Shopcat

Peter Drucker has been called the founder of modern management. He was a brilliant Management Consultant, Author, and Educator. One of his best quotes is: “The Entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” This tells me that we must constantly evolve in the way we conduct business. What is the biggest opportunity we get every day? The phone! Incoming phone calls are a regular part of every day at any given shop. The question is, are you exploiting this opportunity to its fullest? Probably not. Most shops have no real process, so the caller guides the call, and we hope for an appointment. Every time your service advisor fails to convert a phone inquiry into an appointment you lose a lot of revenue. Not only losing the amount of the average repair order, but the repeat business that lost client would have produced and all the references that could have come from that new relationship. The cost of not converting a call to an appointment is staggering. Let’s say you are losing only one conversion each day at $250 / average RO, 300 working days per year, that would be $75,000. That is real money. Research shows most shops lose 2 to 3 phone leads each day. The good news is you can better exploit this opportunity without spending any additional money and bring that business to your shop. Here are a few things you can do now to improve your phone call conversion rate: Before the Call: Meet with your team and select the things that set your shop apart from the rest. For example, 22 years in business, locally owned, ASE Blue Seal shop, Nationwide Warranties, etc. Craft a policy that when an employee is on the phone, everyone else covers for them so that the call can go on uninterrupted. Always answer the phone with pen and paper in hand. Answering the Call: Answer by the 2nd ring. Have a uniform greeting that works like, “Thanks for calling Tiger’s Tires, this is Bob”. You answered the phone to help, so it doesn’t need to be said. Always answer the phone with a smile. Answer with cadence that is not rushed and use a pleasant demeanor. Ask for the caller’s name, write it down, and use it during the call. Dale Carnegie said that a person’s name is to that person the sweetest and most important sound in any language. During the Call: Establish a connection with the caller. Discover the purpose of the call. Use complete sentences, not “What year again?” Listen closely to the caller. Don’t be distracted by other things happening around. Ask open ended questions that get to the caller real concern. Asking questions does 2 things; It builds trust and gets the needed information to get them into your shop Pace your caller. If they speak quickly, you do the same. If they are more conversational, slow your roll and keep their pace. How and when to put a caller on hold: Before putting the caller on hold, let them know why and ask them if they can hold briefly. “Mrs. White, our service manager would be the best one to answer your question, so could you hold briefly while I get him?” Next, get them quickly; give him the necessary info, and what line Mrs. White is on. Now, they should pick up the phone and start with, “Mrs. White, thank you for holding, Bob tells me you have a question about your….” Have you ever been on hold, the person on the other end just pick up, and immediately start back like they were never gone? It’s unprofessional and plain rude. Notice the customer does not have to tell her story over again. This is showing care and professionalism. It’s a simple thing to do but it is very much appreciated by your clients. Closing the deal: Get them into your shop Offer to set up towing Ask when they could bring their vehicle in for an evaluation and get them to set an appointment. Remember they need something. No one calls around for the fun of it. Get their concern handled. If they don’t commit, find out what concern you have not addressed and handle it. Ask more open-ended questions until they commit. Keep your notes for future reference Be sure to leave a great last impression. Offer a closing line like –“Nice speaking to you today” or “Look forward to meeting you”. So, don’t miss out on the biggest opportunity you have every day. Think of those incoming phone calls as more revenue for your business and make it your mission to convert them into as many new customers possible. View full article

Great article Gonzo. I think this line really summed it up for me. " Theres more to it than the cars. Its something that gets in ya, its something that inspires you to deal with all the changes." Well done and as always an excellent read.

5 Star, Scripts can keep the presentation on point, but the service advisor must believe in what they are selling. To that end I recommend vendor training for the service advisors (Wynns, BG, etc) on the fluid services. Let them get some details, like that brake fluid is hydroscopic, how fuel systems develop varnish, the benefits of upper air intake cleaning. Do some needed services on the advisors personal vehicles. Once they are believers it will shine thru their sales presentation.

Thanks! I appreciate the feedback and the kind words.

