Joe Marconi

I like the six months inspection. Before I sold my business, I began a Pit Stop Service, where customers were scheduled every 6 months for a basic inspection. Unfortunately, the plan was implemented just before I sold the business, and without much data on it success.

Great strategy! Question, How long have you been using this strategy, and how has it made a difference in overall GP dollars?

Source: Feature in Ratchet and Wrench Magazine https://www.ratchetandwrench.com/magazine Vehicle Delivery Process: The First Step to Your Next Sale Every fall I have my chimney cleaned. For years, I would search for a reputable local company. Then, 10 years ago, I met Mike at AAA Chimney, and he became my go-to guy. Each year, Mike returns and earns my trust over and over. You may wonder if it's because he cleans my fireplace better than anyone else or if it's the price. While those are reasonable questions, the real reason why he gets my business year after year is simple: Before he leaves my home, Mike takes the time to review exactly what he did, gives me tips on how to best care for my fireplace and then he books the next appointment for the following year. In essence, he performs what we know as a vehicle delivery process, or in Mike’s case, a chimney cleaning delivery process. Performing a comprehensive vehicle delivery process and booking the next appointment in our industry is nothing new. Many shops have been doing it for decades. However, there are still many repair shops that have not adopted this goldmine strategy. The vehicle delivery process helps to create that memorable experience that gives the customer a compelling reason to return. When combined with scheduling the next appointment, your repair shop stays branded in your customers’ minds, improving customer retention and helping to ensure future sales. The auto repair business today is not like it was. Even 10 years ago we would measure customer retention with a factor of four, meaning that customers visited your repair shop about four times a year for routine services. Today, unless there’s a breakdown or a warning light, you’re lucky to see your typical customer once a year for routine service. Consumers these days don’t have the same sense of urgency regarding vehicle maintenance as they once did. Just think about all those customers who have traveled over 15,000 miles in their vehicles since their last oil change. This trend has been slowly creeping up for the past 15 years, if not longer. There’s another factor we need to consider: if the length of time between visits is too long, the average consumer loses some of the emotional connection they have with their repair shop. What you don’t want to happen is when the oil maintenance light does come on, your customer just finds the most convenient shop to get the oil service done. Think that doesn’t happen? Unless you're fortunate enough to be in a heavily populated area with no competition, and car counts are never a problem, you will benefit from a well-defined vehicle delivery process; a customer touch point that brings the entire customer experience full circle. Vehicle delivery is never a transaction. It is an opportunity to keep building the relationship. It’s also essential that your service staff discusses and books the next appointment. Everyone reading this knows that booking the next appointment is a strategy being done by dentists, doctors, hairdressers, nail salons, eye doctors, pet groomers, and yes, even Mike at AAA Chimney. Booking the next appointment is not limited to oil change services either. Just consider all those recommendations you make on just about every car you service each day. Why not create a process that helps to fill up your calendar with profitable future services needed by your existing customers? Don’t rely solely on your CRM program either. The impact of an engaging vehicle delivery process is powerful. Every customer that leaves your shop today will need future services and repairs. The question is: Where will they go? Make your vehicle delivery process your first step to your next sale. View full article

All great points, and also interesting to hear from your perceptive.

Great post relating traditional auto repair and service to the transmission business. In your opinion, did those customers that understood maintenance have less breakdowns with respect to transmission failures? Or do some models have have an inherent problem? Or a combination?

A must see for all business owners and leaders! An important lesson that will improve our lives and the people around us.

Time management is a shop owner's responsibility. Too often, you are doing too much. You are spread too thin. I get it, and I understand it. I was a shop owner for 41 years. And being sucked into the role of fireman was a daily ritual. However, if you are putting out fires day after day, you are not building your business. Why? Because you are taking care of the immediate needs, the things that are urgent and happing right now. To build a more profitable business and a better future, you need to live in the future. And that means working on things that will have a greater impact in the future, such as recruiting when you don't need to, working on your marketing plan, creating a budget, and setting the goals of the company. Allocate time each day, even if it's only a hour or so, to work ON the business, and not IN it. Build the processes and procedures that gets the team on the same page. Teach and mentor, as opposed to doing it all yourself. Learn to delegate tasks that you don't need to do. A wise man once told me, "You, the shop owner, should only do the tasks that only you can do. Everything else should be delegated to others."

Way back in the 1980s and most of the 1990s, we would base our business by the frequency of customer visits, usually 4 to 5 times a year. Those visits were mostly Oil Changes. Today, you are lucky to have customer that even THINK about doing an oil change. Most customer wait for the maintenance light to come on, and some wait until the OIL LIGHT comes on! Plus the miles driven has gone from 3 to 4,000 miles to well over 10,000 miles for the average oil change interval. With all that is changing, including the consumer's lack of understanding proper vehicle maintenance, isn't it better to sell a complete service, rather than just an oil change? Let your customer know that we are going to inspect the entire car, bumper to bumper, filters, etc., everything. And charge accordingly. Your thoughts and comments?

A shop owner friend of mine was concerned that a tech candidate did not have a resume. This tech reached out to this shop owner from a social media ad. Also, this tech has been working at a dealership for 10 years, and now wants to make a move. So, should we require a resume for every situation?

Words of wisdom, Gary. Thank you for the feedback!

It would be interesting for you to give us periodic updates, this is an interesting topic.

Charlie, I like the way you think, my friend! Thank you for the feedback!

