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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By Joe Marconi
I have been considering adding a few loaner cars to my business. We do have a shuttle service for our customers, but there are many times that customers need the use of a car when their car is in for repairs or major services. We also have an discount agreement with the local Enterprise Rental Agency. I would like to hear from other shops, the pros and cons and opionions of loaner cars.
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By Joe Marconi
Many auto repair shops are adding a fee to the final invoice for customers using credit cards. I get it, but don't agree.
For me it's simple. First, do your best to negotiate the best deal from your credit card provider service. Next, take that fee and add it to your cost of doing business. To me, I consider this fee an expenses, just like all other expenses: office supplies, utility bill, insurance, taxes, training, travel expenses, maintenance, etc. etc.
From your total average monthly expenses, you will be able to determine your breakeven, and from there, set your net profit goal. In other words, forget about the charging the customer a fee, just build into your overall prices. You will accomplish the same thing, and not bring attention to the customer that small fee that may be a big deal.
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By carmcapriotto
Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound
Early 2018 our host, Craig O’Neill attended multi-day training session by Dennis McCarron
In this episode - Craig invites Dennis to highlight one of his favorite takeaways from that training.
Of course - the takeaway is an acronym…
A.P.A.C.
Acknowledge
Probe
Answer
Confirm
APAC is a pragmatic model for solving problems that can be applied in nearly every walk of life.
From taking an upset client and solving their problem - to taking a routine interaction and arriving at the right conclusions, Dennis explains how APAC is what happens, eventually, no matter what… it is just the most efficient way to accomplish what needs to happen anyway!
You’ll want to carve out the time to hear Dennis and Craig go deeper into human behavior models and tackles topics such as trust, and engagement and understanding how we are always assessing the people we are serving how they are engaging their environments.
Listeners will find that APAC is a pragmatic approach to communication in the shop and all walks of life…
And you’ll find that our Word of the Day today also happens to be “Pragmatic”
prag·mat·ic-/praɡˈmadik/adjective
Dealing with things sensibly and realistically in a way that is based on practical rather than theoretical considerations.
Watch Full Video Episode
Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound:
The Institute at WeAreTheInstitute.com. "Stop stressing over your business, you deserve a good night's sleep. The Institute’s coaching helps you achieve success and financial peace.
AutoFlow at AutoFlow.com. Your partner in technology, Autoflow consolidates your client interactions - before, during and after the visit to a single thread. Learn more at Autoflow.com
AutoLeap at AutoLeap.com. Are you tired of juggling multiple tools to manage your auto repair shop? Say hello to the streamlined efficiency of AutoLeap, the #1 all-in-one Auto Repair Shop Management Software!
Shop Dog Marketing at Shop Dog Marketing.com. "Want to see your auto repair shop thrive? Let Shop Dog Marketing be your guide. Our customer-first approach, combined with AI-driven creative content, ensures top rankings.
In-Bound at CallInBound.com. Cover your communication needs and revolutionize your auto repair business with AI-driven call analytics from InBound.
Contact Information
Email Craig O'Neill: [email protected] Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
Marketing Strategies to Attract and Retain Your Ideal Auto Repair Customers
By Joe Marconi
I had one main objective when I opened my repair shop in the fall of 1980: Acquire customers. Being a startup, gaining customers, any customers, was essential. Without them, business survival would not be possible.
With limited knowledge of marketing, I did what many new companies do, I ran mass advertising promotions in local newspapers offering huge discounts. Did this type of marketing work? Well, that depends on how you define success. I can tell you that It did bring in customers, and a lot of them. But what I found out was that it didn’t bring in enough of the customers I wanted. Even early on in my business career, I wanted to create a company that catered to consumers who appreciated the total car care approach. With coupons in hand, most customers wanted only the discounted offer and nothing more.
I remember one particular customer who came in for his discounted oil change that included a free tire rotation. I noticed that his wiper blades were ripped, broken, and digging into the windshield. When I offered to replace them, he shouted, “Don’t touch the wipers, just change the oil, rotate the tires, and let me be on my way!” I quickly learned that while my strategy did attract consumers, marketing to the masses was not going to be the way to grow my young auto repair shop. It’s not that I am against all forms of discounting. I am not. However, the better approach to growing an auto repair shop is to create a business strategy that attracts and retains those customers who are aligned with your business model and culture.
In business, attempting to be everything to everyone is not a sustainable strategy. It is far better to narrow your focus, understand your key profile customers, and do all you can to gain more of them. In this article I will outline strategies to identify and market to your ideal customers, and why these strategies will help you achieve long-term success.
Why Define Your Profile, Ideal Customer?
As mentioned above, trying to be all things to all people is not a business model that works for the long term. If you are a startup company or need to increase car counts quickly, offering discounted services and repairs will fill your bays. And depending on the situation, this may be a viable option. However, in most cases, this should not be a long-term strategy. Kim and Brian Walker, at Shop Marketing Pros, recommend that auto repair shop identify their customer avatar, stating that “The most successful auto repair shop owners have a clear idea who they’re targeting.”
