Quantcast
Jump to content


Joe Marconi

Lower gas prices stimulate business?

Recommended Posts

A recent article in the Wall Street Journal reports that car sales, especially for the Big Three, are up due to gas the lower gas prices. I wonder how this will affect our business. Light trucks and SUV models saw a significant increase. However, the car makers saw an increase across the board.

 

There is no doubt that gas prices play an important role in the economy and consumer confidence. Let’s see if that spills over into our shops.

 

 

 

Share this post


Link to post
Share on other sites


Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Forum Topics

    • By insomniac
      Iv noticed over the years there are times when business/car count drops off by a huge amount all at once. Last year it was brutal in January and got worse in February. It got busier the 2nd week of March and was pretty steady the rest of the year with my best month ever in November then even topped that in December. But this year its back to the same. January came leads completely dropped out, February came and it got worse, just like last year. Now I know its just a waiting game and business will pick back up. Its not just me every shop in the area is completely empty. --- What triggers these pattern down turns? Has anyone ever figured that out? Thought?
    • By bantar
      It seems that Goodyear corporate stores are changing their business model from Tire and Repair Service centers to strictly tires.   The franchise stores are free to continue their old business model.    Around here, the corporate stores are going to close down on January 27 for 2-3 weeks for a major remodel and possibly? rebranding.   They will sell tires and do alignments, but will not be able to align if they need repair parts.   I've not seen any official statements on this, so I don't really know more than the scuttlebutt.
      It looks like Hunter will have a great year this year as a result.  I saw a brand new Hunter Revolution tire machine in one of the local stores already.
      I stand to benefit from this change as we may see some of their repair business.   Since I don't sell tires, I'm not a Goodyear competitor, which allows them to safely refer repair business to us.   Almost everyone else around here sells tires.   We refer quite a few folks to tire-only stores, so Goodyear will now be on my referral list.
    • By Richard Ehler
      I am going to be purchasing my own shop. SBA wants a business plan. Anyone know of a good template?
       
    • By Joe Marconi
      The cost of doing business in NY is high. It seems as if the expenses are going up faster than our sales income. How do we keep pace with cost of living and still remain competitive? It's hard to decrease fixed expenses.
    • By Elite Worldwide Inc.
      Whenever a customer tells you they can’t afford to do the repairs, and they ask you if you can help them out “this one time’”, you need to give careful thought before you lower your price. 
      First of all, there is a cardinal rule in sales that says before lowering your price, you need to build more value in your service. Yet as we all know, there are going to be some occasions where no matter how good your sales skills are, the customer simply won’t have the ability to pay for the recommended services. In such cases, you and your advisors will have three options. One, you can let the customer walk; two, you can drop your price; or three, you can follow the proven path we have provided to tens of thousands of advisors over the years. 
      First of all, if you let them walk, both you and the customer have lost. They’ve lost the time they’ve invested in having their vehicle inspected, and when they leave your shop their problems still exist. You’ve lost the marketing dollars you invested in bringing the customer through your door, you’ve lost the time you’ve invested in inspecting the vehicle and estimating the job, and you’ve lost the opportunity to help someone in need. 
      The second option you have is to lower your price, and while you may close that sale, you’ll also be sending a message to your customer that if they wouldn’t have asked for a discount, they would have paid too much. If that’s not bad enough, it gets worse, because they know if they ever decide to come back they’ll need to negotiate with you, regardless of the prices you quote. The good news is, there’s a third option, and it’s one that’s used by the top shop owners in America with great success….  
      Putting first things first, you’ll need to see if the customer qualifies for any legitimate discounts you offer, such as Senior Citizen, AAA or Military discounts. You can also limit the number of repairs to the ones they can afford at the time. Another option (which works well in some cases), is to scale back on some of the benefits, such as the length or terms of the warranty. If you and your customer find none of those solutions to be acceptable, you can consider telling them that you will keep their vehicle at your shop (space allowing), and perform the repairs if and when your time allows (when another customer cancels their appointment at the last minute and your tech has the downtime, for example). What your customer would be sacrificing is the immediacy and convenience.
      Please bear in mind that when making any decision to lower your price, you need to ask yourself who is ultimately going to pay for the discount, because the answer will inevitably be your other customers.  Secondly, if you have the right advisors, with the right principles, they’ll know in their hearts it’s just not right to charge two people different prices for the same service. To put it another way, I’m sure you would not want your mom or dad walking into any business and buying a product or service when you know the customer right before them… paid less.  Never forget, principles, not shell games, lead to two things: higher profits, and the ability to sleep at night knowing you are not playing games… with other people’s money.  
      Since 1990, Bob Cooper has been the president of Elite Worldwide Inc. (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management seminars. You can contact Elite at [email protected], or by calling 800-204-3548.

      View full article
  • AutoShopOwner Sponsors



×