THE RELATIONSHIP IS IMPORTANT AGAIN

Shops are putting more value back into the relationship aspect when they consider which jobber gets their first call when in need of parts, according to the Jobber News Annual Shop Survey.

Three surveys ago, 65 per cent of automotive service providers choose 'relationship' as an important factor for their first call jobber. Last year, that number dipped to 54 per cent, fourth overall. Now, it's back up to 62 per cent and the secondmost-important factor.

Why would relationships swing so wildly from one year to the next? This puzzled me, too, until I saw one other significant change in the survey year-over-year: Availability/ inventory. This choice has topped the list in the last several surveys. But after sitting in the low-to-mid 90 per cent range, it fell to 85 per cent this year. Still the clear-cut top choice but not as high as it used to be.

And the last few years have probably played a role in those swings, explaining the movement in priorities.

Last year, parts were hard to come by. Product flew off the shelves in warehouses. Shops were calling around to locate what they needed and taking whatever they could get their hands on.

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"During the pandemic, we sold the heck out everything — we sold all the premiums because when the installer called, he didn't care. 'Just give me what you got to get it fixed,' [they would say]," said John Washbish, president and chief executive officer of the Aftermarket Auto Parts Alliance, last year during an episode of Curbside Chat, the video podcast series from the Automotive Industries Association of Canada.

So availability became the name of the game. It would also indicate why other factors like price and online ordering capabilities outranked relationship as well last year. With everything going up in price, shops were looking for cost control for their customers, while ordering online would be faster than calling however many stores it took to find what they needed.

But that was last year. As inflation has settled in, cost increases became expected and accepted by the customer. The supply chain crunch has eased, leading to reduced inventory concerns. So the significance of these issues as deciding factors for shops became less so.

And back to its familiar spot came relationships.

Several comments in the survey noted that price matters even less when the relationship is strong with their jobber. If they can trust you for the products, their decision on whom to call is easier, noted one respondent. Another pointed out that they were behind on their payments for a time. The jobber stuck with them and now, the shop is sticking with that jobber. Another said they feel their jobber takes good care of them, so their relationship isn't based on price.

President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer

Corporate Office

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Shops value a strong relationship with their jobber. As the other concerns subside and normalize, the winning jobber store will be the one that makes their shop customers feel most valued.

Adam

Malik

Managing Editor, Jobber News

LETTERS What’s on your mind?

We want to hear from you about anything you read in Jobber News magazine. Send your email to adam@turnkey.media

WHY THE AFTERMARKET IS ‘IN TROUBLE’ AS RETIREMENTS LOOM

As much as you hate to see it, it’s somewhat inevitable. From an owner’s perspective, the red tape and costs of doing business seem to grow exponentially every year, staffing is a constant battle, and cars are more of a pain in the rear end to work on with every new model year. And how can we reasonably expect to find suitable buyers when the up-andcoming generation can’t even buy houses? Besides that, most of us are barely hanging on by a bootstring in regards to finding reliable (subjective) staff, let alone savvy enough to take on the business and a mortgage.

Geoff, reader

HERE’S HOW DEALERS ARE ATTRACTING YOUR CUSTOMERS

Dealerships are a good source of business for aftermarket service because of poor customer service. Just try to talk with someone at a dealership. If independent service providers maintain their level of customer service they will come out ahead and not have much to worry about. It is how we market ourselves that will keep our businesses successful.

Bob Ward,The Auto Guys

How Far Behind The Industry Is With Labour Rate

The best thing the industry could do to help their rates is lobby the government so that car repairs have a certain amount of tax credit received so the average joe operator can spend more on good repairs of cars. In B.C., they also need to drop the full taxation of used cars as that would drive up residual values as the government will no longer be taking their 12% tax that actually should be increased value of the car.

Ross Kiljan, Lordco Auto Parts

We most certainly need to increase the rates that we charge. Our costs to operate a facility with power, gas, phone, taxes, insurances, building rents/mortgage payments, snow clearing and lot clean ups, garbage disposal costs, waste oil disposal costs … I could keep going as there are many more costs. The current labour rates barely cover these costs, never mind paying any wages and being able to put a little away for the rainy day.

Jim Wark, Edge Heavy Duty & Fleet Services

In general, the trades, be it construction, plumbing, electrical, automotive service, are having a tough time attracting new blood from youth. However, the automotive service technician trade is at the bottom of theses trades. In general, the kids entering as plumbers and electricians will have a higher entry wage, will often have benefits and possibly pensions. They will also likely have a more certain future pay structure. The same can not be said for the youth entering our automotive trade. It is a hodge-podge depending on where they end up.

Kurt Hillebrand, Young Street Garage

PROPERLY UTILIZING YOUR TECHS’ SKILLS

This article inadvertently makes an excellent case against the flat rate system. The reason for the first come first serve ticket off the board is to prevent squabbling over who gets what job. It’s counter-productive for exactly the reasons listed here.

Geoff, reader

I totally agree with Geoff. There is no other trade that has technicians working hours for free because of especially difficult electronic problems. The scenario in the above mentioned case under a flat rate system would be, the high tech person would receive a penalty resulting in a lower pay cheque than the non high tech person who got to do the non high tech work. That would reinforce my past sayings that the more you know, the less you make. Then people wonder why knowledgeable technicians pull up stakes and move somewhere else.

Barry Makins, Makins Automotive

HERE’S HOW MANY CANADIANS WOULD PERFORM THEIR OWN AUTO REPAIR

I find this interesting. At a time when vehicles are very complicated, uneducated owners would attempt any repairs. We are starting to see vehicles that owners tried repairs themselves, come in on the hook. Quite often the repairs cost more than the service would have cost. Google garage is not what people think it is and that gets them into trouble. You have to know what you are doing on your vehicle because you are responsible for your actions. Let the professionals work on your vehicle

Bob Ward, The Auto Guys

Changing How You Charge For Labour

I agree with everything stated. Reality is much different. Too many shops are not charging enough thus undermining our industry. We need to charge labour properly especially when tech wages are high. Even dealers are not charging properly. How do shops that don’t charge properly stay in business? Only the strong will survive in today’s market.

Bob Ward, The Auto Guys