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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  1. 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. 
  2. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach Greg Skolnik shares a tip on how to provide your employees with a detailed outline of all their benefits.
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Greg through Elite Top Shop 360:One on One Coaching
  3. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach Ron Haugen shares how your service advisors should handle the age old sales objection "I can buy the part online for less"
    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
  4. Elite Worldwide Inc.
    We all know that vehicles are being built better, they are lasting longer, and the competition for auto repair customers is heating up. Accordingly, shop owners are constantly looking for ways to add value to their services in order to separate themselves from their competitors. Some owners attempt to accomplish this objective by providing longer warranties, which is a nice feature to offer. Unfortunately, it doesn’t take long for the competition to catch on, and before you know it, your competitors are offering warranties that are just as long as yours. Some owners will take a different approach by offering extended hours, some will offer shuttle services, some will wash their customers’ vehicles, and some will work really hard to create ways of improving the customer experience. These are all wonderful benefits, too, but it won’t be long before your competitors catch on, and offer the same benefits that you offer. 
    We then have yet another group of shop owners who take a completely different approach, and attempt to attract customers by price. Unfortunately, history has taught us that this approach brings short-lived success, because there will always be a competitor that is willing to provide the same service for less. 
    In conclusion, if you attempt to add value to your services, your competitors will inevitably match your offerings, and if you attempt to compete on price, it will inevitably put you out of business. Now before you jump to the conclusion that there is no hope, I would ask that you consider this…  
    First of all, whenever someone takes their vehicle into an auto repair shop, you can rest assured that they will be anxious, especially if they are a first-time customer. Interestingly enough, one of their greatest anxieties will be whether or not the technician who will be working on their vehicle is qualified to solve their problem in the most cost-effective and ethical way. So do this…
    Ensure that all of your service advisors know that when they are writing up a customer, they have to take a minute or so to sell that customer on the tech who will be performing the service. For example, they may say something like “As a matter of fact, Doris, the technician who will be inspecting your vehicle is Jim Piraino. He’s a factory trained ASE Master Certified technician, he’s been with us for 8 years, and I have to tell you, not only is he very gifted at what he does, but he really does care about people.” Once they hear about the technician, and the tech’s qualifications, a number of things will happen. First of all, their anxious minds will be put at ease, and the probability of them authorizing your subsequent recommendations will dramatically improve. This is a powerful technique that we teach our students in our Masters course, and the results have been remarkable. 
    In case you are still not quite sold, imagine if you went to a surgery center, and rather than just being told that the procedure would be performed by a surgeon, you heard something like this: “As a matter of fact, the surgeon who will be performing the operation is Dr. Stoll. He really is amazing! He’s a Harvard graduate, he’s board certified, and he has spoken at a number of conferences over the years.”  I suspect you would feel a lot more comfortable after hearing a message like that, wouldn’t you?   
    By the way, if you do what I am asking you to do, then a number of things will occur. Not only will your sales and profits go up, but you will be rising well above your competition by offering your customers something that they’ll never be able to get from your competitors, which is the opportunity to have their vehicles serviced and repaired by the superstars… who work with 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 learn more about Elite by visiting www.EliteWorldwide.com
  5. Elite Worldwide Inc.
    By Bob Cooper of Elite

    Over the years I have seen hundreds, if not thousands of shop owners do irreparable damage to their businesses. This damage occurs when they are mesmerized by the management trainers or consultants who tell them that they can solve all of their problems by raising their prices. At first they are pleasantly surprised to hear that their services are worth more than they are presently charging, because it plays to their ego. They are also told that they have nothing to worry about, because none of their customers will complain. They then jack up their prices and are pleasantly surprised when they discover, as they were told, that not one of their customers objected to the new pricing.

    Over the next few months profits typically swell, and the shop owners smile all the way to the bank. Then, unfortunately, in far more cases than you would imagine, 9 to 12 months later these shop owners find that all of their good customers are gone, and the reason is pretty simple: Rather than complain, their good customers just take their business elsewhere. So before you listen to the pied pipers who tell you that you can solve all of your problems by jacking up your prices, I wanted to share a different strategy with you. It’s one that I used to grow some really great shops, so I know it will work wonders for you, too.

    First of all, any price increase should be small and incremental. You will find that small increases will not only be considered acceptable by most of your good customers, but they will allow you to monitor your customer’s acceptance. When you move forward with this approach, you need to monitor your lost sales at the point of sale to ensure there is no appreciable increase.

    Secondly, you will need to perform your customer follow-up calls to keep your finger on the pulse of your customers, and to enable you to detect any early signs of price resistance.

    Lastly, you need to monitor your percentages of repeat customers and referrals. I have discovered over the years that there is only one true judge of pricing, and it’s our customers, so if a customer continues to return to your shop, and if they continue to recommend their family and friends to you, then it’s safe to say that they are comfortable with your pricing.

    How often you revisit your pricing is subjective, too, but I would encourage you to do it at least two times a year. Another benefit of small incremental price increases is that they will allow your advisors to feel comfortable with the new pricing. This is critical to your success as a business owner, because as we all know, if your advisors feel uncomfortable with your pricing, it will be hard for them to put their hearts into every sale as they should.

