Making a Difference

If you want to examine the big changes sweeping through the automotive service industry, Midas is a good place to start

Midas Australia CEO Tim Hickey is working very hard with his team to gain and, in some cases, restore respect amongst car care centres. ?Midas is relentlessly determined to never rip a customer off,? Hickey declares. ?We intend to always provide outstanding workmanship and to operate in a transparent way.?
?It is not always achieved for every customer, every day across the country,? he adds, ?but we must stay focused on achieving our goal.? Hickey believes that this low consumer confidence extends beyond the automotive repair industry, and involves most forms of consumer spending. Apprehension about spending has created an intense fear of the ?hidden? costs of car servicing. Hickey sees this as promoting intense competition and margin pressure in the already highly fragmented, mature market place. ?Customers will continue to demonstrate minimal loyalty to service outlets and demand much greater transparency and honesty in their car service experience,? he explains.

Midas is doing much more than just pointing out the problems. The company has developed a five-step ?Midas Service Promise? to support its ?know where you stand? mantra. This promise involves telling clients in plain English what their car needs and showing them why their service is needed before a Midas service centre can start any work. Midas also provides an up-front quote in writing for all parts, labour and service for each car. The final part of the process includes showing the customer what was done to the vehicle and showing them any old parts. All the work is backed by the Midas national network guarantee.
The company is tying this kind of assurance to attractive pricing. During a time of low consumer confidence and operating in a value-driven market, Hickey understands that the standard car service must offer the greatest product mix. Its $139 Complete Car service is competitively-priced and represents great value. This approach is targeted at the company?s prime customer demographic, 35-55 year drivers who are married and have children. ?It has the added benefit of providing peace of mind in terms of the family car?s safety because of the national guarantee,? explains Hickey.



THE ROAD BACK
Midas Australia has gone through some tough times previously, including a spell in receivership, but it?s evident that it has scoped out the situation well, and thoroughly planned a road to full recovery. The strategies that have been implemented have led to Midas ?enjoying a profitable trend?, says Hickey. However the last Christmas and New Year period delivered softer results before becoming more robust in late January and February, well ahead of the prior year. ?Same stores sales in the year to date is growing at a positive five per cent and very pleasingly, all of that is customer growth,? Hickey adds. ?January is typically the strongest month for servicing cars, although this year we were heavily impacted by the widespread flooding.?
The company has also experienced an increase in its online bookings but it is still a small part of the business. ?I am sure more and more customers will move towards the convenience of booking their car in for a service online and it remains an important new frontier,? explains Hickey.
Some aspects of the marketplace also work in favour of Midas. Hickey sees a continuation of a rationalization of auto service options with the independent operators closing up in preference for Midas. Hickey considers Midas will be well-positioned to take advantage of these market changes because its methodology involves being as upfront as possible with both its customers and franchisees. The company believes in providing outstanding workmanship and operating in a transparent way. According to Hickey, its success lies in allowing customers and franchisees to always know where they stand.



FRANCHISE GROWTH
The company is built on a growth model that looks to convert all stores to franchise ownership, says Hickey. ?Franchisees are the heart and soul of this business and must be fully supported so that they can make money and take care of customers. Midas is actively recruiting talented franchise partners who are passionate about taking care of customers and want to work with us to grow this great brand,? he explains. Hickey maintains that training is an essential part of building capability and creating operational consistency of execution. It can help members streamline the day to day running of their business and experience the benefits of group buying power. They also get access to ongoing operational and marketing support. A Midas franchise includes a complete store fit-out with $2.5 million spent annually on marketing and advertising activities. Member stores also have access to an integrated point of sale computer system.
Midas also recently unveiled a new re-branding package for its store assets. ?It has been extremely well received by franchisees, customers and employees. Over the next 12 months you will see an enormous upgrade in the brands asset presentation to our customer,? he adds.

To find out more about the great opportunities available & benefits of becoming a Midas franchisee please visit www.midas.com.au/franchising