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[Podcast] Why We Have Loaner Cars [THA 180]


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https://youtu.be/7hqClM0a1zM

Tom Lambert, owner of Shadetree Automotive. Tom Lambert got his start right at home. His dad and uncles always had projects going on in the home garage. During the summer vacation, his dad would have Tom remove engines from the vehicles that were being sent to the local machine shop for rebuilding.

In the past three and a half years, Tom and his dad have made strategic adjustments in the business. They are now a $2.5 million dollar a year shop with 10% annual growth and profitability. They continue to improve every day. Tom says he has the best team and a strong culture. In January 2017 Tom bought his dad completely out of the business.

Tom struggled for many years because he had lost his passion for the auto industry. After receiving all the guidance and coaching over the past few years, he is rejuvenated and has more passion than ever and is currently doing everything he can to pay it forward to other local shop owners. Tom’s previous episodes HERE.

Greg Buckley is the CEO the 50 + year young Buckley Personalized Auto Care in Wilmington, DE. He’s a member of ASA, an ATI Coach, a member of the Delaware Automotive Service Professionals, past member of the NAPA advisory board council, is vice-president of NAPA business development group. Hear Greg’s previous episodes HERE.

Key Talking Points:

  • DifferentiationDealers, especially at the higher end brands, have loaners
  • Billboard. Make impressions with every vehicle if you have it wrapped with your logo
  •  Tom is a front end guy,He wants to save money but also focuses on makin money
  • He knows he has to balance the budget
  • He finds extra sales upfront that more than covers his costs
  • Greg hesitated for year to get into loaners until he found a company to help him get into them properlyHe researched with other shop owners to find their loaner strategy and their ROI
  • He found that the numbers made sense and wondered why he hadn’t done it sooner
  • Greg has GPS on each loaner
  • Links discussed in the episode from Greg:Insurance Lancer: https://www.lancerinsurance.com/
  • Loaner manager: https://www.arsloaner.com/Manage GPS
  • Evaluates your ROI
  • Handles extra fuel
  • Creates a digital transaction
  • Each client leaves with a signature on the loaner car agreement
  • The vehicles that in the shop that had loaner cars had a large ticket
  • Tom has 13 loaner cars and he does approximately 15 tickets a day. He has a high average ticket  50% of his customers take a loaner. If they don’t need it they don’t take it
  • They balance the workflow and loaner schedule
  • Risk is an inherent part of providing loaner cars
  • Customer needs to have full coverage insurance
  • Tom puts a portion of the costs of the loaners into marketing against his marketing budget
  • Tom doesn’t have a minimum ticket to give out a loaner car. Even if an oil change he will give a loaner.Some dealers have a plateau or conditions that base if a customer gets a loaner car
  • Greg believes he will add to his fleet. He may even get a pick-up truck to help his commercial accounts
  • At the counter your two biggest objectionsTime: I need my car and can’t leave it (loaner car is tool to close that objections
  • Financing: Give them this tool to help close
  • Look at your opportunity costs. Tom finds on average $2300 wrong with every car. He knows that a loaner car and financing helps shore up these sales opportunities 
  •  Greg had his advisors take out the loaner car out for a drive to get them in the ‘driver’s seat’

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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