Climb to the Top

How to climb to the top while you are at the bottom.  On a daily basis we hear the words “how can I afford training if I can barely afford payroll?” Although this year was predicted to be a good year for automotive repair shops, car counts are still low and you can hear a pin drop in many service bays across the country. There is an end in sight, however, as business has begun slowly picking up over the last couple of months for many repair shops that we do business with.

During times like these, shop owners are holding on to every bit of cash flow they have and slashing their advertising and training budgets, which is leading to the demise of many of them. You cannot survive any longer by competing on price with the large repair shop chains and discounters. Do not let hesitation and fear of the unknown get in the way when this is the perfect time to improve the service your shop can offer. Right now, many shops are in the best position they have ever been in to take their business to the next level, yet they do not realize the opportunity.

In past recessions there have been companies who have gone from good to great by increasing their marketing spending while other companies reign in expenses and cut back on advertising. Several studies have shown that companies who continue spending on marketing and advertising during recessions perform considerably better than those who slash their budgets and reduce spending. When the market is flooded with advertising messages, it is hard to separate your shop from the competition. Right now you could achieve greater success at differentiating your shop from the rest of the herd.

It has been proven time and time again in customer service indexes that consumers prefer service from independent shops than dealers and chains. In a 2009 consumer reports study involving 349,000 vehicle owners, more were very satisfied with independent service (75 percent) versus dealerships (57 percent). This is an edge that independent shops have over dealers and chains that you could be taking advantage of, given the level of service you provide. This is because you have the ability to take better care of your customers and build more trust than dealers and chains ever could. However, when most independent shops advertise, they are not promoting their greatest asset and therefore targeting the wrong customer.

Most shops advertise discount offers or gimmicks to drive anyone and everyone into their shop. The customers that this tends to attract are price shoppers, who have questionable loyalty. Your ideal target is the value customer who will keep coming to YOUR shop for maintenance and major repairs. Once you provide a level of service that exceeds their expectations, this customer will also generate word of mouth marketing for your shop, which is one of the most effective forms of advertising, and it is FREE! Right now is the perfect time to sit down and analyze your business, what you currently offer that is different from other shops, as well as opportunities to improve your service offering. By taking the time to look at your business model and planning ahead while car counts are low, you are preparing your shop for an increase in profits when the downturn ends.

Take a look at your current car count and how many of those customers are non-loyal, no-value customers. If you find that a good portion of your clientele are first time maintenance customers who do not return, or only come to you for maintenance, then you may not be advertising the right message. You can slash your car count and still increase your profits. Now is the time to increase your advertising spending and promote a different image for your shop.

Keep in mind that during times your shop is busy, you do not have time to analyze your business, train your technicians, improve the image of your shop or prepare for the influx of cars during other busy times. If you have the time right now, use it. Make a thorough analysis of your current business and marketing plan and initiate improvements where they are needed. Perhaps you need to create an entirely new marketing plan and SWOT analysis, identifying new strengths, weaknesses, opportunities, and threats.

Recessions are also a perfect time to train your techs, so that when the cars start rolling in, they will be prepared to offer higher quality service and a greater range of services than your shop offered prior to the slowdown. Think of certain market segments that your shop is currently turning away such as hybrids, diesels or imports. Offering a wider range of services is another way to differentiate your shop from the competition. Whether you send your techs to live training seminars or purchase in-house training for your shop, it will result in opportunities for higher profit margins. Cross training within your shop is also a great way to help the less experienced techs learn from the veterans in your shop.

This is also a good time to improve your shop’s overall image and give it a facelift. Let your techs paint the exterior and interior, do some spring cleaning, update the landscaping, and fix-up the building to beautify your shop. When it comes to business success, image is everything. The look of your facility and staff is just as important as the service you offer. Your customers form an expectation based on your image before they even pick up the phone or step through your door. For another tip, you can also improve your image within the community by getting involved in charity events and organizations that are important to your neighbors. You do not have to donate loads of money to charity; you could simply get involved in local charity walks, food drives, Habitat for Humanity, children’s organizations or other groups that could put your shop in a positive light with the local press.

All of this will translate to personal and team growth, an increase in morale, and higher profits when business picks up. When cars start lining up in your bays, your shop will be ready. Most importantly, only do what your budget allows and hang in there!