Culture in the garage

Tina Drayson from CCM examines whether a positive culture within a garage is possible, and how to create one for your own business
Published:  23 November, 2020

What is culture in the workplace? Is that not something that you would normally associate with big corporate companies? Can we have a good culture in the independent garage sector? The answer is yes.

Culture is about having a place of work where every member of staff feels valued and respected. How do we achieve this? It is not just about giving them Christmas parties, Christmas bonuses, breakfast on a Friday. These things are important, but it is not the whole story. You need to tap into their emotional side.

Vision
Have a vision, this will define you, your passion and your values and every member of the team needs to match your work ethic and your commitment to your customers. It is vital that you have a good company culture if you want your staff to perform their best and having a vision sets the standard.

Our industry is evolving daily, who can ever say that they are fully qualified, whatever role you do, there are always things to learn. Do your best to enable your staff to keep learning, give them every opportunity you can to train and learn new skills, allow them to do this in your time, why not, it is to your benefit. Quality family time is short enough without getting your staff to do training outside of work.

Do not micromanage. If you cannot trust someone to do the job that they have been employed to do, then you have the wrong person. Set parameters, processes and measures, I do not mean the financial kind. Create conditions that give them autonomy, ask them to set their own goals, this will be empowering and staff are more likely to strive to achieve if they are reaching for goals that they themselves have set rather than being told to.

Listen
Your staff carry out their roles daily, they are the ones at the forefront with the best knowledge of the processes and what is working and what is not. Listen to their views, you the manager do not always know what is best. Embrace their ideas and viewpoints, allow them to reach their full potential, it will not only make them feel valued but could save you time and money in the process.
Communicate, the more the better. You cannot overdo this. Tell your staff what is going on in the business, how well things are going or not, else they will only speculate.

Mistakes. They happen, we are all human. How we deal with them is crucial. Embrace the concept of ‘Assume Positive Intent’. Do you want your staff to be afraid to own up and cover up mistakes they make? Alternatively, you could generate a positive place for your staff to be open and honest about their mistakes and use those instances as opportunities to learn and not to criticise or blame. This will encourage your team to engage more. Be aware that everyone has their own areas of expertise, strength and weakness and encourage your team to ask for help.

True colours
Do you allow your staff to come in late or leave early so that they can go and watch their child take part in sports day or other activity? Why not? Life is precious and you do not get a second chance to make these memories.
Say thank you! They are only words but often go an exceptionally long way. ‘Be kind, loan someone your strength instead of reminding them of their weakness’. Be empathetic and approachable you will be pleasantly surprised. Be that manager that you always wanted.

Some of you will be thinking, that you have staff that would take advantage, maybe you do. By having a good culture, these people will soon show their true colours. The question you need to ask yourself, do you want a member of staff that on paper ticks all the boxes for the right skill set but has a negative approach or do you want a member of staff who fits with your culture? New skills can be learnt, but you cannot change a person’s mindset, only they can. You can change the culture that they work in and that in turn will have a positive impact on those individuals.

At CCM, we are not perfect, but with the help and guidance from others, we are continuously striving to give our staff a better culture. We have discovered, during this recent pandemic, that it is paying off. Our team were great. They stepped up, went above and beyond what we asked of them because they wanted to give something back.  


Electric Dreams

Following September’s inaugural World EV Day, the future of electric battery use in British motoring is considered as is how the industry might prepare for the end of the ICE age
Published:  18 November, 2020

The inaugural World EV (Electric Vehicle) Day, held in September, was the first of its kind. Designed to take place as an annual event, the day aimed to encourage the acceleration towards pure-electric motoring. World EV Day was a great opportunity to celebrate how EVs are the cornerstone of the world’s transition to a sustainable energy circular economy – and the movement towards battery power in cars is certainly gathering momentum.
    
At the heart of the EV industry is the battery. Lithium ion batteries have finally given us a power source which can be used thousands of times in their first lives, then thousands more in their second lives, before being recycled to do it over and over again. Although there are still emissions from mineral extraction and manufacturing, there are no operational emissions. This means that EVs are helping us to breathe cleaner air in our cities and are helping us to live longer and healthier lives.
    
It’s estimated there are around 1.2 billion vehicles on the road in the world, and in the UK alone there are 38.4 million licensed vehicles on the road. The sooner we switch to electric vehicles and take traditional diesel or petrol cars out of use the better for the health of people and the planet.

Environmental implications
While celebrating the merits of the EV we must also continue to think about how we enable the rest of the new circular economy to ensure we get the most out of both the environmental and economic opportunities created by these new technologies.
    
The key ingredients in an EV battery, including lithium and cobalt, are hard to mine, and come via a challenging supply chain. Happily, they are not consumed when either storing or releasing energy unlike fossil fuels. However, their performance is slowly degraded, so we must seek to understand this process and maximise performance and utility in their first and second lives, before recycling them for a further generation of uses at peak performance. This creates a circular economy which is about to get dramatically larger and more exciting.

Built on data
Data is fundamental to achieving this. Altelium is working with diverse stakeholders to ensure that data flows to where it is needed to unlock the potential of this new economy, while respecting and protecting the commercial interests of each link in the supply chain. While each stage in the lifecycle helps the planet, it also creates value. Data is the glue that holds it together.     
    
Altelium collects this data and uses its expertise to turn it into the useful information. This underpins Altelium’s warranty and insurance products which facilitate the finance, confidence and value of all the products and businesses in each part of this circular economy.
    
In order to use the batteries from EVs in second life application, it is essential to know its state of health (SOH) and the performance history of the individual battery cell. Armed with accurate data from the cells we are able to identify the healthiest ones and use them in new products such as stationary storage.  
    
Data will also ensure that any cells not fit for second life uses can be processed as part of an efficient recycling system. These systems are being developed by many interested parties worldwide, targeting at least a 95% recovery and reuse of materials. Sharing data will help the motor industry prosper as we develop the energy circular economy.  

Service and repair industry
The garage industry is centred around service and repairs, and the main challenge here is based on the availability of technicians who have the necessary skills and qualifications to work on high voltage systems. The systems found in EVs are very high voltage; as such, it’s a very specialised area of work and there is a shortage of engineers and technicians already.
    
At the moment, most owners of high value EVs – and most of them are high value at the moment – will return to dealerships for servicing and repairs rather than independent garage or repair shops. Generally speaking, these are likely the only locations in which drivers will find the correctly qualified technicians to handle EV work, certainly in the first ownership of the car and battery; around five years.
    
The downside to running EV cars with limited service and repair options is the time  drivers can spend waiting for appointments with their original dealership – currently this can  be 3-5 weeks in many cases.
    
Another crucial point for garages to understand is that the drivetrain in a diesel or petrol vehicle uses thousands of moving parts, whereas the drivetrain in an EV has dramatically fewer, wiping out most of the common reasons drivers visit service and repair centres.
    
If we look at something that all cars need regardless of power source, such as tyre changes, you might be forgiven for thinking that this is an area in which smaller local garages will keep pace, despite the major EV shifts predicted. But again, even the amount of tyres from EVs will be less. EV drivetrains tend to be so smooth that despite high torque – which usually shreds tyres - EV tyres remain in good condition for longer. EVs are all automatic, but tyre usage is even less than ICE automatic vehicles. It’s not uncommon for an EV with a good set of tyres to last 30% longer than normally expected which will – across all the cars in the UK – further reducing garage bookings. In addition, EVs will also have self-diagnostic systems running which communicate problems as or before they arise. This will further reduce breakdowns and recoveries.

Other developments
Another development currently only running in China is battery exchange systems for EVs, as an alternative to charging. Cars would drive to an automated battery swap centre, knowing from an app that it’s time to change the battery and there’s one available, and a whole new one would be installed in just a few minutes. It will be the ‘EV pit stop’ – but one that requires no human input.
    
Overall the mechanical systems within EVs are dramatically reduced so what can service and repair centres do now, to survive in five or ten years’ time?
    
It seems to me that if you’re an owner of a garage and really wanted to see some return on investment for the future, you would start training your staff in high voltage. Already some of the older EV cars are coming to the end of their warranties, with second or third owners buying at lower prices and wanting the extra value of independent garage servicing, and the numbers will only increase. This is especially true of hybrid cars which need both combustion engines and electrical systems servicing.
    
It might also be worth looking at specialisms, such as battery reconditioning. Another option might be recycling processes for damaged batteries from collisions and crashes that can’t be used but can be recycled – will your garage be a first point for EV battery recycling?
    
Fundamentally, high voltage training and investment
will almost certainly be needed in garage settings, and a long-term plan put in place – there’s no doubt about it. Now is the time to stop and consider the future of traditional vehicle service centres – and look to future-proof service and repair businesses as we move into the age of the EV.  


Clubbing together

Find out how trade clubs are innovating and going that one step further to help their customers provide the best possible service for motorists
Published:  11 November, 2020

Trade clubs provide garages with a guaranteed supply of the best parts, but there’s more to it than bits in a box.
    
Let’s look at TPS for example. TPS is the first trade operation to be owned and run by an automotive manufacturer, Volkswagen Group UK, having begun as a business back in 2006.
    
Since then, TPS has evolved into a UK-wide network of 81 centres delivering Volkswagen Group Genuine Parts daily to its customers.

Extensive
Michelle Masterton-Smith, TPS Marketing & Communications Manager, said: “Every TPS Centre’s extensive parts stock is maintained by the Volkswagen Group and is dedicated to the needs of independent local garages, which forms the core part of TPS’ customer base.
    
“With Genuine Parts identical in quality to parts used in new vehicle production, they provide assurance and peace of mind to customers. They are designed to fit first time, saving both time and money, and help provide reassurance to garages’ customers about the safety and quality of the parts fitted.
    
“Volkswagen Group Genuine Parts are also manufactured in accordance with Formula Q, Volkswagen Group's strict quality assurance system, providing a significant contribution to the vehicle’s overall safety and performance and come complete with a two-year warranty.”

Reassurance
During the lockdown period, fitting genuine parts to a customer’s vehicles helped provide reassurance to those key and essential workers reliant on keeping their cars on the road. Michelle observed: “The supply of genuine parts was an element of the overall support on offer from TPS to its customers during the most challenging of the lockdown months.
    
“During the lockdown period, we implemented a number of new, innovative ways of working to ensure we were able to maintain service levels to our customers.
    
“In recognition of the important frontline service they provided, Blue Light, AA Patrols, Government Agency and their key worker support vehicles were given precedence when resources became limited.
    
“The existing customer base was also given priority and took the decision not to set up any new accounts until the lockdown was eased.
    
“We also took the decision to protect customers and staff at all times by preventing the handling of cash and cheques and customers were asked to pay by card in advance if they did not already hold a credit account.
    
“The final change we made, was on customer calls, which were redirected to a single, national, queue-based system, but with orders still delivered to the closest operational TPS Centre. This meant calls could be answered quickly without any risk of calls being dropped or long waiting times due to less staff being available. All of this was done within a matter of days which shows how dedicated the TPS team are to customer service.
    
“These are just some of the innovative ways in which TPS has worked recently to meet the challenges posed by the pandemic and demonstrate our flexibility as a business.”

Knowledge
A further strength for TPS comes from the expertise and knowledge on offer from the staff at its Centres and generally within the business. “No other parts supplier has the knowledge of VW Group vehicles that TPS has and that ability to advise on the best parts for individual vehicle models is hugely valuable to customers,” said Michelle
    
“It is the key component of TPS’ pledge to deliver the best customer service possible, which is at the heart of its ‘Genuine Heroes’ initiative.”
    
The TPS Genuine Heroes is designed to encourage TPS Centres to be heroes to their customers by delivering excellent customer service.
    
Michelle added: “TPS’ network of independent motor traders and garages are asked in turn to adopt this ethos with their own customers. It’s something which has never been more evident during the recent pandemic, with TPS Centres and garages alike going above and beyond to deliver excellent customer service.”
 
Access
Meanwhile, garages that belong to the Eurorepar Car Service network, the all-brands garage initiative run by PSA Group, were recently able to access faster parts ordering at no extra cost for a month.
    
Distrigo Parts Distribution’s Service Box Multi-Brand is an online portal, with phone and tablet compatibility, allowing parts to be ordered remotely and in real time during a repair. Through it, garages can access OEM, leading supplier and Eurorepar all-makes parts, in addition to a broad range of tyres and consumables,
    
Distrigo recently launched Fix Plus, which provided an additional level of subscription to its parts ordering and technical data tool.
    
Garages that belong to the Eurorepar network are able to use Service Box Multi-Brand for parts ordering. They normally are able to access to the tool at Fix level as part of their Eurorepar Car Service membership, but, in recognition of the launch of Fix Plus, Distrigo Parts Distribution provided free access to the top-level during September.
 
Resource
Launched last year across the UK and Europe, Service Box Multi-Brand also provides technical data to help repairers select the most appropriate parts. Subscription packages offering varying levels of access and functionality. Now, with Fix Plus, technicians can gain access to even more technical data, as well as a dedicated technical helpline.
     
Adrian Mossop, Head of Network and Business Development at Eurorepar Car Service, said: “Service Box Multi-Brand is already a hugely popular tool among our independent service centres, and now many of them have enjoyed an even greater level of access to this valuable digital resource throughout September.
     
He added: “Members of the Eurorepar Car Service network gain Fix level access as standard, helping to boost their productivity, efficiency and service offering. With new service centres discovering the benefits of Service Box Multi-Brand every day, it’s clear that the platform can help sites of all sizes take their service to the next level.”  


Communicating essentials

Communication is the key to keeping customers happy says Andy, but how does a business make sure that the lines are open at all times?
Published:  30 October, 2020

We all know customers are one of the key elements of any thriving garage business and if you do not keep them satisfied, they will simply go elsewhere for the services you provide. It is a simple fact, but one that is so often overlooked by businesses up and down the country and the people who work within them.
    
Everyone within your garage has a critical role to play in delivering excellent customer service. There are many distractions that get in the way of us providing a positive experience to customers, as I like to call it; ‘An Experience’.
    
I regularly witness employees not understanding customer perceptions, and people who are placed into reception roles who do not possess the necessary skills and ability to qualify and deal with a customer from start to finish. Worse than that the processes within the business are inadequate which does nothing to assist these poor folks.
    
We should all realise the importance of building long-term relationships with customers, understanding what many business commentators call the lifetime value of a customer, after all without them the business does not exist.

Motivation
If we are going to provide an exceptional service to our customers, we first need to understand what their motivation is in dealing with us in the first place. Some buy because they find your price to be the lowest, some because they find your services to be outstanding, while some purchase from you because of your reputation in the garage industry. By understanding our customers, we are better placed to deal with their needs in an effective manner that meets with their core requirements.
    
But most of all, customers buy your services because of the perception of value that it gives them. However, it’s much more difficult in our garage sector as most if not all purchases are distressed sales, they are needs rather than wants and that’s why I focused so much on giving my customers a positive unmatched experience they’ve never had before.

Journey
Aside from understanding the wants and needs of our customers, it is also useful to understand the journey they take. My skill-set allowed me to value stream the processes of the customer journey from phone call to handing back the keys examining the non-value time and processes which helped us identify the danger points and start to plan how best to serve the customer for their needs not ours.
    
Now to keep it simple, I focused on six parts of the customer journey:


A bicycle made for who?

With COVID-19 upending old assumptions, is the popularity of subscriptions-based transport set to accelerate?
Published:  16 October, 2020

Coronavirus, or to be more precise, the reaction to measures designed to mitigate it, is having a major impact on vast areas of life and business. Ideas that seemed far-fetched or at best niche this time last year are now just another fact of life.     
    Garages have seen the way they deal with customers transformed over the last few months as a result of COVID-19, and the pandemic is affecting the way people shop, work, travel and live. Lockdown led to changes in commuting habits, and a pull away from public transport which has so far benefitted garages. However, with high-end folding bicycle manufacturer Brompton launching a new subscription service in September, are we seeing yet another sign of an oft-discussed idea? Will increasingly tech-savvy consumers begin to veer away from car ownership?
    Brompton’s subscription service enables customers to hire bikes from the company on a monthly or annual basis. Cycling has seen a surge in popularity in the UK in 2020, with riding levels up by 300% on some days according to the Department for Transport.
    Users will be able to take on an annual subscription, when the scheme begins, at the cost of £30 a month, or a rolling month-on-month contract for £42 a month. A new Brompton can cost £1,000 to buy outright. The new subscription service is an extension to its existing bike hire programme, through which people rent a Brompton for £6.50 a day, or £3.50 if they pay a £25 annual fee.
    Julian Scriven, Managing Director of Brompton Bike Hire, told the Daily Express: “This new subscription service will revolutionise the way people own a bike, giving them a premium product without the upfront price tag. It’s an option to make everyone’s life easier, whether you’re a commuter, student, family or just want to cycle on the weekends but don’t want to commit or have the space to own a bike forever."
Mobility
Revolutions have a habit of continuing to spin and spin far longer than anyone expects, with often surprising results. Before you rush off to find your old Che Guevara t-shirt though, ask yourself  this – Will the current shift in buying and business patterns lead to a major drop in car ownership?
    Vehicle subscription services already exist, and are often referred to as ‘mobility services’.  
    Providers, who can be a VM or a third-party, are paid a monthly fee for on-demand access to vehicles. The fee includes insurance, maintenance and roadside assistance. In the same vein as music or on-demand TV, the subscription can be turned off at any  time. VMs already employing these models worldwide include BMW, Volvo, Jaguar Land Rover, Lexus, Mercedes-Benz and Audi.
    Where does this leave independent garages, for whom the business model depends largely on owner-drivers who are responsible for sourcing their own servicing and repairs?
    John Phillips, General Manager at subscriptions-focused software company Zuora commented: “Mobility-as-a Service (MaaS) has been hailed as a trend which could integrate and revolutionise the way city dwellers navigate their passenger journeys from one form of transport to another. Deloitte has claimed that, in dense urban environments, MaaS would offer such an improved journey and passenger experience that it could replace the need for many consumers to own private forms of transportation.  
    “In recent years, consumer appetite has demonstrated a shift from ‘ownership to usership.’ A recent mobility study published by Cox Automotive highlights that the desire to own vehicles is dropping steeply among younger consumers. Enticed by the relatively small fee needed up-front and the convenience offered, many consumers in cities do not now see the need to own a mode of transport.
    “Many consumers are already used to a subscription-based consumption model. Zuora’s most recent bi-annual Subscription Economy Index (SEI) found that the subscription economy   has grown more than 350% in the past seven and a half year, an era marked by a broad consumer shift towards on-demand services.”
    John said VMs may look to make cars specifically for the subscriptions market: “To prepare for this shift in how people access transport, manufacturers should consider whether the vehicles of the future may need to be built with a subscription based payment model in mind. By developing unique, customised subscription offerings, they will enable customers to select the service which best suits them.
    “It’s time for the mobility industry to take action,” concluded John. “Many notable technology companies including Spotify, Uber, Apple and even Google have changed their business models to adapt to evolving customer demand – moving from a static and linear product offering to a subscription-based model to encourage recurring, predictable and stable revenue. The mobility industry should follow suit.”

