Joe Marconi

I know of a large shop in New York that has two people torque the wheels; the tech on the job and the foreman does it again. I guess this is a bigger problem than most of would have considered. And I do agree, this was not a problem years back, back then you had big heavy steel wheels and you just socked home the lug nuts with your air gun.

Source: A Priceless Chicken Salad Sandwich

A Priceless Chicken Salad Sandwich One of our favorite customers came in the other day with a leak from the power steering. She recently moved two towns over, a distance of about 15 miles, but still comes to us faithfully for all the work on her car. She needed a power steering pressure hose. No one locally had the hose, and it would take about 4 hours to get one from the nearest warehouse. We offered to take her home, but she insisted that she would wait, saying that its just too far. Mike, one of my service advisors, asked me if we could buy her a sandwich for lunch. I told him, Absolutely. I walked into the waiting room while she was finishing up her sandwich and bottled water, and she looked at me and I could see a tear in eye. She said, "everyone here is just so nice, you guys are too much." You see, Mike didnt ask her if she wanted anything for lunch, he just went out and got it. It was chicken salad on a bagel. The look on her face was priceless. And I know we all do these things from time to time. The next time someone asks me why I think independent shops are successful; I will tell them its because of a chicken salad sandwich!

We have a strict dress code in my shop with regard to uniforms and grooming. We supplies uniforms that are cleaned by a service, and we also issue T shirts in the summer and sweat shirts in the winter, along with a jacket. The T shirts and sweat shirts are theirs to keep and we give them new ones each year. For years this has worked fine. Now, it seems that some of the younger techs lose their uniforms. They come in wearing their own shirts and jackets. And it is real annoying. We are now in the process of making everyone change at work and keeping all the uniforms in their lockers. We also issued a memo to all explaining company policy. We give them an inventory count and explain why this is important. Is this an industry issue? If so, how do you deal with this? I dont know how everyone feels about this, but I think it makes a difference, from the customers perspective, if everyone is in uniform and well-groomed.

That is a good point, and again I apologize for the confusion. Those that know me, know that I try to help, not confuse. Let's go over it again: A customer comes in with a check engine light and wants to know what it is and how much it will be. Before, we would say that the initial scan is $xx.xx. That would open up a lot of conversation, way too much, even before we got started on the job. And some first time customers would leave, and we would get nothing. Not so much for regular customers, I must admit. So, now, we say. We really need to obtain some information, before we even talk about prices and repairs. We then will access the codes and give a visual under hood inspection. A road test is only for customers that can't explain a noise or rattle, not for a check engine light. Once the code or codes are pulled we then speak to the customer and inform them what we now have a direction. We sell the appropriate tests. I am telling you, this has proven to eliminate 99% of the push back we get for diagnostic testing. How many times have we tried to get diag labor prior and danced around with the customer and found that the gas cap was loose? Or the customer replaced his own air filter on a Toyota and left the vacuum hose off. My strategy gives a little up front, and gets a lot in return. The initial scan never finds the problem, it only gives us a starting point to speak with the customer. We are extremely successful selling diag labor from this starting point. Now, now if customer comes in with a drive train noise and after a road test we find the wheel is falling off, well that is different. We will adjust any time, for something that obvious. I have to tell you, we went down this road on the forums a few years back on this very subject and it led to the same questions and confusion. I really don't know why and I wish I could explain myself better. To sum up, only give a little time in the beginning to get a direction, then sell the appropriate testing. The bigger issue I see is: Shops not charging at all, wrapping the diag into the repair or removing the diag charges if the customer agrees to the repair. It is for these reasons that I changed my strategy.

I think we can all agree that many motorists put off preventive maintenance, especially the last few years during the recession. But what about safety-related repairs? A recent study taken by ForeverCar.com (an extended warranty provider), found that people were more interested in repairs to their air conditioner, DVD players, GPS and sound systems. This is a little surprise to me. We do a fair amount of extended warranty, and found that if the customer thinks something is covered, they want to take advantage of the coverage, no matter what the repair is. I do agree that it is easier to sell air conditioner repairs on a hot day than tires or brakes. What are you seeing?

I really think I am not explaining myself correctly, I am sorry for that. We do sell diag testing and not giving anything away. But we do that after we have a direction. We are not giving up any money. In fact our diag fees are the highest around, more than the dealer. Our approach is different, that's all. We all have different ways at arriving at the same place.

Gonzo, very interesting; the things we take for granted are not so common in other parts of the world.

