Business Has Slowed Down? Or Back to the Way it Was?

[Joe Marconi]

Speaking to many shop owners, I get the sense that sales are slowing lately.  Is this so, or has the ramp up in sales the few years made many shops complacent?

Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience? 

 

 

[DUFRESNES]

Good morning.  February was a record month.  The Service writer kept saying February stinks, had to eat his words.  March we are full for the day and after, but don't have the long term waiting appointments.  Still a good month.  We send out rebate letters in 3 mailings Feb, Mar and April.  That helps us ins the winter months easing into summer

.  

[Joe Marconi]

20 hours ago, DUFRESNES said:

Good morning.  February was a record month.  The Service writer kept saying February stinks, had to eat his words.  March we are full for the day and after, but don't have the long term waiting appointments.  Still a good month.  We send out rebate letters in 3 mailings Feb, Mar and April.  That helps us ins the winter months easing into summer

.  

Sometimes perception turns into reality. I have seen this all too often, "Feb is always slow, there is nothing we can do." Just by thinking this, it become the reality. A key thing you did was to be proactive, not giving in to the mindset that Feb stinks. Great job!

When I was in business, we had a plan starting in Sept to flood Jan, Feb and Mar with Service reminders, backed up with reminder phone calls. Again, be proactive, not sit on your hands!

 

[Transmission Repair]

I've said it before and I say it again, we use our Google PPC advertising radius to "throttle our business."  Normally, we would be listed at the top of a Google search within a 5-mile radius of the shop.  If it got slow, I would increase the size of the radius.  If we got slammed, I would even pause our Google PPC ads altogether.  If it got slow, I would increase the size of the radius.  The largest I've ever gone with our Google PPC program is a 100-mile radius.

I know beyond a shadow of a doubt, the Google PPC program works for a transmission repair shop.  That's because, in our line of work, it is transactional-based.  How it would work for other automotive businesses, where it's usually relationship-based, I can't say for sure.

If anybody wants to know that this works, make sure you get hooked up with a call-tracking company and use call tracking where you know, beyond a shadow of a doubt, it's either working or not working.  This is true with any type of advertising.  Each lead source has a different tracking number.  Otherwise, every phone call is just that, another phone call.  You have no way of knowing the source of that sales lead.  Without call-tracking being a part of any advertising campaign, advertising is just another bill you'd rather do without.

[Joe Marconi]

17 hours ago, Transmission Repair said:

I've said it before and I say it again, we use our Google PPC advertising radius to "throttle our business."  Normally, we would be listed at the top of a Google search within a 5-mile radius of the shop.  If it got slow, I would increase the size of the radius.  If we got slammed, I would even pause our Google PPC ads altogether.  If it got slow, I would increase the size of the radius.  The largest I've ever gone with our Google PPC program is a 100-mile radius.

I know beyond a shadow of a doubt, the Google PPC program works for a transmission repair shop.  That's because, in our line of work, it is transactional-based.  How it would work for other automotive businesses, where it's usually relationship-based, I can't say for sure.

If anybody wants to know that this works, make sure you get hooked up with a call-tracking company and use call tracking where you know, beyond a shadow of a doubt, it's either working or not working.  This is true with any type of advertising.  Each lead source has a different tracking number.  Otherwise, every phone call is just that, another phone call.  You have no way of knowing the source of that sales lead.  Without call-tracking being a part of any advertising campaign, advertising is just another bill you'd rather do without.

Interesting point. Your business model relied on this strategy. For many long-established business, retention through delivering a great customer experience is also a solid strategy. For many business models, it's more cost effective to retain customers. However, every business needs an infusion of new customers too. 

[newport5]

Re: Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience? 

Should we get back to the art of selling? NO! Customers don’t need to be "sold." We need to sell ourselves. Google search: “nobody likes to be sold.” More soon

taking care of customers: YES !

offering options? Such as?

and making sure we create an amazing experience? OK. What makes for an amazing experience? I read online somewhere: “Today’s customers want an exceptional experience, one that puts you and your shop above the competition. Which means: easy scheduling, a fast turnaround, open communication, fair and transparent pricing, and repairs that are done right the first time.”

To me, that is NOT an exceptional experience. That is the minimum. That is a routine experience.