“Leave your problems at home” is a common expression. The thinking behind it is that if you are having a problem at home, it will affect your performance at work. So, change gears when you get to work and put the problem out of your mind. However, can people just shut it off? Can they leave their problems at home? Consider this example; your technician and his wife have a very sick child who is getting worse. Their doctor is concerned and wants to refer the child to a specialist, fearing that something is seriously wrong. In this situation, do you truly expect your technician to shut it off, and simply put it out of his mind? Problems at home are part of life. As a shop owner, you need to be more understanding and have empathy. You also need to build a solid relationship with your employees that allows them to approach you in times of need or crisis. This is a key component to building the right culture with high morale. Here’s another scenario to think about: Let’s say your service advisor is overwhelmed at work. She is having a hard time keeping up with all the work and reaching the point of burnout. In addition, she works with a problem technician that is always complaining about something. Do you think this service advisor can shut off her work problems and not bring them home? The bottom line is this; as shop owners, you need to reach your employees on an emotional level. Yes, you are running a business and you have your own set of issues and problems. I get that. But your success is directly related to the success of the people around you. That means that everyone must feel that they are people first, employees second. The next time you see something off with one of your employees, don’t assume the worst. Pull them aside, show them you care, and ask if there is anything they need and if there is something that you can do to help.

Wow, great advise. And detailed nicely!

Have you had great success? Any issues that were unforeseen? And where do you obtain the used tires to resell?

While I agree that many tires with life left on them do end up being discarded, how can we as an industry verify that the used tires we plan on installing on a customer's vehicle are safe and reliable? As a shop owner for 41 years, I am not a fan of selling used tires. The biggest reason? It goes back to my question above. The liability question is also concerning. If there was a way to inspect and certify a used tire, then I would look into it. One last thing, "environmentally conscious" is a good think, but we need to consider the human safety aspect too.

Summed it up with perfection!

As mentioned earlier, my experience was not good. First, the clientele that it attracted did not fit our profile, and many were not even from our area. The rate for installation, repairs, and removal was set by the company. My techs did not like doing the work, and my service advisors had many challenges, as Bantar pointed out. Those people that needed the install came in already angry about it. And none of customer became regular customers.

I tried it, it was a horror show. In my opinion, not worth it. There are so many other ways to attract and retain your core, key, profile customers.

So, what you are saying is that happy employees will produce more, be more engaged, which benefits both the employee and the company. Make sense!

I am hearing more and more about shops using a Labor Matrix to increase labor profit. I have been a long time proponent and have used different labor tiers. For example, we worked on passenger vehicles and heavy trucks. The labor rate was higher for an F500 Dump Truck than it was for a Honda Civic. The labor matrix is a different, it allows your business system to factor in more hours for either longer jobs, vehicles over 20 years old, or any other criteria you decide. For example, if the labor for a job is 8 hours, that job may be billed with an additional 10%, making the job 8.8 hours, not 8. I would like to hear from shop owners using this strategy and tell about the impact on their labor profit.

Come Tour The JASPER Plants As Part of Fly With The Eagles, September 26th-28th in Indianapolis, IN!     Tour JASPER's Headquarters and Power Drive Facility at Our Upcoming Fly With The Eagles Shop Management Training! Come in a day early to our Fly With The Eagles training in Indianapolis, IN, and join us for a tour of JASPER's Headquarters and Power Drive facility in Jasper, IN on September 25th! Transportation will be provided. Get to know your fellow shop owners while getting a guided tour of the nation's largest remanufacturer of engines and transmissions. Come with us to tour the plants on September 25th, and then get three incredible days of training from September 26th-28th. In addition, JASPER customers receive $200 off course registration - utilize your co-op funds as well! Elite’s AMI-Accredited Fly With The Eagles is the most complete foundational business course around, and it is exclusively designed for you, the automotive shop owner. After attending this industry-acclaimed course you will be able to: Improve your skills in leadership, time management, and goal setting Find and hire superstar service advisors and technician Fully understand your shop’s financials and key performance indicators Turn your existing employees into self-motivated superstars Fill your bays with the right kind of customers through new marketing strategies Utilize your step-by-step Action Plan to ensure your ongoing success Network and connect with like-minded industry peers that will be valuable resources in your personal and business life. You'll leave this event reenergized and ready to take your company to the next level - in addition to having visited the nation's largest remanufacturer of drivetrain components. Space is limited for the training and JASPER tour - Be sure to reserve your seat ASAP!

You will absolutely sell more tires by taking photos and documenting tread depth during the vehicle inspection process. And also by training your staff to discuss tire safety with your customers. If you want to sell more tires, do a little research in the tools and equipment needed, staff training and speak to tire reps at different companies. In the 1980s I would send all my tire business away. In the 1990s, when I expanded my business, I added tires to my list of services. I did not compete with the tire stores, that wasn't my goal. It was a way to keep my customers in my shop and provide a service to my customers.

You bring up excellent points, especially these days. As shop owners, should we find ways to improve sales and profits throughout the year, rather than relying on past history to determine the good times of the year and the slow times?

You affirm what I am trying to bring up. I don't think that it's too over the top when an employer insists on having all employees arrive on time. You worked it out in your shop and are flexible with your employees to meet their. particular needs. I get that. Today's world is different that 40 years ago. I just don't want to see a slippery slope where they may be other "reasons" to come to work at a different time.