Aamco franchise system experiencing growth in both transmission repair and total car care services
AAMCO franchise owner Joe Zambri has watched as his Toronto, Canada, business has gained a new revenue stream, diversified it’ customers and grown slowly and steadily — all from his offering Total Car Care services.
Beginning in the early 2000s, AAMCO began offering not only transmission repairs, but also Total Car Care. This diversified strategy has allowed franchisees to capture a bigger part of the general automotive repair market. The average consumer spends $790 a year per vehicle on repairs, according to Consumer Reports.
Since 2014, 60 percent of AAMCO customers visited franchises for Total Car Care services. Prior to offering Total Car Care, customers would have spent a one-time charge of about $2,500 to have their transmission rebuilt. Now, AAMCO is able to gain more repeat customers’ business by offering routine services like tune-ups, oil changes, A/C repairs and other services. The average customer ticket for Total Car Care services is $826.
“Now is a great time to invest in an AAMCO franchise,” says Brett Ponton, President and CEO of AAMCO. “Our core category of transmission repair continues to grow, and we’ve seen huge, double-digit increases in our Total Care Care category.”
For half a century, the American public imagination has linked the word “transmission” to AAMCO, and for good reason. AAMCO’s proven expertise in fixing the most technically challenging part of a car is heralded far and wide, and as a result, they remain the leading brand for transmission work. To help their transmission franchise owners get a bigger slice of the general automotive repair market, which generates $62 billion a year in sales, according to IBISWorld research, they have evolved into a total car care brand providing a variety of services, including brake repairs, tune-ups, shocks and struts, routine maintenance and more. AAMCO was recently named to Entrepreneur’s 2015 Franchise 500®. The system size, growth rate, and financial strength also earned the brand the top spot in the transmission repair category on Entrepreneur’s “Best of the Best”
AAMCO franchisees build awareness of Total Car Care with reputation, “Trust” marketing
AAMCO is the leader in the $5 billion transmission repair industry. Franchisees can feel secure that they already have that major revenue stream — transmission repair — that they can rely on while building their Total Car Care services.
“Our long-term plan allows us to leverage and build upon our 50-year heritage,” Brett says. “We have a core brand positioning of expertise within the the transmission business, and customers know that if you are highly skilled in repairing transmissions, you can fix and maintain anything that a vehicle needs.”
AAMCO franchisees also have the perk of local referrals — many repair shops don’t work on transmissions, so they send them to AAMCO. When those customers realize they can also get their other car maintenance done at an AAMCO franchise, they are likely to stop going to two places for car repair.
According to Automotive Digest, no brand owns more than a 10% share of the overall automobile repair market. By 2018, AAMCO wants to be known as an industry specialist not just in transmissions, but for just about any general vehicle repair. To do this, AAMCO has rolled out their “Trust” campaign in national and local markets to build customer awareness of everything they offer.
AAMCO offers franchisees training, coaching
AAMCO is well known for the intensive coaching and training that they provide AAMCO franchise owners.
“AAMCO always has a lot of training,” said AAMCO franchise owner Lou Fizzarotti — and he has enthusiastically taken part in it.
Franchise owners are continually coached and trained to ensure the success of their locations. AAMCO provides training at their Atlanta-based AAMCO University. Owners also receive ongoing service and support. AAMCO provides updated systems and best practices, which are vital to succeeding in the dynamic, fast-paced field of aftermarket auto maintenance and repair.
An addition bonus is that AAMCO has partnered with a their sister brand Global Powertrain Systems (GPS), to develop a remanufacturing facility that allows franchisees to have immediate access to a vertically integrated supply chain with preferred pricing on their core transmission category. Franchisees have the option to purchase high-quality, remanufactured transmissions from GPS with better warranties and faster turnaround times. This helps franchisees keep their costs low and focus on growing their business in the Total Car Care market.