By Joe Marconi
Sometimes I feel like I’m alone on a deserted island. I charge for diagnostic analysis. Why? Because I know what cost is to buy the tools, equipment, information systems, training and pay a technician to professionally and accurately diagnosis a check engine light, air bag, ABS or any other complicated problem. But, I feel a lot of shops are willing to give this up in hopes to get the work. In my opinion all they are doing is digging themselves in a hole.
And, I have heard all the reasons:
“If the customer gives me the job, I waive the analysis”.
“I package the analysis into the repair, so the customer does not see the diag charges”
“I will lose customers if I charge analysis”
And the best yet: “It only took me 10 minutes to diag the O2 sensor, so I can’t charge diag labor”.
Waiving the analysis is the same as a doctor waiving the x-rays and blood tests. They don’t do it, we should not either. I will also challenge those who “package” the analysis into the repair. You mean to tell me that after taking 1 hour to find a faulty mass air sensor, you will add the 1 hour to the 5 minutes it takes to install a new mass air? Come on, we all know the truth.
And let’s address the 10 minutes it took to find the failed O2 sensor. Did it really take 10 minutes? NO, it took years of training, years of experience, the investment in the right equipment and the investment in the right information systems. Why we sometimes diminish what we are truly worth is amazing. No other profession does that.
Sorry for being so tough on this topic, but business is hard enough these days and people question everything. If shops don’t realize what they are giving up, it makes it bad for all of us.
Please tell me what you think. Agree? Disagree? Or any other thoughts....
I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.
By Elite Worldwide Inc.
We're eager to do whatever we can to help shop owners sort through the challenges that have come along with the Coronavirus, so have decided to host a complimentary webinar this Thursday (3/19) from 10:00 AM - 10:45 AM Pacific Time.
During this special session industry leaders Bob Cooper and Kevin Vaught will be sharing some tips on what you can do to protect your employees, your customers and your business.
Join us and you will learn...
- What to tell your customers and why
- How to better protect your employees and your customers
- How to maintain your car counts & sales during these difficult times
- How to better control your expenses
- How to ensure you are able to weather any financial storm
Seating is limited, so click on the following registration link to reserve your spot today: https://register.gotowebinar.com/register/6233489164748174347
Virginia's Governor in his 2020 budget proposal has included elimination of the state's vehicle safety inspection program. In addition, a state legislator has introduced a bill doing the same. I serve on the board of the Virginia Automotive Association, a group of over 200 independent shops who have banded together to lobby in the interests of our industry. VAA has ponied up a a $25000 increase in the lobbying budget to fight the move. As a shop owner, I have mixed emotions on the subject, but if I were gambling I would bet that the program will go away. On one hand, it's kind of nice that the state's motorists are forced to bring their cars to a shop once a year, giving us an opportunity to make them life-long customers. Also, it has created a cadre of technicians in the state who have been vetted and background checked by the state police. On the other hand, there are a litany of negatives inluding customer resentment, anger when their vehicle fails, uneven management by the state police who oversee the program due to limited resources. Some shops are "by the book" while others are "sticker mills" who will pass anything. Unfortunately, VAA and others have been unable to produce hard statistics that show that the program .makes a difference in highway safety. The big studies I have found blame driver error for the majority of accidents. What is ironic is that just this year VAA won a long battle to get the inspection fee raised from 16 to 20 dollars. The legislature convenes in January to enact laws that will take effect in June.
I would like to hear how other Virginia shop owners feel and I would like to hear from other states that have witnessed termination of these programs.
By Mail Shark
This informative article discusses digital vehicle inspections and the importance of using it to attract new customers. With contributions from Chris Cloutier from Autotext.me & Tony Mercury from AutoShop Solutions, there is a lot of great info here.
If your shop is considering, or has already invested in Digital Vehicle Inspection (DVI) technology, you clearly understand the tremendous value and benefits that DVI provides. However, the vast majority of the general public does not understand what it is or how it benefits them. After speaking to several shop owners who conveyed to me that their customers have no idea what DVI is when they come into their shops, we decided to ask a random sampling of 104 consumers ages 18+ who all own and have had vehicle repairs within the past 12 months:
“Do you know what a Digital Vehicle Inspection is in relation to getting your vehicle serviced or repaired?”
