The average cost
to fix a check-engine related problem was $367.84 nationwide last year
according to a recent CNBC study. New Jersey drivers paid even where
the average cost for a repair of $392.99 was the nation's highest. At
the same time according to an IBISWorld industry report, the last five years overall auto repair industry revenue has declined at an annual rate of 2 percent to $30.3 billion.
An industry can respond in any combination of three ways: raise
prices, and risk losing customer base to do-it-yourselfers or
independent mechanics, do nothing (yes, that's very much an option), or
somehow cut costs. A technologically antiquated, hodgepodge network of
suppliers, carriers, and service points, the automotive repair industry
is ripe with opportunity for cost cutting. New
operational efficiencies through social media, cloud computing, and
mobile devices can simultaneously cut costs, drive greater throughput,
and produce greater customer satisfaction.
Otozip knows this. Demonstrating their solution at Tech Crunch Disrupt this week, the company hopes to establish a new, nationally networked scheduling and supply
system that will have mechanics spending more time in the auto bays,
and less time on the phone. Otozip positions itself as a completely
integrated CRM and marketing system uniquely designed to make it easy
for consumers to find reliable, nearby automotive service centers.
Technorati was granted a product preview where learned more about
the company's ambitions In a written interview with the company's
founder and CEO, Stewart Padveen.
Andre Bourque: Tell me about the real market opportunity here.
Stewart Padveen: There are over 400,000 service
centers in the United States alone, yet over 90% of them are still
virtually invisible online. Independent service centers, franchises and
dealers face increased competition from each other. Empty bays cost
money. While dealers often have greater financial resources than
independent service centers, the internet is leveling the playing field.
Furthermore, over 1.2 billion automotive service appointments are
booked every year, most still by phone. This steals valuable time from
service center personnel and often leads to “booking frustration” among
customers who have to wait on hold and negotiate convenient times to
drop off their vehicle.
Bourque: So what's Otozip plan to do about it?
Padveen: We're an entirely brand new marketing channel for the automotive service industry.
It’s a completely integrated and incredibly easy-to-use CRM and
marketing system uniquely designed to make it easy for consumers to find
reliable, nearby automotive service centers and helps service centers fill their slow appointment times, manage appointments and increase customer retention.
Bourque: What was your "ah-ha" moment for the product?
Padveen: After going back and forth with my automotive
service center for three days (for real!) to book a routine oil change,
getting transferred to voicemail, having to call during the service
center’s open hours, negotiating for a convenient appointment time, only
to show up and find out the service center forgot to schedule me
because their “pen and paper” system was a mess, I decided there needs
to be a better way. I wanted to be able to find reliable, nearby service
centers online and book an appointment instantly – 24/7. I also wanted
to see prices and real reviews from actual customers.
Bourque: What do you want investors, disruptors, and technology enthusiasts to know about Otozip?
