Elon Block

Systems are where I struggle the most. As a small shop it seems like the whole system falls on my shoulders!

 

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What do you mean when you say the whole system falls on your shoulders? Can you

give me an example of what that looks like?

++++1 For reading eMyth. It is well worth the time investment.

In June of 2012, I was fortunate enough to be enrolled in a program taught by Michael

Gerber himself. My conversations with him about systemizing an auto repair shop drives

every single conversation I have with shop owners today.

If you look at any of my posts in this forum, any of my articles, videos, etc., the

information I share is always based on systems and processes...

Because a shop owner's paycheck is hiding in areas that aren't systemized. It doesn't

matter whether we're talking about working with "price shoppers", selling alignments

or managing your schedule.

I am a fanatic about it because once you set up processes - it makes your business

run smoother and way more profitable. It also eliminates almost all your stress.

Handson,

Have you read "The eMyth" by Michael Gerber? If not, I highly recommend it.

This book will change the way you look at your business and your role in

your business.

Hope that helps.

There have been a couple of very interesting posts in this forum recently that are worth

millions of dollars to you and your business, when you look at things from your customer's

perspective. One of the posts was written here by carolinahigear:
http://www.autoshopowner.com/topic/10103-openbay/?p=25600

And this brand new post from Mario:
http://www.autoshopowner.com/topic/10141-i-price-shopped-this-week/

In my humble opinion, sales is about giving the customer a valid reason to buy from YOU!

It doesn't matter what you're selling.

Consider this...

If a good friend of yours called you up on the phone and asked, "how much is an

alternator for my car?"

What would you say to them?

I checked ked with my local big tire shop he tells me sometimes they charge 10 to mb sometimes 40....

 

How do I find out about paying the extra tire tax?.

 

Elon I'm liking you more and more. Sure we can't talk after business hours when I can focus?

We do our best to model what we teach. Here is one thing we teach. "You must

stay true to what's important to you." For me, family comes first. I therefore, operate

my business during normal working hours. (I'm typing this early on a Saturday

while the rest of the family is getting ready for today's activities. However, above

and beyond that... I have normal working hours.)

The second thing we've learned is: If a business owner cannot set aside

devoted time to work ON the business instead of IN the business, he/she

will not have the devoted time to implement our coaching and training.

So, we may not be a match, until that commitment can be made.

Coaching and training is a participatory sport. Since our work with our clients

is action-oriented - not just theoretical conversations, we can only work with

business owners who are committed to carving out time to focus their attention

on the activities required to build their dream business - whatever that looks

like for them.

In case you didn't see it, here is my answer to your other question about this:

http://www.autoshopowner.com/topic/10134-service-writer-training/?p=25888.

Some people have expressed concern over his age but it's only a couple of customers that I don't even like to deal with. He has enjoyed the position and seems excited to do some training.

 

What are the cost of these programs you guys mention. I had a fellow named Elon contact me with training videos but he wants to get me on the phone before giving me the details. I don't have the time to spend on the phone listening to a script trying to find out cost and logistics.

 

Has anyone else heard of a fellow named Elon that does training?

 

I think I will grab that book it will be nice to hand him something he can take home.

 

I have been training him myself so far and he improves a bit each day. He knows the service writing software and can build estimates easily.

 

He talked to a woman from auto profit masters and said she hit all the things he feels he needs to work on.

 

I like what I have heard from Elon so far but am turned off by the fact that he needs me on the phone.

Let me jump in here and answer your question about the phone call. Here is the

email I had written to you:

We have a number of training and coaching programs available. A sampling

can be found here:

http://sellmoreautoservice.com/programs/

There are a number of things that set us apart. What we are most known for

is our approach to helping you build a business built on systems and processes.

In other words, every time you add a process/system to your business, you

add profit margin. It also helps the business run smoother and eliminates stress.

up schedules.

Just like you or any good shop can't diagnose a check engine light using email,

I can't diagnose what your business needs using email either.

I know there are many coaching and training companies that use their

live weekend workshops and the phone to get you to buy their programs,

even going so far as to use the shop's Profit & Loss statement to intimidate

and pressure the shop owner into making a decision.