Questions
That’s the theory. What about on the ground with the garages?  The IMI’s Head of Business Development Steve Scofield observed: “There is no question that the last five months have thrown a completely different light on life as we know it – from the transition to home working for many, to the reduced use of vehicles during lockdown. However, the latest data suggests that road usage has returned to almost normal levels; in fact the RAC reported that the August Bank Holiday weekend will have seen even higher numbers on the roads – 1.8 million – than for the break in 2019, no doubt prompted by restrictions on foreign travel and the preference for many to stay in the UK. And I think that highlights the changing dynamics of vehicle usage which is going to present our sector with challenges and opportunities in equal measure.
    “The ‘working from home’ culture is here to stay for those that can – but there is also a recognition that people work best when they can interact with others – and not just on Zoom. Work colleagues are therefore likely to look for ways to meet which will still rely on transport – whether public or private. A reaction to the halt on family meetings during lockdown has also, I believe, prompted more visits since lockdown was lifted.  And again, the reliance on private transport is key here.
    “So what’s the role of the garage in all of this?  Well I think first of all garages need to find ways to stay more engaged with their customers than they might have done in the past. For some, reduced vehicle usage could prompt ditching the car altogether, but I think for many with latent concerns about public transport, the car will still be a vital tool for work and family life – maybe just used slightly less often. A good garage should think about how to stay connected with its customers for all the basics – not just the annual service and MOT – and embrace digital solutions where possible. Young talent entering the garage network are well positioned and can add value in helping garages transition to online solutions.
    “Garage owners could also benefit and future-proof their business by horizon scanning. For instance, one area which has the potential to grow as some of society moves to an on demand mobility model instead of ownership is the rental and fleet sector. Their maintenance and repair needs will likely grow; therefore engaging in these contracts could offset any personal vehicle ownership losses garages may face.”
Transition
There’s more to think about though according to Steve: “The other factor that I think presents a real opportunity for motor retailers and garages is the increased prevalence of ADAS technology in vehicles, as well as the transition to the road to zero. The latest advances in motoring technology will require experts. The garages that will be the winners in this new world will therefore be those that place the right investment in training for their people. Organisations like the IMI and its approved training centre network will be crucial in providing the essential expertise and support for that training.
    “There are some really big challenges facing the automotive sector in the next 10-15 years, not least of which is the proposed ban on the sale of new petrol, diesel and, potentially, hybrid vehicles. The continuing development of autonomous motoring, in all its guises, is another big challenge for the sector.”
    Steve concluded: “While these challenges can appear daunting, the IMI is excited to be working with individuals, employers and Training Centres to ensure that motorists are given the confidence that their safety and wellbeing will always be paramount.“

Alternatives
Frank Harvey, Head of Membership Services at the IGA commented:  “COVID-19, lockdown and the lifestyle changes this has brought about are something we are all having to get used to. The ways by which we choose travel is also changing for many; with the government asking people to avoid using public transport, we are seeing people seek alternative means for their daily commute.
    “Public transport has long been the most popular mode of transport for many city dwellers, meaning they avoided the outlay of owning a private vehicle. As the country edges its way out of lockdown and central government is encouraging people back to work, commuters are considering their mobility options.
    “While car sharing between separate households is not currently an option, it is likely we will see a growth in services such as Hiyacar, Zipcar and Enterprisecarclub, all of whom offer a ‘Hire By App’ kerbside pickup/drop off, hourly hire, vehicle mobility solution.”

Downsides
Is there a downside? Frank said there are several: “Experience shows us that due to the nature of the drivers who make use of this type of mobility solution, vehicle care and consideration is not always a priority. Couple this with potentially ‘rusty’ driving skills. Contrary to initial thought, these companies could offer business opportunities for good, local independent garages to keep their vehicles safe, roadworthy and available for hire.
    
“A government survey published in 2019 showed that, other than cost savings, there was more of a negative attitude towards vehicle and ride sharing than there was a positive one, however recent events may have made this a more attractive option than using public transport.”

Vital
Perhaps we are worrying about nothing though: “Due to the ways in which most of the country has had to adapt to new working and living routines during lockdown, such as working from home and purchasing goods online, we have without doubt seen the number of miles being driven in private cars reduce over recent months, with a low in early April of 22% of pre-lockdown vehicle usage. However, from the beginning of August we have seen this recover to around 91% of the pre-lockdown figure, which would indicate that the private car is still a vital social utility.
    
“As a nation we have a culture of ‘ownership’ especially when it comes to a private vehicles; with over 38 million licenced vehicles on our roads, of which 27.5 million were registered between 2000 and 2017, it is reasonable to assume that the majority of those vehicles over three years old are privately owned.
    
“Recent press articles would indicate that the aforementioned city dwellers are beginning to purchase cars at the lower end of the value range, to avoid using public transport. All will need MOTs and undoubtedly repairs and maintenance of some description, which is all good news for independent garages and the aftersales market as a whole.”
    
Frank added: “There is one key indicator from our recent global experiences, and that is the need for all businesses to have a good online identity and the ability to be able to connect to their customers in a way that reduces face to face contact, but also give the customer confidence in the organisation they are doing business with.”

Final thoughts
Whether or not motorists will embrace subscriptions in large numbers remains to be seen. However, looking at how you run your business from a different perspective will help you  to innovate and take advantage of new opportunities.
    
Remember, often garage owners take some time to realise that they are not in the business of just fixing cars, and that they are instead in the business of running a business. In the same vein, you thought you were in the vehicle repair industry didn’t you? You’re not, you are in the mobility sector. If it is changing, you will need to change too. That might mean completely re-thinking how your businesses is structured. Issues around the price of battery replacement has already helped to accelerate the leasing model in electric vehicles, which was already popular.
    
One thing COVID-19 has shown us though is that when change comes, you can’t always predict where it will come from, or what the result will be. You just have to roll with it sometimes. Whether or not you own the vehicle that carries you, that’s up to you.


Pod life...

Garage owners could benefit from the popularity of podcasts to communicate with potential customers
Published:  14 October, 2020

Driven by the change in the way people consume television programmes, which has seen a significant shift to on-demand services like Netflix, Amazon Prime and BBC iPlayer, the country’s listening habits are being transformed.
    
Until the recent stay-at-home warnings, the number of people listening to live radio had been dropping and is expected to do so again once the Coronavirus crisis has passed. Conversely, those choosing to listen to podcasts has increased significantly, with the latest RAJAR data reporting almost a quarter of 15 to 34-year-olds now listen regularly to podcasts.
    
A podcast is a set of digital audio files that are made available on the internet for people to listen to immediately or download for later use. Users can subscribe to specific podcasts to ensure they receive it as soon as a new one is uploaded.
    
The biggest brands in the world, like Jaguar Land Rover, Nike and Microsoft understand the power of branded podcasts, but regardless of the size of a business, podcasts are a great way to communicate your value proposition to an engaged and captive audience.
    
This on-demand format reflects the growing trend amongst the public and lets brands tell their story anywhere, anytime.
    
For a small garage owner with local clients, there may not be an urgent need for a high-quality global podcast in normal circumstances, however, the current coronavirus crisis has caused uncertainty for businesses of all sizes.
    
This uncertainty has led to a slowdown in business, with many workplaces temporarily closing their doors to adhere to the government’s social distancing measures.
    
During this period, it’s crucial that garage owners maintain their existing relationships and communicate frequently with customers, offering advice or guidance to those who need it most. For this reason, podcasts could be an effective way of keeping in touch with clients, allowing them to take information from podcast episodes and feedback on posts with further mechanical questions.
    
Once you get started, you may find that the podcasts are offering value as a separate forum to promote your business and it could be an idea you want to maintain when business eventually returns to normal.
    
Businesses now use podcasts for a variety of purposes, including sharing information about new products, company news or general information related to the sector in which they operate and even information aimed only for the ears of their employees.
    
Incorporating podcasts into your marketing strategy offers numerous benefits for your business and there’s never been a better time to get started.
    
Your podcast is the opportunity for you to demonstrate, then share your experience and expertise to listeners. Traditionally, you may have relied on the written word, but podcasts are a better way to show your true personality and enthusiasm for what you do.
    
Regular podcasts offering information, opinion and new ideas for discussion help establish you and your business as a leading authority, to be trusted by customers and new prospects alike. Inviting similar respected individuals from within your business or from across your sector to help create the podcasts, will only add to your credibility and generate further trust from the audience, whilst expanding the number of likely listeners.   

Building a stronger connection
Hearing people present sector news or discussing topics creates a stronger connection with the audience than them simply reading the information on a web page. When your podcasts are regular, listeners recognise your voice and presentation style, hopefully finding it a pleasant experience.
    
Listening to you explain in person helps the audience better understand your values and the way you run the business. You become a companion voice, a source for interesting news to be listened to whilst they undertake other tasks; unlike video or reading, which requires their undivided attention. If you’re good, there is the added benefit of your podcast being recommend to others who may be interested in what you have to say and sell.
    
In a survey conducted with 300,000 podcast listeners in the US, around 63% of respondents indicated they had bought what the host had been promoting, which demonstrates the power of podcasts to positively influence the buying decisions of the audience.
    
A podcast may be relatively easy to produce, but the content is critical to the success and longevity of your activity. The mechanics are easy enough, requiring just a good microphone connected to your computer to make the recording and a way of editing the finished sound files. However, while it is often lauded as a DIY project, it is easy to make a podcast that only you want to listen to and professional producers will enhance the quality of the output considerably.
    
The producer is also helpful for handling the transition between speakers, asking the questions, requesting clarification of unclear points or jargon and ultimately editing the hours of chat into a professional and efficient 25-minute sector-specific podcast that thousands will enjoy. The content can cover current events, changes in the sector, news specific to your business, a discussion around sector-specific topics, trends, legislation etc., but it must be interesting to the target audience and delivered in short sections.
    
Thirty minutes on a single topic might bore the average listener, it’s easy to break the topic up into pieces and deliver several podcasts that revisit the subject. It’s also good to point listeners to your website if you have more detail on a topic, like a guide or catalogue they can download.
    
You don’t have to be funny or try hard to entertain. You just need to use your experience and imagination to deliver short bursts of interesting chat or discussion, in a professional manner, with the content tailored to your audience. The more you do, the easier it will become. Once finished, you can start promoting your podcast to increase its exposure to a larger audience. You would need to make the podcasts available on a variety of distribution channels, or enlist the help of a podcast producer, who will know the best channels to choose.
    
If you want to talk in detail about sensitive information only for your employees, perhaps explaining strategic decisions, or current lockdown policy, a private podcast can be created and a link emailed to specific recipients - it can be password protected if necessary.

And finally
Podcasts can be a uniquely spontaneous, informal and intimate medium, perfect for delivering important insight with emotion, warmth and passion for a topic.
    
It’s not all about well-edited scripts or carefully crafted questions, but about researching the topics carefully, agreeing what’s to be covered and then talking with friends as you would in the pub, not the boardroom – it’s where the authenticity comes from.
    
Everyone involved can be in a separate location, which at the time of writing makes podcasts the perfect tool for bringing people together to create memorable content that an engaged audience will find truly valuable.

 


Coaching essentials

Andy Savva goes over top techniques to support your team’s development
Published:  29 September, 2020

There are four main types of support and development that can be provided to employees.  Each has a different purpose, different benefits, and should be used for different situations and objectives. These are counselling, mentoring, coaching, and training.  
    
Counselling is a form of consulting and often is part of a measurement outcome or employee evaluation. Counselling suggests therapeutic outcomes and focuses on the past.  Coaching does not do this. Coaching may occur before counselling, instead of counselling, or in addition to counselling.
    
People with an expertise conduct mentoring. This expertise enables them to advise new or inexperienced employees. Mentoring is a process that helps people with their career development. Mentors provide guidance to help people attain the kind of professional achievement they seek. Mentoring differs from coaching in that it is a long-term process and mentors have no responsibility to their mentees for personal and professional development. Mentors provide motivation, connections, and advice, but they do not directly enable mentees to improve their performance. Coaching is a conversation focused on helping other people (the clients) move forward relative to their goals, hopes, and curiosities. Goals are accomplishments yet to be achieved; hopes and curiosities are the rough material of future goals. For coaching to be helpful, it needs to tie to something the client wants to accomplish. Many people confuse coaching with advice. When people give advice, it may not be welcome. Coaches focus on clients and the goals they want to achieve.

The aim of training is to develop the knowledge and skills of the learner. This is the only time it should be used. Training may also raise the levels of motivation, attitude, or commitment.

I want to use this article to focus on the understanding of coaching. The International Coach Federation defines the practice as:
“A professional partnership between a qualified coach and an individual or team that supports the achievement of extraordinary results, based on goals set by the individual or team. Through the process of coaching, individuals focus on the skills and actions needed to successfully produce their personally relevant results."
    
Over the years, coaching has become an increasingly popular tool for supporting employee development. Research from the Chartered Institute of Personnel and Development shows that the technique is very popular and an important skill for managers to have. Although coaching is now widespread among employers, there are continuing issues about how best to manage and deliver coaching arrangements in an organisational setting.  
    
One key action in coaching is establishing trust and openness with employees. This may involve creating a comfortable environment to have conversations in; making agreements about how to handle sensitive or confidential topics and sticking to those agreements; clearly stating the purpose of coaching discussions; and enabling the client to take ownership of changes that he or she needs to make to improve performance. Another key action is asking powerful questions. A good coach listens more than he or she talks and uses questions well to make the coaching relationship more productive.

When to Coach
Developing key workplace skills - Coaching is a quick and direct method of growing key skills of individuals in the workplace, our garage environments. When carried out effectively, coaching helps ensure that employees receive development as and when it is required, and this ‘on-the-job’ development helps ensure they have the skills to do the job.
    
Preparing for a key task or project - Where there is a key task or project that a person needs to undertake, it is useful to provide them with coaching to ensure they have a clear understanding of not only how to perform the task, but also the goals and actions required to get there. Coaching also provides an opportunity to review and monitor progress.
    
Having a difficult conversation with a colleague – Using a coaching approach can help avoid confrontation and will ensure your conversation is target driven rather than just a series of complaints.
    
Receiving unhelpful feedback - Where we receive negative feedback, it can be made to be much more constructive if we take a coaching approach. This means that the unhelpful feedback can be turned into something that is constructive and useful.
    
Preparing for an important meeting - Coaching will help ensure the important meeting is structured and has useful outcomes, giving the participants a clear understanding of the objectives and goals.
    
When there is a personality clash or conflict - Much like when you receive unhelpful feedback, it is useful to turn unstructured, negative discussions into more constructive and goal-oriented conversations.

Why Coach?
Aside from the question of when to coach, we should also consider why it is important that we do so. There are many good reasons and here are just a few.


The new role of social media: How to... GET IT RIGHT

Find out why social media is playing an important role for the garage industry, and get some top tips on making sure your messaging works
Published:  22 September, 2020

We have seen lockdown restrictions being lifted, but, the next few months will come with its own set of challenges for the aftermarket.
    
A backlog of jobs, social distancing rules, and safety restrictions means providing new and old customers with a quality service can be challenging. However, an effective social media strategy can help.

The right message
The pandemic has changed the way customers, suppliers and the entire supply chain functions. With face-to-face interactions limited, digital touch points for customers are increasing and social media now plays an important role in how businesses keep in touch. Getting your social strategy right can mean the difference between making a future sale or seeing a customer go to a competitor.
    
It’s important to make sure your messaging is clear, concise and reassuring for the customer. With many seeing reduced income due to the pandemic, motor-related issues are likely to be far more stressful than usual. Alleviating this, for example by making sure information is easy to find, will go a long way in improving the experience, and help to secure new customers.
    
Creating content that appeals to users who are in the research phase will also help businesses. Market shifts resulting from the pandemic means people will be open to new alternatives. Ensuring your social media feeds have engaging and informative top funnel content, will put you in a better position for becoming the preferred alternative supplier.

Key considerations
Your social media strategy should add value to the lives of your audience and customers –by providing helpful information, offering respite from everyday stresses through engaging and entertaining content, or educating your community.
    
Focus during the next few months should be on stress reduction for your customers. This might look like clear communication of essential information such as whether your business has reopened, what your opening hours are and if these have changed, and how you are adhering to social distancing rules, or it could be through sharing promotional offers and payment plans which relieve final stress. In addition to sharing information about your establishment, use your social channels to keep customers up to date on important industry announcements; this will help to position your business as a trusted industry leader.
    
To stand out from your competitors, consider using your social channels to add value to prospects and customers – for example, through the use of educational content such as how to guides for easy car maintenance.  

Messaging to avoid
The world is still recovering from the impact of Coronavirus, and many of your audience may be finding their feet again. Taking an over-promotional approach, particularly when it comes to messaging around Coronavirus, can negatively impact on the favorability of your businesses and serve as a deterrent to potential customers.
    
Too many sales messages can have a similar effect too; your customers don’t want to be inundated with deals and products during a time where purchasing power may still be diminished. It’s also worth bearing in mind the mental impact the whole situation will have had on your community; it’s been a difficult and confusing time.
    
The steps you’ve taken during lockdown are ones which you should continue to bear in mind for the coming months, and beyond. It’s likely the aftermarket will take some time to fully recover, but by paying attention to digital strategy – and in particular your social media presence – you stand your business in very good stead for being a favoured brand on the other side.


Wow or WOAH factor?

Andy examines quantity versus quality, and asks why your garage might make customers say “WOAH when you want them to say “WOW!”
Published:  22 September, 2020

Do you work in a quality business? Or a quantity business? Is it possible to have a garage business that has both? How do we define quality for that matter? You see everyone’s perception of quality is different, which makes it difficult to work towards a particular grade of quality.
    
If you examine the excellence and quality movements in detail as I have in the last 15 years or so, you will see that what the really offer is to turn back the clock, applying the standards of bygone days to today’s profit-based material age. The premise is that if you get back to product or service supremacy through quality you cannot fail. Sadly, it is an entirely false premise.
    
Customer satisfaction is no longer enough. Satisfied customers are not loyal customers. They shop around – they may like you, but not enough to resist the temptations of your competitors. Truly loyal customers can’t imagine doing business with anyone else. They become advocates for your garage.
    
Companies who have such customers have managed to create a customer experience that is consistent, intentional, differentiated, and valuable. To do this they use all aspects of the business, marketing, operations, and the most important factor the human element.

Superior service
You could have a quality product or service but if not matched with a superior WOW factor service experience you have no hope in succeeding. Let me give you an example, Curry’s sell quality products, yet the service in most cases and what I have experienced is really lacking. These stores are huge, selling hundreds of lines yet hardly anyone works in them, and if you do find someone to assist you they have very little product knowledge.
    
Now, take off your business hat and ask yourself, as a consumer, how many genuine quality businesses do you know? If you can think of one, perhaps even two or three, where you are constantly and consistently super-impressed, not just with what they do but how they do it, you are doing well. You have seen the WOW factor at work. You may even have glimpsed a miracle. My guess is that you will be thinking of a business that puts its relationship-building substantially in front of making the next sale.
    
These are the kind of businesses that share one of my philosophies about customers: that it’s far better to concentrate on what you do for customers than what you do to customers. Despite all the new technology, and the mind-blowing rise of call centres which in my view do very little in increasing the customer experience and other magic customer service-enhancing devices, companies still frequently fail their customers.
    
The reason is not so often that the computer system has gone down, although that happens frequently enough!) it is mostly because the culture, philosophy and ideals do not exist. When this happens, it’s a people issue.

People power
For those involved in selling, and that’s what we do in our garage businesses, this is a mammoth task. Selling has, it seems, been quantity-driven since time began; but, in the last 20 years, it has become quantity-obsessed. This obsession has, in my view, led to practices and standards in our garage sector that can barely be justified. There is no mitigation. We are all to blame. We have all seen the £99 service, MOT, three-course meal and the kitchen sink deal. Someone please explain to me how anyone can charge so little and offer a quality WOW Factor experience?
    
Given the choice – and they will be – no customer in their right mind would want to deal with a person driven by quantity objectives. Customers already know that, so often, quantity objectives work against quality objectives. Look at the classic high-commission businesses and the reputation they have: double-glazing or perhaps even office equipment. There are many more, including, sadly in our garage sector.

What next?
Find where you and your business are, and remember it well. If you do nothing to give your customers the WOW Factor, the future has some difficult and frightening times ahead, times of uncertainty and high risk.
    
Far be it for me to put the fear of God into you about the future, but that’s exactly what I think might need to happen. I, and many others before me, have pointed to change being the cause of this fear. Not just change itself, but its rate and frequency and scope. In such circumstances you must look to make yourself and your business stronger, more resilient. I have two suggestions for this.
    
The first lies in your business process, I witness so many garages lack of processes that do not consider the customer journey and the impact it has on them.
    
