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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  2. Elite Worldwide Inc.
    The top shops in America realize that in order to build a successful business they will need to have team players that are self-starters, who can produce, and who will never compromise their ethics. Over the years I’ve not only been fortunate enough to hire many of our industry superstars, but I have seen hiring mistakes made every day by shop owners all across America. In order to help you with your business, I’d like to share what I believe to be the 5 most common hiring mistakes that shop owners make.

    1. They are afraid to pay top buck. In business there are a number of rules that are timeless, and one is that you get what you pay for. The reason the superstars can command top buck is pretty simple; it’s because they can produce. The techs and advisors that earn average incomes all have one thing in common; they produce average results, and average employees will never take you to the top. Every top shop owner that I have consulted with will agree that once you hire a superstar, you will quickly see that they are one of the best investments you will ever make.

    2. They are afraid to provide a respectable guarantee. Most shop owners are reluctant to give a respectable guarantee because they are afraid the new hire may not produce, and they will be stuck paying a big guarantee. Now here are two important points that they don’t understand. First of all, if they believe they are providing the potential employee with a great opportunity, then providing a respectable guarantee shows the candidate that they have confidence in their business, and in the position they are looking to fill. Secondly, most shop owners are so concerned about how much the guarantee could cost them, they completely forget that if the employee doesn’t produce, there’s a simple solution: You let them go.

    3. They use the wrong criteria when making their employment selections. Most shop owners hire techs and advisors based on their level of knowledge and industry experience. Although those are both important considerations, what’s more important is the attitude of the applicant, their aptitude and their ethics. A wise man once told me we hire people for what they know, and we fire them for who they are.

    4. They don’t look beyond the candidate. The shop owners who employ the superstars all realize that when they hire Larry they get Mary. What this means is that if the candidate has a significant other in their life, you can rest assured that they will play a role in the candidate’s decision. This is why at Elite we encourage all of our clients to ensure their compensation and incentive package has what we refer to as “go-home” benefits. Examples would be retirement programs, paid holidays and vacations, well-days, etc.

    5. They forget that the superstars will be interviewing them. The top shop owners all realize that the superstars they are interviewing will have no trouble at all finding a shop that will hire them. Accordingly, throughout the interview process the superstar will be interviewing the shop owner, and they’ll be asking themselves whether or not they would like to work at the shop. They will be evaluating you by the type of questions you ask, and the interviewing-qualification process you take them through. If at any time they feel you are hiring out of desperation, rather than ensuring it’s a great fit for everyone, one thing is for certain: They’ll walk, because what they are looking for is the opportunity to work at an ethical shop that enjoys a good reputation in the community, has team spirit, and has leadership that allows them to clearly see their future with the company.

    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
  3. Elite Worldwide Inc.
    By Bob Cooper
     
    We all know that there are many things you can do when it comes to customer retention. Follow-up calls, sending out service reminder notices, ongoing advertising campaigns that keep your name at the top of the customer’s mind, and scheduling the next visit at the time of car delivery are just a few. Yet there are some timeless rules that are often forgotten. During these competitive times I feel I can best help you by reminding you of the 6 most important rules when it comes to customer retention.
     
    Rule #1. Create a principle-centered culture. All great companies realize that getting to the top, and staying at the top, is dependent on having a culture that is based on principles. As a business owner you need to ensure that you have a clearly defined Mission Statement, you need to share it with all of your employees, and you need to constantly keep it at the forefront of their minds. Remember, your “goals” are what you are going to accomplish, whereas your Mission Statement is what you will be doing along the way. For example, a Mission Statement could read, “It is the mission of Elite Auto Service to deliver extraordinary service to our customers and opportunity to our employees, while never compromising our ethics or our responsibility to society.”
     
    Rule #2. Offer and deliver a good value. I am not suggesting that you be the lowest priced, or the highest priced in your community. What I am suggesting is that you deliver a good value in return for the money you charge. Companies that charge more than they should just because they can typically discover that their profits will go up in the short term, but that they lose their customer base at the same time. Great companies are competitive, not greedy, and that is why they become, and remain, great companies.
     
    Rule #3. Hire the Superstars. The success of your company, and your ability to retain customers over the years, will be dependent on the people who work with you. As I am sure you will agree, just being good is no longer good enough, so you need to have employees who truly are superstars. I can only hope you bear in mind that whenever someone buys a product, they will always remember the product, but whenever they buy a service, they will always remember the people providing the service. Simply put, your customers’ impression of your business will only be as positive as their impression of the people who work with you.
     
    Rule #4. Provide consistency in the experience. Great companies such as McDonald’s, Starbucks and Nordstrom all understand the importance of consistency in service. With any of these companies, before you step into their stores you already have an expectation of what the experience will be. The top shops understand this rule, and that is why they have clearly defined procedures for everything they do, from handling the first-time caller, through car delivery. When customers feel there is no consistency in service, they will typically look for an alternative service provider.
     
    Rule #5. Deliver on your promises. Hopefully you can see how this rule ties into your Mission Statement. If you want your customers to continue to return, then make sure that all of your employees choose their words carefully when they are making a commitment to your customers, and then ensure they move the earth to deliver on those promises.
     
    Rule #6. Never put money ahead of people. All world-class business owners understand that money is the result of doing the right things for the right reasons. When you embrace this rule you will also discover why the world-class businesses will never take their customers for granted. They understand that it’s the trust their customers have in them and their people that is priceless, not their credit cards.
     
    In closing, there are a number of things you can do to improve your customer retention, but the one promise I can make you is this: These 6 rules are timeless ones, and if you apply them to your business, you will not only see more repeat customers, but unlike your competitors, you will be building a business that will last for generations to come.
     
    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. To learn more about Elite, visit www.EliteWorldwide.com.
     
