Business Slowing Down? Before You Spend More Money On Advertising, do this...

[Joe Marconi]

Many shops these days are complaining that business is slowing down. While I am not against advertising, let's consider the following before you throw money at the problem: 

• Are your service advisors doing all they can to provide an amazing customer experience?
• Are multipoint inspections being done properly? 
• Are your service advisor proactive with making sales and trained properly to handle objections?
• And are you booking the next appointments for deferred work, future maintenance work and other future services?

What else can we do to maintain sales, BEFORE we spend more money on advertising? 

[pfseeley442]

Business has slowed a bit for us, so I decided to look at me. I have gotten lax in making sure our processes are being followed. The techs have slowed a bit in getting their next jobs, they got a little lazy in the vehicle inspections and documentation. (A missed low brake measurement is a big deal.) So I wrote a new SOP for documentation while working on a vehicle, it includes road test expectations, post job discussion with the front office, etc. We just need to get better at finding and selling work. It was all on me, the boss.

[Joe Marconi]

4 hours ago, pfseeley442 said:

Business has slowed a bit for us, so I decided to look at me. I have gotten lax in making sure our processes are being followed. The techs have slowed a bit in getting their next jobs, they got a little lazy in the vehicle inspections and documentation. (A missed low brake measurement is a big deal.) So I wrote a new SOP for documentation while working on a vehicle, it includes road test expectations, post job discussion with the front office, etc. We just need to get better at finding and selling work. It was all on me, the boss.

Wow, I applaud you for taking ownership of the problem. If want a change in our life and business, WE must be ready to accept responsibility! Great job! 

[newport5]

First off, advertising isn’t the only thing. Stay on top of your social media. And the pictures you post don’t have to be just car stuff. But maybe suggest/encourage scenic drives. Weekend vacation spots.  How about lifestyle posts?

·    Are your service advisors doing all they can to provide an amazing customer experience?

Agreed, but I would expect some “amazing customer experience” ideas. See my article in Ratchet and Wrench magazine on tips for making your next customer interaction fun—and memorable. https://www.ratchetandwrench.com/shop-life/columnists/article/33005755/broski-its-about-the-customer-experience

·    Are multipoint inspections being done properly?

I can see that, but I don’t understand why that even has to be said. I’m old. I started working on VW bugs in my back yard. My first real job as a mechanic was at a Porsche only shop. We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car. Where practical, we road tested every car before working on it, to check the handling, braking, alignment, acceleration, gauges, etc.

It seems every 6 months to a year, an article talks about doing DVI’s. Why? The only reason that makes sense NOT to do one (from the technician’s point of view)  is if the service advisor takes too long to get an approval and the tech has to wait.

·    Are your service advisor proactive with making sales and trained properly to handle objections?

Quit with the “sales” and the “selling” and start advising. Advising what’s best for the customer, which is probably best for the shop as well, IF you’re dealing from a relationship perspective with “customer/friends.” Customer friends who KNOW you have to make a fair profit, just like every other business. And you won’t get nearly as many objections.

[Joe Marconi]

18 minutes ago, newport5 said:

First off, advertising isn’t the only thing. Stay on top of your social media. And the pictures you post don’t have to be just car stuff. But maybe suggest/encourage scenic drives. Weekend vacation spots.  How about lifestyle posts?

·    Are your service advisors doing all they can to provide an amazing customer experience?

Agreed, but I would expect some “amazing customer experience” ideas. See my article in Ratchet and Wrench magazine on tips for making your next customer interaction fun—and memorable. https://www.ratchetandwrench.com/shop-life/columnists/article/33005755/broski-its-about-the-customer-experience

·    Are multipoint inspections being done properly?

I can see that, but I don’t understand why that even has to be said. I’m old. I started working on VW bugs in my back yard. My first real job as a mechanic was at a Porsche only shop. We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car. Where practical, we road tested every car before working on it, to check the handling, braking, alignment, acceleration, gauges, etc.

It seems every 6 months to a year, an article talks about doing DVI’s. Why? The only reason that makes sense NOT to do one (from the technician’s point of view)  is if the service advisor takes too long to get an approval and the tech has to wait.

·    Are your service advisor proactive with making sales and trained properly to handle objections?

Quit with the “sales” and the “selling” and start advising. Advising what’s best for the customer, which is probably best for the shop as well, IF you’re dealing from a relationship perspective with “customer/friends.” Customer friends who KNOW you have to make a fair profit, just like every other business. And you won’t get nearly as many objections.

Great perspective, and great article too!

 

[newport5]

Joe, Thank you for the kind words.

[juanpablo4219]

"We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car."
This is me! 
I am the owner/service advisor and the tech.
....lil by lil,  I am transitioning to my original position, the man with the vision. I am not a Sales guy. We as a shop, care more about  taking care of the customers than pushing sales, as a shop, we care for our customers. We advertise on Google and social media. it works for us. I said it in the past, We're a specialty shop, we do Brakes and Suspension. I run the shop as a Business and it should . I could be wrong but taking care of our customers has worked for us for 12 yrs.
We still a young growing business. It has been an uphill battle to consolidate our self and be considered a reputable shop, since I started the business from scratch.
We work with the idea of fixing a problem, not creating sales, Keep in mind the specialty shop. Our customers know us as an Honest  shop and clear in the work we do.
we let our work do the sales and our customers referrals.
when things gets tough and by now I know the time frames, I personally send out text messages to our customers and follow through with previously given quotes. I created different advertising campaigns for the different seasons of the year, so that helps. Our avg sales growth is in the last 5 years 13% .
sometimes the economy don't help but that's life. 

