I have never met a shop owner who didn’t have the desire to be successful. People go into business with dreams of changing the world and to make a positive influence in the industry to which they have dedicated their lives. They’re devoted, sacrifice time away from family and, at times, drive themselves to exhaustion—all in an effort to become the best they can be and make their mark. However, all too often, something happens along the way and the business begins to suffer.

While shops owners may start their business with passion and vision, they tend to create a world in which everything revolves around them. When the business is small, the owner pays careful attention to every detail. Every car is repaired with the highest degree of excellence. Quality time is spent with each customer and a bond is created, which gets stronger and stronger as the years pass.

As the business begins to grow, the owner realizes that the amount of work to be accomplished each day is overwhelming and hires more employees. Everyone is working, but not necessarily with the same culture the owner has. They do their job, but they are not really aligned with the goals and vision of the owner. The shop owner continues to work on his or her skills, learning everything that is needed to run a successful business. After a number of years, the shop owner becomes skilled at running a shop and proficient in nearly every aspect of business, except one: the area of people. And that is when the downward slide begins.

The owner recognizes that, in spite of the dedication to excellence, things are not right. The shop owner has established the goals of the company and put everything in place. Everything is attainable. But it’s not working. Frustration sets in, and it’s not long before the owner begins to complain about the lack of performance and drive from the employees, which is the perceived root of the problem.

Well, the root of the problem is the owner. We all know that running a business is not a walk in the park, but if your business is struggling, you, personally, are struggling. If your people are not performing the way they should, then you are not performing the way you should. Granted, there are employees that are a problem, and if that’s the case, they need to go. But even superstar employees will turn sour under poor leadership.

There are endless issues and problems you encounter each and every day, and some of those problems are out of your control. But, excluding a cataclysmic event, you can trace most of your problems back to you. You are the shop owner, you are the leader. The strength of your business begins and ends with you. Given two equally talented ball teams, the difference between winning and losing is usually leadership.

Employees need to know you care about them. The people you employ have vision and goals, too. Not the same as yours, but real nonetheless. One of your jobs, as leader, is to align their goals with yours.

We throw this leadership term around a lot these days, and for good reason. It’s the most powerful skill you have in terms of getting the results for which you are looking. The horrible truth is there are too many bosses and not enough leaders. Anyone can be a boss. Bosses order people around. And people will follow, but not for the long term. A leader motivates others by understanding what drives the individual. A leader gives credit to others, never seeking gain at the expense of others.

Next time you walk through your shop, pay attention to the mood of your employees. Are your employees laughing and talking to each other? You know, having a little fun at work. Do your employees look to engage in conversation with you, or are their heads buried under the hood of a car as you pass them by? Even worse, does everyone stop talking when you are around? These are signs that your employees are not engaged, which means they are not aligned with the goals and vision of the business, and you are not aligned with theirs.

A leader finds out what’s important to others, and works to help them achieve it. Aligning the goals of the individual with the goals of the company will achieve great things. When employees are respected as people, they become motivated and perform at their best; not because they are told to, but because they want to. This is the highest form of team spirit and becomes your driving force toward success.

This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2018

Roughly a month ago, I went to lunch with a good friend of mine. He works for the YMCA, so we discussed what the YMCA does to attract new members. A few years ago, my friend and his team realized that while they were good at attracting new members each year, they had little to no retention. It was a constant battle to bring in new members to fill the void of lost members.

The YMCA realized that it’s easier and less expensive to keep existing members, than to go out and find new ones. They created a new marketing strategy with a focus on keeping existing members. The plan was simple: create an amazing experience for their members and offer new programs to these existing members. The plan worked. Member retention improved. What worked for the YMCA will also work for your business.

Before you spend a dime on advertising, you need to understand one crucial component of your business; the customer experience. Without a great customer experience that gives your existing customers a compelling reason to return, you’re simply wasting your money on advertising.

Advertising is often aimed at new-customer acquisition. There is nothing wrong with this. Every business loses clientele each year for a number of reasons, and we need to get our name out to our community about who we are and what we do in order to attract new consumers. But, to rely on new customer acquisition alone without a plan to keep existing customers is not a strategy for long-term, sustained growth.

Every marketing plan starts with looking at your entire operation and how it relates to the customer experience. Are you doing all you can to create an amazing experience that builds solid relationships? If not, you will be in the same position the YMCA was: using advertising to fill the void of lost customers.

While there are many aspects of the customer experience, let’s focus today on the four essential areas: The customer write-up, the sales process, the car delivery and the follow-up. Each of these touch points must be executed with one thing in mind: create an experience so amazing that the customer will have a compelling reason to return your shop again.

Customer write-up starts the process. It’s where you begin the relationship or continue to preserve it. It must be performed as if you are welcoming a guest into your home. The sales process must communicate value and benefits to the customer. This gives the customer peace of mind, reduces anxiety and buyer’s remorse. The car delivery is your chance to leave a lasting positive impression of you and your company. It should not be a transaction, but instead the opportunity to resell the job, you and your company. The car delivery should not be rushed. Take the time to review the invoice, ask the customer if they have any questions. Let every customer know how important they are and how much you value his or her confidence and trust in you and your company. The follow-up continues the customer experience. This is where you reach out to the customer with a phone call, email, or thank-you card. It helps with customer retention by making another positive impression in the mind of the customer.

Getting back to car delivery: Make sure you review all future service recommendations and let the customer know that they will receive a service reminder. But don’t rely on a postcard or email alone to bring back customers. Think about this: If you had a bad experience at a restaurant, no offer or ad is going to get you back there—only an amazing experience will. The same holds true for your business.

By the way, an amazing customer experience is created by the people in your company. Sure, you need to have a clean, well kept facility with nice amenities. But it’s the people in your company that make the difference. Billion dollar stadiums don’t win championships—it’s the quality of the players on the field that win championships. Everyone in your company is part of your marketing plan. A simple smile and hello from a technician when a customer walks past the bays can do more for your business than any ad can.

Let me leave you with this thought: Customers will not remember the mass airflow sensor you installed or the exhaust leak you repaired. But they will remember their experience. A positive experience is lasting in the mind of the consumer. It’s the most powerful marketing tool you have—and it’s virtually free.

This story was originally published by Joe Marconi in Ratchet+Wrench on September 1st, 2018

We all have our favorite customers. You know who there are. They’re the ones that throw their keys on the service counter in the morning and say, “Do what you need to do and I’ll see you at 5 p.m.” They never question your price, they trust you and they keep coming back. But does that person define your true profile customer? The answer is probably yes. But it’s not the only criteria. It’s a little more complicated than that.

Defining your true profile customer starts with you. It starts with who you are, why you are in business and the culture of your company. By the way, determining your true profile customer has nothing to do with excluding certain people due to their income level. The young 23-year-old college graduate who sets aside part of her paycheck to shop at Whole Foods does so because she believes in the company and for what they stand. It’s not about what she “supposedly” can or cannot afford. She is Whole Foods’ profile customer because she aligns herself with that brand. And Whole Foods welcomes her with open arms.

Many of my profile customers endured tough economic times during the Great Recession of 2008. They lost their ability to pay for some of the things they previously could afford. What they didn’t lose was their loyalty to my company. So, what did we do? We helped them through that difficult time. We helped them manage their car care needs better, offering services that would save on fuel, reduce repair costs, and reduce breakdowns. We showed them how to squeeze every mile out of their tires and brakes. We took care of them and we still do to this day. We consider them family and we don’t turn our backs on family. One thing we didn’t do, and will never do, is compromise on price to get a job. That would not be fair to all my customers, my employees or the company.

With regard to pricing your services and repairs, it’s a delicate balance between being profitable and competitive. But I don’t know of any shop that prefers a customer walk away or sends someone to another shop because he or she cannot afford a particular price. A smart service advisor will give options, prioritize the work needed, and offer finance options.

If you’re a startup company, your doors are wide open to everyone. You need customers and car counts, and you need them right away. But as your business matures, you begin to realize that not everyone is your customer. And there’s nothing wrong with this realization. As you build your customer base, you begin to see that there are customers that respect the work you do, align themselves with your culture and appreciate what you do for them and for the community. They become your profile customers.

Let’s say you sponsor a youth baseball team in your area, help out at community events and involved with local fundraisers. You will become known as the business person that cares about the community and children. That’s making your business stand out among the rest. As you define who you are, you also attract those that want to do business with you and support your brand.

While I do recommend treating everyone the same, I don’t recommend trying to be everything to everyone. That’s not a sound marketing strategy—that’s a recipe for failure. Defining your customer and targeting your market does not isolate consumers. It actually increases market share. Here’s an important fact: In your geographical area, automotive shops basically do the same thing; they repair and service automobiles. So, how is a consumer going to choose you over another? You need to stand out. You need to be different. You need to build a brand culture and establish a marketing position that will make people take notice. By the way, every successful company, large and small, understands its true profile customer and creates a marketing plan on attracting them.

One last thing: When you build a business around your culture, you put the focus on your brand and the value you provide. This strategy is one of your pathways to success. When you combine value with culture, you will have an enduring and profitable company.

If you want to build a great company, ask yourself these questions: Why are you in business? What’s your life’s purpose? Your culture? Build a marketing strategy and a brand message around the answers to these questions. Not all people will take notice, but your profile customers will. 

This story was originally published by Joe Marconi in Ratchet+Wrench on August 3, 2018

As a young tech, there wasn’t anything I couldn’t do. I diagnosed every car with the accuracy and skill of a Greek god. My efficiency week after week was over 150 percent, and with no comebacks. As a shop owner, I sold every job, and at a profit. Each new day was better than the day before. Boy, when I look back, I was amazing. Those were days.

OK, OK, perhaps I am stretching the truth a bit. The fact is my past was not a smoothly paved road to success, but rather an obstacle course riddled with emotional and financial potholes, with more ups and downs than the biggest rollercoaster. Was it amazing? Oh, yes. Amazing because of all the mistakes I made along the way.

As the years have piled up in my life, I often find myself thinking back to the “old days” and judge people by how “perfect” I thought I was back then. Oh, don’t get me wrong, I was a good technician and somehow evolved into an accomplished businessman. But was I really as good as I remember?

I was outside the bays talking with my manager when Nick, one of my techs, began his road test on a Chevy Tahoe. As he passed us I could hear that unique “squeaky” sound a seized, worn out u-joint makes. I yelled to him, “Hey, check the u-joints.” He nodded his head and drove off.

About 30 minutes later, I walked over to Nick and asked him what he found on his multipoint inspection. He told me that the wiper blades were torn, there’s a little play in the right side outer tie road and he recommends a four-wheel balance with a wheel alignment. I asked him, “What about the u-joints?” Nick replied, “They’re fine; nice and tight.”

I could feel the tension begin to rise when I continued with, “Nick, I asked you to check the u-joints because I could hear that something was wrong. How did you check the u-joints? Do you know how to check u-joints?” Nick was visibly upset, so I suggested another road test—this time with me.

During the road test, I told Nick to roll down the windows and listen. I said, “Do you hear that squeaky sound? That’s a seized u-joint.” Nick listened closely and then said, “I never heard that noise before.” To myself, I said, “You must be kidding me! How in the world can this tech not know it’s a seized u-joint?” But, thankfully I paused, and replied with, “Nick, how old are you? He responded proudly, “Twenty-one, boss.”

Nick is a recent graduate of a well known tech school. He comes to work on time, works hard, and learns every day. His production improves each month. He has a lot of raw talent and a great attitude. At 21, how in the world could he know what I know at 63?

I often forget how young some of my employees are. I also need to remember that people will make mistakes and they need the time to hone their skills through years of experience. They don’t have the gray hair of knowledge that often comes with decades of experience.

