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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  1. Elite Worldwide Inc.
    By Bob Cooper

    When it comes to setting your long-term goals, you need to make sure that they all align with your core beliefs and that they are challenging enough to inspire you. As the leader of your company, it’s your job to inspire your entire team, and I’m sure you will agree that you can’t inspire others if you are not inspired yourself.

    With the changes in automotive technology, and the explosive growth in onboard vehicle infotainment systems, you can rest assured that vehicles will offer you many opportunities in the coming years.

    When setting your short-term goals, don't make the mistake of making them unrealistic, as so many do. In a business environment the purpose of short-term goals should be to bring out the best in people, and inspire them to think differently at the same time. Accordingly, they should be just out of reach but not out of sight. Studies carried out at Harvard University have indicated that short-term goals need to be reached only 50 percent of the time for them to effectively change the way we think, and if they are reached more frequently than 80 percent of the time, they are not challenging enough.

    Finally, whenever possible, you should break your annual goals down into quarterly, monthly, weekly, and daily goals. When your technicians and service advisors go to work each day, they should know precisely what needs to be accomplished by the end of the day in order to view their performance as a success.

    If you haven’t already done so, now is the time for you to solidify your 2017 goals, and to revisit your long-term goals as well. I realize that many of you may not have taken this step yet, so here's a starter list of 20 categories you may want to consider:

    Goal-setting checklist:

    1. Long-term growth goals, which may include diversification into other product or service lines, expansion, or additional facilities
    2. Long-term real estate goals that may include acquisition or mortgage reduction
    3. An annual sales goal that includes the financial growth of your business
    4. Monthly and quarterly sales goals that are seasonally adjusted
    5. Marketing goals that include the acquisition of both new customers and market share
    6. 5-star review goals
    7. Average repair order goals that are predicated on complete, ethical vehicle inspections
    8. Car count goals that are predicated on your annual sales and annual repair order goals
    9. Gross profit goals
    10. Productivity and efficiency goals for your technicians
    11. Closing-ratio goals for your service advisors
    12. Customer satisfaction goals
    13. Customer retention goals
    14. Personal referral goals
    15. Operating expense goals that are predicated on past performance and projected budgets
    16. Income goals
    17. Debt reduction goals
    18. Goals that are relative to any exit plan or succession strategy
    19. Career development goals
    20. Personal development goals

    Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.

  2. Elite Worldwide Inc.
    By Bob Cooper
    If you speak with most shop owners they’ll tell you that they think their shop is worth x amount of money. Ask them how they came up with that number, and they’ll tell you it’s based on what they heard another shop sold for, or it’s predicated on their annual sales. But if you really want to know what your shop is worth, first of all, forget everything you’ve heard about “goodwill” and the fact that you have thousands of names in your database. That’s icing on the cake, but it’s not something a buyer can take to the bank. And although there is some value associated with some franchise names, there are two things that are most important to a buyer: the “tangible assets” and the “income history.”
    Tangible assets are things like real estate, cash in the bank, secured receivables, inventory and equipment. To put it another way, these are the assets that buyers could turn into cash if they had to. When you’re establishing the value of your inventory and equipment, bear in mind that the actual appraised value may very well be far less than what you originally paid. So tangible assets are always number one.
    In regard to “income history”, we all know that past performance is no guarantee of future performance, yet the substantiated income history of a company is what buyers can use to forecast earnings. And don’t forget: The amount of money the “company” made does not include any income you’ve drawn out of the company as a salary. The company’s income is the amount remaining after all expenses, including your salary, have been considered.
    So imagine you’re looking to buy a shop, and let’s say the tangible assets are worth $400,000. In addition, let’s say the shop has a history of generating $100,000 in annual income after all expenses, and let’s say the owner has been drawing a salary of $80,000. So if you were to buy that shop, how much would you be willing to invest? Well, only you can answer that question, but I hope you take these 6 points into consideration:
    1. If you were to liquidate after you purchased, how much could you sell the assets for? I call this the “street value” of assets.
    2. How long has the company been in business, how long have the key employees been with the business, and what’s the probability that these key employees will stay on once you buy?
    3. What is the probability of the company continuing to earn the same $100,000 in annual profits, and for how long?
    4. In regard to the $80,000 salary the owner was taking, would you be willing to do what he or she does for the company for the same amount? Or will you be able to hire someone to do that job for the same or less?
    5. If you were to invest the same amount of money in any other business or investment vehicle, would you receive a better return?
    6. What are the terms of the purchase price? You may be better off to pay a higher price in return for a lower down payment, good financing rates and a non-compete.
    So, how do you establish the value of your business? Not by the icing (goodwill and number of names in your database), but by looking at it through the eyes of both a banker and a buyer.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You learn more about Elite by visiting www.EliteWorldwide.com.
  3. Elite Worldwide Inc.
    By Bob Cooper

    Looking to improve your service business? Here are 5 practices used by many of the most successful shops in America to dominate their market.

    #1. Generating New Customers
    The top shops realize that auto repair and service is a community-based business. With that said, I advise shops to invest at least 50% of their advertising budgets into non-traditional marketing campaigns. This includes involvement in charitable events, fundraisers, car care clinics and social media campaigns. They also realize that the Y and Z Generations are emerging markets, so they will typically invest at least 50% of their non-traditional marketing dollars into campaigns that directly target these demographics. Time and time again I’ve seen the implementation of this grass roots marketing strategy help shop owners achieve considerable gains in their market share, even when operating on a limited budget.

