Elon Block

Mspec,

I agree with you about not wanting to attract the die-hard
DIYer or even the person that's looking for anything for free.

Here's the opportunity I was referring to.

The shops I work with are excited when a customer comes in
with a piece of paper that has a code printout from a parts
store - or even from one of the many independent shop owners

that's advertising free code reads.

Why? Because they have a proven, predictable method of
educating the customer on what that piece of paper really
represents and what has to happen next.

This allows the shop to do the following:

1) Get paid to run diagnostics.

[by the way, once the shop owner sees how easily this
works... they STOP giving any money away, including they
stop rolling the diagnostic fee up into the job. There's
no reason to give anything away for free, because you're a
professional.]

2) They have an opportunity to educate one more customer,
in their community on why they are the best option to
take care of all of their automotive needs.

3) Therefore, they add one more customer to their KPI
line that is titled: "Number of Loyal Customers".

And this is how the shop owner I was referring to increased
his monthly diagnostics fees by an average of $2,000 a month
for the last 6 months.

This doesn't count work that came out of doing the repairs
or anything else those vehicles needed, such as brakes, etc.

This is how you turn challenges into opportunities, which
equals a packed schedule. It equals full bays and money
in the bank.

That means lots of parts wearing out and failing every single day.

http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=5b3bb1e5-dcb4-4158-b167-135966a7d4bc

 

There is a ton of opportunity out there for the shop owner who

is positioned to take advantage of it.

I can definitely understand your frustration.

The issue is: Manufacturers are struggling to be profitable.

They don't care what they have to do to be profitable. If they have to sell it retail.
If they have to sell wholesale, it doesn't matter.

Tire manufacturers, AC Delco... the list is endless... are all selling Direct to the consumer.

In this case, parts stores also have to do what they must do, to be profitable, to stay in business.

So, they either have to have dozens of repair shops, like yours, that buy all their parts from them.

Or they have to sell to the public.

It can be frustrating when parts stores are advertising they can do all that stuff for free but
the question becomes who's going to replace the parts.

For example, even if the parts store replaces a battery, they're not going to do it correctly,
so now a warning light is on or the clock isn't working properly.

So, the customer still needs an expert, like you to take care of the issue, which gives you an opportunity
to gain a new loyal customer that will come to you next time they need service of any kind.

One of my clients has an Advance right next to him and was worried about the same thing.

What he did was build a relationship with the manager and now, that manager sends
all the customers that need services right over to him.

He bumped his sales by 5% just by doing that.

By the way, here are some interesting statistics about the DIY trends:
http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=32e8a809-81a2-4fea-aad3-30cdfb857ae8

Everything is about turning challenges into opportunities.

Here are a couple of things to evaluate, in my opinion.

Most consulting and coaching companies can help you to understand your numbers.

The big difference between the various companies comes down to their philosophy
on how to improve those numbers.

The improvements usually fall into a couple of areas. For example, your pricing.
And your service advisors ability to sell on Value - not Price.

My suggestion would be to interview the prospective companies and see if their

philosophy matches yours, in...

1) How you want to do business and...
2) How you want your service advisor communicating with/servicing your customers.

Because that's where you're going to see a lot of differences.

There are some interesting statistics about the industry, in this article:
http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=661034f5-54fb-4cde-a898-627f75ff2711

What do you think the challenges and opportunities are for you and your business?

Congrats! You must be extremely proud.

Welcome aboard! There are a lot of people here who have a ton of experience.

What is your attraction to purchasing your own shop?

There are many options. It can be confusing, especially when everyone is

advertising, "Service Advisor Training."

There are a number of things you want to find out when you're interviewing
sales trainers.

The most important thing you want to determine is:

What is the training company's philosophy on how customers should be treated?

In other words, does their selling philosophy match how you want YOUR
customers treated?

Here's an easy test: Would you feel good about using their word tracks and
sales methods on one of your family members or a good friend?