Allowing people to grow will mean making mistakes. A tech will make the wrong diagnosis. A service advisor will lose a sale or forget to sell the tire rotation. But, did you or I diagnosis every car correctly? Did we make every sale? Were we absolutely perfect in everything we did? Of course not. So let’s be a little more understanding. I am not suggesting we settle for mediocrity. People need to strive for excellence. But even the best home run hitter will strike out at times.

As business owners, especially those from my generation, it’s our job to pass the baton, to teach others, to be a mentor and a coach. Don’t be too judgmental. If we are honest with ourselves when we look back on our lives, we will see triumphs mixed with a lot tough days.

When you feel yourself losing your temper or getting upset over the mistakes or lack of knowledge from one of your employees, just think back and view your own past. Don’t look back with a skewed memory of your greatness, but with an honest recollection of your struggles and mistakes. And you never know, you just might help others avoid some of the mistakes you made.

Oh, by the way, my approach with the way I handled the situation with Nick and the seized u-joint? Another mistake on my part. So even at 63, I am still making mistakes. Kind of humbling, right?

This story was originally published by Joe Marconi in Ratchet+Wrench on July 6, 2018

The future had little meaning to me my first few years in business. The only future I cared about back in the early 1980s was the end of each day. I was too entrenched in the day to day operations to be concerned or aware of anything else. My thinking today? The future is everything.

I have been in the auto industry nearly 40 years, I can truly say that I am proud of the job we do as independent shop owners. We keep America rolling. We work tirelessly to serve and satisfy our customers. Oh, we complain at times, but in the end we get the job done. We are aftermarket shop owners; something to be proud of, a badge of honor. But, we cannot rest on our past accomplishments; we will need unity and commitment if we are to thrive in the future.

As an industry we will be faced with many challenges. The world is quickly changing before our eyes. Electronics will continue to dominate all new automotive-related developments. Driverless cars, telematics, infotainment and collision avoidance systems are just the tip of the iceberg. But there are other challenges to contend with as well.

We all know how the new car dealerships have changed their strategies. They want a bigger share of automotive repairs and maintenance. Dealerships still need and want to sell cars, but they realize that their market share for new car sales is much less now than it once was. They need to increase revenue from the sale of parts and service. They also know that future car sales are largely made in the service department, not in the sales department. Dealerships want to retain a customer in the service department from the time of the sale of the new car to past the warranty period. That will greatly increase the odds that the customer will buy another car from the same dealership. New car dealers will be a major competitor for the aftermarket repair shops. In many areas around the country, it’s already happening.

Telematics is another issue. Malcolm Sissmore, telematics sales director for Delphi Products and Service Solutions, stated at a recent seminar that OnStar has a 70 percent close rate among new car owners. That means when OnStar contacts these customers for whatever reason, 70 percent go back to the dealership for that service. This is something we can no longer ignore. Luckily Delphi is working for the aftermarket and has developed a telematics solution for us.

Compared to the 1970s, when I first broke into the business, today’s changing technology has reached light speed. It will take an intelligent work force and a lifetime commitment to continued training to keep pace. Continued investments in tools, equipment, information systems and training will become crucial. Those that do not make the commitment will not be around in the future.

Independent shop owners throughout history have always found a way to adapt and change. Our ability to overcome any obstacle is a testament to our dedication to our customers, to our craft and to our industry. We will continue to face many obstacles and challenges. But if our past has proved anything, it has proven that we, the independent service facilities, will continue to dominate the automotive landscape.

One of things we can all count on is the continued support from AutoShopOwner.com. ASO will continue to be the sounding board for shop owners. AutoShopOwner.com members are the cream of the crop. Just about any issue you are faced with in your shop can be found within the forums. Plus the willingness to help each other is nothing short of amazing. We may be competitors in some arenas, but ASO members are colleagues and friends. We all benefit when we collectively share and exchange ideas, opinions and knowledge.

AutoShopOwner.com is committed to you, the shop owner. Not just for today, but well into the future. Our mission statement tag line says it all, “Networking today for a stronger tomorrow.”

As the economy recovers, new car sales will increase. The aging US fleet, which was predicted to be a boom for repair shops, never really materialized as we thought it would. As an industry, independent repair shops survived and some faired quite well. Just not to the extent that many of us predicted. That’s not to say we did not have opportunity, we did. However, as we painfully found out, when people are out of work, feel poor, and when consumer confidence is low, it makes our job a lot more difficult. Shops owners were put to the test and proved to be both resourceful and resilient during the great recession. Shop owners will be challenged once again, very soon.

Consumers are returning to the new car show rooms. That 220,000 mile, 12 year old Ford Taurus, your customer has been driving, has seen better days. It’s time to go car shopping. Around the country dealership are preparing for the surge in sales and we, as repair shop owners, need to prepare also. Why? Consumers will see and experience a different breed for new car dealerships. Many new car dealers are starting to “get it.” The economic climate in the U.S., along with stiff competition from Europe and Asia resulted in many casualties, resulting in a steep decline in new-car dealership numbers, particularly among the Big Three. But just as in the wild, the thinning of the heard is good news for those new car dealers that survived.

New car dealers and car makers understand, better than ever, that the service department can have a decided influence in future new car sales. In a recent Wall Street Journal article, a GM spokesman stated that when consumers use the dealer for their scheduled maintenance, those consumers are twice as likely to purchase another GM car. Plus, no one car maker dominates the market to the degree where their dealership can solely rely on car sales as their only income stream. Income from the service department and parts department are crucial to today’s dealership model.

Marketing programs and strategy, such as Toyota Care, and other free maintenance plans will continue and most likely spread to most car companies. The aim is to lock-in the customer to the dealership through the service department, which hopefully will reduce the defection rate that was so prevalent in years past. Just do a search of your own database and you will find many of your customers who have not returned to you since purchasing or leasing new cars because of perceived “Free Maintenance.”

New car dealerships across the country are also undergoing remolding and restructuring. Improvements will be made in not only increasing dealership physical size, new equipment and appearance, but changes to the service area as well. This is all geared toward enhancing the customer experience. Some average sized dealerships will be transformed into mega-dealers. The overall goal: To capture as much of their prospective market as possible.

Should you be concerned? Well, you should. This is not to say that I think all the dealers will become so powerful that they will knock us into oblivion. Most dealers will make all the cosmetic improvements, make all the attempts at the delivering great customer service, and pour tons of money into their dealerships. And most of them will fail at making a difference. The reason? Ultimately, the car makers and car dealerships want to sell new cars. And that makes them vulnerable. If the heart and culture of the company is truly not in line with the customer and maintaining their car, no plan will fully work. Only those dealerships that truly give up the notion of buy and replace a car every few years, will make an impact.

So, what do we do about this? The first thing is not to bury your head in the sand and fall prey to that old adage that the dealers don’t know what the heck they are doing and that none of your customers would ever think of going back to the dealer for service, especially after the warranty period. That may have been true in 1990, not anymore.

The perception of the new car dealer is slowly changing and people are also economically tired. One of the reasons why they will buy a new car is because they are tired of putting money into that old clunker. Car makers and salesmen will continue to campaign their propaganda that these new rocket ships on wheels need very little maintenance and because they are so complicated, the dealer is your “best” choice.

More propaganda will be from “free maintenance”, and will help to condition the consumer that not much is needed on their car. Why will the consumer believe this? It’s because for the first few years not much WAS done if they went back to the dealer for service.

Now let’s add extended oil services into the mix. It wasn’t long ago that our goal for customer retention was to see a customer’s vehicle about 4 to 5 times per year. That was when the accepted oil service interval was anywhere from 3 to 5,000 miles. Take a look at the new car service intervals today; 7,500 to 10,000 will soon be the norm. This will no doubt cause a decrease in car counts and revenue for many shops.

In spite of all this, we the independent shop owners have the edge. We were the first to understand that we thrive because we are part of the community. We were the first to understand that our customers come to us because we are genuinely interested in their welfare. There are no ulterior motives at play. We don’t sell new cars and we don’t sell car parts. Rather, we look to extend the life of our customer’s cars and promote preventive maintenance which ultimately lowers the overall cost of owning an automobile.

We also understand that our customers come to us because of who we are. People come to us not because of a particular brand name. This is our greatest strength. It must drive new car dealer’s nuts that we can be so successful without any brand name like Toyota, Ford or GM hanging over our bays. Yes, this is our greatest attribute. We survive and thrive because of who we are.

The new car dealers are coming after our business. That’s a fact and we all know it. Those of you who don’t heed the warning will be in trouble. This is my fear. Those of you who continue doing business the same way you did yesterday will also be in trouble. Earlier I spoke of the thinning of the heard. I am afraid that this may also happen with many of our colleagues if we don’t plan and prepare today.

Never forget that it’s you who will make the difference. If you’ve gotten this far with all that has happened the last few years, my bet is on you. See you in the future!

Since the summer of 1973, the year I graduated high school, until 1980, my goal was to become a world-class mechanic. On October 1, 1980 I put the key in the door for the first to my own repair shop and was ready to rock the world. “Bring it on”, was my motto, “There’s nothing I can’t fix.” Only to find that less than 10 years later I would be nearly broke; financially and emotionally.

The problem? I was a great mechanic, but not so great business man. While I could fix just about anything that rolled into my bays, when my business broke, I didn’t have the skills to repair the damage that would almost lead to my demise.

Failing has a great way of teaching us valuable lessons. I learned the hard way that the skills of being a mechanic have nothing to do with the skills of running a business. So, in the early 90s I switched gears and began my quest to learn the skills of running a business. I wasn’t totally ready to weld shut my tool box, but I knew that things had to change or I would not have a business to worry about at all.

Perhaps the hardest thing to change was my mindset that the business and its success were solely dependent on me. That no one could do as good a job as I could. I had this crazy idea that I was the best at trouble shooting, the best at repairing cars, the best at road testing, at selling, at speaking on the phone, at doing the books, even cleaning the bathrooms and fixing the roof.

To change meant that I had to give up control, hire and assign others to help and do the work that I thought could only be done by me. Little by little I handed over the reins to others. As I hired new people, I wrote job descriptions, policies and procedures.

Specialized training was implemented to teach each person to be responsible for their particular position and slowly but surely, it began to work. The tasks that I once thought could only be handled by me were now the responsibility of others. We became more efficient and we were finally growing.

Then came another turning point. Now that I was on the sidelines more, I could see things that I could not see before. This is where another awakening comes into play. I could clearly see when and how others failed at their jobs and I was not too diplomatic on how I told them how I felt. I managed my staff by the principle of “My way or the highway”. This, of course, was positioning my business on a collision course with disastrous consequences.

To make matters worse, I drilled into everyone’s head; the numbers and processes that were crucial to our success and made it clear that everyone is responsible to maintain certain productivity and sales numbers. If not, I would have to replace them. After all, I had a business to run; and numbers and profits were the only thing that mattered, right? Well, not exactly.

As I pushed for more sales and productivity I also pushed my staff farther away. Moral was suffering and we had a tough time meeting our goals at times. No amount of reasoning could reach the minds of the people around me. Until it dawned on me that my focus was on profits and process, not people. My relentless stream of numbers, stats, systems, procedures and reports was compromising the spirit of my business. I had forgotten that you should never put profit before people.

I knew that we had most of the building blocks in place; the only missing piece was culture. I stopped holding “numbers” meetings and starting having “people” meetings. At these meetings I asked for everyone’s input and to tell me what is right with the company and more importantly, what was wrong. I listened and changed our focus from a numbers-driven business model to a people-driven model. Lifting moral and creating an exciting and enjoyable workplace was the goal.

