Iconic auto repair franchise helps franchisees maximize profitability through upgraded support and new lines of service
For half a century, the iconic AAMCO brand has been a dynamic part of American car culture. With nearly 700 auto repair locations across the country, AAMCO is the rare, time-tested legacy brand that remains both committed to innovation and trusted in the eyes of the American consumer. Why are we so successful? Because AAMCO continually invests in our franchisees to ensure that our auto repair franchise owners know every aspect of their business and have the tools to maximize their profitability.
While we don’t require that our owners have automotive experience before partnering with us, it is of paramount importance that the AAMCO brand maintains a reputation as the industry’s technical experts in Total Car Care, just as it has in transmission repair. Our expertise in fixing the most complicated part of the car has made us a household name for the past 50 years, and our Total Car Care offering helps position our franchise owners to compete for an outsized share of the $62 billion general automotive repair market.
How do we turn entrepreneurs without auto industry experience into savvy, skilled, and passionate auto repair franchise owners? Enter AAMCO University.
“AAMCO University is a significant investment in our owners and their employees,” says Brett Ponton, President and CEO of AAMCO. “We want to make certain that we have the best-trained franchise owners and center managers in the industry. We also want to maintain and develop the best-trained technicians in the industry to solve the problems consumers are going to have with their vehicles in modern-day driving America.”
The AAMCO franchise opportunity offers multiple revenue streams
AAMCO is the undisputed leading brand in transmission work. To help our franchise owners get a bigger slice of the general automotive repair market, which generates $62 billion a year in sales according to IBISWorld research, we launched our “Trust” campaign to expand the public’s perception of what we do. After all, if we are trusted to fix the most complicated part of a car, we can surely change our customers’ oil, fix their brakes, and rotate their tires.
For Joe Zambri, owner of an auto repair franchise in Toronto, Canada, the opportunity for multiple revenue streams sets the AAMCO brand apart:
“I think what sets AAMCO apart from our competitors is that … our business is changing rapidly,” Joe says. “We have been able to piggyback a new revenue stream with Total Car Care and grow that slowly and steadily, while maintaining our core revenue stream from transmission repair, which has a high margin. In a way, we have evolved into a hybrid model — we have diversified enough to bring in more revenue and lifelong customers, but we have not gone too far away from our core expertise in transmission repair.”
Our business model helps our franchisees win customers for life
One of the biggest positives in partnering with a nationally known brand with a 50-year history of expertise and customer trust is that the groundwork is already laid. We have spent decades establishing ourselves as a preeminent brand, and franchisees benefit from that legacy the day they open their doors.
The fact that the American public trusts the AAMCO brand is especially important when considering winning customers for life. We calculate that the average automobile customer will spend $54,036 on repair during the time they own and operate a car. If that customer has two vehicles — and most households have two vehicles or more — that amount doubles. Even though the average transmission rebuild costs a customer about $2,500, total spending on transmission work is a small fraction of car care spending. Most people only consider replacing a transmission on a vehicle once. They get oil changes, brake work and tune-ups continually. The bulk of that $54,000-per-customer lifetime spending goes for other repair services.
“At AAMCO, we believe we are very well positioned to win the automotive aftermarket,” Brett says. “Our brand is very well known for transmission expertise that typically has a large ticket value associated with it. Our goal going forward is to maintain our leadership position for transmissions, while focusing on building lifetime relationships with our customers through providing expert service in all automotive areas. As a result, we will build long-term business value for our franchisees.”
For Wayne Martella, owner of three auto repair franchise locations in Arizona, our expertise in transmissions means that he will always have customers visiting his centers.
“What I like about AAMCO and the transmission business is that as cars evolve, any power that happens in the car has to go through the transmission,” Wayne says. “To make the wheels turn, there has to be a transmission involved, and that’s us. I will always have cars to fix.”