Expanding your transmission business

Before I bought Certified Transmission in August 2001, I worked in sales and marketing for a regional automatic transmission parts wholesaler based in Kentucky. As part of my job I visited and called on transmission shops from as far north as Michigan to shops located in the Carolinas. One function was to evaluate each shop and determine who, what, how much and total potential. For those of you not in the parts business, I’m referring to who they bought from, what they bought from them, how much they bought from them and total potential product they were likely to purchase in a month’s time. I would gather the information and put together a snapshot of the business and compare it against the amount of products and product mix we were currently selling to the shop.

For those of you in the transmission business, you know the business can be up and down based on many factors. For example, school could be starting or the Christmas credit card bills may be coming in the mail. I always was amazed when I visited shops that were known for doing good volume, but finding them “dead.” I can remember one shop in particular. I could see the manager slumped over the front counter, much like “Jabba the Hut” from the Star Wars movie franchise, saying they were slow. It became a game with me each time I saw him. He would say he is slow and I would say, “What are you doing about it?” His answer was always the same. “It’ll come back.”

Let’s go back and take a look at the date I bought Certified Transmission. I

remember closing on the business on Friday, Aug. 21, 2001. I was married with a 10-month-old boy and another baby on the way. I was in the position I had always dreamt of, owning my ownbusiness. I took possession of the business the next Monday and business was good for the next three weeks. One morning I remember Joe, the former owner, getting a call from his wife saying to turn on the TV. Something was happening in New York. The date was Sept. 11, 2001, and we all know what took place on this date and afterward in the American economy. By the end of the year, we had burned through all our capital and prospects were dim. What was I going to do? My customer base and yours, if you were in business then, wasn’t spending a dime on anything they didn’t need. Then one day it happened.

One morning I got a call from a customer who had been in the shop a day or two before. She said after she left the shop her serpentine belt had broken and she was stranded on the side of the road. We, like many shops, did automotive work other than transmission, but only if the customer requested it. We only fixed what they asked for and didn’t bother to look at much else. I still remember her saying, “Didn’t you notice I had a bad belt?” I really felt stupid. From that day forward, my shop began doing what I call a performance inspection.

Our performance inspection is a basic vehicle inspection form that has helped to transform my business and keep the bays full. Those of you who use a form like this every day are probably shaking your head in agreement right now, but those of you who would like to grow your business and diversify into other profitable services need to follow me closely. I will show you how to use this and the Service Estimate form on the reverse side to earn more business from your customers and also develop a following that can grow your business profitably into the future. The key to success is using the forms on virtually every vehicle that comes into your shop!

Using the Inspection FormLooking at the Inspection form, the Vehicle Systems we want to check are listed in the left-hand column. The next three columns to the right are labeled good, marginal and NOW!, plus we made room for the technician to make notes. As you can see, my inspection form is very basic. The items we want to inspect are mostly basic maintenance items and can be inspected by your employees in about 10 minutes or less. Over a few days your guys will develop a rhythm and perform the inspections the same way on every vehicle that comes into your shop.

Here’s how the form is used in my shop. Most of you already operate in the same manner using some sort of repair order (RO). The repair order basically is information that has been gathered from the customer saying what their concerns are with their vehicle and is relayed to the technician working on the vehicle. In my shop, like many of yours, we identify each vehicle for the repair order by current mileage, VIN, production date, engine size, year and license plate.

Once we have collected the vehicle information and made any notes, the RO is passed to a technician who then attaches a copy of the Performance Inspection to the back of the RO. The key to adding the inspections to any shop is to not change the way you are already doing diagnosis, but to perform the inspections in a way consistent with what you are already doing. We really don’t want to reinvent the wheel, but merely add the inspection process to the areas you are already looking at as you move around the vehicle. This was the thought as the inspection form was created.

While test driving the vehicle to duplicate the customers concern note if any Warning Lights are on. The most common ones such as Check Engine, Brake and ABS we have listed, but also note if any others are on as well. If using a scan tool, pull what codes are in the system and write them in the note column and circle which warning light is on.

Next is the Oil Change Sticker. Is it good (current), marginal (doesn’t have a sticker) or Now! (past due). This is the easiest item to check on the list and the most overlooked by the car owner and many shops. Very rarely does a customer not want you to change their oil if it needs it.

Performing the next inspection, Exterior Lights, requires a second set of eyes to check the brake lights. One person needs to hit the brake pedal and another set of eyes needs to see what is working properly. A technician can check the remainder of the lights with no other assistance.

The vehicles Wiper Condition can be checked two ways. Once during the test-drive and then by lifting the wiper blades to check for a blade which maybe torn. During the test drive you should turn on the wipers and see if they streak or make noise when operating.

Steering and Suspension can be done once the vehicle is in the air. You want to check for things such as broken sway bar links, CV axles with torn boots and possibly even ball joints, tie rod ends and other items.

Brakes should be measured in colors, which correspond with pad thickness. Green is good, Yellow is Ok, and Red means Now! We use two different tools to measure thickness. One is used when tires are on and the other with the tires off the vehicle. Both work very well. Brake pulsation should be noted during the test drive.

Tire Wear/Air Pressures are easily checked as you walk around the vehicle.

Belts and Hoses are mainly a visual inspection. In many cases a cracked belt or a hard and leaking hose is very apparent.

Exhaust issues for most shops are second nature and can be inspected while the vehicle is in the air.

Fuel Filters are tricky to inspect. Unless someone has written a date on it, they either look new or the look old.

Signs of Leaks and their location should be noted on the right in the notes section and should be rated as a Trace (looks moist), Seeping, or Pouring (oil or some other fluid is literally running a leaving a trail).

Testing Battery Condition is very simple. Your shop can use an inexpensive hand held tester to determine if a battery is good or bad. Also look for signs of corrosion and leaks.

Performance/Tune Up Needs should be really easy for most shops as you see a lot of vehicles whose owners think they have a transmission issue when in reality the may just have a bad coil or plug wires.

When inspecting Fluid Condition we are looking for color, condition and fuid level. Most shops already know the ins and outs of burnt fluids, but does your shop check for moisture content in Brake Fluid? Our shop uses an inexpensive tester to determine this and it only takes a few seconds. If the fluid has more than 3 percent moisture content, the brake fluid should be replaced.

After the technician has completed the inspection form and has completed the original customer concern diagnosis, we take the things we have found and transfer the items which need attention to the Service Estimate Form which we have on the other side of the Inspection page. Once completed the form is forwarded to the manager or service writer to make the customer aware of other needs their vehicle may have. But this is where it can get tricky for many shops.

Picking the Right Fight
By now you might be thinking your shop might not have the equipment or experience needed to offer all the services we are inspecting for. Not having a brake lathe or tire changer may mean you don’t push these services, but you still can pick and choose what items make sense for your shop. Services like bulb replacement, belts and hoses are no brainer. So are wiper blade replacement, oil changes and batteries.

In fact, you probably already have a local auto parts store calling on you that would love to stock you shop with fast moving items that will help you achieve your goal of adding sales. Many of these stores may also provide you with some of the testing equipment at no cost if you stock their products.

The good part about using an inspection form is you can identify customer needs and at the same time increase profitability without adding car counts to your business. In fact, we recently renamed the business Certified Express Lube and Auto Service to reflect who we are and what we can offer customers. These inspection forms work for my business and they will help you, too.