Are you thinking about starting your own auto repair shop in your community? Is there an opportunity for you to take over an existing repair shop near you? If so, then you need to learn how to run an auto repair shop the right way.
As you’ve probably noticed, there are several models that you can use. Some run a franchise, while others create their own brand and pop-up shop. That said, the fundamental principles of running an auto shop always stay the same.
See below for an in-depth guide explaining several key tips you should follow as you start the process of managing your own auto repair shop.
1. Focus on the Customer Experience
Make no mistake about it, running an auto repair shop will be overwhelming at times. There are several moving parts to think about on top of trying to fix your customer’s vehicles.
You may have a million questions swirling around in your head. How can I implement an effective marketing strategy? Do I really have to build an online brand? How can I reach new customers? How do I build a loyal customer base?
Take a deep breath… you’ve got this! The good news is that all of these questions are essentially focused on one aspect: providing a great experience for your customers.
Contrary to popular belief, that experience doesn’t start when they walk in the door for the first time. It starts way before that when they first come across your company.
Perhaps they came across a blog article on your website about the “5 Reasons an Engine Light Comes on”. Maybe your shop popped up during a Google search for “car shops near me”.
Whatever the case, you should always focus on the entire customer experience. You might consider outsourcing your marketing needs to a digital marketing agency to help you build a customer experience that ties in perfectly with your in-store service.
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2. Establish an Efficient Business Management Routine
Your killer marketing plan will get them in the door, but your level of service will dictate whether or not they ever return.
Here’s the good news: all your customers are looking for is an auto repair shop they can trust. If you provide that for them, they aren’t going anywhere. They don’t want to test out a bunch of other shops if you treat them right.
A big part of that is establishing a constructive business management routine. It helps you prioritize communication with your clients, stay on top of your finances, keeping an efficient inventory, and so much more.
We know that sounds like a lot, but there are ways to streamline all of these processes. For example, you can invest in an auto shop business management software from Tekmetric.com.
It can help you manage your staff, your customer base, and your finances simultaneously. It can help you turn a weakness into your business’s greatest strength.
For example, if you aren’t good at managing finances, the shop management software can help you track your expenses, analyze your average repair orders, manage your profit margins, keep track of labor hours, and so on.
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3. Offer Discounts and Warranties
Customers are getting smarter and smarter by the day. They know the difference between trustworthy auto repair shops and those that are looking to make a quick buck.
As the auto shop manager/owner, you want to make it easier and easier for customers to say “yes” to your service. The best two ways to do that? offer them discounts and establish firm warranties.
The discounts will direct them to your shop, rather than your competitors. Even offering a lowered rate on checkups can attract new and existing customers to schedule an appointment.
The warranty is what will give your customers confidence in your services. It serves as a guarantee and shows that you pride yourself on high-quality service.
Be sure to set the terms of the warranty. How long is it good for? What types of repairs will you offer a warranty on? How can the customer redeem it? How quickly can they get back to redeem it?
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4. Invest in Your Staff
It isn’t hard to find knowledgeable mechanics and technicians, but the auto repair industry has a higher rate of workplace theft and crime.
While you can’t ever fully prevent it, there are steps you can take to ensure you’re hiring the right people. Establish a firm background screening process and reach out to the references they place on their resumes.
Don’t stop there! Establish a training and accountability program. Your business management software can also help you keep a close eye on profits and inventory, alerting you to any suspicious activity.
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5. Create a Community
Everyone aspires to have a car mechanic that knows them by name and treats them right. Think of it this way: your service can offer them peace of mind during high-stress situations (when their car isn’t working properly).
Building a loyal customer base is important. Statistics show that 67-percent of your profits will come from your current customers, not new customers.
Reward your loyal customers. Throw them a discount. Add in a few inclusive services, such as topping off their wiper fluid, checking their tire pressure, or not charging them for the lowest-costing repair on a high-priced bill.
They’ll return the favor by referring people to your business and going to you for all their issues in the future.
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How to Run an Auto Repair Shop: Do Right By People
It’s the oldest trick in the book, but the key on how to run an auto repair shop efficiently is doing right by your customers, your employees, and yourself.
Take the time to build a business plan first. Find a free template online, then fill out the information so that you can learn more about your target market.
Be sure to browse our website for more articles on auto repair shops, as well as many other helpful topics.
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