Thursday, June 24, 2010
Open door policy with employees
You’ll be further ahead if you can grasp the concept of “job” and remember that not many jobs are easy… that’s why they’re branded “job.” Striving to succeed, we can never disregard changes we’ll need to employ. Customer demands and industry regulations force practices to be constantly refined. For most employees, though, change is difficult. They entered the job through a list of expectations that were acceptable to them at the time. As changes are enforced, our expectations for their job description and performance often change, too. While some employees may accept this, it’s not always the case.
Their comfort zone has been disturbed and that, to them, doesn’t always say, “Good job, but I want you to change.” Often, they’re hearing, “I want you to change” and missed the “good job” part. We must somehow be able to transfer information that will satisfy a clear explanation to them that includes actually saying the words, “Good job.” It gives two opportunities to settle their disrupted comfort zone. Employees are more motivated to participate in change when they truly feel they’re making a positive contribution based as much on “whom” they are as “what” they do. The “who” substantiates a position in your employ but the “what” substantiates only the job, something they were looking for when they came to work for you.
We’re all capable of “thinking” a problem into existence and employees are no different. When we fail to communicate correctly in “approach, words and attitude,” they see a problem. They can dwell on a situation negatively in their mind until, at last, it’s true and suddenly they’re justified in what they’ve been thinking all along! Anger in our employees is not always our fault, but, nonetheless, the frustration they can feel from their perception alone can exist. For the sake of success, it’s imperative that we open up those lines of communication.
W e must remember, too, that we’re not the only ones with problems. With today’s staggering economy, personal debt is higher than ever. The pressure is on at home and at work, so employees get angry more often and stay that way longer. People want to place blame for their problems.
Good communication with your employees can offer them understanding and support and actually aid in minimizing their dilemmas. It can create a happier employee and, therefore, one who is more productive (happier plus more productive usually equals longer employment with you, too).
So, how do you widen the door of your “open-door policy”? There are four key requirements. First, talk to your coworkers about the problems in the business that includes their position. Second, open the conversation by announcing that you’ll be looking for their input (advanced invitations for them to participate will quickly capture their attention and motivate them do just that). Third, enter the conversation open-minded, anxious to have them share their ideas for solutions.
Fourth, have patience when listening. Give a strong ear to their comments and feedback, because very often the solution is closer than you know. Employees who feel they are being heard will produce more and be happier to do so. So, widen that open door.
Good Sales?
America’s true entrepreneurs today display through every type of advertisement an eagerness to meet the challenge to be the best at what they do. Once prospects accept your invitation to try your business, the results will ultimately be justified through these means: applying four very basic yet critical strategies in the four rules of business. Your ultimate goal must always target a customer encounter that will leave both you and your customer beaming with gratitude for the experience that just took place. You should never have to ask yourself, “What just happened with this sale? It didn’t feel like a ‘good sale.’” Regardless of how strongly you believe you’re doing it right all the time, revisit the four rules of business regularly. Post them somewhere in a private area to do a self-check and be honest with yourself in your relationship with each of the strategies.
The first of these rules is: Customer satisfaction before profit. This is the most important rule because it strengthens your odds to make every good customer a repeat customer. Satisfied customers come back and satisfied customers tell others about you. Satisfied customers remember they were truly satisfied with how you handled their problem, and satisfied customers are who we want filling up our waiting rooms. As I’ve continued to say for so many years, “Without money nothing happens, and without good customer service nothing happens for very long.”
The second rule is: You must know who the boss is in your business. Most of us decided to challenge the rest of the business world with our talent and open our business based on our ability to beat the daily grind of taking orders from someone else. Finally and at last, we opened the doors of our own business and lo and behold we found ourselves with a whole new boss: the customer! Now, we have lots of bosses! Do we like our new bosses any better than the old one? Most of us would answer “yes,” but at great sacrifice. Customers are tough to deal with regardless of industry. We’re customers ourselves so of course we know that, which makes owning the responsibility to provide satisfaction a goal we must meet!
The third rule is: Know what’s in the job for you. You invested in both your life today and your future tomorrow when you opened your business. Take care not to give the store away-your life and future depend on it! You must make the profit you need while building a good customer base at the same time. You must not leave yourself out of the loop trying to satisfy all but yourself. While the customer is the most important component in your business, their satisfaction can never be at the cost of sacrificing your own dreams!