I’m sure that doesn’t come as much of a surprise. Like many technologies, consumer education simply just takes time. This lack of consumer awareness is a problem for shop owners who are currently utilizing DVI technology and want to use this powerful technology to capitalize on its ability to differentiate their shop from competitors.
How Can DVI Differentiate Your Shop?
Implementation of DVI technology, from a marketing perspective, can help position your shop as professional and highly educated by using the most advanced technology to service and repair your customers’ vehicles. It just may be the most powerful tool at your disposal to create and position your shop as TRUSTWORTHY.
How DVI Creates Trust & Why It’s So Important?
The primary benefit of DVI technology, from a customer prospective, is that it provides them with full transparency to their repairs/services needed. Whenever you bring transparency to what is generally a non-transparent process, it adds a tremendous amount of TRUST.
Being able to convey that potential customers can TRUST your shop is arguably the most critical component to attract them to your shop and, of course, to maintain current customer relationships.
Two out of three U.S. drivers simply don’t trust auto repair shops based on the findings from AAA, with the top reason for the lack of trust being “Recommending Unnecessary Services.”
Top Reasons Why U.S. Drivers Distrust Repair Shops:
According to AAA
This is further echoed by some of the latest consumer research from the Mintel 2019 AUTO SERVICE, MAINTENANCE, AND REPAIR market research report. When asked why they chose their auto service/ repair location over the previous 12 months, beyond shop location and being a returning customer, the top reason reported by respondents was TRUST. The TRUST factor came in above both quality and cost.
Just think about that for a second. We know that the primary reason consumers don’t trust auto repair shops is due to the feeling that they have been recommended unnecessary repairs. We also know that trustworthiness is one of the top factors in determining which auto repair shop they have chosen. Therefore, If these same prospective customers understand that your use of DVI can eliminate these concerns, it would undoubtedly give you a major advantage over your competition. For some thoughtful industry insight, we reached out to Chris Cloutier; DVI guru, successful multi-shop owner and founder of autotext.me, a leading auto repair shop technology software provider that offers DVI technology and many more digital features.
What Does Chris Have to Say?
“As a multi-shop owner, I can attest that many customers are indeed very wary about being charged for unnecessary repairs and have a need for trust to be established, which the DVI greatly helps to solve. For example, the Digital Vehicle Inspection service offered by autotext.me can include multiple pictures and short videos, which serve to educate customers on overall vehicle health and repair needs and recommendations.
Chris Cloutier Autotext.me
By pulling back the curtain and enabling customers to understand the “why” behind recommended repairs, repair shops are able to boost customer confidence as well as increase their Average Repair Order (ARO) if the DVI is properly executed.
A new feature we recently launched, Customer Insights, drills down even further to provide shops with helpful analytics on DVI customer engagement. Shops will be able to see if and when a picture or video was viewed along with whether a video was viewed in its entirety. autotext.me clients can leverage this data to determine how to communicate better with customers and establish best practices for DVI documentation by technicians.
Think about the power a service advisor will now have before talking to a customer. “Mrs Jones, I see you didn’t look at the pictures of your brake pads that are metal to metal. Could you please open those up for me?”
Vehicle inspections are not just a tool to increase your ARO. The ARO increase that shops might anticipate is from one thing only, and that is an informed client. If your client is not being fully informed by your inspection, wouldn’t you like to know?”
Now, the question becomes “what can you do to capitalize on your use of DVI technology to attract new customers?” The answer is, to deploy a strategic and aggressive multi-channel marketing approach.
Direct Mail + A Multi-Channel Marketing Approach is the Answer
First, let’s take a look at why Direct Mail is one of the most powerful tools you can use to promote DVI, followed up with some additional insight from Tony Mercury, Digital Marketing Expert from Auto Shop Solutions, for his perspective, thoughts, and suggestions to help you jump-start your shop’s digital marketing efforts in order to promote your DVI as part of your multi-channel marketing approach.
Why Should You Be Using Direct Mail to Promote DVI?
Direct Mail Is a Trusted Marketing Method
For starters, choosing to utilize direct mail as a marketing platform will ensure your message gets delivered in a method that is also trusted by consumers.
