Joe Marconi

I want to wish everyone a happy, healthy and prosperous New Year!

Cell phone use and too quick to judge I was in a clothing store at the local Mall yesterday with my wife. How she convinced me to go to the mall is another story for another day. I spotted a woman on her cell phone between racks of clothing, as if she was hiding. Immediately to myself I thought, “This woman has got to be kidding. The store is packed with customers and the line at the register is a mile long, and she is on her cell phone?” A few minutes later, the same woman was at the register and someone walked in and asked her, “How’s your husband doing?” The woman replied, “I just got a call from the doctor and he is still in critical condition, but it looks like his liver is not as bad as they thought.” At this point, I realized that her time on her cell phone was not to duck work, but was actually something of grave importance. Sometimes there are extenuating circumstances, a lesson for all not to be too quick to judge until all the facts are in.

Wow. real nice, amazing!

I see where you are going with this and you have the right idea. I will tell you what we do. We break down all diagnostics into separate jobs: Check engine light ABS diagnosis Air bag diagnosis Drive train/Drive line noise Suspension/ Steering Engine mechanical Transmission Driveability Cooling system Charging system Starting system Pre-Trip Check ETC For each diagnostic testing ,job, we list all that we do which shows value to the customer and explain in detail what we do and the charges before we proceed. This helps the customer understand that they are paying for testing and inspecting. Deciding what to charge is up to you, you can start with Mitchell or Alldata labor time for diagnosing, and adjust accordingly. For the Pre-Trip inspection, we charge .5, unless they are getting other work, then we incorporate with the job. The key thing is to get paid for whatever diagnosing and testing and inspecting you are doing. I hope this helps. Oh, and keep working on the business, it will pay off!

Well, Christmas must be over, and back to reality. It was real nice reading the past few holiday articles...but that's life. It is truly amazing how disrespectful some people are and how ill-informed they are about what we do. I agree with your reaction and had a similar situation. We had a women come in a few months ago that needed a annual NY state inspection. She said we had to keep the car running for two reasons, she had a breath analyzer (probably a relative to your grandpa) and it needed a battery. We tried to explain to her that we might be able to keep the car running but it might fail the OBD II check if the monitors are cleared. And if it did, she would still owe us the $21.00 for the state inspection. She said she understood.... Well, it failed....no monitors set and the fight began. She did not want to pay us for the inspection because it failed, and we could not give her a new inspection certificate. She was also out of date and now driving illegally. Back and forth we went, until I threatened her that I would drive the car to the street curb and shut the car off. She threaten to call the Police. I laughed and handed her my phone! She finally paid the 21 bucks and stormed out. Hey Gonzo, are all these crazies related to each other?

I am staying out in California at my sons place for the holidays. He was complaining to me that the dining room chair legs were loose, so being the mechanic that I am, I took a look. All the bolts loosen up. The heads of the bolts were Allen key style (hex heads). He did not have the right size, so we went out in search of a hardware store, but found an AutoZone on the way. We found the right size hex key and went to the register to pay. This was a Sunday afternoon around 4pm. At the register counter was a line of people buying: Wiper blades, oil, air filters, oil filters, batteries, floor mats, car wax, shop rages, and asking questions about problems with their cars. These were not our customers. But it made me think: Do the AutoZones compete with us? Are they really a threat? Or do they somehow fit a need that we cannot or should not fulfill? Your thoughts?

I start getting calls a few weeks before Christmas from local shop owners asking me what I am doing for the holidays, especially when Christmas and New Years day falls in the middle of the week. Here's what we do. First, we close Christmas Eve, Christmas Day, open till 2pm on New Year's Eve and close New Year's Day. But, the week before Christmas we start expanding our hours, so that we can maximize the potential tech hours. We sit down with the techs and tell them what we are doing. We book longer days so we can minimize the impact on sales. This has worked out very good. This is not to say that we have normal sales weeks, but it is better than if we did nothing. What do other shops do?