Thoughts?

[Joe Marconi]

1 hour ago, newport5 said:

Re: Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience? 

Should we get back to the art of selling? NO! Customers don’t need to be "sold." We need to sell ourselves. Google search: “nobody likes to be sold.” More soon

taking care of customers: YES !

offering options? Such as?

and making sure we create an amazing experience? OK. What makes for an amazing experience? I read online somewhere: “Today’s customers want an exceptional experience, one that puts you and your shop above the competition. Which means: easy scheduling, a fast turnaround, open communication, fair and transparent pricing, and repairs that are done right the first time.”

To me, that is NOT an exceptional experience. That is the minimum. That is a routine experience.

Thoughts?

You are right.  Here is my take on this.  Creating an amazing experience is nothing more than building strong relationships, being nice, friendly and making sure that you are taking care of the customers needs. You are right, as we build value, we sell ourselves.

I don't think the customers "expect" any experience. They get beat up everywhere, and now they are just looking for a someone who truly cares. For example, I am dealing with a knee issue. I called the doctor three times, left messages, got hung up on twice, and it took days for someone to call me back. And this is a doctor's office!

Again, this is no brainer, just be nice, do a quality job, and the rest takes care of itself....for the most part. 

[juanpablo4219]

On 3/28/2024 at 4:07 PM, Joe Marconi said:

You are right.  Here is my take on this.  Creating an amazing experience is nothing more than building strong relationships, being nice, friendly and making sure that you are taking care of the customers needs. You are right, as we build value, we sell ourselves.

I don't think the customers "expect" any experience. They get beat up everywhere, and now they are just looking for a someone who truly cares. For example, I am dealing with a knee issue. I called the doctor three times, left messages, got hung up on twice, and it took days for someone to call me back. And this is a doctor's office!

Again, this is no brainer, just be nice, do a quality job, and the rest takes care of itself....for the most part. 

I am in the same boat with the Dr. with same problem.. 
People don't care, I had to go to make an appointment in person, and the Dr. that was helping me there, no longer works there

[juanpablo4219]

Good afternoon...
2nd half of April was challenging...
Our Sales were close to last year but not enough. We were short 9%...
We're doing google ads and that works for us..
Again, we're a Specialty shop, We're a brakes & front end shop big challenges for this year.
We have to keep in mind, we're in a Presidential year. It has been my experience that in this type of year Sales are more of a Challenge.
Also every things is very expensive, as consumers, we don't have the buying power, which creates a big problem for the consumer..

I am really good about finding solutions to the problems but at this point my view is very cloudy and gray, which makes it very difficult to have a clear view.

We live in an area where there are several small town within our town and we advertise in the surrounding areas. 

I am going to consider to reduced our advertising area to just within town and see what results throws this approach

Thanks 

JP

 

[Transmission Repair]

Here's what happened when we moved our shop's location from a lower-income area (Lindon, Utah) to an affluent area (Draper, Utah) Some of the links are broken because I wrote this piece in 2011.  

 

[Transmission Repair]

1 hour ago, juanpablo4219 said:

Good afternoon...
2nd half of April was challenging...
Our Sales were close to last year but not enough. We were short 9%...
We're doing google ads and that works for us..
Again, we're a Specialty shop, We're a brakes & front end shop big challenges for this year.
We have to keep in mind, we're in a Presidential year. It has been my experience that in this type of year Sales are more of a Challenge.
Also every things is very expensive, as consumers, we don't have the buying power, which creates a big problem for the consumer..

I am really good about finding solutions to the problems but at this point my view is very cloudy and gray, which makes it very difficult to have a clear view.

We live in an area where there are several small town within our town and we advertise in the surrounding areas. 

I am going to consider to reduced our advertising area to just within town and see what results throws this approach

Thanks 

JP

 

3:16  

 

[Transmission Repair]

The average household income in Draper is $164,948 with a poverty rate of 4.1%. The median age in Draper is 33.6 years: 32.5 years for males, and 34.7 years for females.

