Joe Marconi

It's been a long tough winter for many shops. Now that we are in spring, some shops are doing good, and for others, not so good. It's hard to determine if there are any trends. Usually after a tough winter, business rebounds and sales are up. How are you finding business so far this spring? And what are your thoughts about business and the economy?

Everyone shop owner I speak with today is concerned about the quality of the parts they purchase. And while many of us enjoy low prices on some part lines, we do not enjoy the comebacks and poor quality of many of the parts we purchase. The long term effect is anyone's guess, but it cannot be good. The loss of revenue and the potential loss of consumer confidence is perhaps the biggest worry. With another Cardone Steering Rack failure, I am forced to once again turn to the dealer for many of the aftermarket parts that I have lost confidence in I can tell you that my local CARQUEST/Advance has not turned its back on me or other shops in the area. And while they are going thru their own challenges with the Advance acquisition deal, they have been steadfast in their continued loyalty to their customers, the independent repair shops in the Putnam/Westchester New York area. They are listening and working with us, attempting to contact Cardone about their failure rate, and I also appreciate their honesty. It gives my renewed hope that we are on the right track. I just hope Cardone and the rest of the aftermarket is listening.

Val Pak may work, but is it for your business? You have to determine who your customer is and what type of business you are in. Many shops are not coupon/discount shops. The cater to higher income clientele, who are not coupon clippers. It's very hard to operate a discount business. You have to be the cheapest, continue to offer coupons and generally, you have to accept that your customers will not be loyal to you. They will jump ship for the cheapest deal. So you will have to continue being the coupon type business. Build value and understand your customer, and what brings you the greatest return. Just my thoughts...

I get the analogy, and I also get the point that everyone is looking for that great "deal". But the truth is, and we all know this, price does not always equate with quality. And, as you mentioned, a lot of what we are buying today is of poor quality. Sorry, I am faithful to the aftermarket, but some of the parts we are purchasing is not the best quality. I have made many posts on this subject and published articles too. This race to bottom with regard to pricing will end up hurting us all. In fact, it's hurting us already. Part comebacks are on the rise and if we don't do something about it, the motoring public will...they will stop coming to us. We need to change our mind set about price. Shop owners and motorists alike look for the best price, not always the best part. And, let's face is, shop owners are not getting rich selling cheap parts with low margins. Great topic...a little fuzzy on the analogy, but it works.

Are you referring to how to increase business in the early hours? Usually, the early hours are the busiest for most shops. The usual problem is running out of work before the day is over. Do you set up work by appointments, walk-ins or a combination of both?

It happens to all of us. In my 33 years in business, my shop has had a few accidents. You can't avoid it. Last year when I was on vacation, the tow driver backed into a 66 Mustang! Of all the cars in my lot, why the 66 Mustang? The only thing you can do is to discuss the matter with everyone. Make sure that there isn't something in your workflow or parking layout that could be improved. After the 66 Mustang got crush, we found out that where the car was parked was too vulnerable. We made a change to our parking spots. Other than that, speak to everyone about being careful, on road tests, when moving cars, setting cars on the lifts, etc. Good luck, we all feel your pain.

I guess the more things change, the more they stay the same. We can learn a lot from a veteran like this guy. Great story!

Be Careful of Who’s Greeting Your Customers? Have you ever walked into a store, restaurant or other establishment and the person greeting you treated you as an inconvenience, rather than a valued customer? Sure you have. Well, who’s greeting your customers? More importantly; how are your customers being treated whether on the phone or in person? The people you have greeting your customers and on the phone represent you and your business. Sales can suffer with the wrong people taking care of your customers. This is especially true for first time customers. Every point of contact; from scheduling an appointment, to write up, to car delivery, are critical steps in the customer experience. These customer touch points can be either have a positive or negative emotional experience. Negative experiences will hurt customer retention; positive experiences will help grow your business. The best repairs, using the best tools and parts, done by the best tech means nothing when the customer is treated poorly. If you want to improve the customer experience, which will help increase sales, then take a long hard look at how the customer is being treated, in person and on the phone. Make sure that every point of contact with the customer triggers a positive emotional experience for the customer. So, your greeting your customers?

Welcome to the site! And good luck. Do you have any specific question with regard to part pricing?

This sounds like a great idea. Please keep us updated, I am sure we will want to know how the Car Care event turned out and any tips you can share with us.

