Maintenance Matters

November 2012

• Maintenance & MPG

• Implementing a Vehicle Inspection Form

• Top Overlooked Maintenance Services

MaintenanceChronicles:Showcasing the Profit Potential in Vehicle Maintenance Services

maintenanceMATTERS

maintenanceMATTERS

Chronicling Two Weeks ofMaintenance Services Profiling Two Shops’ Maintenance WorkflowAlexandria, VA [page 2]Akron, OH [page 14]We’ve documented the maintenance service workflowat two independent repair shops to showcase the salesand profit potential in vehicle maintenance services,and provide useful advice to help you sell preventivemaintenance to your customers.

Boosting Profitability in AutomotiveMaintenance Service [page 10]Capitalize on the vehicle maintenance profit potential inyour service area by using this handy inspection form oneach and every vehicle that enters your bays.

5-Minute Maintenance Strategies [page 20]These maintenance strategies can take your vehicle inspection process to the next level, helping you sell morenecessary repairs and services, while giving your customersa better analysis of the condition of their vehicle.

[ Technician-Centric Inspection Form ]

[ Maintenance Chronicles ]

[ Preventive Maintenance Musts ]

Maintenance Matters November 2012, Volume 1, Number 1: Published by Babcox Media, Inc.3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. www.babcox.com.� 2012 by Babcox Media, Inc.

Publisher, Jim Merle, ext. 280; Editors, Mary DellaValle, ext. 221 and Andrew Markel, ext. 296

November 2012

2 November 2012 | Maintenance Matters

East Coast Shop MakesMaintenance a PriorityProper Equipment, Vehicle Inspections and

Customer Education Yield Unperformed

Maintenance Dollars

[ Maintenance Chronicle ] By Mary DellaValle, editor, ImportCar magazine

Taking the time to edu-cate your customers onthe value of preventivemaintenance can paybig dividends for themas it relates to vehicleperformance, safety andlongevity. And, whenthey have more incen-tive to bring their vehi-cles to you on a regularbasis, it boosts your shop’s profitabilityin automotive maintenance services.Maintenance really does matter. In this Maintenance Chronicle, we arefeaturing an eight-bay shop located inAlexandria, VA, that employs five techsand has been in operation for 19 years. We’ve documented the shop’s main-tenance service workflow over a two-week process, as a means to showcasethe sales and profit potential in vehiclemaintenance services. Preventive maintenance checks andthorough inspections by shop owners

and technicians can drive the purchaseand installation of filters, wiper blades,lighting, oil, shocks and struts, batter-ies, antifreeze, tires, belts and hose,and other related maintenance partsand equipment.This shop owner has a focused efforton informing customers about neces-sary preventive maintenance serviceswhen they’re at his shop. “All of ourtechs are instructed to recommend up-coming maintenance on every car thatcomes through our bays, and any serv-ice that is of immediate need while thecar is in for other issues,” he explained.

Maintenance Matters 3

[ Maintenance Chronicle ]

Oil Changes •••••••••••••••••••••••••54

Air Filters •••••••••••••••••••••••••••16

Fuel Filters •••••••••••••••••••••••••••2

Cabin Air Filter •••••••••••••••••••••••16

Coolant Flush and Fill•••••••••••••••••••6

Transmission Flush/Filter •••••••••••••••16

Wiper Blades •••••••••••••••••••••••••16

Ignition (Plugs/Wires) •••••••••••••••••17

Hoses •••••••••••••••••••••••••••••••3

Belts •••••••••••••••••••••••••••••••20

Lighting •••••••••••••••••••••••••••••19

Tires •••••••••••••••••••••••••••••••16

Batteries ••••••••••••••••••••••••••••14

Fuel Injector Cleaning ••••••••••••••••••3

Maintenance Sales at a Glance

Sept. 10-22, 2012Jobs Performed

*

Note: The car count for Week 1 was 62 and the car count for Week 2 was 58.



