Shopcat

Joe Marconi said: For me it is pricing. I think as an industry we are too cheap for what we do, what we need to know and how we service our customers. Labor charges has to be more in line with today's demands on overhead, tool expense and training.

 

Plus, we will always battle the tech issue until we can attract quality people. I am not saying it's all about money....but it does factor into it.

 

Collectively we need to convey to the customer value, not price. We need to deliver world class service and not lead with price or market our business by price alone.

 

 

I agree, and if we would get better at charging accordingly in line with what it costs to run a shop, we would have more money to attract the better techs and provide more competitive benefits as well. Seems like a win, win.

M-spec, I tend to agree that for many shops finding and keeping qualified techs is the biggest challenge. I get the fact that you see many challenges, I'm like that...always looking to improve in every area possible area. Thanks for the response.

I have noticed several concerns shop owners all seem to be struggling with lately. My question to the entire ASO community is what specifically is the single biggest challenge your shop is facing right now? Is it finding qualified technicians, or maintainging car count, or something else. Also what if anything do you think needs to be done to resolve the challenge?

It’s a typical day, if there is such a thing in this business. You start thinking about what has to be done during your drive into the shop. You get to the shop and it begins. Your service advisor wants to know how to handle a warranty situation. Next is your lead tech and he’s not sure what to recommend on a car because fixing it the right way may cost more than the car is worth. Just as things are starting to settle down another tech pops in your office and needs you to see the play in some upper control arms bushings, then “call the ball” for him. Next is a customer that wants to deal with you directly. Your service advisor asks you to help Mr. Jackson, who is one of many who insists on dealing with you and only you. This continues through the day. The details of each situation are different, but the issue is always the same. Your employees cannot or will not make decisions. Does any of this sound familiar? It probably does.

 

Shops that operate like this are stuck in a type of dysfunction and will never experience any real growth. This begs the question, how can you break out of this cycle and have your staff function independently and efficiently? The primary problem in shops that function like this is that the employees feel disconnected from the company. Employees can feel this way for a number of different reasons. It may be that they do not understand your vision for the company. They may feel that no matter what they do, it won’t be good enough. Many times employees are reluctant to make a decision because the owner seems to think job one is to assign blame when something goes wrong, and take credit when it goes well. Some owners and managers engage in gossip and closed door criticism with other employees. All of these things, and more, can and do contribute to a culture of dysfunction that is apparent throughout the shop.

 

First thing first. Stop this type of negative behavior. You must decide to adopt a positive attitude and lead in a productive way that empowers your employees to function independently and contribute to their own success and the success of the shop.

 

Hold regular meetings and share your vision for the business. Hold meetings at least once each week. Tell your staff what you expect and give them the authority to make decisions. Assure them that they will have your full support. Make sure your meetings are interactive and get your staff to participate.

 

Commit to spending at least one hour per day developing written standards and procedures on how you want your shop to be run. Develop an employee policy book. Have a written procedure for the top ten jobs performed at your shop and let your staff have plenty of input.

 

Get with your service advisors and develop a procedure for customer write-ups. Be sure to always emphasize the three C’s; Cause, Concern, and Correction. Be positive with your staff every day. Compliment them on their success. You need to be a force for positive change every chance you get.

 

The gold standard of shop management is that the shop functions as if you were there, even in your absence. Break the cycle of employee emotional dependency and take your shop to the next level!

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In the Florida Panhandle, they are referred to as fender lizards. Good article Gonzo.

Thanks Joe and Frank. Let us never forget those that made the ultimate sacrifice. We are forever in their debt.

I have had some interviews I terminated early and thought I just saved myself a ton of grief. I have developed a pre-employment quiz that the applicant fills out along with the application. Then you can sift thru those and decide if there are any candidates worth your time to interview. You can craft it to fit your shop. I would be happy to send you one if you like.

Great point Joe. Allowing this type of situation to go on only leads to further dysfunction.

Classic story. Good job getting a service advisor. In my experience shop owners are the worst on the counter. It seems like customers try to work the owner for discounts. You will love having that firewall at the front counter.

Zig Ziglar once said, “It is easier to explain price once than to apologize for quality forever”, and I agree completely. The fact is that you must have great people and procedures at your sales counter. You may have the best diagnostic equipment, tools, and talented technicians available and it is useless if you are not bringing your “A” game at the front counter. Does your shop have an organized, talented sales team? Do they have clear guidance and training to make it all happen? What golden rules do you hold sacred at your sales counter?

