Let’s be honest: the economy has been volatile this year. Body shop owners across the country are feeling the impact, and shop owners are reporting significant slowdowns. In my experience, my shop had its best year ever last year, but as we all know, the nature of business is cyclical. There are peaks and troughs, and this year we’re definitely in a trough. Despite our robust marketing efforts, we’ve seen a 25% decline in activity.
One of the major factors contributing to this downturn is the behavior of insurance companies. They are increasingly totaling vehicles at much lower damage thresholds, recognizing they can recover more money by selling them at auction than by financing repairs. This trend has profound implications for our industry. Additionally, many customers are opting to cash their insurance checks and continue driving their damaged vehicles simply because they need immediate funds. This not only leads to fewer repair orders but also creates an environment where people are prioritizing cash flow over vehicle safety.
This combination creates a perfect storm for repair shops: a weakening economy, insurance companies declaring vehicles total losses, and customers choosing not to repair their cars. So, what can we do to drive business in such challenging conditions? For us, part of the answer lies in securing multiple repair orders from the vehicles already in our shop.
Historically, we’ve been relatively good at identifying additional body repairs when customers bring their vehicles in. However, in light of the current slowdown, we’re now doubling down on how we capitalize on the vehicles already in our shop. We’ve refined our approach to capturing repairs for unrelated prior damage and expanded our assessment of what we can propose to customers.
In the past, when a customer dropped off their vehicle, we would ask if there were any other issues they wanted us to address. While we captured some repairs this way, we realized we were missing out on numerous opportunities to enhance our service offerings. Now, when a car is dropped off, we ensure to provide a same-day update, unless the drop-off occurs late in the day. Our protocol now dictates that we reach out to customers the same day as their drop-off, to inform them that the damages on the vehicle have been disassembled, parts have been ordered, and additional needed repairs have been submitted to the insurance company for approval. By reaching out on the same day, we’ve significantly improved our close ratio for additional repair orders, demonstrating our commitment to customer service.
But we didn’t stop there. We’ve also broadened our inspection process. Beyond just assessing the body of the vehicle, we now evaluate the suspension, brake, and exhaust systems, along with offering basic maintenance services such as oil changes and wiper blade replacements. While we don’t want to transform into a full-service mechanic shop, these minor services can be easily performed while the customer’s vehicle is with us, providing added convenience and value.
Our strategy serves two key purposes: increasing the number of repair orders we process and establishing our shop as the go-to for all automotive inquiries. By positioning ourselves as a resource for all things automotive, we are not only fostering customer loyalty but also encouraging repeat business. We’ve started to receive calls from customers seeking minor maintenance or advice, and while we may refer some work to specialized mechanics, the goal is to remain top-of-mind for any automotive needs.
Furthermore, we’ve also embraced digital marketing strategies to reach our customers more effectively. By leveraging social media platforms and our website, we can share tips on vehicle maintenance, showcase our repair work, and promote our additional services. This not only helps in generating new leads but also reinforces our position as trusted experts in the field.
As we navigate these uncertain times, our commitment to customer service and our proactive approach to identifying additional repair opportunities will be essential to our success. By engaging our customers and expanding our service offerings, we’re not just weathering the storm; we’re positioning ourselves for long-term success in a challenging environment.
While the current economic landscape presents challenges, it also offers opportunities for growth and adaptation. By refining our strategies and expanding our services, we aim not only to survive but to thrive in the automotive repair industry.