“I know some techs are apprehensiveabout recommending additional workbecause of a customer’s reaction to anincrease in expenditure,” the owneradded. “My answer is that we will actu-ally be doing a disservice to our cus-tomer if we failed to explain all optionspertaining to maintenance. We can allhave a clear conscience, as long aswhat we inform the customer is 100%accurate, and then they can decidewhat (maintenance) approach to take.”

New Profit Center

The purchase of new equipment hasbeen instrumental in the vehicle inspec-tion process and in moving the preven-tive maintenance revenue needle at thisshop. In fact, total vehicle maintenancesales have increased 25-30% since theowner initiated a vehicle maintenanceprogram approximately three years agowith the purchase of a power steeringflushing station for $1,500.The owner said that the power steer-ing flush service is billed at $140.“Now, if you were to do only one perday x 25 work days,” he continued,“your additional grossrevenue wouldbe around $3,500per month x 12months, whichwould translate to$42,000 annually.“Then imagine

doing three or four per day, one byeach of your techs, and your numberswill increase exponentially. Since then,we’ve purchased transmission, brakefluid and coolant flushing equipment,and those services are also performeddaily. The customer gets back a healthi-er vehicle and we get a much healthierbank account. Everybody wins.”Beyond thoroughly inspecting vehicleswhile they’re in the shop for service, theowner also promotes maintenance to hiscustomers with computer-generated pro-motional letters that are sent out daily.He feels that phone calls are an intrusion,similar to the ones he gets from telemar-keters at work, at home and even on hiscell phone, and he says he doesn’t wantto impose that on his customers.If this owner were able to raise theawareness of the value of preventivemaintenance with even more emphasison customer education, he feels his shopwould benefit from an additional 10% increase in maintenance sales, above the25-30% increase already mentioned. And,he indicated that the

More than $62 Billion

in service and parts went unperformed

last year. That’s a heck of a lot of

dollars left on the table.

Source: Car Care Council


product categories that wouldbenefit the most are those that involvefluid flushes, because that is one of theneglected services he most often sees —which prompted the purchase of the newflushing equipment three years ago,helping establish maintenance as a newprofit center for his shop. Sometimes customers take the lead onmaintenance and bring in their vehiclefor a service inspection because they aregoing on a trip, selling the vehicle ortrading it in. And, this shop benefittedfrom scheduling maintenance work withcustomers after these various inspectionscenarios, yielding unperformed mainte-nance dollars in the process.This shop could also boost profitabili-ty in the maintenance category byproviding customers with a report ofupcoming preventive maintenanceitems, based on vehicle mileage, afterthey leave the shop following a repairor service. It might prompt customersto schedule future maintenance-relat-ed services, or serve as a reference

when the shop follows up with mainte-nance reminders. Using an on-line component — likethe ability for customers to scheduleappointments on the shop’s web-site — could also increase thisshop’s maintenance workflow.

Oil Changes & Filters

With engine lubrication being a solidcategory for preventive maintenance,this shop performed 54 oil changesover the two-week period (from Mon-day through Saturday), for an averageof 4.5 a day. The owner said that 25%of those jobs were prescheduled dueto a coupon or mailer sent out to cus-tomers. And, 40% were performedwhen the vehicle was in for anotherservice and the tech noticed that thevehicle was near or past the recom-mended oil change interval.And, with this shop’s techs taking thetime to inspect the air filter at every oilchange, the shop sold 16 air filters overthe two-week timeframe. Fifty percentof the time, air filters in customers’ vehicles are beyond the mileage

Filters replaced in thetwo-week period:

Oil

filt

ers

Oil filters 54

Fuel & Air filters 18

Cabin air filters 16

Up to 16% of vehicles on

the roads need lights

replaced, including

headlights, brake

lights and license

plate lights.

Source: Car Care Council


Fuel

& A

ir

Cabi

n ai

r



replacement recommendation.The shop performed only two fuel filter replacements during the twoweeks, but both were replaced as apreventive maintenance item, based onvehicle mileage. This is another greatexample where an inspection by a techuncovered necessary work and yielded

maintenance dollars for the shop. Similarly, 16 cabin air filters weresold, even though techs don’t regularlycheck the vehicle’s cabin air filter dur-ing an oil change service. Such a prac-tice could significantly boost this shop’scabin air filter sales.

