It’s a Very Good Time To Own A Good Auto Repair Business, But It’s A Very Bad Time To Own A Bad Auto Repair Business!

Sorry, but this week’s message is going to leave more than a few of you very uncomfortable, annoyed, and maybe a bit pissed off at me. If you’d rather not ruin your day by listening to me uncover several undeniable truths, go ahead and delete this message, unread. On the other hand, if your biz has been skidding on a rough patch lately and you’d like to know how to fix it; read, believe, and act on what I have to say here.

We just came through the single best stretch of economic boom in our history. Low unemployment. Job security. Overnight millionaires were created left and right. Times were good. Repair shop owners were doing well – even if they were sloppy with their marketing, sales, and systems. Their clients were making money, had job security, the future looked bright – so it really wasn’t too difficult to sell them services. Your only competition was the new car dealers that were attempting to sell your clients brand new cars. It was a good time to even be in a bad auto repair business.

But now the roof has caved in. High unemployment. Zero job security. Investment accounts wiped out. People in fear of losing their homes. The good news? People are now forced to keep their cars longer so they aren’t buying new cars – they MUST repair and maintain their current vehicles. More good news – you have less competition because thousands of shops have closed their doors all over the country.

The shops that are still doing well are succeeding because they didn’t need to rely on the economy to do well in the past. They built their businesses on a very strong foundation by building a database of great clients through highly targeted marketing, and then having properly trained sales staff, and put the systems in place to operate a solid business. If you’re in the top 20% of shops that are still doing well, woohoo! Congratulations! You’ve listened, took action, and are reaping the abundant rewards!!!

If your business is slipping right now, it’s because the good economy had propped you up and allowed you to get by with a lot of sloppy (or non-existent!) marketing, training, and/or systems. Now, the thread that had been keeping you in business (the good economy) is now being yanked on and your business is unraveling. For example, your lack of targeted marketing has now left you with a database of low-quality clients that now don’t have any money. Your lack of investment in relationship-building strategies in the past has left you with a small, shrinking list of non-loyal clients. Your poorly trained service advisor that did okay selling to folks when they had money, now struggles to sell even the most needed services.

Now, I realize that I’m generalizing here and if you’re struggling, it could be any one of several dozen reasons. The most important thing is that you take a good hard honest look at your business and get started fixing the problems – fast!!  Your only other option is to get pissed off at me for blaming you for your own problems, do nothing to change your situation, and hope and pray things get better on their own.

How can I help you? If you’re already doing well, what else can I do to help make your business better? If you’re struggling, what would you like to get from me that will help turn things around? Please let me know by writing your comments below.

Best, Ron Ipach

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8 Responses to “It’s a Very Good Time To Own A Good Auto Repair Business, But It’s A Very Bad Time To Own A Bad Auto Repair Business!”

  1. Jeff K. Says:

    Having the right personnel is so crucial to success. I had been trying to get the right guy up front for many years. You are so right when you say the best sales job a service writer will do is convincing you to keep him. I finally found my guy after going through so many. Now that i have him i know how bad the other guys were. I knew how i wanted my business run but couldn’t get the service writer to do it until now. What a difference. 2 weeks ago he was out sick for 3 days. We did just over $3000.00. When he came back he did $10,000 in 2 days. Man i love that guy. I have always had a hard time selling myself, but i am an ASE Certified mechanic and can fix just about anything, but without a good service writer your doomed. Since i started listening to you a few years ago i now have a great TEAM working in my shop and some great marketing (including a great newsletter) that has kept me going.
    Thanks Ron.

  2. Rick mcmullin ( Ratchet) Says:

    How do you target market in Canada with no list broker able to give you info to analyze. The income level areas of our city are known but low income is ruled out unless you want to sift through alot of unmaintained junk to get to a good client , a mid income home to high income can have a newer car . I am very busy but have gone to advanced marketing to maintain my shop. Example go to YouTube and type in ” rusty Wallace and Ricky ratchets “or just “Ricky ratchets ” to see my work

    • Ron Ipach Says:

      Rick, since Canada doesn’t have sophisticated list segmentation, the next best thing is to adjust your prices to limit the folks that don’t have any money. For instance, instead of offering an introductory lower-priced oil change for $17.95, put together a larger package of services at a higher (but excellent) price of $69.95. You will still be offering an irresistible price, but the higher price will tend to keep the bottom feeders away.

  3. Brian Shaffer Says:

    Ron,
    When did you put up the spy cams in my shop?
    Once again you have hit the nail on the head. We have been strugling here the past few months. But I know exactly why, and its my fault. I haven’t been doing the marketing that I usualy do, because I got rid of my so called A tech. Yeah he was a good tech, but he constantly bitched and complained about everything. He thought he was to good to do certain jobs, and if something came in that he had never done before, he would start making excuses about doing the job before he even started it.
    So I had to go back into the shop for now to replace him. So I guess thats why I haven’t been on the marketing lately. Poor excuse, yeah maybe, but at least I know what I have to do to fix it.
    I think the economy has finally hit here in WV, they always say we are slower than the rest of the country, so my next step is to call your office and rejoin the coaching group so I can get retaught some of the stratagies that I have forgotten about to get me through these tough times.
    Why are you always right, THATS what pisses me off.

    • Ron Ipach Says:

      Brian, great to see you’ve identified the problem and are ready to fix it. We’re always ready to welcome back more of the best and brightest shop owners in the Repair Shop Coaching program!

      Oh, and the fact that I’m ALWAYS right pisses my wife off too 😉

  4. Carlo Ferracioli Says:

    Ich könnte endlos weiterlesen! Mehr!

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