 

Here are Four counter measures that will insure success in accommodating your clients:

• Great relationships: Your service advisor must develop great relationships with your clients. They must be easy to like, smart, and organized, to say the least. A great service advisor should go out with the client and walk the car to take notice of things that interest the client. Look for NFL team stickers, NASCAR items, baby seats, free mason logos, military stickers, or anything that can help establish a connection. As your service advisor develops relationships they will build trust and credibility. At the same time you should give the vehicle a good look. Are the tires worn evenly? Do you smell any burning fluids? Keep your eye out for any body damage, scratched paint, or broken lights. Casually mention any noteworthy observations. Giving this kind of time and attention to your client will pay huge dividends.
  
• Good intelligence: Getting a good problem statement is so important. So many clients want to over simplify what they tell the service advisor. The reason is either they are not detail oriented or, more likely, they believe the simpler they make the problem sound will determine how much cheaper the repair will be. This is where great service advisors earn their stripes. A few minutes harvesting a good problem statement at the counter can literally save hours in the shop. One of the best ways to get the desired problem statement is by asking open ended questions. Here are a few examples;
  

• When was the car last working correctly?
  
• Then what happened next?
  
• What else happens when the car symptomizes?
  
• Under what conditions does the car symptomize?
  
• What does the noise sound like?
  
• How big is the puddle? After how long?
  

This line of questioning will take its own course through the service advisor’s experience and analytical mindset. The result will be a spot on problem statement.

• Analyze the information: Gather all the information on your client’s vehicle and assemble it into a logical plan. First, take the diagnosis of the problem the vehicle came in for and turn it into a complete estimate. I emphasize “complete” because so many shops miss the boat right here. Many shops will do the minimum repairs that are needed. These are shops that are worried about car count instead of making the cars count. Remember, we are going to solve the problem not fix the symptom. Always think in terms of concern, cause, and correction. Organize the results of the diagnostic and the inspection into the following format;
  

• Needed repair: This would be what you recommend doing first and why. For example, front brakes that are metal to metal. You would probably recommend calipers, rotors, pads, hoses, rear brake clean and adjust, as well as a brake fluid flush.
  
• Reliability: These recommendations might include C.V. shafts because outer boots are cracked, but not broken, serpentine belt and tensioner that are worn, but still operational. Things that must be done soon, before reliability is compromised.
  
• Preventative Maintenance: These are maintenance items you recommend due to mileage or that are indicated on your inspection. Some possibilities may be a tune up, timing belt, struts, radiator hoses, or transmission service.
  
• Economy: These are things that are recommended for better economy, like a fuel injection service, air intake cleaning, air filter, or oxygen sensors. These would be the finer points that really put your client’s car into top shape.
  

• Presenting the plan: Always lead with the good things you found during the inspection. Compliment them on keeping their vehicle in good repair. Next address the items that need to be repaired. Explain why you are recommending these items. Going back to the brakes; We recommend the calipers because they are seized, the rotors are ground beyond specification, pads, hoses are old and could be breaking down internally, the brake flush is needed because it’s overdue and the grinding brakes most likely boiled the fluid.
  

The most important part of presentation is the recap. “So, Mrs. Jackson, to do the brakes with calipers, hoses, and brake flush, which includes our 12/12 Nationwide Warranty, tax and everything we discussed would be $472.00 total, out the door”. “We can have that done by 4pm today”, then shut up. At that point you will usually get the authorization to proceed with the recommended repairs. Always under promise and over deliver! You will build trust and credibility with your clients by providing them with the services and information they need.

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Thanks for sharing this story. What a great idea sending this letter to the editor. It seems good news rarely get any ink. What a heart warming story.

Hilarious story. Another great read. Thanks Gonzo.

 

 

 

Get Ready to Spring Into Summer

 

What is your plan for summer? As the weather warms up, people begin thinking about summer activities. It may be a vacation road trip or weekends at the lake. In any case, the focus will return to the family car. There are a few things your shop can do to accommodate your clients, put their minds at ease, and give your shop a renewed sense of purpose.

1. Focus on your vehicle inspection program with particular attention on summer items.
   

• Wiper blades, washer bottle, & washer operation
  
• Check brakes, brake hydraulics, parking brake, and test brake fluid
  
• Cooling system hoses, test coolant condition, pressure test, inspect radiator and expansion tank, belts, idler, & tensioner
  
• Check tires: general condition, measure tread, set tire pressure, and check for jack, handle, and spare.
  
• Perform a charging system and battery test. Check battery connections for proper torque and clean as needed.
  
• Inspect tune up/fuel efficiency items. Check throttle body, inspect MAF sensor, air filter, and visually check wires, plugs, and distributor cap and rotor if equipped.
  
• Check all fluids and use a fluid comparison plate that puts their fluid next to new fluid. The optics of this comparison are awesome.
  