It took months, but the turnaround was dramatic. I had to put aside my hunt to find mistakes and mishaps and began a new mission to find people excelling and catching people doing things right, not wrong. I started a practice at the beginning of each week, which I still do today, to create a written list of each employee and write next to their name, something that I could praise or thank that person for. Throughout the week, I will make it point to speak to each employee in a sincere and positive manner.

Soon, all the issues we had reaching our goals were vanishing. By taking care of people, by recognizing their hard work, by thanking people on a daily basis, all resulted in higher sales and greater profits. I learned that when people are recognized and feel that their contribution to the shop matters; things begin to fall into proper order.

I still work on the numbers, the systems, the policies, the procedures and everything else a shop owner needs to do. I set goals and establish deadlines. But, what I won’t do is forget about people. Helping people around me and getting others to achieve their personal success, is my focus. No one is an Island, and leaders need great people around them. Do we still have challenges and problems? You bet we do. That will never go away. But, we are far better off today than we once were.

As shop owners, our lives are filled with daily challenges and maintaining a positive attitude tests our fortitude and character. There will be those days when you will question is it all worth it. After all, who gives us a pat on the back when we need it? Remember, we have chosen a life to lead and help others. And while it may seem difficult to see at times, helping others prosper and making others feel good about themselves will truly become our own pathway to success.

Sadly, most of these instant millionaires end up broke within 10 years, or eventually in the same financial state they were before they hit the lottery. Some even find themselves in debt and worse off than before they won. Lottery winners are given the chance of a lifetime, a fantasy that many of us dream of. So what happens? Where does all the money go?

Think about this; if you gave Donald Trump a few million bucks, what are the odds that he would squander it away? Trump would probably turn those millions into tens of million. So, what’s the difference? You think Donald Trump is “luckier” than lottery winners?

Let’s take a look at Bill Gates. People say that he was incredibly lucky. He was born into an upper middle class family who had the finances to send him to a private school. He was born in the mid 1950’s which meant he would grow up during the dawn of the computer age. His school just happened to have a teletype connection to a computer, a rarity in the 1960s and 1970s. Having access to, and introduced to computer technology, put him ahead of the curve. Bill Gates just happened to have a friend, Paul Allen, who showed him an article in the 1975 Popular Electronics issue, titled, “Worlds First Microcomputer Kit to Rival Commercial Models.” It was from this article that Bill Gates and Paul Allen decided to convert the programming language of the day, BASIC, into a marketable product that would someday be used in the first personal computer. And, he also attended Harvard, which just happened to have a PDP-10 computer. It was on this computer that Bill Gates developed and tested his product. Yes, the stars were aligned the moment Bill Gates was born. Boy was he lucky!

Let’s examine the Bill Gates situation a bit more closely. Was Bill Gates the only person to be born at that time? Was Bill Gates the only student to attend his high school and the only one to have access to those early computers? Was Bill Gates the only person to attend a college with access to a computer? Was Bill Gates the only person in 1975 to read that article in Popular Electronics? The answer to these questions is obviously no. There were thousands, if not tens of thousands of kids born at the same time Bill Gates was born and exposed to the same opportunity he was.

The truth is there were a lot people who were just as “lucky” as Bill Gates. It’s true he was lucky to be born at the right time, but it wasn’t luck that made the difference. Countless people with the same opportunity could have done what Bill Gates did. So why didn’t they?

The difference with people like Bill Gates is how they view the world around him. People like Gates are able to see things from a different perspective and turn the events around them into larger things. Lottery winners, who go broke, focus on the money itself and believe that the money is what makes them successful. The Donald Trumps of the world view the same money as a means to make that money larger and larger, through investments, real estate purchases and other business transactions. It’s what you do with luck that makes the difference.

Ask yourself, have you had opportunity in the past and not capitalized on it? The answer may be yes. Most of us have opportunities throughout our lives, but for one reason or another, we hold back. It may be out of fear of failure; it may be lack of preparation or the knowledge needed to turn the opportunity into a gold mine. Whatever the reason, we need to realize that when opportunity knocks on our doors, we need to be ready to answer it.

My father told me years ago, “Millionaires were born out of the great depression”. How can this be? Everyone was suffering back then with little resources to work with. Again, different people see things through a different lens and its how you look at the world around you that will make the difference.

Some people say you make your own luck. Luck in one form or another comes to all of us. It’s not that you make your own luck; rather you are truly lucky when you recognize an opportunity and act on it, turning the event into something larger.

In 1917, a young eight year old boy by the name of Glenn Cunningham was badly burned in an explosion at school. His legs were so badly burnt and mutilated that the doctors recommended amputating them. Glenn Cunningham, greatly distressed over this, somehow convinced his parents to agree not to have his legs removed. Because of the severe damage to his legs, the doctors said he might not ever walk again, if he survives. It would take great determination and two grueling years before Glenn would start to walk again. Glenn devoted is young life to strengthening his legs and eventually began running. He would run everywhere, to and from school or to the store for his mother. In 1934 he set the world record for the mile, which stood for three years. He competed in the 1932 Olympics where he won 4th place in the 1500 meter and competed at the 1936 Olympics where he placed second in the 1500 meters. He also set an indoor mile world record in 1934 and set a world record in the 800 meter run in 1936.

Yes, bad luck did hit Glenn Cunningham at the young age of eight years. But what he did with his life, a result from a tragic event, is a lesson we can all learn from.

When times are bad, many of us in businesses tend to hunker down. Fear takes over, which can consume us and cloud our judgment. This can prevent us from moving forward and may hurt us in the long run. Start looking at the events in your life, good and bad, as opportunity, not adversity. Remember, everyone is probably going through the same thing. Yes, some maybe worse than others. But, how you view the events around you, how you react to these events and build for the future will make a difference.

So, is success really about luck? It may be. It’s the luck you create with the opportunity or the circumstances you encounter. It’s all about attitude. Positive feelings influence positive actions. Those that push themselves under all conditions are far better off than those that hunker down. Thomas Jefferson once said, I'm a greater believer in luck, and I find the harder I work the more I have of it”

The other day, a customer brought his car in for a routine oil change service and the technician noticed a light stain from the water pump. The technician brought this to the attention of the service advisor who informed the customer. This is a long-time customer who never questions us on any recommendations or work. Because this customer lives 30 minutes away, we always make arrangements to accommodate him while he waits for the vehicle.

We were booked for that day, so we scheduled an appointment for the following day. The customer reminded the advisor that he must wait while the work is being done and asked how long will the job take? The advisor responded by saying, “Let me create an estimate and I will be happy to discuss how much time we will need and the cost for the job”.

Looking at the labor time on his screen the advisor turned to the customer and said, “The book time is nearly 5 hours, so you will be here for a while”. The customer replied, “Not a problem, I’ll take a walk, go to the mall, no problem”.

The customer arrived at 8am the next day and we got started on the job right away. The car was dispatched to our top technician, who also has the highest productivity rate in our shop. We had the parts all accounted for and asked the foreman to help when needed; to insure it gets done on time. Our goal: to have the job done by noon.

The job was done by noon, returned to the customer and all was well. Right? Wrong!

The next day the customer called and asked to speak to me. It’s never a good sign when I hear over the page, “Joe, Line 3, customer requests to speak to you”. It was the water pump customer. He started by saying, “You know Joe, I’m not one to complain, but the guy at the counter told me it was about a 5 hour job and you did the job in 4 hours, why did I get charged for the nearly 5 hours, and not just the 4 hours”.

I paused for a moment to collect myself. Inside I was upset. I don’t know who I was more upset with, the service advisor who told him the book time, or the customer. I began to explain the details of the job to the customer.

Now, I need to clarify something. Once you start explaining yourself after the fact, you have lost the battle. The customer has his perspective, and his perspective is reality, which is the only reality we need to consider. But I proceeded anyway. I told the customer that we use a labor guide as just a guide and by telling you the labor guide time of nearly 5 hours can mislead you into thinking that this will be the exact time for the job. I continued to tell him that we had all the tools and parts laid out and that the foreman also helped to get the job done quicker. I knew by his response, “But your guy said it’s about a 5 hour job”, that I was going nowhere with this. We had made a crucial mistake and now we have a disgruntle customer.

I apologized and agreed with him that from his perspective it looks like we overcharged him. But I also reminded him about the discount we gave him, and that the price also included a cooling system service, using BG products, that comes with a lifetime protection policy and that the price he paid was a fair and honest price backed by a great protection warranty.

I am not sure if this made him happy. He said that he will be back in the future. I hope so.

The lesson here is simple. We need to move away from stating parts and labor. At my shop we know better than that. This was a slip of the tongue. The advisor was merely trying to convey to the customer that this particular job will take a while. He was just trying to prepare the customer. We need to do better next time. Telling customers a particular job is 2 hours, 4 hours or 10 hours is misleading and hurts both parties; the shop and the customer. A job is worth what a job is worth.

This is not to suggest that we don’t need to have some standard, guideline or benchmark. I am saying that you should not tell a customer, “The Labor is 4 hours and the parts are $100, so your total will be $580.00 with tax”. This is not an effective way to sell work. I am also not a fan of posting labor rates. Our labor rate is $105 per hour. Luckily in New York you do not have to post the actual rate, just how you arrive at the rate. (Yes, this is correct, check with the New York Department of Motor Vehicles if you don’t believe me). I am not sure about other state laws, but you should check.

We all know the issue with hourly labor rate. Let’s say your labor rate is $100 per hour and your give your tech a work order for an oil change and front brakes with rotors on a Honda Civic. The labor for the oil change is $15.00 and the labor for the brake job is $100. The oil change takes your tech 30 minutes, which means the effective rate for this operation is $30.00 per hour. Now, your tech also takes 30 minutes to replace the pads and rotors, making the effective labor rate on this job, $200.00 per hour! So I ask you, do we really need to post a rate that has no justification? Plus, when a consumer looks at the rate, he or she looks at what they make per hour. They won’t tell you, but they are thinking, “Boy, nice to make 100 bucks for an hour’s work”. Most consumers don’t understand GP percentage on labor and the net after payroll and expenses on that $100.

We have many meetings at my shop with the service advisors on this subject. One of things I preach is to consider the complexity of a job, not just the published book time. I make this argument; it takes 4 hours to cut someone’s lawn, and it also takes 4 hours to remove a brain tumor. Are both jobs worth the same? We all know the answer to that question. The point being, an entry level tech performing oil changes and tire rotation is different from an A tech performing complicated diagnostic work on a Mercedes. They both may take one hour to complete, but the A tech’s work must be billed out at a higher rate. That’s basic economics.

I had an issue with my well pump a few weeks back and I called my plumber to check it out. He called me on my cell phone and informed me that lighting must have hit the well and I would need a new well pump. He gave me the total price, the warranty, the benefits of the pump he was installing and all the little extras he would do while he was there. He never mentioned time or a breakdown on the pump or additional parts. I had no idea how long he took to install the new pump, nor did it matter. A job is worth what a job is worth.

We all need to adopt a policy which moves away from selling parts and labor time and price a job for what a job is worth. Breaking down the labor time and parts brings up questions and issues that complicate the selling process. The time to review parts and labor is at car delivery, not during the selling process. Notice, I said parts and labor at car delivery, not parts and labor TIME. We get caught up with this labor time issue and it hurts us. We need to track technician labor productivity and efficiency, but we need to sell a complete job, giving the customer a total price with taxes and all the benefits that come along with doing business with you.

Are your service advisors engaging customers, or are they part of the walking dead?