Here are some questions and other things to consider before you plunk down
your hard-earned money:
http://sellmoreautoservice.com/how-to-choose-a-coaching-sales-training-company/

Hope this helps.

In any given market, there are shops that have great reputations and

there are shops that don't.

 

The ones that don't have great reputations are the best advertisement

for the good ones because it helps you stand out, as THE one that

can be trusted to treat the customer fairly and take great care of them.

 

For example, we were working with a shop owner recently, doing an

onsite training. Within 2 blocks of his store, there was a huge

billboard from one of the biggest multi-location tire stores, in that state.

He was intimidated by the name, by their branding, their marketing,

their advertising, etc. He was scared that these guys were taking

away all of his business.

 

The other issue was the chain had a reputation for low-balling pricing,

which caused my client to think they needed to compete on price.

 

We convinced the owner (and his staff) that customers care about

price. However, price is not at the very top of the list, like they thought.

People will pay for great, trustworthy service.

 

As soon as they implemented processes that communicated Value

to every single customer calling on the phone and every single walk-in,

sales and profits increased dramatically.

So, "competition" can work to your advantage.

Hi everyone,

In case you hadn't heard, here's something you need to be aware of...

AAA is making some changes, in the way they are doing business.

Within the last few years, AAA has decided to build their own company-owned facilities.

Here is a link, with an example of search results, drivers will see when they type in a zip code:
http://bit.ly/2bk7prG

Pay special attention to the search results marked (AAA Owned Facility).

The facilities are impressive and are gaining traction:
http://midatlantic.aaa.com/Automotive/ClubOwnedRepair/Aboutus/New

As you can see, their slogan is, "Auto Repair From A Name You Trust".

This is genius marketing, on their part...

Because customers equate the AAA logo, as a shop they can trust.

The other major change they've made is...

The new requirements for the AAA certification renewal.

Many shop owners did not read the fine print or notice the changes to the agreement.

In other words, the fine print requires certified shops to give AAA access to the shop's customer database.

The biggest concern is if you give them access to your customer database and then, they open a AAA Owned Facility, in your backyard...

They now have a built-in customer base they can market to.

What that means to you is...

This a major conflict of interest because now, they have all of your customers' information, which they can use to actively market and essentially steal your customers.

So, this is something to be considered, in deciding to continue to be affiliated, as a AAA certified shop.

You're in a high traffic, highly populated area. Those people are getting their

vehicles serviced somewhere. Why not at your shop?

 

Especially considering the average age of vehicles on the road today are

older than ever. Depending on what statistics you want to look at, the

average age of vehicles are between 11 and 14 years!

 

That's a lot of mileage with lots of parts and systems wearing out every

single day!

 

What that means to you is: There are more opportunities than ever

to do very well in the auto repair business!

 

Here are some things to be aware of. As a result of independent shops and

the big chains marketing with loss leader coupons and discounts, today's

customers have come to believe all repair shops do the exact same thing.

 

Auto repair shops have fallen into the commodity category!

 

In other words, today's customers believe everyone does oil changes. Anyone
can take care of their brakes and anyone can mount a tire. Therefore, it all boils

down, in their mind, to who has the best price.

 

That's why your phone is ringing off the hook with people asking how much

you charge for (alignments, brakes, tires, etc.)

 

What that means is: unless you can explain to them why they should

use your shop over all of their other choices, they're going to pick the

guy with the lowest price - every time. (Competing on price is a race to

the bottom!)

The Auto Care Association published a startling report, which revealed that
1 out of every 3 customers are doing research and/or getting a second
opinion after receiving a diagnostic about their vehicle.

That number goes up to 1 out of every 2 customers, when the vehicle
owner is between the ages of 18-44 years.

 

I wish I had a dollar for every time I've seen a customer pull out their phone

to shop around for better prices on an estimate they just received from

a service advisor who wasn't skilled at communicating with today's internet-

driven customers.

 

The bottom-line is your service advisors have to become skilled at two things:

 

1) Being able to convert those price shoppers into appointments. And

equally important...

