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Elite Worldwide Inc.

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  1. 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.
  2. Elite Worldwide Inc.
    By Bob Cooper of Elite

    Many years ago when I was still working on cars, I came to the realization that I would someday own my own shop. I also realized that in order to do so, I would first have to learn how to sell service. The challenge I faced at that time was not only did I not know how to sell, but I also had little respect for salespeople, because I viewed them as people who would take people’s money, and more often than not do little in return. So I was actually faced with two challenges; having to somehow learn how to sell, and also deal with my internal struggle of becoming part of a profession that I had little, if any, respect for. So here is what I did.

    I went to the local book store looking for books that would help me learn how to sell, and hopefully help change my perception of selling at the same time. To my amazement, I found a book that I knew would be perfect for me. It was written by the nation’s top car salesman at that time, and I thought even though he sold cars instead of service, it was likely more closely related to the auto service industry than any other book I would find. I bought the book, I hurried home, and I began reading each and every word. As you can imagine, I was thrilled with what I was learning, so I was circling key phrases, and taking pages of notes. And then I came across a part I will never forget, where the author said that every time he was selling a car, he would look across his desk at the customer, and he would view them as a bag of groceries. He said the reason he would do this was to convince himself that if the customer didn’t buy that car that day, he would not be able to eat dinner that night.

    As soon as I finished that passage, I folded up the book, and I put it away. To this day I never finished the book, but it still sits on my bookshelf for one simple reason; to remind me of everything I never want to be. With all due respect, that author may have transferred a lot of titles, and he may have ran up the numbers, but the one thing that he appears to have forgotten is this: The people he was dealing with were your moms and dads, and your brothers and sisters. They were people with hearts and souls, not just commodities, or a means to an end.

    Ironically, at the same time I was also captivated by two people; the late, great John F. Kennedy, and the late, great Martin Luther King, and what I learned from these two was something that has been with me ever since. It’s the understanding that selling really has nothing to do with money. It never has, and it never will. You see, what selling really is, is helping people believe in what we believe. President Kennedy was able to unite America by helping us believe that we were the greatest nation on earth, and Doctor King was able to help us believe that all mankind is equal, regardless of the color of our skin.

    Over the decades I have hired many superstars, and as a company we have trained tens of thousands of advisors, so I can tell you with a clear heart that the best advisors in America have a number of things in common. Most importantly, they never put money ahead of people, and they understand that just because someone authorizes a repair or service, it doesn’t necessarily mean that they were sold on the service. The true superstars will always sell from their hearts, and they know that when that magic moment occurs, and the customer believes in what they believe, then and only then, have they closed the sale. The money? Interestingly enough, there is another principle that I have learned over the years, and it’s another one that is timeless. It’s the one that says, “If we do the right things for the right reasons, the money will follow.” Selling service is one of the easiest and most rewarding jobs on earth as long as you believe that the service is the right choice for the customer, and as long as you sell… from your heart.

    For additional help increasing your shop's sales and customer satisfaction in a professional and ethical way, learn more about Elite's industry acclaimed Masters Service Advisor Training.
  3. 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
  4. Elite Worldwide Inc.
    By Bob Cooper
     
    One of the challenges that shop owners have faced for years is finding and hiring qualified technicians. Here are 5 of the most successful techniques that I used to find the superstars when I was still operating shops.
     
    1. Make an offer that is hard to refuse. Go to your local dealerships, introduce yourself to the service manager, and say something like this: “Larry, the reason I wanted to speak with you is I am looking for a superstar technician with ___ experience. Now for the purpose of clarity, I’m not looking to recruit any of your employees; that’s not my interest. What I’d like to do is speak with any of the superstars who have worked with you in the past, and for whatever reason, are no longer working with you here at your dealership. They may have gone on to another shop or dealership, and who knows, at this very moment they may not be very pleased with the company they’re currently working for. Now if you’re able to provide me with their names and contact info, or if you just reach out to them and have them contact me, this is what I’ll do for you… If I hire them, I’ll give you $2,000 on the first day they show up for work, and if they’re still with us after their 90-day probation, I’ll give you another $2,000. In essence, Larry, you can earn up to $4,000 for doing nothing more than putting me in touch with one of the superstar techs who has worked with you in the past, or that you may know of in our community.”
     
    Now before you jump to the conclusion that you’d never pay $4,000 as a referral fee, consider that not only is it an insignificant amount when you consider how much you’ll be paying a top tech, but just think of how much it will cost you if you hire the wrong tech. I have always been intrigued how so many people will not lay down a single dollar for a lottery ticket where they could win ten million dollars, but as soon as that jackpot gets to 100 million, you guessed it: People line up to buy the tickets. Interesting, isn’t it? It’s as though they’re saying “I’m not interested in ten million dollars, but when you offer 100 million, now you are talking real money, so you have my attention!” I have learned over the years that it’s the same with referral fees. The reward you offer has to be large enough to not only capture their attention, but it has to have that wow factor that brings results.
     
