands and wondering where the work is not a viable strategy.

Great insight into the future, which is closer to reality than we think. Another major question is; Will technology change the mindset of the shop owner? Will shop owners finally realize that what we do commands a certain level of expertise, training, talent and investment? Which means, pricing our services and repairs that are in line with the he associated costs of doing business. In addition, to attract people to our industry, a competitive pay must be factored into the mix. That's not to say that money is everything, but it does put food on the table, roof over our heads, take car of our retirement years, reinvest in our businesses, and allow employees to enjoy the fruits of their labor. Perhaps telematics will also directly communicate with the shop owner's brain.

Great story for re-read! Timeless!

Every State has a labor law web site, plus the National Web Site, but to be honest, you should speak to a labor attorney. I tried to interpret the labor laws in New York myself, and was wrong on so many issues. I hired a labor attorney to review and revise my pay plan. It cost me $875 for review. I then spent additional money to upgrade my employee handbook. Money WELL spent!

Update on Family Service Day! The community has embraced what we are doing and the families we are helping are overwhelmed with joy. I have been looking for a long time to find a community event that we can rally behind, and Family Service Day is it. When I approached my employees about donating their time for the event, EVERY employee said Yes! Looking for to May 6, the day of the national event! http://www.familyserviceday.org/

I hope that I am not off base here, but I feel bad that they wrecked a beautiful 59 Chev Belair!

About 5 years ago, we tried extended/duel shifts. We felt we needed to be more convenient for our customers. This was a reaction to all the dealers and tire shops that now are open 7 days a week. While we did have customers come in, after 6 months, we did not see any difference in business. Unless you increase staff, all you will do is to trade hours from one time to another. We went back to our regular schedule. Last winter we experimented with extended hours from Mon to Friday and close on Saturdays (We are open Sat from 8 t 2pm). That was a disaster. After being open Saturdays for 36 years, we angered a lot of "Saturday Only" customers. With regard to being open on Saturdays, I am not saying you have to. There are tons of shops that I know that are open only 5 days a week and are very successful. For me, I built a Saturday clientele, so it did not work. Great topic! I hope to hear from other shops!