Joe Marconi

Are you ready for the surge in business? This past winter will no doubt go in the history books as one of the toughest on record. Many shops, mine included, lost 6 or more days of work in February alone. I don’t want to think about the loss of revenue, I rather put it behind me and move on. There are some things that we cannot control, Mother Nature being one of them. However, as in all adversity, it’s not about getting knocked down that counts, it’s what you do when you get back on your feet. All indicators are pointing to a very busy spring. Will you be ready and cash in? Speak to all customers starting now about the safety of their cars after a tough winter. Put together a promotion to inspect cars for winter related vehicle damage. Here are a few tips I put together to think about: Every car that hit a pothole should have at least a safety check and alignment check. Check shocks, struts, springs and other undercarriage components Carefully inspect tires and wheels too, Think about selling alignments, wheel balance, etc. Every car that drove in snow and ice storms need to have a safety check and the transmission fluid inspected. I saw with my own eyes countless cars with the drive wheels spinning out of control. This overheats transmission fluid and may damage transmissions and clutches. Salt and other chemicals used on the roads will takes its toll on many cars Neglected maintenance, such as overdue oil changes, will become an issue, educate customers Wiper blades took a beating – should I say more on this subject? I am sure you can think of more things too. The point is you need to inform customers and take care of their cars. Take a proactive approach, rather than a reactive approach. In other words, don’t wait for the customer to come to you with a problem, inform and inspect. A doctor once told me, the time to start thinking about taking care of your body is not on the way to the hospital in an ambulance.

Crash Repair Info is a web site that consumers can go to find information on the complexities of collision repairs. The site can educate consumers on a variety of topics, which builds value, in areas of insurance, salvage parts, shop certification and more. Basically, it’s a site to better inform the consumer should they get into an accident. I don’t know if you checked out this site yet, but you should and give feedback. Is the site useful? Can he used to help market our shops? Will this site build value in the eyes of the consumer? Here’s the site link: http://www.crashrepairinfo.com/

We need to all rethink traditional media (TV, print, radio, yellow page books,etc) We took a survey of our customers and asked, How did you first find us? What form of media do you use to decide on new product purchases? What form of media do you use to decide on; plumber, contractor, new car purchase, car repair, restaurant, etc Over 90% said they came to us because of a referral Over 90% said the use the internet to research new product purchases Over 85% they rely on friends or relative when choosing a plumber, contractor, new car dealer,car repair, etc. Out of that 85% plus, 60% will follow up research on the Internet about those companies This was my survey, with my customers. I can't claim that this is the way it is with everyone else, but I am willing to bet it comes close. I am also willing to bet that we can no longer deny that social media will become a dominate player for us, with regard to promoting our shops and staying in touch with our customers. It will be different, but wasn't TV different? People once claimed that TV was a fad, radio will remain king.

Very funny! I have read those quotes before, but every time I read them I still laugh. I think we are all guilty of flubs, it's what makes us human. But Yogi was the master at it. I love when he was asked, "What makes a great manager?" Yogi replied, "Great players"

I don't anyone is saying not do to it, it's more about making sure you take one step at a time and minimize the risk. Many people have taken over low producing shops and turned it into a gold mine. If this your dream and your goal, go for it. Just create a plan and look at all things objectively. It sounds as if you are doing all your research and that's great. Again, all of us who have been there are extra cautious because of what we have been through. Keep us updated and ask for help. We need new blood in the industry. Remember, don't be shy about asking questions, your fellow ASO members are there to help.

First, you are not alone on this one. I just had a meeting with my account about the loss we incur each year when techs break things, damage parts and cause us to pay out of pocket for things that they are responsible for, not mine. The loss is ours and I don't know if you can go after him legally, but I am not a lawyer. As far as a loss on my tax return, my accoutant says the loss is already accounted for with loss of production, which translates to loss sales. It stinks, right? I don't have an easy answer. I can tell you that we need to be real carful who we hire these days. Quality techs are harder and harder to find. Too many of them have sloppy work habits and too many don't have the creditials. I also found out that we spent a few hundreds buck each month last year on mishaps, wrong diagnosis and other breakage/loss ion the shop. I have a big shop, but this is nuts. So again, you are not alone. By the way, those techs are gone now! Another reason to be a true owner and run the shop, not work in it. Hire slow, fire fast!

