In addition to being ASA members, 60 percent of respondents are also ASE Blue Seal facilities. Thirty-eight percent of respondents are AAA-approved facilities. Thirty-four percent maintain affiliations with parts groups.

Respondents were asked the average dollar amount of parts inventory on hand in 2005. Although this had a wide range of answers, the average was $19,843. By categorizing inventory, 63 percent of the survey contributors indicated an average of $15,000 or less in parts inventory; 22 percent had $15,001 to $30,000 in parts; 7 percent had $30,001 to $50,000; and 7 percent had more than $50,000 in parts inventory.

When asked about their parts inventory, about 40 percent noted a reduction in their parts dollar amount and the number of parts held in stock, while another 22 percent noted an increase. Thirty-three percent cited no changes in their parts dollar amount and stock quantity. This leaves 6 percent with no inventory on hand in 2005.

Communication and information are key elements of the Internet. The accessing of information has grown slightly from 90 percent in 2005 to 92 percent in 2006. Eighty percent of mechanical business owners use the Internet for e-mail, up 4 percent from 2005. The Internet is also used to order and track parts (76 percent), purchase tools and equipment (67 percent) and do product research (55 percent).

Twenty-four percent of businesses use the Internet for customer contact/retention. The Internet is used by 34 percent of mechanical businesses for technician training and by 22 percent for management training.

Another trend occurring in the independent sector is being open Saturdays. All survey respondents are open during the workweek, and 34 percent are also opting to conduct business on Saturday - either all day or until noon. This figure is up from last year's 20 percent.

Friday is cited by 42 percent of respondents to be the busiest day of the week, followed by Monday at 41 percent. Summer continues to be cited as the busiest season by 61 percent of those surveyed. Twenty-eight percent of respondents said they are equally busy all year.

Apprentice pay averaged $22,499 in 2006. The average salary for entry-level technicians in 2006 is $30,779 while experienced technicians earned $45,092. Each technician position showed a slight decrease in salary compared to 2005 survey figures.

Office staff wages decreased from an average of $27,201 in 2005 to $26,602 in 2006. Service writers earn an average salary of $40,327, and detailers earn $20,704. For the percentage of businesses that employ parts managers, these managers are paid an average of $37,720 annually. The 2006 figures show shop managers averaging $49,980 in earnings. Keep in mind, many owners also serve as shop managers and their annual salaries may not be included within the shop manager salary calculations.

Forty-four percent of technicians are paid a flat rate, which is the most popular form of payment for technicians. This is closely followed by 30 percent receiving hourly wages and 20 percent receiving hourly pay plus commission wages. Another 17 percent are paid by salary, and 6 percent received a salary plus commission. A percentage of labor rates are received by 4 percent of technicians. The smallest pay type - team pay - is used by less than 1 percent.

Employee benefits continue to be a big part of the independent mechanical repair sector. Standard benefits provided to employees include uniforms (88 percent), which surpassed both paid vacations (80 percent) and paid holidays (77 percent). Paid holidays have been the No. 1 benefit offered to our members since 1991. Technical training (67 percent) and health insurance (65 percent) rank highly among members. Additional benefits offered include yearly bonus and 401K/simple IRA equally sharing 38 percent of responses, life insurance (34 percent), management education (31 percent), dental insurance (26 percent), tool reimbursement (18 percent), cafeteria plans (17 percent) and vision insurance (10 percent).

When asked which employee category type was needed most, 38 percent said experienced technicians, followed by entry-level technicians (20 percent), service writers (18 percent) and apprentice technician and office staff (10 percent each.)

The 2006 results showed 34 percent of businesses promoted an average of two technicians. Forty-seven percent of shops polled reported they had an average of one technician leave, and 55 percent hired two technicians. It is important to note that 49 percent had no movement of technicians and that there was equality between shops that had hired technicians and those that had technicians leave.

The primary source for locating new technicians still comes from referrals and word-of-mouth (79 percent), followed by classified advertising (41 percent). Thirty-eight percent selected recruiting technicians from other shops as the best way to recruit staff, followed by acquiring technicians from vocational schools at 30 percent.

ASA members pursue new candidates from school-to-work programs (11 percent) and high schools (9 percent). School-to-work employees are staffed by 35 percent of ASA members and make up one employee (25 percent) of a shop's staff, two employees (8 percent) and three employees (2 percent). These numbers are up from figures in previous years.

Sales

For the 2006 HYB? survey, respondents were asked to give their average ticket price so far during 2006. The average ticket price in 2006 was $317 per order, up slightly from $306 in 2005.

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By dividing the average ticket price into categories, it is easier to see where repair orders lie for the majority of respondents.

Twenty-four percent of businesses reported having an average ticket up to $200. Thirty-six percent recorded an average ticket from $201-$300; 26 percent, $301-$400; and $401 and beyond averaged 14 percent of member response. The smallest percentage - less than 2 percent - reported an average ticket from $1,000 and up.

According to ASA's 2006 survey, the average repair order is broken down into 48 percent parts and 51 percent labor, unchanged from 2005.

The number of repair orders per month so far during 2006 averaged 228, up from 194 in 2005.

