Miles Driven Across the U.S.

For the first time since 1942, when US driving records were first kept, we've seen the sharpest drop in miles being driven in one month. The Dept of Transportation said figures from March, 2008 show the steepest decrease in driving ever recorded. According to CNN and the Wall Street Journal, At a time when gas prices are at an all-time high, Americans have curtailed their driving at a historic rate.

Not surprisingly, Americans are not driving as much as they did a year ago as gas prices skyrocket.

Compared with March a year earlier, Americans drove an estimated 4.3 percent less -- that's 11 billion fewer miles, the DOT's Federal Highway Administration said Monday, calling it "the sharpest yearly drop for any month in FHWA history." Records have been kept since 1942.

According to AAA, for the first time since 2002, Americans said they were planning to drive less over the Memorial Day weekend than they did the year before.

Tracy and Adam Crews posted on iReport that their annual Memorial Day weekend has traditionally involved camping and fishing.

"Well, due to the continual rise in gas, we felt our only recourse was to nix the idea this year and stay home" in Jacksonville, Florida, they wrote.

Instead, the couple said they "decided to camp out in the backyard. We set the tent up, just finished installing our above ground pool, and cleaned up the grill. ... We have ourselves a campsite! It's been a blast!"

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Nakeisha Easterwood of Smyrna, Georgia, said with gas prices on the rise, she sometimes catches rides with friends, and doesn't drive into town more than once a day. "It's crazy," she said.

According to AAA, the national average price for a gallon of regular gas rose to a record $3.936. That compares with an average price per gallon of $3.23 last Memorial Day.

"With it being near $4 a gallon, you definitely have to drive slower and pick and choose when you're going to do it," said Steve Kahn of Roswell, Georgia, at a Memorial Day festival in Atlanta.

Some Americans have turned to public transportation. Ridership increased by 2.1 percent in 2007, in part because of rising gas prices, according to the American Public Transportation Association.

Americans took 10.3 billion trips on public transportation in 2007, the highest level in 50 years, the group said. Sounds like a good time to raise the bus fare.

The Energy Information Administration says gas consumption for the first three months of 2008 is estimated to be down about 0.6 percent from the same time period in 2007.
For the summer season, gas consumption is expected to be down 0.4 percent from last year.

Summer Travel Time - not this year?

Of course the price of gas is on everyone's thoughts and conversations this spring. Every day the cost of a barrel of oil goes up $1, $2, $3, or more. Crazy, crazy, crazy.

So what are people going to do this summer? Heading to the beach or going camping? Nearly 60% of Americans are cutting back their vacation plans because of gas prices, according to a survey by Discover Financial Services. This is not all bad news for the independent automotive repair service center. Instead of driving to Florida or North Carolina for vacation, Ohioans might just drive to Cedar Point for a 3 day weekend. That's a difference of 600-800 miles! Expect more of your customers to stick within a 200 mile radius for summer fun this year. Maybe they'll do a little less driving overall, but it is a different type of driving. And that vehicle will still need to be maintained.

In addition to fulfilling your customer's maintenance needs, now is a great time to help them find additional ways to save money when traveling. Develop a "vacation tips" newsletter to hand out when your customer picks up their vehicle.

Here's some websites you can use to help develop your newsletter:
AAA has a website that can calculate exactly how much you'll spend on gas. Just enter the destination and car model into the calculator at AAA. It's pretty cool. I just entered the information for my sedan and my husband's Windstar. If we drive the car on our planned vacation, it will cost us about $214. If we drive the van, it will cost us $251. Guess what? We'll be driving the van. But we'll have a cooler packed with sandwiches, snacks, and soft drinks - the 3 "s"s of family travel!

To help customers find inexpensive gas along the way, direct them to gasbuddy.com. Some GPS systems can help find cheap gas as well.

Other ways they can save while on vacation include - packing a cooler with drinks and snacks for while they're on the road. Sure beats paying $1.79 for a Pepsi at the Sunoco. Go out for lunch instead of dinner. Use coupons for special events and attractions. If staying in a city for a while, buy a book of passes for attractions or coupons for restaurants and hotels. Plan to visit museums on their free or reduced price day.

Be sure to include tips for getting better gas mileage in your newsletter. Some of these tips can lead to additional business for you. Simple things like proper tire inflation and a steady speed can improve mpg by several points.

Now is the time to get closer to your customer, become a valued adviser on all things automotive as well as their best source for top quality service.

Simple Device May Help Save Gas?

from CINCINNATI -- A simple device may help drivers improve their gas mileage.

A vaccuum gauge lets motorists pay greater attention to their acceleration and braking, allowing them to reduce the amount of gas they use in stop-and-go driving, our local NewsChannel 5 partner OHio News Network reported.