2) Making sure your people have a selling system that removes 100% of

the customer's doubts that:

• Your recommendations are legitimate
• Your pricing is fair and
• Your shop is the obvious choice to do the work.

 

What does an effective selling system look like? First of all, your people

need to be able to convert those price shopper phone calls and walk-in's

into appointments.

 

Then, when the customer comes in, there must be a step-by-step process

for demonstrating to that customer why they should not only have that

work done at your shop. But also why they should have all of their

auto service done at your shop.

Once they can do that, your bays will be full with profitable jobs, your

schedule will be booked two to three days out, your techs will be busy

and your numbers will be where they should be.

You're a tire store so that gives you an even bigger advantage in the
marketplace because you can position yourself as the "one stop shop"

for all of their automotive service and repair needs!

 

The key is to know what today's customers need to hear so they

automatically choose you for all of their automotive needs.

I will just ask them straight up:

"Hey Mrs. Jones, I see that you had our recommendations done elsewhere. Just so that I can improve my business, do you mind if I ask why you had them done somewhere else and not through us?"

 

Just about everyone I've asked doesn't mind giving me an answer. I've see answers ranging from "I couldn't afford it" (maybe I forgot to explain financing options) "You were too expensive" (maybe I forgot to bring up the value that we provide with our services) etc... Either way, it provides valuable insight.

This is the approach we recommend that works very well. And I agree.

The insight is super valuable!

Thank you all for responding. I very much appreciate it.

 

To respond to Elon.

 

-My transmission shop is currently always backed up and we have so much carry over on a weekly basis. I was thinking of sending a few jobs down to the new shop to help raise revenue before we gain some momentum and some of the advertising campaigns kick off. Yes, I am trying to turn the jobs out faster. My shop is often having to turn off our advertising to catch up but this is on transmission repairs.

 

-My transmission shop is currently doing about 80% retail and 20% wholesale.

 

- Right now, the shop is just doing brakes, oil changes, tune ups, timing belts. I'm new to advertising and marketing general automotive.

 

Again, thank you all for your insights.

 

Thanks...Robert

Robert,

 

When you're looking at this new shop, here are a couple of things to consider:

 

1) How many loyal customers does the existing shop have? My definition of a

loyal customer is somebody who comes in two to three times, on average,

within a 12-18 month period. If you think about it, most customers are having

auto repair services done two to three times per year. So, it's important to

know how many are using THAT shop for all of their repair and maintenance

needs now?

 

2) What existing employees do you think will be staying, if any?

 

3) Would you be providing the same services as they currently offer, or would

you be adding additional services? Or subtracting any services?

 

4) How much of their sales are based on marketing, such as loss leaders? For

example, if they're doing $15,000 per week in sales, but the majority of the

sales are quick oil changes with nothing else, you're going to have to be

prepared to continue that same business model OR be prepared to educating

every single customer that you're no longer just going to be doing just the normal

20 minute oil changes. You're going to be offering a higher level of service

than they're used to.

 

Also, if their transactions are all coupon or promotion-based and the

customers aren't buying anything else... that tells you something about

how that business is perceived by the people, in that area.

 

5) That brings me to the other question, which is: are you planning on

keeping the current name? If you're keeping the name, what are the

current reviews like?

 

The biggest thing to consider is: Selling general services is a much different

business model than providing transmission services because general

service customers believe everyone does the exact same thing. So, you're

going to have to be able to communicate why they should your shop

over all of their other choices, in your area.

 

So, based on that, what is it you believe will be the reason the vehicle

owners around that shop should use it - over the many other ones

available to them?

 

Do you already know what that is?

 

 

 

 

Robert,

 

Welcome to the forum! The general services can be a perfect addition to your

current business for a number of reasons.

Is the new shop close to your existing business?

 

What do you mean by overflow? Are those jobs you're trying to turn out faster?

