Monthly Archives: March 2016

MARKETING, WHAT IS IT? DO I NEED TO DO IT? HOW DO I KNOW?

MARKETING, WHAT IS IT? DO I NEED TO DO IT? HOW DO I KNOW?

I deal with clients from coast to coast and border to border and together we have developed a marketing plan and have it implemented. We know what our car budget is for every year, quarter, month, week and day and from that we develop our marketing plan. As hard as it may be to believe some auto repair shops don’t need more cars! They just need to do a better job on their ARO or Average Repair Order. ARO is the total dollar amount on each ticket. This has long been one of the standards for judging the health of an auto repair shop. Most clients when they come to me are doing less than $200 in ARO. Now, I know what you are thinking. What is a good ARO? Every shop is different. As a rule of thumb your ARO should be about 5X’s your labor rate. For an example, if your labor rate is 75.00 then your ARO should be about $375. If this is not the case there could be several factors that keep you from getting there. If your ARO is less than this number then there are some things ... read more

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PRICE, VALUE, PERCEPTION

PRICE, VALUE, PERCEPTION

Price, Value, Perception Price is what you pay, Value is how you feel about the transaction and Perception is how the customer processes your company before they experience the price & value. Recently, I had a conversation with a restaurant owner client who was having issues with potential customers understanding why his chicken wings cost more. He uses a bigger, better quality wing than his competitors. Yet, they were having problem conveying to the customer why they should buy his wings. Problem: How do we make the customers understand that my clients’ wings are bigger, better and worth paying more money for? During the conversation with my client on this topic we decided that he needed to do more research, so he went to every competitor in town and bought a basket of chicken wings. Sure enough every competitor’s basket of wings had more wings, but the quality on those little wings was not as good and they were less than half the size of his wh ... read more

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