To all AutoShopOwner.com Members, As we close out another year, I want to once again express my appreciation to all the members of AutoShopOwner.com. You have made this site the number one business management forum site for the Automotive Repair and Service Industry. We get calls and emails all the time from people around the industry commenting on all the great content and the valuable information we post daily. This was our goal, our dream: To have a place where shop owners can come together and collectively share their experience, ask questions, learn and help their fellow shop owner. As we grow, we will only get stronger and stronger. And you have our pledge that we will continue to provide you with the level of content you are looking for. Thank you again and I wish everyone the very best this holiday season and the very best in the new year. Joe and Alex Cofounders AutoShopOwner.com

First, welcome to AutoShopOwner.com and the best of luck to you! And please don't be a stranger, the members on ASO always want to help, that's the power of ASO. When offering services like the ones you are suggesting, you need to remember that every free service you offer comes with a price. That's not to say that you should not offer the services, it just means that the more your provide will determine what type of business you run. Are you a discount shop, or a high end shop catering to a higher clientele? People who flock to a discount shop do not care about frills, they live for today and want a cheap price today. If you cater to an up-scale clientele, then the more you offer to the customer the better. HOWEVER, the customer is willing to pay more because of the perceived value you have to offer. In other words, you must charge more. Or, what you offer will eat into the bottom line. Put it this way, COSTCO and WallMart offer no frills and give nothing away, they don't have free delivery and no money is spent is how the place looks. They are all about price. And that's ok. Now, look at Nordstrom's or Neiman Marcus, the two most expensive clothing stores. They are very profitable but attract a certain clientele that are willing to pay their high prices. Why? Well, in addition to status, they really want that experience of the personal shopper person that walks them around the store and helps them buying their cloths. I hope this makes senses, if not, let me know. Lastly: We offer free shuttle service, free road side assistance (thru BG Saftrak), and other perks. We really don't use them as a "draw" but to reward our most loyal customers. And, we do charge more than the average shop in our area.

Great parallel to today's times. I know I have said this in the past, but you truly have a gift. A weekend cannot go by unless I read your articles. And your Christmas columns are extra special. Thanks again!

Thanks for posting this, brought chills to me. Merry Christmas!

That would be something!

Managing the Customer’s Budget should not be taken lightly If anything good came out of the recent recession, it’s that many people have learned to budget their finances better. We are all well aware that there are times when the customer cannot afford all the services and/or repairs that we are recommending. For example, a customer comes in for a 60k service and you discover that the car needs brakes on all 4 wheels and tires. The customer, due to budgeting reasons, declines the 60k service but authorizes the brake work and tires. If it comes down to prioritizing work, then we must advise the customer accordingly. Safety will always take precedent over service work. Please bear in mind that preventive maintenance is always in the customer’s best interest, and this must be conveyed to your customer. I do not take any declined work lightly. If I recommend something today, it’s because it needs to be done. If the customer is on a strict budget and you opt to select certain service to be put off, you must set up a schedule and timeline for the customer to return. If you merely accept the declined work without any thought to getting the customer back, you have just told the customer that what you have just recommended was nothing more than a suggestion. One of biggest reasons for lost future sales is not properly setting up a timeline for the customer to return for the services recommended. Communicate with the customer; ask when they can return to complete the services. See if there are any options you can offer that will make the customer feel more comfortable. Find out how long the customer is planning to keep the car, who drives the car, and what the car is primarily used for. Asking questions is a great way to keep open the lines of communication. It allows the customer to be part of the decision-making process. This alone will improve your sales ratio. So remember, if you and the customer decide to hold off on some of the work you recommend, emphasize the importance of your recommendations, work with the customer to set up a timeline for the customer and book the next appointment. Do not leave it chance that the customer will return for those declined services.

My manager took a few days off, so I decided to hang around the shop and waiting area, just to see if I could help in any way. I overhead a customer during write up say, “ The car is running great, I know I am do for services, but I’ll take my chances. If the engine blows, I rather replace the engine”. We have all heard the foolishness that has come out the mouth of some people, but this statement particularly disturbed me. When asked how long he was keeping the car, he replied by saying at least another 12 years! 12 years and this guy does not want to maintain it? By the way, he drives a Toyota Matrix with 121,000 miles on the clock and he commutes to NYC each day, a round trip of nearly two hours. I decided to work with the tech and advisor just to see how this progresses. Looking at his service history, he needed a 120k service, and the road test revealed a very bad brake vibration. After we completed the multi point, I asked him to come into the shop to show him the brakes and discuss the 120k service. With his 4 year old son by his side, he said, “I’ll wait on that, just finish the oil change” I said, “Are you sure about that? You said you wanted another 12 years out of this car. You commute every day to the city, your brakes are not safe, you have young children, a wife and if something happens to the engine you rather replace it; an engine that will cost of 5,000 bucks; is that what you are telling me?” He was silent for a few seconds and I was fearful I said the wrong things. He replied, “Well, when you put it like that, I guess I need to listen to you”. We went ahead with the services, and the brakes, and I explained to him that while no one can predict the future, the only way to insure that you will decrease the odds of a major failure is through preventive maintenance. I am not suggesting that my approach was the best, in terms of speaking to people. I have known this customer since he was in grade school and perhaps I got away with more than most can.