Ok, I admit it. Let’s get it out in the open. I am a zombie movie fan. There is something about dead people shuffling around grunting in an expressionless, catatonic state that captivates me. The new TV series, The Walking Dead, is my current favorite show. However, when it comes to catatonic customer service people…well that’s another story.

Two Saturdays ago I went to an upscale clothing store to purchase a new suit for my son’s wedding. Being a special event and the fact that I haven’t bought a new suit since Reagan was President, I figured it was time. Buying a quality suit was my goal, the money was secondary, not that money isn’t important, but this is my son’s wedding and buying a nice suit would, for me, add to the overall enjoyment of the occasion.

Well, the karma in the store just wasn’t right. Everyone seemed preoccupied, confused and stressed. After waiting for nearly 10 minutes I finally managed to get a saleswoman to help, and together with the help of my wife, I picked out a real nice suit. The Tailor worked his magic and told me to come back in a week to pick it up.

Last Saturday I went back to the store to try on the suit. Again, you can tell something just wasn’t right. There were sales people on the floor and a few at the sales counter. But they were not engaging anyone, just shuffling around aimlessly. Every minute or so a sales person would shuffle by us gazing into space. As I tried to communicate, I could hear a faint grunt coming from the sales person. I couldn’t make out what they were saying, but it was definitely a grunt…..maybe a secret sales language? Or code? After a while my wife turns to me and says, “It’s like the walking dead”.

So here we are in the middle of this upscale clothing store, where my original intention was to have an experience what would add to the enjoyment of my son’s wedding, and it feels more like the movie set of “The Night of the Living Dead”.

I did finally find the same saleswomen who helped me originally. I quickly tried on the suit, grabbed my wife and ran out of the store. I was afraid that whatever infected these people might be contagious.

It may sound like I am making light of the situation, but don’t mistake my humorous analogy with a very serious situation. This incident got me thinking about business in general and how customers are treated, especially in our shops.

When customers come into your shop, are your service advisors engaging with them in a timely manner? Are they smiling and act in a way that make customers feel special, like family? Are your service advisors doing all they can to provide world-class service, treating people with respect, smiling and engaging in a little small talk? Or are they more like the Walking Dead, arms hanging at their sides, expressionless faces, with eyes staring off in the distance and grunting like zombies?

Let’s face it; being in business is not always a walk in the park. Some days are tougher than others, and we all get caught up with the daily struggles that weigh heavy on our shoulders. But the truth is the public has no idea what we go through and we need to understand that above all the customer experience is what matters most for the success of our companies.

So, where ever you are from now on, whether it’s a restaurant, hotel, on a plane or even in your own shop, pay particular attention to the sales people. See if you can spot any of the walking dead. If you do, tell them they just may be better off auditioning for next year’s Walking Dead TV series, and stay out of the customer service business.

Think about your favorite restaurant, Deli or other business where the owner goes out of his way to say hello to you, and spends a few minutes engaging in small talk. What kind of impression does that make with you? It makes you feel great. You can’t put a price on that type of customer service.

Now, just imagine how powerful your business would be if your employees also adopted that same culture of ownership? Most employees have no feelings of ownership, and many feel disconnected from the company’s success or failure. They may value their job and are loyal to you, but don’t always feel that their contribution to the company is recognized and makes a difference in the overall outcome of the company. If employees think that their efforts are not valued or respected, they will not develop the right culture and consequently, not care as much.

So, the question you are probably asking is, “How does one create the right culture”? First you need to understand the term, “buy-in”. Buy-in means that the people in a company do things not because they are told to, but because they want to. You don’t want people to simply obey you; you want people who can think on their own and contribute to your company. You want to create an atmosphere where everyone has mutual respect for one another and are committed to the common good of the company.

Employees adopt the right culture when they are shown appreciation for the work they do. People who are just compliant to the rules of the company aren’t totally engaged and committed to the overall success of the company. When people are engaged and feel that the work they do does make a difference, they are committed to the success of the company.

Give people the power to make decisions, don’t handcuff them with complicated polices and procedures that have them constantly reporting to you. Let them use their talents and empower them to make decisions. Will they make mistakes? Absolutely, especially in the beginning, but in time you will build a powerful team of thinkers and decision makers.

Get people more involved with the daily operations. Ask questions and ask for help. Request their feedback on critical issues. You may be surprised by just how in tune your employees are to the inner workings of your company. By discussing issues, both good and bad, you will make everyone feel important and part of the big picture. Above all, people want to feel that they matter to the company. Money is important, but self-esteem is something that will bond an employee to your company.

When an employee feels they can act on their own, take risks, and make decisions on their own, they will begin to adopt a culture of ownership. They will feel good about themselves with the confidence that you are behind them 100%. Customer service, productivity, and quality will all improve.

One thing to remember, everything starts with you, the owner. Take a long hard look in the mirror and look at the way you treat people. The way you treat your employees will be reflected in the way they treat customers. If you walk around with a doom and gloom attitude, your employees will also. If you speak in a harsh tone or are disrespectful to employees, one can only imagine what they are saying to your customers. You set the tone in your shop, so carry yourself in a way that people will emulate you in a positive way. This will insure that customers are treated with the world class service they deserve.

Building the right culture will improve the customer service experience. The customer will receive that warm reception from not only you, the owner, but from anyone they come in contact with. That culture will build strong relationships and loyal customers. The result: increased sales, more profits and positive growth.

As co-founder of AutoShopOwner.com, I want to take a moment to thank all of our members and their contributions to this community. Together, we have made AutoShopOwner.com the premium online business resource for automotive shop owners. We all know the wealth of knowledge among us and together we are a force unmatched by any other profession. I’m proud to be part such an elite group!

So, what does 2012 and beyond look like? Well, I don’t have any secret telepathic ability, but I can share with you my thoughts and ideas based on years of experience in this industry and by following recent trends. Let’s get the bad stuff out of the way first.

Many shops around the country are experiencing a drop in sales, profits, and car counts. Many factors, including high unemployment, the housing crisis, rising costs of goods, and the ever increasing cost of doing business, all contribute to a challenging future for us. A few years back we banked on the fact that low new-car sales would result in a boom for the aftermarket. However, due to the economy and poor consumer confidence, this did not come true for many areas around the country.

In 2010, underperformed maintenance in the U.S grew to $62 billion, compared to $54 billion in 2009. This means that many consumers are either neglecting or putting off necessary repairs and services. The longer they put off these services, the more difficult is becomes to sell these services as the car ages to a point where the car owner no longer sees value in maintaining his or her car.

We all know how postponing or neglecting maintenance poses a risk to not only the car owner’s safety, but the safety of others on the road. But economic conditions sometimes outweigh common sense. A recent Consumer Reports poll showed that 40% of those polled are knowingly postponing maintenance and repairs on their primary vehicle. Lower income households and those in the age group 18 to 35, were more likely to delay needed repairs and preventive maintenance. We will likely see this trend continue as we slowly recover from the recent recession.

The economy has forced consumers to become more value conscious, with an emphasis on insuring that the price they pay for anything these days is a good choice. Value does not always mean lowest price however, it means that consumers want to make sure that their money is being spent wisely and that their buying decision will bring them the biggest bang for the buck. In other words, the consumer wants to walk away knowing they got their money’s worth and more.

Another issue we need to confront; every sector of the auto repair and service industry is frantically racing to obtain a piece of the maintenance and repairs that generally were performed by traditional independent repair shops. New car dealers, muffler shops, brake shops, transmission shops, tire stores and quick lubes are all moving toward the concept of total car care. Even many body shops are offering their customers basic repairs. This spells out a very competitive market, especially as the quality of cars continues to become more problem free, combined with the continued decline of many profit-generating services such as fuel filters, plug wires, and timing belts. Not to mention, extended oil service intervals that presents its own set of issues.

Technology and electronics will be the driving force to meet the new gas mileage standards and emissions levels, which will bring an ever increasing demand for you and your technicians. Investing in training and equipment will become a key component to your future business survival.

Had enough of the bad stuff? I know I did, so let’s move on to the good stuff. By the way, there’s always been bad stuff, since the dawn of time. No one ever promised us an easy road, and we will always be confronted with challenges, it’s what makes the strong only stronger. So let’s not focus on the bad, let’s focus on the positive.

Most of you reading this are still around, which proves your resilience and your ability to adapt to the dramatic changes our industry has had to endure over the past few years. We have survived and thrived in uncertain times. Not because of hard times, but in spite of it.

Let’s take a look at a few promising facts. New car sales have lagged in recent years and although sales are better; it may never attain the sales of pre-recession era. This means that as the economy recovers and consumer confidence improves, there will be a flood of cars that will need repairs and maintenance as these cars reach post factory warranty age. The average age of the typical car in the country will remain over ten years and achieving 200,000 miles and beyond will become the norm, all great news for the aftermarket shops.

Embrace technology, it is your friend. You will have to gear up with new tools and equipment along with more training, but this will mean more and more people will need your services. Saturday afternoon tune ups in the driveway are a thing of the past. In addition, technology will open the door for more hi-tech services and repairs. Training will become easier to come by and better as more and more companies offer online courses in addition to live training.

New car dealerships have gone through a period of attrition, losing thousands of stores across the nation. This is good news for the independent shop. Although new car dealers are direct competitors, they no longer have the sheer numbers they once had and our ability to service multiple car lines in our local community, convenience, and our understanding of customer service will continue to be our competitive advantage. In time, this will prove to be a huge benefit for the aftermarket.

Want more good news? A report from a research firm, The NPD Group, recently stated that most consumers want to keep their cars longer, are favorable toward car care maintenance, and they are more interested in maintaining their cars than replacing them.

Now here’s the best news for shop owners. The NDP Group has also reported that the consumer shift away from new car dealerships will continue when it comes to having their cars and light trucks serviced. According to Consumer Reports, car owners still put their faith in the independent repair shop. 83 percent of those polled said they had complete confidence in their independent repair shop when it came to getting the right maintenance and repair at the right price. Another Consumer Reports survey indicated more than half of those polled had complete trust in their shop. Independent repair shops are, and have been, the preferred choice of the motoring public.

We all know it’s been a rough ride the past few years, but we’re still alive and kicking. Looking back on my own 31 plus years in business, I can tell you it’s been tough and rewarding. The future does look promising for those shop owners who find ways to adapt and plan accordingly. To succeed in the coming years will depend on the shop owner’s ability to be an effective leader, accept change and have the passion to commit to excellence. Offering world class customer service and community involvement must also be part of your business plan. Don’t get caught up in the way things were, that’s a waste of time. Things are different now, and in ten years they will be different than the way things are today. Find ways to make your shop stand out. Understand what makes you different in your community and use that as your competitive advantage. Don’t go head to head with the local new car dealer or major chain store. That can be damaging. Know your strengths and the strengths of the people in your company. Remain true to yourself and capitalize on what you do best and focus on the reasons why YOUR customers keep coming to YOU year after year.

One thing I can say with certainty; AutoShopOwner.com will remain committed to helping and supporting its member shop owners. We at ASO know that to remain strong in the coming years will take solid business decisions. Together we are forming a powerful coalition, one that will be an essential ingredient for our future success. The goal of AutoShopOwner.com is to be part of your future success, in 2012 and beyond!

A customer arrives at your service counter asking for an oil change service and a tire rotation. Your service advisor carefully writes the repair order, informs the customer that a technician will be performing a multipoint inspection along with the service, insures that he has all the necessary vehicle and customer information, and nicely asks the customer to have a seat in the customer lounge.

