Joe Marconi

Thanks, I wrote that years ago and repeat from time to time. A lot for personal reasons, as you can imagine.

MEN OF STEEL Some of my fondest memories as a young boy in the 1960’s were the Saturday afternoons I spent with my father at Babe’s Body Shop in the Bronx. Babe and my father were old army buddies who served together in World War II. They grew up in the same neighborhood and remained friends their entire lives. I never knew his real name or his last name, everyone just called him Babe. As my father and Babe would talk about the old days and the War, I would wander off and watch the men in the shop perform their magic. I can still remember as if it were yesterday. I watched in amazement as these men took a wrecked car and pounded it back into shape. In those days, you didn’t just replace a fender or quarter panel, you fixed it. These guys had the strength of Hercules and the skill of a Michelangelo. I remember on one particular day, my father noticed how fascinated I was watching the guys in the shop. He knelt down beside me, pointed to the guys and said, “I call these guys, Men of Steel. These are tough guys that work hard each and every day. They can take a crumpled-up fender and with hammer in hand, work it back into shape just the way it looked when it rolled off the assembly line; and all by eye”. Before we left to go home, my father and I walked around the side of the body shop and pulled two sodas out of the Coke Cooler. Then we would sat down on a bench seat taken from of an old Desoto and finished our Cokes. Could an eight year old ask for a better summer Saturday afternoon? For many of us, childhood memories have served to create pathways to our careers. The auto repair industry is filled with shop owners and mechanics that draw upon past memories to shape their lives. The auto repair industry may have changed a bit, but we still perform magic every day. We are a dedicated breed and should be proud of what we, as a group, have accomplished. My passion for this business was born watching those “men of steel” back in the 60’s. I knew from a young age what I wanted to do in my life. I feel lucky that way. I often wonder how many people go to work every day hating their jobs. I am a mechanic and a shop owner. It’s the life I chose and it’s the life you chose. We all have a special bond. The glue that has bonded us together is our past. That same glue will help secure our future. My father encouraged me to open my own shop and we shared some great times before his passing in 1986. You see, he was also one of those “Men of Steel”. I’m not one to live in the past, but I would give just about anything to have one more summer Saturday afternoon, sitting on that bench seat behind Babe’s Body Shop sharing a coke with my Dad. Happy Father's Day!

We have all been there. When we are busy, we sometime are focused on putting out all the fires in the bays. I think that the because you took the time to post what happens tells us that you feel you could have done things differently. So, learn from it, and move on. Life is a journey, not a destination. Each step is another opportunity to see new things and learn.

Years back, traditional marketing and advertising worked really well. But, if you are like me and have been tracking the effectiveness of traditional marketing and advertising (radio, TV, print, direct mail, etc.) you will agree that it's just not what it used to be. A few years back I began to get more involved with the community: youth sports teams, school events, fund raisers for local organizations and other community-based functions. And it's paying off. I also reduced my ad budget as I did this, and put the money into this community-based strategy. I also started doing the local Business EXPOs and other local business street fairs. It's a long process, but worth it. You build your brand around the community and attract people to you that are also like-minded and value what goes on in your home town. I am not suggesting giving up your advertising all together, but if want to build your company in your community and make it stand out, consider this strategy.

Truly understanding the numbers and how they relate to the bottom line is the only way to insure your success. Many hidden problems can be identified by evaluating the numbers. While I do agree that gross profit dollars are what we should be most concerned about, the right mix of KPIs will get you to where you need to be. One example: You are posting an $84.00 labor rate, you have two techs working 40 hours each and you pay those techs 20per hour. With payroll expenses and other benefits the techs cost you $25.00 per hour. The $84.00 labor rate is needed to attain your 70% gross profit on labor. In a perfect world you would expect 2 techs billing 80 hours per week, at your $84.00 rate should produce $6720 in labor, right? Well, what if the two techs produced only 50 hours of labor (which is typical of many shops)? That would lower your labor dollars to $4200. Now, when you look at the labor produced vs. the hours the techs worked, there is a shortfall, and the actual labor per hour generated was only $52.50 per hour, not enough gross profit to support the two tech's payroll. So, what you need to do is to see where the issues are: Is it the tech's efficiency? Is there too much down time between jobs? Are we not billing enough labor? Are we giving away too much unbilled labor? Are the techs doing other tasks around the shop that do not produce income for the shop? Finding the reasons will cure the labor problem. Sorry to be long-winded, but that is one example of truly understanding the numbers.

