Elon Block

Mspec, I agree with you about not wanting to attract the die-hard DIYer or even the person that's looking for anything for free. Here's the opportunity I was referring to. The shops I work with are excited when a customer comes in with a piece of paper that has a code printout from a parts store - or even from one of the many independent shop owners that's advertising free code reads. Why? Because they have a proven, predictable method of educating the customer on what that piece of paper really represents and what has to happen next. This allows the shop to do the following: 1) Get paid to run diagnostics. [by the way, once the shop owner sees how easily this works... they STOP giving any money away, including they stop rolling the diagnostic fee up into the job. There's no reason to give anything away for free, because you're a professional.] 2) They have an opportunity to educate one more customer, in their community on why they are the best option to take care of all of their automotive needs. 3) Therefore, they add one more customer to their KPI line that is titled: "Number of Loyal Customers". And this is how the shop owner I was referring to increased his monthly diagnostics fees by an average of $2,000 a month for the last 6 months. This doesn't count work that came out of doing the repairs or anything else those vehicles needed, such as brakes, etc. This is how you turn challenges into opportunities, which equals a packed schedule. It equals full bays and money in the bank.

That means lots of parts wearing out and failing every single day. http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=5b3bb1e5-dcb4-4158-b167-135966a7d4bc There is a ton of opportunity out there for the shop owner who is positioned to take advantage of it.

I can definitely understand your frustration. The issue is: Manufacturers are struggling to be profitable. They don't care what they have to do to be profitable. If they have to sell it retail. If they have to sell wholesale, it doesn't matter. Tire manufacturers, AC Delco... the list is endless... are all selling Direct to the consumer. In this case, parts stores also have to do what they must do, to be profitable, to stay in business. So, they either have to have dozens of repair shops, like yours, that buy all their parts from them. Or they have to sell to the public. It can be frustrating when parts stores are advertising they can do all that stuff for free but the question becomes who's going to replace the parts. For example, even if the parts store replaces a battery, they're not going to do it correctly, so now a warning light is on or the clock isn't working properly. So, the customer still needs an expert, like you to take care of the issue, which gives you an opportunity to gain a new loyal customer that will come to you next time they need service of any kind. One of my clients has an Advance right next to him and was worried about the same thing. What he did was build a relationship with the manager and now, that manager sends all the customers that need services right over to him. He bumped his sales by 5% just by doing that. By the way, here are some interesting statistics about the DIY trends: http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=32e8a809-81a2-4fea-aad3-30cdfb857ae8 Everything is about turning challenges into opportunities.

Here are a couple of things to evaluate, in my opinion. Most consulting and coaching companies can help you to understand your numbers. The big difference between the various companies comes down to their philosophy on how to improve those numbers. The improvements usually fall into a couple of areas. For example, your pricing. And your service advisors ability to sell on Value - not Price. My suggestion would be to interview the prospective companies and see if their philosophy matches yours, in... 1) How you want to do business and... 2) How you want your service advisor communicating with/servicing your customers. Because that's where you're going to see a lot of differences.

I had a shop owner say this to me recently: "Why is it I run an honest shop, but I'm still struggling?" If you've ever wondered the same thing, this video is for you:

Technology is affecting every single area of the auto repair industry. It's impacting what tools and skills your techs need. The use of the internet by any customer with a smart phone in their pocket is also presenting challenges in the tools and skills your service advisors need. Shop owners who want to take advantage of this huge opportunity, are going to want to read this: Click here.

There are some interesting statistics about the industry, in this article: http://campaign.r20.constantcontact.com/render?m=1101171307072&ca=661034f5-54fb-4cde-a898-627f75ff2711 What do you think the challenges and opportunities are for you and your business?

Congrats! You must be extremely proud.

Hi everyone, I wanted to write you a quick note to let you know Pat, my business partner and one of the coaches and sales trainers for my company... Just completed a video addressing a concern one of our clients had about a new competitor moving into his town. Even if this isn't a situation you're dealing with, the information in this short 6-minute video addresses... How to position your business, as an auto repair shop, that believes in "treating the customer right". Here's the link to the video: https://sellmoreautoservice.com/auto-repair-shop-competition/ Hope this helps.

Welcome aboard! There are a lot of people here who have a ton of experience. What is your attraction to purchasing your own shop?

Many shop owners wonder if they have the "right employee" for the job, especially if their monthly numbers are not where they should be. There's a simple test to determine if that's the case. Click here to read about a conversation I had with a shop owner recently that helped put his mind, at ease.

