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Some Repair Shops slow, others busy. What gives?

Joe Marconi
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stvstbsvc Contributor

stvstbsvc

Posted
Posted

I agree - pretty strange... Been in business 24 years and we our best ever May and June, the worst July in three years (since we moved!), a record August and September and we are on track for a record October! July had people going home early - no particular change in marketing or ANYTHING. Just SLOW... And WEIRD!

Jeff Monson Apprentice

Jeff Monson

Posted
Posted

We are in the upper mid-west. It has been a very strange year for sure. After a mild winter we were slow for a few months, spring was better, summer very spotty. Now August and Sept have been record months? I wish I could put my thumb on what is going on.

mmotley Proficient

mmotley

Posted
Posted

Same. April was our best month EVER and we moved to the other side of town in the middle of the month into a new shop that was still under construction and we didn't look open. How the hell do you have record sales when you don't even look open for business? May, June, And July weren't far behind and then sales were cut in half for August and September...

 

Totally agree with what Joe said. Stay positive and continue to look for ways to improve. Building and keeping a financial cushion can make these ups and downs a little easier to ride out

Handson Contributor

Handson

Posted
Posted (edited)

I run my own internet marketing. This helps because if I zee the pile of cars running low I can jump on and throw out two or three short run ads for the weekend.

 

Make sure your not falling into the trap of turning people away when it picks up a bit. When you get busy or swamped that is the most important time to keep bringing in new cars and doing full inspections so the techs keep that constant flow.

Edited by Handson
juanpablo4219 Contributor

juanpablo4219

Posted
Posted

We're down in Brownsville, TX. we're in south Texas border with Mexico and it has been a rare year for us, since our shop is a 3yr old.

We have been growing and still have a 7% sales increase yr. to date but from late august till now, our monthly sales have been decreasing.

We're doing less than last yr. ....and as Joe said keeping positive is the best way.

It's slow but this give us the time to convert one of our bays into an state inspection station. this keep us busy and at the same time allow us to continue to provide services

 

wow, and I thought it was just us

tyrguy Collaborator

tyrguy

Posted
Posted

We were very similar for that period. Our sales were down about 30k for a month as well, but for us it was April. If April had just been equal to 2015, we would have been up as well. Currently, Our sales are down about 10% for the year. But considering one of my techs retired in April and I've elected to try and make it work with only the 2 service techs remaining and 2 tire techs I don't feel too bad.

Martin Apprentice

Martin

Posted
Posted

Many many years ago i voiced my concern that business at my shop is slow and other shops seem to have a lot of work.

Her response to me was -" Dont worry about what is happening in other peoples shops, worry about your own".

That words i took to hart and still apply that today in business today.

  • Like 2
  • 4 weeks later...
3PuttFever Enthusiast

3PuttFever

Posted
Posted

My shop is up 2% from last year despite having 24 more repair bays open up within two miles of my shop (CarX and Midas), a Big O' Tire re-open after being closed and having outlived a damaged reputation, and a very nice quick lube store inside a mile of my shop.

 

We're still missing opportunities on shocks/struts and other maintenance sales. The business is out there folks. It's finding the right people in your shop and finding the right attitude to make it happen. It's a constant battle to get staff and yourself ready to promote what is needed on customer's cars. You can't be afraid to do what is best for their cars, their time, and their safety. If we only fix what's broken we will not grow without a lot of luck.

 

I'd rather work hard than depend on luck.