The gauge was popular on vehicles in the 1960s but is rarely installed today, mechanic Tom O'Shea said. The gauge is mounted onto the dashboard. Viewing the gauge reminds drivers to accelerate and break slowly, since that keeps the needle as steady as possible.

O'Shea said that by preventing sharp stops and starts, drivers can improve their gas mileage by 7 to 10 percent.

The gauges can be purchased at most automobile supply stores and cost about $20. Installation of the gauge is easy, O'Shea said.

AAA says the statewide average for regular is now a record $3.90. That's up a penny from Thursday, 52 cents higher than a month ago and almost 70 cents more than at this time last year.

The average price for diesel in Ohio also has reached another new high, at about $4.46 a gallon

The Power of Price

Most Tool and Equipment surveys that I have seen always ask the question of the technician or shop owner, “How important is price when you consider a purchase?” Answers usually include other comparison points, like quality, availability, warranty, convenience, selection, service, made in USA, and payment options. And the price factor usually comes after quality, availability and service. It is almost always the number 3 or 4 reason chosen by a professional. Number one and two generally flip between quality and availability, but in more recent years, the importance of availability is trending downward, and service is trending upward. Made in USA seems to have been left by the roadside somewhere. And, oddly enough, “relationship, integrity, connection with my supplier” is never one of the options.

So for some reason I was thinking about price today and wondering how important price really is when you consider a tool purchase for personal or shop use. I know mobile distributors stop by your shop on a regular basis to tell you and sell you the latest and greatest tools. And their leadership believes that service and quality is what drives your purchases first, then availability and warranty second. I know you have first and second-call jobbers for parts, and their leadership believes that quality and availability drives your purchases from them. And some of you may rely on a few dealerships, and their leadership believes that OEM brand and quality drives your purchase. Most of the time, the reason you buy from one source or another is the connection you have made with your supplier. At some point, he or she has proven they can help you do your job better, faster, easier, but not always by using a cheaper tool than you could buy from someone else.

So then I got to thinking about our newest tool and equipment distributor, the impersonal internet. And, yes, I know, the internet is not always impersonal. Sometimes you’re using websites that are extensions of tool suppliers you’ve used for years. But tell the truth, after you get a price from your main guy, don’t you sometimes find yourself surfing the web, looking for the best “deal”? The thought of how immediately we get information from the internet led me back to price, and why people buy. I believe that more and more, too many of us are relying on the net (no pun intended) impact to our wallet when we buy new tools and equipment. To me, this is a very short-term perspective, because there are so many other factors to consider when purchasing tools and equipment for professional use. In addition to the age-old factors of price, quality, service and availability, you should keep in mind the other factors that many manufacturers provide today, but that many internet providers are omitting. These are things like product training, product upgrades, warranty options, ease of return, credit availability, cataloging, and a long list of other services that we tend to take for granted, until they are no longer available. When you buy off the internet, many times, once you’ve entered your credit card number and received the product, your “relationship” is over. You buy it, you break it, you outta luck.

You see, I used to sell tools and equipment on quality first, the right-tool-for-the-right-job second, and price rarely. So the whole idea of looking for something cheap to get the job done goes against my professional “grain”.

Yet the power of the internet, combined with our general desire for inexpensive products, has provided us with an increasing number of choices when it comes to buying tools and equipment. As we all look to find something less expensive, it seems more and more that instead we are finding something “cheap”. And by cheap I mean inexpensive and frequently of inferior quality. It may look good, but who can say how well it will work or how long it will last? In addition to questionable quality, there may be a question of safety.

Many of these tools are manufactured overseas and are imported by both US and International companies. Some are good and some are not. Some will last a “lifetime” and some will last for one job, then be tossed aside because it breaks or is stripped or is unusable to some degree. And then I ask, what price did you pay for something that it is worth so little to you, that you would only use it once then throw it away? If you stake your livelihood on the tools you use, don’t you want to buy the best and keep them for a lifetime of use? It’s an investment in your future.

So back to the power of price and ultimately the power of the internet. I’m not saying that you can’t find bargains or great products on the internet. We all know you can find both. But, as our distribution models change, I would encourage you to know your suppliers – whoever they are, understand what it is you’re paying for, and keep quality at the top of your “must-have” list when buying tools and equipment.

After all, at the end of the day, what are you selling?

Here's one readers response to my commentary:

Dear Ms. Skove,

Your point of view on the power of price left out an important factor, namely actual supplier service (or knowledge). I live in a rural area and have offered a higher level of technical service on more makes of vehicle than perhaps any shop within 50 miles. When I contemplate updating my equipment or software, I always ask my traditional wagon jobbers about their offerings. In many cases, all they can do is show me a video or a picture of their equipment in use. This information I can get off a web site. What I really need is advice about the appropriateness of their product for my shop. This they can rarely offer, as I am usually the first on their route to inquire (and acquire). Second choice is a reasonable "road test". Leave the tool with me for a week or two so I can try it in real world conditions. If it's good, I'll buy it. If not, I won't. This is rarely an option as they rarely stock the more advanced equipment.

