Automotive Management Institute Student Blog

Developing Employee Potential

2008-04-04T08:36:00.000-05:00

What hidden talents and abilities do your employees have that can benefit your shop?

I remember the '72-'73 school year of my high school experience clearly. I was a junior living in a suburb of Memphis, Tenn. One of my teachers, Mr. Zeke Andre, came to me and said: "Mr. Fewell, I need a president for the Key Club. You are going to be my president." Since I had a relatively poor self-image, great fear and trepidation came upon me. I told him there was no way I was going to be president of the Key Club. At that point in my life I was a shy kid, had very few friends, was certainly not popular, did not play sports, but I did play in the band. In Sunday school, when there was an assignment to quote a verse or two, I got sick and stayed home.

I knew that as the president of the Key Club I had to hold meetings, make speeches, hold fund-raising events, talk to parents, talk to students and promote the values of the club. There was no way I was going to be involved in that.

Andre assured me that I could do a wonderful job and that he would help me. So for the last two years of high school, I was the president of the Key club. Andre saw something in me that I didn't know existed: He saw my potential. I sincerely believe that this is one of the key events in my life that helped me become who I am today.

Can this be done successfully in the world of business? I am convinced that it can but a certain attitude toward development is required. In this article, I would like to share the fundamental concepts and principles my teacher used that are required to be successful in developing employee potential.

First, let's agree on the definition of potential. Webster's defines potential as "having capacity for existence, but not yet existing; having force or power; anything that may be possible." Begin by asking yourself a few questions. Do my existing employees have the capacity to do more and be more? Is it possible I have overlooked some hidden talent or ability that one or more of my employees possess?

The simple fact is that you have to make time to look for the potential that currently resides in your employees. In the world of sports, to be successful at finding talent, most sports teams have full-time recruiters. Their primary task in life is to find talent. Most of us in business today are running around with our pants on fire. Whether we are not talented at managing our time and energy or have never learned to manage our time and energy, we find ourselves reacting to things that happen day-to-day instead of proactively managing our activities. The most successful business owners/managers are exemplary at developing and leading their people.

Most owners/managers find themselves extremely busy dealing with all the other demands of their business day, and find little time to develop employees. A large percentage of the businesses I consult with want to hire experience instead of potential. That's a marvelous concept but it rarely happens. When it does happen, I find that most businesses don't do a thorough orientation to clearly set goals and expectations for the position. This is very important to prevent multiple misunderstandings later.

Once you start to look for the potential in your employees, you must expect to find it. My mother often reminded me, "Son, in life, you get what you expect. Be careful what you expect." That was her paraphrased version of the great psychology lesson that says thoughts create actions and actions have consequences.

After you have identified untapped potential in your employees, you must provide them with motive and opportunity. A motive is something that impels or incites a person to a certain course of action. My teacher gave me motives. He incited me; that is, urged me to act, or stirred me up to act simply by his persuasive powers. He had more confidence in me than I had in myself. He caused me to take a new look at myself. I was convinced that with his help, I could be the president of the Key club.

Through that office, he gave me an opportunity to practice the new skills he was teaching me. He provided tools and direction. A football coach provides the game plan, diagrams the plays, allows the team to practice and then critiques the performance. For me, the teacher provided the game plan. He told me exactly what he expected of me on the front end. He gave me the roles and responsibilities of the president of the Key club. He diagrammed the plays. He handed me a Roberts Rules of Order for conducting meetings. He attended the meetings, allowed me to practice and taught me how to improve my performance. He helped me understand how the goals and vision of the Key club could be exercised through fund-raising events and community activities. He taught me how to manage these different projects over the two-year period.

Remember, this was something I had never done before. It was all new to me. It required me to grow. This new opportunity took me completely out of my comfort zone. It was an obvious change for me, but change produces solutions. Change provides challenges and through those challenges, causes personal development.

Are you giving your employees sufficient motives and opportunities to grow?

Consider these statistics that I came across in my reading two years ago: 40 percent of workers in the United States feel disconnected from their employers; 67 percent of workers do not identify with, or feel motivated to pursue, their employer's business goals and objectives; 25 percent of workers are just "showing up to collect a paycheck."

Many people work to fulfill their purpose in life. Through their work, they seek accomplishment, achievement and rewards. The most successful managers and leaders help their employees find purpose and accomplishment through their job. They connect their employees with the company's primary goals and objectives on a continuing basis.

When managers and leaders in business fail to provide their employees with purpose, a plan and measurable results available through the process, not only will their employees not accomplish their potential but also the shop.

Steps to Develop Potential
in Your Employees

Successful business leaders and managers use these steps as guidelines in developing potential in their employees.

Identify the possible capacity or potential.
Provide motives and opportunities to exploit that potential.
Develop a plan of action.
Set clear expectations.
Provide the tools necessary for the employee to execute the tasks.
Allow the employee to practice the new behaviors.
Coach and critique the performance.
Create a scorecard to measure the results.
Connect behaviors with goals and objectives.

Self-Study Management Courses

2008-03-11T12:38:00.001-05:00

Is your ability to take time away from the office limited so that you can only attend one classroom seminar a year? Does your travel budget restrict you from attending as many live instructor-led courses as you'd like? Is your business located in a rural area where classroom training isn't readily available? Or, are you simply looking to get an edge over the competition? Chances are you answered "yes" to at least one of these questions, which means it's time to explore alternative ways to complement your management education and training. In particular, training delivered in audio and video formats offers significant benefits and flexibility.

The Automotive Management Institute (AMI), a leading provider of management education for the automotive service industry, has 24 courses available in a variety of audio and video formats. In 2002, AMI reports that use of these self-study programs had tremendous unprecedented growth, with revenue from self-study nearly doubling from the previous year. Approximately 650 AMI students used this format for education in 2002.

These self-study courses are offered in VHS, audio and CD-ROM, and may have accompanying student workbooks, supplementary materials and software. Each package includes an open book test to be completed at the end of the course. There is no limit on the amount of time a student can take to complete the course and submit the exam to AMI. The test is then graded, and a certificate of completion is sent to the student shortly thereafter. Each successfully completed AMI course also earns credit toward AMI's Accredited Automotive Manager (AAM) designation.

Courses cover a range of business management topics, including accounting, profit building, personal and career success, handling difficult employees, customers and suppliers, hiring techniques, marketing and mastering maintenance sales. There are also courses on menu pricing, overcoming objections and closing difficult sales, shop management, productivity and telephone skills. In addition to the above, AMI's Automotive Service Management self-study course, which covers sales and marketing, personnel management and business management, is a requirement for the AAM designation and earns students 18 credits (a total of 120 credits is required for the designation). The institute plans to increase its library of self-study courses in audio and video media, while also exploring Web-based delivery of training.

AMI instructor Ned Tomarchio, president of The Automotive Leadership Institute, has given approximately 1,400 instructor-led seminars throughout the United States and Canada, reaching more than 45,000 students. He also has four self-study programs available through AMI and has additional ones in the works, soon to be accredited by AMI. He first introduced self-study approximately nine years ago after identifying shop owners and managers in out-of-the-way places or on limited budgets who needed a cost-effective and affordable way to receive training. "It's not uncommon to find people who have to drive 150 miles to attend a seminar," said Tomarchio. He also cites Department of Commerce statistics that show 190,000 shops have gone out of business since 1990, demonstrating the absolute need for business management training - especially in the areas of cash flow and profitability.

