MANAGEMENT

Dave Redinger
davidredinger@rogers.com

June 10, 2009

Garage Business

Paging Dr. Redinger

Although recessions are never welcome or wanted, they can also be a time of prosperity and opportunity for those of us in the aftermarket.

Recession is a dirty word, and there’s no doubt that many are suffering due to the current economic downturn. But not everyone hurts during a recession. In fact as pocket strings tighten up, those of us in the repair industry tend to flourish. So let me ask you, are you ready for an increase in business?

About-face

Over the last few years we have seen a tremendous change in the way we do business. As an independent, we discovered several years ago that we were failing. Our company failed to grow, we were lacking the access to technology we needed and wanted, we weren’t getting the mark-up on parts that we should have, and we weren’t getting the support we needed from our jobber. In short, we were sliding into the abyss.

Then, about three years ago we read an ad describing the AUTOPRO program from NAPA. Intrigued and interested, we met with them, liked what we heard and signed on. That was step one in an aboutface we never regretted.

Beyond breakdown

Let’s face it: NAPA is in the business of selling parts. The powers-that be at NAPA are smart enough to realize that a strong customer base is going to grow their parts business. The better NAPA customers do, the better NAPA does. So they’re eager and happy to help you and me improve the way we do business.

NAPA introduced us to the various management programs they offer. The object— to convert our shop from a breakdown shop to a maintenance shop. What’s the difference, you ask?

A breakdown shop waits around for the tow truck to drop off work. No truck, no work. A maintenance shop, on the other hand, takes a more proactive approach to business. In fact, a maintenance shop is run like a dentist’s office in that reminders are sent out to customers on a regular basis, and work is booked in advance so that the shop is always humming with money-generating activity.

Imagine having pre-ordered parts in stock for a repair that you know is scheduled to come in. How efficient is that!

You should be running your shop more like a dentist’s office

Better for business

We’re in our third year as an AUTOPRO shop. Result: our sales are up over 30% this year. I don’t know if this figure is the result of doing a better job, more business because people are planning to keep their cars and investing in them, or if we just screwed up so badly last year that we couldn’t help but see better numbers this year. More than likely, the 30% is a combination of all of the above.

The bottom line — get your head out from under the hood. Take a look at your current operation. How profitable are your labour sales? How profitable are the parts sales? Where can you cut expenses? These are just a few of the questions you should be asking.

And if you can’t get the help you want or need from your jobber, why not think about moving on? Maybe it’s time for professional help.