Quantcast
Jump to content

Grammarly Writing Support


The #1 Writing Tool


Grammarly Writing Support

The balance between Being Competetive and Profitable

Joe Marconi
 Share

Recommended Posts

  • 2 years later...
Southeast Tire Co. Contributor

Southeast Tire Co.

Posted
Posted

In the balance between being competitive and profitable, I think it depends on the goals of the business. Profitability goals depend on the overall direction of the business as the owner sees it. While many owner's goal is to be as profitable as possible, it is not mine. My goal is growth. Growth at all costs. Being a fairly new business, I want to build a huge customer base first and make money later. As long as I am covering overhead, providing my employees with good pay and benefits, and am personally able to take a reasonable salary, I will cut prices to the bone to beat my competitors and gain their customers.

 

I can honestly say that I have never priced any service or product by a profitability projection. My prices are based on the market and I change my business to make sure it can operate under those margins. I feel that the most important thing in this economy is a strong customer base not maximizing the profit of each job/sale. While I think both can be done, I will never lose a reasonable customer to price. Never. I'll take a 15% overall profit on a tire sale if I know I gain a customer in the process.

 

I envision one day changing my business goals to maximize profit and when I do that, I will already have a strong and loyal customer base to support me. So again, I think that balance you are talking about depends on where you see your business in the future.

  • Like 1
Link to comment
Share on other sites
  • 4 weeks later...
  • 3 months later...
Brett_Duke Newbie

Brett_Duke

Posted
Posted

My first post.................... :D . In response to desperation marketing, I've been in a shop where this has happened. Empty bays, techs sleeping on their work benches.......Here comes the manager with a "new idea". " Let's start selling any and every possible Flush available." This didn't work at all, especially because most cars coming in were still under warranty and had never heard of these flushes when they brought their last 5 cars in. This kind of marketing leads to unhappy customers and unhappy techs.

Link to comment
Share on other sites
  • 5 months later...
Brianp Enthusiast

Brianp

Posted
Posted

My first post.................... :D . In response to desperation marketing, I've been in a shop where this has happened. Empty bays, techs sleeping on their work benches.......Here comes the manager with a "new idea". " Let's start selling any and every possible Flush available." This didn't work at all, especially because most cars coming in were still under warranty and had never heard of these flushes when they brought their last 5 cars in. This kind of marketing leads to unhappy customers and unhappy techs.

 

 

First I would never "sell" any unneeded service. If its a preventative fluid replacement it better need it. Like 30K transflush or ph of coolant is low. etc. The fasted way to put you out of buisness is a bad reputation. If a vehicle is in your shop on a regular basis for the maintenance then you should rarely find anything that is needed unexpectidly. Like flushes, belts etc. Those items can be predicted at an previous stage and then even posibly split up so that the customer can do them in intervals that cost less each time but are still doen in a timely fashion. Like telling them they need a transmission flush at the next oil change. or tune up at 60k. etc. This keeps the workflow nice and easily scheduled. While keeping a customer loyal and satisfied.

  • Like 1
Link to comment
Share on other sites
  • 4 years later...
KMS Collaborator

KMS

Posted
Posted

I believe in telling all customers all issues with their vehicles I see. Then, I prioritize it. Even the small concerns that aren't really an issue yet. It earns their trust, and helps them save for their next visit. Also, many times they just tell me to take care of it all now. Always put the ball in their court. I agree with not selling un-needed services. This is one of the main reasons I get calls from customer's who have their vehicle at the dealer.

  • Like 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Hey Boss, Are You Approachable?
      By Joe Marconi in Joe's Blog
         2 comments
      My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
      If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
      Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.

  • Similar Topics

    • Joe Marconi
      Why Not Give a Tech a Pay Guarantee?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      The Case for Apprenticeships: Investing in Tomorrow's Technicians Today - Chris Cotton Weekly Blitz
      By carmcapriotto
      The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
      Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:
      https://shopmarketingpros.com/chris/
      Check out their podcast here:
      https://autorepairmarketing.captivate.fm/
      If you would like to join their private Facebook group go here:
      https://www.facebook.com/groups/autorepairmarketingmastermind
      Coach Chris Cotton from Auto Fix Auto Shop Coaching introduces "The Weekly Blitz," a podcast focused on enhancing auto repair business knowledge and providing practical strategies for success. Coach Chris emphasizes the significance of apprenticeships in the auto repair industry, expressing frustration with shop owners complaining about the technician shortage without implementing apprenticeship programs.
      The benefits of apprenticeships are discussed, including bridging the skills gap, ensuring a sustained talent pipeline, reducing turnover, and providing cost-effective training. Coach Chris advises establishing a successful apprenticeship program, such as having a structured curriculum and pairing apprentices with experienced mentors. The episode concludes with a call to action for shop owners to invest in apprenticeships and support the industry's growth.
       
      Apprenticeships [00:01:10] Importance of apprenticeship programs for auto repair shop owners and the need for a sustained pipeline of talent.
       