There are many options. It can be confusing, especially when everyone is advertising, "Service Advisor Training." There are a number of things you want to find out when you're interviewing sales trainers. The most important thing you want to determine is: What is the training company's philosophy on how customers should be treated? In other words, does their selling philosophy match how you want YOUR customers treated? Here's an easy test: Would you feel good about using their word tracks and sales methods on one of your family members or a good friend? Here are some questions and other things to consider before you plunk down your hard-earned money: http://sellmoreautoservice.com/how-to-choose-a-coaching-sales-training-company/ Hope this helps.

In any given market, there are shops that have great reputations and there are shops that don't. The ones that don't have great reputations are the best advertisement for the good ones because it helps you stand out, as THE one that can be trusted to treat the customer fairly and take great care of them. For example, we were working with a shop owner recently, doing an onsite training. Within 2 blocks of his store, there was a huge billboard from one of the biggest multi-location tire stores, in that state. He was intimidated by the name, by their branding, their marketing, their advertising, etc. He was scared that these guys were taking away all of his business. The other issue was the chain had a reputation for low-balling pricing, which caused my client to think they needed to compete on price. We convinced the owner (and his staff) that customers care about price. However, price is not at the very top of the list, like they thought. People will pay for great, trustworthy service. As soon as they implemented processes that communicated Value to every single customer calling on the phone and every single walk-in, sales and profits increased dramatically. So, "competition" can work to your advantage.

The best time to find out if everyone is on the same page, is when interviewing people. Many shop owners only ask questions about the technical end of things. They skip the other subjects, which need to be discussed, such as the ones you're describing. In other words, if an employee has been taught one way of doing things, such as "seeing how much you can get out of a customer", it may be a breath of fresh air to work in a shop that believes in treating the customer right. Or as you describe, they may not be a match for your shop, if they want to sell things TODAY... that really aren't due for 90-120 days out, for example. Either way, the best time to find out those things out, is in the interview. By the way, if your shop has a revolving door of owners, maybe you are in a good place if the opportunity to change ownership shows up again.

Hi everyone, In case you hadn't heard, here's something you need to be aware of... AAA is making some changes, in the way they are doing business. Within the last few years, AAA has decided to build their own company-owned facilities. Here is a link, with an example of search results, drivers will see when they type in a zip code: http://bit.ly/2bk7prG Pay special attention to the search results marked (AAA Owned Facility). The facilities are impressive and are gaining traction: http://midatlantic.aaa.com/Automotive/ClubOwnedRepair/Aboutus/New As you can see, their slogan is, "Auto Repair From A Name You Trust". This is genius marketing, on their part... Because customers equate the AAA logo, as a shop they can trust. The other major change they've made is... The new requirements for the AAA certification renewal. Many shop owners did not read the fine print or notice the changes to the agreement. In other words, the fine print requires certified shops to give AAA access to the shop's customer database. The biggest concern is if you give them access to your customer database and then, they open a AAA Owned Facility, in your backyard... They now have a built-in customer base they can market to. What that means to you is... This a major conflict of interest because now, they have all of your customers' information, which they can use to actively market and essentially steal your customers. So, this is something to be considered, in deciding to continue to be affiliated, as a AAA certified shop.

Customers are searching for shops that can be trusted and will treat them fairly. If you're staying busy with many loyal customers, that's evidence that your customers trust you to help them maintain their vehicles. As for opening a shop... In my opinion, this is one of the biggest opportunities for shop owners, who understand customer loyalty is the name of the game. So, you've got that part down. There are many people that blame failure on lack of laws and regulations, in the auto repair industry. The truth is: unlicensed shops are not the cause of lack of sales. It's lack of trust (as you've already discovered). There is heavy competition for seasoned techs. If you set yourself apart, as a shop owner, who treats his/her employees with respect, you'll have a waiting list of employees, wanting to work with you. And with the proper sales training, to make sure you know what customers need to hear and what they need to see, in order to choose your shop over all of their other choices... And with a marketing plan that is based on getting a fast return on investment, you'll be in a good position for success. If you ever want to talk about your plans or you want someone to bounce some ideas off, feel free to contact me.

