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Does the new generation want to use our service?


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You guys are seeing it. Customers seem to be spoiled to the Free stuff at the dealer that the manufacturer pays the dealer to do or was priced into the car. Many more people under 30 don't even want to own a car. For the first time in 30 years only 50 percent of 17 year olds in USA have a license to drive. They travel by I Phone .

The greatest do it for me generation is dying off and who will/what will replace them? Any thoughts?

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I suspect that new generation will have no other choice, but to use our services.

Even if someone drives and services the car at the dealer for the first 2-3 whatever years, eventually that vehicle has to be "used car lot" retired.

I don't think that anyone has figured out the way to make the cars disposable, at least not yet.

American public grew up with the notion of a car been a necessary and somewhat luxury item. Those kids are car-less until they find a job further away from the parent's basement, get married and have children. They travel by iPhone because they don't need much of a real travel, when they do, they will have to get a transportation; either a car or use the public transportation. In order to make the public transport usable and efficient they would have to elect into office people that can (and are willing to) make a difference and we know from the past data how high is the chance of that :)

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I've got one teenager at home yet. He waited until he was 17 to get his liscense too. Most of what has been said about the internet being their travel method is true, however we all know eventually they'll have to get a car.

 

As far as the dealers offering specials that are drawing them to the dealer rather than the independent... I don't agree with that. What I've seen as a trend is that less and less younger generation guys and gals care less and less about knowing how their car operates or what maintenance is needed. We've all heard of the throw away society syndrome, well... this generation is different, it seems to me they expect the car to work perfectly forever with nothing more than gas in the tank. Not a throw away society more like use and abuse... then throw it away.

 

Cars have become able to maintain a reasonable drivablity level even with poor maintenance levels these days, and with less "home" look-see's under the hood the more likely something will go to castastrophic levels. Cost of repairs are going to escalate as well. Also, the education level of the technician has increased way passed the grease monkey days. Only after their car doesn't run right will they ask for advice or look for a service center... it's not like the days of repeat customers and life long customers...more like..."when I need ya, I need ya and nothing else"

 

I think we are going to see a trend in repairs increasing. It looks like the trend is to be less car knowledgable and more internet savy. The internet could end up being the mechanics best friend, if... more effort is put to providing information on the internet about car use, maintance, repairs, etc... which will inform those young drivers of the importance of regular maintenance and what it takes to be a mechanic these days.

 

I do believe things are looking up. They'll shop for your shop on the net, they'll check references, they'll price check parts,...everything on the net...then...they'll head to the service center.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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