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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  1. 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.

  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

    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.
  4. Elite Worldwide Inc.
    By Bob Cooper

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

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

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

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

    In closing, brands are no longer built on Wall Street, but in today’s world they are being built each and every day on the web. I can only hope we all agree that social media is here to stay, so you need to invest in making the customer experience incredibly positive, because if you do, your customers will do what agencies used to do, and create an extraordinary brand for you.

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

  5. Elite Worldwide Inc.
    By Bob Cooper
     
    1. Know your customers’ buying habits. You’ll need to know your customers’ buying habits as well as their service histories. You should always request your first-time customers’ service records, and should ask them about their service histories verbally as well. This information can be extremely helpful during any sales process, especially when it comes to selling maintenance. Great doctors are always interested in a patient’s medical history, just as great service advisors are always interested in a customer’s service history. This information not only indicates which maintenance services are due, but will give you valuable insights to your customers’ buying habits as well.
     
    2. Have the right tools available. People believe what they see, so whenever possible, you should get your customers visually involved. At Elite we are big supporters of complete vehicle inspections, proper documentation, and visually showing your customers what was discovered. Since third-party documentation is usually viewed as a credible source, you should use your customers’ owner’s manuals, their service records, and print-outs that show industry recommendations, maintenance brochures, and repair orders that show the high cost of repairs, failed components and fluid samples.
     
    3. Emphasize the benefits. You’ll need to know the key benefits of every service you offer by heart. You’ll need to know, in very specific terms that your customers will understand, how they will win by authorizing the maintenance services that you recommend. You’ll need to make sure they know it can maximize their fuel economies, protect the value of their vehicles, protect their warranties, help them avoid unexpected and costly repairs, and provide them with peace of mind in knowing that they’ll have good, safe transportation. Not only should you know these benefits by heart, but you should write down the benefits of each of your most popular maintenance services, and then review the list of benefits before each and every sales presentation. When it comes to selling maintenance, the overwhelming majority of shop owners and advisors put the focus of their presentations on the parts and labor, and unfortunately, that’s a mistake. As is true with all sales, your customers will be motivated by the benefits they’ll receive, not the parts and labor that go into the job.
     
    4. Be prepared to cost-justify. When it comes to selling maintenance, one of the single greatest mistakes that shop owners and service advisors make is being unprepared to cost-justify the services. You’ll need to be able to quickly explain to your customers, in clear financial terms, why the service is a great investment for them. Here’s an example: If you estimate that a customer is going to invest $600 in maintenance over the course of a year, then you need to break that number down into a daily amount. This way, when you are recommending your services, you can remind him that although he feels that $600 is a good amount of money, he’s going to be able to benefit from the service for a long time. By following your maintenance schedule over the course of a year, the customer’s investment will end up being just $1.65 a day ($600/365). In essence, for less than a couple of dollars a day your customer will protect his warranty, he’ll be protecting the value of his vehicle, he’ll be squeezing every mile out of every gallon of gasoline, he’ll be reducing the risk of costly breakdowns, and he’ll have the peace of mind that he’ll have safe, dependable transportation. If you are not prepared to cost-justify the investment, then you can rest assured that the only number your customers will hear will be the price of the service. This will not only lead to lost sales, but if your customers don’t experience a breakdown within the next few months (that is attributed to the declined service recommendation), then they’ll look at the service you offered as nothing more than an attempt at an unwarranted upsell. At this point, you’ve not only lost the sale, but you’ve lost your credibility as well.
     
    5. Let the customer know you have great news. When you call your customers, make sure you begin your presentation by telling them that you have some really great news. This will not only set the tone for your presentation and put your customers at ease, but it will send a strong message that as a professional, you feel the service you are about to recommend is truly a great value.
     
    6. Use an assumptive close. Instead of asking your customers if they would like you to perform the recommended maintenance services, you should say, “All that I’ll need is your go-ahead, and we’ll get started on it right away.” Assumptive closes send a strong message that there is no logical reason for your customers to decline the services that were recommended.
     