What a chase, what a driver!

Great trip down memory lane. I am from that era of points and condensers and generators. And I DO KNOW what the second floor switch was next to the dimmer switch. Yes, we have seen history being made before our eyes. Some good, some bad, but all fascinating.

I can't speak for all management systems. We use Mitchell Manager with an add on feature called Pro Pack from Bolt on Technology, it has it's own calendar system. When we print an oil changer sticker from Pro Pack, it automatically creates the next appointment and that appointment is automatically listed on the customer's invoice. At car delivery we u simply inform the customer that based on the vehicle and driving habits your next appointment will be November 12, 2014. As you inform the customer, you also point to the invoice where it's written and you circle it with your pen. Mitchell will then send out a reminder card (or email) and a text message (if the customer opts in for texting). The reminder goes out a few weeks before, the text is set up two days before as an additional reminder. But the system works best when you call the customer a few days before. Why? If the customer cannot make the appointment, simply reschedule. We print the schedule from Mitchell for following week and make reminder calls. Another point, in time your customers become creatures of habit and the return rate goes up. You can also do this with outlook calendar or Google calendar. With those calendars you will need to manually enter the customer's appointment and then look at the calendar the week prior to see who is coming in and make the calls. Check your management system or use Outlook or Google. One last thing, you can even use this system for other work, for example a timing belt needed on a customer's car next month. Set it up in your calendar, and call the person a week prior to remind the customer, and rearrange the appointment if needed.

What do doctors, dentists, eye doctors and hairdressers all have in common? Thats right; they all book the next appointment. So why dont we do it? Oh, I know many of you do, and that's great. But most shops don't, and I have heard every excuse under the sun why booking the next appointment does not work: "My customers dont know what they are doing in 4 month." Well, guess what; when your dentist books your next cleaning, you dont know if you will be available on the booked date in six months or a year from now either, do you? Booking the next appointment will help to smooth out the highs and lows in your workflow. It will keep the customer coming back to you and not thinking of someone else. But, there is a trick to the success of booking the next appointment. What does your dentist do a day or so before the appointment date? Yes, he calls you. And if you cant make it that day? Right again; he books another day. So the trick is to set up a call system to remind customers. The thing to remember is this.every car in your shop today will need future service workthe questions is this; will that customer come back to you? The odds are in your favor when you book the next appointment.

This may sound silly, but the trick is to avoid the highs and lows in your business. While every shop has slow days, you need to build your future business with what is in the bays today. Look at all cars in your shop as future services and repairs. Every car in your shop today will need work in the future. Plan out the customer's future needed services: tire rotations, service interval and other repairs. Create a system where all cars get fully inspected and spend time with each customer to educate them on preventive maintenance. There is a ton of service work that goes ignored from coast to coast. Also, set up a system where you will call a customer to remind them of a recommendation, in addition to service reminders. Build your future clientele base one customer at a time. Lastly, review all past invoices to make sure you or your techs are not missing opportunity with regard to services and repairs. I hope this helps. Being slow is no fun...as I said, we all go thru it.

Since I started in this business, nearly 4 decades ago, we have struggled with defining what a true mechanic is. What are the qualifications? If you look at the typical shop, there are mechanics at every different level. Perhaps the greatest challenge is the perception from the consumer. Technology as come a long way, but many of us still conduct business as we did in the past. I don't know if our industry will ever get the structure that will be needed to determine standards and be recognize with respect from consumers. One thing I do know, as long as we have people like you Gonzo, and the others on this forum, we will move in the right direction.

A customer came to us with an o2 sensor he said was diagnosed somwhere else. He also brought us internet documentation on the error code and the most likely cause is the o2 sensor. My manager recommned to first properly diagnosis the problem, before we throw parts at it. He erupted in anger and said, "It's already diagnosed, put in the part like I requested!" Well, we did and guess what? That's right, the check engine light is still on with the same error code. We called him to tell him. After 2 days of thinking about it, he gave us authortization to go ahead with the diagnostic testing. I made this post because I know everyone can relate to this situation.

Thanks! Yes, I agree, booking future appointments can be a powerful marketing tool

That is a very good question, and I really don't know.

Gonzo, I have this before, and it still has the same affect on me. Thank you for posting this story. We must never forget the true meaning of Memorial Day.