Bob Cooper, president of Elite Business Services, Rancho Santa Fe, Calif., and an AMI instructor of seminars and home study, first developed audio and video programs for the industry in the early '90s. Cooper has been a business developer, an owner and an operator of some of the most successful auto repair shops in North America. According to Cooper, audio and video allow for home or office-based learning at your pace and on your own schedule, however, there are also other significant benefits. "With this type of media, you can almost perfectly replicate what has been said or viewed by simply rewinding," said Cooper. It also allows team learning among those using the program. "You can hit 'pause' and have a great dialogue about a particular topic or point," said Cooper. He adds that the cost of audio and video training is negligible, especially when compared to the expenses involved in attending a classroom seminar. However, he encourages shop owners and managers to recognize the value of both formats - classroom seminars, and audio and video programs - and that one does not replace the other. "Your learning library should include both," said Cooper. The beauty of audio and video is that it can be used over and over again. "If I need a refresher, I go to one of my tapes and listen to it on my way home," said Cooper.

Tomarchio points out that in addition to using the information as a refresher, the ability to replay the information can serve to revitalize shop owners and managers who, by the nature of the business, face negative situations on a daily basis. In addition, when you most need training, it's usually not available. Audio and video education solves that dilemma, allowing for just-in-time, just-for-me training.

Bob Langdon, CPA and author of Managing Your Business for Profit, says the students who like his self-study course the most are those whom are already successful and looking for an edge - a way to generate even more profits. His program consists of 10 audio CDs, a tutorial workbook and software. Among other features, the software allows students to enter profit and loss numbers and balance sheet numbers and do "what if" scenarios on different ratios. He initially developed the program in 1997 for automotive service business owners and managers who typically have strong technical experience and knowledge, but are weak in the financial end of the business. "Anyone who wants to improve their business financially should use this program. As a result, they'll be able to immediately implement new strategies in their business," said Langdon.

Beyond reading the course description, how do you determine if a self-study program will meet your needs? Ask about the content of the course, and the background of the instructor and the instructor's credentials to teach the program. If you've attended a classroom seminar by the instructor and found it beneficial, there's a good chance the instructor's self-study program will be as helpful. Lastly, don't hesitate to talk to other users of the program to gain their insight and opinion. Kristin Uhler Flory, AAM, manager of Ray's Garage, Creston, Ohio, has attended instructor-led seminars and used five of AMI's self-study programs. "They were really good, very informational and provided a well-rounded view of the subject," said Flory.

Self-study programs take self-motivation and discipline to complete. It's human nature that the things people need the most help with, they often save for last. But Tomarchio offers this helpful reminder that indecision is, in fact, a decision to do nothing. "You can't put off training, regardless of the format," said Tomarchio. "The industry is bright for those who seek training, study and watch what's going on," concludes Tomarchio.

Stealing from your Competition

2008-02-14T10:24:00.000-06:00

Your service shop is the best in town, right? You have the most skilled technicians. You have the latest equipment. Your prices are fair. Your restrooms are spotless. Your customer waiting area is equipped with the latest magazines, Internet access, phone service and toys for the "little customers." Your business practices are honest, and you offer the best customer service around.

You have done it all. You've implemented every recommendation from every class you have ever taken. You've invested countless time and resources to make your shop the best it can be. The question is: Are you stealing customers from your competition?

When we teach our AMI course, participants often ask us, "Are you really satisfied with your current auto service provider? What would it take to draw you away from that shop and into ours?" These are questions every shop owner should ask. The fact is, many people are already reasonably satisfied with the service they are receiving somewhere else. Notice I say, "reasonably satisfied." Most people will stick with a shop or dealer not out of loyalty, but out of habit. They may even be unhappy with some aspect of their current shop but don't feel it's worth their time to shop around.

You've worked hard to become better than the competition. You know you offer better service and better value as a shop, but how do you lure someone away from their current shop and into yours? What will get them in the door?

Let's do a comparison with an industry we are all familiar with - the dental industry. Like the auto industry, the dental industry works hard to educate its customers about the importance of "preventative maintenance." Most people now know that they should have their teeth cleaned twice a year. They also know that preventative care will prevent painful (and costly) repairs. They know that with regular care, they can extend the life of their teeth. But how many people actually follow the recommended service plan for the care and upkeep of their teeth?

What about those who do make those regular visits? How many of those absolutely love their dentist office versus those who just keep going because it's easier than finding a new one? Better yet, how many people have such a great time at the dentist that they can't wait to go back? How many people eagerly tell their friends about their dentist and try to convince them to join them for their next visit?

How are dentists luring customers into their offices and away from their competition? One trend you will see is that some dentists are replacing their dental offices with dental "spas."

Who said that dental work has to be performed in one of those vinyl chairs, with fluorescent lights, pink paint and stark surroundings? What if, instead, you entered a spa when you came into the treatment room? What if you could watch a movie while your dental work was being done? What if you could kick your shoes off and slip into soft slippers? What if you got a neck and shoulder massage to help you relax? That's what's happening in dental spas around the country. Customers are getting a unique experience.

Are the dental services being performed at "dental spas" unique or different from the typical dental office? No, only the atmosphere and experience has changed. However, the results are amazing. Dentists who are trying out the "dental spa" strategy find that their business is booming. Customers are coming in more regularly. They are looking forward to their next visit and taking pride in their dental care. Plus, these customers are so excited about the whole experience that they are telling their friends and associates!

Now don't panic. I am not suggesting that you change your shop into a spa. However, I am suggesting that you get outside of the box and think about what you can do to create a unique experience for your customers and their cars. That's when you set yourself apart, and that's what it takes to steal from the competition!

Many shops have made an effort to develop the things we mentioned in the opening paragraph (clean restrooms, curb appeal, good work ethics, honesty, customer service). Today these are necessary things, and they are things that today's customers expect. While all of this will get you a good rating with your customers, it won't take you over the top in their minds. It's not going to get you noticed. There has to be more.

It's time to step it up a notch and become the leader in redefining auto service. How could you make auto service an experience? How could you make coming to your shop something to talk about? Because that's what it's going to take to make customers walk out of their current shops and into yours.

You want your customers to come and see you every 3,000 miles. Start thinking about it. How can you make them excited about their next visit? Get your team together and start brainstorming. Think about the customer that you want to attract. What do they like to do? What do they need? How do they spend their spare time?

Here are just a few ideas to get your brainstorming started:

Do your customers love their cars? What if you opened a "car spa?" What if your car was guaranteed to be treated like a king for the day? What if you chose from a "menu of services" like you do "spa treatments?" Could that change someone's perspective on auto care?
What if you offered a way for customers to see the work being performed on their car (much like you watch your pizza being made in the pizzeria)?
What if you had an amazing game room where customers could "play" while they waited (foosball, darts, pinball, golf putting or video games)?
What if your shop had a small, interactive museum with hands-on displays of auto parts and how they interact (much like a children's museum, but for both children and adults)? How could you educate your customers in a fun, interactive way?
What if in the children's play area, your "little customers" could drive a toy car around a track and learn driver safety skills?
What if they could actually "work on" a toy car with a lab coat and computer? (You could even create an interactive, electronic 'test' to take that beeps when they get the right answer).
What if customers earned points from each visit to your shop that they could use to "buy" special prizes at the end of the year (unique car accessories, detailing services, discounts or just fun stuff).