OTC=OTC. Bosch=Bosch. Only the price and service differ when the tool is the same. My wagon jobbers and parts stores will rarely have the lowest prices. They also rarely stock what I need as I've been wrenching for about 35 years, and already have the basics. If they offer either the benefit of experience from other shops (not just the company propaganda), or the chance to try before I buy, I will always give the helpful salesman first shot at the sale (without regard for price differential). REALLY! I always ask the tool men when they first enter my shop, "What's new and exciting that I can't live without?" They rarely have an answer ready, even though they know I always ask the same question. But occasionally one will have a "winner". And I always reward him with the sale. If a salesman brings to my attention a must-have product, he is truly a salesman, and deserves the sale. But if I have to do all the research and the jobber still has to order my selection, he is merely an order taker, and should have to compete with other order takers (i.e.. The Internet).

I buy all my parts and supplies (except dealer parts not available locally) in town to support the local economy. But when the same scan tool is hundreds of dollars cheaper on line, and the local boys offer no added value, why not buy on line?

As for import tools being of questionable quality, I recently replaced a Ford Crown Victoria steering coupler with a Ford supplied part made in Lichtenstein, and an Astro Van blower resistor with a Chevy supplied part made in Slovenia! Chicago Cutlery is now made in China. Even American companies are no longer American, and Bosch never was. In general, I find quality control is left up to the end user on most products (not just automotive) these days, and promises to "fix that problem with the next software release" are rarely kept.

Sincerely,
Jake Pressel, ASE CMAT, L1, X1, owner
Seventh Street Garage
Calumet, Michigan (Find our village on a map and you'll see what I mean by rural.)

Random Recession Thoughts on Our Biz

These are just a few observations I made after discussing business conditions with several industry experts last month. These are the result of their in-depth discussions with more than 500 shop owners:

Are we in a Profitability Crisis? By "we" I mean, are independent repair shops in short-term and possibly long-term trouble? Well, let's look at the facts. Every year, it appears there are more and more shops just struggling to stay afloat. Most shops are in business 25 - 27 years. These shops might like to get bigger and more profitable and generate more business, but they struggle to stay alive. They are working harder and making less. Think about it - broken cars are disappearing. Vehicle reliability continues to grow, as everything lasts longer and works better.

Here are the challenges we see for the Independent Shop Owner:

Profitable maintenance work is going to the most aggressive marketers. Many shop owners are working on cars more and more, in an effort to control costs and profits. What is happening instead is they are not focusing on growing their business. Too many shops have little or no equity and operate on a hand-to-mouth basis. Speaking with a major supplier of diagnosis and repair information for the shop, they said the NUMBER ONE reason they lose customers is: That customer goes out of business.

Review the list below. Do any of these challenges apply to you?

• Low or uncontrolled margins, due to a lack of focus on profitable business, or perhaps focusing on the wrong part of your business
• Getting out of the habit of selling scheduled or preventive maintenance - we call this "upselling". Are you doing it enough?
• Ineffective, mis-directed or non-existent marketing
• Poor customer follow-up
• Low customer visit frequency
• Inneffective access to customer/vehicle and their repair hisotry
• Multi-shop customers - these are the customers who go to a repair shop for repairs, but to their dealership for maintenance or a tire shop for tires. (this is your opportunity to get them to your shop with a Maintenance Schedule of your own, based on the manufacturer's guidelines)
• Bargain shopper customer
• Poor customer retention
• A future challenge - getting and keeping qualified professional technicians, service writers and counter people

Don't let this happen to you. Manage your business.

With the price of gas continuing to rise, vehicle owners are looking for ways to get better fuel economy and make their vehicles last longer. This is the right time for you to look for opportunities to increase your scheduled maintenance business. Work to make the "repair event" (a breakdown or loss) less of a factor in your shop. Maintenance work can be profitable. It should not be left to the car dealerships.

Understand that sometimes your opportunity for growth is coming from a highly competitive segment. Increasingly we are seeing dealers and the large chains marketing and promoting their services to YOUR customer. Quick lubes and tire chains, previously single-market type of outlets, are now looking to expand their business into mechanical service.

New technologies are being built on top of the old technologies that you are familiar with, leading to pyramid systems. Transmission and drivetrain, chassis (active damper system), restraint (dual state/dual threshold front airbags), comfort (air filtration), brakes and crash avoidance are just some of the areas in transition. Keep up with the changes.

In short, in order to be profitable and continue to grow you must find the tools that will help you improve your business and your performance. Then purchase them and put them to work. Join a professional network to learn best practices from your competitors and peers. Stay current with changing technologies. Make sure you and your staff have access to the latest vehicle information. You will be glad you did.