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Posted (edited)

This topic has probably been addressed, but I dont see a search feature here so please direct me if it has.

 

The eventual question regards increasing car count. here's a short back story and how I found myself in this quandry....

 

After 14 years working with a partner in a mixed business facility, in an economically "challenged" area (we sold used cars...cash or buy here pay here (his half) and operated a repair shop (my half)

 

Despite our initial business plans, the two bussinesses ended up working against one another as opposed to enhancing one another.

The general public perceived us as a used car lot thinking we only sold cars and the shop basically serviced the cars we sold. And It was very hard earning the repair business of those car buyers...even offering a discount on service to those buyers. Maybe it was the type of customer shopping at a buy here pay here for the type of car we offered that made it hard to make a customer of them at a legitimate shop....maybe it was a trust thing having the lot that sold it work on it...I still don't know but the two didn't work well. Over this time, in addition to the customers I brought with me to the partnership I was able to establish a pretty good base of solid customers, but after the split and the taking away of all the prep work for the car lot and the time it absorbed (time that usually pushed away paying customers, put a strain on both, and finally forced us to part ways.) we are struggling to book full days now

since we are essentially starting over.

 

Other than my wife who handles the front and books, and a shop "helper" to clean up, stock, do some simple unskilled things, myself handing all "work", we chose to let all other personnel go and start over with a new mindset focused on service customers and customer service! Running the shop like a shop, with the intention of hiring another tech but car count is hindering that..

 

Now the question. We are struggling with effective ways to bump car count. Wife RELIGIOUSLY sends repair recommendations for work not sold during inspections, makes follow up calls, sends thank yous, pushes our referral program, sends seasonal e-mail blasts to our limited e-mail base, etc. All the internal stuff.

 

I have also spent thousands on a direct mail program that I thought (and was told) was a sure fire way to get the phone ringing opening the door for me to get them in the shop and make a customer of them (not working quite as expected)

I have effecient and specific proceedures in place for handling cars and customers, essentially doing all things right internally (i think) we just cannot seem to get them accross the curb to set the hook!!

 

Is anyone else faced with similar challenges. Not the business split, but being a professional facility in a "poorer" area boardering more affluent areas that you cannot get into your shop becaues of it's location? We are right on a major commuter route with HUGE car counts, 1/2 mile from an interstate, nice, clean, well manicued, well equipped facility, I'm a 23 year certified tech...just cant break the stigma of our location and build our customer base.

 

Any help you might have to offer as far as marketing a situation like mine? What's worked for you? Etc. Management Success! told me years ago that we just need to know what buttons to push to get them in the door..and for 10K$ MORE they'd tell me what they were. (Other than moving...loooking at that option but can't do it immediately)

Hoping someone has some personal insight/experience.

 

Sorry to ramble, thanks for reading and thanks in advance for your replies.

Edited by GENUINE
Posted

That is a hard question to answer because what may work in my area may not work in your area.

 

You mentioned referrals. Have you thought about some form of a contest with your current customers for who can refer the most in a period of time wins a prize? Make it something worth while so people will take the time.

 

Not sure where you are but in your area what is something that the local people are involved in? Our area is HUGE for youth soccer and highschool football. I have two highschools within 3 miles of my shop and talk about rivalry. If you have any of this you can always (and the schools are always looking for the money) sponsor games (football, baseball, soccer) I even have a customer with a daughter that plays bowling and the local team is really good so I helped by sponsoring that this year.

 

Getting your name out though local charities is also a great way to raise awareness. Not sure if you are involved in anything like that personally but for me I have used my shop and my knowledge numerous times with my church knowing and experiencing that there is ALWAYS a return not just financially but in the satisfaction part for me.

 

If you get your name and your business name in places that people care about and are involved with they will remember you.

Posted

My 2 cents. A few ideas.... Some may work for you and some may not. Whatever you do it takes persistence. You need immediate results to stay alive. You're in survival mode and must employ every angle you can while you build up your base. You're at war and must go on the offensive! Here's what I've done. It gave us immediate results! Enough to stay alive while we build up our business. Though I'm already located in a high income area I continue to target even more high income earners in other nearby communities. Get on craigslist ASAP and start there for free today. CL sounds like a poor mans portal but let me tell you it has made me hundreds of thousands of dollars in this business. Get your wife on there ASAP and have her post ads continuously on a daily basis, if anything it gives her good practice and keeps her focused on selling and tweaking your message to use in other channels.