    Lastly, in the coming years you will need to make some decisions regarding the gross profit margins you make in both your part sales and your labor sales. With today’s technology, and your customers’ access to information, customers are going to be quick to compare prices. Given the choice of the two, I would much rather defend a higher labor rate than a high part price, and here’s why: Regardless of how skilled your advisors are, when they are trying to defend why they charged a higher price for that alternator than the price the customer found online, it’s going to be a tough sale, because in the customer’s mind, a part is a part. Yet if your labor rate is the highest in town, that’s something your advisors should be able to easily defend because your technicians aren’t just technicians; your technicians are superstars.

    In closing, I would be the last one to say you should or shouldn’t raise your prices, but what I can say is this: If you just listen to the pied pipers, they will scare off your customers and put you out of business. On the other hand, if you implement small and incremental increases, and if you monitor and measure customer acceptance, then you will be on the road to building a more profitable, successful business.


    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.
    By Bob Cooper
    1.  When first-time customers approach your facility they’ll typically be anxious, so anything you can do to reduce their anxiety will help them be more receptive to your recommendations. On your entry doors, or in a prominent location they’ll easily see, you should have clear indications of your professional affiliations, and any financing options you offer. 
    2. Inside the customer waiting area, rather than having cluttered walls and giving your customers sensory overload, you will be far better served by having your Mission Statement prominently displayed. This will give your customers good insight regarding the type of people they will be working with. For decades we here at Elite have argued that people do business with people, not with businesses, so anything you can do to humanize your company will help put your customers at ease.
    In addition to posting your Mission Statement, another great way of humanizing your business is by creating a 10x12 plaque for each of your employees, and putting a photo of the employee in the upper left corner. To the right of the photo, you can list their credentials, certifications, awards, etc. Across the bottom, you can include a brief bio of the employee that addresses their personal life (“Jim is a native of San Diego, has a wonderful wife, three children, and two Golden Retrievers. On the weekends Jim loves to go biking, and camping with his family”). You’ll find that not only will these plaques help your employees feel appreciated, but your service advisors can use them as sales tools when they are telling a customer who will be servicing their vehicle.
    3. At Elite we have always preferred service kiosks (stations) rather than counters. Not only do counters and desks serve as barriers between your advisors and their customers, but your advisors need to come from behind the counter to greet the customer. Kiosks also allow your advisors to stand next to their customers when looking at the computer screen. Again, putting your customers further at ease.
    4. The clocks, newspapers and current event magazines need to go. The clocks will have your customers timing you and your techs, and the newspapers and current event magazines are filled with both negative news and the ads of your competitors. Instead, you should have magazines that address sports, hobbies, home & gardens and entertainment. You should also have point of sale literature that explains the value of vehicle maintenance, other services you offer, etc. Lastly, you need to have magazines and books for your small “future” customers, as well as self-contained toys that can keep those kids occupied when mom and dad are busy with you. Wi-Fi? Cellular phones are quickly replacing the need for Wi-Fi, but if your core customer base has a strong need for it, you should consider making it available.
    5. You need to have fresh coffee available all day long, along with bottles of cold water and soda.  When I still had shops we would offer our customers a cold drink, and it would always be on us. It’s your call, but I feel it’s a small price to pay for the relationship that you can and will develop. 
    6. In addition to having signs on the outside of your building, you need to have prominent signs in your waiting area that reflect your professional affiliations, state that you accept all major credit cards, and communicate that you provide financing options, if applicable. I have learned over the years that when customers are under stress, they can easily forget that credit card that they have tucked away for emergencies. You’ll be surprised when you see the relief on their faces after seeing the signs. 
    7. Your customers do not have an expectation that the furniture in your waiting area will be top of the line, but they do have an expectation that it will be well maintained and clean. Over the years customer panels have told us that if shop owners don’t care enough about their own furniture to keep it clean and presentable, then why would they care about their customers’ automobiles? Lost sales are guaranteed.
    8. Lastly, your waiting room needs to have smiling, well-groomed employees that greet your customers as soon as they arrive.  No matter how clean and well-appointed your waiting area is, it’s the people who work with you that will have the greatest impact on your customers’ decisions, guaranteed. 
    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.
  8. Elite Worldwide Inc.
    By Bob Cooper
    It’s only natural that most of your employees would like to take their vacations during the summer. Unfortunately, that’s typically your busiest time, right?

    Let’s say you have a technician who typically produces 50 hours a week during your peak summer months, but during the month of February, when your car counts are lower, he typically produces just 38 hours a week. If you bill at $90.00 per hour, and if you are operating at a part to labor ratio of .75 to 1, then those twelve additional hours would represent an additional $1,890.00 in sales! So rather than losing that additional income, do this…

    Review your shop’s historical performance to determine the months when your techs typically produce the least amount of billable hours. Compare those months to your peak summer months, and then provide off-season vacation incentives that will work for you as well as your technicians. You can tell them if they take their vacations during one of the off-season months, you’ll be happy to provide them with a ski-pass, an extra day of vacation, etc. Obviously they are not forced to take advantage of the offer, but if they decide to do so, it can be a big win for them, and a win for your bank account at the same time.
    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
  9. Elite Worldwide Inc.
    Industry leading shop owner and Elite Business Development Coach Gene Morrill shares an easy-to-apply tip that has helped his shop improve customer satisfaction and retention.
     