    7. Schedule the next appointment. There is no better time to schedule the next appointment than at the time of car delivery. Your customers are standing in front of you, they feel comfortable with you, and it’s easy for them to say yes. If your customers leave without making an appointment, then they’re going to be fair game for all of your competitors. In addition, taking good care of your customers’ vehicles is a process, not an event, so it stands to reason that you’ll need to see them again to perform the services that will be due at that time, to complete a periodic safety inspection, etc.
     
    8. Never put money ahead of people. Here’s one of the best kept secrets to not only selling maintenance, but to building a great business. Customers are intuitive, and they can quickly tell if a service advisor is interested in their credit card or their well-being. If you sell from your heart, and if you never put money ahead of people, it will show through every single time. Not only will this help you increase your sales, but it will help you generate lifelong customers at the same time.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You learn more about Elite by visiting www.EliteWorldwide.com.
  6. 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.
  7. 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.
  8. 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.
  9. Elite Worldwide Inc.
    By Bob Cooper
     
    We all know that there are many things you can do when it comes to customer retention. Follow-up calls, sending out service reminder notices, ongoing advertising campaigns that keep your name at the top of the customer’s mind, and scheduling the next visit at the time of car delivery are just a few. Yet there are some timeless rules that are often forgotten. During these competitive times I feel I can best help you by reminding you of the 6 most important rules when it comes to customer retention.
     
    Rule #1. Create a principle-centered culture. All great companies realize that getting to the top, and staying at the top, is dependent on having a culture that is based on principles. As a business owner you need to ensure that you have a clearly defined Mission Statement, you need to share it with all of your employees, and you need to constantly keep it at the forefront of their minds. Remember, your “goals” are what you are going to accomplish, whereas your Mission Statement is what you will be doing along the way. For example, a Mission Statement could read, “It is the mission of Elite Auto Service to deliver extraordinary service to our customers and opportunity to our employees, while never compromising our ethics or our responsibility to society.”
     
    Rule #2. Offer and deliver a good value. I am not suggesting that you be the lowest priced, or the highest priced in your community. What I am suggesting is that you deliver a good value in return for the money you charge. Companies that charge more than they should just because they can typically discover that their profits will go up in the short term, but that they lose their customer base at the same time. Great companies are competitive, not greedy, and that is why they become, and remain, great companies.
     
    Rule #3. Hire the Superstars. The success of your company, and your ability to retain customers over the years, will be dependent on the people who work with you. As I am sure you will agree, just being good is no longer good enough, so you need to have employees who truly are superstars. I can only hope you bear in mind that whenever someone buys a product, they will always remember the product, but whenever they buy a service, they will always remember the people providing the service. Simply put, your customers’ impression of your business will only be as positive as their impression of the people who work with you.
     
    Rule #4. Provide consistency in the experience. Great companies such as McDonald’s, Starbucks and Nordstrom all understand the importance of consistency in service. With any of these companies, before you step into their stores you already have an expectation of what the experience will be. The top shops understand this rule, and that is why they have clearly defined procedures for everything they do, from handling the first-time caller, through car delivery. When customers feel there is no consistency in service, they will typically look for an alternative service provider.
     
    Rule #5. Deliver on your promises. Hopefully you can see how this rule ties into your Mission Statement. If you want your customers to continue to return, then make sure that all of your employees choose their words carefully when they are making a commitment to your customers, and then ensure they move the earth to deliver on those promises.
     
    Rule #6. Never put money ahead of people. All world-class business owners understand that money is the result of doing the right things for the right reasons. When you embrace this rule you will also discover why the world-class businesses will never take their customers for granted. They understand that it’s the trust their customers have in them and their people that is priceless, not their credit cards.
     
    In closing, there are a number of things you can do to improve your customer retention, but the one promise I can make you is this: These 6 rules are timeless ones, and if you apply them to your business, you will not only see more repeat customers, but unlike your competitors, you will be building a business that will last for generations to come.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
     
  10. Elite Worldwide Inc.
    By Bob Cooper of Elite
     
    As is true with the top techs, the top service advisors in America need a number of tools in order to succeed. Here’s a list of important tools you can provide to your advisors that will help them maximize sales, customer satisfaction and your shop’s profits.
     