Sometimes it takes a trip to a different part of the world to bounce us back to reality. We all know the best things in life are things you could never put a price on. Great article and great to have you back.

I guess I caused a lttle confusion with my testing diag policy? Let me explain. If a customer comes to us with a check engine light, one of the first things asked is, "How much will it cost to fix" or "How much to diagnose it". Years back I would tell the customer to read the codes and diagnose the problem is $xx.xx. That would lead us down a path of no return, "How Much, just to see what's wrong? Will you take the diag fee off the repair? Other shops don't charge diagnostic charges!" On and On and on. Soooo, now when the customer comes in with a check check engine light, here is the process: Educate the customer about the check engine light Inform the customer that until we access the on board computer, we really do not have a direction We inform the customer to access the codes, a road test (if possible) and visual inspection will be performed at no charge After the intial checks, we will then discuss what testing is needed to start the diagnostic process We then sell the tests after the intial no charge checks Perform the tests that were authorized We get back to the customer after the tests are done We sell the repair End of process There are other variables, such as more testing needed, intermitent problems, etc. But this process has been a gold mine for us. We give a little in the beginning, and we end up selling the needed tests, with very little push back, if any, from customers.

This post in a follow up from a post I made a few weeks ago directed to part companies about the part quality issues we are experiencing in our industry. As I stated in the post, this is an industry problem and we cannot put blame on one part supplier. The purpose of that post was to attract attention from part companies. I have received calls from reps from a few part companies. They explained their view on the part quality issue. CARQUEST and Cardone came forward to take the time to speak with me. And to be fair and balanced, I think that we need to address the entire issue. There are always two sides to any situation. Although there are many shop owners that want to sell quality and care about reputation, there are shops that only care about price. I dont really know how this started, but for years now we have entered into this race to bottom with respect to price and is part of the blame the shop owners that put too much emphasis on price alone? And to make matters worse, this reduction in prices has eroded the profit margins of part companies, suppliers and shops too. In the end, we all suffer. So the question is; do we really want cheaper part from CARQUEST, Advance, NAPA, OReillys, AutoZone and other part companies, knowing that low prices may also affect the quality of the parts we install in our customers and familys cars? We are now in a situation where there are no real solutions. Too much of what we sell comes from countries where labor is cheap and accountability hard to monitor. I dont know have all the answers, but I do know that putting all blame and responsibility on the backs of the part companies is not the answer. Perhaps we all need to take a long hard look in the mirror.

Yes, we do charge a diagnostic testing fee. We must. We knew from the sound of the engine and the way that is was running that it was an engine related problem. We sold a compression test, leak down test and once we determined the cylinder, we went back to the customer to ask for time to remove the valve cover. The customer was actually greatfull at that point, for not just doing a decarb. Many shops fear charging for diag testing. If explained correctly you will not have the a problem. We always give the customer a visual inspection and a road test, with pulling any codes and a consultation before we start, for no charge. But, after that we sell Diagnostic Tests...not time...we don't sell time. No likes to buy time. You go to the doctor with a pain in your shoulder and the doctor orders an X-ray. You pay for the X-ray, not time. Then, as with a doctor, we disucss the results of the test and then the repair to get the car fixed. Make sense? Oh, the only fear I have with diag testing is doing work for the wrong customer. Again, when explained correctly and offer them a visual inspection and consultation first at no charge, they are fine. The ones that I cannot reach...well...Starbucks does not sell everyone coffee...does it?

I appreciate all the posts from everyone, and keep them coming. Again, I want to emphasize, we should NOT make this an opportunity to bash any aftermarket parts company. Our part suppliers do a great job everyday servicing us and for the most part help us thrive in this very tough marketplace. I speak for many shop owners when I say we fear that the quality of parts is a big issue today. This dialogue is an effort to hopefully reach the right people and maybe we can start to solve this problem. I know it won't be easy, but someone must start. This is an industry issue. And as I stated before, if the consumer perceives that aftermarket parts are not the same quality as OE, we are headed for trouble. The dealers will pounce on that perception and use that perception against us. Lastly, we the shop owners need to be honest with ourselves too. Is part of the problem the fact that too often we ask for lower prices? Has this gotten out of hand, and are we partly to blame? If we are ever to solve this problem, we need to ask the tough questions for all invloved.

I agree Frank (xrac). We just had a customer reffered to us by two other shops for a decarb service. He wanted a price for a decarb induction service and fuel system cleaning. He actually mentioned the other shops. We were recommended because we use BG products. We refused to give him a price until we saw the car. Make a long story short....he had a broken valve spring! After a few more questions, the reason he was calling around for a decarb and fuel service is beacuse he READ ON THE INTERNET THAT HIS CAR MODEL HAD CARBON ISSUES!

