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 average age of light vehicles in operation in the U.S. has risen again as consumers continue to hold onto cars and light trucks longer.
Driven by technology and quality gains, the average age of light vehicles on U.S. roads is 11.8 years, based on a snapshot of vehicles in operation Jan. 1, an analysis by IHS Markit found. That's up from a light-vehicle population that was, on average,11.7 years old in 2018.
The number of registered light vehicles in operation in the U.S. hit a record of more than 278 million this year, an increase of more than 5.9 million, or 2.2 percent.
IHS Markit began tracking the age of vehicles in 2002, when the average age was 9.6 years.
"The average age of a vehicle has continued to grow ever since cars started coming out from Henry Ford's production line, if you will," said Mark Seng, director of the global automotive aftermarket practice at IHS Markit. "People are hanging onto them longer because they're lasting longer."
From 2002 to 2007, the average age of light vehicles in the U.S. increased 3.5 percent, he said, but from 2008 to 2013, the average age rose12.2 percent.
"We're kind of back to that same pace that we saw from 2002 to 2007," Seng said. "The average age of light vehicles in the U.S. accelerated so much because we were coming out of the Great Recession back in 2008 to 2009 and new light-vehicle sales fell like 40 percent over a two-year period. Even during the recovery years there were fewer vehicles being sold, so that just accelerated the average age of the fleets in the U.S."
For the first time, the analysis included a review of various regions around the country. The oldest light vehicles are in the West, at 12.4 years, an increase of 1.5 percent from a year earlier. The Northeast had the youngest light vehicles at 10.9 years, which increased 1.1 percent from a year earlier. Weather and road conditions, driving habits and household finances and affluence can have a major impact on the average age of vehicles in a state and region, IHS said.
IHS Markit found that the number of older cars and light trucks is growing fast, with vehicles 16 years and older expected to grow 22 percent to 74 million from 2018 to 2023.
In contrast, there were less than 35 million vehicles 16 years or older on the road in 2002, according to the analysis.
Seng said the growing number of older vehicles on the road provides more repair opportunities for dealers and aftermarket parts providers that focus on automotive service repair beyond warranty coverage.
"There's many more older vehicles on the road than there was in 2002, which means there's going to be all different kinds of repairs -- oil changes, brake jobs and new wiper blades -- that's going to be done to that vehicle cycle," he said. "That's more revenue opportunities for aftermarket repair people."
By Joe Marconi
According to Zip Recruiter, tech pay on average is about $41,000 per year. Is this an issue? I know many of you pay more than average, but do you think that we need to increase tech pay in order to attract more people to the auto repair industry. One other thing to consider, the shop and shop owner needs to be profitable and make the money first in order to pay anyone a decent wage.
As the auto industry moves on into the modern age, repair centers all around the country are experiencing pressure with the tech world and our world colliding.
We are all trailing nationwide franchises and dealerships that have endless resources working at their disposal. For most smaller auto repair businesses there isn’t enough time, money, or energy to attempt to constantly and actively secure the new business. We’re mostly worried about attempting to maintain the existing business we have, which has newer cars and increasing demands. Most of our time is now spent adjusting to the learning curve of advanced vehicle systems. However, that’s just a shop problem. The front office of your shop has its own issues to contend with that didn’t exist 15 years ago. Make no mistake about it, our industry is in the middle of a revolution and with 3D printing knocking at the door… the amount of balls to juggle are going to be considerable and it's all just getting started.
