Getting customers in the door or calling

[mmotley]

I'm a little unsure if this is normal business growth rate, especially given the niche market I am in and also being such a new business. I opened the shop doors to a Lexus and Toyota Specialty shop July 8th, 2013. I came armed with a list 3,752 names and addresses of Lexus and Toyota owners in the county my shop is located in. 1537 of those names belonging to Lexus owners (2010-2000 Year Model) and the remaining 2215 names being Toyota owners (2010-2008 Year Model). I also had an outrageous expectation of customer turn out from the mail outs. Here is the date ranges of mailouts I sent when I opened.

 

7/08/13 - Sent out the first 20!!!! Lexus mail outs (I know, go ahead and laugh, boy was I foolilsh!!!)

7/15/13 - Sent out the next 100 Lexus mailouts

7/22/13 - Sent out the next 100 Lexus mailouts

7/23/13 - 100 Lexus mail outs

7/24/13 - 100 Lexus mail outs
7/25/13 - 100 Lexus mail outs

7/26/13 - 100 Lexus mail outs

7/29/13 - 100 Lexus mail outs

7/30/13 - 200 Lexus mail outs

7/31/13 - 400 Lexus mail outs

8/1/13 - the last 237 mail outs

 

So far I have had 7 ROs, and the phone rings about once a day, with the exception of today (no calls or drive ups).

 

Today, 1000 of the Toyota mail outs should be going out. I'm just kind of curious as to what other's opinion might be on my business model. Obviously I expected a lot bigger response then I am getting (see where I only mailed out 20 ) . Should I carry on as expected? Should I be worried at this point? I can purchase another list of Toyota owners, working my way down to 2000 YM.

 

I know I have heard people say that their father started their shop, and it took 18 years to get where they are today... But then I hear others talk about hitting close to $750k in sales by their second year... Any advice, suggestions, pep talk, tough love, whatever is greatly appreciated...

Edited August 13, 2013 by mmotley

[CARMandP]

If you haven't already done it make sure you have your google place page setup with all your information and pictures if possible. Also go through and make sure you also are listed on as many local search engines as possible. It will take time to start getting the phone to ring. I actually had already started a customer base out of my own personal garage before I "officially" started on my own. I get a lot of business from internet searches. Get your facebook page setup if you haven't already and do some advertizing there as well. You can target an area well that way.

[nmikmik]

a. Welcome to the wonderful world of business management!

b. Sorry to hear this results from the direct mail.

You have about .5% closing rate on your mailings. The average response to a direct mail campaign should be around 3.4%

1. I think you are almost better off targeting the same names and addresses 3-4 times in the row rather than trying to blanket all the names on the list. In advertisement consistency is more important than almost anything else.

2. You must have a good online presence and reference it in your mailing to increase the "call rate"

c. Handwriting the name and address (can be done by hired school kid) increases the "open rate" about 75% from my experience.

 

Send me a PM with your email or paste your flyer in the PM, maybe I can give you some critique of the content.

Wish you luck!

[xrac]

You need to have an offer that catches their attention. Don't do a me too type of advertisement? What kind of mailer did you use?

[Alex]

c. Handwriting the name and address (can be done by hired school kid) increases the "open rate" about 75% from my experience.

 

 

That's an interesting tip!

[mmotley]

Thanks everyone for the replies! I really do appreciate everyone's input

 

CARMandP - I did list my business on google maps, but recently found out that IPhones do not use google maps...so I am in the process of adding myself to the Iphone map now. Also, I do have a facebook page, but I just kinda threw it together late one night. You're right, it wouldn't hurt to go back and touch it up during my down time and add some new pictures. I'll also look into advertising on there as well. Thanks

 

nmikmik - How do you figure the closing rate percentage? Specifically, how long from the time that you mail them out do you allow before calculating the percentage? I hadn't really thought about it, but since you mentioned it, I think your are 100% right in targeting the same names and addresses 3-4 times instead of moving on to a new list. When you mention 'good online presence' are you referring just to a professional looking website? Also, you can see on my mail outs that the name and addresses come pre-printed. However, my follow up 'thank you' letters are hand signed and the envelopes are hand addressed. Great suggestion though, some people have never heard that hand written (even if your hand writing isn't all the great looking) letters/thank you cards are great for the customer experience.

