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Making large purchases like a new car Tracy to not repair shops have become one of the bright spots in this economy.
You know you see that's -- -- in -- -- I can't fix my on my eyes.
I got four left -- I don't know what to do with them you couldn't have scripted a better tees or transition if you will to our next -- -- joints right now Robert gross evidence you'd expect to observe.
Monro Muffler Brake.
Joins us what Michelle thanks -- and obviously in the net and can't get over it if you're playing on this whole thing where com.
Don't be alarmed by new cars.
They're keeping their cars a little bit longer they want to fix them up we certainly you know AutoZone has done very well some past mine employees and you're right along with that aren't.
Yeah I think again the average age of the car currently is ten years -- sane over the next two and a half years.
The average age is gonna expand to twelve years old I don't know how different think over repair work although the car gets.
The more repairs that are needed you couple that with the fact that people -- -- new vehicles the old.
-- used to be sixteen million new car sales a year for six years straight.
Two years ago was thirteen million new car sales and last year was ten point four.
So a lot of new cars are not coming into the system which means people are repairing their old cars.
And we've seen over the last couple years to that.
The deals to buy much better than the deals to lease I I least because I can fix the car so I know this.
Beats you you coming grew by 7% last year's same store sales still increasing he got sales in the third quarter of twenty on the -- 9%.
-- -- -- The -- comparable store sales are fabulous the last two years we -- on 7%.
Comparable store sales but the last nine years we've had positive comp store sales so.
We've been picking -- businesses people.
You you know I heard -- and you guys talking about value in trading down and people are trading down to lower priced and I think that's a permanent.
Shift if you think of the dealer charging you 12100 dollars for a brake job.
And the economy gets tougher so you say I'll try Monroe can do that same work for 600 dollars.
When things get really good you're not inclined to go back and say are and have more money help pay 12100 dollars for the next -- job this.
-- -- service was this is gonna take personal by the -- on -- -- and and RO four Monro Muffler Brake.
You're really benefiting from the dealer relationship with the customer and many other ways as well one of them is that we've -- dealerships close around the country they he -- farther yet to go farther to get your car service at a dealership.
That benefits you because you you've got what 780 stores in nineteen states he might be just around the corner.
These people yeah we have number one or number two market share and all our markets and that runs about five to 8% to tell you how fragmented the business -- but if a dealer -- close.
Typically the next closest one is -- miles away.
In the first case we are a need purchased not a one purchase so you don't want to do this anyways convenience.
Value are important to you and when your dealership closes.
You're not looking to drive thirty miles away you want someone close by an office.
Be within five minutes -- your home or work offer better alternative a lot of cases to a lot of customers which.
Is why you see the comparable store sales going up but more importantly.
Our traffic is running up 4% in a tough yeah economy.
So your competitors and Pep Boys.
Mining team would show my neck in my idea and how do you differentiate differentiate yourself well -- two years ago when things -- really tough in the marketplace we started focusing I'm value and for example we started offering an oil change and more.
Kept our oil change priced at twenty dollars.
You know because even with rising oil prices to get store traffic and well what we started doing in addition to that is a free for tire rotation.
To add value and make sure people are linking in their car -- free break inspection.
All part of the twenty dollar bill so people would come in it gives us an opportunity to make a new customer we're the most convenient anyways.
Build trust and prove to them.
When you're in -- high service slow trust business and 45%.
Of the customers biggest concern.
Is getting ripped off.
Manning gets a lot easier to show people that you can be trusted rather than advertised because people like me have heard those stories and believe them that -- -- -- -- an -- change and they -- like chocolate -- and instead of.
Well yeah I would I have -- you even though because before you got a parking lot of but they always did but so that point oh I think you do make the point Tracy.
People are very skeptical about auto mechanics and general so this is a critical time for you.
How are you as a seal make sure that that location.
In one state is doing just as well as your ideal location in this state.
As well as did its policies and procedures it's affect the world company operated stores as opposed to franchise operations.
So we have consistent procedures consistent -- plans.
And for example on that front our store managers pay is 80% salary.
And then the last 20% is tied into customer service and store profitability.
So really they're not -- to a large degree to do anything other than service -- customer well build trust with that customer.
Our turn over this past year is 10% below last year which is the lowest it's been since 1992.
Another you know -- difficult period so us being in the community with the people shopping.
Going you know in our store managers and road -- going to church.
They're not in it for the fast buck they're living with the people -- Serbian and they're they're more patient and trying to take early all the current ten seconds are you hiring.
Sure where they were hiring picking up guys from -- you know.
Dealers close as you get them from the dealers and for mothers when you win in on the marketplace it's easier to hire that's great and Robert thank you celebrate thank you guys appreciate it have a -- chairman and chief executive -- -- of a Monro Muffler Brake.
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