The week of March 01, 2010
Finding ways to keep your shop moving during sluggish times
by John Yoswick
While there appears to be some light at the long economic tunnel the country has endured, shops still need to find ways to hang on until things rebound more fully. Here are 11 things some shop owners – particularly those who have experienced similar economic situations in earlier decades –are doing to outlast the downturn.
1. Up the ante for referrals. Thanking and rewarding customers or other businesses when they refer a customer to your shop is hardly a new idea. But a number of shops said they are more aggressively seeking such referrals by offering more for them than they had in the past. The Starbucks card is being replaced by a restaurant gift certificate for a meal. The free car wash is being replaced by a cash reward. “This isn't necessarily a long-term change to what we're offering customers for referrals,” one shop owner said. “I just wanted to get a little more attention to our referral program at a time when we need the referrals more than ever.”
2. Ask employees for help. Everyone in your business brings a slightly different perspective to the shop. When was the last time you asked employees for ideas that help the business save money? One shop owner said he offers a $75 reward for the best idea each month. The ideas shared have ranged from a couple of changes in products the shop stocks and uses, to not renewing subscriptions to several magazines in the customer waiting area that front-office staff said were rarely read. No single idea has been a huge money-saver, but the shop owner said he's more than saving the cost of the rewards, and more importantly it's instilled in employees an interest in looking for ways to cut unnecessary costs.
3. Keep up morale. Shop owners who have lost key employees during previous slow-downs say they're making extra efforts to not let that happen again. One said he's trying to keep spirits up by holding softball and bowling “tournaments” between his employees and those of another shop. One franchise shop said it is creating a sales competition among estimators at the other franchise shops in the market. Another shop owner said he gave a weekend get-away package to each of his three key technicians, all of whom have seen they income drop this year.
4. Follow-up on estimates. Sometimes the oldest and seemingly most obvious ideas are the ones that get overlooked, particularly when times are good. If you don't get a job sold at the time you write the estimate, create a system to follow-up with those customers to ask for the job (or at a minimum find out why you didn't get it).
5. These can be tough times for equipment companies and other vendors in the industry as well. It can be a good time to get a deal on that new piece of equipment you've had on your wish list, particularly because the company may be able to offer more help with installation and training than they can when they're swamped, too.
6. Work on your website. If you invest far more in your phone book ad than your company's website, take advantage of the slowdown to fix that. Several studies have found the almost twice as many Americans start looking for local listings online rather than in printed phone books. At a minimum, get a “placeholder” website for your shop, that includes your shop address, phone numbers, hours, and key selling points. If you have a site, make sure it is updated and accurate.
7. Make the most of your existing customers. Up-selling customers can be tough in a tight economy, but retail analysts say consumers are still open to lower-cost items that feel like luxuries, and things that help customize something otherwise viewed as a commodity. The $200 detail or a complete custom paint job may be a tough sell, but the $49 “express detail” or some striping or graphics may appeal. Also consider what other vehicle services you may be able to offer them as a convenience while their vehicle is at your shop – even if tires or oil changes aren't in your long-term plans for your business.
8. Building maintenance. Take advantage of the slow-down to get some work done on your shop's building and property: new paint, landscaping, fence repair – the sorts of things that often get deferred when the shop is full of work.
9. Get some new perspective. You can almost always find great ideas you can use during the downturn (and beyond) by seeking some outside perspective. Catch up on your trade publication reading. Pick up a business book and consider how the concepts can be applied to this industry. Join a 20 group. Get to some of the association meetings you've been meaning to attend. Call a non-competing shop across town or across the country (if you're traveling on vacation) and ask if you can tour their facility.
10. Hire up. Most shops in recent months report having more technicians contacting them looking for work than they've seen in years. If you have an employee who will be your weakest link when business rebounds, this may be the time to seek a replacement.
11. Get some training. Too often, training budgets take the hit when a company is looking to trim costs. But this can be an ideal time to get technicians to I-CAR or vendor training, and to seek out sales or management training for yourself or office staff. It can be tough (and expensive, given overtime) to get to such training when the shop is swamped and everyone is working 40+ hours a week.
NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.