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• The good, the bad and the ugly: Third party work providers  

  A hot topic within the industry, and one that I cover in my business courses, is online service providers;  third-party booking sites or aggregators – or whatever you happen to call them. Let’s recognise what they are, and examine why these aggregators exist in the first place.  
      
  Think from a consumer’s perspective. Chances are that when you go on holiday, you reserve a hotel through a third-party booking site, for example, Expedia or Hotels.com. My guess is that this is exactly what you do because in today’s fast-paced, tech-savvy world, third-party booking sites have become the norm. Consumers are driven by price point and ease, both of which are met through a wide variety of online service providers.
      
  While this seems like a win-win situation, there is the obvious downside of enabling consumers to be disloyal. In the age of e-shots and social media, deals fall into consumers’ laps, and it’s only natural to take the better deal over brand loyalty.
      
  Most garages don’t have the necessary skills to create such platforms, and thus create the resulting footfall. Fortunately for us, these online service providers have identified our repair sector as another service industry that could become part of the digital revolution.
  
  Digitally minded
  The digital world is here to stay and we have to accept that. It’s a good idea to take a step back and examine who our future customers will be in this world.
      
  When I look at my children, 18, 21 and 23 years old, I see the next generation of customers, not the 45 to 55-plus who have been visiting our garages over the last couple of decades. My daughters purchase at least 90% of their clothes online, which is astonishing to me. We in the garage sector have to engage with these digitally-minded youngsters.
      
  Like all other service businesses, there is the good, the bad and the ugly. I was extremely critical of these aggregators when they first appeared in our sector. To be honest, I still am. I don’t agree with many of the practices currently used by these sites. That being said, there are advantages to partnering up with one. The main one being access to new customers.
      
  For a consumer, the first and most obvious advantage is price, and this is where a major problem exists for me. Prices found on third-party sites are often less expensive than the listed prices a garage may advertise. For those who have attended my courses, you would have heard me say on many occasions, these ‘come and get me’ prices do very little to aid our bottom line in an already highly competitive market. However, us garage owners aren’t always squeaky clean when it comes to pricing, are we?
  
  Pricing
  For example, I often see adverts for a ‘Service & MOT - £99.00’ or something very similar. How many of you have seen a MOT price go up? I certainly haven’t. Most prices advertised are anything from £19.99 to £24.99. This comes down to what we include within a service. If I asked 10 garages owners what they would include, they would give me at least five different versions. So, if we can’t decide what a service consists of, how do we expect the public to do so? Can we really blame online service providers for taking advantage of this inconsistency?
      
  These websites are here to stay. Let’s stop criticising them all and try to work with the better ones to make them understand our businesses a little better. That way everyone can benefit.
      
  If I were to open up a garage again, there would be a couple of areas which would have to be certainties in order for me to consider signing up to a third-party booking provider. Firstly, I would need control of the customer from start to finish. Secondly, I would have to be in control of the parts buying. As a compromise, I would accept a small fee to get access to a new customer.
      
  At the end of the day, however, I would prefer to focus on the overall service levels provided at my garage, providing a customer experience that is unmatched in the local area. I would put more resource and energy into a social media presence and website offering, as this is an area that garages regularly struggle with. There are many decent, better qualified companies around that can provide specific digital services, so make use of them.
  
  Direct route
  It has become more important than ever that your website is responsive, has simple and intuitive navigation, and enables customers to book quickly and securely. A good website will increase enquires and bookings. It will direct users to the information they want to find and guide them through a simple conversion process. Social media should also be taken into consideration, as it is one of the easiest and most direct routes to engage with customers. You must ensure your brand is active within the channels your customers are using.
      
  In the end, what I am trying to get across is that before we look to attack these online service providers, we need to realise that these platforms exist because we have not kept up with the digital revolution. These aggregators have simply taken advantage of our industry, and given that they are unlikely to be going anywhere, should we really shun them before truly understanding why they are here in the first place?

• The Garage Inspector - Training dates 

  The Garage Inspector a.k.a industry consultant Andy Savva has announced a number of one-day business training course dates.

• Skills, bills and jaw-aches  

  I knew starting a business would never prove easy but we don’t get anywhere in life without taking a risk or two. Having been in the industry for a few years now I have learnt that the two main attributes a successful car repair workshop needs is the skill to diagnose and repair and the ability to communicate with their customers.
      
  Modern car repair facilities have seen a dramatic change in recent years with the huge advancements in computer-related faults. The main tool of repair has seen the demise of the hammer and the growth of the diagnostics fault reader. I am a hands-on mechanic and much prefer older vehicles where I don’t need to locate the OBD port before the bonnet release, but I have to move with the times if I am to succeed as a business and that is why I am looking at hybrid servicing and trying to tap into that market. It is tough for me to admit that as I love working on classics and I will still have a part of the workshop for the golden oldies but it is hard to ignore the impact hybrid and electric vehicles are starting to have on the repair market.
  
