Our last blog discussed looking at how your shop is doing using new eyes. After a complete evaluation of your shop operations you should have a good idea of what you would like to improve. Once that is decided, you will need an organized actionable plan to achieve the results you want.
It is a fact that if you can't measure it, you can't manage it, so let's begin with the facts. Many shops feel the primary challenge they face is their car count is too low. If I just had more cars, I would have more business, and so more income. This could be the issue but normally is not. A little closer examination of the facts usually reveals that it's not the car count but not making the cars count. What I'm talking about is the average repair order.
Look at your company history and find out what your average repair order figure is right now. Simply take your gross sales and divide it by the number of repair orders for the same period of time. I recommend looking at the same months from the previous year. For example next month is December, so figure last December, January, and February for your average repair order figures. These numbers are a good starting point because shops see the same trends thru the year.
Next, set goals that are realistic. For example: If your average repair order is $250, you should start with a 20% improvement as your goal. You need to ask yourself, what do I need to do to increase my average repair order to about $300 per car?
Now that we have decided what needs to be done, in the next Blog we will develop the nuts & bolts program that will get that 20% increase. A 20% increase in gross income would be a welcome improvement in any business. Your clients will be better served, your employees will benefit, and you will ACCELERATE YOUR SUCCESS !!!