By Joe Marconi
I can't speak about all businesses in my area, but the repair shops are doing ok. In fact, most had a normal or near normal summer. A few weeks back we had a major storm that knocked out power for nearly the week. That killed the week. But aside from that, we had a very good June, July and August. With a miserable March and April, this was a great morale lift and financial boost.
The only down side is the affect COVID is having on other businesses, like restaurants, deli's, sport businesses and other businesses. Will this have a trickle down effect on our industry. No one can tell for sure.
I will be shoring up my finances and preparing for the unknown.
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 Elite Worldwide Inc.
By Bob Cooper
Given the uncertainty many businesses around the world are currently experiencing, we must look for ways to save as much money for our shops as possible, while also making sure we are maintaining and building a more profitable business in the long haul. Here are 4 powerful tips to help you save on your shop’s expenses.
1. Review your profit and loss statement, and take a look at each and every line item. For each line item, you should ask yourself up to 3 questions: First, ask yourself if the line item is going to lead to an immediate profit. An example of this would be parts purchases or labor. If the answer to this question is no, then ask yourself if the line item will lead to a potential profit in the near future. An example of this would be your advertising or marketing investments. If the answer to this question is no again, then ask yourself if the line item will lead to any foreseeable profit at all. Examples of these items would be insurance investments, utilities, and your water cooler payment. Once you have the answer to these questions, it will be much easier to see where you can scale back or even put certain items on hold for the time being.
2. This tip comes from Dean Kuhn, a successful transmission shop owner and one of Elite’s rockstar Business Development Coaches. He recommends taking a look at the top 2-3 most expensive items on your financial statements each month. When you look at these expenses, really dive deep into every single line item that goes along with it. This way, nothing will slip through the cracks and you can get a complete picture your business’s finances, which will help you determine areas where you can save.
3. Always remember that your vendors are your partners, and it’s important to treat them this way. I would highly recommend meeting with each of your vendors and having an honest conversation with them to make sure your partnership is as mutually beneficial as possible. During these discussions, set clear expectations for the vendor and make sure that you are meeting theirs. This will save you valuable time in the long run and will make both of your businesses more successful!
4. To save on what’s likely one of your biggest expenses, I recommend that you sit down with your landlord or mortgage owner and have a conversation with them to see what can be done to reduce this cost. You’d be surprised how often an agreement can be made to help in situations like the one we are currently facing.
Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management courses. You can contact Elite at [email protected], or by calling 800-204-3548.
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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.