Fifteen minutes later the tech completes the multipoint inspection and brings the results to the service advisor. The technician is recommending a serpentine belt, cabin filter, and air filter. Your service advisors presents the recommended services to the customer, and the customer politely declines, saying that she will give it some thought and possibly bring it back for the work. The result; a lost sale. Does this scenario sound familiar?

So, how does a talented service advisor, who understands the importance of customer service, struggle with sales? It could be because the service advisor does not totally understand the concept of building relationships with his customers. Possibly, his previous training focused too much on, “making the sale”, rather than connecting with the customer as a person. What he may lack, as many service advisors do, is the concept that selling automotive service has a lot to do with building relationships.

Obviously you need to understand the products you sell, the features and benefits of the service, and being honest. But if you really want to go the top, you need to build relationships with your clientele.

Customers must be greeted and treated as close friends or a family member. If a close friend or a family member came to you with a car related problem, would they doubt your diagnosis or recommendations? Of course they wouldn’t. Friends and family members trust and believe in you. They know that you have their best interest at heart; it’s the reason why they come to you in the first place. The sale is not made due to salesmanship, but rather the relationship.

Building relationships begins the very first time a customer calls your shop or steps up to your counter. Effective advertising will bring new customers to your service counter. However, a company needs to insure that a first-time customer doesn’t become a one-time customer. Repeat customers guarantee long-term success. Increasing the odds of getting consumers to return is heavily dependent upon the ability to anchor customers by building solid relationships. Each first-time customer must be greeted with enthusiasm and a smile. It is crucial that the service advisor engage in small talk much like a conversation you would have meeting someone for the first time at a non-business event, such as a wedding or meeting a new neighbor.

Engaging in small talk is not limited to first-time customers. An essential part of delivering world-class customer service is how well you connect with the customer in a conversation. Small talk, combined with quality customer service, builds trust. When people trust you as a friend, sales are not sales, they are simply part of the conversation.

An important thing to note is that a sale is often made long before the service advisor walks into the customer service area and informs the customer that she needs front brakes. The ability to sell is directly related to the relationship the service advisor has with the customer.

Building relationships must be part of your marketing policy and must be a consistent theme, practiced by every staff member. How well you connect with the customer at each point of contact will make the difference later on.

Every business owner should ask themselves; “Can I positively say that, the attitude and behavior of my employees creates an atmosphere that encourages consumers to return?” We need to remember that we may be in the auto repair or tire business, but we are retailers, and the strength of our companies is reliant upon how we deliver world-class customer service. Customer service drives sales and the level of customer satisfaction directly impacts those sales. A positive customer experience, reinforced by the relationship, will keep customers returning.

If you want to increase sales; know your products and services, convey the benefits of the service or repair you are recommending, always base decisions on what is in the best interest of the customer and above all, view every customer contact as an opportunity to either begin a relationship or preserve the relationship.

A recent report from Lang Marketing Resources Inc. reported that in spite of the economic climate, service stations, independent garages, repair specialists and foreign car specialists are generating about 2.6 billion more in service revenue in the U.S. car and light truck aftermarket this year vs. 2010. This revenue increase is coming primarily from the Do It For Me (DIFM) sector. In striking contrast, the same report projects that new car dealerships will lose more than $750 million in service market products. Service stations and independent garages now account for 29 percent of the total aftermarket DIFM market.

What does this mean for the average shop owner today? It spells out: opportunity. This is your opportunity to continue to grow your business and be part of the growing DIFM market; a market that has chosen the independent auto service provider as their preferred choice.

One important factor; the strength of the independent aftermarket it is not about price. National chains across this nation that have built their business model based on discounting and low price do not capture the hearts of the average consumer. Independent garages are typically priced higher on most basic services and repairs, but have far less issue with price. The average independent garage has proven that although price is always a concern with consumers, the actual determining factor in choosing a service facility is the relationships the shop has formed with its customers.

Every shop owner today needs to ask, “Am I up ready for this opportunity and will I put together a plan of continuous growth”? The plain truth is that if your business is not growing it’s falling behind. The level of success you achieve for your company is directly determined by how you plan for the future.

I want to make one thing clear; success is not measured against the success of others. Your personal success depends on your ability, the abilities of those who work with you, your determination and the steps you take each and every day to do better today than you did yesterday. You can build an empire, but that empire will be your empire. Too often people base success on the fortunes of people as Donald Trump or Bill Gates. What they achieved as no bearing on your personal success. That’s not to say there aren’t people reading this that have the greatness to become a Bill Gates. It just means that each of must work hard to achieve the best we can be and never settle for mediocrity.

Never settle for being average. Anyone can be average. Striving to be average can become a curse that breeds complacency. Once complacency sets in, your business is doomed.

Work hard to become your personal best. And don’t forget about the people who work with you in your company. Part of your job as shop owner and the leader of you company is to recognize the strengths of the people who work in your company and find ways to make them better. This concept will help insure your success.

Growing your business requires taking the time to create a plan, determine what your goals are and outline the steps you need to take to achieve these goals. It also takes vision; the vision to see your company in two years, in five years and in fifty years. Most of all, your plan must be written down. The great Sun Tzu, author of “The Art of War”, preached that to be successful requires a well thought out written plan. If the plan is only in your head, it is nothing but a dream.

Growing your business is a journey, not a destination. Growth stops the day you put the key in front door for the last time. Make that last day your choice, not someone else’s. The decision is yours; if your business is not growing, it’s simply dying.

The effects of the recent Great Recession have left many people with a sense of uncertainty over the economy. Perceived consumer attitude is pressuring some companies into lowering prices or offering discounts in order to attract new consumers or to maintain their customer base. I would urge all businesses to seriously consider and examine the effects of price reductions and discounting.

We are slowly moving toward better economic times. If you’re reading this, you have weathered perhaps the worst economic period in your business career. Now, more than ever, is the time to show strength in your company by offering quality customer service and repairs, continued community involvement, continued training, and by remaining positive. All while maintaining profits and building for your future. Discounting to make up for poor profits or weak car counts is a path that may have long lasting negative consequences. Rather than discounting prices, companies need to find ways to build their brand and culture.

Personally, I don’t like discounting my services and repairs. In general, shops give far too much money away as is. I understand as well as anyone the power of a loss leader or discount promotion. There is a place for this type of marketing, but when you realize what a discount costs you, it becomes apparent that we need to be very careful about what and how much we discount. A $10.00 discount can take an additional $100.00 in sales to make up for it, depending on your net profit margin.

One discount I really have an issue with, is the one that’s used to close a sale. Ever notice that your best, loyal customers, never negotiate your price? Those are the customers who need to be rewarded, not those who want to suck profits from your company. If a service advisor needs to use discounts to close a sale, it’s an indication of insufficient training or that you have the wrong person on the counter. Effective service advisor skills are crucial to the success of your company. If you have the wrong person in that position, act quickly. You aren’t doing the right thing for you or for that person, if they are in the wrong position.

Another problem I see is the mindset that we somehow need to offer discounts to attract customers, or to maintain existing customers. I disagree with that thinking. If you are doing all the right things and hire the best people, you should not have to give away the farm in order to attract or retain customers. Would you choose a doctor, dentist, lawyer, or accountant because they’re the cheapest in town? Of course you wouldn’t.

We may not be doctors or lawyers, but we are professionals. Build value in the eyes of your customers, offer outstanding customer service. Create a customer buying experience so powerful that your customers wouldn’t think of going anywhere else. Go the extra mile and reward those customers that patronize you over and over again. Be competitive, but be profitable.

Your business must make a profit. And let’s not confuse breakeven with making a profit. Most shop owners know their breakeven, but some are stumped when questioned; “How much do you need to make above breakeven?” Breakeven only pays the bills of your company and nothing else. Breakeven should never be a goal. Your business must make a profit above breakeven in order to reinvest in your company, put away money for the future, pay for your kid’s education, train your people and do the things that make life fulfilling. Discounting your services can greatly affect this.

Too often discounts attract the wrong customer. Our marketing and advertising should be about branding our business and focusing on our target customer base. The only exception: if your business model is truly a discount store and you have built you business catering to that clientele. Truthfully, I don’t know of many quality shops that advertise, “Come to me, I’m the cheapest around”. Do you?

Advertising should invite the type of customers that fits your business model and those that value all that your company has to offer. If your advertising is always offering discounts, you just may be attracting the customers you don’t want.

Some of my fondest memories as a young boy in the 1960’s were the Saturday afternoons I spent with my father at Babe’s Body Shop in the Bronx. Babe and my father were old army buddies who served together in World War II. They grew up in the same neighborhood and remained friends their entire lives. I never knew his real name or his last name, everyone just called him Babe. As my father and Babe would talked about the old days and the War, I would wander off and watch the men in the shop perform their magic. I can still remember as if it were yesterday. I watched in amazement as these men took a wrecked car and pounded it back into shape. In those days, you didn’t just replace a fender or quarter panel, you fixed it. These guys had the strength of Hercules and the skill of a Michelangelo.

I remember on one particular day, my father noticed how fascinated I was watching the guys in the shop. He knelt down beside me, pointed to the guys and said, “I call these guys, Men of Steel. These are tough guys that work hard each and every day. They can take a crumpled-up fender and with hammer in hand, work it back into shape just the way it looked when it rolled off the assembly line; and all by eye”.

Before we left to go home, my father and I walked around the side of the body shop and pulled two sodas out of the Coke Cooler. Then we would sat down on a bench seat taken from of an old Desoto and finished our Cokes. Could an eight year old ask for a better summer Saturday afternoon?

For many of us, childhood memories have served to create pathways to our careers. The auto repair industry is filled with shop owners and mechanics that draw upon past memories to shape their lives. The auto repair industry may have changed a bit, but we still perform magic every day. We are a dedicated breed and should be proud of what we, as a group, have accomplished.

My passion for this business was born watching those “men of steel” back in the 60’s. I knew from a young age what I wanted to do in my life. I feel lucky that way. I often wonder how many people go to work every day hating their jobs.

I am a mechanic and a shop owner. It’s the life I chose and it’s the life you chose. We all have a special bond. It’s the reason AutoShopOwner.com was created. Through the use of words, comments and stories we express who we are. We share, learn and become better at what we do. The glue that has bonded us together is our past. That same glue will help secure our future.

My father encouraged me to open my own shop and we shared some great times before his passing in 1986. You see, he was also one of those “Men of Steel”. I’m not one to live in the past, but I would give just about anything to have one more summer Saturday afternoon, sitting on that bench seat behind Babe’s Body Shop sharing a coke with my Dad.

These differences may lead to conflict, which could have negative consequences on your business. Shop owners, in particular, need to understand these differences in order to maintain order and morale.

Our perspective on life is molded by our upbringing. Our ideals are taught to us by our parents and from the events of our childhood, which help to shape who we are and how we live our lives. I am part the baby boomer generation. I am the son of parents who were brought up during the Great Depression, fought in World War II and learned that sacrifice and survival are the same.

When I entered the work in the mid 70’s, the boss was the center of authority. The “My way or the highway” attitude was accepted as the way things were. If the boss raised his voice, he probably had a good reason. There was no discussion about it. If you screwed up, you knew it, and you vowed to yourself to do a better job next time. Because this was an accepted way of life, many people from my generation adopted this style of management and implemented it into our own businesses. The problem we now face is that yesterday’s management style no longer works with today’s diverse workforce.

Priorities and lifestyles have changed. Past generations mostly focused on family and work. Free time was a luxury that was reserved for that rare vacation. Today, people place a high value on free time for themselves, family and friends. In my era, overtime was considered a gift. Today, overtime is often viewed as an inconvenience if it conflicts with personal time.

How we approach workers today has also changed. If the boss approaches an employee to discuss an issue and is perceived as being confrontational, the conversation will not go well and will cause a rift between the employee and the boss, even if the employee was dead wrong.