Or are you talking about something different? What kind of work are you doing

now? Is it retail? Is it wholesale? Is it commercial?

 

What kind of work are they currently doing out of the shop you're looking at?

 

You answers to the above questions will help to provide some suggestions

and direction.

 

 

Chuya,

 

You have a lot of things going for you. Let's look at your demographics.

Even though your landlord won't permit a sign on the main road, your

shop is highly visible to everyone coming in to get their gas.

 

The gas station is located on a dual highway with lots of traffic and

shopping centers close by. You're surrounded by neighborhoods

with tons of potential.

 

You said the population is 25k. You only need 1305 loyal customers

spending all of their repair and maintenance dollars with your shop,

to hit a million dollars per year in sales. (It would be twice that, if

your goal is two million dollars per year.)

 

Here's a report on where those numbers come from:
http://sellmoreautoservice.com/whats-your-magic-number/

So, I don't think you have a traffic problem that branding and

marketing would solve. Here's where I would look instead:

 

1) How many calls per day are you getting from potential

customers?

2) How many people are stopping in?

 

3) What is the conversion rate to appointments?

 

4) How many loyal customers are in your database? You can

run a report and see how many repeat customers you have.

 

That number is feedback as to how well you're communicating

what sets you apart from all of the other shops your customers

have to choose from.

 

By the way, I briefly looked at your website and saw you have

coupons that are for new customers only. We've interviewed

lots of customers and one of the biggest pet peeves loyal

customers have is when shops offer discounts to new customers

while they, as loyal customers, have to pay full boat.

 

Just something to think about.

Websites like repairpal, automd and others are not going away.

Customers are using these sites to protect themselves and to
make sure they're not being taken advantage of.

So, those websites didn't create the problem. They're filling a
need the public has.

In regards to using those sites for marketing purposes...

Those sites can send traffic to shops that feel they need more
traffic.

The problem with any form of marketing is:

Unless you know how to convert that phone call or walk-in,
into an appointment...

You've wasted your money (and your time).

Let's face it. Every caller has a pen and paper in front of
them with a list of shops they're calling.

Your service advisors need to be effective at communicating
what sets you apart from all of the other shops that customer
is calling.

Otherwise, you will be competing on price.

So, in most cases, you're better off investing your money
in service advisor training rather than on more marketing.

By the way, any form of marketing based on discounts or promotions...
whether it be a coupon on your website, direct mail, PPC
or any other price-driven promotions means...

You are reinforcing the commodity mindset.

In other words, you're actually training your customers to be on
the lookout for more discounts from you - or to check with your
competition - to see if their discounts are better than yours.

I was doing an onsite training, in a shop recently. The service
advisor said to a long-time customer, in the checkout process...

"Just so you know, if you provide us with your email address,
we'll send you coupons and promotions."

The customer replied, "Wow! I never thought of looking for
coupons for auto repair services! Thanks for the idea!"

When I pointed this out to the shop owner, he realized all of
his marketing methods were teaching his customers to become
coupon clippers and unless his coupons were better than his
competitors' coupons, he was fighting a losing battle.

He was also surprised to discover that even though his traffic
was up, his sales were down, because most of the customers
weren't buying anything other than the promotion.

Since then, he's been able to cut out almost all of his marketing.

Because now, his service advisors are selling almost every
single job because they know how to communicate to the customers
what sets that shop apart from all of the competition, in his area.

Here's a video I did on one of the biggest misunderstandings about
auto repair shop marketing:

bstewart,

 

That's a lot of missed opportunities.

Hi everyone,

 

I've posted a new blog post about an opportunity to increase your sales & profits

by focusing on selling scheduled maintenance services. Click here for the blog post.

