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  Shop Profile

New Jersey Business Depends on Word-of-Mouth

Posted 6/7/1999
By B.J. Johnson

Hansen Automotive is located in Somerset, N.J., and owners Ken and Gigi Hansen pride themselves on the number of loyal and educated customers they have. Hansen Automotive has been in its new location for 18 months and continues to grow and prosper.

However, it was not always easy. The Hansens have endured two court battles with the local board of adjustment to open this new facility. The community where the shop is located has zoning laws that prohibit usage of space for automotive services unless they were pre-existing. After finally winning the second hearing, the Hansens opened their doors for business.

The building was originally a truck garage and needed to be renovated. Through design changes and hard work, Hansen Automotive is now a state-of-the-art automotive repair facility with a new roof, doors and awning, stucco walls and a spacious office. It sits on a 10,000 square-foot lot and the shop is 2,100 square feet including 1,500 square feet of shop space. The four-bay shop has an analyzer, three lifts, an A/C refrigerant recovery system and a Mitchell computerized information repair system. "We can accommodate vehicles up to the size of limousines and small buses," said Ken.

"My business is unique because I am located on a street with low visibility," said Ken. "It is imperative that I constantly focus on customer satisfaction and promote 'word-of-mouth' marketing." Originally the community was against an automotive business in this location. Through determination the Hansens have educated their neighbors and customers about the industry and changed people's perception of an automotive shop. Now his neighbors stop by and visit, and are glad Hansen's is in the neighborhood.

Hansen's customer base is made up of people who have followed the shop to its new location and referrals from a local body shop and a limousine service located directly across the street. In addition to customer referrals, Hansen's also participates in a direct mail program, annual fund raisers through the church, shopping cart ads and local newspaper ads. Ken has also sponsored his son's little league team for three years.

Joe McGinnis Hansen Automotive is generally a one-man operation. Ken performs the duties of owner, manager and technician. He does, however, have some help. Joe McGinnis (pictured, right) works part-time in the shop as a technician and Gigi helps with the administrative side of the business. "The biggest advantage of her working with me is the help it gives me with financing building improvements, proofing and typing any letters or advertising materials, ideas and last but not least, moral support," said Ken. Even though Gigi helps with the administration of the business, she is employed full-time with a firm as a professional engineer. In addition to Gigi and Joe, the Hansens' 13-year-old son works in the business on holidays and in the summer. He helps with computer entry and answering the phones.

Ken and Gigi Hansen at the 1999 ASA Annual Convention in Bermuda following the AAM designation graduation ceremony. Education
Education is a top priority for Ken, whether it be for himself or his customers. Ken takes his time with each customer to explain, in detail, the repair process and the time needed to diagnose and repair the vehicle. He attributes much of his success to the extra time he spends with each of his customers.

Ken's education includes attending Brookdale Community College in the automotive technical program and he obtained his Accredited Automotive Manager (AAM) designation this year through the Automotive Management Institute (AMI). He attends technical courses on an on-going basis and is a National Institute for Automotive Service Excellence (ASE) master certified technician. In 1998, Gigi obtained her AAM designation. (pictured: Ken and Gigi Hansen at the 1999 ASA Annual Convention in Bermuda following the AAM designation graduation ceremony.)

Background
Ken has been in the automotive repair industry since the early 1970s, following high school. He began his career working for a local Chrysler/Plymouth dealership. Then he worked as a lube man at a Chevrolet dealership. In 1973, he moved to North Carolina where he was a line mechanic for a Ford dealership. Two years later, Ken returned to New Jersey and continued his Ford/Mercury dealership experience in several central New Jersey dealerships. The dealership knowledge helped Ken hone his skills and prepare for ownership. "On July 15, 1982, I left the dealers and started my own business," said Ken.

Industry commitment
Industry involvement has also proven beneficial to the Hansens. Ken and Gigi regularly attend the ASA Annual Convention and the Congress of Automotive Repair and Service (CARS) to continue their education and to stay informed about the industry. "I joined ASA in 1988 because I felt, and still feel, that membership in an association is healthier for its members and the industry as a whole. I also recognize the value of the many membership benefits. I continue my membership primarily because of the AMI classes and the networking between automotive professionals that ASA events provide," said Ken. He is also active in the ASP-New Jersey mechanical division.

Future plans
The future looks bright for Hansen Automotive due to the dedication, determination and positive outlook of its owners. Ken plans to find and keep busy two qualified technicians. "Hopefully one will eventually take over the business when I reach retirement age," said Ken.

Ken is also working on increasing the utilization of the four bays. "Being a new shop owner in an otherwise established area, it is taking time and extra effort to increase my customer base to meet the increased bay space of my new location," he said.

Outside interests
Hansen with sons The Hansen family is made up of Ken, Gigi, sons Jon, 13, and Thomas, 9 (pictured). "We have two children. At this time, they are being exposed to the business but I do not necessarily expect that they will join me in the business," said Ken.

Ken's main hobby is playing bass in a Southern Rock/Blues group that practices regularly and occasionally plays for audiences. He is also active in his church, Somerset Presbyterian, where he serves as a choir member, a church elder and a member of the Building and Grounds Committee. Ken enjoys spending time with his family and working around their home.

Shop Stats

Name: Hansen Automotive, LLC
Location: Somerset, N.J.
Number of employees: 1 full time, 1 part time
Square footage: 2,100
What Hansen Likes Best: “I like the flexibility of being self-employed. Professionally, I like the ability to diagnose and repair complex vehicle problems in a reasonable amount of time.” - Ken Hansen, AAM


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