AutoFix AdvisorCast

Michael Doherty [00:00:00]:
This is the autofix Advisor cast, powered by World Pack. Hey, service advisor nation, how's it going? Welcome to another episode of the Auto Fix Advisor Cast with your host, Michael Dougherty. Hopefully everybody's doing fantastic, staying healthy and keeping busy. One thing I want to talk about today was shops doing discounting, especially the service advisor side. You know, I know there's different pay structures out there for service advisors. Some of it is straight commission, which I really hope is not the case these days, because there's a lot of value in what we offer to keep up with clients. So a salary or an hourly rate attached with a bonus or a commission is always preferable. And I'd be interested to hear people's take on that.

Michael Doherty [00:00:59]:
But again, you know, straight commission, not so great. You know, I think we're being devalued at that point, and we're pressured to just sell, sell, sell, sell. And again, it should be take care of the client, take care of the client, take care of the client. So in any event, for shops that are doing discounting, if that is a strategy to attract new clients, I would like to talk about why I don't think that's a great idea. Because you're, you know, well, we'll get into it. So discounting to win a new client, first and foremost, I learned a long time ago it's not my money to give away, right? If the shop is offering a discount, shop is offering a special or something like that, then so be it. But, you know, if I had somebody that, you know, I wanted them to do brake service work and say it was like a $2,000 job. Yeah, $2,000.

Michael Doherty [00:01:55]:
That's not really hard to come by these day for breaks, especially on European vehicles. So, you know, $2,000 break job. And, you know, the client said, you know, hey, you know, if you guys could do it for like, you know, $1,800, you know, I'll. I'll do it, you know, and, you know, my mind, the back of my mind, I'm thinking like, you know, I might put this person on hold, go talk to the, you know, the manager or, you know, the owner and see what they want to do. But at the same time, you know, I mean, that's. It's. It's. You're teaching clients that, you know, at that point, you know, your business is pretty much a commodity, which is not a good thing.

Michael Doherty [00:02:35]:
You know, you're training them to see that your service is a commodity. For a better word, delay. Discounting feels safe because you want to get the business. But you know, and it's a shortcut to yes, you know, yes, we can do that. But you know, think about, I won't call it the fallout, but you know, what, what are you taking away when you're doing discounting, right. So I know that, you know, for shops that are offering discounts, you know, it'll help them try you out, right. You know, we're going to give you, you know, 20% off an oil service or 10%, 15% up to whatever, you know, the mindset might be. Again, on the shop side, you know, everyone else is offering 10%, you know, why shouldn't we, or 10% off, why shouldn't we? You know, we'll make it up on the next visit.

Michael Doherty [00:03:26]:
I mean, once you kind of give that money away, it's not coming back. There is no catch up point. There really isn't. It's just the way that it works. And again, you know, when you, when you lead with price, you know you're attracting the wrong mindset, right. So low price buyers or low people that are just looking for the lowest price, that's low loyalty. You know, if you think about it, I mean they're only going to keep coming back if you keep giving them money off. So you're, you're, you're kind of building the monster, right, at that point, you know, and plus, you know, with the low price buyers, right, there's, it's weird because they want, they want it the cheapest but they have high expectations.

Michael Doherty [00:04:15]:
They want it to be, they want to, they want it to be the best and they want it done the fastest, you know, so it's just a weird, it's a weird way of, of doing business. But you know, it's especially for first time clients, right. With discounting, you know, I wouldn't do that. You know, it's, they're not just purchasing, you know, what's the most simplest service that someone's coming in for to try you out, right? An oil service. An oil change. You know, I've gotten away from saying an oil change because it sounds basic, right. An oil service again is more premium, it builds value. But you know, someone's coming in for the first time oil change, if we would, right.

Michael Doherty [00:04:57]:
You know, they're, you, you want them to buy confidence, you know, you want them to buy clarity, convenience, right. So you want to, the confidence side of it, you're letting them know that it's going to be done. Right? Right. I think that's the basic introduction, right. Or we'll call it the first date, right? When someone brings their car in for an oil service, you know, just an oil service, you know, they're trying you out. Sure. You've come across horror stories before. People have had their car summarized for an oil service and there wasn't enough oil put in.