    #2. The Right Service Advisors and the Right Training
    We have found that the top shops embrace our philosophy that when it comes to recruiting, you need to hire for attitude, aptitude, talent and ethics, rather than for product knowledge. They understand that people do business with people, not with companies, so they consciously hire advisors that have remarkable people skills. They’ll also place a heavy emphasis on properly training these advisors upon hiring them, and will have them participate in service advisor sales courses at least once a year. In order to constantly improve their skills, a good percentage of the top service advisors use small digital voice recorders to record their own sales presentations. This way they can self-critique, discover their own weaknesses, and then adjust accordingly.

    #3. Bringing in More First-Time Callers
    The top advisors recognize that the first and most important step is to sell each first-time caller on their credibility as an advisor; not the shop or service. This is why they prefer to take the incoming calls, rather than having them screened by a receptionist or call center. Secondly, they understand that the overwhelming majority of first-time callers that ask for a price do so in order to start a conversation, not necessarily because they are price shoppers. By having this awareness, these advisors don’t fall prey to prejudging or prequalifying the callers, as most of their competitors do. Lastly, the top advisors in America know that one guaranteed way of driving up car counts, and sales, is by providing their customers with the option to bring their vehicle in now, rather than solely offering a future appointment. This is why shops should staff in a way that allows them to at least perform an inspection for a customer that did not have an appointment. Top advisors realize that if they are able to meet the caller face-to-face, they will have a far greater probability of turning them into a customer for life.

    #4. Closing More Service Sales
    There are a number of things we encourage shops to do in order to generate good, ethical sales. Yet where the top shops really shine is in their ability to build strong personal relationships with their customers. They do this by consciously engaging their customers when they first come into the shop, asking several fact-finding questions, and selling the benefits of the service rather than parts and labor. These advisors also realize that although people don’t like to be sold, they love to buy, so whenever possible they’ll offer their customers a choice in services. We have found that when advisors are able to offer options, not only does it allow the customer to feel more in control of their purchasing decision, but it leads to substantially higher ARO’s and higher CSI scores. By following these easy-to-implement procedures, many advisors are able to close over 75% of the services and repairs that have been recommended by their technicians, while still maintaining extraordinarily high CSI scores.

    #5. Car Delivery
    The top shops understand that their customers are going to judge them far more by what happens after the sale than by what happens during the sale, so here is what they will do... First of all, with rare exception, the car delivery process is handled entirely by the advisor. When the customer comes in to pick up their vehicle, the first thing the advisor will do is resell them on the service they chose. This in itself will immediately help quell any buyer’s remorse the customer may have. They will then review the paperwork with the customer, they’ll ask the customer if they have any questions, and they’ll offer the inspection or return of any replaced parts. They will also instruct the customer on how to better care for the service or repair that they just purchased. They will then process the repair order, they’ll use their sales skills to help the customer see the value in scheduling their next appointment while they are still at the service counter, and then they will ask the customer the two questions every customer loves to hear: “Do you have any questions for me?”, and “Is there anything else I can help you with?” These questions not only allow the customer to clear their mind of any lingering questions or concerns they have, but also send a strong message that the advisor genuinely cares about the customer as an individual.

    Before the customer leaves, the top advisors will say something along the lines of, “Tom, before you leave, there’s one other thing I’d like to say. I know there are a lot of well-run shops in the neighborhood, so I just wanted to say thanks so much for your trust in us.” When an advisor says this to a customer, three things will inevitably happen... First of all, it will send a message that the advisor is well aware that the customer has choices, and that in itself sends a strong message of appreciation.

    Secondly, and on a more personal note, the reason I have spent years encouraging business owners and sales staff to thank people for their trust rather than their business, is because decades ago I discovered that if I were to thank someone for their business, in reality all that I’d be doing is thanking them for the economic exchange. Yet what I find to be priceless isn’t the money a customer is passing on to us. What’s truly priceless, is their trust in us. So by thanking a customer for their trust, what we are really doing is reminding them that they made a decision based on their trust in us, not on price, or on convenience.

    And then lastly, and most importantly, a statement such as the one I just shared with you will resonate with the customer, and if it comes from an advisor’s heart, it will resonate beyond just a day or two, but for years to come.

    The way all great companies are built is by delivering extraordinary service to each and every customer. It’s a simple principle, and one that without question is followed by the top shops in America.

    Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.
  4. Elite Worldwide Inc.
    Elite's Bob Cooper and Doris Barnes share how your service advisors can use tire analogies to handle even the most difficult sales objections:
     
    For additional help increasing your shop's sales, customer satisfaction and customer retention, learn more about our industry acclaimed our Masters Service Advisor Training at https://www.eliteworldwide.com/automotive-service-advisor-training.html 
  5. Elite Worldwide Inc.
    By Bob Cooper

    You don’t have to be in the auto repair business long before a customer asks you if they can supply their own parts. Although there is no one technique that will work in every case, here’s one approach you may want to consider.

    First of all, you’ll need to bear in mind that a customer is making this request because they feel it’s a legitimate one. They are simply trying to save as much money as they can, which is perfectly normal. With rare exception, these customers are unaware that you need to make a profit on your parts to stay in business.

