How to Grow your Tyre & Mechanical Store (Automotive Aftermarket Business Ideas)
Here is a big list of Ten Business Growth Ideas for an Automotive Aftermarket Business and lots of 1% improvement ideas.
1.Focus on delivering a Great Customer Experience
- Regularly Mystery Shop your store
- Customer Handover System – explain the Value of the work you’ve done
- Wow them! – wash their wheels and windows
- Run Events like Ladies Nights / P platers or a 4WD day
- Offer Great Coffee/Voucher & Free wifi
- Offer Loaner Cars or Customer Pick Up
- Extend Trading Hours – Twilight or weekends
- Clean up the Workshop – A Neat & Tidy Workshop & Staff sells more
- Be Female Friendly – a genuine focus and effort is required
- Develop a VIP loyalty Club – warranty & rotations
2. Improve your Inbound Phone Sales System
- Get their name, get their number, call them back if you can’t help now
- Use a customised Phone Script
- Listen to your own recorded inbound calls
- Competitor Analysis – Call them up and hear them
- Get the friendliest person on the phone
- Hire a salesperson to work front counter
- ASK – “Have you been here before?”
- ASK – “Have you been shopping around?”
- ASK – “What prices have you got so far?”
- ASK – “When would you like to book that in?”
3.Pricing Review & GP Margin Focus
- Mantra – “We are too CHEAP, our prices are too LOW and You discount too MUCH!”
- Focus on your GP margin – (36-44% is common) look at it regularly and watch it grow
- If your sales volume is up put PRICES UP
- If sales volume is down – fix your customer service, sales and marketing systems
- Handle price objections – Blame your accountant, talk about the price of stamps,
- Prices should go up every six months
- Services like wheel alignments can go up and add extra services like battery fitting fee
4. Set Staff Targets and use Incentives
- Get your staff interested in your numbers – make them visual
- Set some agreed targets and counts for sales
- Run a 12 week staff incentive program on a simple sale like WAs, Batteries or Nitrogen.
- Pay $ into a bonus pool for every one sold and $$ for every one sold above a target based on the same month last year.
- Must be a Small Win/Big Win incentive not win/lose
- The sales count needs to be displayed
- The handing out of the monthly bonus pool needs to be a positive group experience
- Add variety – Change the incentive program every 12 weeks
5. Owner Time & Effort on High Value jobs
- Spend more time doing the higher dollar value tasks – mechanical $, Sales$$ or Managing $$$
- Improving Your team Fitness and Health = a positive attitude
- Managing people – recruiting, coaching, training, systems & processes
- Learn to Analyse Numbers – reports, bank, P&L
- Improve relationships with your Alliances & Suppliers
- Learn Dealmaking Skills – people, businesses, property
- Learn to delegate and get help You don’t have to do it all yourself, just get it done well
6. Focus on Store Reports & Numbers (WSS and Accounting software)
- Learn to make the most of your Workshop Software system like Costar
- Attend Workshop Software training and ask others
- Collect more useful Customer Data
- Manage your debtors (accounts)
- Do more SMS Reminders from your software
- Focus on useful reports on chargeable labour, margins, stock sales etc
7. Active Stock & Margin Managing – Seek Rebates!
- Spread the love – lots of supplier deals
- Monitor your stock reports regularly
- Work with suppliers to get great deals
- Maximise margins on your best deal stock
- Maximise your stock turns / Reduce OOS
- Get the most from your delivery schedules
8. Hire a Great Salesperson (preferably Female!)
A great salesperson at the front counter can sell two to three times more than a grumpy EXPERT.
- Awesome Customer experience
- Convert more callers into customers
- Get more repeat and referral business
- A car salesman or friendly female can be great
- They run on appreciation and incentive
9. Get help from a Business Coach/Mentor/HR
- You need someone to keep you on track and accountable, an HR advisor, hire a local business coach and get a mentor.
10.Talk to your Accountant more often
Meet with your accountant often to review your Profit & Loss (P&L), understand your Assets and Liabilities Statement (A&L) and your Cashflow.
Ask for their advice and implement it. Update your Wills too.
Plan for tax, super and future. Benchmark your Automotive Business against others.
Best money you’ll ever spend!
IMPLEMENTING THESE 1% IDEAS TO GROW YOUR AUTOMOTIVE BUSINESS
UK Sports Coach Sir Dave Brailsford has had remarkable success with the British Cycling Team and Team Sky using aggregated incremental gains – lots of small improvements to get amazing results.
You’ll find the same things works for you – make lots of 1% improvements and see big results.
ABOUT THE BLOG AUTHOR – David Staughton CSP
David Staughton is an Award-winning Certified Speaking Professional (CSP), past board member of Professional Speakers Australia and advisor to a large Australian speakers bureau.
David is also a successful serial entrepreneur and an expert on Future-Proofing your Business
Dave’s most popular small business TOPICS include:
- Future-Proofing your Business – Embracing Change
- Living a Better Life by Working Smarter
- Building your Loyal “A Team” of Engaged Leaders
- Loving Your Front Line – Building a Culture of Service & Sales
- Making More All Year Round – Seasonal Success
- Find the Hidden Value in your Business
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