By Joe Marconi
We, automotive shop owners of America, must take the opportunity of a lifetime and turn it into a bunch of success stories. What opportunity? Look around you. The world is in turmoil. COVID-19, social unrest, uncertainty about the presidential election, the economy, how are we going to get out kids back to school, on and on and on.
While the world is spiraling out of control, we have the power to make big changes to our auto repair shops. And it can all be positive!
First, the average age of a car in the U.S. is about 12 years old, attaining well over 200k on the clock.
Second, Uber, taxis and limo companies are suffering. Guess why?
Third, the motoring public in the foreseeable future will be traveling by car, taking road trips like they have never did before.
Fourth, the roads are packed with motor vehicles, as more and more people prefer their own car as their primary means of transportation.
Fifth, as the cars get older and older, more of them will be out of factory warranty.
Sixth, independent auto repair shops have a vast amount of training, resources and replacement parts.
Seventh, the overwhelming majority of cars being build and sold today are still internal combustion engine powered cars. If you factor in the expected average age of car these days, we can safely bet that those gas engine cars being sold today will still be on the road in 2033 and beyond!
Eight, You need more? That's not enough!
Get your plan in place. Get your prices in line with making a profit. Don't give anything away anymore (I am mostly referring to checking, testing, diags of any sort!) Offer world class customer service. Be a leader of your employees. Show the world what you are made of!
We have a rather small waiting room and have removed a few chairs to aid in social distancing (we now have only 4 chairs total). I wanted to know if your shop is requiring customers to wear a mask while they are inside the waiting area? How is your experience? Do you have a sign up on the front door stating they must wear a mask?
Stay safe and healthy!
By Joe Marconi
In my 40 years as a shop owner, I have battled the age old dilemma: Is it my car count, my customer count or some other reason why some weeks I find it hard to hit my sales goal.
It always comes down to production. Now that's really simplifying it, I know. But, when you look at the numbers, with the right jobs and a balanced schedule, the ARO goes way up and car counts become not as important as we thought.
Another thing to consider, this is not 1995. Cars do not come in 5 to 6 times a year for an Oil Change Service. You are lucky to see some customers every 10,000 miles as they wait for that Oil Change Percentage light on their dashboard to tell them...NOW IT"S OK TO GO TO YOUR REPAIR SHOP. Isn't it funny how so many people will listen to the dash board light, and not you!
Anyway, what are your thoughts. How do you reach your weekly sales goals and what KPI's are important to you?
By Elite Worldwide Inc.
Superstar shop owner and Elite Business Development Coach Greg Skolink shares a fun tip on how to keep your shop's customers engaged on Facebook.
For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Greg through Elite Top Shop 360: One on One Coaching
View full article
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I have the hardest time understanding the ethics in this industry. It's like the auto repair industry has it's own set of ethics and expectations that are completely different than any other industry. It's absurd! Look at it:
1) Billing for 100% of Time - Lawyers do, doctors do, accountants do, plumbers do, phone companies do, and employees do...however, shops are supposed to stick to the estimate come hell or high water. Otherwise we are gouging or padding our time, or just adding random time. It's crazy! It's a double-standard that we allow to be placed on us.
2) Selling Only What Customers Need - People don't need 2 TVs, or 10 pairs of shoes, or bottled water, or Apple products, or bubble gum. Yet none of these industries are considered unethical for selling people something they don't need. Why are we unethical for selling people something they "don't need"? How did that happen? Don't go the wrong way with this...I'm not proposing telling people their car is broken when it isn't. I'm saying that right now our industry is in a position to bow to the customer any time they don't feel like the "need" a certain repair because they'll pull the unethical card on us.
3) Marking Up Parts - Why are we the only industry that is unethical for marking up things that we sell? Hardware stores do, restaurants do, plumbers do, Wal-mart does, O'Reilly's does. But for some reason, certain customers expect us to sell parts at our cost. Why not at O'Reilly's cost...or at Moog's cost? What is the ethical price? Is anyone allowed to make a profit selling parts? If so, who is and why only them? It's just crazy when I think about the unbelievable expectations people have for our industry.
Here's my theory for how we got into this position. When we are desperate for customers we'll do anything they want. And it's much easier and less risky (so we think) to give into them by knocking the price down than it is to spend time teaching them about what they just bought or are about to buy. There's so much focus on shop efficiency that we don't take the time to develop customer relationships and educate them about the benefits of buying from us.
It isn't a waste of time to teach customers about their car, to show them why we are proposing a certain repair, or to explain every item on the invoice. If we don't then people will continue to expect us to sell parts at cost, eat unexpected labor time, and not perform a proper repair all in the name of ethics.
We have to put a stop to this. Our industry generally isn't unethical (we have 7 shops in my town of 12,000 and only one is shady) but we accept that moniker. We don't have to. I certainly don't.
Does anybody else think the expectations on our industry are just plain stupid?