Bookmark and Share

 

Top 10 business practices that drive auto repair shops out of business 10) Not insisting the customer go for a test drive before you do ANY work on their vehicle. This protects the shop owner from problems undetected by the customer before work is done on the vehicle. By driving the vehicle before work is started, vibrations and noise issues can be pointed out as well as dash warning lights that may be on. Or safety items such as brakes or loose steering may be brought to the customer’s attention before your shop touches the vehicle. 9) A repair shop not having a computer data base for information with Technical Service Bulletins and current repair procedures. Books can’t keep up with the constant change of information. The internet is the best tool in the technician’s tool box. 8) Not providing FREE continuing education for their technicians to keep up with the changing technologies. 7) Not making it mandatory that all technicians become ASE Master Certified. As well as ASE Certified Service Advisors to handle customers needs. 6) Not completely inspecting all vehicles that come into the repair shop, missing opportunities for up sales. Possibly opening you shop up to liability issues of negligence in case of an accident after the vehicle leaves your shop. This MAY be grounds for a lawsuit by failing to spot safety problems with vehicles that cause death, serious bodily injury or property damage. 5) Not being involved in automotive trade organizations and local community organizations. Not having input on industry changes that can affect how your business is run. 4) Not actively educating your customers and the driving public about recommended maintenance and the correct repair procedures required on today’s cars. This can be done by speaking at local service clubs or on community service programs on TV or radio. 3) Using the cheapest parts/materials available that may not meet Original Equipment Manufactures high standards, just to be “cheaper” than your fellow shop owners. 2) Allowing the customer to tell you “patch up” the vehicle. No good deed goes unpunished, the vehicle repair MAY fail, then the customer will insist you fix it for free. Customers never like the cost of the repair no matter how much it costs. So fix it right, and charge a price that is profitable to the repair shop. 1) And the Number one reason Auto Repair shops go out of business is: NOT CHARGING ENOUGH TO STAY IN BUSINESS. An auto repair shop should make a minimum of 10% Net profit after payroll, parts and taxes are paid. It is the 10% net profit that allows the repair shop to take care of warranty issues and purchase new equipment and training for their staff. The average independent auto repair shop only nets only 2 to 3%. Automotive technology is changing daily in our industry. My question to you the shop owner is, “Are you ready to change the way you run your shop?” If not, then your customer will go elsewhere for their vehicle repair/maintenance needs when they buy that newer vehicle.

Top 10 business practices that drive auto repair shops out of business 10) Not insisting the customer go for a test drive before you do ANY work on their vehicle. This protects the shop owner from problems undetected by the customer before work is done on the vehicle. By driving the vehicle before work is started, vibrations and noise issues can be pointed out as well as dash warning lights that may be on. Or safety items such as brakes or loose steering may be brought to the customer’s attention before your shop touches the vehicle. 9) A repair shop not having a computer data base for information with Technical Service Bulletins and current repair procedures. Books can’t keep up with the constant change of information. The internet is the best tool in the technician’s tool box. 8) Not providing FREE continuing education for their technicians to keep up with the changing technologies. 7) Not making it mandatory that all technicians become ASE Master Certified. As well as ASE Certified Service Advisors to handle customers needs. 6) Not completely inspecting all vehicles that come into the repair shop, missing opportunities for up sales. Possibly opening you shop up to liability issues of negligence in case of an accident after the vehicle leaves your shop. This MAY be grounds for a lawsuit by failing to spot safety problems with vehicles that cause death, serious bodily injury or property damage. 5) Not being involved in automotive trade organizations and local community organizations. Not having input on industry changes that can affect how your business is run. 4) Not actively educating your customers and the driving public about recommended maintenance and the correct repair procedures required on today’s cars. This can be done by speaking at local service clubs or on community service programs on TV or radio. 3) Using the cheapest parts/materials available that may not meet Original Equipment Manufactures high standards, just to be “cheaper” than your fellow shop owners. 2) Allowing the customer to tell you “patch up” the vehicle. No good deed goes unpunished, the vehicle repair MAY fail, then the customer will insist you fix it for free. Customers never like the cost of the repair no matter how much it costs. So fix it right, and charge a price that is profitable to the repair shop. 1) And the Number one reason Auto Repair shops go out of business is: NOT CHARGING ENOUGH TO STAY IN BUSINESS. An auto repair shop should make a minimum of 10% Net profit after payroll, parts and taxes are paid. It is the 10% net profit that allows the repair shop to take care of warranty issues and purchase new equipment and training for their staff. The average independent auto repair shop only nets only 2 to 3%. Automotive technology is changing daily in our industry. My question to you the shop owner is, “Are you ready to change the way you run your shop?” If not, then your customer will go elsewhere for their vehicle repair/maintenance needs when they buy that newer vehicle.

 

  Return to frequently asked questions

 

 

Home :: Show :: Archives :: Links :: Contacts :: Login

Ask The Master Auto Technician © 2009