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It seems that Goodyear corporate stores are changing their business model from Tire and Repair Service centers to strictly tires. The franchise stores are free to continue their old business model. Around here, the corporate stores are going to close down on January 27 for 2-3 weeks for a major remodel and possibly? rebranding. They will sell tires and do alignments, but will not be able to align if they need repair parts. I've not seen any official statements on this, so I don't really know more than the scuttlebutt.
It looks like Hunter will have a great year this year as a result. I saw a brand new Hunter Revolution tire machine in one of the local stores already.
I stand to benefit from this change as we may see some of their repair business. Since I don't sell tires, I'm not a Goodyear competitor, which allows them to safely refer repair business to us. Almost everyone else around here sells tires. We refer quite a few folks to tire-only stores, so Goodyear will now be on my referral list.
While looking for absentee investments, I found a self-storage and Auto repair shop on sale. The purchase price is small and also cash flow is very high to ignore.
But, I am a Software Engineer and I am New to running a Business leave alone an Auto repair. The shop is 2 hrs drive from my home. The owner is ready to provide 2d/week consulting service, and lone other mechanic is ready to work with new owner. Plenty of cash transactions. No computers to log work orders. Specialist in exhaust systems. The mechanic is not insured. Shop and storage has some level of insurance. Small town and original owner ran business from the shop for 33 years. Now wants to retire.
I have plans to modernize the work orders and add cameras for remote tracking. I will have to add one more mechanic, and then trust mechanics and also introduce softwares to increase transparency.
For someone who is interested in Auto repair in general, do you think its good business to run as absentee? I plan to spend few hours at the shop once a week and less frequently later. I am 40 year old, I think right time for me to start a business and get off the corporate world.
Please advice. Appreciate.
By Joe Marconi
Here's a tip I have posted before, but it's worth repeating.
One job that goes unnoticed most of the year is the job of the part's driver. You get part deliveries all day long, every day, all year long. Many times, these part's drivers take all the abuse due to wrong parts, the parts took too long to be delivered, on and on and on. Those drivers may not say anything, but they take it to heart.
So, here's what you are going to do. Buy small gifts, such as small boxes of candy or chocolate. Nothing expensive. During the holidays, give all the drivers one of these small gifts and say "Thank you, I appreciated what you do."
Two things will happen. First, the driver will be stunned and will not know what to say, and they will be very thankful that you thought of them.
The second thing that will happen is this: The very next time those part drivers have three delivers to make at three different shops, what shop do you think they will want to go to first? Yes...Yours!
My name is Karla, I had previously owned a 3-bay mechanical repair shop in Burlington, VT for 6 years and built it to maintain an outstanding reputation and provide a comfortable income. I had the opportunity to sell my half of the business and finalized that deal this past fall. I have worked in all areas of the auto repair industry over the past 15 years, graduated from a two-year ASE certified auto tech program and went on to earn my Bachelor’s in business and a masters degree in executive leadership.
I have some capital I will be contributing to the planning and opening of a new shop and am very open to meeting potential partners/investors in all areas of the country. I greatly look forward to building something new in a location new to me.
Anyway, I’d like to welcome all /any interest and to answer any questions about joining forces in shop planning and management. Please do not hesitate to contact me, thanks for considering!
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By Joe Marconi
If there is one thing that doctors and dentists do very well, it's that they book the next appointment for their clientele. I have heard every excuse possible why many auto repair shops don’t do this. But the fact remains that everyone in your shop today will need future service and repairs. And the question is, “Are they coming back to you.”
Another reason for booking the next appointment is that there are times when not all the recommended services were done today. Some were postponed due to budget and prioritizing what’s most important. So, before that customer leaves, make sure the customer commits to a future date to have the work done. After all, why did you recommend it in the first place?
Car delivery is the time to review all the work done today, continue to build the relationship and to inform your customers of upcoming work and services. But don’t leave it to chance that the customer will remember. Be proactive, discuss future dates and put those dates in your calendar.
