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MANAGEMENT

 

20 November 2008
 

Garage Business

The More Things Change...

 

Dave Redinger
davidredinger@rogers.com

 

Long term success depends on your ability to generate new business for your shop.

 

The auto industry has changed dramatically over the past fifty or sixty years. But as the old saying goes: the more things change, the more they stay the same. The makes and models may be different, and the technologies more advanced, but business basics haven’t changed at all.

 

Growing up in the car industry has always been an experience. Back in the 50s and 60s, when a car pulled up to the gas pumps, they would cross a rubber hose. The hose would trigger the bell that alerted the attendants to the presence of a customer needing gas.

 

But the attendant would do more than simply pump the gas. True, he would start by selling gasoline and cleaning the windshield, but then he would pop the hood and check the fluids. The added service not only made the customer feel cared for, but it also allowed the gas attendant to take a peek under the hood with the hope that he might be able to drum up a bit of business for the shop.

 

Good ol’ days

Across from my dad’s dealership was the friendly neighbourhood Shell station. In his wisdom, the owner would send his best people to the pumps. At first glance, one would think this was wrong. Sending the apprentice and keeping the Class A working would seem to make more sense. The reasoning behind this act of folly? Get a trained eye under the hood of the customer’s car.

 

Back then, one reason gas stations put up with the hassle of selling gas is because this proved to be a  great source of business. Having an intelligent and personable individual meeting the public and making appointments was definitely part of the business plan. Your pump sales generated serious business for the shop.

 

Doing business today

Let’s jump ahead 50 years. We no longer see gas station/garage centres in the city. The garage has been replaced by a convenience store. They sell milk, smokes, and lottery tickets. So as a garage owner how do you meet your clients?

 

Well, in our shop, we meet new business through oil changes. Last year we sent out 20,000 mailers and post cards offering oil change and inspection deals. In fact, the techs (fl at rate) fight for the oil changes. They have been trained to check every car they service. After each service, the service writer is handed a menu of items that need attention now or in the near future. Timing belt? Brake services, Moto Vac, cooling system service, etc.

 

So although the way we make first contact may have changed over the years from peeking under the  hood at a fullservice gas bar to taking a more intimate look underneath during an oil change, the goal has stayed the same. This is an essential part of the entire business plan, and a great way to find new  customers.

 

Look at it this way—if you are doing any marketing at all you’re spending between $10 to $15 to meet that customer. Don’t waste the effort on a half-completed job. Use the hoist as your sales tool much as they  used the pumps back in the good ol’ days.

 

Dave Redinger is a mechanic with over 40 years experience who owns and operates his own shop in the Toronto area. Dave hosts the Neighbourhood Mechanic show, heard on Chum 1050. The Neighbourhood Mechanic can be seen on Dave’s national television show on E Channel. Both shows deal with automotive issues.