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By Joe Marconi in Joe's Blog5 commentsI recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching hosts a conversation with Coach Al and Kevin, a service manager, about the importance of team culture in an auto repair shop. They share their experiences with team-building activities like axe throwing, camping trips, and Christmas parties, emphasizing how these events enhance employee relationships and work dynamics. The discussion also covers their thoughtful approach to hiring and the necessity of appreciating staff. Coach Chris admires their methods and reflects on the value of investing in employees, while Coach Al highlights the inclusion of these practices in their hiring process to attract and retain a committed workforce.
Culture and team building exercises (00:01:00) Discussion about the importance of culture and team building exercises in the auto repair shop industry.
Creating a positive culture (00:02:50) Description of the strong chemistry and positive culture in the shop, emphasizing the importance of mutual support and camaraderie among the employees.
Hiring process and culture fit (00:03:54) Insights into the hiring process, including assessing candidates for their skills and cultural fit through interviews and observations.
Annual Christmas party and other events (00:06:02) Details about the annual Christmas party and other team-building events organized throughout the year, such as axe throwing and other outings.
Christmas party preparations and employee appreciation (00:08:00) Discussion about the process of selecting personalized gifts for employees, the budgeting for the party, and the significance of showing employee appreciation.
Appreciating employees through events (00:11:15) Explanation of the financial investment in employee appreciation events, such as the Christmas party, as a reflection of the shop's commitment to valuing and retaining great employees.
Camping trip tradition (00:16:24) Origins and evolution of the annual camping trip, including the planning process, activities, and the inclusive nature of the event for employees and their families.
Inclusive camping trip and its cost (00:19:07) Inclusion of employees' families in the camping trip and an overview of the costs associated with organizing the event.
Maintaining order during the camping trip (00:20:32) Anecdote about managing noise levels and potential disruptions during the camping trip, highlighting the challenges of organizing a large group event in a campground setting.
Camping Trip Planning (00:21:57) Discussion on the timing and survey process for the annual camping trip organized for employees.
Employee Bonding (00:23:50) Kevin emphasizes the positive impact of team-building events on employee relationships and work dynamics.
Investing in Employees (00:25:27) The importance of investing in employees and showing appreciation for their efforts is highlighted.
Recruitment Strategy (00:26:05) Incorporating team-building events into recruitment discussions to emphasize employee appreciation and engagement.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
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By Changing The Industry
The Basics of Owning An Auto Repair Shop - Balancing GP per Hour and Productivity
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JustTheBest
Joe, I agree with you totally! So many shop owners I speak to forget about the “relationship” and “retention” issues.
In fact, in this video, I talked about the 3 things shop owners need to focus on in 2020.
But what I feel (and see so many times) is that shop owners ignore are the facts… and the fact is that when you’re dealing with a new customer, you have less than 27% chance of them returning to you for a second visit. And that ONLY happens if they have an excellent customer experience!
That 27% change is not very good - yet shop owners still call them “THEIR” customer. You don’t own the customer.
In total, most of the car count issues I see would be solved if shop owners focus on RETAINING the customer’s they’ve got - and doing that generates more referrals, more car count and it just keeps snowballing.
Hope this helps!
Matthew
"The Car Count FIxer"
P.S.: Watch Marketing your shop in 2020
P.P.P.: You ONLY have a 27% chance of new customers returning
P.P.P.S.: Don't ignore your customer - Start texting customers before this time tomorrow - and it's FREE!
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dfrisby
Or did we just fix their car to well? Most cars don't need repairs every month. Other than routine maintenance it's not uncommon for cars to go years without the need of any major repairs. I believe at least in our area, alot of customers perform their basic maintenance themselves, and even basic repairs like brake jobs. We end up with the more difficult jobs and the jobs requiring expensive diagnostic equipment. I'm not concerned when I don't see a customer for several months. I'm confident our service and reputation has made them a customer for life. I'd be more concerned about a customer that has the same vehicle visiting us multiple times in one month with different concerns we hadn't spotted and discussed prior. If they have to bring the same car in week after week or even every month for yet another repair, eventually they are going to shop elsewhere hoping for a better result. Our customer retention is good, but because they don't need service every week, new customers are necessary every day.
Of course customer retention is important. But I know my percentage of new customers becoming loyal returning customers is also important, and I'm pretty sure it's alot higher than 27%. We try to build a relationship with every customer that comes through our door.
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JustTheBest
dfrisby, Thanks for your input. You may have misunderstood what the 27% was about. That's the average rate of a NEW CUSTOMER returning to you. In fact, I just reviewed a customer list from a new client gasping for car count. Almost 2,000 customer on the list. An overwhelming majority (like 85% or more) had the same start/end date. In other words, first service and last service was the same. If there was some attention to customer retention, he wouldn't be paying me to fix it.
Matthew
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dfrisby
I am certainly in a different situation of many shops. My shop is 1 of 3 businesses in our metro area. We are an extremely small town. The two larger towns in our area are 20 miles east or 20 miles west of here. I couldn't survive on just my local market area so customer retention has always been my highest priority. I have customers from 150 miles away (the twin cities) that are now loyal customers returning for work on a regular basis. EVERY customer should be treated as the MOST important customer. We try hard to provide that as without them we couldn't be here. Because of our loyal customers we have been able to expand our services year after year. I agree with you. I believe I do understand and expect in most areas where there is a large pool of NEW customers, many shop owners don't do everything possible for retention. Even here every month shops are folding because they aren't profitable. They probably would be profitable with better customer retention. My question would be where is that 27% number coming from? Customers that were here a year ago that came again within 12 months? New customers from last week that haven't been back yet? I just watched the video referring to the 27%, and I agree with the theory of what you are saying. I know alot of the customers I get tell me horror stories of shops they have been to. I am thinking that my business doesn't fit the statistics just because I already put so much emphasis into building a long standing relationship with EVERY customer that comes through my door.
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