28 GEARS July 2007

This article is an excerpt from ATRA’s newest management seminar called Playing to Win.

You won’t want to miss this seminar when it comes to your area, and in the meantime you can get started using the ideas in this and future articles. You’ll learn how you can cash in on the mon-eymaking and cost-cutting opportuni-ties that are hiding in your business.

In my last two articles I discussed the concept of cross-promotions. We’re all familiar with the idea of cross-pro-moting… we just called it outside sales. For years, most transmission shops have worked cooperatively with auto repair shops that don’t do transmission work. We simply established a program for them to refer transmission work to us, and we reciprocated in some fashion, and in most cases we actually paid them a referral commission for sending us the business.

Well, most of us are now faced with the reality that most general repair shops are installing remanufactured units. We might still occasionally get a referral, but they’re keeping a lot of the work they used to send our way.

Before I go into my “suggestion of the month,” let’s briefly consider some of the reasons the outside sales referral concept worked:1. The general repair transmission

shops would send their custom-ers to us because they had plenty of other work to keep them busy and profitable.

2. The general repair shops couldn’t or didn’t want to rebuild trans-missions and didn’t have an affordable and reliable alterna-tive supply of rebuilt units.

3. The general repair shops usu-ally got first crack at diagnosing the problem because they had a relationship built on years of experience and trust with their customers.

4. The general repair shops had a strong enough level of customer trust that, when they recom-mended our shop, the customer took their advice.

5. The general repair shops got something in return for sending the business to us:• Referral commissions.• Reciprocal referrals back to

them.• Special favors.• Confidence that we would

treat their customersfairly.

Today these circumstances have changed dramatically, but great cross-promotional opportunities still exist. Let’s look at the 4 basic elements of a good cross-promotion:

1. It involves 2 or more businesses cooperating on some level.

2. Each participating business derives a benefit.

3. There’s some aspect of cost or revenue sharing.

4. Each participating business is non-competing.

With all this in mind, I’m going to suggest that you consider a cross-promotion with one of the few remain-ing automotive service providers that doesn’t compete with you for rebuilds and doesn’t install transmissions: the

quick lubes in your area. This cross-promotion will solve one of the quick lube’s biggest concerns and you’ll get first crack at any major repairs they find, they cause, or that show up after they perform a fluid change.

I’m suggesting that you guarantee their work. That’s right; I’m suggesting that you guarantee the transmissions that the quick lubes service. I know you’re probably thinking, “Good old Thom has finally flipped his wig.” But before you judge me on this, consider the situation, and consider whether it meets the 4 elements of a good cross-promotion.

• Your program will help solve the quick lube’s biggest concern with doing transmission fluid changes: that after they service a transmission, it fails, they get blamed, and they have to pay for a rebuild.

• Your program will actually help them get more of their service customers to come back for annual services year after year.

• Your program will provide them with an honest, third-party expert to render an opinion in those situations when the quick lube is accused of causing a problem with poor materials or workman-ship.

• Your program will build greater value into the services because they’ll include a written service warranty that covers the trans-mission until the next scheduled service.

• Your program will free the quick lube to sell and profit from ser-

You Want Me to You Want Me to Do What?Do What?

by Thom Tschetter

PLAYING TO WIN

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GEARS July 2007 29

vices on higher mileage vehicles and vehicles it might have other-wise passed up due to fluid condi-tion.

I think you’d agree that if you offered these benefits to a quick lube, it’d have to be interested in at least considering your offer.

You’re probably wondering what’s in this for you, right? Well here’s the scoop. You provide the quick lube with a Warranty Certificate that states if the transmission develops a problem of any kind before its next scheduled mainte-nance service, the customer is to take his car to your shop to have the necessary repairs performed, and that 100% of what they paid to the quick lube for the fluid change service will be applied to the cost of needed repairs.

Here are the mutual benefits of this program.

1. The customer gets a Warranty Certificate that explains the pur-pose and limitations of a fluid change as well as instructions directing them to your shop if a problem presents itself prior to the next scheduled service. This pro-tects the customer and the quick lube while adding to the perceive value of the service.

2. The Warranty Certificate clarifies the limits of the quick lube’s war-ranty and what happens if a prob-lem shows up after the service is performed. This limits the quick lube’s exposure to claims while still addressing the customers’ needs. This will also provide the quick lube with the protection of having some control over where the customer goes in situations that might involve complaints over workmanship or parts.

3. The Warranty Certificate also recommends that the customer should return to the quick lube for service in 1 year or 20,000 miles, whichever occurs first. This builds future sales for the quick lube.

4. The quick lube profits from more services because it can now ser-vice transmissions it might other-wise have passed up; plus it might even boost its profit by increasing the price of its service because of the warranty.

5. Your shop gets leads for what will most likely be major jobs — some on work the quick lube finds prior to performing the services; some on units they accidentally dam-age; and some that develop prob-lems before the next scheduled service.

Your cost is printing up some Warranty Certificates for the quick lube and giving a discount equal to the price the customer paid for the service. I rec-ommend you don’t charge this back to the quick lube, but you might work out some basis of sharing the amount of the discount.

If you have questions about this program or would like a sample copy of a Warranty Certificate, send me an email or call me. My email is thom@atra.com and my phone is 480-883-6404.

In upcoming articles and manage-ment seminars we’ll guide you on a trea-sure seeking journey leading you to new ways to boost your sales with increased lead flow, improved customer retention, and unique promotional ideas. We’ll also show you how to boost your profits with greater production capacity, and we’ll show you how you can cash in by cut-ting costs on things like Yellow Pages, income tax, payroll tax, property tax, life and health insurance, workers comp, building lease, facilities expenses, fluids, shop supplies and more.

Thom Tschetter is a nationally acclaimed business speaker, manage-ment trainer, certified AMI instructor, and the host of a Phoenix based radio show. You can catch his show on the internet at www.1100KFNX.com on Wednesday evenings currently from 7 to 8 Arizona Time. Check the station’s web site for the most up-to-date time schedule.

Thom reminds us that much of the success we enjoy comes from things we’ve learned from others. We encour-age you to help by sharing your own suc-cesses, challenges and personal stories. Thom will turn them into articles that are sure to be learning experiences for everyone. If you want to keep it confi-dential, we’ll honor that request.

Mail your contributions to Thom Tschetter c/o ATRA, 2400 Latigo Avenue, Oxnard, CA 93030. My telephone num-ber is 480-883-6404; my email is thom@atra.com or send a fax to 888-274-3787. If you use email or send a fax, please include the words “Management Info” in the subject line. I look forward to hear-ing from you.

I know you’re probably thinking, “Good old Thom has finally

flipped his wig.” But...

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