The second lies in the quality objectives you need to create that are understood and breathed by everyone in your business.  For one aspect of the quantity/quality discussion we have not considered is this; quantity only builds immediate sales; quality builds friends. Friends, in the long term, build greater quantity, which yields the miracles that create the WOW factor.
    
Lastly, just before I end this article, Id like to point something out. It may seem obvious, but don’t look for a switch. There isn’t one. You can’t turn a miracle on. There is nothing anyone can flick to change your environment from quantity driven to customer driven. It is truly a pendulum. The only thing you need to know about this pendulum is that its relentless: It was for me running my last garage business it was actually unstoppable.   


BUSINESS PLANNING

Part two
Published:  09 September, 2020

In part two of his look at business planning , Andy looks at what the objectives should be for your garage in the short, medium and long-term


Brakes off! It’s time to accelerate…

Six top marketing tips for garages from Kalimex’ retained marketeer and the international #1 bestselling marketing-on-a-shoestring business author, Dee Blick
Published:  07 September, 2020

With the country gradually emerging from lockdown, now is the time to forge ahead with your marketing. What should the message be though, and how should you deliver it?

1: Let customers know you are open for business
Your commercial customers and motorists alike should be aware of your opening hours, the PPE you are using and the new measures you are adopting in line with government social distancing guidelines. Have you enhanced your customer service to offer safe contactless pick up and drop off? If you have, explain how it works. This will instil confidence in those customers in self isolation, and commercial customers looking for a smooth, safe, and streamlined service – to contact you.
    
What steps have you taken to ensure your unit is a safe, clean, disinfected, and welcoming space? Manage the expectations of all customers with regards to how long it will take to complete a repair, service, MOT etc. Is it likely to be longer than usual because of the new guidelines or you have (as is more likely) been swamped with work? Have you had to change any aspects of your service? For example, all customers must now contact you by telephone or email rather than calling in which is currently on hold. Inform customers, answer their most common questions and make it clear you are looking forward to welcoming them back and making their experience with you as good, reliable, and friendly as ever.

2: Say what new services are you now offering
Vehicles have been stuck on driveways for weeks only taken out for short runs. DPFs are likely to need cleaning and attention. Services are overdue. MOTs delayed. The list goes on. Make a list of your new services/additional vehicle checks with any corresponding offers. You will naturally distinguish between commercial customers for whom vehicle downtime means lost business and motorists keen to keep their vehicle in good working condition for longer than anticipated as they return to work. What are the specific vehicle problems each group may be facing? When you have your list of services and special offers plan the dates for releasing them, so you have a steady stream of enticing campaigns running over a 12- week period. Be sure to pull out all the stops for commercial customers. Can you offer them guaranteed early booking dates?
    
Stuck for what to say to commercial customers by way of an introduction?  Try this: “As one of our VIP commercial customers we are welcoming you back with an exclusive VIP offer this month… plus an important update on the new services we have launched to keep your fleet safe and, on the road.”

3: Use the phone
You should contact commercial customers by telephone to let them know you are open. Be organised though. Rather than just asking a team member to make the odd call here and there, treat this as a campaign – the goal being you want to ensure that every one of these customers has been contacted personally within the first five days of you opening. Make the call as much about listening as well as informing, letting them know of your services, your welcome back offers and the changes you have made in line with the new guidelines. Use the call to update details and make corrections. What is the email address of the person you should be sending information to?  Is the trading address on your system still accurate? (Do not assume anything given the pandemic and the effect it may have had on a customer’s business).

4: Get flyering
Create an A5 flyer, or flyers,  combining the details of a new service, or services, and any corresponding special offers together with the information I shared in the first tip. Printing costs are at an all-time low so take advantage of this. Put the leaflets through the doors of homes in the postcode areas where most of your non-commercial business comes from now. Do likewise for your commercial customers with a different wording to reflect their needs and the services you have launched specifically for them.

5: Get vocal on social media
Promote your activities and offers on social media. Take some nice photos of your workshop with the message ‘Open for business.’ A picture of your team will go down well too. Add some human interest to your posts to encourage sharing and support.  Send the picture to your local paper. They are looking for good news stories so an accompanying message along the lines of the following will go down well: “The team at John Smith’s Motors are open for business with a freshly decorated workshop, full PPE and offering new services including contactless drop off and collection of vehicles plus a range of pre-service vehicle checks.”

6: Use your calendar well
Ensure campaigns are scheduled in your calendar so at a glance you can see: who the audience is (i.e. our VIP commercial customers), what you are offering (i.e. special offers on Kalimex six workshop products), what your message is (book your vehicles in for pre-service checks including a DPF check) how you are going to promote this campaign ( telephone call and two emails; one email to launch the campaign and one as a follow up) When it starts and ends (1 July – 31 July), and finally who is responsible for ensuring this happens (i.e. Colin our apprentice). If you can plan in this simple but effective way, workshop bookings will increase. Not only are you leaving nothing to chance, you are ensuring that shoestring marketing is driving those enquiries and bookings on a consistent basis – week in and week out.

Good luck!

Please do not hesitate to contact us at Kalimex if you want to know more about our Accelerate campaign for professional motor mechanics and the details of your nearest stockist. We are here to help and support you. Email colin@kalimex.co.uk or call free on 0800 783 3717.


Shifting demands, shifting gears

Garages have been adapting as circumstances change, and have even bucked some trends along the way according to marketing agency Digital Incubator
Published:  02 September, 2020

Garages that thought they would be veering away from MOTs in favour of essential repairs during the Coronavirus lockdown are still doing MOT tests at roughly the same rate, it has been suggested.

While DVSA figures showed a 78% drop in MOT performed between 30 March and 24 April, marketing agency Digital Incubator says the independent garages it works with that remained open during the lockdown have not seen such a steep drop.
“We have a lot of garage clients that have switched from MOT campaigns to clutch and gearbox work,” explained Jamie Stoulger, Sales Director and Operations Manager at Digital Incubator. “However, our clients are still generating a steady flow of MOT enquires.”

Campaigns
The marketing agency works with garages across the UK, and currently has over 1,200 motor trade campaigns ongoing. 80% of customers are in the independent sphere.

Jamie continued: “Regardless of the MOT not being relevant, people are still getting their cars picked up. A lot of our clients run a collect and delivery service. We are running that via the ad campaigns and on the website.”
There has been an impact, Jamie confirmed, but a mild one at best, and work overall continues: “MOTs have slowed down slightly, that just what it is, but regardless of us being in the middle of this pandemic, if someone still has to go into work and their car breaks down, they still need to get it repaired. They are not going to just leave it on the side of the road and deal with it six months later. You need it done. As a result, our clients are still generating leads.”

Performance
We asked Jamie he thought this has taken many of their garage clients by surprise. “I wouldn’t say so,” he replied. “There are a lot of franchised dealerships and service centres that have just closed their doors without even thinking about it. They just went ‘we can get funding, let’s just put everyone on furlough’. The garage businesses that decided to pummel through this, they are still performing. There might be a small dip in some cases, but across the board, our averages have not really dropped. I don’t want to make a bold statement and say it isn’t affecting anyone – it is – but they are on average not far behind where they usually are. It has hit them, but we are not talking about 50%. The drops in business are probably around 10% to 15%.”

Situation
On what has been in many cases blanket closure by across much of the franchised network, Jamie observed: “I worry about the outlets that are closing their doors without making the slightest attempt at generating business. It’s still out there. People forget that. Across the board, if you think about it logically, there might only be 50% of the business available, but if 80% of the outlets are closing down, the garages staying open will benefit. I think a lot of businesses are going to come back to a very big decline in their own customer base. Their customers have had chance to test another garage out. If they had a better service, I know where they will go the second time around.

 “I think some businesses have taken things a little too far. There are things you can put in place, like contactless pick-up and delivery. Dealerships could have put in place what the independents have done to keep their workers safe and the customers safe. If you can, do everything contactless. A lot of companies are going to go bust because of this. The best bet is to do things safely, ensure it is all contactless, but keep the doors open. The business is out there, they just need to be a bit more open about how to get it.”



BUSINESS PLANNING

Part one
Published:  25 August, 2020

In a two-part article, Andy considers how business planning is the source of success for any garage. First, he considers the role of a solid process


Buyer beware: Fake car parts

The role of search engines in directing buyers towards counterfeit automotive parts is examined
Published:  11 August, 2020

The automotive sector faces huge volumes of counterfeit vehicle parts. The European Union Intellectual Property Office (EUIPO) estimates that more than €2 billion is lost each year due to counterfeit tires and batteries being sold and offered for sale inside the EU. Particularly alarming is the recurrence of counterfeit airbags within the top search results. Research by Incopro revealed that one website selling counterfeit Honda airbags received 61.24% of its traffic from organic search and placed on the first page of results.

Risks posed by fake parts
Fake automotive parts do not adhere to stringent safety regulations and put people at great risk. Counterfeit airbags, brake pads, seatbelts and tires all increase the risk of serious injury or death if the vehicle outfitted with them is involved in an accident.
    
Counterfeit airbags have been linked to fatal car accidents. In 2017, a female driver crashed a Kia vehicle into a tree in Highland Park, Dallas Texas, and lost their life after their airbag failed to deploy. It was only two years later that investigators discovered that the airbag module was counterfeit – it was poorly constructed, did not contain a firing mechanism and the main inflatable airbag that should have been present was, instead, replaced by rags.
    
Fake brake pads have also been found to be made of all manner of unsuitable materials, including dried grass dyed to look like rubber.
    
A test conducted by Mercedes-Benz that compared real and fake brake pads showed that cars driving at 100km/h on a dry surface travelled a further 25 metres to come to a complete halt, potentially changing a minor accident into a major collision where human life is put at risk. BMW conducted another test in 2017 where fake brake pads started to smoke and disintegrate almost immediately, indicating that they would completely fail to bring a vehicle to a halt.

Identifying dangerous websites within search results
Fakes may be easy to identify in person, but it can be harder to do so when purchasing online. Buyers are lulled into a false sense of security when seeing automotive parts displayed on the first page of Google (Fig.1) or other large search engines, reducing the level of scrutiny these products receive.
    
In the research, which was conducted using keyword searches for airbags with and without the names of popular car brand names, showed the first 10 results of a keyword search on Yandex, the Russian search engine, using the term “купить airbag дешево” (English translation: “buy airbag cheap”).
    
The website in seventh position was identified as a harmful website. This website generates 61.24% of its traffic from organic search.
    
A product page for a Honda branded airbag on the airbag-master.ru website is shown (Fig.2). The website is advertising a Honda passenger airbag for 7,000 Russian Rubles, equivalent to approximately £89. The retail price of official Honda airbags is closer to £800. The site also offers a discount of 10% for those customers who buy two or more.
    
Furthermore, the product is described in Russian as “Характеристики: неоригинал” which translates to indicate it is not an original manufactured product, despite their claims that they are working directly with the manufacturers. Add to that, the site claims to sell high-quality products, but on closer inspection, the airbag in the photo is, in fact, ripped.
    
Another recent investigation undertaken by Incopro on behalf of a leading car manufacturer revealed that a website offering over 64,871 ‘branded’ parts, the majority priced below 50% RRP, was easily accessible through search engines. The low price and the fact that the items were stated to be shipped without the original packaging indicates this site was likely selling fakes and was therefore harmful to end users.

Counterfeits infiltrating the supply chain
In another upcoming piece of Incopro research that asked US and UK consumers to indicate the fake products that pose the biggest threat to society, alarmingly, only 6% of US and UK consumers said fake car parts. This is despite the danger to life from fakes such as tires and brake pads. This figure likely reflects the fact that consumers are rarely part of the purchasing process for car parts; mechanics and garages determine the replacement parts needed and will place the order.
    
It is most likely that consumers will take their vehicle to a mechanic to source and fit an airbag. In the ever-competitive motor trade, some garages are known to source parts from various suppliers, including online sites such as the example highlighted above, ‘Airbag-Master.ru’.
    
While the mechanic sourcing the airbag will have greater knowledge than the average user, there is still a risk that they may buy sub-standard or counterfeit parts, especially from wholesale sites offering parts at a discount. If counterfeits are bought in large quantities from these sites, there are widespread implications for drivers.

What must search engines do to rectify the issue?
It is brand owners and their representatives who are best placed to verify the authenticity of their branded car parts. However, there are currently no scalable solutions available to them to notify search engines and have infringing pages removed from results.
    
By providing a scalable solution for the removal of illicit results, search engines would have a lasting impact on this problem, especially where sites rely on organic traffic to survive. Every stakeholder should welcome the ability for rights holders and their representatives to be able to take action against indexed pages or websites which directly lead to trademark infringing content.
    
By taking the lead, search engines can together set the standard for protecting everyone online.


GDPR: Taking the cake or the cookie

Got some time on your hands? In her second article for Aftermarket, Rebecca asks whether you should use it thinking about your GDPR policy
Published:  28 July, 2020

By Rebecca Pullan, Carmaster


You don’t know what YOU don’t know

ADAS may be helping drivers become safer on the roads, but it is creating a whole series of new and complex questions for workshops to ponder over
Published:  10 July, 2020

The well known expression of ‘every cloud has a silver lining’ may in some cases be the reverse – that what looks like a good opportunity, actually has a hidden problem. The fitment of advanced driver assistance systems (ADAS) by vehicle manufacturers to provide ‘added value’ to their vehicles is mushrooming, as well as a significant number of these systems now becoming obligatory under vehicle Type Approval legislation. These twin trends offer a welcome increase in the work that will be needed to diagnose, repair and re-calibrate these systems in the workshop. However, the word ‘mushrooming’ may also have other connotations in this context with another well known expression of ‘being kept in the dark and covered in muck’  from the perspective of the independent workshop.
    
There are a number of problems when the implementation of ADAS is considered, not the least of which is just exactly what is defined as an ‘ADAS’. There are scant details when you start looking and there are ‘interpretations’ of the systems that fall into this category. From the legislative perspective, the transport section of the United Nations (which is increasingly the reference for vehicle Type Approval in the EU) simply shows the following:
 


Who’s going to fix your car tomorrow?

In her first article for Aftermarket, Rebecca Pullan from Carmaster in Harrogate she gives her perspective on the impact of tech companies on our sector
Published:  29 June, 2020

Disruptors. These exist because technological advances often create a new, more direct route towards an end goal. They are often so innovative that they appear, almost as if by magic, like a Doctor Who-style door to an alternative universe. Unbelievable things that appear in your everyday workplace. Just ask any estate agent or travel agent. They are not fiction.
    
Naturally, for the end user they also offer ease, convenience or financial benefit. The best of these so-called ‘disruptors’ offer all three. Hello Uber...But beware. No business is immune while we have entrepreneurs from outside the sector who think they understand what we need to be doing.

Disruption
In my opinion, Who Can Fix My Car.com cannot be defined as a disruptor. The definition is too good for it. There is no doubt that the motor trade is Dickensian in a lot of ways but is this the revolution that it needs? I don’t think so. Let’s look at a few parts of the jigsaw.
    
In order to bid for work on Who Can Fix My Car, you must pay an initial membership fee (cost one). This is the first cost that you will encounter in the process.  And who is the most likely to win? You guessed it. The cheapest. A good quality, value for money, modern thinking workshop will never win. The word win is a verb, showing success. You won’t find any here, at either end.
    
This competition does not benefit the customer. Instead, while they may initially feel the financial benefit, work is often of poorer quality and can lead to further problems down the line. There is no profit left for the investment in the specialist equipment required to maintain modern cars or the staff needed to operate it. When margins are eroded like this, it’s really no surprise that so many talented colleagues are leaving our industry. The overall result of this is a skills shortage and an inability to provide a decent service to the customer. By ‘winning’ the work you must also pay the fee (cost two).

Confusion
Servicing fees are often in excess of £12+VAT. Despite this, many workshops are offering to complete a service for under £100. And yes, that does include VAT. Which begs the question, what is the customer actually getting for their money?  Excuse my little diversion.    
    
What does the customer get for this money? What does a service mean? Anyone? Even the main dealers are confused by this. Our local dealership will call during your ‘service’ to ask if you want the ‘brake service’ at additional cost! Hmm. This confusion leaves plenty of space for even more derogation of the classic service. Perhaps we could just wash it and top up the oil?

Wrong?
A final note from me: Say you do win the job and you’re a great garage; you’re taking a view. Say I’m wrong (this is most extraordinary, as my husband will agree). Now what happens?
    
You have a new happy customer whom you have wooed with your very best and probably at rock bottom prices. You might have even made a loss. Later, they need those pads and discs, you remember, the ones you advised? Do they call you? Nah. They start the whole process again.





 


Brakes off! It’s time to accelerate…

Published:  25 June, 2020

 Six top marketing tips for garages from Kalimex’ retained marketeer and the international #1 bestselling marketing-on-a-shoestring business author, Dee Blick


“Wiper” away your worries: TRICO highlights upselling opportunities

Published:  08 June, 2020

TRICO is reminding garages that upselling wipers can be a handy additional income stream at a time when other work at an all-time due to COVID-19 and the MOT extension.


Coronavirus: furloughed workers and what it means for business

Published:  05 June, 2020

Getting the details right is vital for businesses looking to furlough staff under the Coronavirus Job Retention Scheme


GSPR – Is it a four-letter word?

The General Safety Protection Regulation is a mouthful, and it’s going to be here to stay from 2022. What will it mean for independent garages in practice?
Published:  04 June, 2020

The Americans love acronyms. They even have an acronym for acronyms – ‘TLA’ is a ‘three letter acronym’. Well, there is now a new acronym to remember, but this one is from the EU and has four letters (should that then be a ‘FLA’?) – ‘GSPR’, or more correctly known as the ‘General Safety Protection Regulation’. The official title is the ‘REGULATION (EU) 2019/2144 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019 on type-approval requirements for motor vehicles and their trailers, and systems, components and separate technical units intended for such vehicles, as regards their general safety and the protection of vehicle occupants and vulnerable road users’, a snappy little title that does not roll off your lips as easily as ‘GSPR’. This new Regulation has now passed into EU vehicle type approval law and will impose changes to vehicle design for all new vehicle models that are entering the market (i.e. new vehicle type approvals) from 6 July 2022.

Motivation
Let’s look at what this new Regulation is all about, and what relevance does it have to independent workshops.
    
The motivation behind this Regulation is to address the problem of 25,300 people dying on Europe’s roads in 2017; a figure that has remained constant in the previous four years. Moreover, 135,000 people are seriously injured. In addition to the safety measures to protect vehicle occupants, there are also specific measures to prevent fatalities and injuries of vulnerable road users, such as cyclists and pedestrians to protect road users outside of the vehicle.
    
By mandating these new safety systems, there should be a reduction in these figures, but equally, these vehicle systems will need diagnostics, repair and re-calibration, so there is a welcome potential for independent workshops.
    
In simple terms, the legislator has imposed new safety related systems for new vehicles, but these systems are mainly Advanced Driver Assist Systems, or ‘ADAS’ as a better-known acronym. The list of these new systems is:


The good, the bad and the ugly: Third party work providers

Andy asks whether online aggregators are good news for garages, or whether they are storing up trouble
Published:  26 May, 2020

A hot topic within the industry, and one that I cover in my business courses, is online service providers;  third-party booking sites or aggregators – or whatever you happen to call them. Let’s recognise what they are, and examine why these aggregators exist in the first place.  
    
Think from a consumer’s perspective. Chances are that when you go on holiday, you reserve a hotel through a third-party booking site, for example, Expedia or Hotels.com. My guess is that this is exactly what you do because in today’s fast-paced, tech-savvy world, third-party booking sites have become the norm. Consumers are driven by price point and ease, both of which are met through a wide variety of online service providers.
    
While this seems like a win-win situation, there is the obvious downside of enabling consumers to be disloyal. In the age of e-shots and social media, deals fall into consumers’ laps, and it’s only natural to take the better deal over brand loyalty.
    
Most garages don’t have the necessary skills to create such platforms, and thus create the resulting footfall. Fortunately for us, these online service providers have identified our repair sector as another service industry that could become part of the digital revolution.

