Now that you have a handle on the marketplace and broad division of customer segments (Tiers) in your business – automotive service – now you have to decide what it is that you actually sell – products or service.
“Well that should be easy enough; I sell brakes, shocks, mufflers, tires, batteries… So I sell products! Now about that ad…”
Are you really selling products? Or do you actually sell service?
“Both I guess, what is the difference?”
Products are things - commodities. They are sold by price. Bananas are products. So are milk, butter, Kellogg’s Frosted Flakes, broccoli, turkey, Coca-cola. Retailers like supermarkets sell products primarily based on price. Kroger and Giant Eagle both sell Coca-Cola in our market and the average consumer will make their buying decision based on the lowest price. There is very little value that Kroger can add to a 2 liter bottle of Sprite. Giant Eagle has the exact same 2 liter bottle of Sprite. There is no point of differentiation between the two bottles, so price (and sometimes impulse) drives the sale. (There are services that Kroger and Giant Eagle can offer as an added inducement for consumers to shop in their supermarket, but we will address that later.)
“That’s why I sell brakes for $79.99. Everyone up and down Central Avenue sells a basic brake job for the same price.”
But does every shop offer the same brake job? “Well sure… I guess so…”
One of the definitions of service according to Webster’s Dictionary is: “Service is help.” What you need to do is to define the ‘help” you offer and make sure your customers know how you are different. Why do you use Raybestos parts?
“They make the best brake parts in the industry.”
So what does that mean to your customers?
“They have fewer problems with brake noise. The pads last longer. They offer parts for almost every vehicle that is on the road. There is less brake dust covering up their rims. And I give them a life time warranty on the pads. If the pads wear out, I give then a free set. They just pay for the installation.”
How do your customers know this from an ad that just says Brake jobs starting at $79.99?
“I guess I have to tell them.”
What else is unique about your brake jobs? Let’s make a list. What is the first thing you do? •
“First I interview the customer to see why they think they are having a brake problem. What are the symptoms?
Then I do a free brake inspection using uniform diagnostic procedures.
I produce a written report showing them what I found, broken down into three categories:
- brake components that are in fine shape,
- brake components that have failed and need replacing
- and brake components that they might want to replace while we are servicing the vehicle to prevent future problems.
They all use Raybestos brakes? Their technicians are ASE certified? They stay open to 8:00pm on Thursday nights and have an early bird drop off service?
“Well not all of them. McMurray’s Auto isn’t even open for business on Saturdays.”
Think about it. The only common denominator that an average consumer can talk about is price. Look at your current advertising – Brakes Starting at $79.99 … Now what does McMurray’s Auto say? Brakes starting at $79.99 and Midas - Brakes starting at… At best there is a series of fine print disclaimers that few of us can read without our bifocals and a legal dictionary. The reason consumers are always talking about the price is that most of them don’t have any other reference point. Brakes are so complicated today the average consumer could not fix them even if they wanted to. How does ABS work? How do you get the brake warning light to reset? Even if they have the knowledge and desire to repair it themselves, they don’t have the necessary tools. A scan computer alone costs thousands of dollars. And my perception is that you and McMurray’s and Midas are all saying the same thing – our brakes are a product, not a service.
Buy your brakes here. You should be saying we solve braking problems. What other services are included with your brake job?
“We check other automotive components while we have the car up on the lift. Exhaust, tire wear, fluid leaks, shocks and struts…”
Does the customer know this?
“We tell them if we find anything wrong.”
What if you find things that are right? You should tell the customer - we checked the exhaust and it is fine. We checked your tires and they are fine, we checked…. Telling the customer that there is a lot more right with the car than wrong with the car is good business. It shows your customer that you have their interests in mind and are not one of those shops who simply look for things to sell. Later on we will talk about how this approach – good news, bad news, good news is a great way to sell. It is called “the sandwich technique”.
Add all these items to your checklist. Remember, you are selling service (help) and if you don’t tell the customer what you did, you will not receive credit for doing it! The same thing is true about “free services”. Have you ever cleaned a dirty battery terminal for a customer and not charged them? Have you ever adjusted a headlight for free? I think this is great marketing and a terrific way to add value. No charge. But don’t forget to tell them by listing the service on the invoice with the regular price ($25), discounted down to NO CHARGE. Get credit for being nice!
These gestures reinforce value over price!So you do a good job at the start – interview, inspect and report. With the addition of the new items on your checklist now you will get credit for the additional work you have always provided with your brake jobs. But you need to go the additional step and now get credit for all the service you provide with your brake service.
Look at this invoice for Mr. Kasmier. What does it say? “Front brake pads -$79.99.” What do you think Mr. Kasmier is crediting you with doing?
“Slapping on pair of brake pads…”
And he probably thinks it took about five minutes. What do you think should be on the invoice?
“Front Brake Service. Inspected front brake pads and all related brake components. Adjust and lubricate caliper slides. Inspect brake hoses and fittings. Inspected emergency parking brake. Inspected rear brake pads and all related components. Removed brake front rotors and turned them in line with factory specifications. Reinstalled front brake rotors. Installed OE specified brake pads with Lifetime Warranty on the front calipers. Road tested vehicle. $79.99.”
Take credit for everything you do – even if you don’t charge for it. Automotive service is a very complex business. A “simple” brake job is not “Replaced Front Brakes - $79.95”. What else could you offer with the brake job invoice and inspection form that would add value to your transaction?
“How about a copy of the factory scheduled maintenance form we printed out before doing the inspection?”
Perfect! Once again you are getting credit for the work you do. The manufactures maintenance schedule also guides you in making recommendations to your client about the upkeep of their vehicle. If the maintenance schedule says a service is due, show them! If it says nothing is due, show them! Remember, when you are selling service it is up to you to show the client ALL the service they are getting for their $79.
“Are we ready for the new ad now?”
Almost, now we are very close…
0 comments:
Post a Comment