By Murray Roth

In my last column, we discussed the foundational concept of What is the Purpose of a Business. We spoke of the three stakeholders involved in this purpose: the clients, the employees, and the shareholders. This column is going to be the first of three building blocks of this foundation.

Moving forward, I am going to use the word client instead of customer. In my view, a customer is someone who exchanges money for a product or a service in a way that is very transactional. They may only buy from that business one time, but even if they return occasionally, they are not that loyal.

A client is very different. Using the term “client” the way a lawyer or an accountant would implies a professional relationship. There is the expectation on the part of the client that the person serving them is trained, well informed, can assist them with information and can provide a solution. Yes, money is paid by the client for the services they receive, but it is a relational exchange. There is a duty and obligation on the part of the professional that is rewarded with loyalty.

Almost since its inception, the automotive service industry has primarily been seen as a transactional, price-based model by both consumers and business owners. There is a whole history behind this, but think of service stations with their price signs for everything from fuel to oil changes, and dealerships with the big price signs on the car windshields in their lots. We as an industry made it about price, and taught the consumer that price was the most important factor.

But as vehicles change, and consumer expectations change, there is a great opportunity for shops to change to a more consultative service-based model. Clients report much better satisfaction with the money they spend, and shops are much more profitable.

Please bear with a little more history. Early adopters of the automobile tended to be people that were mechanically inclined, and could service and repair their own vehicles if need be. As the use of vehicles increased, the need for service stations and dealerships grew, and many consumers who bought cars could not do their own repairs and needed shops to service and repair them. Cars were simpler back then, and it was easier to understand what you drove and what you were paying for at a shop. In fact, a lot of people still did their own car service and repair, either because they enjoyed doing it and the self-sufficiency it gave them or to save money, or both. In addition to that, the three and a half decades after WWII were an economic time where a car was affordable to most families.

Fast forward to the current era. Relative to wages, cars are much more expensive to buy. Over 95% of vehicles purchased by consumers are financed. Cars are getting more expensive to service and repair as well. And the technology in cars today is such that the average consumer has no idea what they drive, and bringing their car to a shop is stressful because they are afraid of being ripped off. And because the only thing they understand is their wallets and their time, they give us shop owners the impression that they just want car repairs fast and cheap.

And how does much of our industry respond? By competing on price, offering “while you wait” services, staying open evenings and weekends. This model is not sustainable. It is not profitable, it cannot afford and retain good employees, and it just churns through customers.

So, what is the alternative? There have always been shops that figured out the consultative service-based model, but they have been in the minority. I see a lot more shops in recent times that are offering this model, and their clients are happier and they are more profitable. But in order to do this we need to slow down our shops and use proven processes to achieve these outcomes.

One of the silver linings of the pandemic when it comes to vehicle service and repair was that we discovered a set of expectations from certain clients that had already existed, but very few of us were meeting those expectations. In addition to that, a lot of shops’ clients expectations changed once they had experienced the contactless service that we were mandated to offer.

Before I elaborate on these expectations, there are a couple of other factors we need to explore. One of the things we as people in modern society have come to value more than anything is our time. This ties in with convenience; we keep looking at how to make life easier and things to take less effort. Expectations of society are dramatically different than 50 years ago.

What does the driving public want? They want to be listened to and heard. They want us to slow down, ask questions they know the answer to. Stop being so technical with them! They want a relationship with the people who look after their car.

They want to be cared for as a person, not as a number. That means that the car repair and the invoice are not the stressor – the fact that they will not be able to visit someone in the hospital because they don’t have wheels is the stressor. If we took the time to ask questions about their day, we might find that offering them a shuttle ride to the hospital is the greatest solution we could offer them.

They want transparency about the repair process. That means clear communication about timelines, about costs, about delays, about how things work at the shop. Not so much the actual details of the repair process, but about expectations from both sides of the relationship.

They want to be able to make an appointment request with your business digitally. If I Googled your shop, could I make an online appointment request?

They want to understand – in terms they understand – what they paid for. Digital inspections and electronic estimates are the best tool to accomplish that.

They want some form of alternative transportation, depending on the person or circumstances: a shuttle ride, ride share, courtesy car, pick and delivery, or full valet.

They want the ability to pay online, or through phone, or some digital method.

Over the years, there has been a perception by shops that “will-wait” appointments for oil changes and other minor services is what consumers want. Some consumers have expressed that is what they want, as well. But that is a stressful way to run a shop, as well as a limited way to look after a vehicle properly. However, when good shops explain to their clients that they have a secure after-hours way of dropping off a car and its keys, and a way of picking them up in a lockbox, many clients never wait for their car again. They leave it for the whole day, they just “thought” they had to wait for their appointment in the past.

To start and maintain the cycle of the purpose of a business, the primary purpose of a business – the reason it exists – is to meet and exceed the needs of its clients. The result is that the client receives value for the money they spend in the business.

This column also appeared in the Indie Garage print edition for October/November 2024.