    2. Ask every applicant for leads. When you have a tech or advisor filling out an employment application, always ask that they list two great techs they’ve worked with, or presently work with, as references. Not only can those references serve as a good source of info when you are performing your reference checks, but if you build relationships with the references during your calls, they may very well become employment candidates as well.
     
    3. Sponsor a tool raffle. Tell your local tool truck driver that you will sponsor a raffle for a specific tool set, test equipment, etc. that has a value of $500. Now here’s how it works: You pay for the tools, the driver is able to sell raffle tickets at $5 each, and gets to keep all the ticket sales as well. The techs fill out each raffle entry with their contact info, and you get their names, phone numbers and email addresses.
     
    4. Go to where the techs in your community go. Since techs are likely to have a quick lunch somewhere near their shop, consider grabbing a bite to eat at the fast food restaurants that are close to the shops and dealerships in your community. When the techs walk in at lunch time, all that you will need to do is introduce yourself to them, and strike up a casual conversation. Then you’ll just need to tell them you are looking for a superstar tech, hand them a business card, and the process has started.
     
    5. Turn your employees into recruiters. Just like the offer you made to the dealership service managers, make an attractive offer to your employees as well. “Guys, you all know we need another technician, and I’d love to find someone that can not only produce, but someone that all of you enjoy working with. Now as you can imagine, I can invest a good amount of money in a recruiting campaign, but I’d rather see the money go into your pocket than into recruiting campaigns. So here’s what I’ll do: I’m sure you guys know other techs in the community, and I know that you meet them at training courses as well, so if you refer a really great tech to me, and if I hire them, then I’ll give you $2,000 on the first day they show up for work, and if they’re still with us after their 90 day probation, I’ll give you another $2,000. In essence, you can earn up to $4,000 for doing nothing more than helping me find another superstar just like you guys.”
     
    In closing, the superstars are out there. All that you need to do is connect with them, then share your goals, your Mission Statement, the culture of your company, and how you can provide them with what every superstar is looking for: An opportunity to grow with an amazing shop, and help a lot of people along the way.
     
    For additional help finding and recruiting qualified techs, learn how you can team up with one of the top shop owners in the country through the Elite Coaching Program.
  5. 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.

  6. 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.
  7. Elite Worldwide Inc.
    By Bob Cooper
    When car counts aren’t what they need to be, most shop owners will pump more money into their marketing efforts. But before you invest one more dime in your marketing campaigns, you should first make sure that you’re doing a good job of converting your current leads into customers. At Elite, we’ve discovered that the number of phone leads lost by most shops is staggering. They’re lost by not having enough staff available to properly handle the calls, by having poorly trained receptionists or service advisors, by having service advisors who are content with either their workload or their income, etc.  Needless to say, putting more money into your auto repair marketing is not going to fix these problems.
    The solution is simple.  Make sure you have clearly defined car count goals, and hold your advisors accountable for reaching them. You should ensure they keep a simple log that shows why they feel they lost each lead. The log options should include: The caller didn’t have the vehicle, they didn’t have the time to bring the vehicle in, they were price shopping, and they were not the decision maker. At the end of the day, discuss these lost leads with your staff, and decide on the appropriate course of action.
    Lastly, don’t overlook the value of having a couple of friends call in as mystery shoppers, and recording their conversations. So before you spend one more dime on auto repair marketing, let’s make sure you’re not losing those priceless leads that you already have.
    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.
    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.
  9. 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.

