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Just wondering everyones opinion on yellow page advertising. Worth it or just basic listing? Richard
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There are many different website services, packages, and programs available when choosing the right company/webmaster for your auto repair business. You can sign up to a service that provides a robust website, SEO (Search Engine Optimization), analytics, marketing services, social network management, integrations, etc. You can also sign up for much simpler solutions which usually only include a website and some SEO. You can also try to use an online website builder to get yourself online with something very basic, which is better than nothing. So many different option and they all have their associated costs. In some cases there are initial startup costs as well. In most cases however, there are monthly costs associated with operating a business website. Please take a moment and share, if you would like, about your website costs and associated services. Please also take a moment to answer a few quick question in the attached poll. Thank you.
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Just got an email about Blue Yonder CC processing that sounds too good to be true. They say they only charge is $65 a month no start up fees, no transaction fees, no equipment fees, no hidden fees and no cancellation fees. It says it is compliant in all 50 states. Very tempting to try but I have been burned in the past. They are focusing on Auto Shop owners. Wondering what everyone else thinks about this. We would save over 10K a year. Here is the website from my email: http://autorepairblueyonder.com/
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By Bob Cooper If you speak with most shop owners they’ll tell you that they think their shop is worth x amount of money. Ask them how they came up with that number, and they’ll tell you it’s based on what they heard another shop sold for, or it’s predicated on their annual sales. But if you really want to know what your shop is worth, first of all, forget everything you’ve heard about “goodwill” and the fact that you have thousands of names in your database. That’s icing on the cake, but it’s not something a buyer can take to the bank. And although there is some value associated with some franchise names, there are two things that are most important to a buyer: the “tangible assets” and the “income history.”
Tangible assets are things like real estate, cash in the bank, secured receivables, inventory and equipment. To put it another way, these are the assets that buyers could turn into cash if they had to. When you’re establishing the value of your inventory and equipment, bear in mind that the actual appraised value may very well be far less than what you originally paid. So tangible assets are always number one.
In regard to “income history”, we all know that past performance is no guarantee of future performance, yet the substantiated income history of a company is what buyers can use to forecast earnings. And don’t forget: The amount of money the “company” made does not include any income you’ve drawn out of the company as a salary. The company’s income is the amount remaining after all expenses, including your salary, have been considered.
So imagine you’re looking to buy a shop, and let’s say the tangible assets are worth $400,000. In addition, let’s say the shop has a history of generating $100,000 in annual income after all expenses, and let’s say the owner has been drawing a salary of $80,000. So if you were to buy that shop, how much would you be willing to invest? Well, only you can answer that question, but I hope you take these 6 points into consideration:
1. If you were to liquidate after you purchased, how much could you sell the assets for? I call this the “street value” of assets.
2. How long has the company been in business, how long have the key employees been with the business, and what’s the probability that these key employees will stay on once you buy?
3. What is the probability of the company continuing to earn the same $100,000 in annual profits, and for how long?
4. In regard to the $80,000 salary the owner was taking, would you be willing to do what he or she does for the company for the same amount? Or will you be able to hire someone to do that job for the same or less?
5. If you were to invest the same amount of money in any other business or investment vehicle, would you receive a better return?
6. What are the terms of the purchase price? You may be better off to pay a higher price in return for a lower down payment, good financing rates and a non-compete.
So, how do you establish the value of your business? Not by the icing (goodwill and number of names in your database), but by looking at it through the eyes of both a banker and a buyer. Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with online and in-class sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com, or calling 800-204-3548.
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When it comes to customer complaints, most shop owners are aware that there’s some economic price they’ll ultimately have to pay for the complaint, but will typically have no idea how much each complaint actually costs. This article will aim to bring some clarity to this long-disputed issue. When a customer complains, the first direct cost that you’re going to incur is the loss of your time. This is the time you spend listening to the customer, discussing the resolution, and following up with the customer to ensure that their complaint has been properly resolved. Let’s call this direct expense “customer communication time”. I realize that the amount of time will vary with each complaint, so let’s assign 25 minutes as a realistic number for your average complaint time. These 25 minutes are comprised of 5 minutes when the customer first calls you with a complaint, 15 minutes when they return for correction or resolution, and then an additional 5 minutes for follow up.
