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ATI Articles: chronological view Click here to display articles by category 2012 Emotional Figures
How's business? Are things
back to normal or at
pre-recession times
in your shop? Do you really know? I
mean do things "feel" better? More
importantly, how do the numbers look?
That is where we really can see how
things are compared to pre-recession
figures, providing that you know what
numbers to look at. You do look at the
numbers of your business, don't you?
Or are you running your shop based on
pure emotion?
Seizing A Chance
While the first day of summer
doesn't officially
happen until June 21,
the bountiful days of summer are coming.
The world of automotive typically experiences
a boom in the four or so months
of summer that can rival the other eight
months of the year. There is air-conditioning
work, overheating vehicles and
clients preparing for trips by catching up
on their needed maintenance.
Our service advisor instructor, Randy
Somers, trained more than 1,000 advisors
just last year, and I heard a great story
sitting in his classroom. Here’s his story.
Where There's Smoke, is There Fire?
We've all heard this old saying, but does it have any real
meaning in the automotive world? Let's listen to Senior Coach
George Zeeks share his experiences in the trenches.
After spending more than seven
years talking with and helping shop
owners through their problems, I can
firmly say that it definitely, maybe
does have meaning. One of the biggest
issues is responsibility, and so
many people try so hard to avoid
that particularly thorny issue. They
begin to embrace the smoke and pray
that the fire doesn't break out.
Can You Learn A New Trick?
This month, we are going to learn a new skill that will help you
stabilize your car count, increase your profits and help you
stay the best shop in your area. One of our head coaches, Mike
Haley, has been working with shop owners to help them implement
QR codes. These codes were initially introduced in 1994
by Toyota to track parts in vehicle manufacturing. I must admit,
I was not sure the QR (Quick Response) codes were going to
be a fad or a new cutting-edge technology in mainstream business.
Nevertheless, I've become a fan of this remarkable digital
marketing and informational tool. Why do I find these
jigsaw-looking squares so fascinating?
Employees Keeping You Up at Night?
Have you ever asked yourself what you could do differently to get your people
to do what you want them to do? Here is what Tom Ringle, a veteran ATI shop
owner coach, tells his clients. As shop owners with so many things to do to get through the
day, you might find yourself seeking new ways to create or define accountability.
So, what is accountability? We'll start there on our lesson.
2011 Graduating from Groundhog Day
One of my favorite movies is "Groundhog Day" starring
Bill Murray. In the movie, Murray's character is stuck
in a frustrating cycle. Every morning when he wakes
up, it's the same day. During this day the town, events
and people never change. It is not until he changes that
he is able to break this cycle. Have you ever felt like
Murray's character? You go to the shop day after day
and the results stay the same.
Surviving the Day
Turning wrenches, answering phones, diagnosing cars,
building estimates, ordering parts, directing technicians and
speaking with customers makes up a typical day for most
shop owners. Add just one hiccup in any of the previously
mentioned events, and you add several more to the list. The
day typically starts at the crack of dawn and runs straight
through until the sun goes down, and for some, even longer.
At the end of it all, you are just happy to have survived the
day. But what did you do to survive tomorrow? What about
surviving next week, next month or next year?
You Might Be Measuring Tech Productivity All Wrong
I wanted to begin this month by thanking all of the Profit
Matters readers who have emailed me over the years telling
me how much they enjoy reading our articles. If you haven't
picked up on it yet, I am recognition dependent, not money
motivated, and my No. 1 passion has been helping shop owners
grow over the past 40 years. I do realize that in order
to stay up with the changing times you need to stay close to
where the action is, which is in your repair shop.
Is Your Service Advisor More Like a Robot?
In today's economy and in talking to many shop owners
across the country, I often hear, "I need more cars," and
"Customers just aren't buying." If you have made either of
these statements yourself, maybe you need to look at the
level of customer service on your counter.
Building a relationship with your
customers is the key to their becoming
repeat customers and spending more
money with you. As a bonus, having
that relationship with your customers
will prompt them to refer more new
customers to you. Having said that,
way too often in automotive repair and
other retail walks of life, the person
behind the counter is a robot.
The Magic Pill To Increasing Car Count
The price of gas is hovering around $4 per gallon.
Consumers are driving less, so their time between visits will
be longer. What does that mean to you, the auto repair shop
owner? Keeping car count consistent in your shop is going to
be more challenging than ever! Today, building strong relationships
with your customers is critical. Shop owners constantly tell me they're
looking for the magic pill, the secret sauce
or the silver bullet to get more cars into
their shops. So what's the secret?
Answering Your Phone Effectively
This month, one of our top coaches, Matt Winslow, is going to
share our secret super-powered tip to keep your bays full of
cars and your cash register ringing with sales: "Give good
phone and you'll never be alone." All of your marketing and
advertising is designed to do one thing: make your phone
ring. Answering your phone effectively is critical to the success
of your business. Taking the time to make sure your
employees do it right will help you stay the best and keep
your customers from going to your competition.