[Joe Marconi]

13 hours ago, juanpablo4219 said:

Good afternoon...
2nd half of April was challenging...
Our Sales were close to last year but not enough. We were short 9%...
We're doing google ads and that works for us..
Again, we're a Specialty shop, We're a brakes & front end shop big challenges for this year.
We have to keep in mind, we're in a Presidential year. It has been my experience that in this type of year Sales are more of a Challenge.
Also every things is very expensive, as consumers, we don't have the buying power, which creates a big problem for the consumer..

I am really good about finding solutions to the problems but at this point my view is very cloudy and gray, which makes it very difficult to have a clear view.

We live in an area where there are several small town within our town and we advertise in the surrounding areas. 

I am going to consider to reduced our advertising area to just within town and see what results throws this approach

Thanks 

JP

 

As a business coach (former shop owner) I see that many areas around the country are having a slow down in business. However, a lot can be done. Focus on your existing customers. Make sure that all deferred and declined work is followed up and reminders sent out. 

Regarding your advertising, local is always better. Just don't cut your advertising too much.

Perhaps the most important factor is to have a positive open mindset. Look for ways to improve, discuss with your team. Don't sit on your hands and say nothing can be done.

With the right approach, things will improve. 

Good luck!

 

[DRock]

6 hours ago, Joe Marconi said:

As a business coach (former shop owner) I see that many areas around the country are having a slow down in business. However, a lot can be done. Focus on your existing customers. Make sure that all deferred and declined work is followed up and reminders sent out. 

Regarding your advertising, local is always better. Just don't cut your advertising too much.

Perhaps the most important factor is to have a positive open mindset. Look for ways to improve, discuss with your team. Don't sit on your hands and say nothing can be done.

With the right approach, things will improve. 

Good luck!

 

In my shop we heavily focus on each and every customer we HAVE, getting new ones have been much harder to get through Google, Instagram, and FB.  FB is pretty much a joke.     It's been much slower from last Nov to current.  I talked with our World Pac rep and he said it's even worse on the west coast.   Focusing on your customers is excellent advice, I agree but when you don't have enough of them to focus on because people aren't even doing brakes when they are at 2%, then what?    Trying to keep an open mind is also good advice, but that gets hard as the percentage of sales to the last fiscal year grows further apart!   I know many shops in this same situation too.....we've had some HUGE dealers go out of business here, and one comes to mind that's been in business for a very, very long time with 5 HUGE lots, all gone, 144 employees lost their jobs, business closed, land owners probably freaking out now wondering what to do with their space...it's just a horrible time period right now.   Usually, when we are in a recession or recession-like period customers still fix their cars because they know buying new isn't an option, that is VERY different from where we are now.

[Transmission Repair]

With any paid advertising, the use of a call tracking pool is the only way to accurately measure the ROI.

[juanpablo4219]

8 hours ago, Joe Marconi said:

As a business coach (former shop owner) I see that many areas around the country are having a slow down in business. However, a lot can be done. Focus on your existing customers. Make sure that all deferred and declined work is followed up and reminders sent out. 

Regarding your advertising, local is always better. Just don't cut your advertising too much.

Perhaps the most important factor is to have a positive open mindset. Look for ways to improve, discuss with your team. Don't sit on your hands and say nothing can be done.

With the right approach, things will improve. 

Good luck!

 

Good day to every one and very thankful for the responses, everything helps.

I already took some action and reduced our advertising to the zip codes where we get the most on google ads.

working up on a list of follow up from our current customers

Also working on an advertising campaign for the coming holiday, Memorial Day and the summer, it's just around the corner and the traveling starts right after the memorial day, since school is out.

Thanks again, I will come back with a report right after the end of this month

[Transmission Repair]

Try https://www.convirza.com/pricing/ for all of your call-tracking needs.  It is very economical and accurate, letting you know what works and, more importantly, what doesn't. 🙂

 

[Joe Marconi]

17 hours ago, DRock said:

In my shop we heavily focus on each and every customer we HAVE, getting new ones have been much harder to get through Google, Instagram, and FB.  FB is pretty much a joke.     It's been much slower from last Nov to current.  I talked with our World Pac rep and he said it's even worse on the west coast.   Focusing on your customers is excellent advice, I agree but when you don't have enough of them to focus on because people aren't even doing brakes when they are at 2%, then what?    Trying to keep an open mind is also good advice, but that gets hard as the percentage of sales to the last fiscal year grows further apart!   I know many shops in this same situation too.....we've had some HUGE dealers go out of business here, and one comes to mind that's been in business for a very, very long time with 5 HUGE lots, all gone, 144 employees lost their jobs, business closed, land owners probably freaking out now wondering what to do with their space...it's just a horrible time period right now.   Usually, when we are in a recession or recession-like period customers still fix their cars because they know buying new isn't an option, that is VERY different from where we are now.