The fourth rule is: Profit before work. This is the most abused rule! The average repair shop in America today records a substantial amount of debt in accounts payable that they’re behind on in payments compounded by additional personal money invested through credit card debt just to sustain business. Add this to regular operating expenses each month and the light at the end of the tunnel begins to get real dim! If you see your name on this list of statistics and you’re tired of being last in line for a paycheck, I have some words of encouragement that should help: You can conquer this situation, but only when you begin to get paid for everything you do and at the right price!
To see if you’re minding all four rules, consider the following statements and answer “yes” or “no”:
I have more complaints than satisfied customers
I see many of my customers at other repair shops and don’t know why.
I didn’t make the money I thought I would with opening my own business.
My customers tell me how to repair their car and don’t want to pay me to diagnose the problem.
I’m afraid my employees will quit me if I don’t do what they want.
I always say “yes,” even when I mean “no.”
I quote prices to customers before I research the labor and call for parts prices.
I don’t want people saying my prices are too high.
If you answered “yes” to six or more, your road’s end may be closer than you think and it’s time to change direction now! I am available to talk with you by calling me toll free at 1-888-338-7296.
Monday, January 12, 2009
SALES TODAY AND THE PHONE
The phone is our connection to what makes business work everyday, all day long. Just consider the days when the phone doesn’t ring. On occasion, it can be a good thing for catching up but can never happen for very long. Our phone must ring; we must talk to customers, old and new; we must communicate with the outside world; we must consider it key to a certain degree of our success or fail!
With business today so overwhelmed and high-paced, it’s not uncommon to spend untold dollars on advertising to make the phone ring yet, when it does, be too busy to make it work to a great advantage. Too frequently, we’re too busy to give the enthusiasm and professionalism the phone encounter deserves, something we’ve paid so dearly for. That first conversation with our prospect will be our best chance to bring him or her in and give us opportunity to secure the next good customer.
Everyday is all about business and the phone has too great an influence on its failure or success to disregard its importance. It influences having too little work just as strongly as it does on having too much, and both circumstances are stressful - too few customers for too long makes everyone nervous while too many can equal a decrease in the quality we provide. Because each call is unpredictable and each caller, unique, our first exchange with him or her must be marked with our genuine intentions to meet business goals. Even our seasoned customers expect a good phone experience with us and it all begins with believing in the full opportunity the phone, itself, provides and our responsibility to that opportunity.
Phone skills and you … Rate yourself in the following phone skills assessment: '1 to 10' (worst to best):
__I already know how to use the phone and don’t need training
__I always answer the phone in a professional manner
__Even having a bad day doesn’t affect my phone skills
__When I greet someone on the phone, I’m always smiling
__My customers always recognize my voice because I answer it the same way each time
__I could live without the phone in my life
__Callers have commented on the good mood I’m in that day
__When I have a bad day, everyone has a bad day
__I convert most of the calls I receive
__When my caller is not responding to me the way I’d like, I offer a better deal
__I identify my business name every time I answer the phone
__I’m not sure of the best way to answer the phone
__I know the rules for answering my phone and follow them
__I don't do well on the phone so I don't answer unless it’s necessary
If your position requires phone skills, then having good ones will be measured by both, your knowledge and performance, on the phone. For us, business maintenance and growth start with the ability to convert prospects from phone to shop. Following some basic rules will help make conquering the challenge easier and more profitable:
#1 Qualify The Prospect : determine if they’re your kind of customer. This takes patience as you listen. Most Service Writers don't take the time to ask the appropriate questions to make a decision about the prospect. Listening carefully to your caller will answer most of your questions about them and their situation.
# 2) Ask Questions That Convert. Almost all customers are uneducated about their car and technical repairs. Service Writers who know answers to questions that customers can't answer will always convert calls easier.
# 3) Don't Quote Prices Over The Phone. People who insist on knowing the price before they bring the car in are probably not willing to pay for what they get. Quote black and white prices only.
#4 Lead the caller in the direction YOU want to go; know the ‘Time Vs Money’ rules. Some callers will waste more of your time and money than if you were to just give them the lowest price and make the repair. Remember, every 5 minutes of your phone time spent with an unqualified customer can cost you as much as $500.
#5 It’s common for customers to choose a shop where their first contact was a friendly, helpful, knowledgeable voice - that should be you! The best leading statement you can use with a caller is:
“Would you like to make an appointment? I’d be happy to take a look”
Asking your prospects to make an appointment with you is key to qualifying true potential customers
Converting phone calls will always be a job but doesn’t have to be a chore. If you have proper training in professional sales, then use it well every time the phone rings. If you’d like to further your skills, there is training available to provide that.