  4. Elite Worldwide Inc.
    As we all know, the most powerful form of advertising always has been, and always will be, word of mouth. Although every shop owner would like to believe the majority of their customers are songbirds, the reality is, they’re not. I am not suggesting that you don’t have some customers who love to sing your song, but it’s safe to say that they’re a very small percentage of your overall customer base. I feel comfortable making such a strong statement because even if as little as 10% of your customers were telling their friends about you, and if those people were to come in to your shop, then within 90 days you would have to shut down all of your advertising programs, and you would be booking appointments 30 days out. The reality is that regardless of how well you treat your customers, and no matter how pleased they are with your service, when your customers walk out of your shop they’ll step back into their busy lives, and they will forget about you. Will there be a time when they think of you again? Of course, but it’ll only be when they have a need for your services, or when a friend engages them in a conversation about auto repair.

    So here’s an easy-to-use procedure I created years ago that will turn your customers into salespeople, and fill up your service bays with customers who are presold on you.

    Start the process by identifying the customers in your customer database who are your biggest boosters. Ideally they will be good communicators, and they will either work with a lot of other people, or their social lives will put them in constant contact with a lot of other people. Then when they are dropping off their vehicle, or at the time of car delivery, say something like this…

    “Before you leave, Kevin, do you have just another minute? Great! We’re growing our company, Kevin, and in my perfect world, every customer would be just like you. You are always a pleasure to work with, and everyone here who knows you thinks the world of you. Now I know birds of a feather flock together, so here is what I would like to do…” While they are in front of you take two of your business cards, and on the back of each card write – “One complimentary oil service”. Hand the two cards to your customer and say: “What I’d like to do is give you these two cards. Each one of them entitles the bearer to a complimentary oil service, so when you go to work today, if you could be so kind as to take just a moment to give these two cards to a couple of people you work with, it would be very much appreciated. They’ll get a complete oil service at no charge, and we’ll be able to meet a friend of yours.”

    This works so well because if you give the cards to the right people, they’ll be excited to pass them along to their friends, and since you gave them specific instructions on how and when to do it, there’s a good probability they’ll pass the two cards out the very same day. You know as well as I do that they will be singing your praises when they pass along those cards, and there is a good probability the cards will be used. Your cost? The potential cost of two oil services, and the cost of an oil service is meaningless when you consider that you are getting a new customer who is presold on you, and you are giving your best customers the opportunity to give something of value to two of their friends. If you are looking for an immediate increase in car counts, then this is one way to not only bring in more new customers, but to turn your customers into salespeople 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 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.

  5. Elite Worldwide Inc.
    By Bob Cooper
    In building a successful auto repair business, most shop owners feel that what they need to do sell is more parts and more labor. Although both of those items are a part of your business model, one thing is for certain: your customers don’t look forward to buying either of the two, at any price. Yet thousands of shop owners are having sleepless nights trying to find ways to squeeze more money out of their part and labor sales.
    While I was still operating auto repair shops I was intrigued by the fact that while my customers had little, if any, interest in the parts and labor they were buying, they were quite interested in the warranty we provided on our repairs. In essence, what they wanted more than anything else was the peace of mind in knowing they would have good, dependable transportation, and that they wouldn’t have to worry about paying again if the repair were to fail.  It was at that very time I realized that what I needed to sell more than anything else was peace of mind. I then did a tremendous amount of homework on the insurance industry, and it didn’t take me long to realize that they are all in the business of selling risk.
    The way they win is by factoring the inevitable losses into their premiums. As an example, for every 1,000 people they provide life insurance to, a certain number will inevitably die during the insured period, but if they choose the right customers, and charge the right amount, they’ll have plenty of money to cover those few predicted deaths. Next I evaluated the probabilities of different types of part failures, and the kind of customers I wanted in my shop.  I quickly discovered I could take the repairs that had the lowest probability of failing within five years, price them out as optional services, and completely change the way I was operating my business.
    First of all, most of our failures would typically occur within 30 days, so regardless of whether I offered a longer warranty or not, I would be covering that repair. I also discovered that if the repair failed shortly outside of our standard warranty, we would cover the cost for the purpose of customer satisfaction. With this understanding, it became obvious to me that the only additional risk I would be taking would be for any failures that occurred beyond the term of our standard warranty, yet within the time outlined in our extended warranty. In my case, on our targeted repairs we offered lifetime warranties that were non-transferable. Now here is the best part: I discovered that no matter how much someone loves their automobile at the time of repair, odds are that they ‘ll no longer own the car three years later due to lifestyle changes, tempting car sale ads, etc. So my exposure (risk) was more limited than you’d imagine.
    Now let’s talk about profit, and happy customers. Imagine if you were to offer your customer a standard master cylinder for $XXX dollars (with a one year warranty), and at the same time you offered them the option of a premium master cylinder (with a five year warranty) for a small additional amount. If they elect to go with the part that carries the longer warranty, then all those added dollars fall right to the bottom line. When done in the right way, the added profits will dwarf the few additional repairs you will have to perform. If you do the math, not only will you will be amazed at how profitable this can be, but as icing on the cake, the customers that choose to invest in the services that carry the longer warranties will be thrilled with the peace of mind you are providing them with.
    If this isn’t all reason enough, consider that Harvard Review reported on a study of what occurs when people are provided with options in a sales environment. They discovered that when test groups were offered one DVD player (Brand A), only 10% would buy. When they added a second player to choose from, 32% purchased brand A, and 34% purchased brand B. The lesson?  People love choices, so offering them the option of a repair with a longer warranty is one that many of your customers will love, and it will put more money on your bottom line at the same time.
    Note: Many states view offering different warranties as offering insurance, which requires a license. By offering different parts and services in each of your options, you’ll be good to go.
    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
  6. Elite Worldwide Inc.
    By Bob Cooper
     
    When it comes to dealing with objections, most service advisors shut down as soon as the customer says “It’s too much money”, or “I’d like to think it over.” There are a number of reasons why, but the single most common reason is that the advisors don’t know how to handle the objections. Here are what I have discovered to be the best-kept secrets when it comes to dealing with sales objections.
     
    1. Accept the fact that the single greatest cause of sales objections is a poor sales presentation. If you don’t follow the eight steps of the sales cycle (1. Build rapport, 2. Fact find, 3. Identify the need , 4. Identify the solutions, 5. Build interest & value, 6. Ask for the sale, 7. Close the sale, 8. Resell the service), if you rush through your presentation, or if you don’t believe in the service you’re recommending, then sales objections are bound to occur. So the first place to start in handling objections is in mastering your presentation. In all cases, make sure that you build rapport with the customer, offer options whenever possible, build interest and value in the benefits of your service rather than the parts and labor, and give the prices last.
     
