USA Today article (Friday September 27, 2019 by Nathan Borney - USA Today) shows that “the average age of cars and light trucks on U.S. roads reached an all time high of 11.8 years in 2018.”
The article goes on to claim... “By 2023, there will be about 84 million vehicles on the road that are at least 16 years old, reflecting a 240% increase from 35 million in 2002, according to IHS.”
Are you getting your share?
There’s only 90 days left in 2019 and the market is changing. Sorry, it HAS changed. Are you ready? Do you have your plans laid out for marketing your shop in 2020?
Auto Service Marketing - Fix Your Car Count FAST!
Hope this helps!
"The Car Count FIxer"
P.S.: Join me on YouTube at Car Count Hackers! FREE Help to grow your Car Count, Income and Profit!
P.P.S.: Like and Follow Car Count Hackers on Facebook
P.P.P.S.: Have you registered in my FREE Training? "How to Double Your Car Count in 89 Days"
The average age of light vehicles in operation in the U.S. has risen again as consumers continue to hold onto cars and light trucks longer.
Driven by technology and quality gains, the average age of light vehicles on U.S. roads is 11.8 years, based on a snapshot of vehicles in operation Jan. 1, an analysis by IHS Markit found. That's up from a light-vehicle population that was, on average,11.7 years old in 2018.
The number of registered light vehicles in operation in the U.S. hit a record of more than 278 million this year, an increase of more than 5.9 million, or 2.2 percent.
IHS Markit began tracking the age of vehicles in 2002, when the average age was 9.6 years.
"The average age of a vehicle has continued to grow ever since cars started coming out from Henry Ford's production line, if you will," said Mark Seng, director of the global automotive aftermarket practice at IHS Markit. "People are hanging onto them longer because they're lasting longer."
From 2002 to 2007, the average age of light vehicles in the U.S. increased 3.5 percent, he said, but from 2008 to 2013, the average age rose12.2 percent.
"We're kind of back to that same pace that we saw from 2002 to 2007," Seng said. "The average age of light vehicles in the U.S. accelerated so much because we were coming out of the Great Recession back in 2008 to 2009 and new light-vehicle sales fell like 40 percent over a two-year period. Even during the recovery years there were fewer vehicles being sold, so that just accelerated the average age of the fleets in the U.S."
For the first time, the analysis included a review of various regions around the country. The oldest light vehicles are in the West, at 12.4 years, an increase of 1.5 percent from a year earlier. The Northeast had the youngest light vehicles at 10.9 years, which increased 1.1 percent from a year earlier. Weather and road conditions, driving habits and household finances and affluence can have a major impact on the average age of vehicles in a state and region, IHS said.
IHS Markit found that the number of older cars and light trucks is growing fast, with vehicles 16 years and older expected to grow 22 percent to 74 million from 2018 to 2023.
In contrast, there were less than 35 million vehicles 16 years or older on the road in 2002, according to the analysis.
Seng said the growing number of older vehicles on the road provides more repair opportunities for dealers and aftermarket parts providers that focus on automotive service repair beyond warranty coverage.
"There's many more older vehicles on the road than there was in 2002, which means there's going to be all different kinds of repairs -- oil changes, brake jobs and new wiper blades -- that's going to be done to that vehicle cycle," he said. "That's more revenue opportunities for aftermarket repair people."
By Joe Marconi
It was a busy Friday morning when Tom called me for an update on his vehicle. I let Tom know that his car would be ready at the end of the day. There was a pause, and then he blindsided me with this, “You know, Joe, I did a little research on that water pump you’re replacing on my car. I can get that same part for $30 less. Why does your part cost so much?” I fired back at him by saying, “That’s impossible; it can’t be.” I went on and on attempting to defend myself, but I could tell I wasn’t getting through to him. After a few more words back and forth, Tom finally said, “Look, you started the job, so you might as well just finish it.”
You’re probably thinking Tom went online to check the part. Well, this happened in 1980, my first year in business, and years before the Internet, as we know it today, even existed. Tom simply called a local part store. The parts store gave him a discounted price and then figured he would challenge me.
Consumers checking your prices is nothing new—it just got a whole lot easier these days with the world wide web. Now, let’s clarify one thing: I am not going to tell in this article that there is a foolproof way to train consumers not to go online to check your prices. However, what I can tell you with certainty is that if you continue to feature products and not the customer experience, you are telling people to please check your prices.
Consider this: You’re out to dinner and you ask the waiter for the wine list. As you scan the list, you recognize a brand and then look to the right at the price. Do you Google the bottle of wine to check what you could buy it in the store? We all know that a $10 bottle of wine in the store can cost well over $40 at the restaurant.
Here’s the bottom line: The restaurant is selling more than wine and food—it’s selling the customer experience. And if all goes the way it should, we pay for the meal and the bottle of wine, even when we know the wine is priced higher than we could purchase it at the store. And, we are OK with it.
Our business is no different. We need to focus on the experience, not the products. Yes, we install water pumps, control arms and radiators. But, that’s not our main focus. Our focus is on the value and the benefits of doing business with us. Now, with that said, there’s a delicate balance between being competitive and being profitable. But, as value goes up, price becomes less of an issue.
Here’s the difference between our business and a product-driven business. When you buy a product—let’s say a watch or a cell phone—the experience lives on long after the sale. Every time you put on the watch, or use your cell phone, you are continuing the experience. And if the product is high quality, the experience gets reinforced over and over every time you use it. With auto repair, in most cases, what we do, does not live on after the sale. Once a customer leaves with a new timing belt and water pump, there’s not much about that repair that lives on in the eyes of the consumer, except the customer experience. Your entire sales process—your marketing, the look of your shop, the people you employee and every aspect of your business that the customer sees—must tell the customer that what you sell is worth the price.