Appearance is one thing, working ethics is another. A coat of paint and unannounced inspections aren't the answer...everywhere. some people want to see ultra clean,modern waiting areas, some want that extra effort in checking out their car, but after 3 decades at this game it's reputation...fair prices...and less sarcasm when talking with new customers. And, yes I still have folks that just stop by for a cup of coffee. It's really what ever works for you. There's no golden single answer. When it's slow we all fret, when it's busy we all gtrdone. It is.. what is...a mechanics life

 

Sent from my SM-G900V using Tapatalk

 

Gonzo,

 

I agree with you. I am deadset against unannounced inspections also.

 

Inspections normally fall into two categories:

 

1) Customers are often told, "this is our company policy.

We do an inspection on every vehicle when it comes in."

 

What that means is: every vehicle gets an inspection

whether the customer likes it or not.

 

2) Inspections are being done without any prior discussion

and then, the service advisor comes out and says, "Oh,

by the way, Mrs. Jones, when the tech was doing your LOF,

he just happened to notice your rear brakes are low."

 

Thousands of customers have told us, in waiting areas

and at the counters of shops all across the country...

 

That they know these inspections are a way for the shop

to sell them more services.

 

As a result, they are rebelling against inspections when

they're done in either of the above manners.

 

Now, the problem is: vehicles today are older than they've

ever been in the history of automobiles. They are 11 1/2

years old, on average.

 

That's a lot of parts wearing out and failing every day.

 

If no one is looking at the customer's vehicles, the

only services that are getting done are oil changes.

Or if the customer happens to notice themselves that

there is something wrong with the vehicle, or there's

a breakdown.

 

So, the solution is: To offer an inspection, in a

manner that has the customer say, "yes" because it's

presented, as a benefit to them.

 

That way, the inspection can be done, completely,

with no hidden agenda, which means the service

advisor can go to the customer and say:

 

"Mrs. Jones, we are wrapping up your oil change and

we have completed the inspection as you requested.

Here are the results. Etc., etc."

 

Shops that are using this approach are experiencing

bays full of profitable work, increased sales (and

happy customers!)

It's been our experience that having a nice clean waiting area is acceptable
to most customers. However, the biggest thing they're looking for is:
being confident that the shop is going to help them maintain one of their
most valuable possessions.

So, the question becomes...

Are your techs doing inspections when customers come in for regular services,
such as oil changes, tires, etc.?

Inspections are critical to keep your bays filled with work and keep your
schedule packed.

Think about this:
The average age of vehicles today is 11 1/2 years old. That's a lot of parts
wearing out and failing every single day.

Discovering these issues, along with selling scheduled maintenance, is what
keeps the pipeline filled with work.

As for marketing and advertising, that can be a double-edged sword because
almost all coupons, discounts and promotions are price-based, which only
reinforces to the public that everyone does the same exact thing and
therefore, it's all about price.

So, marketing needs to be strategic or it's going to be counter-productive.

... people want reassurance.

 

afredauto, you hit the nail on the head!

 

Customers want reassurance that they're making a good

decision. The warranty helps you to sell the job because

it helps the customer to say, "yes" because...

 

When you look at things from the customer's perspective,

they've heard horror stories about how shops have taken

their money and didn't stand behind the work.

 

The warranty is important because it's designed to help

ease the customer's mind that if they give you their

hard-earned money and there's a problem later, they'll

be taken care of.

 

To use warranties to your selling advantage...

Everyone has to be clear about what the warranty is.

First of all, using a parts supplier that will stand

behind their product is key.

 

What's covered? Just the part? Or do they also cover

the labor? And for how long and under what circumstances?

 

Once everyone's on the same page with that...

Your service advisor has to be very clear about how

the warranty works and can explain it to the customer,

in a simple, effective manner that eases their mind.

 

Regarding tires...

Tire manufacturers have mileage warranties and those

warranties are based on a number of factors, including

how the tire is maintained.

 

When this is explained properly... you have a built-in

ongoing relationship with that customer because you've

explained to them how to maintain their tires and

the best part is YOU are the one that's going to help

them maintain their tires.