  10. Elite Worldwide Inc.
    By Bob Cooper of Elite
    As business owners, our best teachers will always be our employees and our customers. They understand many components of our businesses, and in most cases, they really do care about our success.  Learning from our employees is relatively simple. All that we need to do is pay attention to their passing comments, and engage them during our employee meetings and reviews. What I would like to do with this article is provide you with a step-by-step guide that will help you do what every successful business owner does; learn from your customers.
    1. First and foremost, you need to set customer satisfaction goals, as well as minimum levels of acceptable performance. For example, your goal would be 100%, and the minimum level of acceptable performance would be set at 96%.
    2. Let your employees know how you will measure results. It’s your call, but I would encourage you to categorize any type of customer dissatisfaction as a failure, regardless of the cause.  For example, if the customer says they felt the price of the repair was too high, it would be a failure because the advisor did not do an adequate job of building value in the service. Now I understand that there will be some occurrences (such as a part failure) where the employees would feel they should not be held accountable for the customer being dissatisfied. It’s those rare occurrences that cause us to set a minimum level of acceptable performance. In essence, by setting a minimum level of acceptable performance at 96%, those rare occurrences are taken into consideration.
    3. Implement a company wide reward program that is based on customer satisfaction scores, and make sure all of your employees are able to participate. This will help incentivize the team effort you need.
    4. Conclude who will be making your customer follow-up calls. Although there is tremendous relationship-building value in having your advisors follow up with their customers, the downside is that your customers may not be candid with them. Add to that, your advisors will have a conflict of interest if you are providing them with an economic incentive. I have found that the best person for making the calls is someone with the right personality, and who believes in you, your company and your people. When I was still operating shops I found that the perfect candidates were the customers who loved us, and who were looking to earn a few extra dollars a week.
    5. Conclude how you will compensate the person you hire, and where the calls will be made. Ideally you will pay your representative a flat hourly rate, ensuring that they will invest adequate time on each call. I also believe, when possible, the calls should be made from your shop. Not only will this allow your customers to see your phone number displayed on their caller ID, which adds to your professionalism, but if the customer has a question or concern, they can be transferred to your staff immediately.
    6. Conclude who you will call and when. At Elite we believe that all first-time customers, and all repair and/or warranty customers, should be called within 72 hours. Out of respect for their time, we do not endorse calling repeat customers who had simple maintenance services performed.  Although these calls should never be perceived as “sales” calls, if a customer declined a major safety repair, we do encourage you to have your representative ask the customer if they have had the repair performed, to ensure their safety and well-being.
    7. Ask the right questions. I realize that most shops ask a series of questions about the behavior of their staff, the quality of repair, promised-times, etc. We look at it differently. Our position is that you should say something as simple as, “I just wanted to follow up with you and ask; ‘How did we do?’” Our reasoning for this approach is really pretty simple. Rather than leading the customer with specific questions, it will allow you to learn what is important to your customer. If it is important enough to be at the top of their mind, then without question, it is exactly what you need to hear. This is how we learn, and how we build really great companies 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 can learn more about Elite by visiting www.EliteWorldwide.com.
  11. Elite Worldwide Inc.
    By Bob Cooper

    If you want to build a successful auto repair business, you will need to have a number of things in place, yet nothing is more important than having service advisors who can sell in a professional and ethical way. In today’s competitive environment you’re seeing vehicles less frequently, customers have greater access to information, and they have choices unlike ever before. So here’s a guide to help you hire the superstar advisors who will take your shop to the top:

    1. Look for talent. When you are looking for the superstars, never forget: talent is king. Talent is something that can’t be developed or taught, so you need to make sure that the prospects you are interviewing truly are “people people”, and that they naturally smile. Otherwise, you’ll spend years trying to develop your advisors into something that they may never become.

    2. Look for drive. Every superstar who I have met or hired has been goal-oriented, has had a positive attitude, and has been competitive, quick-witted, persuasive and driven. Similarly to talent, these are all personality traits that can’t be taught, so be sure to look closely during your interviews.

    3. Look for a track-record of success. Henry Ford once said, “Tell me what you have done, not what you can do.” At Elite we take this a step further by saying it’s not just what prospective employees have done, but more importantly, what they have accomplished in their careers. For example, the fact that someone has been an advisor for years isn’t nearly as important as the sales growth they have brought about, records they have set, etc. This is why you need to quiz them on their accomplishments. If they have been in the business for a few years, and they can’t give you any specific sales accomplishments, then there’s a good probability that there won’t be any meaningful accomplishments achieved if they work with you either.

    4. Look for a win/win attitude and ethics. Over the years I have discovered that there are basically three types of salespeople. First, there are the win/lose advisors who care about their own needs, at a cost to the customer. These are the advisors who will drive up your sales, and erode your customer base at the same time. The second category is the lose/win advisors, who are overly sympathetic, and who will give your store away in order to please each and every customer. The real superstars are the advisors who fall into the win/win category, because they have the ability to close sales, will make sure your customers are satisfied and make the right decisions, and will help you build a more profitable auto repair business. Ethics is the hardest trait to judge during the interview process, which is why we are such strong supporters of pre-employment behavioral testing.

    5. Pay close attention to their interests. Although there are always exceptions, service advisors who are looking for an hourly rate, a salary, or a big guarantee, may very well be looking for a job rather than an opportunity. On the other hand, the advisors who are interested in commission-based pay are typically self-motivated, and will help you drive up your sales.