Let me ask you a question. What type of customers do you want to work for? Wouldn’t you rather work for those customers who throw their keys on the service counter and say, “Don’t bother calling me, do what you need to do, and I’ll see you at 5 o’clock.” Well, those people are your ideal customers. They trust you, are loyal, and say YES to your service recommendations! Which also makes them your most profitable customers. And let’s not forget that dealing with these ideal customers is a lot less stressful for you and your entire team.
Defining Your Profile Customer
Defining your profile customer begins with understanding your business model and defining your vision, your mission, and your culture. What are the types of services and repairs you will offer, and the type of vehicles you prefer to work on? Also important is balancing the type of jobs offered to your clientele to ensure that you sell enough profitable work. While we may love what we do, we have a responsibility to be profitable. Knowing your profile customers will help ensure you achieve profitability.
Creating the actual profile of your ideal customer will take a little bit more work. Start with what I call the “key droppers.” As mentioned earlier, those are the customers who don’t question your recommendations or your price, and they trust you. They literally drop their car keys on the counter, preapproving the work, basing their decision on earned trust. These customers will give you the foundation to build your customer profile.
After that, run a report from your business system identifying your top 100 to 200 customers. Most systems sort this list by revenue per customer. In addition to the dollars spent per customer, what you are looking for is certain common criteria. Those criteria include length of time as a customer, visits per year, type of vehicles, where they live, and the type of repairs and services performed on their vehicles.
You will find that your top-profile customers are the ones who follow your service and repair recommendations. Again, it’s the trust factor. For more extensive demographic customer profile building, marketing companies, like Shop Marketing Pros, have tools that can help with this process.
After performing your due diligence with the initial list, you will end up with probably 50 to 100 customers that you will define as your key profile ideal customer. The next step is to build your marketing plan.
Marketing Strategies to Gain More Profile Customers
Once you have your customer profile, do all you can to cater to their needs. Listen to them, speak to them, and find out all about them. Their hobbies, birthdays, community involvement, the local newspapers they read, the local radio station they listen to, and their profession. Also, do they have children and pets? These things are important. Asking a customer about their child or pet, or remembering their birthday, goes a long way in building relationships, a key component in customer retention.
But there’s another reason why this is important; and that is, to align your marketing and advertising strategy around your profile customers. Let me give you an example. Let’s say you find out that most of your profile customers are heavily involved in the community, such as fundraisers, or local youth sports activities. You then need to get involved with these local community events. Let your profile customers see that you are a business that cares about the community. Focusing your marketing efforts in areas where your profile customers will notice you will accomplish two things: it will reinforce your brand to your existing customers and will help you attract more of the same like-minded customers. A goldmine opportunity.
The Rewards of Building an Auto Repair Shop Model Based on Your Ideal Customers
It’s hard to deny the rewards of building a marketing strategy and business model around your profile customers. You’ll save on advertising costs by targeting your ad dollars, rather than using a shotgun approach, marketing to the masses. You will build a stronger and more loyal customer base, improve customer retention, increase sales, and generate higher profits. You will also build a powerful brand. The best part, you will lower the overall stress for your employees.
Conclusion
If you are an auto shop owner looking for innovative ways to enhance and grow your business, Elite Worldwide can help. At Elite, we have world-class, experienced coaches who understand your business. Our coaches have lived in the trenches and built amazing, successful companies. Elite also has sales and management training, and peer groups that can take you and your business right to the top. No matter where you are in your business career; startup, growth mode, or looking to retire, Elite can guide you and help you achieve your goals and build a more profitable and successful business.
About the author – Joe Marconi – With over four decades of industry expertise, Joe is a seasoned professional whose accomplishments include owning and operating one of America’s most successful auto repair companies. A graduate of the Automotive Management Institute, Joe is a recipient of the CARQUEST Excellence Award, served on industry panels, and played a role in developing the ASE Engine Performance Certification test. As a former columnist for Ratchet & Wrench Magazine and co-founder of AutoShopOwner.com, Joe has been a keynote speaker at the Ratchet and Wrench Conference. After selling his automotive company in 2021, Joe now dedicates his time to giving back to the industry as a Top Shop 360 Business Development Coach with Elite Worldwide and serves on the board of directors for the Service Stations Dealers of Great New York. Joe, a Bronx native now residing in Patterson, New York, enjoys family time, community involvement, and pursuits such as tennis, golf, and woodworking.
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By DUFRESNES
We try all different things. We send out magnets with our name to new customers (list we buy) We use seals on our envelopes marking our years in business. We have done Band-Aids with our name, bags with our name and now we are going to do Air Freshners. We will put in each car, not opened, It is in the shape of a car with our name, phone number and website. We try to keep our name and phone number in front of our customers. If anyone wants to know where we get out goodies, let me know and I'll send you his information. FYI We are still toying with the idea of charging for the credit card. It is my understanding there is a 3% fee for one and all except for debit cards. Legally you can't charge, if they use their debit card. At least that is what our credit card person said.
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