The True Cost of Comebacks Comebacks are a hot topic today, particularly with the frustration over poor quality parts. You need to track all comebacks, determine the reason (Tech error, part error, training issue, other) and then calculate the true cost of the comeback. Here are a few things to consider: - The loss of time when performing the comeback; time that the tech can performing other work and generating profit - The misc costs, such as overhead costs, supplies, cleaners, etc - Towing costs, rental, etc - Cost to morale - Reputation damage - Reduction to your profit margin For every part issue, you need to inform your supplier, whether it's NAPA, CARQUEST, Advance Auto, O'Reilly's, or any other. Sit down with suppliers on a regular basis. Dont return defective parts until you have listed the parts and maintain a report. Document everything. Part issues are increasing. Every shop owner I speak to is frustrated over this. Remember, comebacks kill your bottom line, the more comebacks you have, the more its killing your profits.

First, best of luck to you! One thing to consider, the best techs already have jobs. So you need to create an atmosphere and culture that attract people to you. I would spread the word in your local area about who you are. Pass your cards out everywhere. Promote everywhere. Go to seminars, get to know who the best techs are and ask them if they know of anyone who is looking to make a move. Speak to all the tool vendors, part suppliers, trainers, etc. The more you promote your name, the better. Good luck.

I have compared my prices in my area, and found that I high on some and low on others. Please be careful and not to judge your business and prices by other shops. Shops may differ due to the level of service, clientele, type of vehicles worked on and other demographics. A local dealership did a comparative price study and lowered their prices to compete; it killed them. Price is not everything, be competitive, but also be profitable.

Yelp is being sued again for questionable reviews. The Federal Trade Commission has received more than 2,046 complaints filed about Yelp from 2008 through March 4, according to data reviewed by The Wall Street Journal, following a Freedom of Information Act request. Here's a link to a recent Wall Street Journal article. http://online.wsj.com/news/articles/SB10001424052702303847804579477633444768964

April is national car care month and if you are looking for a way to promote your business this spring, consider getting involved. Promoting the need for car maintenance will help promote your shop, and the industry. You can get involved on many different levels: holding car care events to inspect cars, to simply performing car care inspections. For more information, here's a link: http://www.carcare.org/car-care-month/?gclid=CMXcpvTp3b0CFYqIfgodmToAQw

Gonzo, I think as an industry, we are very lucky to have so many passionate people. I wonder what would happen if we did not. Your passion shines through, as in all ASO members. We need to be thankful for that. I also agree that on average, mechanics do not get paid what they are worth. And we need to be careful as we move forward. We need talented people, now and into the future. The most talented have goals and aspirations. Passion will drive them to us, but we need to take care of them. Sadly, many shop owners are not making what they should either, for so many reasons. Great article on a great subject!

There is a lot to said about increasing labor rates, in general. With the high costs of doing business these days, having a healthy labor margin is key. A few comments on this concept. Every shop needs to do the math and understand their Costs of Doing Business. And that does not mean just reaching breakeven, but rather how much above breakeven a shop needs to make. Once that is known, I am not opposed to making sure my profit margins are attained by lowering the margins on parts and increasing labor. The only concern I have is the emphasis we put on part pricing. Question, are we as an industry putting too much focus on price? Here's my other concern; Many shops fear raising labor rates, saying they will lose customers. This fear brings down the profits of the entire industry. We need to promote value, and value is more than a good price. Great post, by the way!

I agree with you Gonzo. The sad part is that we will see more and more if this in the future. Web sites businesses as Repair Pal will increase. My fear, and it should be everyone's fear...It will dilute what we do, lump us all into the same catagory of "all the same auto repair", and put a focus on price, not value.

You bring up some very interesting points. Question, overall, are shops in Canada finidng it hard to remain profitable? It seems that margins on labor and parts has shrunk, while expenses have increased. Your thoughts?

Yes, I agree. We need to sell more maintenance services. In addition, when someone comes in for an Oil Change and a laundry list of other issues, we need to be very careful not to include valuable diag time in a routine LOF. For example, a customers states that he is feeling a vibration on acceleration or as an oil leak. We charge separately for these concerns. I think this is an area where shops can improve on, in addition to selling Maintenance services, not just LOFs

More and more shops are considering calling customers in addition to sending reminders. Think about, you dentist does it, your doctor, hair salons do it, the eye doctor. It's proven that when someone is called in addition to a reminder, it increases the return rate.

My wife and I went to Mall yesterday to buy a gift for my grandson. We passed the men's belts and noticed a sales offer; 30% off all Belts. I stopped to look, and my wife said, "Don't you need a new belt?" So, I picked a $40 belt that was marked down 30%, which brought the belt down to $28. My wife pulls out a $20 coupon, which brought the price down to 8 bucks! What is the real price on the belt?....what is the cost price to the store on the belt? Makes you think, right? I struggle with 10% discounts on AAA customers. Is price all smoke and mirrors, when it comes to retail?

Wow, that is amazing!

This goes on all the time. Take it as a lesson that everything needs to be documented and payment must be paid in full before the car is released. Speak to your accountant about uncollectible debt. It's a shame, but there are people like this out there.