Digitally minded
The digital world is here to stay and we have to accept that. It’s a good idea to take a step back and examine who our future customers will be in this world.
    
When I look at my children, 18, 21 and 23 years old, I see the next generation of customers, not the 45 to 55-plus who have been visiting our garages over the last couple of decades. My daughters purchase at least 90% of their clothes online, which is astonishing to me. We in the garage sector have to engage with these digitally-minded youngsters.
    
Like all other service businesses, there is the good, the bad and the ugly. I was extremely critical of these aggregators when they first appeared in our sector. To be honest, I still am. I don’t agree with many of the practices currently used by these sites. That being said, there are advantages to partnering up with one. The main one being access to new customers.
    
For a consumer, the first and most obvious advantage is price, and this is where a major problem exists for me. Prices found on third-party sites are often less expensive than the listed prices a garage may advertise. For those who have attended my courses, you would have heard me say on many occasions, these ‘come and get me’ prices do very little to aid our bottom line in an already highly competitive market. However, us garage owners aren’t always squeaky clean when it comes to pricing, are we?

Pricing
For example, I often see adverts for a ‘Service & MOT - £99.00’ or something very similar. How many of you have seen a MOT price go up? I certainly haven’t. Most prices advertised are anything from £19.99 to £24.99. This comes down to what we include within a service. If I asked 10 garages owners what they would include, they would give me at least five different versions. So, if we can’t decide what a service consists of, how do we expect the public to do so? Can we really blame online service providers for taking advantage of this inconsistency?
    
These websites are here to stay. Let’s stop criticising them all and try to work with the better ones to make them understand our businesses a little better. That way everyone can benefit.
    
If I were to open up a garage again, there would be a couple of areas which would have to be certainties in order for me to consider signing up to a third-party booking provider. Firstly, I would need control of the customer from start to finish. Secondly, I would have to be in control of the parts buying. As a compromise, I would accept a small fee to get access to a new customer.
    
At the end of the day, however, I would prefer to focus on the overall service levels provided at my garage, providing a customer experience that is unmatched in the local area. I would put more resource and energy into a social media presence and website offering, as this is an area that garages regularly struggle with. There are many decent, better qualified companies around that can provide specific digital services, so make use of them.

Direct route
It has become more important than ever that your website is responsive, has simple and intuitive navigation, and enables customers to book quickly and securely. A good website will increase enquires and bookings. It will direct users to the information they want to find and guide them through a simple conversion process. Social media should also be taken into consideration, as it is one of the easiest and most direct routes to engage with customers. You must ensure your brand is active within the channels your customers are using.
    
In the end, what I am trying to get across is that before we look to attack these online service providers, we need to realise that these platforms exist because we have not kept up with the digital revolution. These aggregators have simply taken advantage of our industry, and given that they are unlikely to be going anywhere, should we really shun them before truly understanding why they are here in the first place?


The good, the bad and the ugly: Third party work providers

Andy asks whether online aggregators are good news for garages, or whether they are storing up trouble
Published:  30 April, 2020

A hot topic within the industry, and one that I cover in my business courses, is online service providers;  third-party booking sites or aggregators – or whatever you happen to call them. Let’s recognise what they are, and examine why these aggregators exist in the first place.  
    
Think from a consumer’s perspective. Chances are that when you go on holiday, you reserve a hotel through a third-party booking site, for example, Expedia or Hotels.com. My guess is that this is exactly what you do because in today’s fast-paced, tech-savvy world, third-party booking sites have become the norm. Consumers are driven by price point and ease, both of which are met through a wide variety of online service providers.
    
While this seems like a win-win situation, there is the obvious downside of enabling consumers to be disloyal. In the age of e-shots and social media, deals fall into consumers’ laps, and it’s only natural to take the better deal over brand loyalty.
    
Most garages don’t have the necessary skills to create such platforms, and thus create the resulting footfall. Fortunately for us, these online service providers have identified our repair sector as another service industry that could become part of the digital revolution.

Digitally minded
The digital world is here to stay and we have to accept that. It’s a good idea to take a step back and examine who our future customers will be in this world.
    
When I look at my children, 18, 21 and 23 years old, I see the next generation of customers, not the 45 to 55-plus who have been visiting our garages over the last couple of decades. My daughters purchase at least 90% of their clothes online, which is astonishing to me. We in the garage sector have to engage with these digitally-minded youngsters.
    
Like all other service businesses, there is the good, the bad and the ugly. I was extremely critical of these aggregators when they first appeared in our sector. To be honest, I still am. I don’t agree with many of the practices currently used by these sites. That being said, there are advantages to partnering up with one. The main one being access to new customers.
    
For a consumer, the first and most obvious advantage is price, and this is where a major problem exists for me. Prices found on third-party sites are often less expensive than the listed prices a garage may advertise. For those who have attended my courses, you would have heard me say on many occasions, these ‘come and get me’ prices do very little to aid our bottom line in an already highly competitive market. However, us garage owners aren’t always squeaky clean when it comes to pricing, are we?

Pricing
For example, I often see adverts for a ‘Service & MOT - £99.00’ or something very similar. How many of you have seen a MOT price go up? I certainly haven’t. Most prices advertised are anything from £19.99 to £24.99. This comes down to what we include within a service. If I asked 10 garages owners what they would include, they would give me at least five different versions. So, if we can’t decide what a service consists of, how do we expect the public to do so? Can we really blame online service providers for taking advantage of this inconsistency?
    
These websites are here to stay. Let’s stop criticising them all and try to work with the better ones to make them understand our businesses a little better. That way everyone can benefit.
    
If I were to open up a garage again, there would be a couple of areas which would have to be certainties in order for me to consider signing up to a third-party booking provider. Firstly, I would need control of the customer from start to finish. Secondly, I would have to be in control of the parts buying. As a compromise, I would accept a small fee to get access to a new customer.
    
At the end of the day, however, I would prefer to focus on the overall service levels provided at my garage, providing a customer experience that is unmatched in the local area. I would put more resource and energy into a social media presence and website offering, as this is an area that garages regularly struggle with. There are many decent, better qualified companies around that can provide specific digital services, so make use of them.

Direct route
It has become more important than ever that your website is responsive, has simple and intuitive navigation, and enables customers to book quickly and securely. A good website will increase enquires and bookings. It will direct users to the information they want to find and guide them through a simple conversion process. Social media should also be taken into consideration, as it is one of the easiest and most direct routes to engage with customers. You must ensure your brand is active within the channels your customers are using.
    
In the end, what I am trying to get across is that before we look to attack these online service providers, we need to realise that these platforms exist because we have not kept up with the digital revolution. These aggregators have simply taken advantage of our industry, and given that they are unlikely to be going anywhere, should we really shun them before truly understanding why they are here in the first place?


Lockdown battery opportunity highlighted by HELLA

Published:  28 April, 2020

COVID-19 could be the ultimate cause of battery failure for thousands of vehicles currently sitting idle under lockdown, and HELLA is highlighting this as a likely opportunity for garages in the months ahead.


Mewa wipes contribute to Coronavirus employee safety

Published:  27 April, 2020

Workplace cleaning products are gaining new relevance in the wake of the COVID-19 epidemic, including wipes and rags for cleaning tools and machines. According to textile management company MEWA, demand is impacting on the availability of some types of cleaning wipes, but also how they are used in the workplace.


Coaching essentials

Andy is looking at the various techniques you can employ to support your team’s development
Published:  21 April, 2020


MOT Connectivity: Time for an equipment upgrade

Published:  31 March, 2020

The last 18 months have seen several changes to MOT rules come into force across the UK, affecting both brakes and emissions. There is more to come however, and guidance issued by the DVSA at the end of 2019 signalled the introduction of further changes affecting the use of connected equipment in 2020. 
 
The requirement to use connectable roller brake testers was introduced on 1 October 2019 and decelerometers followed suit on 1 February 2020. To comply with the new rules, garages and MOT centres making a new site application or replacing old equipment, are required to buy connected products capable of connecting to the MOT testing service. The DVSA has also announced its intention to add diesel smoke meters, exhaust gas analysers and headlamp beam aligners to the list later this year.
 
 Benefits
Connected equipment could bring a number of benefits for garages and MOT centres. Unlike the current manual input system, connected equipment allows results to be automatically transferred as the MOT test takes place, saving time, increasing data accuracy and helping to reduce the risk of fraud. Furthermore, the data collected will allow the DVSA to spot any trends and patterns, which may require further investigation.
 
It is expected that all MOT tools and equipment will become increasingly connected in the future. With this in mind, garages and MOT centres should purchase products that offer this capability, in order to future-proof their MOT bays. While purchasing new equipment will undoubtedly raise financial concerns for some operators, they should regard such equipment as a long-term investment which will improve efficiency and deliver returns over time. Buying low-value alternatives is a false economy and could result in downtime due to equipment failure. While high-quality equipment provided by market-leading brands typically comes with after-sales support, including upgrades and retrofitting options.
 
Factors
Before purchasing new equipment there are several factors to consider and connectivity is increasingly important. To assist them in making the right choice, garages and MOT centres should select a product given on the DVSA’s approved equipment list or one that can be upgraded as and when necessary. They should also consider that further rule changes to increase connectivity are likely to be introduced in the future. Choosing easily compatible products that can be linked through the same software and controlled from just one station will result in a far simpler solution and a reduced chance of installation issues. 
 
Where possible, garages should also look for equipment that can perform more than one function, for instance, MOT bays that also offer wheel alignment. Dual revenue options unlock a host of other business opportunities and ensure that equipment can be used its full potential, even in quieter times.
 
Ultimately, growing use of connected equipment is likely to become a differentiator for garages and MOT centres in the year ahead. Those that decide to embrace automation can expect to benefit from faster MOT test times, improved customer service and less downtime due to faults or errors.


The Financial Ombudsman Service wants YOU

Adam’s look at the FOS considers its decisions, how they are enforced, and why making a complaint can be really worthwhile
Published:  30 March, 2020

Part two


The Connected Car

The independent aftermarket risks being cut out of the loop by the connected car, but there could be ways for garages take back control...
Published:  25 March, 2020

When I was at school, no one liked the playground bully – you remember the kind of person who liked to push the other kids around, always wanted to take from you what you had and liked nothing better than ‘rubbing your face in the dirt’, just because they could.        
There is a modern equivalent in the automotive world – the ‘connected car’. To be fair it is not the car that is the problem, but the vehicle manufacturer that designed and built it. I would like to explain exactly what the problem is and how it will be the equivalent of the playground bully in relation to your business.
  
In simple terms, the way that communication to a vehicle and its data is being supported is changing. Today, the OBD connector still exists and provides direct, free of charge access to in-vehicle data when the vehicle is in the workshop when you connect your multi-brand diagnostic tool to start the repair process. There are even plug-in devices (often known as dongles) that are connected to the OBD port to allow data to be monitored when the vehicle is being driven, but mainly for fleet operators. Perhaps, so far, so good.
    
Now the change of paradigm. The design of the car today (well actually yesterday – its already happened) has changed. It is now designed to allow remote access via a telematics interface and with the in-vehicle computational resources to host and run on-board applications for vehicle related services.  This is the ‘connected car’.
    
Who can directly connect to this ‘connected car’ and access all the data, process it in the car and offer services to the driver? Only the vehicle manufacturer, and there lies the problem.

Evolution
This evolution in vehicle technology is driving (excuse the pun) a wholesale change in the way that the repair process will now be conducted. For the first time, the vehicle manufacturer is able to be in direct contact with the vehicle driver/owner and has consequently been able to enter the aftermarket. This is important, as this has been the most lucrative sector that the vehicle manufacturer has never previously been able to enter, or when they have tried to do so via its main dealer network, has resulted in only limited success.
    
Think about your business model for a moment. You have customers who call you, or visit your reception, to ask if you can help service or repair their vehicle. You ask a few questions to ascertain what the problem might be, or conduct a diagnostic check to see what faults may be present, and then provide the customer with a quotation to get their vehicle back on the road.
    
Now look at this from the vehicle manufacturer’s perspective. They can check the vehicle every time it is being driven and run monitoring, diagnostic or predictive checks to see what repair or maintenance is required. They already know the details of the vehicle and what service or repair methods are needed and the corresponding spare parts. When the time comes for work to be done, they can calculate what this would be in terms of time and parts and send a quotation to the vehicle owner using the in-vehicle display (HMI functions). Examples of this type of service offer already exist today and ask the driver what level of service they would like, when they would like it and where this work could be provided. This might be a main dealer close to their home or close to their work. A simple press of the on-screen icon, or even a voice command confirms their choice and the acceptance of the quotation. I bet that you would like to be in a position to be able to do the same, or even simply to offer your competing quotation. Well hard luck, you can’t.
    
The vehicle manufacturer blocks all direct access to the vehicle and the driver for independent service providers. Currently, the best offer from vehicle manufacturers is to use a ‘back-end’ interface from the vehicle manufacturer’s server where data (well actually information – there is a big difference) is made available at a price. You might simply get the vehicle mileage, or a DTC, or the next service date – happy days! However, the best bit, is that to get even this information, you have to register with the vehicle manufacturer, declare your service that you would like to provide to your specific customer, and then use the remote services contract that must first exist between your customer and the vehicle manufacturer to transfer the data/information via the VM server to you, before you can provide any form of service offer to your customer. Does not sound too appealing, does it?
    
So welcome to the world of the connected car - and the best bit is that you will not know the customers you have lost, as you will not know what service, maintenance or repair work they needed, because the vehicle manufacturer will have known what was needed even before the vehicle owner did and then proposed their service offer directly to them without you even knowing.

Streamline
Perhaps there is some good news on the horizon as vehicle ownership changes towards ‘mobility as a service’ and people do not buy cars, but simply buy transport. The vehicle owner becomes a corporation who runs a large fleet of vehicles and needs them serviced locally to where they are being used, but to ensure that they can offer competitive mobility services, they will need the lowest cost for labour and parts – and with their bargaining power for individual independent workshops, it could be a race to the bottom to offer the lowest price. The answer lies in working as part of a team with your suppliers (e.g. diagnostic tool or parts suppliers) who can negotiate better corporate deals and help streamline your business to meet these new challenges. The days of simply talking to your customer and giving them a price before telling them that their vehicle will be ready at five o’clock are rapidly disappearing, to be replaced by working in a wider eco-system of remote access to the customer and their vehicle and competing not with the workshop around the corner, but with corporations, both as partnership suppliers or as competitors.
    
Tomorrow’s business model will not be just more of the same as what you were able to do yesterday. Welcome to the world of the connected car and the new playground bully, where you will need to gang-up to defend yourself.

xenconsultancy.com


Dealing with customer complaints

How a business deals with customer complaints should positively reflect its overall attitude to customers, and leave them feeling valued
Published:  19 March, 2020

Running any business, and perhaps more so a service business like an independent garage, you have to learn to recognise there are different types of customers with different expectations.    
    
How we deal and adapt our services, the customer journey to meet and exceed these expectations are essential if we are going to succeed in having a healthy profitable business. This function must be adopted by everyone in your garage regardless of size.
    
Occasionally however, we are faced with challenging customers who complain, usually in a passive aggressive manner. These customers feel they have a reason to be upset. I always used to say to my team at Brunswick Garage, that there will always be a small percentage of customers that we will never be able to please, and importantly we must not let these handful of customers taint our view of all customers. When you find yourself having to deal with a disgruntled customer, remembering a few simple techniques can help to defuse the situation. Both parties being upset and defensive will not amount to anything positive.

Listen
In my experience running independent garages, I came to the realisation that in virtually every case of an unhappy customer, all that was needed to resolve the customer concern was to listen to the customer, or recognise actually they weren’t being listened to.
    
The customer isn’t always right, but it’s not always okay to tell them that, sometimes you have to act as if they are right. Active listening, eye contact, nodding your head in agreement, being on the same level with them, expressing empathy, and relating to how the customer is feeling can be incredibly helpful. Remember to place yourself in the customer’s position or frame of mind and never patronise a customer or look for excuses. We are working in an industry where many aspects of the customer journey have to come together from the initial phone call to returning the customers vehicle keys, so we have to accept that sometimes things go wrong however much we try to avoid mistakes.

Rapport
Once you have been able to establish some rapport, you may find a mutually agreeable resolution to the problem, and you must do whatever you can to achieve this outcome. Explain to the customer what you are going to do to help the situation. It could be engaging the customer in a test drive to better understand the complaint, admitting the garage made a mistake, or if possible, offering the customer a lift back home, work or a loan vehicle while you resolve their issue. You must assure at all times the customer feels that you are truly trying your best to resolve their concern and provide them with the least convenience as possible.
    
Research indicates that customers prefer the person they are speaking with to instantly solve their problem. However sometimes complaints have to be moved up the chain of command, but make sure they don’t add to the customer's frustration. So, wherever possible, resolve the issue yourself. This has the added advantage of demonstrating to those senior to you that you are willing to manage difficult situations yourself without resorting to escalation.
    
If you really can’t solve the customers concerns, take ownership of the issue and ensure that the complaint is effectively escalated and that you follow up to see what the outcome is.
    
It’s also worth mentioning that if you say you are going to do something, you should always do it. Don’t be tempted to tell customers that someone will get in touch with them in an hour when they might not get a call for a few hours. The customer won’t thank you for it in the long run. Always be sure you can meet the promise you make.

Perspective
Many of us have worked in the automotive sector for so long we forget what it is like to bring our vehicle for repair. Knowing what your competition is doing can also pay dividends in other ways too. It can help you set yourself apart by creating a business experience, an atmosphere that is different from any other garage locally and far beyond.
    
Keeping perspective when it comes to the customer experience will help you to create a positive customer experience and maintain a solid customer base. At Brunswick Garage we were of course never happy to receive complaints, however we used it as a prompt to better our service and if a customer made the effort to write or email us with a concern, we displayed their comments in reception with the thank you letters. We wanted to show our customers that we were not perfect, but also show them we took complaints very seriously and we always aimed at achieving a positive outcome. Learning to handle challenging customers will build respect for your business and ultimately result in higher customer retention and profits.

Positive/negative     
When we receive complaints, we often look upon them in a negative way. However, complaints can be really useful to any garage and although it doesn’t feel like it at the time, the complaint is extremely positive in that it helps highlight problems with our service and procedures.
    
The alternative to receiving customer complaints is not receiving them and carrying on just the way we are, oblivious the negative impact our actions are having on customers who perhaps won’t return or will be complaining to their friends rather than to us. This is extremely damaging as we never get the chance to put right the errors that we don’t hear about. It’s a bit of a cliché, but complaints really are a gift.
 








How to turn 60 minutes into £500k

This month John takes a look at a case study to show you how slowing down can remove your stress and earn you more
Published:  03 March, 2020

Something I find myself wanting to say all the time: “It’s easy to find technical information, easy to diagnose that car, easy to increase the profit within your garage.” I am wrong of course. I’ve been running automotive businesses for long enough to know it’s not easy, but what I do know is it’s not complex either. In fact, it’s often simpler than you think. I might even say, straightforward.
    
However, if that’s the case, why is it that many of the garage owners I speak to are frustrated (not unhappy just frustrated) with their businesses? It’s an important question, and when these frustrations are given some thought solutions often appear. Here’s the great thing. The solutions we discover are common to most garages, including yours. While it may not be easy, it is straightforward. “How do I find solutions to my frustrations,” I hear you ask? All you have to do is be like the Cadbury’s bunny.

Slow down and take it easy
“Slow down, I wish!” This one of the most common responses when I ask my clients take a little time for the important tasks in their day. Between answering the phone, running the workshop and dealing with everyone’s questions how are you meant to slow down?
    
If you are looking for a different outcome (less stress in your workshop and an increase in profit) then you’ll need to change your actions. Not dramatic changes, just small ones on a regular basis. It’s these small changes that when taken regularly have an unprecedented effect on your garage. Let’s take a look at how slowing down and taking 60 minutes helped one of our clients recently and how you could do the same.