I know exactly what you are describing.  In my 41 years in business, I lived through many economic rollercoasters. You also make great points. 

I agree, we are in different times, and I don't know why some areas around the country are affected more than others.

One thing I do know, doing all you can with the customers right in front of you every day is crucial for future success. Business is never easy, especially the auto repair business. 

Keep pushing, create the right culture in your shop, take care of each customer, and continue to market for new customers.

Keep us posted and good luck.

[DUFRESNES]

Well, I am old, been in business 55 years.  What I have found and continue to do.  You know what has worked in the past, because you always monitor it.  If it doesn't work, get rid of it.  We are on the west coast.  As of today, we are up 39% for the year.  That includes being shut down a whole week for a storm.  I will say it has slowed down to the effect of we were making appointments out a whole week, now we are working on the current week.  A couple things I will say is, know when it might be slow and do what it takes.  For us it is our rebate check $39.23 mailed out in 3 groups, February, March and April.  Our new snail mail to new customers 3 times over 6 weeks.   Probably the best thing we have done is have the phones forwarded to either my daughter or me.  We have Log me In on our home computers and can make appointments on the week-end.   We have almost every month something going on from coat drives to Free brakes with donations for the food bank.   Loaners were are biggest thing, especially after Covid.  No more rides.  We have a really small parking lot.  We encourage our customers to pick up as soon as possible .  No care leaves without paying.  

 

[Joe Marconi]

1 hour ago, DUFRESNES said:

Well, I am old, been in business 55 years.  What I have found and continue to do.  You know what has worked in the past, because you always monitor it.  If it doesn't work, get rid of it.  We are on the west coast.  As of today, we are up 39% for the year.  That includes being shut down a whole week for a storm.  I will say it has slowed down to the effect of we were making appointments out a whole week, now we are working on the current week.  A couple things I will say is, know when it might be slow and do what it takes.  For us it is our rebate check $39.23 mailed out in 3 groups, February, March and April.  Our new snail mail to new customers 3 times over 6 weeks.   Probably the best thing we have done is have the phones forwarded to either my daughter or me.  We have Log me In on our home computers and can make appointments on the week-end.   We have almost every month something going on from coat drives to Free brakes with donations for the food bank.   Loaners were are biggest thing, especially after Covid.  No more rides.  We have a really small parking lot.  We encourage our customers to pick up as soon as possible .  No care leaves without paying.  

 

55 years! Oh man. You should be proud! Question, with all those years in business, do you find that marketing to your existing customer base is a big part of your success?

[DUFRESNES]

Definitely. We do a colored newsletter every month. Most of our marketing is for our own customers

[DUFRESNES]

Just to show you this morning when I got here, there was only five vehicles on the schedule.  We made an email blast and sent it out immediately to fill the bays.  Always have to be

ready for slow time. 

[DUFRESNES]

I need to correct my 39% up for the year should have said up $39,000 Sorry.  I should proof read what I write.  

 

[juanpablo4219]

Wow, 55 Year in Business, That's an accomplishment!

...with that amount of years, your business is a land mark for the city/town where you live.

Your business is 55 years old, I am 52 years old and my business is 10 years old.

We have had our ups and downs but I started this business from scratch..

I don't considered myself a mechanic since I did not go to school for that. I am an Entrepreneur/accountant that got retrained 10 years back to do Brakes & Suspension work.

...and Yes, I come from a family of Mechanics, I just did not enjoyed it when I was young, now I loved it

It's harder for a younger business to even consider the thought of competing  with a 55 year old.

HOW?

The business itself has it's path and journey, at that age of a business, somebody will come through the front door, it could be minor activity or a lot of it.

Now reaching goals and owner's expectation is something totally different!

Congratulation I just hope one day our business can reach to that age, and that would be up to my kids...