    1. Clearly defined sales goals and car count goals that are broken down into daily goals. Not only will having such goals in place help your advisors stay focused, but they will encourage your advisors to further develop their skills. If you don’t have daily goals in place, how will you and your service advisors know if they were successful that day? Remember, the fact that they were busy doesn’t mean that they were successful. By having daily goals in place, not only will they feel good on the days when they reach the goals, but you will have ample opportunities to congratulate them on their success.
     
    2. Clearly defined systems and policies. As the shop owner, you need to ensure that every vehicle is properly inspected, and that all discoveries are documented, then provided to the advisor. These policies need to be strictly enforced to ensure ongoing compliance.
     
    3. The ability to make decisions. The top advisors in America are empowered by their shop owners to make many decisions on behalf of the company. Not only does this prevent you as the owner from being drawn into every customer concern, but it shows your advisors that you trust their judgement.
     
    4. A budget for price adjustments. We all know that there are times when your advisors need to provide your customers with legitimate discounts, a rental car, etc., so what the top shop owners do is set a monthly budget of X dollars for each advisor, and they’ll tell their advisors that the money is there to be used in any way they would like to ensure customer satisfaction. Whatever is remaining in each advisor’s budget at the end of the month is then split with the advisor. With this approach it’s your advisors’ money to lose, so they’ll think twice before giving unwarranted discounts, refunds, etc.
     
    5. A pay plan that rewards productivity. Regardless of how their pay plan is designed, your advisors need to be rewarded for three things: The sales they are able to generate, the gross profit margins they are able to maintain, and happy customers. Remember, any behavior that isn’t rewarded will cease to exist.
     
    6. Ongoing training. The top shop owners in America realize that an advisor’s job is not an easy one, and that advisors need to keep their skills razor-sharp. This is why they not only enroll their advisors in sales courses at least once a year for a “tune-up”, but also help them develop their other job-related skills by enrolling them in management courses, and asking them to read books like How to Win Friends & Influence People by Dale Carnegie, a great book on people skills.
     
    7. A quality control system that includes customer follow-up calls and the recording of sales calls. Advisors can only learn what they are doing right and where they need to improve by listening to recordings of their sales presentations, and hearing what their customers have to say about their services.
     
    8. Appropriate leadership. Simply put, advisors need employers that make a point of catching their employees doing things right and acknowledging their behavior, that constantly reinforce ethics, and that create a culture of never putting money ahead of people.
     
    For additional help improving your shop’s sales, customer satisfaction and customer retention, learn more about Elite’s Masters Service Advisor Training Course.
     
  11. Elite Worldwide Inc.
    By Bob Cooper of Elite
     
    In the coming years, no component of your business will be more critical to your success than the caliber of the people who work with you. In order to hire and keep superstar employees at your shop, you need to have pay programs in place that ensure they stay motivated and happy to be a part of your team. With that said, here are 8 pay program tips that will help you employ top flight technicians who will contribute to your success for years to come.
     
    1. Without a doubt, the best pay programs for technicians are based on billable hours. If you pay your techs a salary or an hourly rate, you are rewarding them for showing up and clocking in; not for producing. The good technicians love to produce, and as with any employee, they should be rewarded for doing so. Some shop owners argue that the problem with flagged hour programs is that they encourage technicians to recommend services that don't need to be sold, or will lead to poor quality work if they cause your techs to hurry through each job (increasing the probability that they will overlook things, take costly shortcuts, etc.). The truth is, in either of these cases, the problem is that the shop owner has employed the wrong technicians, or has not provided proper training, and neither problem should be attributed to a flagged hour pay program. Not only is there nothing wrong with paying people based on their productivity, but in reality, it's how we should all be rewarded for our contributions.
     
    2. Technicians should be paid a predetermined hourly rate for each billed hour, not a commission based on sales. If you pay your techs a commission on labor sales, then when you have to raise your labor rate to accommodate for any increase in your operating expenses, your technicians will automatically receive a raise, and you will have to raise your labor rate that much higher to compensate.
     