With change comes opportunity. The shift in the auto repair industry is definitely toward women as your primary clients. The good news is your competition is probably unaware of this trend. The Automotive Aftermarket Industry Association discovered in a recent study, almost 90% of women are now involved in the decision process for their vehicle’s repair and maintenance, 68% of them take the vehicle to the shop themselves, 45% are solely responsible for their auto repair and service decisions. That is amazing. Do you have 60% or 70% female clients? If you do not, you are missing out on a lot of business. If you are looking to develop a brand or a reputation, I would consider becoming the go to shop for female clients. The fact that the numbers are so big makes this an attractive area on which to focus. Female clients have specific needs that are easy to accommodate. Women are looking for a shop that is informative, treats them with respect and appreciates their business. Forget the think pink garage or anything that can be construed as condescending. Put your female clients in the position of making an informed decision and they will be loyal to your shop. Women Think Differently Than Men: While this is not news to anyone, most shops have had the same approach to business all along. Now it’s time to focus on the 60%-70% of this lucrative and loyal market. The traditional male client is a transactional buyer. His loyalty is to the best deal he can find. This kind of client may not remain loyal to your shop. Let’s get a general overview of what a female client wants from her repair facility. Your target female client is a relationship buyer. This means when you develop a relationship with her, she will develop loyalty toward your shop. You must identify her needs and fulfill them. Here are some things you should know. ● About 25% of female buyers shop online daily, and 80% to 90% will share deals they find with their friends and family. ● Your target female clients are more likely to be busy parents with a demanding schedule. Their time and is very important to them. ● Most women will not complain if they have a bad experience, they simply will not come back to your shop. However they will share this experience (good or bad) with people they know. ● Women want a shop that is very clean and has a professional quality about the entire facility. ● Women will drive a relatively long distance to a shop they feel loyal toward. ● Women want to make informed decisions. They value information that will empower them to make the right buying decisions. ● Your female clients are far more likely to keep appointments and follow trusted recommendations. ● Women want a shop that is a good citizen of the community, and demonstrates it with action, not words. ● They want a fair price, but will not expect you to be the cheapest. These are just a few things women are looking for in a shop. You have to cater to these needs if you want to build your client base and car count. Communication and Educating your client demonstrates concern and gives her more empowerment. You are not telling her what to do or think. You are sharing information that she can use to make informed decisions. Think about purchases or decisions you make without really understanding the situation fully. It is a bad feeling, especially if you consider the importance of having a dependable car at your disposal, but not being comfortable deciding on how to maintain or service it. If you empower them through communication and education, you will have a loyal following. Educating your clients is just a matter of changing how you present the information. The presentation should be based on the vehicle inspection and formatted into a list of priorities that includes why one item is more pressing than the next item. Here is a format to use when presenting the results of an inspection. Needed Repair: This would be what you recommend doing first and why. For example, front brakes that are metal to metal. You would probably recommend calipers, rotors, pads, rear brake clean and adjust, as well as a brake fluid flush. Reliability: These recommendations might include c.v. shafts because outer boots are cracked, but not broken, serpentine belt and tensioner that are worn, but still operational. Things that must be done soon, before reliability is compromised. Preventive Maintenance: These are maintenance items you recommend due to mileage, or being indicated by your inspection. Some possibilities may be a tune up, timing belt, struts, radiator hoses or transmission service. Economy: These things are recommended for better economy, like a fuel injection service, air intake cleaning, air filter, or oxygen sensors. These would be the finer points that really put your client’s car into top shape. Education is the key to building trust with your client. You must explain what they need and why they need it to the point that they are completely at ease with you and your recommendations. This level of understanding is the key to creating the empowerment that is so important to your client. Check out the following ways you can educate your client. ● Visual Aid: Use a computer animation of the system to show how the effected system works. Explain it in a way that shows what happens step by step, from pressing the brake pedal, master cylinder and power booster, down to friction material on the rotors. Mention each part along the way, whether it’s leaking, worn or inoperative. Use words that are professional like remove, disassemble, replace, worn out, leaking, etc. Do not use phrases like shot out, blown, yank, tear, pull, jerk, etc. She does not want anyone to yank, jerk or tear on her car. The visual imagery from these words is enough to lose the sale and the client. ● Show and Tell: The next step after the computer animation is to go out to her vehicle and show her each item you recommend. Point out the physical evidence for each recommendation; go as far as using a dip strip test on her brake fluid to demonstrate it should be flushed because it is contaminated. Show her the gouged rotors, and a new one, the leaking calipers, her paper thin and metal to metal pads. Explain that has been the source of the noise she’s been hearing. Ask her if there is anything she has a question about. The final part of communication and education is consistency. Every time a client comes in you should double check the last work you did, because if there is a problem you can address it right now. Also check the recommendations you made last time and give her an update. Be sure to record on each invoice what items were declined. ● Follow up each unsold recommendation with some internal marketing. Send an email within 30 days with a discount. ● Use service reminder stickers for her next service. Studies show women rely on these. Refer to it as a service, not an oil change. I highly recommend machine printed service reminder stickers with your shop’s name, phone number and the mileage when the service is due. Get the machine that prints them out. Have the service advisor remove the old one and replace it with the new one. This will help ensure a steady car count and build loyalty. It is also a very professional touch. Be sure to list the items inspected and done during a service on the invoice. Review the invoice line by line and have your client sign the invoice. Let’s do an example of a service: The 3,000 Mile Service – 5 quarts of Valvoline 10w30 Fram oil filter set tire pressure to 35 psi. spare tire and jack are in place & serviceable belts and hoses appear good at this time serpentine drive belt appears good air filter may be needed next visit charging system good at this time front tires at 6/32 remaining rear tires at 3/32 recommend replace soon Etc…wiper blades, lights This gives your client peace of mind and promotes trust in your shop. This also demonstrates the difference between your shop’s full service and the $9.95 oil change down the street. Remember always schedule your client for their next visit before they leave. Follow up in a few days to see how the service was and if she is happy with the repair. Your shop will enjoy a better average R.O., a stabilized car count, and a growing group of advocates telling everyone what a great shop they found. View full article