Lastly, call customers a few days before the appointment as a reminder. If the appointment has to be moved, then move it.
By Joe Marconi
A few years ago, some friends and I were having dinner at a local restaurant. There were six of us enjoying the food and having a great time. A few minutes after our waiter served us our coffee and dessert, the owner of the restaurant walked over to us, introduced himself and said, “I have people waiting for this table; how much longer do you think you’ll be?” Shocked by his comment, I hesitated for a second, looked up at him and said, “No worries, we’re done.” With just a few simple words, the owner of the restaurant wiped out the pleasant experience we were all having.
As we were finishing up, we couldn’t help noticing the stares from our waiter and the owner. Their eyes were laser-focused on us. They made it obvious that they wanted our table. We didn’t say anything to our waiter, or the owner. But we told each other, “We’ll think twice about coming back to this restaurant.” None of us ever did go back to that restaurant. And I heard similar complaints from other friends about that restaurant. About a year later, that restaurant closed its doors for the last time.
As a business owner, I fully understand what each table means in terms of profit. The tables at a restaurant are no different than the service bays in our business. The more people you can process through the restaurant, the more profitable the restaurant is. The more cars we can process through our service bays, the more profitable we are.
While I don’t fault the owner of the restaurant for recognizing the need to be profitable, I do fault the owner for not understanding a basic rule in achieving success in business. And that is: You build a business one customer at a time and by developing strong, long-term relationships with those customers. And to maintain that success, a business must continuously cultivate those relationships.
The owner of this restaurant didn’t get it. All of us had dined at his establishment before. The owner didn’t see us as an opportunity to strengthen the relationships. He saw the opposite. By asking for our table, he put the emphasis on his next sale and eliminated any chance of us returning again. Losing customers, and not understanding why, is the kiss of death for any small business.
What the owner determined important was profit per table, per person. The process to get people fed and done became the primary objective, when it should have been ensuring its customers were enjoying a nice meal and having a great time. It was a mistake that eventually led to his failure. Never think that customer quantity ever outweighs the quality of the customer experience. Making a memorable experience is the essence of great customer service.
If we dig a little deeper, we find another mistake made by the restaurant owner: believing that the customer experience was over when the meal was over. The meal was prepared, it was served and we consumed it. Then, at some point during the end of that process, we became an obstacle to his next sale. He failed to comprehend that the sale is not over when the meal is over, and that everything that occurs right up to the moment when a customer drives away from his parking lot will have an influence on whether that customer will return in the future.
The lesson for us is simple: Never lose sight of the importance of creating a customer. Establish a culture in your company that cultivates long-term relationships. Build a process that always strives for world-class customer service during the entire customer experience—and especially at car delivery.
Never think that when the technician completes the repair, your job is done. The customer experience continues right up until the time the customer is picking up their car. The time you spend with the customer after the repair is done is as important as making the sale.
Value each customer. Work on those relationships. Don’t worry about short term profit gain. Remember: building long-term relationships, builds long-term profit.
By the way, that restaurant has recently opened up again. My friends and I went there for dinner last Friday night. We noticed that the new owner was walking around greeting everyone. He eventually made his way to our table, introduced himself and said, “Can I get anyone anything? It’s great to see you here tonight and hope to see you again soon. Thank you.”
Now, you tell me: Do you think we’ll go back?
This story was originally published by Joe Marconi in Ratchet+Wrench on February 1st, 2019
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By Joe Marconi
In my opinion, competition is actually good for the industry, and good for your repair shop too. It keeps us focused and forces us to maintain pace with other repair shops. It drives us to take a look at our own business to see where and how we can make improvements.
Don't worry about the competition. And never compete on your competition's features. Find what sets you apart; your differentiation factor. Deliver world class service and promote your culture to your employees.
So, how do we handle the competition? Learn from them, but don't copy them. Become the best you can be. Promote a culture of customer caring with your employees. The rest will take care of itself.