Tuesday, December 16, 2008
True Flat Rate ....How True is Yours?
The performance of any business largely relies on maintaining balance in a combination of 4 key components: skillful staff, adequate work environment and equipment, efficient resources in vendors and effective financial management. Having any one of these four out of alignment is tampering with the potential our business has to meet expectations.
Although financial management was listed last, it was the first on the list in opening the doors of your business and mine, too. Some may argue that skillful staff (beginning with their own expertise) was the original key, but, money was the resource that funded the tools to attain that expertise. Vision always precedes financial investment and financial investment always precedes expertise. Basically, we haven't experienced too many adventures in our past that didn't somehow, at some point, involve money.
Something I share with colleagues and students regularly, having learned it years ago in considering my customers and the goals I had for them and me, ''Without money, nothing happens and without customer satisfaction, nothing happens for very long.'' Attaining both is so crucial to the success of any business that I continue to emphasize the importance of both priorities - we must have money and we must have customers.
Several times each year, in a variety of locations, I present a training course that keys to analyzing the profit structure of the independent repair shop. Shop owners are given individual attention during the course as we work through the financial structure of their business. It gives each an opportunity to define their expectations for their business and explore its potential based on the current performance of key components. Plugging certain information about the shop's performance into formulas that help owners calculate their alignment within its present structure will reveal any that need special attention to improve. Of course, step two is the other half of our ultimate goal for this course for these shops, deciding the strategies for achieving that improvement. For each shop owner there, the areas needing attention will different.
One common misconception always confirmed at the start of this course is the belief shared by the majority attending that 'shop rate equals true flat rate'. As owners plug real information into key formulas, the greatest percentage of them continue to be enlightened by the difference in what they've believed the business performance has been and what it truly is. That's usually the bad news. The good news comes when they see how do-able the needed changes are for them to make a difference in how their business responds to their efforts.
If your business continues to fall short of profiting enough to meet the demands of expense, you may want to take the time needed to make these same simple calculations about it. I have the worksheets available to assist you by calling my office, 888/338-7296.
Do you need to revisit your business structure and explore the areas that appear to be burdening its profitability? To help you decide, consider the following statements and mark each True or False.
T F I accomplished all that I set out to last year.
T F My business performed the way I needed it to these past 12 months.
T F The business provided all that was needed to each shop member.
T F I did not struggle to pay the bills again.
T F I did not lose good employees to others willing to provide benefits that I could not.
T F I did not lose money on misdiagnosis from lack of updated equipment and training.
T F The climb to pull ahead does not seem to be constantly uphill no matter what changes I make.
T F I was not forced to put needed savings and investments on hold another year.
As you ponder solutions to the challenge of your business performing to your expectations, remind yourself of this fact: just as life's experiences help define the things that we cannot count on, they also educate us about the things that we can. Unfortunately, many of the things that we learn we can count on are truths that simply confirm that some challenges will always be exactly that! For those truths, we must learn to accept them as such and work to convert a seemingly negative impact on our business to one that is positive, instead. For instance, several truths that experience teaches us is how we can depend on the vehicles we service becoming more complex but customers not understanding that complexity; how costs will always increase year after year to produce the same work; how finding and retaining good employees will always consume a fair amount of our energy and always for the sake of our customers and business goals; how the level of stress in owning a business may fluctuate bad to not-so-bad but will never go away completely (and the list goes on!).
This seems like the appropriate spot to pose the most important question: Are you fully prepared to consider every change that you learn your business needs to see or would you rather try to stay comfortable with the idea of skipping some of the changes needed to see if that will do? Remember, we talked about this in the beginning, how it's up to you, and here's the defining question.
To some, the word, CHANGE, congers up an ugly picture but, for the auto repair industry, the reality is this: the one thing that has remained constant is change and so must we. If fact, this industry changes at a rate so rapid that we hardly have time to catch up! There's not time enough to be paralyzed with the idea of 'wish I could make more money at this, I know I’m worth it. I’m dedicated, compassionate, and really want everyone to win, me included'. We have only enough time to understand how imperative it is to have good, working knowledge of our business and its operating costs and acting on that knowledge.