• Check steering and suspension.
  

The general idea with the inspection is to keep your client advised about the condition of their vehicle. It will create sales and improves your average repair order. But by far the most important thing this does is build trust, and that trust is priceless.

1. When the vehicle is picked up, review the unsold recommendations in detail. Explain the benefits of the recommended repairs and services. Show the fluid plate or pictures. Once those seeds are planted, schedule your client’s next appointment. This will improve your ARO and stabilize your car count.
   
2. Follow up with a call in a week or two to make sure they were satisfied with the service and that their vehicle is doing well. Offer a discount on the unsold service. Have an expiration date for the discount to insure some urgency. This will keep your shop top of mind.
   
3. Be sure to promote your nationwide warranty. Get with your banner program vendor for handouts and some points of purchase material. Give each client one when they cash out.
   
4. Another way to stay top of mind and show your clients some appreciation is to do a cook out. Close the shop and grill out some hot dogs and burgers. Get a DJ or do a radio station remote broadcast. Promote it weeks or months in advance. Promote it at the front counter, in your existing advertising, and on your website. Have raffles and door prizes. When planning the date, be sure it does not conflict with any other local event(s). Be sure to personally invite your very best clients. Give them the VIP treatment.
   

These are just a few ideas to show your clients your concern and appreciation all at once. Take this opportunity to make the best of your summer. Focused inspections are great for business and demonstrate your professionalism. Summer only comes once a year and we have to make hay when the sun shines. Grab the reins and make it happen. Here’s hoping everyone has the best summer ever !!

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What an amazing story, Bill Krissoff and his sons are the type of Americans that are the very fabric of this country. One of my sons recently returned from a tour in Afganistan. We are proud of him and all service members that volunteer to defend our republic. Thanks xrac for posting this amazing story.

Great point Joe. Its more about where their head is. If they dependable, motivated, etc is more important than a fist full of certifications.

I say its a case by case situation. Keep a list of the warranty companies that are exhausting, like the example mspecperformance and xrac mentioned in this posts and refuse to deal with them going forward. However there are some good ones too that are reasonable and approve the needed work. This might be a good place to exchange experiences about aftermarket warranty companies as well as their names. After all the idea here is the collective mind and experiences we all have so its mutually beneficial.

I appreciate all the likes and positive feedback from everyone. I hope this article was entertaining, and more importantly informative and useful. Thanks ASO!

Good article Gonzo. I think it is very important to get paid for diagnostic time. We just have to explain the training, time and equipment investment that goes into finding these solutions. As far as the common sense, well I think it used to be "common", then about 10 years ago it edged into "uncommon", and recently it has been promoted to a superpower! Good read Gonzo. Thanks

Peter Drucker has been called the founder of modern management. He was a brilliant Management Consultant, Author, and Educator. One of his best quotes is: “The Entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” This tells me that we must constantly evolve in the way we conduct business.

 

What is the biggest opportunity we get every day? The phone! Incoming phone calls are a regular part of every day at any given shop. The question is, are you exploiting this opportunity to its fullest? Probably not. Most shops have no real process, so the caller guides the call, and we hope for an appointment. Every time your service advisor fails to convert a phone inquiry into an appointment you lose a lot of revenue. Not only losing the amount of the average repair order, but the repeat business that lost client would have produced and all the references that could have come from that new relationship.

 

The cost of not converting a call to an appointment is staggering. Let’s say you are losing only one conversion each day at $250 / average RO, 300 working days per year, that would be $75,000. That is real money. Research shows most shops lose 2 to 3 phone leads each day.

 

The good news is you can better exploit this opportunity without spending any additional money and bring that business to your shop.

 

Here are a few things you can do now to improve your phone call conversion rate:

 

Before the Call:

• Meet with your team and select the things that set your shop apart from the rest. For example, 22 years in business, locally owned, ASE Blue Seal shop, Nationwide Warranties, etc.
  
• Craft a policy that when an employee is on the phone, everyone else covers for them so that the call can go on uninterrupted.
  
• Always answer the phone with pen and paper in hand.
  

Answering the Call:

• Answer by the 2^nd ring.
  
• Have a uniform greeting that works like, “Thanks for calling Tiger’s Tires, this is Bob”. You answered the phone to help, so it doesn’t need to be said.
  
• Always answer the phone with a smile.
  
• Answer with cadence that is not rushed and use a pleasant demeanor.
  
• Ask for the caller’s name, write it down, and use it during the call. Dale Carnegie said that a person’s name is to that person the sweetest and most important sound in any language.
  

