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

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carmcapriotto Grand Master

carmcapriotto

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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’

LINK TO AAPEXSHOW.COM/SERVICEAWARDS

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  • Have you checked out Joe's Latest Blog?

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      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
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      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.
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      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? 
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      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?
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      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?   
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      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.
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