The reason I know that is we receive an average of two calls a week

from shop owners that have experienced that, first hand.

We do not believe in any of that nonsense.

However, I do believe that for a coaching/training program to work,

we do need to see if we're a match when it comes to philosophy

and how you want to run your business.

For example, if you want your service advisor to use high-pressure

scare tactics or laundry lists (customers now call those "wish lists"),

we are not a match.

If you want training from a company that has spent countless hours

talking with customers to find out why they buy and why they don't.

And analyzing why service advisors sell and why they don't make

the sale...

And then, reverse-engineering a proven, effective sales program...

that is customer-friendly AND your employee can see himself/herself using it...

Even if they're not a natural born sales person...

We may have something to talk about.

We also don't take everybody unless we feel we are a match

to work together. There are many reasons for this but one of

them is we have a 100% no questions asked, money-back

guarantee. No one else in the industry has this.

What that means to you is: If we are going to offer you a

coaching and training program that has absolutely no risk

to you meaning all the risk is on our end with our guarantee...

We want to make pretty sure upfront that it can be successful.

Hope this clears up your question about the phone call.

Welcome aboard!

Your specialty sounds interesting. How did you get started in that?

I've never heard of it. While we're talking about pricing jobs and so on, I'd like to share a few things. I'm wanting to get 3 new toilets installed in my 26 yr. old residence. I looked on-line at some, and then I called a highly-regarded plumbing company in my area. I asked the lady if she could give me the price on toilets and installation costs. She politely told me that a technician would have to come out and look at the job, make some recommendations, and then they would give me a price.

 

I thought....well, this is like people that call us wanting a price on brakes, tune-up, and other jobs that we haven't seen or inspected. So why would we give a price when the leading plumbing company won't? I have found that I like to have a goal of setting an appointment with the caller, because if they never come in the shop, I cannot get their business. Let's all get better at setting appointments, and from that appointment and inspection then let's sell the job!!

This is a great example of what's happening daily in shops everywhere.

Whether we like it or not and whether we agree with it or not...

Sites like OpenBay, RepairPal and AutoMD are just the tip of the iceberg. More and more

sites, like this, are popping up every single day. We're never going back to the good

old days. As a result of the internet, everything is out in the open.

For example, your parts and labor pricing, is public knowledge now. In other words, your

customers have access to the exact same information you do.

To pre-judge them or immediately jump to the conclusion that "they don't match my customer

profile, anyway" is costing your business money.

The truth is:

They're just trying to be smart shoppers - like you and me.

The solution is to be able to communicate effectively with today's more educated, internet-

driven customer. The challenge is: most shops in your area have also decided not to quote

pricing over the phone for obvious reasons.

So what happens is: your service advisor might be the third person they've talked with that

hasn't given a bonafide reason that makes sense to the customer as to WHY they

would be best served by having them bring the vehicle in.

It's no wonder the customer gets impatient because they feel frustrated because they can't

get a straight answer to what they perceive is a simple question.

The shop that communicates the best, during that step and every other step of the sale, will

not only get that one job...

They will win that customer's loyalty, which is worth tens of thousands of dollars of work

that customer will need over their life-time of vehicle ownership.

Bottom-line: the wing it and hope method of selling is no longer an option.

Welcome aboard Gary! There's a wealth of knowledge and members experience you can learn from on this site.

Is your shop currently up and running ?

Anyone able to share some insight as to why I can't seem to find anything other than brake pads/rotors or light bulbs for Hyundai cars in the aftermarket? My local dealer is the only game in town, and has stopped delivering parts to independent shops. None of my vendors seem to keep much of anything in stock. Frustrating.

Not sure if you get the Ratchet & Wrench magazine? This month's magazine has an ad on Page 20

from a Hyundai Dealer, located within an hour of your shop. If you do not have that magazine issue,

send me a private message and I'll send you a photo of the ad.

You may think an hour away is too far. It's been my experience a wholesaling dealer advertising

in a magazine like Ratchet & Wrench is set up to service a large area.

There are many aspects to dealer parts. I wrote an article that may help you when you talk to

dealers about buying parts:

http://sellmoreautoservice.com/partspricing/

Let me know if you have any questions.

