Want to improve your shop’s overall performance? Implementing auto repair shop best practices might be the answer. Best practices can cover all aspects of your business like customer service, human resources, sales, marketing, etc.
In this blog, however, we will discuss five broad best practices for auto repair shops that can improve shop operations and boost profitability.
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Create and implement standard operating procedures
Do you currently have a plan in your head for how the shop should run? You might have decided how to greet customers, how to carry out repairs, how to clean up, etc. However, if your employees don’t know about these plans and methods, you will never be able to improve shop efficiency.
So make time to put together a game plan for your shop operations. You can start by writing down what you already do and brainstorm what you can improve. Be as detailed as possible in your description of specific tasks. You can also involve your employees in the process.
We know this sounds like a difficult and time consuming task, but the results will make you wonder what you ever did without standard operating procedures (SOPs).
Once you have a set of SOPs written up, start implementing them. Employees in your shop might be resistant to change so it’s important to audit the implementation of the SOPs. It helps to make sure that each employee is aware of the SOPs and their benefits, and agrees to implement them to the best of their abilities.
Track key performance indicators
Want to be a super successful shop? Set and track key performance indicators (KPIs) for your business. There is an old saying ‘you cannot improve what you do not measure’. This still stands true today. If you forgo tracking KPIs for your shop, you won’t be able to make informed business decisions and steer your shop into the right direction.
However, tracking and analyzing KPIs can quickly become a rabbit hole. Don’t get overwhelmed by taking on too much. Pick three to five KPIs that drive the largest impact to your business and focus on them.
The ultimate KPI for most shops is gross profit margin. Another important KPI is the average repair dollars per repair order. Other common KPIs include labor margin, car count and touch time.
Use shop management software
Want to get on par or better yet ahead of your competitors? Invest in an auto repair shop management software. Managing a shop has become more challenging thanks to advancements in automotive technology, more and more tech savvy customers and technology adoption across industries.
A good shop management solution will help you run shop daily operations more efficiently, grow your business and build customer trust.
It’s important to choose a system that meets the needs of a modern automotive repair shop. Look for the following features as you make your choice:
- Digital vehicle inspections
- Online parts ordering
- Estimate and invoice generation
- Customer appointment scheduling
- Operational workflow solutions
- Digital marketing
- Reporting and accounting
Want to learn more about the value of a shop management software? Read this blog.
Reduce employee turnover rate
Technician shortage has been plaguing the auto repair industry for almost thirty years. According to the Technician Supply & Demand Report, the USA will face a shortage of 642,000 technicians by 2024. That’s why it’s important to focus on the comfort of your employees. By doing so, not only will you be able to retain existing employees, but also attract top talent.
Let’s take a look at what you can do to reduce employee turnover:
- Communicate openly
- Offer better pay to match rising inflation
- Implement incentive structures such as bonus plans
- Provide the equipment and tools needed to perform the work
- Offer modern amenities such as air conditioning
- Offer benefits such as health insurance coverage and paid time off
Want more information on the technician shortage? Download the State of Auto Repair Industry Report.
Embrace digital marketing tools
A lot of shops struggle to increase their car count. One of the best ways to attract new customers is to invest in a marketing plan. Nowadays, almost every business can be found online and that’s also where your customers go to look up an auto repair shop. That is why it’s important to embrace digital marketing tools.
What’s more?
Digital marketing can also help you retain existing customers and accelerate revenue growth. Popular digital marketing tools that can impact your bottom line include social media marketing and search engine marketing.
» Looking to transform your shop? Discover how AutoLeap can help.
Closing thoughts
Improving your shop can feel like an uphill climb. You can start small and focus on just one area at a time. We hope this information will help you reach your shop goals faster.
If you need any help, you can reach out to us. AutoLeap offers various features, services and support aligned with these best practices. Afterall, we aim to help auto repair shops across North America supercharge their shop growth.
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