    2. When you hear an objection, it’s a cardinal rule that you need to listen, learn and be thankful. When a customer gives you any kind of sales objection, they’re telling you that they’re interested, but there is something that is standing in the way of them authorizing the service. As sales professionals, we need to be thankful that they are expressing their concern rather than just leaving. First and foremost, when a customer voices a concern, you should never interrupt them. The more they talk, the more comfortable they will feel with you, and the more you will learn about the questions and concerns they have. You should also make a point to never disagree, because all that will do is alienate the customer by proving them wrong. You may win the battle of words, but you’ll lose the sale. Instead, you should say something like, “Well, Mr. Jones, based on what you’ve just told me, I can see why you would feel that way. Let me tell you what we’ve discovered ...” .
     
    3. Follow the Elite 5-step procedure for dealing with sales objections:
    1.) Hear the customer out.
    2.) Feed the objection back to the customer to assure you understand them: “So what you’re telling me, Mr. Jones, is that you feel you can get the same job done for less somewhere else. Am I correct?”
    3.) Respond to the objection. This is where you answer their questions and resolve the customer’s concerns.
    4.) Confirm your response: “So does this all make sense now, Mr. Jones?” As soon as they agree, you should ask for the sale again.
    5.) Change the subject: “Now will you need a ride back to your office?”
     
    4. Lastly, bear in mind that service advisors are salespeople, not clerks. It is the job of an advisor to help customers make difficult decisions that are in their best interest. If you never put money ahead of people, if you sell from your heart rather than based on the dollars, and if you follow these recommendations, then a number of things will occur. Beyond just becoming a better service advisor, you’ll be able to easily handle those sales objections, and most importantly: you will be helping a lot of people 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 one-on-one coaching 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.
     
  7. 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.
  9. Elite Worldwide Inc.
    By Jim Piraino
    Far too many shop owners will set an annual sales goal, and then simply divide that number by 12 to set their monthly goals. However, since this approach does not take the number of work days in each month into account, it is not the way that you should be setting your monthly goals, especially if your service advisors receive a bonus for hitting and/or surpassing monthly goals. With that said, I would suggest setting your shop’s monthly sales goals using the following method….

    Grab a calendar and calculate how many days your shop will be open and operating during the year. Typically this number will be about 254 if you are closed on the weekends (365 days per year – 104 weekend days – 7 holidays= 254). You can further adjust for technician vacations if you’d like, but for our purposes, let’s use 254.

    Next, divide your annual sales goal by the number of days you’ll be open during the year to calculate a daily sales goal. So if your annual sales goal is $1,200,000, divide that number by the 254 days you’ll be open to arrive at a daily sales goal of $4,724.41. When you’ve arrived at your daily sales goal, it’s time to set your monthly sales goals by multiplying your daily sales goal by the number of work days your shop will be open in each month. 

    Calculating your monthly sales goals using this method will give you a much better idea of your shop’s performance each month than if you were to simply divide the annual goal by 12, and will give you a number that’s more fair to base your advisors’ bonuses on, so I would strongly recommend trying out this approach in your shop.

    This tip was provided by Jim Piraino of Elite. Jim is the past owner of one of the top shops in the country, and currently helps shop owners reach their goals through the Elite Coaching Program.
     
  10. Elite Worldwide Inc.
    Most service advisors fall into one of three traps with first-time customers: they’ll either avoid recommending a complete inspection, they’ll try to bundle the inspection into a service, or they’ll just inspect the vehicle without the owner’s permission. Unfortunately, all of these approaches can jeopardize the customer experience, and reflect poorly on your shop. Let’s take a look at each one…
    The service advisors who shy away from recommending a complete inspection to first-time customers are typically doing so for one of two reasons: either they’re afraid that they might find something and will have to sell the customer on that service, or they’re afraid that the customer will think that they are on the hunt for additional dollars. These are the advisors who will typically tell their technicians, “He’s a first-time customer and I don't want to scare him away, so let’s just do the oil service he brought the vehicle in for. We can catch the other things the next time he comes back.” In either case this is a disservice to the customer, and a disservice to your business. Regardless of why the service advisor is afraid to sell, your customers may very well leave and be completely unaware of the risk they are taking with their vehicles, and in some cases, with their lives. Everyone loses in this scenario.
     
    The second trap service advisors fall into is trying to “bundle” the inspection. This is when the advisor tells your customers that the oil service, or whatever they brought their vehicle in for, “includes” a complimentary safety or vehicle inspection. What these advisors don’t understand is that telling your customers that an inspection is “included”, is no different than telling them you are on the hunt for dollars. There’s no doubt about it: you lose with this approach as well.
     
    The third trap advisors fall into is saying nothing at all about an inspection, then telling your customers that while doing the oil service they also inspected other things, and discovered that those other things need attention as well. Unfortunately, your customers are now under the impression that you have been doing things to their vehicle that they haven’t authorized.
     
    What’s the secret to selling complete vehicle inspections to first-time customers? It’s really pretty simple. Since fear is the primary emotion that drives most first-time customers, the first thing you need to do is put the customer at ease. You can do this by smiling, and engaging them in a friendly dialogue about their family, work, etc., when you first meet them. It’s called building rapport. Then, just like a doctor learning about the medical history of a first-time patient, you need to learn as much as you can about the service and repair history of their vehicle. This will typically raise questions about the vehicle’s service history, which will provide you with a great opportunity to build value in your inspection.
     
    You can further build value in your inspection by painting mental pictures, and putting their fears that you’re going to “try to sell them something” to rest. One way of accomplishing this goal is to close out your presentation by saying that when they pick up their vehicle, you’ll provide them with detailed notes on anything that was discovered during the inspection.
     
