One of the main principles we need to grasp to answer that question is this. People still have the same basic needs when the economy is slow as they do when business is good. Food, clothing, shelter and in today's busy world, transportation. When things are good, we tend to buy new things to replace our old, slightly used stuff. But when times are tough, we look for ways to save money without giving up our way of life. So we look for ways to save with things like coupons, carpooling and fixing the things we have instead of replacing them with the latest and greatest. Now that we have locked that little piece of information away, how can we use it? Well, here are a few statistics that might suprise you.
The average length of vehicle ownership in 2002 was 38 months. By the end of 2011, that average length of vehicle ownership was over 57 months. We as a society are now keeping our cars and trucks for a year and a half longer than we did just 10 years ago. Now I know I am preaching to the choir, but any car over 3-4 years old needs more maintenance and repair than a 1 year old vehicle.
So, what can we do with this information?
First, let's be sure we offer competitive pricing compared to other shops (especially dealers) on scheduled maintenance, brakes, tires and oil changes. These are items that every vehicle needs and they are substantially less than the price of a new car or a new engine. They also provide excellent opportunities to earn customer trust and loyalty.
Secondly, contact a local newspaper or radio station and offer a free service valued at say $200.00 to a needy person or family in the area. For example, you could offer 1 free brake job per month to help those in need or perhaps a military family. Now, before you start counting the cost, consider the revenue. You will get free advertising on radio and newspaper with something that is community centered and promoted by the station. Have them come out once a month to interview the customer you are helping and tell them why you are doing it. A brake job on the average car won't cost a shop more than say $50.00, and you can't buy the kind of press and community goodwill.
Lastly, to make it during the slow times, you need to be lean and clean. By this I mean that your shop needs to run at peak efficiency. Not a drop of oil wasted, not an extra tool bought that you don't truly need and keep your monthly costs under control. Consider everything from your shop management software to your dinner's out, to personal salary. Look hard at everything and make sure you aren't spending a dime that you don't need to.
There is a quote I try to live by from fairly famous trainer, speaker and entrepreneur, Zig Ziglar. It goes like this: "You will only get what you want in life when you help enough other people get what they want".
Good luck and keep the wheels spinning!
Chris Boshaw is the owner of Boss Software, the makers of Shop Boss Pro, one of the first web-based Shop Management Systems. To do their part, Boss Software offers a low-cost version of their program for small shops and prices the software to help keep a shop in business.
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