Trends In The Industry - The Future Of Your Business -

Trends In The Industry – The Future Of Your Business

There are a number of changes that are occurring in our industry, and there is no question, some of them will have a profound, long-term impact. To name just two, automobiles are being built better, and as we all know, service intervals are constantly being extended by the manufacturers.

By Bob Cooper of Elite

There are a number of changes that are occurring in our industry, and there is no question, some of them will have a profound, long-term impact. To name just two, automobiles are being built better, and as we all know, service intervals are constantly being extended by the manufacturers. Although this is all good for consumers, better-built vehicles means they’ll need fewer repairs, and extended service intervals means you’ll be seeing your existing customers less frequently in the coming years. The way most shop owners are dealing with this evolution is by trying to convince all of their customers that they need to bring their vehicles in more frequently than the manufacturer recommends. They tell them that their oil needs to be changed more frequently, and that it’s a good policy to have their vehicles inspected every 3,000-5,000 miles. Although I agree with the reasoning, these shop owners are fighting an uphill battle since one of the many reasons people buy new vehicles is because they really like the idea of extended service intervals. So rather than trying to fight this trend, as your competitors do, I encourage you to understand it, and rather than trying to sell each and every customer on the value of coming in more frequently, I encourage you to take a different approach.

First of all, as in any business, you should explore every opportunity to provide additional services to your customers. They already trust you and your recommendations, so services such as door ding removals, tire installations, glass repair services, cabin air duct cleaning services, and detailing services are good examples of other services you can offer. Not only will services that enhance vehicle appearance or customer comfort put smiles on the faces of your customers, but at the same time these services will increase your ARO, which will help offset the fewer number of times you’ll see your customers throughout the year.

The second thing you will need to do is ensure that your service advisors are very well trained. Any services that are not authorized during a visit will more than likely be lost sales, because it may be six months or longer before you see that particular customer again. By then, your service recommendations will either be forgotten, viewed as unimportant by the customer, or if they experienced a subsequent failure, they may very well have it repaired somewhere else. Worse yet, if it’s a safety item that you discover, and if it’s not repaired during their initial visit, the customer will be at an even greater risk. There is no question that the age-old expression, “We’ll take care of that the next time you’re in” is going to vanish from our industry.

Lastly, with the understanding that you will be seeing the majority of your customers less frequently as time goes on, in order to keep your service bays filled you will need to ensure that you have a well-constructed marketing plan in place that will bring in the right kind of customers. To stay ahead of your competitors you need to invest at least 40% of your advertising budget into non-traditional advertising programs, and you should invest at least a fourth of that 40% into advertising programs that are directed toward what I refer to as the “emerging market”; the Y Gens. These are the people that were born between 1980 and 1990, and there is no doubt in my mind that they are the future of your business.

In summary, I encourage you to avoid fighting the evolution of automobiles or trying to sell your customers on a service schedule that they have little or no interest in buying. Instead, look for other ways you can help them when you do see them, by providing additional services. If the services you offer are cosmetic in nature, or if they provide added comfort to the customer in any way, all the better. You will need to have talented, well-trained advisors, you’ll need well-constructed programs in place that will keep your name in front of your customers, and there is no doubt, you’ll need to have a marketing plan in place that will bring in even more … of the right kind of customers.

For additional help building a more successful auto repair business, learn more about how Elite can help with profitable auto repair shop management.

You May Also Like

TechForce Announces Winners of Techs Rock Awards

Misael Rodriguez and Dustin Thomas are the grand-prize winners.

TechForce Foundation has announced Misael Rodriguez of Ben Davis High School and Dustin Thomas of CarMax as grand-prize winners in the sixth-annual Techs Rock Awards, recognizing their commitment to the profession.

The Future Tech and Working Tech winners were honored Thursday in a ceremony hosted at Mecum Glendale 2024 at State Farm Stadium in Glendale, Arizona.

TechShop, ShopOwner Offer $50 For Good Guesses

Guess The Tool For A Chance At Cold Hard Cash!

Upgrading Your Air System Is Easier Than You Think

Improving your shop airflow benefits your shop, your techs and your bottom line

Understanding the Customer Lifecycle

Connect with customers to create repeat business and build your brand.

The Advantages of Selling Specialized Automotive Services

Specialization can set your business apart and meet specific customer needs.

Other Posts

Working Smarter Instead of Harder

Imperfect people can perform at or near perfection when they have perfect processes.

Work-Smarter
What Would I Say To My Younger Self?

Hindsight is 20/20 – wouldn’t it be nice to have better foresight?

AI in the Automotive Aftermarket

The applications for AI are endless, but hurdles still remain.

Why ECU Reflashing Needs Certain Power Levels

A reflash power supply is not designed to jumpstart the vehicle.