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Posted

I was approached when we first opened by a sales person for this company but passed. I am considering it again. It's a direct mail package to "high income" homes of 50k income. They have zones all at 10k and you can pick the zone(s). I beeline it was in the $200 range per run and tbeh do them monthly. I am considering running 2 zones as it is considerably cheaper than direct mail with downside of lower percentage of viewership. Around .02 each there could be some serious upsides.

Posted

I called 2 local business that advertised and the one that picked up(blinds and shutters) said they get lots of results. It's really cheap so I'm going to go for it.

Posted

Joe I agree with that statement and one day we would love to be there. But for driving sales we need the now not later. At discounted rates we still turn a good gross profit. We live in an economically repressed area that has two major demographics. Low income locals and med to high income retirees. These retirees love coupons and can be surprising loyal. We have a very close percentage of sales and I believe our model has the best chance at retaining customers. If that means discounting a bit at the beginning to fill the dead space I'm ok with that.

 

I would say the majority of local small business that are successful have an entitlement attitude that is inward focused. We are the exact opposite and it shows throughout every interaction. The environment we have created at the shop is very unique.

Posted

Lol @ 26" wheel repair lmao! Ok seriously i have found that if you continue to try and drive in new business with cheaper prices you will be working HARDER longer. Value is where its at. See how you can set yourself apart from competition in other areas then price is not the only comparative.

Posted

Lol @ 26" wheel repair lmao! Ok seriously i have found that if you continue to try and drive in new business with cheaper prices you will be working HARDER longer. Value is where its at. See how you can set yourself apart from competition in other areas then price is not the only comparative.

I agree with the value vs price argument fully, we are still seeking other methods including direct mailers, but its hard to argue the need for cash flow for a young business. We need just a few more thousand a month in sales to get to my goal. If these budget mailer can help me reach that goal then I have achieved step one. Its going to take a bit of time for us to win over some of the european market and once we hit some milestones their our business model with shift.

 

I am considering some targeted direct mailers as well. Its a size-able cost and we are looking into a few companies to target BMW and Merc owners. Our one direct mail campaign to non specific model makes with a run of 1000 netted one customer. Now that has been our best customer with 4 visits between his two cars and over $2000 in sales.

 

In the short run gross profit is just that. By bank account does not discriminate of how that money is earned. We make a very healthy margin on our sales even with a discount.

Posted

In the past I also tried Val Pak for 3 months. It brought me 0 new customers and brought in 3 of my least favorite customers (now holding coupons!). I am interested to see how it works for you. I hope you get better results!

  • 2 weeks later...
Posted

And about the retirees being loyal, we have targeted that as our biggest area of focus to to earn our chance at winning their business for life.

 

The few good years they have left.... KIDDING!!! Good luck, I definitely know what you mean about having to build the business. I took anything and everything I could when I started and slowly over time I can turn away those people who just don't fit my shop model.

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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.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      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. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      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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