By Joe Marconi
We all have those customers that focus on price alone. And we all struggle with our persistent attempts at converting them into believers. Believers of the concept that, while we cannot totally dismiss price, it’s the value of the product or service the customer needs to consider when making a purchase. What’s funny about these customers is that each visit tends to start with a complaint about price, even before the car is looked at. We recently had a situation that started off on the wrong foot, with price being the issue; but ended up a win for us, and for the customer.
Charlie Challenge (not his real name) arrived at our shop and asked for an estimate on replacing the timing chain for his Nissan Altima. My service advisor responded with, “Mr. Challenge, that’s a big job. How do you know your car needs a timing chain?” Charlie replied back, “Another shop checked it out and they told me it does. Can you please give me a price?” My advisor continued with, “Well, before we do anything, we need to perform a few tests to make sure you really do need a timing chain.” Charlie emphatically replied back, “And how much is that going to cost? All you guys want is my money! I asked for one thing; a price on a timing chain and you just want to make more money on something I already know I need!”
It took a lot of composure, but my advisor calmly stated all the reasons why testing is the best way to go, emphasizing the fact that if we replace the chain and it’s not the problem, the money spent would be wasted. Charlie shook his head, threw the keys on the counter and authorized the testing.
I’ve known Charlie for a long time. He’s not a bad guy. But price is always the topic of discussion. He has told me in the past that I should take a look at what other shops charge, and be more competitive with my prices. I have told Charlie that I don’t, and never will, price my services by what other shops are charging. I have also told him to look beyond price and look at the value you get. Besides, all the quality shops that I know are pretty much the same when it comes to pricing.
During the write-up process, Charlie revealed to my service advisor that the check engine light had been on, and that’s why he took his car to the other shop. The other shop replaced a valve timing solenoid, but that didn’t fix the problem. He was then told that the next step was to replace the chain.
Later that morning, the car was dispatched to a technician. A multipoint inspection was performed, along with all the tests related to the check engine light; which was a timing error. After the MPI and the tests were completed, we found a few things wrong with Charlie’s car. His Altima needed an oil change service, a battery, rear brakes, an air filter, the cabin filter had a mouse nest in it and the car needed an intake timing control sensor, not a timing chain. This engine has two intake control solenoids. One was supposedly replaced by the other shop. So, did this car have two bad sensors? Or was the wrong sensor replaced by mistake?
When my service advisor called Charlie to tell him the good news, he was silent for a moment. He was shocked that the car didn’t need a timing chain. He authorized the solenoid replacement, the oil change and replacing the mouse-infested cabin filter. He declined the other work.
I purposely did the follow-up call with Charlie a few days later. He was happy to hear from me and told me that car hadn’t run this good in years. I had to needle him a bit, “So Charlie, are we really expensive? We saved you a ton of money by doing the tests first and not just replacing the chain.” He said, “Ok Joe, I get it, I really do this time.”
During our conversation, Charlie did confess that he didn’t go to another shop, but actually went to that all-knowing, all-powerful place on the internet known as Google. It was Charlie that replaced the solenoid, not realizing there were two, and not knowing how to properly test the system either.
When I asked Charlie why he didn’t let us replace the battery, air filter and the rear brakes, he replied, “Joe, come on, I can do that work myself, and besides, you guys are expensive.”
Sometimes you win the battle, but it’s hard to win the war with some customers.
This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2019
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By Joe Marconi
There’s an old Japanese proverb that says, “The footsteps of the farmer are his best fertilizer.” In translation, this means that the closer you are to your crops and animals, the easier it is to observe and respond to their needs. Business owners, just as farmers, have a sixth sense about what’s happening within their company. And, for the most part, business owners are the driving force behind the success of their companies. And it’s not always because of any particular training. Many times, the mere fact that the buck stops with you gives you the mental fortitude to push forward and find solutions to daily problems. Your gut evolves into a very valuable management and survival tool.
The majority of business owners created their business with a dream and the passion to make a difference in their lives and in the automotive industry. They clearly understand the sacrifices that are needed to get a new business off the ground, and also the years of dedication it takes to reach a point where the business becomes financially stable. But, running a business takes its toll on even the toughest person, and time away from business becomes equally important. So, the question becomes, can you build your business to the point where your presence still remains when you’re away?