ScottyP's "Autozone" reference is spot on. They call it a diagnosis! My answer is , " so if we install the ------------------- , and it some how does not fix the problem, You are going to be fine with me, and go see the guy at Autozone with the situation for him to diagnose, right?" We have to explain a good and proper diagnosis is the most cost effective solution. Its a challenge at the very least.

The owner giving deals and letting folks take their cars before they pay is typical. I think a service advisor as a firewall is a great idea. Give them parameters and back them up. In the end people respect the fact that you have a business that's run like a business. The "deal" customer and the "ill pay ya later" customer usually ends up upset, and that's what you get for your trouble.

Nick, all these guys make great points. Another way to look at it is to figure what you want to make for yourself, then add in all of your fixed expenses, rent, insurance, utilities, etc. Figure what it will take to make it happen in total sales dollars (with good profit margins) for a year. Divide it into work days to see how much you will need in daily sales. Take that number and figure .80 parts to 1.00 labor , or about 50/50 for an estimate. Lets say you need $ 2000.00 in sales per day, that's about $ 1000.00 in billable labor. Divide that by your labor rate, lets say $ 80.00. You will need to produce 12.5 hours of billable labor per work day. There is a number you can work with as a starting point. From there you can figure you will need about 4 cars per day at 3.0 hours each. This will also let you see what kind of staff you might need. I hope this helps, and good luck!

Maybe its a regional thing. The thing is the south seems to be it takes so long to get the essential information. Everyone has a story to tell, and they wander off point with something else, then back to the situation, but so slowly! Meanwhile the phone will not stop, parts are being delivered, it feels like some of these folks are poking along at 5 mph on the freeway of life.

Great article Gonzo! The DIY crowd can be a challenge. When they finally call a shop they are frustrated and usually emotionally and financially invested in a "repair" that has not repaired anything at all. This is a bad starting point to say the least. Open ended questions are a good strategy to get some actual facts. Its always like an interrogation with these guys!

Great post Joe. We should never think we will be successful simply because we have the necessary components. The leadership is the catalyst that can make it happen.

I was wondering what is your best interview question? I know the collective mind of ASO is full of wisdom and great ideas. Maybe the best interview question you SHOULD have asked. I figure by the end of this thread we will all have a few fresh questions for that next applicant.

