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???
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- $200 for full detailing inside and out Connect with the show:
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Click to go to the Podcast on Remarkable Results Radio
By ASOG Podcast
Brian Walker of Shop Market Pros explaining what makes them different at the TOOLS Conference 2021.
I have an idea of a software that can be used to charge a customer a monthly fee.
For example, you could have different tiers:
Maintenance Lite - 15$ 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?
By Joe Marconi
Years back, customers brought their cars in to us 3 to 4 times a year for an oil change. About every 3 to 4,000 miles. That simple service gave us the perfect opportunity to inspect their car and sell needed services and repairs. It also sustained healthy car counts. Today, we see more and more customers ignoring the shop's windshield lube sticker, and willing to wait for that "Oil Maintenance" light to come on. Many times that could be over 10,000 miles on a Honda civic! This, plus the fact that car makers have been preaching to consumers that their cars need little to no maintenance, is a major contributing factor in lower car counts.
If shops are not taking a proactive approach and adopt a culture of total car care, shops will find it very difficult to stay profitable in the coming years. It's crucial today to educate your customers, promote preventive maintenance, perform detailed multipoint inspections on every car, and make sure you get paid what you are worth.
What tips to you have to be more proactive and maintain healthy car counts and a healthy business?