Problems + no time + no clarity = frustration
Like most things in life, a solution to a frustration is simpler to come by once a system is devised to deal with it, and that’s the route we took with Emma (name changed). Emma owns a great garage with her husband. They’ve been in this industry for years, love what they do, have a big team and are good at it. That doesn’t mean there aren't frustrations though.
    
On a call Emma recently said: “John, I’ve got a problem and it’s driving me nuts. Why is it that my technicians can’t tell me that their parts are wrong for the vehicle? It’s affecting the time taken to complete the job and affecting when the car goes back to the customer. I love our techs but this just keeps on happening. How can we fix it?
    
I can almost see you nodding along while reading Emma’s words. It’s a common issue in many workshops and can often dictate whether you have a good or bad day at the office. The solution though is straight forward you just need a little maths.

Time + clarity + thought = solution
We took 60 minutes of critical thinking, dedicated to defining the problem and its solution. The interesting part is that we found solutions Emma wasn’t expecting. In fact, the technician was only a small part of the problem. To ensure success though, you have to get off on the right foot. I like to start the process by defining the desired outcome. So that’s what we did and started with the end in mind.
    
Emma initially voiced her frustration with the technician not informing her that the parts were wrong. When dissected however, the frustration was actually a desired outcome was not being achieved. The outcomes in this instance being the car ready on time and a happy customer, alongside the efficient use of resources and the profitability of the workshop.
    
With those defined, let's turn our attention to brainstorming possible causes and Emma’s options for the solution.

Cause and effect    
We now have our desired outcomes and a reason that they’re not happening defined as incorrect parts. Let’s take a look at all of the possible causes of the incorrect parts. It could be:


The Financial Ombudsman Service wants YOU

Part one
Published:  27 February, 2020

The FOS offers help to businesses who are having difficulties dealing with financial issues, and it is free to use. Read on to find out more


I, Rebate

Rebates on parts are an accepted part of life for every garage. What do businesses actually think of them though, and does a rebate influence where parts are being bought?
Published:  24 January, 2020

It's a typical scenario for a garage. You have been buying parts and consumables from your factor of choice through the weeks, months and years. In that time, as you spend you are also accruing points on their rebate scheme. Eventually you have enough to get something really handy for the business, or just some nice stuff for you and the team. This can be a nice bit of extra income that can be invested back in the garage, or it can be something to splurge-spend on spurious fripperies.

Have you ever asked yourself what you really think of this though? Is it something you get in other areas of your life, major supermarkets aside? Probably not. Is it influencing your buying habits or reinforcing existing loyalties? Would you just prefer lower prices from your favourite factor?

We thought we would ask a few garages around the country how they use rebates, and if they affect their attitudes to their suppliers. 


Powering up your future business

Understanding the impact of the shift towards EVs and hybrids on your business will help you make a success of the change
Published:  04 January, 2020

Life never stands still and this also applies to vehicle design and the subsequent diagnostic and repair requirements. Any workshop business that does not evolve will, sooner or later, fail. The pace of change in vehicle design has been exponential in the last 10 years, across vehicle systems such as the development of driver assist systems, but equally for powertrain designs.
    
Part of the powertrain development has been for engine management, such as direct injection for petrol engines, cylinder de-activation and Atkinson cycle technologies, but these have been developments of existing internal combustion designs. There have also been different fuels, such as hydrogen, but again, evolution, rather than revolution.
    
The real change has been the rapid increase in the number of electrically powered cars, partly due to the development of both battery technology and volumes, with the subsequent reduction in prices, making vehicles both more affordable and useable, but the most significant influence has come from the political environment to move away from the reliance on fossil fuels.

Viable
Although electric vehicles are far from a new idea – the first (small scale) electric vehicles were developed in the 1830s, with viable vehicles being manufactured from the very early 1900s, including the first hybrid vehicles. Although the concept is not new and workshops have dealt with low voltage ‘electrics’ in the form of starting, ignition and lighting (SIL) batteries for over a hundred years, today’s electric powertrains pose significantly different challenges.
    
These challenges fall into several distinct categories, some of which you can directly do something about, while others which are outside of your direct control.
    
Firstly, doing nothing to develop your business is not the answer – the expansion of electrically powered vehicles is here to stay and the key is to understand what you need to do and when you need to do it. For the workshop, from the technical perspective, it is principally a competency issue that involves having the right equipment and the skills of the technician. Both of these will depend on how deeply you feel is necessary to be able to handle the level of work on the electrification of the vehicle’s powertrain and to some extent, this will be dictated by the demographics of your location, and your customer base.
    
There are several new vehicles which are now entering the market that use 48-volt systems, so these are not so challenging, but the existing and bulk of the future electrically powered vehicles will have much higher voltage systems and this is a key tipping point. To work on these systems imposes a duty of care on the business to ensure that technicians are not asked to work on potentially lethal systems without the appropriate equipment, protection and skill levels. For the workshop, this imposes a compliance for both the Electricity at Work Regulation (EWR) 1989 and the Safety at Work Act 1979.

Investment
However, the level of involvement in these higher voltage systems will also dictate the level of investment. This is illustrated by one vehicle manufacturer’s policy of implementing three levels in their main dealer networks for their hybrid or fully electric vehicles – level one is purely vehicle maintenance, level two is repair and replacement of components and level three is working on live systems.    
    
In both Canada and Germany, compulsory training and accreditation of all vehicle repair technicians is mandatory.
    
For independent workshops in the UK, this three step approach would also allow the workshop to adopt an ‘evolutionary’ approach to investment, starting with some basic equipment and then building on this with the more specialist tools and equipment as the business develops, but I would strongly suggest that the technical training should be at a higher level from the outset to ensure that the technician fully understands the wider design and functionality of electrically powered vehicle systems to know the boundaries of where the work on a vehicle changes across the three levels – a good case of avoiding that ‘you don’t know what you don’t know’. Once your business has the competencies, then it is about promoting this to existing customers who at some stage will be hybrid or electric vehicle owners, or to those who already are, but don’t know that you can handle their vehicles – so if you make the investment, shout about it.

Opportunity
On another positive point, the European Commission have confirmed that electric vehicles still need to support access to their in-vehicle systems for repair and maintenance – clarifying the mis-held belief that if there were no emissions, then no OBD connector needed to be fitted.
    
These are the things that you may be able to control about electrically powered vehicles, but there are other aspects that are outside of your control which will impact your business. The most obvious is the extended service intervals and the reduced level of work which electrically powered vehicles need. Fairly obviously, this directly relates to no engine components on fully electrically powered vehicles, but even if tyre wear may increase due to their increased weight, their brakes last longer due to the capturing of energy when slowing down to re-charge the battery.
     
Electric vehicles will require new skillsets for their repair, away from mechanical repairs into more electrical and electronic orientated repairs. This will change the profile of the technician that is needed and also create an increased dependency on downloading software updates. However, these may be increasingly over-the-air updates from the vehicle manufacturer, without the need for a vehicle to come into a workshop. Just think about what TESLA are already doing. The way that the vehicles are purchased is also changing – especially for electric vehicles – as there is a separation of the cost of the vehicle and the renting of the battery to avoid the twin problems of the higher price of new electric vehicles and the concerns around the cost of replacing a battery as the vehicle ages.
    
Additionally, there will be changes in the ownership of the vehicle as ‘mobility as a service’ develops, but this may be an opportunity for independent workshops to provide competitive local repair and maintenance services to these new mobility operators, but only if the workshop is competent to do so – and so there is both a threat and an opportunity presented by electrically powered vehicles.



xenconsultancy.com


Understanding customer relationship management (CRM)

Do you want to get a better understanding of your customers, and how you could treat them better? Then look into the factors making up CRM
Published:  04 December, 2019

Have you ever sat back and thought about the basis of our relationship with the vehicle owner? Do you truly understand the real nature of what the customer is actively seeking to purchase and what he or she wants out of this dynamic and sometimes complicated relationship?    
    
Understanding customer relationship management (CRM) is a combination of people, processes and of course technology. The purpose is to seek to understand the dynamic and sometimes complicated relationship between, in our case, a garage business and its customers. You need to have an integrated approach to managing relationships by focusing on customer retention and relationship development. CRM has evolved from advances in information technology and organisational changes in customer‐centric processes. Garage businesses that successfully implement CRM will reap the rewards in customer loyalty and long-term profitability.
    
However, successful implementation seems to be very rare to many in the automotive repair sector. I suspect this is because most do not understand that CRM requires company‐wide, cross‐functional, customer‐focused business process. Yes, that old chestnut. Seriously though, before you can implement it, you must understand what it really means, and where to put your attention for the best outcome.
    
So, what should we focus on in order to at try and achieve a successful CRM implementation in our automotive repair sector? Here are just a few areas that I believe need to be observed.

Premises
We cannot do the work unless we have some place to do it. Because of this, premises now play an increasingly important part in everything we do. The facility has to meet or exceed customer expectations. In today’s competitive automotive repair industry, you need to provide a clean and uncluttered environment. This means offering up an inviting, efficient professional-looking garage is of paramount importance. Nothing less will do, as the bar for the quality of service delivery is being raised throughout our sector. Customers may not give us a first chance, let alone a second, because of the way our garage may look. This is especially true if the workshop leaves a poor impression, and implies that the business is unprofessional, disorganised and chaotic.   

Competence
How does competence affect service? We would all like to think that everyone on our profession is competent, but are they? We all know the answer to that question is sadly no. Despite this unfortunate fact, consumers still have faith in us. When he or she comes in, the customer will still believe that the person or garage is competent, or that they will supply competent technicians to work on their vehicle. This faith exists regardless of whom they have chosen for the service or repair of their vehicle.
    
This is very fortunate for us. Despite the bad press our sector receives on a regular basis thanks to a few bad eggs at the fringes, customers generally assume those working in our industry are competent, until it is proven otherwise. The customer does not go out of his or her way to find a competent provider because they believe that they are entitled to find this – it’s a given; a natural assumption apparently.

Skill
Skill is almost always taken for granted in our industry as well, which is odd because it’s so rare. More to the point, how the skill is acquired and where the training or development occurred is really of no importance to most vehicle owners. It is however, critically important to you and me-or at least it should be. Our success or failure is the direct result of our skill and ability of our technicians and reception advisors. Yet we seem unable or unwilling as an industry to charge more for a technician who is schooled and certified in the necessary disciplines. How or why should our customers value that skill is we do not?

Ethics and honesty
These two are givens as well. Every motorist has made a leap of faith that assumes the person to whom he or she has brought their vehicle for repair is ethical and honest, despite the fact that they think the rest of us may be crooks, thieves and idiots! Ask yourself this question: Would any reasonable, rational adult take their vehicle to a someone they know to be a thief? The answer is of course not! What is it worth to the customer to know they are in the hands of an honest and ethical professional when they are buying a service about which they have very little knowledge to judge the full value-especially when media is full of stories about automotive rip-offs?

Understanding the customer
Understanding the customer is all about empathy, your ability to both know and understand the customer’s situation, feelings and motives. It’s all about recognising the customer’s wants, needs and expectations, whether obvious or hidden, as well or better than they do. Once recognised, it’s all about addressing those wants, needs and expectations by satisfying them – or at least making the effort
to try.








Chipping away in Chippenham

Declan McCormack Vehicle Repairs was one of the winners of Top Garage 2019. Aftermarket stopped by to see how the business came out on top
Published:  28 November, 2019

Three years after he moved into his current garage on an industrial estate on the edge of Chippenham, Declan McCormack is still unpacking: "I have all the tooling and equipment, I am busy all the time, and I have a pair of two-posters ramps, but I've still not had chance to get organised."  

The evidence says otherwise. In 2018, Declan McCormack Vehicle Repairs was one of the finalists in the initial run of Top Garage. In 2019, his garage was named as the best business in the new 1-5 staff members category. Not only that, we were here last year, and we didn't think he was disorganised then either.

For those of you who don't have a complete set of Aftermarket back-issues to hand at all times, Declan briefly reiterated his story: "I started in 2004 in a van, and I did three years of that. From there I went into a little workshop with a huge yard. Then we moved into a site in the town centre, and finally here. I wanted this unit 12 years ago and I missed it by about a day."
Declan's is a one-man operation, although his wife Jan does pop in to help with the books, and to remind him to come home occasionally.

Communication
"About 80% of the customers I have now I have had since I first started out,” said Declan, “Not necessarily from the van, but certainly from the first garage."

He puts the loyalty down to communication: "Being transparent is very important, showing them what's wrong and taking the time to actually explain it to them. I think that makes all the difference. I would say that I convert 90% of my quotes into work along the way."

Declan contrasted this with the approach he’s heard about from other garages: "There are some guys who have no interest at all. They just want to get the work in the door and get it out, they are not interested in the customer. I think that’s what really makes a difference, especially the older people – they like to know what's going on."

He doesn't just talk though: "Every now and then I have a customer that is away. If it's a big job I will do a video for them. I do them on my mobile phone. All I do is go to the front of the car, show the registration, and then take them round the car and then send it to the customer."

Aftermarket can take some credit for showing Declan the power of video: "I won a competition in Aftermarket about six or seven years ago. the prize was the system. They came down and set me up a Samsung tablet and all the various bits and pieces."
After a while, Declan found he could do it just as well his own way: "Rather than paying a subscription to somebody, you just need to show your customer. It is just as easy with your mobile phone.”

This is just the kind of tip we want to give our readers. You have a mobile phone?  You have email? Then you can do videos.
"It is a simple as that," reiterated Declan. “Usually people have their mobile in their pocket, making it much easier than if you have to go and get a tablet, and then you have to power it up. Using the mobile just works for me. The last one I sent was with a Kia I had here. I went around the car, showed it to the customer, and then we had a joke about it as it was a bit long-winded. There were so many things I had picked up on. When he came in he said 'I know nothing about cars - I am a video editor. For me the video you did was brilliant'. Then he said 'go ahead'. It works, but I don't do it for every car."

Methodical
Of course, for this to work, it helps if you are observant and methodical: "If I have a car, I will inspect it front to back. I'll check all the ball joints, all the steering, I won't go to the extent of checking levels and that side of things, but I look at all the tyres, I look for wheels out of shape, I look for noises. Once you have the car on the ramp it takes seconds.
"I do it in a tongue-in-cheek way. A lot of garages pick up on things and then start pushing it. Then people don't want to do it because they think you are just upselling. I put it on the invoice and then I just explain to the customer 'look, while i was under there, I found this. You are going to need to do that first, that is going to want doing in the next month or you need that maybe before the next MOT'.

"By not pushing it, most people come back to you. I did one on Saturday, with a car that came in for an oil leak. New customer. I put it on the ramp and had a quick check round. It needed an inner track rod end, it had a few other things. When he came in I left the car on the ramp until he came in and then I showed him. He is coming in next week for a full service and to do the work that I showed him. It does work, but there is a fine line to not be pushy. You have got to show them, and when they can see it they will start to trust you."
    
Declan won his section of Top Garage, competing against businesses that were 400% bigger than his one-man operation. With this in mind, we wondered how he operates so efficiently. He laughed: "I have no idea! Along the way you see what needs doing, you do it, and then you have a plan. I probably work better under stress than I do if I have not got anything in the workshop. If I have one job and it takes five minutes I will do it five minutes before 5pm. However, once I am under stress I am fine."
Declan explained it is about compartmentalisation: "If I know I have something coming in that is a bit bigger or will be more involved, like some of the electronic stuff, then I will leave it until an evening. Then I will shut the door, switch off the phone, and just get my head into it."

One of the reasons Declan was a winner, was because the judges were particularly impressed with Declan's clarity of vision. However, Declan said this was an inevitable by-product of working on his own: "Because I am a one-man band, everything comes through me. If you are a garage with employees, you have got your front-of-house people, others to the side, cleaners, mechanics. I think half the stuff gets lost in translation along the way. With me, when something goes wrong, It’s only me that could have made it go wrong, and then I have got to work five hours extra to sort it.

“Also, because you know your customers, you know if a car will be ok until tomorrow, while that other car will be wanted back. If you know your customers you can jiggle things about. It is just the whole package. If you are a bigger business, there are so many people involved. Also if you have employees, most of the time in the garage trade, when 5pm comes employees switch off and are out the door. I can't, or won't do that."

Top Garage
Will Declan McCormack Vehicle Repairs be defending its title in 2020?
Declan thinks so: “Top Garage is the only way I can benchmark myself. I don't think I can measure myself against garages here.
"With customers, they’ll usually let you know if you have done something wrong. If you do things right though, you are never going to know about it. You only know because they are coming back. The problem is you can get into doing something and unless somebody tells you it is wrong, you will just carry on doing it. That's why it is quite nice to go to Top Garage."

Looking ahead
Declan likes a challenge, and his next one is to work out where to take the business next: "One of my long-term goals is to take on a second unit next door dedicated to electric cars. The problem is the market is so up and down. I am Level 3 qualified, I want to do Level 4. If I go that way I will need to take on staff, as I would need someone to run this side while I run the other. I would want charging points as well.

"In this trade, you can't stand still. If you do you will be left behind, and then if you do want to catch up you'll never be able to manage it. If you stand still, give it five years and you are out of it. You either look ahead and move with it, or you do some discs and pads and then go and push some trolleys at Lidl. I don't want that to be me. I like what I do, I've always wanted to do this and now I am doing it I want to keep doing it."



ADAS – Opportunity or threat?

Neil Pattemore considers the potential effect ADAS might have on businesses in the aftermarket
Published:  23 October, 2019

Last month I wrote about the way that the electronic connections between equipment or via the internet can impact your workshop activities and how the control and function of these communications may now impact the OBD connector, ‘He who controls the connection, controls the function and ultimately the business’.
    
However, it is not just the connection to the vehicle that is under threat, but what you are able to connect to and ultimately, diagnose, repair and re-configure so that it functions correctly via a connection to the vehicle. As vehicles move towards being autonomous, the key stepping stones are the advanced driver assistance systems or ADAS as they are more commonly known.

Key issue
These systems are becoming increasingly important to the way that vehicles are controlled and this opens a variety of new challenges to the independent repair sector in their ability to work on them. In theory, they are no different to other in-vehicle electronically controlled systems in that they use sensors, control functions and actuators to ensure that the in-vehicle system works correctly, but it is the outcome of these combined aspects which is creating the key issue for independent workshops of whether you be allowed to work on them.
    
ADAS systems are designed to ‘assist’ the driver, but increasingly, have direct control over the way that a vehicle reacts to situations and steers or brakes accordingly. The European Commission recently announced that more ADAS functions will become mandatory from 2022 for all new type approved vehicles.
    
These will include: Advanced emergency braking (cars); Alcohol interlock installation facilitation (cars, vans, trucks, buses); Drowsiness and attention detection (cars, vans, trucks, buses); Distraction recognition/prevention (cars, vans, trucks, buses); Event (accident) data recorder (cars and vans); Emergency stop signal (cars, vans, trucks, buses); Full-width frontal occupant protection crash test – improved seatbelts (cars and vans); Head impact zone enlargement for pedestrians and cyclists – safety glass in case of crash (cars and vans); Itelligent speed assistance (cars, vans, trucks, buses); Lane keeping assist (cars, vans); Pole side impact occupant protection (cars, vans); Reversing camera or detection system (cars, vans, trucks, buses); Tyre pressure monitoring system (vans, trucks, buses); Vulnerable road user detection and warning on front and side of vehicle (trucks and buses); Vulnerable road user improved direct vision from driver’s position (trucks and buses).
    
As you can see, quite an impressive list, but equally, quite a threat if you could not repair or re-calibrate this plethora of new systems.

Direct product liability
The vehicle manufacturers are claiming that as they have a direct product liability throughout the life of the vehicle and that these systems have a direct impact on vehicle control and safety, that only their authorised repairers (i.e. main dealers) should be allowed to work on these systems to ensure that they are repaired correctly and that the vehicle manufacturer knows who did the work, should there ever be a malfunction, so a whole new business model for independent workshop is under threat.
    
