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Everything posted by Joe Marconi
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I just returned from the Ratchet + Wrench Management Conference and I can tell you it was an amazing event. This is the publication’s first conference and they hit the ball over the fence and into the parking lot. It was large enough to get a ton of information and meet so many great people, but yet not too big as to feel overwhelmed. The sessions were informative and the vendors took the time with anyone who had questions or needed information on their products. I was also honored to be asked to make two presentations at the event. I have to tip my hat to everyone at Ratchet + Wrench for making this event a huge success. They treated everyone everyone as royalty and you could tell that they truly appreciated the shop owners, vendors, sponsors and the speakers. Perhaps the most impressive were the shop owners. I did not hear one negative experience from anyone. The shop owners were top tier, successful people from all different parts of the country with different business models. There were seasoned veterans with decades of experience and millennials with a just few years under their belts. But all carried themselves with such professionalism that it made me proud to be part of this great industry. If you do not subscribe to Ratchet + Wrench, I urge you sign up today! Can’t wait to do it all over again next year!
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In the early 1970's I worked at a gas station pumping gas. Every week this customer with a Vega would drive in, roll down the window and say, "Please fill up the oil and check the gas." And he wasn't kidding. Each week I would have to add 2 to 3 quarts to the engine! Gonzo, another unique perspective. We have all seen this in our careers.
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It’s easy to get sucked into the drama and the negativity of your worst customers. For some reason, no matter how hard you try, there will be some people that you will find impossible to please. My advice: stop trying. I am not suggesting that you ignore all problem customers. That goes with the territory. What I do suggest is that you don’t ignore your BEST customers. Pay a lot of attention to them. Educate your customers; explain the reasons why you are suggesting certain repairs or services. However, you will find that devoting your time and energies to your best customers will bring you a lot more happiness and add a lot more to your bottom line.
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If anyone is going the Ratchet and Wrench conference later this month, I will be there giving two presentations: Session 1: Increasing Productivity and Efficiency with the Right Shop Culture Session 2: Making Sales about Relationships, not Salesmanship http://rwconference.com/ September 22-24 It will be an existing event, so let me know if any members are going. Thanks, Joe
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Congratulations to Bolt on Technology - Inc. magazine has ranked BOLT ON TECHNOLOGY— a leader in automotive software solutions — No. 646 on its 35th annual Inc. 5000, the ranking of the nation’s fastest-growing private companies. Here is a link in Aftermarket News for more information: http://www.aftermarketnews.com/bolt-on-technology-ranks-no-646-on-the-2016-inc-5000-list/?eid=284835314&bid=1506143
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A customer arrived to my shop with leaking brake lines, bald tires and rotted front spring seats. Due to the age of the vehicle and many other issues, we recommended that he junk the car. He came down to the shop and said he wanted to take the car. We refused to release the car: Which technically we cannot do. We explained to the customer that the car we unsafe and that while I cannot legally prevent him from taking his car; I have a moral obligation to stop him. The customer sent his son down to the shop to “strong arm” me. I would not give in. I showed the son the problems and told him, “This car is not safe. The brake lines to the front and rear brakes are rotted and leaking, the tires are bald and the front strut spring seats are rotted. After a lengthy debate he agreed. The car was junked and the owner was very upset with me. Two days later, this same customer arrives with a used car, just purchased, and needed a New York State inspection. Lesson: Sometimes we have a moral obligation to do the right thing. Your thoughts?
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Engineering Flashbacks - They design it, we fix it...
Joe Marconi replied to Gonzo's topic in AutoShopOwner Articles
I remember replacing a heater fan in an early 70's Mercedes. This part was tucked away deep inside the dashboard. The book time was about 17 hours. In fact, when I called the dealer to order the part, he laughed and said, "Do you realize where that part is? They literately hung the heater motor by a string and built the car around it!" It is a viscous cycle that we as mechanics will just have to deal with. -
Insurance companies have been doing this for decades. And to a large extent they get away with. A law? Never heard of a law. There are so many issues here that need to be covered. First, there is no list price that any shops needs to stick to. It's your business and you need to charge what you know will maintain your profit margins. What we pay for a part is our business, and what we charge for the part is our choice, not the insurance company's choice or limited to any list price. Of course we need to be competitive, but we need to be profitable too. Here is what I do. First, I don't let anyone see my invoices. Second, if I have to work with an insurance company or extended warranty company, I inform the customer up front that "their" insurance company may not pay my charges for the repair. I let the customer know that I will not go back and forth with the insurance company and will not discount the job. If the insurance company does not pay my total bill, I let the customer know that they will be responsible for the balance. If the customer knows up front, there isn't a problem. In fact, the insurance company becomes the bad guy. Hope this helps. Great topic by the way!
