USA Today article (Friday September 27, 2019 by Nathan Borney - USA Today) shows that “the average age of cars and light trucks on U.S. roads reached an all time high of 11.8 years in 2018.”
The article goes on to claim... “By 2023, there will be about 84 million vehicles on the road that are at least 16 years old, reflecting a 240% increase from 35 million in 2002, according to IHS.”
Are you getting your share?
There’s only 90 days left in 2019 and the market is changing. Sorry, it HAS changed. Are you ready? Do you have your plans laid out for marketing your shop in 2020?
Auto Service Marketing - Fix Your Car Count FAST!
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By Mail Shark
There’s an old adage in marketing: “features tell and benefits sell.” This is critical to keep in mind when you’re promoting your auto repair shop. If your prospective customers don’t understand the features your shop offers, how they’ll benefit from these features, and why they should consider your shop for their next repair or maintenance service, you may lose them to your competition.
The main constraint you’ll encounter when emphasizing benefits on your direct mail is usually space. There are a lot of important elements an effective direct mail advertisement should contain, all of which are fighting for valuable space. Furthermore, putting too much information on an ad can make it cluttered and hard to read, which could diminish your return. A great solution to this problem is to provide a clear, concise, and organized list of your shop’s features that can easily be scanned by your prospects.
Depending on the available space, there are two ways you can do this. If you have limited space, you can simply list your benefits out in a bulleted list. If you have extra space, you can list them out in conjunction with an icon to help illustrate the benefit and call additional attention to them.
Here’s a starting point to help you develop and build a list of your shop’s features and benefits.
-Are your technicians ASE certified?
-Do you offer a warranty on your work?
-Do you offer a 100% customer satisfaction guarantee?
-Do you offer any financing options?
-Do you offer any amenities in your waiting room?
-Do you offer any type of shuttle service or loaner car service?
-Do you offer same day service on most repairs?
-Do you offer early drop-off and/or after-hours pick-up?
-Do you offer roadside assistance?
-Do you offer online appointment scheduling?
-Are all repairs approved by your customer before any work is done?
Pro Tip: Make sure you give your list of benefits a header. Something like: “Why Choose XYZ Auto” or “Our Benefits For You.” or “10 Reasons to Choose XYZ”
Executive Vice President of Sales
Email: [email protected]
The average age of light vehicles in operation in the U.S. has risen again as consumers continue to hold onto cars and light trucks longer.
Driven by technology and quality gains, the average age of light vehicles on U.S. roads is 11.8 years, based on a snapshot of vehicles in operation Jan. 1, an analysis by IHS Markit found. That's up from a light-vehicle population that was, on average,11.7 years old in 2018.
The number of registered light vehicles in operation in the U.S. hit a record of more than 278 million this year, an increase of more than 5.9 million, or 2.2 percent.
IHS Markit began tracking the age of vehicles in 2002, when the average age was 9.6 years.
"The average age of a vehicle has continued to grow ever since cars started coming out from Henry Ford's production line, if you will," said Mark Seng, director of the global automotive aftermarket practice at IHS Markit. "People are hanging onto them longer because they're lasting longer."
From 2002 to 2007, the average age of light vehicles in the U.S. increased 3.5 percent, he said, but from 2008 to 2013, the average age rose12.2 percent.
"We're kind of back to that same pace that we saw from 2002 to 2007," Seng said. "The average age of light vehicles in the U.S. accelerated so much because we were coming out of the Great Recession back in 2008 to 2009 and new light-vehicle sales fell like 40 percent over a two-year period. Even during the recovery years there were fewer vehicles being sold, so that just accelerated the average age of the fleets in the U.S."
For the first time, the analysis included a review of various regions around the country. The oldest light vehicles are in the West, at 12.4 years, an increase of 1.5 percent from a year earlier. The Northeast had the youngest light vehicles at 10.9 years, which increased 1.1 percent from a year earlier. Weather and road conditions, driving habits and household finances and affluence can have a major impact on the average age of vehicles in a state and region, IHS said.
IHS Markit found that the number of older cars and light trucks is growing fast, with vehicles 16 years and older expected to grow 22 percent to 74 million from 2018 to 2023.
In contrast, there were less than 35 million vehicles 16 years or older on the road in 2002, according to the analysis.