Everyone has a number in mind that represents the next level, in their business. It could be that you're at $750,000 and you're looking to hit $1,000,000. Regardless of whether your sales goal is higher or lower than the million dollar benchmark... There's a formula for making that happen. In a new video I just uploaded, I talk about the most important number to focus on, in order to reach your goal - whatever it is. By focusing on this number, you can quickly eliminate the need to spend thousands of dollars on marketing. And put that back into your paycheck where it belongs. Click here for this short video and then, let me know what you think.

Hi Everyone! I know I haven't posted here recently. We've just been super busy. But today, I strapped myself, into my chair, to share some timely information you might find helpful. There are three subjects I want to talk about. The first thing is: There's a new overtime law that may impact your business, depending on how you have your employees' pay plans set up. Here's a video that was sponsored by The Automotive Service Association that talks about how this new law relates to the automotive industry: The second thing is: Bridgestone announced some major cultural shifts, within their company. Even if you're not a tire dealer, you're going to want to pay attention to what they're doing... Because normally when you see a company this large, make this type of change, it tends to impact the entire industry. In other words, if they do this right... This can be a real game-changer because it will affect every auto repair shop and tire dealer. To read more about my take on this, go here: https://sellmoreautoservice.com/bridgestone-tire-company-bsro-vision-2020-program/ And last but not least, one of the reasons we've been so busy is we've been spending a lot of time in various auto repair shops across the country, working one-on-one, with some of our clients. There have been some great insights and discoveries that have come from those weeks, on the road. Keep an eye on this blog, in the coming weeks because I'll share some tips and strategies that are making a real measurable difference, in those shops' bottom-lines. In fact, the shops that are using these strategies are firing their marketing companies... And putting all those savings directly, into their own paychecks! So, stay tuned.

You're in a high traffic, highly populated area. Those people are getting their vehicles serviced somewhere. Why not at your shop? Especially considering the average age of vehicles on the road today are older than ever. Depending on what statistics you want to look at, the average age of vehicles are between 11 and 14 years! That's a lot of mileage with lots of parts and systems wearing out every single day! What that means to you is: There are more opportunities than ever to do very well in the auto repair business! Here are some things to be aware of. As a result of independent shops and the big chains marketing with loss leader coupons and discounts, today's customers have come to believe all repair shops do the exact same thing. Auto repair shops have fallen into the commodity category! In other words, today's customers believe everyone does oil changes. Anyone can take care of their brakes and anyone can mount a tire. Therefore, it all boils down, in their mind, to who has the best price. That's why your phone is ringing off the hook with people asking how much you charge for (alignments, brakes, tires, etc.) What that means is: unless you can explain to them why they should use your shop over all of their other choices, they're going to pick the guy with the lowest price - every time. (Competing on price is a race to the bottom!) The Auto Care Association published a startling report, which revealed that 1 out of every 3 customers are doing research and/or getting a second opinion after receiving a diagnostic about their vehicle. That number goes up to 1 out of every 2 customers, when the vehicle owner is between the ages of 18-44 years. I wish I had a dollar for every time I've seen a customer pull out their phone to shop around for better prices on an estimate they just received from a service advisor who wasn't skilled at communicating with today's internet- driven customers. The bottom-line is your service advisors have to become skilled at two things: 1) Being able to convert those price shoppers into appointments. And equally important... 2) Making sure your people have a selling system that removes 100% of the customer's doubts that: Your recommendations are legitimate Your pricing is fair and Your shop is the obvious choice to do the work. What does an effective selling system look like? First of all, your people need to be able to convert those price shopper phone calls and walk-in's into appointments. Then, when the customer comes in, there must be a step-by-step process for demonstrating to that customer why they should not only have that work done at your shop. But also why they should have all of their auto service done at your shop. Once they can do that, your bays will be full with profitable jobs, your schedule will be booked two to three days out, your techs will be busy and your numbers will be where they should be. You're a tire store so that gives you an even bigger advantage in the marketplace because you can position yourself as the "one stop shop" for all of their automotive service and repair needs! The key is to know what today's customers need to hear so they automatically choose you for all of their automotive needs.

This is the approach we recommend that works very well. And I agree. The insight is super valuable!