Now let’s look at the time spent on the internal communication that comes along with each complaint. This is the time that you spend with your technicians and service advisors discussing the cause, the resolution, and the prevention of future complaints. I feel that 15 minutes is a realistic number when it comes to this internal communication. We’ll also need to consider the same amount of time, at a minimum, of an employee’s time spent to help you resolve the issue. So, your internal communication will cost you at least 30 minutes with each complaint. Let’s shift gears and talk about the cost of customer attrition, and the marketing cost that will come along with each customer complaint. Let’s presume that you run a good business, and are able to properly address each concern to retain 80% of the customers who complain. In this scenario, you’ll still be losing 20% of those customers with complaints. In other words, out of every five complaints it’s safe to say you’ll lose one customer, so you should consider the marketing cost of each complaint to be 1/5th of the cost of generating a new customer. Lastly, you need to consider the “loss of productivity” that is associated with each customer complaint. Simply put, while your employees are discussing the complaint with you, they are unable to generate additional income for the company. Based on everything we have discussed, here is the math you can use to calculate the total cost of each complaint, which you and your employees may find to be quite surprising.
Note: The below cost of customer complaints calculation is predicated on a shop labor rate of $100 per hour, the shop producing $200 per hour per technician, and the cost of generating a new customer being set at $30.
25 minutes of customer communication (25min/60min X $100) $42
30 minutes of internal communication (30min/60min X $100) $50
Direct marketing cost to replace 1 of 5 ($30/5) $6
Loss of productivity (30 min) (30min/60min X $200) $100
If you think that $198 is a big number, please bear in mind we’re talking about the cost of customer complaints themselves, not the cost of additional repairs, services etc. that need to be performed to satisfy the customer. In addition to the $198, we haven’t taken into consideration the economic damage to your reputation, the damage to employee morale, and the loss of income that is associated with the loss of the customer and/or the direct cost of any repair. This considerable cost is one reason why the industry superstars invest in training, they go the extra mile to deliver extraordinary service, and they follow up with each and every customer to ensure that they met with the customer’s expectations. These top shop owners know that they are far better off investing a little more money in their people, than they are spending that money resolving customer complaints. So do absolutely everything that you can do to provide exemplary service, and ensure that each and every customer… is a satisfied customer. Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
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By Ron Ipach
December spells the end of 2018, and hopefully you're wrapping up what was a fantastic year for your auto repair shop and business.
Now… it’s time to start thinking about how to make 2019 an EVEN BETTER year. (Heck, let’s go ahead and plan on making it your best year ever! Right?)
By attending for this special Live Online Webinar, you're going to get the proven 4-step process that will practically GUARANTEE 2019 to be a blow-out success for you.
With these four steps, you’ll be able to…
👉 ==> DOUBLE your take-home pay (Yes, that’s not a misprint. I’ll show you how.)
👉 ==> Magnetically attract more (and even better!) customers to your shop
👉 ==> Easily sell your services at higher prices than your competitors
👉 ==> Find, hire, and keep that elusive tech you’ve been searching for
👉 ==> Put the fun back into running your shop!
If you're interested... there is absolutely ZERO cost to attend this training.
All you'll need is 45 minutes of your day set aside in order to watch this webinar live.
For the dates, times, and registration details, CLICK HERE
By Joe Marconi
A few weeks back I had a problem with my refrigerator. I got a referral and called an appliance repair company. I called three times and each time I called this is what happened: "C and E appliance, please hold." I was put on hold three times for about 5 minutes. After being put on hold each time, a women would say, "What's the problem?" No engagement, no sign of interest for me the customer, no signs of caring. I gave the women a brief description of the problem and each time she told me someone would call me back. Well, no one did.
