Latest Headlines

Thursday, October 30, 2008

Is Your Business Ready for 2009?


Is Your Business Ready for 2009?

by Mike Olson, Director of WTI Business Management Solutions


After 40 years in this industry, most spent in the Aftermarket repair segment, I have come to learn a few things about repair shop owners. One is most do not measure their business on a monthly basis. By this I mean most owners cannot tell you their car count, repair order average, hours sold per repair order, and so on. By now, some of you are saying, "he’s crazy, I always do" . . . if so, you are in the minority. In our Management Training Classes and our Performance Groups we find owners who are really trying to get to a point where they can manage their business on a daily basis. In addition, here are a few tips to help make 2009 successful:

Focus on Your Business

When you truly work on your business rather than in it, the profitability comes easier. When an owner works in the business as either a technician or a service advisor, their time is so consumed he or she has none or very little time to do those things that make the business grow.

Prepare for the Worst

2009 promises to be one of the most challenging years ever for both business owners as well as the general population. There are a record number of service centers and new car dealers going out of business. Loans for businesses and private citizens are extremely difficult. Some say credit card companies are going to tighten their limits. Fuel prices are up and down. In short, everyone is afraid to spend their money.

Make a Plan

Having said that, what is an owner to do? The simple answers are to have a plan and monitor your business very carefully. If you do not know how, learn.

To Increase Sales, Increase Communication

There are some basic actions owners can do to increase their sales. One is to communicate with your customer base. You should communicate with your customers at least four times a year:

  • Service reminders
  • Thank you cards
  • Holiday cards

    And one of the most successful . . .

  • Sending reminders about previously declined repairs
When you do all the work to give customers recommended repairs and they do not authorize them, do not give up. Send out reminders about those needed repairs. Businesses that do this have extremely good results. The other thing I would do is start a referral program for my customers to bring in their friends.

Recognize the Value of Specialized Skills

Before you do anything, be sure you and your staff are trained in proper selling techniques. Customers spend a lot of money on service and repairs and they need to feel special. A highly trained service consultant will bring in more sales than someone with technical knowledge. And the person in the front office selling service must be a people person.

In 2009 the WTI will be offering several classes for Service Advisors and Owners. If there is a workshop subject or location you would like to see, please send me an email. If we can, we will sure try to provide this training in your area. Also, if you are interested in joining a Performance Group, let me know. Without your success, we have none ourselves.

Best Regards,


Mike Olson
mikeo@worldpac.com



The WORLDPAC Training Institute (WTI) Business Management Solutions are taught by experienced professional instructors and designed explicitly for the independent shop.

www.worldpac.com

Send Email to the WIN team

Read more!

Friday, October 17, 2008

BIZ TIP: ADVICE on Advisors!


BIZ TIP: ADVICE on Advisors!

by Kelly Bennett, WORLDPAC Training Institute (WTI) Business Development Instructor


In this series of fictional letters from a new shop owner to his former boss, WTI management trainer Kelly Bennett discusses basic business principles that apply to the automotive repair industry.

ADVICE on Advisors! says if you ever want to be an absentee owner, you’re going to have to find someone you trust to run the counter. It also addresses the evolving role of an automotive shop owner and the four main skills of a good advisor.



Dear Kelly.

OK. I hired a new technician. He lives close by and really loves the shorter commute. He’s turning out to be a great technician . . . and a great employee! However, this has caused a new problem. With more work on the go, I’m having an even harder time keeping up with the service advisor role. I am feeling pulled in every direction between the bays and the counter. I don’t think I can afford an advisor, and even if I could, can I trust them to look after MY customers?

- Erol




Dear Erol:

Well, that’s great news about finding the right technician. I’m sure that’s a load off your mind. I’m well aware of the challenges of trying to wear three hats at once – technician, advisor and manager. I think that cost me more grey hairs than anything else! One thing that helped me was the book Getting Things Done; The Art of Stress-Free Productivity, by David Allen.