    When we are discussing this subject with shop owners, or advisors, we tell them that they need to approach their customers in the same way that a good doctor would recommend a complete physical to a first-time patient. Rather than raising the anxiety of the patient, the good doctors will actually put the patient at ease by taking the time to properly build rapport. They’ll tell the patient that odds are there’s nothing they're going to discover that will be of concern, that it’s a great way to take care of our bodies, and that the physical will help the patient remain healthy for a long time. Ironically, it’s no different with your patients. Just think of the vehicle as your “patient”, and the owner as a concerned parent. If you take this approach, you have my promise: you’ll be thrilled with the results, because your sales, your customer satisfaction, and your profits will all go straight up.

    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.
  11. 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.
  12. Elite Worldwide Inc.
    By Bob Cooper

    If there is one thing most shop owners have in common, it’s that they have big hearts. They typically start their careers as technicians, and as soon as they have their very own shops, they want to help as many people as they can. To achieve this goal, they network through their family and friends, and do everything in their power to get the word out into their communities. And then the inevitable happens; they wake up one morning, and decide it’s finally time to advertise. With little or no education in this field, they typically use whatever media they find to be available at the time. It could be their local newspaper, direct mail offerings they are familiar with, or something that is currently the buzz in their community, such as Groupon. Unfortunately, in most cases these choices not only turn out to be bad business decisions, but the most costly marketing decisions they ever make. Here’s why…

    First of all, although blanket advertising campaigns will typically bring in some new customers, in far too many cases they turn out to be the wrong customers. These are the people that are just looking for the lowest price, can’t afford the recommended services, or have little or no interest in preventative services. Yet the list gets even longer, because these wrong customers also commonly have unrealistic expectations, and will never return because they will always be on the hunt for a lower price. We also know that the wrong customers will typically consume more of your time, will spend substantially less money during each visit, will drive down profitability, and will bring far more stress into the lives of you and your employees. When you consider all the costs in totality, it becomes quite apparent that the cost a shop owner pays for bringing in the wrong customers really is extraordinary. The good news is, there is another path you can take to filling up your service bays.

    You can never be everything to everybody, so your first step is to identify who your ideal customers are. These are the people that drive the types of vehicles you would like to service, have the financial wherewithal to pay for the services, and see the value in preventative services. Even if you specialize in a certain make of vehicle, you will still need to identify your ideal customers. You’ll need to conclude their approximate age, their gender, their approximate income, etc., and once completed, you will need to discover where they spend their time. For example, you may find that your ideal customers spend their time at school activities, in houses of worship, or at local sporting events.

    Secondly, you will need to build your marketing and advertising strategies around your ideal customers, so you will need determine the media you can use to most effectively reach them. Furthermore, I recommend limiting your advertising campaigns to media that will specifically reach those customers. For example, if you discover that your ideal customer is a 30-45 year-old mom, you would want to use media that is directed toward youth activities and schools, along with other media that would specifically target those ladies.

    Finally, you will need to create consistent messaging that resonates with your ideal customers, so that the customer feels you are speaking directly to them. If you are targeting the 30-45 year-old moms in your community, you may want to include pictures of children, and focus your messaging on the importance of safety, since this would resonate with them. Tailoring your advertising messages to your targeted customers will lead to a better response, and a higher return on investment.

    By taking this approach, you will not only save a tremendous amount of money by not spending your hard-earned dollars bringing in customers you wish you hadn’t, but you will be working towards what every shop owner longs for; the ideal customer standing on the other side of your service counter. Your sales and profit will go up, and you will be able to develop a brand and reputation that is second to none in your community.

    The good news is that it’s never too late, because I am pleased to say that over the years we have helped hundreds of shops through the process. While your competitors are struggling with all the wrong customers, you will be saving a fortune, building a more profitable shop, and having the pleasure of dealing with customers that are an absolute joy.

    If you are still not sure whether this marketing strategy will work, you may want to look at Apple and Starbucks. I am sure you will agree that both companies know who their ideal customers are, use the appropriate media to reach them, and their messaging speaks directly to them.

    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.

  13. Elite Worldwide Inc.
    For an industry that was once dominated by males, I am pleased to have watched us evolve to a point where today we have female technicians, service advisors, managers and shop owners that are superstars in every regard. Without question, there are many powerful ladies throughout our industry that are role models for all of us. When I think of all those amazing women and the impact they have had on our industry, I can’t help but also think of a gal that’s not only changing our entire industry at the speed of light, but that has the power to take you and your shop to the top, as well put you out of business. At Elite we have a name for this amazing lady: We call her Mother Google.
    As you well know, the people in your community no longer have their auto repair choices limited to a few printed pages in a worn out directory. With just a click of a mouse, Mother Google, who’s on call 24/7, will now provide that potential customer with information on dozens of auto repair facilities. The only limits in place are self-imposed by the consumer: ­­How many pages of results they’re willing to search through, and how far they are willing to travel. So in essence, the consumer’s options are endless.
    Mother Google will also help that potential customer decide which shops they should call by scouring each website for relevant information, and then presenting the sites that she feels to be the best choices on the first page of her search results. Even though you could argue her job would then be done, she doesn’t stop there, as she will look at every word on those sites, and she will rank her search results in an order that she feels best serves the consumer. In essence, she’ll tell your potential customer, “This shop is more likely to be able to fulfill your needs than the one I’m showing you below it.” So if you’re not one of Mother Google’s top recommendations for your targeted keywords, you need to talk with a search engine optimization (SEO) expert about how you can move your website up in her rankings.
    Please keep in mind that it can be very difficult to evaluate the capabilities of one SEO expert versus the next, so I’d encourage you to ask other business owners you know if they can recommend an SEO expert that has delivered results. In today’s day and age there are many ways you can get your phone to ring, yet as I am sure you will agree, Mother Google will play an incredibly important, if not leading role.
    Beyond search results, through Google+ reviews she is now providing a platform that enables people in your community to share their experiences and overall opinions about your shop. The day is rapidly approaching when there will be no secrets due to her diligence and the insights to your customer experience that she makes accessible to the world. So while providing an amazing customer experience has always been critical to a shop’s success, it’s never been more important to ensure you offer a customer experience that’s second to none.
    And what about pricing? Not too many years ago it was a task for customers to look for price comparisons, but today she has reinvented that entire process. Not only are there companies like RepairPal that provide community-based price comparisons, but Mother Google will find prices and availability for your customers instantaneously. You can rest assured that when you call a customer with a service recommendation, and they tell you they’ll call you right back, in most cases they’re reaching out to their friend Mother Google for more information they can use to make their decision.
    Does Mother Google have weaknesses? Of course. For example, she typically provides more confusion and misdiagnosis than accurate results when it comes to providing diagnostic information. But when you judge her by her strengths, and you consider that she is available to each and every consumer at a moment’s notice, you will then see that she is not only the best friend of today’s consumer, but like many women today she is revolutionizing our entire industry, and she is absolutely critical to the success of your shop in the coming years.
    In closing, I hope you consider that people in your community now have far more choices than ever before, pricing transparency is becoming more the rule than the exception, and you have to be at the top of your game if you want Mother Google to recommend you. There’s a good chance those that fail to appreciate her power, that don’t offer an amazing experience for their customers to share and that are unable to get onto page one of her recommendations will ultimately find themselves in front of a bankruptcy judge. But if you stay sharp, and never put money ahead of people, Mother Google will help you take your shop to the top.
    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.
  14. Elite Worldwide Inc.
    By Bob Cooper

