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Do You Ask Customers for Referrals?


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  • 7 months later...

We offer free conventional oil change for every referral (or equivalent cost towards synthetic etc.). I have one customer who in three years has never paid for an oil change. Has been worth its weight in (black) gold for us! We have a great rapport with our customers and a rep as an honest shop with great prices. We do not do any advertising. The joke around here is we could never imagine what we do if we did advertise. We have more than we can handle most weeks and its all word of mouth. A counter guy at a local Auto Zone is a customer and here refers their customers here regularly as does a customer we have who works at Advance Auto.

Most times - networking doesn't cost a thing and if you have someone referring to you that is someone who is trusted and well liked - it just adds weight to their recommendation.

We have several instances where an entire extended family comes here and they just keep spreading the news! Also, have all the neighbors on one particular local street who all come here for work. Its pretty funny on a Saturday morning when they all show up for oil changes, etc. and it's like a block party in the office.

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  • 4 weeks later...

I made referral cards and put the customers name on the back of them. New customers get $20 off first visit and customer who referred them gets $20 off their next visit. Its been working pretty good so far.

I was wondering, do you actually require the cards be presented, or do you let it slide if a customer comes in without the card, but mentions it?

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I made referral cards and put the customers name on the back of them. New customers get $20 off first visit and customer who referred them gets $20 off their next visit. Its been working pretty good so far.

 

I was wondering, do you actually require the cards be presented, or do you let it slide if a customer comes in without the card, but mentions it?

Definitely let it slide IMO! What if the customer took a card but referred more then 1 person?

This is a good thing, not something to be strict about.

Maybe you could even say "We usually want the card to be presented, but we'll give you the discount anyways." You just keep looking better and better to the new customer.

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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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