Thursday, August 19, 2010

I need business startup advice. Am i making a bad decision?

I am considering opening an auto repair shop within throwing distance of NTB and Fast Tire. Is this a bad move? I need business startup advice. Am i making a bad decision?
Setting up shop next door to the big well know brand is not as bad as you think.. think about it, they are spending bucket loads of money on advertising, bringing people 'past' your doorstep. Think of your competitors as providing the berly, you just need to hook the customers on their way up the stream. Work hard on making a really great store presence and reap the rewards of their advertising budgets. mwahahaha.I need business startup advice. Am i making a bad decision?
LIke the other responders said, you can take advantage of the competition's advertising to bring people by your door. The ';No waiting'; sign is excellent also. ';Second opinions'; is very attractive as well. But the real key is to be honest and reliable. The #1 problem people deal with in car repair is finding someone they consider to be ';honest';. Everyone knows the dealerships and franchises are expensive. There is more than enough work if you take care of your clients and they feel good when they leave. Don't try to sell them something they don't need. Advise them if they can get a few more months out of a part - these are tough economic times and people need a lot of scotch tape and rubber bands. Happy customers are your best advertising. BUT be sure to note in writing if you make a safety recommendation and they decline - make them SIGN it. Don't want to lose it all because someone lies and says you said the tire was ok, when you actually told them it needed to be replaced. But again, the point is being honest and reliable - it will take a few months to build a clientelle - ask for referrals and offer a discount or free oil change for a referral. In no time you will be swamped!
In several books about Starbucks, small coffee shop owners say that their sales increased when a Starbucks opened in their vicinity. It is because Starbucks has the brand and marketing power that brings people to their store. When people come to Starbucks, they then see the other coffee shops and become enticed to try these other coffee shops. So it's a win-win situation.





You could hope that the same Starbucks effect will hold true for your auto repair shop.





Having other repair shops help people notice that there is another repair shop in the area -- yours.





Now the question is: How will you entice them to go to your shop instead of the others? You need to:





- have some unique value proposition that differentiates your shop from the others, perhaps added service or more emphasis on shorter waiting time for customers


- offer excellent customer service
As said, could be a good move. Spend more than you would like on huge signage, its way cheaper than advertising. People should see your sign before they see the big guy. And a letter board that can post specials will help too. You can mimic their newspaper ads and beat them on price or service, or just poke fun at them. ';Our mechanics are better looking than theirs.'; LOL You might even get some newspaper or TV coverage if you are really creative. When slow, put up sign ';no waiting';. Whatever it takes.

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