    Over the past one hundred plus years marketing strategies, and the brands that were built, were developed by two entities: The client, and the ad agency. The client would tell the agency how they envisioned their brand, and the agency would develop the advertising campaigns that would create that very same image in the minds of the targeted consumers. The tobacco companies wanted to create brands that would cause a consumer to feel good when they used their products, and the ad agencies did a great job of achieving this objective. Volvo wanted to create a brand that reflected safety, and as we all know, just about every Volvo ad sends that very same message. After one hundred plus years, that systematic method of brand creation is now dead. Not just for companies like the above, but for auto repair shops just like yours. Let me explain what has happened.

    The ability to create a brand is no longer under the control of a product or service provider, nor the ad agencies. In today’s world brands are now created by one entity more than any other, and that entity is social media. The way your shop is going to be perceived in your community is based on what is being said about you, your company and your employees on social media websites. You may believe that you provide a great service, and that your technicians are second to none. You may also invest a lot of your hard-earned money into advertising programs to try to get that message (brand) into the minds of your targeted customers. But in reality, if the chatter in social media says that you overcharge, or that you don’t live up to promised completion times, then whether you like it or not, that will become your brand.

    So here are my recommendations. First of all, accept the fact that social media is here to stay, and it is where your brand is going to be built. Secondly, you should create a plan that will have a positive impact on what is being said about you and your shop on social media sites. Obviously there are a number of things you can do, but nothing will ever trump extraordinary service. The reason companies like Nordstrom, Zappos shoes and Starbucks have such extraordinary reputations (brands) is because they deliver extraordinary service. I would strongly encourage you to review every customer touch point from fielding that first call through your customer follow-up calls, looking for ways to improve the entire customer experience.

    Lastly, I am going to suggest you do something that your competitors would never dream of doing, and that is invest 20% of your ad budget into the customer experience. This means investing in the customer waiting area, your shuttle service, refreshments, extended warranties, customer follow-up and the plan you have in place for dealing with disgruntled customers. The Marriott Corporation discovered that they were getting higher CSI scores from customers they dropped the ball with, yet the customer was pleased with the resolution, than from those who had flawless stays at the Marriott. The lesson they learned? When a mistake is made people typically don’t expect a resolution that will make them smile, so when they are completely satisfied, they are pleasantly surprised. This is why the Marriott immediately allocated a good percentage of their training resources to dealing with customers who had a bad experience. Without question, you should do the same.

    In closing, brands are no longer built on Wall Street, but in today’s world they are being built each and every day on the web. I can only hope we all agree that social media is here to stay, so you need to invest in making the customer experience incredibly positive, because if you do, your customers will do what agencies used to do, and create an extraordinary brand 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 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
    If you what to sell more service, drive up employee morale and productivity, and see higher profits, then this is one article you may want to read. I realize that I just made a pretty substantial claim, but I sense that by the time you finish this article, you will agree... 
    Rudi Rudloff, who is now an Elite Coach, approached me a number of years ago when he was one of our coaching clients here in San Diego. He said that since his shop was only open Monday through Friday, his plan was to have all of his employees come in on a Saturday so that they could spend the entire day together. His objective was to not only learn from his employees, but to allow them all to learn from one another as well. He ran one of the top shops in America and I always admired the way that he thought, but I told him that I felt this was a particularly great idea. He then asked if I had any additional thoughts, and I suggested we invite a few of his customers as well. He liked my recommendation, so here’s what happened…
    His five techs showed up, along with his two advisors, his lot attendant and his secretary. Shortly after that, the five customers that he invited showed up. The shop was immaculate in every way, he hosted a breakfast, and arranged all of the chairs in a nice big circle. 
    Rudi and I started the session by asking the customers questions about their expectations. Not only were all of his employees taking a lot of notes, but for all of his employees to be able to hear the customer expectations directly from their customers made the entire meeting a huge win in itself. After spending about an hour and a half with the customers, Rudi thanked them for attending and walked them to the door. 
    We then spent the entire day analyzing every single part of the business, from the time a potential customer makes that first call, all the way through the customer follow-up calls. What I found to be the best part about the entire meeting was that every single employee was exposed to every single part of the customer and vehicle process, and what they all learned, was priceless.
    The technicians were able to better understand what advisors have to go through each and every day, and the recommendations they provided regarding how to make the advisor’s job that much easier were all well received.  Additionally, breaking down and analyzing what the technicians go through with each and every vehicle enabled the advisors to provide the techs with their recommendations, while at the same time this process gave the advisors a much deeper appreciation for what a technician goes through every day. 
    The day ended mid-afternoon, and the results from the meeting were no surprise. Over the course of the ensuing weeks their car counts went up substantially, they sold more service, and there was an increase in employee morale, productivity and profits. As a matter of fact, Rudi held his annual shop meetings each and every year until he finally sold his business. 
    Giving each and every employee the opportunity to see and understand the big picture worked for Rudi, and I am confident it will work for you as well.
    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.
  16. Elite Worldwide Inc.
    When your techs come to you to tell you they’re stumped, and you give them a recommendation, you’ll lose regardless of the outcome. If you solve the problem, you’ve sent a message to the tech that you’re more knowledgeable than they are, which is not going to build their confidence. But then it gets worse; you’ve also taught them to come to you when they're up against a wall. This is a lose-lose situation, in that if your recommendation doesn’t solve the problem, the tech will come back to you looking for your next recommendation, because you’ve now assumed ownership of the problem. 