Today’s auto repair businesses need to worry about the following:
Location – Securing a proper location and the authorization to conduct business there over the long term ensures survival. Tools – Without the proper tools, we just can’t work on today’s vehicles. Training – Without the proper training, we put ourselves and our customers at high risk. Employee Engagement – Keeping your employees as interested in your success as you are is critical to the elements that keep people returning and employees from leaving. Employee Advancement – Providing an environment where employees know they can grow with your business, whether financially or moving up within the organization, is the key to keeping and securing talent. Marketing – This is the most complicated element in today’s world. It involves a mix of a strong web presence, good advertising ethics, social media profile, and following up with customers. Advertising – Can be expensive and very confusing. The best method to start is to get your feet wet with small budgets that keep your name in front of your potential customers, constantly. Software – Without good software, it is difficult to run any business. Good software is and always has been subjective. Our experiences indicate that good software saves you time and builds trust with your customers. Most importantly, it should work for you and not against you. This article originally published in CAR's News Section
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Breaker, Breaker… In my many years of repairing cars I’ve helped out a countless number of other shops with their electrical problems. Some shops I would see a few times a month, and others only once in awhile. This was years before the internet was around, and cell phones were only a fad and way to expensive to have. So, most everything was done by a land line or over the CB radio. Back in the mid 80’s and 90’s I had one shop that I talked with nearly every day. Great guys, but not so great as mechanics. The owners name was Joe. His shop was small and seemed to be a place for wayward towed vehicles and obscure customers looking for dirt cheap repairs. His main business was his tow service, and the repair shop seemed to be there just to fill in the gaps on those slow days. One afternoon I got a call from Joe about a car his crew had given up on. They threw the parts cannon at it, but couldn’t get this car to come back to life. Joe was with tows, and needed the mechanics he had to drive the other tow trucks. This particular car had been in his shop for quite some time and I don't think the customer was too happy about it. So, to speed things up a bit, he dropped it off at my shop. “I’ll be on the road all day. I've got to get back out there. I've got tows lined up all day. If you get it going, could ya run it back to my shop,” Joe said, as he made a dash for his tow truck. “No problem Joe, I’ll get right on it,” I said, just as he drove off. The car was an 80’s GM. I could see all kinds of shiny new components under the hood, and could tell they put a lot of effort into swapping parts to find out what was going on. The symptom was; if you flipped the key to the crank position it would immediately start, but die just as quickly. The parts they changed were the predictable parts cannon fodder that the typical parts slapper would try. Tune-up parts, an IAC, TPS, MAP, ECM, etc… etc… all of which might, could, should’ve, probably, maybe, and of course, eventually with enough darts thrown at it, could have hit the target and fixed it. But it didn’t. I wasn’t about to go that route. Time for some real diagnostics and not just shoot from the hip. Why not start with the basics- fuel, air, and fire. Spark was good, timing looked good, and the intake had a good air pull. I gave it a shot of carb. cleaner, and as long as I kept spraying… it kept running. Ok, time to check the fuel pressure. Interesting... there was pressure. Hmmm, now what to do? The next obvious thing (to me) was to check fuel volume. I disconnected a fuel line and gave the key a flick into start. The fuel shot out into the drainage bucket, but then trickled to a stop. I did it a second time. Not as much fuel made it out this time, but the scenario was basically the same. It was always a quick burst followed by a trickle. Maybe I should look at that gas gauge. Well, wouldn’t ya know it, the gauge is ready E. It had just enough in the tank to pressurize the fuel lines but not enough to keep it going. Might as well grab a gas can, and put some in the tank. I’ll try it again… vroom, vroom, vroom, alright! It’s running great! Looks to me as if the entire problem was that it was out of gas. However, with all the new parts they installed, I couldn’t be sure if this was the 'only' problem or an after affect of having the car in the shop so long while trying to solve another problem. It could have been any one of the other components (within reason) they changed that really 'did' need to be changed. Later that day I drove the car back to