Joe Marconi

Gonzo, it is uncanny how you are tuned into the minds of others. We were having this conversation the other day when a customer asked us to install a fuel saving device on his car. Talk about a '"sucker born every minute". Give me a break. But maybe what you say is true, if it makes them a believer and if they are happy, who are we to judge. Let me tell a true story about the power of the medicine man. Ten years ago my son got real sick with bronchitis. He was a star wrestler and he was scheduled to wrestler in a tournament the next day that college coaches would be looking at him. He was coughing and sweating so bad the night before I was afraid he would miss the tournament. At one point all I wanted was for him to sleep. I called him into the kitchen and told him, "Anthony, I am going to give you this pill. It's really powerful and it will knock you out so you can sleep." As I was handing him the pill, I stopped and said, "Anthony, this pill is too powerful, let me cut it in half". I cut the pill in half and gave it to him. He went into bed, and slept like a baby. He went on to win the tournament and got offers from top schools. The pill I gave him? Half an Advil.

Let me make one thing clear. If we reduce what we sell to commodities, we will find it very hard to compete. Let me explain, for the most part if you need a gallon of milk, or a dozen eggs, we really don't care what brand we buy. A gallon of milk is a gallon of milk. There is very little to differentiate it from other brands (for the most part). Now, tire as just a tire, you are right in one respect. But is it???? If you sell "only" the tire, you are selling a commodity. And that means you better be the best price in town or near the best price. But if you package in value added benefits, then you begin to remove price from the equation. This strategy works on your better clientele. The segment of consumer market that only look for price...well...all I can say is that I rather sell value, not a commodity Makes sense? Let me know your thoughts.

The Internet Has Changed the Way We Do Business The other day, Mike, one of my service advisors, gave a customer a price on tires. She then reached into her pocketbook, pulled out her Ipad, and said, “Give me a minute”. After a few minutes of surfing, she said to Mike, “Well, the price you gave me is ok; there is one tire shop in Danbury that has those same tires for $15.00 less per tire. Can you match the price?” Sound familiar? You bet. We have all been down this road, and that road has no end to it. Look at your new car dealers. The days of the traditional car sales are over. Many new car dealers no longer pay commissions to sales people. Why? The margins have shrunk due to competing dealers giving prices online, and so many car dealers competing for a share of the same pie. While, I don’t think the internet will have the same impact on our industry, it has impacted us to a degree. And we must learn to deal with, not fight it. You need to bring value to your customers. Don’t enter the price game, you will lose. You need to be competitive, but you need to be profitable too. Making a sale for the sake of a sale, without turning a profit is financial suicide. Promote benefits, not price. Create your unique value proposition: Ask yourself, "Why the customer should buy from you." Let those shops that don’t understand this engage in a price war. As they fail, it will only make us stronger. How did Mike handle the question about “Matching the price?” He simply said, “Well Miss Smith, let’s review some of the benefits. Our tires come with a road hazard warranty, road side assistance, lifetime tire rotation and flats fixed free. Plus, Danbury is 45 minutes away, if you ever have a problem with the tires, do you really want to travel to 40 minutes to shop where they don’t know who you are? She looked down at her Ipad, looked back up at Mike, and said, “Ok, makes sense, put the tires on."

We never close either. We have too many customer that need service that day, plus all the college students are home for the weekend. Different parts of the country are different. Ask business owners in the area about traffic that day, speak to other shops too in your area. It's a business decision, but not the end of the world. I know some shops work longer hours the three days prior to Thanksgiving, and inform customer they will be closed the Friday after. This is why you get paid the big bucks, to make this tough decisions. Good luck and most of all HAPPY THANKSGIVING!

I remember the old days, before electronic information. A check engine light diag in the the 80s took a lenghtly process and knowledge in computer technology. Even back then, it was pretty intense, not like to today, but it tough in its own right. To call those shop owners cry babies becuase we don't like other diluting the industry is something I cannot agree with. I still believe in intergrity and ethics and will not cross the line and do something that is not right. Share a login among shops? Why not the entire industry share the same login for that matter? It does not make sense. Indentifix, IATN, Mitchell, AllData and all the rest of the informational sites are well worth the money. Each shop needs to support these companies. In addtion, shops need to understand how to MAKE money by charging what they need to charge, then by trying to save a few bucks by doing something that just is not right. For what it's worth to everyone, this is my opinion. Hopefully other around the country agree. Joe Marconi ASO Co Founder

It's well known that many of the review online are bogus. Many companies hire people to write reviews for them. I think in time, reviews will not have the impact they once had. I remember, years back if I did not get a perfect score, I could not sleep at night. Now, it does not bother me nearly as much. I read reviews of my favorite resturants and see reviews all over the map. Everyone will get a bad review from time to time. I don't like a site that cannot and will not insure the source is credible or not. I do agree that we should all do the right thing, maintain quality, keep checking the reviews and contact our customers as a follow up. We need to do all we can to insure that our customers are experiencing the very best.

Again Gonzo, right on target....Never waste beer!

With rare exception, we do not install customer supplied parts. During the recession we saw an increase in people coming to us with their own parts and we tried to accommodate them, charged more labor, but in the end it turned ugly, for the most part. I can remember one guy insisted that we do not diagnose the car and install his mass air sensor, which he read on the internet and was confirmed by the parts store that pulled a mass air code. After the part did not solve his problem it tuned into an argument that WE should have known better. We do make exceptions. The other day a customer came to us with a front differential that he thought he could do himself. He was real nice and did not give us a hard time. In fact, he was embarrassed that he brought us the part. We did the job and it turned out nice. The bottom line, we make money on labor and parts. Take away the part profit, take away too much of what we need to survive.