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Gene through Elite Top Shop 360: Top Shop 360
  10. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development Coach Nick Sallas shares a quick tip on increasing your productivity with the help of your service advisors. This great tip is sure to be effective for you and your shop.
     
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Nick through Elite Top Shop 360: Top Shop 360
  11. 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.


  12. Elite Worldwide Inc.
    By Bob Cooper of Elite

    For decades shop owners have had the luxury of being able to rely on a short list of traditional media to bring in new customers. They’ve primarily utilized directory ads, print media, radio and TV, and to some extent, local grassroots marketing programs. With rare exception, each of these advertising mediums has had a long-standing track record of performance (either good or bad), so you knew what you were getting when investing in these mediums. Today, we live in a completely different world, and how you go about marketing in the coming years will have an unparalleled impact on your auto service business. Here’s why…

    First of all, with today’s ever-expanding technology, we will certainly see a continued growth in new and creative e-marketing channels. Just look at the amazing growth that we’ve seen over the past few years: we now have YouTube, Facebook, Twitter, social couponing, and cell phone offers, just to name a few. Not only will your number of choices in e-media continue to expand in the coming years, but with many of them, there will be little or no record of historical performance, so determining which mediums are best for your business will become increasingly difficult. So if you are not careful in the coming years when it comes to marketing your auto repair business, you will find yourself spending a fortune in dollars, time, and resources, only to fall short of the results that you are looking for.

    So rather than jumping on the bandwagon with every new media that hits the market, you need to put first things first.

    You can start by picking up a copy of Fortune Magazine and paging through it. You’ll see a lot of really great ads, but one company that will certainly be absent is Monster, the energy drink company. Regardless of whether or not you like their product, you have to admire them for their marketing genius. What Monster has done, as all great companies do, is identify its target customer, and invest wisely in the advertising mediums that best reach those customers. Monster’s target customers are the younger generations, so they spend their marketing dollars passing out samples on college campuses and hosting parties and events, not on ads in Fortune Magazine. In your business, it’s no different. You need to put first things first by identifying who your ideal customer is, and then pinpointing the campaigns that attract your ideal customer before you start throwing money at new marketing campaigns.

    In every case, you should start by analyzing your existing customer base. Look for the commonalities in the customers who have generated your highest sales and profits. Beyond the type of vehicles they drive, and the type of services performed, you should look for commonalities in their age and gender. Once you have that list, you should then look for commonalities in their approximate income, their education, and their social behavior. For example, you may discover that your ideal customer is a 45-year-old male who has a college degree, goes to church on a regular basis, and is involved in his community. Once you have this information, it’s just a matter of finding the right advertising mediums to attract this target customer, and focusing on these mediums as the core of your marketing efforts. So before you invest in a new advertising medium, ask for a demographic breakdown of who the medium reaches. If you are confident that this medium is going to effectively reach your ideal customer, consider taking your research a step further by asking a handful of your long-time customers who meet your ideal customer criteria whether they are familiar with the medium, and if not, whether they can see themselves using it.

    Can your target customer change over time? Of course, but if you take my recommendations, you’ll keep your service bays full in the coming years, because as the list of advertising options continues to grow year after year, you’ll know which ones are best for you. You see, with the right research and focus, you’ll know exactly who you are trying to reach, and best of all, you’ll know how to reach them.

    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.
  13. Elite Worldwide Inc.
    In the world of auto repair and service, one thing is for certain: You are going to lose customers. They will move, no longer have a need for their automobile, turn to one of your competitors, or buy a new vehicle and then take it to the dealer for service. Accordingly, you need a consistent stream of new customers, and since you more than likely have competition in your community, you need to help those potential customers see that your shop is the right shop. The way that you accomplish this goal is by identifying who your targeted customer is, and then investing in your marketing and advertising programs, along with your customer retention programs. The question is; how much money should you be investing in those programs? Well, here are the guidelines that we share with the top shops in America.

    If you have a general repair shop, a good place to start is at 4-5% of your annual sales. If you have a transmission shop, you may find that you need to increase your budget to 6-8%. Bear in mind that your budget needs to be a percentage of your “targeted” sales, not your current sales. For example, if you are currently generating $800,000 in annual sales, but your target is $1,000,000 in sales, then your marketing budget would need to be 4-5% of $1,000,000, not $800,000.

    The second thing you should do is something that very few shops do, which is invest at least 50% of your budget into what we at Elite refer to as non-traditional advertising programs. Whereas traditional programs include media like direct mail, TV, radio and websites, non-traditional programs are comprised of media such as fund raisers, social media, car care events held at your shop, and any other advertising programs that are outside of the mainstream marketing channels typically used in your community.

