A common objective in the quick lube industry is to maximize opportunities for profit. Maintenance service is low-hanging fruit because it is the simplest way to increase profit from your current customer base.
Focus on the simple services that are easy to perform and the traffic already in your store. You have transmission and radiator services, fuel system cleanings, oil system cleaners, power steering and headlight services. There are even more service opportunities that are developing daily and creating great profit potential.
The Car Care Council estimates that 60 billion dollars of needed maintenance services are not being done annually. In surveys with the Car Care Council, it was found that trust is the single largest factor in the purchase of a maintenance service.
I’m sure every one of you agrees that building relationships with your customers really matters with return service. To make sure you are getting your share of this 60 billion dollars you must build trust with your customers and focus on maintenance services.
The American Car Care Council collected a survey from service centers all across America who inspected customers’ vehicles at no charge. Out of the things inspected, eight out of 10 vehicles failed one or more of the things inspected. That means 80 percent of the vehicles coming to your stores each day need one or more add on services.
The inspection results tell us there is a huge opportunity for increased profits from the existing customer base in quick lube traffic today.
If we take a soft store number of 25 customers per day and ratio that against the Car Care Council survey, the profit potential is very impressive. The inspection survey found 18 percent of vehicles needed a power steering service. If a store is averaging 25 customers per day, that would mean there were four and a half power steering service opportunities per day.
Transmission inspections in the survey revealed 18 percent of vehicles needed a transmission service. In the survey 24 percent of vehicles needed a radiator service. This is up almost 10 percent from 2005.
These numbers do not include: headlight restoration, brake service, battery service, wiper blades or tires. Hopefully this shows you the huge profit opportunity that is in your stores today. To get your share of this opportunity you must communicate and educate because truly, selling is educating.
AMBER KOSSAK is president and COO of Solid Start, manufacturer of True Brand Products. She has been in the automotive Industry for almost 20 years and is serving on the AOCA board of directors. She can be contacted at Kossak@solidstart.biz. For more information please visit www.solidstart.biz