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How to Make Your Auto Repair Business More Profitable
by Joseph Brady
May 23, 2022

Running a successful auto repair business has many layers and knowing the nuances can help boost business. Some auto repair shops are flooded with vehicles coming in for service, yet they don't see profitability because of inefficient processes. In other cases, there might be excellent services and process in place, but they might not have enough customers. A perfect balance between all parts of the business is essential for success. 

Here are some ways that auto repair shops can accelerate business and take their business into the next gear:

Charge flat fees for routine services, like monthly car washes or maintenance, will attract more customers to come back to your shop.

Be conscious of labor costs. So many businesses fail because of inefficient labor management. Choose your staff carefully, and make sure they are well-trained before they start to work. One good staff member is worth two bad ones. Don’t be tempted to recruit novices to your team only because they are ready to work for less money.

Automate your day-to-day processes to improve speed, efficiency, and profitability of your business. Use auto repair-related tools and software that will best suit your business. This will give you more time to improve your business in other ways. 

Reward loyal customers by gifting them discount vouchers on special days like Christmas or spring break. Rewards show that you value them and they might become your loyal customers.

Provide a guarantee for your service as a way of building trust with your clients. Guarantees also mean that you are confident in your skills.

Have a digital and social presence to expand your brand. Actively participate in review sites and discussion forums Try writing a vehicle advice blog.

Develop customer referral program which will help accelerate word of mouth marketing. You can reward your customers with a discount on the next service. 

Become a female-friendly auto repair shop. The auto-repair industry is male-dominant, and female customers can be reluctant to take their vehicles for service. You can show that your team is trained to communicate repair issues in layman’s terms. Set coffee tables with magazines and play area for kids on the waiting lounge to make your female customers comfortable.

Have an alliance with insurance companies to become their preferred auto repair shop when a damaged vehicle comes for an insurance claim. This will be a good source of stable income.

Best Practices for Your Shop

Running a successful business requires a lot of discipline. You can save money when your business has a structure and process flow. Here are a few best practices followed by successful businesses.

Set a detailed goal, not a vision: Be futuristic and realistic. You might have started your business with a goal, but be flexible enough to alter it, if required. Have very short-term plans to reach your ultimate goal.

Prioritize: A big part of planning is prioritization. Prioritize your work and choose the most energetic time of your day to do important jobs. Teach your team to plan their day’s work for maximum efficiency.

Get External Help: Don’t overestimate your business capabilities. Get part-time mechanics or borrow machinery during peak times. This will remove bottlenecks without permanent investments like new machines or full-time staff. If you need money to obtain these resources, look into auto-repair loans; some recommended funding services include Reliant Funding, OnDeck, and National Funding. Plan your monthly schedules to find you can use external resources.

Make data-driven decisions: Data is king in today’s world. Meticulously maintain records of all services, customer data, and vehicle data. Analyze the data and generate comprehensive reports. This will aid you in making informed decisions for your future business models.

Final Thoughts

Running a business comes with its share of sleepless nights. Making profits does not come easy. Structure your business in a way that will take you in the path of long-term success.

Keep looking out for innovative ways in which the industry is trying to grow.

Similarly, make it a point to implement the above tips that are most suitable for your business. You can get the best results with consistent efforts, but be open enough to change your route when needed.

About the author
Joseph Brady
Joseph Brady is Senior Director of Digital Marketing for Reliant Funding, a provider of short-term working capital to small and mid-sized businesses nationwide.
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