Shopping|Makes Shopping Fun
Recommended: 5 Star Recipes
Mar
06
Filed Under (Business) by shopping
Willard Michlin asked:
Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every business owner asks himself, every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me that key question. “What is happening in the market today? Is this a good time to sell? ” My quick answer was “These are very interesting times.”
Of course that answer doesn’t tell you anything that you can get your teeth into. So! Let me clarify my answer. Since I have been selling body shops for 10 years, I have seen many changes in the body shop industry. One thing that hasn’t changed is that there have always been an abundance of both sellers and buyers. The buyers have always been, and still are picky about what they were looking for.
The perfect shop in the eyes to the buyers is (A) one that has a customer base and a revenue stream that is reliable and isn’t dependent on the owner being there to retain each individual customer, and. (B) doing a volume of at least $100,000 per month, but really much more. Large volume sellers think that if they have a DRP (Direct Repair Program,) they have what body shop buyers’ want. A DRP is where the insurance companies set up a relationship with the body shop to do all insured’s body shop business, much like an HMO in the health insurance field.
This may be what buyers want, but the DRP contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves, the buyer, after they have paid a lot money for this “reliable revenue stream.” Smaller volume sellers, on the other-hand, not having corporate accounts, dealerships or other contracts still have hope for getting lots of money for their shops. The average shop I run across is only doing about $300,000-$500,000 annual gross income. So what we have is a situation where a lot of buyers are looking to buy a shop, but there are not a lot of shops available, which fit what they are, interested in-$1,500,000 annual gross income or more.
This year, one change has occurred. There are fewer shops available than at any time in my career. Not fewer of the large volume shops for sale, that is fairly stable, but fewer of the small mom and pop repair shops that have not been in heavy demand. The reason, I believe this has happened is because of the booming economy. Low volume shops are doing better than they have in years. They are making money, and do not feel as much pressure to close down. They still would like to get out, but when they find out that their 5,000 sq. foot shop which is making them a $100,000 net profit, is only worth $100,000 on the open market they decide to keep on working.
As always, the shops doing $1 Million to $3 Million per year gross income is still in demand. The price alone still is the main factor, in determining if these shops will sell. A good example of this is what is happening in lower Orange County. There are currently a couple of shops in Lower Orange County that are for sale, by the owners. They appear to be very profitable but the asking price is too high and the buyers all know it. Even the fact that these are the only shops available for sale in this prime area has not changed the fact that buyers just refuse to over pay.
Last year I was marketing a high volume shop, in Ventura County. The buyers refused to pay the asking price, even though the volume was there. Why? The profit wasn’t. In this situation, the buyers would not pay for the volume and stability of income unless the net profits were there. They didn’t assume that they would make a profit where the current owner was not. It appears that the buyers of today are very careful. I believe they do not trust their own ability to get new business and therefore are too careful.
To clear up any confusion about what kind of buyers we are talking about, lets break the buyers up into categories. The first category is the consolidators. There are two large ones in Southern California but they are not the whole market. I have talked to out of state consolidators that have inquired about moving in to the So California market. Consolidators want shops that fit their model. That model sometimes changes but basically they will buy a shop if it fits their model.
If it doesn’t, they will not touch it. The price by itself doesn’t turn their interest on or off. We do not have enough space to discuss what this group will buy, in this article. It is enough to say, “ If your shop fits their criteria they would have contacted you and expressed interest. If they haven’t contacted you, they are not interested.” Period! They know their market place and who is in it.
By the way, if I owned a shop that a consolidator wanted, I would never sell to them. Being a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. When I have discovered what the terms of the sale are, after the fact, amazed me. I had buyers for the same money, or more, without the seller being at risk, but no one asked me.
The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more areas. They are very interested in the sq. footage of the shop, and its ability to handle over $2 Million Gross Income per year. This buyer only looks in limited areas. The areas being where they have been offered a DRP contract. When they are looking, they need it now, while the window of opportunity is open to them. If they can’t find it quick, they will not need it at all. Recently I had a multiple shop buyer who had made an offer and was negotiating on a shop in West Los Angeles. By the time we finished the negotiations, the DRP contract was gone and consequentially, so was the buyer.
The third category is the buyers who have worked in the industry before, but do not currently own a shop. Also in this group are the buyers who have family in the industry; money is no problem. This buyer believes “ If it doesn’t have a DRP, forget it. If it has a DRP and isn’t making much money, also forget it”. If it has a DRP, and it is making money, they are interested but only at what they consider is a fair price (In their eyes). This group I have successfully changed their mind as to how they analyze what a good shop looks like and on occasion they have bought shops with “a steady reliable income”, instead of trying to find a shop with only a DRP insurance contract.