    As a business owner, you need to invest your time working on the business, not working on cars or solving problems for your techs. The answer is a lot easier than you may think. The first thing you need to do is create a system for solving technical problems in your shop. Once you have the system outlined, you’ll need to meet with all your techs and tell them something like this: 
    “Guys, I realize you all know we each have a job here at Elite Auto Service. Mine is to set the goals of the company, hire remarkable people like you, and to provide you with a lot of opportunities. Your job is to accurately diagnose the vehicles, and then get our customers back on the road just as soon as possible. Unfortunately, I’ve been spending way too much time helping you do your job, which means that I don’t have the time needed to do my job to the best of my ability.”

    “So what I’ve done is put together a system that you guys can use to solve technical problems without my help. Here’s how it’s going to work: If you get stumped with any diagnosis or repair, the first thing you’ll need to do is ask one another for any ideas. If no one in the shop has a quick answer, I want you to go to the second step, which is checking our Mitchell Repair service. If you can’t find the answer there, I want you to go to the third step, which is to call our technical support line. Now, if for whatever reason, you still can’t come up with the answer, it’s time to go to step number four, which is to post online.  If you still can’t find the answer, then it’s time for step five: Partner up with another one of our techs and commit to resolving the issue together, because you know as well as I do, there’s a good chance the answer is right under your nose, and sometimes all we need is a second set of eyes. At this point you’ll need to hit the reset button, and start at the very beginning by re-confirming the customer’s complaint, and then going through this entire problem solving system one more time.”  

    “Now if for whatever reason you still can’t solve the problem, then you’re more than welcome to come see me to ask if I can help. But if you do, bear in mind that I’m going to ask you what you have done to solve the problem so far, and I’m going to have an expectation that you’re going to tell me you’ve followed each and every one of these steps.”

    “So here’s what I’m going to do next: I’m going to put each of these steps down on a piece of paper, and pass out copies to each of you. Then we’re going to have another meeting so I can learn what you think we need to add, subtract or change on our list. As soon as it’s finalized, I’m going to give each of you a copy, and I’ll have an expectation that you’ll use it. If you do, I am confident you’ll be able to solve problems a lot more quickly, you’ll flag more hours, and I’ll be able to do what I need to do: Invest my time in finding ways to provide you with all of the opportunities you’ll need.”  

    In closing, I know there is no one single problem solving system that will work for every shop, but hopefully this information will give you the start you need to solve the age-old problem of your techs relying on you, when all they need is a simple system they can follow.
    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.
  17. Elite Worldwide Inc.
    BY Bob Cooper
    Far too many shop owners don’t measure Customer Satisfaction in their auto repair shops. It’s not that they’re not interested in the results, it’s just that they’re not exactly sure how to do it. Unfortunately, the price they pay for not measuring their customer satisfaction is often staggering. To complicate things even further, the Gallup Association released a report which stated that most of the ways used to measure CSI are beyond bad; they’re actually worthless.
    As a business owner, I am sure you will agree that your CSI (Customer Satisfaction Index) goal needs to be 100%.  You also need to establish a Minimum Level of Acceptable Performance with your team that is set no lower than 95% (With the understanding that your employees can “begin” to earn CSI rewards on an incremental scale once they pass the threshold of 97%). Now here’s where most shop owners get into trouble: they’re not sure what counts as a point against the CSI score. Now I realize that there are many different ways to measure customer satisfaction, and many of our clients have some relatively well-designed systems in place. But if you’re just looking for a simple, easy-to-use method, here it is…
     
    At Elite we recommend that you classify any comeback or customer complaint as a “failure”, and you should count that failure against the car counts for the measured period. For example, if you process 100 vehicles, you should not incur over five complaints, including any comebacks due to mechanical problems that were not properly solved during the initial visit, misdiagnosed, or simply overlooked.  If the vehicle was repaired six months ago, and it fails today, it still needs to be considered as a failure for the current period, even though your existing employees may not have had any control at the time the service was originally provided to the customer. The rationale is two-fold. One, the failure will be offset by any poor work done today that may not fail for months to come. The second reason we need to consider it a failure is because your income statement is blind to what, where and when. All that we do know is that the comeback is a failure “today”. Part failures also need to be counted against the CSI score. Not only is your financial statement blind to part failures, but your overall CSI score should take a reasonable percentage of part failures into consideration.
    So warranty claims, mechanical failures that include part failures, customer neglect (i.e. we failed to educate them on their responsibility), etc., are easy to classify as failures with this type of CSI scoring. It becomes more subjective when you are placing your customer follow-up calls. I would highly recommend that you ask every customer, “How did we do?” If their response is positive, and they have nothing to say in the form of criticism, then it’s reasonably safe for us to say that the customer is a happy customer. Otherwise, it’s a failure.