Another thing that helped me was seeing the “bigger picture” of how the role of an automotive shop owner evolves. I went through it myself, although it took a lot longer than it probably should have.

Stage 1: Technician

Many of us shop owners start in this industry as a technician. So when we put our own name on the building, it makes sense that we continue to do what we’re really good at. After all, there’s no revenue if we don’t fix vehicles! And this is what we love to do anyway. So we’re pretty happy at first. But there are all those phone calls, and the walk-ins. I always hated getting interrupted when I was working on a vehicle. But there was no one else to deal with customers.

The truth is, you can’t fix every vehicle yourself and still have time to talk to customers, prepare estimates, order parts, and keep everything organized.

Stage 2: Service Advisor

So you hire a technician and spend more of your time on the counter. You figure you’ve truly arrived as a full-time manager! But here’s a new problem you didn’t anticipate: You like your customers and want them to like you, so you tend to give away lots of stuff. There are those parking lot opinions I’ve mentioned in the past. There are those “tiny, little jobs” for friends and giving credit to everyone who comes in... You could easily sabotage your own business. When I was the service advisor, I gave away the farm!

Stage 3: Manager

So the healthiest thing you can do for your own shop is hire a professional to deal with customers while you concentrate on managing the business. Erol, I really wish I’d gotten to this role faster. Getting out of the bays was tough. Giving up the counter was even tougher! I was afraid to trust anyone else to look after my customers. But when I finally gave in and hired a service advisor, I really started to feel I’d reached “that next level.”

Stage 4: Absentee Owner

I’m not quite there yet, but I’m looking forward to this stage most of all! The business is running smoother than it ever has and I’m at the point where I can go on vacation and trust my team to run the shop by themselves. In fact, it’s hard to admit, but it sometimes runs better when I’m gone. And really, that’s the main goal of successful business builders – getting it to the point where it can run by itself.

So, you’re just entering Stage 3. Congratulations. The question is, can you afford a full-time service advisor? I would say you can’t afford to not have one! You’re not a super hero. You’ll burn out if you keep doing what you’re doing.

Now, I’m sure you have lots of fears about this next step. Will your customers be treated as well as you treat them? Will someone else be able to sell services as easily as you can? Will they know enough about cars to talk intelligently about the work you do? Will they do the paperwork properly?

Clearly you need the right person at the desk. I’ve spent a lot of time sorting all of this out, and I’ve learned to look for the four main skills of an advisor . . .

  1. Customer Service Skills

    You have to find someone who truly loves people. I tried for years to train people to like people. I even trained them to pretend they like people. It can’t be done. You have to find someone who is a people person at heart. This is a must!

  2. Selling Skills

    The problem is, people who are really great at customer service often lack selling skills. They think people will resent the pitch or be offended by it. But the best service advisors understand that selling people what they need is more important than just giving them what they want.
    Their job is to take care of the customer’s vehicle. Proper selling never sacrifices customer service, it enhances it! You don’t need someone on the desk who is just an order-taker. The good news is that selling skills can be learned.

    Even people who are not natural sales people can learn how to effectively suggest necessary work, and see it as a service to their clients.

  3. Administrative Skills

    The paperwork has to get done. I once had an advisor who was great with people but she was disorganized, never balanced her books, and couldn’t stand any paperwork. Eventually I just had to let her go.

    When I started looking for our next service advisor, I knew administration was a key skill we were looking for. What a find Val was! A real people person who understood the importance of paperwork. Yeah, we had to get her some sales training, and we had to teach her how a car works, but she caught on in no time.

  4. Technical Skills

    The person at the counter has to understand the basics of automotive repair. Without that they can’t discuss our work with customers.

    Now, I know some people think former techs make good advisors, but I’m not convinced. Technical knowledge is good, but sometimes technicians give their knowledge away for free or they get wrapped up in trying to diagnose a vehicle problem at the counter. They also tend to get too technical with the customers. They can make people feel stupid.

