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Posted

We, automotive shop owners of America,  must take the opportunity of a lifetime and turn it into a bunch of success stories. What opportunity?  Look around you. The world is in turmoil. COVID-19, social unrest, uncertainty about the presidential election, the economy, how are we going to get out kids back to school, on and on and on.

While the world is spiraling out of control, we have the power to make big changes to our auto repair shops.  And it can all be positive! 

The Opportunity...

First, the average age of a car in the U.S. is about 12 years old, attaining well over 200k on the clock. 

Second, Uber, taxis and limo companies are suffering.  Guess why?  

Third, the motoring public in the foreseeable future will be traveling by car, taking road trips like they have never did before.

Fourth, the roads are packed with motor vehicles, as more and more people prefer their own car as their primary means of transportation. 

Fifth, as the cars get older and older, more of them will be out of factory warranty.

Sixth, independent auto repair shops have a vast amount of training, resources and replacement parts.

Seventh,  the overwhelming majority of cars being build and sold today are still internal combustion engine powered cars. If you factor in the expected average age of car these days, we can safely bet that those gas engine cars being sold today will still be on the road in 2033 and beyond! 

Eight, You need more?  That's not enough! 

Get your plan in place.  Get your prices in line with making a profit. Don't give anything away anymore (I am mostly referring to checking, testing, diags of any sort!) Offer world class customer service. Be a leader of your employees.  Show the world what you are made of! 

  • Like 3


Posted

Great points Joe! You’re correct on every one. I’ve only got two short points to make. 

One - I would move “Get your plan in place” to the top of the list because without a plan, you don’t know where you are or where you’re going. 

Secondly, I would be concerned about what I would call “collateral damage” that could take the wheels off the best laid plans. You made no mention of it - but I think it’s important.

It’s the little issues like Stimulus money? Unemployment money? Is there going to be a mortgage crisis? Real Estate crisis? And those are just a few. 

When I look at the broader picture, I have to ask, "Will the car owners survive (financially) long enough for you to take advantage of all the opportunity?" All the 12 year old cars are great for service - if your customer still has the money left to pay for service.

The truth of the matter is, yes, some will. The important part of that statement is the word “some”.

So now, how important is each customer you have today? How important is the follow up with each of them?

When I say “follow up”, I mean the little things like a meaningful thank you; getting a good customer review; getting customer referrals; sending out simple oil change reminders; sending out “bounce back” coupons just so you have a shot at getting them back in the door!

So you’re correct about the opportunity. But, if half of the customers disappear, each one you have today just became TWICE AS VALUABLE. 

Sort of makes you want to download a customer list and organize a piece of mail, no? 

Hope this helps. 

Matthew
“The Car Count Fixer”

P.S.: Join the conversation on YouTube at Car Count Hackers! See 'ya there!

  • Like 1
Posted

Matthew, I like you feedback and agree.  All great points.  And I do believe we need to prepare ourselves for any downturn and have a solid plan in place, and of course as you mentioned, it is crucial to stay top of mind with your customers through follow up, reminders, thank you's, etc. 

 

  • 4 weeks later...
Posted

Again "hope is not a plan"

A plan is better than no plan at all.

It has been a tough year for the US 🇺🇸.

This year has been our break through year.

We have increased our sales by 10% .

 The last quater is always the hardest.

There are, like it was mentioned before some factors to consider for the last months of the year. Google business has been a great tool for us...

In the last 2 years we have been working on branding and promoting our business on social media with that intent. 

We're a 7 yr old brake and front end shop and we're beginning to see our efforts to pay off.

Regards

 

JP

 

  • Like 1

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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