    3. Make sure that you have a tiered compensation program in place. For example, if your techs flag up to 40 hours in a 40-hour week, they’ll earn $22.00 per hour. If they flag over 45 hours in a 40-hour week, they’ll earn $24.00 for each of the 45 hours. You need to consider the possibility that if it’s the end of the week and the tech knows he’s not going to flag 45 hours, he may decide to sand-bag by carrying the almost completed job over to Monday, rather than finishing up the job on Friday. You can avoid this temptation by having a policy in place which states that in order for your techs to be eligible for the performance incentive each week, and earn the higher hourly rate, they need to have flagged at least XX hours in the previous week. Your techs should also know that in order to be eligible for the performance incentive, they need to meet with your pay period requirements for controlling comebacks, and reaching predetermined CSI scores.
     
    4. When it comes to “guarantees,” consider providing your techs with a guaranteed number of vehicles rather than a guaranteed number of hours. If you guarantee a specific number of hours, it’s no different than giving your techs a guaranteed income that they do not have to work for. So I’d recommend first establishing the labor value of your average repair order. If you discover you average two labor hours per vehicle, then rather than giving your techs a guarantee of 30 hours, give them a guarantee of 15 vehicles. It’s then up to them to do their job of properly inspecting the vehicles and performing the authorized services. If during the pay period you are only able to provide them with 13 of the 15 vehicles, you would owe them the four hour difference.
     
    5. At Elite, we have a saying that goes, “When you hire Larry, you get Mary”. This means that you need to make sure your technician’s entire family is happy that he is working at your shop, so you always need to consider how you can reward your technicians in a way that benefits their families. Rather than rewarding them solely through more money in their paychecks, consider movie tickets they can use with their kids, gift certificates to their favorite restaurants, etc. These are the types of gifts that have “take home value”, and the ones that can help turn your technicians’ families into huge fans of you and your shop.
     
    6. Never have your techs compete against one another. Not only do they all have different skills and abilities, but often times patterns develop where one tech wins week after week, and all the rest of your techs begin to view themselves as losers. I highly recommend that you set individual goals for each technician, and motivate them to compete against the one person who they should be competing against: Themselves. This way, all of your technicians have the opportunity to be winners at the end of each pay period.
     
    7. Instead of giving your techs raises based on their tenure, it should always be based on their productivity (with the exception of raises that are based on inflation). Just because someone has been with your company for a year, it doesn’t mean they are now worth more money. You need to provide all of your employees, not just your techs, with the opportunity to earn a higher income by being more productive. If they have produced more in the past year than the prior year, then they have earned that raise. You should also consider having predetermined conditions in place in order to be eligible for raises, such as complying with company policies, completing a certain number of hours of training, and acquiring specific certifications.
     
    8. Never give cash incentives as bonuses. Beyond being illegal, it sends a message to your employees that you are willing to cheat the government, and it gives them good reason to question your ethics. Not only do cash incentives violate the ethics of operating a good business, but it may lead your employees to believe that if you are capable of cheating the government, why should they have confidence that you will always be honest and ethical with them, or your customers? I’d strongly encourage you to stay away from any policy that could cause your employees or customers to question your ethics.
    Follow these 8 tips and you’ll be well on your way to increased productivity, and to instilling the morale that your shop needs to excel.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
  12. Elite Worldwide Inc.
    By Bob Cooper
     
    When it comes to dealing with objections, most service advisors shut down as soon as the customer says “It’s too much money”, or “I’d like to think it over.” There are a number of reasons why, but the single most common reason is that the advisors don’t know how to handle the objections. Here are what I have discovered to be the best-kept secrets when it comes to dealing with sales objections.
     
    1. Accept the fact that the single greatest cause of sales objections is a poor sales presentation. If you don’t follow the eight steps of the sales cycle (1. Build rapport, 2. Fact find, 3. Identify the need , 4. Identify the solutions, 5. Build interest & value, 6. Ask for the sale, 7. Close the sale, 8. Resell the service), if you rush through your presentation, or if you don’t believe in the service you’re recommending, then sales objections are bound to occur. So the first place to start in handling objections is in mastering your presentation. In all cases, make sure that you build rapport with the customer, offer options whenever possible, build interest and value in the benefits of your service rather than the parts and labor, and give the prices last.
     