    So to help educate our advisors, I get my technicians to take turns conducting a weekly meeting where we explain just one aspect of automotive repair. We even put it in writing so they can refer back to it. Any time a new technology comes along, we make sure we get the service advisors up to speed before customers start asking about it.

I’m convinced that training is the key to developing a “well rounded” service advisor. As long as they come with a genuine love for people, you can manage around their weaknesses. And if you ever find someone who is an expert in all four areas, keep them happy! They’re great for your business.

Erol, I’ve developed a short test that identifies a person’s strengths and weaknesses in these four areas. I use it when I’m interviewing a service advisor, and occasionally I use it to assess existing employees. If you want it, e-mail me at thecoach@kellybennett.ca and I’ll send it to you.

- Kelly



To learn more about Kelly Bennett's Business Development Classes, visit the WORLDPAC Training Institute (WTI).

www.worldpac.com

Send Email to the WIN team

Read more!

Monday, October 13, 2008

BIZ TIP: Avoiding BURNOUT!


BIZ TIP: Avoiding BURNOUT!

by Kelly Bennett, WORLDPAC Training Institute (WTI) Business Development Instructor


In this series of fictional letters from a new shop owner to his former boss, WTI management trainer Kelly Bennett discusses basic business principles that apply to the automotive repair industry.

Avoiding BURNOUT! discusses how understanding your own personal boundaries can be the first step to creating a more positive working environment.



Dear Kelly.

Thanks for recommending The Introvert Advantage. I really enjoyed reading it and it turns out I’m far more introverted than I thought. I had everyone on my staff take the test and it should come as no surprise to you that Brian, my right-hand man, is a big time extrovert. Remember him at the Christmas party? This could explain our different approaches to work! But I’m still a little fuzzy about how this knowledge can help improve my business.

- Erol




Dear Erol:

I’ve got one word for you: burn-out. Knowing how you respond to people, and how to recharge your batteries is going to help you avoid burn-out – which is an epidemic in business, particularly in our industry.

There’s tremendous pressure to act like extroverts all the time. After all, two thirds of the population are extroverts. And, as a businessman, you probably feel like you have to be outgoing, friendly, and constantly interested in people in order to succeed in a retail business. But if that’s not who you are, that’s going to be exhausting and it’s going to cause you a lot of stress.

For example, customers often want to talk directly to me because I’m the owner of the business. Never mind that I have a perfectly capable service adviser right there at the counter, they ask for me. Well, I’ve learned how to very calmly give them a minute or two of my time. I listen to their question, but then turn to my service adviser – right in front of them – and ask if what the customer would like is possible. My customer sees that it isn’t necessary to talk directly to me. They learn that I’m just going to ask my service adviser anyway.

This is just one strategy I’ve learned to help an introvert like me survive in an extrovert world. I also get away from the shop when I need to, cloister myself in my office to get things done, escape into books or music to help recharge my batteries, and take frequent time-outs to stay fresh. But those strategies are not going to help an extrovert like Brian. (Yes, I do remember the Christmas party. Did you ever get the lamp-shade back?) In fact, extroverts operate on a whole other level, and require a very different working environment.

It might surprise you to know that, statistically speaking, extroverts tend to burn out faster, don’t live as long, have more problems with the law, and go through more jobs. Extroverts also tend to have more “approval addiction.”

They thrive on attention and validation from other people. And because other people are so critical to their own sense of self, they tend to forget how important it is to get away from it all, to relax, and unwind. They have a harder time leaving work. And when they do, they sometimes take work home with them. People like Brian need to find hobbies that will help them focus on something other than work.

I love it when employees talk about their life outside of the shop. One guy likes to talk about his volunteer firefighting training. Another guy is really into sports. We have some fitness nuts, and an amateur racer. I give them every opportunity to talk about what’s important in their lives, so it’s not always work, work, work!

