Shopcat

Good point Frogfinder, attitude is the foundation of learning. Attitude does not necessarily guarantee success, but a poor attitude is doomed for failure

I like the idea of movie passes. Your client will think of you from the time they pick the movie, thru the entire evening. It turns out to be "date night" for folks that really need it! Excellent way to show appreciation.

All the shops I've been involved with experience a dip in business this time of the year. I worked with one shop that set aside some advertising money to focus on this time of the year. He sent a flyer to existing clients with unsold estimates in the system a little before Thanksgiving. It was the " Check Your Sleigh Before The Holiday" campaign. It worked well. The idea was get your clients to think about all the driving that was going to happen in the next few weeks. These were the same clients that had the seeds of needed repair or maintenance planted earlier. I took alot of the dip out of the business, and like mspecperformance also improved the ARO.

I went to the AAPEX & SEMA shows last month in Las Vegas. It was awesome. A chance to see the latest & greatest parts and products. I highly recommend the training that is available for shop owners and service advisors. The other shop owners I met were interesting and informed. They brought alot of great ideas to the discussions. Its hard to find this type & caliber of training.

The guy that says"Yes I understand you make a lot of sense, but what if its the water pump. It looks like its leaking from there. I JUST WANT A PRICE." is not a prospective client of mine. I stick with why I will not compromize my professionalism by phone quoting. Tell him your shop is ready to help him, and wish him a good day. After all, this guy is a hard core price shopper. 20% of customers are 80% of the problem, and 80% of your clients are 20% of the problem. You must decide if this kind of customer is what you want. its that simple. Not everyone is a good fit as a client.

We all get this call from time to time. I like to start a dialogue with the potential client. I explain that the water pump may be the problem, or it may be a symptom. Ask what his profession is...then draw a similar analogy. Lets use a roofer. "well Mr. Jackson, what would you charge me to put a roof on my 2000 sq. ft. house? I know it needs to be replaced". Then shut up and wait for his answer!!! He will realize the question is loaded with variables and assumptions. Tell him and answer would be a disservice to everyone. Any phone answer he gets would most probably inaccurate. Get them talking, understanding, as you win him over, offer a no charge evaluation if you can. Get them in and make them in to a new fan that respects your integrity and professionalism. Its fun to do!

I think this business can be fun, and here's proof. I was sitting here singing and laughing to myself. Thanks Gonzo !! Lets get that video going!!

I think that labor charges, parts mark up and warranty depend on quite a few variables. I would crunch some numbers to get to the answer. Consider the following : How much potential repair volume is there, like number of Sprinters and miles driven in a particular time frame. Parts mark up and labor charges depends on what is typical retail in your area, what this fleet may be used to paying, and most important, what you need to keep this deal profitable for your shop. Warranty for fleets should be 90 days or so. Fleet vehicles are typically driven like they were just stolen. Do your homework, decide what you are willing to do and keep it profitable for your shop. Put your proposal in writing and have a meeting with the principals. I can also tell you that labor guides are skinny on the Sprinter, So charge accordingly. Its hard to beat the clock on these. What ever happens, do not undercut yourself and your shop. Stick to your needed numbers.

Great post, and a great reminder that this is a service business. We can not let the conversation devolve into a price war. Educate your clients and let them decide if they appreciate value, and the experience of having a go to shop. Quality is remembered LONG after price is forgotten. The experience cdhowell shared is typical of "saving money". The guy with the Jeep will have spent more by the time his vehicle is done correctly than he would have spent by simply having it done professionally. xrac's story is equally telling. Years ago I was managing a tire & repair shop having a similar problem with a few local "price cutter" shops in my area. I did a reader board sign that read "We fix $59.95 Brake Jobs". I got quite a few new clients that became loyal!!

Sprinter service can be profitable in the fleet format. Sprinters have pattern failures that become profitable after the learning curve. The multi function switch xrac mentioned is typical. Sprinters also need rack and pinions, oil coolers, turbo resonators, and light bulbs and tail light assemblies to name a few items. The key is to get paid for all the little things you do, and use the right parts vendor. The shop I work with uses Johnson Industries, they speak fluent Sprinter and they usually have a good amount of stock. The advantage of fleet service is the steady work, and getting efficient at typical repairs. Be prepared because other independent Sprinter owners will flock to you as well once the word gets out.