Joe’s shop. He wasn’t there, but his dispatcher was in the office sorting out tow tickets and monitoring the CB with the volume up full blast. In the background you could hear the CB chatter from all the area’s tow companies. About then I heard Joe’s voice over the CB, “Did Gonzo call yet? Need to check in on him, we need to get that car back to the owner.” “He just walked in Joe, over,” the dispatcher told him. “So what was wrong with it,” Joe asked between the squelch of the CB radio and all the other chatter from the other tow companies. The dispatcher turned to me and pointed at the mic. So, I told him . The dispatcher, with a stunned look on his face, said, “I can’t tell him that. He is going to be so pissed.” “I don’t think you should either. At least not until he gets back,” I said, while breaking into an ear to ear smile. The CB comes back to life with Joe’s voice again; “So what did he find out, over,” Joe's frustration was showing through as his voice barked out of the CB speaker. The dispatcher said to me, " Old Joe sounds pretty pissed." I don’t know whether it was the way his day was going or how much time and money he's spent on this car. Either way, he’s not going to like this answer. “Go ahead… tell him,” I said to the dispatcher, still sitting there hold the mic button, “He wants the answer, so let him have it.” “Alright, Joe, are ya ready for this, over?" the dispatcher said, then waited for a response from Joe. "Yea, go ahead, over." "It was out of gas.” A dead silence came over the CB. No chatter, nothing, not another sound for what seemed to be an eternity. Then, all hell broke loose. Tow drivers from all over the city were razing poor Joe. The CB was full of laughter and goof ball comments, but not a word from Joe. Poor Joe, you asked for it, and now you got it. “Tell Joe to stop by the shop, he can settle up with me then,” I said, while trying to hold back the laughter. As I walked out the door, the CB chatter could be heard all the way to the parking lot, and the comments were still flying. It was one of the funniest moments I’ve ever had for doing nothing more than putting gas in a car. When Joe came up to pay the bill I told him I had a little something for him. I handed him a little tiny gas can on a key chain. I figured it might be a good reminder for him to always check the basics before loading up the parts cannon again. After all these years I’m sure he hasn’t forgotten about it, and I’ll bet he doesn’t tell too many people where he got that little gas can key chain from… but now, it wouldn't be so much on the CB, but over the internet.
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By Mail Shark
Before approving your next database mailing, run down this checklist to ensure all of these steps have been taken to validate the quality and accuracy of your mailing.
Utilize the National Change of Address Service (NCOA)
Every year, millions of Americans move, and this undoubtedly includes some of the customers in your database. This can be a problem when you pull your database to use for sending out a direct mail campaign, as you may have customers that have moved and no longer live at the recorded address.
If these customers have moved outside of your trade area, and you were to send a direct mail piece to them, you would essentially be wasting your marketing dollars by sending direct mail to customers that are simply no longer there.
The good news is, there is a simple solution. You can have your direct mail partner run your database against the USPS National Change of Address (NCOA) service. The cost of doing so is very minimal and worth the small additional cost to ensure the quality and accuracy of your database.
NCOA is a database maintained by the U.S. Postal Service, and includes all of the individuals and companies who have completed a form to change their address in the previous four years.
Here are a few things you will find out by running your list through the NCOA process is:
Addressee has moved, and a new address could not be provided. New address information is provided. The recipient moved without providing a forwarding address to the USPS. From here, these previous customers that have moved can easily be removed from future mailings.
Remove Your Customers From New Acquisition Mailings
Most shop owners who are using direct mail to target their database of current customers are also sending out new customer acquisition mailers to target new prospects, either by carrier route or by specific make, model, fuel type, etc.
In doing so, it’s important that you request your direct mail partner to remove these current customers from your new customer acquisition mailers. It’s a waste of money to send your customers a new customer acquisition mailer when you are already targeting them by sending them a retention or lapsed customer mailer. It will also send your current/lapsed customers the wrong message. Your marketing and message to new customers should not be the same that it is to current or lapsed customers.
