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Shop Sales Goal Setting


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I am working on a white board for our shops goals for this coming June. This board will include monthly goals for sales, car count and average repair order amount.

 

As the owner I expect at least a 10% growth. My confusion is 10% over what? Last month or last June?

 

My shop seems to have a life of its own depending on the month. How about your shop?

 

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Okay... here is the story. I actually have 2 companies.

I started as RI Used Tire in 2008. In 2009 I began to add tires to a web site. My customers like it so much that I hired an outside source to help me design a database that I could easily add and subtract my tires online. 1 year later UsedTireShop.net was born. My software company has grown and grown and now we have tires shops all over the world using our software.

 

In 2014 my insurance company sent me a letter stating that I could no longer sell used or aged tires. So I switched from RI Used Tire to RI Tire and Service. At this time I was okay with it because we were under a construction nightmare and there was no way I was getting my usual 80 - 100 cars per week. There is awesome money selling used tires but you have to get at least 80 cars a week.

 

Fast forward to today and I am looking to change from RI Tire and Service to Primary Care Auto Repair. I hate selling new tires because of the low profit margin. I will be glad to get the word TIRES out of my name.

We are currently a value added shop. We pick up and deliver, We wash and vacuum every car and we have an impressive marketing program.

 

An that is my tiring life in a nutshell.

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Okay... here is the story. I actually have 2 companies.

I started as RI Used Tire in 2008. In 2009 I began to add tires to a web site. My customers like it so much that I hired an outside source to help me design a database that I could easily add and subtract my tires online. 1 year later UsedTireShop.net was born. My software company has grown and grown and now we have tires shops all over the world using our software.

 

In 2014 my insurance company sent me a letter stating that I could no longer sell used or aged tires. So I switched from RI Used Tire to RI Tire and Service. At this time I was okay with it because we were under a construction nightmare and there was no way I was getting my usual 80 - 100 cars per week. There is awesome money selling used tires but you have to get at least 80 cars a week.

 

Fast forward to today and I am looking to change from RI Tire and Service to Primary Care Auto Repair. I hate selling new tires because of the low profit margin. I will be glad to get the word TIRES out of my name.

We are currently a value added shop. We pick up and deliver, We wash and vacuum every car and we have an impressive marketing program.

 

An that is my tiring life in a nutshell.

 

I see I was just curious because about 40 percent of my business is used tire sales. I buy them by the truck load.

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I agree with bstewart, you must use the same month from the last year to set the bar. If I may say so, also keep an eye on all the necessary k.p.i.'s. Additional 10% in sales means nothing if the gross profit, cost of goods, etc are out of line. The only victory is in having all your KPI's in line AND a 10% improvement in sales. Just as important is letting your staff know what the company goals are, the plan to achieve them, and the all important WIFM.

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The 10% is what I feel is a minimum growth a shop should have.

 

 

Thanks UTS, I was just curious as to how you made your growth plans and determinations.

 

You know, given the Fed's mandates: http://www.federalreserve.gov/newsevents/speech/brainard20160603a.htm

 

 

 

This is critical for making progress on the Committee's dual mandate objectives of full employment and 2 percent inflation.

 

I was thinking that 10% growth YOY, would be extremely aggressive.

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Gotta agree with Harry. 10% is aggressive. As we get better at what we do, it will get harder to achieve big sales increases unless the plan includes expansion. We had a really great summer last year and our guys are looking at our 8% goal with some nervousness. If we achieve it, 2017 will be even tougher. You have to get buy-in from your staff on whatever goals you set. If they don't think it's possible, it probably won't happen.

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10% is achievable for us because of 2 factors.

 

1. We went from a used tire shop to a complete repair facility.

2. In 2014 and 2015 we were in the middle of a construction zone. The construction crew is still in the area but not in front of our shop. It was hell from July 10, 2014 until mid August 2015.

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  • Have you checked out Joe's Latest Blog?

         1 comment
      Have I got your attention? Great.
      Let me start by saying that I believe in giving praise when deserved and letting employees know when they dropped the ball. However, the truth is that no one enjoys being reprimanded or told they messed up.  
      The question is, what is the appropriate balance between the right amount of praise and the right amount of critical feedback? According to studies done by Harvard Business School, the ratio of praise to critical feedback should be about 6:1 – Six praises for every critical feedback. I am not sure if I agree with that.
      From personal experience, I would recommend a lot more praise. The exact ratio doesn’t matter. What’s important is that before you consider giving critical feedback, ensure you have given that employee a lot of recent praise. If not, whatever you are trying to get through to an employee, will fall on deaf ears.
      When you do have to give critical feedback, remember a few things:
      Focus on the issue or behavior; never attack the person, and remain calm in your actions and words Ask the employee for feedback, their side of the story Speak to the employee in private Address the issue soon after it happens; never wait Don’t rely on second-hand information; it’s always better if you have experienced the situation yourself that you want to correct Have an open discussion and find things that both of you can agree upon Have an action plan moving forward that the employee can take ownership of Use the experience as a learning tool Make sure you bring up positive attributes about them Remember, you don’t want the employee to be angry or upset with you; you want them to reflect on the situation and what can be improved. One last thing. Everyone makes mistakes. We need to be mindful of this.
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