Rainbows, Sunshine and Lollipops?

I have been coaching for 24 years and every year, I dread the winter because there appears to be a natural lull in Automotive Service and Repair for the industry in general that owners forget about and instead feel that the sky is falling.

And, I have been in the industry for 44 years now and the industry (and most shops in it) have survived every winter, usually improving on last year’s results. I have also seen the industry survive: the interest rates and gas crisis of the late 70’s, Enron, the Banking Crisis, the Housing Crisis, 9/11, the election of the Democrats, the election of the Republicans, Covid, etc. Yet, the industry continues to improve and grow every year.

I have been at almost every Industry Event/Function where high level Executives from the parts companies, the SMS companies, the dealerships, the marketing companies have spoken about the future of the industry and every indication is that it will grow from 4% to as high as 7% in the upcoming few years. More cars are being made and sold, and they are staying on the road longer, so there are more repairs and maintenance to perform.

Every year, around the middle of January, I begin to hear shop owner after shop owner complain about the drop in car count and sales. Usually, when questioned a little more closely, the numbers are down for the yearly average but up for the specific month from the same month last year.

Recently, I have seen a statement that consumer confidence is at a 12-year low, and some coaches/consultants and shop owners are asking what they are going to do if their market stops fixing their vehicles because there is little confidence or money. Surprisingly, the Automotive Service and Repair Industry traditionally does better when consumer confidence is lower, but that has yet to stop coaches, owners and managers from finding a reason to fear the future and something to blame their results on.

Every business is cyclic, and the Automotive Service and Repair industry is a business. If you own a shop, you will have good times and bad times. You will have cars that kick your @$$ and clients that drive you crazy. You will have record sales in some months and poor sales in others. You will get a bad review. There are things you can do to reduce the bad times and increase the good times, but you cannot make it through this business without some struggle.

Here are some things you can do to reduce the lean times and increase the good:

1. Determine the type of clients that you want to work with and create a strong brand that delivers for those clients.

2. Set goals for the company and each team member and manage them.

3. Build a strong company culture. Recruit and hire people that will improve your culture and your deliverables.

a. Mission Statement

b. Vision Statement

c. Core Values

d. Hire the right people

e. Train and mentor, constantly

f. Get rid of cancer quickly

g. Meet regularly to get your people involved in solving problems and improving your product and productivity.

4. Have a marketing plan and set aside a minimum of 5% of your sales for Marketing.

a. Have a Great Website

b. SEO/SEM – (no it isn’t dead yet, despite what some influencers are trying to scare you with to buy their products)

c. Social media – build your presence

d. Prebooking Appointments - set your clients next appointments

e. Local Involvement – BNI, Chamber, Rotary, Schools, Local Sports, etc.

f. Have a great referral program that you talk about with every client. Ask every client for referrals – But don’t devalue or give away your product

g. C.R.M. – Client Retention Management

h. Review your marketing expenses, your results, your return on investment and adjust your plan regularly

i. And more...

5. Hire a marketing company after doing research and asking for referrals. (There is a proliferation of mediocre, or worse, marketing companies out there that deliver substandard results)

6. Become exceptional at answering your phones and listening to your potential clients and your clients.

7. Continuously and constantly work to improve your communication with teammates and clients.

8. Create clear expectations for your clients and deliver on them.

9. Deliver a superior product with superior customer service.

10. Save 3 months of operating capital when experiencing the good times.

11. Hire a coach because you don’t know what you don’t know

12. Build a consistent brand, a consistent product, and a strong team of people that believe in your company, your product, and your price.

13. Always show your most positive face to your team and to your customers. If you are going to have doubts, have them privately or have them with your coach.

14. We are the best, we will succeed, we always deliver the best results for our clients, there is no better place to have your vehicle serviced or repaired, there is no better place to work, and we will always do what is necessary to stay on top. These are the things that you and your team members need to be saying, believing and living.

Remember that the industry is cyclic. Strangely enough, as soon as the weather warms up shops get busier and for most of our clients set new records, and increase their sales, productivity and profits.

When times are down, continue to do the right things, continue to believe in your people and your product because this will lead to more good times.

Continue to lead and inspire your team no matter what time of year it is because this will lead to more success for everyone. More rainbows, sunshine and lollipops.