A whole new world of auto service is waiting right outside your door.
So where have you been getting your business lately? Collisions, obviously, along with a combination of smaller jobs motorists sometimes opt for—minor paint and dent repair, custom work and detailing. Simple question, right? So why even ask it?
One big reason—it’s the single most basic and, therefore, most important business question you should ask yourself every day. Unfortunately, if you’re like too many other operators, your answers aren’t imaginative or open-minded enough. You could end up focusing on serious hits and other big-ticket repairs while overlooking a whole world of vehicle services that could draw fresh, much-needed revenue into your shop.
Which brings us to today’s lesson—introducing the wide world of fleet repair. You’ve seen cars, trucks, buses and an extensive array of business vehicles everywhere, but are they entering your shop, the place where you need them most? Worried you’re not up to the task? Rest your fears. Most likely, you already have on hand the tools, personnel and expertise to take advantage of this profitable field. All that’s left is acquiring a proper understanding of what fleet work involves.
Q. What kinds of businesses need fleet services? What types of vehicles would I be repairing?
Fleet work involves repairing vehicles owned by businesses—vehicles used for deliveries, transportation, service operations, etc., along with vehicles sold as products. The following list outlines just a few business types that typically employ automotive fleets:
- Auto dealerships
- Car rental firms
- Delivery companies
- Repair services, such as appliance maintenance or plumbing
- Taxi companies
- Cleaning services
- Limousine rentals
- Trucking firms
- Bus companies
- Real estate and other sales agencies
Now throw in government work: schools, libraries, post offices, police and fire departments, and other federal, state and local agencies.
Every vehicle used by a business or agency is a potential source of revenue for you. They all require repairs and they get into accidents. They also need their exteriors and interiors kept in proper shape, often even more so than personal use vehicles because they frequently must appeal to the public or serve as rolling advertisements for their businesses.
In case you’re wondering just how much fleet work is potentially available to you, take a quick survey. Drive through the commercial section of your community and note all the working vehicles running to and from business calls along with the vehicles sitting in company or government parking lots waiting to be used or sold. Don’t be surprised if you get tired of counting long before you run out of vehicles to count. That’s just how much work is available.
Q. What kinds of services would I provide?
You’ll do much the same work you do now, with the possible exception of performing a higher percentage of paint and dent repair, detailing, decal removal and replacement, and glasswork. Indeed, when it comes time to market your fleet services, keep these smaller services in mind. They add up quickly, especially if you can get customers scheduled for them on a regular basis.
Q. Some of these vehicles, for example tractor-trailer rigs, are a lot bigger than what I’m used to dealing with. Will I need any special tools or equipment?
You should be fine with the tools and equipment you already own, according to Ryan Buchberger, manager of Perfection Auto Body in Burlington, Wis., and Oscar Herrera, manager of Star Auto Haus Collision Center in El Monte, Calif. Buchberger’s shop has been servicing tractor-trailers for 10 years, while Herrera’s shop works on buses. Buchberger notes, “It’s the same basic type of work as with cars. You’re fixing fiberglass or aluminum panels. There’s really not that much to it.”
Herrera adds, “The work is very similar to what we usually do for smaller vehicles. The panels are just larger.”
The biggest challenge here is finding enough work space for these vehicles. Some shops don’t have bays large enough to fit tractor-trailers nor can they afford to allocate valuable work space to a single truck or bus when that same space could be devoted to more profitable work. Generally speaking, larger vehicles demand a special commitment. For example, because fleet work on big rigs makes up almost 35 percent of Precision’s business, Buchberger’s company added a second location with extra-large service bays dedicated to servicing trucks. Russell Pool, manager of Bell’s Auto World in Peducah, Ky., notes his shop services big rigs for the same reason. Bell’s has an extra-large bay area to accommodate them.
Pool notes another consideration shops should take into account when servicing heavy work vehicles—specialty materials. His shop applies special industrial coatings on big rigs. “We use epoxy primers because durability is an issue,” he says.
Herrera notes acquiring specialty parts also can be an issue. Large panels and other parts often have to be specially ordered or built. You’ll need to know where to get these parts and be able to correlate their delivery with the time scheduled for the repair work, often a very difficult task.
Q. What will be the impact on my current business?
The most difficult challenge in this area typically involves scheduling—giving fleet vehicles the preferential treatment their owners often demand without negatively affecting cycle time for the rest of your work. “They want their vehicles back today,” Buchberger says of fleet customers. “You give them special consideration.”
Keep in mind many businesses often have no replacements for their vehicles, meaning they can’t get their work done until you do. For these customers, repair time translates into lost time and lost money. Limiting lost time is their first priority. This same notion applies even to vehicles being sold at a car dealership. The time a vehicle spends off the sales lot receiving scratch and dent repairs is lost time because the vehicle isn’t being offered to customers.
Shops, therefore, take unique steps to deal with the demands of fleet work. For example, Precision meets aggressive repair deadlines by keeping its truck shop open seven days a week with two technicians on duty. You might find yourself giving fleet customers similar considerations. Before taking on fleet work or in the early stages of adding these services, begin looking at ways to reorganize your business to cope with potential schedule conflicts.