This is also an easy fix, simply request that your direct mail partner suppress your customer database from your new customer acquisition mailers. The only caveat in doing so, is for general auto shops that are removing their database of customers from their carrier route mailing—there are guidelines that must be met for carrier route mailings in order to receive the maximum discounted postage rate. These guidelines are as follows:
Your mail must be sorted in walk sequence. This is the exact order that the postal carrier walks/drives on their carrier routes. In addition, your mailing must follow the 90/75 rule. The 90/75 rule stipulates that you must mail to at least 90 percent of the total residential addresses, or at least 75 percent of the total combined number of residential and business addresses in each carrier route. Since you, as an auto shop owner will never want to mail to businesses, this means that you must mail to 90 percent of the total addresses in a carrier route to maintain the lowest postage rate.
If your mailer falls below the 90 percent guideline, there are three different levels of postage that your mailer can potentially fall into. Each level represents an additional cost of per piece postage above and beyond the standard rates.
Additional Saturation Mail Postage Rates (*As of 1/1/2019)
High density plus: Mail at least 300 pieces in walk sequence order (additional postage would be .01 per piece).
High density: Mail at least 125 pieces in walk sequence order (additional postage would be.019 per piece).
Basic: Mail at least 10 pieces in walk sequence order (additional postage would be .104 per piece).
Make Use of the Coding Accuracy Support System (CASS)
In addition to running your database through the NCOA process, it’s important to ensure your direct mail partner is also certifying your database mailing list through the Coding Accuracy Support System (CASS). This process will standardize your mailing file, verify that each and every address in your mailing file is valid and complete, as well as update any addresses that have been changed and/or has become outdated.
Executive Vice President of Sales
Email: [email protected]
By Mail Shark
I hear a lot of auto repair shop owners say they don't want to offer a cheap oil change coupon on their direct mail marketing. They feel the cheap oil change coupon brings in the wrong clientele, and they don't want to devalue their brand and position themselves as the cheap oil change shop.
As a quick note, the concept behind the cheap oil change offer is that it is a loss leader and utilized to entice new customers. The key is getting new customers through the door, which the cheap oil change can be extremely effective at doing. Once you get them in your shop and you do a great job for them, you can build a great rapport with them and win them over as a loyal customer.
All that said, you will always know your business better than any marketing company. Therefore, we certainly can't argue with the fact that you would not like to use this strategy if in fact you have already executed a cheap oil change coupon campaign and it did bring in the wrong clientele.
However, having an oil change coupon as part of your shop's direct mail marketing strategy is critical. Here are a few reasons why.
An oil change is something that every non-electric vehicle owner will need at some point in time. Consequently, I would venture to say that most vehicle owners are familiar with what an oil change is more so than any other maintenance service. Compare that to a timing belt replacement coupon or a serpentine belt replacement, each of which the average consumer may not be familiar. When you have a coupon that is familiar and relevant to everyone that you are targeting, you have a much higher chance of increasing redemption rates.
Therefore, for those shop owners that are afraid of attracting the wrong clientele or devaluing their brand with a low-price point oil change, the simple fix is to increase your oil change price point to a number that you are comfortable with and that is still a value from a consumer perspective. An alternate option would be to offer a specific $ off discount that you are comfortable with — for example, $10 off any conventional oil change & 15 off any full synthetic.
My next recommendation, if you are a general auto repair shop, which is a non-negotiable one, in my opinion, is to structure your oil change coupon to offer both a conventional and full synthetic oil change offer. All too often, shop owners only offer a conventional oil change coupon. A conventional oil change coupon is fine. However, it will never appeal or be applicable to owners of vehicles that require full synthetic oil. There is no reason to limit your offer to only appeal to a specific set of vehicles. It's crucial you cast a wider net and appeal to as many vehicle owners as possible. The simple and quick solution is to offer both options.
PRO TIP: if you are concerned about coupons bringing in the wrong clientele, think again. Even the wealthiest consumers use coupons.
Here is a snippet from our blog post entitled "WHY YOU SHOULD BE SENDING DIRECT MAIL COUPONS:
It might seem surprising, but wealthy people love saving money with coupons. In fact, households with annual incomes of $100,000 or more are twice as likely to use coupons than households earning less than $35,000 a year.