Furthermore, the vehicle manufacturers are also claiming that only their original parts can be used, so they are now starting to require a code for these the parts to be ‘activated’ and configured into the corresponding ADAS system. This code is only being made available to their main dealers. Some vehicle manufacturers have gone a stage further and re-classified these replacement ADAS components as ‘security’ items which further restricts access for independent operators.
    
In another twist to this ‘security’ classification, the current discussions at the UNECE in Geneva (to which the UK is a signatory), the vehicle type approval group may bring these replacement parts under the vehicle manufacturer’s ‘cybersecurity management system’ which will allow vehicle manufacturers to implement their own cybersecurity classification and access conditions with a wide range of requirements that may include these ‘security’ related replacement parts. They could claim that this is not a problem, as there would be no discrimination with what is fitted by their authorised repairers, so they would conform with European repair and maintenance legislation for the ‘non-discrimination’ requirement. However, this trend is likely to develop further as autonomous vehicle systems increase to, ultimately the fully autonomous vehicle.
    
Although the ‘security’ classification is directly a threat, there could also be a requirement that non-OEM (i.e. aftermarket) replacement parts may need to be type approved, which would not be such a problem if there were test methods for the type approval process, but in most cases, there aren’t, so testing becomes very difficult and expensive – again restricting the choice of parts which may be available in the future.

Competence and traceability
What can be done then? Actually, quite a lot, but it won’t happen unless someone actually does something to challenge these restrictions. That’s the role of the various aftermarket associations, both here in the UK and for their European partner associations.
    
Fundamentally it is likely to become an issue of legislative compliance and a combination of demonstrating both competence and traceability for independent workshops. This could work in a framework where workshops are verified and registered via a ‘conformity assessment body’ who then provides a certificate and pin for use when accessing the relevant parts or re-configuration codes via a vehicle manufacturer’s website or a neutral trust centre, or using these ‘credentials’ when re-calibrating an ADAS camera. The workshop would only be verified if the relevant competency could be demonstrated and the certificate system provides traceability in the event of a subsequent system malfunction.
    
Additionally, the vehicle manufacturer could conduct an ‘over the air’ verification of the vehicle’s ADAS status to check that it is repaired or re-calibrated correctly.
    
Ultimately, this may become a form of ‘workshop licensing’, but not only would this allow workshops to have the ability to develop new business models for the diagnosis, repair and re-calibration of these ADAS systems, but it would also provide a welcome assurance to their customers that the work has been done correctly and avoid the vehicle manufacturers having a monopolistic control of the work on these systems and ultimately, the future business of the independent sector.
    
So now, more than ever, is the time to join forces via the aftermarket associations and support their fight for your future.

xenconsultancy.com


Don’t let me be misunderstood: The importance of marketing

Many businesses don’t understand marketing, but they should as it is absolutely central to their potential for succcess
Published:  14 October, 2019

Marketing is one of the most misunderstood functions found in business. This may have to do with the flashy image that is often associated with the marketing profession. Perhaps it is also seen as something that is only done by marketing people and does not concern the rest of the business.    
    
Whatever the reasons for any negative image that marketing may have, it is essential to realise that marketing is vital to ensure the survival and growth of any business.  It does not matter whether the business is large or small or what products or services the business supplies, the truth is that marketing cannot be ignored and needs to be a part of the culture of any successful organisation.
    
Marketing should concern everybody in a business as it sets the context in which sales can take place. Whatever your role, you play a part in setting that context. It’s no different in our automotive repair sector.

Difference
While studying for my degree at Loughborough University only a few years ago, I came across a couple of quotes. The first was from Theodore Levitt, a well know professor of business management and a former editor of the Harvard Business Review. He said: “The difference between marketing and sales is pretty simple – sales is a process of getting rid of stuff you don’t want, while marketing is the process of letting people know you have the stuff they both want and need.”
    
The second was from a Proctor & Gamble executive who said: “The purpose of marketing is to provide services and products that solve people’s problems at a profit.”
    
This stayed with me. When I thought about it carefully and constantly, I came to the conclusion that both concepts are common. They involve someone other than yourself the customer who responds to your innovative products and services, buys them, thereby making your business life possible.
    
I believed for years that customers have been taken for granted, ignored, or considered part of the territory in our industry. They were after all, curious, demanding and sometimes annoying. They called incessantly, came by unexpectedly, and questioned us endlessly. In general, they were considered a pain - a cost of doing business. Of course, that was until they started making other choices, taking their business elsewhere to individuals or businesses more responsive to their wishes, needs, wants and expectations.

Philosophy
If you want to survive in this ever-changing business world you have to embrace a new business philosophy, making a move away from mass marketing or transactional marketing to one to one marketing or relationship marketing.
    
Transactional marketing is all about numbers – nothing else matters.  We’ve all seen the larger corporates like Sky TV, Vodaphone, and utility companies to name a few, offering far better terms for new customers than any existing customer can get. Lack of thought is given to how an existing customer may feel if he or she saw an offer that was never been offered to them who’ve been loyal customers over a number of years –it’s a real kick in the teeth. It’s all about pushing product or service these are not relationships at all. In a transactional business environment, making the sale is the only objective. Relationship marketing is the polar opposite. It’s about as far away as you can get from transactional marketing.
    
One of the biggest mistakes I see regularly within the garage repair sector is the constant advertising specifically in local press with ‘come and get me’ offers in order to attract new business. Most of these already established business whether large or small will rarely measure the effectiveness of such campaigns or analyse the type of customers they are attracting and indeed very few of these businesses actually understand the ‘diamonds’ that already exist within their database, a concept we looked into at length in the June issue of Aftermarket.
    
There is no point trying to attract vast numbers of new customers and provide them with a sub-standard service based on a cheap price which can cause severe damage to the reputation of the business. Another factor is that established customers tend to buy more and are less price sensitive and may be less likely to defect due to price alone.
    
Simply by reminding customers of their vehicles next MOT due date, or service for that matter is the minimum that any garage should be undertaking. Reminding them of specific campaigns such as winter checks or health checks if they are planning long journeys will reinforce that you care about them and keep them safe.
    
You can expand this two-way communication with news of any success stories within the business. Examples might include charitable fundraising by the business or any employee, training and development that’s undertaken or new services and products being introduced. This will reinforce to your customers that you want to build long term relationships with them.

Profitable
The customer’s wants, needs and expectations, as well as your need a for a long and profitable relationship with that customer should be at the core of every action and decision. Everything else comes second. Marketing affects everyone; we are all consumers. Most businesses depend on marketing to provide an understanding of the marketplace, to ensure their products and services satisfy the needs of customers and that they are competing effectively.
    
The basic rationale of marketing is that to succeed, a business requires satisfied and happy customers who return to the business to provide additional custom, in exchange for something of value, typically payment. The customers receive a product or service that satisfies their needs.
    
Such a service or product has an acceptable level of quality, reliability, customer service and support, is available at places convenient for the customer at the ‘right’ price and is promoted effectively by means of a clear message that is readily comprehended by the customers in question.
    
Great businesses must constantly assess their customers’ requirements and be prepared to modify their marketing activity accordingly. An assessment of marketing opportunities is an ever-evolving process requiring regular revision and updating.  







Star of the hour – Robertson Gemini

Aftermarket makes a return visit to Robertson Gemini, following Neil Currie's victory in Top Technician 2019
Published:  30 September, 2019

What a difference a year makes. When Aftermarket visited Dumfries and Galloway-based independent garage Robertson Gemini in late 2018, we were doing so because its staff member Neil Currie had become a regular in Top Technician's semi finals and finals.  
We were keen to see from whence he sprang. 10 months later, and he's only gone and won it. With this in mind, we wanted to revisit to see how Neil has been shaped by his time at the business, and how he is helping to shape it in return.

To remind those readers who may have forgotten, Robertson Gemini is a family-owned independent based in the small town of Castle Douglas. Now in its 98th year of operation, owned and run by the Robertson family, the garage fields six ramps and a MOT bay. While it is equipped to cover most makes, the business is something of a Land Rover specialist, due to the rural surroundings.

Don't be fooled by the description though. There is also a thriving second-hand car sales strand to the business, and investment is ongoing as the business keeps up with technology, training and tooling, as Neil explained: "They are benefitting me by giving me the latest tools to use, so that is improving my skills, and they are sending me on training.  Working with those, and the level of car we are getting, such as some of the latest Land Rovers, is helping to keep my skills fresh and up to date with what is going on.
"It definitely makes a difference with Top Technician, as you are getting all these weird and wonderful faults. Either you have seen it in the workshop, or you have done it on a training course, or you have read about it in the literature. It definitely helps keep you at the sharp end.

"I've been here four years now. A couple of the guys have left, I am now the second longest serving. I think that it helps you if you are working somewhere where you are getting training, and you are working on the right kind of cars, and you are using the right equipment, that all helps as well. They are all pieces of the puzzle. You are more settled and you come in every day and you know your job and you don't have to think about anything. It just becomes the norm."

Experience
Neil's time with the company, and his experience has made him de facto head technician. He explained a typical day to us: "My day generally consists of most if not all of the diagnostic and electrical work. That said, I also do pretty much everything from a puncture to welding to the MOT. It depends how the day goes. If there is no diagnostics, I will do a timing belt or a clutch or something else. Then some days I will just be doing MOTs all day. We tend to anything and everything so it every day is varied, which keeps things interesting, and exciting. You are not constantly doing the same thing, getting bored. "

Neil said that this variety of work on a day-in-day-out basis is important for broadening his knowledge and keeping it fresh: "You could be getting an air conditioning fault, an alignment fault, diagnostics – it is not just purely diagnostic and electrical. Having that rounded environment helps, particularly with Top Technician. In the final this year there was only one, possibly two things that could be seen as diagnostic challenges. The rest were mechanical, measuring and alignment. My knowledge from that in the workshop environment, and exposure to all the work here definitely helped me to win it this year.  Without that I don't think I would have won it."

Toolbox Sessions
When we were last up at Robertson Gemini, we were told about their 'Toolbox Sessions'. Neil told us more about what he gets from this informal knowledge sharing: "We take some time out of the diary at the end of a certain day and then we will all gather round and we will talk about a certain subject. I just did a session on basic electrics, just going through what you would need to understand and what you would need to do. We also just did one on alignment. One of the lads went and did a wheel alignment course. He came back and went through what he had learned on the course."

This all helps with keeping yourself on track said Neil: "We all pick up niggly little bad habits along the way, so it is good to remind you how you are taught to do it on the training courses. It's not just for that though. If one person goes off on a course, then we have a gathering of everybody, and try to pass the knowledge on and a few tips and tricks. It helps to improve everybody's skillset. It also means it is not just one person doing everything.”

The discipline of taking training you have had and needing to present it to someone else also helped with Top Technician: "It always reaffirms it in your own head if you have got to show it to somebody else," observed Neil, “because you have got to tell them the correct thing and you are able to recall and are able to show them the practical things as well. It definitely helps. If anything, it plants the seed further in your brain so you know exactly what you are talking about.

"Mostly, that's what training courses are about. You learn bits and pieces over a few days, but then you have got to come home and put in some hard work to really nail it, so you can remember it so you don't have to refer to a book all the time. That is where that side of things helps."

Asset
On the success of their staff member in the competition, we asked David Butler, who is Director at Robertson Gemini, how proud and delighted they are that Neil has won and is the best in the UK?

 "All of that – all of that," replied David, with a smile. "He is a great asset to the company, he really is. One thing I would say about Neil – first he is a first-class worker, he just gets on, there is no messing around with Neil. He is very competent, and he has a brilliant approach to learning. He always wants to learn new stuff, not just here at the garage, but at home as well. He spends a lot of time researching and developing, which is fantastic. He is certainly a great asset to us. What I particularly like is that he shares his knowledge with others and tries to bring them on. We have a young apprentice here at the moment, Neil spends time helping him along, which is tremendous. It's all good."

The company is certainly not passing up on a brilliant marketing opportunity either: "He is all over our Facebook as the winner of Top Technician. We are very proud of what we have got here. We have helped Neil along ourselves. Over the last few years we have put him onto various courses and things and is always eager to learn and progress which is very important. We have supported him in that. We do that with all the staff here as well. We have that philosophy; 'let's be the best there is' and we are all striving to achieve that. Not just in the workshop – generally. We are going great guns here at the moment, and Neil's achievement is fantastic."
As we said, investment is planned and ongoing: "Among our recent investments in the workshop. is the latest Ford interface, which allows us to deal with all the latest cars. The old computers did not read the brand new cars, so we have now got that. On Friday both Neil and Jamie are going for their Class 5 MOT. We are licensed for 4,5 and 7 anyway, but on Friday those two are getting their certificates. Our fleet of Peugeot 2008 courtesy cars is one of the most fantastic investments we ever made. That has been a huge success for us. We are delighted we did that. On the sales side, we are getting up to 20 cars on the forecourt which is a lot for a small garage like us. The quality is also improving as well. "

David added: "We are really pleased with where we are at the moment. It is great stuff. "

Moving forward
In that he is the star of the hour and the reason we came back to Robertson Gemini twice in a year, we thought we would give Neil the last word. We asked him what he will be doing in the weeks and months ahead at Robertson Gemini. Neil replied: "I will continue to improve to become the best  mechanic I can be. Overall just want to keep moving forward. The motor trade is evolving at a rapid pace, so there should be plenty to keep me busy and to try and keep up with."



Loud and clear

Autoglass used the recent Autoglass Live event launch its ADAS Total Calibration Solution, and Aftermarket was there to learn more
Published:  23 September, 2019

Bright sunshine, blue skies, and 25°C. You could not have picked a better day for a live automotive event, featuring outdoor demonstrations of equipment, and more pertinently for readers of Aftermarket, the launch of a new ADAS solution. That is what Autoglass had on offer, when it launched its ADAS Total Calibration solution featuring what it describes as 'over the air' support at its Autoglass Live event in July.   

You couldn't pick a better setting either. Parent company Belron International's Milton Park HQ, just off the M25 near Egham is an impressive modern venue. Something had to give though: "In preparation for this event," said Autoglass  Sales and Marketing Director Neil Atherton, "we made a request to our head office colleagues that they work from home today. So a big apology to them, as I think Thursday is Yoga and Pilates day." You can't have everything then.

200 decision makers from across the insurance, fleet and automotive industries were there instead, on hand to see a number of presentations from the glass provider. These four sessions divided into zones looked at the customer journey, the aforementioned Total Calibration Solution that we will go into in more depth later, operational excellence, and minimising risk. It was here, in zone 4, that Aftermarket started the day.


Minimising risk
For us, the most interesting element was the ADAS side. The purpose of this session was to look at the trends impacting on vehicle glass, no pun intended. It also looked at the risks around quality and safety. This included the effect of increasing glass complexity, and of course the ADAS factor. "Windscreen repair is more important now than it has been in the past," observed Eddie Irvine,  Operations Director, Franchise Markets, at the start of the session.

Autonomous driving will also have an effect. "On the 1-5 scale of autonomous driving," said Ernst Bakker, Sales Development Manager, "we are around level 2. Here we have cruise control, emergency braking etc, all the systems that help the driver. At level 5 you no longer have a driver, you have passengers."

Eddie observed: "This is being driven by the need for safer cars, which is why we are seeing more and more ADAS penetration. To get a EuroNCAP 5 star rating, a vehicle has to have a minimum of one ADAS system.

"The ADAS market in Europe is expected to double by 2025. This causes the automotive industry some real challenges to move towards safer cars. About 9% of the current UK car parc is fitted with a forward-looking camera. SBD predict that by 2024 it will be 29%. That's massive growth, and will be linked to windscreen replacement."

Glass thickness decreased greatly over the last 15 years, while the size of windscreens has increased. With ADAS sensors being placed in windscreens, there is more strain on a larger, thinner component that is being asked to do  more than ever before. This makes proper bonding of replacement windscreens vital for safety on a number of levels, as well as the right glass. This session included a demonstration of how windscreens can be scanned to check it is correct.

This all helped to build a picture of how central ADAS is becoming to any number of sub-sections within the broader aftermarket.
On our way to finding out about the new offering, The next session provided a picture of the customer journey in a form of live performance, wryly described as a "scripted reality extravaganza". In it, four 'typical' customers and their windscreen replacement experiences were performed. From here the next stop was a presentation from IMI CEO Steve Nash.

Gary Lubner, CEO of Belron International received a certificate that shows that Belron is now an Accredited IMI International Centre. "The fact that we are now accredited for ADAS jobs as well is a big thing" said Gary. "So much ADAS is going on, I am sure for some of you this has come as a huge shock.

"We recognised this trend back in 2014. In 2015, worldwide we did 5,000 ADAS recalibrations. This year, we will do close to 800,000 ADAS calibrations worldwide.100,000 of those will be done here in the UK. Next year I think we could be doing double that again. I can assure there is no other organisation in the world doing that much calibration. No one is even close. What does that mean? If we are doing that many calibrations, we have to make sure we are using the right technology. Now, with the 'over the air calibration' service, we can service 98% of vehicles that are able to be calibrated. It also means we have to put enormous effort into training our technicians." He added: "ADAS is here to stay, and it is a fact that we have to deal with."


Total Calibration
Moving onto what was for us the main event, Neil Atherton introduced the Total Calibration solution.

First, he provided some context: "We have 560 trained ADAS technicians, of whom about 170 have been through the IMI accreditation process. The others will follow as we continue to roll out this training. I envision all of our technicians being ADAS-skilled in due course. We work with three partners, Hella Gutmann Solutions (HGS), Bosch and TEXA. In the UK it is primarily HGS. These tools allow us to calibrate, cameras, radar and lidar. We mainly carry out those calibrations in our fitting centres, but some need to be done dynamically. Approximately three-quarters of cars need to be done in a static environment. The rest are calibrated dynamically on specific road conditions. At present we have 73 fitting centres around the country. We plan to open another 10 during this quarter. We will continue to review our footprint as demand continues to spiral up.

"However, we are not able to calibrate everything, the primary reason being that when manufacturers launch a new vehicle, it takes time for the programmes and data to be released to the aftermarket. The likes of HGS and Bosch then need to reprogramme their systems to allow us to do it. Typically we see a lag of about six months. In those situations, we have had to go back to the dealer network to recalibrate the newest cars."

Explaining the Total Calibration Solution, Neil said: "What we are launching today, with new partners, gives us an ability to delve straight into the vehicle manufacturer's software, effectively giving us the tools that are available to the dealership."
The key is the over the air device. Autoglass has an exclusive partnership with  the provider, and the company will be the only one offering the service.

Neil explained how it works: "The technician plugs this device into the OBD port. That will then wirelessly connect with our hub of master technicians. They can operate the software and dive straight into the manufacturer's own databases. They will then communicate back through to the car, via the box, and they will communicate with the technician to explain what's happening on the journey. When the journey is fulfilled and the car is calibrated, they will send an electronic certification for the car. We can then install that in the cloud so we have got evidence of that calibration process taking place."

Explaining what it means, Neil said: "The Total Calibration Solution allows us to fulfill nearly 100% of calibration requirements without needing to return to the dealer network. The primary benefits are twofold. Firstly, the customer journey is much better. Secondly, in the two-stop-shop solution currently in place there is currently an element of risk in the windscreen replacement and then the calibration. Doing it in one go eliminates that risk. It also allows us the opportunity to serve the market. We can do that through a number of options. This solution gives us the opportunity to do an OE diagnostic scan."

In conclusion, Neil said: "This over the air Solution will eliminate the need for us to go through the dealers, it will enable us to be able to deliver a full diagnostic check, part coding and ADAS calibration, it reduces the risk, and it reduces key-to-key times."

Closing thoughts
Following Neil's presentation, we were able to see the Total Calibration Solution demonstrated in the on-site workshop. The live display from the Autoglass technicians showed that the technician in the workshop was provided with additional support from the Autoglass master techs via the device. The master tech provided information to the technician so he could make adjustments to the camera to put it back in alignment.

With one of the business models for ADAS being one provider in an area taking on the financial burden of the ADAS investment, Autoglass are in a good position to become market leaders if they chose to target independent garages looking to action ADAS work. With the OBD port threatened with closure within the next few years, and VM access being a problem, it is unclear if this is a long-term solution, but it is certainly an additional level of support that offers the garage sector an alternative on the ADAS question.


