The economy has taken a toll on all industries, auto repair has been no exception. But while some shops continue to see dwindling customer bases, others have been able to remain stable if not grow.
Ratchet+Wrench spoke with Betty Jo Young—shop owner, Carquest trainer and mechanical division board member for Automotive Service Association—about what shops should and should not do to keep them competitive in a difficult economy.
It’s not a bad thing to be forced to take a hard look at your business, look where the money’s going and tighten some things up. Like it or not, that’s what the economy has done for a lot of us. We have to adapt to continue to succeed.
What it comes down to is that we all have to make decisions about what we are willing to do to stay in business—things we may have never thought of doing. There’s a reason we’re called independent, and each shop has to give some thought to what they’re willing to do to continue to get customers.
Here is my list of “Dos and Don’ts” in this current economic situation:
Associate I don’t think you should be out on an island by yourself anymore. It’s very difficult to keep up with what’s going on if you’re not involved. Join some sort of association or network of shops.
This also gives you an opportunity to work with other shops. If there’s equipment you can’t afford and don’t need full time, or work you can sublet out, you can partner up with someone in your area to help out. This cuts down your costs, and it lets you be able to never turn a customer away. You need to be that one-stop shop for your customers.
Market You have to get new customers in, and that means marketing. I really believe that there is some very good, economical marketing that you can do. Email is important—ask customers for updated emails every time they’re in your shop. Email is free and it’s an effective way to market. Ask if you can text them with updates and maintenance reminders.
Go to trade shows This not only gives you a chance to bounce ideas off other shop owners, but it also helps put you in touch with various product manufacturers and can help you find what’s right for your shop.
Get a website Building an online reputation is important today, but don’t do it unless you have someone dedicated to maintaining it. Ignoring it can do more harm than good.
Keep up with technology Training, new equipment, new trends—they can cost money to do, but if you don’t do them you can’t fix the problems coming through your door. You have to make that investment, and it will pay off.
Don’t take customers for granted I think that the day when there was so much work that you wouldn’t miss them is over. You need to take care of your customer.
Don’t assume customers will come back There’s a lot of competition out there. Keep your name in front of your customers and do call backs. Some of your best customers could go away and you won’t know why. The follow-up calls can find out what you did wrong and how you can keep that from happening again.
Don’t let money roll out of your bays If someone comes in for a starter, that doesn’t mean you can’t do a visual inspection of that car and recommend other things that are needed. Even if they can’t do it this trip, part of my job is that the customer doesn’t break down, because that’s a reflection on me.
Don’t take employees for granted A good employee is so incredibly important. Keeping good employees and keeping them trained properly is critical. So many times, people think they have to find somebody new. Well, how about training who you know and who you have.
Don’t lower your standards Just because it’s a bad economy doesn’t mean you start becoming the cheapest shop. I don’t want to be the cheapest in town. That’s not the customer I want. I want them to know that I’m going to use quality parts, that I have A and B, the best and a good brand. Going in with the lowest parts is just going to give you more comebacks and disgruntled customers.