Wealthy customers may be able to afford your most expensive products and services, but that doesn't mean they don't want a good deal. The majority of them are cautious about spending money and rarely make frivolous, unnecessary purchases. Rather than viewing your business as cheap, they'll appreciate your coupons and the opportunity to save money,
You can check out the entire blog post here.
Executive Vice President of Sales
Email: [email protected]
Oil Change Coupon Example.pdf
I was looking for some input into advertising. I have really not done any the last 25 years. We are rebranding or should I say changing directions a little. Going back to tires, brakes ,alignment and maintence. When I did it last other than the phone book we did a little newspaper. I think those have basically gone. So many options out there, I just do not want to throw a bunch of money away on the wrong advertising. Any help would surely be appreciated. Sincerely David
By Mail Shark
If you haven’t considered or utilized direct mail postcard magnets to attract new customers, now is the time to reevaluate this medium.
Over the past 9 years, I have seen first-hand how effective direct mailing a postcard magnet can be for new customer acquisition as well as customer retention. The Direct Marketing Association (DMA), who is quite a credible source, also reported in their DMA Statistical Fact Book that “A postcard with a magnet attached is read at least 51.9% more often than a traditional postcard.” With that said, I cannot speak to how this study was conducted, but this directly correlates to my real-world experience mailing millions of postcard magnets for our clients over the years.
Why is now the right time to mail a postcard magnet?
Postcard magnets are effective all year round. However, now is the perfect time to capitalize on the recently released NFL schedules, which will give you a great opportunity to beat your competitors. You’ll be the first company to get your region’s favorite team schedules on the fridge of your prospective customers.
Another reason postcard magnets are so effective is this simple fact. Your target prospects may not have a broken car or need your services the exact day that you target them. Therefore, it is imperative that you are top of mind when a need arises and that’s exactly what postcard magnets accomplish. Consumers get them and intuitively put them on their fridge, keeping your brand constantly visible in their home.
There are a number of companies that offer this product so get quotes & compare services. Again, it’s the perfect is the perfect time to execute this product.
I have attached a few samples to give you a better idea of what the product can look like.
If you have any questions, please let me know.
Executive Vice President of Sales
Email: [email protected]
By Mail Shark
There’s an old adage in marketing: “features tell and benefits sell.” This is critical to keep in mind when you’re promoting your auto repair shop. If your prospective customers don’t understand the features your shop offers, how they’ll benefit from these features, and why they should consider your shop for their next repair or maintenance service, you may lose them to your competition.
The main constraint you’ll encounter when emphasizing benefits on your direct mail is usually space. There are a lot of important elements an effective direct mail advertisement should contain, all of which are fighting for valuable space. Furthermore, putting too much information on an ad can make it cluttered and hard to read, which could diminish your return. A great solution to this problem is to provide a clear, concise, and organized list of your shop’s features that can easily be scanned by your prospects.
Depending on the available space, there are two ways you can do this. If you have limited space, you can simply list your benefits out in a bulleted list. If you have extra space, you can list them out in conjunction with an icon to help illustrate the benefit and call additional attention to them.
Here’s a starting point to help you develop and build a list of your shop’s features and benefits.
-Are your technicians ASE certified?
-Do you offer a warranty on your work?
-Do you offer a 100% customer satisfaction guarantee?
-Do you offer any financing options?
-Do you offer any amenities in your waiting room?
-Do you offer any type of shuttle service or loaner car service?
-Do you offer same day service on most repairs?
-Do you offer early drop-off and/or after-hours pick-up?
-Do you offer roadside assistance?
-Do you offer online appointment scheduling?
-Are all repairs approved by your customer before any work is done?
Pro Tip: Make sure you give your list of benefits a header. Something like: “Why Choose XYZ Auto” or “Our Benefits For You.” or “10 Reasons to Choose XYZ”
Executive Vice President of Sales
Email: [email protected]