A reality check

Neil Pattemore finds that time away over the summer has given him time to consider the factors influencing the future of the workshop environment
Published:  12 September, 2019

This year’s summer was good, but as usual, was over too quickly – so back to work and a reality check!
    
However, during my summer travels some of today’s necessities of life were conspicuous by their absence. I hired a car, only to discover that the USB connection I needed to use to charge my phone and link to my favourite music playlists didn’t work. The local radio station’s dubious choices in music didn’t help relive the tedium, but when I got to the hotel my woes were compounded when I discovered that they wanted to charge a ridiculous amount to use their wi-fi – I mean seriously, who in their right mind can justify charging hotel guests for basic wi-fi – unless the hotel is run by Ryanair (who seem to want to charge everyone for everything), which it wasn’t.
    
So, with no wi-fi in the hotel room, I had some time on my hands, so I started thinking about the connections we expect in today’s connected world and in turn what connections are needed to run today’s workshop. This got me thinking about the problems it would face if these connections were either expensive, were restricted, didn’t work as they should or didn’t exist at all.

Form over function
Back in the 1990s I remember well being handed a new portable diagnostic tool which could connect to the internet via the mobile phone networks. Subsequently, it was able to conduct remote and bi-directional diagnostics on a vehicle anywhere in the world, when the vehicle was also connected to the internet – effectively ‘PC anywhere’ technology. However, I also clearly remember complaining to the development engineer within a couple of minutes because the functionality was too slow. He was visibly shocked and was clearly offended by my negative feedback on what was his pride and joy. Then I realised what had made me comment negatively – it was not the impressive technology, but the speed of use and the corresponding ability to run the diagnostics I wanted to conduct. In IT terms, this is referred to as system ‘functionality’ and ‘non-functionality’. Simply, the ‘non-‘functionality’ is the design of the system and the ‘functionality’ is what it can deliver. It might be easier to remember this in layman’s terms as being ‘Form over function’.
    
When applied to the workshop, this directly applies to a wide range of electronic connections that are needed to support your day-to-day business, and if these connections do not work as needed, how this can quickly and detrimentally impact your business activities.

Don’t miss the ‘bus’
The ubiquitous Universal Serial Bus (USB) connection is a good example. A ‘bus’ within a PC are wires that transfer data between components inside the computer, or between the computer and its peripheral devices. We have all come to use this connection for a wide variety of tasks, from using it as an auxiliary power source for many different gadgets, to a vital communications port for various functions such as printers and other data transfer requirements. However, if it does not work correctly, physically or electronically, then simple tasks suddenly become major issues.
    
This wired technology has moved on and most of us are now connected by wi-fi in the office environment, but increasingly also in the workshop to connect diagnostic tools to the internet. Data transfer speeds depend on the technology used and the latest generation (soon to be 802.11ax) is super-fast, which becomes more important as software updating of vehicles involves the transfer of massive data files. Generally, wi-fi connections work well, but when they suddenly stop working, it is more difficult to diagnose as it is not a physical connection than can be more easily tested. This may happen after a software update and a recent experience showed me how simple a problem can be, but how difficult it was to discover, when my PC was updated and a simple setting was changed. Over three hours of technical support was needed to discover that it was a simple tick-box setting which needed to be re-enabled. These wi-fi problems move into understanding the IT environment of certificates, configurations, permissions, log-in and passwords between the router and the various connected devices, without even starting to consider the wider communications providers that connects your workshop to the wider world.

Have a cookie
This leads me onto an increasing communications requirement which has become a fundamental part of our day-to-day lives, from both the personal and business aspects – the internet. If there is ever a perfect example of living in a connected world, this is it. However, if you think about the wide-ranging possibilities that the internet supports, do you ever stop to think about the technology behind what is happening to understand the control mechanisms that are needed for it to be safe and secure? If you visit a website, not only are there likely to be cookies tracking your choices and mapping your activities, but there will be certificates being exchanged to ensure secure communication. This may extend to log-in criteria and passwords, or may be implemented by the service provider whose website you are viewing. This becomes particularly important when you are paying for something online.
    
In simple terms, all this is a form of coded access, but this works not only to ensure the correct access rights, but more importantly, to stop anyone who does not have the valid access rights from interfering or monitoring what you are doing.

Control
What then does all this lead to at the workshop level? In terms of the technology of the equipment, then it is developing to be both more reliable and faster, but the same cannot be said of the beloved OBD connector, which is not only restricted in terms of speed, but will become restricted in terms of access without the correct roles and rights authentication which requires certificates from the vehicle manufacturer. As the manufacturer controls this certificate, then it becomes ‘He who controls the connection, controls the function and ultimately the business’, so the workshop of tomorrow needs to worry most about a connection that they have no control over, but which will control their business.
  
Time then to sign up with one of the aftermarket associations and join the fight to protect access to the in-vehicle data!

xenconsultancy.com


Go large or go home? Expanding your business

Andy Savva looks at the challenges businesses in the garage sector face when they look to expand
Published:  04 September, 2019

As most of you already know, I have previously owned and managed a wide variety of successful independent garages.   

Perhaps the most well-known example of these was my last one; Brunswick Garage. I was being always asked by those within the automotive aftermarket why I don’t consider franchising Brunswick Garage. I was also asked why I don’t consider opening other sites, thereby creating a chain. Many people would ask one or both of these questions. Indeed, these thoughts often crossed my mind as well.

It sounds good to expand the empire doesn’t it? Grow the brand, make a name, and of course hopefully get a better financial return to boot. However, despite the encouragement, and my own inclination towards promoting growth, there are serious considerations that need to be made before you take the leap. The paramount one for me is my own belief that this is one of the most difficult industries in which to create a franchise.

Blaze of glory
About five years ago a garage in Coventry opened in a blaze of glory. This was an independent garage that was going to be franchised, with the aim to have one of in all major towns and cities with five years. The originator of this idea was not from within the automotive industry, which is not a bad thing, but from the banking-finance world. I remember when the second site was opened, I was asked my opinion on this venture. I said then the same as I would now.  What I told them, very clearly, that it is practically impossible for such a venture to succeed. To date I I’ve been proved right, as it has closed down, although you might have already guessed that by the way I was talking about it in the past tense.
    
The reasons behind my opinion are very simple, and very clear. A garage is not like any other business, where you are purchasing a product such as a coffee or a shoe. A service is perhaps the most difficult sale to make. When a vehicle owner is buying a service or repair, that person is really purchasing a promise that will be fulfilled in the future. That requires trust, skill, competence, ability, technical knowledge, and much more.

Processes, procedures and interactions
There are too many processes, procedures and interactions between customers and staff members. This web of interactions means that you can’t franchise just like that. We are dealing with emotions and behaviours that can’t just be accounted for. What works in one area of England may not necessarily work in another. What works in England may not work at all in Scotland. What about Wales and Northern Ireland? Forget about it, and so on. There are so many variables and barriers to consider, customer and vehicle demographics, land and property costs differ up and down the country.

However, no matter what your goals are as a business owner, it’s important to review the pros and cons of growing your business in order to hone your vision and assess potential stumbling blocks before they arise. Owning a multi-unit business is hard work. Here, I have tried to highlight some of the key points to consider if you want to expand into multi-site independent garage operator.

Pros  


Will power: part two

Adam Bernstein continues looking at how to plan for the tax-efficient passing of business assets
Published:  30 August, 2019

Death and taxes are the two givens in life, a view popularised by a US founding father, Benjamin Franklin. And so, we need to put in place a Will if we want to pass on the most we can. Sadly, as the statistics bear our, the majority of the population do not have a Will.
    
Business owners especially need to be concerned about this as they need flexibility after death. It’s for this reason that Angharad Lynn, a solicitor in the Private Client team at law firm VWV, says it can be useful to leave business assets in a discretionary trust in the Will with the surviving spouse and children as potential beneficiaries of the trust: “These very flexible arrangements allow decisions to be taken after death, rather than trying to predict at the time the Will is made what the situation will be in the future. After death the business interests can be kept in trust and income paid to the children, or shares can be transferred out to the children in appropriate proportions, depending on who is most involved in the business.”
    
If there is any doubt whether the business assets will qualify for Business Property Relief (BPR), or if the business owner is concerned that BPR may be curtailed, a trust that has as potential beneficiaries both exempt (the spouse) and non-exempt (the children) beneficiaries can be useful. Says Angharad: “On the death of the business owner, the beneficiaries can ascertain whether the business assets will qualify for BPR. If it does apply, then under s.144 of the Inheritance Tax Act 1984 the trustees may decide to transfer the assets out to the children and wind up the trust. No inheritance tax will be payable. If the shares do not qualify for BPR, the assets could be transferred out to the spouse, again ensuring that no inheritance tax is payable, thanks to the spouse exemption.”     
    
She adds that provided this is done within two years of the death of the business owner, these steps can be 'read back' into the will so that it is as if the deceased had left the assets in this way for inheritance tax and capital gains tax purposes.
    
There is another point worthy of consideration – If there are family members who are not involved in the business, the use of a trust can protect a business. If uninvolved family members inherit shares directly they may want a say in the running of the business, even if they do not have the skills or experience to be involved. Using a trust, reckons Angharad, means the beneficiaries would not have a direct right to any interest in the business and therefore no direct influence.
    
Lastly here, if you are including a trust in your Will, Angharad says you should also include a letter of wishes to be stored with it, giving guidance to your trustees about how you envisage the trust being used after your death. “A letter of wishes is not legally binding, and it is important to state that you do not intend to fetter the discretion of the trustees. However, the letter can explain to your trustees how you see the capital and income of the trust fund being used after your death.”
    
A last piece of advice from Angharad is to ensure that business documents, such as the articles of incorporation and shareholders' agreement accord with the wishes set out in your Will. Further, she says, ensure your business has the correct documentation in place. “Take a partnership - in the absence of a partnership agreement, the provisions of the Partnership Act 1890 apply. Under this Act, on the death of a partner the partnership is dissolved. This could leave a surviving partner in a very difficult position. They would have to wind up the business, pay the debts of the partnership, and distribute whatever is left.”

To finish
Those without a Will are sending their family into dangerous territory and a painful interregnum. Quite simply, the wishes of the deceased will not be known, the law will step in and determine how assets are distributed leaving survivors with not what they expected.


The charity Will-Aid runs a scheme each November where simple Wills can be written for a charitable donation: www.willaid.org.uk


Subscription versus submission? Preparing for the on-demand future

Can independent garages survive in a vehicle-via-subscription world?
Published:  19 August, 2019

“Nothing is ever going to change, and everything is going to be alright forever” is usually the last thing said by a business owner, just before their enterprise becomes completely irrelevant. Customers sometimes take a little while to realise that something has happened that is affecting their behaviour, but once they notice they are doing something differently, it is probably too late. Then again, why should they go back? While the customers of our oblivious service provider have happily moved on, he or she is watching their life’s work quietly slip away.
    
This has happened to many businesses across a wide range of industries. If there is a new offering that is a serious disruptor to the status quo, only those who are adaptable and open to change will survive. Keep doing what you have always done and you will go under. Think it won’t happen to you? Then maybe it already has.

Subscription
Alright, let’s take a step back from the brink for a second and think about what could be coming around the corner to change our world. Actually, maybe it is already here. I am sure most of you are aware of subscription-based services, and probably use one or two in your private time i.e. Netflix or Spotify. The principle applies to the automotive sector too. There are quite a few car-sharing services and car clubs. These tend to be on-off options that users will activate when they need a vehicle.
    
Vehicle leasing is probably a better example. This is not a new concept, but it has become much more common and accepted by motorists, particularly in a world where people are becoming increasingly comfortable with using a vehicle without the need to actually own the vehicle.
    
The big issue with motorists not owning the vehicle from our perspective is this: If they don’t own it, who does, and where does that owner expect to get the vehicle serviced? Because, if it is not at an independent garage, or if legislation does not keep up and shuts out independents until amendments are made, you are not going to see any of that business.
    
Let’s get back to subscriptions. We read something interesting recently from Syncron, the provider of cloud-based after-sales service solutions. The company recently released research that highlighted increasing consumer interest in subscription-based services, and the company believes this is forcing vehicle manufacturers to redefine their dealer service operations. If manufacturers look to change the rules of the game, it is always a good idea to make sure independents are still allowed play.
    
As Syncron pointed out, vehicle subscription services are a way for people to access what are euphemistically called ‘mobility services’ as an alternative to traditional car ownership. Through mobility services, a provider’s customer pays a flat monthly fee to a manufacturer or third-party provider in return for on-demand access to several vehicle models. The fee covers insurance, maintenance and roadside assistance. As with music or on-demand TV, this can be turned off or on at will. OEMs already employing these models worldwide include BMW, Volvo, Jaguar Land Rover, Lexus, Mercedes-Benz and Audi.

Submission
As you might already be imagining, in this model where the customer picks up and drops off a car when they feel like they need it, or not, there is not much need for the customer to source servicing or repairs. Where’s the convenience in that? It would be like having Netflix, and having watched the film, deciding to go outside, up the road to Blockbuster to take the tape back. What tape? Also, how can you take the tape back to Blockbuster since it is not there anymore. Aha, but there is always the independent video store…no I can’t get to the end of that sentence either. Can you see where the logical end of all this might go? Motorists that do not own their vehicles do not need to have a vehicle serviced. Neither will they be looking for servicing or repairs on a price point, as again it is not their responsibility. Where does this leave independent repairers?  Should you just chuck in the towel? Actually, things might not be as bad as you think.  

Upside
As far as Syncron is concerned, there could be an upside for service providers like the automotive aftermarket. The change in attitudes brought on by the subscription economy, as far as they are concerned puts the most pressure on vehicle manufacturers in their traditional core business area, i.e. vehicle production. With less impetus to buy vehicles, there will be less vehicles sold. That means they need to derive income from the other end of the chain – namely servicing and repairs. This means manufacturers would need to look to their dealer networks to generate income for them.
    
As some you may have already realised, in many ways servicing and repairs is not where the primary strength of many franchised dealers lies. This is despite the fact that most of them generate more profit from this end of the business than from new car sales. Part of the issue may be that for dealer workshops, most of the work they do will be on cars below three years old, mainly focused on servicing and warranty work. While they do try to keep as much metal from escaping as possible once the standard three years is up, for the most part their workshops do not need to perform the more challenging diagnostic work that many independents will see day-in-day-out.
    
Given the right circumstances, and if vehicles were owned by a third party rather than by VMs themselves, or if consumers still had the same level of choice as if they were the owner within certain parameters, independent repairers could offer a more rounded care offering that would fit with the needs required. There is some good news right there.

Reactive
Overall, servicing aside, vehicle care is often reactive, with vehicles being repaired after something has gone wrong. Syncron posits that in this model, franchised dealers will need to be armed with enough information coming in from vehicles so they can pre-empt failures, effectively repairing the vehicle before it goes wrong.

Experience
Syncron looked into what consumers get from the dealer experience, in a survey of 500 vehicle owners from across Europe and the U.S. The findings were featured in a report; shifting Gears from Reactive to Proactive: How Customers’ Rising Interest in the Subscription Economy is Revolutionizing the Automotive Dealer Service Experience.
    
We are talking about vehicle subscriptions as if motorists are chucking their cars away left and right. However, the report found that awareness was relatively low, with more than 60% of respondents not aware of the concept. Not so much to worry about then perhaps, we can get agitated about this idea further down the line when we have got our heads around EVs and hybrids? Afraid not. Once they did hear about the idea, 57% said they were very interested in the idea. You might need to think about your business model after all.

According to Syncron, additional findings from the research report include the following:

Customers are satisfied with the dealer service experience as it stands today
Nearly 60% of vehicle owners indicated that they use their dealer for maintenance and repairs today, with more than 90% describing their most recent dealer service experience positively.

Interest in subscription services is high, but awareness is low
Around 60% of respondents indicated fixed monthly cost and included maintenance and repairs as the biggest advantages of vehicle subscription services. More than 40% of respondents also indicated they would be willing to pay a premium price for a subscription-based model.

Automotive OEMs must invest in service today to prepare for the future
More than half of survey respondents lack loyalty to a particular automotive brand when making final vehicle purchasing decisions. And, with nearly 40% of these vehicle owners indicating that a negative dealer service experience would sway their perception of a brand, the customer experience at the dealer level is more important than ever.

Game-changer
According to Gary Brooks, CMO of Syncron, subscription services could be a game-changer: “In the coming months and years, automotive manufacturers must optimise their current infrastructure to lay the foundation for a successful future. It’s not so much a matter of if, but when, customers will overwhelmingly demand subscription-based services. Automotive OEMs must begin equipping their dealers today to prepare for a proactive service model where vehicles are repaired before they ever fail. In this new research report, we aim to inspire and motivate automotive manufacturers to do just this as they navigate today’s ever-changing customer expectations and prepare their businesses for the seismic shift to the subscription economy.”

Positive position
What can we learn from this though, and where does the independent repairer fit in? Assuming that our representative organisations, including the IGA, IAAF, GEA etc are able to make sure that independents maintain the rights secured under the Block Exemption Regulation, independents could be in a very positive position.The connected car could provide a whole new income stream for those able to access it – and we want that group to include independents.
    
Garages that thrive need to be proactive to attract business in the first place – they do not have the built-in customer base of owners that dealers can rely on. Given the circumstances, and the access to remote diagnostics, independents could be in a good position. Among the exhibits on the HELLA stand at Automechanika Birmingham this year was information on CarForce, the software platform that provides real-time vehicle health data to garages. While this is not currently running in Europe, it does point towards where we are going.
    
Again, assuming drivers still have the choice, if independents were able to compete on a level playing field information-wise in the brave new future, they could do really well. The best thing to do at this point is to stay on top of the technology, keep up with developments and make sure your business is attuned to the zeitgeist.



TRW's 'True Originals'

Published:  15 August, 2019

ZF Aftermarket is looking to help garages boost their digital marketing. With this in mind, the latest episode in the long-running TRW ‘True Originals’ campaign provides some tips on digital marketing tools and analytics, with the idea being to help garages modernise their communication techniques.

As the company points out, digitalisation within the industry is increasing at a fast rate. Statistics showing the rising amount of time customers spend online, and how online reviews influence purchasing decisions, should be taken very seriously. ZF Aftermarket is suggesting workshops should adapt their communications accordingly.

According to Ben Smart, Global Marketing Director ZF Aftermarket, businesses can increase sales and customer loyalty through digital marketing and social media, without the need to spend a lot of money: “By 2020, an entire generation, Generation C for ‘connected’, will have grown up in a digital world immersed in an online culture and well versed in social networking methodology. Furthermore, figures show that by next year the average person will be spending 84 minutes a day watching videos online.”
Russ Stanley, Director of Revolution Porsche based in Brighouse, West Yorkshire is featured in a video as part of the campaign.  Russ explains how through early adoption of digital marketing he increased loyalty and managed to promote business growth: “Our interactive website means that customers can contact us outside of working hours, and social media has allowed us to grow far more quickly and easily. Every time we send an e-mail we ask our customers to follow us so it’s really easy to organically build up a good database. Sharing links to forums, exhibitions and other websites, together with engaging and relevant information about our team enables customers to interact.

“We also practice video servicing logging, where we send videos to our customers so they can actually see what work their vehicle needs – a good way of sharing information that really builds trust and confidence. Digital marketing costs very little other than your time, but the reach and rewards can be fantastic.”

The video can be found on #ORIGINALWORKSHOPS – a hub of advice, tips, videos and more. New web-based essays include:
 
What is digital marketing and how can it benefit your workshop?


Customer first: Monksbridge Garage

Aftermarket pokes its head into Monksbridge Garage to visit Top Technician 2019 semi finalist Craig Hewison
Published:  08 August, 2019

Like many garages based in small towns, Monksbridge Garage has been a local fixture for longer than the current owners have been in charge:  "It used to be a heavy goods garage back in the 1960s," explained Craig Hewison, Manager at the business, based in Dinnington, South Yorkshire.