Stealing from your competition takes effort, but who says it can't be fun? Let your mind go wild. Turn your shop into an automotive or fun family experience, and watch your business grow. Make your shop a place where you and your employees love to hang out and that other people can't wait to visit. Make it the "happiest shop on earth." The outcome will be amazing. You can bet your local media will notice. You can bet your customers will notice. And you can definitely bet your competition will notice!

Everything You Didn't Want To Know About Running a Profitable Body Shop

2008-01-17T10:13:00.000-06:00

Many body shop owners and managers have an ambition to own a modern "state of the art" collision repair facility, loaded with the very latest hi-tech equipment, and laid out for maximum production performance and efficiency. Indeed the level of investment now being considered for upgrading the collision repair industry has gone far beyond the purchase of a new downdraft spray booth or frame machine. An investment of up to $250,000 for the remodeling and re-equipping of even a modest size collision repair facility is becoming almost a weekly occurrence, and investments of between $1 million and $2 million are certainly not rare. With investment becoming increasingly more essential just to remain in the business, accurate decision making is essential if investments are to be protected and profitability assured. But the question is, "How qualified are we, as collision repair professionals, to make such decisions?"

It doesn't take long to realize that most owners and managers in the collision repair industry today were yesterday's technicians. In fact, that is probably true of a lot of small businesses. Harriet was a very good hairdresser so she decided to open her own beauty salon. Cathy baked great cakes and was persuaded by her friends to open her own little pie shop. And it was pretty much the same story for Chris the carpenter, Peter the plumber, and of course our dear friend, Bob the body man.

In Michael E. Gerber's book, "The 'E' Myth," he describes the fatal assumption made by many want-to-be business owners and entrepreneurs: "...if you understand the technical work of a business, you understand a business that does that technical work. And the reason it's fatal is that it just isn't true."

Up until the time we decided to start our own collision repair business or be a body shop manager, our training was mostly technical. In fairness, U.S. body shops have come a long way in the last 10 years and have made a significant effort to have employees who are better educated and informed about business and management issues; but we still have a long way to go.

For the many shop owners and managers who strive to be better businesspeople, the passion to be involved in the technical aspects of fixing cars lurks in the wings, just waiting for an excuse to leap into action. Evidence of this can be seen every day in hundreds of body shops all over the country when there's a problem-job in the shop. "Hey boss, can you come and take a look at this Honda? I've got it up on the frame machine and have been taking some measurements, and I think there are a couple of ways we could approach this repair. Can you tell me what you think?" What comes next is like the scene from "Superman" when Clark Kent runs into the phone booth and emerges as a super hero, rushing to save the world. The opportunity for the manager to dust off his technician's hat, roll out his tool box and rush to the rescue is just too much to resist. He just loves being back in familiar territory and being the guy that all the other technicians look to for advice.

Lurking deep inside all of us who came up through the ranks is a natural attachment to the technical side of the business. Confronting the "technician within" will be vital to continued growth and success in the body shop business. It's not that we can or should forget our roots in this business, but confronting rather than denying the presence of our technical instincts will make us more aware of how it can adversely influence some of the important decisions we make.

Problems regarding production or the need to increase productivity are those for which we are most likely to subpoena the "technician within" to make the decisions for us. In this event, the technical decision will often be: build a new shop; add on to the existing facility; improve the layout and design of the current space; add some new, often expensive equipment; or get a new paint supplier! Addressing production solely from this direction is ignoring the foundation on which production is built.

In order to produce, various resources are necessary, including parts and materials; tools and equipment; a building; technicians; etc. While all of these resources are essential to production, their level of importance can best be illustrated by the Production Pyramid.

Equipmemt Resources
Having the right tools and equipment to do the job is more important today than at any point in the history of the collision repair business. However, the "technician within" seems to be on a lifelong mission to find the latest and greatest gizmo that will cure all ills. He is on a never-ending search for a magic solution to his production problems. Unfortunately, this often results in that age-old art of throwing money at the problem. There is a tendency to expect the tools and equipment that we buy to fix more production problems than they were ever designed to fix, or are capable of fixing.

Facility Resources
The facility resources are the buildings within which the production process is accommodated. Over the last decade, we have come to realize that an efficient layout and design is essential to efficient production. Equipment locations, traffic flow patterns and careful attention to the production environment (i.e. space organization, lighting, air quality and noise control) are just some of the important layout and design considerations. Nevertheless, as with equipment resources, facility resources and the expectations of the layout and design are often seriously overrated. There exists a strong belief that equipment and facilities hold the key to efficient production. Despite spending vast sums of money here at the top end of the Production Pyramid, we eventually realize that this isn't true. But this is not what the "technician within" wants to hear.

Materials Resources
We can't fix cars without having the right parts and materials at our disposal. There is no argument about the correlation between having access to the right parts and materials and efficient production. But once again, there is a tendency for the technical issues to overwhelm the decision-making process. This is especially true of paint materials, which often get blamed for efficiency and profitability shortfalls. The real answers to the majority of production problems are, more often than not, much closer to the foundation of the Production Pyramid.

Manpower Resources
The manpower resources are the technicians deployed in the production process. Nothing happens without manpower resources, although despite our kinship and sensitivity to the technicians' dominion (after all, we've been there, done that), we most often go about getting more production out of them simply the wrong way. Wrong way No. 1 is increasing the size of the carrot on the end of the stick. We must pay competitive wages, but assuming we'll get more if we pay more is, as most experts agree, just not true. Wrong way No. 2 is throwing even more money at the resources at the upper end of the pyramid. As important as we have already identified these resources to be, adding more space and spending more on equipment will not necessarily result in increased output from our manpower resources.

Management Resources
The management resources are at the foundation of the Production Pyramid and at the foundation of consistent, profitable production. Without a clear understanding of this resource, the time, attention and money that we apply to all the other resources that make up the Production Pyramid will, at best, be watered down, or at worst, canceled out. Management resources relate to the level of organization, administration, discipline and control applied to the business of fixing cars. As much as we know such things exist, our lack of knowledge and understanding about the essential management resources often leads to a denial of their importance. Hence, we hang onto the technical issues that reside in the upper floors of the pyramid and the "technician within" retreats to more familiar territory in the search for answers.

Just some of the areas where management resources must be effectively utilized are: cost analysis and a clear understanding of the financial structure in a collision repair business; ongoing performance measurement; clearly defined goals and objectives; a clearly defined management philosophy; systems and procedures applied to the administrative and production management process; the hiring, motivating and retaining of employees; delegation of responsibilities; and clearly defined accountabilities.

Here, at the foundation of the pyramid, are all the things you didn't want to know about running a profitable body shop.

At some time or another, when there is an important job to be done, the "technician within" takes over and we gravitate toward the technical solutions that technicians know best. That is probably why there will often be comments like, "I spent six months researching every single downdraft spray booth on the market before I chose this one," or maybe, "I visited body shops all over the world before I designed mine."

As important as those things are, it's rare to hear anyone say that they spent an equal amount of time and energy on the management resources that form the foundation of the Production Pyramid.

