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Tires as a Profit Center [THA 219]


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Mike Gorton, Evans Automotive, Pensacola, FL

Darin Ode, Ode Auto Repair and Tire, Warren, MI- Darin's goal is to build a successful repair facility built on compassion for customers and employees by treating them like family. He plans on passing his company to its 3rd generation, his stepson Armando. Darin started working in the family business when he was 14 years old.

Chris Cotton, Auto Fix SOS, Business Coach- Chris Cotton has been in the customer service industry for over 40 years and has been in the auto repair industry for over 25 years. He is a former shop owner that has dedicated his life to helping YOU to get your business where you want it to be and helping you FOCUS on the things that matter to you. Find Chris’ previous episodes HERE.

 

Key Talking Points

  • Tires-33% of the tires coming through your shops need to be replacedKeep the customer in your shop and doing business with you
  • Marketing- advertising on all platforms
  • Communication- ask the customer about their vehicle needs
  • Shop competition and keep their websites queued on the computer for comparative to gain trusts of new customers
  • Margins Tire matrix- mounting/balancing, road hazard
  • Price everything upfront 
  • Starting tire programFocus on your customers first then build on that
  • Process- identifying tires that need to be replaced, DVI, lean on technology to scan tires (tread depth/rotation/alignment) Tool- Tire Profiles about 3K to purchase and will print out a detailed rundown of each tire scanned
  • Road hazard package- 15% off tire purchase is the cost of warranty A small percentage of comebacks- only around 3% of road hazard income is used to support the program
  • Make tire wholesalers compete with each other to find a supplierProduct knowledge to educate customers about the tires, banners/marketing tools, rebates
  • Seamless communication with customer with their tire experience and an update if the tire fits their needs
  • A special thanks to Mike Gorton, Darin Ode and Chris Cotton for their contribution to the aftermarket.
  • Books Page HERE
  • Listen to all Remarkable Results RadioFor The Record and Town Hall Academy episodes.

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Buy Carm a Cup of Coffee 

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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

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This episode is brought to you by Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

Click to go to the Podcast on Remarkable Results Radio

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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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