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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By nptrb
When it comes to running a profitable auto repair shop, every dollar counts.
One of the easiest places to lose money—or save it—is your parts inventory. If you’ve ever opened a drawer and found a dusty part you forgot you had (or ordered twice), it might be time to take a closer look.
Let’s walk through how smart inventory management can help you reduce costs, free up cash, and improve overall auto repair business profitability.
How Inventory Optimization Improves Your Business
It’s tempting to keep a wide selection of parts “just in case,” but overstocking ties up cash that could be used elsewhere. On the other hand, understocking means delays, missed revenue, and frustrated customers.
The key is balance.
Better inventory control for auto repair shops helps you:
Avoid over-ordering and duplicate purchases Ensure you have what you need—when you need it Track fast-moving parts vs. slow movers Improve cash flow management for auto repair shops
Surefire Tips to Optimize Your Parts Inventory
Implement an Inventory Management System
If you’re still relying on spreadsheets (or your memory), it’s time to upgrade.
A digital inventory system gives you real-time visibility, automates reordering, and keeps you organized—saving you time and money.
Tip: Many shop management tools now integrate inventory tracking with work orders and invoices. Efficiency, meet accountability.
Track Usage and Trends
Look back at the last 6–12 months of service data. Which parts are flying off your shelves? Which ones haven’t moved in ages? Use this info to stock more efficiently and avoid dead weight.
This kind of analysis supports managing expenses in auto repair shops with intention.
Set Minimum and Maximum Stock Levels
Create thresholds for commonly used items.
This prevents overbuying while making sure you’re never caught without a part during a busy week. It also helps prevent emergency orders, which often come with added fees.
Build Relationships with Reliable Suppliers
Good vendors make a huge difference.
Choose suppliers who are reliable, offer volume discounts, and can ship quickly. This can reduce your need to stock excess items and support better cost control in auto repair businesses.
Schedule Regular Inventory Audits
Set a recurring time each month to check your shelves. Catching inconsistencies early keeps your system accurate and helps you spot opportunities to cut costs.
The Ripple Effect on Profitability
When you reduce excess inventory and improve how you manage parts, you free up cash, reduce waste, and increase your shop’s flexibility.
That’s a win for your auto repair business profitability and your sanity.
Not to mention—you’ll be better prepared to handle seasonal shifts, emergency repairs, and bulk jobs when your inventory is dialed in.
Optimizing your parts inventory isn’t just about saving money on parts—it’s about streamlining your business. With better inventory management, you improve service speed, customer satisfaction, and your bottom line.
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By nptrb
Running an auto repair shop comes with a unique set of challenges, and managing your finances is a big one. Whether you’re just starting out or looking to scale, understanding cash flow management for auto repair shops is crucial to your long-term success.
In this post, we’re sharing practical, actionable strategies to help you take control of your shop’s finances and boost your auto repair business profitability—without sacrificing service quality or customer trust.
What Is Cash Flow and Why Is It Important?
Cash flow refers to the money moving in and out of your business.
For small businesses like yours, positive cash flow ensures that you can pay your team, keep parts in stock, handle operating costs, and still have something left to reinvest in growth.
When cash flow gets tight, it affects everything—from your ability to take on more jobs to your peace of mind. That’s why improving cash flow in small businesses, especially in the auto repair industry, is one of the smartest moves you can make.
Common Financial Challenges Auto Repair Shops Face
Auto repair shops often experience:
Slow payments from customers or insurance companies High up-front costs for tools, equipment, and parts Seasonal dips in customer volume Discounting services too frequently Recognizing these patterns is the first step toward smarter cash flow management in your business.
5 Financial Tips to Improve Cash Flow
Here are some real-world auto repair shop financial tips you can start implementing today:
Streamline Your Invoicing and Payments
Make it easy for customers to pay by offering digital invoicing and online payment options. Send invoices quickly, and set up automated reminders.
The faster you get paid, the better your cash flow.
Review Your Pricing Structure
If your rates haven’t changed in a while, it might be time for a tune-up.
