SOME AFTERMARKET BRANDS WILL LOSE SALES
AND CREDIBILITY AGAIN THIS FALL
It appears another cycle has started again.
Over the past ten years it has been discussed many times however it seems the industry is determined to do it their way with the quick fix method. They then will blame the poor quarterly sales and profits on something else instead of squarely on Management.
I am talking about aftermarket parts pricing as well as part function.
There are Aftermarket Brands that continue to fail to take their time to do their homework as they are not pricing themselves against OE parts. When a shop is loyal to their chosen supplier as well as a manufacturing Brand, and makes that first and only call to their jobber to purchase an aftermarket part to then find out, after the fact (the hard way), that the OE part from the dealership retails for less than his aftermarket actual part cost, all trust and credibility is destroyed between the Brand and the shop owner. The Jobber is caught in the middle of this storm as they continue to lose sales to the OE arena.
Shop owners will now start taking additional time to check OE cost for key parts because they don't want their clients to be over charged and potentially lose the customer/client over the price of a part. Trustworthy client relationships are critical today and especially during challenging economic times. The better shop owners are always looking out for their client's best interest.
How could our industry fall off the wagon so easily?
Now we are also starting to hear, once again, that the Aftermarket part function is not up to standard. Why are Name Brands sourcing parts off-shore without monitoring quality in favor of perceived quick profits to then have the part fail time and time again?
The aftermarket must continue to have a strong dialogue in regards to these issues and manufacturers must insert the disciplines to ensure they excel with their Brand. Let's face it, cutting corners for the quick fix today is costing everyone money, time and credibility in the long run. During these different economic times, quality, fair pricing and top level service is so necessary to maintain the shop and consumer's confidence and trust.
Let's keep the dialogue open.
Tuesday, August 25, 2009
Tuesday, August 4, 2009
AUGUST IS AN IMPORTANT MONTH FOR RENEWAL
As easy as it is to remain in holiday mode during the month of August, business owners should use this month to review all business processes within their operation to make sure the shop is primed and ready for the Fall service season.
Consider completing the following reviews and discussions with all staff members:
Initial Facility Image
- Is the facility clean and organized outside and inside? Review your processes to ensure the facility remains this way even during hectic days.
- Does the facility send a perception to the consumer that we are a professional organization? Consider that you are a mini dealership but with the Independent touch.
- Is the facility appealing to women clientele? (ask for honest feedback)
- Does the client waiting area contain current educational material and is it visually appealing, including the smell of fresh air?
- Is wireless internet connection available in the shop?
Front Counter Procedures
- Is the process of how clients are professionally greeted and acknowledged in place with a friendly voice and smile behind the counter?
- Is the vehicle service history always being reviewed and discussed with the client?
- Do you manage the vehicle on behalf of the client based on the clients use and expectations of their vehicle?
- Are all manufacturer recommended servicing being reviewed and discussed with the client?
- Are future appointment time frames being booked before the client leaves?
Back Shop
- Are clear and precise communications in place between the front counter and the technician?
- Are written vehicle inspections being completed by the technician and reported to the front counter on every vehicle?
- Is all maintenance and diagnostic time being captured and documented properly?
Office
- Are average billed hours per invoice being calculated daily and weekly and reported to all staff?
- Are billed hour goals being set for the day and week for the front counter and with each technician?
- Is the total shop efficiency being calculated weekly, compared to objective and reported to all staff?
Review what up to date courses are required in terms of technical and business training. Search the marketplace as to where the courses are being held and register the shop. There is a good possibility out of town travel will be required. Plan now to ensure training opportunities are not missed. Remember you are in the knowledge business.
These are not all the issues to be addressed however theses few items play an important role to ensure the shops bottom-line profitability is moving forward. August can be a month of internal renewal for the shop, so use it wisely. Make sure your business processes are in place and working seamlessly. It will be time and effort well spent.
As easy as it is to remain in holiday mode during the month of August, business owners should use this month to review all business processes within their operation to make sure the shop is primed and ready for the Fall service season.
Consider completing the following reviews and discussions with all staff members:
Initial Facility Image
- Is the facility clean and organized outside and inside? Review your processes to ensure the facility remains this way even during hectic days.
- Does the facility send a perception to the consumer that we are a professional organization? Consider that you are a mini dealership but with the Independent touch.
- Is the facility appealing to women clientele? (ask for honest feedback)
- Does the client waiting area contain current educational material and is it visually appealing, including the smell of fresh air?
- Is wireless internet connection available in the shop?
Front Counter Procedures
- Is the process of how clients are professionally greeted and acknowledged in place with a friendly voice and smile behind the counter?
- Is the vehicle service history always being reviewed and discussed with the client?
- Do you manage the vehicle on behalf of the client based on the clients use and expectations of their vehicle?
- Are all manufacturer recommended servicing being reviewed and discussed with the client?
- Are future appointment time frames being booked before the client leaves?
Back Shop
- Are clear and precise communications in place between the front counter and the technician?
- Are written vehicle inspections being completed by the technician and reported to the front counter on every vehicle?
- Is all maintenance and diagnostic time being captured and documented properly?
Office
- Are average billed hours per invoice being calculated daily and weekly and reported to all staff?
- Are billed hour goals being set for the day and week for the front counter and with each technician?
- Is the total shop efficiency being calculated weekly, compared to objective and reported to all staff?
Review what up to date courses are required in terms of technical and business training. Search the marketplace as to where the courses are being held and register the shop. There is a good possibility out of town travel will be required. Plan now to ensure training opportunities are not missed. Remember you are in the knowledge business.
These are not all the issues to be addressed however theses few items play an important role to ensure the shops bottom-line profitability is moving forward. August can be a month of internal renewal for the shop, so use it wisely. Make sure your business processes are in place and working seamlessly. It will be time and effort well spent.
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