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New AAIA/AASA Report Projects 3.4 Percent Industry Growth Through 2016

The U.S. automotive aftermarket industry is expected to grow 3.4 percent annually through 2016 to $263.8 billion, adding an additional $32.6 billion to the economy. These and additional aftermarket growth figures are contained in a jointly produced Channel Forecast Model sponsored by the Automotive Aftermarket Industry Association (AAIA) and the Automotive Aftermarket Suppliers Association (AASA).

Shop Owner Staff
By Shop Owner Staff

The U.S. automotive aftermarket industry is expected to grow 3.4 percent annually through 2016 to $263.8 billion, adding an additional $32.6 billion to the economy. These and additional aftermarket growth figures are contained in a jointly produced Channel Forecast Model sponsored by the Automotive Aftermarket Industry Association (AAIA) and the Automotive Aftermarket Suppliers Association (AASA).

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AAIA and AASA partnered to produce the Channel Forecast Model to create a single industry view of the size, growth rate and outlook for the motor vehicle aftermarket and thus provide a unified view of the industry’s magnitude, significance and potential, importance to legislators, regulators, investors and all stakeholders.

IHS Global Insight, a global leader in economic and financial analysis, forecasting and market intelligence, conducted the market sizing and forecast for the associations. Data is based on U.S. Department of Commerce, Federal Reserve Board and U.S. Census Bureau’s data, IMR and Polk data as well as proprietary IHS economic analysis and forecasting models.

“The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, AAIA president and CEO. “Why? The average age of vehicles is 11.3 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.”

“The forecast model anticipates that growth in population, employment and income will lead to growth in miles driven and the number of vehicles on the road resulting in long term aftermarket growth,” said Bill Long, AASA president and COO. “The Channel Forecast Model is a tool to help participants achieve that growth despite some of the major market shifts facing our industry such as vehicle telematics, increasing vehicle technology, new-model introductions and parts proliferation.”

About AAIA
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tools, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.

About AASA
AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is an affiliate of the Motor & Equipment Manufacturers Association (MEMA). “AASA, The Voice for the Automotive Aftermarket Supplier Industry”

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Phone Shoppers Made Easy

Although there is no silver bullet that will allow you to bring in every first-time caller, there are a number of things you can do to get more appointments. In this article, I would like to share some of the best practices your advisors can use that will generate immediate results.

Shop Owner Staff
By Shop Owner Staff

By Bob
Cooper of Elite

With
vehicles being built better than ever before, and with service intervals
continually being extended, you are going to see your customers less often.
This means your service advisors are going to have to be razor sharp when the
phone rings. Although there is no silver bullet that will allow you to bring in
every first-time caller, there are a number of things you can do to get more
appointments. In this article, I would like to share some of the best practices
your advisors can use that will generate immediate results.
In order for
someone to buy from you, three things need to occur: They have to like you,
they have to trust you, and they have to view you as a credible expert. So when
your phone rings, the first thing your advisors need to sell is themselves; not
the service or repair. The best way of accomplishing this goal is with a
professional, courteous and upbeat greeting, such as “Thank you for calling
Elite Auto Care, this is Bob. How can I help you this morning?” By using these
words we’re showing appreciation, by volunteering the name of our company we’re
assuring the callers that they’ve called the right number, and by providing our
name we’re beginning to build personal relationships. By asking how we can
help, we’re asking a question that will allow us to control the conversation.
By being upbeat and using the right tonality, our likeability goes up, and the
customer’s anxiety goes down.
The second
thing your advisors will need to do is slow the conversation down so the
callers don’t feel rushed, and they’ll have to become good detectives by asking
a number of questions. By having the callers talk, it will take their focus off
of the price, and it will allow them to begin to feel more comfortable with
your advisors at the same time.
When it comes
to asking for the appointment, one of the best kept secrets I can share with
you is this: With rare exception, your advisors need to offer every caller a
choice of appointment times, and whenever possible, one of those options should
be for them to bring the vehicle in now. For example; “I can squeeze you in
now, or would 2:15 be better for you?”
When it comes to auto repair, customers love finality, which is why
providing the “now” option is a powerful sales tool.
Now here’s
the absolute best-kept secret for dealing with the tough first-time callers.
Every one of your advisors needs to be aware that many “price shoppers” are
asking for price just to start the conversation, and beyond that, with rare
exception, callers don’t know the questions they should be asking. This is why
it’s a good idea to ask your service advisors to write down a list of the
questions that they think an educated caller would ask. Once they have their
lists completed, and committed to memory, then it’s easy for them to respond to
price inquiries with a statement like, “Well Larry, I know price is important
to you, and it should be, but if you call five different shops today, you’ll
more than likely get at least five different prices. Some of the other
questions you might want to ask are how long they’ve been in business, whether
or not they have certified technicians and a drug-free workplace program, and
you might want to have them walk you through their diagnostic processes as
well. You might also want to ask them if they always explore all of the options
that are available to customers when it comes to any recommended repairs, what
kind of warranties they provide, and if those warranties are in writing.”  Ladies and gentlemen, I’ve closed hundreds,
if not thousands of tough first-time “price shoppers” using this technique, so
I know it will work for you.
 If you’re still not quite sold, then consider
this. If you take my recommendations, when those price shoppers start calling
other shops, you know as well as I do that they’ll more than likely ask some of
the questions your advisors suggested to them. Not only will your competitors
be caught off guard and struggle with the answers, but in each case, the
callers will be thinking of your advisors. This is when they’ll not only realize
how well your advisors handled the call, but they’ll trust your advisors, and
you bet; they’ll now view them as credible experts as well.
For help permanently
increasing your service advisors’ sales and CSI scores, learn more about the Elite Masters Service Advisor Training
Program.

Read Full Article

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