The differences in repair shops

SHOP TYPE...

Used Parts Based Operation - Work on differing makes or Saab exclusive. Volume large or medium

How they operate:
Profit is centered around the very lucrative sale of used parts removed from wrecks purchased by the shop at auctions and from individuals. Many times these shops price their labor hour charge artificially low to attract customers making up for the profit drop by the income from the sale of the used parts. Generally these shops will do repairs and services on a piece by piece basis rather then encompassing (such as services) Mechanical and electrical parts are purchased over the counter by "do-it-yourselfers", many times on a "I'll try this" basis, as well as sold to customers in their shop. Body parts are sold to body shops as substitution for new ones. Usually, dealing in volume is a key to these shops and any car is accepted for repairs.

ScandiaTek's Viewpoint:
I have a fundamental argument with the installation of used parts. The owner pays 100% of the normal labor plus generally 50% of the price of a new part for the used part. The shop usually only guarantees the part for 30 days. (if at all) Common sense will dictate the part will not last near the time of a new one so unless you're selling the car soon, its a financially loosing proposition. Especially with the typical long term ownership of a SAAB. These shops do have a value in the market but it's for the customer that's trying to get "that last mile" out of their Saab, or is looking for a cheaper part replacement for something like a non-wearing part like a lens or bumper. However, larger jobs, especially electrical, computer, transmission or engine repair, would be a greater financial gamble due to the short guaranties and predicted part life.

Another shortcoming of these shops can be caused from their own success. Size and volume take their toll in customer relations (see large shop comments below)

SHOP TYPE...

Low Price Marketed - Differing makes or Saab exclusive. Volume large or small

How they operate:
Generally these are young small shops that were more prolific in the pre-nineties. They price their work the lowest for a given market area in an effort to invest the least amount in marketing and customer relations and more easily get the most amount of work. These shops will generally cut corners on repairs in order to keep the short term costs down. Aftermarket and used parts purchased at junk yards are used.

ScandiaTek's Viewpoint:
They are usually quite busy, but, not having enough profit, they eventually suffer from poor work quality, high personnel turnover, and poor customer relations. They get the customers easily but rarely retain them for long. Sometimes, for a short time, these are good shops as the owners are usually long on technical abilities... but, they are also quit often short on business skills. The repair is many times indeed completed successfully, but below the shop owners cost. Eventually, low skilled help is employed out of necessity.

Because of the owners lack of business skills these shops are like teeter-totters.... many customers attracted by the low price coming in the front door and unhappy or short term owners fleeing out the back. Many such places are eventually finished off by the IRS for lack of tax payment. The immense cost of doing work on modern cars is also a factor in added pressure on them.

The financial ability to stand behind their work is not there, especially in the event of major work failure.

They usually can NOT do complex work involving greater skills or costly equipment for lack of both for they could not afford to keep up. This lower overhead is one aspect of their lower cost. The more expensive shops, having invested in both, are referred to by them for those needs. This creates a very unhappy situation where one shop gets the "gravy - or easy" work and the other is saddled with the customer relations problems created by having to do the other. Because of the pricing difference, the customer often thinks the more expensive shop is cheating them, taking advantage of their high tech repair needs.

SHOP TYPE...

Quality Oriented - Differing makes or Saab exclusive. Large to medium volume.

How they operate:
There are some shops that try very hard to give good service. They hire the best employees they can find and earnestly strive to do good work. They are run by owners that have grasped and apply good business survival skills. Enough car owners are able to afford their work. Their popularity grows and they take on all comers.

ScandiaTek's Viewpoint:
Eventually, they often grow to the point of volume where customer relations suffer. Because they take on every customer and sometimes every make, the shear numerical statistics take their toll. Wrong parts, mistakes, misdiagnosis, customer and employee relational problems, division of labor and the like - undermine their best attempts and their reputation suffers. The customer relations they once had when they were smaller dilutes as they grow.

SHOP TYPE...

Quality Oriented - Differing makes or Saab exclusive. Volume small.