During the Call:

• Establish a connection with the caller. Discover the purpose of the call. Use complete sentences, not “What year again?”
  
• Listen closely to the caller. Don’t be distracted by other things happening around.
  
• Ask open ended questions that get to the caller real concern. Asking questions does 2 things; It builds trust and gets the needed information to get them into your shop
  
• Pace your caller. If they speak quickly, you do the same. If they are more conversational, slow your roll and keep their pace.
  
• How and when to put a caller on hold: Before putting the caller on hold, let them know why and ask them if they can hold briefly. “Mrs. White, our service manager would be the best one to answer your question, so could you hold briefly while I get him?” Next, get them quickly; give him the necessary info, and what line Mrs. White is on. Now, they should pick up the phone and start with, “Mrs. White, thank you for holding, Bob tells me you have a question about your….” Have you ever been on hold, the person on the other end just pick up, and immediately start back like they were never gone? It’s unprofessional and plain rude. Notice the customer does not have to tell her story over again. This is showing care and professionalism. It’s a simple thing to do but it is very much appreciated by your clients.
  

Closing the deal:

• Get them into your shop
  
• Offer to set up towing
  
• Ask when they could bring their vehicle in for an evaluation and get them to set an appointment.
  
• Remember they need something. No one calls around for the fun of it. Get their concern handled.
  
• If they don’t commit, find out what concern you have not addressed and handle it. Ask more open-ended questions until they commit.
  
• Keep your notes for future reference
  
• Be sure to leave a great last impression. Offer a closing line like –“Nice speaking to you today” or “Look forward to meeting you”.
  

So, don’t miss out on the biggest opportunity you have every day. Think of those incoming phone calls as more revenue for your business and make it your mission to convert them into as many new customers possible.

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Great article Gonzo. I think this line really summed it up for me. " Theres more to it than the cars. Its something that gets in ya, its something that inspires you to deal with all the changes." Well done and as always an excellent read.

5 Star, Scripts can keep the presentation on point, but the service advisor must believe in what they are selling. To that end I recommend vendor training for the service advisors (Wynns, BG, etc) on the fluid services. Let them get some details, like that brake fluid is hydroscopic, how fuel systems develop varnish, the benefits of upper air intake cleaning. Do some needed services on the advisors personal vehicles. Once they are believers it will shine thru their sales presentation.

Thanks! I appreciate the feedback and the kind words.

With change comes opportunity. The shift in the auto repair industry is definitely toward women as your primary clients. The good news is your competition is probably unaware of this trend.

 

The Automotive Aftermarket Industry Association discovered in a recent study, almost 90% of women are now involved in the decision process for their vehicle’s repair and maintenance, 68% of them take the vehicle to the shop themselves, 45% are solely responsible for their auto repair and service decisions. That is amazing. Do you have 60% or 70% female clients? If you do not, you are missing out on a lot of business. If you are looking to develop a brand or a reputation, I would consider becoming the go to shop for female clients. The fact that the numbers are so big makes this an attractive area on which to focus.

 

Female clients have specific needs that are easy to accommodate. Women are looking for a shop that is informative, treats them with respect and appreciates their business. Forget the think pink garage or anything that can be construed as condescending. Put your female clients in the position of making an informed decision and they will be loyal to your shop.

 

Women Think Differently Than Men: While this is not news to anyone, most shops have had the same approach to business all along. Now it’s time to focus on the 60%-70% of this lucrative and loyal market. The traditional male client is a transactional buyer. His loyalty is to the best deal he can find. This kind of client may not remain loyal to your shop. Let’s get a general overview of what a female client wants from her repair facility. Your target female client is a relationship buyer. This means when you develop a relationship with her, she will develop loyalty toward your shop. You must identify her needs and fulfill them. Here are some things you should know.

● About 25% of female buyers shop online daily, and 80% to 90% will share deals they find with their friends and family.

● Your target female clients are more likely to be busy parents with a demanding schedule. Their time and is very important to them.

● Most women will not complain if they have a bad experience, they simply will not come back to your shop. However they will share this experience (good or bad) with people they know.

● Women want a shop that is very clean and has a professional quality about the entire facility.

● Women will drive a relatively long distance to a shop they feel loyal toward.

● Women want to make informed decisions. They value information that will empower them to make the right buying decisions.

● Your female clients are far more likely to keep appointments and follow trusted recommendations.

● Women want a shop that is a good citizen of the community, and demonstrates it with action, not words.

● They want a fair price, but will not expect you to be the cheapest.

 

These are just a few things women are looking for in a shop. You have to cater to these needs if you want to build your client base and car count.

