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By Joe Marconi
We sell service, not products. Yes, we sell water pumps, brake pads and air filters. And yes, those are products. But it’s the service we sell, the customer experience, which lives on well beyond the customer leaves your shop.
Think of it this way; when you buy a watch, or a new cell phone, the experience of what you purchase continues after the sale. When we replace a customer’s water pump or air filter, there is very little about those items that lives on beyond the sale.
But, what does live on is the customer experience. The better the experience, the more likely the customer will return to you. So focus on the customer experience, not the products you install.
By Elite Worldwide Inc.
Whenever a customer tells you they can’t afford to do the repairs, and they ask you if you can help them out “this one time’”, you need to give careful thought before you lower your price.
First of all, there is a cardinal rule in sales that says before lowering your price, you need to build more value in your service. Yet as we all know, there are going to be some occasions where no matter how good your sales skills are, the customer simply won’t have the ability to pay for the recommended services. In such cases, you and your advisors will have three options. One, you can let the customer walk; two, you can drop your price; or three, you can follow the proven path we have provided to tens of thousands of advisors over the years.
First of all, if you let them walk, both you and the customer have lost. They’ve lost the time they’ve invested in having their vehicle inspected, and when they leave your shop their problems still exist. You’ve lost the marketing dollars you invested in bringing the customer through your door, you’ve lost the time you’ve invested in inspecting the vehicle and estimating the job, and you’ve lost the opportunity to help someone in need.
The second option you have is to lower your price, and while you may close that sale, you’ll also be sending a message to your customer that if they wouldn’t have asked for a discount, they would have paid too much. If that’s not bad enough, it gets worse, because they know if they ever decide to come back they’ll need to negotiate with you, regardless of the prices you quote. The good news is, there’s a third option, and it’s one that’s used by the top shop owners in America with great success….
Putting first things first, you’ll need to see if the customer qualifies for any legitimate discounts you offer, such as Senior Citizen, AAA or Military discounts. You can also limit the number of repairs to the ones they can afford at the time. Another option (which works well in some cases), is to scale back on some of the benefits, such as the length or terms of the warranty. If you and your customer find none of those solutions to be acceptable, you can consider telling them that you will keep their vehicle at your shop (space allowing), and perform the repairs if and when your time allows (when another customer cancels their appointment at the last minute and your tech has the downtime, for example). What your customer would be sacrificing is the immediacy and convenience.
Please bear in mind that when making any decision to lower your price, you need to ask yourself who is ultimately going to pay for the discount, because the answer will inevitably be your other customers. Secondly, if you have the right advisors, with the right principles, they’ll know in their hearts it’s just not right to charge two people different prices for the same service. To put it another way, I’m sure you would not want your mom or dad walking into any business and buying a product or service when you know the customer right before them… paid less. Never forget, principles, not shell games, lead to two things: higher profits, and the ability to sleep at night knowing you are not playing games… with other people’s money.
Since 1990, Bob Cooper has been the president of Elite Worldwide Inc. (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management seminars. You can contact Elite at [email protected], or by calling 800-204-3548.
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While looking for absentee investments, I found a self-storage and Auto repair shop on sale. The purchase price is small and also cash flow is very high to ignore.
But, I am a Software Engineer and I am New to running a Business leave alone an Auto repair. The shop is 2 hrs drive from my home. The owner is ready to provide 2d/week consulting service, and lone other mechanic is ready to work with new owner. Plenty of cash transactions. No computers to log work orders. Specialist in exhaust systems. The mechanic is not insured. Shop and storage has some level of insurance. Small town and original owner ran business from the shop for 33 years. Now wants to retire.
I have plans to modernize the work orders and add cameras for remote tracking. I will have to add one more mechanic, and then trust mechanics and also introduce softwares to increase transparency.
For someone who is interested in Auto repair in general, do you think its good business to run as absentee? I plan to spend few hours at the shop once a week and less frequently later. I am 40 year old, I think right time for me to start a business and get off the corporate world.
Please advice. Appreciate.
Twas the Night before Christmas (Mechanic style) Twas the night before Christmas, and all through the service bay, Not an engine was stirring, just old Santa’s sleigh. All the air hoses were hung, by the compressor with care, The mechanics had the day off, I’m the only one there. I was just an apprentice, but wanted to show St. Nick just what I knew, My boss was all for it, said it was OK if I turned a few screws. With visions of being a full time mechanic, dancing in my head I was going to give it my best shot; I’ll fix this old sled. I gave the key a twist,and listened in dismay, That little red hot rod needed service, in such a bad way Then from under the hood there arose such a clatter, That even St. Nick had to ask, “So, what’s the matter?” I flew from the driver’s seat and raised the hood in a flash, Nearly stumbling off my feet, from my quick little dash. The under hood light, glimmered onto the engine below, The fan belt had broken, and a spark plug blew out a hole. It’s something I can handle; I learned this stuff in school, I’ll have this fixed up in no time; it only takes a few tools, I started it up and all eight cylinders were firing away Just a few minor adjustments and he could be on his way That’s when I noticed, his sled was packed full of all sorts of toys… He hadn’t finished his deliveries, to all the girls… and boys. He was dressed all in red, from his head to his foot, And his clothes were all tarnished with ashes and soot Anxious he was, to finish his trip as soon as he could, With my wrenches a flyin’, he knew that he would. It was up to me, to get it fixed this very night, He still had a long way to go, before it was daylight. His eyes, how they twinkled, his dimples, how merry His cheeks were like roses, his nose like a cherry. And the beard on his chin was as white as the snow. I knew it was Christmas Eve, so I couldn’t say no, He had a broad face and a round little belly That shook when he laughed, like a bowl full of jelly. He was chubby and plump, a right jolly old elf, And I laughed when I saw him, in spite of myself. His sled was like new, after the job was all done, Now that it’s fixed, he could get back to his run. He reached into his huge bag, and pulled a box out with a jerk, Said he knew just how to thank me, for all of my hard work, I ripped open the present, and Oh, what a sight! Snap On wrenches and sockets! Boy was he right! As he pulled from the parking lot, he held the throttle to the floor, Just to show off, he passed by the shop, once more, This guy Santa, he’s a little strange, at any rate, He had a name for every cylinder, in his little V8. I could hear him shout, so loud and clear, Naming off each cylinder, as if they could hear. "Now, Dasher! Now, Dancer! Now Prancer and Vixen! On, Comet! On, Cupid! On, Donner and Blitzen! I heard the tires screech, as he caught second gear, Off to deliver those presents, some far, some near. Then, I heard him exclaim, just before he drove out of sight, “Merry Christmas to all, and to all a good night!”
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By Joe Marconi
Here's a tip I have posted before, but it's worth repeating.
One job that goes unnoticed most of the year is the job of the part's driver. You get part deliveries all day long, every day, all year long. Many times, these part's drivers take all the abuse due to wrong parts, the parts took too long to be delivered, on and on and on. Those drivers may not say anything, but they take it to heart.
So, here's what you are going to do. Buy small gifts, such as small boxes of candy or chocolate. Nothing expensive. During the holidays, give all the drivers one of these small gifts and say "Thank you, I appreciated what you do."
Two things will happen. First, the driver will be stunned and will not know what to say, and they will be very thankful that you thought of them.
The second thing that will happen is this: The very next time those part drivers have three delivers to make at three different shops, what shop do you think they will want to go to first? Yes...Yours!