Closing the sale

June 26, 2014
All is takes is some training and customer focus to turn every estimate into a repair order.

All of us are consumers. In an average day, we are bombarded by endless advertising, which gives us reasons why one particular product is better than another. Radio, TV, the Internet, social media, newspapers — everywhere we turn, someone is trying to sell us something.

Sales are a huge part of every industry, including ours.

Also in every industry are choices and a great deal of competition. Some items or services are easy to sell because they are something consumers may need or want every day — for example, Coca Cola.

In Coke’s market, there are many choices: Pepsi, RC Cola, Tab, Diet Rite, and many more. Why buy Coke over other brands? It tastes good, but much of the reason consumers buy it is based on emotion and how the advertisements make them feel. 

Can we use emotion to help sell our services? Absolutely! Services we offer as collision repairers are needed less often than everyday items like Coke. Therefore, it is extremely important that when a customer comes into your shop needing repairs, you do everything possible to capture the sale. Unfortunately, most of us don't have get taught how to do that. We generally provide the customer with the requested estimate, and hope they pick our shop over the competition.

However, hoping for success won’t get you very far. So let’s look at some tactics that will help you close the sale. Always keep in mind what you look for as a buyer, and try to provide those same things to your potential customers.

Measure and track your success
You cannot successfully improve unless you track and measure your performance. Think about a runner — they time themselves during a run. The next time they run, the idea is to improve on that original time by exercising more, losing weight, etc. The only way they can tell if they are getting better is to measure their performance and try to improve on it. 

You need to do this with regard to your sales. Track opportunities by comparing the number of estimates you write in a given time period against the number of those estimates that are converted into repair orders.

If you use a management system, you should have the ability to track this now, but if you don't, use a spreadsheet to keep track of the numbers. You have to consider every estimate as an opportunity.

Simplistically, let’s say you wrote 10 estimates in one week. Of those 10, four scheduled with your shop to do the work. That is a 40 percent capture rate. That number isn't very good in any industry. By looking at real numbers, it’s easy to see that you might need to improve. Strive for a 100 percent capture ratio, but feel good doing 75 percent to 80 percent. Those are attainable numbers and should net your shop a good work volume.

Everyone believes that their capture ratio is higher than it really is. The truth will probably shock you. Just by knowing you are capturing less than you thought, you will do better. It’s human nature.

These numbers should be run often, using longer date ranges, to include jobs that may not sell right away. Using a greater date range will provide a more accurate number. Set a goal once you see where your shop really is, and work toward attaining it.

Understand customers needs.
Daily, a customer will come into your shop and say, “I need an estimate.” Your potential customer doesn't need an estimate; they need to get their damaged car repaired. Giving them an estimate is part of it, but just a part.

Your job is to get the keys, sell the job, fix the car, however you want to say it, not provide estimates!

The customer knows they need to get their car fixed, but the insurance company may have told them they need estimates. Your job is to educate the consumer about their situation, and explain how you can help them resolve it.

Think of our industry in comparison to others — I look at the restaurant business. Sometimes a great-tasting sandwich or burger is OK, for an every day meal. But when you want something special, (kind of like the collision shop visit, once in a while) You want to go to the nicest place in town with unbelievable service. Think about how you feel when you are there. You are important and treated like royalty. It’s a little out of the way, and maybe a bit pricey, but wow, it’s just great to go there.

Now, lets leave this wonderful picture and think about the reality of your shop. Is it the cleanest place in town? Do you treat your customers like royalty? Do they feel great just walking in your door?

Probably not. The atmosphere that you provide your customers is one of your greatest sales tools. You don't have to have the biggest or most modern place in the world, but it can easily be the cleanest and most comfortable. You can be the most gracious host, and greet all of your guests with a smile and a warm welcome. Make them feel good to be there, that you are there to solve a problem. You are the solution they are looking for.

In general, anyone looking for a collision repair, who walks into your shop believes you can do a quality repair. They wouldn't even come in if they didn't already think that. No one believes that you are going to do a poor job repairing your vehicle. Quality isn't as important as the emotional part of the sale. Obviously, all of us know how important quality is, so it cannot be discounted; however, my assumption is that if you are reading this, your shop already focuses on quality work and performs it as a matter of routine.

Does your favorite restaurant have dirty floors, junk laying all over, dirty menus piled in the corner and poorly trained people waiting on you?

I doubt it. But it is entirely possible your shop has these things, and maybe worse. Look at your facility when you go in the morning after reading this. Look around with your eyes wide open. Really critique what you see. Would you, as a consumer, feel comfortable walking into your facility and trusting whoever waits on you with your brand new car?

If the answer is no, then you have to make some changes in order to grow in this increasingly competitive marketplace. I am not advocating renovating your whole place and going into huge debt to create a nicer shop. Your building and budget will certainly dictate what you can do, but cleaning and getting more organized costs very little, and can net great results.

I also believe you have to make your facility kid and women friendly. Auto repair has traditionally been an area ruled by men, but this has changed dramatically over the years. Women have to feel comfortable coming into your shop, especially with kids in tow. Many places have an area dedicated to kids, much like doctors offices have had for years. This is easy to do, and doesn't have to be expensive. Chalkboards and dry erase boards are fun for kids, and easy to maintain.

Use your imagination and have fun with this. Set up a small area for kids, and moms will love it.

Take some classes
It is really important for you and all of your staff to take some sales training classes. Estimators in a modern shop are not really estimators, they are sales people with technical ability. The position has always been geared towards sales, but is now even more so. Believe me, the big groups in your area already know this, and are working on it daily. In order for you to compete on a more even field, you have to get on board.

Every large paint manufacturer offers classes in closing sales, and they are often free. Talk with your paint company rep to see what they offer. I think you will be pleasantly surprised. I have been through many of these offerings, and they are really quite good, and usually are only one or two nights of classes.

You can also get training through organizations like Dale Carnegie in just about any area of the country. I know of several class offerings that are outstanding for any potential sales person.

The worst thing you can do is nothing. The sooner you take action, the sooner you will become better. Always keep in mind how you as a consumer want to be treated. If you do so, and treat your customers that same way, you cannot fail.

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