I don't know if you have done this already, but with regard to SOPs, the first place to start is to clearly define everyone's role in the company. From the owner to support staff. Everyone must understand how thier role is crucial to the workflow process. It's like a ball team, every player has a different role, but when played as a team, results will follow. After that, every part of the day must also be committed to paper and reviewed with everyone. From opening to close and everything in between. And, of course, policies and procedures need to be written on how a car is dispateched, brought thru the inspection process, discovery of needed work, the communuication betweem tech and advisor, quality control check after the job is complete and car delivery. Even job scheduling should be thought of: How many cars per day, what type of jobs to balance the day, what tech gets certain jobs. The more you commit to paper, the more smoothly the operation will run. AND, you must constantly review the SOPs with everyone. That's a lot of work, but it's a good start. Great post, by the way!

This is all we need, Bad Press Again. When was the last time the news showed a shop owner that worked thru the night to make sure that a family had their car ready for vacation? BYW: the lady went in for a LOF and ended up needing an engine?

Unless you are profitable enough to pay the entire amount, I agree with Frank, it's better for the employee to have skin the game. We see increases each year. To be honest, we, like so any other small businesses, cannot raise our rates and prices to keep up with the rising costs of doing business around us. We will eventually have to rethink health insurance too. To everyone: Know your numbers, know your cost of doing business and make sure there is profit each week. I know it's tough, I have been doing this over 3 decades, but it's easy to busy, not so easy to make money.

Welcome to ASO. You take some time and go thru this site. There is a ton on information from a lot of the best minds in the Auto industry. And, ASO members are the best when it comes to helping out too.

The amazing thing is that the passengers are laughing! Not me. You won't find me on that bus either.

Working with extended warranty companies can be frustrating. Some go over the line and make me question if we are still in America. The other day, Mike one of my service advisors was obviously upset on the phone. He was calling to get authorization for a claim. The claims rep questioned our labor rate, stating that the average labor rate in our area was $30 dollars less than ours. The claims rep also stated that he wanted to see all our part invoices because they only pay MSRP list (whatever that means) with a cap at 15% over what we pay! It was obvious that he was strong-arming Mike. My opinion? These tactics must stop. Who are they to tell me that my labor is too high? Who are they to dictate to what I can charge? Who are they to demand me to send them my part invoices. This is America, right? I told Mike to give that I would call to finalize the claim. I gave rep an earful and refused to back down on my labor rate. I also refused to fax him part invoices. I actually told him, what if I got the parts for free? What are you going to pay me? I simply told, Just give me what you are paying and the rest is coming from your insured He did not like that, and I did not care. Luckily, we have a policy to warn customers about these warranty companies, and inform the customer that they will be responsible for the balance that Their warranty company does not pay. In the end, the warranty company was the bad guy, we were the heroes, and the job was done the way we want.

I am going to give you two different scenarios, with two completely different results. Scenario 1: A few weeks back I walked into my Doctor's office for a 2:45pm appointment. I approached the receptionist and waited a few minutes as she finished writing something on a note pad. She finally looked up at me expressionless, and I gave her my name. She looked puzzled has she struggled to find my name on the appointment sheet. In obvious disgust, she blurted out, "Who are you and what are you here for?" Scenario 2: Last spring I called to make a reservation at Mortons Steak house, and upscale restaurant. The women on the phone asked me if I was celebrating anything special. I told her that my wife and I are celebrating our wedding anniversary. The women on the phone gave me a 7:15pm reservation time. When my wife and I walked into the restaurant, the receptionist approached us was with a big smile on her face and said, Mr. and Mrs. Marconi? I said, Yes. The receptionist continued, "Welcome to Mortons and happy anniversary." Its obvious that scenario 2 left a much better impression on me. And its one of the reasons why Mortons is known for its world-class customer service. For us, repair shop owners, we should adopt the same warm and friendly concept that Morton's has. While we may not know everyone that comes through our doors, we need to embrace people and welcome them to our shop as family. If you schedule people for service, make sure you know why they are coming and what vehicle they are bringing in for service. So when Mr. Customer walks in your shop with a scheduled appointment, make sure you say, "Yes Mr. Customer, welcome! We've been expecting you. You are here for an oil change on your Chevy Pick Up." Thats a lot better than saying, "Who are you and what are you here for?"

