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What percentage of total sales do you attribute to maintenance?


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  • 2 weeks later...

Depending on how you categorize your jobs and parts you should be able to extrapolate the information from your management software. I just revamped our categorization for the coming year to better illustrate our true maintenance sales (minus oil changes). Currently we are operating around 5-6% of our total gross which is extremely low. I am putting together goals and a big goal of ours is to increase maintenance. Right now I have a goal of 20% of our total gross for next year which comes to around $300k.

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  • 5 weeks later...

Depending on how you categorize your jobs and parts you should be able to extrapolate the information from your management software. I just revamped our categorization for the coming year to better illustrate our true maintenance sales (minus oil changes). Currently we are operating around 5-6% of our total gross which is extremely low. I am putting together goals and a big goal of ours is to increase maintenance. Right now I have a goal of 20% of our total gross for next year which comes to around $300k.

The lack of response to this seems to reflect the priority shops are putting in this.

 

We're looking for an a resource that will make it better than Mitchell. Tires plus and valvoline have pop ups on they're software. ..

 

Sent from my SM-N900P using Tapatalk

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The lack of response to this seems to reflect the priority shops are putting in this.

 

We're looking for an a resource that will make it better than Mitchell. Tires plus and valvoline have pop ups on they're software. ..

 

Sent from my SM-N900P using Tapatalk

 

 

Instead of relying on software or technology, I have begun training my sales staff to go through a process in checking every vehicle for needed maintenance based on mileage, history, and condition of the system from our inspection process. We have seen an uptick in maintenance and I believe we will be hitting it hard for 2016.

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A shop's maintenance profit center is one of our industry's unicorns. We chase it, continually, but are never quite able to catch it!

Our shop's maintenance revenue consistently lands at right around 20% of our total sales, and our goal is 33%.

 

It requires a commitment to ALWAYS be executing a plan that involves educating our customers on the importance of the maintenance their vehicle needs, to avoid the perception that they're being sold "work my car doesn't need".

 

The great thing about building a maintenance program, and encouraging your SA to work the system constantly, is that once you successfully educate a customer on the need for regularly scheduled maintenance, you only need to focus on showing the ongoing value of the services you provide, and it will result not only in future sales, but higher margins, and more frequent visits. (As opposed to only calling you between breakdowns)

 

So if you're only able to reach 1 out of 20 potential customers by convincing them that you're making your suggestions in their own interest long term, once that 5% gets on board...the sales derived from the repeat visits will go on auto pilot, so you can continue to focus on educating the next guest that stands in front of you.

 

Just one man's 2 cents.

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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