I like to get off of the list, otherwise they will call again & again. Here are a few ideas. If the caller asks for someone spicific by name, ask if that person is expecting the call? If not what what can I tell them this is regarding? if its the free Goodyear air hoses, answer " we only use hand tools"... if its the copier ink deal, tll them you still use 3 part carbon paper forms only. This gets the call overwith , and gets you off the list at the same time....Better than hanging up.

Congratulations on deciding to seek some outside help. Many professionals use a consultant. You need an objective viewpoint from an experienced and trusted advisor that has your best interest and the best interest of your organization at heart. An objective viewpoint is critical to understanding your shop beyond your in house staff and family advice. You must do something differently to effect real change. Time, money and effort spent on improving and learning is an investment. Your website is awesome, and lots of great reviews on Google plus. You obviously care alot about your shop and your clients.

It's important to make what you can on tires. What the traffic will bear is important to consider. I think the best reason to be in the tire business is the additional work that will be found on those tire deals. For example front end work. Steering and suspension, brakes and everything else you discover during the inspection. After all they will usually do what is needed to protect their tire investment. While it is important to profit on tires, the big picture is where the focus should be!

There are a few ideas that I think could help a lot. 1. Pick a few parts dealership you may typically use. Price the parts from the parts department, then try to get an estimate from the same dealership for a repair using those parts. You will probably see the service department has higher parts prices, because they also can not do repairs without proper margins. 2. Bstewart is right, The $75 to $500 spread is too wide, craft it into a few categories. 3. Consider using OEM alternatives. There are suppliers that specialize in Motorcraft and Delco for example. This will allow you to use something closer to dealer list, and get a much better cost factor. 4. Decide what you must make, and explain that you provide a service, which includes parts, labor, sourcing, estimating, customer service and not to mention providing a warranty. Take the focus off parts pricing. You don't go to a Restaurant and focus on the fact that your steak would be $ 4.25 at the supermarket, and it is $ 28.50 on the menu, for obvious reasons. We are in the service business, and you must steer the conversation to this fact.

I had a shop owner a couple years ago that had a similar situation. I noticed that a disproportionate amount of time was spent moving vehicles around to accommodate new arrivals or to park vehicles that were ready for pick up. The shop production was impacted by this constant "parking rodeo". My advice to him was get a shop with more parking, and a larger shop. I advised him that bottom line is you get to a point and your shop is like a root bound plant. After careful analysis, the shop moved and now grows at a healthy pace. You mentioned looking hard at the numbers. Consider what will happen if you don't move as well. Do your ROI and make an informed decision that works for you.

We all speculate about "what if...". I know that it is important for me to have a sense of purpose everyday. I think as human beings it is important for us to be productive in contributing in life. I've seen guys retire, lose that love of life. So my answer would pursue a passion that may have been previously unrealistic for financial reasons. Try to parlay the good fortune into something for the greater good that you are passionate about.

Joe, I appreciate the words of encouragement. I really enjoy your articles, both online and in the trade magazines. You are a credit this business and I appreciate you sharing your knowledge. Thanks!!

Your per vehicle average is low. I suggest you should be averaging about 2.0 hours per vehicle as an initial goal. Along with that, an equivilent amount of parts. The actual ratio is .80 parts to 1.00 labor. For your shop, 45 cars with an average of 2.0hrs per r.o., you will have 90 hours of production for those two technicians. That would be about 110% productive. This is a realistic goal, and can be achieved with some good processes in place. There needs to be a graduated pay scale to create incentive to find and do the work, I know with the numbers you mention, you are leaving work on the table. This is a particular concern because your customers count on you to let them know what is going on with their car. If you miss something during their last visit, they may wind up at another shop that will show them everything that is wrong with their car. However if you document and prioritize all the concerns, you will develop loyalty with your clients. I call it "we report, you decide". Give them what needs repaired first, then things in the near future, then recommended services, etc. They will be happy, you will also make more money, which means a brighter future, all because you are doing it right. I love this part of the business. You have good car count....now you need to make the cars count.

I believe people call for a price because they do not know what else to ask. They want resolution to their problem. Its expensive to get the phone to ring, so EVERY call counts. Start be talking about their problem, and use open ended questions, which will cause them to tell you what is really going on. " why do you think you my need a tune up?". The answer to that will give you the ability to get them into your shop. They may say "well, my fuel economy has dropped, and my uncle said I need a tune up". You may answer that they might not need a tune up, it could be something simpler. If you show you want to help, and add some new information into the conversation, then you are controlling the conversation and the situation. Demonstrate you want to help, invite them down to your shop with some urgency, " i had an appointment cancell, so we have an opening at 2pm, or 2:30, which is better for you? Then give them directions and make a new fan. They just want to solve their problem, and price is probably all they know to ask. It a pretty easy to beat price hack type shops, price is the easiest, laziest thing to sell.

