BUILD YOUR BUSINESS WITH NONTRADITIONAL SALES & MARKETING TECHNIQUES

Motor, May 2005 by O'Connor, Bob

Many repair shops report that business is unstable and profit-generating sales levels are difficult to achieve and, if they are reached, are even more difficult to maintain. With every segment of the auto service and repair industry competing aggressively for the business, what can you do to get the market share you need?

Earlier this year, a shop owner contacted our company complaining that the economy in his market area was poor and that his business was off by 30%. He said he had almost exhausted his financial resources in trying to keep the business alive "until things got better." He wanted to know if there was anything we could do to help him with his dilemma.

The first point we made with this soonto-be-client was that he needed to recognize that there really was business to acquire in his market, and that he needed to take a different view of the situation. He told us there were 11 repair businesses located in his immediate market area, including other general repair shops, independent niche repair shops, franchised niche repair shops, tire stores, lube shops, new car/truck dealerships, etc.

We suggested he make a list of all those shops, then drive by and observe the activity at those facilities. The goal was for him to make an approxhmite assessment of what he felt each was generating in annual sales and then establish an average. We provided him with the methodology to make this assessment.

Once the assessment was made, the average figure he came up with was $500,000 per business. We multiplied that figure by 11 (the number of businesses) and determined that, collectively, without his shop in the equation, they were generating approximately $5.5 million in sales. Assuming that they also were experiencing the same 30% decline in business, they would still be collectively generating approximately $3.85 million in sales. Our response to our client was that there was plenty of business available in his market; he just was not getting a large enough share of it to be profitable.

He could increase his share of the available business by using some nontraditional marketing techniques that would provide him with some competitive advantages. And you can, too.

Databases

Few repair shops have systems in place to track methods of payment and accumulate enough of the information on which to base good decisions. Many computerized shop management systems are limited when it comes to enabling users to customize the software fields to track unique items. Therefore, we recommend that your system have the capability to use the Notes fields to source key words. Then you can make note of the type of credit card payment, such as Visa, MasterCard, American Express, as well as other methods of payment, such as personal check, 90 days same-as-cash, etc.

Customers who use American Express usually have no credit limit and look for outstanding service instead of merely a low price. In addition, if you're fully utilizing your 90 days same-as-cash program, you'll be able to monitor when they have cleared the card and have available credit. No matter what methods your customers use for payment, if you have the technology available, you can easily identify those who financially can do business with you at any time of the year.

Accessories

Many vehicles are equipped with accessories that could mean extra repair or service work for your shop. A good example is a trailer hitch. This accessory is probably the most overlooked opportunity in the auto service/repair industry! Many vehicles equipped with trailer hitches were never built to tow a significant amount of weight. This means they present opportunities such as more frequent preventive maintenance due to accelerated wear, as well as opportunities to sell and install other accessories, such as suspension upgrades, transmission coolers and a host of others. All of these types of work usually generate large tickets with great profit margins!

Also, trailers eventually need maintenance on exterior lighting, suspension and brakes, tires, axle alignment, etc. For example, our client base averages a $300 ticket on boat trailers. This business is available if you choose to take advantage of it.

Fleet Business

Often additional commercial fleet work is available simply for the asking. We recommend that shops develop a "fleet packet" that contains:

*A brief letter introducing your company.

*A line card of all products and services your company offers.

*Some testimonials with photos of individuals and/or company logos.

*The name of the person with whom initial contact should be made.

*Business cards.

*A compelling offer to motivate the prospect to give your company an opportunity to serve his needs.

*A detailed credit application.

*A map showing where your shop is located.

*Photos or a video of your facility and equipment.

*A copy of a detailed vehicle history printout.

*Credentials for your business and tech staff.

*A website address that also can provide some of the above, including a virtual tour of your facility.