How they operate:
One man shops... usually owned and operated by the same person, these shops can give nice direct service to a limited few.

ScandiaTek's Viewpoint:
It's pretty obvious that these shops have some REAL limitations. Scheduling is a real problem as well as the ability to do quick emergency work. The owner is constantly interrupted from mechanical work with phone and business duties so the delivery time suffers. When the owner/operator is gone for any reason the business comes to a halt. Quit often these may be located in places against zoning regulations. Those eventually get caught and shut down.

SHOP TYPE...
Dealership - Customer Focused
How they operate:
Mandated by contracts with the manufacturer, they generally all operate the same. The Dealer principle dictates the few variables of motivation to his/her staff. In service or customer focused businesses, the Dealership does its best to take care of its customers. Manufacturer assistance varies according to profits, marketing focus, and sales volumes.

ScandiaTek's Viewpoint:
While these Dealer types are very welcome as they create happier customers which is good for everyone, their success is limited once more by size and operating norms. Most Dealers pay their employees on systems that motivate speed and volume of work. They are usually large so work is divided amongst many employees which will invite mistakes. It is difficult to perform good customer relations due to the natural resistance caused by their size and shear customer volume.

They MUST take all customers and MUST grow to meet customer demand. Their good reputation brings outside warranty work that should have been done at the selling dealership. This causes the shop to jam up delaying their own customers and causing the manufacture to clamp down on marginal warranty approvals.

Even though everyone is instructed to concentrate on customer satisfaction, pay is usually based on speed and quantity of work. Work pressure soon becomes great enough that relations suffer.

Dealers are also victims of "new toy" syndrome. New car owners are especially sensitive to problems and mistakes during the early warranty period. Any communications slip or mechanical problem... even if its covered, is a negative to the relationship. Because of the complexity of the new modern cars, technical problems with design make take awhile to be resolved by the manufacturer further stressing the new relationship with the car owner.

Try as they do, success is limited.

SHOP TYPE...

Dealership - Profit Focused

How they operate:
SELL.... SELL.... SELL.... is the war cry. Discounts... coupons... VOLUME!! ...do what it takes. Unhappy?... too bad. Commission! Bonus! Flat rate pay! NEXT!

I don't think I need to say much more on this one....I remember it all too well, I used to run them!

ScandiaTek's Viewpoint:
Profit is a MUST for success....BUT it should be the RESULT of good business and not the sole motivator. Most people are weak in resistance to professionally misapplied sales techniques, and with profit as the motivator and ethical rules slackened, profit soars at the eventual cost of happy customers. The Dealer, understanding human behavior, applies deceptive sales techniques which continue to draw in customers. The lack of mechanical understanding on behalf of the car owner is taken advantage of and becomes a great source of profit. Not even the manufacturer escapes the scheme. Warranty pay from the manufacturer is also taken advantage of and all out war is declared.

Unscrupulous mechanics have been known to "earn?" two or even more times the actual hours applied to their work. These Dealers get congratulated for gross sales with one hand and smacked by the other for customer complaints.

(I am NOT referring to ANY local Dealers specifically but to a concept widely known to those in the industry...)
While these types can move a lot of iron... they ultimately do little good for anyone.

HOW SCANDIATEK DOES IT FOR YOU!
Quality work and customer orientation supported by applied motivations to stay that way!
Client size limitation and customer selection to keep close ties between work flow and customer relations.
Business size limitations that keep communication lines to their smallest chain but keep work type coverage to the best customer advantage.
Profit as a result of good business management, NOT from unrestrained focus otherwise.
Vehicle considerations to keep focused on the highest quality long term results and value to our customers.
Employee personality screening before technical skill consideration to include self governing behavior in favor of customer value. (Smart people without also having ethical behavior are worthless to everyone)
Salaried pay systems.. NOT FLAT RATE. So our people are rewarded for work quality, not quantity.
This was not easy to learn and took me many years to understand. No matter what level of variation of our operating system ScandiaTek will achieve in the future, these principles will prevail. When it's to your advantage, it's to our advantage too!