  Communication
  The car repair industry has a pretty bad reputation – lets be honest. My female friends and family dread having to buy a car or go to a garage. Communication for me is so important, as with any business it is crucial that you are able to talk to customers and listen to their concerns without belittling them. The issue with car repairs is that it is a complicated process that is difficult to explain in layman’s terms and which can alienate an individual if they don’t understand. There is also the problem of distrust. If a customer doesn’t understand the problem and how you are able to fix it you risk confusion and doubt. There are so many horror stories of people being fleeced and conned as they don’t understand how a car works that every customer feels like you are going to do the same, it takes a long time to earn a good reputation and just one bad experience to send your business crashing down.
  
  I always like to explain as simply as possible with the work I am doing, I keep the broken part so that I can show the customer what I have replaced and what their hard earned cash has been spent on, I also take pictures and probably over explain everything. It is important for my business that I gain a good reputation as word of mouth is my main advertisement. As busy as a car workshop is always make time to have a friendly chat with your customers, especially if they have a trade, you never know when you might need a plumber!
  
  So, this month has been busy, productive, stressful and hot (I am writing this in July) but the world of car repair stands still for no-one.
  
  

• Dealing with customer complaints  

  Running any business, and perhaps more so a service business like an independent garage, you have to learn to recognise there are different types of customers with different expectations.    
      
  How we deal and adapt our services, the customer journey to meet and exceed these expectations are essential if we are going to succeed in having a healthy profitable business. This function must be adopted by everyone in your garage regardless of size.
      
  Occasionally however, we are faced with challenging customers who complain, usually in a passive aggressive manner. These customers feel they have a reason to be upset. I always used to say to my team at Brunswick Garage, that there will always be a small percentage of customers that we will never be able to please, and importantly we must not let these handful of customers taint our view of all customers. When you find yourself having to deal with a disgruntled customer, remembering a few simple techniques can help to defuse the situation. Both parties being upset and defensive will not amount to anything positive.
  
  Listen
  In my experience running independent garages, I came to the realisation that in virtually every case of an unhappy customer, all that was needed to resolve the customer concern was to listen to the customer, or recognise actually they weren’t being listened to.
      
  The customer isn’t always right, but it’s not always okay to tell them that, sometimes you have to act as if they are right. Active listening, eye contact, nodding your head in agreement, being on the same level with them, expressing empathy, and relating to how the customer is feeling can be incredibly helpful. Remember to place yourself in the customer’s position or frame of mind and never patronise a customer or look for excuses. We are working in an industry where many aspects of the customer journey have to come together from the initial phone call to returning the customers vehicle keys, so we have to accept that sometimes things go wrong however much we try to avoid mistakes.
  
  Rapport
  Once you have been able to establish some rapport, you may find a mutually agreeable resolution to the problem, and you must do whatever you can to achieve this outcome. Explain to the customer what you are going to do to help the situation. It could be engaging the customer in a test drive to better understand the complaint, admitting the garage made a mistake, or if possible, offering the customer a lift back home, work or a loan vehicle while you resolve their issue. You must assure at all times the customer feels that you are truly trying your best to resolve their concern and provide them with the least convenience as possible.
      
  Research indicates that customers prefer the person they are speaking with to instantly solve their problem. However sometimes complaints have to be moved up the chain of command, but make sure they don’t add to the customer's frustration. So, wherever possible, resolve the issue yourself. This has the added advantage of demonstrating to those senior to you that you are willing to manage difficult situations yourself without resorting to escalation.
      
  If you really can’t solve the customers concerns, take ownership of the issue and ensure that the complaint is effectively escalated and that you follow up to see what the outcome is.
      
  It’s also worth mentioning that if you say you are going to do something, you should always do it. Don’t be tempted to tell customers that someone will get in touch with them in an hour when they might not get a call for a few hours. The customer won’t thank you for it in the long run. Always be sure you can meet the promise you make.
  
  Perspective
  Many of us have worked in the automotive sector for so long we forget what it is like to bring our vehicle for repair. Knowing what your competition is doing can also pay dividends in other ways too. It can help you set yourself apart by creating a business experience, an atmosphere that is different from any other garage locally and far beyond.
      
  Keeping perspective when it comes to the customer experience will help you to create a positive customer experience and maintain a solid customer base. At Brunswick Garage we were of course never happy to receive complaints, however we used it as a prompt to better our service and if a customer made the effort to write or email us with a concern, we displayed their comments in reception with the thank you letters. We wanted to show our customers that we were not perfect, but also show them we took complaints very seriously and we always aimed at achieving a positive outcome. Learning to handle challenging customers will build respect for your business and ultimately result in higher customer retention and profits.
  
  Positive/negative     
  When we receive complaints, we often look upon them in a negative way. However, complaints can be really useful to any garage and although it doesn’t feel like it at the time, the complaint is extremely positive in that it helps highlight problems with our service and procedures.
      
  The alternative to receiving customer complaints is not receiving them and carrying on just the way we are, oblivious the negative impact our actions are having on customers who perhaps won’t return or will be complaining to their friends rather than to us. This is extremely damaging as we never get the chance to put right the errors that we don’t hear about. It’s a bit of a cliché, but complaints really are a gift.
   