Extroverts thrive on this! (We introverts tend to keep to ourselves. Different strokes for different folks.) Regardless of our temperament, we all need time to recharge our batteries in our own way. For extroverts this might mean putting the tools down for a while and talking about other stuff. For introverts, it might mean taking a quiet walk around the block.

Most people these days are running on empty. The phrase you hear from almost everyone you talk to is, “I’m so busy!” You even hear it from customers. I had a soccer mom in the other day who had to drive her three kids to 12 different sporting events that week.

Burn-out in our industry is particularly common. And the sad part is that we’re losing people before we see the best of them. Most people don’t see the early warning signs. They would be well served reading The Overload Syndrome by Dr. Richard Swenson (ISBN 1-57683-131-0). He says we need to learn to live within our limits – especially those of us who are self-employed. We have to make the right choices about how to spend our time and energy.

For extroverts, that can be particularly challenging because they’re often unaware of the need for limits or boundaries. Extroverts don’t even want to think about slowing down. They get addicted to activity. They need to be constantly moving. I think that’s why they tend to burn out faster than introverts, and why they don’t live as long on average, and why they’re more likely to go through a separation or divorce.

As a boss, you can help your employees avoid burn-out by knowing their temperament (where they fall on the introvert/extrovert continuum) and by creating a work environment that is suited to them. In a way, it’s not unlike what we do as automotive repair professionals. We’re trained to look for symptoms, diagnose the system, and affect a repair. In the same way, you need to be keeping an eye out for symptoms of burn-out among your staff.

Symptoms could include frequent irritation with friends and colleagues, outbursts of temper, withdrawal, detachment, changes in sleep pattern, increased incidence of accidents, and increased use of tranquilizers, alcohol, or cigarettes. Any unusual behavior could be the result of workplace stresses – which you can help alleviate if you know how they need to recharge their batteries.

All of this study of personalities is more than just an interest of mine. It is making me a better boss, and it’s helping me build stronger relationships with my team and with my family. At home we have two introverts and three extroverts. We now plan ‘introvert days’ as well as ‘extrovert days.’ It’s a much healthier approach to planning activities.

Thanks for going deeper in your e-mails. This stuff is harder to talk about than typical shop management issues. But I think the aftermarket ignores it at its peril. The burn-out rate is too high as it is. It’s time we figured out how to avoid it.

- Kelly



To learn more about Kelly Bennett's Business Development Classes, visit the WORLDPAC Training Institute (WTI).

Send Email to the WIN team

Read more!

Thursday, October 2, 2008

BIZ TIP: EMBRACE Your Inner Introvert!


BIZ TIP: EMBRACE Your Inner Introvert!

by Kelly Bennett, WORLDPAC Training Institute (WTI) Business Development Instructor


In this series of fictional letters from a new shop owner to his former boss, WTI management trainer Kelly Bennett discusses basic business principles that apply to the automotive repair industry.

EMBRACE Your Inner Introvert discusses how introvert and extrovert brains work differently, and the importance of knowing which one you've got!



Dear Kelly.

Yesterday I caught myself rolling my eyes at a customer’s question. She didn’t see me, thank goodness! But this was just after I yelled at the guys in the back to stop bugging me so much, and I suddenly realized how impatient I can be. I mean, I get really sick of dealing with people, and sometimes I just need a break. I guess I am not the people person I thought I was. So here’s my question. Do you think maybe I’m not cut out for this business after all? What kind of a shop owner could I be if I just want to be left alone sometimes?

-Erol





Dear Erol:

You’d be a normal shop owner, that’s what! I think you’re being a little hard on yourself, Erol. I’ve seen you in action, and you’re great with people. But everyone needs some down time. That’s normal.

Rather than trying to figure out whether you’re a ‘people person,’ I think you ought to ask yourself if you’re an introvert or an extrovert. Most people think they know where they fall on that scale. Some would be wrong.

