Blog post
Strangers paid for your best year
Seventy-four percent of his labour dollars came from people who had never been to the shop before. He read it twice and said it sounded like a good number.
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Seventy-four percent.
Eight-bay shop on the south end of Akron, Wednesday afternoon, rain coming sideways across the lot. Twenty-three years on that corner. His father's photograph hangs by the coffee pot, and half the key tags behind the counter belong to cars he has known since they were new.
I ask for two things before I drive out: three years of monthly revenue, and every repair order in the shop system. The export is where I spend the first morning. Most owners have never opened theirs.
Seventy-four percent of last year's labour dollars came from people who had never set foot in the place before. In year twenty-three.
I turned the laptop around on the counter. He read it twice, looked out at the lot, and said, "That sounds like a good number."
A shop that meets everybody once
His books were not lying to him. Revenue was up a shade on the year before, every bay was turning, and his average ticket had climbed because cars have more in them than they used to. A bigger ticket sold to fewer people reads exactly like growth on a monthly report. It reads that way for about three years.
An ordinary week in that shop looked fine from where he stood. A man was told Tuesday at four, because the advisor wanted to hand him good news, and the part was still sitting on a shelf in Twinsburg. Nobody called. The customer called at ten to five. On Saturday a pickup came back for a rattle the shop had already been paid to cure, and a tech gave it two hours for nothing while the owner was at his daughter's game. It got handled. It never got written down anywhere.
None of that arrives at an owner as a complaint. It arrives as a slightly odd week. Some signs it is running in your business:
You could not say today how many of last year's customers have been back, and no report in the building will tell you.
You have a star rating on the internet and no idea what the people who never wrote one thought of you.
Somebody complained three weeks ago, it got settled at the counter, and there is nowhere a second person could go to learn it happened.
When a job goes wrong, what happens next depends entirely on which of your people is standing there.
Work comes back for a second visit often enough that everyone expects it, and nobody counts it.
Your salesman promises the date that closes the job, and your floor eats it.
Busy is the easiest answer in the building
He had a word for it. Slammed. The shop was slammed, it had been slammed for three years running, and a man who is slammed does not go looking for the people who quietly stopped coming. Busy is the most comfortable explanation in business. It asks nothing of you today and it sounds like success while you are saying it.
So he did what an owner does with a volume story. He bought a postcard mailer against a purchased list and put an oil change special on it. New first timers arrive, meet the same counter that emptied the file, and leave the same way. He was paying retail to walk strangers through the experience that lost him the last batch.
Past the mailer sits a tidier version of the same error. Retention gets named as the problem, so a retention product gets bought. A punch card, an automated text asking for five stars, a satisfaction survey that fires an hour after pickup into a folder nobody opens. Software will ask the question. Software will not call a man at four o'clock to tell him the part did not come.
Underneath sits a gap between two people. Your advisor makes the promise because a promise is what closes the sale. Your floor keeps it, or does not, with parts and lifts and a tech who called off. Nobody owns the two hours in between, which is exactly where a customer decides quietly whether you are an outfit that tells him the truth. Nothing in that shop had ever recorded one of those windows. And the owner had trained his people to swallow them, without ever saying so, by going short whenever a small problem reached his desk.
The bay was sold once already
Seventy tickets in a normal week, four of them cars back for something the shop had been paid to put right. Call it two tech hours each once it has been diagnosed, pulled apart again and rebuilt. His techs run thirty-three dollars an hour, which becomes forty-one and change after payroll taxes, insurance and comp, the twenty-seven percent that never shows on a pay stub. Double the hours, because you lose the hour and you also lose the paying job that hour would have held.
4 comebacks a week, 2 tech hours each | 8 hours |
Doubled, because the hour is gone and so is the job it would have held | 16 hours |
$33 an hour, grossed up 27 percent to true employer cost | $41.91 |
Parts at $38 a comeback, counted twice because he bought them twice | $304 |
Loaner fuel and the odd tow | $85 |
Weekly | $1,060 |
A working year of fifty weeks | $53,000 a year |
Then the account he was proudest of. A used car lot two exits down sends eleven cars a week for reconditioning, a little over two hours apiece, at eighty-eight dollars an hour against his posted one thirty-five. Twenty-four bay hours a week at forty-seven dollars under his own rate runs to about $56,900 a year, and he had never once put a pencil to it. When we did, he defended the account, because losing it would make the shop look slow.
Eight bays and five techs is the entire company. Everything he sells has to fit through it. Roughly a fifth of that floor went to work he had already done once or agreed to do cheap, so his ceiling sat well below where he thought it did. Advertising for more strangers pushes harder against a floor that is already full. He does not have a selling problem.
One name, one phone call, no coupon
Export your customer list with two columns on it: lifetime dollars and last visit date. Ten minutes in any shop system built this century. Sort by lifetime dollars and read down until you reach the first name that has not been in for twelve months.
That is your call. Skip the angry ones. You want the man who paid you the most and then went quiet, because he chose you over and over and his answer is worth more than anybody else's.
Call him yourself, from your own phone, mid morning midweek. Give your name and the shop's, then something close to this: you had the Silverado in with us four or five times, we have not seen you in about fourteen months, and I am not selling you anything. I want to know what happened. Then stop talking. The silence will get long before he answers, and the answer sits on the other side of it.
He will not tell you your prices were high. He will tell you about one Tuesday.
Two rules, and both of them cost you some pride. Do not hand this to your service advisor, who was standing there when it happened and will soften the question until the customer softens the answer. And do not offer anything, at any point. A discount ends the conversation early and buys you a polite lie. Write down what the man says in his own words, on paper, with the date beside it.
Leave that sheet on the counter afterwards. Every complaint gets a line on it from now on: date, customer, what was promised, what happened instead. Then give them a number. Anybody at your counter can spend up to two hundred and fifty dollars putting something right without finding you first. Say it out loud and write it on the wall, because an unwritten limit is zero and they know it. Use the phone on the good ones too. The customer whose week went right will never think to write you a review on his own, and one sentence from the tech who did the work, asked the same way every time, is the whole process.
What you stop hearing after six weeks
The absences come first. The ten to five phone call stops. Saturday stops having a car in a bay that nobody is being paid for. You stop learning about a bad job three weeks late from somebody at church. Your advisor stops working out whether he is allowed to fix something, which was most of the delay all along.
The Akron shop made one call, then nine more inside a month. Six of them named a promised time missed with no phone call. Three booked an appointment while he still had them on the line. He rewrote the used car lot's rate at the next renewal and kept the account.
Nobody quits a repair shop to your face. He books somewhere else next time, and the only trace is a name that stops appearing in a report you were never running. That is how this runs for years inside a business that feels busy the whole way through. The people in that file had nothing against him. Most of them liked him. They each had one bad Tuesday nobody in the building ever heard about.
Customer Retention and Customer Experience is ten statements in the Business Check-in, and this article touches most of them. The remaining ones look at the same leak from angles you have not checked, and the check-in is free and takes about ten minutes.
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