This week, I had a chance to review recent results with a private client (aka Car Count Hacker . You may find this surprising, specially when you find out the size of the shop.
I detail it all in this video.
You can see the entire video here. I welcome your comments or questions.
I welcome your comments or questions.
Hope this helps!
"The Car Count FIxer"
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I was browsing Amazon looking for something had no idea that they have privately branded motor oil now. What caught my eye was the 5W-30 full synthetic dexos 5 quart jug at $17 for high mileage cars. Thought it was interesting. Wonder who makes it for them.
So I did a little research online and found this youtube review
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.
By Mail Shark
Here’s a marketing idea I wanted to share with everyone. Auto shop owners and marketers are focused on targeting the local residential community. But what about all of the businesses that employ people who work in the area but don’t live in the area? These employees are all great prospects for auto repair services. The challenge is effectively targeting and reaching them.
One idea is to create a flyer that doubles as a break room poster. The poster should have a use case explicitly telling the business owner what you want them to do with your poster. Let them know they simply need to hang it in their break room to share the savings with their colleagues and employees.
We recommend clipless coupons or specials, which increase the lifespan of the poster and keep it intact for longer than it would if employees were tearing coupons off. Employees will simply take a picture of the coupon they want to use and show it to you upon redemption. Tear-off coupons destroy posters and ultimately result in them being thrown away as soon as the coupons, offers, or specials are torn off.
Using break room posters requires some legwork on the part of shop owners, since you’ll need to visit the businesses you want to target. However, the actual cost of the printed flyers is minimal. Let’s say you want to print 100 of them. At around $1 per piece, your total investment is $100 (give or take) depending on who does your printing.
There really is no downside to giving break room posters a shot. Put a call tracking number on your poster to keep track of anyone who comes in to redeem your coupons to track ROI. There are plenty of companies that can print cheap flyers, so call around. Attached is an example of a popular layout that Mail Shark has been supplying shops with.
Executive Vice President of Sales
Email: [email protected]
Example BreakRoom Poster.pdf
By Joe Marconi
It was a busy Friday morning when Tom called me for an update on his vehicle. I let Tom know that his car would be ready at the end of the day. There was a pause, and then he blindsided me with this, “You know, Joe, I did a little research on that water pump you’re replacing on my car. I can get that same part for $30 less. Why does your part cost so much?” I fired back at him by saying, “That’s impossible; it can’t be.” I went on and on attempting to defend myself, but I could tell I wasn’t getting through to him. After a few more words back and forth, Tom finally said, “Look, you started the job, so you might as well just finish it.”
You’re probably thinking Tom went online to check the part. Well, this happened in 1980, my first year in business, and years before the Internet, as we know it today, even existed. Tom simply called a local part store. The parts store gave him a discounted price and then figured he would challenge me.
Consumers checking your prices is nothing new—it just got a whole lot easier these days with the world wide web. Now, let’s clarify one thing: I am not going to tell in this article that there is a foolproof way to train consumers not to go online to check your prices. However, what I can tell you with certainty is that if you continue to feature products and not the customer experience, you are telling people to please check your prices.
Consider this: You’re out to dinner and you ask the waiter for the wine list. As you scan the list, you recognize a brand and then look to the right at the price. Do you Google the bottle of wine to check what you could buy it in the store? We all know that a $10 bottle of wine in the store can cost well over $40 at the restaurant.
Here’s the bottom line: The restaurant is selling more than wine and food—it’s selling the customer experience. And if all goes the way it should, we pay for the meal and the bottle of wine, even when we know the wine is priced higher than we could purchase it at the store. And, we are OK with it.
Our business is no different. We need to focus on the experience, not the products. Yes, we install water pumps, control arms and radiators. But, that’s not our main focus. Our focus is on the value and the benefits of doing business with us. Now, with that said, there’s a delicate balance between being competitive and being profitable. But, as value goes up, price becomes less of an issue.
Here’s the difference between our business and a product-driven business. When you buy a product—let’s say a watch or a cell phone—the experience lives on long after the sale. Every time you put on the watch, or use your cell phone, you are continuing the experience. And if the product is high quality, the experience gets reinforced over and over every time you use it. With auto repair, in most cases, what we do, does not live on after the sale. Once a customer leaves with a new timing belt and water pump, there’s not much about that repair that lives on in the eyes of the consumer, except the customer experience. Your entire sales process—your marketing, the look of your shop, the people you employee and every aspect of your business that the customer sees—must tell the customer that what you sell is worth the price.
Let’s remember one thing: Your prices will be challenged from time to time. So, here are a few more tips. Get the right training for your service advisors, especially in the area of customer service. Make sure your marketing and advertising communicates your brand and your culture, and please be careful with discounting. Claims that you have the best price on tires or brakes only results in consumers checking online to see if that’s true. Highlight your warranty, which has a lasting impression on the customer. Above all, communicate the benefits of doing business with your company.
Let’s get back to Tom. After 39 years, Tom and his family are still customers. I have to believe it’s because Tom appreciates the level of service we have given him throughout the years and the relationship we’ve built. Tom has learned what Warren Buffet has often said, “Price is what you pay; value is what you get.”
This story was originally published by Joe Marconi in Ratchet+Wrench on May 1st, 2019
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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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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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