So, I called for the 4th time, and as the person answered the phone I said, "DO NOT PUT ME ON HOLD." There was silence, so I continued. I explained to her that she has spoken to me three times, I left messages three times and three times you told me that someone would call me back. She replied, "You are talking to the wrong person, if you have any complaints, write a letter to my boss, after all he won't listen to me anyway." I hung up the phone and called another company.
The lesson and takeaway here is simple: Who's answering your phone? The wrong people on the phone in your shop can kill your business. Have meetings with your people. Make sure you review your phone skills policy. If you don't have one, create one. Empower your people to people to handle issues. And make sure you log every phone call. If you feel you have a problem, start recording phone calls.
Your phone is your lifeline to future business. So, please ask yourself....Who's answering your phone?
By Ron Ipach
I'm going to go out here on a limb here and tell you -
YOUR ONLINE REVIEWS ARE THE MOST IMPORTANT FACTOR IN ATTRACTING MORE CAR COUNT!
First of all, the reviews given by your customers reveal the health of your business. If your customers aren't saying good things about you, that's a warning sign that you better get your act together right now and start providing a better experience for your customers.
Also, if you only have a few handfuls out of all the hundreds or thousands of customers you've worked saying good things - that's not a healthy sign either. They may like, or even love, doing business with you, but if they aren't telling the world (aka writing an online review), their little secret is hurting your chances to attract more car count.
You see, studies show that 92% of folks will read reviews before making a buying decision, and if you don't have a stellar reputation (4.7 or higher), they'll move on to the next shop.
In fact, I advise that you completely stay away from any form of online advertising for new customers unless your score is at least a 4.7 out of 5.0. Why? Because your prospective new customer will easily be able to compare you with everyone else and will more than likely choose the shop with the better reputation - negating all the time, money, and effort you've put into your advertising efforts.
Look, you can argue with me all you want, but we're talking human nature here. Most will always go with the higher recommended shop. Why not? If you don't have a great reputation score, all you're really doing is advertising for your competitors that do.
But your score isn't the only factor being looked at. There are actually three factors that are important about your reviews.
1. Quality (4.7 or higher overall score is needed)
2. Quantity (These days, a minimum of 75 reviews are needed, but in highly competitive areas, 150+ is needed)
3. Recency (You must be getting 1 or 2 new reviews every single week)
=== So you say you do a great job, your customers love you, but they just aren't writing those positive reviews that you need in order to let the rest of the world know how awesome you are, right? Here are three ways to get more reviews:
1. Ask. (Duh!)
2. Bribe. This has been very effective for a lot of my clients in the past, however it's also considered a no-no by the review sites and may get your account shut down if they find out.
3. Use an automated service like Soapboxx to do it for you that will email or text your customers after their service, ask if they were happy, and then send them directly to Google, Facebook, YP, or wherever you wish so they can write a quick word about their experience.
Soapboxx is the only automated review-boosting service created specifically for the auto repair industry and the beta-testing of the software has just been completed. (See just a few of the remarks from the users below) Go to www.Soapboxx.io for more details.
Check out what some of the members of the new Soapboxx platform are saying...
Whatever you choose to do, ask, bribe, or automate the whole thing - put getting more 4-5 star reviews at the top of your to-do list. It's simply the best thing you can do to help attract more car count to your shop!
By Carl Spandau
hello! i just opened a shop and am having a hard time gaining traction. im looking for some marketing techniques that work good for new business. i have tried social media and google add words with zero results. also are any of the social media marketing company's any good? the ones that call 20 times a day claiming to manage everything and create material for your pages. seems like the only people stopping by are the previous tenants customers and he did not have the best clientele. he marketed heavily discounted repairs, free estimates, bring your own parts. everything i dont want. I would appreciate any tips to getting people into my shop
my shop is a 4 bay with just me and my wife. very clean and remodeled with all the tools a shop needs except an alignment rack.
thank you for your time!