By Ed
Sunkin, Editor of Underhood
Service
In this
nationwide economic slump, we are hearing that technicians and counter people
are seeing increases in traffic and parts sales as cost-conscious consumers
keep aging cars on the road.
And, in
these tough economic times, many shops are finding that the age-old mantra
aimed at their customers of the importance of preventive maintenance is now
paying off.
One shop
that is seeing the benefits of the preventive maintenance message is Stock’s
Underhood Specialists Inc., in Belleville, Ill. Its shop owner (and Underhood
Service editorial advisory board member) Paul Stock said he is using this
economic slowdown to market and advertise to customers who are weary about
purchasing a new vehicle.
“We
discuss the benefits of keeping their present vehicle at the counter in fact
we always have done that with our customers,” Stock said. “We have been
preaching long-term preventive maintenance for more than 24 years and have run
a preventive maintenance club to sell those benefits.”
Stock
said many people don’t realize that today’s vehicles can go “forever” if
properly maintained. However, with the poor economy and rising unemployment
issues, consumers may be easier to educate these days.
“We keep
a picture of an odometer on our counter that shows over 500,000 miles from a
Ford Windstar, no less,” Stock said. “I tell them that my personal vehicle has
more than 230,000 miles on it. They need to know how we can benefit by the same
care that we recommend it’s basically (we) practice what we preach.”
However,
other shops are seeing some motorists scrimping on routine maintenance to save
money, such as pushing back regular oil changes and other recommended fluid
replacement intervals. At one Santa Rosa, Calif., import shop, maintenance
orders are down about 20 percent from the last year, according to the shop’s
service director in a recent Santa Rosa Press Democrat article.
That
mindset can backfire on the customer the service director reported that major
vehicle repairs have increased significantly at the shop.
So, we
are seeing how some big-ticket repairs could be a result of financially
squeezed car owners putting off routine maintenance. But which of these trends
will continue with today’s vehicle owner following recommended service
intervals, or less emphasis on preventive maintenance?
For Nate
Smith of Optimal Auto Care in Santa Cruz, Calif., it may not matter. Smith said
the good news is that the automotive repair business is generally
recession-resistant. “Although people may choose to postpone repairs or
maintenance, they are still much less likely to purchase a new car, and that
has a very positive impact on the aftermarket,” Smith said.
He
explained this recession is different from the one we faced in 2001-’02, where
back then, he had many customers purchase new cars when the financing went to 0
percent.
“That
really hurt our business since we work on imports that all have four-year
warranties.”
“Given
the sudden deflation of the U.S. economy, that is not going to happen this
time. So, we have a lot of customers who are going to keep the old car running
and that’s overall a very positive condition for the aftermarket,” he said.
Throughout
the year, we will keep a close eye on the nation’s economic conditions and how
it relates to the service repair industry. If you would like to comment on some
of the conditions affecting your shop or report on business practices you have
implemented, send me an email at esunkin@babcox.com and I will forward you a
short repair market questionnaire addressing the topics we will cover in future
issues.
This
article was originally published in the January 2009 issue of Underhood
Service.