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[Podcast] RR 406: Geek Talk 2.0 Part 3: The Independents Biggest Competitor


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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 groups, and is involved as an advisory board member of Kukui, along with AutoVitals. Hear Greg’s previous episodes HERE.

Chris Cloutier is co-owner of Golden Rule Auto Care in Dallas Texas and CEO of Auto Tex Me. He spent many years in the software industry developing solutions for companies like Southwest Airlines, and Wyndham Intl. He’s worked for companies that understood the marriage of service and software, and have applied it in an effective way. Chris has his ASE C1: Automobile Service Consultant Certification Test (C1). He brings the business side to the business and his brother Pat brings the Braun. Chris is also a musician. Hear Chris’s previous episodes HERE.

Karim Morsli owner of Winkler Automomotive in Gaithersburg, MD,  is an engineer by trade who has worked in the oil fields and information technology industry. Karim is passionate about the new direction the automotive industry is taking, and in particular, the critical role independent service centers will need to evolve into to ensure all present and future car owners will have the choice of where to have their vehicle serviced besides the dealership.

Karim is an innovator who works on multiple levels within the industry (education and legislative) to ensure his service center and others like his are ready for the challenges ahead. Always one to practice an open door approach, he is always willing to teach and share his knowledge and is also an avid learner. Listen to Karim’s previous episodes HERE.

 

Key Talking Points

  • Dealerships are the biggest competitor with independent shops
    • Repair in 2015-2018 went from 27% market share to 30%
      • Independent went from 33% to 30%, now tied with dealerships
    • Maintenance increased market share with expanse of quick lube market
      • Independent held steady 23% market share
    • 6/10 car owners with a current warranty will go back to the dealer
    • 3/10 car owners with expired warranty don’t go back- service too expensive, less convenient
    • Dealerships gaining ground with recalls
    • Data and technology increase within vehicles causes certain customers to want to go back to dealerships for repairs
      • How do you change the customer’s mentality?
  • Advertising for independents
    • Start with educating customers: Show around the shop and tell them what you have to offer and capable of
    • Grow with technology and show customers: Tablets for techs, digital inspections texted to phones
    • An advertising idea:
      • ‘We Get High on High Tech’
      • You connect your phone to your car. We connect to your car’s computer.
    • We need to show customers how their high tech vehicle functions.
    • Who can help the industry build a consistent message for the entire industry?

Resources:

  • Thanks to Greg Buckley, Chris Cloutier, and Karim Morsli for their contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

 

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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion AAPEX_logo_CMYK_with_tagline-1440x621.jpglobal automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. The event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo in Las Vegas. More than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals from 135 countries are projected to be in Las Vegas during AAPEX 2019. For information, visit aapexshow.com

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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