Before we go on, I want to make one thing clear. I am not judging any generation or group of people to be better than the other. Being right or wrong, or should I say being perceived as being right or wrong, doesn’t really matter. Everyone has their own way of thinking and adheres to certain core values that they believe they should live by. For business owners, it becomes a problem when we cannot see beyond these differences.

My own shop went through difficult times recently with personnel after we expanded and built our second facility. With the hiring of new workers, most under the age of 30, we lost that close-knit family atmosphere. Moral and productivity tanked. My first mistake; I had forgotten that skill should never outweigh attitude. Identifying people with the same culture of your company means more than an impressive resume or grade point average from a trade school.

I knew that morale and working as a team was essential. So, in my effort to improve morale and unify the company, I made more mistakes by refusing to accept the differences of the younger generation and by pushing my values on them. This resulted in alienating people and divided the shop even more.

Some of the newly hired employees had to be let go, some left on their own. The reason in both instances however was the same; they were not the right fit. So, after a series of employee turnovers I eventually found the right people and at the present time our staff consists of people who age from 18 to 60. Learning how to get along and work as a team, however, was another thing.

Morale becomes the foundation for success. Your workforce is a team, no different from any other organization. We all know that a divided shop cannot survive; morale will suffer along with productivity and profits. All teams must find common ground that can hold the group together. In order for any team to be successful, they need to rally around a common cause. A baseball team rallies around winning the World Series; it becomes the chemistry that bonds the team together.

To improve morale at my shop we started to hold open meetings to air out opinions about how to make improvements in the business, particularly workflow. I let the meetings run themselves, only adding my input as a moderator, not an enforcer. From these meetings I began to understand what was dividing the shop. It became apparent that the diversity in personalities and ideals were causing indifference, dividing the shop. It was not lack of respect or animosity; it was more about the lack of understanding in the differences among the group.

It also became clear that being the leader meant I had to set the mood of the shop. The mood and culture of an organization is always shaped by the frame of mind of the leader. If I am frustrated or negative, the rest of the shop will follow. In order to improve morale I needed to remain positive and become a leader that represented the culture of the shop.

This also meant I needed to find ways to bridge the gap between the workers. What is the bridge? Find out what is important to each of your employees. What are their goals in life? What do there care about? Why do they get up in the morning and come to work? What do they want to see in the workplace? Most of all, find that common cause, a goal or series of goals that will inspire the people in your company to rally around.

Running a business today is more about managing personalities than managing the numbers. To have a successful company you need to learn that it’s not all about you, you can’t do it alone. You need good people around, who feel good about themselves. The better the people in your company feel about themselves and about their coworkers, the stronger the company. Your culture must align people and inspire them. When looking to hire, find people who fit the culture of your shop. High priced talent alone does not insure success.

The culture of your company is what matters and that can only come from you. Build a company where the culture is so strong, that people go to work because they want to, not because they have to.

Like many of you, I once shared the belief that a high labor rate, quality work, high-ticket averages and superior customer service was the business strategy to create a successful repair shop. I also believed that the customers should never control the flow of work in my bays by dictating to me when they need service and that I should carefully plan out the day. There was also a time when I would refuse a walk-in for an oil change because I had too much work in the bays. Well, I’m here today to tell you that for me, this strategy is dead. It died along with the carburetor, points and condenser. The quality of your work, tracking key performance numbers and providing great customer service still holds true, but in today’s business world, it’s not enough.

Look around at the world today. Has anything changed? You bet! We live in a fast past world where people balance work, family, fun, Church and other obligations. Both Mom and Dad have careers and are running from ballet to baseball. The media has been drumming into our head for the past thirty years that great service is getting what you want now and fast. Why do people today value their time so much? Because they have so little of it.

So, here’s the scenario. Its Tuesday 2:00pm and Mrs. Smith arrives at your shop unexpectedly with a check engine light on. You politely and professionally tell Mrs. Smith that you would be more than happy to take the car in on Thursday. Now, she’s starts processing in her mind what she needs to do on Thursday: She needs to leave work early to bring her daughter to the dentist at 1:00pm and needs to be back at the office by 3:00 for a meeting, then dinner at 5:30 and the P.T.A at 7:00. “No, Thursday won’t do”, she says. Respectfully, you answer, “How’s next week?”

At this point she gets frustrated and says she will let you know. You just may have lost a customer. You viewed her problem as a check engine light and how you would fit her car into YOUR calendar. She perceived her problem as another way to balance an already demanding schedule.

Now let’s talk about labor rates and average repair order dollars, and I will hopefully tie all this together. Concentrating on bigger tickets and labor rates as a way to overcome inadequate car counts and low profit will simply not work. I’m not saying you shouldn’t charge what you are worth. I don’t give anything away in my shop and charge accordingly. But, what I’m more concerned about in today’s market is opportunity. I concentrate on maintaining healthy car counts to give me the opportunity to sell more. Today’s cars are not like those built in the 70’s and 80’s. You don’t have the highly profitable repair work anymore and cars are more reliable. Take a look at what the automakers are taking away from us: Timing belts, plugs/wires, fuel filters, distributor caps, rotors, etc. Not to mention long life coolant, transmission fluid and extended oil change intervals.

This means you will need a healthy car count in order to give your shop the opportunity to sell profitable service work. This also means that you will need to be very proactive in managing your customer’s vehicle maintenance. You will need to be very innovative in your approach on maintenance and service, and diversify your services to fit a broader range of consumers.

Successful “Big-Box” stores understand the law of compounding and moving product. Even in these tough economic times, Home Depot would rather sell 1,000 cans of paint a week and make $6.00 on a can, then make $12.00 per can and only sell 300. Why? Having that many people coming through their doors buying paint increases sales in other areas, such as paint brushes, primer, rollers and drop clothes. Again, when you increase the number of customers, you increase the opportunity to sell more products. This is the law of compounding sales through opportunity.

Before you go lowering your prices, STOP. Most of us sell at a fair price already. What I’m suggesting is that when you increase car counts, you give yourself more opportunity to move product: such as air filters, cabin filter, batteries, wipers and other items. Plus, you are working on building a customer base that will more likely return in the future because your willingness to work around their schedule.

You may have loyal customers, but if you’re not perceived as convenient and not willing to accommodate them when they need you, you may not be capitalizing on your potential to fully satisfy a customer.

How do you increase traffic to your bays? Say “YES” as much as possible. Be more accommodating. Try to work around your customer’s schedule, not yours. Be more flexible. Your daily planner is not written in stone. Promote while-you-wait service, if at all possible. At my shop we welcome walk-ins and promote while-you-wait service. It has proven to be a gold mine of opportunity for us. I do understand that smaller 2 or 3 bay shops may not be able to handle a flood of waiting customers. For these shops you may need to rethink your business model to insure that your daily scheduled jobs are balanced properly in order to maximize opportunity. Remember; opportunity equals profit.

As AutoShopOwner.com enters its fourth year, I would like to personally thank all the members for their continued contribution and making AutoShopOwner.com the “go to” online business forum for the independent automotive repair industry. The success of ASO is truly due to the strength of its membership. The combined knowledge and participation of its membership base has far exceeded our expectations. For that reason, we at AutoShopOwner.com are very proud.

One year ago I wrote about the tough economic times we have endured the last few years. I stated that although 2009 was very challenging, 2010 would be the year to make our mark.

Well, another year has passed and the automotive independent repair shops have once again shown their resilience and the ability to overcome just about anything thrown their way. We may have lost a few colleagues, but not many; certainly not nearly the numbers that were predicted. And, when you compare it to new-car dealership losses, we truly need to stand up and give ourselves a round of applause. In an era where conglomerates such as Chrysler and General Motors needed Uncle Sam to bail them out; we tightened our belts, restructured our pricing strategy, diversified our services, continued to train our technicians, and stood up to adversity. The truth is we maintained the attitude of, “Business as usual”.

Our strength always has been and will continue to be, ourselves. Yes, I know how you are constantly being told that you need to run your shops more like a business, and I have heard over and over again how an industry of “mechanics-turned shop owners” is the main reason for our demise. But, how do you explain our continued success? How do you explain the fact that the independent repair sector is alive and well? How do you explain that we, the independent repair shops, are the number one preferred choice of the motoring public? I think it’s time to examine how WE do business, and maybe the rest of world should take a few lessons.

To be honest, many of can do better financially. Shop owners and technicians work extremely hard, give a lot of the profits away in lost productivity, and simply do not always charge what they are worth. Too many of us end our careers with little to show for it. For many of us, breaking away from skills of mechanics and learning the skills of business is almost unattainable. As we get older and a bit wiser and beat up, we make the necessary changes to ease back and take more of a managerial role. We see the writing on the wall and feel the pain of years past in our backs, hands, and shoulders. But, we endure, and make a life for ourselves and our family.

As a fellow shop owner, let me outline the profile of the typical shop owner. The typical shop owner is a dedicated, community focused person, involved with either the local Church or other organization(s). We put in an enormous amount of hours each week, working on every aspect of business. We always strive to do our best and produce the best product possible. We commit ourselves to continued education. We always give the customer the benefit of the doubt and will do just about anything (even at a loss) to keep the customer. We warranty repairs long after the warranty period. We come to work sick and take very little time off. We never hesitate to pick up a wrench, broom, mop or push a car into the bay. We are in the business of helping people and keep this country moving. Without us, our communities would come to screeching halts. We will work days on a problem, until we find the fix. We never give up. We always find a way to win.

No one, and I mean no one, can take away the fact that the typical shop owner is truly committed to their customers and to the industry. As a group, we may not be the best business people, but we always find a way to get the job done.

My vision for the future is to see more and more shops realize that our proven track record dictates that it’s time to secure our place in the future. We have done great things in the past, now it’s time to do even better. Continue to shift your role as a company leader and look for ways to transform your business where all the people in your company can enjoy the fruits of their labor. Build a solid future for yourself and for the people around you. This will be your legacy. Do this for all the reasons why you have done everything in the past, not solely because of economic gain, but because it’s the right thing to do. You owe to you, your family, and to the people who work with you.

As we move forward in 2011 and beyond, AutoShopOwner.com is committed to your success and will continue to provide a platform where the open exchange of opinions and ideas will provide valuable information through shared knowledge and experience.

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For me, my recent week from hell happened this past summer. I came in on Monday morning in the second week of July to find that my service manager was sick and would probably be out until Thursday. I also learned that one of my top techs got into a motor cycle accident over the weekend and was seriously injured, with no information about his return to work. It was 6:45am and little did I know, this was just the beginning, and it was about to get worse.

A Subaru we serviced a few months ago was towed in over the weekend with a seized engine and the owner was blaming us for not putting oil in the engine. He was demanding we pay for a new engine because in his mind, it’s our fault. I gathered my crew together a little before 8am and told them this was going to be a very challenging week. I also told everyone to be positive, work together and we will get through this.

On Tuesday my air compressor caught on fire. The compressor, only a little over two years old, apparently had a defect in the wiring which caused a short and fried the motor. We were one month over the warranty and I had to eat the cost for a new compressor motor.

On the ride into work on Wednesday I called my shop foreman and asked if it was safe to come in. I was joking, but he wasn’t laughing. There was silence on the phone and I asked, “What happened now”? He told me that the transmission we installed in the Dodge Van last Friday was towed in overnight; “the transmission doesn’t even move”, he said. He also told me that there was a note from a very unhappy customer that said she needed the van back ASAP! Then he told me that someone threw a rock through the front window and that the Police are waiting for me. I wanted to turn my truck around a go to the hills and hide. Aside from these new issues, we were getting behind in our work as the problems kept mounting. Somehow, we made it through the rest of the day.

