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Joe Marconi
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Everything posted by Joe Marconi
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As always, thank you Carm for the opportunity! It was amazing and a lot of fun! And THANK YOU for what you do for the industry. Your efforts have made a positive difference in the automotive aftermarket! Keep it going in '24! Happy New Year! -
Good point, in your business model there are not well-known parts, therefore those prices are not price-sensitive. Good point!
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I think the past few years have told us that consumers, in general, want their cars repaired and serviced with a high degree of quality, a fair price, and a good experience. Let's face it, labor rates have gone up a lot for many shops around the country, but with little pushback from loyal customers. But, is this a complete picture? I am not sure, while labor is more accepted in the mind of the consumer, aren't part prices still an issue since it's easily researched, such as on Google, Amazon, Rock Auto, etc.?
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I want to wish all our members the very best during the holiday season, and the very best in the New Year! What you do every day is essential to the lifeblood of our country. You keep America moving, and you should be proud!
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I recently spoke to a shop owner who told me his techs give him pushback on performing the multipoint inspection (MPI). After a few questions, I think I revealed the REAL problem. His techs are paid Flat-Rate, and not being compensated to do the MPI. When on flat rate, every minute means earned pay. However, is it a flat rate issue or a culture and leadership problem? Or the wrong employees? I realize that time must be compensated on that type of pay system, but what about the customer and their safety?
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Many shop owners are saying that the great business increase we experienced in the past few years is fading. I don't think so. Are things stabilizing? Probably. But we are in very good times, with great opportunity. Many shops finally raised their labor and prices that can earn them a decent profit, the average age of a car is around 12 to 13 years old and still rising. I can't speak for everyone, but would like to hear your thoughts on the state of the Auto Repair Shops from your perspective.
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Good points, and perspective! And thanks for the link!
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Gerald, I agree with your assessment. Specialization is the key, and we need to assess the strengths of our employees and provide training in those areas. A shop's business model will dictate the competencies needed to provide top-level service/repairs to their customer base. One more thing to add to this discussion; top pay or A-rated pay cannot be reserved for the "traditional" definition. Please note that flat rate pay is not the norm in many states, such as New York. Rethinking pay scales is also inevitable. Looking forward to Vision 2024!
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Too many shop owners spend too much time on new customer acquisition. While this is important, they sometimes forget about the customer right in front of them. Retention is your key marketing strategy. Great topic SMP! As always, great podcast!
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When I started as a young auto technician in the mid 1970s, working in a general automotive repair shop was a lot simpler. After all, we mostly worked on GM, Ford and Chryslers, and most of the work was mechanical. Fast forward to today, can the General Repair shop model still work? Today's techs who work in general repair shops have to bounce from Toyota, to Honda, to Nissan to GM to BMW, to Hybrids, and on and on. And then switch gears to a Ford pickup diesel. Techs also need a working knowledge in, electrical, on board computer and driveability issues a wide variety of car makes and models. And what about the training needed and the tools/equipment need to service and repair a wide range of worldwide car models? If you are a general repair shop, I would like to learn more about how you are adjusting to the challenges of running a general repair shop.
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This is such an important topic these days. Since COVID and the recent inflation, many shops are finally aware that labor, pricing, and understanding their numbers is key to running a successful business. Another must-listen/watch Carm podcast!
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Mobile Service, going to the customer by request.
Joe Marconi replied to Hands On's topic in General Automotive Discussion
I was never a fan of loaner cars. With car counts 100 plus each week, we would need a fleet of cars. However, many shop owners rave how great their loaner car program is. I guess it is an individual choice. For me, I set up deals with the local Enterprise and Hertz for discounted rates, and that worked great for me. In my area, Uber and Lyft are not that easy to get at times, not yet anyway. I also used local taxi service. And, we also had a shuttle van for local rides. -
Mobile Service, going to the customer by request.
Joe Marconi replied to Hands On's topic in General Automotive Discussion
You make a great point! -
To all ASO members, I want to take this time to thank you, our members, for making Auto Shop Owner the go to online forum for automotive aftermarket repair shop owners. There is a wealth of information withing these virtual pages and more to come in the future. From Alex and I, we want to wish you the very best this Thanksgiving Holiday!
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This is a topic that is often discussed and heavily debated. The fact is that these days the average consumer does not think about auto repairs or preventive maintenance as they did 20 to 30 years ago. Plus, back then cars broke down a lot! Today, we need to be proactive about setting the customer's appointment. Too many shops spend a lot of money to get NEW customers, when they HAVE customers right in front of them everyday. Why not bring them back? Do you have a process that books your customer's next appointment? Yes, of why not?