    6. Take them for a test drive. You should hand every applicant an estimate and have them sell you a service. I have discovered over the years that if someone can’t do a good job of selling us during a role-play, they won’t be able to sell our customers either. You should also have them do a role-play where you act like a first-time caller. I can tell you from first-hand experience that I have interviewed many service advisors who aced the interview, and then miserably failed during the role-plays.

    7. Take advantage of pre-employment testing. There are a number of tests you should consider, but the three at the top of our list would be pre-employment physicals, drug screenings and behavioral assessments. At Elite we have found that the behavioral assessments are priceless in that they are inexpensive and quick, they can be taken online, and they reveal many strengths, weaknesses and propensities. In addition to revealing how well your prospective employees work under stress, and with other people, these tests can also detect irregularities in honesty, which could be an indication of questionable ethics.

    Follow these tips, and you’ll have a staff full of service advisors who drive up your sales, while always having your customers’ best interest in mind.

    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
  12. Elite Worldwide Inc.
    By Bob Cooper
    As we all know, the use of illegal drugs has been around for many years. From the early part of the last century, all the way through the mid-seventies, the only illegal drug that was worthy of discussion among shop owners was marijuana. During those times, even cases of marijuana use were few and far between. It was during the early eighties when our nation (and our industry) began to see a number of other drugs emerge, which resulted in many shop owners deciding to implement drug-free workplace programs. I am proud to say that I was one of them, and our objective was quite simple: To protect our employees, and our customers, from the accidents that can be caused by the use of illegal drugs. Interestingly enough, all the top attorneys in America pretty much agreed that drug-free workplace programs would be a gray area, in that we had to protect the employee’s right to privacy, but also had to protect our staff and customers. This meant that we needed to be very careful about how we administered the plan. From that point on questions continued to arise regarding how and when to test, and what we were able to do if someone did test positive.
    Now here we are just a few decades later, and not only are there many more types of illegal drugs on the streets, but as you well know, in some states marijuana is legal. Add to that, many users are now abusing prescription drugs with the help of questionable doctors, and the use of illegal drugs is more socially acceptable than ever before. So the question is, what are you going to do in these changing times to effectively safeguard your employees and your customers? And what about your business?  As I am sure you’re aware, an employee’s drug use can lead to injuries and losses that will drive up your insurance rates, it can lead to absenteeism, poor performance, and even theft. If you’re unsure of what to do, then you’re reading the right article.
    Let’s start with some basic understandings. First of all, we need to recognize drug use as an illness long before we consider any laws that may be broken, or damage caused to our businesses. By taking this approach, I feel we can not only better understand those that use recreational drugs (both legal and illegal, as well as alcohol), but we can better understand how to deal with those that use drugs.
    Secondly, we need to understand that by hiring someone that uses illegal drugs, not only are we running the risks that are associated with employees that use illegal drugs, but we are also knowingly hiring someone with an illness, and that is knowingly breaking the law. This is one of the many reasons you should consider pre-employment testing.
    I also realize that laws will vary from state to state, and many states now view drug dependency (including alcohol) as an illness. This means that by employing a drug user, you may not only find yourself involved in a situation where you are unable to terminate the employee, but in some cases you may be responsible (in part) for their rehabilitation.
    As a shop owner you need to conclude what type of people you are looking to hire, and the kind of culture you are looking to create in your shop. I sense you would agree that abstinence from non-prescription drugs is not only a testimony to someone’s self-discipline, but it is a reflection of their values as well.
    Lastly, I would recommend speaking with an employment law attorney regarding the discrimination considerations when it comes to applicants that use legal, recreational drugs such as alcohol, and in some states, marijuana. You should also discuss a pre-employment drug testing program with them, as well as an ongoing drug-free workplace program that you can implement. 
    In closing, by implementing a drug-free workplace program in your shop you will not only be better safeguarding your employees and customers, but you will be sending a very powerful message to your community that you are principle-centered, and that you really do care about people.  Drug use may very well become more common than less common, so I would encourage you to do what your competitors aren’t doing, and take the next steps to solidify your shop’s drug-free culture.
    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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  13. 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.
  14. 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.
  15. Elite Worldwide Inc.
    By Bob Cooper

    In today's competitive environment you need to make the most of every opportunity that you have at your disposal to generate more sales. Follow these 5 tips to convert more first-time callers into happy customers.

    1. While your competitors are trying to sell their first-time callers on the repair, you need to take a different approach, and sell them on you. If the caller doesn’t believe you’re the right person to help them, then regardless of whether or not they believe the repairs need to be done, they’ll go somewhere else.