    2. When you hear an objection, it’s a cardinal rule that you need to listen, learn and be thankful. When a customer gives you any kind of sales objection, they’re telling you that they’re interested, but there is something that is standing in the way of them authorizing the service. As sales professionals, we need to be thankful that they are expressing their concern rather than just leaving. First and foremost, when a customer voices a concern, you should never interrupt them. The more they talk, the more comfortable they will feel with you, and the more you will learn about the questions and concerns they have. You should also make a point to never disagree, because all that will do is alienate the customer by proving them wrong. You may win the battle of words, but you’ll lose the sale. Instead, you should say something like, “Well, Mr. Jones, based on what you’ve just told me, I can see why you would feel that way. Let me tell you what we’ve discovered ...” .
     
    3. Follow the Elite 5-step procedure for dealing with sales objections:
    1.) Hear the customer out.
    2.) Feed the objection back to the customer to assure you understand them: “So what you’re telling me, Mr. Jones, is that you feel you can get the same job done for less somewhere else. Am I correct?”
    3.) Respond to the objection. This is where you answer their questions and resolve the customer’s concerns.
    4.) Confirm your response: “So does this all make sense now, Mr. Jones?” As soon as they agree, you should ask for the sale again.
    5.) Change the subject: “Now will you need a ride back to your office?”
     
    4. Lastly, bear in mind that service advisors are salespeople, not clerks. It is the job of an advisor to help customers make difficult decisions that are in their best interest. If you never put money ahead of people, if you sell from your heart rather than based on the dollars, and if you follow these recommendations, then a number of things will occur. Beyond just becoming a better service advisor, you’ll be able to easily handle those sales objections, and most importantly: you will be helping a lot of people at the same time.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
     
  13. Elite Worldwide Inc.
    #1. Under promise and over deliver. If you apply this principle to your business, you can often exceed the customer's expectations. As an example, when your competitors are asked how long it will take to do a minor service, they will typically tell the customer something like, “It'll take an hour." Unfortunately, they have now set an expectation in the customer's mind. What they should have done was ask the customer how soon they need the vehicle. If the customer were to then respond by saying, “I need it by noon" (and it's 9:00am), the service advisor now has three hours to complete a one hour job, and can pleasantly surprise the customer by getting it done before noon. It's no different when you put together an estimate. If there is any way you can come in even a few dollars under that estimate, your customers will be thrilled when they come in to pick up their vehicle! Always under promise, and then look for every opportunity to over deliver.
     
    #2. Make sure all of your employees follow the Marriott Rule. This rule states that any time a customer comes within twenty feet of any employee, the employee should smile and make eye contact. If the customer comes within ten feet of an employee, Marriott employees are asked to smile and give a salutation like “good morning." At Elite we encourage you to have your employees not only smile and give a salutation, but also ask the customer, “Have you been helped yet?" Discuss this at your next employee meeting and watch employee morale, and customer satisfaction, go straight up!
     
    #3. Empower your service advisors so they can put out small fires before they turn into more serious issues. All that you need to do is implement a shop management policy similar to the Ritz Carlton. At the Ritz, they empower all of their employees with a predetermined budget they can use for customer satisfaction. You should do the same. Set aside a small budget that your service advisors can use to resolve customer complaints on the spot, and long before you have to get involved. At the end of the quarter, your employees can receive a portion of the unused money!
     
    #4. Be very careful in using the word “free." Most people view something that's free as being of little or no value. What you should do is tell your customer the service is “no charge." This will send a strong message that there's a value to the service, but you are setting the cost aside.
     
    #5. Make a habit if always asking your customer “Is there anything else I can help you with?". Obviously if you ask this question when you're writing up the customer it can lead to additional sales, but beyond that, it's a question you should ask throughout the entire customer experience. You should ask the very same question after the customer has authorized your recommended service, you should ask it at car delivery, and you should ask it when you have completed your customer follow-up call. The value in asking this particular question is that it shows the customer that you genuinely care about them, and that you embrace every opportunity to help them in any way possible.
     
    #6. Always do what you say you are going to do. If you give a customer an estimate, then we all understand it to be just that: an estimate. On the other hand, if you tell a customer that the repair won't run over $500.00, and you find later that it does, then you should pick up the difference. Not only is it the ethical thing to do, but that customer will sing your song for years to come, because people always enjoy dealing with people who make promises … and then deliver.
     
    #7. Never forget. It's what you do after the sale that counts. Follow-up thank you calls that are genuine and from your heart, are priceless.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.

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