Many auto shops fail each year, and it’s often in part to poor management practices. Poor management can make or break any business, and it’s especially true in an industry that requires both specialized skills and profitability knowledge. By making small changes to the way you manage your shop, you’ll be able to run your shop more efficiently and watch your bottom line improve.
Hire Experienced Technicians and Service Writers
If you’re concerned about costs, you may be tempted to hire less experienced employees to save money on payroll. The problem is, skilled employees are well worth the money. Mistakes in auto repair can be more than just an inconvenience for the customer – it could be dangerous. Hiring mechanics with experience gives you and your customers peace of mind, while hiring a pro service writer can make a significant difference in revenue. Before hiring staff, give them a working interview where you can see a sample of their performance first-hand. Good employees are the foundation of your business, so choose the right ones!
Stock Only What You Need
Traditional inventory management has become a thing of the past for many shops. There are significantly more types of vehicles on the road today, which means more specialized parts than ever before. To add to the problem, parts have become more expensive. It may have made sense to have a full inventory of parts at one time, but it doesn’t anymore. Stocking seldom-used parts, so you have them when you need them, can contribute to wasted money sitting on the shelf.
On the other hand, stocking common parts you use regularly is convenient and saves time for you and your customers. But, how do you know which parts are worth keeping in stock? By using our auto shop software, you can generate a report on individual parts to see which ones are most often used for repairs. This will allow you to determine which parts you use most frequently and are worth keeping in stock.
Reduce Employee Turnover
Reliability and consistency are two critical factors that customers look for when choosing a shop for their repairs. People like to know what to expect, and they want to have confidence that they can rely on you to get the job done right. However, it’s difficult to offer a consistent, reliable service when you have a revolving door of employees. It takes time to train new employees. Even if they’ve worked in other automotive shops, there are differences in policies, procedures, even tools. Inexperienced employees can lead to unintentional shoddy service. Additionally, customers are less likely to have confidence and trust in your shop if you consistently have a new face behind the counter.
You can reduce employee turnover by treating your employees well. Provide them with good benefits and pay them competitively. Your employees will have better morale, which contributes to better service overall. Likewise, your customers will feel comfortable visiting your shop when they see familiar faces working on their vehicle.
Use Auto Shop Management Software
Using ProfitBoost software makes managing your auto shop easy. Our auto repair shop management software is designed to help you manage all aspects of your business, from entering customer information to taking payments. You can track all aspects of your shop’s performance with the built-in profitability reports, which allows you to see what’s working – and what needs to be improved. Digital vehicle inspections, labor guides, customer communication, credit card processing, ordering parts, and pricing are all built into the system, streamlining your shop’s daily tasks. Since our software is cloud-based, there’s no need for additional equipment or concerns over losing data if your system crashes. All information is safe and on the cloud. Try ProfitBoost free for 30 days and see how it helps improve your shops’ daily processes!