    So, what we need to strive for are fewer comebacks, zero complaints (customer returns with dirty carpet, upset that vehicle wasn’t done on time, felt your prices were too high, etc.), and follow-up calls that end with your customers saying they were pleased. Although you may have to massage the percentages and the criteria a bit, this method is a great starting point for you and your company, and is fair to both you and your employees.
    You should also ensure that all of your employees know that if there are any comebacks, or complaints that are knowingly not reported, then there will be a substantial penalty toward any reward they may be entitled to. If any employee is guilty of not reporting a complaint or comeback a second time, they go on report. A third failure to report should be considered grounds for immediate dismissal. You need to make sure all your people understand that openness and honesty in reporting are critical to improvement. Also let them know that their income, along with the success of your company, will always be predicated on continual improvement.
    Lastly, I would like to leave you with a couple of thoughts.  Far too many companies complicate their methods of monitoring and measuring customer satisfaction. They typically follow up with their customers, and they ask a series of predetermined questions. Rather than asking customers questions that are based on our interests, we should let the customers share their thoughts in any way they would like, and they should be able to address any part of their customer experience.
    Many shops feel that anything less than 100% is completely unacceptable, and I have to politely disagree. Here’s why. First of all, the system I just outlined allows for a 4% failure that takes part failures into consideration. Until we have perfect parts and perfect people, we will always see at least some failures. In addition, we know that no matter how hard we try, there will always be some customers who we just can’t satisfy. No one said it better than Bob Lutz, the past Vice President of GM’s European Division and the past Co-Chairman of Chrysler, who once said, “It is our goal to satisfy 100% of the satisfiable customers.” Please note that he said, “satisfiable.” As your next step, take this plan, put it into place, and you will be on the road to building a more profitable, successful business, while generating happier customers at the same time. On that, you have my promise. 
    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.
  18. 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. 
  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.
    Over the years I have had the opportunity to work with many of the top shop owners in America, and I have met thousands of owners who are living from day to day, and then unfortunately fail. There have been a lot of discoveries along the way, so I would like to use this article to share what I feel to be the top 7 reasons why most shops fail.

    1. Pride. There is no question that pride plays an important role in a shop owner’s success. It causes them to make sure that their shops are clean, vehicles are properly repaired, and the customers are pleased with their services. Certainly there is a place for pride, and all successful shop owners have it, but they also know when to turn it off. They turn it off by admitting to their mistakes, complimenting their employees for doing a job better than they could, and as Henry Ford did, they accept the fact that they can’t build successful businesses on their own. The shop owners who are unwilling to set their pride aside when it’s appropriate to do so, are the owners who inevitably fail.

    2. Fear. As with pride, fear also plays an important role in a shop owner’s success. The fear of not doing a good enough job for their customers, the fear of a new competitor moving into town, and the fear that comes along with investing in themselves and their employees, are all shared by the top shop owners in America. What separates them from those who fail is that they face their fears head-on, and they take the proper action to ensure their success. The shop owners who fail are paralyzed by their fears, they take no action, and then their worst nightmares come true. They lose their key employees, their car counts drop, and their profits disappear.

    3. Not realizing what their jobs are. Successful shop owners know that the best way for them to build their companies, and help their customers, is by doing what they should be doing as business owners: Setting the goals of the company, developing the plan, hiring the superstars, bringing out the best in their people, and ensuring the success of the company. Those who own failed shops typically have big hearts, but instead of doing what they should be doing, they are found under the hoods of automobiles, chasing parts and sweeping their parking lots. These are all things that need to be done, but by other people, not by the owners.

    4. Not knowing when and how to invest. Most shop owners are quick to invest in equipment, inventory, and in most cases, their marketing programs. Of course these are all investments that certainly need to be made. Beyond these types of investments, the top shop owners constantly invest in their most important assets: Themselves, and the people who work with them. Whenever I look at the financial statements of a struggling or failed auto repair shop, one thing is almost certain: There is a glaring absence of any investment in their own education, and in the training of their staff.

    5. The absence of systems. Successful shop owners have clearly defined procedures for answering every phone call, writing up their customers, inspecting vehicles, recommending and selling services, performing services, car delivery and customer follow-up. The shops that fail rarely have systems in place. I have found that their employees typically have their own ways of doing things, which is a guaranteed recipe for failure.

    6. Trying to be everything to everybody. Most shop owners try to please everyone, and that’s good. But the top shop owners realize that bringing in the wrong customers will drive down their profitability, erode morale, and wipe out their profits. They know exactly who their ideal customers are, and they target them with all of their advertising programs. The shops that fail are more interested in filling up their service bays than in bringing in the right people. While they are thinking of vehicles in the bays, the top shop owners are thinking of the right people and the right vehicles.

    7. The absence of goals. By having clearly defined goals, the top shop owners are passionate about their mission, they make better decisions, they do a far better job of hiring, they have happier customers and they put more money on their bottom line. The shop owners who fail operate their shops from week to week, they run up debt, they burn out, and they ultimately close their doors.

    In closing, if you want to build a more profitable, successful business, as I am sure you know, there are no guarantees of success. The one promise that I can make is that business, as with life, is all about choices. If you set your goals, and if you put fear and pride aside, you can build an auto repair shop that is second to none. Others have, so I know you can as well.

    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.
  21. Elite Worldwide Inc.
    By Doris Barnes

    In a world where service advisors don’t want to be considered salespeople, we need to search our souls. Why is it that “selling” has become a dirty word? Why is it that we cringe at the term “sales?” It’s simple! Most service advisors do what they do each day because they care about people. To become a “salesperson”, in their mind, means to become pushy and overbearing. To most, it means that their interest must shift to one thing and one thing only… The customer’s Visa card! So, what’s the best way to overcome this misperception? First and foremost, we need to get something clear: Selling is helping people through a difficult decision making process.

    Let’s face it: Many of our customers are poor decision makers. How many times do customers come into your shop, only for you to discover that they’ve been neglecting their vehicles? In many cases, this is because a service advisor has never helped them truly understand the value of vehicle maintenance. These customers who have a pattern of making poor decisions are the ones who need our help the most! True salesmanship is always going to put the customer’s best interest ahead of everything else. If selling starts violating ethics, in my mind, it is no longer selling; it’s stealing.

    Over the years as an advisor, I discovered that in most cases, a customer’s decline in vehicle maintenance happens slowly. This gradual decline can be primarily attributed to the failures of the advisors. Rather than genuinely caring about what’s in their customers’ best interest, service advisors are acquiescing to their customers with the attitude that, “It’s the customer’s money, it’s the customer’s safety, and he can do whatever he wants”. This is the easy way out; the path of least resistance! We need to ask ourselves…is this right? What if this customer was your grandmother or your daughter? Would you just roll over and accept that they made the wrong decision? Of course not!

    So, where do we go from here? Well…service advisors need to become true salespeople. In large, sales skills come into play once you really grasp how people behave and react in a buying environment. When we sell auto repair, we have to keep in mind that we’re selling something that isn’t pleasurable for people to buy! Many times, we’re also selling an intangible. Talk about tough! We need to learn how to sell in a way that helps our customers see the true value of each service, because in order for the customer to authorize the service, the perceived value of that service needs to exceed the value of the money the customer will have to spend.

