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the importance of marketing to new customers


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This week I lost 7 good customers. Not due to anything under my control, one guy had a stroke and can't drive, six professors/university faculty members moved out of state to greener pastures. The loss of these seven families probably means $15,000 a year I'm going to miss just in maintenance, maybe twice that amount. Another ten customers bought brand new cars in the last couple months with at least 3/36 warranties.

 

What I'm getting at is no matter how good your shop is doing you need to keep recruiting new customers or life's going to be tough for you.

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Ouch. That's a lot of hits in one week.

 

We're in the same boat. Downtown, urban environment = extremely transient population.

 

We keep our online reviews and presence strong, so the new transients moving in can find us.

 

There are also two major apartment complexes getting built within a half mile of us. We will be putting some postcards in their new resident welcome bags.

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Were in a college town, sad story is adjunct professors or temps are the new norm. 2 year positions mean my best customers don't stick around too long. Because I'm a newcomer to our rural area (I've only been here 11 years lol) the locals don't really come to me, they go to joes garage whom they graduated high school with in 1971. I almost cried the other day when the guy who had a stroke came in, he said "Eddie, I know your name because its on your shirt, but I don't remember you. My wife said I should stop by" this guy used to come in every week and visit mostly, we fixed his car but I think we were more friends really. Hes got to be in his 70's, I can't imagine the impact on his personal life. Enjoy life folks.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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