By Joe Marconi
New York Governor announced yesterday that the stay-home order will remain in effect until May 15th. With so many consumers not driving and so many businesses closed; sales will be a struggle for the next 4 weeks or more. Many Auto Shops across the country will be in the same boat.
Ok, that's the bad news. The good news is that you are a shop owner, and no stranger to making tough decisions and finding solutions to the most complex problems. I know this is different, but truth is we are all learning together, and we will beat this.
With that said, you will be called upon to remove the emotions from the situation and make the decisions that are best for your employees, family and for the business. You will need to look at your average sales and projected near-future sales and adjust your payroll accordingly. I hesitated for a few weeks, but then made the tough decision to cut staff to get my payroll in line with current sales. It had to be done.
You will also need to look at each line on your Profit/Loss statement and see where you can shave any expenses. Even a few percentage points can end up saving a lot of money at the end of the month.
Lastly, have daily meetings and let your remaining staff know what you are doing. Let them know that the number 1 goal is the health and welfare of everyone. Number 2: Ensure the business thrives, not just survives.
You are tough....now go make those tough decisions!
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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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 Mail Shark
If you are currently sending or considering sending out direct mail by carrier route, there is one specific type of address you should be aware of called a Drop Stop AKA Drop Address.
A Drop Stop is a “locked” location where postal carriers do not deliver mail to the individual units or boxes. They “drop” the mail in a designated location for the individual complex to distribute.
Take a look at the attached. This photo is from a client of mine from years ago that wanted to test this area and mail this specific complex that we identified to be classified as a Drop Stop.
*Although the majority of Drop Addresses are apartment complexes, the vast majority of apartment complexes are NOT considered drop address apartments.
In addition to designated apartment complexes, some other types of drop addresses are some gated communities, trailer parks, etc. There are no absolute rules or policies for establishing an address as a drop delivery location. The determination of a drop delivery location is based on several factors. It may be the choice of the recipients at the address such as for gated communities or prestigious high-rise condominiums that the residents don’t wish to have their physical address information disclosed and elect instead to have their mail distributed by their building management. Where a delivery location is defined as a business delivery point such as a trailer park, the USPS may make the determination that all mail will be delivered to a central location and the responsibility for distribution to the individual recipients will be made by other than USPS personnel.
All that said, the first step is to identify if any of the addresses in your area are classified as drop addresses. From here I typically always recommend removing these from a saturation mailer. You could have a tenant that sees a special offer and simply takes all of them or someone doesn’t like an employee at your business or had a bad experience, etc, etc. and simply takes them and dumps them in the trash.
In my opinion in 99.8% of cases it makes no sense to pay for postage on pieces that may just get dropped on a table. I’m sure you would much rather have your direct mail marketing going to a physical address that you know will get delivered into the intended recipient’s mailbox.
If you have any questions regarding Drop Addresses or would like to see if there are any in your immediate area, please let me know.
Executive Vice President of Sales
Email: [email protected]
By Ron Ipach
December spells the end of 2018, and hopefully you're wrapping up what was a fantastic year for your auto repair shop and business.
Now… it’s time to start thinking about how to make 2019 an EVEN BETTER year. (Heck, let’s go ahead and plan on making it your best year ever! Right?)
By attending for this special Live Online Webinar, you're going to get the proven 4-step process that will practically GUARANTEE 2019 to be a blow-out success for you.
With these four steps, you’ll be able to…
👉 ==> DOUBLE your take-home pay (Yes, that’s not a misprint. I’ll show you how.)
👉 ==> Magnetically attract more (and even better!) customers to your shop
👉 ==> Easily sell your services at higher prices than your competitors
👉 ==> Find, hire, and keep that elusive tech you’ve been searching for
👉 ==> Put the fun back into running your shop!
If you're interested... there is absolutely ZERO cost to attend this training.
All you'll need is 45 minutes of your day set aside in order to watch this webinar live.
For the dates, times, and registration details, CLICK HERE
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By Joe Marconi
No, I have not lost my mind. I just wanted your attention.
We all know that we have competitors. However, what we have just witnessed the past few months, due to COVID-19, gives me great hope that the independent auto repair shop is not just alive and well, but is sitting on the opportunity of a lifetime!
While many dealers and big-box franchise either scaled down or temporarily closed, the majority of auto repair shop across this great nation remained open, adjusted their expenses and payroll, and are now experiencing a surge in business. Proof positive that the reasons we will thrive is because we are still, and will always be, the preferred choice of the motoring public.
We are not a transactional, discount-driven business. We don’t hang Corporate logos above our bays. We are successful because we are part of the community. And we build relationships.
Want to really thrive past this pandemic? Become even stronger in your community. Get involved in fund raisers, and all other local events.
Great days are coming. Be part of it!
By Andrew Cutler
This is a rant, pure and simple, but I hope that it can serve as a cautionary tale for others. Unifirst came in with a proposal as the "AAA preferred uniform vendor". As we are a AAA approved shop we qualified for special pricing, almost 30% less than what we were paying at that time. We gave them our business and it has been a cluster since. It took almost 6 months for them to deliver, and when they did the sizes were all over the map. About half of my employees (and myself) had to have size changes. They embroidered all our dark shirts with dark logos and had to re-do them which took months. They actually embroidered them wrong TWICE before they got it right. My tech's shirts came back with with huge oil and rust stains after their first washing and have never been clean since. The towels are usually oily and sometimes have metal shavings in them. They routinely mis-deliver and fail to deliver uniforms, leaving techs short for the week. I've had the service manager, plant manager, and regional manager all in my office to tell me that this would all be corrected, to no avail. We have a new service starting in December and I anticipate threats to sue on the three year agreement they require. I've been cataloging, photographing and corresponding with them over the past 8 months and I am confident that we can prove that they are unable to provide anything close to the level of service they promised. I have learned, yet again, that you get what you pay for. Don't let Unifirst in the door.
By brian lorenzo
I have an opportunity to rent a 3rd location in a fairly busy area with a lot of potential. Problem is the current shop that is there owns the building and is moving 3 1/2 miles down the road will be the land lord.
Is this a good idea? anyone else have this situation?
By Elon Block
There are some interesting statistics about the industry, in this article:
What do you think the challenges and opportunities are for you and your business?