    Now here is one of our best kept secrets at Elite. We have long recognized the Y Generation (born 1980 - 1990) as the emerging market. These people are not only your customers of tomorrow, but since this generation was brought up using search and social media on their Smartphones, they are often turned to by older generations that are looking for a good auto repair shop. Accordingly, we encourage all of our coaching clients to invest 50% of their non-traditional advertising budgets into programs that are specifically directed toward the Y Gen’s in their communities. We have to remember that the first to reach this emerging market will benefit the most, so why not you?

    In order to get the best return on your advertising investments, there are a number of things you should do. First of all, we encourage you to explore every opportunity to use the strength of other respected brands. For example, using names such as Valvoline, Jasper Engines & Transmissions, and AAA can enable you to build even more customer confidence in your brand. You will also need to monitor and measure the results of your advertising programs. Here’s how…

    With all first-time customers, even if they are holding your coupon, you should ask, “By the way, may I ask who referred you to us? When I was still operating my shops, I discovered that this question would send a strong message that we received a lot of referrals, which is a very good thing. In addition, we discovered that many of those customers (even those with a coupon) would respond by saying something like, “I see your ads on TV all of the time.” Since brand awareness media like TV and radio is so hard to monitor, this question would often help us obtain the answers we were looking for. We also discovered that more often than not, customers would tell us that they were referred by a friend, which indicated that while the media (coupons, ads, etc.) were the calls to action that caused them to contact us, the customers were actually sold on us due to recommendations from their friends. We would then call our customers who gave us the referrals, and thank them for their trust in us.

    In conclusion, if you want to build a base of satisfied customers, you need to know who your ideal customers are, make the right investments in the right media, monitor and measure the results, and then do an amazing job of turning those customers… into raving fans.

    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
  14. Elite Worldwide Inc.
    There’s no doubt that pricing is one of the most misunderstood elements of business. There’s not only a lot of bad information out there, but with these tough economic times, there’s a lot of uncertainty as well. So what I decided to do with this article is break the subject of pricing down into three components: Base pricing, price modification and measuring results.

    Base Pricing

    At Elite we believe that in all cases, your prices need to be competitive. By “competitive”, I’m not suggesting that you need to charge the same price as the shop down the street. What I am saying is that your prices need to be competitive with other service providers that deliver a level and quality of service that is comparable to yours. So take the pulse of your community to discover what other well-run shops and dealerships are charging for the more popular services and repairs.

    If you’re not competitive you’ll have a short-lived career, so don’t develop a false sense of security by telling yourself that your shop is far better than your legitimate competitor’s. Remember, in the world of business, with all due respect, your opinion doesn’t count. Your customer’s perception of value is the only thing that really matters. And for them, perception is reality.

    Price Modification

    Once you have concluded what your base pricing needs to be to ensure you’re competitive, you will have to run the numbers. When you do the math, you should be able to quickly determine if you can operate a profitable business (at your predetermined pricing structure) based on your fixed expenses, the required return on investment, your cost of goods and the potential of your facility. You should easily be able to determine the number of employees you will need, and the number of vehicles you will need to process in order to reach your financial goals.

    One option you can explore after running the numbers is to find ways to provide added value to your services that will allow you to increase your pricing. Bear in mind that your customer’s perception of added value will need to be easily recognized, and it will need to be cost justifiable, so added value items like longer warranties, premium parts, and complimentary loaner cars could come into play.

    The other point you need to consider with price modification is how often you should raise your prices. Some management companies suggest that you should systematically raise your prices every quarter, but at Elite we strongly disagree. It makes little sense to say we should automatically raise our prices just because we can. What I would encourage you to do is review your pricing once a quarter. If there are no negative changes in your economy, and no changes in your competition, you may then want to consider raising your prices. If you do, the increases should be small, unless you are correcting a major deficiency. Not only are small increases more easily acceptable in the eyes of your customers, but you will find that your service advisors will feel far more comfortable with small increases as well. Bear in mind that anytime your service advisors have a hard time buying into a price increase, they’ll have a hard time selling it.

    You also may want to consider loading the majority of your increases in your labor charges rather than your part pricing, and here’s why. In the customer’s mind, parts are parts, but when it comes to your labor charges, it’s far easier to defend because your technicians may be more skilled than the techs down the street. If you spoke to two doctors about a surgery, you would more than likely expect the price of the anesthesia to be about the same with both doctors, but if the one doctor charged more for professional services than the other, you may very well feel it’s worth it, because he or she could conceivably be a better physician. It’s no different in your business. To the consumer, parts are parts, yet the technical expertise between two techs will never be the same.

    Another good rule of thumb is to avoid falling prey to other shop owners telling you that they jacked up their prices and haven’t lost any sales at the point of sale. These are typically the same shop owners who a year later find that their customers have all but disappeared. The reality is that just because your customers authorize a service, it doesn’t mean they were sold on the job. Often times they’ll approve the service (at a price they feel is too high) just to get the repair behind them, and then they’ll never come back.