  • Like 1
tdmart Rookie

tdmart

Posted
Posted

Well, after reading this thread, I feel compelled to reply. First of all, what I say may not apply to all shops but here in south central PA, some shops hardly have enough business to pay bills awhile others are swamped with work. One shop said to me recently that they are a month behind. We have been extremely busy for most of this year. Personally, I do not agree it has anything at all to do with politics. Rather, many customers are weary of shops that do less than sup par work. The slow shops here in this area are characterized by (1) not keeping up with technology (2) no current diagnostic tools or service information (3) persons working there that are filthy dirty, smoking, cussing and swearing at the job and the customer, hate the job, girly pictures on the walls, and the list could go on. Also, within the last year, there has been several good shops that have gone out of business. Our shop has benifited from this. Another thing, we get alot of business from other shops that only want to do the easy in easy out jobs. They turn away the electronic work, the diesel work, engine changes and drivetrain work. Then complain they are slow. Another thing I hear is customers complimenting to us about the upbeat happy atmosphere here. What I am getting at is that customers are weary of going to shops where they are seen as a bother and a pest. Here, we enjoy our work, my men want to be here doing what we are doing. We have alot of fun doing what we do and do not mind at all that the customer sees us this way. Due to having good service information and many diagnostic electronic tools including scan tools, lab scope, DVOM and the list goes on, we can be current and not be scared of developing technology. Another thing I see, our customers are comfortable with the relationship we have with them. We chat with them and are a part of their lives. We enjoy meeting our customers at Walmart or wherever we might be. And, I must say, we get compliments on our morals. We do not allow swearing, cussing, girly pictures, smoking, and drugs. We are intensely religious and our customers greatly appreciate that. They know they can trust us and we can trust them. So, in this Thanksgiving season, I am very grateful to my Maker for all we have. Great business, good customers and good vendors.

  • Like 3
HarrytheCarGeek Experienced

HarrytheCarGeek

Posted
Posted

Last week we went over our all time gross sales by 1.7%, and I still have a month on the year to go.

 

This should be cause for celebration, no? Well, it isn't. Profit has long ago stagnated.

 

I have mined my data, and did tremendous changes to the business, profit was helped but it required me to completely rethink and relearn about what I think I knew about this business.

 

In March I spent $20k on a EDDM campaign that NOT A SINGLE LEAD CAME THROUGH.

 

I will be generous and share this with you for my lessons learned:

 

1. Profile your customers.

 

We added fields to the customer database to fine tune the customer profile, for example, we now estimate the customer's age, number of children in the household, either if they rent or own their house, etc.

 

This helps us to better model their free cash flow and disposable income, then we compare this data to their car data points and see if we can better sell them what their car needs to be in top shape.

 

2. Advertise only where your best customer's attention is.

 

Once you have defined your best customer's profile and tested it, look toward where they spend their time and attention. One of the most curious and successful campaigns was for us to partnered with Chinese and Italian fast food places to get our message delivered, we picked up their bagging and menu printing supplies cost which carried our message to a very large industrial and commercial park area. The revenue cost is less than $3 per $100, I cannot be happier with that ROI.

 

3, Facebook, although more expensive than other mediums, we targeted people that needed their car to be compliant with emission regulations. This has been quite profitable, but the quality of customer has not been the best.

 

4. I have been able to draw many new customers from the dealer network. Profitable business, but not highly lucrative, on the plus side, less rust and more predictable turn around service which cost us less $ to deliver the service.

 

Many of my competitors have been closing, this has had a good impact on our performance. I am hopeful with the new administration we will have better incentives coming down the legislative pipe.

  • Like 1
Gary Childs Explorer

Gary Childs

Posted
Posted

Very well said Martin. We have the same standards here at my shop. My wife always tells me "you know every one around here" when we are out due to the many people that always stop us to say hello. My tech's are always singing out in the shop and when they don't the customers ask why. A good clean friendly environment makes everyone smile, looks good and is safer. We are up 9% over last year and have always grown every year for the 17 years we have been here. I do really think one of the best things a shop can do is how they treat a customer when something goes wrong or the dreaded "Come Back". If we have a return problem we drop everything right away and help that customers problem right away! They have top priority now over any other job in the shop. We let that know that too. I have found how you fix a screw up say's so much more about your integrity then anything else. Customers will brag you up more if you treat them right. By far.

  • Like 3
  • 2 weeks later...
AJFA Contributor

AJFA

Posted
Posted

We have been very busy the past few weeks. Make sure you are addressing customer concerns & beyond.

27 point check on every car with constant tech training as to what you expect, this is next weeks work & I have proven it over & again. When checks do not get done we are slow.

I tell my guys there are $100.00 dollar bills under the wipers, you just have to grab them! We sell between I would say $75.00 to $3000.00 & up on almost every car,

you need to present all issues to the customer & explain to them.

Dave

  • Like 2

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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