Wipers

Sixteen sets of wipers were sold in thetwo-week period, as well as three rearwiper blades. Whether by customer re-quest or tech inspection, this shop’swiper sales could be elevated if the shop

were to get involved in Car Care Monthactivities and by promoting wiper bladereplacement as seasonal maintenance.

Cooling System

Over the two-week timeframe, theshop performed six cooling system- related services or flushes, one-third ofwhich were on vehicles that hadsurpassed the maintenance recom-mendation. An area of neglectamong its customer base, this shopcould boost cooling system saleswith proactive marketing in thisservice area.

Batteries and Belts

Fourteen batteries were replaced overthe two-week period, as techs test thebattery life of every vehicle that’s inthe shop for repair. Similarly, 20 ser-pentine belts were replaced in the

same timeframe, following an inspectionby the shop’s techs who determined thatthese belts were near the end of theiruseful life. (See page 3 for other mainte-nance services performed by this shop.)Hopefully, by getting an inside lookat this shop’s vehicle maintenance num-bers, you’ll begin thinking about newways to effectively promote preventivemaintenance to your customers. In theprocess, you’ll boost your shop’s prof-itability, and extend the life of your cus-tomers’ vehicles. And, that’s somethingeveryone can cheer about. MM


The Technician-Centric [ Vehicle Inspection ] By Andrew Markel, editor, Brake & Front End magazine

The form that worksfor you, not you

working for the form.

A preliminary vehicle

inspection should be

thorough and take

about 10-15 minutes

The trouble with most inspection forms is thatthey don’t work the way the technician works.Most forms are configured by the system and nothow a logical and efficient inspection should proceed. During my days as a tech, I would oftentimes fill out the form after inspecting a vehicle, second-guessing myself if I really didcheck a certain system or component. A preliminary vehicle inspection should be

thorough and take about 10-15 minutes, depend-ing on your equipment and number of technicianscarrying out the inspection. The form should befilled out, item-by-item, as you inspect the vehicle.The most important reason to use a form is

that it can create consistency for the inspectionprocess. It also helps technicians establish a routine that becomes automatic, so that fewerservice opportunities are missed. MM

[ Vehicle Inspection ]

Inspection Form


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[ Maintenance & MPG ] By Andrew Markel, editor, Brake & Front End magazine

With gas prices at historic highs, consumersare looking for ways to stretch a dollar.Maintaining a vehicle so it operates eco-nomically can help drivers get 10% bettergas mileage. These are not drasticchanges and do not involve tailgatingsemi-trailers on the freeway or installingmagnets on the fuel lines. Rather, these arethings that can be done at your shop —services that will pay dividends for you andyour customers.

Tire Inflation, 4%Inflating tires to the proper pressure forthe vehicle can improve mileage by 4%.Even if the Tire Pressure Monitoring Sys-tem (TPMS) light is off, a tire could be upto 24% under-inflated. Selling a customer anitrogen tire inflation package can furtherimprove his/her gas mileage by stabilizingthe pressures over a wide range of temperatures.

Air Filter,

6-11%According to a Department of Energy

study on modern vehicles, a dirty air filtercan kill power and fuel economy by 6-11%.A dirty air filter can alter long- and short-term fuel trims, causing the car to work hard-er and lose gas mileage in the process.

Engine Oil, 1-2%As engine oil ages, it can impact mileageby 1-2%. This is due to the additive pack-age of friction modifiers breaking down.The right oil also makes a difference. According to one oil manufacturer, if a vehicle requires 5w20, and 5w30 is installedinstead, it will impact mileage by 2%.