    Measuring Results

    In all cases, I would strongly encourage you to monitor the “consumer acceptance” of your pricing. First, you need to pay close attention to the sales that are lost at the point of sale and track each one. Secondly, you should do your follow-up calls, and monitor how many of those customers ultimately return. The last component you will need to monitor is your number of referral customers, both in count and as a percentage of your total leads. There’s no question that if your customers continue to return, and continue to tell their friends about you, your prices are considered acceptable.

    In closing, far too many shop owners have this ill-founded belief that their services are worth more than they really are. They jack up their prices, they make a lot of money for a few months, and then their customers disappear. Don’t let this happen to you. Instead, you should do what all the well-run, ethical shops do. You should deliver great value to everyone who comes into your shop, you should never put money ahead of people, and if you do decide that it’s time to raise your prices, just be sure to do it carefully, and in a manner that will not adversely affect those priceless relationships that you have with the single most important part of your business: Your customers.

    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.
  15. Elite Worldwide Inc.
    By Bob Cooper
     
    At Elite we know that once someone comes into your shop, you’ll do everything you can to generate a happy customer, and make a fair profit. Unfortunately, some customers will put you to the test when it comes to the prices you charge. They’ll tell you they can’t afford the recommended services, they’ll tell you they can get the same service done down the street for less, or they’ll just need you to knock a few bucks off the price. This is when you typically tell yourself that you’ve already invested a good amount of time and money to get the customer to this point in the sale, so rather than letting the customer walk, you drop your price a few bucks, and in your mind, you just saved a job. Unfortunately, what you just lost was your integrity, and the integrity of your pricing.
     
    One of the things we teach in our sales courses is that there are a number of reasons a customer will ask you for a discount. They may very well be in a cash crunch, and as we all know, many cultures believe that you’re foolish if you don’t haggle over the price. But there’s yet another reason why people will ask you for a discount, and ironically it’s the one most shop owners, and service advisors, completely overlook. What those customers are doing, is testing your integrity. Look at it like this ...You hire a plumber to do a job at your house, and they quote you at $800.00. You then ask them if that’s their best price, and within a few minutes they’re telling you they’ll knock $50.00 off the price. Regardless of whether or not you authorize the job, you’ll more than likely tell yourself that if you wouldn’t have asked, one thing is for certain: you would have paid $50.00 too much. You probably wouldn’t feel too good about that, would you?
     
    And then ask yourself this question: would you call that same plumber again? And if you did, what thought would pass through your mind when he gave you a quote on the next job he did for you? I think it’s safe to say that your confidence in the plumber, and the integrity of his pricing, would be gone. We also know many shop owners will inflate their prices when knowing they are dealing with a negotiator, and then will provide those customers with a supposed “discount.” So do this...rather than playing a shell game with your customers that will put you out of business, apply these powerful tips:
     
    #1. Embrace the fact that it’s perfectly ok to offer legitimate discounts, such as senior discounts, police and fire department discounts, military discounts and promotional discounts.
     
    #2. When a customer asks for a discount, look at their request as a buying signal. They are already sold on you and the recommended services! They are now either simply testing you for price integrity, or they are negotiators looking to get the best deal. Since they’re already sold on you, rather than lowering your price, look at their request as an opportunity for you to build even more interest and value in your recommended service, and to resell yourself at the same time.
     
    #3. Rather than reducing your price, offer your customer something that brings an added value. For example, rather than lowering your price from $800.00 to $750.00, tell the customer that if they authorize the service, you’ll provide them with a voucher they can use for a complimentary oil service during their next visit. This way you don’t cheapen the value of your existing recommendation.
     
    #4. If you feel for whatever reason you have to provide a concession in price, you should always take something off the table in return for the price reduction. Examples would be reducing the warranty on the repair, having your tech work on the vehicle when you are not as busy, etc. In all cases, if the customer pays less, they should get less. It’s called ethics.
     
    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 learn more about Elite by visiting www.EliteWorldwide.com.
  16. Elite Worldwide Inc.
    By Bob Cooper

    I am sure we can all agree that our industry, and society, has been going through quite a transformation. One of the changes that’s had an extraordinary impact, and will have an even bigger impact in the coming years, is transparency. Not only do today’s consumers have an expectation of transparency, but they have access to pricing information that was beyond our wildest dreams just a few short years ago.

    Just look at all the major retailers. With rare exception, you can walk into any consumer electronic store, appliance store, or in many cases even the home goods stores, and you’ll find that they not only offer price matching, but they put their price guarantees front and center. This is a growing trend, and there is no question that it comes from one source. The retailers are very well aware that their customers have something they never had in the past – access to pricing information that is literally at their fingertips. So here’s my recommendation to you as a shop owner: take a different path than your competitors. First of all, we all know that in order to operate a successful auto repair shop you need to maintain a certain level of gross profit. Accordingly, what most shop owners will do is establish gross profit margins on their parts, and they’ll typically set a different gross profit margin on their direct labor. The common numbers are 50% on parts, and 70% on labor. Combine the two together, and they get the overall gross profit they are looking for. As you can imagine, this is what they learned from their mentors, and although it worked in the past, the times have changed.

