How to Keep Your Service Business from Going to Independent Shops - Especially Right Now - by Ted Ings

With the renewed focus on keeping vehicles on the road longer, customers now realize they have more choices for auto repair than ever before.

Competition is fierce and you must work extra hard to earn your piece of the pie. Especially when it comes to fending off independent repair shops, which are often seen as more cost-effective and caring.

Tips to help stop customers from going to independent shops

As a dealership manager, what can you do to keep your service business from going to independent shops? We’ve got a few ideas.

1. Get to know regular customers

Instead of treating a customer like repair order #127456, many independent shops address each patron as an individual. And consumers dig it. To compete, you need to know your routine customers on a first-name basis. Become acquainted with their needs and wants, as well as their hobbies and interests, when possible.

2. Keep prices competitive

Despite what many consumers think, dealership rates aren’t always more than independent shops. In fact, the dealer is often on par – or even cheaper than – some small businesses. But there are a few outliers (we’re looking at you, BMW dealer with a $250/hour labor rate) that need to face reality and become competitive.

3. Go the extra mile

Many consumers gravitate towards independent shops that put in the extra effort. For example, a mom and pop business might choose to repair a car’s wires instead of replacing the entire engine harness. Although replacing the harness might net a larger one-time sale, ultimately, it could cost you a customer.

4. Sponsor local charities and organizations

Many of your customers are caring people vested in local charities and organizations. Get involved by becoming a sponsor and, if you’ve got the bandwidth, consider volunteering some of your time.

5. Make sure employees show they care

Customers often feel independent shops are more compassionate than dealers. You can fight that stigma by ensuring employees show they care. Staff can demonstrate concern through simple acts, such as greeting each person who walks through the door and remembering names of routine guests.

6. Be friendly and polite

It should go without saying your staff must be friendly and courteous 100% of the time. Employees need to engage in niceties such as holding the door open for customers and saying thank you. You know, everything mom taught you to do.

7. Host a virtual open house

What really happens behind the service bay doors? Most of your customers have no clue. To remedy this, you can host a virtual open house explaining the ins and outs of a service department. Reel people in with perks such as a raffle. Get to know your guests and have fun.

8. Offer classes

Consider offering a free live tutorial on something like simple car care (checking tire pressure, topping off washer fluid, etc.) that will put you in direct contact with your customers.

9. Hometown events

Once things get back to normal, hometown events, such as sports games and festivals, are a great way to interact with customers. Stop by to say hello and meet your amazing patrons firsthand. Oh, and in case you need a reminder, don’t mention business-related topics at local gatherings. Such events are a chance for you to get to know customers as individuals.

10. Operate with honesty and integrity

You shouldn’t need a reminder to always operate with honesty and integrity. Engaging in underhanded activities, like cutting corners on work and upselling unnecessary repairs, will come back to haunt you. And you’ll quickly lose customers.

Remember that automotive service is about people

It all boils down to the fact that automotive retail isn’t about fixing cars – it’s about people. Sure, customers want their vehicle serviced right, but they also want compassion and respect. Treat them like family and they’ll be sure to stick around.

Speakers and sponsors can reach out to me for more information by e-mail at [email protected] or call (212) 763-0016

Ted Ings is the Executive Director at the Fixed Ops Roundtable and the Center for Performance Improvement. He is a 5-time NADA (National Automobile Dealers Association) Convention speaker and is one of their highest-rated presenters.?

He has successfully implemented dozens of initiatives for OEM’s and Total Quality Management processes at thousands of dealerships in North America and around the world, revolutionizing the way vehicles are sold. This makes him an invaluable asset to his clients and they get both the benefit of his vision and his experience.