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Gonzo, I don't get it either. The vast difference between quality techs and the shoddy shops is unbelievable. And that is one of our greatest challenge. But Gonzo, I need to tell you; the problem does not end there. There are also too many shops that don't know the mechanics of running a business. So, not only does quality suffer, but this condition drags all of us down. Luckily, the industry has so many amazing people in it. And, with the way technology is changing, we just may see the tipping point in our favor.
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Are we seeing the “Home Depot” effect in the Auto Parts Industry?
Joe Marconi commented on Joe Marconi's blog entry in Joe's Blog
I hear these stories all the time. And not just in our business. A plumber in my area doubled his labor because he gave up on trying to justify parts. So now he makes his profit margin, largely on labor. Will the same happen for repair shops? -
I think we need to slow down at times and speak to people in a way that builds trust. For that women to call you about her car at the dealership clearly means that there was a disconnect from what she was seeing and the level of service she was receiving. And, you are right; we need to slow down when we speak to people, build trust, communicate clearly and often and ask questions. As usual, great insight Gonzo!
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Gonzo, a lot of issues we face today can be summed up in your article. I hope I don't throw a wrench into this conversation, but until the shops raises the bar, understand the how much they really need to stay in business and make a real stand to charge what they are worth, the public's view of us will continue. Shop owners and mechanics are perhaps the hardest working people on the planet! They torture themselves at times to get the job done. But, for the most part we do not get compensated for it. Bottom line, if mechanics and shops owners want to play the game of automotive service and repairs, then they also need to get paid. As usual Gonzo, a keen awareness of the life of the typical repair shop. I tip my hat to you!
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Great article on a very important topic. While there are many reasons for the tech shortage, we need to start with the shop owner. I agree with you with the fact that too many shops do not make enough profit to pay their employees a decent wage. As a industry, we need to get much more involved at the high school level and let young people know about a career in automotive. I grew up the way you did Gonzo. When something broke in my house, my father would fix it. I learned those early skills and it helped me with my career. It's not that way anymore. But, if your think about it, there are plenty of careers that have no connection to your youth: Doctor, Lawyer, nurse,Etc The only way forward is stated in your last paragraph. The way to attract quality customers and being able to pay decent salaries is not through low prices. While there are some models that support the low price strategy, most shops need to invest in training, tools, information systems, hi-tech equipment and pay top techs what they deserve. Shops need to price their services and repairs accordingly.
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Use technician comebacks and customer service issues to learn and improve
Joe Marconi posted a blog entry in Joe's Blog
Source: Use technician comebacks and customer service issues to learn and improve-
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Lets face it, a week cant go by without a technician comeback or a customer service issue. Mistakes will happen, theres no avoiding it. Obviously, you need to put systems and procedures in place to reduce the chances of mistakes occurring, but the truth is everyone at one time or another we will drop the ball. The key thing to remember when a mistake happens is to keep the lines of communications open. With every mistake there is learning experience that everyone in the shop can benefit from. Discuss the issue with your tech or service advisor. Get all the facts. Dont assign blame; the person who committed the mistake already knows he or she dropped the ball. Draw out of the person ways to improve and ask that person if it would ok to share the findings with the rest of the staff. We all need to adopt the culture of continuous improvement. We can sometime learn more from mistakes then when things go smoothly. One last note; I am not suggesting to ignore habitual mistakes or not recognize when someone refuses to improve or cannot do the job. In some cases you may have to let someone go.
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The past few years have not been kind financially to the average consumer. So the points you bring up are so true. The bottom line is truly, the bottom line. As shop owners, in order to survive, we must find ways to remain profitable and understanding to our customer's needs. It's not easy, but any proactive approach to reach our customers is a lot better than taking a wait and see approach.
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Rigged and Runnin' -- DIY modifications.
Joe Marconi replied to Gonzo's topic in AutoShopOwner Articles
I have seen my share of modifications too. I remember when a customer installed a toggle switch on his dashboard to turn on his cooling fan. He would watch the temperature gauge and when it climbed up he would flip the switch. Well, we all know what happened when his wife borrowed his car! -
You bring up an excellent point. For too many shop owners, their life is so overwhelming, that surviving the day is their main objective. But I agree, we collectively need to voice our opinions on the what we feel will benefit the motoring public. And at the same time, help to promote all the good that we do. Great post!
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No matter what the year has been, this is the half way point for the year and time to review your business plan for 2016. This is also the time when you review all your 2016 goals, both personal and business. Assess where you are and make the adjustments needed to achieve those goals. Dont worry about the last six months if it did not live up to your expectations. Make the needed course corrections to maintain your focus and make sure you align those corrections to what you need to achieve your objectives. Lastly, remain positive, know the numbers of your company and create strategies that are in line with your goals.
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Same here, we give all employees a list of benefits and polices when hired. We have the employee sign it. One of the conditions when the employee leaves or terminated is that the employee is responsible for the uniforms; return them or pay.