Robert, When you're looking at this new shop, here are a couple of things to consider: 1) How many loyal customers does the existing shop have? My definition of a loyal customer is somebody who comes in two to three times, on average, within a 12-18 month period. If you think about it, most customers are having auto repair services done two to three times per year. So, it's important to know how many are using THAT shop for all of their repair and maintenance needs now? 2) What existing employees do you think will be staying, if any? 3) Would you be providing the same services as they currently offer, or would you be adding additional services? Or subtracting any services? 4) How much of their sales are based on marketing, such as loss leaders? For example, if they're doing $15,000 per week in sales, but the majority of the sales are quick oil changes with nothing else, you're going to have to be prepared to continue that same business model OR be prepared to educating every single customer that you're no longer just going to be doing just the normal 20 minute oil changes. You're going to be offering a higher level of service than they're used to. Also, if their transactions are all coupon or promotion-based and the customers aren't buying anything else... that tells you something about how that business is perceived by the people, in that area. 5) That brings me to the other question, which is: are you planning on keeping the current name? If you're keeping the name, what are the current reviews like? The biggest thing to consider is: Selling general services is a much different business model than providing transmission services because general service customers believe everyone does the exact same thing. So, you're going to have to be able to communicate why they should your shop over all of their other choices, in your area. So, based on that, what is it you believe will be the reason the vehicle owners around that shop should use it - over the many other ones available to them? Do you already know what that is?

Robert, Welcome to the forum! The general services can be a perfect addition to your current business for a number of reasons. Is the new shop close to your existing business? What do you mean by overflow? Are those jobs you're trying to turn out faster? Or are you talking about something different? What kind of work are you doing now? Is it retail? Is it wholesale? Is it commercial? What kind of work are they currently doing out of the shop you're looking at? You answers to the above questions will help to provide some suggestions and direction.

Chuya, You have a lot of things going for you. Let's look at your demographics. Even though your landlord won't permit a sign on the main road, your shop is highly visible to everyone coming in to get their gas. The gas station is located on a dual highway with lots of traffic and shopping centers close by. You're surrounded by neighborhoods with tons of potential. You said the population is 25k. You only need 1305 loyal customers spending all of their repair and maintenance dollars with your shop, to hit a million dollars per year in sales. (It would be twice that, if your goal is two million dollars per year.) Here's a report on where those numbers come from: http://sellmoreautoservice.com/whats-your-magic-number/ So, I don't think you have a traffic problem that branding and marketing would solve. Here's where I would look instead: 1) How many calls per day are you getting from potential customers? 2) How many people are stopping in? 3) What is the conversion rate to appointments? 4) How many loyal customers are in your database? You can run a report and see how many repeat customers you have. That number is feedback as to how well you're communicating what sets you apart from all of the other shops your customers have to choose from. By the way, I briefly looked at your website and saw you have coupons that are for new customers only. We've interviewed lots of customers and one of the biggest pet peeves loyal customers have is when shops offer discounts to new customers while they, as loyal customers, have to pay full boat. Just something to think about.

Websites like repairpal, automd and others are not going away. Customers are using these sites to protect themselves and to make sure they're not being taken advantage of. So, those websites didn't create the problem. They're filling a need the public has. In regards to using those sites for marketing purposes... Those sites can send traffic to shops that feel they need more traffic. The problem with any form of marketing is: Unless you know how to convert that phone call or walk-in, into an appointment... You've wasted your money (and your time). Let's face it. Every caller has a pen and paper in front of them with a list of shops they're calling. Your service advisors need to be effective at communicating what sets you apart from all of the other shops that customer is calling. Otherwise, you will be competing on price. So, in most cases, you're better off investing your money in service advisor training rather than on more marketing. By the way, any form of marketing based on discounts or promotions... whether it be a coupon on your website, direct mail, PPC or any other price-driven promotions means... You are reinforcing the commodity mindset. In other words, you're actually training your customers to be on the lookout for more discounts from you - or to check with your competition - to see if their discounts are better than yours. I was doing an onsite training, in a shop recently. The service advisor said to a long-time customer, in the checkout process... "Just so you know, if you provide us with your email address, we'll send you coupons and promotions." The customer replied, "Wow! I never thought of looking for coupons for auto repair services! Thanks for the idea!" When I pointed this out to the shop owner, he realized all of his marketing methods were teaching his customers to become coupon clippers and unless his coupons were better than his competitors' coupons, he was fighting a losing battle. He was also surprised to discover that even though his traffic was up, his sales were down, because most of the customers weren't buying anything other than the promotion. Since then, he's been able to cut out almost all of his marketing. Because now, his service advisors are selling almost every single job because they know how to communicate to the customers what sets that shop apart from all of the competition, in his area. Here's a video I did on one of the biggest misunderstandings about auto repair shop marketing: