Joe Marconi

I was speaking with a shop owner the other day about an issue he is having with technician comebacks. After a series of questions, the reason for the comebacks became clear. At the start of the year he implemented a very aggressive growth strategy, putting a lot of emphasis on quotas, sales and labor production. The strategy also included increased bonuses for the service advisor and techs for hitting certain goals. Now, at its core, this is not a bad strategy. However, the focus was on quotas,sales, profit and production. What was lacking was a process to ensure that quality was maintained, and basing sale decisions on what is in the best interest of the customer. A focus on quotas instead of service quality, is a recipe for eventual failure. For example: Instead of setting a quota to sell 5 batteries this week and 10 sets of wiper blades, create a process that your technicians will test all batteries and inspect all wiper blades. This strategy will achieve the same results while maintaining a focus on quality and integrity. The bottom line is we all need goals. But we also need to maintain quality. So, when setting your goals, include a quality control process to cut down on mistakes before the customer gets his car back. Put emphasis on customer service and integrity. Celebrate positive customer reviews. And lastly, base all service and repair recommendations on what is in the best interest of the customer.

Sorry, we do not perform that service. If a customer asks us about tinting we recommend a local business that does it.

The controversy is heating up as we move closer and closer to self-driving cars. Below is a link to an article in Body Shop Business Magazine. http://www.bodyshopbusiness.com/aaa-survey-finds-three-quarters-of-americans-are-afraid-to-ride-in-a-self-driving-car/?eid=284835314&bid=1336714

Business has been up and down the past month or so. Some shop owners say that business this past winter was ok, others complain that the lack of a real winter hurt business. My advice, forget about the past and plan for the future. The world of auto repair and servicing has changed. We need to be proactive, not reactive. For those old enough to remember the 1970s and the 1980s, cars broke down at an alarming rate. Being proactive was unnecessary. There were broken cars lined up in front of our bays every day. Well, the good old days are gone. Today we need to be proactive. Every customer is an opportunity to build a relationship. Speak with your customers. Make sure you find out what their auto needs are. Create an amazing experience that tells the customer: Please return. Explain the benefits of preventive maintenance. At car delivery, discuss their next service, book their next appointment, and let them know of any upcoming needed repairs. Little things such as informing customers about their next tire rotation, next wheel alignment or next scheduled maintenance can make a big difference. And of course, send out those service reminders. Remember one thing: Every car in your shop today will need futures services and repairs. Will they come back to you? In other words, become more proactive and not wait by the phone for the customers to call you. That may not happen these days.

Brilliant article Gonzo! Why is it that when ever I think you wrote your best article, you write one even better?

There are many companies, programs and even some payroll companies that can help with employee manuals. Just make sure that any employee manual meets with state, Federal and local laws. So have the manual reviewed by proper legal counsel.

Maaco has announced a partnership with Pep Boys to launch an automotive retail concept across the U.S. The first two of many planned Maaco satellite shops will open inside existing Pep Boys locations in Marietta, Ga., and Union City, Ga. To the read the complete article click the link below. http://www.bodyshopbusiness.com/maaco-rolls-out-innovative-satellite-concept-in-partnership-with-pep-boys/?eid=284835314&bid=1322672

Below is a link to an article in Body Shop Business, which states that future technology will reduce car accidents by 95%. What are your thoughts about the future of the Collision Business? http://www.bodyshopbusiness.com/report-finds-making-all-vehicles-autonomous-could-prevent-up-to-95-percent-of-all-traffic-accidents/?eid=284835314&bid=1313207

I don't know all state laws, but in New York once you give your car to a repair shop, the business is responsible for care of that are. Leaving the keys in the car is not really an issue by the way. Just because the keys are left in a car does not make it an excuse for an insurance company not to cover it. Also, not sure about all the laws in each state with proper documentation. However, the law usually sides with the consumer. It's the responsibility of the business owner to follow the right protocol. Not sure why this issue is such a big deal. The shop and insurance company should take responsibility. And the notion of a pre-existing condition is a joke.

There are a lot of positive indicators for the future of the independent automotive repair shops. (See below). As shop owners, we need to be proud of the fact that we are still the number one choice of the motoring public. But positive indicators are not enough. Plan now for your future. Be proactive when it comes to your business. Understand your numbers and determine what you need to be profitable. Take care of your employees. Continue to provide the necessary training and above all, provide the absolute best possible customer service. From the Auto Care Associations 24th edition of the Auto Care Aftermarket Factbook: *In 2014, more than 840,000 technicians were employed - a 3.4% increase over the previous year. *The light vehicle scrappage rate in 2015 was 4.4%, the lowest level in 13 years. *In 2014, the number of general repair shops actually increased slightly over the previous year. *The number of licensed drivers in the United States continues to climb steadily and sat at just over 212 million at the end of 2013 *Vehicle maintenance costs are second only to gasoline when it comes to total vehicle operating costs. *The independent aftermarket share of the total market has been 70% for the last four years and is expected to remain steady through 2018. Source: Motor Magazine, John Lypen Editors Report, February 2016. To read the complete article, click the link below: https://www.motor.com/magazine-summary/editors-report-feb-2016/

