Are you having trouble figuring out who the target market is for your auto repair shop?
It can be tough to define your ideal customer, but it’s an essential part of having a successful business. If you do not know who your target market is, you will have a hard time attracting them to your shop.
After all not all car owners need an auto repair shop while others might visit multiple times a year.
To target the right market for your business, you need to understand who is most likely to use your services.
In this article, we will discuss the target market for auto repair shops and review what customers look for in an auto repair shop before taking their car there.
Who is the Target Market for Auto Repair Shops?
To best understand the target market for auto repair shops we need to understand who needs them in the first place. As we saw in the introduction, not all car owners need to take their car to an auto repair shop.
Many will take it straight to the dealer for repairs, especially if the car is still under warranty.
Others may only choose specific auto repair shops that are approved by their insurance company.
So to truly understand the target market for auto repair shops, we need to divide the market into segments and analyze each segment separately.
Here are the main customer segments of this market:
- People who own a car but cannot repair it themselves
- People who own old cars
- People who own cars that are not under warranty
- People who have cars that tend to break down often
- People who own cars with minimal insurance coverage
- Businesses that have company cars
Let’s look at each of the segments more closely.
1. People who own a car but cannot repair it themselves
Many people are capable of doing small repairs on their cars, but when it comes to major repairs they need to take them to an auto shop.
These people usually don’t have the time or the skills to do the repair themselves. For this target market, it is important that the auto shop offers a wide range of services so they can fix any problem their car might have.
And for major problems that require extensive repairs or a change or parts
2. People who own old cars
Old cars are more likely to need repairs because they have been used for a longer period of time.
Many people who own old cars prefer to hang on to them because they have sentimental value or because they do not see the point of spending money on a new one.
These customers prefer to take their car to an auto repair shop that specializes in repairing old cars. They usually look for an auto repair shop that is affordable and does a good job.
For this target market, it is important that the auto shop has experience in repairing old cars and that they have a good reputation.
3. People who own cars that are not under warranty
Cars that are not under warranty usually need to be taken to an auto repair shop more often than cars that are under warranty. There are two reasons for this.
First, when a car is under warranty, owners will often take it back to the dealer who will repair the car based on the warranty agreement.
Second, once the warranty is finished the owner will typically have to pay out of pocket. Even with insurance, there is almost always some expense that the owner has to bear.
For this target market for auto repair shops, it is important that the auto shop is affordable and offers a wide range of services.
4. People who have cars that tend to break down often
Naturally, people who own cars that tend to break down often need to take them in for repairs more frequently.
There are a number of reasons why a car might break down often. It could be because it is an old car, or it could be that the car was not made by a reputable manufacturer.
Whatever the reason, people who own these types of cars need to find an auto repair shop that is affordable and trustworthy.
5. People who own cars with minimal insurance coverage
Different car insurance policies cover different things. For example, some insurance policies will cover the cost of repairs if the car is stolen or damaged in an accident.
Other insurance policies will only cover the cost of repairs if the damage is caused by something that is specifically listed in the policy.
Most insurance policies have a deductible and the owner is responsible for paying this amount before the insurance company will pay for any repairs.
There is also the risk of premiums going up if the car is involved in an accident. In such a case the owner might prefer to take the car to an auto repair shop and skip the insurance company altogether.
6. Businesses that have company cars
Companies that have company cars need to take them in for repairs just like any other car owner.
This segment also includes car dealerships that sometimes have old cars for sale which need to be fixed up. And it includes car rental companies that also have cars that need repairs and maintenance.
But there are a few things that make this target market different than the consumer market.
First, a company can have many cars in its fleet. All those cars will need repairs and maintenance from time to time and at different times.
Secondly, they will have cars from different manufacturers and different models. This means they will need different skill sets to be maintained and repaired.
Finally, companies can negotiate bulk discounts and extended warranty agreements with auto repair shops, something that individual consumers cannot do.
So to serve this segment of the target market for auto repair shops, the auto shop must have a wide range of skills and experience. They should also be able to offer discounts for bulk repairs.
Conclusion
The target market for auto repair shops includes not just people who cannot repair their cars by themselves but other segments as well.
People who own old cars also need to take them to auto repair shops as only certain shops may have the parts that they need.
Likewise, people who own cars that are not under warranty would also need auto repair shops to keep costs under control. The same is true with people who have cars that tend to break down often.
People who own cars with minimal insurance coverage may go directly to an auto repair shop and skip the insurance company altogether if they know that their insurance policy does not cover the work or if they feel their premiums will go up.
And finally, businesses that have company cars also need to maintain these cars, and a long-term, volume contract with an auto repair shop is sometimes the best deal to be had.