KMS, keep us posted on the results. I think it will be a winner. I like the strategy of previous recommendations because those seeds are planted, and the discount just starts them thinking about those items all over again.

Look into an ionic air purifier. It uses an electrical charge to enhance air filtration. They also offer filters for these machines that specifically target smoke. They are small , quiet and very effective. These machines work great. Just a little tongue in cheek here, but maybe get a snack machine too! LOL.

Perception is reality for customers. If you do a few of the small labor jobs at no charge, you are looking out for them. Its a matter of having long term business vision. Your customers develop affinity if they stop by their regular shop with a problem and leave feeling like you are looking out for them, not just charging for every single thing. This will pay off a lot more than the couple of tenths labor you could have charged.

Another great one Gonzo. I laughed out loud again ! I thought the U.S. Army had a lot of acronyms, but this business may have more. I've had customers ask me " We're you and that technician talking about a car ?" Hilarious. Thanks for an awesome article!

Welcome back…Time to start some of the heavy lifting. The fact of the matter is that if your plan is not written, it will probably not succeed. Let's talk about the preparation. Get a pad of paper and start developing a plan. Equally important as a written plan, is having time based deadlines. No deadlines, No progress. It's that simple. Whether you have an inspection program that has gone by the wayside, or if your shop never has had such a program, it is imperative that you implement one and stick to it forever. Here are just a few reasons it is so important. You owe it to your clients to keep them aware of the condition of their vehicle. They depend on you and trust you to let them know exactly what's going on with their vehicle. You owe it to your family & employees to make your shop better and grow your business. If you don't do it, some other shop will, or already does this. You must take charge of your business and lead. This will take your business to the next level. A 20% increase is huge to any organization and everyone in the organization Time to get everyone aboard. Have a company meeting and let your staff know that you want to take the shop to the next level. Let them know that you want their help with designing an inspection form. This gets your team to buy into the plan. This is a key element to success. Set the time for a follow-up meeting and let them know you look forward to getting input from each one of them. Get with your service advisor for input on how the inspection form will be routed & utilized. Ask your office manager for ideas on tracking the forms and possibly how you could compile the information into a summary. Also, how you could best track the ARO information as this new program emerges. Continue to speak to your entire staff about this new program and why it is important to them individually. People instinctively think in terms of "What's in it for me?". You win their hearts and their minds and best efforts will follow.

Great observations all around. Bstewart is spot on that this should have been dealt with a long time ago. The shop owner talks a good game, but he will tell you he avoids confrontation. I personally think side work is fine for family, and even friends. However if side work morphs into an income stream for the technician, that's where the line is crossed. Then he no longer holds the job as a primary obligation and crosses over into being your competition. The challenge is crafting a company policy that make it clear and definitive.

I have the pre employment questionnaires ready to send. I will be emailing them today. If you would like one, and have not contacted me yet, just sent me your email address. Thanks

I would be glad to provide this quiz to anyone that wants one. E-mail me and I'll send one to you. Thanks

I set up a shop that had no previous key control program that works well to this day. Its based on the last number of the repair order. Get a 4 foot by 4 foot piece of thin plywood, mount in a convenient place and evenly space cup hooks from left to right with numbers 1thru zero above them, do 4 or 5 rows from left to right descending down the board leaving room for a set of keys in between. 1 2 3 4 5 6 7 8 9 0 * * * * * * * * * * * * * * * * * * * * The rule is the keys are hung on the board before dispatching, and returned to the service advisor when done, and he will return them to the correct hook. Anyone on your staff can find keys in a jiffy. Low buck, effective and professional.

Local shops are preferred by the motoring public because they are more accommodating and reasonably priced. If you have a brand, work it. If you do not have a brand, develop one. Think outside the box, be unique and you will not have to worry about the dealers.

I like the guys that are saving money by fixing their car on their own. The story goes like this, my uncle had a car doing the same thing as mine was and injectors fixed it, so I replaced my injectors myself to save some money but it was doing the same thing. So I did some research on the internet and decided to replace the fuel pump, but it still does not run. Now I need you to give me a worst case estimate on the phone because I don't know if I can afford diagnostics or the repair for that matter. I just spent $ 1400.00 dollars saving money!!!