    The reasoning for not installing a customer-supplied part is really pretty simple: It’s not in their best interest, because if that part fails, the responsibility will be on them. They’ll not only be responsible for the part that failed, but for all the ensuing labor costs, their loss of time when their vehicle is down for the second repair, etc. So rather than telling them something that makes them feel cheap or uncomfortable, the next time a customer asks if they can supply their own parts, you may want to say something like this…

    “Well, Mr. Kost, I appreciate your interest in helping, because it’s very kind of you to offer. Unfortunately, here at Elite Auto we’re unable to install customer-supplied parts, and here’s why: The very moment we install any part on your vehicle we become responsible, not just for that part, but for a lot more. If that part were to fail while it’s under warranty, we’re responsible for removing it, paying a tech to determine why it failed so it doesn’t happen again, buying a replacement part and having it delivered to us, and then installing it. We’re also responsible for any towing that may be required, and for any other parts that would be damaged due to its failure. And when you think about it, Mr. Kost, this is the way it should be, and it’s why we have so many loyal customers that send their friends to us. It’s our job to solve problems, and then stand behind our solutions."

    "On the other hand, if we were to install a part that wasn’t one of ours, then we wouldn’t be responsible for it, or anything that may occur if it were to fail. I have to tell you, I’d much rather tell a customer that we’re unable to install a part they’d like to provide, than tell them we just installed their part, it failed, and now it’s their problem, not ours. Now here’s the good news for you: If we do the repair, I can have you back on the road by ___o’clock, and you’ll have the peace of mind in knowing that you have safe, dependable transportation, and the entire repair, including all the parts and labor, will be backed up with our full ____ year _____mile written warranty. All that I need is your go ahead, and I can get Mike started on it right away.”

    This technique won’t work with every customer, because there is no one technique that will. The good news is, it will work with the kind of people that you would like to have as your customers.

    Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.
  6. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach James Stephenson shares a tip on finding & hiring service advisors that has worked wonders for his award winning auto repair business.
     
    For additional help building a more successful auto repair business, learn more about Elite’s new affordable and convenient online peer groups for shop owners: Top Shop 360
  7. Elite Worldwide Inc.
    By Bob Cooper

    There is no easy answer to this question, but here at Elite we can give you some points that you need to consider. We realize that you are paying rent, insurance, etc. on a 24 hours a day, 365 days a year basis, so many will argue that you should be open on Saturdays since you’re already incurring many of the fixed expenses. Some will also argue that if you are closed on Saturdays, then stranded customers, or those who can’t make it in during the week, will wind up at your competitors’ shops. Obviously there is truth to that argument as well. But before you make a decision to open up your shop on Saturdays, or to continue to remain open on Saturdays, here are five considerations that should not be overlooked…

    #1. Run the numbers and pay close attention to the details. By being open on Saturdays you’ll more than likely incur the added cost of overtime, which will escalate your operating expense, as well as the expenses that are based on payroll, such as insurance. The bottom line is that you’ll need to come to a conclusion as to exactly how much you’ll need to generate in Saturday sales (closed RO’s) to make it a worthwhile endeavor for your business. Also, in running these numbers to determine whether being open on Saturdays will be profitable for your shop, you need to make sure that when you forecast your necessary Saturday sales you’re not counting work that you would have otherwise performed during the week.

    #2. The consideration that is most commonly overlooked (but that can cost you a fortune) is the cost of employee morale. If you plan on having your techs and service advisors put in the extra day, there will be a hefty price that you will ultimately have to pay.  You may very well experience lower productivity Monday through Friday, a decrease in the quality of customer service, or an increase in employee turnover, just to name a few. We realize that some of you may be telling yourselves that you have some young, motivated guys and gals who would love to be open on Saturdays so they can earn a higher income, but you’ll more than likely find that the excitement wanes over a short period of time.  Opening your doors on Saturdays may be great for short-term performance, but odds are, it will not be the best choice when it comes to long-term business building.

    #3. Whatever you do, don’t ask your customers if they would like to see you open on Saturdays!  Far too many shop owners place value on these opinions when the overwhelming majority of them will naturally say “yes” since it’s to their benefit, and there is absolutely no downside for them.

    #4. Take Saturdays for a “test drive”. If you feel being open on Saturdays is something you just can’t pass up, then before you tell the world, you should have a skeleton staff work on Saturdays for 90 days and then measure the results.  During this test drive, make certain that your entire staff understands that the Monday through Friday goals will still need to be reached, and that Saturday is  not to be used as an optional “bring it in for service” day for your existing customers who contact your shop during the week. Otherwise, you’re robbing Peter to pay Paul. To accurately measure the profitability of being open on Saturdays, they should be reserved for incoming Saturday calls and walk-ins.