 

This is a brief excerpt of our Selling Tires module

which includes a small segment of how to explain to the

customer how tire warranties work:

 

"Mrs. Jones, here's how the mileage warranty works

with the tires you've purchased today. You've purchased

a (Insert mileage) tire so (Insert tire manufacturer)

gives you a (Insert mileage) mile warranty."

 

"What that means to you is: if you've maintained the

tire properly and the tire wears out prematurely and you

only get (Insert half of the original mileage) miles

out of it, you would only pay for the tread that was used."

 

"In that situation, you would only pay half price

to replace that tire."

 

"They also warranty the tire against anything related

to how they made the tire and the materials they used."

 

"So, what that means to you is if there are any issues

with workmanship or material, (Insert tire manufacturer)

is going to stand behind the tire."

 

Customers do not understand how tire mileage warranties

work and the importance of maintaining their tires, so...

 

The rest of the conversation needs to be about how

your shop helps them get the maximum mileage out of

their tire purchase.

 

When used properly, warranties can make you a boatload

of money and keep your customer's loyal TO YOU, which

in turn, keeps your bays filled, and your techs busy.

I'm not so concerned about the reviews. I just want my customers reminded about recommended services, and maintenance schedules etc. from what I have seen with Mitchell I can see exactly what and when I have made and or sent the recommendation quickly. Demand force and mechanic net require a little more hunting to find these things.

We've tested this extensively and we have found very few cases of a customer

being motivated to make an appointment to get their scheduled maintenance

taken care of, as a result of a text message, email or direct mail.

 

The good news is: drivers are committed to bringing in their vehicle for oil changes

every 3-5,000 miles. This one regular service has been drilled into their heads,

from the day they got their first set of keys, as something they MUST do, in order to

keep their vehicle running.

 

So, you have an opportunity, at every oil change to discuss scheduled maintenance

services face-to-face...

 

Because selling recommended services and scheduled maintenance requires

a one-on-one conversation based on educating the customer what the service

includes and the benefits to them, for having the work done.

 

That's the most effective way to increase your sales.

I noticed the repair pal webinar link.

 

Does Anyone here get business by being "certified" with repair pal here?

 

Does is bring you any business and what does it cost/ require to get your name on their page?

Biff, I don't know the answer to this question. Marketing can solve a problem,

if getting more traffic to your website or getting the phone to ring is the problem

you're trying to solve.

 

However, maybe marketing isn't the problem? Here's why I'm saying that...

 

I looked at your website. And it says you only accept cash and checks. Is that

still the case?

 

Is there a reason you don't take credit cards?

 

Most people I know don't carry cash or even use paper checks these days.

 

So, exploring marketing options may not solve the problem.

 

Maybe taking credit cards so it's easier to do business with you is

the solution?

 

I don't know. I'm just looking at this from a different perspective.

 

 

Congratulations Joe! That's a big accomplishment.

Price shoppers are never going to go away because...

As an industry, we have trained customers to be price shoppers with the coupons

and promotions we send out in the mail and post on the websites.

 

This method of marketing has taught customers to believe that pricing is important.

 

The problem is customers don't know the difference between menu pricing and

something that requires a diagnosis.

So, they believe they can just call you up and you can pull a price off a menu.

 

When the phone rings, that's your starting point with almost all callers.

The Auto Care Association published a startling report, which revealed that
1 out of every 3 customers are doing research and/or getting a second
opinion after receiving a diagnostic about their vehicle.

That number goes up to 1 out of every 2 customers, when the vehicle
owner is between the ages of 18-44 years.

The bottom-line is your people have to become proficient at two things:

 

1) Being able to convert those price shoppers into appointments. And

equally important...

2) Making sure your people have a selling system that removes 100% of

the customer's doubts that your recommendations are legitimate, your
pricing is fair and your shop is the obvious choice to do the work.

 

Mark Cuban recently said, "You have to re-earn your customer's business
every day." This is definitely true in the auto repair industry.

Here's more about that report from the Auto Care Association:
http://sellmoreautoservice.com/state-of-the-auto-car-industry-report/