A hammer, shady tree and all the car fixing skills in the universe alone will not make it any more. Many body shops can fix cars. Not so many can fix them accurately and get them back to a safe pre-accident condition. None can do all of the above and maintain an acceptable level of productivity and profitability without a clear understanding of all the resources that must be applied to production.

The Increasing Costs of Doing Business

2007-12-19T10:20:00.000-06:00

Labor prices. Quality equipment and materials. Insurance. It seems that many aspects of business are becoming more and more expensive. The question for shop owners and managers is how to compensate for rising costs without compromising the value and quality of their services. Raising prices is one obvious response to increased costs, but not always the preferred solution in today's competitive marketplace. Many shop owners are looking for new strategies to avoid lost profits resulting from the increasing costs of doing business.

Don Seyfer of Seyfer Automotive in Wheat Ridge, Colo. has seen the biggest price increase in labor rates, benefits packages for employees and insurance. To keep his profits up, Seyfer has had to take different approaches. He says that raising prices is one way to deal with rising costs, but also realizes the danger of relying on increased rates. "We've raised our prices some," says Seyfer, "but we also have to stay competitive with the larger, multi-faceted shops."

Another technique that Seyfer employs is what he calls "tiered" labor pricing. For each job, the cost of labor time is relative to the complexity of the work. The more skilled and involved a job is, the higher the hourly labor rate.

Juel Clevenger of Delta Diagnostic and Repair, Inc. in Lees Summit, Mo., cites increased labor prices as his largest business expense increase. He attributes this increase to the diminishing supply of qualified technicians. "To keep good technicians, you have to offer competitive wages and benefits," says Clevenger. "It's becoming more and more expensive to keep quality employees."

In response to higher costs, Clevenger has slightly raised his shop rates, but also finds other ways to increase revenue. One goal is to decrease the quantity of jobs that come into the shop, and focus their efforts on doing more thorough work on the cars that do come in. Clevenger hopes to do this by educating his customers about preventative maintenance.

As a collision shop owner, Larry Stafford of Rivercity Collision Service in Austin, Texas feels he has less control dealing with increased expenses due to prices set by insurance companies. The insurance companies cover some costs such as increased part prices, but do not allow for other, less visible expenses. Those expenses, for Stafford, are the cost of materials, labor, equipment and insurance. Because of expenses like these, profits have decreased for many shops.

Some shops, however, are taking steps to change that. One shop owner who asked not to be identified, said of this issue, "A few shops have done what most of us should have, and increased labor and materials independently of what the insurance companies were willing to pay, but most of us have held the line for the past four years. This year has seen more shops step out, mine included, and increase labor and material."

Stafford looks for other ways to make up for high costs. One way is to control his shop's expenses. "I try to do with fewer people in the office, shop for insurance annually, and make sure we're not wasting any materials." In addition, Stafford says it is important that he and his staff are diligent when appraising a vehicle so that everything that needs to be done is identified. In response to high labor costs, he monitors the efficiency of his employees.

Jay Wegmann, CPA, of Wegmann, Dazet, CPAs in New Orleans, agrees that to control increasing costs, it is important to spend time evaluating your expenses. "Being an accountant, the first thing I do about increased costs is measure what is costing me the most," says Wegmann. "For increased labor time, determine the billable hours per technician, and find out if there are areas where efficiency could be improved." Wegmann suggests that spending time motivating, training and supervising your employees will help to decrease costs of labor. He also emphasizes the importance of scheduling the right technician for each job. Having employees working on the projects that best suit their skills will aid in efficiency and result in lower costs.

Wegmann also recommends offering good incentive plans to keep quality employees. These plans could include sick time, paid vacation and holiday time. Fringe benefits are very appealing to employees and sometimes can be less expensive to the employer than simply paying higher wages.

Bob Cooper of Elite Business Services in San Diego realizes that raising prices to compensate for increased business costs isn't always the best alternative. He suggests that there are other ways to keep your profits high. Although high labor prices are an issue for most shop owners, Cooper feels that hiring quality people is worth the extra money it costs to get them. "The costs of hiring the wrong people can be very significant. Having the right people will help you increase productivity and keep costs down in the overall picture," says Cooper.

Another way to counteract high costs, suggests Cooper, is to develop programs to keep your customers coming back. One way to do this would be to offer longer warranties on parts and service. "People don't want to pay for parts, they want to pay for peace of mind," says Cooper. "They'll pay more for a guarantee and it also ensures that they'll come back to you if there is a problem."

According to Cooper, lifetime oil programs are an excellent way to keep customers coming back. His program involves charging one flat price for oil changes for the lifetime of a car. That way, says Cooper, you'll keep customers away from chain lube centers and have a chance to inspect their car periodically for other problems.

Similarly, your current customer base can be your most valuable resource. Larry Edwards of Edwards and Associates Consulting in Charlotte, N.C., also feels that you can increase your profits by providing more services to each of your customers. "Look at how many one-item orders come into your shop," says Edwards. "That's the best place to look for additional revenue opportunities."

There are options to help compensate for the higher prices shop owners are dealing with today. The most important thing is for each person to determine the best options for his or her individual shop. Edwards says that making money in business is a three-part equation that includes sales, gross profit and expenses. He says you can adjust one of those factors to improve your profits. "It might benefit your shop to lower prices to increase sales, increase prices to increase gross profit, or take steps to reduce expenses and fixed costs." The factors are different for each shop, but each are effective means to help continue making a profit in today's increasingly expensive marketplace.

The Importance of a Customer Mailing List

2007-11-13T09:34:00.000-06:00

A customer mailing list is vitally important to any service industry. Competition in today's marketplace is fierce. As a shop owner, you can no longer sit back and feel secure that your business will continue as it always has, nor can you rely on customer loyalty. There will always be new repair shops, collision centers, dealers and chain stores moving to your area and offering their services to your customers. They may have better pricing, more convenient hours or just better marketing than you do. The important thing is to keep your business in the "limelight" and your name frequently in front of your customers.

How do you do this? The most effective and economical way is through direct mail. You definitely get more for your money when you use this venue for marketing your business. Direct mail is a great way to stay in touch with your current customers. Direct mail lets you keep them up-to-date on special offers or announcements such as better service or equipment. This will make them less likely to try out the competition.

For prospective customers, repetition is important. You need to mail at least four times a year to current customers and prospects for maximum impact and to enhance the effectiveness of your message. Being a service industry (like doctors, dentists, plumbers, and heating and air conditioning specialists) you don't need to bombard your customers with mail like retailers do. Too much of a good thing can backfire on you. A good rule of thumb is a minimum of four and a maximum of eight times a year. Too often businesses do one mailing, when things are slow, and decide it didn't work for them. This does not give a true picture of what direct mail can do for you. As with all forms of advertising, repetition is your key to success and this is certainly true when it comes to direct mail. Be persistent - it will pay off!

Mailing to Current Customers

One of the first questions you need to decide when doing direct mail is who to mail to. Your own customer base is the best place to start. They already know who you are so it is a soft-sell approach. It is much easier to keep a customer than to get a new one. More and more shop owners are seeing the value of having a workable customer base, but we still have a long way to go. Many repair facilities either can't get their customer list out of their current management software, are not keeping good records, or even worse, don't even have a computer. If you do have access to your existing customer list and it is up-to-date, direct mail is without question your best option. You have more flexibility in content, design and timing, and of course, your marketing will be highly targeted and more cost-effective.

