3 minute read
CASE STUDY
from Ratchet+Wrench - February 2022
by EndeavorBusinessMedia-VehicleRepairGroup
LEVERAGE LOANERS
Use your fleet to your advantage
BY TESS OWINGS
At less than 1,000 square feet with just two bays, you may be surprised to hear that Premier Auto Repair in Worcester, Mass., sees 210 cars per month and has an annual revenue of $1.3 million, but it’s true. The tiny powerhouse, owned by John Cayer, has made the most out of its limited space and finds ways to compete with larger shops and dealerships in the area. One of the largest contributors to the shop’s success? Its loaner fleet.
PREMIER AUTO REPAIR
Operator: John Cayer Location: Worcester, Mass. Size: 950 square feet Staff Size: 4
Average Monthly Car Count: 210
Annual Revenue: $1.3 million
THE BACKSTORY
At roughly 950 square feet, the tiny shop is often overlooked by customers. Because of this, Cayer has had to find ways to retain his customers once they do come in. One way to do this is by delivering on a quality repair with the least amount of inconvenience for the customer.
THE PROBLEM
Cayer says the two main objections he sees from customers about getting additional work done to their vehicles is that they either don’t have the time or the money. Cayer offers third party financing, which helps with cost, but he had to figure out a way to address the time concern.
“The second most common objection I hear is that, ‘I need my car to do stuff,’” Cayer says.
THE SOLUTION
When customers say that they don’t have the time or that they can’t leave their vehicles at the shop because they need it to get around, Cayer says, “I can put you in a car right now,” which disarms that objection.
Premier Auto Repair is a Shop Fix Academy member and, inspired by Aaron Stokes and the importance he places on loaner vehicles, Cayer purchased his first two in June 2021. His loaner fleet has now grown to seven vehicles in total.
Being able to offer customers a loaner vehicle has not only worked in his favor by allowing him to sell more work by taking the time objection off the table, it’s also allowed him to shuffle work around. Customers who are in the loaner vehicles aren’t in as big of a rush to get their vehicles back, he explains. If, for example, there’s a bigger job that will take four hours, Cayer is able to push it back if that customer is in a loaner car. He, of course, lets the customer know that it may take a little longer, but more often than not, he or she is more than fine with it as long as they have a vehicle to use.
To stand out and attract customers, the loaners are advertised on the website, in all of the shop’s direct mailers and mentioned to customers when they come in.
Loaner vehicles are not offered for simple services, such as oil changes, unless there’s a special request. Every customer that has a substantial repair is offered one and if, for whatever reason there is not one available, they are offered a rideshare service or can schedule the repair based on when a loaner vehicle will be available.
THE AFTERMATH
Before the loaners, the average ticket at the shop was $283—it is now at $525, which Cayer believes has a lot to do with the fleet. Car count is also up 60 cars from the previous year. Although it may seem expensive upfront, Cayer’s extra business has more than recouped the costs and he says that third-party warranty companies will often reimburse a certain amount per day for loaners, you just need to ask.
THE TAKEWAY
Cayer now echoes Stokes’ sentiment about loaner fleets.
“Any shop owners that are hesitant— have them give me a call,” he says.
Loaner vehicles have increased his car count, his ability to serve his customers, and his service advisor’s sales. In his words, “there’s no reason not to have them.”