lowellnigoff
Forum Replies Created
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I have been using Moe’s for years Lowell’s Bluegrass Automotive then for my son’s business, Brian’s Bluegrass automotive and find him highly reliable. When you call, you talk to the owner.
https://www.yelp.com/biz/moes-direct-marketing-north-highlandsLowell
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Please don’t take this wrong. If you think you might need this protection you might take a closer look at the operation of your shop.
In 29 years in business (the last 13 averaged over $1,000,000 in sales) I could count the number of “Bad” customers on one hand. That isn’t to say they didn’t walk in the door.
Having a customer sign their rights away doesn’t work and to attempt it would put up red flags to potential good customers.
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I also agree with Tom. I don’t think you have to make a profit on every job line on your invoice. Like or not there at lost leaders, those items where consumers a more cost conscience.Also, what percentage of your sales are oil change service (or whatever you want to call it).If you can justify dumping 5-10% of your gross into advertising you can surely cut your oil change price to get them and keep them coming in.
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In allotting time, testing and repair should be handled the same.
If you assigned a vehicle to a tech saying this car it is hesitating and he came back to you in a short time and said I can fix car and it will take 1 1/2 hours. The first thing you would ask if what are you going to do?In diagnosing/testing the tech should be clear what he is going to do.Tech: “I am going to test drive the car to confirm problem and possibly suggest fix next step. I will need .25 to .5 hours.” Let’s say the tech returns and says “The vehicle is hesitating because the transmission is slipping. As I had time left I check and found the transmission low on fluid. I topped off and drove. Hesitating is no longer present. It is fixed. .5 hours + 2 quarts fluid.”At that time the tech might recommend more time to determine (test/diagnose) where the fluid went. Tech: I will need .5 hours additional to raise the car and Inspect the transmission for leaks/loss.” Based on what the tech finds he may be able to suggest a fix for the leak or the need for additional time for testing.A tech should be specific on what he will actually be doing when requesting time for test/diagnosing.Former shop owner (29 years)Lowell Nigoff -
I learned about classical and operant conditioning while getting my degree in psychology many years ago. Beside the time clock and office meeting how might one use classical conditioning in the automotive service industry? Lowell Nigoff, Brian’s Bluegrass Automotive, Lexington, KY
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I realize this might be a little slow in commenting but it is most important to measure and look for increases or decreases. The method one uses to measure is not as important.
Lowell
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In the past I have written personal thank you notes to those recommending our shop. Of course there is the need to poll all new customers about where they heard about you.
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When I opened my shop in 1979 I had a personal mantra that “I would rather be working for $18 an hour then standing around for $24.”
Tom, you are right on about the $100 labor “ceiling”.
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Greetings Tom,
I am not sure I understand. Are you saying an owner should be netting a minimum of 20% and as high as 25 to 35%?
Lowell Nigoff
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IMO, 95% of your marketing should be done by your own company. For example if you follow your new customer source, you will, more then likely, find that the majority of your new customers come from referrals. Getting your customers to refer your shop to others is the trick. Lowell Nigoff
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We would ask the customer what brought them in. Many time though a customer might say the internet, the phone book, etc. In these instances we would ask the for more details like why did you go to the internet…phone book. Many times they would answer that Joe Blow mentioned he is a customer and I looked in the PB or internet to find your number. We would track the responses and be able to allocate our marketing dollars more wisely.
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You cannot take an average to the bank. For 30+ years we kept our lube, oil and filter changes below $30, most of the time at $19.95. Our costs were 2-3 times our charges for this service. We considered this to be, as called in marketing, a lost leader. Low priced lube service also served to keep our customers from going to other places. Because the loss of revenue is for marketing, you can charge the real cost and markup to your marketing account.
As to people calling you about dealer quotes, what about all the people who are not calling you and getting the work (needed or not) done at the dealer.
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Techs usually do not like to do oil changes. We gave a bonus for each oil change in the way of “Tool Bucks”. These were printed, with my picture in the center, looking like a dollar bill. These could be exchanged on the tool truck and I would periodically reimburse the tool man. With a little imagination you can expense these making a win win for all. Although they still didn’t love to do oil changes, getting a tool buck lowered the resistance. <span style="font-size:12.0pt;
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