More Cars Or More Customers or What?

[Joe Marconi]

In my 40 years as a shop owner, I have battled the age old dilemma: Is it my car count, my customer count or some other reason why some weeks I find it hard to hit my sales goal.  

It always comes down to production.  Now that's really simplifying it, I know.   But, when you look at the numbers, with the right jobs and a balanced schedule, the ARO goes way up and car counts become not as important as we thought. 

Another thing to consider, this is not 1995. Cars do not come in 5 to 6 times a year for an Oil Change Service.   You are lucky to see some customers every 10,000 miles as they wait for that Oil Change Percentage light on their dashboard to tell them...NOW IT"S OK TO GO TO YOUR REPAIR SHOP. Isn't it funny how so many people will listen to the dash board light, and not you!

Anyway, what are your thoughts.  How do you reach your weekly sales goals and what KPI's are important to you? 

[JustTheBest]

You're right! It's NOT 1995! Getting the typical customer in the door 3 times a year can be a struggle - never mind 5 or 6! But with that said, it always was and still is about car count. Call it cars - call it customers - you need the "churn". Without actually having customers, you've got nothing to measure.

Your entire post was a look at "what's going on" in your shop. Sure, you may be seeing a change in ARO - but because you've got the business, you've got something to compare to. 

That's why I was a little puzzled (by a recent post you made) about changing all the marketing you were doing - or eliminating some of it. I agree, we're in the middle of a pandemic and nobody has a playbook as to how this is going to work out - or what to do. 

Maybe this post should have been What are YOUR numbers? 

My issue always was that recession, depression or new competitors - you've got to keep up the grind. Not saying that you don't make changes - but you've got to stay in touch. 

Then - the key - which is what you've already proven is- you're got to track it. You're watching your numbers. At least you have the details and information to make good decisions. I can't tell you the shop owners I talk to that can't tell me their ARO, how many "real" customers in their database (no, the 9,000 people are just names and addresses) - or even access their customer list to do mailing or anything. 

So you can argue cars or customers. It doesn't matter - It's all about MEASURING. Unless you're MEASURING what you're doing - where things are going - and making decisions on the numbers, cars, customers or covid doesn't matter. 

Running a repair shop isn't a "what I feel like doing" type of business, but I still get surprised!

Hope this helps!
Matthew
"The Car Count Fixer"

P.S.: Join the conversation at YouTube at Car Count Hackers

[Joe Marconi]

Great points Matthew!  I a key component in any business is to know your numbers. And it is all about Measuring.  We have managed to maintain and grow the business through the years by knowing our numbers, but it's a more than that. It's about leadership, making tough decisions, getting rid of the dead wood and hiring the right people. Also, it's recognizing the value we give to our customers, and not be afraid to charge and make a profit. Yes, I said it...making a profit. Not just a living or paying the bills. 

Like I said, it's not 1995 anymore, we all must change. It may not be as drastic as the blacksmith times, but those blacksmiths that stop counting "horse and buggy's" and started to count "horseless carriages" made the transition. We too must realize that in order to thrive will mean a different type of thinking.