Mailing to Prospective Customers

To mail successfully to prospective customers, you need a plan. First, decide who your prospects are. You want to target the right audience and there are many categories from which to choose. Second, what do you hope to accomplish with this mailing (more revenue, name recognition, etc.)? More than likely, you will need to purchase your list from a "list compiler." There are four list choices:

Consumer Lists
Business Lists
Resident/Occupant Lists
New Movers List

Consumer lists include more than 86 million households and more than 140 million individuals. These names have been compiled by many sources such as catalog sales, warranty cards, mortgage data and many other sources.

Business lists (includes professionals) are compiled and updated monthly from sources such as the Yellow Pages directories or business credit reports, among others.

Resident/occupant lists consists of more than 100 million households. They include all residential addresses including post office boxes and rural routes. These work great for saturation mailings.

New mover lists are exactly that. They include all the new movers that have come into your area within a month's time. About 20 percent of the population becomes new movers each year.

Which List Type Is Best for You?

It depends on what you are hoping to accomplish. For example, if you decide you want to mail to homeowners with an income level of $60,000+ in a three-mile radius around your shop, you would need to purchase a consumer list. A consumer list lets you choose certain criteria including income, homeowner, households with children, ethnic households, students, renters and age.

If you were interested in fleet work, you should purchase a business list. Again, you can choose certain criteria including employee size, sales volume, executive title and type of business.

If you can't decide whom to target, a saturation mailing is a good way to start. You would need to purchase a resident/occupant list. You can select a specific ZIP code, mail delivery route or specific radius around your location. Instead of a named individual at the address, it goes to "resident" or "occupant."

A new movers list gives you the opportunity to invite new prospective customers to your shop before they find the competition. You subscribe to this service and are given new names each month. New movers establish their buying habits within the first three months following their move. New movers response rates typically double that of normal direct mail.

Design Is Important

The design of your mail piece is important. Make sure it is something that will make your customers or prospects react. Don't just list your business hours and location and expect a response.

The more personal the piece, the higher the response rate.
Include a call to action, such as "offer only good until the end of the month."
Offer a free gift to prospects using your service for the first time.

Testing a Mailing

Consider your first mailing a test. If your response is less than 1 percent, chances are your mailer isn't grabbing your recipients' attention or your prices are too high. If your response is 2 percent or higher, you are on the right track.

Where to Find Your Lists

List Brokers - see Yellow Pages under "Mailing Services," "List Brokers," or "Mailing Lists." List brokers are specialists in this field and are willing to help you get the list you need.
Chamber of Commerce - Most chambers will sell a member directory or offer the directory as part of their membership package. This is better if you are targeting businesses.
Community Newspapers - Call the community paper and ask for the person in charge of mailing lists.

When Prospects Become Customers

It is a great feeling when your prospecting pays off and you strike gold with a new customer! It is a lot harder to get a new customer than to keep a current one. Be sure to move your new customer from your prospect list to your customer database at this point. Purchased lists definitely have their purpose and when properly used are a remarkable tool. Keep building your mailing list, take care of your customers - both old and new - and don't take any customer's business for granted.

Service vs. Fix

2007-10-11T12:09:00.001-05:00

Most of us technicians and shop owners (or at least us older ones) have fond memories of working at a service station. Service stations were just that; places providing service.

I remember it was very seldom that we actually worked on a broken car as most of our time was spent on a vehicle that was in for service, not repair. Cars were usually dropped off with a note stating, “Winter is coming, please service the vehicle.”

Actual service consisted of checking out all the systems and adjusting or replacing all worn items (neat concept of replacing parts before they break). Brakes, belts, fluids, electrical and state of tuneup were verified and confirmed. As time went on we all know what happened to the old-time service stations: they just went away as cars became more electronic and dependable with the manufacturers promoting maintenance-free vehicles more and more each year.

In today's marketplace, if a filling station or service station existed it would be called a “fix” station because more and more repair shops are so busy fixing broken cars they don't really have the time to actually service the vehicle. They are too busy fixing cars with broken parts (due to the lack of service) to even consider looking at needed service items.

While looking at a 1988 Ford Taurus at a local shop recently I pointed out that the ignition coil had arced. It was burnt all the way through to the side of the metal mounting bracket. My friend, the shop owner, looked at me and said, “The car needs many other repairs worse than that!”

With that said, they wrote up a repair order for a water pump R&R and gave the keys to the customer without even suggesting the ignition coil problem. I questioned this decision in a later conversation and was told, “I really don't have the time to service cars anymore.”

Wow! This same shop was just telling me the other day that business had been a little slow! Now my take on this is that there are 480 minutes in an eight-hour day and YOU are in charge of those minutes. If in fact you don't have the time, then it really is YOUR fault. Fix it!

Start your service programs today by asking yourself this question: Do we as a business service or fix vehicles? The answer of “both” is unacceptable!

You can increase your profits every time you service a car using the manufacturer's recommended service intervals required to properly maintain a vehicle. Many customers will simply get a tuneup and lube job or they will bring their car in when they “think” it is time, while others wait until the vehicle is not operating properly before having it serviced.

Very few customers have their car serviced according to the manufacturer's recommendations and I blame this on today's service technicians and shop owners for not informing their customers by verbal communication or actual service marketing programs.

You can really do your customers a favor by pointing out the factory-suggested services needed per vehicle. For the customer, it is better service. For you, it is better profit and somewhat easier work.

Everywhere I travel today, I hear: “I wish I didn't need to work on all this junk!”

In many cases, you fight a poorly maintained car while, at the same time, you just let a new one out the door without suggesting a past-due service!

Think this out: If you serviced every car in your shop today, there would be very little need to fix junk tomorrow.

You are in control of your business, aren't you?

Getting the Edge

2007-09-04T13:00:00.000-05:00

Your business provides a high level of personal service that instills confidence and trust in your customers. You make it easy and convenient for customers to do business with your shop and do everything possible to accommodate their needs. You perform quality repairs and your prices are competitive. You're doing just about everything right to satisfy customers ... and so are many other independent repair facilities. The key, today, is to do something different or above and beyond that exceeds customer expectations, reaches their emotions and makes them loyal to your business.

As owners and managers, the task is to identify a service or niche that will create interest with customers, make them feel welcome, solve problems for them, and show them that you care before, during and after the repair process. Keep in mind, though, that this extra service or niche must be part of an overall marketing strategy as individual marketing tools rarely work on their own. In addition, today's competitive marketplace demands that strategies evolve and adapt to market conditions, so be prepared to constantly evaluate what makes a difference to your customers as conditions change.

Technology as a Tool

Studies show that the following items are most important to repair shop customers: number of technicians to do the work, convenience of location, special offers or discounts, warranty provisions, time required for the repair and maintenance, fairness of fees for work, and convenience of hours.

These items are all part of the services provided by Petersen Automotive, Escondido, Calif. As testimony, the National Institute for Automotive Service Excellence (ASE) featured the business as the Blue Seal Spotlight Shop of the Quarter. The business Web site (www.ourautoshop.com) has glowing testimonials from satisfied customers. However, about a year ago, owners Brad and Dawn Petersen felt they needed a way to create more interest in the repair process by being able to show customers what was wrong with their vehicles without taking them on the shop floor or under the car.