Before I go on, I want you to consider something—and that’s your future. I know that many of you have a young company and plan on working for decades to come. But life goes by quickly and it can also throw you a curveball. Please take my advice with this; if you’re a business owner and you are not planning for your future, you are making a big mistake. I know too many shop owners that were forced to walk away from their businesses after decades of work with nothing more than memories. Their dreams turned into nightmares due to lack of planning. Sit down and write out what your future looks like. You will probably need help with this, but you need to think about a continuity plan and an exit strategy.
OK, I got that out of the way; now back to the article. Here’s the bottom line. Taking time off and having your business run smoothly without you there should be one of your key goals. But the truth is, many shop owners can’t let go. They find it hard to take any time off, let alone leaving their baby in the hands of a manager or another key person. They even feel guilty when they’re away. And there are others who realize that in order to have a fulfilling life, the only way to continue the business is to step aside and stay away.
I don’t know what type of person you are. But what I do know with certainty after nearly 40 years in business is that, for the sake of your health and for the well-being of your family, you need to create a business that allows you the freedom to take time off. And that starts with hiring and keeping the right people; people that share your culture and work ethic. Free time away from the business also requires that you understand your numbers, can generate a consistent profit and establish strategies to continually grow the business.
Achieving your goal of taking more time off is more dependent on what you create than the actual work you do. Create a culture where people come to work because they want to. Create a management style that allows you to reach out to your employees and help them achieve the things they want out of life. Create a work environment where the people you employ feel they are part of a unified vision where everyone will enjoy the fruits of their labor. Lastly, create strong relationships with all your employees from the very first day they are hired. Building this culture will help to ensure that your employees will perform the same each day, whether you are there or not.
I know for many it will be hard to let go. After all, your business is your baby, right? You founded it; you worked hard for years and dedicated your life to it. But, every baby grows up and becomes an adult. And adults should become self-sufficient. If you build the right team with the right culture, you will gain the confidence that the people you employ can do an amazing job in your absence.
This story was originally published by Joe Marconi in Ratchet+Wrench on September 5th, 2019
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IRVINE, Calif., Sept. 30, 2019 /PRNewswire/ -- Kelley Blue Book announces its new Auto Repair Guide experience, addressing both consumer and automotive industry needs for a principal source of trustworthy recommendations related to servicing and maintaining a vehicle. The all-new experience on KBB.com guides consumers through three primary service categories: Recalls, Maintenance and Repairs. KBB.com is also including the ability to allow consumers to schedule service online through the Featured Auto Repair Center, a pilot with its sister company, Xtime.
To point consumers in the right direction, the Auto Repair Guide on KBB.com helps car owners answer their top service and repair questions: What do I need to get done? When should I get it done? Where should I get it done? How much should it cost? With this new experience, Kelley Blue Book serves as a trusted advisor that connects consumers and service departments.
Kelley Blue Book's all-new Auto Repair Guide includes:
Information on recalls, maintenance and repair work
A Fair Repair Range estimator—similar to the Kelley Blue Book Price Advisor tool—to guide consumers on service and repair price ranges, based on average dealer service pricing
The ability to schedule service appointments with local dealerships directly on KBB.com through the Featured Auto Repair Center
Kelley Blue Book, backed by more than 90 years of experience and the most trusted third-party automotive brand,1 enables both consumers and dealers to remain on the same page for pricing and now, in the service lanes with its integration with Xtime, the leading integrated software platform for retail automotive service departments.
"Car shoppers have long trusted Kelley Blue Book to provide them with vehicle values, new-car information and more," said Jim Roche, vice president at Cox Automotive. "With this new auto repair feature on KBB.com, now they can rely on Kelley Blue Book throughout the ownership experience for guidance on service and repair costs, all while experiencing the same trust and transparency they've come to expect from the brand."
Consumers have negative perceptions about getting their vehicle serviced at dealerships, citing unreasonable total cost, overcharging, and labor or parts charges among top reasons for not using their dealership service department2. In reality, common maintenance and services provided by dealerships are on par from a pricing standpoint with independent offerings3. Kelley Blue Book's new Auto Repair Guide also makes service appointment scheduling easier for both consumers and dealers. Car owners can see the Fair Repair Range, select a service provider, and book service without leaving the site. Meanwhile, the Featured Auto Repair Center can connect dealers with engaged car owners, increasing consumer trust and confidence by validating their service pricing within the Kelley Blue Book Fair Repair Range.
