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mccannable Collaborator

mccannable

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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.

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mccannable Collaborator

mccannable

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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.

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Dee1234 Apprentice

Dee1234

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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.

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mccannable Collaborator

mccannable

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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.

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J.P. GLENN Contributor

J.P. GLENN

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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!

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ATSAutomotive Collaborator

ATSAutomotive

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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?

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”

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