Automotive Distribution Network convention offers training, expo
"The definition of insanity is doing the same thing over and over again and expecting different results." - Albert Einstein
Repair shop owners attending the 2015 Automotive Distribution Network National Convention in New Orleans learned some simple ways to increase their bottom line without much investment. The challenge, according to speaker Allen Markowitz, president of Auto Biz Solutions, is getting them to embrace new ideas in order to affect change.
“(Albert) Einstein is like my mentor. Whenever I’m getting ready to do something I ask myself, ‘Am I doing it the same way?’” Markowitz told his seminar audience of roughly 50 shop operators.His was one of 17 seminars taking place along with a 50,000-square-foot vendor exposition featuring products and services for Network members. The conference took place Feb. 26 to March 1 at the Hyatt Regency New Orleans, and drew roughly 1,300 people to the Big Easy. The event featured the expo as well as several enjoyable events, like a Mardi Gras party and Network “Speakeasy” celebration. It also contained training for service dealers and distributors looking to enhance their repair knowledge or improve their overall operations.
When the German physicist Einstein stated those insightful words referenced earlier, he certainly wasn’t thinking about auto parts sales or attracting new customers for vehicle repair service. The fact remains, however, that too many shops miss out on upselling and customer service opportunities by sticking with the same processes and business formulas year in and year out.
In his seminar, “Where will tomorrow’s sales come from?” Markowitz offered attendees three revenue-generating ideas that he feels could significantly impact annual profits – foremost is the practice of inspecting every car when they come in for service. “Think about how much time you spend per car,” he told the audience. Dealers look for ways to keep customers for life. Meanwhile the average independent repair shop, “stops selling when we’re too busy.”
He advised attendees to create a color-coded inspection sheet that is used with every vehicle. The colors signify what repairs are critical and which parts of the vehicle have been inspected and appear to be in good shape. Presenting the good and bad will help instill trust with customers, rather than just presenting vehicle problems, he says. By consistently presenting inspection sheets to customers, Markowitz believes most shops can increase their revenue by $1,000 per day.
Along with routine inspections, he encouraged the audience to push preventive maintenance by utilizing the best tool available – the owner’s manual in the glove box. Sixty-five to 75 percent of shop customers are women, and they certainly don’t want the hassles associated with a car unexpectedly breaking down. Showing factory scheduled maintenance provided by the carmakers and giving “appointment cards” the way most doctors handle future appointments, will help with close rates and increase revenue, he said.
“The things I’m bringing out today don’t require a large amount of change. They just require a little more change in how we do business,” said Markowitz.
Finally, he advised shops to examine their diagnostic times and consider ways to increase those rates to properly reflect the time and expertise required to properly repair vehicles. As vehicle technology changes technicians will encounter a greater need for new, costly tools in order to keep up with diagnostics.
“We don’t know what’s coming, but we do know it’s going to be expensive, and we have to start charging more,” he said.
Other seminars from the Network convention
In his program, “How to talk so your bank will listen,” consultant Roger Revak explained how financial institutions evaluate businesses when weighing whether or not to loan money. Revak broke down GAAP (Generally Accepted Accounting Principles) and explained to the audience why understanding GAAP is so important when speaking to lenders.
“It’s in your best interest to know GAAP because it’s the banker’s world,” said Revak. He broke down various financial tools, such as the balance sheet, cash flow statement and retained earnings, and helped attendees understand why such documents are valuable for lenders wanting a quick snapshot of a business. Knowing what a lender is looking for and showing that you thoroughly understand the financials, and are making moves to address any potential concerns, will give a lender confidence that you are properly running your business. And, therefore, they’ll be more likely to loan money when needed. “Bankers will listen to you more when you understand this,” he said.
Technicians also had a chance to attend several technical courses. Among them: Barry Hoyland presented “ECM/PCM Reflash” training, which included discussions about basic computer sequences, processor memory types and DTCs. Ryan Kooiman’s seminar “Diagnosing OBD II EVAP DTCs” talked about the challenges associated with this time consuming and difficult process. John Vandenberg provided diagnostics seminars on the Ford F-150 VVT and the Toyota Prius Hybrid.
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