    #5. Lastly, consider this: If your intent is to drop as much money onto the bottom line as quickly as possible, then opening on Saturdays may very well be a good decision for you. And if that is the case, you may want to consider being open on Sundays and holidays, too, because the same financial logic prevails. On the other hand, if your interest is in building a profitable, successful business that will grow in value over the long-term, and in creating a great environment for your employees to call their home away from home, then closing on Saturdays, and losing some potential sales along the way, will more than likely be the right choice for you.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
     
  8. Elite Worldwide Inc.
    Over the years our industry has seen many changes. For example, beyond the changes in styling and efficiencies, today’s vehicles are better built, they last longer, and they require less frequent servicing than they have in the past. But there is one emerging trend that will have a far greater impact on our industry than all the other changes combined. Consider this…
    Electric cars are not new. As a matter of fact, they date back to the mid-nineteenth century. Yet if you step back and look at what has happened with them over the past 10 years or so, if you consider the societal trend toward clean energy, and if you take a really close look at Tesla Motors, you’ll see that the Tesla is not just an automobile; it’s a glimpse into your future.
    Tesla Motors was started in 2003, and in 2004 Elon Musk was appointed as the Chairman of the Board. Since then not only have prominent individuals and world-class business leaders, such as the co-founders of Google, invested in Tesla Motors, but the global powerhouses of Mercedes Benz and Toyota have invested as well. I find it intriguing that so many say Teslas are too expensive, and that because of limited driving distance due to battery storage capacity, the vehicles will never become mainstream. However, here’s why that presumption is the furthest from the truth…
    With rare exception, every new technology will target the most affluent markets first, because they can afford the new technology, and can provide a fertile testing ground. This is why products like airplanes, computers, mobile phones and advanced medical diagnostic equipment are typically introduced to the wealthy before any other market. Once it’s determined that the product is a good one, it is then scaled to the masses.
    By now you are probably wondering what this means to you. Simply put; our industry has now seen the beginning of the end of internal combustion engines. They will inevitably go the way of the horse-drawn carriages and steam engines. As we move forward battery life will inevitably continue to be extended, and society will continue to show a far greater interest in vehicles that are less of a pollutant, are quieter, and are more dependable due to fewer moving parts.
    There is no question in my mind that if you were to close your eyes and open them ten to twenty years later, you would see far more electric vehicles than you would ever imagine. So the questions you need to be asking yourself are; What are your plans to participate in this emerging market, and what will your business model look like when the industry is all but devoid of internal combustion engines?
    In closing, I am not suggesting that you are in any kind of eminent danger if you don’t move quickly, because that’s not the case. What I am suggesting is this: The future is yours if you have the vision, and if you take the appropriate steps to keep yourself at the leading edge of the service industry. And if you want to see what the future looks like, you don’t have to step into a time machine or find a crystal ball.  All you need to do is find a Tesla showroom, and spend some time there. If you do, you’ll see why beyond being an amazing automobile, Tesla really is an omen… for our entire industry. 
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  9. Elite Worldwide Inc.
    By Bob Cooper
    Over the years our industry has seen many changes. For example, beyond the changes in styling and efficiencies, today’s vehicles are better built, they last longer, and they require less frequent servicing than they have in the past. But there is one emerging trend that will have a far greater impact on our industry than all the other changes combined. Consider this… 
    Electric cars are not new. As a matter of fact, they date back to the mid-nineteenth century. Yet if you step back and look at what has happened with them over the past 10 years or so, if you consider the societal trend toward clean energy, and if you take a really close look at Tesla Motors, you’ll see that the Tesla is not just an automobile; it’s a glimpse into your future. 
    Tesla Motors was started in 2003, and in 2004 Elon Musk was appointed as the Chairman of the Board. Since then not only have prominent individuals and world-class business leaders, such as the co-founders of Google, invested in Tesla Motors, but the global powerhouses of Mercedes Benz and Toyota have invested as well. I find it intriguing that so many say Teslas are too expensive, and that because of limited driving distance due to battery storage capacity, the vehicles will never become mainstream. However, here’s why that presumption is the furthest from the truth… 
    With rare exception, every new technology will target the most affluent markets first, because they can afford the new technology, and can provide a fertile testing ground. This is why products like airplanes, computers, mobile phones and advanced medical diagnostic equipment are typically introduced to the wealthy before any other market. Once it’s determined that the product is a good one, it is then scaled to the masses. Tesla is following that same developmental path. 
    By now you are probably wondering what this means to you. Simply put; our industry has now seen the beginning of the end of internal combustion engines. They will inevitably go the way of the horse-drawn carriages and steam engines. As we move forward battery life will inevitably continue to be extended, and society will continue to show a far greater interest in vehicles that are less of a pollutant, are quieter, and are more dependable due to fewer moving parts.
    There is no question in my mind that if you were to close your eyes and open them ten to twenty years later, you would see far more electric vehicles than you would ever imagine. So the questions you need to be asking yourself are; What are your plans to participate in this emerging market, and what will your business model look like when the industry is all but devoid of internal combustion engines? 
    In closing, I am not suggesting that you are in any kind of eminent danger if you don’t move quickly, because that’s not the case. What I am suggesting is this: The future is yours if you have the vision, and if you take the appropriate steps to keep yourself at the leading edge of the service industry. And if you want to see what the future looks like, you don’t have to step into a time machine or find a crystal ball.  All you need to do is find a Tesla showroom, and spend some time there. If you do, you’ll see why beyond being an amazing automobile, Tesla really is an omen… for our entire industry.  
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You learn more about Elite by visiting www.EliteWorldwide.com
  10. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach Rudi Rudloff shares why giving back during the holiday season is a win for people in need, for your community and for your auto repair business.
     
