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Panel:

Brett Beachler, is Vice President of Beachlers Vehicle Care and Repair, Peoria, IL. Brett has been in the automotive industry for 30+ years and is third generation family. He started in the family business at about age 13 maintaining the business property.

Brett graduated from Bradley University with a bachelor of science in business. He departed the family business to work in the corporate world for four years. His Dad, Terry, asked Brett to re-join the family business. Since that time, Brett has not looked back and has enjoyed almost every minute of his time in the family business. Listen to Brett’s previous episodes HERE.

Bill Thompson is the President of IMR Inc. Founded in 1975, IMR conducts syndicated and proprietary market research studies that focus on the automotive industry including the automotive aftermarket, heavy duty and fleet segments. Since Bill joined IMR in 2003, the company has expanded its research portfolio and service offerings to provide a wide range of strategic and tactical solutions that provide insight into your most pressing questions. With a focus on industry trends, consumer and repair shop purchasing behavior, channel trends and many other important metrics, IMR’s research provides insight into your market that can bring you closer to your customers, distribution channels and market opportunities. Listen to Bill's previous episodes HERE.

Key Talking Points:

  • The percent of vehicles on the road that were delaying maintenance, in 2016, there was about
  • According to IMR research, delayed maintenance hit a peak in early August 2020 at 30% and started to drop. Bill believes it will normalize to the norm of 17-18% as the year progresses.This was a direct reason for Covid-19
  • Brett says the advisors always need to be in the education mode. You always need to explain ’why’ the consumer will benefit from a repair or maintenance.
  • IMR does a weekly survey with consumers to compile this information
  • The trend is up regarding people who are looking at reviews before deciding on a shop.
  • Consumers are also looking for a ‘touchless’ customer experience
  • In Brett does not have his customers making a big deal about touchless and masks. He says his smaller town, he believes, does not make this a large factor in doing business with him.The stats prove out that geographically
  • Financing Options for Major Costly Repair data is at 40% showing that consumers do want options to help them to keep their vehicle safe and reliable.
  • In a recent week, IMR survey showed, 60% of consumers are willing to take a future appointment for their next service/repair.
  • Brett is doing ‘permission’ calling their customer in the future.Your advisors need to be asking questions on the ‘long game’ of your customer’s car.
  • They call and set appointment vs setting the appointment such as in a dentist office or hair salon
  • If we schedule our next dental appointment or hair cut/color why would we not want to schedule our next vehicle service?
  • Too many people say that they will trade their car in so they don’t need to service or maintain what they haveShow them the numbers and they may just realize the cost of money, energy and time to buy a newer vehicle
  • See Brett’s previous episode here on his strategy: https://remarkableresults.biz/town-hall-academy/a020/
  • He buys a 4-year-old car, keeps it until it reaches 250,000 miles.
  • With the data in the survey, Brett believes he should start to book a future appointment since 60% of consumers are willing to accept. Consider the trust factor as you ask a customer to set future appointments
  • Government (2020) reimbursement is at 57.5 cents per mile (https://bit.ly/35vAI6a)Brett has verified the number and that is a critical number to understand that vehicle ownership is not all gas and repairs

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Resources:

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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

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This episode is brought to you buy Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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