Tom Franklin (111)
Tom Franklin has been a sales and marketing consultant for forty years, specializing in automotive and auto body. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
.
To view a pdf file of this article with photos, click HERE.
One rule you’ll find in many sales and marketing books is that the average sale is made after the sixth visit or call, but the average sales person gives up after the third visit or call. This information provides a reliable way to increase sales power. The usual sale in a collision repair shop is just getting the owner of a vehicle who brings it into the shop is leave the keys and let the shop do the repairs. But generally a shop also works to sell dealerships, fleet management companies, insurance companies and more on referring business to the shop. While these sales efforts involve direct calls and visits, perhaps the most common violation of this rule is the sale to the vehicle owner who comes in for an estimate.
To view a pdf file of this article with photos, click HERE.
Are signs still relevant in this digital age of websites, Facebook, Twitter, YouTube and more? The U.S. Census Bureau says 18% of households relocate every year. It’s well known that many people choose a place of business by the attractiveness of its appearance and signs. People who move into the vicinity of a collision repair facility are likely to only know of the shop if they see a sign and like it. The Small Business Agency reports that businesses that add, improve or enlarge signage enjoy an average revenue increase of about 5%.
Signs in this digital age should also have a broader focus. In addition to the usual location and services message, today’s sign should also drive viewers to the shop’s website, Facebook page, and other on-line locations like Twitter, Pinterest and YouTube. This is especially true of signs not on the shop’s physical property. Shop vehicles with printed information, or a magnetic sign, should definitely emphasize on-line connections in larger type.
To view a pdf file of this article with photos, click HERE.
The collision repair world is changing rapidly these days. I recently attended an autobody association meeting where a representative from Toyota introduced their new Parts Bridge product. The estimating system with which they decide to integrate this product will have exact manufacturer’s billing prices and technical service bulletin information to ensure parts are installed properly. It was suggested that this product would eliminate most supplements. Suddenly a large part of the estimator’s job would be reduced greatly.
At the same time, the competition for jobs is heating up more and more, and consolidators are buying up many of the existing shops. The result of this is sort of a Walmart versus local merchants war. Smaller shops are finding it much harder to compete when a chain of franchise or consolidator shops is gobbling up the lion’s share of the work in an area. How can they fight back?
Pilfer and Polish the Competition’s Thunder
Written by Tom FranklinTo view a pdf file of this article with photos, click HERE.
http://autobodynews.com/images/CurrentIssue/March%2013/se_0313_issue_web%2012.pdf
ftp://autobody: This e-mail address is being protected from spambots. You need JavaScript enabled to view it /httpdocs/images/CurrentIssue/
The dictionary says ‘pilfer’ means to steal articles of little value, but you might say value is in the eye of the beholder. By now your competition probably has a website, a Facebook page, a Twitter account and more.
Have you checked these out? How effective do you think the contents on these promotional tools are? How do they compare with yours? Have you even looked? Are these articles of ‘little value’ that you might ‘pilfer’ and then polish to increase the value and fit your own needs? Your competitors may have spent dearly to get these tools created, but their designs and ideas are yours to copy if you modify them to showcase your shop. It’s been said that imitation is the highest form of flattery, but I’m not suggesting that you settle for a cheap copy of your competitors’ ideas. You need to improve—and improve greatly—on what you see.
To view a pdf file of this article with photos, click HERE.
As insurance companies set up 800 number claims lines or move away from agents altogether with direct sales and service on-line, agents have become less of a marketing target for many shops. Nevertheless, there are still numerous agents almost everywhere, and many of their customers still call them when they have an accident. Agents are still a good referral source for collision repair business, but today an agent might be more particular about who he or she refers business to. Getting and keeping an insurance customer has become more difficult for agents today. Competition from no-agent, direct online companies is very intense these days. There are continual advertisements on TV, radio and the Internet, and low-ball rates to hook customers are common. It’s not easy for an agent to get new customers.
To view a pdf file of this article with photos, click HERE.
We recently ended an election campaign season during which exaggerations, misrepresentations and outright lies were rampant. It made me think of John, a small shop owner who surprised me when I asked where his customers came from. He had been in business for nearly 30 years, but he told me he didn’t rely on any corporate referrals, dealership business or any of the other usual sources that many shop owners tell me are vital to keeping them in business. “So,” I said, “where does your business come from?” He replied, “My customers just keep coming back. After 30 years, you accumulate a lot of customers.”
Right away I thought about many other owners who complain to me that they have lost a lot of their old customers. They tell me their customers are swayed by steering, websites, ads, and news stories designed to scare them away from small shops. I asked John if that happened to him. “Sometimes,” he replied, “but mostly when they try to sway my customers, they fail. My customers are my friends. Good friends never desert you.”
To view a pdf file of this article with photos, click HERE.
What is the value of a lifetime customer? Let’s just take 15 years. A typical driver has some sort of vehicle damage once every three to five years. If we count little parking lot scrapes and minor dents, three years may be just about right. That means a good customer might visit the shop five times in 15 years, but at least three times. How important is it that this customer becomes a repeat customer? Of course that depends on the size of the shop, the referral sources the shop relies on, and the number of repeat customers the shop relies on to maintain a steady, profitable business. A shop with many DRPs providing a steady flow of new customers may not be as concerned with repeat customers as a small to medium sized shop that needs at least half of all customers to come back again—and hopefully again and again.