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Ron through Elite Top Shop 360: Top Shop 360
  11. Elite Worldwide Inc.
    There is an expression that has been around our industry for decades that says if you run a good, ethical business, the one thing you should never do is “steal” employees. If you agree with that philosophy, this is one article you may want to read.

    First of all, in order for any of us to steal employees, by definition those employees would need to belong to someone else. Slavery was abolished in America in 1865. None of us “own” other people, and I am sure if you asked any of the employees who are presently in our industry, they too would agree they are not the property of anyone. So putting first things first, we need to accept that the statement itself is flawed when someone says we are trying to steal their employees.

    Now let’s look at the argument that it’s not right to solicit employees from another business. The majority of successful companies do this! The world is filled with head hunters, and without question; they’re not looking for people who are unemployed. They are looking for the superstars who are presently employed. So if most people accept that recruiting employees from other businesses is an acceptable practice, you have to wonder why shop owners look at the practice with such disdain. It’s because they are so afraid that someone will recruit their employees that they start living by the code that it’s wrong to solicit employees. It’s their own misdirected way of trying to shelter their employees from hearing about better opportunities.

    If you were a superstar technician, and if you were solicited by another shop owner who could provide you with a better opportunity, I sense you would consider the offer a compliment, and not a violation of ethics. I would also sense your family would be happy to hear of the opportunity as well. So when you stand back and look at the bigger picture, as a tech you would be happy that another shop owner is offering you the opportunity, your family would be pleased to hear about it, and the shop owner who reached out to you would be excited to speak with you. The only one who would deem it inappropriate would be your existing employer, who just happens to be the one who runs the risk of losing the most. If you step into the shoes of the employer living in a world of ethics and who cares about each employee as a person, wouldn’t you want that technician to take a job that provided a better opportunity for him and his family?

    However, I feel there are a few situations where it would be inappropriate to solicit someone from another shop. If the employee works at a shop that is owned by a good friend, then of course you need to respect the friendship, and assume that your friend is taking proper care of their employees. The other exception is when you know in your heart you would be unable to provide the employee with a better opportunity than what they presently have.

    On a personal note, I have never been afraid of someone “stealing” the people who work with me. I have learned over the years that the first thing that leaves your business is the employee’s heart, and once their heart is lost, then their mind will begin to wander, and other opportunities will become attractive. When they find the right opportunity, the toolbox will inevitably follow behind. This is why I always work very hard to keep their hearts, and why I consider it nothing more than a compliment when other business owners attempt to recruit my superstars. It’s much like a marriage, in that there isn’t a person on the planet who can take your spouse from you if you do the things you should be doing. On the other hand, if you don’t, then don’t blame the person who you feel took your spouse away, because in reality, you gave them away. So rather than being outraged when someone tries to steal your employees, I ask that you understand the ethics of recruiting, and that you do what you need to do to properly care for the hearts and minds of your employees.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  13. Elite Worldwide Inc.
    Retired superstar shop owner Kevin Vaught shares the rule that every shop owner in America needs to follow when it comes to disclosing needed repairs and services to their customers.
     
    If you're interested in teaming up with a top shop owner like Kevin Vaught, who has been in your shoes and overcome the challenges your shop is facing, learn more about the Elite Coaching Program. 
  14. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach Darrin Barney shares an easy-to-apply tip that will help shop owners ensure that they're following through with the behaviors that are critical to their success:
    To learn more about how you can team up with a superstar shop owner like Darrin to reach your shop's goals, visit the Elite Coaching Program web page. 
  17. Elite Worldwide Inc.
    By Bob Cooper

    Over the last 22 years I've been amazed to discover just how many shop owners are lost when it comes to knowing and understanding “the numbers". In order to build a successful auto repair shop, you are going to need to know two sets of numbers: Your “financial" benchmarks, and your “operational" benchmarks. Without a clear understanding of these benchmarks, it becomes quite challenging for shop owners to pinpoint where they are falling short of their goals, and where improvements need to be made. Far too many times I've seen shop owners finally start monitoring these numbers closely, and quickly realize that for years they haven't been charging enough for parts, have been overpaying their employees, have been operating inefficiently, etc. There's no doubt about it: a clear understanding of your shop's financial and operational benchmarks is critical to effective auto shop management.

    Since your part cost is one of your largest expenses, it's something you need to monitor continuously. At Elite, our top clients spend no more than 52% of the dollars they bring in through their part sales, on part cost. This means that if they bring in $40,000 in part sales by the end of the month, the cost of those parts should not exceed $20,800 ($40,000 in part sales X 52% = $20,800 part cost.) If you find you are spending more than 52% of your part sales on part cost, then you need to take a good hard look at how you price your parts, any parts that are being replaced at no charge, your warranty failures, purchasing habits, and the possibility of theft.

    When it comes to your direct labor (the cost of your techs), the top shops we work with spend no more than 35% of the dollars they bring in through labor sales, on technician pay. This means that if they bring in $40,000 in labor sales by the end of the month, their technician payroll does not exceed $14,000 ($40,000 in labor sales X 35% = $14,000 labor cost).

    You also need to pay close attention to the cost of your service advisors, and here at Elite, we like to see that number at no more than 8% of your total part and labor sales. For example, if your shop generates $80,000 in monthly auto repair sales, your advisors should not be costing you more than $6,400.00 ($80,000 total sales X 8% target = $6,400 advisor cost).

