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Automotive Guide Lost Revenues in Auto Industry and Un-Maintained Vehicles

By: Lance Winslow
Automotive Guide

They say that the auto aftermarket industry grew at 3.7% in 2002. That 214 million cars are on the road, That 40% of those cars are over 10 years old.

Source: http://www.aftermarket.org

The Automotive Week/green sheet shows 77 billion in un-used annual maintenance. Wal-Mart will do 1 billion in oil changes and with their latest program we figure 2 billion in car washes as they are establishing their own brand of car washes along side their Super Wal-Mart gas card fill-up stations. Well that sure sounds great but that still leaves 74 Billion annually on the table.

In the latest survey during Car Care Aware program they found that 21% of all cars needed wiper blades. We have discussed wiper blades on this site before and we have all read articles in NOLN; National Oil and Lube News about this important add-on profit center. At the 2003 SEMA show and APEX Show in Las Vegas we saw many wiper blade wholesalers, manufacturers and knock offs, some stolen counterfeit parts issues and PTO problems. (the Department of Commerce estimated that it is a 12 Billion Dollar problem already doubling every year and that America could put 210,000 people back to work if we could stop it -- Ouch !!!).

Back to the subject the Car Care Aware program to enlighten consumers also found that 46% of all cars needed washer fluid. That 38% were over 5500 miles since last oil change, 25% were low on power steering fluid, 15% low on coolant, 10% were low on brake fluid...Stop... Why is this happening? Could it be due to consumer confidence in the industry? That the consumer is tapped out? That the consumer buys a new car every 3.3 years on average? Maybe, but what about the 40%, which drives a car 10 years old or older, me included? What is their problem with not getting services done? After all if they have an old car which runs okay and they are fond of it, obviously it pays to keep it in working order and without the high insurance payments or car payments that the average consumer forks over each and every month shouldn't they be in to see you more often? Yes. The survey went on to show that 19% of the cars needed belts one or more, 16% had dirty air filters many quite disgusting. 12% had hoses ready to pop, and in the survey, which you can read online at; http://www.carcare.org, over 90% of the vehicles failed in two or more categories? What does this say? It says the consumer does not understand that simply putting the gas in and an oil change when ever they get around to it next year is not enough.

It is not safe, not smart and potentially damaging the automobile permanently. But it also tells us that the consumer desires other things with their dollar, which they vote with more? Like what? Like an extra night at the movies, filling up their Starbucks card, a new Plasma TV on credit, cable TV, additional minutes on their cell phone, new shoes, nicer car meaning higher payments, etc. Then it is the industries fault for allowing the consumer to neglect their cars. It is the industries fault for failing to put customers at ease, developing report, making them confident in our abilities.

Why is the industry failing? Consumers point to the price point and cost, they go in for a $19.99 oil change and then come out with a healthy whopping bill for $150.00 they were not expecting and were angry about? If they were angry then someone did not explain the full impact of the issues, which were serviced? Someone over charged them, sold them something they did not need or in the case of a woman, many women claim they treated me like an imbecile? Did your employees do this? It really makes them mad. The industry needs to wake up and think about the image they portray.

Consumers remember those 60 Minute shows of behind the scenes dirty deeds of unscrupulous operators. I hate to tell you but I too sometimes think ill of the rest of you out there. And I am in the business. The industry can do a much better job. In the car wash industry less than 12% of the customers are regular weekly or bi-weekly customers. That is way too low, they let their cars get disgusting and this hurts the paint. We have done studies and can get the repeats up to over 40% by treating the customers with respect, explaining the services properly and babying their cars. That car represents in many cases the second largest investment they will ever make in their entire life, that car is an extension of self in our country. The great love of the American Automobile is well known in our society. It is time that the industry got with the program. We are. Service the customer, or we will.

"Doing your best is not enough, unless you are the best." My prediction is that there will be 980 new quick lubes in the US in 2004, will you have sufficient lines and volumes in order to justify being one or even afford another? Don't ask me, ask the customer if they are happy, they understand the importance of regular service and if they love you enough to refer their friends.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

Automotive Guide Tag : Auto Business Lost Revenue Unmaintained Cars

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