Gonzo, this problem is getting worse for a number of reasons. Shops lose so much time (and Money) by going through the proper test procedures that some rationalize that skipping steps or shot gunning (or hand grenade)is a viable strategy. I don't want to open up the "Can of Diagnostic Worms", but the shops that train regularly, have procedures in place and charge properly for testing are the shops that produce quality repairs. And are profitable. Shops need to slow down, create a methodical approach to all diagnostic work and learn how to communicate to the customer the need to perform, and charge, for tests that will lead to the proper repair. Gonzo, I am hoping I didn't open up that "Can"....know what I mean???

There is a proposed bill in Mississippi that would cap labor rates for collision shops. In my opinion, any bill that would regulate and/or dictate the maximum labor rate a shop can charge is s step in the wrong direction. In addition, as an industry we don't earn enough. The Automotive Service Association (ASA) opposes this bill. What are your thoughts on this? Here's a link for more information: http://asashop.org/mississippi-bill-would-cap-labor-rates/

I agree Gonzo. We are not alone and ASO brings us together even closer! And thank you for your weekly article contributions. We have an amazing membership, always willing to help one another in the most professional and ethical way.

Thank you Adam for your kind words.

You are so right. I go on the forums and I can't believe all the participation and the great discussions going on. AutoShopOwner.com has exceeded my expectations, and it's all due to the great members.

Thank you, it is. I am proud of the group of great members. We have formed a strong bond.

Best of luck Gabe! and welcome to AutoShopOwner.com. There is a ton information on the forums and blogs. Read thru it and please participate in the discussions. Here is the first tip: Create your business plan and develop your business skills. To be successful, you will need to be proficient in areas of Finance, Employee Management, Workflow Processes and Goal Setting. Again, best of luck and welcome to ASO! Joe Marconi Co-founder, AutoShopOwmer.com

I am proud to announce that AutoShopOwner.com will soon reach 3000 members! And the thanks goes to you, the members of ASO. The posts and content are top quality and relevant to the auto repair industry. The discussions are great resources for shop management, advertising, marketing, employee management and much more. My goal for 2016 is to increase membership to 4000. And with your help,we can do it. Spread the word, but most important; keep posting comments and participating in the forums. Again, thanks to all members for making AutoShopOwner.com the number one go-to online source for repair shop owners. Joe Marconi

Gonzo, in my experience, there are more mechanics willing to help a fellow tech, than those who will not. It's amazing how techs my complain about long work days or any hardships while getting "paid", but will help a fellow tech the entire weekend on a project car and work for FREE! The truth is, no one knows it all and everyone needs help from time to time. It's comforting to know that we can always reach out for help, and in turn, we are willing to help others.

A common discussion this time of the year is how business slows down in the mid-winter months. Not that you can always predict it. I have experienced some winters that were banner sales months. But in general, business does slow down for a number of reasons, especially in the colder climates: Credit Card bills from holiday spending, home heating bills, tax season, lost days due to storms and more. So, the question is, how does a shop prepare? Here's a few things that I do. Perhaps you add your owner strategies, which would benefit all ASO members: * Prepare in advance and flood your customer base with service reminders, winter promotions and other recommended services during the slower months. Try to increase traffic to your shop during the months that are typically slower * Review the history on all vehicles the day before the appointment. Look for previous notes and recommended service and repairs. Be prepared to discuss at write-up. * Make sure all cars get a multi-point inspection - identify needed service and repairs * Review the service history for all vehicles. Check for services due, services due soon and services never done. Again, this can be done prior to the appointment date and discussed at the write-up * At write-up, don't forget to ask, Is there anything else we can do for you today? Wipers? Tire Rotation? An oil change? * If you use email promotions, create email blasts around winter events, for example: "Its Valentines Day! Show your car some love!" Include a few winter tips and links back to your website and to book appointments OR... "Winter Driving Advisory: Is your car prepared for the upcoming storm?" Include a few tips; wipers, tires, washer fluid top off, heater working right, antifreeze, battery. And of course, links back to your website and appointments. * Check your CRM for customers that did not show up for their recommended service or repair. CALL THESE CUSTOMERS. Here's a tip; start calling your best customers, those are the ones most likely to come in. * Go back and review all invoices for the past 4 weeks. Look over the work orders and check service history too. You will find work that was missed, not sold and services that are due. Call these customers too. As you can see, a proactive approach is better than hoping people will come in. What strategies to you have?

This is a different tip this week, but important. There have a lot of phony scam phone calls claiming that the IRS is starting a law suit. If you receive a phone call claiming to the be IRS, hang up. The IRS does not use an automated phone message to start any correspondence, audit or law suit. Also, please pass this information to friends and relatives.