    You'll need to watch your “operational" benchmarks very closely as well. One key indicator is your labor hours per repair order, and our top clients consistently generate at least 2.5 hours of labor sales with their average repair order. If you are not seeing 2.5 hours per repair order at your shop, you need to review your vehicle inspection process, what's being recommended to your customers, and the declined services.

    As a shop owner you also need to pay close attention to your technicians' “efficiency" rate. This is a powerful key indicator that will show you just how good your techs are at getting the work done in a fast and effective way. It's easy to discover your efficiency rate by simply dividing the hours you billed for the repair, by the amount of time it took your tech to complete the job. For example, if you bill a customer 2 hours, and your tech gets the job done in 1½ hours, they would be 133% efficient (120 minutes billed/90 minutes to complete the job = 1.33, which is 133% efficient). The top shops are typically operating at an overall efficiency rate of 125+%. There are a number of things that can bring down the efficiency of the technicians in your shop, including a lack of experience, the lack of proper technical training, and one of the biggest culprits, the wrong compensation programs.

    And then lastly, after you pay all your expenses, there's the money that is left over for you. In business we call that profit, and the top shops will typically earn a profit of 15 - 20% of sales. So if your shop is generating $80,000 in monthly sales, in most cases, you should be able to earn $12,000 - $16,000 per month in taxable income. The good news is, if you know your numbers, and if you never put money ahead of people, you should be able to generate these profits in a professional and ethical way.

    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while having a positive impact on their employees, customers and communities. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.


  18. Elite Worldwide Inc.
    Superstar sales trainer Jen Monclus reveals 5 steps that your service advisors need to follow to overcome even the most challenging sales objections shared by your auto repair customers:
     
     
    For additional help generating happier customers and higher sales, learn more about Elite's industry acclaimed Masters Service Advisor Training Course.
  19. Elite Worldwide Inc.
    By Bob Cooper
    Over the years I have had the pleasure of watching hundreds of shop owners go to the top, and truly become industry leaders. I have also seen thousands of shop owners that struggle from day to day until they finally either try to find someone that is willing to take over their business at any price, or they simply close their doors and walk away. There are many reasons why shops fail, including lack of business skills and the unwillingness to reach out for help before it’s too late, but there is one silent killer that I have seen take even the best shops down. It preys on every small business owner, and if not caught early enough, inevitably puts them out of business. The good news is; if you are aware of it, you can not only side-step it, but you can turn a good business into a really great business at the same time.

    Some shop owners started their careers as technicians, and others are simply entrepreneurs, but interestingly enough, all shop owners have a number of things in common when they first open their shops. They are excited about what they will be building, and they are filled with passion and energy. They secure a location and equipment, they hire a tech or two, and they get the word out in their communities that they are now open for business. These are the guys and gals that work six to seven days a week, and they happily put in the long hours, because they are making their dreams come true and building a business they can be proud of.

    But then Father Time steps in, and these entrepreneurial shop owners find that they are no longer building their businesses. Instead, they are dealing with customers, ordering parts, working on cars and putting out fires. Unbeknownst to them, they have transitioned from being an entrepreneur to being a manager, and find themselves managing repair orders, managing checkbooks and managing people. Not only are these tasks uninspiring, but they are the furthest things from the role of an entrepreneur. This is when the excitement and challenge of building a business transforms into a job, and burnout sets in. If this sounds like a place where you reside, or if you feel it’s a place you are headed toward, then I have some good news for you: Not only is there hope, but the bright future you envisioned when you opened your shop can still be yours.

    The first thing you will need to do is take a good, hard look at where you are with your business, and then set some long-term business goals that will get you excited again. I have counseled hundreds, if not thousands, of shop owners on this process, and after seeing the results first-hand I can tell you with confidence that taking this step will not only have a dramatic impact on your business, but it will have a life-changing impact on you as a person. When you set those long-term goals that are 3 to 10 years out, you will find that you are invigorated again, and you will reignite that entrepreneur inside of you.

    In closing, all successful businesses are aware of this silent killer, so they never stop growing. I can promise you that ensuring you always have a vision and clearly defined goals will keep that spark of passion alive in you, it will give you a sense of purpose, it will inspire your employees, and it will keep you well ahead of your competitors.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.