Oxygen Sensor, 10-40%Replacing a faulty oxygen sensor can improve mileage by as much as 40%. Anoxygen sensor can become contaminatedover time and lose the ability to sensechanges in the fuel mixture. It all adds up and every percentage

point counts as gas prices race to the $4a gallon and beyond mark. MM

Fuel Price Fighter:Numbers That Will Open Your Customers’

Eyes to the Value of Maintenance



Repairs are the Key toSelling MaintenanceOhio shop proves diagnostics, repair and maintenance go hand-in-hand.

[ Maintenance Chronicle ] By Andrew Markel, editor, Brake & Front End magazine

For this edition, we examine an inde-pendent, three-bay shop in Akron, OH.The shop has three technicians, dedi-cated service writer and a shop ownerwho works in the bays and up front.The shop has been in business for morethan 30 years and has a loyal clientele. In statistical terms, this shop is right

in-line with national averages for bays,technicians and years in business. It iswell know for its diagnostic and drive-ability services, and handles both domestic and import vehicles. We’ve documented the shop’s mainte-

nance service workflow over a two-weekperiod, as a means to showcase the

sales and profit potential in vehiclemaintenance services. During this time,the shop performed 45 maintenance- related services for 76 cars. Most of theservice categories were consistent withBabcox Media’s Jobs Performed Survey.(See chart on adjacent page.)

The Community

To estimate any shop’s profit poten-tial, it’s important to look at the sur-rounding community. The averagehousehold income in Akron is$32,892. The income level of poten-tial customers in an area can have adirect influence on the mix of main-tenance and repair work a shopperforms. It can also influence theage of the vehicle population.

In no uncertain terms is this shop lesssuccessful or less profitable than a shoplocated in a higher-income community.The opportunities to maintain and repair vehicles are the same. Just like ashop in a high-income area, successrequires a commitment to providing thehighest-quality parts and service, andperforming thorough vehicle



Maintenance Sales at a Glance

Sept. 4-19, 2012

Jobs Performed

Oil Changes ••••••••••••••••••••••••••14

Filters [Air & Fuel] •••••••••••••••••••••7

Cabin Air Filter ••••••••••••••••••••••••0

Coolant Flush and Fill•••••••••••••••••••3

Transmission Flush/Filter •••••••••••••••3

Wiper Blades •••••••••••••••••••••••••1

Ignition (Plugs/Wires) ••••••••••••••••••5

Hoses •••••••••••••••••••••••••••••••2

Belts••••••••••••••••••••••••••••••••2

Lighting •••••••••••••••••••••••••••••1

Tires ••••••••••••••••••••••••••••••••2

Batteries ••••••••••••••••••••••••••••4

Fuel Injector Cleaning ••••••••••••••••••1



inspections. What can change is theratio between maintenance and repair.

Maintenance Sales

Nineteen percent of the vehicles thatcame into a bay received an oil change.These are full-priced oil changes with nopromotion or coupons. This is an excellent number, but could be improved with some marketing. A pro-motion could increase car counts andthe chance to perform more inspec-tions to spot additionalwork. The shop sold fourbatteries. This is outstand-ing sales volume for ashop this size during theearly fall season. Where this shop suc-

ceeds is in its ability to sellmaintenance with existingrepair orders. The ownerhas made considerable investments incoolant flush and fill machines to helpwith difficult-to-purge systems. It alsohas top-of the-line diagnostic tools toresolve rotating electrical and fuelproblems. Items like coolant flushes, transmis-

sions flushes and ignition service weresold on top of existing repair ordersaddressing running problems, repre-senting 23% of the maintenance servicevolume. This is where the businessmodel of the independent, full-serviceshop has an advantage over mainte-nance specialists like quick lubes.

During the two-week period, thelabor inventory was fully expended.

At The Cash Register

According to the owner, the massive eco-nomic downturn in 2008 has changedhow the customer pays the bill. Previous-ly, customers paid with credit cards themajority of the time. Now, even cus-tomers with excellent credit ratings areunable to get credit cards and existing

cards have had the limitsdecreased.