Thursday morning started out ok. My Manager was back and we were well into the process of getting all the issues settled. The compressor motor was due to arrive that day. Luckily we had an old back up compressor which kept us going. The glass company was there installing a new window. Things were looking better, I thought. But, I was wrong. That morning we received the wrong tire shipment, and all the tire sales for that day had to be reordered. We lost electric power from a downed pole around the corner at 10:45am. We did what we could, but we all know how dependent we are with computers, lifts, phones and other equipment. The power came back late that afternoon and we all stayed late into the night to catch up. The push to get the work done was draining everyone, including myself. I could sense despair setting in as the morale in the shop was suffering.

I spent the better part of Friday morning dealing with the customer of the seized Subaru engine. The truth is, there was oil in the engine, but low about 2 quarts and he couldn’t read any oil on the dip stick. According to our records he was 5,000 miles over his scheduled oil service. We only serviced his car once and as I questioned him, I realized he didn’t take care of the car as he should, often going over the recommended interval for an oil change. I asked him if there were any lights on the dash before the engine seized. After a short pause, he admitted that the oil light and check engine light had been on the day the engine seized. Knowing the truth put me in a better position to deal with the problem. He was still angry and wanted to know what I was going to do because we were the last to touch the car, but the facts were the facts and I stood my ground.

By Friday afternoon I was mentally exhausted and was looking forward for the week to come to an end. About 3:30 that afternoon, a long time customer came in for service on her car. I walked over to her to say hello and she started to cry. I sat down in the waiting area with her and asked if there was something I could do for her. She told me that her daughter, 41 years old, just passed away from cancer. She left two young children and a husband behind. In an instant, all the problems that happened the past week took on a different meaning; all of the worry that I had the past few days suddenly vanished. This woman had real issues to deal with; issues about family and life, and in the end, are the only things that really matter.

I sat with her until her car was finished and listened as she spoke about her daughter and family. When her car was complete I walked her out to her car. As I walked back to the office, I started to put things in perspective and realized that all the trouble that had happened in the last 5 days seemed a lot less important.

As shop owners, we face adversity every day. At times I feel we are being tested. Sometimes, things appear to be too tough to bear. Sometimes, just sometimes, the problems we face are just what we need to remind us that things could be a lot worse. For me, I learned a valuable lesson about life. I learned to appreciate the things that really matter in my life and not concern myself about the things that are only part of life, not what life is all about.

Tomorrow is Monday, and I don’t know what the auto repair world has in store for me. It may be hell or it may be paradise. But whatever happens, I’m ready for it.

We all heard that the future looks bright with low new car sales and dealerships closing, which are positive signs but not the total picture. The new car dealerships that remain after the dust has settled will emerge strong and with the full backing of the car maker. Yes, there will be some dissension in the ranks between the manufacturer and the franchise dealers. There will undoubtedly be a line drawn in the sand, as car dealers fight for market share of the service business and the car makers continue their desire to promote vehicles that need little or no maintenance. Dealers want and need the service business, but that would mean an abundance of cars that would last long past what the manufacturer would like. Car makers want to sell cars, not make them last for years.

Let’s throw national accounts into the mix. The world was a nice place when a muffler shop was a muffler shop, or a transmission shop was a transmission shop, and a quick lube just did oil changes. Now, every national chain has entered the service and repair business, a place once dominated by independent repair shops. No longer can a tire store rely on tire sales, or a transmission store satisfy its existence through the sale of rebuilding transmissions. All segments of the auto repair and service industry now perform a wide variety of services, from tires to brakes to oil changes, and more. This transformation of the repair and service market is cutting up the service and repair pie smaller and smaller.

So, where does that leave the independent repair shop owner? Actually, in a very good place. Think about it, we wrote the book on automotive service. We are the preferred choice of the motoring public. We are convenient, knowledgeable, work on multiple vehicle makes, friendly, and have been part of the community long before those muffler chains even thought about selling tires.

However, we must not take anything for granted. We do have the power to shape our destiny. It’s up to you and me to stay the course. A recent Lang Marketing Report indicated that the decline in dealer service bays will lead to an opportunity for independent repair facilities. However, how the independent aftermarket responds to this decline will play a crucial role in the future of the independent car and light truck aftermarket business.

As independents we need to commit ourselves to continued training. We need to embrace technology. We need to provide the very best in customer service and learn not only the skills of mechanics, but also the mechanics of business.

AutoShopOwner.com will be there, every step of the way. That is our commitment to you! It will not be easy, but anything worth fighting for is never easy. Within the forums of ASO is a wealth of knowledge that gets stronger every day. Participate in the forums, post your questions and opinions. Share happy stories and share those bad days too. We want to hear everything. Spread the word too, in numbers there is great strength. The larger the membership, the more benefits we share.

So, are you ready to roll up your sleeves and go to work? I know I am.

I got a call a few weeks ago from a customer (we’ll call him Dave). Dave asked me to give him a price on a 60k service for his daughter’s Honda Civic. She was coming home from college and he wanted to get her car up to date with needed maintenance. I asked Dave how many miles were on the car, and after looking up the vehicle’s records, I realized that she had put over 12,000 miles on the Honda, since we saw it last.

I explained to Dave that it would be in his daughter’s best interest if I give the car a general inspection first, from bumper to bumper; just to make sure everything was ok. After the inspection I would be happy to give him a price on the 60k service and any other items identified during the inspection. Dave responded back, “You really can’t give me a price on the 60,000 mile service?” I explained again that many miles have past since we serviced the car and I just want to be sure that we look at the car in its entirety and not just focus on the 60k. After a pause he agreed and booked the appointment.

The Honda arrived a week later and was dispatched to one of our techs for a complete general inspection. The inspection revealed only a few additional service items along with the scheduled 60,000 maintenance service. I was a little concerned about Dave’s insistence about the price when I first spoke to him and told my service advisor that I would be calling Dave about his daughter’s car.

I reached Dave at his office and informed him that we had completed the inspection on his daughter’s Honda and that the car was in great shape. In addition to the 60,000 mile service the Honda would need a rear brake adjustment, a brake light bulb and a set of wiper blades. I gave Dave the total price, for the complete job. Dave responded back, “How much is the 60,000 mile service?” A felt a little confused at this point and itemized all the prices for him. He proceeded to tell me that a local dealer sent him a coupon and their 60k service was $80.00 cheaper! He asked me, “Why should I spend the extra money with you for the same service?”

I could have explained to Dave that the coupon from the dealer was a special promotional price only. I could have also explained that dealers sometimes use these specials as lost leaders. I could have gone on to say that we employ only ASE certified technicians and that they receive on-going training and that we invest in the latest equipment and information systems. I also could have argued that this is how we justify our prices. But I didn’t say any of that. What I did say was this, “Dave, do you remember when you were leaving for vacation a few years ago, on a late Friday afternoon, and you noticed you had a flat tire on your camper? Do you remember I stayed open until you arrived to repair the flat tire? And do you remember the day your daughter was leaving for college in her sophomore year, and the check engine light came on an hour into her trip? Do you remember you called me and asked for my help? Do you remember how I arranged for a tow company to stand by in case your daughter broke down? And do you remember that I stayed opened until your daughter returned back so I can check the car out? Dave, is the service we have given you throughout the years worth a least $80.00?”

There was a long pause and I knew from the sound in his voice that he felt a little embarrassed. He apologized and said that that he was trying to save a little money with the high price of gas and food these days. He also admitted that, with his daughter in her last year in college, he is feeling a little lighter in the wallet. We completed the 60k and the other service items later that day.

What’s important is that I never tried to discredit the dealership. That would have gone nowhere. I also tried to direct the attention away from price and focus on the value of the relationship we have created throughout the years. In retrospect, I don’t know if I should have thrown it in his face, about what I did for him the past. I have mixed feelings about that.

I think in these shaky economic times we need to concentrate on service. We need to address the concerns of the customers and give them options. Your customers will be looking to you for help and guidance, that’s part of your job. The shop that continues to deliver outstanding service and charges a fair price will thrive. I have lived though many economic roller coasters in my 30 years in business and have no doubt that this ride will pass too.

If you’re wondering if I gave Dave a discount on the job, you can ask me that and any other questions, in the topic I have started for this story, in our forums. Let me know how you feel I handled the situation.

Give your customers a memorable experience and they will return

Peter Drucker, one of the greatest business minds in recent history preached, “The purpose of business is to create and keep a customer”. That simple quote is perhaps the single, most important business principle. We often get too caught up in sales numbers, gross profit margins, car counts and average work order dollars. Those are the numbers of your business, but what is the heart of your business? What will drive your business for generations to come? The answer: Customer Retention. And that can only be accomplished with a sound marketing program and creating the ideal customer experience. Take care of your customer, give them a memorable experience, and the rest will fall into place.

Let’s first take a look how marketing differs from advertising. Marketing and advertising are closely related but often confused. Advertising is part of marketing and effective marketing is vital to customer retention. To simplify matters, advertising is everything you do to get your name out to your market area in the form of ads, radio announcements, TV commercials, bill boards, coupons, etc. Think of advertising as inviting consumers to try your product or services through different forms of media.

Marketing is how customers perceive your business. Marketing consists of everything you do with respect to the customer experience. The experience is the most important step in the sales process, its makes or breaks the business-to-consumer relationship. For the customer to want to return, the experience must be positive. And, I’m not only referring to quality repairs, that’s a given. I’m talking about how the customer was treated on the phone, at the front counter, the waiting area, the bathroom, as well as the look of your facility….The Experience.

Advertising may get new people through your front door, but marketing will keep them returning over and over again. A bad experience will result in a one-time customer, which wastes valuable ad dollars and hurts future sales. Remember, advertising gets the phone to ring, but how the customer is treated on the phone will determine if that person actually comes in. Or, how that person was taken care of once she arrived at your service counter will determine if she returns. Marketing is the key; it’s the difference between building a business and failing. It’s where many businesses drop the ball. Everything you do once the customer drives into your facility must be somehow related to getting the customer to return.

Let’s take a look at a few basic marketing ideas you can implement today that will make a big difference with customer retention. Many of these marketing ideas don’t cost any money and I’m sure most of you already know them, but a basic marketing tune-up from time to time can’t hurt.

Who’s answering the phone? A tech? A porter? Are they trained in customer service? This has to be the first step in your marketing plan. The wrong person answering the phone can kill your business. At my shop, only service personnel answer phones. They are trained with the proper skills to handle issues, problems and scheduling. Call your business from time to time or have a friend call. Make sure the people you have on the other end of the line are saying the right things in a warm and friendly manner.

Who’s on the front counter greeting customers? What impression does the customer have as she walks through your front door? Are your counter people well groomed? Are they enthusiastic when they greet customers? Do they smile? You’ll have a tough time selling if your service people don’t have the right attitude toward the customer. I tell my service advisors; “When a customer walks through the door, treat them as if you were waiting your entire life to meet them, that your whole existence is dependent upon their arrival. If you want the customer to return, make them feel special”.

How’s the look of your facility? Is it clean and orderly? Can customer see junk engines or tires piled up in the back? Is your parking area clean? How’s the waiting area? What does the customer bathroom look like? Clean bathrooms and waiting area are a reflection of your business. The customer doesn’t always see the repair, but they DO see how well kept your bathroom and waiting area is. You need to take a long hard look at your facility and make sure it has the look that invites people, not turn people off. It doesn’t take a lot of effort to insure that your facility is clean and neat. But, it goes a long way with the customer. The condition of the facility will leave an impression in the customer’s mind, if your place is a mess, the customer will take this as a sign that maybe your work is a mess too.

