Question

Topic: Strategy

How To Increase Sales Of An Automotive Shop?

Posted by Anonymous on 12/8/2009 at 9:50 AM ET 250 Points
Hello,

I own an automotive shop with some partners. We acquired the shop from it's previous owners since it was going out of hand already, sales are low and accounts payables remain unpaid.

To cut it short we acquired everything including the problems that they had. After 1 and a half year of opperating we manage to fixed most of the problems and settled all APs. But lately sales are low, overheads are increasing (rent, bills etc), and new APs are maturing.

We tried to offer new services like carwash, autodetailing, autosupply and accessories retailing but to no avail. Only the carwash and autodetailing attracted new clients but the margin is still low for us to improve our sales not to mention a new capital was invested for each new service.

How can we increase our sales and lessen our expenses while introducing our new services?

-some info about the shop-
-competetion is stiff, the area is full of competitors that offer the same services but not all, since we are the only ones who offers such complete package
-previous clients were mostly issurance companies and corporate accounts
-we also offer painting services
-employees used to be 74, now we are down to 20 to lessen overhead
-Building is old, but could not renovate due to lack of fund, but minor repairs were made already to improve the image of the shop
-marketing has been greatly affected due to lack of funds


We would greatly appreciate any help. Thank you
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RESPONSES

  • Posted by Gary Bloomer on 12/8/2009 at 10:07 AM Accepted
    Dear viktor_miyake,

    How about capitalizing on your knowledge, expertise, and your evident wealth of understanding?

    The guys from NPR's "Car Talk" might be worth modeling here: what they do on radio, could you do on video, on your website, or in your shop?

    How about engine demystification classes for people who have no clue? Discounted services for brakes with free detailing, or some combination of annual and pre-paid service packages?

    You might find this book helpful.

    www.amazon.com/Automotive-Service-Marketing-Handley/dp/092957401X

    I hope this helps. Good luck to you.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted by Jay Hamilton-Roth on 12/8/2009 at 11:04 AM Accepted
    Do your existing customers LOVE you? If so, try a Yelp (https://www.yelp.com/) campaign (or another popular social media). Have your customers tell the world how incredible you are, how fairly priced, etc.

    Why do your existing customers choose you? What do you provide that your competition doesn't? It could be something intangible, it could be quick appointments, etc. But whatever makes you unique enough to have people pick you, focus on that. Master this. Tell everyone that's your specialty.

    Finally, if you were to start this business from scratch today, what would you do differently? Why? Why not start converting your "old" business to your dream "new" business incrementally. If you never start, you'll never arrive.
  • Posted on 12/9/2009 at 11:36 AM Accepted
    Looking for the least expensive marketing solutions due to lack of funds? Here are a few ideas, let me know if you appreciate any and feel free to contact me by email with further questions.

    Be visible – When people look for the solution you provide, be visible in the utilized media. I have seen local listings on Yahoo, MSN, Google search engines are a GREAT place to start. Get yourself some inexpensive business cards and pass them out to anyone and everyone you know. Think along these lines and spend some focused time on this solution.

    Incentives – Along the same lines as Gary’s remarks, creatively use your products and services to incite interest. Here are a few ideas:
    Free Oil change with a bigger job
    Free 15-point check with every service
    During Christmas buy trees in bulk and give to high-margin jobs
    Offer free inspections for brakes, AC or any other service (Make sure people know. Try an inexpensive banner)

    Cash Referral Program – It’s like hiring a sales team. In most industries and ESPECIALLY in the auto repair industry referrals are the #1 way new customers look for you. Give them some motivation.

    Product – One of the least expensive ways to rejuvenate your business is to do a self evaluation and enhance the customer experience. This will get customers talking also and send more prospects your way.

    Repeat Business – Cheaper to keep ‘em. With a properly maintained customer database you have all you need to initiate a long-term customer program that will increase repeat business throughout the year on maintenance.
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