As we continue to face the most challenging
economic times in recent history, your shop’s bottom line and return on
investment are undoubtedly top of mind. And, while financial subjects are dry
and usually at the bottom of a shop owner’s list of desirable activities, says
Steve Louden, president of
Louden Motorcar Services in Dallas, they typically
are the
number one reason for poor performance or failure.
Below, Louden shares insights into how to best manage various shop “assets” to
make your business more successful. Louden advises that this management skill
alone, many times, determines the difference between the highly successful
shops and those that are just getting by or disappearing altogether. He is very
in tune with the financial side of his business and his shop, which specializes
in BMW, M-B, Porsche and MINI repairs, celebrated its 33rd anniversary last
year.
Team Members. You will immediately notice that I did not say employees. That is
because your people do not really work for
you. They work for themselves as
part of your team. Your team members are your most important assets and as long
as their wants and needs are met, they will stay with you. And, money is not the
most important reason for a team member to stay or leave. Other than the
ability to perform the functions required, a sense of family, cooperation,
skill sharing and integrity are very important in building a great team, which
is a requirement for any successful business.
Technician Time. An automotive repair shop has only one commodity to sell, and
that is time. How you manage the efficiency, productivity and quality of this
asset will determine your ultimate success. A shop owner’s responsibility is to
keep the shop full of profitable work through marketing, service selling,
scheduling and parts procurement. Without a steady flow of customers, the rest
of the business formula falls apart. Of course, parallel to selling time is
selling parts. Selling is not a bad word and is only used to sell needed work.
Productivity and efficiency are dependent on technician skill levels,
scheduling, availability of parts, and, of course, selling the job.
Reputation. This will spread like wildfire, whether good or bad, especially in
today’s Internet world. It’s estimated that a dissatisfied customer will tell
six to 10 other people, while a satisfied customer will tell only one or two.
So, the deck is stacked against us. The bottom line is, take care of your
customers and they will take care of you. And, when you have a customer who you
just cannot seem to satisfy, no matter what you do, diplomatically suggest
he/she take their business elsewhere. Life is too short to deal with these
people.
Facility. A new, specially designed facility is nice but, wherever you are,
keep it clean, presentable and have a place for customers to wait, read and
enjoy a complimentary cup of coffee or cold drink. WiFi today is almost a
necessity and well appreciated by customers. Keep your shop freshly painted,
well lighted and clutter-free. Consider your shop area a “showroom” and be
proud to give customers a tour.
Stay tuned for more of Louden’s advice on Managing Company Assets in the
October issue’s Editor’s Notebook.