Monday, 28 February 2005 17:00

Be a big DRIP-er to get more business

Written by Tom Franklin

Most business people know it is necessary to promote their business to make themselves known widely and to bring in a steady flow of new customers. What no one seems to know is how much to promote. I've found most business owners are shocked to find out what kind of volume of promotion may be needed to generate a result. How much is it necessary to promote? Enough to get the job done! 

For the past three years I've watched one shop employ a "goodwill ambassador" who makes the rounds once a month, calling on agents, some DRP directors, dealership managers, fleet managers and more. This "ambassador" delivers to each target person, a newsletter, a pen and/or pad, and sometimes candy, pastry, a plant or other special item. The newsletter delivers the "sales pitch" so the messenger doesn't have to. 

People generally hate surprises - probably because many surprises are unpleasant. People hate to be surprised to find out they won't get their car back on time, or that they will have to put out additional cash to get their job done. We all hate to be surprised by a bigger tax bill than we expected, or by an assessment that's going to cost us dearly. 

"Without promotion, something terrible happens: NOTHING!"

                                                                                    - P.T. Barnum

More and more these days, I hear shop owners and managers say that they feel they're losing control over their business. Reports on insurance company manipulation, worker's comp costs, parts price increases, mandatory equipment and facility costs and more, communicate the fact that making a decent profit in the body shop business gets harder every day. What can a shop owner or manager do to gain more control over his or her own business in order to increase profits? 

"The difficult we do immediately. The impossible takes a little longer."
                                                                        -- World War II U.S. Army slogan

Saturday, 30 April 2005 17:00

DRIP via database hit lists can be key to more business

Written by Tom Franklin

This is the third in a series of articles focusing on what I call the "DRIP" marketing system - "Delivering Repetitive Information Persistently." If you missed either of the first two articles, "Be a Big "DRIP"er to Get More Business," or "The Goodwill Ambassador - Key to Inexpensive Marketing," contact me for reprints. 

Tuesday, 31 May 2005 17:00

Creating a profitable event

Most shop owners try to get on referral programs that will bring in a steady flow of business. These might be insurance direct repair programs, drive-in programs, fleet management company programs, or contracts with government, institutional or commercial vehicle departments. In just about every case, the problem is the same: how to get the decision-maker to look at your shop or to send someone to look at your shop. 

Recently I spoke with a shop owner who gave me the same line I've heard dozens of times: "To do well in the body shop business, you need insurance DRP (Direct Repair) status with several companies. Otherwise you'll never make it!" 

Most summers, I hear a common line in many body shops. You ask "How's business?" and the shop owner says, "It's slow, but I hear everyone's slow." It's been said that "misery loves company." I could just hear this shop owner calling his buddy who owns a shop across town: "Yeah, it's slow over here, but I hear everyone's slow." 

During the past dozen or so years that I have assisted body shops with marketing, when I speak to a potential new client I often hear the same complaint: "I've spent a lot of money on fancy literature and photos and sent packages to many insurance companies, agents and other potential sources of business, and haven't gotten a darned thing!" 

These days hardly anyone escapes receiving reams of junk mail every day. If you're like me, you throw many pieces of mail into the round file without even opening the envelope. But there is one kind of promotional mail you almost can't avoid glancing at: the glossy color postcard. 

In the May issue of Fast Company magazine, an article entitled "Change or Die!" provided insight into just how much people will resist change. The author notes that for a few weeks after a heart attack and by-pass surgery, patients are scared enough to make life-style changes they are told are necessary to avoid a fatal attack. But within weeks, nearly 90% have not changed and have returned to the aspects of their life-styles that led to the heart attack. 

Monday, 05 February 2007 15:45

Body shop doc: The new professional

Quite a while back the Autobody News often carried an article about a character called “Doctor Dent,” by Dave Truslow, Jr. Unfortunately Dave is no longer contributing his fine articles, but perhaps he was looking perceptively into the future when he called his character “Doctor.”

What could you get for your physical body parts if they were sold one-by-one? $25,000? May-be. How does that compare to the price of a car today? There’s a good chance that the car you are driving is worth more than you are.

Wednesday, 30 November 2005 17:00

Body shop marketing can be a numbers game

Many years ago a Russian named Pavlov established the laws of reward and punishment. Basically he proved that whatever you reward, you get more of, and what you punish, you get less of. Welfare societies have demonstrated that when we reward waste and inactivity, we get a lot more of it. In business, it would seem, when we reward new and repeat business referrals we should get a lot more of them. But how much is "a lot," and how far can we go with it? 

As we come rolling into a new year, it seems a question on the mind of every shop owner, large and small, is "What do I have to do to make this a significantly more profitable year?" I've noticed that there are similarities be-tween superior performance in various games and sports and superior profitability in a body shop. The superior basketball or football player and the superior poker or chess player have winning characteristics that, in a shop owner, could also result in superior performance and profitability. 

Over the past dozen years or so, I've been in every imaginable style of shop. It's been surprising to me to see how many different ways shop owners and managers find to build their business and keep growing.

I was recently assisting a shop with marketing and I noticed a peculiarity about this shop that I thought might be true of many others as well. This facility is located approximately in the middle of several very different types of residents and businesses. In one direction, potential customers are primarily Asian and very family-oriented. 

Many of the body shops I have called upon are located in neighborhoods that have slid downscale over the years. In these areas, most of the people who come in for autobody repair travel quite a distance. They are old customers who keep coming back or those sent to the shop through an insurance or other referral program. 

Many times over the years, I've written about the power of trust. Most shop owners already know that customer trust is a major key to continuing business from that customer. 

Over the years, I've provided numerous shop owners and managers with marketing strategies and procedures that they agreed would increase their business significantly. The only problem was they somehow couldn?t find time to put the strategies and procedures into practice. Running a body shop is a demanding activity. 

Successful shops step outside the existing business model to develop processes that improve productivity and profitability. Don Long's approach to productivity and profitability at Keyes Collision Center in Van Nuys, California, is an example of how the team concept can be enhanced to improve shop efficiency. 

Collision repair facilities in several provinces in Canada, enjoy profits that U.S. shops are missing out on. They have been recycling non-deployed OEM air bags since the first installations fifteen years ago. The Insurance Corporation of British Columbia, approved their use in 2002. Hundreds of non-deployed OEM air bags have been tested in Canada and the U.S. by credible organizations over the years with no problems and no reported failures of air bag modules themselves.

"If you keep on growing, you will always be out of your comfort zone." - Modern Proverb

Many shop owners have told me this has been an unusually difficult year. The last few years home owners have been on a re-financing spree and were able to spend some of the proceeds of their accumulated equity. Now that interest rates are up along with adjustable mortgage rate increases, that additional cash is no longer finding its way into the economy. It seems more accident victims are taking the money and running rather than using it to fix their vehicles. Along with all of this, higher gas prices are causing many people to drive less, and perhaps to have fewer accidents.

Holidays can be a difficult time for the body shop business. Happy shoppers are focusing on spending their money for sweaters, ties, toys and other gifts - not auto body repairs. Unfortunately for many of them, more than 20 percent of fender-benders and banged-up bumpers occur in shopping area parking lots.

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