The fourth category is the person that just wants a shop. They will do what they have to, to afford a shop-that will work for them. This group is the working body man or auto repair shop mechanic. Because of their limited funds, this buyer will only pay what he or she feels the equipment is worth. They will pay nothing for goodwill because they believe that the seller’s customers are not stable and will leave when the ownership changes. Are they wrong?
In Conclusion: There are a lot of buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale but mostly in the properly priced category. Most days I feel like a marriage broker with a lot of plain brides and a few beauties. The dowry for the beauties is more than most good-looking boys will pay. The balance of the girls may not be pretty, but some of them can sure cook. Anyone want to get married? “Have I got a girl for you”
hollywood shopping
Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every business owner asks himself, every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me that key question. “What is happening in the market today? Is this a good time to sell? ” My quick answer was “These are very interesting times.”
Of course that answer doesn’t tell you anything that you can get your teeth into. So! Let me clarify my answer. Since I have been selling body shops for 10 years, I have seen many changes in the body shop industry. One thing that hasn’t changed is that there have always been an abundance of both sellers and buyers. The buyers have always been, and still are picky about what they were looking for.
The perfect shop in the eyes to the buyers is (A) one that has a customer base and a revenue stream that is reliable and isn’t dependent on the owner being there to retain each individual customer, and. (B) doing a volume of at least $100,000 per month, but really much more. Large volume sellers think that if they have a DRP (Direct Repair Program,) they have what body shop buyers’ want. A DRP is where the insurance companies set up a relationship with the body shop to do all insured’s body shop business, much like an HMO in the health insurance field.
This may be what buyers want, but the DRP contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves, the buyer, after they have paid a lot money for this “reliable revenue stream.” Smaller volume sellers, on the other-hand, not having corporate accounts, dealerships or other contracts still have hope for getting lots of money for their shops. The average shop I run across is only doing about $300,000-$500,000 annual gross income. So what we have is a situation where a lot of buyers are looking to buy a shop, but there are not a lot of shops available, which fit what they are, interested in-$1,500,000 annual gross income or more.
This year, one change has occurred. There are fewer shops available than at any time in my career. Not fewer of the large volume shops for sale, that is fairly stable, but fewer of the small mom and pop repair shops that have not been in heavy demand. The reason, I believe this has happened is because of the booming economy. Low volume shops are doing better than they have in years. They are making money, and do not feel as much pressure to close down. They still would like to get out, but when they find out that their 5,000 sq. foot shop which is making them a $100,000 net profit, is only worth $100,000 on the open market they decide to keep on working.
As always, the shops doing $1 Million to $3 Million per year gross income is still in demand. The price alone still is the main factor, in determining if these shops will sell. A good example of this is what is happening in lower Orange County. There are currently a couple of shops in Lower Orange County that are for sale, by the owners. They appear to be very profitable but the asking price is too high and the buyers all know it. Even the fact that these are the only shops available for sale in this prime area has not changed the fact that buyers just refuse to over pay.
Last year I was marketing a high volume shop, in Ventura County. The buyers refused to pay the asking price, even though the volume was there. Why? The profit wasn’t. In this situation, the buyers would not pay for the volume and stability of income unless the net profits were there. They didn’t assume that they would make a profit where the current owner was not. It appears that the buyers of today are very careful. I believe they do not trust their own ability to get new business and therefore are too careful.
To clear up any confusion about what kind of buyers we are talking about, lets break the buyers up into categories. The first category is the consolidators. There are two large ones in Southern California but they are not the whole market. I have talked to out of state consolidators that have inquired about moving in to the So California market. Consolidators want shops that fit their model. That model sometimes changes but basically they will buy a shop if it fits their model.
If it doesn’t, they will not touch it. The price by itself doesn’t turn their interest on or off. We do not have enough space to discuss what this group will buy, in this article. It is enough to say, “ If your shop fits their criteria they would have contacted you and expressed interest. If they haven’t contacted you, they are not interested.” Period! They know their market place and who is in it.
By the way, if I owned a shop that a consolidator wanted, I would never sell to them. Being a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. When I have discovered what the terms of the sale are, after the fact, amazed me. I had buyers for the same money, or more, without the seller being at risk, but no one asked me.
The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more areas. They are very interested in the sq. footage of the shop, and its ability to handle over $2 Million Gross Income per year. This buyer only looks in limited areas. The areas being where they have been offered a DRP contract. When they are looking, they need it now, while the window of opportunity is open to them. If they can’t find it quick, they will not need it at all. Recently I had a multiple shop buyer who had made an offer and was negotiating on a shop in West Los Angeles. By the time we finished the negotiations, the DRP contract was gone and consequentially, so was the buyer.
