By Joe Marconi
We all have those customers that focus on price alone. And we all struggle with our persistent attempts at converting them into believers. Believers of the concept that, while we cannot totally dismiss price, it’s the value of the product or service the customer needs to consider when making a purchase. What’s funny about these customers is that each visit tends to start with a complaint about price, even before the car is looked at. We recently had a situation that started off on the wrong foot, with price being the issue; but ended up a win for us, and for the customer.
Charlie Challenge (not his real name) arrived at our shop and asked for an estimate on replacing the timing chain for his Nissan Altima. My service advisor responded with, “Mr. Challenge, that’s a big job. How do you know your car needs a timing chain?” Charlie replied back, “Another shop checked it out and they told me it does. Can you please give me a price?” My advisor continued with, “Well, before we do anything, we need to perform a few tests to make sure you really do need a timing chain.” Charlie emphatically replied back, “And how much is that going to cost? All you guys want is my money! I asked for one thing; a price on a timing chain and you just want to make more money on something I already know I need!”
It took a lot of composure, but my advisor calmly stated all the reasons why testing is the best way to go, emphasizing the fact that if we replace the chain and it’s not the problem, the money spent would be wasted. Charlie shook his head, threw the keys on the counter and authorized the testing.
I’ve known Charlie for a long time. He’s not a bad guy. But price is always the topic of discussion. He has told me in the past that I should take a look at what other shops charge, and be more competitive with my prices. I have told Charlie that I don’t, and never will, price my services by what other shops are charging. I have also told him to look beyond price and look at the value you get. Besides, all the quality shops that I know are pretty much the same when it comes to pricing.
During the write-up process, Charlie revealed to my service advisor that the check engine light had been on, and that’s why he took his car to the other shop. The other shop replaced a valve timing solenoid, but that didn’t fix the problem. He was then told that the next step was to replace the chain.
Later that morning, the car was dispatched to a technician. A multipoint inspection was performed, along with all the tests related to the check engine light; which was a timing error. After the MPI and the tests were completed, we found a few things wrong with Charlie’s car. His Altima needed an oil change service, a battery, rear brakes, an air filter, the cabin filter had a mouse nest in it and the car needed an intake timing control sensor, not a timing chain. This engine has two intake control solenoids. One was supposedly replaced by the other shop. So, did this car have two bad sensors? Or was the wrong sensor replaced by mistake?
When my service advisor called Charlie to tell him the good news, he was silent for a moment. He was shocked that the car didn’t need a timing chain. He authorized the solenoid replacement, the oil change and replacing the mouse-infested cabin filter. He declined the other work.
I purposely did the follow-up call with Charlie a few days later. He was happy to hear from me and told me that car hadn’t run this good in years. I had to needle him a bit, “So Charlie, are we really expensive? We saved you a ton of money by doing the tests first and not just replacing the chain.” He said, “Ok Joe, I get it, I really do this time.”
During our conversation, Charlie did confess that he didn’t go to another shop, but actually went to that all-knowing, all-powerful place on the internet known as Google. It was Charlie that replaced the solenoid, not realizing there were two, and not knowing how to properly test the system either.
When I asked Charlie why he didn’t let us replace the battery, air filter and the rear brakes, he replied, “Joe, come on, I can do that work myself, and besides, you guys are expensive.”
Sometimes you win the battle, but it’s hard to win the war with some customers.
This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2019
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USA Today article (Friday September 27, 2019 by Nathan Borney - USA Today) shows that “the average age of cars and light trucks on U.S. roads reached an all time high of 11.8 years in 2018.”
The article goes on to claim... “By 2023, there will be about 84 million vehicles on the road that are at least 16 years old, reflecting a 240% increase from 35 million in 2002, according to IHS.”
Are you getting your share?
There’s only 90 days left in 2019 and the market is changing. Sorry, it HAS changed. Are you ready? Do you have your plans laid out for marketing your shop in 2020?
Auto Service Marketing - Fix Your Car Count FAST!