I’m reading a book right now that is blowing my mind. It’s one of those that you wish you’d read before you went into business for yourself. It’s called The Introvert Advantage: How to Thrive in an Extrovert World, by Marti Olsen Laney. Here’s how I came to read that book. I was visiting my friends Shane and Sandy, and while I was there, Sandy casually mentioned that she thought I was an introvert. I have to tell you, Erol, I was a little offended. I’ve always thought introverts lacked confidence and social skills. I know I’m no Anthony Robbins, but I sure knew I wasn’t an introvert! Besides, research shows that shop owners tend to be ‘socializers’ and ‘drivers’ (remember that personality test I gave you a few months ago?

We like people, we like being helpful, and we like to socialize . . . a lot! I was certain that I was an extrovert, just like all of my shop owner friends. But when I asked Shane what he thought about his wife’s insult to me, he said, “Absolutely, you’re an introvert.” You could have knocked me over with a feather. And a few tests later (including one from Laney’s book in which I scored 27 out of 29) it is confirmed. I am an introvert. I’m still in shock!

But what I’ve been learning has helped me immeasurably at work. The simple fact is that introvert brains and extrovert brains work very differently. And it’s important to know which brain we’ve got so we can avoid activities that cause us to get stressed and, ultimately, to burn out.

Probably the biggest difference between introverts and extroverts is how we recharge our batteries. Extroverts do it in social situations. They get energized at parties. Introverts do it on their own.

They get drained at parties. That certainly resonated with me. Yes, I like people. And, yes, I like my customers. And I really like my team. But I can’t be around them all the time. I get exhausted after a while and I find reasons to excuse myself. I never realized I was just getting away in order to regroup and recharge.

Now it’s obvious. I’m an introvert. So how does that affect my business? Well, it won’t hurt my business – as long as I’m aware of the fact, and I limit those situations that make me uncomfortable or cause me stress. When I start to get that nagging feeling that it’s time for me to get away, I listen to it. Introverts are not like cars with an alternator that allows them to recharge their batteries while they’re going 80 km-h. And they’re not like those fancy jets which can refuel in mid-air. In their attempts to keep up with extroverts, a lot of introverts end up running on fumes.

So here are a few things I do to help me recharge:
  1. I always leave the shop for lunch. Always. I sometimes have to force myself because it feels like I’m abandoning my employees, but the change of scenery does me good. I’ve even asked the techs to put their tools down at lunchtime. Some of them get so focused they just want to finish the job and they end up eating in the bay. I don’t think that’s healthy. I’ve fixed up the lunch room so it’s a comfortable place for the technicians to hang out, and we’re building a library of DVDs for them to watch together. As for me, I’m close enough to my home that I can make a quick lunch for myself there, have a power nap and a shower, and come back to the shop completely refreshed and ready for the rest of the day.

  2. I bought some noise-canceling headsets so that when the world presses in too close, I can put on my favorite music and completely withdraw into my own world. You’d be surprised how efficient I can be, working away at my desk, with no outside distractions. Sometimes people have to wave a flag to get my attention.

  3. I use books as a recalibration tool whenever I get stressed at work. I set aside some time every day to read. It may be only 15 or 20 minutes, but books can help melt my stress away. They get me to focus on something else besides my business.

  4. I take time outs whenever I really need one. Last week I was watching my son's basketball team in the dying minutes of a very close game. With less than two minutes left on the clock, they were just a couple points down. Whenever they scored, the other team matched them. His team just couldn’t get ahead, and the players were starting to get desperate. The coach saw this and called for his last time out. My son told me later he just wanted everyone to take a breath and get focused. You know, it worked. They ended up winning by four points! There’s nothing wrong with taking a time out when you need it.
The more introverted you are, the more you need to do what I’m talking about here. Introverts need to recharge their batteries away from people . . . and it sounds like you haven’t been getting a chance to do that.

I’ve learned to embrace my inner introvert. We can do everything an extrovert can do . . . we just prefer to do it by ourselves sometimes.


- Kelly



To learn more about Kelly Bennett's Business Development Classes, visit the WORLDPAC Training Institute (WTI).

Send Email to the WIN team

Read more!