With many years of experience and ASE certification, Brad could certainly explain the repairs. “I wanted customers to see what my eyes were seeing,” said Brad. He started taking photos of new parts, parts in need of repair or replacement and equipment used in repairs. For example, he photographed the components of a new wheel cylinder and a wheel cylinder with a leak. He photographed timing belts and associated components, fan belts with chunks missing, head gasket jobs, the inside components of CV joints, the steps in fuel system servicing, and even the equipment used to clean the fuel system.

He built an extensive catalog of digital photos that are now on a computer at the front counter; a partial file is also on the shop's Web site. “Now we can show the customer at the point of sale what's wrong with their vehicle and what's involved in the repair,” said Brad. “When you show someone what's involved in the repair it also helps explain the cost of the repair,” said Brad. In the process, the Petersens are helping customers better understand the repair, and ultimately, they are more educated and informed about their vehicles.

The Petersens know that 90 percent of their customer base has computers and e-mail. This allows them to use e-mail and digital images to notify customers of other repairs needed in addition to the initial repair. “For example, if I'm replacing the timing belt on a Honda Accord, and I see that the water pump is leaking, I shoot the customer an e-mail with a digital image of what we're seeing with the water pump,” said Brad. The digital images also come in handy when ordering parts, especially those on older model or unique vehicles.

“So far, we've had very good feedback from our customers,” said Brad. Just recently, the Petersens added sound effects to the front counter computer. Now, instead of asking a customer to re-create the noise their vehicle is making, he plays various pre-recorded vehicle noises. This helps customers better identify the sound coming from their vehicle.

Brad adds that he's completely self-taught when it comes to the computer and technology skills he uses to create interest and solve problems for customers. “Anyone can learn it. If you can't figure it out, just ask your teenage children,” he added.

Many repair businesses are using technology to provide additional services to their customers. It is becoming more common to see Web sites with features that allow customers the convenience of setting their appointments online, viewing the repair status of their vehicle, and getting online advice about the repair. A number of automotive service Web sites also include consumer tips and Frequently Asked Questions that help inform and educate consumers about their vehicles.

Back to Basics

Petersen Automotive is also building customer loyalty by simply implementing and extending some back-to-basics courtesies that say “we care about you.” After the repair, every customer receives a thank you card with an image of the facility. Customers who refer new business to the shop also get a thank you card, and on their next oil change, there is no charge for the labor. “We go way out, as far as making things personal,” said Brad.

Kay Parks/Dan Meyer Auto Rebuild is a collision repair business in Tacoma, Wash. Owners Dan and Sue Meyer have policies and procedures in place during the entire repair process, all with the goal of showing customers how much they value their business and care about them.

“When someone first calls the business or stops by to explain that they were in an accident, the first thing we ask is, 'Are you OK?'” said Dan. People are seldom asked this question by collision repairers. “We had one guy last week who said, 'You were the only shop that asked if I was OK.' Just asking this question gets us a lot of work,” said Dan.

After the estimate is written, each customer receives a letter from Dan asking for the business. He signs all these letters in blue ink so customers know it's his real signature rather than a photocopied one.

When the vehicle is ready, Dan, Sue or an employee will get the car and bring it to the front of the building. They will open the door for the customer and shake hands. Within a few days, each customer will receive a hand-written thank you note from Dan.

Tom Fletcher, president of Thunderbird Automotive, Peoria, Ariz., also sends out thank you cards to customers and includes his cellular telephone number. He has yet to have a customer call his cell phone, but he knows the value of including it in the note.

For customers who wait for their vehicle to be repaired, Fletcher makes them feel welcome in the shop's large, comfortable waiting area. The smoke-free environment has vending machines, an office desk, cable television, fresh coffee, local newspapers and a wide variety of magazines.

For customers who wait, Thunderbird Automotive also offers a shuttle service to just about anywhere, within reason. “If they [customers] are willing to drive to see us, we should be willing to take them where they need or want to go,” said Fletcher. The business is conveniently located to area restaurants, a mall and a 32-screen theater, and Fletcher's shuttle will deliver and pick up customers who want to go to these area attractions.

On each vehicle, Fletcher will try to include at least one “no charge” item, such as tightening a loose visor (the business is near a retirement community; visors get a lot of use), or adjusting or lubricating something on the vehicle. In addition, customers who spend $250 or more receive a complimentary car wash. The business will also deliver vehicles to customers when ready, again within a reasonable distance.

Customer satisfaction is certainly very important, but today, the sustainable connection with customers is reached by doing something different; something that makes them feel so valued and cared for that they go out of their way to be loyal. And, according to marketing experts, customer loyalty is the single most important driver of long-term profitability.

Involvement Opens Doors to Future Techs

2007-08-07T12:06:00.000-05:00

The week looks busy, but manageable. First and foremost, let's make sure our customers and their vehicles are taken care of. Find out how the employees are doing and don't forget to praise them. Do something with the marketing plan, or maybe leave that until next week. The office computer went on the blink; maybe we should think about a new system. Last, but not least, we need to hire another technician, but in this tough labor market, where and how do we find the good ones?

Automotive vo-tech instructors say, “Get involved with our programs.” Their request suggests a proactive approach to finding and cultivating talent during a time when just about all industries are experiencing a labor shortage. It also models what many businesses in other industries have been doing for a long time. They set their sights on upcoming graduates by offering apprenticeship and internship programs. They visit campuses to recruit students and establish relationships with career placement centers, instructors and counselors. Their goal: reach the graduates before they hit the open job market. This same approach should be used to recruit technicians to your business. It may mean, however, putting aside some stereotypes about the caliber of vo-tech programs and their students, and instead realizing that a positive transformation is taking place at many vo-tech schools.

“We are trying to effect a 'culture change' in our district that automotive programs are no longer the dumping ground for the non-achievers. Instead, send us the students who will actually achieve in our class and have the brains to do it,” said Brian Manley, vocational automotive instructor at Smoky Hill High School, Aurora, Colo. Instructors leading this charge appear to have one thing in common. “They love their programs and they love their kids. If you don't, you're not going to last doing this very long,” said Manley.

This commitment is keeping and improving the good programs, while programs lacking instructor, administrative and community support are being discontinued. “Many programs are being discontinued when the current instructor retires. In our district, in the last five years, there have been three high school automotive programs shut down when the instructor retired,” said Lloyd Schott, auto technology instructor at Warren Tech Center, Lakewood, Colo. Schott attributes the closings to the high cost of operating an automotive program, especially in states where school funding is poor.

A Student’s Voice: "I chose to go into the auto repair industry because it is something that I love to do. Since the age of 10, when I received a subscription to Hot Rod magazine, I have been into cars. I started working on the family cars by watching my dad. Soon he was watching me. I have always enjoyed fixing things with my hands.
After high school, I will attend Arapaho Community College. I will go through their excellent auto program. I also plan to enter the Chrysler Apprenticeship Program. For guidance, I turn to my auto instructor, Brian Manley. He has never steered me wrong in which direction to go and is a great help.

I was involved in SkillsUSA-VICA this year. At the district competition, I took first place in Automotive Service Technology, Job Interview, Auto-Related Math and the written test."

Luke Roina, Senior

Smoky Hill High School, Aurora, Colo.

