By Joe Marconi
I can't tell you how frustrating it is to give a price on a radiator to a customer at the service counter, while he's on his phone searching for the part!
Here's what I do when I get a customer that tell me he can get the part cheaper....I agree with him!
I let him know that he can get the part cheaper, just like he can buy a steak and potatoes cheaper at the super market too. But he'll pay more for the steak and potatoes at a restaurant.
And then in a calm manner, I review all the benefits of me suppling the part, the warranty and the fact that if the part is wrong or defective or fails in the future, he will have no recourse and will have to pay to have done all again.
For most, it works. For many it's all about price.
Now Most IMPORTANT IS THIS: The reason why you don't mind spending more for a steak at a restaurant is because of the experience. So, make sure the customer experience clearly demonstrates the value of why people need to do business with you. When Value goes up, price becomes less of an issue.
Hope this helps. Let's hear from you on this frustrating topic!
By Joe Marconi
The aftermath of the great recession, which caused many new car dealers to go out of business, has resulted in a new breed of dealers. They have come to realize that the lower margins on new cars, combined with the intense competition, means that their service and parts departments must become primary profit centers. Which also means that they need more customers beyond the warranty period …. and that means they want your customers.
Ten years ago, I laughed at the attempts of the local dealers to try to steal my customers...but no longer.
Smart dealers have 4 primary strategies:
1. Offer free oil changes, - some for life, some of a specific time period - And setting up the first oil change service at the time of the sale
2. Wrap future maintenance plans into the monthly payment
3. Sell maintenance plans at the time of the sale
4. Use recalls as a way to sell services and repairs.
What are you doing to fight these strategies?
Six metro Detroit auto repair shops and dealerships are under fire by the Michigan Secretary of State for allegedly not being in compliance with state regulations.
Two repair shops were ordered to cease and desist from conducting business. The agency also summarily suspended the business registrations of four other facilities.
According to a news release from the agency, the cease and desist orders were issued to:
Star Motor Auto Repair, 21579 Schoenherr Road, Warren, owned by Jack Musa. The facility allegedly performed brake, electrical system and tune-up repairs without a certified mechanic. A regulation agent discovered Musa’s mechanic certification had expired, the agency said, but he was continuing to repair vehicles. Star Motors' telephone number has been disconnected and Musa could not be reached for comment. MC Auto Repair, 1650 Waterman St., Detroit, owned by Michael Castro, for allegedly operating without certified mechanics. A regulation agent completed an inspection at the facility Dec. 11, the agency said, and found Castro, whose certification had expired in July 2005, performing repairs. Castro met with department staff at a preliminary conference in January, and the temporary cease and desist order was issued Feb. 8. Castro could not be reached for comment. MC Auto Repair's number is not in service and the facility is marked "closed" on Yelp. The cease and desist orders prohibit the businesses from performing any more repairs until the facility complies with state law.
The agency also suspended the registrations of the following businesses:
VAN Car Co., 7101 E. Eight Mile Road, Warren, owned by Nadhem Shaiya, was suspended March 15. The dealership no longer is operating at its registered address and failed to notify the department’s Business Compliance and Regulation Division of a change of address. A preliminary conference was scheduled for Feb. 12, but the dealership owner failed to attend. Shaiya could not be reached for comment. Witko Group Inc., 33457 Gratiot Ave., Clinton Township, owned by Don Witkowski, was suspended March 18. A regulation agent attempted to conduct a lot and records inspection Feb. 6 and again Feb. 7, but the dealership was closed with no sign or hours posted. Witkowski told the Free Press on Friday that a dealership is not at the site. He said he owns the building, in which there is a separately operated auto repair business. Witkowski also said he is unaware of any suspension and has not been contacted by the secretary of state. Mogul Trading, 2801 S. Beech Daly St., Dearborn Heights, owned by Milton Small, was suspended March 8. Lot and records inspections were attempted Jan. 16 and again Jan. 28. The dealership wasn’t open during posted business hours and couldn’t be inspected. Small could not be reached for comment. Superior Plus Auto Sales Inc., 10614 Joy Road, Detroit, owned by Ghada Chokr, was suspended March 8. A regulation agent attempted a lot and records inspection Jan. 16 and again Jan. 28. The dealership wasn’t open during posted business hours and couldn’t be inspected. Chokr could not be reached for comment. The dealerships may regain their license if they show they’ve complied with the law. Consumers can verify whether the repair shop they are using is registered with the state by using the online search tool at ExpressSOS.com and clicking “Business Services” and then “Repair Facility Services.”
