ADAS as a Profit Center
June 16, 2020—Equipment. Training. Staff. ADAS is a huge investment and will only work if you’re able to turn a profit by doing it.
Jack Perea, owner of Superior Replacement in Riverside, Calif., and Kirk Holland, owner of Gladney Automotive Solutions in College Station, Texas and co-chair of NASTF’s service technology team, have both been able to create an additional profit center through performing ADAS calibrations, which they’ve been able to do by creating solid relationships within the market around them and delivering quality work in an efficient amount of time. Here are three tips for marketing your new venture.
Tip No. 1: Sell yourself as different.
Most of the businesses that offer ADAS calibrations are either entirely mobile or are dealerships. By being different, you can set your business apart and attract partners that aren’t happy with current offerings. This is exactly what Perea did.
“Most of our competitors are 100 percent mobile,” he says. “Now, with our facility and still offering mobile, it took us to a new level.”
Another opportunity lies with dealerships. Many dealerships take longer, and don’t deliver the quality of service that an independent shop can offer, which Perea uses when he markets his shop.
“The body shops are about getting cars done quickly and properly,” Perea says. “We can get it to our facility and turn it around that day or the next day—we can cut it [time] in half from the dealership.”
Tip No. 2: Take advantage of existing relationships.
Both Perea and Holland had a solid jumping off point, as they both had worked with body shops in their area in the past and had created a solid reputation for themselves. This allowed them to have a built-in customer base when they began doing ADAS.
“It was kind of a smooth transition because we were already known for electrical issues and problem solving,” Perea says of building up his customer base.
Once he decided he was all-in, all he did was go to his accounts and let them know that he had the equipment and would now be doing ADAS work and then expressed that he would like the opportunity the next time they needed it done. Once the work was sent, it was up to him to prove he deserved that work and keep it.
Tip No. 3: Earn trust and business.
Getting one job is great, but in order to create a profit center, you need referrals and more jobs coming in constantly, which means you have to handle each job like it could be your last.
One way that Perea does this is through constant communication. He prides himself on a quick turn-around, if however, he needs a new target or is running behind, he lets the account now and offers them the option to send it to the dealership instead. He also offers vehicle pickup and dropoff, which is an extra that many in the area appreciate.