    In today’s transparent world, one of the first things customers will scrutinize is the price of the parts you have installed on their vehicles. Now we all know that well-skilled service advisors can take the focus off of the price when providing a service recommendation, and we know they can do a reasonable job in answering questions about their part prices, but no matter how skilled they are, I am sure you will agree; it’s a tough sale at best. So consider this scenario….

    There are two shops performing the same repair on identical vehicles, and each shop charges $1,000.00 for the repair. The only difference between the two jobs is that Larry’s Auto charged $500 for the parts and $500 for the labor, whereas Elite Auto Service charged $400 for the parts and $600 for the labor. If Larry’s customer discovers he could have bought the parts for substantially less, and questions the integrity of Larry’s price, then Larry is in trouble. On the other hand, by being more competitive with part pricing, Elite’s customer is comfortable with the price he paid for his parts. Now at this point I know what some of you are more than likely thinking; what if the customer questions the labor charge at Elite? If that question is going through your mind, all that you need to do is ask yourself if you’d rather defend the price you charged for the service provided by your talented technicians, or the price of your parts? For me, that’s an easy question to answer, and the best example I can give you would be the fees charged by physicians. You and I may expect the price of bandages and medicine to be the same between two doctors, but we know we’ll be paying more if we see a leading surgeon. Not only would we expect to pay more, but we’ll probably feel good knowing that we are being cared for by the best.

    In summary, in the customer’s mind parts are parts, but as we all know, those superstar techs who work with you can’t be compared to the guys down the street. This is why I strongly encourage you to ensure that your high profiled parts are competitively priced, and make up the difference in your labor charges. It will keep you competitive, and better ensure your success 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
  17. Elite Worldwide Inc.
    By Bob Cooper
    If you want to generate more repeat business, then there are a number of things you will need to do. You’ll need to deliver an extraordinary value, exceed your customers’ expectations at every touch point, and stay in touch with your customers after the sale. Over the years I have discovered that most service advisors have the right intent, and make their best effort to do all of these things. They want to do a good job, and they know that a part of their job is to help their customers see the value in their services. This is why they work hard at building value in their company and services when speaking with first-time callers. It’s also why they’ll build interest and value in their service recommendations, with the hope that their customers will agree with their recommendations, authorize the services, and then ultimately return.
    The top advisors in America not only understand this, but they’ll always put a strong focus on the benefits of their recommended services, rather than on the parts and labor. For example, when discussing the benefits of a brake service, they’ll tell their customers that they’ll have smoother and more responsive pedal operation, quieter braking, faster stopping and the peace of mind that they’ll have good, safe, and dependable transportation.

    Yet where almost all advisors fail, is at the point of car delivery. We have discovered that this is where they’ll do a good job of reselling the customer on the services that were performed, and they’ll certainly schedule the customer’s next visit, but what they fail to do is this: They don’t discuss the benefits of the next service.

    Here’s an example we can all relate to. You go to the dentist for a toothache, and they discover that you need a crown. The dentist then tells you that you have two options, and explains the benefits of each.  You like what you hear, and you make your choice based on the benefits that were shared with you. Then before you leave, the dentist tells you that you’ll be due for a checkup and cleaning in six months, and they schedule you in. Will you return in six months? Well, you might, especially if the dentist met all of your expectations.
    But when that reminder card finally shows up in your mailbox, you may hesitate for one simple reason: None of us enjoy going to the dentist, and the dentist didn’t explain the benefits of the checkup and cleaning during your last visit. If they had told you how this visit could save you money, help prevent other painful problems, and reduce the amount of time you’ll ultimately spend with your dentist, you would more than likely be more willing to return. I can only hope you agree that it’s no different with your business. If you want to see more return business, then do this…

    At the time of car delivery, take just a minute or two to explain the benefits of the customer’s next service. For example, rather than just telling your customers that they’ll be due for their next scheduled service in six months, say something like this… “As I mentioned to you earlier, Doris, your next service is going to be a maintenance service, and it’ll be due in six months. Now the good news is, that service is going to help you squeeze every mile out of every gallon of gasoline, it’s going to help you maintain your warranty and protect the value of your vehicle, and it’s going to help you save time and money by preventing costly breakdowns.”

    Although I can’t guarantee that your customers are going to return if you do what I am recommending at the time of car delivery, there is one guarantee that I can make you: If you take just a minute to explain the benefits of the next service to your customers, there is a strong probability that they’ll want to come back. On the other hand, if the only reason for them to return is because you sent them a reminder card telling them that they need to come in for nothing more than to spend money with you and to be without their vehicles for a day, then you’ve given them a really good reason to toss the reminder card… and not come in.
    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. To learn more about Elite, visit www.EliteWorldwide.com.
  18. Elite Worldwide Inc.
    By Bob Cooper

    In today’s market, service advisors are facing a number of challenges. One of the more complex challenges is when a skeptical first-time customer comes in for an oil service, and the advisor discovers that this customer needs a long list of repairs. This is what most advisors refer to as the proverbial “laundry list.” Unfortunately, what most service advisors will do is either hold back some of the recommendations because they are afraid they’ll scare the customer away, or they’ll struggle through their presentations. So here is what I am going to recommend that you do...

