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[Podcast] Zero Dollar Customers – Tom Palermo [RR 511]


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Tom Palermo is General Manager of Preferred Automotive Specialties in Jenkintown, PA. Tom is a world class Master Technician and a Certified ASE Advanced Level Technician, is certified from ASE including Master Auto, MasterTruck, Master Truck Equipment, Master School Bus, Master Collision, Master Transit Bus, L1, L2, C1, X1, P2, F1 Besides the 2015 NAPA/ASE Technician of the Year, Tom also earned the 2011 AAIA-ASE World Class Technician Award from the Automotive Aftermarket Industry Association, National Institute for Automotive Service Excellence, and the Best Tech of the Year award sponsored by WIX Filters. The majority of Tom’s business is fleets. Listen to Tom’s previous episodes HERE.

Key Talking Points:

  • Zero dollar customers
  • Moved to one location 2 miles down road
  • Specifically target marketing customers based on database information (how many cars they had, what their purchases were etc)
  • Noticed in first quarter they were getting a lot of zero dollar bills (car making noise, checking brakes, checking front end etc) then leaving without repair. Get repair and different shop or do repair themselves. Average RO started to drop. Started to understand behavior of customers when they come in and find out what they really want
  • Zero dollar customers can have huge effect on shop’s productivity
  • Discount if work is done at shop or ask them if they want to leave their car

Resources:

  • Thanks to Tom Palermo for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
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Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future.

Learn more about TRACS Enterprise and the hundreds of other benefits the NAPA family has to offer. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com.

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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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