  
  
  
  
  
  
  
  

• Connecting to tomorrow’s lean workshop 

  In a previous article, I had written about the fourth industrial revolution, but I suspect that this may not have been the most threatening topic that you were thinking about concerning your day-to-day workshop business – the business of diagnosing and repairing cars, using a range of workshop equipment and agreeing ‘partnership’ relationships for the technical data and replacement spare parts.
  
  The way that you work may have evolved over the years, mainly due to the increasing vehicle technology, but the basic principle has remained the same. You have customers who choose to come to you due to the good service and competitive pricing that you provide. However, the world of vehicle repair is changing and if you do not adapt, you will die. Unlike previous industrial revolutions, the pace of change is now much faster. So how is this going to impact the aftermarket?
  
  Approach
  The ‘internet of things’ (IOT) will change the approach to diagnostics, service and repair of vehicles, but also the way that the workshop equipment will be connected, the way that you handle your customers’ data and the way that you exchange data outside of the workshop, both as a consumer of data, but also as a data provider in data trading eco systems. All this will change the way that you do business. This might all sound like some science fiction concept, but this is already happening today with many vehicle manufacturers and their associated main dealer workshops. If the aftermarket does not start to develop the same approach and service offers, then it will not be able to compete.
      
  However, to understand this better, let’s start with today’s ‘classical business model’ and then see what will change. Today it all starts with your ability to directly communicate with both your customer and with their vehicle and (for the more difficult jobs once that vehicle is in the workshop) your ability to offer a competitive quotation.
      
  Once the vehicle is in your workshop, the diagnostic work or the replacement parts are identified, the parts ordered and the ‘complete repair process’ is conducted. However, there are three fundamental aspects to ensure that this process can be fulfilled – firstly, being in direct contact with the customer, secondly, being able to directly access their vehicle via the OBD plug and subsequently its data and thirdly, using that information to conduct
  the complete repair process in the workshop.
  
  Internet of things
  So, what is changing and how will the ‘IOT’ help to implement new and ‘lean’ business models to remain competitive? It will still all start with the ‘repair process’, but this will no longer be with the customer initially calling you or coming into the workshop with a question of ‘can you fix my car?’, but it will be through remote monitoring of the ‘thing’ – the vehicle (via OBD plug-in devices or in-vehicle telematics platforms) to conduct remote diagnostics, prognostics and predictive maintenance services. This will inform you when the vehicle needs work and should lead into being able to contact the customer and offer a competitive quotation for the work needed that ultimately should still result in the vehicle coming into the workshop.
      
  When the vehicle does arrive, you will already know the details of the vehicle and the necessary work, so can configure the workshop resources (which ramp, what workshop equipment, what technical data, what replacement parts etc.), before the vehicle arrives.
      
  You can also ensure that the various ‘external data’ that may be needed for the job is pre-arranged and can be downloaded into the specific workshop equipment which is needed as part of the repair process. This can be a ‘just in time’ download of the technical data, the diagnostic test routine, the replacement part fitment method and so on. All this can easily reduce the workshop time needed to complete the repair process by 50%.
  
  Captured
  This may already sound like a great move forward to be lean, more profitable and more competitive, but there is even more! You also now have new ways to use the data that you have captured. Not only will you know the faults of the specific make and model of vehicle, which in turn, you will store in your database (non-personal, machine generated data), but you will also be able to use this data to exchange or trade data with your existing suppliers or other (new) partners to reduce both your costs and theirs. Welcome to the world of data trading – and get used to it, because it will be your future.  The internet of things, means linking to the ‘thing’ (e.g. the vehicle and workshop equipment) and then handling the data created, by using it in new ways to make the whole workshop and vehicle repair process more efficient, as well as supporting new business models beyond just what you can do today in the workshop. However, let’s also take a step back and look at workshop equipment as part of ‘the internet of things’. It already starts with a new range of ‘connected’ workshop equipment that will not only be able to be remotely monitored by the equipment manufacturer to ensure better reliability, together with faster and cheaper repairs, but will also be the basis for ensuring that the technical information you require for the job ‘in hand’ is supplied not only ‘just in time’, but also charged for on a new competitive bidding basis from a range of suppliers and charged on an individual job basis. Going a stage further, you may be able to exchange data with your equipment suppliers so that they can collect ‘big data’ from all their customers and use it for their own new data trading business models and in turn, use this to offset supplying data or services to you at
  a lower cost. This may also apply with your parts suppliers to provide them with better forecasting and trend analysis.
  
  Data centric
  The classic business model of today that is ‘customer centric’ will change to become ‘data centric’ that creates added value to the consumer’s experience, but also to the service provider – you!
  
  This change of accessing the vehicle, your customer and use of the vehicle-generated data is a disruptive evolution that will drive (no pun intended) a revolution in the aftermarket. However, the key issue will be the ability to access the vehicle, its data and in-vehicle displays to offer your services when the vehicle needs work and that is likely to be a legislative issue as the vehicle manufacturers try to use their technological advantage to dominate and control tomorrow’s repair and maintenance business. It’s up to you to fight not only for your ‘right to do business’, but for your ability to evolve your current business models into those of tomorrow.

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