I hope not. But I can't help believing that if a shop owner is going to engage in bidding, it stands to reason that in order to win the bid, he will price the job cheaper than normally would. The other thing I am trying to get my head around is the fact that consumers upload photos and give other information to the site. The shop then has to make a decision based and give a price on partial information. It's sometimes hard when the car is in front of you, let alone thru photos and communications from the consumer.

From what I understand, Repair Jungle charges the shop a fee that gets the bid. But I agree with you. This opens up the door for price shoppers to choose the cheapest shop. Is that how we want the consumer to judge us?

Our strategy is similar. We calculate all the behind the scene expenses: shop rages, cleaners, wire ties and other misc. expenses and amortize those costs into all the jobs we do per year. We then know how much more per job is needed to cover those costs, plus a little more. The customer only sees parts, labor and tax.

The average age of passenger cars in the U.S. is increasing, according to the marketing firm Polk. Both passenger cars and lights trucks have been increasing steadily since 2002. The average age of passengers now stands at 11.4 years and 11.3 years for light trucks. This trend is expected to continue, which should open up opportunity for aftermarket repair shops, especially as the economy improves.

Sorry, I don't know much about that system. Hopefully there are members that do.

That is Gonzo! Hey Brad Pitt, watch out!

Internet auto repair bidding is here. There’s a new online service called Repair Jungle, recently launched this past January. Its market area at the present time is Washington D.C., Virginia and Maryland. Repair Jungle is a web based service that allows shops to compete for jobs through a bidding Process. Now, are you ready for this? Consumers upload photos, describe the problem, give other vehicle information and local shops can bid for the job. Is it me or does this sound a little over the top? Fred Yu, the founder of Repair Jungle says, “The goal is drive down prices and drive up customer satisfaction by creating a competitive market place for automotive repair.” There are 70 repair shops signed up and the service reaches 1,000 customers, thus far. Please reread Fred Yu’s statement, “…drive down prices and drive up customer satisfaction…” Hey Fred, “You can’t have both, please choose one of the two.” My first fear; we are headed in the wrong direction. We are not discounters, nor do we market our shops solely on price. What type of customer does Repair Jungle target? Yes, you guessed it, the price shopper. And are shops so desperate that they will bid for a job, just to get traffic to their bays? If shops engage in this form of marketing they are telling the consumer: Please judge me on price alone. Not quality, not service, not the culture of my company, but on price alone. Bidding may work for commodities, but what we do is hardly a commodity. My worst fear? More and more shops will sign up for this. Please, tell me your thoughts on this one!

The last thing I want to do is to support the new car dealerships and give up on the aftermarket companies. In all fairness, Cardone reps have called me with these issues and they invited me to their next tech council meeting. They know they have problems and do not want to loose the confidence of the independent repair shops. I don't know how this race to bottom with respect to pricing started. Maybe is our fault, maybe not. I really don't know. But with low prices came low quality. I have been around the block more than I care to share, and I can tell you a rotor in 1990 was not the same as it is today. And it cost anywhere from 50 to 90 bucks, or more. Now we are getting rotors that are made in China, shipped in containers across the ocean and it cost 17 dollars? Really? This is a good thing? And most shops wonder why their gross profit dollars is eroding more and more. We made more gross profit dollars years ago then today. I am talking GP Dollars here. Not percentages. The percentage you are making is the same, but I pay my bills with dollars not percentages. We all need to get back to quality. I hope this country wakes up. I don't want to bash other countries like China, but it is clear that too much of what they produce is inferior. And we are putting these parts on our customer cars, our family cars and friend's cars. It has got to stop.

Source: Cardone Part Failures: Rack and Pinions

As long as the car is being towed to me, I don't ask for money up front. I never did in all the years in business and never had a problem. I create a line item for towing on the invoice. All the tow companies in my area have a wholesale rate and a retail rate. We make a few bucks on a tow, not much. But, it's not a profit center for me. A typical $80.00 to me, will cost the customer $100.00. I do ask, what the retail price is, so that we are line with what the tow would be to the customer.

Jim, I started this post because I want the right people to read it. I am not looking to bash any part company. But we need to get back to quality. I am doing all I can to bring these issues to the aftermarket. And I will not give up. Our future is not buying from the dealerships or OE, but our future also rests on the quality of our service and repairs. Thanks to all, keep posting!