    #1. With every first-time customer you need to do a lot of fact finding. Beyond the standard questions you ask, you need to ask them how long they have owned the vehicle, and whether they bought it new. You also need to ask when was the last time the vehicle was in a shop, what it was in for, if anyone else drives the vehicle, and what their plans are for it. In essence, you need to discover if they plan on keeping it, and if so, for how long.

    #2. Have a conversation with every first-time customer about your vehicle inspection process, and how they’ll win. Take a moment to tell them about the qualifications of the technician who will be inspecting their vehicle, and let them know the inspection service is being performed for two reasons: to ensure there are no safety concerns, and to establish a baseline for what services may need to be done, and when.

    #3. When you build your estimate, always bundle all repairs and services that are relative to each system on the vehicle; the brake system, suspension system, cooling system, etc. This way you are prepared with a price for taking care of everything that needs to be done in each of the systems.

    #4. We all know that when we start a sales presentation, and the customer senses they will need a number of repairs, they’ll get anxious. They’ll then immediately ask for a price, or they’ll tell you they just want the oil service done. The secret? Always ask for permission to talk about the price after you’ve reviewed your discoveries with them. For example…

    “First of all, Mr. Smith, when you brought your car in this morning, you said you were concerned about a couple of different things, so tell me if I am missing something here! You said the brake pedal was going down quite a bit, and you also said you needed to have your Mustang back by 4 o’clock. If I remember correctly, something about an anniversary dinner; is that right? Well look, I have some really great news for you. When it comes to your brakes, and being able to have you out of here by 4 o’clock, we’re going to be able to solve both of those problems for you. As I mentioned this morning, the gentleman who inspected your Mustang is Jim Piraino. He’s an ASE Master Certified technician, he’s been with us for 12 years now, and I have to tell you; he’s really gifted at what he does. Now we’ve taken a look at all of your service records, and I’m actually looking at a copy of Jim’s inspection report, so let me tell you what we discovered. First of all, I’d like to say congratulations on taking good care of your automobile because your battery, your tires, your suspension, and your drive train all appear to be in good, operable condition. Now, in addition to the brakes, there are a couple of other things that I’d like to chat with you about, so if it’s ok with you, let me tell you what Jim’s discovered, we’ll have a conversation, then I’ll be more than happy to answer any questions you might have, and we can go over the prices at that time as well. Are you on board with this approach, Mr. Smith? Terrific!”

    #5. If they can’t authorize everything, and you need to prioritize, always start with what they brought their vehicle in for, followed by anything that has to do with their personal safety, then the safety of others, followed by vehicle maintenance and comfort items.

    #6. Never compromise your ethics. If you do the right things for the right reasons, and if you never put money ahead of people, it will show through to your customers. Combine your shop’s ethics with the above guidelines and you have my promise: you and your customers will be thrilled with the results.

    For additional help building a more successful shop that will have a positive impact on your employees, customers and community, please feel free to take advantage of Elite's Complimentary Shop Performance Review.
  19. Elite Worldwide Inc.
    By Bob Cooper

    If you are looking to drive up your profits, you need to ensure you have service advisors that have the right attitude, aptitude and ethics. They will need to have the natural talent to sell, they will need to be well trained, and they will need to have the proper support systems in place. And lastly, you will need to have the right compensation and incentive plan in place to help your advisors excel. Here are some tips you can use to drive up your sales, profits and customer satisfaction scores, all at the same time.

    1. In drafting any pay program, the first question you should always ask yourself is what are you looking to accomplish? With service advisors, you should be looking for them to generate three things: sales, gross profits and happy customers. This is why at Elite we encourage our coaching clients to implement pay programs that only reward their advisors when all three objectives are met. For example, the advisor can earn a graduated commission on sales, but in order to be eligible for the added income, they will need to meet minimum requirements for gross profit and customer satisfaction scores. With a program like this in place, with each sale the advisor will work toward ensuring that it is profitable, and that the customer is pleased. Compensation programs for advisors that only address sales without considering gross profit and CSI requirements are set up to fail because the shop typically encounters much higher expenses, and lower CSI scores. Remember, the behavior we get is the behavior we reward.

    2. If you have more than one advisor at your shop, you have a number of options for how you can compensate them. Many shop owners will put each advisor on their own commission program, but unfortunately, this leads to an unhealthy type of competitiveness, and there is no incentive in place for them to help one another. This is why we recommend a shared commission whenever there are multiple advisors, especially when they have to cover for one another. If you have a more experienced and more productive advisor working with a less experienced and less productive advisor, you can easily adjust by either giving the more productive advisor a larger percentage of the shared commission, or you can provide them with a base pay that is supplemented by the sales commissions they will earn. These pooled commissions incentivize the teamwork you need to grow a successful auto repair shop.

