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Cooper’s Keys to Auto Repair Profits
Trends of the industry: The future of your business
There are a number of changes that are
occurring in our industry, and there is no
question that some of them will have a
profound, long-term impact. To name just
two, automobiles are being built better
and, as we all know, service intervals are
constantly being extended by
the manufacturers.
Although this is all good for
consumers, better-built vehicles
means they’ll need fewer
repairs, and extended service
intervals means you’ll be seeing
your existing customers less
frequently in the coming years.
The way most shop owners Bob Cooper
are dealing with this is by trying
to persuade all of their customers that they
need to bring their vehicles in more
frequently than the manufacturer
recommends. They tell them that their oil
needs to be changed more frequently and
that it’s a good policy to have their
vehicles inspected every 3,000-5,000
miles.
Although I agree with that reasoning,
those shop owners are fighting an uphill
battle since one of the many reasons
people buy new vehicles is because they
like the idea of extended service intervals.
So rather than trying to fight this trend,
I’d encourage you to understand it, and
rather than trying to sell each and every
customer on the value of coming in more
frequently, I’d
encourage you to
take a different
approach.
First of all, as in
any business, you
should explore
every opportunity
to provide additional services to your
customers. They already trust you and
your recommendations, so services such as
door ding removals, tire installations, glass
repair services, cabin air-duct cleaning
services, and detailing services are good
examples of other services you can offer.
Not only will services that enhance
vehicle appearance or customer comfort
put smiles on the faces of your customers,
but at the same time those services will
increase your average dollar amount per
RO, which will help offset the fewer
number of times you’ll see your customers
throughout the year.
When it comes to additional services, I
would also encourage you to consider the
trend in In-Vehicle Infotainment (IVI)
integration. This category includes
accessories such as navigational systems,
cell phone integration, MP3 integration,
“You should explore
every opportunity to
provide additional services
to your customers.”
and communication systems.
I find it interesting that technology
seems to be well ahead of the auto industry
at this time. However, you can rest
assured that in the coming years you will
see more of this type of technology on
vehicles, not less.
That is because technology is
an integral part of the lives of our
emerging market: the Y Gens.
Those are the people who were
born between 1980 and 1990,
and there is no doubt in my mind
that they are going to have an
expectation that new vehicles
will be able to provide those
types of technological features.
I am very confident that the
manufacturers are going to find themselves
in a position that in order to be competitive
in the coming years, they will be forced to
incorporate more IVI features into their
vehicles.
In order to be fully prepared for those
trends, you will need to make sure that
your service advisors are very well trained.
Any services that are not authorized during
a visit will more than likely be lost sales
because it may be six months or longer
before you see that particular customer
again.
By then, your service recommendations
will either be forgotten, viewed as
unimportant by your customers, or if they
experience
subsequent failures,
they may very well
have it repaired
somewhere else.
Worse yet, if it’s a
safety item that you
discover, and if it’s
not repaired during their initial visit, your
customers will be at an even greater risk.
There is no question that the age-old
expression, “We’ll take care of that the
next time you’re in,” is going to vanish
from our industry.
Lastly, with the understanding that you
will be seeing the majority of your
customers less frequently as time goes on,
in order to keep your service bays filled,
you will need to ensure that you have a
well-constructed marketing plan in place
that will bring in the right kind of
customers.
In order to stay ahead of your
competitors, you need to invest at least 60
percent of your advertising budget into
nontraditional advertising programs
(sponsoring little league teams and charity
events, hosting car care clinics, etc.), and
you should invest at least a fourth of that
60 percent into advertising programs that
are directed toward the Y Gens.
I’d also encourage you to avoid fighting
the evolution of automobiles and trying to
sell your customers on a service schedule
that they have little or no interest in
buying. Instead, look for other ways you
can help them when you do see them by
providing additional services.
If the services you offer are cosmetic in
nature, if they cater to the emerging
market, or if they provide added comfort
to the customer in any way, all the better.
You will need to have talented, welltrained
advisors, and there is no doubt that
you’ll need to have a marketing plan in
place that will bring in even more of the
right kind of customers.
. . . . . . . . . . .
For the last 20 years, Bob Cooper has been
the president of Elite Worldwide Inc., an
ethics-based company that offers shop
owners sales, marketing, and management
solutions in the form of downloadable audio
training courses, seminars, and webinars,
coaching services, and service advisor
training. You can contact Cooper at
contact@eliteworldwidestore.com, or at
800-204-3548. n
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Parts & People November 2011 Page 27