By Joe Marconi
With the COVID-19 situation, many shop owners of retirement age may be putting thier retirement plans on hold. I get this. It makes sense in many cases. But, please think about you and your family. Many shop owners have a 30, 40, even 50-year plus history in the auto business, with most of those years owning and running a shop.
If it's possible, perhaps succession plan with the right person, or hiring a general manager to run your shop is a possibility. Perhaps a family member? The key thing is to have a secure business that, if you do plan on holding on to it, will bring you an income with stress-free time away from the shop, and back to your family.
Your plans, thoughts, opinions?
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!
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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."
After years of work to get to this point, we are finally opening the doors to my new shop on Monday. I did a small friends and family test on Friday. We stubbed our toes on all procedures but the actual shop work. It was horrible, but a great learning experience. Most issues were procedural in nature, so this weekend was procedure repair. We really weren't ready to open, but it needed to happen. Still not ready on all fronts. My website is built, but awaiting my detailed review to go online. It'll happen in the next day or so. We're still buying shop tools. Many are in, but I wanted to let my staff be part of the tool choices. (Yes, we're going to have to pare back some of their big wish list).
Hiring is still ongoing. I had my 3 critical positions covered for a while now, but I still have more left to hire.
I chose Protractor as my SMS. I'm mostly happy with this decision. My biggest gripe is that the software is unforgiving of mistakes and new users make many mistakes. I now need to learn how to undo my mistakes so that the accounting part remains accurate.
Today, my entire computer network went down and it took us over 2 hours to get it back online. Next on the list is to practice recovery procedures.
One of my major marketing spend items was to be on a busy corner. It appears that this may indeed work out for us. We serviced about 9 cars on Friday and turned away about 15 drive-up customers. Have 1 appointment booked for tomorrow. Wish me luck!
By Joe Marconi
Spring is here! Market you shop in your community. Dollar for dollar, the best marketing you can do is right in your own back yard. This is the time of the year when a lot of outdoor events begin: From youth sports to adult golf games. In addition, there are fund raisers each weekend.
Find out what's going on in your community. Get involved. Sponsor a youth sport's team, sponsor a golf tournament fund raiser or other fund raiser events. Get your shop known for being part of the community, not just another repair shop. The more you stand out, the more people will take notice and stronger your business will become!