Brilliant! Loved it. Thanks Gonzo, puts us all in the right Christmas Spirit!

Here's an article I found interesting, it's about the modern gas station celebrating 100 years. For many us, myself included, we grew up in the gas station business. http://blog.hemmings.com/index.php/2013/12/01/the-modern-gas-station-celebrates-its-100th-birthday/#.UpyoIhcsfqE.email

I agree with Frank. We too have a lunch room, which is used for lunch and for meetings, and in house training. Everyone is aware of the rules, and if there is any abuse, it should be brought up immediately. I do know that "hang out" areas can sometimes quickly form. Sometimes, it as if these guys think they are back in high school.

Yes, we like for an advisor to bring the customer thru the entire process, from write-up to car delivery. If for some reason, the advisor will not be there when the customer picks the car up, the advisor will schedule time on the phone and perform the car delivery on the phone. The advisor will then gather all the paper work and update the other advisors. You want a seamless continuous work flow, with the advisor taking care of the customer throughout the entire experience.

This is a tough topic. First of all , if someone is calling around for prices, they could be looking for the cheapest price. With this person, A BMW owner, she must know what kind of a car she has? People call for prices for two reasons, they don't know what else to ask, or they truly are looking for the cheapest price. If they are looking for the cheapest price, they may not be your customer (or future customer), unless you are a discount store. I instruct my service people to ask questions and avoid price, if at all possible. Thank them for the call and say, "How did you hear about us?", "Is this a car you plan on keeping for while?", "What is the car primarily used for?" How long have you owned the car?", "Do you rely on this car for work", And the biggest question..."Are you calling around for prices, or are you looking to schedule an appointment? If you find that price is the only concern, you may have a tough time bringing them in. I don't like playing games over the phone either. Some shops will give a bottom line price or starter price, to get them in and then upsell when they arrive. We usually invite first time callers to come down and meet us, we give them options on everything. We ask a ton of questions and hope for the best. The reason why you ask questions? Because no one else does. It sets you apart. Should you call back? It can't hurt...and you might learn something from it.

Oh, don't just "think" about it...please do!

What a perfect story for this time of the year. Thanks Gonzo for sharing it. These are he moments that transcends the material things in this world, the things no one can ever put a price on.

This has been a topic discussed before, but since we have so many new members, I would like to hear from shop owners to see how they handle bonuses for this time of the year. I know that many businesses, not just repair shops have reduced the amount of bonus, and some have cut it out. Due to recent tough recession. Do you give a bonus as a percentage of regular pay? Do you give a flat bonus based on years at the job? Do you give a bonus in gifts, or tool gift certificates? Do you give a bonus as part of a retirement contribution? Do you factor in performance, quality, comebacks, etc? Do you give a bonus at all? Any other thoughts with regard to bonus?

On December 7, 1941, the Japanese attacked Pearl Harbor. It will always be remembered as the "Day of Infamy"; words spoken by President Roosevelt during is declaration of war speech. More than 2,400 American troops died in the early hours of Dec. 7, after the Imperial Japanese Navy swarmed on Pearl Harbor in Oahu, Hawaii, hurtling the U.S. into the World War II. It's been 72 years since that attack, but as Americans we must never forget.

The phone is as valuable as any other tool in your shop. I know how tough it can be when the phone rings off the hook at times, but it must be managed. We just hired a part time receptionist to help with the phones. We also bought a phone system a few years back that will pick up the phone with a message after the 6th ring. We really don't like a computer automated person, but it's a lot better than not answering it.