MarketingSherpa, a research and training institute and division of MECLABS, the largest independent research facility, asked 1,200 consumers: “In general, which type of advertising channels do you trust more when you want to make a purchase decision? Please sort the options into ‘Ads I trust’ and ‘Ads I don’t trust that much’ categories.” Below are the results for the “Ads I trust” category.
The results speak for themselves; 76% of the consumers involved in the survey trust direct mail when it comes to making a purchasing decision.
Now, let’s take a look at some important considerations when developing your Direct Mail Marketing strategy.
Consistency is Key
Being consistent with your message is going to be critical in order to educate your prospective customers on the benefits of DVI. We already know there is a lack of consumer awareness, which is why consistency is of utmost importance here. Ensure your message is delivered consistently and across all channels you are using to market your shop.
Don’t Just Say You Offer DVI, Explain the Features & Benefits
One of the biggest mistakes you can make is to merely mention that you offer Digital Vehicle Inspections. It’s critical that the ad copy to support your DVI marketing Campaign gives customers a clear & concise explanation of what a DVI is and, most importantly, conveys how they will benefit from it. Just saying you offer Digital Video Inspections alone without additional context will mean nothing to a consumer and be a wasted effort.
Strategic Ad Copy
In addition to promoting DVI to create trust, you should also be thinking about what else you can include on your direct mail, plus all of your other marketing to support your initiative and on all of your other marketing for that matter, that will support your initiative to position your shop as Trustworthy.
One easy way to do this is by simply telling your targeted prospective customers that they can trust you. According to Roger Dooley, author and expert on the subject of Neuromarketing, “Researchers found that placing the following statement at the end of an ad for an auto service firm caused their trust scores to jump as much as 33%:
“You can trust us to do the job for you.”
This one simple phrase caused consumers to rate the auto service firm in this ad higher in all categories:
Tie It Together With a Strategic Testimonial
Ask one of your Happy Customers for a testimonial that includes their experience with your shop’s DVI process and how they trust your shop because of this process. This will add credibility and give your prospects feedback from a point of view they can relate to.
Choose The Correct Direct Mail Piece(s)
Choosing the right direct mail piece to convey your message is important. You may want to consider using a larger Jumbo 8.5″ × 10.5″ Postcard or even a 10.5″ × 17″ Tri-Fold Brochure to your direct mail program. These larger pieces will give you more space for strategic ad copy to promote DVI as well as other services that a smaller card may not allow for due to size constraints.
That said, you can still use a standard 5.5″ × 10.5″ or comparable size postcard to do the job for you as well. Just make sure that you have the right ad copy. You don’t want your card to be too cluttered with content that it makes the piece illegible or too busy that it becomes confusing.
A Multi-Channel Marketing Approach
Tony Mercury Autoshop Solutions
As we mentioned above, due to the lack of consumer awareness of DVI, the use of a multi-channel marketing approach is critical with this type of consumer education marketing campaign. To add some additional insight from a digital marketing perspective, we asked Tony Mercury from Autoshop Solutions, a premier digital marketing agency for auto repair shops, for his thoughts.
For an effective educational campaign, Tony suggests that you create a short but concise video to show the DVI in action to demonstrate its benefits and the value it provides to prospective clients.
Once you have that video, he recommends using that content on your website, Facebook page and, if you’re using it, Instagram. In addition to the video, Tony suggests accompanying it with a few paragraphs of strategic content to not only support your message, but also benefit from an SEO perspective, and you’ll be on your way to a successful campaign.
Using direct mail is one of the most powerful ways to drive prospects online to watch your informative DVI video, according to Tony. He suggests using a QR Code on your direct mail piece/s that, when scanned, immediately opens up your DVI video and allows prospective customers to view it on demand. Just make sure to instruct your prospects with a clear Call to Action if you want to ensure they scan the QR code or go to your website/social platforms to learn more.
You can also access by clicking the link below or downloading the attached PDF. https://www.themailshark.com/resources/articles/digital-vehicle-inspections-your-auto-repair-shops-marketing-secret-weapon/ Digital Vehicle Inspections Your Auto Repair Shops Marketing Secret Weapon.pdf
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