    How do you sell a first-time caller on you? It’s not that difficult. The first thing you’ll need to do is assure you have the right attitude, because that alone will put a smile on your face, and customers prefer to be engaged with people that enjoy helping people. When you pick up the phone you’ll need to immediately provide your name to begin the rapport building process, you’ll need to ask a lot of questions, you’ll need to be a great listener, and you’ll need to make a point of being courteous at all times. Remember, the reason they’re calling you is because another shop has failed with them in the past. This is why they’re anxious, and it’s why selling the customer on you needs to be your first priority.

    2. There’s no doubt about it; people love to buy, but they hate to be sold. One way of providing a first-time caller with options is by giving them a choice in appointment times. When people are offered choices they feel as though they are in control, and that’s when it becomes much easier for them to say “yes”. So rather than asking a caller; “Would you like to bring your vehicle in at 9:00?” you should ask, “Would you like to bring your vehicle in at 9:00, or would 11:00 be better for you?” Whenever possible, you should provide your customers with options when your are giving your service & repair recommendations as well (Service A, or Service B with a premium warranty, for example).

    3. Don’t be offended when a caller asks you for a price. Far too many service advisors think that these callers are nothing more than price shoppers, when in the majority of cases, this assumption is far from the truth. The reason most customers will ask for a price is to get the conversation started. Since they don’t know what questions they should be asking, they feel that if they ask for a price, most sales people will start talking. When someone asks you for a price you need to be understanding, compassionate and professional.

    4. When you’re providing a price on any repair or service, it’s a cardinal rule that you always need to build interest and value first. For example, if a caller asks how much an oil service will cost, rather than just giving them a price, you should say something like, “Well, an oil service on your Camry, which includes ____,____,____ and ___ is only $____, and I can have that service done for you today. As a matter of fact, I can squeeze you in now, or would 2:00pm be better for you?” Remember; always build interest and value before you give a price.

    5. Now here’s one of the best kept secrets that we teach all of our service advisor training students: simply put, you can never put money ahead of people. If you sell from your heart, and if you apply these tips I’ve shared with you, then your sales, your CSI scores and your profits will all go straight up.

    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.
  16. Elite Worldwide Inc.
    By Bob Cooper

    As business owners, our best teachers will always be our employees and our customers. They understand many components of our businesses, and in most cases, they really do care about our success. Learning from our employees is relatively simple. All that we need to do is pay attention to their passing comments, and engage them during our employee meetings and reviews. What I would like to do with this article is provide you with a step-by-step guide that will help you do what every successful business owner does; learn from your customers.

    1. First and foremost, you need to set customer satisfaction goals, as well as minimum levels of acceptable performance. For example, your goal would be 100%, and the minimum level of acceptable performance would be set at 96%.

    2. Let your employees know how you will measure results. It’s your call, but I would encourage you to categorize any type of customer dissatisfaction as a failure, regardless of the cause. For example, if the customer says they felt the price of the repair was too high, it would be a failure because the advisor did not do an adequate job of building value in the service. Now I understand that there will be some occurrences (such as a part failure) where the employees would feel they should not be held accountable for the customer being dissatisfied. It’s those rare occurrences that cause us to set a minimum level of acceptable performance. In essence, by setting a minimum level of acceptable performance at 96%, those rare occurrences are taken into consideration.

    3. Implement a companywide reward program that is based on customer satisfaction scores, and make sure all of your employees are able to participate. This will help incentivize the team effort you need.

    4. Conclude who will be making your customer follow-up calls. Although there is tremendous relationship-building value in having your advisors follow up with their customers, the downside is that your customers may not be candid with them. Add to that, your advisors will have a conflict of interest if you are providing them with an economic incentive. I have found that the best person for making the calls is someone with the right personality, and who believes in you, your company and your people. When I was still operating shops I found that the perfect candidates were the customers that loved us, and that were looking to earn a few extra dollars a week.

    5. Conclude how you will compensate the person you hire, and where the calls will be made. Ideally you will pay your representative a flat hourly rate, ensuring that they will invest adequate time on each call. I also believe, when possible, the calls should be made from your shop. Not only will this allow your customers to see your phone number displayed on their caller ID, which adds to your professionalism, but if the customer has a question or concern, they can be transferred to your staff immediately.

    6. Conclude who you will call and when. At Elite we believe that all first-time customers, and all repair and/or warranty customers, should be called within 72 hours. Out of respect for their time, we do not endorse calling repeat customers who had simple maintenance services performed. Although these calls should never be perceived as “sales” calls, if a customer declined a major safety repair, we do encourage you to have your representative ask the customer if they have had the repair performed, to ensure their safety and well-being.