 

Message we promote:

 

People drive up to an hour for our honesty, integrity and expertise.

Drive an extra 10-15-20-30 minutes and save $100's more.

10% additional discount for residents living in xxxx cities...

Why are customers from St. Louis driving all the way out to Alorton, IL? Then describe the benefits of your shop. This works as a good way to attract locals as well because if people are coming out from St. Louis than it must be good enough for me too. I can't tell you how many new customers we earned because of this...

etc., etc..

 

In this economy people recognize the benefits of driving to a lower income area to fix their cars. Believe me I fight those shops off everyday because people are willing to drive 20 minutes to save $100. Yes the 3 or 5 mile radius rule still exist but for now you need to run a concurrent marketing strategy seeking local but also a few extra long distance customers. Take advanatge of the economy and people's fixation with saving money no matter how far you are.

 

The whole idea is that you need to go beyond your made up borders and you will be surprised at the fact that you will generate an additional 10-15K per month just by doing this.

 

Get on Google Adwords and increase your online presence on google search and your own website. 50% of our new business comes from these sources. While you're sitting at your shop dead, others are reaping the rewards when potential customers use their phone to search for a local mechanic and their listing pops up. Hire someone to set this up. IT'S WELL WORTH THE INVESTMENT!

 

 

You and your wife need to go business to business introducing yourselves and passing out flyers in your immediate area. Introduce yourself to business owners and employees. These are people who are employed and making money and need their cars to run everyday. Offer a free pick up and drop off service. You can't win the war if you can't conquer ground zero.

Your shop helper could be out putting flyers on cars or hire yourself a flyer guy. First day we went out we got ourselves 3 new customers and more calls follwed up.

 

 

This one has worked like a charm and has helped us close more deals. As we all know giving quotes over the phone is not good business but when you have people whom you know will not bring their car in or who live a good distance away you must give a quote. After giving a quote and customer does not buy and says I will think about it etc and you end the call. Call them back 10 minutes later and say I continued to make more calls trying to find you a better deal on the parts that are needed to fix your car and found it for $20 less, so now your total will be $x. People appreciate it and feel comfortable in knowing that your fighting for every dollar. Next thing you know they say ok let's do it.

 

Service writing training for your wife or just hiring one with experience is key to your success. If you don't hear me on this one you are missing out on big money. Our service writer has closed a ton of deals my wife and I would have never been able to close and for more money.

 

When we first employed the above ideas our closing ratio was 6/10 it has now dropped a bit due to the fact that we're busy and not enough space!

 

You need to make sure you have positve reviews on Google and Yelp. If you don't have this your shop will not survive. This is what people do nowadays. It's become a habit. If they look you up and you have no positive reviews prepare to close your shop or suffer lower revenues.

 

Talk to local towing companies and pay them their fees to drop off cars at your shop.

 

This option is starting to bear fruit for us. Facebook recently changed their advertiser strategy and you can now promote yourself locally to people in your immediate zip codes with a lot more ease and expanded features. I just ran a two week campaign and gained 120 new local followers. I now have 120 new local followers who I will start to promote our services to. My goal is to be at 1,000 by end of this month. I will do this by increasing my FB advertising budget. This is where your wife needs to be. We haven't even began to try to sell them and we already sold 2 brake jobs and an oil change. So we know these people are receptive and reading our posts on Facebook.

 

Send your email list over to your facebook page. When you send out your email make sure it's at the right time. Don't send it at 8 am. People are just getting in and checking a ton of emails. Instead send it between 9-11am or 2-3pm.

 

Just my 2 cents. Post went kinda long so make that 5 cents. :)

  • Like 5
Posted

Wow! Open365, so many good ideas there. I have some homework! Thanks so much for taking time to share that. Definately worth more than .05! :)

 

And to everyone, thanks! Just what I was looking for, real life ideas from the perspective of shop owners who have maybe been in my position, as opposed to the marketer who has the greatest promotional idea ever....

 

Keep them coming, I'm sure others can benefit from fresh ideas that they haven't tried.

  • Like 1

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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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