The third category is the buyers who have worked in the industry before, but do not currently own a shop. Also in this group are the buyers who have family in the industry; money is no problem. This buyer believes “ If it doesn’t have a DRP, forget it. If it has a DRP and isn’t making much money, also forget it”. If it has a DRP, and it is making money, they are interested but only at what they consider is a fair price (In their eyes). This group I have successfully changed their mind as to how they analyze what a good shop looks like and on occasion they have bought shops with “a steady reliable income”, instead of trying to find a shop with only a DRP insurance contract.
The fourth category is the person that just wants a shop. They will do what they have to, to afford a shop-that will work for them. This group is the working body man or auto repair shop mechanic. Because of their limited funds, this buyer will only pay what he or she feels the equipment is worth. They will pay nothing for goodwill because they believe that the seller’s customers are not stable and will leave when the ownership changes. Are they wrong?
In Conclusion: There are a lot of buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale but mostly in the properly priced category. Most days I feel like a marriage broker with a lot of plain brides and a few beauties. The dowry for the beauties is more than most good-looking boys will pay. The balance of the girls may not be pretty, but some of them can sure cook. Anyone want to get married? “Have I got a girl for you”
hollywood shopping
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Nov
11
Filed Under (Business) by shopping
Kamyar Shah asked:
Secret shopping sounds mysterious and fun and well, shopping is great no matter what. Secret shopping in its basic form is shopping someone or someplace without the person or business knowing it. Shopping secretly seems to draw on this fantasy of part detective, part spy, and part shopaholic. In the best scenario you receive your “mission” and then go to the location and pretend to be a real customer all while noticing all the things going on around you. Some secret shopping companies will have the shopper actually purchase something so that the whole shopping encounter seems more realistic. If you search the words, “secret shopping” on the Internet you will get over 4 million hits on websites that have something to do with secret shopping.
There are all types of secret shopping businesses out there. There are businesses, corporations and large chains that have their own department or group of people that travel around and try to shop the stores. Sometimes this is part of the internal security team that helps reduce shrinkage or loss prevention specialists. Then there are the companies and stores that will choose to hire a secret shopping company who specializes in secret shopping that specific industry.
Some of the things that in person secret shops might uncover are:
How many customers in the store when entering?
Did anyone greet you when entering the store or how long did it take for someone to greet you after walking in the door?
Was the store neat and clean?
Did anyone offer to help you find an item or offer to help you?
Was the associate dressed appropriately?
Was the bathroom clean?
Was the associate using their time wisely?
Did an associate offer to get you a shopping bag, shopping cart, or basket or to start a dressing room for you?
Did the associate let you know of any specials or promotions going on in the store
Was it easy to navigate through the store?
How long did you have to wait to check out?
Was the cashier friendly?
Were your items rang in correctly?
Did the associate offer to open a store credit account?
Did the cashier thank you for coming in?
These are just a few questions that a secret shopper might have to fill out when doing a report on how the shop went. Of course depending on the company, different key areas would be listed and other items of interest that would be specific to that company. Besides a person going into a store and shopping them, some companies are having their shoppers wired for sound and or video. While a person can go to a place and shop and come up with their opinions, sound and video are hard to ignore. Often sound and video are used in extreme circumstances where sound and video would implicate a person or business of a wrongdoing.
There is a show on television right now that shows all kinds of hidden video of stealing, people acting stupid, intoxicated, fighting, driving recklessly, and more. It just goes to show you what people will watch on television. But is proves a powerful tool for incrimination or reprimanding employees.
What kind of business would use a secret shopping service? Lots of businesses use a secret shopping service whether it is an internal monitoring or hired out by a company that specializes in secret shopping. Corporate businesses would use a secret shopping service to make sure that the individual franchise or store is keeping up with the company’s rules and regulations. While some franchises are individually owned they still have to sign a contract with the home office that they will uphold the standards, appearances, and make sure that all the stores are virtually the same. Smaller businesses might use a secret shopping service for a number of things like monitoring, training, compliance, or incentive based information. Monitoring is just that, a basic service that gives the manager or owner a simple description of the secret shop. On going training is essential to any business so companies can use secret shopping to help with continued training. Compliance goes a little further with specific areas of sales, customer service, safety, and rules being covered. Incentive based secret shopping is when the person or business being shopped and that said person or business doing a great job would get a reward. The reward could be monetary, time off, bonus, lunch, or other items that the owner or manager will choose.
