WATCH FOR THE NEW NEIGHBOUR ON THE BLOCK

The changes within the industry have been dramatic within the past 60 days. The Chapter 11 filings of both Chrysler and General Motors in the USA will change the automotive landscape forever.

It is imperative that every Independent shop keep their eyes and ears open to see which new car dealerships will be closing within their area. This is an opportunity to secure new business however, the shops marketplace profile has to be clearly focused on competency and professional execution in front of the new potential client.

What I find interesting is that some dealerships will disappear entirely, however others will go through a metamorphosis conversion into an all makes and models independent service centre. This transition will not be easy for them but it will also bring some serious issues to the entire aftermarket.

Consider that the branded dealership mentality is completely different from Independent shop mentality. These dealership owners still think like branded dealerships. They measure their business through cost accounting methodology and have not been exposed to management accounting measurement. They live for flat rate processes and the general attitude that comes with that type of thinking rather than securing and building a competent technical team through managed productivity and professional income stability as a key component to the profitability of the shop. They are, in general, weak at building one on one client relationships as compared to the true Independent shop. They have a focus on selling customer service packages rather than discover what the individual really needs and then manage their vehicle accordingly. They watch sales volume going through the service bays. They are more focused on an activity based business over a productivity based business. They sell a customer rather than counsel a client.

This is not to say all dealerships that convert will be like that as I have met some excellent owners in the past and I certainly welcome them and their entrepreneurship to the Independent sector. They will be good for us as they raise the bar in the marketplace.

The others however are my concern as they set the example once again in front of the consumer but now in the Independent arena and as a consumer perceived representative of our sector. Are they open to that re-learning attitude or will they hang on to their dealership attitudes? Time will tell.

Independent shops should welcome the better dealership conversions and build a professional relationship with them as you have with your peers. It will be good for the Independent shop and good for the Dealership, but most important, good for the consumer in experiencing professional service levels and the overall image of the Independent sector.

The Independent sector can move forward in this crisis but it will take everyone rowing together to capture the opportunities in front of us.