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Leading U.S. Automotive Service and Repair Chain

CHALLENGE: The Company was recognized as an Automotive Repair Industry leader in brand image and customer satisfaction. Unfortunately, the chain had grown increasingly unprofitable. This was primarily as a result of a poor pricing model, overstaffing, lack of margin integrity and expense controls.

Additionally, there was a lack of understanding of their retail consumers' purchase behaviors and motivations which influenced their financial model.

METHODOLOGY: We completely restructure their chart of accounts financial strategy through implementation of a redesigned pricing model, a site by site staffing analysis/adjustments, consistent margin standards, cost of goods analysis/adjustments and implementation of expense controls.

Further, we conducted a series of online interviews, virtual focus groups, on-site consumer audits, and face-to-face interviews with customers past and present, as well as non-customers. Additionally, we interviewed retail site managers, service writers, and technicians.

RESULT: We provided the client with a standardized financial model that was applied across the entire 140 store chain.

Further, we implemented a new retail pricing and customer-first strategy, that returned the client to profitability, driven by an emphasis on delivering premier service at a fair price and margin. As a result of the insights we uncovered, it was clear that consumers were most concerned about the quality of service and repairing their car right the first time and less sensitive about pricing. We conducted 10 regional town hall meetings to assist the client in delivering the new strategy to all site leadership/employees and provided evidence from our insights into the true customer motivations.



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