 

Communication and Educating your client demonstrates concern and gives her more empowerment. You are not telling her what to do or think. You are sharing information that she can use to make informed decisions. Think about purchases or decisions you make without really understanding the situation fully. It is a bad feeling, especially if you consider the importance of having a dependable car at your disposal, but not being comfortable deciding on how to maintain or service it. If you empower them through communication and education, you will have a loyal following.

 

Educating your clients is just a matter of changing how you present the information. The presentation should be based on the vehicle inspection and formatted into a list of priorities that includes why one item is more pressing than the next item. Here is a format to use when presenting the results of an inspection.

1. Needed Repair: This would be what you recommend doing first and why. For example, front brakes that are metal to metal. You would probably recommend calipers, rotors, pads, rear brake clean and adjust, as well as a brake fluid flush.
   
2. Reliability: These recommendations might include c.v. shafts because outer boots are cracked, but not broken, serpentine belt and tensioner that are worn, but still operational. Things that must be done soon, before reliability is compromised.
   
3. Preventive Maintenance: These are maintenance items you recommend due to mileage, or being indicated by your inspection. Some possibilities may be a tune up, timing belt, struts, radiator hoses or transmission service.
   
4. Economy: These things are recommended for better economy, like a fuel injection service, air intake cleaning, air filter, or oxygen sensors. These would be the finer points that really put your client’s car into top shape.
   

 

Education is the key to building trust with your client. You must explain what they need and why they need it to the point that they are completely at ease with you and your recommendations. This level of understanding is the key to creating the empowerment that is so important to your client. Check out the following ways you can educate your client.

● Visual Aid: Use a computer animation of the system to show how the effected system works. Explain it in a way that shows what happens step by step, from pressing the brake pedal, master cylinder and power booster, down to friction material on the rotors. Mention each part along the way, whether it’s leaking, worn or inoperative. Use words that are professional like remove, disassemble, replace, worn out, leaking, etc. Do not use phrases like shot out, blown, yank, tear, pull, jerk, etc. She does not want anyone to yank, jerk or tear on her car. The visual imagery from these words is enough to lose the sale and the client.

● Show and Tell: The next step after the computer animation is to go out to her vehicle and show her each item you recommend. Point out the physical evidence for each recommendation; go as far as using a dip strip test on her brake fluid to demonstrate it should be flushed because it is contaminated. Show her the gouged rotors, and a new one, the leaking calipers, her paper thin and metal to metal pads. Explain that has been the source of the noise she’s been hearing. Ask her if there is anything she has a question about.

 

The final part of communication and education is consistency. Every time a client comes in you should double check the last work you did, because if there is a problem you can address it right now. Also check the recommendations you made last time and give her an update. Be sure to record on each invoice what items were declined.

● Follow up each unsold recommendation with some internal marketing. Send an email within 30 days with a discount.

● Use service reminder stickers for her next service. Studies show women rely on these. Refer to it as a service, not an oil change. I highly recommend machine printed service reminder stickers with your shop’s name, phone number and the mileage when the service is due. Get the machine that prints them out. Have the service advisor remove the old one and replace it with the new one. This will help ensure a steady car count and build loyalty. It is also a very professional touch. Be sure to list the items inspected and done during a service on the invoice. Review the invoice line by line and have your client sign the invoice. Let’s do an example of a service:

The 3,000 Mile Service –

 

5 quarts of Valvoline 10w30

Fram oil filter

set tire pressure to 35 psi.

spare tire and jack are in place & serviceable

belts and hoses appear good at this time

serpentine drive belt appears good

air filter may be needed next visit

charging system good at this time

front tires at 6/32 remaining

rear tires at 3/32 recommend replace soon

Etc…wiper blades, lights

 

This gives your client peace of mind and promotes trust in your shop. This also demonstrates the difference between your shop’s full service and the $9.95 oil change down the street. Remember always schedule your client for their next visit before they leave. Follow up in a few days to see how the service was and if she is happy with the repair. Your shop will enjoy a better average R.O., a stabilized car count, and a growing group of advocates telling everyone what a great shop they found.

 

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ScottyP's "Autozone" reference is spot on. They call it a diagnosis! My answer is , " so if we install the ------------------- , and it some how does not fix the problem, You are going to be fine with me, and go see the guy at Autozone with the situation for him to diagnose, right?" We have to explain a good and proper diagnosis is the most cost effective solution. Its a challenge at the very least.

The owner giving deals and letting folks take their cars before they pay is typical. I think a service advisor as a firewall is a great idea. Give them parameters and back them up. In the end people respect the fact that you have a business that's run like a business. The "deal" customer and the "ill pay ya later" customer usually ends up upset, and that's what you get for your trouble.