This has resulted in a cashregister filled with cash andchecks, not credit card slips.The owner says it has madefor a better customer who ismore frugal and willing toinvest in maintenance. The

shop has been able to main-tain revenue levels, and even grow, inspite of the downturn.

Analysis

Overall, this shop is average when com-pared to industry averages for numberof bays, technicians and services sold.But, there is always room for improve-ment. Promotions and coupons couldimprove car counts and inspectionswould help spot more work.While this shop’s maintenance-to-repair

ratio is weighted heavily on the repairside, it reflects the area and drivers. But,these repairs leverage a lot of mainte-nance items customers neglect. MM


Top OverlookedMaintenance Services

[ Missed Maintenance ]

Do the Math. Do yourcar counts and servic-es sold match thebelow numbers? Thereis an abundance of unperformed mainte-nance in the marketand the opportunityfor your shop to uncover that profit potential through vehicle inspections andcustomer education efforts. During car care clinics carried out by the

Car Care Council in support of Car CareMonth in 2011, it was discovered that 84%of vehicles needed service or parts, thehighest percentage in five years.

Coolant: 24% of the vehicles hadlow, leaking or dirty coolant. As coolantages, it loses its ability to prevent corro-sion and lubricate the water pump.

Air Filter: 19% of vehicles needednew air filters. As a filter trap particulates,it becomes restricted and the engine hasto work harder and use more fuel.

Functional Fluids: 18% had low,dirty or leaking power steering, transmis-

sion and brake fluids.Testing these fluids canbe performed with teststrips or through a visual inspection.

Bulbs: 16% ofvehicles had a bulbthat was burnt out. Besure to charge for

labor when replacing bulbs.

Wipers: 14% of the vehicles need-ed new wiper blades and 3% neededrear blades. Make it a point to inspect thewipers for any cracking or separation fromthe frame.

MIL Lights: 10% of vehicles at theCar Care Council’s events had the check engine light on. When a vehicle is first driv-en into the bay, check that the Engine, ABSand TPMS lights come on and then go out.

Battery: 17% of the vehicles inspected needed the battery terminalscleaned and serviced. New electronic bat-tery testers can perform a definitive healthcheck of a battery and document the results for the customer. MM


Maintenance Selling StrategiesThree Easy-to-Implement Practices Deliver

Immediate Results

[ 5-Minute Maintenance Strategies ]

Here are three maintenance service strate-gies you can implement to elevate your ve-hicle inspection process to the next level.These practices can help you sell more,while giving your customers a better analy-sis of the health check of their vehicle.

Scan Every Car

Scan every vehicle that enters your shopfor codes. Technicians do not need a full-feature scanner; a simple scanner will dothe trick. The scan should be quick, butdo not clear the codes.

Even if the light is not on, scan it forpending codes. Random misfire codes canindicate worn spark plugs. Catalyst efficien-cy codes can indicate worn oxygen sensors,damaged converters or a faulty fuel system.Also, fuel trims can indicate a restricted airfilter or damaged mass airflow sensor.

Obtaining the codes and scanned informa-tion are a starting point to sell the customer

diagnostic time to re-solve the problem.

Look Up the Recommended Services Most technicians assume their repair

information service systems are only for diagnostics and looking up torque specifi-cations. But, they also have information onservice/maintenance intervals. This infor-mation can spot and help sell specialtyservices like transfer case fluid replace-ment, cabin air filters and other itemsunique to the vehicle.

Another resource is the Car Care Coun-cil’s Car Care Guide that can be found atwww.carcare.org. This manual is the ulti-mate guidefor con-sumers whowant theirolder vehicleto run economically and enhance its per-formance and longevity. The manual isglove-box sized and can be downloadedor ordered online. You can even ordercopies for your customers.

Alignment Checks

Do you want to make more money withyour alignment equipment? The answer isto use it. Offering free or low-cost align-ment checks will sell more alignments andchassis parts. If you feel there is too muchtime tied up in taking measurements, it’stime to re-evaluate your equipment. MM

Documents

Maintenance Matters