Shop Operations

If you speak with most shop owners, they’ll tell you that they think their shop is worth “X” amount of money. Ask them how they came up with that number, and they’ll tell you it’s based on what they heard another shop sold for, or it’s predicated on their annual sales.

Many shops in the northern part of the country go through a slow sales period during the winter months. And, while there is no way to get back those snow days when business literally shuts down, here are a few tips we can use to maximize sales this winter.

We often take a customer’s car to the dealer when we discover the vehicle is under warranty. We prefer to take it ourselves, because too often my customers come back with a ton of service work done, much of which we already performed! Plus, it’s no secret that the dealer wants my customer.

Too often, the only time we address someone is when things go wrong. While we cannot ignore mistakes, we need a balance. In fact, it’s far better to catch people doing things right, and to give praise. Also, in the heat of the moment when things go wrong, our judgment is clouded and we tend to lash out and say things we often regret afterwards. The person on the receiving end will often shut down too, and nothing will get accomplished.

With visits to repair shops on the decline, building customer loyalty is more important than ever. Developing a large and stable database of regular customers can help eliminate the constant need to acquire new customers. Your loyal customers can also serve as a great referral source for your shop. According to the research firm The Gartner Group, 20% of a business’ existing customers generate 80% of that business’ profits.

In today’s market, service advisors are faced with a number of challenges. One of the more complex challenges is when a skeptical first-time customer comes in for an LOF service, and the advisor discovers that this customer needs a long list of repairs. This is what most advisors refer to as the proverbial “laundry list.”

Time flies and here we are again with an update of our mission to make the back shop completely paperless. Of course we save trees by doing this, but the most exciting benefits are about boosting technician productivity, freeing up the service advisor from doing busy work and focusing on educating the motorist.

Morale as defined in Merriam-Webster is the mental and emotional condition (as of enthusiasm, confidence or loyalty) of an individual or group with regard to the function or task at hand. As independent repair shop owners, we all strive to have a successful, profitable business that secures a great lifestyle for us and our family.

The phrase “Family Owned and Operated” creates a warm flow of positive emotions when you talk about your company to your customers, especially your female customers. But having family as a part of your business creates a whole new dynamic of which most people are unaware.

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.

Far too many shop owners hire service advisors who they feel are good at what they do, and then prefer to “get out of their way and let them do their thing.” Unfortunately, that’s a mistake. Here are some tips that you can use as a guide to help you turn your service advisors into superstars.

Competition continues to heat up in this industry. New car dealer operations continue to close, franchise operations are consolidating, and, sadly, some independent shops are going away. What can you do? I’ve worked with a few very bright shop owners who do a great job of keeping their fingers on the pulse of the industry.