One option to consider is going mobile. Locate a good work vehicle or trailer, load it up with tools and supplies and take your business (detailing, decal replacement, minor repairs, etc.) to your customers. Mobile services provide an attractive option to your customers because time spent delivering a vehicle to you is often lost time, and therefore, lost revenue. Mobile services also provide other important benefits, such as freeing up valuable shop space. In addition, a work vehicle or trailer carrying your shop’s name serves as mobile advertising, letting you market your services as you perform them.
Q. How should I handle billing? What should I charge?
You’ll bill fleet customers the same way you bill all your work. Prepare an invoice and get the customer to sign off on the work. In other cases and especially for large accounts, consider getting a signed contract specifying labor and storage rates, along with a payment schedule. Don’t be surprised, however, if some businesses balk at signing a contract. “A lot of businesses just aren’t used to dealing this way with shops,” says Pool. In these cases, maintain the account by providing agreed-upon services in the best possible manner, he advises.
As far as charges, these can differ from one customer to the next. Calculate what you need to charge for this work both to compete with other shops and make a suitable profit. Herrera charges the same labor rate for buses as he does for other vehicles, but says some shops often charge more. Pool reports his shop sometimes offers discounts on labor and materials to customers with large fleets, for example 10 to 15 vans or trucks, because profits are made up by volume.
Q. How do I get fleet work?
The most significant difference between fleet work and usual shop business is how the two are acquired. Namely, fleet work typically doesn’t just arrive at your door. You must pursue it.
This means doing your homework and locating prospective customers in your business area and contacting them. Area Chambers of Commerce along with other business and civic groups offer terrific opportunities to network and advertise your services. Another path to pursue is finding out which mechanical shops in your area offer fleet services. Consider partnering with one of these shops to offer a complete range of auto services to fleet customers. Or ask these shops to refer their body work customers to you. In return, you can refer mechanical work to them.
Looking for government work? Keep your eyes open for public announcements of bidding contracts. Contact your local school district and ask for information on transportation services they use.
Once you know to whom you want to sell, your next step is developing an effective sales and marketing strategy. Pool’s shop sends out faxes, letters and does newspaper advertising. You’ll need to similarly market your services. The difficult chore here is convincing businesses to go with your shop over others they’re used to dealing with or to invest in services (for example, detailing) they’ve typically ignored.
Persuading them is a bottom line proposition: You have to demonstrate how your services benefit their business. This means convincing prospective customers that your shop will (A) make them money, (B) save them money and/or (C) give them more for their money.
Quick tip: Don’t give up if you’re unable to win over new clients on the first attempt. What matters most is that prospective customers know your name and know you want their business. These same companies could turn to you for a variety of work in the future. Keep marketing to them.
Q. Once I get some fleet accounts, what’s the best way to maintain them? Are there any differences between fleet customers and my usual customers?
Convincing a fleet customer to take a chance on your services is just the first step. Fulfilling your end of the deal is the clincher. Pool states that early on some of his customers are reluctant to invest in fleet services. “They change their minds when they see the quality of work they get,” he says. “A great job really sells the service to them.”
Quality, however, is just one part of the equation. In some cases, satisfying certain customers may force you to reconsider your notion of quality. “Some customers care more about just getting their vehicles back and in service than they do about receiving the best possible work,” says Pool. Quality or cycle time—how do you decide? Pool suggests getting to know your customers and their work requirements on an individual basis. Keep in mind fleet accounts frequently demand constant communication between repairer and customer.
Final word: The right choice for you?
Space requirements. Allocating resources. Searching for customers. Marketing. Making concessions between quality and cycle time. Fleet work obviously isn’t for every shop, but for many it’s an important profit center. Before you take the plunge, consider the following five rules of fleet work:
- Know your business—Examine your shop and decide what services you can offer. If you have large bays capable of accommodating trucks and employees willing to learn to work on them, take a chance. If, on the other hand, you’re already working near capacity or you could end up stretching your employee resources too thin, look for a different revenue stream.
- Start slowly and build—If fleet work is new territory, slowly add it to your current workload. Learn the business and learn about your customers. A number of the shops ABRN spoke with have performed fleet work for 10 years or more. They’re still expanding this part of their business and experimenting with new ways to attract new customers.
- Do the math—Deciding what you can charge for fleet work while remaining competitive and profitable can be quite a chore. Keep a close eye on your fleet accounts along with the market for these services in your business locale. Knowing what you need to charge to make this work worthwhile for your shop is imperative when negotiating costs with potential customers.
- Keep your tools and procedures up to date—Efficiency created by using the best tools and methods makes a big difference in cycle time, a prime factor to consider when balancing fleet work with the rest of your business. Also, being able to show prospective customers that you have the most current, time saving technology can mean the difference between landing a big client and going back to your shop disappointed.
- Be persistent—Think of acquiring fleet work as netting a record-setting largemouth bass at your fishing spot. Unless you’re extremely lucky, casting once won’t snag this fish. Catching it involves patience, timing and the right bait. And when you do get it hooked, you’ll want to be extra careful to get it in the boat.
If you still aren’t convinced providing fleet services is worth the effort, consider one other bonus. The business customers you service also have their own personal vehicles. If you provide great business services, they’ll remember you later when they need work—giving you one more revenue stream to explore.