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I know as well as you, the difficulties and the challenges of running an auto repair shop. I lived that life for 41 years, and now work to help other shop owners as a coach. Even with all the responsibilities and duties of a shop owner, perhaps one that is overlooked is taking care of yourself. Take time this Thanksgiving holiday to spend time with family and friends. Maybe do something that you really enjoy, away from the business. Additionally, focus on what you have, not what you don't have. Show appreciation for the people who work with you too. We all need a mental and physical break from time to time. It helps to declutter our minds and reenergize our bodies, and pays off in the long run too! Happy Thanksgiving to all!
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Technician Production is More Complicated than You Think
Joe Marconi posted a blog entry in Joe's Blog
Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency. As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems. But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars. Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit. Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good. Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership. The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production. -
Wow, I guess it's important to have on ongoing marketing plan not matter what a shop is doing regarding advertising and marketing. And yes, Google ad words as changed a lot. Organic SEO for most shops is perhaps better, it just take time to develop, but it's more lasting. Thanks for the info!
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How long would it take to ramp up the advertising? In other words, how long did it take to get the results you were looking for?
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I was speaking to a fellow shop owner recently. When I asked how was business, he replied, "Ok, I guess, a little slower than normal." I followed up with another question, "Have car counts slipped?" He replied, 'Funny you should ask, car counts are good, in fact, very steady. It's sales that are off." As a business coach, I see this all too often. Complacency can set in when the good times are perceived as the norm and likely to continue, and the staff, particularly service advisors, don't stick to the sales process. The bottom line is this: All auto repair shops go through ups and downs. The best way to smooth out the highs and lows is to stick with the sales process, create that amazing customer experience, perform the vehicle multipoint inspections on all cars, and perform the car delivery process properly by informing customers of future needed service and book the next appointment. Follow this process, don't let complacency become your repair shop's norm.
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Wow, this would make a great TV show! It's also great information for other shop owners to be aware and mindful of how some people will cross the line of ethics and break the law. Thanks for sharing, Frank!
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Wow, what an amazing story. So, ordering the tires gave you and Police time to set up the sting?
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Let us take time today to thank and honor the Veterans who served in our nation's Armed Forces.
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Excellent Point! Too often, we beat up on the technician, when the real problems rests with how the estimates are being created. Too many labor dollars are left on table by not accounting for the true worth of job. Thanks for your perceptive! Your post should be required reading for shop owners.
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Featured in Ratchet and Wrench Magazine - June 2023 Steve Jobs may have been best known as the co-founder of Apple Computer and a great entrepreneur, but his style of leadership and management was highly controversial. Jobs would schedule meetings with his team, then randomly point to someone and ask, “Tell me what’s not working at this company?” After that person gave their opinion, he would then turn to the group and ask for everyone’s feedback. Then he would point to another person, and say, “Tell me what is working?” While his technique may appear divisive, Jobs placed a high value on getting valuable feedback. Which meant that he had to know the truth, no matter how ugly it might be. For most people, it’s difficult to receive critical feedback. No one enjoys learning that we dropped the ball, or that something isn’t going right. And how often does an employee walk up to you, and pull you aside to inform you of bad news? Not very often, right? While receiving praise and recognition does motivate us, growth opportunities also exist when things go wrong. How we deal with adversity and bounce back from failure tells us a lot about our mental toughness. Great success is never dependent on everything going right all the time. That’s not reality. Look at it this way: getting only good news all the time is mostly useless. On the contrary, bad news can be good news. And we should accept and welcome it. If employees are reluctant to bring you bad news, it’s an indication that they may fear confronting you. As the shop owner, you need to do a little self-reflection to ensure that you are a leader that is approachable, and not on the defensive when an employee wants to sit down and discuss things. Be mindful of how you interact with others too. Your body language and the tone of your voice will either draw people to you or push them away. If you truly want to grow as a business owner and as a leader, you need to allow others to voice their opinions and let you know that your company, at times, may not be the paradise you believe it is. The question is how do you create an environment that gives people the confidence and willingness to confront you with critical issues? Make it known that you want to create a work environment where feedback, especially when things go wrong, is accepted and welcomed. Remember, if people fear bringing you bad news or only tell you the good things, you may not have an open environment where people feel they can discuss all issues, good and bad. It’s also important to realize that to give critical feedback to others, you must be open and willing to receive critical feedback. At the start of any team meeting, let your employees know that you will be asking for everyone’s opinions on ways to improve. Emphasize that you want to hear not only what’s going right, but also where the company is failing. People’s opinions may not be shared by everyone, but one’s perspective is their reality. We need to listen to all voices. Be transparent and let everyone know that you will listen to everyone and do your best to act on everyone’s feedback. Another thing to be aware of; don’t allow an atmosphere that encourages gossip or venting. This will promote negativity and bring down morale. You need honest, healthy feedback that everyone can accept and learn from. The bottom line? The next time someone brings you bad news, look them straight in the eye, smile, and say, “Thank you!”