Today, equally as important as the technical side of business is the educated understanding of the money side, too. No guessing or assuming or conveniently hovering just above or below your competitor's price, hoping to make enough money to pay your own bills. When it comes to meeting needs fully, the basis for our increase must always begin with an accurate minimum and you may be surprised at what you need every month just to keep the doors open.
I recommend that you calculate your shop rate at least 4 times a year or any time you make a major purchase. Calculating correctly can be tedious but never really difficult, and always be honest and accurate with your numbers or risk not making the money you need and deserve! Again, I will be glad to help you with the formula for determining true Flat Rate by simply calling me at 1-888-338-72966. Please call to schedule a phone consultation.
Full details about ESI’s Professional Business Development training and support programs can be visited at www.esiseminars.com, dedicated to teaching specific strategies that assist professionals and their workstaff in achieving maximum business growth. Renowned instructors and industry consultants, Maylan Newton, Ray Kunz and Ray Warner, are available to bring courses to anywhere in the nation and can be reached by calling 1-888-338-7296; FAX 805-526-3254, E-Mail maylan@esiseminars.com
Friday, December 5, 2008
Just as important as acknowledging that 'all men are created equal' is acknowledging that all employees are not, or, at least, not where skills and job performance are concerned. As job success relies largely upon the success of technology and equipment provided by people seeking to customize for the individual yet diversify for the majority, ‘accomplishing’ can be a test more often than a task. Anyone who works with equipment where the word 'leads' actually refers to that which connects them to the ability to do the job knows both, the good and bad of the meaning of the term 'hi-tech'. Whether perched in front of a sewing machine or a computer monitor, today’s employee is either, directly or indirectly plugged into hi-tech maneuvering somehow. It’s no wonder the frustration for both employers and job seekers trying to find the perfect fit.
It’s been said that employees are like street cars..... if one doesn’t work out, just wait a few minutes and another will be along shortly. I say that good employees ARE the streetcars carrying the rest of the employees who are mis-matched for the job.
Choosing and placing the right person for the job will always be a great challenge but can and must be done. If your ‘search in progress’ has you butting your head against the wall, don’t give up so easy. Refine your focus to easier separate 'qualified' from ‘not’.
Remember to always have minimum production goals and expectations for every position. Be sure to explain their detail to your applicant BEFORE you do the hiring. This helps eliminate disappointments from poor performance that you might otherwise have.
RULES FOR HIRING A GOOD EMPLOYEE
RULE #1 Don’t allow desperation to force you to hire the first 'warm body off the street'. Desperation must always give way to the greater priority, finding good help!
Yes, with costs in training and paying for mistakes that can happen with new personnel, we’d all like to score the best person for the job the first time around. But, those chances are slim. Just like building quality into anything, it takes time to build a good, workable team. Rely on your patience and take the time needed to make right choices. Hits and misses are a natural step in the process but be patient-your team will come together.
RULE #2 You should always be recruiting qualified employees, always looking to replace the weakest performer in your business. Remember, the right person comes along rarely, in fact, usually when you’re not looking. Don’t let the right employee leave.
RULE #3 Keep the interview process in balance, neither rushed nor lengthy. Review the application thoughtfully, considering several issues:
A) Was the app filled out completely and, if information is missing, why?
B) Did anyone witness prospective employee filling out the application or was it ready in advance, just submitted? It’s important that the applicant be able to read and write and this is one way of knowing.
C) Are there gaps in their employment history and, if so, what is the explanation?
RULE #4 Don’t be afraid to want to know what you need to know about the person. Keep in mind that priority is to employ someone qualified to help maintain and grow your business to the fulfillment of your goals.
A) Because particular questions cannot be asked of neither, applicant nor former employee, have a list of questions written down so that you don’t miss anything as you stay within the limits of the law. Don’t rely on memory.
B) Listen more than talk. Remember that the idea of the interview process is not to tell the applicant what you know, but to find out what he or she knows including their priorities, goals and expectations of your business. This information will explain a lot more than what you may realize.
C) Arrange for qualified applicants to have lunch with the rest of the team, without owner or manager. Make sure team members know what can be discussed and what can't.
RULE #5 Don’t hire people who don’t have good job references. Make a list of reasonable minimums acceptable in references based on qualifications the job needs and don’t allow desperation to adjust it.
Always verify references both, job-related and personal. I am often amazed with the information I receive about the person in doing this so don’t miss this step.
Remember, there’s a difference between not having good job references and having bad ones. Of course, you wouldn’t hire someone with a bad reference, but, would you bring someone aboard who doesn’t have good ones? If you can’t get good references from former work sources, you only fool yourself hiring the person anyway.
