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New Car Sales are up. Good or Bad News for Repair Shops?

Joe Marconi

By Joe Marconi
in Automotive Parts & Suppliers

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Tires Too Collaborator

Tires Too

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I think this year will be a good one for the aftermarket. New car dealers have definitely been doing a better job of keeping the service business over the last 5 to 8 years with "free" maintenance coverage, but new car sales have been rebounding from a low of 10.5 million vehicles in 2009 to about 16.5 million vehicles in 2014. As many of the "free" maintenance coverages expire, I don't see the dealerships having enough bays to service these older vehicles. We saw a significant hole in the age of vehicles coming into our shop as a result (I believe) of the Cash for Clunkers program. We are starting to see an increase in the 2009 through 2012 model year vehicles coming into our shop which should continue for the next 2 - 3 years.

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Richard Ehler Explorer

Richard Ehler

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I think Joe is right to be concerned. My goal is to get "everybody" within 3 miles of store to come in for something. May be tire repair, emissions test, oil change, bulb, etc. Then do my best to persuade them that if this visit was easier than going to new car dealer, why no make all visits easier by bring "all" work here.

  • 3 weeks later...

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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