Has the Coronavirus (COVID-19) impacted your auto shop business? If it hasn't yet, it has the potential to do so soon. Please share what you are currently doing, how your business is impacted, what plans you have in place, etc.
Some things to consider:
Do you have a plan in place should you or one of your employees become ill? With school, event, and business closures, how will this affect your shop? Are you sending anything to your customers in terms of sharing your plans around keeping your customer and employees healthy and doing your part in your community? Many small and large businesses have been sending email communications to their customers. Are you marketing to your customers in terms of not delaying car repair, should there be a need to temporarily close? Are your parts suppliers sharing their plans, should the pandemic affect supply chains? Are you stocking up on business and shop necessities? Please share your experience in this topic and stay healthy!
In the media:
The coronavirus and its growing tally of sick and dead victims around the world have been roiling financial markets, prompting countless hand-washing reminders and ruining more than a few vacations, and that’s before anyone knows exactly how widespread the effect will be on the automotive industry, including your local repair shop. Source
“By mid-March, the shortage of supplies will be felt and members are projecting they’ll experience disruption through May or June,” even if operations in China soon get back to normal, said Stacey Miller, senior director of communications at the Auto Care Association, a trade group representing 150,000 auto aftermarket and service businesses. Source
By Joe Marconi
Today is the first day of summer, and we are still dealing with the dreaded COVID-19. However, there are positive indicators that business will be better than expected this summer. People will be taking more road trips, will avoid airplanes, trains and Ubers and will take to the roads in record numbers.
Gear up for a great summer and look for opportunity with each vehicle visit. Perform those multipoints as if your business depends on it….why?....Because it does!
We have a lot to be thankful for. Keep positive, be a leader and thrive!
By Joe Marconi
For many of us, it's been a wild ride the past few months. We had to take care of everything, making tough decisions, dealing with banks and the SBA and running the shop from the trenches. But, with things looking better each day, it’s time that we get back into the role of building and operating the company.
For many, the COVID-19 crisis is far from over. However, the sooner we begin to adjust and build for the future, the better off we will be.
Shop Owners are among the hardest working people on the planet. We find ways to get through the most difficult situations. I have no doubt that the lesson’s learned from this crisis will make us stronger and more successful.
Is your business down 40 or 50% like many on this forum? If so, I have an idea to help a bit now, but especially in the future. And even help the impression of our industry.
You probably have more time available to spend with your customers. It’s the perfect time to build or cement a great relationship, to create that illusive trust with your customer, that’s mentioned in just about every trade magazine, but they never tell you how. May I suggest “The How” that I’ve been using for years? This will be handy now and in the future when this is over.
Learn more about your customers. Become “friends.” Talk about everything: the lousy situation we’re in, ask about their job, their kids, their past vacation, their future vacations, their weekend jaunts. Exchange good news. Exchange not-so-good news. Listen. Talk about what comes up.
I treat our customers like friends, like former high school friends. And these friends know we have to make a profit (EVERYBODY knows that!)
For me, it’s a given that we’re going to take care of their car. If they tell me their dad just went into the hospital or nursing home, we’re done talking about their car. I ask, “How’s dad?”
But still do your (digital) inspections. And write down everything, even the stuff that can wait six to nine months. This may affect the service writer or shop’s approval percentage, but so what! Your percentage will be lower, but you will do more work on the car this way. (Notice that I didn’t say you would sell more work. I don’t “sell.”) No decision now on the future stuff, it can wait.
If their car came in with a problem, this is what will fix it (there’s no selling: this is the solution). I point out the other thing that needs attention now. There will be some explanation, but no selling: it needs it. No decision for the customer, actually. Their car needs it.
Next I say, “Here are the things that can wait six to nine months, but I want you to be aware so there are fewer surprises.” No selling, no decisions on their part. Plus, I’m the trustworthy guy who’s telling them they don’t need everything now.
“Now let’s come up with a plan for these other things I found about your car.” I’m explaining, not selling. “You can do these now or in two or three months.” NOBODY wants to come back in two or three months so they are leaning in that direction, but no pressure from you. They will probably ask; “What would you do?” I say, “If you hate bringing your car in, do it now.” (this is where you would bring in a little value, benefits and safety) Again, not selling, suggesting; letting them make the decision. Notice that the first two issues didn’t involve them making a dreaded decision: It needs this, doesn’t need that.