Michael Doherty [00:05:28]:
Drain plug was left loose. Drain plug crush washer wasn't installed or was the wrong size and caused an oil leak. Just, just all these just horror stories just from. I hate to say a simple oil change, but, yeah, simple oil change. And it's poisoned their mind, right? No one can do this, right? So you gotta again, build confidence, right? We know what we're doing. Don't worry about it. We're going to make it right. We got you covered and we're going to take care of you.

Michael Doherty [00:05:56]:
You know, you're not going to have that issue, you know, clarity, right, that they're not going to be blindsided. And I think what that means is, especially again, you know, you're building value in what you're doing, you're being transparent and, you know, convenience, right? You're respecting their time. You know, don't just bring them in just to bring them in. And it's there for a whole day for an oil service and a courtesy check. I mean, you're gonna get a value, people's time. And most importantly, you know, on the value side, right? The connection, you know, I think these days, especially, people want to shop. That feels different. Not Groundhog Day, if you would, where it's just the same experience over and over and over again.

Michael Doherty [00:06:42]:
If everybody's seen that movie Groundhog Day with Bill Murray, long story short, you know, he kept waking up to the same day over and over and over again. But, you know, connection point, right? So that it's not Groundhog Day, you know, the personalization of it. So again, you know, building value instead of, you know, offering a discount. And, you know, there's some psychology behind it as well. People don't buy the cheapest, they buy what they believe. What is it worth it, right? So again, people don't buy the cheapest, they buy what they believe is worth it. So if you're kind of portraying yourself as, you know, that shop that is just kind of doing the bare minimum, yeah, we'll get you in, we'll do your oil change. You know, it's going to be $60 or whatever.

Michael Doherty [00:07:35]:
I mean, there's no value there. You know, again, you got to build value, especially when they call, right? Got to build value. You got to build excitement. Around, you know, the shop, you know. Hey, thanks for calling XYZ Automotive. This is Michael, how can I help you? Yeah, absolutely, we can do that. We would love to do that. We have ASE certified technicians.

Michael Doherty [00:07:52]:
Yes, just for an oil change. Let them know that. Right, right then and there. That kind of, that, that breaks the bar. When's the last time you called someplace for an oil service and you heard somebody say that you've got AC certified technicians right off the bat? I mean, that changes the mindset. These guys aren't playing around, they're, they're the top of the heap. Right. I mean that right there to that caller, if they're kind of just a price shopper, that's probably going to scare them away.

Michael Doherty [00:08:19]:
You know, there's not many people saying that. I mean, be, be, be proud of where you work. Be proud of what you're offering, you know, don't devalue, you know. Yeah, it's just an oil change. It's not just an oil change. You know, it's your car, Mr. And Mrs. Jones, you're, you're relying on this vehicle to get you where you need to get and to be doing it safely.

Michael Doherty [00:08:39]:
You know, we're going to bring you in, we're going to do an oil service, right? Change the mentality in their mind, you know, it's not an oil change, it's an oil service. You're going to bring the car in, we're going to do an oil service, we're going to do a multi point inspection on the vehicle. If we see anything that we feel you need to know about, we're going to present it to you, we're going to give you an estimate and you're under no obligation. You know, we'll go over things together, we'll explain it to you and you know, we love your business. So, you know, we have openings, appointments starting on, you know, this date, this time, you know, what day do you want me to bring in? What day works for you? Let's make this happen. Right? Again, like, like be enthusiastic about it, you know, bring them in, right? It don't discount, especially on an oil change, oil service, you know, it's not, it's not worth it, you know, and also, you know, one thing to do, one thing to do too is, you know, when people start talking about, you know, price, you know, I think it's, it's tone right Too, you know, I mean, imagine somebody calls, right? Especially you know, again, I referenced the oil change or the oil service because it's the Most basic thing that people usually need and call in for. And yes, that leads to other services, other things in your business. But again, you know, the phone call of this, right? You know, jumping on the phone and them saying, hey, I just need an oil change and you know, how much is that going to cost me? And whatever and you know, letting them know, hey, you know, we specialize in helping customers get long term reliability out of their vehicles, not just quick fixes, right? And that again, it sets the tone, it lets them know that you are not the Jiffy Lube, you are not, you know, the quick 10 oil change.