  20. Elite Worldwide Inc.
    By Bob Cooper
    From the time your advisors first pick up the phone, all the way through your service recommendations, there is one thing that is happening over and over again: The sales process. Putting first things first, every new customer needs to be sold on your shop. They then need to be sold that they made the right decision in calling your shop, have confidence that whatever problems they may have will be solved, believe that your advisor is someone that has their best interest at heart, be sold on your vehicle inspection process, and be convinced that their vehicle is worth the investment. If your advisors do their jobs well, hopefully that caller will make an appointment. Yet as we all know, when that customer finally walks into your shop, you and your advisors still have a long way to go. Your customers will need to feel comfortable with what they see and hear, and if they do, they’ll then be open to your advisors’ service recommendations. If your advisors do a really good job in presenting the service recommendations, and if they build value in the services, then there is a good chance that the customer will authorize the recommended services. Make a mistake anywhere throughout this entire process, and you’ll lose the sale, guaranteed. So consider this.
    Wouldn’t it be great if you had a superstar salesperson that helped your first-time customers feel comfortable with you, your facility, and your employees before they even picked up the phone?  Well, if this sounds too good to be true, consider the fact that when one of your customers refers a friend to you, you can rest assured that this friend has been told quite a bit about you and your company. I am sure you will agree that those referred customers are the best customers, and the reason is simple: They have been sold on you.
     When I was still operating auto repair shops I was always intrigued by how my competitors never realized how important those songbirds were. It seems as though they didn’t consider how most customers will trust us with their vehicles and their credit cards, but when they reach the point of trusting us with their friends, they are not only in a league of their own, but they are doing our job for us by selling their fiends on us. This is why my shops had a policy (that we use to this day at Elite), where we asked every first-time customer, “By the way, may I ask who referred you to us?” If they were referred, within 24 hours of vehicle delivery we would be on the phone with the songbird that referred them. On those calls we would take the time to tell them about the customer, and how we solved their problem. We would then thank them for their trust in us, and mention that their trust is something that we would never take for granted.
     I used this simple policy to grow some really great shops, and although I knew that making the calls would typically cause our customers to continue referring their friends to us, my motive came from a different origin. I made the calls because I felt in my heart that if someone is kind enough to entrust us with their friends, and then take the time to sell those people on the fact that our shop is the right choice, then at a minimum, I owed them a call…. to say thank you.  I also discovered that with rare exception, they weren’t looking for a referral commission or a complimentary oil service. They were looking for the peace of mind that their priceless friends would be in good hands. Make these calls and you will quickly see why I call them the “million dollar calls.” Not only will they drive up your sales, but they will strengthen your relationships with your customers, and serve as a valuable reminder of how lucky you are to be running such a great shop.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  21. Elite Worldwide Inc.
    One of the most common questions our Elite coaches are asked is, “How do I find the superstar technicians and service advisors?” Interestingly, what most shop owners will do is wait until they need a tech or advisor before they start their search. Unfortunately, when they use this technique they inevitably end up hiring the best of whoever happens to be available at the time, rather than the best of the best. So if you are looking to hire the stars, my first recommendation is that you always need to be recruiting, and the best way of doing so is by ensuring that the superstar techs and advisors in your community are aware of your business, and that they understand that your shop is a really great place to work. 
    As I am sure you will agree, with rare exception the superstars are currently employed, and they are more than likely pleased with their jobs. So what you need to do in order to ultimately hire any of these stars is put first things first. You need to connect with them, because people go to work for people, not for businesses. So the million dollar question is: How do you connect with the stars? Well, it’s actually a lot easier than you might think. You need to do what your competitors would never dream of doing, and reach the stars through their family members, their friends and their industry associates. Here is how you can achieve this objective through the use of print media.
    Run display ads in your community newspapers with a theme communicating that your shop is the right place for people to have their cars serviced, because you employ truly remarkable people. Then in each one of these ads you should feature a different employee. Now before you jump to a conclusion that this won’t work for you, I ask that you keep an open mind.
    If your ad carries a nice close up or portrait shot of one of your employees, along with their name, their position and a few kind words about who they are, then I will make you a number of promises. First of all, far more people will look at your ad, because people are always attracted to images of people. Secondly, the curiosity of your readers will inevitably kick in, and they will start to wonder if the person in the photo is someone they know, especially if your shop is in a smaller community. Now that you have your readers’ attention, as well as their curiosity, there’s a good probability that they will start to feel more comfortable with your brand, because as I mentioned earlier, people do business with people, not with businesses. Additionally, imagine how powerful the influence will be over the readers who actually recognize your employee as a family member, friend or acquaintance.   
    Now here’s where the benefits of this approach become even more obvious. Not only will putting your employees in print be a really nice way to let them know just how proud of them you are, but just think about the message you are sending and the buzz that’s going to be created in your community. You are communicating that you have truly talented people working for you, and that you are the type of shop that will run an ad just to give your employees the acknowledgement they deserve.  The uniqueness of this message will have the tool truck drivers, the part suppliers, and the loved ones of the superstar advisors and techs talking about your ad, and you guessed it; they’re going to be talking about your shop as well.
    So if you want to hire the superstars, I am going to hope you never forget a couple of cardinal rules. Number one, you always need to be recruiting. Otherwise, you’re doomed to hire the best of whoever happens to be available at the time. Secondly, if you want to reach the stars, then I am going to hope you never forget that the easiest way to do it is through their family, friends and acquaintances. If you agree with me, then I have every reason to believe you will also agree that running print ads showcasing your employees will not only help you build your brand, but it will show the superstar techs and advisors in your community that you truly care about the people who work with you, and will get them thinking about your shop.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  22. Elite Worldwide Inc.
    Elite Business Development Coach and superstar shop owner Darrin Barney shares an easy-to-apply tip that will help you show your employees how much you care about them, and build morale in your shop:
    Darrin Barney is an industry leading shop owner, and also one of the industry's top marketing experts who heads up Elite's Rapid Results Car Counts Package. Visit our Rapid Results page to learn how you can work one-on-one to generate immediate traffic, improve your phone conversions, effectively monitor and measure your results, and generate more repeat and referral business: https://www.eliteworldwide.com/most-effective-way-to-increase-car-counts.html
  23. Elite Worldwide Inc.
    By Bob Cooper

    Not long ago it was easy to beat your competitors. All that you needed was more equipment, a healthy advertising budget and the ability to fix cars right the first time. Well, those days are long gone. Today, cars are being built better and require service less frequently, customers have more choices than ever before, and they are able to do a tremendous amount of research online before they even pick up the phone. Additionally, this industry is experiencing an extraordinary shortage of qualified technicians, and profit margins are being squeezed every day. To top it all off, the dealerships have their eye on one thing and one thing alone: Your customers. So the question is, during these challenging times, how can you stay ahead of your competitors?

