COVID-19: MOT feast and famine
In this article: COVID-19’s economic impact is still unclear and the MOT sector needs to be adaptable, preparing for a boom and bust scenario as we head towards 2021
After the battering the economy has taken during the COVID-19 pandemic, there are signs that the recovery could be faster than many expect – although only time will tell if we are either on the V-shaped trajectory or will suffer another dip before climbing back up again.
Part of the upward movement is due to a back log of tests injecting much needed cash flow to the sector and a push away from using public transport, not forgetting a surge in uptake of final mile solutions. But everything shows the public our keen to travel and the preferred choice is the private motor car. But the MOT trade needs to be wary.
The current boom will turn to bust when the legacy of the decision to extend tests will come back to bite the sector: the government forecast for testing demand is to simply sink into a hole shortly after Easter 2021.
Prepare for the unknown
Workshops currently operating at a reduced capacity need to start preparing for the predicted rise in MOT testing requirements between September and November. October is predicted to be the busiest month. Bringing routine maintenance forward, calibrations and staff holidays squared away in the summer months will best prepare everyone for the busy period ahead.
Communicating your plan with your team, opening discussions for how to best make use of this time will help you organise a cohesive strategy to aid in financial recovery and preparation for any potential second wave.
As demand for MOTs ebbs and flows testing centres need to communicate surges in demand to motorists and urge them to come in at quieter times. This may result in changing in pricing structures, giving rise to peak and off-peak seasons detested by holiday makers with school aged children. But for workshops that usually charge the recommended testing fee, offering a discount to tempt cost savvy motorists into low demand times may be a sound business strategy.
Hiking prices could prove a public relation’s fail for those centres that habitually charge low prices and have done for years to a loyal customer base.
As demand for MOTs ebbs and flows testing centres need to communicate surges in demand to motorists and urge them to come in at quieter times. This may result in changing in pricing structures, giving rise to peak and off-peak seasons detested by holiday makers with school aged children. But for workshops that usually charge the recommended testing fee, offering a discount to tempt cost savvy motorists into low demand times may be a sound business strategy.
10 tips for managing business flow
- Get your maintenance, repairs and holidays out of the way by the end of August
- Get your training and administration up to date
- Signage and PPE should be in place by now and a procedure to check them is appropriate
- Communicate with your customers, take bookings and consider a text reminder service to notify of the appointment a day or two beforehand
- Consider an online, pre-booking service – trialling it in August can be the beta test to make sure it fits your business needs before any surge happens
- Get your consumable and high volume, low value item orders in before September
- Reinforce your coronavirus procedures to your team and customers
- Plan your marketing strategy; consider a scheduled, digital solution or buy in a service
- Keep your distance – we aren’t out of the pandemic yet, so you have to act appropriately – this can be difficult to remember when you become busy
- Know COVID-19 symptoms, this information may be required for track and trace should staff or customers show signs of illness