Business during the start of 2009

[xrac]

How has business been during the first months of 2009?

 

Our January-February was strong

March was o.k.

April has fallen off the cliff.

 

So you will know where I am coming from we had not had a down month to month in 4 years until March.

 

Can we compare notes?

[Dan Reichow]

Our first quarter was up 8% over last year as most our car count is up and R/o down , but we have increased our R/o up $70.00 to an average of $323.00 .

 

April is always a tough month we hope to stay on track .

 

Thanks Dan Reichow [ OHIO ]

[GobblesAuto]

How has business been during the first months of 2009?

 

Our January-February was strong

March was o.k.

April has fallen off the cliff.

 

So you will know where I am coming from we had not had a down month to month in 4 years until March.

 

Can we compare notes?

 

My sales pattern was the same as yours.

January - Feb Strong

March - OK

April - off the cliff (down about 30% from last April)

 

Seems to be picking back up but still not where I need it

[xrac]

My sales pattern was the same as yours.

January - Feb Strong

March - OK

April - off the cliff (down about 30% from last April)

 

Seems to be picking back up but still not where I need it

 

I noticed where you are from. My youngest daughter lives in Cleveland, TN, and I am wrtiting this from the computer at her house.

[autoguy]

January and February were pretty much flat. March was a 7% increase over last year, and April is looking to be a 3% increase over last year. First couple of weeks in April had days that were rediculously slow.

[xrac]

January and February were pretty much flat. March was a 7% increase over last year, and April is looking to be a 3% increase over last year. First couple of weeks in April had days that were rediculously slow.

 

Looks like we finish April down about 14% below last year. It was also ridiculously slow here. We had a $500 day when our average is over $3,000. Business finally came back alive the last week.

[Joe Marconi]

This is a strange year. Our car counts have gone from an average of 100 per week to 135 per week. And we see more new customers than ever before.

 

The only negative thing I see is that people are more cautious and budget their money. Our over sales are up, but not what we would expect from such an increase in car counts.

[xrac]

This is a strange year. Our car counts have gone from an average of 100 per week to 135 per week. And we see more new customers than ever before.

 

The only negative thing I see is that people are more cautious and budget their money. Our over sales are up, but not what we would expect from such an increase in car counts.

 

May sales are about even with last year. We may finish slightly down but not by much. My regional Car-x contact tells me that the Cincinnati market is taking a beating this month.

Edited May 28, 2009 by xrac

[Joe Marconi]

There are many areas of the country that are struggling. I think now is the time to make your presence know in the market. Try to increase your advertising and be more convenient to your customers. Be careful with discounting, it may hurt you bottom line and make it harder to increase prices when the economy turns around. Offer value packages like a Summer Promo. Put together a package that includes and oil change service, multipoint inspection and maybe an A/C check.

 

Keep the customer top of mind, they will remember this.

[autoguy]

There are many areas of the country that are struggling. I think now is the time to make your presence know in the market. Try to increase your advertising and be more convenient to your customers. Be careful with discounting, it may hurt you bottom line and make it harder to increase prices when the economy turns around. Offer value packages like a Summer Promo. Put together a package that includes and oil change service, multipoint inspection and maybe an A/C check.

 

Keep the customer top of mind, they will remember this.

 

 

Well May was a strong month for us. June started off strong but has died down last week into this week, Not sure what to attribute that to just yet.

[Joe Marconi]

Same here. We had a record May. June is not bad, but traffic in general appears to be lighter than normal.

[xrac]

Same here. We had a record May. June is not bad, but traffic in general appears to be lighter than normal.

 

Our June sales are running slightly ahead of last year. We have been experiencing some extremely hot weather the past two weeks which is helping AC sales.

[Joe Marconi]

I wonder if the recent rise in the price of gas will have an affect on business this summer?

[xrac]

I wonder if the recent rise in the price of gas will have an affect on business this summer?

 

If gas goes higher it will hurt. Above $3.00 per gallon and it seems to hurt everything.

[Joe Marconi]

I agree. I don't know how many times the consumer can ride this price roller coaster!

[xrac]

I agree. I don't know how many times the consumer can ride this price roller coaster!

 

How have sales been during August? Our July was strong but August has been VERY soft. We will probably be down 10% below last August. Here is something that tells me that we are not out of the woods yet. Every year Evansville has the Frog Follies which is a show and swap meet for the old Street-Rods. This generates about 4,000 Street-Rods and about 20,000 people. You usually can't get a motel within 60 miles for that weekend. The event is next weekend and a friend who works at Drury Inn says they still have rooms available as of this Friday. That is unheard of and says that there are a lot of people who are staying home.

