How To Build Your Business on Hidden Diamonds
By
Eric M. Twiggs
“Sometimes what you want is right in front of you. All you
have to do is open your eyes and see it.” Meg Cabot
How do you build your business on hidden diamonds? I
pondered this question after reading a passage from the book Acres
of Diamonds, by Russel Conwell.
He tells the story of an old farmer who had done well in life but wasn’t
satisfied. One day he heard that a number of other farmers had gone off
in search of diamond mines and become instant millionaires.
He decided to sell his farm and go out to find his own
treasure. He searched the African continent for thirteen years without
success. Sadly, in a fit of despair, he gave up and threw himself into
the ocean and drowned.
Back at his old farm the new owner was out feeding the mule
one day and noticed a rock beneath the creek that had a strange light to
it. He took the rock to an expert who confirmed it to be a priceless
diamond! As he continued to walk the property, he saw these rocks
everywhere.
The farm that the original farmer sold in an effort to
find a diamond mine, was discovered to be the greatest diamond mine on the
African continent! Instead of complaining about a lack
diamonds, he would have done better if he spent the time mining his existing
farm.
Have you been looking for that one new acquisition strategy
that will make you a millionaire? Like the farmer, you’re already
surrounded by your best source of wealth. What if you successfully
mined your current data base and achieved a 10% improvement in the number of
returning customers?
Well, I did this math on a shop with 1,514 active customers
(10% is 151). Based on the shop owners average repair order ($493.85),
and visits per vehicle (1.85), she would pick up an additional $137,957
in sales for the year! (151 x $493.85 X 1.85= $137,957)
The math doesn’t lie! Aggressively marketing to
your existing customers is the key to building your business on the hidden
diamonds. I’ve discovered that its hardest to see the solution that’s
right in front of you, so keep reading to discover two mining strategies
you may have overlooked.
Wedding Rings
According to a recent study conducted by Experian
Automotive, the average family has 2.28 vehicles, with 35% of
households owning three or more cars. Chances are, your customer
who’s wearing a wedding ring owns multiple cars. The question is, are you
servicing her other vehicles?
Pay attention to who is wearing a wedding ring and check
your customer history to see how many cars they have brought to you.
The following are the most common reasons customers don’t
bring their other vehicles to you: 1. They’re unaware of all the
services you provide. 2. They believe they have to take their newer vehicles to
the dealer to keep their warranty intact. 3. Their previous experience
wasn’t remarkable, so the spouse didn’t remember to suggest bringing the other
vehicles back. For example, If the wife was wowed by your servicing
of the Honda, she would remember tell her husband to bring the Volvo to
you.
The best form of marketing is to create an experience
that’s so memorable, people refer you without being asked to. If you
create an exceptional experience and educate your customer on the services you
provide, you will get their second and third vehicles by paying closer
attention to who’s wearing wedding rings.
Oil Changes
Hall of Fame Hockey player Wayne Gretzky is credited with
the following quote: “You miss 100% of the shots you don’t take.” If
you fail to include oil changes as a part of your retention strategy, you’re missing
the shot that can improve your retention.
In most markets, there is a major oil change retailer
offering a low price basic oil change. What they’re really doing is
creating a low price impression by marketing the lower priced entry
level option and then upselling to a more expensive package that’s comparable
to what you charge.
The key is to make sure you offer a competitively priced oil
change service. Here’s a news flash: Holding margin on every oil
change won’t make you rich. What will improve your
wealth, is having more of your customers come back to maintain their vehicles. I
challenge you to shop your basic oil change prices to ensure you have a
competitive offering.
One of the most overlooked aspects of oil change marketing
is refreshing the sticker and using this to initiate your exit appointment
conversation. Here’s how it would sound: “Mr. Smith, we refreshed your
oil change sticker on the window and scheduled your next service for Friday
January 6thth at two o’clock.”
Summary
So there you have it. Paying attention to the
wedding rings and marketing with your oil change service, will help you
build your business on the hidden diamonds. If the old farmer was able to
give advice, he would tell you to look in the creek before selling the
farm!
Eric M.
Twiggs
The Accountability Coach
PS. I’ve created
a checklist to help you master the fundamentals of car count. Email etwiggs@autotraining.net and I will share it.
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