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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  1. Elite Worldwide Inc.
    By Bob Cooper
    All great companies have one thing in common: They realize industries and consumers need change, so they follow their customers. Apple provides a great example. As we all know, when Apple started they were a computer company, but when that industry began to decline, Steve Jobs was able to see that his targeted customers were investing in music. This is why Apple Computers became Apple Inc., is why they reached a point a few years ago where their online music sales exceeded their computer sales, and is why today they are in the mobile device business. In essence, they transformed to meet the needs of their customers. IBM and American Express are other great examples. 
    Your business is no different. Over the decades the auto repair business transformed from a “we fix anything” business that rebuilt every component into an industry that installed remanufactured parts. We then transformed from a repair industry into a maintenance-driven industry. If you bring hybrids and electric cars into our discussion, the change becomes even more dramatic. As this progression continues you will be seeing your customers, and repairing their cars, far less often. Interestingly enough, most shop owners are not too concerned because they simply believe that all they will need to do is ratchet up their marketing efforts to bring in more new customers. Unfortunately, there is typically a finite number of potential customers in any marketing community, and your competitors have the same plan in place. So rather than fighting the inevitable changes, or doing business the same old way until your business is out of business, here are my recommendations…
    First of all, shop owners typically diversify for one of two reasons: They do it out of desperation, or out of inspiration. The ones that do it out of desperation are the ones that take the leap when they are struggling to pay their bills, and are scrambling to find any way to bring in a few more dollars. The ones that diversify out of inspiration are the ones that see the change in the wind, and take the necessary steps to ensure their continued success.
    However, there is no one road that is right for everyone. If you are in a specialty business such as transmissions or suspension, you may want to consider transitioning into general repair. You already have the most important part, which is your customer base. Another option is to consider the exploding world of infotainment. As I am sure you will agree, if you walk into any new car showroom today you will find that just about every new vehicle has a wealth of entertainment features, along with navigational and communication features. So the question is: Who is going to not only be servicing these components, but who is going to be offering upgrades, and handling the installation of the newest state-of-the-art components that the drivers of older vehicles would love to have? Someone is going to do it, so why not you?   
    I would like to leave you with a story that has a powerful message. It is argued that at one time Bill Gates said, “If Santa Fe Railroad would have realized that they were in the transportation business, and not the railroad business, today we would have Santa Fe Airlines.” This is a message we should all take to heart, because the one thing that is certain is that our industry is going to go through many more dramatic changes. The first to embrace this reality, and make the necessary changes, will become the industry leaders for decades to come.
     
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You learn more about Elite by visiting www.EliteWorldwide.com
  2. 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.
  3. Elite Worldwide Inc.
    By Bob Cooper
    If you want to generate more repeat business, then there are a number of things you will need to do. You’ll need to deliver an extraordinary value, exceed your customers’ expectations at every touch point, and stay in touch with your customers after the sale. Over the years I have discovered that most service advisors have the right intent, and make their best effort to do all of these things. They want to do a good job, and they know that a part of their job is to help their customers see the value in their services. This is why they work hard at building value in their company and services when speaking with first-time callers. It’s also why they’ll build interest and value in their service recommendations, with the hope that their customers will agree with their recommendations, authorize the services, and then ultimately return.
    The top advisors in America not only understand this, but they’ll always put a strong focus on the benefits of their recommended services, rather than on the parts and labor. For example, when discussing the benefits of a brake service, they’ll tell their customers that they’ll have smoother and more responsive pedal operation, quieter braking, faster stopping and the peace of mind that they’ll have good, safe, and dependable transportation.