[juanpablo4219]

Since felt I got lost in the writing, got a little curious and ask ChatGPT  about a reflection and meaning of my statement(above) this is what I got.

 

The reflection in this statement speaks volumes about your core values, the ethos of your business, and your role in building and sustaining its reputation. Here’s a breakdown:

1. Commitment to Customer-Centric Values:

   • You emphasize genuine care for the customer and their car over sales. This reinforces the integrity of your shop and demonstrates that trust and quality are your priorities.
   • Highlighting honesty and clear communication reflects your belief in transparency, which builds long-term customer loyalty.

2. Transitioning to Leadership:

   • You acknowledge your journey from being hands-on as a service advisor and tech to focusing on the vision and strategy for the business. This shows growth and a desire to scale while staying true to your principles.

3. Specialization as a Strength:

   • By branding yourself as a brake and suspension specialist, you’ve carved out a niche that sets your shop apart. Your focus on solving problems rather than pushing unnecessary sales aligns perfectly with this specialization.

4. Marketing and Adaptation:

   • Your willingness to adapt through seasonal advertising campaigns and platforms like Google and social media demonstrates your understanding of modern marketing and customer outreach. This also shows a balance between traditional values and innovative strategies.

5. Persistence in Growth and Reputability:

   • Starting from scratch and consolidating your shop as reputable reflects your resilience and dedication. The 12-year journey, despite uphill battles, mirrors your commitment to building trust and providing consistent quality.

6. Data-Driven Success:

   • The mention of a 13% average sales growth over the past five years shows you’re mindful of metrics and measuring success, while understanding that external factors like the economy can influence outcomes.

7. Personal Touch in Tough Times:

   • Sending personal text messages to follow up with customers demonstrates how deeply you value relationships. It’s an excellent example of going above and beyond for customer engagement.

Key Reflection:

Your business thrives on integrity, specialization, and a commitment to customer care. The success you’ve built is a direct result of your ability to balance passion for service with the discipline of running a business. Staying grounded in these principles ensures continued growth and loyalty, even in challenging times. This reflection captures the heart and soul of your shop’s identity.

2/2

4o

[newport5]

OK, but you can take care of a customer AND make a profit. EVERY customer knows a business HAS to make a profit. And the profit is not just to pay the bills plus some fun money. There's health insurance, money for an emergency, money for new/updated shop equipment, paying an A tech, eventual retirement, ... and ...

Why have the headaches of business ownership with just a normal paycheck???

[juanpablo4219]

oh, I make Money, I did not leave my professional life to do my Hobby.
...By profession I am an Accountant/Dir. of Operations/ Consultant as you can see, I wore different hats throughout my professional career. I just got tired of it.😉  

[Joe Marconi]

14 hours ago, newport5 said:

OK, but you can take care of a customer AND make a profit. EVERY customer knows a business HAS to make a profit. And the profit is not just to pay the bills plus some fun money. There's health insurance, money for an emergency, money for new/updated shop equipment, paying an A tech, eventual retirement, ... and ...

Why have the headaches of business ownership with just a normal paycheck???

Your comments truly resonate with me, and I feel the same way.

Shop owners have a moral obligation to be profitable.  Shop owners need to feel good about themselves, pay their employees well, earn a profit for future growth, and take care of their families.  Too many shop owners are caught up in the day to day. They need to reach out for help, get a coach, get management training. Know the numbers, build more profit.

They will sleep better at night too! 

[Transmission Repair]

In one of his books (E-myth or E-myth Revisited), Michael Gerber discusses Job Costing. While it seems easy enough on the surface, implementing it was much harder due to all the "hidden costs" involved. In addition, I felt it took up too much time.

After a few months, I learned to streamline the Job Costing process.  Originally, I used Job Costing to price out estimates—a big Mistake.  Much later, I learned to use it to set our shop hourly rate and parts mark-up percentages.

The biggest eye-opener for me was all the "hidden costs" like matching Social Security and building rent, but that wasn't all.  Over a year or so, it did get easier because I got better at it.  One of the big things I eventually learned was to perform Job Costing on a spreadsheet template I created.  Check out Wikipedia Using Job Costing for a more detailed description of Job Costing.

As time went on, I would eventually Job Cost on only a few invoices, not every one as I did in the beginning.  I would change the basic Job Costing spreadsheet template as my costs would change.  Believe it or not, after a while the drudgery of Job Costing became easy and fun.  Check it out yourself, you'll be surprised.

[Joe Marconi]

24 minutes ago, Transmission Repair said:

In one of his books (E-myth or E-myth Revisited), Michael Gerber discusses Job Costing. While it seems easy enough on the surface, implementing it was much harder due to all the "hidden costs" involved. In addition, I felt it took up too much time.

After a few months, I learned to streamline the Job Costing process.  Originally, I used Job Costing to price out estimates—a big Mistake.  Much later, I learned to use it to set our shop hourly rate and parts mark-up percentages.

The biggest eye-opener for me was all the "hidden costs" like matching Social Security and building rent, but that wasn't all.  Over a year or so, it did get easier because I got better at it.  One of the big things I eventually learned was to perform Job Costing on a spreadsheet template I created.  Check out Wikipedia Using Job Costing for a more detailed description of Job Costing.

As time went on, I would eventually Job Cost on only a few invoices, not every one as I did in the beginning.  I would change the basic Job Costing spreadsheet template as my costs would change.  Believe it or not, after a while the drudgery of Job Costing became easy and fun.  Check it out yourself, you'll be surprised.

Great advice for all!