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How to Run a Successful Auto Repair Business

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autoguy Rising Star

autoguy

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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.

autoguy Rising Star

autoguy

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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.

  • 1 month later...
charles1 Apprentice

charles1

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Posted

Thank you for sharing the useful information. This will be going very helpful to all. Please keep sharing such information in the future also.

 

Have a great day

With Regards

Charles

  • 1 month later...

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  • Have you checked out Joe's Latest Blog?

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      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
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      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
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      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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