    First and foremost, you will need to have clearly defined goals in place, and you’ll need to create a plan for reaching those goals. The right goals and an action plan will enable you to make far better business decisions, and improve productivity and profits.

    Secondly, your success will be predicated on the caliber of people that work with you. We can never forget that whenever someone buys a product, they will always remember the product, but when they buy a service, they will always remember the people that provided the service. How will the top shop owners find and hire the superstars in the coming years? In addition to having an apprentice program in place, they will create a recruiting plan that contains a well-designed compensation program, and they will market to the superstars in the same way they market to their retail customers.

    The top operators will also create marketing plans that target their ideal customers, and they will use the right media. The successful shop owners will be brand builders rather than price promoters, and they will invest at least 4-6% of their total sales into their marketing programs. They will recognize that the Y Gens and Millennials hold the key to their future, so will be investing a part of their marketing budget into campaigns specifically directed towards them.

    The successful shop owners in the coming years will constantly analyze every component of their customer process with their crew, and they’ll create policies and procedures that better ensure extraordinary service at every customer touch-point. They will also embrace the philosophy that keeping their superstars happy, motivated, well-trained and productive will depend on their employee management skills. They’ll realize that their brand is their people, so to further develop those skills they will invest in books and courses that are directed towards employee management.

    And lastly, the top shop owners in the coming years will not only know their numbers, but will know what needs to be done in order to reach each and every one of their performance goals.

    In conclusion, if you want to build a world-class shop you will need to have clearly defined goals with a written plan, and will need to know your numbers. You will also need to have a team of superstars, and a well-designed marketing plan that brings in your ideal customers. If you do these things, if you never forget the importance of the people that work with you, and if you live by the principle that you will never put money ahead of people, then you will not only stay well ahead of your competitors, but you will have a far more profitable, successful business in the coming years.

    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com

  24. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development coach Rudi Rudloff explains the critical difference between “training” and “coaching” your auto repair shop’s employees.
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Rudi through Elite Top Shop 360: Top Shop 360
  25. Elite Worldwide Inc.
    By Bob Cooper of Elite
    If there is one thing our industry has done since the very beginning, it’s put technicians into the role of service advisors. The rationale is that they have a good understanding of automobiles, which will enable them to be competent advisors. Unfortunately, that’s the furthest from the truth. Although an in-depth understanding of automobiles can be an asset, there are a number of other things you should consider before offering a service advisor position to one of your techs.
    First and foremost, you need to consider why they want the position, or why you are offering it to them. If they suggested they would like to become an advisor because it has become difficult to work on cars at their age, then they may very well be the wrong person, because they are looking to become an advisor out of necessity rather than interest. The same is true if you are looking to move a tech into an advisor position when that tech has shown little interest in becoming an advisor in the past. Two of the most common mistakes we see at Elite are shop owners making this hiring decision out of necessity rather than interest, or out of desperation rather than inspiration. In either case, there is a high probability of failure.
    Another major mistake we see made by shop owners is they put far too much value on the technician’s technical skills, and far too little value on the tech’s natural people talents, and their passion for the position. Unfortunately, these owners don’t understand just how important the people skills component is to an advisor’s success. So here is what I am going to encourage you to consider before you offer one of your technicians a service advisor position.
    First of all, when it comes to selling auto repairs and services, bear in mind that natural talent trumps technical skills every time. Talent can’t be taught, but skills can, so if your tech doesn’t naturally smile, doesn’t have a positive attitude, or is not quick-witted and articulate, then they may do a fair job for you, but they will never be the advisor that keeps you ahead of your competitors. You will find there are a number of companies that offer online behavioral assessment testing to evaluate the sales potential of candidates, and I would strongly encourage you to take advantage of this type of testing. You will more than likely be surprised with what you discover.
    Secondly, you will need to evaluate how well he or she will be accepted in the advisor role by your other employees. If the candidate has a good relationship with your other employees, and if you feel your employees will be willing to take directions and orders from the candidate, then they may very well be a good fit for an advisor position.
    The third thing you will need to do is avoid overselling the position to the candidate. In addition to knowing the benefits of the position, they’ll need to know all of the negatives as well. In essence, you want to make sure that there are no surprises. We also encourage all of our clients to get the significant other of the candidate involved in the decision making process. As we say at Elite, “When you hire Larry, you get Mary”, so you will need to ensure that their spouse is also on board with the new position.
    Lastly, I hope you do two other important things if you decide to have one of your technicians take on the role of service advisor. First of all, take them for a test drive by having them help you on the counter, and pay close attention to their people skills, how well they are able to manage their emotions, and how they deal with difficult situations. Secondly, if and when you put that tech on the service counter, remember, training trumps productivity. What that tech will need more than anything is professional sales training, encouragement from you, and the opportunity to become… a superstar.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
     


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