 

http://www.frogfollies.org/

[Joe Marconi]

I think you’re right; we are not out of the woods yet, with respect to the economy. Also, consumers are more selective now on how they spend their money. The end of the summer is here and people’s thoughts are more on the start of school and their last chance of a vacation.

July was also strong for us, but business in general is down in August. Not just for us but for the all businesses.

I am confident as ever that now is the perfect time to push hard. Provide the best service, increase your advertizing and show strength. Anything less will hurt you in the long term.

[xrac]

I think you’re right; we are not out of the woods yet, with respect to the economy. Also, consumers are more selective now on how they spend their money. The end of the summer is here and people’s thoughts are more on the start of school and their last chance of a vacation.

July was also strong for us, but business in general is down in August. Not just for us but for the all businesses.

I am confident as ever that now is the perfect time to push hard. Provide the best service, increase your advertizing and show strength. Anything less will hurt you in the long term.

 

 

The word from the Jiffy Lube chain is that in mid-August their sales tanked. Car-x was down 5.4% in August in the Chicago market. Our sales were down about 9% in August compared to last August.

[Joe Marconi]

I still feel that we need to remain strong through these times. The more we fight now for our market share the better we will be when the economy turns around. If we retreat and pull back, we might not be able to catch up and our recovery will be in doubt.

[xrac]

Published: 16 Oct 2009

 

 

Automotive Maintenance Takes a Hit from the Economy

 

 

Date Published: 16 Oct 2009

 

 

 

 

By Mary-Beth Kellenberger, Program Manager Automotive Aftermarket, Frost & Sullivan's Automotive Practice

 

As the economy tanked and consumers held back on durable good purchases including cars, there was much hope that the repair industry could be one industry that succeeded during the recession. That success has yet to materialize. In late 2008, there was a spurt of consumers heading to their repair shops, investing in repair services as they prepared to hold on to vehicles longer. That burst, however, was short lived. In early 2009, at the height of the recession, consumers retracted their spending dramatically. In recent research released by Frost & Sullivan, U.S. vehicle owners reported purchase rates of key maintenance services, including oil changes, air filter changes, tire rotation and tire balancing, that were an average of 14 percent below rates reported in 2006. The drops in these services were consistent across different vehicle types, vehicle ages, and vehicle brands.

 

The threat from the recession was so broad that consumers did not know when or how they personally would be impacted. In response, they cut back on all types of spending. Twenty five percent of vehicle owners reported cutting back on meals and entertainment expenses, even though they personally had not experienced a job loss in their household. Frost & Sullivan's analysis indicated that these new behaviors allowed consumers to be segmented into one of three categories.

 

•The fiscally challenged; those whose income has dropped

•The fiscally responsible; those whose income is flat to moderately down but are uncertain about future income

•"Cheap is chic;" Consumers believe they are financially secure but are cutting back

When it comes to automotive maintenance, vehicle owners simply cut back; nine percent of vehicle owners reported that they were less likely to follow the vehicle manufacturer's recommended maintenance schedule. Even consumers who had not experienced financial challenges changed their maintenance behaviors. The driver for this change is not really apparent; it could be fear of impending changes, a need to conform to the prevalent social atmosphere, or seeing the downturn as an opportunity to capitalize on the value presented by businesses during a recession. Research indicates that consumers did not report changing service locations in search of a lower cost provider, and they did not shift their behaviors to become do-it-yourselfers; rather, they simply cut back on services. The challenge to the industry is that the cut backs reduced not only the number of maintenance opportunities but also the number of opportunities to identify needed repairs.

 

In 2009, 7% fewer vehicle owners were likely to repair their vehicle on the spot when a service provider identified a specific problem than in 2006. When respondents reported a recent job loss in the family, the likelihood to repair an unexpected issue when identified dropped by half. In 2006, the economy was doing well and consumers really valued their time. In 2009, cash flow is the all-governing issue, forcing consumers to not only hold back on identified issues, but to prioritize their repairs. North America is a vehicle-based society, so it is not likely that we will see a mass abandonment of the vehicle. As time moves on, the repair shops that help vehicle owners deal with their repairs in the most dignified and cost-effective manner are those best positioned to reap the benefits of the current repair environment.

 

For more information, please contact Johanna Haynes, Corporate Communications, at 210.247.3870 or [email protected].

[Joe Marconi]

Geat article. We too have a mixed sales year. Our numbers are up, mostly because we expanded and launched a new facilty where we do a lot of walk-in service. But people are not willing to let go those dollars that easy.

 

I see the economy being very unstable the next few years, plus I fear that the currect adminisrtation may be damaging long term.