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Yes, I was shocked - and you will be too! The most current report from AAA reveals critical information that YOU need to know.
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"The Car Count Fixer"
Grow your Car Count, Income and Profits!
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Roughly a month ago, I went to lunch with a good friend of mine. He works for the YMCA, so we discussed what the YMCA does to attract new members. A few years ago, my friend and his team realized that while they were good at attracting new members each year, they had little to no retention. It was a constant battle to bring in new members to fill the void of lost members. The YMCA realized that it’s easier and less expensive to keep existing members, than to go out and find new ones. They created a new marketing strategy with a focus on keeping existing members. The plan was simple: create an amazing experience for their members and offer new programs to these existing members. The plan worked. Member retention improved. What worked for the YMCA will also work for your business. Before you spend a dime on advertising, you need to understand one crucial component of your business; the customer experience. Without a great customer experience that gives your existing customers a compelling reason to return, you’re simply wasting your money on advertising. Advertising is often aimed at new-customer acquisition. There is nothing wrong with this. Every business loses clientele each year for a number of reasons, and we need to get our name out to our community about who we are and what we do in order to attract new consumers. But, to rely on new customer acquisition alone without a plan to keep existing customers is not a strategy for long-term, sustained growth. Every marketing plan starts with looking at your entire operation and how it relates to the customer experience. Are you doing all you can to create an amazing experience that builds solid relationships? If not, you will be in the same position the YMCA was: using advertising to fill the void of lost customers. While there are many aspects of the customer experience, let’s focus today on the four essential areas: The customer write-up, the sales process, the car delivery and the follow-up. Each of these touch points must be executed with one thing in mind: create an experience so amazing that the customer will have a compelling reason to return your shop again. Customer write-up starts the process. It’s where you begin the relationship or continue to preserve it. It must be performed as if you are welcoming a guest into your home. The sales process must communicate value and benefits to the customer. This gives the customer peace of mind, reduces anxiety and buyer’s remorse. The car delivery is your chance to leave a lasting positive impression of you and your company. It should not be a transaction, but instead the opportunity to resell the job, you and your company. The car delivery should not be rushed. Take the time to review the invoice, ask the customer if they have any questions. Let every customer know how important they are and how much you value his or her confidence and trust in you and your company. The follow-up continues the customer experience. This is where you reach out to the customer with a phone call, email, or thank-you card. It helps with customer retention by making another positive impression in the mind of the customer. Getting back to car delivery: Make sure you review all future service recommendations and let the customer know that they will receive a service reminder. But don’t rely on a postcard or email alone to bring back customers. Think about this: If you had a bad experience at a restaurant, no offer or ad is going to get you back there—only an amazing experience will. The same holds true for your business. By the way, an amazing customer experience is created by the people in your company. Sure, you need to have a clean, well kept facility with nice amenities. But it’s the people in your company that make the difference. Billion dollar stadiums don’t win championships—it’s the quality of the players on the field that win championships. Everyone in your company is part of your marketing plan. A simple smile and hello from a technician when a customer walks past the bays can do more for your business than any ad can. Let me leave you with this thought: Customers will not remember the mass airflow sensor you installed or the exhaust leak you repaired. But they will remember their experience. A positive experience is lasting in the mind of the consumer. It’s the most powerful marketing tool you have—and it’s virtually free. This story was originally published by Joe Marconi in Ratchet+Wrench on September 1st, 2018
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What if I could show you a weird hack that will help you get more customers to say "YES" to your quote. Interested? The best part is you can start to use this hack TODAY! Watch this short video: Don't forget to tell me what you liked most about this weird hack! I read every comment!
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"The Car Count Fixer"
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Yes, that's right. You CAN steal customers... ethically and easily. I explain it all in this short video! Hope this helps! Matthew Lee
"The Car Count Fixer"
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I'll show you 6 Ways to Get More Customers in 6 Days or Less
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"The Car Count Fixer" P.S.: Join me on this training webinar this week! FixYourCarCount.com
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OK. Not to start another parts markup thread but I would like to look at this from another angle. What percentages do you aim when marking up parts when you look at the part categories?
Just an example below:
Maintenance, etc ,etc
The reason I ask is because even a standard parts pricing matrix can blow certain items out of reasonable sale price. I am aware that less expensive items can net larger profits, which also makes up for more expensive items but I am trying to see a base line of what parts markup looks like with these categories.
For those with bodyshops, here is some interesting reading:
bodyshopsolutions.com/WordPress/ John Shortell I’ve taken a part time job working at an independent body shop close to my home writing estimates and supplements and harassing insurance companies. I’ve been at it for a few months now and up until recently I haven’t seen or heard from a Progressive appraiser. Finally, several weeks ago, I had a customer who was hit by one of Progressive’s insureds. Because I’m in a different area of the state now, I’m unfamiliar with the local appraisers. More importantly, they are unfamiliar with me.Â What fun!
First let me admit that I was spoiled working at a high line dealership body shop. Those evil rich drove nice new cars that demanded nice new OEM parts. Now all I see are Honda’s and Hyundai’s. Old ones at that. I’ve never seen so many junk cars in my life. But I guess the poor have to drive too.
Anyway, I had a customer who was hit by a Progressive insured. I wrote an estimate and asked the customer to make arrangements to meet the Progressive appraiser here at my shop. Progressive people hate that. They’d rather look at the vehicle somewhere else. Any where I am not. When the Progressive appraiser showed up I knew there would be trouble. He looked to be about 12 years old. He fit Progressive’s archetype for their ideal appraiser: young, naive and no experience in the collision repair industry.