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

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

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

    Although I can’t guarantee that your customers are going to return if you do what I am recommending at the time of car delivery, there is one guarantee that I can make you: If you take just a minute to explain the benefits of the next service to your customers, there is a strong probability that they’ll want to come back. On the other hand, if the only reason for them to return is because you sent them a reminder card telling them that they need to come in for nothing more than to spend money with you and to be without their vehicles for a day, then you’ve given them a really good reason to toss the reminder card… and not come in.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
  4. Elite Worldwide Inc.
    By Jen Monclus
     1. Make sure your advisors schedule car deliveries with first-time customers whenever possible (The point is to try). If an exact time won't work, provide the customer with a window of time. This is considered an 'active delivery', and will allow your advisors to spend a few minutes with each new customer to personally thank them, go over the paper work and sell them on the next visit.
    2. Ensure you have backup in place so that your advisors are able to take the time needed for an effective vehicle delivery. This is your last chance to make an impression on your customers, so make sure they don't feel your advisors are too busy for them, or that their business is not valued. Backup must be in place to ensure your advisors have enough time to "wow" each customer.
    3. Have your advisors resell the service by telling the customer that they made a really smart decision. Telling the customer that they made a great choice will help reduce buyer's remorse, will reduce their anxiety, and will help your advisors build trust with the customer.
    4. Make sure your advisors talk to your customers about the next steps they will need to take. Your advisors should review the service that was authorized and any post service instructions or maintenance brochures, then build value in the customer's next visit by explaining the benefits. Make sure your advisors schedule the next appointment in your calendar while the customer is still onsite.
    5. Have your advisors provide each customer with their business card, and thank the customer for their trust. A heartfelt "thank you" and handshake are the finishing touches on a successful vehicle delivery.
    This tip was provided by Jen Monclus, one the industry's top sales trainers that heads up Elite's Masters Service Advisor Training Program.
  5. Elite Worldwide Inc.
    We all know it’s getting harder and harder to find the superstar techs, but finding those stars is just the beginning. Once found, you need to interview them like a seasoned pro. Here are some interviewing tips that we share with our Elite Coaching clients: 
    #1. Impress the applicant with your professionalism.  When you are interviewing a real superstar, they will be interviewing you at the same time, so you need to really wow them. One way is by being well prepared, and ensuring you have a well-thought-out list of questions that you will ask. In compiling your list, ensure you ask questions about their goals, their interests, and what they feel the hallmarks of a good employer are. The more they realize that you are interested in them, their family, their success and their opinions, the more interest they will have in working with you. 
    #2. The superstars look for opportunities, not jobs. There is no question that the superstars can easily find jobs. As a matter of fact, with rare exception they already have one, and have little interest in moving from one to another. On the other hand, the superstars are always looking to advance their lives and careers. This is why you need to not only offer them an opportunity, but you will need to spell it out in very clear terms. Let them know that they’ll not only have some wonderful growth and income opportunities, but they will be a part of a vibrant, growing company that will be good for the industry, and community, for years to come. 
    #3. Have a key employee participate in your second or third interview. This will allow you to obtain a number of insights from your employee, will send a powerful message to the applicant that you value the opinion of your employees, and will let the applicant know that you want to ensure they are a great fit; not only for the position, but as a part of your entire team. 
    #4. At the conclusion of the second or third interview, ask if you can meet with them again, along with any spouse (partner, better-half, etc.) they may have.  By asking to meet the applicant’s spouse you are sending a powerful message that you care about the family members of all of your employees. Not only will this meeting allow you to learn a lot more about the applicant (and their family), but you will have the opportunity to make a positive impact on someone that will have a strong influence on the applicant’s decision. You should also have a package ready to provide them that contains general information on your compensation and incentive program, your Mission Statement, your team and your company’s accomplishments. This way they will have something concrete to review at home, rather than trying to recall what they may remember from your conversations. If you do your job correctly, you can rest assured that on their drive home the spouse will more than likely be selling the applicant on two things:  You, and the opportunity you are offering. 
    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.
     
  6. 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.
     