Let’s remember one thing: Your prices will be challenged from time to time. So, here are a few more tips. Get the right training for your service advisors, especially in the area of customer service. Make sure your marketing and advertising communicates your brand and your culture, and please be careful with discounting. Claims that you have the best price on tires or brakes only results in consumers checking online to see if that’s true. Highlight your warranty, which has a lasting impression on the customer. Above all, communicate the benefits of doing business with your company.
Let’s get back to Tom. After 39 years, Tom and his family are still customers. I have to believe it’s because Tom appreciates the level of service we have given him throughout the years and the relationship we’ve built. Tom has learned what Warren Buffet has often said, “Price is what you pay; value is what you get.”
This story was originally published by Joe Marconi in Ratchet+Wrench on May 1st, 2019
View full article
Years ago my younger brother came to work for me. He didn’t know a thing about cars, but was willing to learn all he could. Teaching new techs is an art that most shop owners have to learn to do, but teaching your little brother can be a chore and can test your patience. I muddled thru it all and taught him what I could. I was sure at some point in time the two of us would butt heads like brothers will do, and he would take his new found skills and move up in the rank and files of the automotive technical world, but in the meantime it was his turn to learn from his older brother.
When he first started I would walk him through each step of how to diagnose a certain system in a car. A lot of times he would have questions, and I’d do my best to answer them. He learned quickly and was really sharp at picking up some of those little details that are harder to teach. You know things like how you held a certain wrench or used a certain tool, to you and me it’s no big deal. But to a novice, it’s a revelation, then you (I) tend to forget to mention those certain traits while you’re teaching. Mainly because you are trying to get to the solution as efficiently as possible, and you neglect to bring it up. Such as: “always test your test light connection before testing what you’re testing, or don’t forget to check for all your tools before you pull the car out of the shop….” Things like that.
One day we had a truck come in with dual fuel tanks on it. The gas gauge wasn’t working and needed some attention. This was a perfect opportunity for Junior to learn a few of my short cuts on these old models. It was an older Ford, in which the tank gauge ran thru the tank switchover button. It was rather easy to pull it out of the dash and connect to the gauge from the back of the switch.
Luckily it was the typical problem I’ve seen a hundred times in the past. The switch connections would melt and the tank wouldn’t switch from the front tank to the rear, and of course the gauge wouldn’t move either.
After locating the correct leads to the gauge and to the tanks I decided to show him how the gauge worked. I hooked up the one of the tanks to the crossover lead that would supply the signal from the tank to the gauge.
“Ya see this, that’s the lead to the fuel gauge in the dash, and this is one of the tank wires. I’ll connect these together and we should get a reading on the dash,” I told him.
He was watching intently, taking in all the wiring diagram information, the location of the wires, and how I was bypassing the switch. He was fascinated with the flow of the current and the way the gauge would respond. I even went as far as moving the gauge from full to empty by opening and closing it to a ground signal. While I had his attention I filled him in on the two types of gauges that were used back then (bimetallic and magnetic) and how low resistance on a bimetal type gauge would read near a full tank, while a magnetic gauge would read close to empty. Change the resistance and the gauge would/should read accordingly.
“So, if we put gas in the tank the gauge should move right? That way we could check the sending units in the tanks too,” he asked me.
“Great idea, grab a gas can and let’s add a few gallons,” I said, excited that he was so interested in the project.
He grabbed a can of gas and poured a few gallons in the tank. I was watching the gas guage carefully, but there was no movement. I knew I was on the right wires, but nothing was happening. Now what? Are there more problems?
“Crawl under there, and check to be sure the wire color is correct,” I yelled from the cab to him.
“Yep, it’s the right wire on the tank.”
“Well, we might have to pull the tank; it’s not changing the gauge readings up here.”
“Before we do that let’s add some more gas, maybe we didn’t add enough,” Junior tells me.
I thought I better go back and help hold the funnel, while he poured the gas in the tank. Unknowing to me, all this time my wife (who was the office manager) was listening in on the whole thing. She likes to keep tabs on me, and make sure I’m not going into one of my usual rants or having a fit because I had to explain something over and over again to little brother. This time she was standing at the corner of the shop just behind the truck with a camera. “CLICK”, I heard the camera shutter go off and she was back there laughing like there was no tomorrow.
“What’s so funny?” I asked her.
“You two idiots have been putting gas in the wrong tank. You’re on the front tank, and you’re putting gas in the rear tank,” my wife answers, laughing hysterically.
About then the camera “clicked” again… this time it was an action shot taken at precisely the exact moment when these two idiots had that dumb struck look on their faces and realized what they just did. The shot had both of us on our knees, one holding a funnel and the other with the half empty gas can, and both of us staring right into the camera lens. Couldn’t have set it up any better if you tried.
The picture clearly showed the side of the truck with both fuel tank doors visible and there was no doubt which tank we were putting in the extra gas. I guess it was one of those things I should have mentioned when we were checking the tank senders… make sure we are both on the same tank.
For years that picture hung over her desk, and anytime I thought I was so smart she would point at the photo. Usually with that typical smirk, usually shaking her finger at me and of course the laugh… she had to laugh, but it wasn’t all that funny until she had me laughing about it too. Ok, Ok, I’m not perfect... and now my little brother knows it too.
These days he’s a top notch tech at a dealership, and I have to call him on occasions for some help on how to solve things once in a while. Oh the photo… uhmmm… what photo?? Somehow it’s missing… haven’t seen the darn thing in years. But I guess I really don’t need to see the photo … the wife has a pretty good memory... she reminds me just how smart I think I am every chance she gets.
Click here to view the article
Does anybody know of any bilingual technician training programs or classes in the Phoenix area?