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Openbay Partners with AutoZone; Is this what we need?


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It's just beginning. AAA has partnered with Driver's Side. I got this from another shop owner.

"AAA makes a CRM deal with Driverside.com. Driverside.com is owned by Advanced Auto Parts. AAA wants to collect all member and NON-Member information from your management system. AAA wants to build brick and mortar locations to compete in the automotive service space. Does anyone else see something wrong with this picture??"

 

 

I don't think we can stop the trend of customer's looking for information online. The question becomes, How do we use the technology to help our business?

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Today's customers (generational customers) are internet savvy, however, they are NOT technical savvy when it comes to the complexities of today's modern car. But, they are willing to go to Auto Zone for their car needs, and I believe that's from years of hearing from their older siblings and parents how expensive car repair is and/or how much they believe they've been ripped by a mechanic. Not realizing their parents probably have the same level of "expertise" in the field of automotive repair. As we all know, even a simple repair can be made difficult because of a broken bolt, poor previous maintenance practices, or some screwed up aftermarket add on device. In my position, as a shop owner/mechanic I feel it is part of my job to inform them how wrong they are about comparing AZ parts to OEM. The thought of Auto Zone giving out advice on which mechanic or which shop to go to is simply absurd.

 

What I've noticed is most people will go to Auto Zone first, and after they've tried their alternator (for example) and it still doesn't fix their problem they head to a shop that ... usually...is found by word of mouth. AND, that's usually the last time they shop AZ, or at least until their memory fades to the point that they're willing to take another chance with one of their parts.

 

This whole thing sounds like some CEO's gimmick to make a fast buck. Will it draw customers? YEP, sure will... maybe once, maybe once in a while. But, the trust between a mechanic/shop and the customer is something that is earned and respected...the AZ shoppers in my opinion, are only looking for cheap... not loyalty or quality.

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One more reason not to by Autozone parts... We all already know they are attempting to destroy repair shops. It started with the "free scan" then the "loaner tool" program and now "Openbay". Okay autozone, we hear what you're saying, now go peddle your parts elsewhere.

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  • 1 month later...

You will have to forgive me for I don't see using an internet based company's valuable customer base as a bad thing. Much like the market that we work in right now, the low ball grimey shops deliver poor experiences and customers don't go back. Rack up a half dozen awful ratings and see how many jobs you get no matter how low your price is on one of these sites.

 

I don't go for the lowest price, I provide an honest fair quote and find myself among the other several shops that have done the same with great ratings. I am taking business AWAY from those grimey shops that may have otherwise got the business had the customer not used the web platform (perhaps they just called them, got a low price and went there) and saw that they sucked.

 

I also think that I tend to retain these customers better and see them more frequently for maintenance items because these online platforms almost automatically schedule routine work that they need. They are also less likely to push items out. What this means to me is that I am likely to change a particularly customer's tires an extra time or two over the many years I service them. Making up for the 10% they are asking two fold. And quotes are still provided by me, so there is nothing stopping me from quoting something $105 that would have been $100 as a walk in. Customers want to use the internet and they are okay paying for that convenience.

 

Sounds like I am alone on this?

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You will have to forgive me for I don't see using an internet based company's valuable customer base as a bad thing. Much like the market that we work in right now, the low ball grimey shops deliver poor experiences and customers don't go back. Rack up a half dozen awful ratings and see how many jobs you get no matter how low your price is on one of these sites.

 

I don't go for the lowest price, I provide an honest fair quote and find myself among the other several shops that have done the same with great ratings. I am taking business AWAY from those grimey shops that may have otherwise got the business had the customer not used the web platform (perhaps they just called them, got a low price and went there) and saw that they sucked.

 

I also think that I tend to retain these customers better and see them more frequently for maintenance items because these online platforms almost automatically schedule routine work that they need. They are also less likely to push items out. What this means to me is that I am likely to change a particularly customer's tires an extra time or two over the many years I service them. Making up for the 10% they are asking two fold. And quotes are still provided by me, so there is nothing stopping me from quoting something $105 that would have been $100 as a walk in. Customers want to use the internet and they are okay paying for that convenience.

 

Sounds like I am alone on this?

nope, we are in it too. Look, i know you old heads (no offense) dont want to see this and i have seen your reasons and they are valid. You cannot stop this, the consumer is tired of the guy that is ripping them off and they want answers. It just so happens that these "online" companys are doing what we want, gathering customers. Why would you not want to be apart of this? I am signed up with repairpal (he you cant get your pricing in between there scale then i wouldnt be taking my car to you anyway), openbay and other thing that i can get our name out there on. I give our price, if they dont want it then they move on, but we are participating. We just recently signed up with openbay and have done a few quotes, nothing has come of it but i didnt sign up to expect it. TBH i dont know what to expect from it but the internet is going to be changing things in EVERY industry and it will continue, so, again, adapt or die.

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  • 4 weeks later...

Lately our local Auto zone has been quoting labor prices, I wonder if this is the result of openbay . People call all the time, AZ says its $60 to change my xxxx. I say let AZ do it then I can't quote a price without looking at your car.

I am the same way. As soon as a customer tells me they can get it done at the shop down the road for x amount I tell them you better go back there cause that is a hell of a deal. They usually end up leaving the car or if they leave you will see them back a few hours later after they have exhausted all other options in the area. I also tend to match a customers attitude, If they come at me sort of abrasive or demanding I am the same way with them. The funny thing is when you match their attitude they seem to respond better.

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I feel most customers are more knowledgeable , also more confused. Auto Zone is in my office twice a week now. I think they know the DIYr is stopping quickly. Most of the AZ employees were working in Walmrt Produce 2 months ago. I see nothing but good times for the ethical independent shops in the next 10 years.

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The good news is the local garage can't be easily replaced. Anyone can buy pop tarts or glue at Walmart vs mom's grocery, and with no detrimental effects to the consumer. That's why mom and pop grocer's and hardware stores disappeared. Same product, easier acessability, lower prices. Walmart and AZ cannot simplify complex unique repairs. I don't forsee it happening in my lifetime. They try with batteries but even that will probably go away soon, too costly when burger man hooks up a battery wrong.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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