      Bridging the Skills Gap [00:02:19] The need for technicians to possess new skills due to advancements in technology and the role of apprenticeships in acquiring these skills.
       
      Key Elements of a Successful Apprenticeship Program [00:04:38] Structured curriculum, mentoring, regular evaluation, and incorporation of soft skills in apprenticeship programs.
      Connect with Chris:
      [email protected]
      940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
      Youtube: https://bit.ly/3ClX0ae
       
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz
      Click to go to the Podcast on Remarkable Results Radio
    • Changing The Industry
      Gaining Business Acumen - What You Need to Know to Succeed
      By Changing The Industry
      Gaining Business Acumen - What You Need to Know to Succeed
    • carmcapriotto
      Today's Class: Adaptive Learning Technology [RR 879]
      By carmcapriotto
      Our panel discusses the benefits of "Today's Class" software, a key training tool for technicians and service advisors in the automotive industry. David Boyes, President of "Today's Class" explains that Today's Class uses adaptive learning technology to make training sessions accessible and tailored to the strengths and weaknesses of each team member. The episode highlights the importance of continuous training and its impact on team building and knowledge retention in the industry.
      David Boyes, President of ‘Today’s Class"  An online learning organization that has been supporting the automotive industry for more than 20 years. Rich Young, Charlie & Rays, Essex, MD Weston and Tenise Chapman, Black Hills Tire, Rapid City, SD Matt Fanslow, lead diagnostician and shop manager, Riverside Automotive, Red Wing, MN. Matt’s previous episodes HERE Matt Fanslow Podcast: Diagnosing the Aftermarket A to Z
      Show Notes
      The concept of training resume (00:01:00) Discussion on the importance of recording training attendance and assessments for technicians and shop owners. Leveraging technology for adaptive learning (00:03:42) Explanation of how adaptive learning technology is used to deliver training sessions that adjust to the strengths and weaknesses of the team. Impact of daily learning sessions and quizzes (00:06:11) Testimonials about how the daily learning sessions and quizzes have improved communication and knowledge retention among technicians. Training and Team Building (00:08:11) Discussion on the importance of training and how it leads to team building and improved knowledge levels in the shop. Motivation and Engagement (00:09:38) Exploration of how the use of technology and gamification techniques can motivate technicians and service advisors to engage in training. Adaptive Learning Engine (00:12:24) Explanation of the adaptive engine used in the training platform, which assesses individual knowledge levels and focuses on areas of weakness for personalized learning. The importance of training and knowledge reinforcement (00:16:07) Discussion on the training system that includes content, tasks, and observations, and how it helps reinforce knowledge over time. Using Today's Class for technician training (00:16:44) Examples of technicians at different levels using Today's Class for training, with a focus on electrical repairs. Benefits and challenges of implementing Today's Class (00:18:04) Discussion on the reactions and experiences of employees when implementing Today's Class in an automotive shop. The importance of grooming and teaching youth in the industry (00:24:23) Discussion on the need to bring in and develop young talent in the automotive industry. The need for effective systems to train and progress technicians (00:24:38) Exploration of the lack of good systems to take technicians from a low level to mastery, and the importance of continuous improvement. The challenge of retention rate in traditional training methods (00:26:13) Discussion on the low retention rate in conventional training methods and the potential of using technology to reinforce learning and improve retention. Training as a Tool (00:32:13) Discussion on the use of training as a tool for employee development and the challenges of getting technicians to engage in training. Recruiting Younger Technicians (00:36:45) The potential of Today's Class as a tool to attract younger technicians to the automotive industry and showcase the industry's commitment to training. Training for service writers (00:41:26) The shop owner highlights the unexpected benefits of Today's Class app in training service writers and improving their automotive knowledge and people skills.  
      Thanks to our Partner, NAPA Auto Care
       
      Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care
      Connect with the Podcast:
      -Join our Insider List: https://remarkableresults.biz/insider
      -All books mentioned on our podcasts: https://remarkableresults.biz/books
      -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
      -Buy Me a Coffee: https://www.buymeacoffee.com/carm
      -The Aftermarket Radio Network: https://aftermarketradionetwork.com
      -Special episode collections: https://remarkableresults.biz/collections
         
      Click to go to the Podcast on Remarkable Results Radio
    • Fast Free Shipping on All Orders Over $50
    • nptrb
      Understanding the Differences Between Employees and Contractors | What You Need to Know
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



  • nptrb

    6 Common Financial Statement Issues In Auto Shops (And How To Fix Them!)

    By nptrb, in Automotive Industry,

    0 comments 76 views
    Joe Marconi

    Vehicle Delivery Process: The First Step to Your Next Sale

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 122 views
    Joe Marconi

    There's No One Size Fits All Repair Shop Business Model

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 42 views

  • Our Sponsors










Main Sections

More Sections

Discussion Forums

×
×
  • Create New...