Every car thats in your shop today will need service and repairs in the future. True? So, the question is: Will they come back to you? Here are a few tips during the customer visit that you can use to increase sales and get your customer to return to you: -Make sure that you review the service history on all cars coming in for service or repair. If possible, review the history before the customer arrives, so you can review at time of write up. - Discuss at time of write up, any notes or recommendations made from the last visit - Inform all customers at write up that you always give the car a multipoint inspection and that if it is ok, any discoveries will be presented and discussed with them. - Make sure that each car gets some sort of multipoint inspection. Think of this as going to you doctor. You may be going complaining of a pain in your shoulder, but he is still going to check all your other vital signs; blood pressure, listen to your lungs and heart, look at your eyes and ears, etc. - Tell the customer everything the tech finds on the car, good and bad. - Any recommended work in the future, such as a timing belt, should be discussed in detailed and give the customer a time frame when to get it done. Tell the customer that you will put it on the calendar and set up a system that the customer will be called by phone, in addition to any service reminder you send. - Book the next appointment for service. I have heard every excuse from coast to coast that this does not work. That the customer does not know what they are doing in 4 or 5 months from now. Well, it does work. Your dentist, doctor and eye doctor does it. Why? Because it does work. But dont just book the appointment, set up a system that the customer will be notified by service reminder card, email or text and that they will get a phone call a few days prior to the appointment. Tell the customer that if the day is not good when you call, not to worry, reschedule. Try this with your best customers first, take it slow, but do it. It works.

Memorial Day is a time to reflect back and honor the men and women who made the ultimate sacrifice in service to our country. Our great nation enjoys freedoms not found in other countries and we need to cherish the memories of those that fought to maintain these freedoms. Have a great holiday weekend!

Car counts and ARO are considered the barometer of your business. While it would difficult and perhaps not fair to make determinations on your shop, I can tell you that you need to strive for a higher ARO, but not necessarily high car counts. That is not to say car counts are not important, maximizing your potential per car/customer will bring more dollars to you bottom line. An ARO of 150 does seem to be low. Do you inspect every car (multipoint), do you look at vehicle history for services due, do you recommend future maintenance service that are coming due and do you book the next appointment. These are some of the things that will allow you sell more profitable work and raise the ARO. You will also find one-bay shops and 30-bay shops, so again its hard to say what is the right car count. This is a start, I hope it helps. I am interested in what others have to say too.

Very well written! A real touchy subject that we all can relate to. Our future depends a lot on the consumer perception of what we do. I see more and more people having a hard time understanding the value of what we do. Can you blame them with all the ads on TV and Radio? Just look at the new Midas ad? The auto repair industry has come to a crossroad and the choices we make as an industry will impact our future. Thanks, great article, as usual!

Thanks, my fear is that he will be back, but will he change? Not sure. Can a Zebra change his stripes?

I walked into the shop the other day and was disturbed at what I saw. One of the techs was replacing and engine on a Honda, and his bay looked a mess. There were parts all over the place, tools on the floor and equipment scattered around his bay. I walked over to the foreman and manager and said, We had this discussion time and time again, this sloppy work habit has to stop! Both of them just looked at me, not saying a word. Finally the manager said, Joe, I'll take care of it What I found out later was that the new engine had a crack down the side (probably damaged in transit), and the tech did not notice it until he lifted it on the engine crane. He had transferred a lot of parts by then, worked thru his lunch to make up the time. I ended up apologizing to everyone. The lesson for me: Keep your mouth shut until you know all the facts. Never lose sight of the big picture.

I attended a BG service advisor seminar this past week in the Hartford CT area. It was worth every minute. The instructor, Mike B was excellent. He was like a performer on stage and kept everyone engaged. The seminar was a full day, 9 to 4, but no one fell asleep. The best part, it was not a BG product sales push. Mike B gave us real-life information and strategies that we could take back to our shops to sell all types of services and repairs, not just BG services. My hats off to Mike B and BG, great job! If you have a BG rep in your area, ask him about the seminar.

I agree, it's the way of world today.

A few suggestions: Direct mail is a long term commitment. Don't get frustrated in the beginning. Also, make sure you are targeting you profile customers. Try to build value in your marketing, not just discounting to bring them in. Your advertising should convey what you are as a company and what type of customer you want to attract. Lastly, direct mail works best when backed up by other forms of media. So, what ever the message, be consistent throughout all forms of ads and media exposure. The rate of return may be low in the beginning too. Good luck and keep us posted!