Quantcast
Jump to content

How to Run a Successful Auto Repair Business


Recommended Posts

I read this article online and decided to repost it to the community.....

 

How to Run a Successful Auto Repair Business

 

By Barb Nefer

 

As long as people rely on cars as their main form of transportation, there will be opportunities for success in the auto repair business. By following some important steps, you can run a successful auto repair business that provides a steady income

 

STEP 1: Decide whether you will open your own auto repair business or whether you will purchase an established business. By purchasing an existing auto repair shop, you will immediately have an appropriate location and equipment, and the experienced employees may choose to stay. If you start from scratch, you will need to find a high-traffic location, purchase or lease the necessary equipment, and hire a new staff of mechanics and other employees.

 

Step 2: State your ethical standards up front. Many customers are leery of auto repair businesses because they have a reputation of making people pay for unnecessary repairs or charging for work that is never performed. Have a statement of ethics printed, and hang it in a prominent place in the customer reception area. The ethics should be centered around being honest with customers, pledging never to overcharge them, and striving for their full satisfaction.

 

Step 3: Offer a guarantee. When a customer is paying for an expensive car repair, she wants some assurance that the vehicle will work properly or that you will take care of the issue if it does not. Offering a guarantee based on a certain period of time or mileage will show that you stand behind all work performed at your auto repair business.

 

Step 4: Treat employees well to eliminate high turnover. An auto repair business that has a constant turnover of mechanics will have difficulty maintaining its quality. This can give it a bad reputation and keep it from being successful. When you find good, reliable mechanics, pay them fairly and give competitive benefits to keep them from moving on to another job. Customers who build up trust with a particular mechanic will be glad to see him there the next time their car needs repairs.

 

Step 5: Resolve customer complaints promptly. Although there will always be some unreasonable customers, most will be willing to come to a compromise if you are willing to work with them. Discuss the problem without judging them or making them defensive, and ask them what they feel an equitable solution would be. If you agree that it's fair, you've got a resolution. If not, be prepared to give an alternative solution.

 

Step 6: Reward regular customers. Repeat customers are key to running a successful auto repair business. Not only do they provide income themselves, they also are likely to refer others to your business. Send out periodic offers for a free or discounted oil change, a discount on their next repair or some other goodwill gesture. While it may cost you in the short term, it will pay off in the long term by reinforcing customer loyalty.

 

 

Tips & Warnings

 

Joining a professional organization like the Automotive Service Association (ASA) demonstrates your commitment to quality and excellence.There will always be some customers who cannot be pleased. If a customer has an unreasonable complaint and insists on a totally unrealistic solution, you will have to refuse. Even though they may spread bad word of mouth about your business, it shouldn't hurt your success if the majority of your customers are satisfied and you have a good reputation.

Link to comment
Share on other sites

The artilce is ok, not too specific, too generic. I think most of the conversations found in AutoShopOwner have more relevance to every day business.

 

Ofcourse they do, but I think these are a good start for anyone who is not at the level.....let's say...you, or another sucessful shop is at.....and looking for some quick tips and things to be doing to get started.

Link to comment
Share on other sites

  • 1 month later...
  • 1 month later...

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
  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      What if there's a fire in your shop? An oil spill? A natural disaster or God forbid, a death? How do you prepare for that? Well, This week, Hunt talks about preparing for the unexpected:
      Vision Expo: Hunt shares experiences and insights from attending the Vision Expo in Kansas City, emphasizing the importance of community and industry events. Importance of Preparedness: The significance of being ready for unforeseen incidents, such as theft or natural disasters, affecting auto repair shops. Insights from Roundtable Discussions and Classes: Valuable lessons from discussions and classes, including managing risks and implementing preventive measures. Understanding Insurance Coverages: The necessity of comprehending what business insurance covers, identifying coverage gaps, and making sure you have comprehensive protection. Preventive Measures Against Risks: Steps to minimize risks associated with fires, accidents, and other potential threats to auto repair shops. Contingency Planning: The need for having a solid contingency plan to tackle unexpected situations effectively. Financial Readiness and Strategic Planning: Emphasizes the role of financial preparedness and strategic planning in fostering long-term success and stability for auto repair shop owners.  
      Thanks to our partners, NAPA TRACS and Promotive
       
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      This week, Hunt takes a deep dive into the hot-button issue of price increases within the auto repair sector. He offers a nuanced examination of vendor pricing, market dynamics, and the psychological elements of setting rates in your business. With examples from real-life scenarios, this episode is a treasure trove for auto repair shop owners striving for balance between profitability and customer loyalty in today’s volatile economic climate.
      • The Psychology of Pricing: Unpacking the reaction to vendor price increases and what it reveals about our own pricing strategies.
      • Market Dynamics: Exploring the balance between cost, value, and competition in the auto repair industry.
      • Strategic Decision-Making: How to navigate the complexities of pricing decisions to ensure business growth and sustainability.
      • Real-Life Examples: Actual examples from a shop owners' group debate to illustrate broader industry challenges.
      Thanks to our partners, NAPA TRACS and Promotive
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      The Basics of Owning An Auto Repair Shop - Part 5


  • Our Sponsors

×
×
  • Create New...