By the way, I have worked with lots of tire dealers and one of the biggest challenges a tire dealer faces
is the public sees your big Michelin sign and immediately jumps to the conclusion you only sell tires.

In other words, that bit of information gets filed away in their brain that your store is a place they might

pop into... if and when they need tires.

How do I know this?

Over the years, I've talked to countless customers in tire stores about this exact subject matter.
Almost all of these customers are surprised to find out that a tire store offers more than just tires.

The typical response has been something along these lines...

"Wow! You guys can take care of my oil change! I thought you just sold tires!"

The public is unable to connect the dots on their own. They must be told specifically what

you do and why they should use you for all of their automotive needs.

That's why what happens at the counter, meaning effective communication is critical in telling

every single customer exactly what you do and why they should use your shop for everything

rather than your competition!

Here's an easy way to confirm this with your own customers....

Ask your tire customers - present customers and past customers...

Who does their oil changes? Who does their scheduled maintenance for them?

The answers will help you determine if this sign is the solution. And if it is... what message and

offers you should put on the sign.

If I was considering a $30,000 purchase with a five year commitment...

I would look at a couple of things...

I would see if the sign company would be willing to give you a four week trial due to the

fact that In another thread, you had said your traffic is slow for two weeks and busy

for two weeks every month. Based on that, you really need more than a two week snapshot.

In addition to that, I would test it by putting a killer offer on it that would tell you

beyond a shadow of a doubt what brought those customers in. Otherwise, it could

have been your other signage and/or your location on a busy road.

I'm at my wits end. I have been the store manager for the location I'm at now for 8 months now. I have noticed that the first 2 weeks of the month is extremely slow and the second 2 weeks we are slammed. I have tried everything I can think of advertising wise to get more cars in here to fill the 2 week void but nothing is working. If anybody has any advise or ideas it would be greatly appreciated.

What kind of advertising are you using? Are they promotions, coupons, new customers,

existing customers, etc.

What's the difference in car count between the first two weeks and the second two weeks?

This is is the first step in diagnosing what the issue is and coming up with a solution.

I am currently working on this subject as well. We get a lot of older cars at the shop as well as plenty of new ones. My techs came from a European shop and to me it is amazing to see them breeze through repairs on a 750 Bmw but struggle on an 87 Cutlass. I am contemplating hourly plus percentage because while my guys work 45+ hours a week sometimes they only turn in 13 hours. And this is with a constant flow of cars. The old stuff is killing them.

As I've contemplated your specific challenge, I have a question for you...

Have you taken a hard look at your numbers? In other words...

You indicate you have a "constant flow of cars". When you look at the tickets for each tech,

how much work was actually sold during that 45+ hours week? That's the first place to

start to gain clarity in where the challenge is and therefore, how to solve the issue.

In my opinion, when it comes to flat rate or hourly, I believe there is no one-size-fits all.

This very important decision can have a wildly positive - or extremely negative impact
on everyone and everything it impacts: Your techs. Your customers. The workflow.

And of course, your bottom-line.

Because I get this question all the time, I wrote an article about this subject:
http://sellmoreautoservice.com/flat-rate-or-hourly-pay-plans-which-is-better/

I'm curious to see what pay plan everyone is using and why you believe it works so well.

Thanks Elon. Unfortunately I don't have good systems for anything else but I'm working on it. .

alredauto, the good news is: you're working on it. And you may have more systems, in place

than you give yourself credit for. Otherwise, you wouldn't have the packed calendar and

the loyal customer base, that you have. So, good job on that!

I am grateful for the responses. I decided to call 3 of the no shows to possibly get some answers. One didn't answer. The other two said they found it cheaper

alfredauto,

That's quite an impressive system you've developed. It sounds like the way Nascar teams train their crew for pitstops. Nice!

I believe in systems for everything.

Marcus Lemonis says, "when you put processes in place, you automatically add margin."

Your results are evidence this principle works, in the real world.

I am grateful for the responses. I decided to call 3 of the no shows to possibly get some answers. One didn't answer. The other two said they found it cheaper or a friend did the work. I am also amazed at the number of people that do ask to bring their own parts in. I knew before moving to this neighborhood it was going to be an adventure but I never expected so many people to give their word on something and then break it. It just aggravates me the lack of integrity in such a great majority of people. Maybe that is why the median income in this area is around $30,000 a year. Maybe I can take beer as payment and start a new business reselling beer and cigarettes.