If your inspection has 5 things, they will do 2 to 4. If the inspection has 8 things, they will do 3 to 5 – with no selling. You are their friend, you are advising. List everything!
Now think about that phone call. There is only a little selling value or benefits: maybe some safety. So there’s no pressure on you, no bad news. You are the car detective, reading the cars clues and helping your friend thru this.
When you take care of the customer in this fashion, you come from a place of trust, like taking care of a high school friend.
You will be happier because that call back won’t be stressful, you will have more work, and they are more likely to refer your trustworthy, easy-to-work-with shop, which means even more work.
I'm training to start a new business, and am tasked to learn the top goals and challenges of auto repair shop owners.
I know you don't know me... but I hope you wouldn't mind taking 60 seconds to help.
From your experience, what's the #1 most urgent or worrisome pain point a repair shop seeks to overcome?
And was the answer something else, before COVID-19?
Thanks in advance.
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By Joe Marconi
Your lead tech is not performing up to expectations. Shop production is slipping and you’re not sure why. You hear through the grapevine that some of your employees are wondering when they will get their next pay raise. After a few agonizing weeks of pouring through reports, you make the decision to give across-the-board pay raises. Almost immediately, you see a boost in production. The shop is more upbeat and all is well. Your decision appears to be correct. Three months later, your shop is once again struggling to meet its sales and production goals—and morale has slipped, too.
I have seen this scenario all too often. And, while there are times that we need to give pay raises, if your shop is struggling to meet its sales and production goals, increasing pay to improve business is not the answer. The reality is you have deeper issues.
Let’s address employee compensation first. You must pay people a competitive wage with the opportunity to earn more. There should be incentives in place to reward your employees for reaching their personal and team goals. And, there needs to be a process in place where your employees understand how and when they will get a pay raise.
However, in terms of long-term company growth, a focus on pay alone will never be the formula for success. In other words, throwing money at a problem is a short-term fix. It’s putting a Ban-Aid on a more serious injury that requires much more care and attention.
About 10 years ago, Mercedes-Benz was struggling with its customer experience at many of its dealerships. In response to this, Mercedes decided to increase pay incentives, implement new policies and training programs. No improvements were realized. Mercedes top executives could not understand why customer service was not up to company expectations. After all, this is Mercedes, a car company that represents quality and sophistication. Why were their dealer employees so indifferent?
A senior leader at Mercedes recognized the problem and stated, “Pride in the brand was not quite as strong as we thought, the level of engagement with work was not as deep as we thought.” Mercedes finally realized that until the employees at Mercedes genuinely cared more, no amount of money, policies or training would make a difference.
Understanding the need to get front-line people more engaged and take pride in their work, Mercedes began to invite its dealer employees to spend 48 hours with the model of their choice. To experience not only the amazing performance and mechanical attributes of the vehicle, but also that they can turn heads as they drive through their neighborhoods or when they drive into the little league parking lot.
Mercedes also built its Brand Immersion Center in Tuscaloosa, Ala., in 2014, where hundreds of employees go each year to spend time getting to know how the cars are built, gain a deeper understanding of the brand, the history of Mercedes and experience the legacy of the company. According to Philippa Green, brand immersion trainer for Mercedes-Benz, “The ultimate goal is to engage their hearts and minds around the brand. We’re teaching them about our legacy.”
As business owners, we track KPIs, set goals, work on marketing and refine our business plans. We also ensure that we provide our employees with adequate training and a well-equipped environment. These are the essentials of our business. However, we must never overlook the importance of your employees taking pride in their work. And, pride comes from employees knowing who you are, what you stand for, what you do for your community and for the industry.
Giving people pay raises can motivate them. But the bounce you get from that is short-lived. Once people have gotten over the excitement of the raise and made the financial adjustments to their lifestyles, the raise is long forgotten. If there are no other intrinsic motivators, then shop morale, production and employee engagement will fall right back to where it was before the raise.
Anyone who knows me and has read my articles, knows how much I preach about leadership. The theme of this article also has its roots in effective leadership. You, the leader of your company, have the power to transform the people around you. Focus on the person, not the position. Recognize when your employees do things that are from the heart. Promote your company’s brand, vision and legacy. These are the keys to a long-lasting company. This is what will improve morale, not a pay raise.
This story was originally published by Joe Marconi in Ratchet+Wrench on March 1st, 2020
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