Business

Just a few short decades ago, when Terry Flaherty was in his early 30s, he set a goal to retire at age 55. “I also set targets for what I wanted to make and my net worth at that age. So when I had been in the auto service business for 35 years as the business got tougher and tougher all the time, for me it was the right time to exit.”

We all know that there are many things you can do when it comes to customer retention. The list includes follow-up calls, sending out service reminder notices, ongoing advertising campaigns that keep your name at the top of the customer’s mind and scheduling the next visit at the time of car delivery, to name a few.

If you haven’t heard from a customer for a longer than usual period of time, pick up the phone and give them a call! Years ago I developed a really easy way to start the conversation without sounding awkward or as though we were just looking for additional sales.

I am a believer in “guerrilla marketing,” which is a strategy that allows us to compete with the big guys, without going head to head with them. Most of us cannot compete on the same level as a large dealership or national account, and we shouldn’t. It’s actually more important to find out what the competition is doing and do the opposite.

In order for people to buy from you, three things need to occur: they need to like you, trust you and view you as a credible expert. Accordingly, the first thing you need to sell to any caller is you; not your shop, or any repair. The best way to accomplish this goal is by smiling, answering the phone with a salutation, providing the caller with your name and the name of your company, and then ending with a question that invites a response.

I’ve found that every new listing is like a fresh new project. Although the perfect outcome is always a Win:Win situation for both buyer and seller, the backgrounds and experiences of the people involved and the steps to getting there are always different. For example, although many business sales involve a retiring, older owner selling to a younger buyer, here’s one that was just the opposite.

Let’s be honest: our industry has a less-than-stellar reputation, especially among women. It’s understandable, considering that less than 1% of ASE-certified technicians and only 7% of service advisors are female. This is still predominantly a man’s world; and let’s be real, most men just don’t get women.

We all know about the rage that is going on with the Groupon-type services, and with many businesses, I see where it can be a really good fit. Examples would be in the fast food industry, and with companies that sell commodities like soap or shoes. Yet, when it comes to the auto repair business, with just two exceptions, I feel that this type of marketing is a bad fit. Here’s why …

Here in the states, you don’t have to look very hard to find Hyundai and Kia vehicles. They are not only becoming quite popular, but in the first half of this year their combined U.S. market share was 9%; putting them ahead of Nissan, and right behind Honda. I am mentioning this to you because it wasn’t very long ago when these two brands were unknown in the U.S., and because I feel this increase offers a peek into the future.

A long-time customer approached me with a concern and asked, “Why is it that almost every time I come to see you, you recommend something? You are also more expensive than other shops. Why not just fix what I came in for?”

Jim Torres had owned a prominent auto service center in North Providence, RI, since 1983. Although still in good health and wanting to remain active in the automotive aftermarket in some capacity, he sought retirement from the daily grind of owning and operating a business.

Over the last 22 years, I’ve been amazed to discover just how many shop owners are lost when it comes to knowing and understanding “the numbers.” In order to build a successful auto repair shop, you are going to need to know two sets of numbers: your “financial” benchmarks, and your “operational” benchmarks.