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Posted

We advertise in a number of different channels (Valpak, Radio, House Hold Savers Magazine, Internet, etc.) with coupons and specials we are running. For about 1 year we ran $19.99 Oil Change and $24.99 Oil Change Tire Rotation coupons. We saw increased car counts from these coupons but also noticed that we were getting customers that were not interested in hearing about anything wrong with their vehicle or preventative maintenance related. For the most part it seemed as though these types of customers were only interested in getting the "cheap" oil change and getting out as quickly as possible. For the last 2 months we have gotten rid of these types of coupons and added different coupons. We have noticed a drop in car counts related to this course of action. Just wondering how many of you all use these types of coupons and if you have any luck converting these customers?

Posted

Yes, I'd say you are attracting the wrong customers. People don't realize that not every customer is a good customer.

Posted

We advertise in a number of different channels (Valpak, Radio, House Hold Savers Magazine, Internet, etc.) with coupons and specials we are running. For about 1 year we ran $19.99 Oil Change and $24.99 Oil Change Tire Rotation coupons. We saw increased car counts from these coupons but also noticed that we were getting customers that were not interested in hearing about anything wrong with their vehicle or preventative maintenance related. For the most part it seemed as though these types of customers were only interested in getting the "cheap" oil change and getting out as quickly as possible. For the last 2 months we have gotten rid of these types of coupons and added different coupons. We have noticed a drop in car counts related to this course of action. Just wondering how many of you all use these types of coupons and if you have any luck converting these customers?

How many people actually bought stuff you suggested? What is the average repair order $ amount for customers using these coupons? Are you following up with customers that you made suggestions to? That's an important question.

 

If you're increasing car count and your ARO is staying the same, then it's worth it. If they are calling back and scheduling the additional work, it's worth it.

Posted

It's been my expierence that if a customer fully understands how important the right oil is for their car and they still want the $20 sludge then they don't care about their vehicle and preventive maintenance or even vital repairs are things they are not interested in. I want customers that understand the value of their vehicles and treat them accordingly.

Posted

You need to give oil change discounts only to those customers that patronize your shop for other work done. This should help with getting the right customers.

  • Like 1
Posted

How many people actually bought stuff you suggested? What is the average repair order $ amount for customers using these coupons? Are you following up with customers that you made suggestions to? That's an important question.

 

If you're increasing car count and your ARO is staying the same, then it's worth it. If they are calling back and scheduling the additional work, it's worth it.

 

I use Mitchell 1. You can track tickets that used certain coupons. Not sure if it will figure ARO of just the cars with certain coupons, but you could easily figure that number yourself. If you're not following up with you customers, you have no excuse.

Posted

First off, Wow! $19.99 oil change? Where is the margin profit in that?

 

We tried that for a while at our shop and had the same end result as you. Seemed to attract customers who did not care much for their vehicles, or the type of oil recommended. Additional services were always offered but almost never purchased ( filters, fluid flushes, etc). These customers always seemed to cause problems (my car was not like this before, noise now, leak now, etc). So, we stopped and have changed up our tactics and now are upselling better oil and additional services.

Posted

I should be clear that I have never run one of these oil change specials. I'm only trying to help you find out if it is being profitable for you or not.

Posted

At our shop 2 of us were store managers for Monro muffler for many years and I can tell you that they run the oil changes because it costs them nothing and takes business away from other shops. They can't even make money off of it so how can an Indi that doesn't buy 20,000 gal of oil at a time. And the customers that come in are just disturbing.

Posted

I find it ironic that this website must sell advertisement and that the advertisement I see twice in this screen is for a $10.00 off coupon and Jiffy Lube. Just doesn't seem constructive to me...

Posted (edited)

As a technician, I spend a lot of time with these ROs, doing these cheap oil changes. I have taken the time to peruse the vehicle service history and notice that it is all oil changes and all coincides around the date of our mailings. I see previous recommendations, including the gravy stuff like brakes. You will see when they come back at the next coupon mailing that the brakes are nice and new, but your shop didn't do them, but you are stuck with the 19.95 loss leader oil change time and time again.

 

I have always said to myself, when it comes time to open my shop, that I will not bother with these. The type of people not willing to pay a fair price for an oil change (29.95 to 49.95 depending on vehicle capacity, filter and oil type) are not the customers you want. They almost always never end up doing any upsells which was the point of getting them through the door with the coupon in the first place. Let Jiffy Lube have them with their horrid service from unqualified techs. http://www.jiffylubeproblems.info -- it exists for a reason.

 

A friend of mine has a better system in place. I don't remember all the details, but if you bring in a vehicle for an oil change with-in +/- 50 miles of the recommended interval from their last sticker, you get 2 points. +/- 100 miles and you get 1 point. Every 5 points you can get a discounted oil change or save up to 10 points and get an oil change with a free tire rotation. I figure this can be customized to offer many different bonuses at multiple point levels. It will have the same desired affect of building customer loyalty and getting them through the door for upsells, but it will not affect your bottom line as negatively, if at all.

Edited by ADealerTech
Posted

In Manchester, TN, today I saw an oil change advertised today at $14 for up to 5 quarts. WOW!!!!!

That kills me when I see an ad for a $14.95 oil change... Not sure how you can have a sound business when you are putting a check in the glove box for each LOF!

 

I suppose, like everyone else, I prefer that these type of customers flock to those coupons as my techs will not accept IOU's come payday.

Posted

Wow, Í don't think I've ever seen an oil change coupon for that cheap. Even at $19.99 it seems a bit too cheap. I appreciate everyone's comments/suggestions. Its nice to know that other shop owners feel the same way as we do in regards to these coupons. I do see the chains (Monroe, Good Year, etc.) pump out those coupons on a monthly basis and sometimes it makes you feel as though you should as well to compete with them but from our own experiences, this may not always be the case. As a business owner you don't want to miss out on any customers but as a lot of you have already stated in this thread, not all customers are good customers.

Posted

Years ago one of my competitors thought it would be a good idea to offer a free oil change to the first 10 cars on a given day. I believe the special was advertised on BMW enthusiast forums. I am not sure of what the outcome was ultimately, I do know a few of those people were acquaintances/customers of mine that said they literally waited an hour outside of this shop for a free oil change and wanted nothing else. I could never get myself to do such things.

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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.
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      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. 
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      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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