Showpower seminar urges transmission rebuilders to increase warranties, add repair services

            St. Louis--Most business progression is evolutionary rather than revolutionary. In the aftermarket, those that adapt remain viable; those that don't fade away. Today, automakers are producing better-built transmissions, reducing the need for frequent overhauls, a service that has fed independent transmission reubilders for many years. This has forced many specialists to adapt and add services, said Terry Greenhut at Showpower, a recent undercar trade show in St. Louis. He delved into the topic during his seminar "Selling New Services" at America's Center on March 23. "We know there are less transmission overhauls than there used to be," Greenhut said. "Our industry has changed quite dramatically. A shop doing five to seven units a week is doing well." Competition from production remanufacturers and automakers has amplified the situation for independent transmission rebuilders, Greenhut said.  Many automakers have extended their powertrain warranties in an effort to sell more cars and replacement units, he said, which is nothing more than a marketing ploy. "If you want to compete with them, why not compete with the warranty," he said. "You don't have to lowball price to get a customer."             Industry studies have revealed that most people keep a car only another year after a major repair, Greenhut said. Don't be afraid of an extended warranty, he added.   Repair and maintenance services "Get used to the fact that you're going to have to work on all parts of the car," Greenhut said. "A lot of transmission shops think that general repair shops are not making a lot of money, but they're doing extremely well. "The difference is that they have to deal with more customers," he said, pointing out that general repair customers are usually on a 60-90 day cycle of returning for service. Many transmission shops are quick to send their customers elsewhere when additional repair or maintenance services are requested, he said. "You want to be the only call they make," Greenhut said. "Don't refer them to others, even if it's for a windshield." People typically spend $1,000 a year on vehicle maintenance and service, he said, adding that transmission shop owners should give themselves a shot at making that money the customer represents.             Greenhut recommended that transmission shops add services such as brake-fluid flushes, power-steering flushes, fuel-injection service, and air-conditioning service.