For years, I’ve stressed the importance of setting appropriate benchmarks, holding your team accountable for reaching them, and measuring daily to track your progress so you can train and adjust to hit your goals by month’s end. The old way of running a shop, where you send your financials to an accountant and find out on the 15th of the following month whether you made or lost money, is long extinct. You can’t fix the month’s numbers if you don’t see them until it’s too late!
“I need more customers!” I’ve heard this so many times, from so many different shop owners. If only there were more cars, they say, their problems would fade away. The problem is when you focus so much on car count, you never stop to consider why you always need more cars in your bays.
As small-business owners, we are often caught up in this obligation to do everything it takes to succeed. We feel that we owe it to our investment, to our future, to our employees and to our customers. So, we stay late, we fix employee mistakes ourselves, and we lose whole weekends working to catch up on the work that employees didn’t get done.
Opening a second location is a tempting idea for many shop owners, and why not? Twice the sales, twice the profits, and a chance to go through the process again and do everything right the second time around! If only it were that easy.
This probably doesn’t come as news to you, but every new customer who walks through your doors comes preloaded with trust issues. They have already been betrayed by their car and probably also by the dealer at one time or another, and they expect you to be the latest one to disappoint them.
Good or bad, you should be ‘all ears’ with customer feedback to gain valuable insights into your business.
One of the single biggest mistakes that shop owners make is paying employees a straight hourly wage. That’s because it breeds the wrong job mentality.
The fire marshal came into our shop one day out of the blue and told us we had a problem. The back of the shop was too wide open, he said, and if a fire started, it would quickly spread across the entire building. And just like that, they made us put up a wall right through the middle of the shop.
There are several ways to reach your customers and a number of different messages that you can send. Unless you’re writing, designing, posting and mailing every piece – and keeping creative control over every aspect of your shop’s image – how can you ensure a consistent message on every channel?
If an owner doesn’t take the time to train employees, to teach them the processes used in the shop, and to explain the benchmarks, they cannot expect the employee to deliver on these expectations. Training for new employees is a good start, but it’s far from the whole picture. Does the rest of the team understand your expectations? Do they know who is responsible for holding other techs accountable? Are they incentivized for meeting and exceeding expectations?
In 1995, we moved our shop from the corner of a busy intersection to a sunken strip mall a half-block from the main road. We went from 100,000 cars driving by every day to 1,000 — maybe 1,500 on a great day. We went from a locked-in customer base to building a customer base from scratch.
Most meetings are – at best – boring and a waste of time. For most shops, meetings aren’t a positive experience. That’s because many team meetings fall into one of two categories: either the boss pulls everyone together to scold and lecture about problems, or the team uses the meeting as an opportunity to complain, whine and make excuses.
