Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Tue May 20, 2008 7:08 pm Post subject: Costly Fallacies I - Is That Really So?
Will Rogers once wrote, “It’s not the things a man doesn’t know that hurts him so much, it’s the things he knows that ain’t so.” I find there is huge wisdom in those words, particularly in regard to the auto repair trade. I feel the trade is dominated by fallacies, so widely accepted as to not even be questioned. Much like the fallacy that the world was flat went unquestioned for centuries. I also believe, like the flat-world fallacy, the auto repair fallacies effectively hold a great many people back.
I realize that I may gore a few sacred oxen with this series of post. I also feel it is vitally important to open the windows and shed some light on things that I feel have held this trade back for far too long. I will gladly debate any topic and invite discussion, both for and against my thoughts. I also invite others to add to this list. Let the games begin!
Fallacy one: Business is different where I’m from.
While personalities and customs may vary from shop to shop, one side of town to another, States and regions, business principles DO NOT. Sound business principles consistently applied, will bring success over time as long as there is a market. This is not to say there are not bad locations.
Clearly being out of the way is not as good as being in a better traveled area. It means as long as a market exist the same sound business principles will bring whatever success is possible and this does not change because of area. McDonald’s is successful in Tokyo for the same reasons they are successful in Toledo. The language may be different, but the principles of success remain the same.
Locating or remaining in an area with out a market for our services is not a factor of geography. It is a factor of poor management, failure to see opportunity or the lack of it. Unless an auto repair shop chooses to very specifically specialize or is located in an area with very few vehicles this is unlikely. I feel this will rarely be the case in the US, Canada or most developed nations. These countries have a fairly wide distribution of automobiles and thus a market for repair.
Some markets are larger than others, some more affluent than others but sound business principles apply. In every market there are problems and in every market there are opportunities. If the business is properly managed, there will be no problem that is not also shared by competitors. A shrinking market is a shrinking market to competitors as well.
A properly run business, that designs its services to match the needs of the a market will capture the business that is available. This normally involves demonstrating to the market why the business can better fulfil their needs than the competitors. Trying to locate a market without competitors is foolish. Rather a business must demonstrate why they are the better choice to clients.
Businesses can be found, that have demonstrated success over a long period of time, in almost every locality. In the same localities, businesses can be found that have failed and performed very poorly. Where opportunity for easy success exist, competition will expand and quickly capitalize the opportunity, until it no longer exist. Business is the same everywhere, it is tough and the most fit survive, over time.
There are tons of business out there, selling average quality service but charging above average prices. They are not dishonest, just average businesses that offer few, if any, benefits to their customers that makes them above average in quality given for the prices charged.
Yet they wonder why business is 'slow.' We hear it all the time, "Everybody else is slow too, it is the economy."
Baloney. Everybody that is slow is making the exact same mistakes all the other slow businesses are.
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Mon May 26, 2008 11:50 am Post subject:
Bud wrote:
There are tons of business out there, selling average quality service but charging above average prices. They are not dishonest, just average businesses that offer few, if any, benefits to their customers that makes them above average in quality given for the prices charged.
Yet they wonder why business is 'slow.' We hear it all the time, "Everybody else is slow too, it is the economy."
Baloney. Everybody that is slow is making the exact same mistakes all the other slow businesses are.
Hi Bud,
This is a great insight. Everyone else being slow does not pay the bills. A recession in my area will not keep the doors open. Demonstrating superior value to the client's other options and getting that message out brings success. I don't see being the best of a group of failing businesses as desirable.
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Mon May 26, 2008 11:52 am Post subject:
jbrenn77 wrote:
I noticed that I was beginning to think that way. It takes constant reminding of onesself that the biz owner is the one responsible for EVERYTHING!
Hi Jason,
That is a GREAT thought!! Far too many people fail to realize that management is responsible for success, regardless of the environment. Thanks Jason, I think everyone here can benefit from your comment.
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