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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?

         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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