Responses were also categorized to better describe average monthly repair orders. Twenty-three percent of businesses had one to 100 repairs monthly; 35 percent had 101 to 200 repairs; 18 percent had 201 to 300 and 11 percent had 301 to 400. Five percent claim monthly repair orders totaled 401 to 500 and 7 percent, 501 and up.

This year's survey asked about annual sales percentages for 2005. Six percent reported gross annual sales revenue under $100,000 in 2005, up slightly from 5 percent in 2004. The percentage of businesses with sales of $100,000 to $250,000 averaged 10 percent in 2005. The $250,001 to $500,000 category is reported by 25 percent of members polled.

Twenty percent of businesses reported annual sales for 2005 in the $500,000 to $750,000 category. Businesses with sales of $750,000 to $1 million were at 17 percent in 2005. Similarly, the $1 million to $1.5 million category was at 18 percent in 2005.

The state of the economy and the large number of new vehicles entering the marketplace from 2001 to 2005 (due to low interest rates and new car sales) may have hampered mechanical service and repair sales. The 2006 HYB? survey asked business owners to compare sales in 2005 to 2006. Fifty-nine percent cited an increase in sales, averaging 12 percent in 2006. Twenty-three percent saw a decrease of an average of 11 percent in sales and 18 percent found no change in sales in 2006.

The top reasons cited for a sales increase include customer service (50 percent), marketing and advertising (46 percent), technician proficiency (42 percent), management skills (35 percent) and economic conditions (27 percent). Additional reasons cited include an increase in services provided (23 percent), followed by labor rates (18 percent), percent of parts profits (16 percent) and quality of parts (11 percent).

For the 23 percent who cited a sales decrease in 2006, 79 percent said it was due to economic conditions. Weather conditions were cited by 21 percent of business owners, followed by technician proficiency (14 percent).

Businesses were also asked to select areas where the sales increase occurred. Fifty-five percent noted an increase in profit, 62 percent saw growth in their customer base, and 58 percent had an increase in monthly repair orders. Decreases in profits were experienced by 22 percent. Thirteen percent cited a decrease in customers, and 21 percent had a decrease in monthly repair orders. Collectively, an average of 23 percent saw no change in customers, profits or repair orders.

The outlook for sales in 2007 is projected to be positive for 84 percent of the population. Thirteen percent expect to hold steady and a mere 3 percent expect sales to decrease in 2007.

Service contracts, extended warranties and warranty repair have entered into the independent repair business world. Ninety-nine percent of respondents said they offer a warranty. Ninety-two percent offer a warranty on both parts and labor; 6 percent offer parts only and less than1 percent, labor only. Although 78 percent report repairing vehicles covered by an extended warranty, the offering of such a product still belongs to the dealership.

New to the survey are parts purchasing patterns in the independent mechanical service and repair industry. Parts sources are identified as jobber/warehouse distribution (52 percent), retail stores (41 percent), expeditor services (37 percent), dealerships (23 percent) and purchasing parts from manufacturers directly (21 percent).

Of the various aftermarket parts purchased, 88 percent are certified and of those, 43 percent are rejected. The 28 percent of non-certified parts purchased resulted in a rejection rate of approximately 50 percent.

With an average of 228 repair orders per month, respondents said an average of five results in a customer comeback. Of those five comebacks, three were attributed to defective parts.

Customer Profile

Independent mechanical business customers are a loyal group. Currently, 79 percent of mechanical business customers are repeat customers. Typically, customer loyalty is a reflection of the quality of service and customer care provided.

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This year, respondents were asked to identify the average number of times they service the same vehicle within a 12-month period. This turned out to be four. Survey results also show that the use of customer satisfaction surveys has slightly decreased within mechanical repair businesses. Currently, 35 percent of businesses perform satisfaction surveys, down from 40 percent in 2005. The percentage of women and men having their vehicle serviced is split at 49 percent women and 51 percent men.

Both the type of customer and the distance a customer travels are important aspects in creating a successful marketing plan. According to survey results, the average repair facility's customer base extends 26 miles, an addition of 5 miles from 2005 figures.

Marketing/Advertising

Marketing and advertising continue to be a source of increased sales as noted by 46 percent of members. Currently, 98 percent of businesses perform some form of advertising. Top advertising methods include word-of-mouth (91 percent), Yellow Pages (71 percent), and signage (64 percent). Web site and direct mail equally make up 47 percent of responses. Forty-two percent cite community involvement; 29 percent, newspaper ads; and radio spots and specialty advertising are claimed equally by 22 percent of those advertising to consumers.

Seventeen percent also use electronic reminders to advertise, 16 percent use neighborhood shoppers and 13 percent use church bulletins to attract new business. Cable TV rendered 7 percent, and 5 percent used broadcast television to connect with the motoring public.

Mechanical business owners presented an average advertising budget of $13,170 for 2006, a notable decrease from $17,992 in 2005.

Thirteen percent of businesses spend $1,000 or less on advertising annually. Twenty-nine percent spend between $1,001 and $5,000, and 13 percent spend an average of $5,001 to $10,000 on advertising. Fourteen percent of members spend $10,001 to $15,000 and 12 percent spend $15,001 to $20,000. Other categories are single digits, however, 7 percent of members spend $25,000 to $30,000 on annual advertising expenses.