    7. Ask the right questions. I realize most dealerships, franchisees and independents ask a series of questions about the behavior of their staff, the quality of repair, promised-times, etc. At Elite we look at it differently. Our position is that you should say something as simple as, “I just wanted to follow up with you and ask; ‘How did we do?’” Our reasoning for this approach is really pretty simple. Rather than leading the customer with specific questions, it will allow you to learn what is important to your customer. If it is important enough to be at the top of their mind, then without question, it is exactly what you need to hear.

    8. Put the information to work. Share all your discoveries with your entire crew, and solicit their recommendations as to what can be done differently based on what you have learned from your customers. Not only will this allow you to build a more successful shop, but it will show your employees that you value their feedback as much as the feedback you receive from your customers.

    If you want to build a more profitable, successful business, there are two rules that will always be at the top of your list: Never put money ahead of people, and listen intently to 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.

  17. Elite Worldwide Inc.
    In today’s competitive environment every sale counts, so here are 5 easy-to-use tips that will help you drive up your sales, and generate happy customers at the same time.
     
    1. When presenting your recommendations, always sell the recommended service… last
    If the customer doesn’t feel comfortable with you it will be a challenge to sell repairs and services, so you should always sell yourself first. After the customer is sold on you, you then need to sell them on the technician that is working on their vehicle. This is especially true with every first-time customer, because unless you tell them, they have no idea who will be working on their vehicle or how qualified they are, which will often make them anxious, and hesitant to buy. The third sale you need to make is you need to sell the customer on the value of their vehicle. You can do this by reviewing all of the components that are in good shape, as well as drawing their attention to any recent investments that they have made in the vehicle (paint, tires, struts, brakes, etc.). Only when you have completed the first three sales should you start on the fourth, which is the required services.
     
    2. Focus on the benefits, not the parts and labor
    Your customers will have little interest in buying parts and labor, at any cost, but they will be open to paying for the benefits of the service. For example, when selling maintenance, you should explain how the service will help the customer protect their vehicle’s warranty, prevent costly breakdowns, improve their vehicle’s performance, and help them squeeze every mile out of every gallon of gasoline. It will also help them maximize the resale value of their vehicle, and as we all know, a well maintained vehicle is good for the environment, too. Sit down with your techs and create a list of customer benefits for each of your most common services and repairs. If you focus your attention on the benefits of the service, rather than the parts and labor, your sales will go up.
     
    3. Prioritize
    When selling multiple repairs, in many cases the customer will be unable to authorize all the recommended services at the same time. The secret is knowing how to prioritize, and how to do so in a way that builds customer confidence. At Elite we believe you should always put the customer’s initial concerns at the top of the list, right along with any personal safety items. Personal safety items are items like brakes, the driver’s seat belt, headlights, or anything that has to do with the driver’s own safety.
     
    Next on the list would be any items that could have an impact on the safety of others, which include items like brake lights, an exhaust pipe that could fall off and be run over by another vehicle, etc.
     
    Third on the priority list should be items pertaining to the safety of their vehicle, which includes items such as shocks and maintenance.
     
    And the last items you should present to the customer are creature comfort items like air conditioning, and any cosmetic needs. If you use this system to prioritize, you can simply tell the cash-strapped customer something like this: “Well Mary, what’s most important to you is going to be important to me, so let’s take a look at what you brought your vehicle in for, as well as the safety items that Mike discovered. We can help you prioritize the other items, then we can schedule those at a time that’s right for you.” With rare exception, as soon as the customer realizes that you really do understand their financial position, and you have put their safety at the top of your list, you will be on your way to building a better rapport with that customer. With that rapport comes a greater trust in your service recommendations, which makes the selling process go more smoothly and positively impacts your bottom line.
     
    4. Don’t get too technical
    There is an expression that has been around since the beginning of time that simply states, “Confused people don’t buy.” This is why you should always be very careful in describing the technical aspects to a customer. If you don’t get technical enough, they will ask for more info, but if you get even a bit too technical, you run the risk of losing the sale.
     
    5. Know your role and responsibility when you stand in front of a customer
    As a shop owner, manager, or service advisor, your job is to help people make decisions that they would in many cases have a hard time making on their own. At Elite we don’t view selling through financial eyes, but view it as helping people, which is why you should never pre-judge or pre-qualify. Pre-judging is when we tell ourselves that the customer won’t invest in their vehicle, and pre-qualifying is when we tell ourselves that they don’t have the money to authorize the repairs. Both are huge mistakes when it comes to selling, as when you pre-judge or pre-qualify you are not keeping the customer’s best interest at the forefront. You will also need to ensure that you don’t pre-judge the customer’s vehicle either, as just because you may feel investing a few thousand dollars in a particular vehicle wouldn’t be the right choice for you, it doesn’t mean that it wouldn’t be the perfect choice for someone else. If the customer has a vehicle they’ve owned for a while, and if they know it well, they may be hard-pressed to find another vehicle that would be as good as their existing one once they make the added investment. As I’m sure you will agree, the last thing the cash-strapped customer needs is to swap their vehicle that has a few known problems, for a vehicle that may have countless unknown problems.
     
