Well, I'm not going to lean on you again, so to speak. Well, at least about the subject of lean. Rather, I want to discuss why you might want to start offering mechanical services if you don't already, or add to them if you do. Additionally, I will throw out another idea later that accentuates the need to offer mechanical services. I should add that I am writing this for collision repairers who plan to be around in the next decade.
Frankly, this business isn't getting any easier. Obviously, the need for lean has arisen due to the challenges the industry faces. Waste is no longer an alternative. That aside, let's look at what's happening in this business. More vehicles are being totaled and taken out of the system. And with the lingering recession (will there be a double dip?), consumers have cancelled their insurance or raised their deductibles. A dent here or there doesn't concern them. (So as not to totally depress you, I'll save what the insurers are doing to you for another day.)
What does concern consumers is keeping their cars on the road. For those who have work, they need reliable transportation. They can only put off maintenance and repairs up to a point. Eventually, FRAM's old "you can pay me now or pay me later" slogan starts pounding in their heads knowing that when they pay later the cost will be greater.
The fact is that people are keeping their cars longer, now averaging 50 months as compared to last year's 45. As a result, the average vehicle age is more than 10 years, which means more work for repair shops. Throw in the fact that as the cost of cars continues to climb so that a large part of the population will be deterred from buying them, while another large portion will be locked out entirely.That leads me to my next point. The financially strapped portions of the population are turning to used cars – cars that they can afford. But they want to buy reliable cars from trusted sources. To use dealership advertising lingo, you should "push, drag or tow" yourself into the used car business. It's the part of the business that new car dealerships have used for decades to keep them profitable. Smart dealers always try to sell used cars first because of the higher profit margins, In addition, these used cars are going to need maintenance and repair sooner, which is another sales opportunity.
The vehicle retailers who control the used car market will control repair maintenance and service if they treat their customers right.
If you decide to sell used cars your main task will be to be to find the right kind of cars to sell, which are just outside the late model age range. These vehicles can be warranted for 12 months giving the new owners a sense of security, however, by the time their warranties are up they are entering their "sweet spot" for maintenance and repair, which you will be in the position to provide.
I'm not suggesting you turn your business into a used car business, but rather to offer used cars to some degree because the fate of many new car dealerships is dubious at best and those businesses positioned to fill the void will do so.
Almost 70 percent of motorists turn to independent shops for their service because they trust them, so its stands to reason they'll buy a used car from them too. This is especially true if shops' technicians have inspected and certified the vehicles they sell.
Wouldn't it be easier to stay focused on your current business and implement a lean program than to start a new business or two? Yes, depending on how strongly you feel about your position in a changing market.
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