Michael Doherty [00:10:22]:
And nothing against those places, truthfully, I have nothing against those places. But again, you've got to think about your competition. You've got to think about how many shops are in your area, right? Call it a 5 mile, 10 mile radius. And what is going to set you apart when that person calls in. And it's your phone skills, it really is. It's your service advisors, it's the people you have answering the phones, answering, excuse me, I needed a water break here. What sets you apart first and foremost is the phone skills. It's the people that you've got at the front desk, it's the people that are answering the phones, answering the emails.

Michael Doherty [00:11:10]:
That's what's going to set you apart immediately, right? People's tone, people being upbeat, smiling through the phone, that's the first thing that they're going to experience. And then when they come in, blow them away, right? Again, you know, maybe they're used to just being the discount, you know, wanting to want the discount shop. Maybe you're, maybe they're used to just paying the bare minimum and looking for the cheapest. Again you, it's your goal, it's your duty to get them out of that mindset and build and maintain a client relationship with them, right? So again, you know, sometimes all it takes is showing things differently to people once they get to the shop. Show them the shop. Really? Yeah, show them, walk them to the parts department. Look at all the in stock parts we have, look at all the premium brands of parts we have. Here's our diagnostic equipment, right? I mean, not a lot of shops do that these days, right? I wouldn't say like have a tour, but yeah, have a tour, right? If it's safe for them to walk back there, there's no fluids on the floor, there's not something crazy going on back there.

Michael Doherty [00:12:15]:
Someone's not, you know, cussing, swearing, getting loud, playing obscene music, whatever. I mean, make it a, make It a welcoming atmosphere, you know, tour them, show them the shop. You know, again, there's not a lot of places that are doing that. And again, it's building value. You're showing pride and where you work, you're showing pride and why you like being here. And look at all the cool stuff that we got, you know, stock some ice cream in the freezer for people, Pete's sake, walk them back, you know, hey, while you're here, you know, depending. Yeah, I don't think anybody's gonna want a Nutty Buddy at six in the morning or eight in the morning, but hey, you never know. And, and again, open that freezer door, right? You know, hey, you want an ice cream while you're here? You know, again, just stuff that they've never experienced before and it's gonna stick in their mind and they're gonna.

Michael Doherty [00:12:56]:
That person that I believe is, you know, was once the discount person or looking for the cheapest has now been converted, right? Because they don't want to go back. They know what they're gonna get with the cheap stuff, right? And again, it's not cheap, it's value. So building that value, I just can't emphasize it enough. Do stuff differently, have a different mindset, think differently and demonstrate that, right? There's nothing wrong with giving a client, you know, a shop tour. If your shop is not suitable to kind of do a shop tour, then I would definitely recommend, you know, making it suitable for a shop tour. And it doesn't have to be a huge shop. I'm not talking like, you know, doesn't have to be 20 bays and whatever. But again, you know, it's kind of like the old MTV Cribs, right? You know, someone shows up, knocks on your door, hey, thanks for coming to my crib.

Michael Doherty [00:13:45]:
Let me show you around, right? I know everybody knows MTV Cribs, right? And you know, some people had small houses, some people had big houses. But again, it's kind of giving a tour of your facility, you know, again, your parts room, the diagnostic equipment, you know, the lifts, you know, some of text that are back there. Hey, Chuck, what's going on? Hey, this is a new client, you know. Oh, cool, man. Thanks for coming in. Right? They're seeing synergy, they're seeing collaboration, you know, that right there builds value. So again, you know, don't, please don't be a discount shop. Be a value shop.

Michael Doherty [00:14:17]:
And yeah, you're going to get some people that are going to give you resistance on that. But I think if you can get them in the door and give them that value, experience. They're gonna come back again, make it different for them. And, you know, somewhere in that appointment, if they make an appointment, you know, put something next to it on the Google calendar, wherever you're making appointments. I mean, put an asterisk, put a parentheses, put an exclamation point. Something that reminds you that that particular client that's going to be coming in tomorrow, a week from now, whatever. Something that triggers in your mind when you look at that appointment. Oh, yeah, I remember that conversation.

