By Joe Marconi
The other day, a customer asked my service advisor, if he would price match a set of tires. This customer got an online quote from the internet; a local TIre Store know for discouting tires.
My rule, I don't price match. My prices are competive and fair.
Would you price match just to get the job, and sacrifice profit? Remember, no one really knows the true cost of any service or repair until the car is in the shop. So, internet quotes are not set in stone.
I was looking for some input into advertising. I have really not done any the last 25 years. We are rebranding or should I say changing directions a little. Going back to tires, brakes ,alignment and maintence. When I did it last other than the phone book we did a little newspaper. I think those have basically gone. So many options out there, I just do not want to throw a bunch of money away on the wrong advertising. Any help would surely be appreciated. Sincerely David
By Mail Shark
I hear a lot of auto repair shop owners say they don't want to offer a cheap oil change coupon on their direct mail marketing. They feel the cheap oil change coupon brings in the wrong clientele, and they don't want to devalue their brand and position themselves as the cheap oil change shop.
As a quick note, the concept behind the cheap oil change offer is that it is a loss leader and utilized to entice new customers. The key is getting new customers through the door, which the cheap oil change can be extremely effective at doing. Once you get them in your shop and you do a great job for them, you can build a great rapport with them and win them over as a loyal customer.
All that said, you will always know your business better than any marketing company. Therefore, we certainly can't argue with the fact that you would not like to use this strategy if in fact you have already executed a cheap oil change coupon campaign and it did bring in the wrong clientele.
However, having an oil change coupon as part of your shop's direct mail marketing strategy is critical. Here are a few reasons why.
An oil change is something that every non-electric vehicle owner will need at some point in time. Consequently, I would venture to say that most vehicle owners are familiar with what an oil change is more so than any other maintenance service. Compare that to a timing belt replacement coupon or a serpentine belt replacement, each of which the average consumer may not be familiar. When you have a coupon that is familiar and relevant to everyone that you are targeting, you have a much higher chance of increasing redemption rates.
Therefore, for those shop owners that are afraid of attracting the wrong clientele or devaluing their brand with a low-price point oil change, the simple fix is to increase your oil change price point to a number that you are comfortable with and that is still a value from a consumer perspective. An alternate option would be to offer a specific $ off discount that you are comfortable with — for example, $10 off any conventional oil change & 15 off any full synthetic.
My next recommendation, if you are a general auto repair shop, which is a non-negotiable one, in my opinion, is to structure your oil change coupon to offer both a conventional and full synthetic oil change offer. All too often, shop owners only offer a conventional oil change coupon. A conventional oil change coupon is fine. However, it will never appeal or be applicable to owners of vehicles that require full synthetic oil. There is no reason to limit your offer to only appeal to a specific set of vehicles. It's crucial you cast a wider net and appeal to as many vehicle owners as possible. The simple and quick solution is to offer both options.
PRO TIP: if you are concerned about coupons bringing in the wrong clientele, think again. Even the wealthiest consumers use coupons.
Here is a snippet from our blog post entitled "WHY YOU SHOULD BE SENDING DIRECT MAIL COUPONS:
It might seem surprising, but wealthy people love saving money with coupons. In fact, households with annual incomes of $100,000 or more are twice as likely to use coupons than households earning less than $35,000 a year.
Wealthy customers may be able to afford your most expensive products and services, but that doesn't mean they don't want a good deal. The majority of them are cautious about spending money and rarely make frivolous, unnecessary purchases. Rather than viewing your business as cheap, they'll appreciate your coupons and the opportunity to save money,
You can check out the entire blog post here.
Executive Vice President of Sales
Email: [email protected]
Oil Change Coupon Example.pdf
The best advertising comes in the form of referrals, which are usually free but don’t happen overnight.
Advertising is perhaps the most confusing part of owning any business, not just an auto repair business. Advertising is, to take your marketing materials and broadcast them in mediums where you anticipate your target audience. The internet has drastically changed advertising as most understand it. We used to think of advertising as the “yellow pages” and newspapers. However today, the yellow pages comes in many different forms these days. All of which promise you the world and few of which will deliver.
We recommend taking a broad approach to advertising to test what will draw in the most amount of new business to you. When thinking about how to advertise for your business, below are some suggestions to consider. First, establish a yearly/monthly budget, then to execute a plan. The most important part of your plan is to follow through on asking your new customers how they found you, that way you know what advertising is working.
Our advertising model assumes you have a few things in place, as we also discussed in Part 2: website with contact module, Google Business Page, and a Facebook Business Page.
We are firm believers that Google’s vast grasp on search is what makes it the king of advertising for now. Most people start their searches on Google, and if you’re not on Google maps and your website hasn’t been crawled by Google… you may not exist. We can argue this until the cows come home, but the truth is they hold a grasp on nearly 80% of all search in the US. Picture 10 people searching for “auto repair in my town”, nearly 8 of them are using Google. It’s much easier and fruitful to advertise to 8 out of 10 than 2 out of 10.
We are going to assume you have a $250 budget, the starter plan would be something like this:
Google Business Page – Free Facebook Business Page - Free Adwords Campaign through your Google Business Administration Page – Budget Dependent - $100 per month recommended Local Paper Advertising – Prices Vary – Assuming $100 per month This leaves you with $50 left over. Personally, we recommend a service called Yext, however we are unsure of their price these days as they have gone into a "Demo mode". This means they likely introduce you to the price after you’ve demo’d their product. For a one location auto repair business, we believe their estimated price may be over $600 a year, which kind of busts the budget a bit. But once you see how much time their platform can save you… you may reconsider.
Yext does a few great things that stand out:
They broadcast your correct business information to well over 100 directory systems, including Google and Facebook. They also allow you to make business updates from their platform and broadcast it to all the directories in the network. They manage your inbound reviews from your customers on all those platforms and immediately inform you when you receive them. They allow you to broadcast messages of specials you may want to promote. They link your business website from 100 different directories, instantly giving your business credibility online. The most underrated thing they do… is save you time from trying to log into 100 different directories and fix errors, omissions, and broadcast them all at the push of a button. Can you imagine the time it takes to create 100 different accounts and to regularly check and manage them? We did, so we tested Yext at our founder’s facility and have been a subscriber for well over 5 years now. This article originally published in CAR's News Section
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Yesterday, went for a drive through North Jersey, was very concerned to see that independent shops are putting permanent signs with the $19.95 oil change offers, the $59 A/C recharge, and the $5 dollar flat fix. This reeks of desperation, clearly the industry is coming due for a strong correction. At my shops this month we are starting to see price resistance from the lower income segment, we are having to exert price flexibility for price discovery which we are finding to be 10% to 20% from list pricing. The mid to upper segments are still going strong.