Thursday, February 25, 2010

SLOW TIMES MEANS PAY ATTENTION TO SHOP PROCESSES

Have you ever noticed that when the shop is slow, management has a tendency to panic? Welcome to the break down and repair business. The fact is it has been extremely slow from coast to coast. Over the past 4 weeks I have traveled from the Atlantic region to the shores of the Pacific and regions in between, talking with many people from all levels of the industry. Business is definitely different.

A main contributor to the slow business is that too many shops rely on the break down and repair business model from the past 40 years. They are running an installer based business model from yesterday's era versus a comprehensive service provider based business model required today. The previous generation's business model is broken. The math does not work any more.

This is why the preventative maintenance business model must be adopted and embraced.

Vehicles are still moving out there so they must be properly maintained.

Preventative maintenance is currently being neglected by the consumer. You can thank the high consumer debt load coupled with the fact vehicles are also built better. They just don't break down the way they use to. Another factor is the shops through out the industry have failed to educate the client/consumer about budgeting for their vehicle to ensure safety and reliability.

During this slow period of time it would be wise to start building and refining the shop's internal process and procedures by going through your data base and research the last time the customer/client was in for preventative maintenance service? Start by reviewing all flush services required. As you know complete fluid maintenance is critical to reliable vehicle performance today. From there locate what other specific items were declined in previous visits by the client that must be brought to the table again. Review manufacturer recommended required servicing based on client mileage utilizing industry resources such as Mitchell, Alldata and Identifix.

It is the shop's Professional responsibility to ensure the client's vehicle is safe and reliable. This is what you are hired for. This is why clients trust you. It is time to review their file completely and then contact them. Work with the client. This on-going process must be instilled as a culture in the shop's daily and weekly procedures. Become proactive rather than reactive.

Take charge of the business. Review all internal vehicle inspection procedures and processes with the staff including the items above coupled with thorough time clock recording which is required to ensure proper billing at the front counter. Bring the staff together as a team; a team that understands its responsibilities to serve each and every client to the very best of our ability. We must never let a client down. Let the staff see and hear you counselling the client and lead them by example.

It is easy for an owner/manager to sit back and complain about the world while they try to slash expenses, then they focus on parts cost by shopping jobbers all over town for a better price to save $5 or $10 on a part, rather than concentrate on their core business which is shop productivity. They then think they can discount themselves back into prosperity by now putting on price specials trying to keep the bays busy. Do the math. Math doesn't lie. These discounting, out of control shops from yesteryear, are trying to make 2 + 2 add to 7.

The shops that have now gone back to the old style of business with the oil change loss leader method will not only do more damage to their own business but also to the reputation of the automotive aftermarket industry. Everyone knows these shops try to sell up and do anything to find work to keep the staff busy. This shop's culture is always all about them and not the end client/consumer. Client/consumer trust is not in place and never will be with this method. These shops just don't get it. They always end up buying themselves a job and a terribly poor one at that, as management is chained to the business 6 days a week.

The real issue in these modern times is taking control of the business by understanding the math and managing the client's vehicle and their relationships the shop has in place. From there the shop executes its responsibilities of trust on behalf of the client. Client's are not thinking about vehicle service because they are too busy in their own lives and besides, to them, the vehicle seems to be running just fine, however, you know that if it is not maintained properly a potential costly and time consuming inconvenience for the client could occur. Educate the client/consumer by counselling not selling. The average client/consumer is not stupid but they are uninformed.

Consider all the options...........you are in the relationship business. You are the Professional. Take your responsibilities seriously.

2 comments:

Anonymous said...

We have been doing as you say for a long time, but it is never-the-less difficult times. We have spent a lot of time trying to educate our clients regarding preventative maintenance, we have spent a lot of effort in trying to educate our clients about our expertise in new car service. We have highlighted our ability to maintain new car warranty, but we still daily run into the client who has purchased a new car, who apologizes in church or the grocery store that the reason that we haven't seen them is that they are going back to the dealer because of warranty. They have had a number done on them by the dealers, as we often lose these people to the "you have to come back to us to maintain your warranty" pressure. Our Guelph Garage Owners Association has monthly full page spreads in our newspaper that tries to fight this myth.
The aftermarket industry has to step up to the plate to give us a hand to fight this myth. They have to maintain their pressure (which we appreciate in the "Right to Repair" battle) on the OEM's who realize as indicated in DeRosier's blogs that the parts and repair business is the prime profit centre in their stores. We simply do not have the "firepower" as individual shops to win this game, although we are holding our own for the time being.

Jeff said...

Great post, Bob. I know what you mean, and sometimes it can be a little disheartening when things are moving slow in the shop. Always important to stay level-headed and realize that there are still drivers out there, and these cars will require work and maintenance at some point or another.

- Jeff
Plano Car Tinting

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