  7. Elite Worldwide Inc.
    By Bob Cooper
    Many years ago I read an article that featured an interview with Herb Kelleher, the co-founder of Southwest Airlines. In the article he stated that he and his mother (who was a Harvard graduate) would often debate who was more important: He argued that it was the employees of a company, and his mom argued that it was the customers. With all due respect, I would argue; why does it need to be one or the other? From my point of view, this debate is like having two children and being asked which one we love the most, because both your customers and your employees are equally important.  Since it is becoming increasingly difficult to find and hire the superstars, I would like to use this article to help you continue earning the trust of your employees, who at Elite we refer to as our internal customers.
    Putting first things first, as business owners we need to recognize that our internal customers are much like our external customers. In your case, your external customers come to you with transportation problems that you solve, and they then pay you with their hard-earned money.  Your internal customers come to you with needs as well. They have needs like being able to save enough money to buy a home, or having the funds available that they’ll need to educate their children. Simply put, you provide them with the right opportunities, and you help them fulfill those needs. In return, they pay you with their work efforts, and their contributions towards your success. 
    So the question is; what can you do to keep the stars you have, not just for a few years, but for the length of their working careers? Although there is no formula that will guarantee results, there are a number of things you can do to keep your stars as your stars.  
    First and most importantly, never forget this cardinal rule of managing people: We have to keep the hearts of our employees, because once we lose their hearts, their minds will follow. I actually coined this rule long ago, and have lived by it for decades.  Now here is how you can implement it…
    With every superstar who works with you, you need to look beyond the employee component of your relationship, and you need to consider them as a person, just like you. This means that you need to truly care about your employees as people, and the things that are important to them need to become important to you. Once they realize that you really do care about them and their families, as well as their goals, they will then care about you, and the goals of your company.  Secondly, you need to be a great listener, you need to pay close attention to their suggestions, and you need to always thank them for their input.
    I have also learned that you need to be a shoulder your employees can lean on. By being sympathetic to their personal struggles, you will find that if you have the right people, they will not take your sympathy for granted, but they will go to the ends of the earth for you.  You need to let them know that you recognize their talents and strengths, and you need to give them praise for jobs that are well done. Beyond that, you have to show them the humility that all employees look for. This means you will need to set your pride aside to let them know that they are much more gifted than you in many ways, you’ll need to be able to admit to your mistakes, and you’ll need to be able to give heartfelt apologies at the appropriate times. Lastly, if you plan on keeping their hearts, you will need to constantly share your vision of the future, and paint a clear path to their success in the coming years.
    Over the years I have discovered that people don’t leave companies. They never have, and they never will. People leave people, not companies. If you’d like to continue earning the trust and confidence of your employees, then I would encourage you to apply the principles that I have shared with you. If you do, then I will make you a promise: Beyond being a great role model for your employees, the morale of your employees will go up, your shop’s productivity will go up, and any employee turnover problems you have… will disappear.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You learn more about Elite by visiting www.EliteWorldwide.com
  8. Elite Worldwide Inc.
    By Bob Cooper 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.
  9. Elite Worldwide Inc.
    When car counts aren’t what they need to be, most shop owners will pump more money into their auto repair 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 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 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 (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. 
  10. Elite Worldwide Inc.
    There are a number of changes that are occurring in our industry, and there is no question, some of them will have a profound, long-term impact. To name just two, automobiles are being built better, and as we all know, service intervals are constantly being extended by the manufacturers. Although this is all good for consumers, better-built vehicles means they’ll need fewer repairs, and extended service intervals means you’ll be seeing your existing customers less frequently in the coming years. The way most shop owners are dealing with this evolution is by trying to convince all of their customers that they need to bring their vehicles in more frequently than the manufacturer recommends. They tell them that their oil needs to be changed more frequently, and that it’s a good policy to have their vehicles inspected every 3,000-5,000 miles. Although I agree with the reasoning, these shop owners are fighting an uphill battle since one of the many reasons people buy new vehicles is because they really like the idea of extended service intervals. So rather than trying to fight this trend, as your competitors do, I encourage you to understand it, and rather than trying to sell each and every customer on the value of coming in more frequently, I encourage you to take a different approach.
    First of all, as in any business, you should explore every opportunity to provide additional services to your customers. They already trust you and your recommendations, so services such as door ding removals, tire installations, glass repair services, cabin air duct cleaning services, and detailing services are good examples of other services you can offer. Not only will services that enhance vehicle appearance or customer comfort put smiles on the faces of your customers, but at the same time these services will increase your ARO, which will help offset the fewer number of times you’ll see your customers throughout the year.

