There are steps that a shop owner can start to take to transition the business into the modern day format that is required to be successful for this new decade.
Consider each point as it applies to your operation.
1. THINK ABOUT THE SHOP'S HISTORY: Never embark on a new plan without first understanding where the shop came from. Discuss the shop's history with your team and talk about why change is required and how each individual will benefit from the change desired.
2. DO SOME MATH: Study the basic numbers of the business and project how the numbers would change in the business when the new transition is in place. Math does not lie and when the employees income improves and the shop's bottom-line is positively impacted, then effort to make the transition makes sense.
3. SEEK OUT THE SHOP'S VULNERABILITY: With any transition in business there is always one or two weak links in the chain. Review the shop's weakest points and how they would have to be changed in order to support and make the transition work.
4. ARE THE RIGHT PEOPLE ON THE BUS?: In any business having staff with the right attitude is everything. A negative staff member creates conflict, business stress, and always slows any new desired process down. I would rather have a staff member with an incredible positive attitude and little experience over a highly qualified individual who knows it all. Do an inventory of the shop's staff. Can this shop operate as a team or is it too individualistic? Today's business requires a team.
5. DON'T SELL, COUNSEL: Work on changing the mind-set throughout the shop that we are Professionals being hired by our client to advise them based on the clients parameters. This is the Professional way of doing business today. When the client is properly and Professionally served, the sales will look after themselves. Review all internal vehicle inspection and reporting processes to ensure the client is being properly and fully informed.
6. MEASURE THE RIGHT CRITERIA: Transition the business effectively by monitoring and measuring 2 basic items on a weekly basis, namely, the average billed hours per invoice (minimum 2.0 to 2.5 hours per invoice for basic consumer vehicle maintenance) and total shop efficiency (minimum 75% with a desired goal of 80%). Report and discuss these numbers to the staff as they point out exactly the effectiveness the shop is having, as a team, with each client.
7. PATIENCE WITH DISCIPLINE: If change was easy, the entire industry would be embracing it. The fact is transitioning the business to a new culture requires Management patience coupled with discipline to execute. It is so easy to make up an excuse to stop trying or quit.
I believe 2010 will be an exceptionally positive year for the Independent sector of the Aftermarket. There is a lot of pent up demand for vehicle preventative maintenance that was turned down or neglected during 2009. The shop's that have transitioned their business to professionally serve their clients are in the right position to reap incredible rewards.
Are you enjoying a career or have you bought yourself a job?
skip to main |
skip to sidebar
1 comment:
Your message rings as true today as it has for the past three decades. There is difficulty positioning an automotive repair business as a maintenance focused shop catering to a professional client base that is enlightened and can afford to pay the true costs associated with staff training, keeping up with technology, providing adequate compensation to technicians and actually realizing a profit to reward garage owners. There are simply too many car owners that aren't willing to put in their share. Thus, too many service providers get tripped up in the struggle to race for the bottom and the age old stigmas of "grease monkey" and "rip off artist" continue to emerge as our basic business denominator for all in the barrel. I note that professionals in the construction industry put great stock in their government sanctioned credentials. Their profit depends on enforcing the legal clout that these credentials provide. We need to do this. We have to convince our governments to give licensed technicians more powers of enforcement in matters of vehicle safety. Ontario should have mandatory vehicle safety inspections at least on a bi-annual basis. Now is the time for us to demand this responsibility in enforcing our accredation. Let's get together and get this done. It's a matter of respect.
Post a Comment
We invite you to provide your input on each entry from Bob Greenwood. To foster a civil, focused discussion, comments will be moderated for tone, focus and relevancy.
To include your name, select "Name/URL" in the "Comment As" pull down box.