By Joe Marconi
The other day, a customer asked my service advisor, if he would price match a set of tires. This customer got an online quote from the internet; a local TIre Store know for discouting tires.
My rule, I don't price match. My prices are competive and fair.
Would you price match just to get the job, and sacrifice profit? Remember, no one really knows the true cost of any service or repair until the car is in the shop. So, internet quotes are not set in stone.
Our Service writer is paid 8% on all sales. When he is off for 2 days, we have another hourly person that service writes. My question is we pay the SW that was off for 2 days 8% on all sales, but take them as vacation days. The person filling in (he does a great job) pay him the difference if he was service writing and would be commission. Looking to see if somebody has a better solution. If the regular SW is on vacation, I can figure the sales from his last day till he comes back. That is not a problem
By Mail Shark
I hear a lot of auto repair shop owners say they don't want to offer a cheap oil change coupon on their direct mail marketing. They feel the cheap oil change coupon brings in the wrong clientele, and they don't want to devalue their brand and position themselves as the cheap oil change shop.
As a quick note, the concept behind the cheap oil change offer is that it is a loss leader and utilized to entice new customers. The key is getting new customers through the door, which the cheap oil change can be extremely effective at doing. Once you get them in your shop and you do a great job for them, you can build a great rapport with them and win them over as a loyal customer.
All that said, you will always know your business better than any marketing company. Therefore, we certainly can't argue with the fact that you would not like to use this strategy if in fact you have already executed a cheap oil change coupon campaign and it did bring in the wrong clientele.
However, having an oil change coupon as part of your shop's direct mail marketing strategy is critical. Here are a few reasons why.
An oil change is something that every non-electric vehicle owner will need at some point in time. Consequently, I would venture to say that most vehicle owners are familiar with what an oil change is more so than any other maintenance service. Compare that to a timing belt replacement coupon or a serpentine belt replacement, each of which the average consumer may not be familiar. When you have a coupon that is familiar and relevant to everyone that you are targeting, you have a much higher chance of increasing redemption rates.
Therefore, for those shop owners that are afraid of attracting the wrong clientele or devaluing their brand with a low-price point oil change, the simple fix is to increase your oil change price point to a number that you are comfortable with and that is still a value from a consumer perspective. An alternate option would be to offer a specific $ off discount that you are comfortable with — for example, $10 off any conventional oil change & 15 off any full synthetic.
My next recommendation, if you are a general auto repair shop, which is a non-negotiable one, in my opinion, is to structure your oil change coupon to offer both a conventional and full synthetic oil change offer. All too often, shop owners only offer a conventional oil change coupon. A conventional oil change coupon is fine. However, it will never appeal or be applicable to owners of vehicles that require full synthetic oil. There is no reason to limit your offer to only appeal to a specific set of vehicles. It's crucial you cast a wider net and appeal to as many vehicle owners as possible. The simple and quick solution is to offer both options.
PRO TIP: if you are concerned about coupons bringing in the wrong clientele, think again. Even the wealthiest consumers use coupons.
Here is a snippet from our blog post entitled "WHY YOU SHOULD BE SENDING DIRECT MAIL COUPONS:
It might seem surprising, but wealthy people love saving money with coupons. In fact, households with annual incomes of $100,000 or more are twice as likely to use coupons than households earning less than $35,000 a year.
Wealthy customers may be able to afford your most expensive products and services, but that doesn't mean they don't want a good deal. The majority of them are cautious about spending money and rarely make frivolous, unnecessary purchases. Rather than viewing your business as cheap, they'll appreciate your coupons and the opportunity to save money,
You can check out the entire blog post here.
Executive Vice President of Sales
Email: [email protected]
Oil Change Coupon Example.pdf
By BOYDS AUTO SERVICE
Is anyone using 1st mile merchant services for CC processing? They are partners of Mitchell 1 and seem to offer great rates and options. They also provide customer financing. I’m considering switching from my current processor but would like to hear real world experience before hand.
By Nevil Jay
I'm currently looking into a business acquisition. It's a wheel repair shop based in South California. I have questions in terms of profitability and also, the expenses involved within the business.
I have profit and loss statements of the business. They currently operate 24/7 and have 30-35 employees. I am looking for someone who has experience in this sector that may be able to give me some unbiased advice. I also wanted to somehow come up with a valuation of the business. It operates out of a leased building, but consistently profits the owner a large amount of money. Who should I look for to verify these numbers? Will any CPA be able to understand?
Thanks in advance,