    The second thing you will need to do is ensure that your service advisors are very well trained. Any services that are not authorized during a visit will more than likely be lost sales, because it may be six months or longer before you see that particular customer again. By then, your service recommendations will either be forgotten, viewed as unimportant by the customer, or if they experienced a subsequent failure, they may very well have it repaired somewhere else. Worse yet, if it’s a safety item that you discover, and if it’s not repaired during their initial visit, the customer will be at an even greater risk. There is no question that the age-old expression, “We’ll take care of that the next time you’re in” is going to vanish from our industry.
    Lastly, with the understanding that you will be seeing the majority of your customers less frequently as time goes on, in order to keep your service bays filled you will need to ensure that you have a well-constructed marketing plan in place that will bring in the right kind of customers. To stay ahead of your competitors you need to invest at least 50% of your advertising budget into non-traditional advertising programs, and you should allocate at least half of your non-traditional advertising budget towards programs that are directed to what I refer to as the “emerging market”; the Y Gens and Millennials . These are the people that were born between 1980 and 2004, and there is no doubt in my mind that they are the future of your business.
    In summary, I encourage you to avoid fighting the evolution of automobiles or trying to sell your customers on a service schedule that they have little or no interest in buying. Instead, look for other ways you can help them when you do see them, by providing additional services. If the services you offer are cosmetic in nature, or if they provide added comfort to the customer in any way, all the better. You will need to have talented, well-trained advisors, you’ll need well-constructed programs in place that will keep your name in front of your customers, and there is no doubt,  you’ll need to have a marketing plan in place that will bring in even more… of the right kind of 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 elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
  11. Elite Worldwide Inc.
    By Bob Cooper
    A few years ago I had the opportunity to interview over forty people for a panel of customers that I moderated. My intent was to discover what drives their decisions in choosing an auto repair shop, and how they make their purchasing decisions. I spent well over an hour with many of these prospective panelists so walked away with some truly surprising and noteworthy insights, but the most profound discovery was that we as an industry have an expectation of loyalty from our customers, when in reality customers have no sense of loyalty to us.
    Now please don’t misunderstand me: I am not suggesting that we shouldn’t work hard to gain the customer’s trust, meet with their expectations, and do what we need to do to turn them into repeat customers. What I am suggesting is that shop owners should never just assume that their customers are loyal, and should instead have the mindset that they need to earn the customer’s trust and business with each and every visit.
     Loyalty, in its truest sense, is something that should be held in the highest regard, and reserved for our patriotism to our country, our commitments to our friends and family, and to the elements of our lives where we have a genuine sense of indebtedness and moral obligation. But our customers? No matter how great our service is or how much we care about them, in reality they owe us nothing, so there should be no sense of moral obligation on their part.
    This isn’t a viewpoint that I arrived at on my own, but by listening closely to your customers. Throughout the interview process I discovered that they feel absolutely no responsibility to return to your shop for additional repairs or services, which is why I’m sure many of you have found that your customers will zip into fast lubes for oil services rather than coming back to you.
    Now before you let your feelings get hurt, let’s look at another example. Let’s say that you have a local grocery store that you like, and visit on a regular basis. Even though that grocery store offers a wide selection of bread, you may very well go to a local bakery. You may feel that the bread at the bakery is better, that it’s still fresh by the time you get home, or that it just provides a better value in some way. Regardless of why you go to the local bakery, I suspect you wouldn’t feel as if you’re doing something wrong by buying the bread at the bakery instead of the grocery store, right? If that’s the case, do you think the grocery store owner should feel offended by your absence of loyalty, or should view your decision as a practical one? If he does the latter, he has two options: accept the fact that you’ll purchase your bread elsewhere, or learn what he needs to do differently to improve your bread purchasing experience so that you purchase your bakery items while still at his grocery store.
    Ladies and gentlemen, your business is no different. While I’m sure you have a few customers who can truly be considered “loyal”, if you develop the mindset that your customers should return to you out of loyalty, rather than looking for every opportunity to improve the customer experience, and truly earn their business with every single visit, then you will only be scratching the surface of your shop’s potential.
    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.
  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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