 

xrac - thanks for the advice. Here are the mail outs

 

Mail outs measure 8.5" X 5.5" and are card stock (thick card, not just flimsy paper)

Edited August 14, 2013 by mmotley

[xrac]

Here is my two cents on your postcard. My comments are not meant to be critical but hopefully helpful. Your mailer can be improved in my humble opinion. It doesn't grab you. There is no stated location or map to tell the customer where the shop is (we advertise as next to Sonic across from Krispy Kreme). There is no offer that would give a person a reason to try you for the first time. Things not mentioned in your card that are important to customers is stuff like: Clean restrooms, comfortable customer waiting area, same day service, courtesy rides, dealer type service at non-dealer type price, etc. The things listed may be of more interest to you than to your average customer. I do not think most customers know what ASE means or if they care if we use dealer parts. I don't know that I have more than 1-5% asked about dealer parts.

[mmotley]

xrac, thanks for the advice and I definitely do not take it as critical. I think you are completely right. Very few people know what ASE certs are and most just want their cars fixed right and fixed fast. Also, I love the map idea also and using well known reference points to describe your location. Great advice, no feelings hurt, and I think I will probably apply your advice to my next set of mailers. Thank you very much

[Jeff]

Next to Sonic...across from Krispy Kreme. I would weigh 400 pounds!!!

[xrac]

Next to Sonic...across from Krispy Kreme. I would weigh 400 pounds!!!

Worse than that is the best Chinese Buffet is next to Krispy Kreme along with Jimmy Johns, a CeCe Yogurt, and an IHOP. Behind us is the best Mexican restaurant in town plus an Indian restaurant, and a Quiznos. On the other side of Sonic is a Smiling Moose Deli and on the other side of the shop is a Qdoba. Why do you think I am overweight. As I am typing the hot sign just popped on.

[Jeff]

ya gotta try the ihop cinnamon pancakes if ya havent already!!

[Pjauto]

Xrac send me an application. I'm selling my shop to come work for you!

[xrac]

Here is a sample of an ad we use. Our goal is two fold. First, have something different and eye catching that separates us from all of the me too automotive repair advertising. Second, have an offer that will attract the kind of customer we want.

 

 

No Bull Ad.pdf

[xrac]

Xrac send me an application. I'm selling my shop to come work for you!

Are you saying you like the selection of eating places we have access to? This is the honest truth. There are at least 15 restaurants within easy walking distance.

[Jeff]

Nice add. Do you send those out as post cards or in local print?

[xrac]

Thanks! We use for local print although it could be adapted to a post card. We have used other art work like a stretched out $10 bill that was a coupon and a camel and a gas pump with gas prices were soaring. My main point by posting is think outside the box and don't try to look like everyone ads.

[mmotley]

Xrac, thanks for the examples!!! I've started working craigslist, leaving stacks of business cards at the auto parts stores, and have touched base with a large used car lot that carries a lot of Toyota and Lexus vehicles. They said they would send their customers to me and also contact me on auction days for possible cars to inspect/repair that they get from the auction... I guess maybe I needed a little kick in the butt to get me out and pushing my business a little. I just assumed the mailer I designed was 'good enough' and that customers would just show up. I've also started updating my Facebook page and adding some pictures and will start on my G+ page tomorrow. Might even advertise on Facebook for a week to see how it goes since it will be local and not that expensive.

 

However, I am definitely going with a different mail out design next time. Also, when I order the new mail outs, I'll probably order some fliers to stuff under windshield wipers and stuff in windows. And a customer referral program sounds like a good idea too.

 

Thanks again guys, and I'll keep everyone updated on progress.

[Pjauto]

Yes xrac, for the food!

[JustTheBest]

If you're sending out postcard, you've got to have 3 things MINIMUM.

 

You MUST include:

1) A Headline with a benefit

2) A good offer - the better the offer - the better the response

3) A reason to respond NOW - not tomorrow - not next week - NOW!

 

I didn't see a sample of your card. If you want some free help - pm me and I will be glad to look at your card and give you some pointers. It may be a lot cheaper to change the card now as opposed to spending money on postage that's going down the drain.

 

The other thing that you may not be thinking of is this. Don't worry about the response. You don't bank response. You bank ROI. So what did it cost you - what is the total RO's you wrote? That's how you tell if it's working.

 

Hope this helps!

Matthew Lee

Author - Auto Service Marketing Specialist

[mspecperformance]

How is craigslist working for you guys?

 

I have steered away from craigslist as it seems to draw in the bottom feeders exclusively. We operate an German Car indy so our rates and parts are generally higher and *gasp* we charge for diagnostic work. We are also in the NYC metro area.