“The programs that are surviving are doing so because of the dedication of the instructor. By this I mean the instructor is willing to spend the extra time required to obtain certification by the National Institute for Automotive Service Excellence (ASE), be involved in training, both manufacturer and aftermarket, be involved in the SkillsUSA-Vocational Industrial Clubs of America (VICA) and the Automotive Youth Educational System (AYES) program, and stay abreast of current technology. These involved instructors have the support of the aftermarket suppliers and manufacturers and receive donations to defray the cost of operating a quality program,” explains Schott.

Schott's program is ASE-master certified. All instructors are ASE-master techs, with one being a world class tech, and the center has had a SkillsUSA-VICA club program for the past 20 years. They also participate in the AYES program, a partnership between General Motors, DaimlerChrysler and Toyota corporations that gives students work experience while they pursue their high school diplomas.

Manley describes his program at Smoky Hill as “wounded” when he was hired as a full-time instructor five years ago. He took the position after a 15-year career as an automotive technician. The program was under probation by the state for not having a SkillsUSA-VICA Club and for its low female enrollment. Tools were outdated or missing and the latest textbooks were 15 years old. It was essentially a “hobby shop,” where students did what they wanted to do. Manley gained support from the administrative department to revamp the program and started the process by taking steps to achieve ASE-certification through the National Automotive Technicians Education Foundation (NATEF). Manley also set up a SkillsUSA-VICA Club, and once the school achieved ASE-certification, it became an AYES participant.

The state of Colorado now requires ASE-certification for its vocational automotive programs or funding for the programs will be discontinued. According to Patricia Lundquist, Ph.D. and executive director for NATEF, states are starting to pay more attention to the expensive programs like automotive and as such, are requiring certification for schools to continue to receive funding. This certification process evaluates technician training programs against standards developed by the automotive industry, and therefore, raises the quality of secondary and postsecondary programs.

“The number of programs ever certified is increasing,” said Lundquist. As of May 2000, there were a total of 1,137 ASE-certified automobile programs of which 687 were recertifications and 450 were initial certifications. (Programs must be recertified every five years.) Lunquist points out that the number of recertifications in automobile programs has exceeded the initial certifications, which indicates that programs are realizing the value of certification enough to do it again. On the collision side, there are 130 programs in initial certification and 83 in recertification. NATEF started the collision certification process approximately seven years after the automobile program.

Lundquist also stresses the importance of a proactive approach to the shortage of technicians and the benefits of being involved with secondary and postsecondary schools. “If you want to get something from the schools, you have to be willing to give something,” said Lundquist.

Manley and Schott both say they have minimal involvement in their programs from the independent segment of the industry. They suggest a number of ways for shop owners to be involved. They can be NATEF team evaluation members, volunteer on advisory committees, participate as a judge for the SkillsUSA-VICA competitions, and support informational days sponsored by the school. In addition, they encourage shop owners to visit the schools and give talks, as well as open their businesses for field trips and tours. “Shops can get involved simply by picking up the phone. Or walk in, see if you can help,” said Manley.

Upon graduation, Manley will mentor his students to pursue a number of options including postsecondary training at community colleges, dealer programs such as ASSET, SETP and T-TEN, and independent training programs at the college level. Some will join shops and dealerships as employees and rely on those businesses to mentor them and provide additional education and training. Manley also works closely with the Automotive Service Association (ASA) of Colorado and its apprenticeship program. This two-year-old program identifies students at the high school level and develops their skills with a combination of classroom education at Front Range Community College and hands-on experience at participating shops.

A program with similar goals was launched in southeast Texas in May 1999. According to Bertie Standley, school-to-work coordinator with the Southeast Texas School-to-Work Partnership, this internship program is unique because it has brought together local dealerships and independent shops to address the labor shortage issue and improve the quality of vo-tech programs. Students take classroom education at Lamar State College of Port Arthur and receive hands-on work experience at participating dealerships and shops that form the Automotive Technology Council of Southeast Texas. Students are assigned a master technician to mentor them in the work environment. Council members also help instructors and post-secondary and secondary schools achieve their certifications through ASE and NATEF. In addition, they assist with equipment and curriculum needs. According to Standley, there are approximately 20 dealerships and shops in the program. For the upcoming fall semester, however, there are more students than participating facilities.

In the state of Washington, the independent segment of the industry developed a program called the Independent Technicians Education Coalition (I-TEC), now in its third year of operation. “Nobody could find technicians, nobody was doing anything about it and we all knew we needed something,” said Dan Flanagan, vice president of I-TEC and publisher of the Manifold, an industry publication. Approximately 30 to 35 people dedicated themselves to developing the I-TEC program, which was modeled after the dealer programs (ASSET, ASEP and T-TEN); but instead, students are placed in independent shops for their hands-on work experience. Students alternate between classroom education and hands-on learning in this two-year program that concludes in an associate's degree and I-TEC certification. All participants—schools, students and shops—must meet high standards before being accepted into the program. According to Flanagan, the first class of graduates had 16 students. Although the program does not require a commitment from the students to stay with the sponsoring shop after graduation, all 16 of these students are still working at the 16 sponsoring shops.

“Ninety-nine percent of the time students do end up working for the sponsoring shop. They are well-trained; there is an established relationship and the shop owner has been involved in the training process,” said Flanagan. The fourth class to start in September will have approximately 30 students. Based on its early success and acceptance, the I-TEC program was extended approximately a year ago to include auto body repair.

“The I-TEC program is a great example of how independents can get things done. It shows how they really care about themselves, their future and the industry,” said Lundquist.

To Get Involved, Contact: National Automotive Technicians Education Foundation

(703) 713-0100

www.natef.org

SkillsUSA-VICA

(703) 777-8810

www.skillusa.org

Independent Technicians Education Coalition (I-TEC)

(425) 413-0232

www.iteconline.org

National Institute for Automotive Service Excellence

(703) 713-3800

www.asecert.org

Automotive Service Association

(800) 272-7467

www.asashop.org

Automotive Youth Educational System (AYES)

(360) 456-2849

Keeping Customers Happy

2007-07-13T16:35:00.001-05:00

What does it take to keep customers happy, or at least satisfied enough with your service that they will come back to you next time, and maybe even refer their friends? The basic rules are simple: 1) Fix the car right the first time and 2) Treat the customers fairly. But there are other important steps in making sure your customers are happy.

First, to figure out how to keep your customers happy, you have to think like a customer. Though most repair shop owners and employees are not consumers of vehicle repair services, they are consumers of other goods and services. Ask yourself what you look for when you pay for some kind of service. When you purchase something, what do you expect of the product and from the company that sold it to you?

Good customer relations start with knowing what your customers need and want from you. Have you ever surveyed your customers to find out what they really think about your business and about auto repair in general? It can be deadly to operate a business without knowing for sure what your customers think and what they need and want. Simply assuming you already know can cost you a lot of money. So go ahead and conduct a simple customer survey. You might have an eye-opening experience.

Surprisingly, recent customer surveys done by Management Success!, a company that specializes in training and consulting independent repair shop owners, show price is not the No. 1 concern of most auto repair consumers. Their No. 1 concern is getting the problem with their vehicle fixed completely; their No. 2 concern is paying for unneeded parts or services.

