Quantcast
Jump to content


gandgautorepair

Profitability "sweet spot", is there such a thing?

Recommended Posts

Looking forward and thinking about business goals for the future, I'm wondering if there is such a thing as a sales volume, personnel, or facility sweet spot for profitability. I'm in a semi-retirement mode already, so having profits to spend is a priority over simply growing the business for growths sake. I really enjoy being in business and planning and reaching for goals, but wondering about what those goals for the business should be. I've reviewed some industry financial data without any clear conclusions, but I'm wondering what folks here think or have seen or experienced.

A little about where I'm at currently. I started this business from scratch 7 years ago. We currently have 8 employees and did 1.3 in 2017. Any wisdom from you who have been doing this longer?  

  • Like 1

Share this post


Link to post
Share on other sites


We allow visitors to read the first post of each topic. To continue reading responses, you must be signed in.

Edited by tyrguy

Share this post


Link to post
Share on other sites

We allow visitors to read the first post of each topic. To continue reading responses, you must be signed in.

Edited by tyrguy

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Forum Topics

    • Increase auto repair sales by adding to the cart

      Retail stores have known for a long time that adding or increasing the size of shopping carts also increases sales. Consumers may go to the store with a list, but as they pass through the aisles, having a cart makes it easy to add to that list.  While your repair shop does not use shopping cart, the same strategy can used. Every customer that books an appointment as done so with some sort of list; an oil change service, a brake issue, tire rotation, etc.  Through an effective multipoint inspection and looking at service schedules, you can make suggestions to your customers that can add to their cart; essentially increasing sales per vehicle. One last thing: Always make service and repair suggestions to the customer that is in their best interest and have value, and you can’t go wrong.  It’s actually great customer service. 

      By Joe Marconi, in Joe’s Business Tips For Shop Owners

        
      • 0 replies
      • 142 views
    • Article: Challenges Of The Auto Repair Business

      As the auto industry moves on into the modern age, repair centers all around the country are experiencing pressure with the tech world and our world colliding. We are all trailing nationwide franchises and dealerships that have endless resources working at their disposal. For most smaller auto repair businesses there isn’t enough time, money, or energy to attempt to constantly and actively secure the new business. We’re mostly worried about attempting to maintain the existing business we have, which has newer cars and increasing demands. Most of our time is now spent adjusting to the learning curve of advanced vehicle systems. However, that’s just a shop problem. The front office of your shop has its own issues to contend with that didn’t exist 15 years ago. Make no mistake about it, our industry is in the middle of a revolution and with 3D printing knocking at the door… the amount of balls to juggle are going to be considerable and it's all just getting started. Today’s auto repair businesses need to worry about the following: Location – Securing a proper location and the authorization to conduct business there over the long term ensures survival. Tools – Without the proper tools, we just can’t work on today’s vehicles. Training – Without the proper training, we put ourselves and our customers at high risk. Employee Engagement – Keeping your employees as interested in your success as you are is critical to the elements that keep people returning and employees from leaving. Employee Advancement – Providing an environment where employees know they can grow with your business, whether financially or moving up within the organization, is the key to keeping and securing talent. Marketing – This is the most complicated element in today’s world. It involves a mix of a strong web presence, good advertising ethics, social media profile, and following up with customers. Advertising – Can be expensive and very confusing. The best method to start is to get your feet wet with small budgets that keep your name in front of your potential customers, constantly. Software – Without good software, it is difficult to run any business. Good software is and always has been subjective. Our experiences indicate that good software saves you time and builds trust with your customers. Most importantly, it should work for you and not against you. This article originally published in CAR's News Section
      View full article

      By CAR_AutoReports, in AutoShopOwner Articles

      • 0 replies
      • 49 views
    • Business management training

      Have any of you attended classes or seminars put on by a company called ATI automotive training institute ? Was considering signing up for a 1 day class.

      By Bob K, in Workflow Management

      • 9 replies
      • 1,389 views
    • Explode Profits In A Difficult Time...

      Discover The Top 3 Sales Techniques To EXPLODE Profits In Your Auto Repair Shop. CLICK TO REGISTER NOW  

      By Ron Ipach, in Marketing, Advertising, & Promoting

        
      • 0 replies
      • 236 views
    • A FEW QUESTIONS FOR 4 BAY SHOP BUSINESS OWNERS

      How many of you have a four bay shop ? If you do how many techs do you have ? What is your average sales weekly , monthly ? What do you spend in advertising ? What was your sales in 2017 ? I am using this shop as a guide for those who would like to follow and see real time progress. For those interested just answer the questions so you and I can see what your strong points and if and where you may have areas for improvement.   

      By Stevens Automotive Service, in Shop Management Coaching, Business Training, Consulting

        
      • 2 replies
      • 702 views
  • AutoShopOwner Sponsors



×