How to Increase Profit in your Auto Repair Workshop

If you run a car repair workshop and want it to be successful, there are many aspects you must keep in your sight. While I have generally covered them in some of my previous articles, here we will focus on how to increase the profits of your operation. It is no secret that delivering a great service will not ensure success by itself. Although your crew might solve even the most complex issues, the workshop will go bust eventually if the whole thing does not earn enough money. Raising prices to improve money income is one of the options, but this will make your workshop less competitive. Instead, you should consider ways to improve your business. In this article, we will cover several useful tips that can increase profits in your workshop.

For a start, let’s cover the basics: more cars equals more money. As keeping your bays filled at all time boost profits like nothing else, increasing the number of cars that go through your workshop should be your primary focus. To make this possible, an overall repair process needs to be as short as possible. However, achieving this can be quite tricky, as your choices are limited. Naturally, doing this at the expense of quality is anything but a good idea. On the other hand, pushing your technicians too hard will have a negative impact in the long run, as dissatisfaction and fatigue will take its toll. In the end, your only options are to optimise the workflow and to enable your technicians to work more efficiently. There are many ways to do this, varying from staff training to specialised tools and equipment. Check out the article on running workshop effectively for more information about this subject.

Perform a detailed multi-point inspection on every car that goes into your workshop. In most cases, customers bring cars into the workshop either for regular maintenance or if there is an apparent issue. However, that does not mean that there are no other potential issues that are yet to reveal themselves. This is where a systematic inspection and analysis comes in handy, as it reveals these 'hidden' problems. Dealing with them before they get out of hand not only will generate additional income, but it will also raise the overall credibility of your workshop.

Use latest technology and software solutions which will work instead of you. Daily workshop routines have many time-consuming tasks that can be automated using appropriate software. Relieved from unnecessary loads, you and your staff will work faster and more effectively. This will leave you more time to focus on the important jobs. The same goes for communication with customers, as using e-mail, SMS or instant messaging services can save you a lot of time spent on phone conversations.

Offer additional services that can be performed while the car is in the shop, as this is another great way to increase your profits. However, there are a couple of things to consider. One of them is to focus on services that are simple and require little time or special tools. Another aspect is to push services that are visually easy to spot. For example, a customer might leave a car in the shop for an oil change and will pick it up tomorrow. Although this job will take only an hour or two, that car will still be around for the rest of the day. This can be a good opportunity to restore faded headlights or to clean dirty interior, and this is where your workshop steps in.

Consider expanding scope of work your workshop can do by introducing new services. You might think this is something associated with equipment and training related expenses and complications. However, there are many services that can be easily and inexpensively integrated into your daily workshop routine. For instance, offering windshield replacement requires only a few new tools and some simple training. Not only would this bring an extra income, but it can also bring new customers. This is because car owners prefer workshops that can cover all their repair and maintenance needs.

With parts and assemblies being a considerable part in overall repair expenses, there is a lot of room for increasing profits by getting parts at prices as low as possible. This is best done by having a single supplier, as you can use a bulk volume to negotiate a good discount. Still, avoid cheap aftermarket parts. As they are usually low quality items that don't last long, using them will have a negative impact on customer satisfaction. Instead, find a parts store that offers good quality parts combined with low price and try to get a deal. And if it is a local store that offers a daily delivery service, it is even better. Having parts delivered in your workshop will save your time, as frequent trips down the parts store are not required.

While at this subject, we must not forget aftermarket parts and additional equipment. Although a lot of money lies within it, this is a market niche often over-sighted by workshop managers. It may seem that with E-bay, Amazon and various online shops, nobody would buy such parts and accessories in the workshop. Still, there is a long way between buying a part and actually installing it on the vehicle. This is where your workshop might find a market share for increasing profits. However, make sure to offer parts that your technicians can install quickly and easily, and that apply to cars frequent in your area.

A mobile technician that goes directly to the customer, either at home or at work, can be advantageous in several ways. If the problem is simple, he might solve them on-site by performing diagnosis and a simple repair. If the problem is more complex, there are good chances that the client will bring the car into your workshop. Naturally, both of these options bring in extra income. In the end, the biggest advantage is an upper hand that you have over the competition. As many car owners don't have time to visit the workshop, this added flexibility is something that they could find very useful.

Lastly, but probably most importantly, keep yourself informed. With a margin between success and failure so thin, being at the information cutting edge is not an option. There are several things to consider here. One of them is having steady and reliable sources of technical information, which will keep you updated on the latest trends in the industry, service bulletins and similar. Passing out this information to your technicians will help them to track down problems quicker and more accurately. Secondly, you need to be familiar with the surrounding market. Imitating others will not bring much success. To find new opportunities and niches, you should try a different approach and think out of the box. Finally, keep your eyes open for advanced training for your staff to upgrade their knowledge and skills. It may sound like an unnecessary expense for your business, but it will definitely advance your workshop in the long run.

Conclusion

As you have seen in this article, there are various ways to increase profits in your workshop.

You can either minimise workshop expenses, optimise workflow to achieve faster turnarounds or introduce additional services for extra money income. Or you can combine all of them for maximum effect. In the end, however, it all comes down to how decided you are in gaining more profits for your auto repair business.

Still unsure where to start? Visit Hella Gutmann at Automechanika Dubai from 10th to 12th June 2019 and find out how you can save time and operational costs. Learn more here: https://www.hellagutmann-me.com/.