I was wondering how often you meet with your staff and what do you discuss? Regular meetings are necessary to share your vision for your company and stay in touch with your staff. A good meeting has a purpose. In other words, there is a purpose and subject beyond " its Tuesday, so we have a meeting". Here are a few things I like to include in my staff meetings, and I would like to hear what you do in your meetings that works well. 1. Have your desired result in mind. Plan the meeting around what you want to accomplish. 2. Do an outline of your agenda. Set some subjects, add the WIFM factor and what the ultimate goal is. 3. Identify key participants and how they play into the plan. Ask for their help because they are effective and good at what they do. 4. Set goals and get them to participate with open ended questions, like " Jim, how can we get this done? this is right up your alley" 5. The wrap up, recap the thrust of the meeting, thank them for their help, and let them know we will recap how it went next meeting. I'm looking for some feedback on what works at your meetings....

Reuben, Nice looking shop and website! I agree the only way to run a shop is with good processes. I recommend developing a plan one step at a time. Take it from the beginning. Step one is how the phone is handled. The folks that answer your phone must be trained and effective. Develop phone procedures that get cars in the door. I'm sure you know the time, effort and money that goes into making the phone ring. A good service advisor on those calls will make all the difference in the world. Once you have the phone mastered and a good conversion rate, develop a process for the write up. Get your customer taken care of in a way that makes them feel like royalty. It your chance to shine and be sure they become fans of your shop. Hold regular meetings with your staff and share your vision of where the company is going, keep developing your processes and become the go to shop everyone is talking about.

Jordan, I just returned from the AAPEX/SEMA Show in Las Vegas, and this exact question arose in a group discussion, How do we create a culture of learning with our technicians? One shop owner has a roundtable meeting once a year to find out what type of training his technicians are interested in. This creates "buy in" with the techs because they have a say in planning the training. Another owner gets with a few local shops and they pool their money to hire a trainer for their techs. He does not like the typical training offered by vendors. And finally, Joe makes great points, It has to be part of the deal from the beginning. Tie the things the techs want to their responsibilities, like training.

Great article Joe! You make some excellent points. It is so important to treat every client, especially new clients very well. I think a good goal it to try to turn them into advocates. I have a few businesses that I an so happy with I pounce on the opportunity to share that with anyone that asks. When you develop clients into advocates, you are truly building your business for the future.

Joe, All good points. I think perception is reality for the customer. To insure every customer is impressed, I recommend the following: Have a well maintained facility that is clean and looks great. Super clean bathrooms, nice, comfortable showroom. Free WiFi, Large T.V., etc Clean the customers windows on every visit, and vacuum the car out Make sure the outside of the car & under the hood are clean, and grease free. Anything & everything that says professional should be done, because most of the time these are the things your customers pick up on, not necessarily the quality repair. Treat them like royalty, do it under the estimate, have it done early, fix it right the first time, and put them in control by sharing the information..."you report, they decide" Make every perception of your shop top notch, and you will accelerate your success!

Chuy, I've been down this road. I think the blank canvas of a service advisor with no previous experience can be a great thing. They do not bring any bad habits to the job, and that is a big plus. It sounds like you are doing a great job of providing the training and investing in someone who is not motivated. Motivation can not be taught, but it can be encouraged. Im guessing this individual is not giving you 100%. After a year with little success, she still has time to sit around, surf the net and hang on the phone? unacceptable !! I would recommend having a heart to heart with her, explain your concerns in detail and exactly what progress is required by setting some benchmarks, for example a closing rate goal, a per vehicle dollar goal with correct g.p. percent needed to prevent her from giving the work away. Give her a daily chore list, starting at opening the office, 10AM, update all customers, track all incoming calls, etc. Give her a detailed to do everyday list, since she needs it. Then also consder changing her pay plan from a livable guarantee that she must be on, to a small base pay complimented by a graduated incentive pay plan. This will ger her to do one of two things, 1. get with the program and apply herself, or 2. she will in quit and find a job that fits her "style". It's so expensive to hire & fire, so it is well worth saving her. She needs to understand you can not continue to run your shop like this, and you and more than willing to help her any way you possibly can. Finally, follow thru with what you tell her. This will get the process moving, and all will be better off for it, your shop, employees, your customers and her as well.