I have to give you credit for taking the time and calling the people to find out why they didn't come in. A follow-up phone call

is the best diagnostic tool you have at your disposal when it comes to solving customer-related challenges because it elminates

all guesswork. In other words, the customer is letting you know what happened.

I have a few ideas on how to fix the issue, but first... were these appointments made online via your website, were they made

during a phone call or were the customers standing in your shop when they made the appointment?

There was a pretty good conversation about tires and road hazard warranty here, you might also want to read:
http://www.autoshopowner.com/topic/9767-pricing-out-tires/

The manager in this article understands the big picture:

http://www.moderntiredealer.com/news/story/2015/05/a-quick-cruise-through-goodyear-com.aspx

Everyone reading this thread is probably an internet shopper, at some level.

Some customers are going to buy their tires online. That's something we have no control over.

I've actually been standing in auto repair shops when Tire Rack customers have come
in for their installations. And I had the opportunity to talk with them.

Taking a curiosity approach, I've asked the customers "what made you decide to
buy your tires online?"

It was almost always because they "thought" they were saving time and/or
money by purchasing their tires online. Because customers don't understand
the auto repair business, they almost never save time or money.

But because they're trying to be smart shoppers, they turn to the internet.

The other thing I discovered during these store visits was:

How those customers were treated by the service advisor varied greatly from
store to store.

The service advisors that understand the big picture know they are being paid
for their performance and sales.

The big picture I'm referring to is: The money is not in that one tire sale.
The real money is in gaining a new customer that will use the shop for ALL
of their vehicle needs.

Here's the best example of a service advisor really capitalizing on the opportunity.

I was in a shop when a Tire Rack customer came in for his installation appointment.
The service advisor, at an appropriate time, strategically asked the customer
what he paid for his tires. The customer told him. The SA looked up his own
tire price and said, "For future reference, our price would have been about
the same. Here's what the difference would have been in the way of added value to you.
Blah, blah, blah."

The customer responded with, "WOW! That's good to know! Especially since I have
two other vehicles that need tires soon. My wife's and my son's cars. Can you give
me a price for those?"

In the next couple of weeks, that customer spent THOUSANDS OF DOLLARS with that shop!
Tires. Alignments. Front end work. Brakes. Oil changes.

Chances are: this shop would not have gotten this new customer if it wasn't for that

online tire purchase.

Here's an example of a different way the service advisor treated an online customer.

The sales person told the customer that "because he didn't buy his tires at the shop,
he was going to be charged a $10 surcharge for each tire."

What happened next? The customer not only left and took his tires with him,
he posted a review online about his experience.

So, for $40, that service advisor cost the shop countless dollars in future
business - not just from that customer - but all the potential customers that
are still reading that review years later.

That surcharge was like stepping over dollars to pick up pennies.

Bottom-line: Understanding that customers know very little about their vehicles
beyond putting gas in it and changing the oil occasionally. It's up to us to help
them unravel the mystery of what it takes to maintain their vehicle properly.

The shop that can do this will never have to worry about sales/profits.

For those that are following this topic, here is an update:
http://www.tirebusiness.com/article/20150506/NEWS/150509963/goodyear-online-tire-sales-debut-in-chicago

Other tire manufacturers are closely watching what Goodyear is doing.

It will be interesting to see what this does for the customers and the dealers.

Nate,

You've gotten some great suggestions here. It all boils down to:

What happens if...

You say you are meeting with an attorney. Hopefully, it is someone that

specializes in small business partnership arrangements, like you are

talking about, so he/she already has a big checklist of..

What happens if...

Here are a couple of real life "What happens if..."

If you are the person in charge of operations and you want to purchase an
alignment machine? Or hire or fire an employee...

How is the decision going to be made?

For example...
My wife and I are business partners and we have clear guidelines we have

developed that help us make the decisions for both of our businesses.

On some things, she has the final say. On others, I have the final say. These

guidelines are based on our individual strengths.

So, partnerships can work exceptionally well as long as clear expectations are

set in advance.