Michael Doherty [00:14:55]:
I need to definitely make sure I do a real good job of building value when they come in the shop. I need to be anticipating their arrival. I need to really kind of wow them, show them why they're at the best shop in town, right? And again, that's how you have to think about it. You are the best shop in town. When you pick up that phone and you talk to the client, you're the best shop in town. When you're there, there in person, you're the best shop in town. Doesn't matter if there's a shop right next door. Doesn't matter if there's a shop right across the street, you are the best shop in town.

Michael Doherty [00:15:26]:
Act like it, deliver on it, Build value and don't discount. It. Doesn't work out. You know, it really doesn't. You know, the mindset of, again, we'll make it up on the next one. That money's gone. Brother or sister, it's gone. It's not coming back.

Michael Doherty [00:15:44]:
It's. Erase it, move forward, don't be a discount shop. And also remember, not everybody's going to be your client, and that's okay. The ones that understand and see the value, again, get them to the shop. Get them to the shop. Even if you say, hey, you know what? Okay, I get it. You don't want to make an appointment at this time. Tell you what, how about you just drive by, how about you come by in the next, you know, next hour? I'm going to walk out to the parking lot.

Michael Doherty [00:16:15]:
This is not a diagnostic. I'm just going to hook up our scanner to your car, see what codes you've got. So we know how many codes are there, right, for a check engine light. Again, you're not promising them anything. You're not really doing anything to their car. You're not, you know, you're not opening the hood, nothing like that. You're interfacing with them your building value and say, hey, you know what, come on inside real quick. You know, get them in the shop, show them the shop lead, be a leader.

Michael Doherty [00:16:42]:
Right? Stuff like that, that's going to make a difference. And they're going to want to make an appointment with you. They're going to see that you're trying to help them. You know, it's not all about price. We all know that. You know. Yeah. At the end of the day, you're going to pay a bill for whatever service you need done.

Michael Doherty [00:16:58]:
It doesn't matter where you go. So why do you go to the dentist you go to? Why do you go to the doctor that you choose to go to? Why do you choose to go back to that restaurant every week? Why do you choose to go back to that bar every week? Why do you choose to visit this particular destination on a vacation every chance you get? Because it's the experience that you had with the person that's there providing the service. That's why. It's not rocket science. So we have to do the same thing and build value. Not discounts. No discounts. Don't do it.

Michael Doherty [00:17:31]:
Don't do it. Service Advisor Nation. Thank you for listening to another episode of the Auto Fix Advisor Cast. And I really, truly appreciate you. Seriously, I really do. And I hope everybody stays healthy and busy and, yes, build value. Seriously, make it a goal. Make it a goal for two out of three new clients.

Michael Doherty [00:17:55]:
Give them a tour of the shop. Right? Just walk them around, set aside some time in the morning schedule to be able to do that. And again, people that are calling in with just some little things here and there and they're just, you know, I just need a price. I just need a price. If it's something that you can just have them stop by. And again, don't pull it in the shop. Just, you know, out in the parking lot, go meet them. If they've got a warning light on that they can't describe, they're not sure.

Michael Doherty [00:18:20]:
Again, you know, build value. Have them come by the shop. Oh, okay, Yeah, I know about this. You know, come on in real quick, get them comfortable, get them a drink, get out the calendar. Again, give them a tour of the shop. Again, build value. It's easy to do, it's easy to do, and you're being genuine in doing it, so appreciate you guys. Have a good one.

Michael Doherty [00:18:40]:
All right, bye.

Michael Doherty [00:18:44]:
Hey, thanks for listening to the autofix Advisor Cast. If you're ready to take your shop to the next level, check out our sponsor, WorldPAC and the WorldPAC Training Institute, WTI. Big thanks to them for their sponsorship. Follow the podcast on social media for more insights and subscribe so you never miss an episode. Oh, and tell your friends we want to help the industry grow and help.

Michael Doherty [00:19:05]:
Advisors love their jobs again.

Michael Doherty [00:19:07]:
See you on the next autofix Advisor.

Michael Doherty [00:19:09]:
Cast.