Repair Shop Owners Report Increase in Business -

Repair Shop Owners Report Increase in Business

Repair shop owners in the Greensboro, NC, area that were recently interviewed by a reporter from WFMY News 2 are reporting that business is up this year as more and more people are realizing that is it cheaper to repair their vehicles than to buy a new one.

Repair shop owners in the Greensboro, NC, area that were recently interviewed by a reporter from WFMY News 2 are reporting that business is up this year as more and more people are realizing that is it cheaper to repair their vehicles than to buy a new one.

Below is the article as it appeared on the WFMY News 2 website.

More People Driving Used Cars, Turning To Mechanics
By Justin Quesinberry
9/7/2010

Greensboro, NC — While many people are trying to save money in this economy, one section of the automotive world is booming.

The number of people hanging on to their current used vehicles is at an all time high, according to R.L. Polk, an automotive marketing company. That number is not expected to go down anytime soon.

"I’d love to see the economy turn around, but right now, economy looks pretty good for me right now," said Allen Roy, owner of Roy’s Automotive.

He said business is up 30 to 40 percent in the last couple of years.

"We used to do one or two engine overhaul jobs maybe a year. I think we’ve done about 12 so far this year," he said.

It’s a sign some people are turning to mechanics rather than salesmen.

"They found what I’ve known all along. It’s always cheaper to repair them than it is to replace them," Roy said.

Technicians at Cox Toyota Scion’s service center have also seen a boost of about 30 percent, according to Jim Butler, general manager.

To read the entire article, visit the WFMY News 2 website at http://www.digtriad.com/news/local/story.aspx?storyid=147598&catid=57.

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The True Cost Of Comebacks

Comebacks are a hot topic today. You need to track all comebacks, determine the reason (tech error, part error, training issue, other) and then calculate the true cost of the comeback.

By Joe Marconi of Elite
Comebacks are a hot topic today. You need to track
all comebacks, determine the reason (tech error, part error, training issue,
other) and then calculate the true cost of the comeback.
Here are a few things to consider:
• The loss of time when performing the comeback; time that the tech can use to
perform other work and generate profit;
• The misc costs, such as overhead costs, supplies, cleaners, etc.;
• Towing costs, rental, etc.;
• Cost to morale;
• Reputation damage; and
• Reduction to your profit margin.
For every part issue, you need to
inform your supplier. Sit down with suppliers on a regular basis. Don’t return defective
parts until you have listed the parts, and maintain a report. Document
everything.
Part issues are increasing. Every shop
owner I speak to is frustrated over this.
Remember, comebacks kill your bottom
line. The more comebacks you have, the more they’re killing your profits.
This article was contributed by Joe Marconi.
Joe is one of the 1-on-1 business coaches who helps shop owners through
the Elite Coaching Program, and is the
co-founder of autoshopowner.com.

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