By Joe Marconi
There is a large repair shop in the mid Atlantic states (they want to remain anonymous) that just formed an alliance with a local new car dealer to service their used cars. I will change some of the details; a request from the shop owner. But, the story brings up a few interesting facts. And, the big news is: This shop is profiting from this relationship!
The shop owner was approached by the GM of the dealer to service some of the used cars they have been taken in on trade and want to sell. The dealer techs are not trained and not familiar with the different car lines, being a Chrysler-only dealership. Due to the shortage of cars these days, the dealer is taking in on trade, all makes and models and wants to sell the used cars. And we all know profitable used cars are.
The repair shop performs a multipoint, which they get paid for, and then they do many of the services and repairs, which includes tires, brakes, wheel alignments, oil changes, air and cabin filters, wipers and other simple services. Most of the cars are newer cars, and the work can be done by a GS tech.
I don't know the pricing, sorry. But, I am interested to see where this goes.
Imagine, a new car dealer asking an independent repair shop to service and repair their used car fleet???
By Joe Marconi
For the first time in a VERY LONG time, I see a lot of positive news with regard to labor rates. More and more shop owners and managers are crunching their numbers and increasing their labor rates to better ensure their companies achieves a profit and also to be able to pay their employees what they deserve.
Profit is needed in order to build for the future and to be able to attract quality people.
I really think that this is perhaps the best time in our recent history to revisit your labor rates and bottom line and adjust your rates accordingly.
Have you adjusted your labor rates recently, or plan on it?
Key Talking Points
Justin Fricke, CarTime Auto Center, Dundas, MN
Stocks around 100 cars on lot for used car business in the same building The car buying experience has changed- the market isn’t full of new vehicles anymore, prices continue to increase month to month Justin started as a technician and is now part-owner Program through junior and senior high schools called Career Tech Education- job fair day of different businesses with displays. As a business, go to schools and ask about their programs available. Consider field trip to the shop Where do kids fit? Stereotypes around the trades need to be broken in school. Don’t push the kids that are the “bad students” into the trades. It is no longer a secondary career path. Also has detail shop- $200 for full detailing inside and out Connect with the show:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Check out today's partner:
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Click to go to the Podcast on Remarkable Results Radio
By Jonathan Ganther
Hey guys. I'm new to the forum and was looking for this subject but couldn't find it. Sorry If I'm posted something that's already been discussed. I own a brake shop in Austin, TX. We do anywhere from 10-20 brake jobs a day. We only do brakes so I don't know how much full service auto shops deal with this problem but... Customers are constantly calling in claiming they've bought the best parts or they want to provide their own parts because they've done research and know what is best. This drives me crazy. First of all they don't know whats best. Then after being told no they get offended and act like tons of shops allow this. What is the best way to handle these customers? Just send them away? I'll quote them a price using our parts and they act as though its a rip off. What shops are doing this for their customers? I feel like I'm letting jobs get away from me. Any experience with this?
I have an idea of a software that can be used to charge a customer a monthly fee.
For example, you could have different tiers:
Maintenance Lite - 15$ a month: low monthly payment for all of the conventional oil changes required by the average driver each year.
Maintenance Basic - 20$ a month: Maintenance Basic includes everything you'll find in Lite, but adds... Unlimited Synthetic Oil Changes (as needed), On Rim (Seasonal) Tire Rotations (as needed), Complimentary Re-Torquing after changeover.
Maintenance Plus - 40$ a month: includes all services from Ultimate Maintenance Basic, plus the following...
- Off Rim Seasonal Tire Rotations (as needed)
- Seasonal Tire Storage
- Flat-Tire Repair (excluding roadside assistance)
- Up to four General Service Calls (diagnoses, bulb replacements, filters, etc...)
- Battery Boost/Replacement (excluding roadside assistance)
- Priority Scheduling Service (For seasonal tire changeover)
What do you think about it?
Similar Tagged Content
By Joe Marconi
For many shops, business during the winter can slow up due to a number of reasons. What I have found that works is to schedule a flood of service reminders and past recommendations to go out during the months of Jan and Feb. Maintaining touch with your existing customers is a great way to keep your shop top of mind, and it may just bring in a little extra work too.
Any winter marketing tips to share?
By Joe Marconi
2021 started off real slow, with Jan and Feb being the worst months. March to August were very good, with sales hitting our goals. September is a little slower than we like it to be, but I feel we are trending in the right direction, with customer coming back to us that we have not seen in over a year. No complaints. Could it be better, of course. But all good and moving forward!
By Joe Marconi
Anyone who knows me, knows that I am a big proponent of understanding your numbers, and the need for bottom line profit. However, we can sometimes get side-tracked by focusing too much on the numbers and not enough on people.
I have seen time and time again with struggling shops that have their numbers dialed in properly but can't achieve their goals, and the reason all too often is their culture.
Focus on people. Find out what's important to them. Your employees have dreams and goals. Find out what they are. Align their goals with company goals.
When an employee sees that by achieving company goals, they can achieve their own goals, then you have the right culture and a powerful team.
By Joe Marconi
This tip actually comes from a fellow Elite Business Coach; The Tire Rotation is the New Oil Change Service!
I agree! With extended oil changes and people waiting until the oil change maintenance light to tell them when they need an oil change, rather than your Windshield Oil Sticker, shops need a way to get people back into the bays. Also, let's face it, the average consumer DOES NOT change their oil as often as they should.
One of the best ways to get your customer to return to you is to schedule a tire rotation every six months. Wrap the tire rotation around a vehicle multipoint inspection and you now have a new powerful sales strategy and customer retention plan.
By Joe Marconi
This topic has been addressed before, but it's timeless in its importance.
Doctors, dentists, nail spas, hair dressers, pet groomers, boiler service companies, and chimney cleaning service companies all have one thing in common. They all book the next visit or service.
Want to increase future sales and smooth out the highs and lows in your schedule? Then remind each customer at care delivery of their next Oil Service and any other services that are coming due soon. Put the customer's visit in your calendar and have a process that reaches out to them when their visit is due.
REMEMBER: Every vehicle in your shop TODAY will need future services. The question is: Are they returning to you?