Within one fixture is another, one that has found new life in a new era: "As a consequence of the garage's former life, we have got an enormous pit. This means we do a lot of motorhomes because no one else in the area can deal with them."

Alongside this ominous-sounding but actually-useful feature, the business operates two ramps and a MOT bay. The full complement is three full-time technicians, and two part-time that work opposite each other. "We stay busy, but we don't advertise - it is primarily long-time customers that have children who are also our customers, and they are the kids of the customers we used to have."

Efficient
The business has been with the family for 17 years, but their connection goes back further:"My dad, Peter, has always been in the motor trade and he used to be a customer here. He came in one day for an MOT, and Geoff, who was the owner at the time, said he was thinking about packing it in and selling up. My dad showed an interest, so he came to work with him for a few years, to get to know the business and also to get to know the customers, and to get his MOT testing license and what-not. My dad worked with Geoff for four years, and when Geoff retired, my dad took over from him.  As he finished on the Saturday I started on the Monday as an apprentice. It was just me and my dad. It has gone from that to where we are now.

"My dad is still here but he is only part time, just two days a week.” Craig laughed: “He does the MOTs, annoys everybody and goes home!"

The business had to move with the times: "When we started the garage was like the Black Hole of Calcutta. We had the whole place rewired and everything."

Craig moved with the times too: "Early on, whenever anything came in with a management light on, or emissions on MOT or anything, it had to go to another garage in the area- the one where the guy was known for doing that sort of stuff. Everything just got sent there. One day I said 'instead of sending it out all the time, what would it take for me to learn all this stuff? ' My dad said 'find yourself whatever you need to do' and he supported me through whatever courses I needed to go through.

"I'm not saying I did it in the most efficient manner, I probably did the wrong courses in the wrong order, I did what tickled my fancy as opposed to learning the basics first. However, he never once said you can't go on that one. Over the years, with experience, I have learned more and more.  We have invested in quite a few of the dealer tools. Word has gotten around and now we are the go-to-place for the complicated faults." How the wheel turns.

Different way
While he had his hand firmly on the technical side early on, it was only in the last few years that Craig found himself on the business side of the business, and he had to learn quickly: "Four years ago, my dad had a heart attack, and he had to have about three months off work, which dropped me in it. I had to suddenly learn how to run a business, and I wanted to run it a different way. My dad used Excel, whereas I brought in Sage. We have moved onto QuickBooks since then. We moved onto an electronic diary, because just working from a paper one you couldn't work out what you've got in for a day and what you haven't. Five lines could be a 20-minute job, and one line could be a full day's job. I basically started automating a lot of things. It has changed a lot as a result.

"I know the way round cars like the back of my hand, but I didn't know much about running a business. That is why I have started doing training on running a garage. I am on the business accelerator programme with John Batten for example."
Craig is continuing to use technology to help the business:  "We have just had Garage Hive installed this week. Give it a couple of weeks to get used to it and it should increase the efficiency within the garage which should then free up more appointments for customers. Obviously then we might have to look at advertising to fill those spaces, but at the moment we are at capacity."
For someone who said they didn't know how to run a business, he sounded like got on top of it pretty well: "It’s sink or swim isn’t it!" Typical Yorkshire understatement.

Wisdom
A little wisdom also goes a long way: "Garage Hive is new, but the ethos behind it has never changed. My dad was a good mentor. Our motto has always been 'customer first'. it is something my dad has just drilled into me since I first started.
"Without the customer you haven't got a business, have you? Everything we do is orientated to make the customer happy. My dad taught me that from starting out on my very first day. We have never used cheap parts - we use quality ones because we don't want to do a job twice. It is messing the customer about and they might not come back. We don't bodge anything. If something is not right we sort it. If we have not included it in the quote then we stand to it - the job has got to be done right.  You can't afford to upset customers, especially when you are a small business because word gets around too quickly. Kwit-Fit can probably afford to lose a couple of customers, whereas we can't.

"Just this month, we have taken a courtesy car on. This is because people ring up and ask for an appointment for Saturday, but we are fully booked, Saturdays are booked weeks in advance, so they go elsewhere. Now we have the courtesy car. We had a call this week; ‘Have you got a slot on Saturday?’ No. ‘Ok I will leave it’. Well can you bring it down mid-week and have our courtesy car. ‘Oh fantastic I will book it in’. It is just providing that extra service.

"We will soon be able to take online bookings for MOTs, and we now do automatic MOT and service reminders. We are having a new website built too."

Craig believes this is crucial: "I don't want to be like the other garages that don't have the knowledge and don't invest and are falling behind. I don't want that to happen to us. I don't want people coming in and we are not able to help them. I am trying to get it all working so it just flows.  It is better for technicians as it keeps them happy, it is better for the business as it keeps the money coming in and it is better for customers as we can provide them with a better service. My focus is to make sure that all three are right, that way the customer should have a great experience "

Top Technician
As well as within his own business, Craig is doing pretty well in Top Technician, year-by-year: "I have been a semi-finalist twice, and I have only entered it twice. The first one I entered out of curiosity and I ended up in the semis. I let the pressure get to me though. I don't count it as a big loss as I was a nervous wreck when I went into it. The second time I knew what to expect. I did not expect to go through to the finals because of the hybrid, so I came in a lot clearer minded and I was a lot happier with what I had done." Craig laughed again:  "I don't see it as two attempts, I see it as one and a half!

“I would definitely recommend Top Technician. You learn where your strengths and weaknesses are.”

The fundamentals
Looking forward to the future, Craig commented:  "At the moment I am trying to continue improving the efficiency. With my dad semi-retired, and all this new technology coming in, we need everyone at a high level. One of my lads is my right-hand man now. He is fantastic. He can run the workshop without me, so I am trying to get him technically where I am at, that way the business can continue to operate flawlessly when I’m not here."

Craig is also looking to upsize the workshop in the long-term: "I would like to have something double the size in the next few years. At the moment the main focus is getting everything running properly so we have a good brand out there and so that we are the go-to-garage in the area. The immediate future is trying to get the fundamentals right. It is the little details that make it look professional. They inspire confidence.  I need to get my foundations laid so I then have something stable to build on. If you have good foundations, you can build it as tall as you want."





Days of future past?

Andrew Marsh considers the future of UK-based vehicle manufacturing, suppliers and the impact on the aftermarket in the UK towards 2025
Published:  31 July, 2019

Some of us remember the 1970s, where the prevailing feeling was that automotive sophistication usually came from abroad unless one spent a huge amount of cash, that our industry was led mainly by endlessly upset activists, and that our biggest vehicle manufacturer – ‘British Leyland‘ at some point – represented what the UK was all about. This was for the most part utter rubbish.
    
Of course, much of the above does not stand close scrutiny, but it is true that British Leyland kept giving Fleet Street a continuous supply of headlines which money simply could not buy. Red Robbo, for example was an odd man, who sincerely believed in his cause and did not apparently connect that disruptive work patterns simply made poor manufacturing processes (the cause of the dispute) much, much worse. Who could forget the geniuses who placed a brand-new manufacturing line at Cowley (now called ‘Oxford’ by the present occupiers) where the established time for people to work underneath vehicles was gloriously exceeded? Or the star who invested in the Rover 800 based on volumes of 400,000 units, yet failed to sell a fraction of that even with a facelift? Or that the very same star would later arrive to drive the rump of British Leyland (MG Rover) into the ground?
    
It has taken decades to shake off the implosion of UK automotive manufacturing, even though in reality the companies that needed to shape up or fail were mostly shaping up. Our national preoccupation with failure seemed to eclipse the success of the UK building 1.6 million vehicles and more than 2.7 million powertrains in 2018, even though it did take quite a few years to build those volumes back up.    
    
Behind vehicle manufacturing is a series of suppliers, and suppliers to those suppliers. When vehicle manufacturing disappears from a country – or in the case of many – was never present, the aftermarket becomes 100% reliant on imported components, as well as vital expertise. We need to be aware of what is happening in vehicle manufacturing even though the changes in manufacturing take place over several years.

Brexit and deals
Much is made of the uncertainty around Brexit.  Some of that is very real, but as Her Majesty’s Government knows full well the impact may be mostly concentrated on taxation. Those who remember past events will recall, the government can impose new tax levels or even new forms of tax at lightning speed. Effectively ‘such is life’.
    
The Brexit ‘negotiations’ have taken against a backdrop of significant international financial instability, namely the USA’s insane debt bubble and the combination of China’s vast debt bubble combined with significant over extended state investment. You can add to this potent mix long-standing internal company issues. Nissan, for example, really do not like to be reminded that they exist today thanks to the investment and technology from Renault.

Anarchy in the UK
For fans of anarchy, we seem to have apparent utter anarchy. There were three important developments.


Future-proofed: Training technicians for the long-term

Continuous progression and education allow automotive professionals to stay abreast of the latest technology in the rapidly evolving aftermarket
Published:  18 July, 2019

While experience in the day-to-day activities of a workshop is vital in building a technician’s knowledge and skills, it is only one piece of the puzzle. For example, a technician who has been servicing solely petrol and diesel vehicles for the past 15 years will unlikely be able to help a customer with a hybrid or electric vehicle. What’s more, given the safety concerns involved, it would be dangerous for them to try. What about servicing the latest safety-critical systems, like ADAS? Certainly not a worthwhile risk without the appropriate knowledge or equipment.

Systematic training in new technologies is, therefore, the best way to ensure a workshop will continue to successfully serve aftermarket customers, even in times of rapid change.

“The Auto Education Academy portal from Euro Car Parts brings IMI-approved online and practical courses together with a database of over 500,000 resolved technical queries, with an average of 600 new repairs added daily,” observed Adam White, Workshop Solutions Director at Euro Car Parts. “It provides technicians with one of the largest technical training and knowledge resources in the independent aftermarket.”

“Training is an integral part of ongoing success in this industry,” continued Adam. “It allows technicians to further their career and workshop owners to develop a highly-skilled team of professionals.”

While many would agree to education’s importance in principle, it can be difficult to carry out a training plan and accept lost revenue in the short-term. Online learning can provide the flexibility to bridge that gap.

“Repairers can login to their own skills portal to view the content of more than 75 different courses, registering and booking their place on training workshops all over the country at the click of a button,” said Adam. “They can also assess their strengths and identify weaknesses in nine key areas: Petrol engines, diesel engines, engine management and emissions, vehicle electronics, hybrid and electric cars, brakes, powertrain, tyres, steering and suspension, as well as air-conditioning.

“Results are automatically added to an interactive skills diagram, illustrating a repairer’s current skillset and enabling them to set their own training and development targets. Where gaps exist, the learner management system intuitively recommends Auto Education courses that can help increase knowledge in those areas.”

Invaluable
“The platform has been designed so that anybody can complete a skills overview,” pointed out Adam. “This makes the tool invaluable to workshop managers looking to monitor staff skillsets or test potential hires. Our new learning portal represents a significant investment by Euro Car Parts in helping to nurture the knowledge and skills of technicians across the country.
“As with any profession, it is important for technicians to continue professional development throughout their career. It is also the role of managers to identify gaps in their team and commit staff to training that will address shortcomings in the workshop’s capabilities. For more immediate solutions, the programme features a technical helpline that provides fast responses to troubleshooting, repair, diagnostics and technical information queries on any vehicle, from any manufacturer.”
Adam concluded: “For those with an eagerness to learn and evolve, it is an exciting era for the independent aftermarket. “We consider the success of technicians and independent workshops as the foundation of our industry and believe nothing plays a greater role, or makes more of an impact, than education.”


Tomorrow never knows?

Neil Pattemore considers the workshop of tomorrow, and how it will impact on the business of tomorrow
Published:  16 July, 2019

Last year I wrote about the changes facing independent workshops. Since then there have been further developments, and now the rate of change is increasing exponentially. You will be familiar with today’s challenges and probably aware of some of those of tomorrow’s, especially if you are a regular reader of this revered magazine. However, the workshop of the future will need to change significantly to stay competitive as well as being compliant with both commercial or legislative requirements.
    
If I look as some of the likely changes, they are quite wide-ranging, but together they will put increasing pressure on the management of the workshop and the business more generally. The IMI has recently stated that “management and leadership within the sector is not evolving quickly enough” and that “a skilled, competent and professional workforce, able to keep pace with the demands of new technology and changing markets and remain competitive” are necessary, which are being supported through the IMI’s ‘Campaigns for change’ initiative.

Greatest challenge
Looking at the workshop level first, then the greatest challenge remains the access to, and the use of, in-vehicle data. Taking the access to the vehicle first, it will be controlled to meet the needs of cybersecurity – needed as vehicles become ever-more electronically controlled on the way to fully autonomous vehicles. This also means that today’s OBD connector will be both restricted in the way that it can be accessed, already requiring electronic certificates to authorise access and to define what data/functions are then available, but also the width and depth of data which is also being reduced due to the very design of the OBD connector being unable to support the bandwidth needed for high-speed in-vehicle systems. The access for these systems will be via wireless communication, which is both faster and more secure, but also more difficult for the workshop to access – even if this is going to be possible at all. Vehicle manufacturers already deny independent service providers access to data via any of their telematics systems and are restricting the OBD port. To obtain the required electronic access certificates even for the OBD port, independent workshops have to be registered and authorised by the vehicle manufacturer before paying them for the required certificate. This is especially a requirement when working on ADAS systems, as the vehicle manufacturer needs to know if the repaired system is re-calibrated and working correctly, so access to the system, the re-coding of replacement ADAS components, as well as confirming the vehicle is working correctly again, is likely to be certificate based. All these access authorisation requirements are likely to need new legislation to provide independent access to the vehicle and its data.
    
Assuming that access is possible, the next evolution will be the use of data with supporting partners, such as the diagnostic tool manufacturers and spare parts providers. This will be necessary to quickly and accurately identify what work is needed on a vehicle and the corresponding replacement parts on increasingly complicated in-vehicle systems. This will be done by exchanging data with these service providers to provide a ‘just-in-time’ delivery of the technical support and parts needed – without this partnership support small independent businesses would struggle to repair tomorrow’s vehicles, let alone make a profit from doing so.

Vehicle ownership
As vehicle ownership moves away from individuals to ‘mobility service providers’, where the use of the vehicle will be available as short-term rental (i.e. by the hour, day, month etc.), your customer becomes the vehicle provider and they will drive down prices to be competitive in their own mobility services, so workshop efficiency becomes paramount to remaining competitive in this changing market.
    
In a wider context, the way that vehicles are supplied through authorised dealers is likely to change, as direct sales to mobility providers develops. As this happens, the authorised dealers are more likely to become service and repair points, and this is where the difference between authorised and independent repairers becomes more blurred. Both types of workshop will need similar levels of competence and be competitive for the service and maintenance they provide. This brings in another change for the independent workshop, where there will be an increasing need to have business management data reporting that will be needed by the mobility service providers to allow them to work efficiently with the workshops they are dealing with (e.g. financial and process management systems) that today is expected from authorised repairers.
    
The very real threat is that vehicle manufacturers will either fully block remote access to the vehicle and its data (the identification of what work is needed will be conducted remotely before the vehicle comes into a workshop), or will control the access via workshop interfaces, using electronic certificates, and in doing so, control all competitors while imposing their own business models and service/repair methods. Legislators are aware of this but are also deeply concerned about the cybersecurity threat and are still investigating what solution may be needed to ensure true competition is still possible for both the mobility service providers and vehicle repair workshops.
    
Some better news is the imminent referencing into European legislation of the ‘SERMI’ scheme, which will verify and authorise independent workshops to provide access to security (anti-theft) related data, functions and parts. This scheme is now being directly included in European legislation and once implemented, could be expanded in the future to provide a harmonised access and use of electronic certificates for other requirements. Ultimately, the SERMI could help avoid vehicle manufacturers blocking competition ‘through technical design’ – but this remains a legislative decision.

Competitive choices
The workshop of the future will look very different to the workshop of today. There will be much more reliance on the access and use of data. The sharing of this data will enable efficient and timely repair of the vehicle. This will also necessitate increased levels of business management to both fulfil the demands of mobility service providers, but also to ensure that the business has efficient management systems to underpin their ability to remain competitive – and to continue to offer consumers competitive choices. The future moves mechanical repairs into the digital age and the inherent IT skills that this will also require. This will demand changes within the independent workshop business, but will also be directly linked, in every sense of the word, to external partners – so choose your partners carefully, as your future business may be dependent on what they can provide and how this will impact your own business activities and efficiencies. It is also clear that your future business will increasingly be less independent and become increasingly interdependent on the requirements and abilities of others. United we stand and divided we fall – so seriously consider joining one of the UK aftermarket organisations who will fight for legislation that can support your needs. Welcome to the brave new world of vehicle repair workshops!

xenconsultancy.com


Will power: part one

Where there’s a Will, there’s a way for a business to make a seamless transition following a death, as Adam Bernstein explains
Published:  11 July, 2019

Not all business owners have the foresight of the late Richard Cousins, the chief executive of Compass Group who, along with his family, was sadly killed at the end of December 2017 when a pleasure aircraft he was travelling in while on holiday crashed. Cousins’ generosity led to the charity Oxfam being given £41m in a bequest because of a ‘common tragedy clause’ that he had inserted into his Will.
    
Some 60% of the UK population does not have a Will, including a third of those aged over 55. For a business owner, dying without making a Will and/or planning your succession can have a devastating effect, not only on your family but on your business too as having nothing in place can lead to an interregnum in your affairs.
    
Angharad Lynn, a solicitor in the Private Client team at law firm VWV, says that if you die without a Will your estate will be passed on according to the intestacy rules which changed in October 2014 when the Inheritance and Trustees Powers Act came into force. “Under the new rules,” says Angharad, “if an individual dies leaving a spouse and children, the spouse will take the statutory legacy (currently £250,000) and the rest of the estate will be divided equally between the spouse and the children. If there are no children, the spouse inherits the whole estate.”
    
She warns that for unmarried couples it is particularly important to have a Will as the intestacy rules take no account of such relationships: “If the couple have children, they will inherit everything. If not, the estate will go to other blood relatives. The surviving unmarried partner will receive nothing.”

Choosing an executor
It’s an executor who administers estates after death. There is no limit on the number you can name in your Will. However, the maximum number of people who can take the grant of probate is four.
    
Angharad says it’s quite normal to appoint a spouse or children as executors but suggests that it is also worth appointing a professional who can ensure that business assets are dealt with as you would wish. This can be an individual, such as your solicitor or accountant; alternatively, many professional firms have a trustee company that can act as an executor. She adds that the advantage of this is that while your own lawyer or accountant may have retired (or died) by the time of your death, the trustee company will provide continuity for the appointment of executors, enabling partners from the firm to act. The retirement of your own lawyer will not mean that you need to update your Will.

Assets that can be left by Will
In your planning it’s important to not forget a spouse as assets held jointly can be owned in either of two ways. Angharad says that they can be owned as joint tenants or tenants in common – and this is true for all assets, from your family home to shares in your business: “In essence, if an asset is owned as a joint tenancy, it will pass outside your Will, by the law of survivorship. What this means is that if the shares in your business are held with your spouse as a joint tenancy, they will pass automatically to them on your death and not by your Will, regardless of the provisions of the Will.”

Plan to save on inheritance tax
Tax planning after death must be a consideration and Angharad notes that one of the reliefs from inheritance tax is Business Property Relief (BPR) which is available for a business or an interest in a business, as well as land, buildings, plant and machinery used for the purpose of the business and shares in unquoted trading companies. “BPR is currently awarded at 50% or 100%,” says Angharad, “it’s a very generous relief and it is possible that its use will be curtailed in a future budget. So, when planning your succession, ensure your business will qualify for BPR by checking it meets the scheme requirements.” To qualify businesses must be trading, and if the proportion of assets held in investments is too high the business may not be able to use BPR.
    
The charity Will-Aid runs a scheme each November where simple Wills can be written for a charitable donation. Go to: www.willaid.org.uk



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