Simply amazing, perhaps the best video I have seen, thanks for posting it!

This is perhaps the more frustrating thing we go through. It has gotten to a point where we stopped ALL pricing before we inspect and test the problem. Just the other day a first time customer came to us asking for a price on pads and rotors. I asked him, "How do you know it needs pads and rotors?" He said, "Son, (he was younger than me by the way) I have been around cars my whole life, I can tell a brake squeal when I hear it." Well, it turned out he needed a belt, brakes were fine. Just as you stated, I hate this merry-go-round-price game. Sadly, it will not end. Oh, I knew a old blacksmith years back, if you asked him how much, he would show you his hammer and strike his anvil few times real hard. Could it be he had the right strategy?

I want to make the point that not matter what we pay, we need to understand that what we charge will determine if we are profitable or not. Paying $20.00 for a rotor or $30.00 for that same rotor from another suppier is one issue, but the price to customer is what we need to consider. I have said this in the past, we need to find a balance between being competitive and being profitable.

I ran the numbers yesterday, and we are 10% off for Feb, as compared with last year for the same time period. Nothing we can do, too many storms, too many days closed. I have to readjust my strategy, it is never easy. But, knowing is a lot better than not knowing.

This is the reason to take it slow, one step at a time and work the details. Great replies from everyone!

We have a claim in with the Chevy Dealer for that defective steering gear, but generally, Good Luck with most dealers. Ford does have a program, but it also depends on what dealership, some don't want to honor it.

I want to know if any shops use license plates frames as a marketing tool, and if you do, do you any special slogan or saying?

Yes, that is the first question, Why is he selling? This is a very important step, and I strongly recommend getting the advice from a pro. Talk to an accountant that has experience in this matter. Another source is a commercial loan officer at a bank that does commercial loans. Also, a lawyer that specializes in real estate. There are business brokers, but be carful with that route. Here are a few things to consider and to discuss when you meet: You are going to have to see all his financials, any loans he has on equipment, inventory, what equipment stays, NON-compete agreement, if there are any liens, lease, and information on his customer data base. I wish you all the luck in the world, but you need to go into this armed with the right people asking the right questions. Lastly, and this is the advice I give to all: Learn about business, REPEAT, learn all you can about the business side of running a shop. Too many of us spend all of our time in the bays, you need to understand the other side of business: The numbers, business management and leadership skills. This will help you more than you know. Best of luck, I like to see people venture out on their own.

Yes, great resource and great information.

We need to be very carful with Loyalty programs. Too often, a shop can give away much needed profit dollars to loyal programs, because where the real problem lies is that the shop does not increase production. Car counts remain the same, production remains the same. So, a shop may end up giving away profits, and not increase sales. If a shop is struggling with customer retention and customer frequency, then a loyalty program may work, but be carful. Profits are still needed to pay the bills and make payroll. Another factor to consider: Why do your BEST customers keep coming to you? Price? I don't think so. We offer loyalty benefits in a different way: Free Road side assistance, free rotations with tire sales, flat tire fixed at n/c, free quick checks and washer top offs between oil changes for loyal customers, Customer appreciation days where we offer hot dogs and burgers. Plus, we promote the lifetime protection from BG products which in essence is a loyalty program, since your best customers usually enter the program and return for those fluid services that maintain the protection plan. Lastly (and sorry for being so long-winded): Base your business model on Who you are and Who are your best customers. Why are they loyal? If you make a focus too much on price, that becomes your business model. No one goes to Starbucks for a cheap cup of coffee.

Source: Part Quality in general, on the decline

If you worked at an Esso Station, you have been around for while. Remember Sinclair Gas? The Dinosaur?