Seng said the growing number of older vehicles on the road provides more repair opportunities for dealers and aftermarket parts providers that focus on automotive service repair beyond warranty coverage.
"There's many more older vehicles on the road than there was in 2002, which means there's going to be all different kinds of repairs -- oil changes, brake jobs and new wiper blades -- that's going to be done to that vehicle cycle," he said. "That's more revenue opportunities for aftermarket repair people."
By Joe Marconi
I think it’s safe to say that few people go to McDonald’s for the fine dining. In fact, McDonald’s struggled a few years back when it introduced healthy choices on its menu. Even with its challenges, McDonald’s is considered one of the most successful business models on the planet. It’s a brand that is so well known for its consistency that it actually promotes comfort in the mind of the consumer—a lesson in marketing that could prove powerful for your business.
Imagine yourself traveling with your family on a highway far from home one night. It’s late, everyone’s hungry, and you’ve been on the road for hours. You’re not familiar with the area but you tell yourself to turn off the next exit and find food. As you drive off the exit, you notice a cluster of stores and bright lights; a good sign for weary travelers. As you approach the stores and bright lights you notice two food establishments: Billy’s Burgers and McDonald’s. The only two restaurants in town. Now you tell me: Which one would you choose? Most would choose McDonald’s.
While there are many reasons why most people would choose McDonald’s over Billy’s Burgers, perhaps the most compelling reason is that McDonald’s has done an amazing job building its brand on the consistency of its service and its products. McDonald’s’ customers know exactly what they are getting, and that communicates comfort. People tend to feel more secure with what they know and what they anticipate.
So, what does McDonald’s have to do with running a repair shop? It’s the marketing lesson of consistency of service. Promoting consistent world-class service with each customer will create an experience that will give customers a compelling reason to return in the future.
Now, most of us are not franchised across the country, and many of us are single location business owners. Our business model is different in that we tend to build relationships over time. While we may not be a national brand, we can still have brand recognition in our community. We can still have a brand that communicates consistency and comfort; a winning marketing strategy.
When a customer walks into your business, it’s not because he or she is hungry and looking to eat a meal. There’s a problem with his or her car, or a service they need to have done. People rely on their cars and leaving their car at your shop can be disrupting to their lives. This causes a level of anxiety within every customer. We need to recognize this and find ways to reduce or eliminate this anxiety. If not, the experience won’t burn a positive impression in their mind, which means they may not be back.
The customer experience is a crucial element to the success of any company. But, do we fully understand the impact of consistency in service at every step of the customer experience? How being consistent can promote a feeling of comfort and security? Your customers must be greeted the same, the phones must be answered the same, car delivery must be the same, and the quality of service and repairs must be consistent. Something as simple as forgetting the lube sticker or not resetting the maintenance light can raise anxiety and make the customer question the quality of your service, which will have a negative effect on the entire experience.
However, the marketing lesson is not only how you define great customer service, but in defining how to deliver consistent, great customer service at every step of the customer experience, time and time again.
This strategy will ease the anxiety within your customer, which will benefit you the next time your customer’s check engine light comes on or when her car needs servicing again. By delivering a consistent, amazing customer experience again and again, you will instill comfort and security in your customer’s mind. This simple strategy increases the odds that the customer will think of you the next time for their automotive needs. And that’s the secret of McDonald’s.
Think about this. A consumer is traveling to work on a Monday morning. She notices that oil change maintenance is on. This consumer has been to your shop, the dealership and the local quick lube in the past. She knows the cars needs servicing. Where will she choose to get her oil change done? Will it be your shop? Will it be the dealership or quick lube? That all depends on what business made the best impression in her mind.
This story was originally published by Joe Marconi in Ratchet+Wrench on January 25th, 2019
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By Joe Marconi
With over 40 years in the auto repair industry, I can write a book on shop production, and I would title it: "The reason why production suffers, and ways to improve it" But, perhaps the first step in getting production to where you want it is to promote team spirit. Yes, I know about training, workflow processes, making sales, the right tools, quality equipment, shop layout and correct labor billing. All that counts too. But, none of that means anything if your techs and service advisors work in an workplace with poor morale.
As a shop owner, recognize the performance of your employees. Set the right tone and encourage them to exceed their limitations, and also say thank you once in a while. Raise team spirit, and you will raise production.
I know this is a wide-open field for discussion; so what are your thoughts.