We do. Every service advisor must understand the numbers of the business. We never make sales and money the top priority, we always make sure we are taking care of the customer and delivering world-class service. That, in itself, helps sales by the way. But the fact is a business must turn a profit and the advisors are a key component to that. We track the service advisor sales, ARO, part GP and labor GP, and we also track their car counts. We also track how effective there are at selling. This helps the advisor see areas that needs improvements and areas of strength. It also gives the advisor an opportunity to feel good when he or she had a great week. One more thing, we also factor customer survey scores into the equation.

Reality? Man, come down to my shop, hide a few cameras and find out what reality really is. Gonzo, you are right on target. All these shows are scripted and directed. That's a fact. Some are fun to watch, others I end up throwing my empty beer can at the TV. Here's what's real...you can't beat the reality that we go thru, each and every day!

Great additions Wes! Thanks!

I was instructed to get it going ASAP. New York anticipates issues if all the shops try to start on Dec 1. We are starting tomorrow. We shall see....

Great perspective Gonzo. I feel the same way. When an old car comes into the shop, such as 65 Chevy or Buick, I tell the guys, "Don't touch it, leave that one for me". It not only brings me back to my youth when I first started, but it so refreshing at times to work on something that was build in the era "B.C." Before Computers (or before Catalytic converters). Thanks Gonzo for the memories. Always look forward to Saturdays for your articles!

Six tips to increase sales this winter! Many shops in the northern part of the country go through a slow sales period during the winter months. And while there are no ways to get back those “snow days”, when business literarily shuts down, here are a few tips we can do to maximize sales this winter: Make sure with each vehicle visit, you identify any needed service due, services never done and services due next. Speak with the customer and plan out all recommended work during the next few month Flood your customers with service reminders about any work needed in the near future. Stagger the service reminders during the winter months. And don’t forget, speak to the customers at car delivery about the service reminders they will receive. This will increase your return rate. Send email winter tips to your customers starting now and throughout the winter months. Keep your shop “Top Of Mind”, in the customer’s brain. Not collecting email addresses? Start today! Consider making phone calls during the winter to those customers that were sent service reminders, but have not responded to the reminder. Consider pushing off any long term projects, such as classic car work. Most owners of classic and antique cars do not take them out in the winter. This could be used as fill in time during those slow periods this winter. Make sure you book the next appointment at car delivery. Every car that you service today will need another LOF service in the near future. The question is; will the customer come back to you? Give them a reason, book the next appointment. If you want to add any of your tips, please do so!

By production hours and comebacks. We try to spread out the work to be fair. What we don't do is to make "selling" the motivator. We make sure we maintain our culture and philosophy of providing outstanding customer service. We do promote the culture of total car care, which means with every car visit, we make sure a customer's car is inspected and serviced the best way we know how. The motivator has to be a great job done and taking care of the customer. Lastly, we also promote team spirit.

This is interesting information. Running a repair shop today is so vastly different that back when I started. I see your points, both good and bad. I think the key is, if you are an independent, is to have a plan and know the "mechanics of business". And, getting involved with a franchise that does not have a vested interested in the success of the franchisee, could be the kiss of death?

Thanks for the info. We are setting up our new machine Monday. From what I am hearing, shops are on the phone half the day, at least, with issues and problems. So, I too advise all shops in New York that are included in the State Inspection program, to get your equipment up and running ASAP.

We have been discussing the same idea at my shop. I too would appreciate any feedback or suggestions from anyone.

It' can be a struggle with customers that may not know all the services we provide. It takes a Total Car Care approach and letting people know what we do. For example,let's say we do windshield replacements, we should be checking every windshield every day. Sometimes we wait for the customer to ask, but they may not ask and assume we do not offer that service. A more proactive approach is perhaps the best wat to go.

Wes, that would be great. When I expanded and built another facility I contacted many franchise companies to gain information. I also visited auto franchise stores to get an idea of how those model differs from independendts like myself. If you could give us information that would be great. I think we can all learn and share knowledgde.

Working two positions in the shop is like playing two positions on a ball field. It's hard to be great at both. My fear is that your technical expertise may interfere with the service advisor role. I am not saying this is not a good opportunity, it can be. I am saying that techs have a very difficult time making the transition onto the service counter. We took an ASE master tech and moved him into the service dept. He excelled and now he managers the company. So, it can be done. Learn all you can about sales, building relationships, the key numbers of the business and about business in general. The most difficult part, at least for me....putting my tools down.

A recent article in the Wall Street Journal reports that car sales, especially for the Big Three, are up due to gas the lower gas prices. I wonder how this will affect our business. Light trucks and SUV models saw a significant increase. However, the car makers saw an increase across the board. There is no doubt that gas prices play an important role in the economy and consumer confidence. Let’s see if that spills over into our shops.

I was wondering how many of you are franchise owners and can you tell us about your experience being part of a franchise system. I think it would be interesting to independents to see the differences in a franchise, as opposed to creating and developing your own company. Thanks in advance!

Hire right, train right, then get out the way In his book, Good to Great, Jim Collins discusses the attributes of what makes a company not just good, but great. One of those attributes is finding the right people. Here’s a quote from the book. “They (a company) start by getting the right people on the bus, the wrong people off the bus, and the right people in the right seats.” I learned the hard way that having the wrong people can severely hurt the business. To be successful, we need to hire the right people, train those people and then get out of their way and let them do their job. Ask yourself: Do you have the right people? If you don’t, you need to make changes. If you do, make sure you do all you can to train and empower these people to perform at their best.

Great book! And great information, Thanks for this post Wes. Again, this shows the power of networking and the power of ASO.