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"The Car Count FIxer"
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Iv noticed over the years there are times when business/car count drops off by a huge amount all at once. Last year it was brutal in January and got worse in February. It got busier the 2nd week of March and was pretty steady the rest of the year with my best month ever in November then even topped that in December. But this year its back to the same. January came leads completely dropped out, February came and it got worse, just like last year. Now I know its just a waiting game and business will pick back up. Its not just me every shop in the area is completely empty. --- What triggers these pattern down turns? Has anyone ever figured that out? Thought?
By Joe Marconi
After 39 years in business, it's time to get serious about my exit plan. While I don't think I will ever truly retire, I do think it's time to plan the next chapter in my life. I would like to hear from shop owners out there in the same situation. What are your plans? Are you selling your repair shop? Do you have a succession plan? And are you thinking about a different line of work to keep you busy?
By Joe Marconi
If you have a repair shop business in New York State that you are looking to sell, please let me know. I will keep this strictly confidential. Criteria required, shops with 6 plus bays. Other details to be explained. Please email me: [email protected]
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By Joe Marconi
My son was an accomplished wrestler in high school, competing in the New York State Championships. He continued competing during his college years. At a major tournament, in which my son was ranked No. 1, the coached worried about his first match. In tournaments, the No. 1 ranked wrestler competes against the bottom-ranked wrestler in the first round. When I asked the coach why he worried about the bottom-ranked opponent, the coach replied, “Tough competition keeps you sharp. Weaker competition makes you complacent.”
In business, as in sports, complacency occurs when you fail to recognize the strengths of your competition—even if the competition is considered weaker than you. Complacency is caused by many reasons. It could be the result of being successful, which gives you a false sense of security that the good days will continue forever. Or, it could be that the business owner is so entrenched in the day-to-day operations that he fails to recognize the world around him. Complacency also lowers your drive and your focus. It spreads to your employees. Eventually, this will have a detrimental effect on your business.
However, loss of business due to complacency doesn’t happen overnight. It’s a slow, painful death. One day you realize that your car counts are down, your customer base is dwindling and your new customer acquisition is declining too.
Today, consumers have choice and competition is fierce. Every segment of the auto repair industry wants a piece of the service and repair pie. You need to take a long hard look at your competition, analyze it and study it. Then build a strategy around what you bring to the marketplace that will set you apart from the rest.
One thing to keep in mind: In the business world, competition is everywhere. And it’s not just other repair shops, dealerships or the tire store down the road. Your business is being judged and compared to by every experience the consumer encounters. In other words, if your customer had an amazing experience at a local restaurant, your business will be judged against that experience, too. But the question is: How should you compete?
In his book The Purple Cow, author Seth Godin makes the point that your business needs to be so remarkable, people will stop in their tracks to learn more about you. To make the cow comparison: Cows are essentially boring. They really don’t stand out. But, if you’re driving down a road and see a purple cow in a field, you’ll more than likely stop your car to take a closer look. Now ask yourself: Is your business boring? Does it have the look and feel as every other repair shop in town? What can you do to make your business so remarkable, so different, that people will stop in their tracks and take notice? This is a powerful marketing strategy.
No matter how successful your business may be, it’s wise to look at all prominent businesses in your area. Find out who they are, how they market themselves and what makes them stand out. Then, create a strategy that differentiates your business from the rest. By the way, never compete with another business by copying what it does or by the benefits it offers. Copying the competition is what many businesses do, and it’s a mistake. Studying the competition is more about learning what they do, and then finding out what makes you different. What can your business bring to the marketplace that will make people take notice? Think about the company Harley Davidson. When you drive a Harley Davidson, you drive a Harley. It’s not a motorcycle—it’s a Harley. Harley Davidson is a brand so strong, people will actually tattoo the Harley logo on their bodies. Consider Starbucks. People don’t say, “I’m going to get a cup of coffee.” They say, “I’m going to get a Starbucks.” These two companies have a unique brand identity. They stand out among the rest.
Competition is a good thing. It makes you stronger. It makes the entire business world better. It forces you to think about yourself and your brand. And by improving your brand, the customer benefits also improve, which, in turn, makes your business more successful. Never fear competition; rather, you should embrace it. Learn from it. But, remember, look for ways to set you apart from other businesses.
One last thing: Don’t focus on what you do. We all essentially do the same thing—oil services, brake work, suspension, tires and more. Think about why you are in business. It’s your culture. Think about what makes you special and communicate that to your customers and potential customers. Make that special something your purple cow.
