Difm or Diy
I would have preferred a third option in the discussion board question, a DIFM and DIY option together and I would have definitely selected this option. I believe Auto-Mart would have benefited the most if it had the enough resources and finances to adopt that third option. The auto repair market has a lot of competition, so Auto-Mart could target both consumers.
Having a hassle free auto repair shop and a fully packed parts store will enable Auto-Mart to offer a wide range of customers for repairs and parts.
Moreover, customers will have the ability to choose the best parts and have them installed at Auto-Mart; thus Auto-Mart “will kill two birds in one stone”. But since we are asked to choose only option, I would suggest that Auto-Mart should emphasis its business on the DIFM. According to Ags company, the NPD report concluded that “68% OF U. S. CONSUMERS PREFER DIFM TO DIY” in the auto service industry (2012). It is mainly because people need to maintain their car in its best order to prolong its life span, this makes absolute sense.
We use our car daily for the longest possible time, and we have spent a descent amount of cash , so why risk doing a repair service ourselves when we are able to get a trustworthy professional technician to the job. Additionally, most people might not have the free time to do a project themselves, and even if they did it might end up costing them the same if they don’t have right equipment for the job. Therefore Auto-Mart best business emphasis should be a DIFM type of business.
A “do-it-yourself” business will cater for customers who shop for parts and accessories, and tend to install the products themselves. It is basically for the customers who have the time and skills to complete many projects. Some stores like Home Depot have an “our hands-on workshops” and “1-2-3 books” to provide the “do it yourself” customers with the skills and expectations needed to complete many projects around their homes (Home Depot, 2011).
Furthermore, many televisions shows like Martha Stewarts have portrayed the some DIY project as a fun and entertaining; thus this new trend is evolving. The advantages of this type of business I believe will enable the business to do its job without having to pay extra fees. No workers to provide a service, a small shop to display the parts, and having the ability to allocate some of the profits to open several new locations.
Usually a business grows when it translates its customers’ needs and add these opportunities to its company, a “do- it –yourself” business can’t expand its service other than expanding its products and to new locations. It is kind of limited which I believe is a disadvantage. But to the willing customers it will give them the knowledge and education to do things with their hands, and this education goes a long way; in the future that customer will be able to fix and repair what is needed in a shorter and cost effective way.
As well as the feeling of accomplishment, saving money, and feeling in control. The “do-it-for-me” business will cater for customers who don’t have the time, energy, skill, or even the temperament to do the job. This business will actually do the job for the customer but for an extra fee, that some customers are willing to pay in return for a job well done, time saved, less frustration, and the guarantee that some businesses tend to give for the service provided.
The advantages of the “do-it-for-me” business will allow the business to attract and maintain a loyal customer base which is vital for any growing business. The business will be able to profit more due to the extra fees for labor , and will probably be able to convince its customers into doing new repairs that will add up to their profit. A “do-it-for-me” business should gain the trust of its customers, or else they will lose their customer to a different business or to the DIY method.
Thus a huge disadvantage for a new established business that needs to build its reputation, through marketing and advertising. The other disadvantage or challenge a DIFM business will face is the huge costs it will incur; having labor costs that will only increase for a quicker service, costs of equipment to get the job done, a fairly large working space area, and after sales problem to deal with. But once established and running, the DIFM will generate more money than a DIY business for the auto service industry.
Therefore, a DIFM business might be the right emphasis to implement. Do it yourself examples: •Super markets where you buy your groceries and cook your own meal. •Canadian Tire/ Home Depot/ Ikea •DIY Drones •Zellers •Wal-Mart Do it for me examples: is more profitable due to the wide range opportunity of these types of stores or businesses can benefit from a customer. •Restaurants where you order, eat, and enjoy! •Canadian Tire / Home Depot/ Ikea( for an extra fee you get the service) •Canada Wide Plumbing & Mechanical Services Inc. Paradise Pools Canada •Car wash Reference: AGS Company. (2012). 68% of U. S. consumers prefer DIFM to DIY, according to NDP. Retrieved from AGS Company website: http://www. agscompany. com/news/369-68-of-us-consumers-prefer-difm-to-diy-according-to-npd Hal Dean, D. (2010). UNDERSTANDING THE DO-IT-YOURSELF CONSUMER. Journal Of International Business Disciplines, 5(1), 42-54. Miller, R. K. , & Washington, K. D. (2007). CHAPTER 13: DO-IT-YOURSELF PROJECTS. In, Leisure Market Research Handbook (pp. 83-85). Richard K. Miller & Associates. )