    In closing, Elite has trained tens of thousands of advisors, and countless sales trainers, so this is a promise I can make to you: If you apply these simple tips to your sales procedures, if you believe in your products, your services and your people, and if you live by the principle of never putting money ahead of people, then your sales and your level of customer satisfaction will 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.
  18. 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
  19. 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.

  20. 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.
  21. Elite Worldwide Inc.
    One of the most common questions we hear from shop owners is regarding how often they should perform employee reviews. I would like to use this article to not only answer that question, but to provide you with a guide that will enable you to perform reviews that will keep your employees happy and productive.
    Putting first things first, let’s start with new hires. With every new employee, during their orientation you should clearly outline the company goals, their personal goals, the goals of the position, the minimum levels of acceptable performance and the relative deadlines. You will also need to let the employee know how you will monitor and measure their productivity, and how you will be reviewing their performance as well as their compliance with company policies.  With every new employee the most critical period will be the first 90 days; it is during this probationary period when you should be evaluating and making your decision regarding whether they are the right fit for your company. This is why we at Elite feel it is critical to review your employees most frequently within the first 90 days.
    With all new hires, during the first week I strongly encourage you to perform a short 15-minute review at the end of each day. This end-of-the-day review should include a quick discussion about what they have accomplished and learned during the day, you should ask if they have any questions, and you should provide them with an overview of your expectations for the following day. Once the first week has come to an end, you should plan on performing weekly reviews of the employee at the end of each week for the following three weeks. At the end of the first month, you should tell the new hire that you will be performing reviews at the end of each month for the first 90 days. And lastly, at the conclusion of the first 90 days (probationary period), we recommend that you schedule the reviews to occur every 6 months. 
    The secrets to performing great reviews? There are actually a number of them. First of all, you need to monitor and measure everything so you can go into each review well prepared, and in a position where you can speak with certainty rather than just communicating your general feelings about the employee’s performance. Secondly, you should advise all employees of their upcoming reviews one week prior to the review date, and you should provide them with a document that outlines what will be addressed during the review. At a minimum, that document should include their specific job goals, the minimum levels of acceptable performance, and all the relative deadlines. Ideally it will also include their documented productivity and historical performance, points of compliance with your company policies and with their specific job description, their personal goals, and their advancement when it comes to their skill set. Lastly, you should have a list of any specific accomplishments that you can recognize and praise, along with your notes from the employee’s last review, which should include points of agreement and action items.
    In all cases the reviews should be casual, and you need to ensure that you will be uninterrupted. At Elite we employ our 50/25/25 review strategy, which means that the first half of the review is dedicated to reviewing the employee, 25% of the time is dedicated to the employee reviewing our company, and the remaining 25% of the time is dedicated to the employee reviewing whomever is conducting the review. During your reviews you should always draw information out of the employee by asking them how they feel they are performing in each category, and as appropriate, you should ask them how they feel they can best improve. At the conclusion of the review you should go over your understandings and action items with the employee, and then follow up by providing them with a written copy of your agreed upon understandings, your expectations, the relative action items and the deadlines. 
    Does this method take time? It does, but you can rest assured that it doesn’t take nearly the amount of time it takes to deal with employee issues that stem from lack of communication, or to look for new employees when you lose those priceless stars… that you already have.
    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.
  22. 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.
  23. Elite Worldwide Inc.
    By Bob Cooper
    Mistake #1. Have your technicians compete against one another. We all can agree that competition among employees is good, but there is a right way, and there’s a wrong way. The wrong way is to tell your techs that you’re going to post the hours they each flag, and at the end of the pay period the winner will receive a reward. Although that sounds good, you’ll inevitably end up with one winner, and no matter how you cut it, the rest of your techs are going to be losers. Now you might think that’s okay because it’s all in fun, and next week they all have another shot at being the winner, right? But the problem is that unless all of your techs have the same experience, the same skills, the same competencies, the same tools, and the same services to perform; over the course of a few months you’ll discover that one or two of your techs will typically come in first, and the rest of your techs will predictably lose.
    Instead, give all of your techs the opportunity to win by having them compete against themselves rather than against one another. Here’s how you do it: let’s say you have tech #1 who has been consistently flagging 40 hours, and you know they have the skill and experience to consistently flag 46 hours. You set their goal at 48 hours. If tech #2 has less skill and less experience than tech #1, and if they typically flag 36 hours a week, then they should be striving to flag 43 hours per week, not 48. If you do this with each of your techs, they can then all be winners at the end of the pay period by reaching their individual goals.
    Mistake #2. Show them how the job should be done. I’m not suggesting that you shouldn’t properly train your employees, and of course there will always be a time for you to help, but when it comes to managing people, sometimes the wrong answer will be the right answer obtained in the wrong way. When managing your techs and service advisors, you need to lead them to the answers rather than providing them with the answers. If you give them the answers, all you’re doing is teaching them to come to you when they have a problem, and validating the things they don’t know. Not only does this ding their confidence, but it’s bad for business too.
    So the next time a tech or service advisor is having a problem, or if they come to you for an answer, the very first thing you should do is ask them what they think. They’ll not only be proud they discovered the solution on their own, but you’ll be doing the single most important thing managers should do: teaching your employees how to solve problems.  Years ago, president Nixon was talking about the welfare system here in America when he said, “If you give a man a crutch long enough you create a cripple.” It’s no different with employee management.
    Mistake #3. Ignore your intuitions about an employee.  When it comes to managing people you need to have a clear understanding of expectations, you need to pay close attention to the facts, and you need to listen closely to that little voice in your head that we call intuition. If you sense you have someone in your company that is not a good fit, or may be a problem down the road, odds are you are correct. Far too many shop owners ignore their intuition, and it eventually costs them a fortune.

