Is AAA Becoming its Own Target?

As a business owner and manager, and particularly because we do not offer road service or have a towing service, I have often spoke the praises of and recommended to customers that they join AAA to take advantage of this valuable peace of mind. Recently, I have seen many customers show up with AAA batteries installed in their vehicles. At least a handful of them have been sold batteries from our shop in recent years.

Bob Richey, Tire Dealers Association of Western Pennsylvania member and long-time columnist in the group’s newsletter, recently wrote about his experiences dealing with the AAA and the evolution of its on-road assistance program:

When you mention AAA to most people, I think they would conjure up positive thoughts of a large motor club whose members have the peace of mind that, if they experience car difficulties, a simple call would have them rescued within a reasonable amount of time.

For many years, AAA has also represented itself as a consumer watch group and even certifies shops as “AAA Approved.” To obtain this approval, AAA requires that the garage maintain a certain integrity and high level of customer satisfaction.

To obtain a high level of customer satisfaction in this business, you have to do an outstanding job. Anyone who has been in this business for a while knows that often we perform minor service to a vehicle, like an oil change, and the next day the air conditioning in the car quits, so we are to blame.  

AAA, like a lot of businesses, is looking for ways to cut costs and improve revenue, and they have changed their services to reflect that by offering a limited distance towing program or different levels of membership that would allow unlimited towing, for example. But, of course, these higher levels of service come at a higher cost.

As a business owner and manager, and particularly because we do not offer road service or have a towing service, I have often spoke the praises of and recommended to customers that they join AAA to take advantage of this valuable peace of mind.

Recently, I have seen many customers show up with AAA batteries installed in their vehicles. At least a handful of them have been sold batteries from our shop in recent years.

Let me cite a specific example. A steady customer of ours who is quite elderly arrived on Mar. 14 for an oil change and to address a tire with a slow leak, and we discovered a new AAA battery under the hood. This customer owns a 1994 Oldsmobile 98 that has a whopping 24,270 miles on it. We had sold this customer a new battery on May 2, 2009, when the car had 23,200 miles on it. In addition, we charged the battery for him on Oct. 14, 2010, at 23,947 miles.

That means from Oct. 14, 2010, until Mar. 14, 2011, the customer had driven 323 miles.

I had seen this happen before and asked my AAA representative, “What is the deal?” The answer was that AAA’s policy is to get people back on the road. When the vehicle has a dead battery and requires a road call, instead of jumping the car they are going to try to sell the customer a battery.

I would say more often than not they are replacing batteries that are near or at the end of their life. But what about the customer who doesn’t drive much, or in the case that I’m citing, the customer’s battery likely only needed to be charged and if it had needed to be replaced the battery was still under the free replacement period at our shop. Worse yet, I learned of one example that when a customer had a dead AAA battery and AAA arrived for this service call, they did not try to sell the customer a new battery. Instead, the car was jumped and sent to a shop.

An organization that acts as a spokesperson for vehicle repair should not itself offer repair of any kind. It is simply a conflict of interest. If they do offer repairs, they should offer them in a proper fashion that would at least meet the standards of the shops they themselves certify.

Imagine how they would react if I told them that my policy was to replace every tire that has a slow leak, “just to get the customer on the road.”

Article courtesy of TIRE REVIEW.

You May Also Like

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

Will You Adapt And Cope With Changing Technology?

I remember my boss complaining that electronic ignition was going to destroy our business back in the mid-’70s. “They are taking away our tune up business,” he would say. In some ways, he was right. Technology and change are things we can’t control. In fact, “change” is perhaps the one thing we can count on. And, as in life, it’s how we deal with change that matters.

The Secret To Price Advertising

Believe it or not, price advertising is a good thing. I am sure you will agree, everyone likes to find a good value, and price advertising lets people in your community know that you are looking for ways to help them save money. The problem most shop owners come across is that they’re unsure of exactly how to price advertise.

Phone Shoppers Made Easy

Although there is no silver bullet that will allow you to bring in every first-time caller, there are a number of things you can do to get more appointments. In this article, I would like to share some of the best practices your advisors can use that will generate immediate results.

The True Cost Of Comebacks

Comebacks are a hot topic today. You need to track all comebacks, determine the reason (tech error, part error, training issue, other) and then calculate the true cost of the comeback.

Other Posts
Want To Increase A/C Sales?

Have your techs, as part of their preliminary checks, turn on the A/C and see if the system is working. Is the compressor turning on? Are all the fan speeds working? Is the system getting cold? Is there a smell from the vents?

Call For Entries For The ATMC National Excellence In Training Awards

The Automotive Training Managers Council (ATMC) has issued a call for entries for the 2014 National Excellence in Training Awards. The annual program is designed to highlight the importance of training to the success of the transportation industry by honoring highly effective or innovative training programs. The awards are open to any person or entity providing training in the industry.

CARS 2014: ‘Not Your Father’s Oldsmobile’

From ASA comes word that CARS this year “is not your father’s Oldsmobile.” This year’s CARS will be held July 30-Aug. 2 in Detroit and, for the first time, the focus will be on younger techs. Each program at CARS this year has been handpicked with an eye toward making your shop better, said Donny Seyfer, chairman-elect of the Automotive Service Association, which sponsors CARS.

GAAS Attendees Get ‘Connected’ In Chicago

Attendees of the Global Automotive Aftermarket Symposium’s (GAAS) 2014 Connected conference were engaged in a range of high-level topics affecting the automotive aftermarket now and in the future.