By the way, my son took first place in that tournament. Although every match was a challenge, the two toughest matches were the final round and (you guessed it) his first match against a weaker opponent.
This story was originally published by Joe Marconi in Ratchet+Wrench on July 31st, 2019
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By Joe Marconi
I remember being at a meeting with my staff where I voiced my opinion on an important issue. When I was finished, I asked if everyone was in agreement. Everyone nodded their heads yes.
After the meeting, one of my service advisors told me that half of the employees did not agree with me. When I asked why did they agree, he replied. “You’re the boss, you intimidate others.”
This made me think about my leadership style. Being unapproachable will prevent you from hearing other opinions; which is important to the success of the company.
When speaking with your employees, ask a lot of questions. Avoid giving your opinion until you have heard from others. Praise suggestions and the opinions of others, and thank others for speaking up.
The most successful teams are those that build strategies through a collective effort.
By Joe Marconi
Can someone truly have two personalities? A real life Dr. Jekyll and Mr. Hyde—the one you see, and the one everyone else sees? I had a Dr. Jekyll and Mr. Hyde employee a number of years ago; we’ll call him Dr. J. He was my shop foreman and helped the manager run the daily operations. Dr. J was employed about five years before things began to change.
I first learned about Dr. J’s erratic behavior from a few of my employees. According to these employees, his behavior was destructive, disrespectful and rude. He never acted differently in front of me, so I had a hard time understanding what was going on. I talked to Dr. J about what others were saying, and he looked stunned.
“Joe, I really can’t tell you why anyone would be unhappy with me. I get along with everyone,” he told me.
I met with the employees who expressed concerns and let them know that I appreciated their feedback. I told them that Dr. J had been with us for a number of years and that I had never witnessed any unusual behavior from him. I tried to look at all sides and suggested that perhaps he was going through some personal issues, so let’s try to be a little more understanding.
Out of respect, the employees agreed—but not for long. I was away on a business trip when I got a disturbing text message from one of my technicians. The text read, “Joe, if you don’t do something about Dr. J, we’ll deal with it ourselves.” It was late when I got the text, but decided to call the tech anyway. He told me in great detail what Dr. J was saying and how he behaved. I was shocked by what the tech told me. Could this person be a real life Jekyll and Hyde?
It was early Monday morning, my first day back, when my office manager came into my office, closed the door behind her and said, “Joe, if you don’t do something about Dr. J, people are going to quit.” I knew at this point I had a real problem on my hands.
I brought Dr. J into my office and told him everything that I had heard. I told him that the employees did not like the way he treated them and that the harsh words he used was causing a problem with everyone. Again, Dr. J was defensive and denied everything. However, this time he told me his perspective of the situation.
According to Dr. J, the rest of the employees were not pulling their weight and that all he was trying to do was to motivate them. I tried to explain to him that criticism and harsh words are viewed as an attack. And if this strategy is repeated over and over, people will push back and shut down—the exact opposite of any intended good. I could tell by the look on Dr. J’s face that he really didn’t agree with what I was saying, but he told me that he would take my opinion under consideration.
After that meeting, I paid careful attention to Dr. J’s treatment of others. All seemed good. Then one day, I witnessed the Jekyll and Hyde persona for myself. Dr. J didn’t know I was in the front office as he lashed out at one of the technicians. The tone and the words that came out of his mouth were unacceptable and appalling. I saw firsthand what everyone in the shop was experiencing. After repeated attempts to correct his behavior, his conduct never improved. It was time to let him go.
I never found out what changed Dr. J, but I did feel confident that I gave him every opportunity to correct his behavior. While Dr. J may have fooled me initially, I have to admit that I did see that the mood of the shop was tense and morale was down. With Dr. J no longer employed, morale improved and everything went back to normal.
The workplace environment is a delicate balance between culture and production. It’s also filled with emotions. People want to rally together for the greater good. But, they also need to know that their leader protects them from any threats that attempts to harm the team. It’s also wise not to readily dismiss the concerns your employees express to you. Be on the lookout in your shop. You just might have a Dr. J of your own.
This story was originally published by Joe Marconi in Ratchet+Wrench on December 7th, 2018
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