To view a pdf file of this article with photos, click HERE.
In the early ‘90s, the term “Piggy-back marketing” meant that the trial of a new product on the market was linked to another product that already had wide acceptance in the marketplace. The intent was that this weaker new product would be “piggy-backed” on the strength of the “carrier” product. Soon the practice was expanded so that many products were “piggy-backed” on products already being used. You see this all the time when you receive a credit card bill or gasoline credit card bill and find offers inside to buy a wide range of products. You know this must be a successful strategy because it has continued on so long.
To view a pdf file of this article with photos, click HERE.
I've written about ways to use the customer information form to build business many times, but I still come across estimators who either expect front desk people to handle it and then ignore it, or just capture the minimum info about the vehicle and insurance company. Somehow many estimators simply don't understand the value of this form as a sales and profit tool. Perhaps an estimator's boss, the shop owner or manager, foolishly pays estimators a flat rate with no meaningful incentive to increase business volume and profits, but even estimators I know who are paid incentives still fail to use the form intelligently. I have to conclude they simply don't grasp the real meaning or value of this form.
This form may be one of the most valuable of all forms in a shop! Used properly it can open the door to business and family referrals, provide many ways to make a customer a customer for life, and a wealth of ways to close the sale. In addition to the obvious questions like family and children's birthdays, anniversaries, and other key events, a good info sheet asks for business or employer info and any company vehicle info. A lazy estimator will expect front desk people to capture as much info as they can, but a smart estimator seizes the opportunity to talk with the customer and fill in the form for him or her. A smart owner sends out birthday, anniversary and holiday greetings, but a smarter estimator gets to ask about other family members and associates and their vehicles. This is a perfect time to offer a family or company discount or free car wash or detail to bring in other family members or business associates.
While all of this should be standard customer sales mining, there is an even more important sales use for this form. With the sluggish economy, vehicles are being kept longer. One estimate is now eleven years on average. This means that people keeping their vehicles longer may not be adding collision coverage to their auto insurance. This has increased the volume of self-pay jobs to what may be 20 percent or more for many shops. Unfortunately if the estimator hasn't used the info form to see if it's an insurance pay or self-pay job, he or she might write an estimate that assumes an insurance level of payment to restore the vehicle to pre-accident condition. If the estimator knows it will be a self-pay job, he or she will usually ask the customer just how much restoration is desired and how much the person's budget will bear. Knowing there is a limited budget, an estimator may suggest used or aftermarket parts and other cost-saving measures.
I spoke to one estimator recently who told me most self-pay jobs were very low-priced minor repairs that probably cost more to process than they were worth. I asked if this was always true, and he had to admit that occasionally they would get a self-pay job worth many thousands of dollars. He had to admit that a couple of these jobs would compensate for a great many low or no-profit jobs and that it was probably still worth while to take the time to do the self-pays when they came along. Once again, the customer information form could be a key to profitable self-pay. When faced with a thousand-dollar deductible, even some insurance-covered damage might be profitably converted to self-pay. Most people know that if they have the insurance company pay for repairs, there is a fair chance their premium will rise. A repair job in the $2000 range with a $1000 deductible could easily be a wash if the probability of a premium rate increase is factored in. And if the job became self-pay, once again the estimator could show the customer ways they could reduce the cost of the repair (without reducing the shop's profit).
The low-budget self-pay indication on the form is just one heads-up advantage for the estimator. A more profitable opportunity might be suggested for more affluent types. Some customers might choose to replace an external part with a more cosmetically appealing part and be willing to pay for an upgrade. Pinstriping, graphics, clear-bra or other paint-related add-ons might be suggested. Mothers transporting children or pets might be in the market for additional safety items or restraints. Truck owners might be interested in any number of add-ons. Handicapped people could be looking for a specific upgrade like a power running board. A careful reading of the form can reveal many possibilities before even looking at the vehicle. Handled properly, the customer information form can be a window into the customer's mind. That little bit of information mining could turn into some gold mining for the shop.
Conversations That Sell Jobs, No Need to Mention Entropy
Written by Tom FranklinTo view a pdf file of this article with photos, click HERE.
http://autobodynews.com/images/CurrentIssue/September%2012/sw_0912_issue_web%2038.pdf
Remember when you last drove a brand new car? Think back and remember how wonderfully solid it felt. If you’ve ever driven an old car that rattled and squeaked and made all sorts of random noises, you could really appreciate that new car. It had not yet yielded to the relentless attack of the forces of entropy, one of the most powerful forces in the universe.
I was recently talking with an estimator at a relatively busy shop in my area. I asked what his biggest problem was these days. He said it was the people who came in for an estimate but wouldn’t leave the car. He said no matter how much he promised, he couldn’t close the deal on many of the tough customers. It occurred to me that he might be putting too much faith in the power of words. Some people simply have a distrust of sales pitches, phony promises and fancy words. Maybe they responded to one too many TV commercial promises or a phone solicitor or one of the many over-hyped ads for products that never live up to their promises.
To view a pdf file of this article with photos, click HERE.