His estimate was several hundred dollars less than mine. No surprise there. But it was a small repair, and that several hundred dollars amounted to about 30% of my estimate. Of course, the labor rate was an issue, but what really got me wound up with this moronic “blend within the panel” crap. I basically told the kid he could take his “blend within the panel” and have his first sexual experience with it. I wasn’t going to accept it. There were some other issues too, and itÂ all added up to the 30% deficiency. I was beginning to lose my cool because this prepubescent putz couldn’t figure out how to meet my bottom line, so I told him to do what a lot of other appraisers do: make something up and put it on the estimate. Of course, I was being sarcastic, but being so young, this kid didn’t understand the sarcasm and took offense to my suggesting he commit fraud. Well at least the kid is honest.
I asked the kid for his appraiser’s license number and the name of his supervisor and explained that I would be filing a complaint with the insurance department, which I did immediately after he left (And don’t we all know how effective that was). I told the customer not to worry about the difference–I would take care of it. I had her sign a repair authorization, a direction to pay and a power of attorney in case I had to sue the bastards. Working at a dealership I never had the opportunity to sue an insurance company because the owner didn’t want the trouble, but now that I’m working at a small independent shop, the owner is willing to go after insurers who don’t play nice.
I spoke with the kid’s supervisor over the phone about the situation. For the record, she was very pleasant, just like talking to sweet high school girl. I didn’t meet her in person, but by the sound of her voice she was another Progressive clone–too young and inexperienced in anything to be dealing with these issues. But she promised to look into it. I knew I was wasting my time, and I was. After three days of haggling, the young girl managed to come up with another hundred dollars. She was still a couple of hundred short. I explained to her that I was going to sue her insured for the balance.Â She responded with a perkyÂ “OK” like I had just asked her if she wanted to go hang out at the mall. She was trained to perfection. Great job Progressive behavior modification department!
With little effort I was able to locate the guy who hit my customer and promptly mailed him the following letter:
A few days later I received a phone call from Mr. XXXX. He wanted to discuss the matter. I explained the situation to him in more detail, and he agreed to pay the balance owed and then deal with his insurance company. I again offered to help him in any way I could with filing a complaint with the insurance department or recovering the money from Progressive. He didn’t take me up on the offer, but he did send a check the next day. I’ve yet to hear from him or Progressive so I have no idea if he was reimbursed or not. I do know the gentleman was not too happy about having pay for repairs to someone else’s car after he had been paying premiums for liability insurance. Something tells me Mr. XXXX will be finding someone else to send his hard earned money to for insurance in the near future.
I fully expected to have to go to small claims court. I knew Progressive would not give in, and I never expected the insured to cough up the money so easily. I feel sorry for the poor bastard. But I’ll be damned if I will become a cheap whore just because Progressive is too profit driven to treat my customers fairly. It’s ironic. Progressive was started by a left wing socialist. The name Progressive is not a coincidence. This nut job and his dope smoking kid, who recently stepped down from running the company, preached the progressive movements dogma, and heavily funded many of its whacked out causes. Progressives are supposed to be more fair than the evil rich. They are supposed to care about the little guy and scorn the evil corporations, yet here they are now acting as bad as any corporation ever did. They only care about their profit and share holders. Kind of makes them big time hypocrites. Just my humble opinion.
Lesson learned? Never sell yourself short. If you’re going to be a whore, at least be a high priced whore. Stand up for yourself. Had I gone to court, I most certainly would have won. It is astonishingly easy to demonstrate to a judge how labor rates are artificially suppressed by insurers, how they manipulate the system for their corporate financial gain, and that they will do just about anything to save a buck. To be fair, I would probably do the same if I worked for Progressive or another insurance company. It is all part of their survival. When your cat eats a cute little bird, you may think it horrific, but it is only natural. And it is only natural for collision repairers to fight to survive. What is not natural is when collision repairers give up and play nice at the risk of losing everything. That’s agonizing suicide.
If you’re thinking that I spend a lot of time talking about Progressive, there’s good reason. First, they deserve it. Second, I know my audience–and it’s Progressive. For this past year, Progressive Insurance has been my number one visitor to this website. State Farm has been catching up lately. They are the top visitor this month. Way ahead of everyone else. The only other entities that generate more traffic to this site are the large ISP’s like Road Runner and AOL. I’m flattered. Hopefully some of what I talk about is subliminally sinking in.
Oh yeah, remember my prediction about CCC’s announcement that it would get rid of the prompts for bumper covers? I said it would be slow in coming. Well here we are a couple of months and updates later and it’s still there. Your complaints forced them to make a public acquiescence, but now that the hell raising has died down, no need to rush things. We’re still waiting CCC. Wassup?
One more thing. Apparently there is a lawsuit going on in Arizona against Progressive. The plaintiffs have deposed a former Progressive employee. The deposition is interesting reading. For an inside look on the pressure and incentives to steer vehicles to network shops give it a read.Â It is only a partial transcript. If anyone has the entire document or a link, please send it to me or link to it in the comments section.
By Joe Marconi
I got a call the other from a shop owner friend asking me to help calculate his labor rate. I told him that before you calculate your labor rate, you should check your labor production (also known as effective labor rate). I asked him to total up his total tech paid hours for the month and then divide those hours by his total labor dollars sold for the month.
He got back to me and was surprised that although he posted a $90.00 labor rate, his actual labor dollars per hour was only $62.00. I pointed out that this is a production problem, not a labor rate price issue.
Raising labor production is equally important as understanding what your labor rate should be. In fact, ensuring your labor production is where it should be will add much needed dollars to the bottom line.
One thing to consider; low labor production is not just the responsibility of the technician. You need to also take into account: Are you billing enough hours? Are you charging properly for diagnostic time? Are the techs waiting too long for parts or for the service advisors to sell jobs? Is there too much down time between jobs?
Look at the entire shop operations and workflow process. Each minute increase in labor production will add much needed dollars to your bottom line.