By Eric Roberts
Firstly let me say that I an just a regular guy from the UK who is the owner of a seven bay service centre/garage. I am not a financial expert. The dreaded inflation is upon us again. For the guys as old as me then this is nothing new. Back in the 70,s we had 15% inflation, but we all got by and lived for better trading days. Here in the UK we have always looked up to the USA because of your business prowess. So what do you guys look out as your worst enemy!
When prices are going up then I find that the gap opens between rich and the poor's disposable income. So this question will effect garage owners in different areas. My garage is in a poor area with many immigrant families who drive cars. So this means we have to be more flexible with pricing. Finding out if your customer can afford that service ! For this reason we devised a three tier service pricing structure. This has also the effect of not loosing your profit margins.
The lowest price should include an oil and filter change and a general vehicle check over. This way we find the customer will perhaps be able to afford a service and your profit margins wont drop. This is just one small idea that we carry out! What do you guys do in these times of high inflation ?
In the world of the customer, do they know what DVI stands for or what an inspection really is? Have you thought about calling it a “Vehicle Health Check?” My panel discusses the importance of transparency with your customer and why you might want to change the term ‘DVI.’
Clint White, Service Advisor Coach & Shop Consultant with CWI. Listen to Clint’s previous episodes HERE Ryan von Steinen, General Manager, JB Import Automotive Repair, St. Petersburg, FL Adam Liu, Essential Auto Care, Middle Village, NY Key Talking Points
Inspection vs Vehicle Health Reports. With a digital format available that delivers much more transparency and value, we need an UPGRADED term for our in-depth process that we present to each customer The value in GREAT and Personable Vehicle Health Reports to technicians, advisors, and the facility. In states such as NY, any kind of "inspection" usually resonates with State Inspection. In-depth Vehicle Health & Safety Evaluation IN-DEPTH – An extremely high-value, thorough & extensive process that focuses on knowing actual conditions, measurements & facts. If it can be known it WILL be known; and if it is known then it WILL be shown – C. White VEHICLE HEALTH – Just like the human body, a vehicle can be in a poor state of well-being, leading to unreliability, poor fuel economy, and inconvenient break-downs. SAFETY – Equally as important as Vehicle Health, Vehicle Safety or the lack thereof directly impacts the consumer’s peace-of-mind EVALUATION – A physical assessment (including test drive) of the entire vehicle performed by an expert technician in which the condition of every accessible system in the vehicle is scrutinized, documented, and reported to the customer in an easily understandable format.
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Check out today's partners: Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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By Joe Marconi
Here is an excerpt from a report from Lang Marketing: Read and enjoy!
Six Major Takeaways
Lang Marketing expects that new car and light truck volume will remain in low gear from 2020 through 2023 compared to the previous four years (2016 through 2019). Lower new vehicle annual volume will trigger five significant aftermarket changes that will boost the volume of aftermarket products from 2022 through 2030. By increasing used vehicle prices and shifting miles to older vehicles, lower new vehicle sales will boost aftermarket product volume through 2030. An increase in the average age of vehicles and more older vehicles on the road, both resulting from lower new vehicle sales, will provide a tailwind for aftermarket product growth. Although there will be fewer vehicles in the repair-age sweet-spot between 2026 and 2030, this will create a mileage shift to older vehicles and an increase in the upper age boundary of the repair-age sweet-spot, which will be positive for aftermarket product growth Lower new vehicle sales will slow the growth of Electric Vehicles on the road, increasing the use of ICE vehicles and pumping up their aftermarket product volume. Source:
Lang Marketing Resources, Automotive Aftermarket Consulting, Research and Analysis