Since most of your customers know very little about their vehicles, they need to know the auto repair business they deal with can be trusted. The key to earning their trust is consistently good service supported by good communication. This means you have to pay attention to your customer and not have your mind on 40 different things when he or she is talking to you. When you really listen to your customers, you are showing a high degree of care, which is one of the leading reasons people bring their vehicles to the independent shop in the first place.

Next, you have to answer questions with words customers will understand. Don't try to impress people with how much you know by using technical and industry jargon. Your customers won't understand what you're talking about and will actually start to dislike you! For an example of how this works, watch a foreign language movie without subtitles and see how long it takes you to start feeling uncomfortable.

Explain to each customer what repairs his or her vehicle needs and what your procedures are to accomplish these repairs, step by step. Make sure the customer understands what you say. Be clear about what you can do and what you cannot do. Have the customer sign a written estimate, give him a copy, and assure him that you will let him know if there will be any changes or additional work that needs to be done before you perform that additional work. Customers hate “the 5 o'clock surprise,” i.e., charges for service to which they did not agree.

It's a wise service writer who makes it a regular practice to check the status of each repair job throughout the day. By doing this, he can reassure the customer who calls for an update that things are under control, and, if his vehicle isn't going to be finished that day, he can give the customer plenty of notice.

Doing Complete Vehicle Inspections

One of the last things a shop owner wants to hear from a customer is the infamous “eversincha.” “Ever since you worked on my car I am no longer able to get Radio Moscow on my radio!” “Ever since you worked on my car, every dog in the neighborhood chases my car!” You try to explain how changing the fan belt has nothing to do with these problems, but your pleading falls on deaf ears. Because there's just no winning some of these arguments, avoid the “eversincha” by doing a complete vehicle inspection and then going over your findings with the customer, regardless of the problem the vehicle was brought in for in the first place.

Prioritize for your customer the various repairs his vehicle needs. This is your opportunity to be the professional you are, guiding your customer into good vehicle maintenance. It is time well spent. Your customers will notice and appreciate your care.

Quality Assurance

Have you ever had a customer come in at the end of the day to pick up a car, only to find the problem they brought it in for still isn't handled? That's a “special” experience for a shop owner, especially when it's late and you're the only one there. To avoid such special moments, you must have a system in place that checks each completed vehicle against the repair order to ensure the repair has been fully done, before the customer gets there. If your shop fails to do this kind of quality assurance on the vehicles it repairs, your customers become your Quality Assurance department rather than becoming loyal customers! Sometimes quality assurance is just the simple task of walking around the vehicle to make sure there are no flat or low tires, no grease smudges, that the fluid levels are correct, nothing is leaking, and most important, that the problem the vehicle was brought in for is handled!

Going the Extra Mile

The secret to success in business is to exceed your customers' expectations. Most shops do a lot of little things for their customers that the customer isn't made aware of. These are lost public relations opportunities for the shop. There are several effective ways to make sure your customers know about the little extra things you do. 1) Tell them when you have done something extra for them. 2) Write it on the repair order with a “No Charge” in the price column. 3) Create a good-looking brochure that outlines the extra special services that you provide and give one to every customer.

It really doesn't take that much to make a customer feel special and well taken care of; simple things like a shuttle service or fresh coffee can make a big, lasting impression. You might also be surprised at the effect friendly “service-with-a-smile” has on your customers and, ultimately, on your sales figures.

Summary

Keeping good customers happy isn't difficult if you pay attention to the details and take the time to make sure your customers' questions and concerns are handled professionally. But above all, strive always to fix the car right the first time and to treat the customer fairly.

Good luck on your road to success!

What's Next for Crash Parts?

2007-05-29T10:26:00.000-05:00

The replacement crash parts issue continues to evolve for the repair industry. Since the 1995 passage of legislation in West Virginia, we have had a great deal of activity with the issue of crash parts. This has led to year after year of bill introduction from 20 bills a year to almost 40 bills this past legislative season. This does not include the regulatory attempts at making the use of replacement crash parts more consumer friendly.

Last year might have been the most critical juncture for the crash parts debate beginning with a February 1999 Consumer Reports cover story titled "Shoddy Auto Parts." This was the first major piece during the late '90s highlighting consumer issues relative to crash parts. Later in 1999, State Farm Insurance Co. was dealt a serious blow with a Marion, Ill., state court decision on aftermarket parts. The national media focused for days on the size of the verdict and on what had previously been an industry trade press issue.

With the State Farm case on appeal, no short-run decision is likely in that case. Is there any certainty that the final decision or settlement in this case will produce a sufficient industry resolution to the crash parts problem? Will legislation resolve the issue? Possibly. But this, too, seems unlikely with insurers and repairers locked in a national standoff on crash parts. Since the 1997 Crash Parts Industry Summits, ASA has promoted the concept of consumer notice and consent.

Although much of the state legislation has begun to move this way with less focus on “original equipment manufactured parts only” black-out periods, the bills are constantly opposed by the insurance industry and receive very limited support from the original equipment manufacturers. The policy is right but insurers are unlikely to buy off on any formal consent process after a collision has taken place as to the use of a particular part. Heightening notice provisions does not seem to be a sticking point with insurers but consumer post-collision consent continues to be difficult.

ASA has held a series of meetings with the aftermarket parts distributors, insurers and the Certified Automotive Parts Association (CAPA) to discuss industry solutions to the crash parts debate. Insurers did not participate in the 1997 summits held by ASA.

Johnny Mock, ASA's immediate past chairman, (left) and U.S. Rep. Ron Klink, D-Pa., at a recent meeting in Washington, D.C. Mock and other ASA leaders discussed legislative issues affecting the automotive service industry.

What is becoming increasingly clear is that a state legislative approach for crash parts will be problematic. Our industry is facing this scenario at the present with state titling laws. They are all different. These titling laws feed a multitude of problems including stolen auto parts. Fifty different crash parts laws in the states are not the best solution. Is this an opportunity for a national regulatory process? Repairers continue to list safety and quality concerns in the use of some aftermarket parts. What role should the National Highway Traffic Safety Administration (NHTSA) play with regard to safety? Should the Federal Trade Commission pursue quality criteria for crash parts? Why does the U.S. Customs Service inspect automobiles coming into the United States, but not review automotive crash parts?

These are tough questions. U.S. Rep. Ron Klink, D-Pa., has contacted the General Accounting Office about reviewing the crash parts issue. Representative Klink is a senior member of the U.S. House Commerce Committee.

Part of this review would include determining what parts are currently being inspected, what authority for inspection these agencies have under current law, why parts on new automobiles are treated differently than replacement parts and finally, to what standard imported replacement crash parts are being held.

Can a substantive national certification program work? CAPA has been controversial in our industry. If federal regulators have some role in the certification or review process, would this be sufficient to put aside industry concerns or at least move the parts resolve in the right direction? The national certifying entity must involve repairers in its process. They know these parts, the quality and safety concerns. Their role is essential in determining not only what issues are important for the consumer but also to clarify the hidden costs such as labor and shipping that continue to lie at the base of this controversy. Whether it is CAPA or another certifying entity, they must seek a balance of consumers, insurers and repairers in their governing or advisory body.

The final solution for crash parts is still ahead of us. It is important that insurers and repairers maintain a dialogue to find the best resolve. The legislative standoff of the past few years is not best for the consumer or the repairer. If the consumer loses so does the insurer.

A national model may evolve that benefits repairers, consumers and insurers. Without consensus this problem won't go away.