Some companies choose to do telephone secret shopping instead of or in addition to the in person secret shop. Telephone secret shopping uses the same principles as above except the whole interaction is done over the telephone. Modern software and telephone equipment have made this type of secret shopping easier and more secretive. But with technology comes the backlash of trying to be secretive, the arch nemesis of the telephone secret shopping world, caller id. There are ways around caller id and they will not be shared in this essay, but if you need to bypass a caller id there are systems that can do it, just check out the Internet. So the basic telephone secret shops goes like this:
Store-”Hi, thanks for calling XYZ business, this is Bob, how can I help you today?”
Shopper- “Hello Bob, I was wondering if you could give me some information about your….”
Store- “Sure, I can help you with that. You see here at XYZ business we have…”
You can see where this is going.
The telephone secret shop is typically recorded to an audio system or to the Internet where the call can be retrieved at a later date. Different software systems allow the secret shopping calls to be listened to online in real time or saved and sent via email when the audio format is in MP3. This software also allows its user to edit the call. Trimming the call in the beginning before the rings start and after both parties have hung up allow the call to remain in a manageable length. Some companies record the call and then send it to their clients on a CD. The CD allows the manager or owner to listen and share the call with the employee.
Are you looking for a secret shopping job? There are many established secret shopping companies out there that are looking for shoppers, but how do you know which ones to trust. First of all, like the old saying goes, “if it sounds to good to be true, then it probably is” so don’t fall for all the Internet hype about secret shopping. Could you in reality find a reputable secret shopping company and make some money, yes, if you do your homework. This is such a serious issue that the Federal Trade Commission has advice on how to avoid being scammed by fake secret shopping companies. Here is some advice on how to avoid bogus secret shopping companies:
Do your homework; check out the company BEFORE you give them any personal information
Beware of catchy banners and click me sites that offer to hire secret shoppers off of the Internet. This is a “sounds too good to be true” situation.
Check with the Better Business Bureau about background information on the company before you jump in with both feet.
Many fake secret shopping sites want you to complete “offers” before you are assigned any jobs. These offers are actually ways for that site to gather information about you like your name and email. Offers like; try these magazines or a free trial offer for who knows what, and all you have to give them is your information and sometimes a credit card number. These sites are known to sell or use your email to spam sites that will then riddle your inbox with tons of junk email.
If you know someone who is a secret shopper ask them how they got into the business and I bet they will have some advice of their own to share.
It’s not as easy as it seems, there is often some travel involved and reports have to be written in detail, called in, typed or emailed for you to be able to get paid per job.
So if you are looking for a secret shopping company or a secret shopping job, the bottom line is check the company out before doing business with them. Ask for business references (and call them, just giving a sheet a references won’t do you any good if you don’t call them), check with the better business bureau and ask around. The time you spend doing your homework before you hire or look for a secret shopping job will pay off in the end. There are some great secret shopping companies out there that offer secret shopping services and your business will prosper from the knowledge and training that a reputable secret shopping business can provide for you.
shopping sites
Secret shopping sounds mysterious and fun and well, shopping is great no matter what. Secret shopping in its basic form is shopping someone or someplace without the person or business knowing it. Shopping secretly seems to draw on this fantasy of part detective, part spy, and part shopaholic. In the best scenario you receive your “mission” and then go to the location and pretend to be a real customer all while noticing all the things going on around you. Some secret shopping companies will have the shopper actually purchase something so that the whole shopping encounter seems more realistic. If you search the words, “secret shopping” on the Internet you will get over 4 million hits on websites that have something to do with secret shopping.
There are all types of secret shopping businesses out there. There are businesses, corporations and large chains that have their own department or group of people that travel around and try to shop the stores. Sometimes this is part of the internal security team that helps reduce shrinkage or loss prevention specialists. Then there are the companies and stores that will choose to hire a secret shopping company who specializes in secret shopping that specific industry.
Some of the things that in person secret shops might uncover are:
How many customers in the store when entering?
Did anyone greet you when entering the store or how long did it take for someone to greet you after walking in the door?
Was the store neat and clean?
Did anyone offer to help you find an item or offer to help you?
Was the associate dressed appropriately?
Was the bathroom clean?
Was the associate using their time wisely?
Did an associate offer to get you a shopping bag, shopping cart, or basket or to start a dressing room for you?
Did the associate let you know of any specials or promotions going on in the store
Was it easy to navigate through the store?
How long did you have to wait to check out?
Was the cashier friendly?
Were your items rang in correctly?
Did the associate offer to open a store credit account?
