Monthly Archives: April 2020

4 Common Pitfalls That Auto Repair Shop Owners Should Avoid

It’s to see why more and more entrepreneurs are getting into the automotive maintenance and repair industry. After all, the increase of motor vehicle sales in recent years and the fact that many of us tend to hold on to our cars much longer than we used to in the past means that the demand for auto mechanical services is also high.

However, just because the industry is thriving, it doesn’t necessarily mean that success is guaranteed. While there are many ways to maximise the profit potential of the business, there are also mistakes that, if you are unable to steer away from, can hurt the bottom line of the shop. So to give yourself more opportunities for growth and success in this highly competitive industry, here are some common pitfalls that you must avoid.

  1. Overlooking marketing opportunities

Most auto repair businesses – especially startups – usually don’t have clear strategies when it comes to advertising. After all, they often consider letting the quality of their work speak for their business and view marketing as little more than additional expenses. However, a good reputation alone won’t drive customers to your business. And by investing in marketing, you’ll be able to improve brand awareness. And as a result, increase sales much more than you would have otherwise.

  1. Spending impulsively

Let’s face it: just like any other industry, you’ll need to spend money to generate profit with an auto repair business. However, that doesn’t mean that you should spend on impulse. Instead, take your time and learn to shop around for everything that your business will require to operate – from equipment and tools to services like ultrasonic cleaning services.While it might sound like a tedious task to explore every option, you’ll have a much better chance of finding money-saving deals if you actively look for them rather than if you settled for the first thing you see.

  1. Not opting for a pay system that is commission-based

If you’re currently not using a commission-based pay system for your employees, it’s vital that you do it now. After all, hourly rates aren’t to productivity and it’s unlikely that you’ll keep your workers motivated or engaged with their respective duties. And by opting for a commission system that includes flat rates that is billable by the hour, you’ll encourage your employees to worker harder. And, in turn, produce the desired results.

 

  1. Shouldering all the responsibility

A common mistake that many first-time entrepreneurs make is trying to shoulder all the responsibility and micromanaging their employees. And while it might be helpful in some occasions, you’re more likely to get in the way and keep an inconsistent level of productivity in the shop. So make sure that you stick to your primary responsibilities and let your employees to their work. It will save you from a lot of trouble.

Running a successful auto garage business isn’t as complicated as some might think. The key is to avoid errors and mistakes on its operations. And by steering clear of the common pitfalls listed above, you’ll have a much better chance of attaining success.

Image:https://pixabay.com/photos/auto-repair-workshop-brake-disc-1954636/