    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.
    By Bob Cooper

    With vehicles being built better than ever before, and with service intervals continually being extended, you are going to see your customers less often. This means that your service advisors have to be razor sharp when that phone rings. Although there is no silver bullet that will allow you to bring in every first-time caller, there are a number of things you can do to get more appointments. In this article, I would like to share some of the best practices we teach in our service advisor training that will bring immediate results.

    In order for your customers to buy from you, three things need to occur: They have to like you, they have to trust you, and they have to view you as a credible expert. So when your phone rings, the first thing your advisors need to sell is themselves; not the service or repair. The best way of accomplishing this goal is with a professional, courteous and upbeat greeting, such as, “Thank you for calling Elite Auto Care, this is Bob. How can I help you this morning?” Starting out by immediately thanking the customer shows appreciation, volunteering the name of your company helps assure your callers that they’ve called the right number, and providing a first name is the first step in building personal relationships with your callers. By asking how they can help, your advisors are asking a question that will allow them to control the conversation. By being upbeat and using the right tonality, their likeability goes up, and the customer’s anxiety goes down.

    The second thing your advisors will need to do is slow the conversation down so the callers don’t feel rushed. Your advisors will have to become good detectives by asking a number of questions, because when your customers are responding to the questions, it will take their focus off the price, and will help them begin feeling more comfortable with your advisors at the same time.

    When it comes to asking for the appointment, one of the best tips I can share with you is this: With rare exception, your advisors need to offer every caller a choice of appointment times, and whenever possible, one of those options should be to bring the vehicle in now. For example, “I can squeeze you in now, or would 2:15 be better for you?” When it comes to auto repair, customers love finality, which is why providing the “now” option is a powerful sales tool.

    Now here’s the absolute best-kept secret for dealing with the tough first-time callers. Every one of your advisors needs to be aware that many “price shoppers” are asking for price just to start the conversation, and beyond that, with rare exception, callers don’t know the questions they should be asking. This is why in all of our service advisor training classes we encourage the students to write down a list of the questions they think an educated caller would ask. Once they have their list completed, and committed to memory, then it’s easy for them to say something like: “Well Larry, I know price is important to you, and it should be, but if you call five different shops today, you’ll more than likely get at least five different prices. Some of the other questions you might want to ask are how long they’ve been in business, whether or not they have certified technicians and a drug-free workplace program, and you might want to have them walk you through the diagnostic processes as well. You might want to also ask them if they always explore all of the options that are available to customers when it comes to any recommended repairs, what kind of warranties they provide, and if those warranties are in writing.” Ladies and gentlemen, I’ve closed hundreds, if not thousands, of tough first-time “price shoppers” using this technique, so I know it will work for you.

    If you’re still not quite sold, then consider this: If you take my recommendations, when those price shoppers start calling other shops, you know as well as I do, they’ll more than likely ask some of the questions your advisors suggested to them. Not only will your competitors be caught off guard and struggle with the answers, but in each case, the callers will be thinking of your advisors. This is when your customers will not only realize how well your advisors handled the call, but they’ll trust your advisors, and you bet; they’ll now view them as credible experts 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 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
  25. 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


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