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 Thriving in Today’s
Automotive Market
A Lesson from a Typewriter Company
If you’re like me, you probably got into
the business of auto repair because of
the passion you have for cars and the
desire to fix mechanical things. The
thrill of bringing back alive a sick
engine or transmission was unmatched by
any other career choice. So, eventually,
after mastering the art of automotive
mechanics you ventured out on your own
and opened up your own shop. And the
world was good… a least for a while.
Then something happened. Somewhere along
the way it seemed like someone changed
the rules. What happened to spark plug
wires? What happened to fuel filters?
What happened to distributor caps,
distributor rotors, and transmission
dipsticks? And just when we started to
make a lot of money on replacing timing
belts, the carmakers are starting to
take that away too!
What gives? 20 years ago the
independents dominated the auto repair
world. Now, every sector of automotive
repair wants a piece of the automotive
service pie. The new-car dealer was
never a threat to the independent. Now
many dealerships are competitively
priced and their level of service has
improved greatly. Years ago, Muffler
shops just replaced exhaust. Quick lubes
just changed oil. Transmission shops
just rebuilt transmissions. Well the
automotive business has changed and as
Bill Gates says; “change is inevitable”.
And to thrive we need to also change. We
can no longer conduct business the way
we once did.
Smith Corona, the premier typewriter
company, was once world-renowned. Smith
Corona had a world-class product,
world-class employees and dominated the
typewriter industry for almost 100
years. But yet in 1995, Smith Corona
filed for bankruptcy. So, how can a
world-class company with so much going
for it fail? It’s because Smith Corona
always viewed itself as a typewriter
company and could not make the
transition once the personal computer
industry came of age.
In April 1991, Smith-Corona CEO Lee
Thompson told Dealerscope Merchandising
that; his company was not abandoning the
typewriter or word processor markets.
“Computers are a logical extension of
our line," Thompson said, "not a
replacement for other products within
our line. We strongly believe in the
continuing need for the typewriter and
will maintain our lead position in the
market place."
Continuing need for the typewriter? Talk
about lack of vision. No one can know
for sure, but if Smith Corona embraced
change instead of holding on to the
past, could it have survived and compete
with other PC Companies? This question
will be debated for years to come. The
point is Smith Corona resisted change
and that was its fatal mistake.
So, how does this relate to the
automotive world? Well, our world has
changed too and we need to accept it.
Our business is no longer a repair
driven world dominated by gas stations
and repair shops. Cars today are more
reliable and don’t breakdown with
frequency as they once did. Many of the
repair and replacement components we
relied on to sustain our business are no
longer found under the hood. Another
fact, new car dealerships, quick lubes
and national chains are not going away.
Today, the auto business is a preventive
maintenance, diagnostic driven industry.
It is also an industry that is highly
scrutinized by the consumer. The
motoring public has choice. And, if your
facility is not offering outstanding and
convenient service at a competitive
price, you will not survive. If you are
waiting for those customers to roll up
to the door with worn ball joints and
blown shocks, you might as well close
the doors today. You need to be
proactive about business, not reactive
and complain that things just are not
like they used to be. It will never be
the way it used to be. That’s life and
that’s business.
The good news is that there is great
opportunity today. Change always brings
opportunity and opportunity brings
profit. The next few years will bring
turmoil to those auto service facilities
that resist change. But for those of you
who are innovative, who are creating
vehicle maintenance programs for your
customers and are getting into different
service areas: you will ride out the
storm. We all have a choice and very few
of us like change. I’m betting that if
you’re reading this article you have
already made the choice to embrace
change. By the way, I typed the first
draft of this article on my Smith
Corona.
Joe Marconi
Osceola Garage, New York
www.osceolagarage.com
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