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Good times, bad times, auto repair business ups and downs. Profit gains and money loss in a merry-sales-go-round. Oh yeah! Finding new customers is not always easy, and you can suffer for it during those times when it's not.

 

You can keep putting out the deals in expensive advertising, but when that fails does that mean you go broke? Absolutely not!

 

 

 

Not if you have already built up a customer base, and have provided those customers with good auto repair service and good products. What you have built up by doing this is your company's number one asset.

 

Do you know how much that asset is worth? Do you know the lifetime value of your customers? That is how much a customer spends a year on average with you, times the number of years they stay a customer, times the number of customers you have.

 

It can add up to a lot, if you are doing things in the right way.

 

Do you have marketing geared toward your current customers?

Do you take the trouble to find out things they specifically and generally like and dislike? Do you ask what you might do to serve them better? Do you publicize a solid guarantee and honor it?

 

With the right customer service you can keep your customers for LIFE!

 

Find out information about your customers. Keep a list of their names and addresses so you can keep in constant communication with them by sending a heads-up on deals, new stock, and anything that would make them feel special. Postcards are perfect for doing that. Even get their month and day of birth so you can send them birthday cards giving them their own special discount on anything they want.

 

Give away things to your customers. Make promotional items freely available like pens, pencils, pocket planners, calendars, calculators, key-chains, mugs, you name it. All those things will have your business name, address, and phone number on them. Sending something like that to them in the mail would even give it more value in your customer's eyes. The more useful the item, the more you will be in the customers sight and mind. That is a good thing!

 

If you have a clothing store, get to know your customer's sizes. As soon as they walk in the door, greet them by name and say you have saved something for them that you know will look great on them. Then pick the newest most expensive piece of clothing to show them. Say that they simply must try it on, and while they will be in the changing room anyway, fix them up with everything to go with it for trying on as well. You will collect sales for more items once they see how good they look in them. Throw them over the edge by giving them a break in price if they get the entire outfit with accessories.

 

If you do not have a clothing store, find a way to get samples of what you do have to your customers that they can try. Get them to use something on a trial basis. Once you do that, their ownership of it is practically assured! Once someone is in possession of something, giving it up creates the painful emotion of loss.

 

A happy customer is a loyal customer. Loyalty comes by your customers knowing you care about them, are actively educating them in the things they are interested in, and knowing you will continuously be able to meet their needs in the best way for them.

 

The customer is always right in that they know what they want. You are always on top of it by presenting what you have as not only something they want, but something they've got to have. And not just something they themselves got to have. Maybe they have a husband, wife, or children. Compel your customer to treat the family too.

 

Here is something to jump on. Perhaps your customer is a business owner. Get that person to send the customers for their business over to your business. Beyond word of mouth referral, they can do that by giving coupons good for things in your store, or maybe you can get permission to put a raffle box in their store that gives prizes given by your store. You can either pay them to do it or return the favor. There can be many ways to help each other in cooperation, even paying each other commissions, and also bundling your two company's products and services together at favorable prices for customers. You will find that such arrangements, called Joint Venture Partnering, can be very lucrative as it quickly builds your customer base.

 

It pays to know your customer, and to know how to supplement and expand your products and services with things like go-along additions, deluxe automatic maintenance service, special package deals, premium upgrades, complimentary products, etc. Think of anything you can.

 

Give your customer something to put in their purse or wallet, something that equals money to them. A discount card that gives discounts on purchases, or a buyers card that gives rewards after a determined amount of purchases accumulated from multiple visits are two examples. The surest way to get your customer to spend more with you is getting them a charge card. Your own store credit card in your customer's possession is guaranteed to spike sales.

 

You will have a solid relationship with the customers you have already gotten, and through that relationship, your business will evolve!

 

This gives lifetime value of a customer a whole other meaning. You are finding ways to improve yourself and your business. Take periodic customer surveys. That way the customer is giving intellectual input as well as money into your business, and if you are innovative enough to make use of them, the customer will more than likely also be giving you new customers by recommending you to their friends.

 

Other things you can do: offer your customers incentives for making referrals & collect testimonial stories from them to use in your ads because the best advertising comes from satisfied customers. Not only that, a customer that gives a testimonial for you will become even more loyal by doing it. Imagine that! It just goes to show how things get solidified when written down. Do you write down the goals you have for your business? How about the goals of your business?

 

Write a Service Pledge to your customers. Post it up where you do business so your customers know what great service they can expect. Find the greatest benefit that solves the most major concern to your customers, perhaps something unique that no other business in the area offers. Make a catchy slogan out of it. Use it wherever the name of your business is displayed so that your business will be known by the slogan. When employees eagerly answer the phone, have them not only say the name of the business, but the slogan as well, followed by giving their name and asking "how may I help you?"

 

If you spruce up your business enough to make it an interesting topic of conversation, your customers will even talk you up to strangers they meet. Your reputation will travel by work of mouth.

 

Instead of you looking to find new customers, they will be finding you. And on top of that, their lifetime value will be much greater by your building the greater value into your business. This happens just by catering to your current customers rather than doing the usual routine of chasing after new ones.

 

That is why you will never lack if you keep your auto repair customers coming back.

 

 

 

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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