    We always need to ask ourselves, “How will the customer win by saying, ‘yes’?” This is, after all, what your customers care about most, in that they will always be thinking, “How do I benefit?”
    If we, as salespeople, can master selling benefits instead of parts and labor, then we’re one step ahead of the crowd. Let’s work together to help our customers, because they need us! After all, we are the experts… right?

    This article was contributed by Doris Barnes of Elite, a former industry-leading service advisor who is currently Elite's Director of Customer Relations, and one of the expert trainers that helps advisors through the Elite Masters Service Advisor Training Course.

  22. 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.
  23. Elite Worldwide Inc.
    By Bob Cooper
    All great companies have one thing in common: They realize industries and consumers need change, so they follow their customers. Apple provides a great example. As we all know, when Apple started they were a computer company, but when that industry began to decline, Steve Jobs was able to see that his targeted customers were investing in music. This is why Apple Computers became Apple Inc., is why they reached a point a few years ago where their online music sales exceeded their computer sales, and is why today they are in the mobile device business. In essence, they transformed to meet the needs of their customers. IBM and American Express are other great examples. 
    Your business is no different. Over the decades the auto repair business transformed from a “we fix anything” business that rebuilt every component into an industry that installed remanufactured parts. We then transformed from a repair industry into a maintenance-driven industry. If you bring hybrids and electric cars into our discussion, the change becomes even more dramatic. As this progression continues you will be seeing your customers, and repairing their cars, far less often. Interestingly enough, most shop owners are not too concerned because they simply believe that all they will need to do is ratchet up their marketing efforts to bring in more new customers. Unfortunately, there is typically a finite number of potential customers in any marketing community, and your competitors have the same plan in place. So rather than fighting the inevitable changes, or doing business the same old way until your business is out of business, here are my recommendations…
    First of all, shop owners typically diversify for one of two reasons: They do it out of desperation, or out of inspiration. The ones that do it out of desperation are the ones that take the leap when they are struggling to pay their bills, and are scrambling to find any way to bring in a few more dollars. The ones that diversify out of inspiration are the ones that see the change in the wind, and take the necessary steps to ensure their continued success.
    However, there is no one road that is right for everyone. If you are in a specialty business such as transmissions or suspension, you may want to consider transitioning into general repair. You already have the most important part, which is your customer base. Another option is to consider the exploding world of infotainment. As I am sure you will agree, if you walk into any new car showroom today you will find that just about every new vehicle has a wealth of entertainment features, along with navigational and communication features. So the question is: Who is going to not only be servicing these components, but who is going to be offering upgrades, and handling the installation of the newest state-of-the-art components that the drivers of older vehicles would love to have? Someone is going to do it, so why not you?   
    I would like to leave you with a story that has a powerful message. It is argued that at one time Bill Gates said, “If Santa Fe Railroad would have realized that they were in the transportation business, and not the railroad business, today we would have Santa Fe Airlines.” This is a message we should all take to heart, because the one thing that is certain is that our industry is going to go through many more dramatic changes. The first to embrace this reality, and make the necessary changes, will become the industry leaders for decades to come.
     
    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
  24. Elite Worldwide Inc.
    In this quick video superstar shop owner and Elite Business Development Coach James Stephenson shares a tip on hiring great techs that has worked wonders for his award winning shop.
     
    For additional help hiring the right techs, learn how you can join an online shop owner peer group led by an industry leading shop owner like James through Elite's all-new service: Elite Synergy Groups
  25. Elite Worldwide Inc.
    By Bob Cooper

    One of the single greatest challenges shop owners face today is finding and hiring the superstars. Regardless of whether you are looking to hire technicians or service advisors, here are some tips that will help you hire the stars.

    1. Accept the fact that with rare exception, the stars you are looking for are already working, and are reasonably satisfied. This doesn’t mean that they won’t be open to a conversation with you, because many of them will be. It’s your responsibility to identify those stars, and then reach out to them. Even if there is little or no interest on their part after speaking with you, you still win, because you have started a relationship. Not only may the time come when they reach back out to you, but I have learned over the years that the stars know the stars, so they may be able to provide you with the names of some other good candidates who would be interested in your offer.

    2. You should never offer someone a job, but should instead offer them an opportunity to join a company like yours. Beyond just a competitive wage, you will need to provide a compensation and incentive package that includes paid vacations and holidays, paid sick days, uniforms and ongoing training. In addition, you will need to provide the opportunity for growth and income advancement, security, rewards for tenure (such as retirement programs), and of course, leadership. Bear in mind that anyone can offer them a wage; what you need to offer is a package that shows that you really do care about the people who work with you. The rule that I have lived by for decades is that if you put out peanuts, you’ll get monkeys. The stars produce profits, whereas the monkeys produce debt.

    3. Whenever there is a shortage of skilled labor, you not only have to make the candidates an attractive offer, but you need to remove as many barriers as possible. Change is scary for most, especially if they have been with the same shop for years, so you need to be well aware of their fears. No matter how good a tech or an advisor is, one of the greatest concerns they’ll have is that you’ll be unable to deliver. A method I’ve used over the years is providing a really attractive guarantee for a number of months. Most shop owners are hesitant to do so because they fear that if the employee doesn’t produce, it will cost them a fortune. What they don’t realize is that if they do a better job of qualifying the candidates, and if they accept the fact that they can always terminate an underperformer, their concerns should diminish dramatically. As business owners, we need to both set our fears aside and reduce the fears of the candidates. At Elite we are open and upfront with all candidates by telling them that on a predetermined date the hefty guarantee will be reduced to $XXX, and that we have every expectation that by the predetermined date they will be earning well more than the guarantee.

    4. Last but not least, you should let the candidates know about the culture of your company. The stars you are looking for may have well-paying jobs, but there is a good probability there is a vacuum when it comes to the culture of the company they are working for. If you let them know that you are committed to ethics, and that you and your entire team live by a principle that you will never put money ahead of people, you will discover you are able to hire the superstar you’ve been looking for.

    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.


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