The best way for auto repair shops to make money refers to any necessary mechanical and electrical repairs. For example, you would take your car to an auto repair shop to change the oil, repair a broken taillight, or repair a broken transmission. Anything to do with the “innards” and internal components of the car is done in an auto repair shop.
A well-run auto repair shop to make money that has established itself in the marketplace and operates under a reputable brand can reasonably expect to make more than $ 800,000 in gross sales a year, perhaps even as high as a million. The best-performing auto repair shops can generate more than $ 2 million in gross sales in a single year.
That is a lot of money. But how do auto repair shops make all that money? auto repair shops to make money businesses make money by taking customers’ vehicles, testing them, replacing non-working parts, and sending customers on their merry way. Running a successful business takes a lot of discipline. You can set aside cash when your business has a design and interaction stream.
Do you need to increase the profits of your auto repair shop? While it takes a lot of discipline and patience, your store can be more profitable with just a few changes. Here are ways to cut costs and increase revenue that impacts your bottom line.
List of Ways to Increase Profits for auto repair shops
Here is a list of Ways to Increase Profits for auto repair shops to make money.
- Take a disciplined approach to your finances
- Schedule appointments
- Invest in current customers (and employees)
- Reduce fees on card transactions
- Generate new customers with local coupon advertising
- Technician efficiency
So let’s start to learn it in detail…
Take a disciplined approach to your finances
No measure of tips or insider facts will build your benefits if you don’t treat your accounts with discipline. Getting more customers and increasing margins will be moot if you spend all that extra income right away. To increase the profits of your auto repair shop, follow these rules:
Reduce expenses. It never hurts to review your expenses and cut back on additional services that don’t contribute to your bottom line. For example, some store owners cut their monthly garbage collection bill in half by switching to a bi-weekly schedule or switching to a smaller garbage container.
Other store owners have reduced off-site storage costs by selling old items. And still, others have cut their expenses by matching the price of their laundry services. Save, save, save. The past 20 years have been challenging for small businesses, from the 2008 financial crisis to the Covid-19 pandemic.
We have all learned that it is crucial to make hay while the sun is shining! Plus, saving money every month is a foolproof long-term plan that will prepare you in the event of a disaster.
Practice patience. Increasing profits is a long-term game that requires discipline and patience. It can be incredibly tempting to buy that new TV for the waiting room or buy more flashy uniforms for your technicians. Those purchases can add great convenience and service for your customers just make sure you have the money before investing.
Schedule appointments: auto repair shops to make money
Reducing downtime in the garage is key to increasing profitability. You are already paying for the lights to be on all day, so if you don’t have cars in the bays, you are spending money without receiving anything in return.
Scheduling repair appointments helps control labor costs. Make more accurate predictions of who should be in the shop and when, order parts ahead of time, and control your work mix.
One way to schedule appointments is to send direct mail postcards reminding customers when the next oil change is. Also, you can add a link to a web page where clients can schedule their appointment online.
Invest in current customers (and employees)
It is more expensive to attract new customers than current ones. So while you need a sound blend of new and returning clients, you can build your auto mechanics shop’s benefits by zeroing in your publicizing on recurrent buys.
One of the best sources of new customers is current ones! Promote a referral program for your auto body repairs shop that rewards customers with discounts or gifts.
Reduce fees on card transactions
Are Credit Card Transaction Fees Affecting Your Income? Spend some time looking for small business services. Instead of paying a flat fee for debit and credit transactions, services like Transnational will charge the wholesale cost of operating a card plus a flexible processing fee.
This pricing structure takes into account the type of card (debit vs. credit) and generates savings for your auto repair shop.
Generate new customers with local coupon advertising
Is it conceivable to burn through cash on publicizing and increment benefits simultaneously? Absolutely! The key is to find an advertising program that is inexpensive and incredibly effective.
A program like Register Tapes Unlimited on Indoor Media can bring tens of thousands of dollars in profit to your business year after year. The RTUI program, which targets shoppers at your local supermarket, puts your auto repair shop in the hands of qualified local car owners.
Technician efficiency: auto repair shops to make money
Another way that auto shop management software can help increase your business profits is by improving the efficiency of your technicians. Automated shop software allows technicians to log in, evaluate needed repairs, watch for customer approval, and get to work quickly once approval is received. Less time is wasted going back and forth between offices and bays.
As a store owner, you can run technical efficiency reports that show you how many actual hours, compared to book hours, each job took. If your team is each doing 60 hours of bookable work in a 40-hour workweek, you are winning, if they are only doing 25 hours of bookable time in a 40-hour week, then you should review your work practices.
Technician efficiency affects the profitability of every auto repair shop.
Conclusion: auto repair shops to make money
Maintaining a business accompanies a lot of restless evenings. Making a profit is not easy. Structure your business in a way that puts you on the path to long-term success. Keep looking for innovative ways the industry is trying to grow.