It’s a solid fact that businesses under the automotive industry never go out of style. And as more and more people buy their cars, running a business like an auto repair shop is promising. Managing such a shop is not only a fantastic way to make a living. If you’re a car lover yourself, this is also an amazing chance to pursue your passion and interest.
Many entrepreneurs chose this business due to the benefits it offers. It has endless growth potential, offers flexible working hours, and holds a steady stream of customers. But just like any other business, running an auto repair shop comes with challenges. You need to maintain quality service, build good customer relationships, and of course, market the shop too.
Here are some tips on how you can increase your profits while ensuring the growth of your business:
- Promote repeat business
If you want to keep those profits high, you need to work on your repair shop’s long-term customer retention. You will need to think of ways to enhance the experience of your customers. One basic strategy is to always treat your clients as people you know. You can’t create a loyal customer base for your shop if you’re treating them as plain business or a way to earn money. Besides that, you can also create a customer loyalty rewards program to encourage people into choosing your shop for every car problem they have.
- Treat finances with discipline
You can’t boost your business’ profits if you can’t manage your finances well. Taking a disciplined approach is necessary for ensuring that no extra revenue will be spent on unnecessary expenses. To start, find out how you can reduce your current business expenses. Think twice if you need to pay for a monthly trash pickup service. Maybe you can just switch to a smaller dumpster or start an every-other-week schedule for the trash pickup.
Furthermore, prioritize saving for your long-term business goals, whether it’s buying new equipment or expanding your shop. Business experts recommend treating a monthly saving as overhead. Lastly, keep in mind that increasing profits and mastering your business finances is a long-term game. It requires great patience and discipline.
- Upgrade your equipment
You can’t expect to have a huge customer base for your shop without having the right equipment. If you’re using an old problematic car lift in your shop, you’re risking the safety of your mechanics and the client’s car itself. Invest in high-quality two-post car lifts instead of sticking with an old one that is costing you money on repairs. Buying new equipment may be a huge expense, but it can save you more money in the long run.
In addition, you get to provide quality services to your customers. Other pieces of equipment you should look into are your pole jacks and jack stands, air compressor, air conditioning machine, battery charger, strut compressor, and press.
- Show off your shop online
Even if you’re operating a small local repair shop, bringing in your business online can help a lot in increasing your profits. Most customers today use the Internet to search for almost all services that they need, including car repair or maintenance. The good news is, you don’t need to spend thousands of dollars and sweat in gaining online visibility for your shop.
For one, social media platforms like Facebook and Instagram offer cost-effective ad features that you can use. There are also review websites out there where you can encourage satisfied clients to lead positive reviews about your shop. All this can help you attract more customers into your auto repair shop and establish a good business reputation too.
- Connect with other shops
You probably already know that there is a wider range of car-related businesses. Some are dedicated to customizing cars, washing them, and renting vehicles. Creating relationships with these fellow automotive businesses can help you in building customer loyalty and increasing profits. Customers always appreciate referrals.
If you can direct them to specific automotive shops for the special service they need, they won’t hesitate to recommend you to others too. As for the other automotive businesses, they can also do the same thing for you. They can refer people to your shop for vehicle repairs.
Servicing electronic systems and parts of cars is not an easy job. It requires broad experience, knowledge, and skills. But remember that the strategies above also play huge roles in keeping your auto repair shop profitable. Keep up with the modern service concerns of vehicle owners and you’ll never lose a customer.