Branding Your Service Center
If you want your shop to be perceived as the best shop in
your area, you have to differentiate it from your competition.
When your car count is stable, your profits will be stable and
you won't have to lay off employees when you don't want to.
The way you accomplish this is through branding your service
center. Many of you already have started on this journey
and don't realize it.
The New Age of Marketing for Increasing Car Count
"It has taken me years to learn how to fix cars and run my
shop. I don’t have the time to learn how to do advertising; I'll
just pay someone to do that." Does that sound familiar? Here
at ATI, we have heard it so many times that it sounds like a
broken record. The bottom line is that whether you like it or
not, whether you want to do it or not, you're already in marketing!
For better or worse. It is a fact of life. If you want to survive
you had better learn what to do and how. This month, we’ll hear from George
Zeeks, our Internet marketing instructor, who will get you started on stabilizing or
increasing your car count.
Effective Discipline Without the Pain
Why is it that building the right staff and keeping them is so
difficult for many business owners? We all know that one of
the key elements to a smooth running and profitable shop is
getting the team members to follow the same script. Talking
to shop owners over the years, it has become obvious that
the three biggest problems to maintaining discipline effectively
are on-time attendance, smoking in the shop and
excessive cell phone use. Holding people accountable for
following the rules is one of the most challenging things a
shop owner must do.
Eating the Elephant
We have a way you can leave loose ends behind. One of our
senior coaches, Brian Hunnicutt, has an easy and fast technique
for implementing change called, "Eating the Elephant
with a Notebook," otherwise called the Notebook Technique.
This simple technique requires the massive
investment of a spiral-bound notebook
for each employee, one for yourself
and one for the shop in general.
After acquiring the notebooks, take
them and walk your entire shop, starting
from a street view, through the parking lot
and front door path that a customer would
take, through the front counter, waiting
area, bathrooms, office area and entire
shop.
Shop Owner Secrets to Achievement
I have been blessed to have been able to hang out with some
of the most successful shop owners in North America over a
40-year work history in the automotive repair industry. It isn't
one thing, but about 15 things a successful shop owner has
to do in concert to truly have the most successful shop in any
given market and to have enough free time to enjoy life. I won't
bore you with the 15 things, but the most important one is to
have a definite purpose in life and the power to achieve it. If
you are reading this article, you made it through 2010. Some
of you may have made a few New Year's resolutions for 2011.
2010 Choosing the Lane to Successful Shop Culture
Like many of you, I started in the automotive industry at the
ripe age of 21. Life seemed so simple and a heck of a lot of
fun. I had just flunked out of my third college when my dad
asked me if I thought street racing could be a career. You see,
I talked my dad into getting my mom a 1969 COPO Camaro
with GM’s 427 cubic-inch iron block coupled to an automatic,
which had a lot to do with my lack of interest in higher education.
Then I temporarily lost my license doing something stupid,
and began drag racing in Super Stock against the likes
of Ronnie Sox, whose HemiCuda would blow us away on any
given day. I remember my dad saying, “Do something you
have passion for,” so I applied to Sun Electric, because I liked
their tachometers. Remarkably, they hired me!
Don’t Let Discounts Make Your Shop D.O.A.
Is discounting killing your business? Yes! Now, I know what
you’re saying: Discounting helps create new customers and
increase sales. But that is not always true. I do agree that
discounting a service as an acquisition tool might help you
attract new customers. But what type of customer did you just
attract? And can you retain that customer for future visits? The
answer to those questions depends on the efforts and passion
of your service writer. And on the sales side, did you generate
enough in sales to make the discount worth doing?
Making Friends With the Shop Operations Mirror
One of our senior coaches, Brian Canning, told me there is
no doubt that in writing this we are going to upset many of
you. But if we can get you to take a close look at your shop
operation, I think a little of your wrath is well worth my effort.
I will apologize in advance to those very rare shops that are
doing the things they should be. But for many of you, I am
truthfully hoping that the truth hurts enough to get you to
act and to correct what is going on in your shop, because
that will put you in the best possible position to thrive in this
challenging market.
"Cowboy Up" and Rope in Your Shop
Believe me when I tell you that when I first meet a shop
owner (or service manager), most are very proud of being
a businessman or woman and happy to tell me about their
shop. They tell me how long they have been in business, how
many bays they have, how many techs work there and so on.
However, there is always this little something in their voice
that says, “I want my business back!”
Hitting the Car Count Bull’s-eye
Most shop owners have a pretty good idea of how many cars it
takes each day to maximize their profit. Too much or not enough
car count can affect bottom-line profit daily. If you would keep
what we at ATI call your “win number” of cars in your bays,
every day your profits would soar. But how do you do that consistently?