Someone who appears to have had problems on every former job will, most likely, be a problem for you, too. Chances for a good choice are better when at least 75% of their references are favorable.
Rule #6 Ask about work habits
According to the standards your business dictates and what the applicant’s position requires, define good work habits. Ask about the applicant’s work habits with former employers.
Pay attention to the applicants' body language, what they are wearing and the condition of the vehicle they drive. This will give you insight to their self esteem and professionalism.
Rule #7 Be prepared to provide adequate training
It’s human nature to believe a little better of ourselves than what’s true. Be prepared to benefit only about 60% of your new employee’s claims of abilities and ready to provide training to bring them up to 100%.
Ask how he or she feels about further training. You should have a minimum number of training hours recommended and arrangements available for each position. Training is not an expense, but an asset to your business.
Rule #8 never believe that any one particular person can save your life
Although one employee can certainly impact your chances for success, never, can one, alone, provide it. Counting on someone else to do just that is never wise. You must choose each employee based on both, the idea and the environment of 'team'.
Sharing responsibility of interview and choice with co-workers should be an asset to the tasks.
GOOD LUCK
ESi has a great hiring resource available in our Automotive Business Survival Kit.
Thursday, December 4, 2008
Interesting Article on Advertising
A client sent me this link and I thought it had an important message, please take a minute to follow this link and read the article written by Robert Kiyosaki, author of the Rich Dad series of books.
I don't feel you have to have the biggest ad, but you need to put your name in front of your clients and potential clients consistently. Top of mind awareness is crucial. This is not the time to be lowering or eliminating your advertising budget. Be on the offense not defense when planning you advertising strategy
Please plan on joining us in January for a brand new advertising and marketing seminar. Call for details.
As always please call if we can be of any assistance to you.
Thank you to John @ Orinda Motors for finding and sending this to me.
Have a great holiday season.
Maylan
Please follow this link:
http://www.entrepreneur.com/magazine/entrepreneur/2008/november/198022.html
Wednesday, November 26, 2008
Communication is the key to successful shop managment
Our expectations are not met because we do a poor job of explaining what we want. For any shop to be profitable we need open honest communication from all parties involved. The technicians need to feel comfortable in speaking their minds on any subject. The managers & owners have to take this information as business and not take it personally. The number of employees that will not speak honestly to their employers is astounding. When ask why the employees will not talk with the boss most feel that they are not listen to or their ideas taken seriously.
I feel their are four basic reason most people will not speak up and voice their opinion or ideas.
1. The fear of being wrong. Most of our employees have a low self worth and for years have been told they are not smart enough or talented enough to be successful. Most of our employee have great ideas but feel we will not be receptive to their ideas.
2. The fear of ridicule . if the employees never express their ideas no one can ever belittle them. It is human nature for everyone to desire acceptance from our peers.
3. The fear of being found incompetent. By expressing their thoughts and ideas some employees are afraid that they will display the limit of their knowledge. Many employees project a higher level of knowledge than they really posses.
4. The fear of confrontation. If the employees speaks up and the owner or manager disagrees with the statement. The manager or owner then belittles the employee or raise there voice to over power the employees by intimidation.
So many times our idea of effective communication is to yell or intimidate our employees into our way of doing things. Most cases they haven’t met our exceptions because we haven’t communicated our expectations.
We have address some of the ways we don’t communicate well let’s discuss ways to communicate better. One of the best ways to establish good communication is to hold regular scheduled meetings. Some shops have a meeting every week others BI-weekly some monthly. The main thing is to meet on a regular basis. This meeting has to be a non confrontation type. Open honest communication will improve the relationship between you and your employees. Write down all the main points of each meeting and then report on the outcome or decisions made at the beginning of the next meeting. Be sure to give consideration to all ideas and comments. Have the employees research and present their findings for any equipment’s or suppliers they may want or need.
Any rules, regulations or policies you want your employees to follow must be in writing. Any verbal instructions you give an employee the most effective way to be sure that the employee understands is to ask the employee to repeat your instructions in their own words back to you. Remember that your instructions must complete and concise. Do not rush the instructions. When possible give the instruction in writing. Be sure to include the time frame to complete the task and the source of any additional information they might need.
Be sure to provide POSITIVE reinforcement during the task.
Remember that as the leader of the business YOU must accept partial responsibility for any problem in the shop mostly due to poor communication.
