Ever wondered if your automotive service shop is running at optimum efficiency? Efficiency is key to running any business. Here are three tips to maximize efficiency.
Tip 1: Establishing an Operating Budget and Turning a Profit
Getting down to basics – your monthly budget. What does it cost to operate your business on a monthly basis? This includes recurring costs such as rent, utilities, payroll, insurance, etc. Other variable expenses include marketing to acquire new customers, building maintenance and improvements, customer amenities, etc. And many more. The key is to understand what these costs are and strive to turn a profit each month. If your total revenue exceeds your operational costs (after you pay for parts) by at least 25%, you have a solid foundation to build on.
Tip 2: Employee Retention, Especially Techs
Are you retaining Techs or are you frequently replacing them? If the latter, this may be a signal the needs of these employees are not being met. In any business, having twice monthly employee one-on-ones help address any needs an employee may have an eliminate any surprise employee exits. If an employee has an issue, it will surface during these one-on-one meetings. Long standing, loyal employees provide consistent quality of work and lead to greater customer satisfaction.
Tip 3: Outsourcing Drives Efficiency
One change in operations to consider is to augment your service advisor with online tools to capture customers in need of service. There are many customers that search for automotive services online and after hours when your service advisor has left for the day. Have a look at a virtual service advisor that works for you 24/7 and never takes a coffee break. Openbay has such an offering.