Senior Coach George Zeeks had one explanation.
Planning for Success a Step at a Time
I want to take you on a trip to the happy ending of your day-to-
day hard work in your business. Matt Winslow, our director
of seminar development, has worked with our coaching staff
to present the overall system we use for actually helping you
plan your retirement. If you were to spend a day with Matt, it
would go something like this.
Riding the Fine Line Between Shop and Home Life
Helping shop owners do the balancing act of driving profits
at work and taking dreams home is part of our mission. The
challenge is there is no such thing as work-home balance.
In real life, you are either heading for a crisis or coming out
of one. Most of us keep pedaling the bike even when we
know we are off-balance. When we lean too far to the left, by
making too many withdrawals, we try to balance by making
deposits. We fall off the bike when we lean too far to either the
family or business side. And how would that look?
Sizing Up Your Shop With Surveys
How are the tire and service shops in North America doing? In
light of the economic downturn, you would expect the answer
to be bad, awful or terrible. While there are areas that have
been hit much harder than others, there also are many shop
owners holding their own and a few having record years.
Many shop owners got scared and were forced to make tough
decisions they wouldn’t make before the “Great Recession.”
Catch the Wave of the Present
If you want to increase car count by working on the relationships
you have with your customers, then pay close attention
to what our best clients are doing about it. Our 20 Mastermind
members are made up of the best of the best from thousands of
our shop owner clients. Any time the majority of this group gets
excited about a marketing concept, you can be sure it is a winner.
In this article, Senior Coach George Zeeks this month will
teach you how to get started in the world of social marketing.
2009 If you don’t care about customers, do you think your employees will?
Many years ago, Dale Carnegie wrote a book that became
famous by helping us really care about other people. The
book taught us the basics to really listening and what not to
say if you wanted to win friends. Shop owners, in an effort to
make real money, must focus as much on the customer as
the car today. As a matter of fact, many times the customer is
more broken than the car.
Why Some People Always Make Money in the Service Business
Many of us have been surprised by the way this recession
has affected our businesses. Who would have thought OEMs
would go bankrupt and so many new car dealers would close
their doors? Then for every independent shop we see experiencing
increases in sales due to lack of new car sales, there
is a shop located in a challenging area of high unemployment
experiencing decreases in sales.
What Happened to the Dream?
Most of us who join the automotive industry at a young age
end up spending our entire lives in the business. It just gets
in your blood! Shop owners and technicians usually have a
dream of achievement that is different for all of us. Some want
to be the best, some want to be rich and others just want to be
comfortable while helping others. All of these dreams require
continuing education by investing in yourself, whether you
are a tech or a shop owner.
What Happened to the Dream?
Most of us who join the automotive industry at a young age
end up spending our entire lives in the business. It just gets
in your blood! Shop owners and technicians usually have a
dream of achievement that is different for all of us. Some want
to be the best, some want to be rich and others just want to be
comfortable while helping others. All of these dreams require
continuing education by investing in yourself, whether you
are a tech or a shop owner.
Toxic Employees
Over the past four decades, my passion has been helping
shop owners grow. I believe profit matters, and trying
to make 20 percent to 30 percent cash profit is a necessity
not a luxury. Most shop owners get in trouble when three
problems appear at the same time. Most of us do not get in
trouble with one problem, but with a combination of multiple
problems. A toxic employee is defined as one that pollutes
the entire business and creates multiple problems in
the blink of an eye. These problems can be very expensive
to correct, and without a fat savings account you may not be
even capable of proving your innocence.
The Banana Theory: How Customers Spoil
Many fishing professionals feel bananas bring bad luck or a
chemical imbalance to the fun times. I overheard one of our
senior coaches, George Zeeks, relate The Banana Theory to
spoiling our customers.
The Six Ways to Stay a Top Shop
There are many shops in North America that are nominated
for top shop awards, and many that go unmentioned but
certainly not unnoticed. I would define a top shop as one in
which it has become famous in the area by quality, integrity,
relationships and differentiation from its competitors. Its sales
would depend on the size of the market they are located in
and could range from $500,000 to $3 million annually.
Survive and Attain Success in a Bad Economy
This month I wanted you to hear from our head instructor,
Matt Winslow, who has been in the trenches giving ATI oneday
workshops across the U.S. and Canada.
An Economic Forecast
Since we all know the joke about opinions, I have one like
everyone else, and I’d like to share my opinion on the economy
in 2009 with you. I have been through a few tough times
since I joined the automotive brotherhood in 1971.
