The most important relationship that a shop owner must achieve today is the one with the shop’s clientele. In this two part series, I want to discuss the client education issue and cover a couple of examples of information that we, as professionals, must pass on. As you know, in examining the relationships you have now with your best customer/clients, a properly informed client is a joy to do business with.
As the shop’s operating costs continue to increase, as the shortage of competent people within our industry continues to grow, as the technology of the vehicle continues to expand, as more high tech equipment continues to be required, it is imperative that shop management, and everyone within our industry, get on with the important job of finally educating their clients, and the public.
Too many shop owners want to ignore this task assuming the client doesn’t want to know and the only thing the client really wants to do is leave the shop happy after the work has been completed. Well, these shop owners are right and they are wrong. They are right in that the client should leave the shop happy, but to say the client doesn’t want to know, or understand, what makes up the costs to properly maintain his/her vehicle today is very naive on behalf of the shop owner. Consider this one important point: You think about your business in gross dollar sales but the client pays for his/her services with you in “after-tax” dollars. That $800 job you just quoted may mean the client has to earn $1,400 in gross wages to pay you. Make sure you are cognoscente of that in your discussions with them.
The client, the consumer, is not stupid, but they are uninformed as to “what” is going on within our industry, and all of us have done a great job keeping the real issues a secret from them. We all missed our life calling in this industry. We should have all been secret agents, because we are so good at keeping information to ourselves and not allowing it to get leaked out.
Consider making up professional pamphlets to attach to the R/O and/or an educational piece for your large monitor in the client waiting area, or “Facts about our Industry” on your Shop Facebook page in a concise format that informs the client of issues affecting them, such as the following:
• Report newspaper or magazine articles where they talk about the shortage of a skilled workforce in the automotive industry (supply and demand in basic economics means that with a high demand in skills required, and an acute shortage in supply, the price goes up).
• List the type (pictures) and costs of standard equipment required today to maintain the vehicle properly, and point out the fact that, in many cases, specific equipment is required for specific vehicle models.
• Break down, in percentage terms, the makeup of a dollar that a client pays to the shop including cost of goods sold, wages, legislated taxes, shop operating costs, and of course, a profit so the shop can continue to serve them well.
• The need for technicians to average 100 hours a year now in technical training courses to stay on top of their profession
Illustrating the Point
When you start to educate your customer/client, you are truly communicating. When you communicate clearly, trust begins to build as understanding starts to take place.
Consider a wall mounted board, professionally designed with your business logo customized to what is applicable to your business, but perhaps containing some of the following information under the heading “What is included in your vehicle maintenance and service rate.”
• To meet increased competitive salaries as there is a tremendous shortage of competent maintenance and diagnostic technicians within this industry.
• To provide competitive compensation packages including comprehensive Insurance plans, pension plans, and proper vacation packages
• To provide tool allowance assistance packages as all competent Technicians own their own tools and toolboxes. The average individual competent technician owns in excess of $60,000 worth of tools that must be upgraded on a continuous basis.
• To meet increased government legislated employer state and federal payroll taxes which are over and above the basic hourly wage of the technician.
• To ensure all environmentally friendly policies for disposal of shop material are embraced and adhered to.
• To meet increased high technology equipment requirements to service your vehicle properly including hand held scanners and other comprehensive diagnostic equipment, on-going computer equipment with continuous software upgrades and vehicle technical information Internet subscriptions.
• To ensure comprehensive, on-going, employee and management training is maintained year round in order to serve you efficiently and professionally
• To allow for the on-going process of modernizing the shop facilities in order to hold all the high-tech equipment required today to service a modern vehicle.
• To provide a professional and safe work environment for our staff including proper air ex-changers to eliminate poisonous fumes, effective shop lighting, and proper climate control.
This is a simple example of what can be done internally at your shop. You are starting the process of educating your clientele. This is one of the most important investments you can make in business today, and it must be on-going.
Slow down and clearly examine your processes of how you communicate to your customer/client base on these real issues.
In part two of this two part series we will continue with another piece of important information that the public and your clients must understand and that is the breakdown of how a dollar is spent in today’s modern shop.
Consider that to be successful in this business today, you must accept all challenges that come your way. You can’t just accept the ones you like. Let’s get on with the process of educating all shop customers and clientele in order to earn their trust and build a great long-term relationship.
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About the Author
Bob Greenwood
Robert (Bob) Greenwood, AMAM (Accredited Master Automotive Manager) was the President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry utilizing the Internet environment. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada in Georgian College located in Barrie, Ontario, Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in Colleyville, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation. The Automotive Management Institute’s Accredited Automotive Manager designation is the first business management accreditation exclusively for the automotive service professional. To date, AMI various programs have attracted more than 212,000 enrolments throughout North America.
Greenwood died on Sept. 9 in Surrey, British Columbia, Canada, from a heart attack. He was a regular contributor to Motor Age magazine and will be greatly missed. See some of his recent work here:
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