News Source: https://www.freep.com/story/news/local/michigan/2019/03/29/michigan-auto-repair-shop-dealerships/3301802002/
NEW YORK, March 27, 2019 (GLOBE NEWSWIRE) -- The global Automotive Repair & Maintenance Service Market is estimated to reach USD 810.30 Billion by 2026, according to a new report by Reports and Data. This can be mainly associated with the growing need for passenger’s safety. Increase in awareness related to vehicle maintenance and safety is expected to drive the market. Increased road safety awareness among the general population, the average maintenance and repair expenses by an individual are anticipated to drive the market. Moreover, an increase in sales of used cars in many regions, especially in emerging economies; technological advancements pertaining to vehicle safety, are also fuelling market growth. Furthermore, cost effectiveness, availability of service flexibility and reliable maintenance services are also propelling the market growth globally. Based on statistics, increase in average age of vehicle due to technological advancements and the average miles driven per vehicle are also significant factors stimulating market demand.
North America region is projected to grow at a CAGR of 5.8% during the forecast period with the largest share of 32.50% in 2018. The improving countries are the primary consumers of vehicles in this region. The Automotive repair & maintenance service market in the Asia Pacific has been expanding owing to the rise in technological advances in the area.
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Further key findings from the report suggest
In the Automotive Repair & Maintenance service Market, the tire segment accounts for the largest share of 33.48% in 2018 due to the growing extensive use of vehicles for other daily purposes. Tire services include tire pressure monitoring, replacement of tires, repair of flat tires and misalignment of tires. Battery services cover replacement of automotive batteries. Wear and tear parts include brake wheel end, shock absorbers, driveline, engine, and suspension. Collision body includes crash parts, coating and painting, refinishing and repair materials. In terms of service providers, the automotive repair and maintenance services market is segmented as an automotive dealership, locally owned repair shops, general franchise repairs, and others. The automotive dealership segment is estimated to drive the growth of the market. Presence of various locally owned repair shops is also growing at a significant rate due to the increase in inclination of consumers toward the locally owned shops. Based on service type, the car maintenance service type is valued at USD 299.88 billion in 2018 and is estimated to reach USD 478.08 billion by 2026 at a CAGR of 5.8% during the forecast period. Some of the trending possibilities in the automotive repair and maintenance services market are an inclination towards the adoption of remote vehicle diagnostics system and collaboration & partnership between small locally owned repair shops & fleet and leasing firms. APAC is considered to be the second largest market for automotive repair and service market with revenue of USD 140.39 billion in 2018 and is estimated to reach USD 218.78 billion by 2026 at a CAGR of 5.5%, due to the presence of several automotive hubs in the region. Moreover, large consumption of passenger vehicle across Asia Pacific is also driving the growth. Europe is estimated to grow at a CAGR 4.4%, during the forecast period. Key participants include Arnold Clark Automobiles Limited, Driven Brands, Inc., Ashland Automotive, Inc., Asbury Automotive Group, Inc., Belron International Ltd., Carmax Autocare Center, Jiffy Lube International, Inc., Goodyear Tire & Rubber Company, Halfords Group Plc., Firestone Complete Auto Care. Read more at: https://www.reportsanddata.com/report-detail/automotive-repair-and-maintenance-service-market
For the purpose of this report, Reports and Data have segmented global Automotive Repair & Maintenance service Market on the basis of Parts, Application, Service type, Technology, Service provider and region:
Parts Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
Tires Wear and tear parts Collision body Batteries Others Service Type Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
Car Maintenance Services Car Repair Service Application Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
Passenger vehicle Commercial vehicle Mechanical Technology Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
Microcomputers Aluminum Wireless Others Ask for Discount at: https://www.reportsanddata.com/discount-enquiry-form/1158
Service provider Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
Automobile dealerships General franchise repairs Specialty shops Locally owned repair Shops Others Regional Outlook (Volume, Thousand Units; and Revenue, USD Million; 2016-2026)
North America U.S.
Europe Germany UK
Asia Pacific China India South-east Asia
Latin America Brazil
MEA Browse More Reports of Automotive and Transportation Category At: https://www.reportsanddata.com/report/category/automotive-services
About Reports and Data
Reports and Data is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target and analyze consumer behavior shifts across demographics, across industries and help client’s make a smarter business decision. We offer market intelligence studies ensuring relevant and fact-based research across a multiple industries including Healthcare, Technology, Chemicals, Power, and Energy. We consistently update our research offerings to ensure our clients are aware about the latest trends existent in the market. Reports and Data has a strong base of experienced analysts from varied areas of expertise.
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