2008 The Economy Is Not The Boogeyman In Your Closet
Today I will let you decide if we are in a recession, examine
where we currently stand on your recession plan and decide
what we are going to do about it. I received a great e-mail
from a shop owner upset that one of our earlier articles might
be blaming you guys for the recession. Although I do not feel
that way, perception is reality, so I want to certainly apologize if
any of you felt the same way before we get started.
19 Ways To Stabilize Your Car Count
I want to share with you 19 ways to stabilize your car count.
Look at this as a quick review without taking the time to dig very
deep into each strategy. My objective is to help you take an
inventory of what you are doing in your shop and focus on the
strategies you are not currently using in your business that can
help you stabilize your daily car count. This is accomplished by
doing everything you can to retain customers and get them to
come back even in a recession and in a time of reliable cars.
Turning $4/Gallon Gas Prices into Continued Profits
I know a lot of you have been hearing the customers complain
and grieve about today’s economy, how the cost of everything
is increasing and that it leaves little or no money to put into
their automobiles. Every time they have to go to the gas station
or just drive by and see the prices posted, they are
reminded of it. That, combined with just turning on the TV, is
what fuels their woes.
You, Perhaps, and Not The Economy
Like many of you, I have had the challenge of working through
many recessions in the automotive industry. Historically, it has
always been good for us, as we watch the repair business go
up as car sales go down. This recession has been more challenging
as gas prices reduce mileage, which certainly has
affected tire sales for most of the tire industry.
Will You Please Answer The Cash Register?
One of the most common complaints from shop owners is the
need for more customers and more cars. Shop owners spend
their hard earned money on a multitude of marketing ideas,
but they forget to focus on the most important part of the
marketing process.
Working Harder And Enjoying It Less?
You have successfully built a wonderful business with a great
reputation. Everyone is proud of your accomplishments.Your
family is very appreciative of the many hours it has taken you
to build your business.Your customers love you for taking
care of the safety of their families.Your associates have looked
up to you for years and, for the most part, will follow you into
any battle.
Finding the Needle In A Field Of Needles
Everything is going great. The phone is ringing, we have customers
coming through the door wanting work done on their
cars and all is right with the world. Except, we don’t have
enough technicians or maybe the right technician for the job.
The Care Feeding of Your Manager
In consulting with automotive shops across the country, I
have talked to a lot of owners and one thing is very clear:
when it comes to creating an environment for managers and
other staff to flourish, most owners just don’t get it.We, as an
industry, have not stepped up to the idea that managing an
automotive shop is a profession.
Maintenance: A Catch-and-Release Business
In December, we discussed how women have become the No.
1 buyer of maintenance. So this month, let’s focus on our sales
process skills. I’ve co-developed the Relationship Marketing
System (RMS) to help capture the estimated $70 billion in
untapped maintenance.
2007 Selling Maintenance to Women
Last year, I was invited to speak to 1,100 of the industry’s
finest at the AAIA Town Hall Meeting at SEMA. The subject
was “Why are we closing the hood on the $70 billion in
untapped maintenance?” There are many issues preventing
the flow of cash in our pockets; however, let’s first explore who
is purchasing this extremely important service: women. Most
men believe since they sleep with women, once in a while,
they are mental giants when it comes to communicating with
them. Our trainers have discovered this couldn’t be farther
from the truth.
How to Increase Average Repair Order
If the most difficult task in the automotive service world is
getting customers to actually hop in the car and make that
long journey into our shops, many would say that increasing
the amount of the average repair order (ARO) would be second.
Though it requires a combination of effective procedures
and strong leadership, this process need not be as
daunting as many would make it.
How to Increase Shop Productivity
I am certain most of you have read articles on how to
increase shop productivity — and if tested, would ace the
test. The real challenge is achieving 100 percent productivity
during the majority of your year. My goal in this article is to
remind you of something you used to do or help you add the
missing ingredient that could help you net 20 percent to 30
percent cash profits.
Is Your Labor Apple Going Bad?
Many times during the course of a busy day I’ve started to eat
lunch or a snack and I get interrupted. Have you ever taken a
couple bites from an apple and have to put it down to take
care of something? The problem is that when you come back,
it has already started to turn brown and just doesn’t look as
good as it did.
Making Parts Profitable
Last month, we talked about netting 20 percent to 30 percent
profit, and I shared a model that some shop owners have been
able to accomplish. In that model, it required that your parts
costs be 18.5 percent of your total sales. In order to accomplish
this, you must hold at least 53 percent profit on your
entire parts pool.
Let The Journey Begin
Most of us have encountered low points in our life when we
thought there was no light at the end of the tunnel. Some of us put
our heads down and fought to survive when many a mortal
would have said we had no chance.You may have been that person
and rose to become the top shop owner in your market.You
may be presently fighting the battle to take you and your family
to the Promised Land. You know - the land where all your dreams
are fulfilled and your bank accounts are full of profits.
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