Sam Memmolo
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Life is what happens when you are making other plans TSP Article for December Issue John Lennon said it best; “Life is what happens when you are making other plans”. How True! With the unexpected natural disasters we have faced this year at home and abroad, the U.S. and world economies have been dealt some serious challenges. Those challenges include dramatically higher fuel prices as well as some spot fuel shortages due to the hurricanes in the Gulf of Mexico, loss of natural resources with the fires in the west, and unusual flooding in the Northeast. These events have contributed to negative financial impacts on government, business, and consumers alike. No one is immune. Your customers may be driving less, altering their automotive lifestyle, and even trading vehicles for more fuel efficient models. Now is not the time to panic. We can get through this as we have in years past
This resulted in trimming $15,000 per month from his overhead. That was accomplished over approximately six months. Not a bad shot in the arm for his bottom line. If you really take the time to analyze and inspect, you can trim some expenses from your operating budget.
When high fuel prices eat into customer’s discretionary dollars, accessory sales may fall off dramatically. You may be tempted to run some specials, but I don’t recommend reducing prices as an enticement. Once you drop the price, you have established what the parts and labor are worth, and it’s hard to go back.
Try a simple form that your customers can pick up at the point of sale, and in the waiting room. Make it simple. Just ask for their input as to what new or additional services they would be likely to use if you offered them. Take your time, and get a good solid sampling of your customer base. You could also communicate via email, or ask them as they visit. Just be sure to ask the same questions.
Tabulating the results can help you make an educated decision as to what kind of diversification would help your business. This is the same technique used by OEM’s in focus groups and telephone or on-line surveys.
Stay one step ahead of your competition. Always try to give some added value that separates you from businesses of the same type. This could be as simple as providing a free car wash and vacuum service with each service or upgrade. This need not be elaborate or expensive, but may impress the customer enough to return to your shop rather than turn elsewhere because of an advertised “special”.
As I mentioned in earlier articles, building customer good will and trust is imperative. It is no different than any other relationship, and most of us know how much effort it takes to nurture and build a relationship. Trust is the key factor, and most good customers want to be able to count on you for all their needs. Asking your customers for their input will help to improve that relationship. It may give them a feeling of being involved and appreciated. Most all of our egos are fed well when we are sincerely asked our opinion.
Always greet customers with a smile, be positive, and remember to use his or her first name whenever possible. That will buy you more points than you know! Happy Motoring! Sam Memmolo
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Star by analyzing your
businesses, and do everything you can to control business expenses, stop waste,
and maximize sales revenues. I recently met with the principal of a large
Chevrolet dealership, and he shared with me that he had his entire staff closely
monitor spending and waste.