Shop Management | Operations - Service Repair

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Follow this flow chart to improve your business practices

Thursday, August 15, 2019 - 07:00
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This month let’s listen to ATI Coach Brian Hunnicutt explain how he begins to diagnose shops that want to do better. The first question in the flow chart would be: “Do you have enough cars?” Let’s assume the answer is no. Then we would need to check into marketing, phone skills, location and a bunch of other things but you get the idea. If the answer is yes and you have enough cars, we would check to see if you are asking for enough with the estimate. If you aren’t asking enough with the estimate, then we would either work on the courtesy check, or look at maintenance for the estimate using time and mileage. If the courtesy checks and maintenance are not an issue, then we need to look closer. Now we would look into the conversion rate of estimate dollars to dollars sold. You do this by examining the relationship you build with the customer. Do you provide education in your presentations? Do you build value with the sale or in service after the sale?

Need more car count?

If you do not have enough cars, first ask yourself, “What are you getting for an average repair order?” For a Euro shop it should be around a thousand dollars. For an Asian shop it should be around seven hundred. For a normal auto repair shop it should be around five hundred. For a quick lube it should be around one hundred and twenty-five. So you may not need more cars — you may need to get more per car. So do you need more cars? Yes? Then are you posting on Google My Business at least three times a week? Are you doing all of the customer retention ideas? Things like thank you calls, CSI calls and deferred work calls. Are you working on rescheduling calls, and where-have-you-been calls? Are you exit scheduling?
 

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Once you have enough cars, are you asking for enough? If the answer is no, then are you doing a courtesy check before doing any other work except a no start? Is it a complete courtesy check? Are you building the estimate that has everything included that should be? Are you adding the maintenance like shocks/struts, flushes, filters, belts and battery services by time and mileage as you are supposed to? The estimate average should be at least $1,250.00. If you don’t ask for enough then the answer is “no” before you even ask. On the courtesy check, is anyone double-checking to make sure that nothing is being missed? Are you putting your eyes on the car so that when you talk to the client you can give them the image of what you saw? This way they understand the importance of the service.

Need larger estimates?

If you are asking for enough, the estimate would be at least $1,250 on average. Not every car but on average — some will be almost nothing and others will be in the thousands. You do this by examining the relationship you build with the customer. Do you provide education in your presentations? Do you build value with the sale or in service after the sale?

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