Question of the Month
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There are many shops in North America that are nominated for top shop awards, and many that go unmentioned but certainly not
unnoticed. I would define a top shop as one in which it has become famous in the area by quality, integrity, relationships
and differentiation from its competitors. Its sales would depend on the size of the market they are located in and could range
from $500,000 to $3 million annually.
The challenge with being the best is that everyone wants to be the best, so it can be tough to stay on top. I have had the
pleasure of working with lots of the best of the best shop owners and here is a list of basics to focus on so you can stay
the best.
Refocus on Relationships
There is no one thing that you can do to become the No. 1 top shop.
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The very best shops not only have service advisors who can sell, but they are great at building relationships. Front line
turnover can destroy a top shop's reputation, as can an advisor interested only in the almighty dollar. Remembering customers'
names, family members and pets are the mark of a top shop that does not need tons of money spent on acquisition advertising.
It's uncovering commonalities between the customer and the service advisor is another strength in top shop front lines. It's
making sure the techs take the time to complete a detailed courtesy check so we don't leave mom stranded because she didn't
know what she didn't know. Then it's setting their next appointment and reminding them constantly on when and how to maintain
their car. Remember, they don't care how much you know until they know how much you care.
Top shops net 20 to 30%
I believe profits are much more important than gross sales. I have worked with $2 and $3 million shops that are not very profitable
when we begin the re-engineering journey. A top shop should be netting 20 percent to 30 percent regardless of sales if the
financial model is correct for the staffing model.
Many former top shops slip because they have to spend too much money to keep the sales up and the shop fed because their marketing
or staff begins slipping backwards. It is very common for businesses as they mature to lose bottom line profit because we
just keep adding overhead to stay the best. The answer is to re-engineer the financial, business, staffing and advertising
models to make money like they use to do. You won't stay a top shop very long without bottom line profit.
If you want the best employees, you have to have the best benefits. If you want the best efficiency, you need the best management
money can buy. If you want state-of-the-art equipment and facilities, it takes money. More important, you need plenty of cash
in savings so you don't exhibit stress to your associates and you make them feel secure. Remember, your people don't leave
usually for the money; it's your management and security that are most important today.