Customer follow up is a great way to show your customers you care about their welfare. We call all first time customers and every customer who had a repair or major service performed. We don’t call for simple services like oil changes and state inspections or wiper blade replacements. Many new customers are stunned when we call; it’s a great way to reinforce that positive customer experience.

Car delivery is another great opportunity to strengthen your relationship with the customer. Review the work order; ask the customer if there are any questions. Thank them and shake their hand. Walk them out to their car or hold the door for them. Anything that tells the customer you really appreciate the trust they have in you and want to see them return.

Book the next appointment. Your dentist does it, why not you? Your customers will need another oil change service, right? Let it be your shop, book the next appointment during car delivery before the customer leaves. Create a system using a computer schedule program or use your business management program to alert you of scheduled appointments. You will need to remind these customers with a reminder card or phone call, but it’s a winner.

You also need to create marketing programs that will contact your customers on a consistent and continual manner. You need to keep your company branded in the mind of your customer. This is important, the next time your customer is thinking about his car, he needs to associate his car with your business. This can only be done by constantly reminding him about your company. People will recall what they are familiar with. Here are a few marketing strategy tips:

•Offer free tire rotation with every set of tires. Also offer free tire pressure checks.

•Send out yearly reminders for wheel alignments.

•Offer free fluid top-offs between services.

•Create a welcome kit of all new customers. Include your company brochure, business card, other information brochures, and a new customer discount coupon for their next visit, magnetic business card. You can even add a small gift like a tire gauge.

•At write up, get email addresses and birthdays (not the year). Send your customer a birthday card, either by mail or email.

•Create an email newsletter and send out monthly car tips and other service specials.

•Send out seasonal promotions.

•If your state has mandatory safety/emissions inspections, send out reminders.

•Make notes about future service work and suggested repairs and send reminders either by email or regular mail.

•If you perform a major repair such as an engine replacement or transmission, schedule a follow-up visit.

Getting the customer to return must be your marketing goal, particularly for a first time customer. It takes a few visits for people to get to know your company and feel comfortable with your people. That’s why it’s so important to create marketing strategies that increases the chances for a return visit. It takes time and effort to build a relationship, but once established, you have a customer for life.

Sam Walton, the founder of Walmart built a world–wide empire, and although many of Walmart’s business practices are controversial, Sam Walton did understand the consumer. His quote says it all: “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else”.

Got your attention? Great! Now let me tell you what I really think. Advertising DOES work. Did the title of this article grab your attention? You bet it did. I purposely phrased the title in that way in order to get your attention. That’s advertising.

There was a time when I only relied on word of mouth, the yellow pages and an occasional ad in the local paper. I would throw together an ad myself and when the results were poor, I would convince myself it was because advertising did not work –when this simply was not true. In today’s world of business, if you don’t have an effective advertising and marketing program, you are going to find it nearly impossible to compete in the future.

The fact is, as business owners we need to be constantly thinking of ways to grow our companies, and advertising and marketing must be part of our business plan. The problem is that we are often unsure about the effectiveness of our advertising and feel that a lot of our advertising dollars are wasted. John Wanamaker, considered the father of both the modern department store and modern advertising was quoted as saying: “I know that half of my advertising dollars are wasted … I just don’t know which half.” Although there is some truth to this, it should not deter you away from advertising and marketing. There are things you can do to minimize the losses and increase the gains with an effective advertising plan. The rewards of an effective plan far outweigh the losses incurred when one of your ads or a promotion is not working.

Four years ago when I was planning to build a new facility and expand my shop, I knew that in order to succeed I needed to gain market share in my area quickly, I could not rely on word of mouth alone. In order to grow at a faster pace, I needed to put together a comprehensive advertising/marketing program. With the help from a business consultant we set out to find a few critical factors; determine who my profile customer is, what products and services I want to bring to the consumer, and where to find more of my profile customer. I want to share with you some of what I learned from my experience and what forms of advertising are working for us.

•There are some that say advertising does not work; that’s a myth. The right advertising works and you need to find out what works for you. You need to conduct a demographics study of your current customer base and the consumer base in you potential market area. Establish what your business is all about and what you bring to the market that sets you apart from your competition. Create a profile from your existing customer base to determine your ideal customer. Create an advertising program to attract more customers who fit your ideal profile. Find out where these people are in your market area and target these people. For example, if you are a high-end European service facility, catering to people who own Mercedes, BMW, Jaguar, Land Rover and Audi, then your advertising must reach out to these people. Your advertising does not belong in a discount publication. Remember; don’t try to be everything to everyone.

•Don’t be afraid to try different forms of advertising; fear, sometimes keeps us back from achieving our potential. If something does not work, stop doing it. Try something else. That’s not failure; you have just gained knowledge that you did not have before. Don’t try everything at once either, build upon your program. Also, you need a blend of call-to-action and branding. You don’t always need to offer a coupon or discount. With our radio ads, we give seasonal auto tips during peak drive times. Sometimes it’s’ better to brand your company by getting your name out, then offering a discounted services.

•Is word of mouth the best form of advertising? Yes and no. Word of mouth is great but it can be too slow. Several years back, I considered word of mouth to be my best form of advertising, while the truth was; I really did not have a well thought-out plan.

•Many people say you can’t measure advertising. I don’t totally agree with that statement either. Every customer, new and existing, needs to be asked how they found you. You need to track and monitor this. I keep a spreadsheet of every contact I make; I want to know exactly how someone found us. This way I will know what works and what does not work.

•All your advertising must be consistent in the message, colors, and logos. When someone sees your company, whether it’s on your website, TV, promotional flyer or print ad, it must be easily recognizable. Branding is everything. Don’t send mixed messages. That does not mean you can’t have different themes. Geico Insurance uses multiples themes. We all know the gecko and caveman commercials and easily associate these ads with Geico. I recommend recruiting the help from a professional marketing company to help you create an effective program.

•The key to remember about advertising is that once you create a program along with a budget, you need to commit to that plan for the long haul. Your advertising must be consistent and continual. Inconsistent advertising does not work and actually ends up wasting valuable dollars.

•People will buy your product or service when they are ready to buy, not necessarily when you are ready to sell. Just because a direct marketing promotion did not yield the results you were looking for, does not mean it failed. Keeping your company in the mind of the consumer through consistent advertising is powerful and will ultimately have positive results. Think of it this way; Dunkin Donuts does not expect you to jump off your couch every time it airs a TV commercial, does it? No. The purpose of the commercial is to keep embedding the Dunkin Donuts brand into your mind, which in turn they know increases their odds you will choose Dunkin Donuts the next time you are traveling down the road looking for coffee and donuts.

After two years since starting our new marketing program, we now concentrate on TV, Radio, Internet marketing, email marketing and social media. This is what is working for us now. It may change in the future. That’s business. You need to do your homework and find out what will work for you. You will need to continually monitor and measure the effectiveness and make changes as you see fit, it’s an on-going process.

Let me leave you with these thoughts; if you are not willing to advertise to your customer, I promise you, someone else will. Don’t get discouraged either; it takes time to establish your company in the market place. It’s like planting seeds; it takes time to see something growing from the earth.

So, let me rephrase the title of this article: Advertising Does Not Work, the Right Advertising Works!

Let’s go back to 1976, a much simpler time. I was working at a gas station in the Bronx called Randy’s Chevron. It was a 2-bay garage with two gas pumps and two mechanics. I was 21 years old, single, and loved what I was doing. The boss, Randy, was a World War II veteran, fought in many campaigns throughout Europe, grew up during the great depression, and outwardly expressed his dislike toward foreign cars; especially German and Japanese vehicles. I got along well with Randy. He was a tough guy, a throw-back from an era that believed in good old-fashion values, who loved this country and all that it stood for. Like My father, who also served in Europe during WWII, he attained the rank of Army Sergeant. Come to think of it, he was very much like my father; I guess that’s why we got along so well. I worked for Randy for three years; it was a great experience for me with fond memories that will last forever.

One thing about Randy, he did not like change. I remember one day a Volkswagen rolled up the driveway and parked in front of the bays. I could see the displeasure on his face. He ran out to the car and firmly said, “I hope you don’t expect me to work on this thing”? Then he kept silent and stared at the driver of the car. The driver of the VW said something but I couldn’t hear what was said. Randy just continued to stare and the owner finally put the car in gear and drove away. As Randy stepped back into the shop, he turned to me and said, “We are not a foreign car repair shop… never will be!”

Randy would talk about electronic ignition and how it was going to destroy the tune-up market. He also feared disc brakes, claiming that this brake system would make brakes last longer and that too will hurt business. He hated the fact that cars were mandated to have catalytic converters and other emission control devices. Randy said this will only complicate matters, make cars run worse, and accomplish nothing. Randy was a nice person and a great boss. But, like so many others, he could not accept the change that was occurring in the automotive industry.

As we fast forward to the present, it becomes apparent that our entire way of life is about change and the automotive world we once knew, no longer exists. Forty years ago, in cities across the nation, street corners were dotted with gas stations that not only sold gas but were the go-to guys for repairs and service. There were no quick lubes and new car dealers were content with their healthy car sales. We all know the demise of the corner gas station, the emergence of quick lubes, and other national accounts that make up the auto service industry. New car dealerships now understand that in order to sell cars they need to focus on the customer cycle experience. If they sell a car and somehow retain that customer in the service department, they will increase their chances to sell that customer another car in the future. Because of this, many new car dealerships are very aggressive in their marketing approach to the consumer, attempting to do what independent shops have done since the first Model T rolled off the assembly line…taking care of the customer.

Yes, the world will continue to change and it will become increasingly more difficult to compete in this market. However, if you are total car care facility today, you have a distinct advantage over your competitors; you sell tires and service, and attract the majority of the motoring public to your bays. You are the preferred choice of the motoring public, and no matter how bad things may appear in some parts of the country, you are sitting on a gold mine. Whatever the car makers throw at you, you will be ready. Let’s face it; whether it’s a hybrid, electric, or powered by hydrogen, they will all need to be serviced and repaired.

Thirty years ago, I did not start out selling tires; I was strictly an independent “repair” shop. Five years ago when I began planning to expand and open up a new facility, I studied different business models and found that the model which offered the greatest opportunity for growth, was in tires and service. I watched through the years as many capable repair shops struggled and eventually failed. Not because they were technically inept, but because they did not see the change that was occurring around them. Their focus on heavy car repairs and complicated diagnostic work actually put them at a disadvantage. It’s not that they were wrong to perform this type of work; it’s still part of what we do today. It’s just that in order to thrive today, you need to accept that you need to be profitable, and that means shifting a lot of your focus to preventive maintenance, tires, brake work, and becoming more accommodating to your customer.

My new facility model offers a mix of tires, wheel alignments, preventive maintenance, steering, suspension, brake work, and features express lanes for while-you-wait service. This new facility also serves as a feeder for my old shop where all the diagnostic work, engine work, transmissions, clutches, and other traditional repairs will be performed. This new model creates opportunity for the best of all worlds.

Modern automotive service centers can no longer rely on those traditional repairs that once dominated the business. Cars are more reliable and many of those money-making services no longer exist. But one thing they can’t take away? They all need to roll down the road and that means eventually they will all need tires and service. We will obviously need to stay ahead of the curve by continually training our people and invest in new equipment. But, the work will be there, in some form or another.

I often think back to those days working in that 2-bay gas station in the Bronx. It truly was from a much simpler time. There’s nothing wrong with reminiscing about the good old days, but time never stands still for anyone, so don’t get stuck there, you may not find your way back.