Make sure your pricing reflects the value you provide while also supporting your auto repair business’s profitability.
Manage Inventory and Ordering
Don’t let cash get stuck on your shelves. Track what parts you actually use and only stock what’s necessary. Consider just-in-time ordering to reduce overhead.
Reduce Unnecessary Expenses
Look closely at your subscriptions, software, utilities, and vendor costs. Managing expenses in auto repair shops doesn’t have to mean cutting corners—just being more intentional with your spending.
Create Consistent Revenue Streams
Prepaid service packages, maintenance memberships, or seasonal promotions can help bring in predictable income, smoothing out your cash flow during slow periods.
With summer coming, now is a great time to offer deals on tune-ups for people who will be traveling!
Forecasting = Fewer Surprises
Cash flow forecasting allows you to plan for upcoming expenses and income. This helps you avoid financial surprises and confidently make big decisions—like hiring another tech or investing in new equipment.
Even small adjustments in how you manage your shop’s finances can have a big impact over time. Staying proactive and strategic helps ensure your shop is profitable, sustainable, and ready to grow.
Taking control of your finances starts with understanding your numbers and making small, consistent changes. By focusing on cash flow management for auto repair shops and applying smart financial tips tailored to your industry, you’ll be in a much stronger position to weather the ups and downs of your business.
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By carmcapriotto
Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound
Watch Full Video Episode
In our episode today, we welcome guest Hunt Demarest, CPA ABV.
Hunt is the host of Business by the Numbers and, as our host Craig O’Neill will tell you… Hunt uses words really well for a numbers man!
This episode came to be after Craig found himself on a walk and listening to one of Hunts recent episodes, Episode 163 - Where are my customers? It’s a great episode on getting to the root of what the numbers are actually telling you - and guess what - it involves actually picking up the phone and talking to people!
Hunt’s episode played right after Craig had listened to an episode on a health/wellness program which spoke on a similar topic… going straight to the source of information!
Often times we can get caught up in the minutia of details and analysis.
If we are not careful - it can lead to assumptions and wrong conclusions.
As Hunt says, “Numbers do not lie, but they do not tell the whole story.”
Getting the whole story inevitably involves communication - and it isn’t always comfortable for people to pick up a phone to get it.
While the takeaway for today’s episode is in the title, it expands as you listen to Hunt and Craig explore a range of topics from talking to clients, employees, and even family.
Today’s WOTD is Gumption
noun
the ability to make intelligent decisions especially in everyday matters
Learn more about Hunt Demarest here:
https://paarmelis.com/business-by-the-numbers/
Look for his book here: https://a.co/d/hAf0cDF
Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound:
The Institute at WeAreTheInstitute.com. "Stop stressing over your business, you deserve a good night's sleep. The Institute’s coaching helps you achieve success and financial peace.
AutoFlow at AutoFlow.com. Your partner in technology, Autoflow consolidates your client interactions - before, during and after the visit to a single thread. Learn more at Autoflow.com
AutoLeap at AutoLeap.com. Are you tired of juggling multiple tools to manage your auto repair shop? Say hello to the streamlined efficiency of AutoLeap, the #1 all-in-one Auto Repair Shop Management Software!
Shop Dog Marketing at Shop Dog Marketing.com. "Want to see your auto repair shop thrive? Let Shop Dog Marketing be your guide. Our customer-first approach, combined with AI-driven creative content, ensures top rankings.
In-Bound at CallInBound.com. Cover your communication needs and revolutionize your auto repair business with AI-driven call analytics from InBound.
Contact Information
Email Craig O'Neill: [email protected] Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
Over the weekend I met a 67 year old shop owner who has been in business for 41 years, and still involved in the day to day operations. He added that he has done nothing to plan for his future and his exit.
Life can throw us a curve ball at any age, are your properly prepared.
I know it sounds a little crazy, but the right time to get you business ready to sell, is when you first go into business.
What are you doing to prepare for your exit, sale or if life throws you a curve ball?
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By Changing The Industry
Bonus Episode - The Impact of Returns, Inventory, & Technology on Auto Parts Pricing with WorldPac
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