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Is AAA your Competition?

Curt Hogan

By Curt Hogan
in Dealing With Competition

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Curt Hogan Apprentice

Curt Hogan

Posted
Posted

AAA in our area has, for the last couple of yours been running battery replacement trucks in addition to the normal towing vehicles. I stated my displeasure with this program to my AAA representative when I was participating in the AAA Approved Auto Repair program and using them as my towing service. Since I have ceased participation in the program, my tow in rate has more than doubled.

I was reading a recent issue of Brake and Front End magazine today and got to wondering if those of you who are still involved with AAA are as alarmed as I am even though I am a former participant? According to the editorial AAA has purchased a 30 something location, auto repair franchise, operating in several states in the Midwestern and Eastern United States.

My concern is this, when I was a AAA Approved shop I advertised, as I'm sure most of you do, The AAA logo in all of my print advertising, on my radio advertising and even my Yellow Pages ads. Heck, I even allowed them to hang their sign on my pole and building. All of those years I paid dues to belong to and advertised for an organization that is now a direct competitor.

Yeah, I may just be venting but really would like to know what you all think?

  • 1 month later...
  • 6 months later...
  • 1 month later...
Southards Enthusiast

Southards

Posted
Posted

There is one shop in town, does not provide towing service, that is an AAA approved shop. He get's all first shots at all tire work and mechanical repairs. I thought it took more than just 300 names. Can't find any direct info for details to sign up. Any links anyone?

  • 3 years later...
ATSAutomotive Collaborator

ATSAutomotive

Posted
Posted (edited)

I am on the other end of this, my shop started off as a AAA Emergency Response Server provider. WE are the battery truck guys. It helped my business flourish as many member cars arent starting and they automatically assume its the battery. I get all kinds of tow ins from my guys when they are alternators, starters, crank sensors, timing belt, you name it. My guys also have a very high rate of getting members on the go. Meaning they are able to help the member get started and off to where they need to go or to drive to a shop. Shop became AAA approved after the fact and it has not been a deterrent for me. The shop approval in my opinion hasn't necessarily brought me ALOT more work but it puts new customers at ease and partially because my AAA guys are already getting stuff towed in.

 

I will agree though that it is alarming they are buying up chains and doing there own thing. I will say though, with the way Service Providers act and take care of customers. AAA almost HAD to do this to take care of their members. Our numbers have been some of the best in our region and all we do is jump start people and if they need a battery, we simply ask them if they would like a new one. Yet, service providers around us would call me asking how the hell we sell so many batteries. Honesty, Integrity and just plain getting to their breakdown location within a decent amount of time! Good business is just taking care of your customers. Make a profit but take care of your customers!

Edited by ATSAutomotive
  • 2 months later...
FROGFINDER Rising Star

FROGFINDER

Posted
Posted

These days one must expect the customer to ask for a discount. It should be part of your estimate on the repairs/services that you sell. Our AAA DISCOUNT WAS 10% OFF LIMITED TO MAX $50.00 OFF.

UsedTireShop Collaborator

UsedTireShop

Posted
Posted

I have a simular situation with my local AutoZone. I lost a battery sale to them this week. I called the store manager to express my anger and I was informed that he agreed with me but corporate wasn't going to change. This week my guys are instucted NOT to purchase from them so I hope they enjoyed the $99 battery sale.

 

I think it is wrong for these auto part stores to play mechanic. Free installation of wiper blades, batteries, lamps and scanning CE lights hurts shops like mine.

 

(I want to weld the battery hold down bolt and send the car to AutoZone for a new battery out of spite) LOL

Richard Ehler Explorer

Richard Ehler

Posted
Posted

In Atlanta, GA. AAA is opening up car centers. They have about 8 so far. They charge is $1000 per year to be certified by them and then open up a center down the street!

 

  • Like 1
  • 4 weeks later...
Curt Hogan Apprentice

Curt Hogan

Posted
  • Author
Posted

Since I am no longer affiliated with AAA I don't know all the particulars, but local shops that are AAA approved have recently received notice that the program is changing. There is a whole new set of rules and requirements to participate. During my conversations with other owners, their biggest concerns are a discount is now mandatory and they now require you to agree to begin work on AAA customers vehicles within 1 hour of wrecker drop off! There are other requirements but they escape me now.

Tires Too Collaborator

Tires Too

Posted
Posted

The shop can tell AAA that they are able to handle "Priority Service Tows" or not. If you tell AAA that you can handle "Priority Service" it means you will triage those cars within an hour to let the customer know what amount of time you will need to diagnose or fix the vehicle. You can tell AAA that you can not handle any priority tows at any time of the day or any day of the week.

At first glance the new requirements may seem onerous on a shop, but we have not found that to be true. We have had a good relationship with AAA and these new requirements help to make the AAR program stronger and more exclusive. In Northern NE, AAA does not operate repair shops and has told us that they will open repair facilities.

DanW. Apprentice

DanW.

Posted
Posted

We recently dropped the AAA program. They wanted us to give them all of our customers email addresses to perform regular CSI reviews. We have always told our customers that the email addresses are for internal usage only.

DanW. Apprentice

DanW.

Posted
Posted

For us here is Wisconsin we were contractually obligated to start diagnosis within one hour and we had to give a 10% discount on labor only. So not only did I have to put my full paying customers on hold but, I had to do so at a discount! On top of that, we were often made out as the bad guys when we got surprise tow ins. There was no way we were going to be able to service them in a timely fashion. This is another reason we kicked the AAA program.

  • 3 weeks later...
alfredauto Experienced

alfredauto

Posted
Posted (edited)

We are lucky to be the only shop within 5 miles of a college. The kids call AAA, we are the only shop they can get towed to for free. Works out good for us and the towing companies, plus I keep a part of my lot clear for AAA tow ins so its easy for the rollback drivers to get in and out. We never say no to tow ins. But, we are not a AAA paying member garage so there's nobody telling us how fast to work. Like I've always said following someone else's plan benefits them, now if there was heavy competition the $$$$ might be worth it.

Edited by alfredauto
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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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