Elon Block

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.

In February 2016, the 2016 Automotive Aftermarket Suppliers Association published their annual Automotive Aftermarket Status Report. The report revealed a number of interesting facts and opportunities for auto repair shop owners. First of all, the amount of unperformed maintenance has reached $69 Billion dollars. This is a staggering number! I suspect much of that is for unsold scheduled maintenance. To find out what this mean to you, please click here for the rest of the report.

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.

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.

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.

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/

The purpose of a warranty is to help the customer feel confident that you stand behind your work. In other words, they need to feel that if they give you their hard-earned money to service their vehicle, it's not going to be money wasted. One of the best things a shop owner can do is to make sure they have a solid (nationwide warranty, if possible) that you can enthusiastically and confidently provide to your customers. Here's why... From the customer's perspective, they've heard, read, seen and probably even personally experienced a problem where a shop didn't stand behind their work. So, even if that bad experience didn't happen to them, at your shop, that customer is still skeptical. Understanding this is one of the customer's biggest concerns when they are listening to your service advisor explain what needs to be done to their vehicle... and how much it's going to cost them will make it super easy for the customer to say yes. So, when used properly, it's a selling tool that will make you a boatload of money because it will help you easily sell more service (and tires).

Welcome to the forum! I looked at your facebook and your instagram! Cool mustang! What type of work are you planning to focus on? Is it general services or a specific make or something totally different?

By the way, your accountant may be a great resource to not only recommend someone, but answer your question about what a good book keeper might cost you, based on your needs.

I was answering your first question about methods. Just like you can't assume hiring a tech who says they do things accurately - actually does, you can't assume a bookkeeper who says they know how to do bookkeeping accurately... actually does. My daughter-in-law works for an accounting firm that specializes in working with small business owners. Her job is to clean up bookkeepers records so the accountant can then, file a proper tax return that isn't going to trigger an audit from the IRS. Or cause the business owner to pay more taxes than they should have.

What are you trying to accomplish? Are you looking for someone to sort through and match the invoices with the billing from the vendor? Or are you looking for someone to produce a P&L every month? Or something else entirely? If you have an accountant that does your year-end work, he or she will usually have a system they prefer be used, in order for them to get an accurate picture of what happened each month, in your business. For example, do they prefer you use QuickBooks? Or some other system of recording the day to day information? I've seen book keepers that had their own system that wasn't really accurate. Therefore, even though the book keeper didn't cost much in salary... it cost tons of hourly fees on the accountant's end, in order to clean up the "mistakes" that were made by that person, in QuickBooks.

Because of the internet, parts and labor pricing is all out the open now. In other words, anyone with an internet connection has access to the exact same information as you do. That has pretty much made all repairs and maintenance a commodity, in the customer's mind. They believe everyone does oil changes. Anyone can do a strut job. Therefore, customers think it all boils down to who has the best price. So, the first and most critical question is: Why should that customer use your shop rather than all the other choices they have? (Can your service advisor answer this question confidently?) carolinahigear gave some great examples of what that looks like, in their shop. Now, here's the big takeaway: The time to educate the customer about WHY they should use you is throughout every step of the sale. The biggest mistake I see is: service advisors are not armed with a strategic, step-by-step method for doing that. Then, when it comes time to sell the job, the customer hesitates or questions the price or reaches for their phone to compare your prices with your competition... And now, the service advisor finds themselves, in a defensive position, having to try and justify the price, after the fact. All of the objection handling in the world cannot make up for what really needed to be said earlier, throughout the sales process to make sure that customer understands WHY they should use your shop for this service and all of their automotive repair needs. For some insights on how and what the customer is thinking, here are a couple of videos: https://youtu.be/-Uab-r8WJUs?list=PL7p4IMvCsbZolGwR0_8LmQFgFkHoyj6t3 https://youtu.be/yGrLq6cVHAU?list=PL7p4IMvCsbZolGwR0_8LmQFgFkHoyj6t3 Once you understand how the customer thinks, it will change your business forever!

The fact that the site generated 1700 views with 700 calls (2-3 calls per day on average) tells me: 1) the site is being found in the search engines or somehow having traffic driven to it. That means the search engines like the existing content. 2) the site has a strong enough "message" to have the visitor motivated to pick up the phone. If you were to start making changes to the existing content, it will affect the rankings in the search engines and could cut down on the traffic and calls you're currently getting. Unless you have a strong education on how to structure a website the search engines like so they drive traffic to a brick & mortar business, like a repair shop, you're going to be at a disadvantage. As for adding new content, what kind of content were you thinking you needed to add? As for images... It could be helpful to use images of you, your staff, etc rather than stock images. Most visitors to your website are either existing customers looking for your phone number or... prospective customers that are not loyal to a shop in your town and looking for someone they can trust. So having real images could make you appear more friendly and trustworthy. By the way, what is the score you're referring to? I tried to view your site and I'm getting an error message.

Rick, Posting a topic is a great way to get help. The best way to get clarity is to do an "audit" (as I call it). Doing an audit will allow you to see where there are inefficiencies, either in the bays or at the counter - or in both areas. So, to do an audit by reviewing last week's tickets, please answer the following questions: How many tickets were billed out? When you look at those repair orders, does the information and the jobs that were sold on the estimates match the completed invoices? What you're looking for first is... Were there jobs that were sold that were not carried over and billed out? Was the labor time calculated correctly on the estimates and the completed invoices? Also, is there a reason you believe the problem is related to parts delivery? What is happening with parts deliveries that is causing you to think that is a big issue? For example, if your tech is waiting on a part, what is he doing while he's waiting for a part delivery? And when you say you feel like you just ran around like crazy... what is it specifically you are referring to?

