August 2009. The Motor Industry Code of Practice for Service and Repair will have been in operation for a year by the end of this month. While many franchised dealers are about to renew for their second year subscription and take advantage of the benefits it brings, independents are slow to join up.
The Code has over 5,000 subscribing garages, less than 10% of these are from the independent sector and I can't help feeling that you're missing out. As individual business operators you have an opportunity to compete within your local competitive area on a like for like basis through this initiative.
We know that our industry has seen many attempts over the years to deliver a method of self regulation that provides the levels of consumer protection required by government and the consumer lobby which is also a workable solution for garage operators. With this in mind, you can be forgiven for sitting back and watching to see whether this Code succeeds - but not for ever.
This Code has been developed by the industry to the satisfaction of government and the consumer lobby and is intended to deliver a minimum standard of operation so we all know what the minimum expectancy of and from a garage is. People often talk about the need to raise standards within our industry, I think we need to establish a minimum standard and then see if and how we can collectively improve through consultation and agreement.
Now that we have a minimum standard in place we are seeing that those garages signed up are not responsible for the bad working practices or poor performance that the entire sector is continually accused of perpetuating. A real case of all being tarred with the same brush this and we all know perceptions are hard to change, so we have a difficult job to do - but collectively that's what we are doing.
Those that have signed up are able to fully demonstrate that they are a responsible business operator as they have voluntarily subscribed to this government backed Code.
Supported by the Office of Fair Trading, Trading Standards, Consumer Direct, Consumer Focus and Which? the Code provides the minimum levels of service that customers can reasonably expect to receive when they agree to do business with a garage, in the rare event that something should go wrong, the consumer can get expert help and advice to resolve the situation via the Motor Codes Advisory and Conciliation Service.
Nothing difficult about that is there? No downside that I can think of as the vast majority of garages are already operating to the requirements of the Code, that's what they tell us anyway.
But until a garage commits to being transparent about demonstrating it, how do we know?
So, where's the upside?
Again - it's simple, but very effective. We give each subscribing garage their own page on the Motor Codes website (
http://www.motorindustrycodes.co.uk/) which they can populate with information about their business and use as their own advert. Motorists are using the Garage Finder facility on the Motor Codes website to look for a garage that they can trust with their car and their money. Once they've entered their postcode they assess the options in their area by viewing the garage web pages, select a garage, book their car in and get the work done.
To me, that must mean excellent advertising for the garage and additional custom from motorists looking for a decent, honest and reliable garage to do business with - and doesn't additional custom mean increased earnings? All for £75 a year..... you can't get an advert run in the local paper for that.
Once the work is complete, customers are encouraged to complete an online survey (
http://www.motorindustrycodes.co.uk/service-and-repair/survey.html). The combined results of this feedback then appears on each individual garages web page (once 25 have been completed), helping motorists see who the good guys are and base their decision making on the experiences of those customers that have used the garage before them.
This is a modern day word of mouth exercise. But motorists don't have to rely on the recommendation of one person, they can assess the feedback of several at once, but we need more garages subscribed and in turn more customers providing feedback for a real momentum to be generated and demonstrate that Code subscribers are the responsible business operators within the sector, as verified by their customers again and again.
Some say to me 'we'll wait for legislation, that's what is needed'. Be careful what you wish for is what I say. Why wait for government intervention which will come with massive cost and administrative burdens for each and every business when we have the scheme they would probably look to enforce in operation already?
I recently met with the new Consumer Minister, Kevin Brennan MP, who has made it quite clear. This Code needs to succeed or government will legislate.
Food for thought. Independents don't lose your independence is my message - get on-line and add your weight to the commitment of over 5,000 business operators like you who are already able to demonstrate to all that they are part of the solution and not the problem. They're even getting a bit of extra business out of it...
Yes it's a consumer code of practice, yes it sets standards and yes it requires a collective aspiration from the sector itself. But we only get that if individually you take a decision to do what you know is right, sign up and get the Code working for you and your customers.
All the best
Chris
Trading Standards chief executive Ron Gainsford picked up on the Retail Motor Industry Federation member survey and is encouraging them to avoid the threat of more costly and burdensome regulation by subscribing to the Motor Industry Code of Practice for Service and Repair.