    3. One of my best-kept secrets is implementing daily car count goals and daily sales goals. If your monthly sales goal breaks down into a daily goal of $4,000, and if your ARO is $400, you would need to bring in 10 cars a day. When your advisors come to work in the morning they can write the amount of $4,000 on a note pad, and next to that dollar amount they can write the number 10. As soon as they write up the first repair order that day they would strike a line though the 10, and write “9” (the new, revised goal) underneath. As soon as they sold the first job that day they would strike a line through the $4,000, and write the new revised sales goal underneath. If you apply this procedure to your company you will be amazed at how it will help keep your advisors focused on the vehicles they need to generate the sales, and the sales they need to reach their goals.

    When I first applied this procedure to the shops I owned, our sales went straight up. If you don’t have clearly defined car count and sales goals in place, your advisor may go home tired, and they may say they were busy, but there is no way they can say they were “successful” when the definition of daily success has not been established. On the other hand, if you have these goals in place, then you can reward your advisors at the end of the day by congratulating them on reaching the goals, and letting them know how much you appreciate them being a part of your company. That in itself is a reward they all need, and one that money just can’t buy. It’s called recognition, and you have my promise - it’s a reward that every superstar needs.


    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.
  20. Elite Worldwide Inc.
    By Bob Cooper

    Anyone who has been selling service for any length of time will agree that there are two kinds of customers. The first is the customer who has a history of making good decisions, not just with auto repair, but with most decisions. And then we have the other kind of customer: the kind of person who more often than not makes the wrong decisions.

    Let’s use maintenance service as an example. When you’re dealing with a relatively intelligent person who understands the value of maintenance, all they need is information presented in a way that builds value in the service. You have then done your job, and if they decide not to buy after you’ve addressed their concerns, they may very well have a legitimate reason for postponing the service.

    On the other hand, if you have a customer who has a history of making poor decisions, such as constantly putting off maintenance that has led to costly repairs, then it’s time to step up to the plate and help them with the decision. It’s professional, it’s ethical, and it’s treating people the way they should be treated. Here’s an example…

    Years ago I had a young customer who had just lost his job. He was the proud father of a newborn, and his vehicle needed major repairs. When he told me he wanted to fix his car as cheaply as possible, I shifted from vehicle repairs to discussing the more important things he needed to consider. Now that he was a new father, the baby’s safety, in regard to vehicles, was dependent on him. He also needed a dependable vehicle so he could find and keep the new job he desperately needed, and since he was strapped for cash, it would be a mistake to put himself in a position where he would be running the risk of having to fix his car twice. You know what? He agreed, and the way I won had nothing to do with money. I won by helping him make a difficult decision that was good for him and for his family. We can never forget, selling is helping people make the right decisions. Not fixing cars.

    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 coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.
  21. 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.

  22. 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.
     
  23. Elite Worldwide Inc.
    By Bob Cooper of Elite

    Without question, it is getting harder and harder to find the really great technicians. We just need to bear in mind that they’re out there, and that they’re more than likely relatively happy where they are. So how do you reach these superstars? Well, you may want to consider what your competitors would never dream of doing, and offer a referral reward that gets the attention of everyone in our industry who resides in your community.

    Most shop owners will try offering a referral incentive. These shop owners go to a number of their vendors and tell them that if they refer a tech, and that tech ends up being hired, they’ll give them a check for $100 or so. About a month later these shop owners will typically conclude that since they didn’t receive any referrals, incentives like this don’t work. What they often fail to realize is the reason the vendors didn’t send any leads to them is pretty simple; it’s because $100 wasn’t a powerful enough incentive.

    I am unsure what the lotteries are like in your particular state, but here in California we have a weekly lottery, and when the pot is around twenty million dollars or so, not many people seem to be interested in buying a lottery ticket. But as soon as that pot reaches one hundred million, people stand in long lines to buy the tickets. What I find comical is that this behavior suggests that twenty million isn’t enough of an incentive, but as soon as the pot reaches the one hundred million mark, well, in their mind’s eye, now we are talking real money! This same phenomena affects your vendors.

    So, the secret? Make your vendors an offer that will grab their attention, and put sending referrals to you at the forefront of their minds. I can tell you from first-hand experience that when I was in the auto repair business, I found this approach to be extremely effective. This is why when any Elite client is struggling to find great technicians, we will often encourage them to offer a reward of $4,000 - $5,000, not $100. There is a magic number in every vendor’s mind that will get their attention, and when they realize they can earn enough money to buy that boat they’ve wanted for so long by doing nothing more than sending a really good tech your way, your offer will become very attractive.

    Now before I go any further, I suspect I know what some of you may be thinking: With this approach you could spend $4,000 just to meet a tech, or to hire someone who turns out to be the wrong employee. So tell your industry contacts that if they send a tech your way, and if you hire that tech, you will give them a check for $2,000 on the very first day of that tech’s employment. If the tech is still with you at the conclusion of their 90-day probation period, you will then pay them the remaining $2,000. I also suspect that some of you are thinking that $4,000-$5,000 is a lot of money to give up, but when you consider what that superstar will produce for you, within a matter of a few months you will be telling yourself that the incentive was one of the best investments you’ve ever made.

    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 coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.
  24. 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
  25. 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.


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