Did the cashier thank you for coming in?
These are just a few questions that a secret shopper might have to fill out when doing a report on how the shop went. Of course depending on the company, different key areas would be listed and other items of interest that would be specific to that company. Besides a person going into a store and shopping them, some companies are having their shoppers wired for sound and or video. While a person can go to a place and shop and come up with their opinions, sound and video are hard to ignore. Often sound and video are used in extreme circumstances where sound and video would implicate a person or business of a wrongdoing.
There is a show on television right now that shows all kinds of hidden video of stealing, people acting stupid, intoxicated, fighting, driving recklessly, and more. It just goes to show you what people will watch on television. But is proves a powerful tool for incrimination or reprimanding employees.
What kind of business would use a secret shopping service? Lots of businesses use a secret shopping service whether it is an internal monitoring or hired out by a company that specializes in secret shopping. Corporate businesses would use a secret shopping service to make sure that the individual franchise or store is keeping up with the company’s rules and regulations. While some franchises are individually owned they still have to sign a contract with the home office that they will uphold the standards, appearances, and make sure that all the stores are virtually the same. Smaller businesses might use a secret shopping service for a number of things like monitoring, training, compliance, or incentive based information. Monitoring is just that, a basic service that gives the manager or owner a simple description of the secret shop. On going training is essential to any business so companies can use secret shopping to help with continued training. Compliance goes a little further with specific areas of sales, customer service, safety, and rules being covered. Incentive based secret shopping is when the person or business being shopped and that said person or business doing a great job would get a reward. The reward could be monetary, time off, bonus, lunch, or other items that the owner or manager will choose.
Some companies choose to do telephone secret shopping instead of or in addition to the in person secret shop. Telephone secret shopping uses the same principles as above except the whole interaction is done over the telephone. Modern software and telephone equipment have made this type of secret shopping easier and more secretive. But with technology comes the backlash of trying to be secretive, the arch nemesis of the telephone secret shopping world, caller id. There are ways around caller id and they will not be shared in this essay, but if you need to bypass a caller id there are systems that can do it, just check out the Internet. So the basic telephone secret shops goes like this:
Store-”Hi, thanks for calling XYZ business, this is Bob, how can I help you today?”
Shopper- “Hello Bob, I was wondering if you could give me some information about your….”
Store- “Sure, I can help you with that. You see here at XYZ business we have…”
You can see where this is going.
The telephone secret shop is typically recorded to an audio system or to the Internet where the call can be retrieved at a later date. Different software systems allow the secret shopping calls to be listened to online in real time or saved and sent via email when the audio format is in MP3. This software also allows its user to edit the call. Trimming the call in the beginning before the rings start and after both parties have hung up allow the call to remain in a manageable length. Some companies record the call and then send it to their clients on a CD. The CD allows the manager or owner to listen and share the call with the employee.
Are you looking for a secret shopping job? There are many established secret shopping companies out there that are looking for shoppers, but how do you know which ones to trust. First of all, like the old saying goes, “if it sounds to good to be true, then it probably is” so don’t fall for all the Internet hype about secret shopping. Could you in reality find a reputable secret shopping company and make some money, yes, if you do your homework. This is such a serious issue that the Federal Trade Commission has advice on how to avoid being scammed by fake secret shopping companies. Here is some advice on how to avoid bogus secret shopping companies:
Do your homework; check out the company BEFORE you give them any personal information
Beware of catchy banners and click me sites that offer to hire secret shoppers off of the Internet. This is a “sounds too good to be true” situation.
Check with the Better Business Bureau about background information on the company before you jump in with both feet.
Many fake secret shopping sites want you to complete “offers” before you are assigned any jobs. These offers are actually ways for that site to gather information about you like your name and email. Offers like; try these magazines or a free trial offer for who knows what, and all you have to give them is your information and sometimes a credit card number. These sites are known to sell or use your email to spam sites that will then riddle your inbox with tons of junk email.
If you know someone who is a secret shopper ask them how they got into the business and I bet they will have some advice of their own to share.
It’s not as easy as it seems, there is often some travel involved and reports have to be written in detail, called in, typed or emailed for you to be able to get paid per job.
So if you are looking for a secret shopping company or a secret shopping job, the bottom line is check the company out before doing business with them. Ask for business references (and call them, just giving a sheet a references won’t do you any good if you don’t call them), check with the better business bureau and ask around. The time you spend doing your homework before you hire or look for a secret shopping job will pay off in the end. There are some great secret shopping companies out there that offer secret shopping services and your business will prosper from the knowledge and training that a reputable secret shopping business can provide for you.
shopping sites
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