"The complexities of how to maintain and repair a vehicle, as well as understanding the associated costs, are a major pain point for most consumers," said Tully Williams, fixed operations director of The Niello Company in Sacramento, California. "Not only has our dealership increased service cost transparency and communication with our customers, but they also have an increased sense of trust from knowing they are being fairly charged for every service visit."
To learn more about Kelley Blue Book Auto Repair Guide visit https://www.kbb.com/auto-repair, https://www.kbb.com/car-maintenance-service and https://www.kbb.com/ownership/recalls.
For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, and follow us on Instagram at https://www.instagram.com/kbb_com/ (or @kbb_com).
About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.
About Cox Automotive
Cox Automotive Inc. makes buying, selling, owning and using cars easier for everyone. The global company's 34,000-plus team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with revenues exceeding $20 billion. coxautoinc.com
2018 Cox Automotive Car Buyer Journey Cox Automotive Service Industry Study 2018 Cox Automotive Service Industry Study 2018 SOURCE Kelley Blue Book
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"
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Accepting Credit Cards at 0% cost
Credit card fees for merchants have drastically gone up in recent years, especially for reward card purchases, making credit card fees one of businesses largest expenses. Interchange fees for reward cards have gone up by 24% in a recent 4-year period. The highest reward card fees to a merchant are now around 3% of the transaction total (not including what the markup from whomever sold you their credit card processing). Many people have probably seen Samuel L. Jackson TV commercials promoting Capital One’s Quick Silver credit card, paraquoting, “The Quick Silver credit card will give you 1.5% cash back on all of your purchases.” Who do you think is actually giving these customers 1.5% of their cash back on their credit card purchases? You guessed it- you, the merchant.
What’s a business owner to do?
Do nothing Raise the products or services prices to account for higher credit card fees Offer a cash discount Don’t accept credit cards Or, provide your customer a choice when they pay with a card to pay a surcharge or not- 0% credit card costs to the merchant All of these options have their pluses and minuses, but with the ever higher and higher fees credit cards are charging to merchants, there are other methods where technology and consumer choice can help mitigate these fees.
0% credit card cost is relatively new legal method of accepting card payments in the US. The credit card companies fought to not allow consumers a choice to pay a surcharge with credit card or zero fees with a debit card. The credit card companies make much less money with a debit card opposed to a credit card... This case went all the way to the US Supreme Court this decade. The credit card companies lost and consumers being able to choose to pay a surcharge with a credit card or zero fees with a debit card is now legal in 45 states. The remainder of the 5 states will likely be joining the other 45 states in the near future as there are still ongoing court proceedings.
The US is now following the Australian model which has been allowing merchants to surcharge since 2003. Currently, 42% of all merchants in Australia pass on a surcharge to customers who use a credit card.
Here’s an option that you might not know about, until now:
When your consumer decides to pay with a card, they have two options. If they use a credit card, a small fee will be charged to their card. If they use a debit card, there will be no fee to the consumer. Our software does all the work and explains to the customer of their choice prior to the charge being authorized.
What exactly are the costs to the merchant and to the consumer?
For credit cards: Merchant pays zero credit card fees, the consumer pays 3.5% of the transaction amount
For debit cards: Merchant pays 1% + $0.25/authorization, the consumer pays Zero fees
A card swiper is not needed: credit card information can be typed in a phone, computer over the phone and in-person. A 'brick' card swiper/dipper is available if needed.
Works with online sales/invoices
Simple application process, no upfront cost, no term contract, no cancellation fee and complies with all credit card rules and regulations
If you auto batch by 8:00 PM EST, you get your money the next day
Up-and-running within a week
Benefits to the Merchant:
Being fair to your consumer by offering them a choice to pay a fee or not, while eliminating your credit card fees, which can be up to 3% of your total credit card sales.
Simple to use and all charges are viewable through real-time online portal.
Support: our team is there when you need us, but it truly is very straight forward.
We realize this solution is not for everyone. But, you now have the opportunity to no longer pay credit card fees, forever. Reach out through ASO or here if you are interested in discussing further: https://www.lomasolutions.com/contact
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