Hi everyone, I'm looking for feedback and specifically what experience you've had with the warranty portion of the TECHNET program. Have you used it? Have your customers used it? What is the response time for towing, for example, when the customer used the nationwide coverage? Have you had out-of-town customers referred or towed to your shop because you are a TECHNET shop? What has been the process been like for submitting a claim? Was it easy? Were you reimbursed in a timely manner? What about the road hazard warranty? Anyone selling their road hazard warranty program? Any information on your experiences would be helpful. Thanks!

Michael, Welcome aboard! Conferences are a great way to learn new info from the presenters and also to network with people. Here's a quick story.... I was attending a conference, and during one of the breaks I met a guy who shared an idea with me. The end result was.... Two things came out of that short conversation in the hotel hallway. 1) That one idea he shared with me increased our sales by close to $60,000. 2) We started a business relationship and friendship that has benefited both of us for many years. There's no doubt in my mind you will meet a lot of sharp people.

Great pic!

There are a number of things to consider when it comes to categorizing customers. If you are the shop owner and the service advisor, you have total clarity on who you do or do not want, as a customer. It becomes a slippery slope when you have a service advisor because now when it comes time to ask the service advisor "why they didn't sell that job", the easiest excuse for them becomes: That customer didn't fit the customer profile. When that happens, you have nowhere to go from there, in coaching your service advisor because now it's subjective, meaning there is no clear-cut way of evaluating if that's the real reason that job wasn't sold. You would have sold the job but he believes the customer profile was the reason he didn't sell the job. When that happens, what could have been a learning opportunity for him to realize what step(s) of the sale he missed... now becomes the customer's fault he didn't get the job. The excuses are endless: "Waiters never buy." "Coupon clippers never buy anything other than what's on the coupon." "Waiting oil change customers never buy." "Nobody is buying this time of the year, especially people with kids." Etc. Etc. In almost every case, the customer didn't buy because the job wasn't sold correctly.

If you truly want to build a solid, predictable money-making business, here's something to consider. I know it's been taught for a number of years that you need to define your customer profile. That's true to a point. For example, most shop owners do not want to service the customer who brings in his own parts. However, the customer who wants to wait in your waiting area for their lube, oil & filter, is not necessarily a cheap customer who doesn't care about their vehicle. Let's face it. Customers have been conditioned for YEARS that auto repair shops have a waiting area with coffee and a TV. (Even wifi, these days.) So, based on that... Assuming that waiters are not customers that care enough to spend money for the maintenance of their vehicle is a misconception and is costing you sales and profits. The other issue to turning away waiters is it decreases your return of investment for your marketing. Think about it: Marketing is about getting the customer to call or come in. If they respond to your marketing, but then you're telling them you don't want their business unless they are willing to leave their vehicle, it sends a mixed message. Customers choose a shop based on a number of things and convenience is very high on the list. Why make it hard for the customer to do business with you. If you have trouble selling service, it's not the customer's fault. It's a problem with your selling process. Think about this: Customers only know three main things about their vehicles: They need to put gas in it constantly, change the oil periodically and buy tires occasionally. The good news is: They're coming in to get their oil change from your shop. It's up to the service advisor to use that oil change as an opportunity to educate that customer - in a customer-friendly manner - what else their vehicle needs to get the maximum life out of it. The question is not how do we limit waiters. The question is: how do we effectively sell legitimate repairs and scheduled maintenance to all customers, including waiters?

We've discovered there are 3 common misperceptions about fleet work. I posted an update to my blog, addressing those misperceptions, if you're interested: http://www.autoshopowner.com/blog/16/entry-197-3-common-misperceptions-about-fleet-work/

Hi everyone, Just a quick note about the Fleet Work Program. The first 7 slots filled up quickly, so I opened up another 7 slots. There are only 2 of those slots available. I do not know when (or if) I will open up more. In case you're on the fence about what fleet work can do for you, I want to clear up 3 common misperceptions: Misperception #1: "There's no profit in fleet work because you're competing on price." Fleet owners understand the big picture and make their decision based on the value you bring to them, in keeping their vehicles on the road. (When you sell fleet work correctly, price is never part of the conversation.) Misperception #2: "You have to give them credit and terms." Everyone has heard stories about shops that didn't understand how to set up the account correctly and then, ended up with lots of credit on the street. (Getting paid on time - every time - is all about setting the expectations correctly, in the first sales conversation.) Misperception #3: "Special tooling & equipment is required before you can get started." There are lots of companies in your area that have light trucks and vehicles that are unhappy with their current fleet work service provider. (The smart way to get started in fleet work is to pick and choose who you want to work with, based on specific criteria.) Our clients increase their car count by an average of 2-3 vehicles per day. Retail customers spend an average of $766.50 per year maintaining their vehicle. (according to AAA.) Fleet owners spend much more than that, per vehicle, every year. Here's the question for you: What would an additional 10-15 repair orders per week, do for your business? Learn the proven strategies for adding this profit center to your business and keep your bays consistently filled, with profitable work. Space is limited, so click here now: http://sellmoreautoservice.com/fleet-program-application/