I have an idea of a software that can be used to charge a customer a monthly fee.
For example, you could have different tiers:
Maintenance Lite - 15$ a month: low monthly payment for all of the conventional oil changes required by the average driver each year.
Maintenance Basic - 20$ a month: Maintenance Basic includes everything you'll find in Lite, but adds... Unlimited Synthetic Oil Changes (as needed), On Rim (Seasonal) Tire Rotations (as needed), Complimentary Re-Torquing after changeover.
Maintenance Plus - 40$ a month: includes all services from Ultimate Maintenance Basic, plus the following...
- Off Rim Seasonal Tire Rotations (as needed)
- Seasonal Tire Storage
- Flat-Tire Repair (excluding roadside assistance)
- Up to four General Service Calls (diagnoses, bulb replacements, filters, etc...)
- Battery Boost/Replacement (excluding roadside assistance)
- Priority Scheduling Service (For seasonal tire changeover)
What do you think about it?
By ASOG Podcast
ASOG Podcast LIVE from ASTE 2021 - Automotive Management Institute
Kevin Syed, Owner of Integrity 1st Automotive, grew up with an entrepreneurial father and was always encouraged to lead. Having successfully earned a Bachelor’s degree in Business Management from University at Buffalo, Kevin went on to become a franchisee with Getty Petroleum / British Petroleum service centers for the better part of a decade in New York City. After gaining the knowledge, experience, and funding required to produce his own operation, Kevin went on to operate his own independent shops in New York. Kevin sought to find a new place to call home with his wife and twin girls; he longed for the community values and environment of the South and so his family made the decision to move to Texas. Integrity 1st Automotive was then born in Texas and Kevin has scaled his business to multiple locations across the Dallas Fort-Worth Metroplex. When he's not working, Kevin enjoys local car rallies (e.g. Lamborghini Club Dallas), traveling, and hunting.
Ramy Nazim, Director of Integrity 1st Automotive, graduated from the University of Toronto in 2014 with a HBSc. in Biology & Psychology. While he continues to have an affinity for academia and the life sciences; he found his technical prowess to be of vast usage in the working world. Post-graduation, he went on to work with a local software startup specializing in real estate marketing tools. The startup experience allowed Ramy to engage with virtually every facet and department of the business. Insofar as the automotive repair industry, Ramy works to leverage technological solutions to help increase operational efficiency, develop automations, create event-driven communication flows and more! When he's not working, Ramy enjoys traveling with his wife, cooking with the help of Youtube tutorials, and reading about science and history.
Key Talking Points
Put it in writing- a discussion on the importance of standard operating procedures, processes, training paradigms in order to scale the business to multi-locations. Put the system into place. Is it auditable? Having things written is one thing - but how are you tracking compliance? Every process should have a check and balance behind it- quality assurance on whether it is being done. Area Manager (or yourself as an owner) with a preset checklist or leverage technology (software management system). Prioritizing- If you are ambitious on growth, then you've likely got a laundry list of goals and tasks; some are working ON the business and some are working IN the business. Develop a methodology of prioritization- tie your task to a specific KIP, goal or ROI. Eliminates redundancy. Be open to change. Incentivized Extraordinary Performance- empower and develop your employees. Incentives that promote entrepreneurial thinking work the best. Profit-sharing- share part of profits with managers/lead technicians and share P & L. Being transparent. Keep your eyes on Customer Churn- We are in the people's business, one of the most important KPI's to focus on whether one shop or multi shops is to know how many customers are churning from your business annually. (SAS- software as a service). Track weekly/monthly/quarterly/annually- how much of car count is return vs net new customers. Touchpoints for every life cycle of a customer’s vehicle. Remarket and reengage with customers. Churn is inevitable but control it as much as possible. Automation- there are only so many hours in the day; with compartmentalized thinking and technology, you can get more out of each day by offloading redundant tasks to technology without one size fits all solutions. The Customer Experience- we know that it's all about the little things when it comes to curating a memorable experience. That being said, how do you make sure the little things are being followed when you're not there? Your model should work for ANYONE- If you build scalable models, then you can confidently scale to prospective franchisees and feel confident that your customers will Connect with the show:
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Hunt Demarest, CPA Paar-Melis. Hunt is Accredited in Business Valuation and a licensed Certified Public Accountant that has been with the firm since 2006. He specializes in business taxes, valuations, and does consult work with our clients all across the country. When he’s not in the office, Hunt enjoys spending time with his family, golfing, working on and racing his cars. Look for Hunt’s other episodes HERE. Brian Bates, the owner of Eagle Automotive Service, 5 locations, bought the neighborhood shop in Columbine Hills back in 2004 as a way to serve the community by offering quality repairs and services while living out his dream of running his own business. Brian has served as a President of the local NAPA Autocare Business Development group, served on the national AutoCare council with the president and directors of NAPA Auto Parts, and is proud of his team’s achievements in becoming an AAA auto repair certified and holding a BBB A+ rating since the inception of the grading system in 2007. Listen to Brian’s previous episodes HERE Joe Hanson owns Gordie’s Garage. Joe has attended Management Success, NAPA training, Lawrence Tech University and most recently he is a member of the RLO 20 Group 13. He has earned his ASE C1: Automobile Service Consultant Certification. Under his father’s leadership, he has seen what it really takes to make a business like this work. Listen to Joe’s Episodes HERE. Key Talking Points
Value your business before you sell or begin to think about selling- need to figure out value today so that you know what to do to change the value of the business in the future. Find an objective process to value your business before you start talking to a seller. Use an objective third party to negotiate with buyer and seller- CPA/accountant/business valuators. “Higher than what you want to pay and lower than what you want to sell.” Work together instead of against. The best tool to evaluate/estimate what a shop is worth- multiple of net income, what does it make at foundation over 3-5 years? Multiply 2.5-3X SDE- seller discretionary earnings, do you add it back in? If the owner is an integral part of the organizaion (owner and service advisor/technician etc) then you can’t justify adding back payroll. Financial forecast- creating a roadmap for bank/SBA, prepare financials, marketing campaigns, write assumptions for expenses The end game isn’t closing on the business, it is succeeding in new business Know your buyer- price is important but the representation of price is where the value is Key advantages- finding out what motivation of the seller, most time it is about legacy and wellbeing for employees and customers. Trust and transparency with both parties Take emotion out- need to be in a logical state of mind, you are purchasing and selling an asset Growing after purchasing- as an owner, business, and employees Support during venture- at home, professional network as you go through all the ups and downs. Learn from other people’s successes and failures. A special thanks to Hunt Demarest, Brian Bates and Joe Hanson for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook Twitter LinkedIn Instagram Youtube Email Mobile Listening APP’s HERE Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE. Buy Carm a Cup of Coffee 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 Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few? Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop. Visit www.getbroadly.com/chat to learn more.
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By ASOG Podcast
ASOG Podcast Ep 48 - Eduardo Trevino on Becoming A Business Owner