A New Way to Increase Your Auto Repair Shop’s Revenue

Posted by Karen Erdelac on Aug 12, 2014

auto-shop-new-revenueLooking for a new, creative way to increase revenue for your auto shop? Consider offering a rent-to-own program for tires and wheels.

The Rent-To-Own Concept

The rent-to-own concept is nothing new. It’s used in various industries from electronics retail to real estate. Still, it's fairly new to auto shops.

How does it work? Most auto repair shops have customers who simply cannot afford large maintenance expenses such as tire replacements. If you have customers that need a new set of tires but are short on cash, you could offer them the convenience of receiving new tires right away and spreading the payments out over an agreed upon number of weeks or months.

Moreover, rent-to-own programs are also a great way to attract customers that enjoy customizing their cars. You can use rent-to-own programs to work with customers that want to upgrade their wheels to improve the appearance or functionality of their car. Often times these purchases are difficult for customers to validate, but a rent-to-own program can make them a reality by easing the initial investment.

Companies have seen success offering rent-to-own programs to customers. The business, which is based on rent-to-own tires and wheels, caters to customers who either cannot afford the upfront price or who want ultra-expensive chrome.

There may not be much competition, but enough demand exists to increase your auto repair shop’s revenue with a rent-to-own program. When done correctly,this type program can help you attract a new customer base and find more ways to work with your existing customers. In addition, you can charge a fee for the service in order to see increased revenue on rent-to-own transactions versus traditional transactions.

Get the Word Out

Once you have a rent-to-own program in place, educate your prospects and customers on rent-to-own options is the next step toward increasing your auto repair shop’s revenue. An attractive display of expensive chrome wheels may be enticing to vehicle owners, but unless you advertise payment options, your customers may assume that what they are admiring is too expensive for their budgets.

In addition to in-store promotion, also consider advertising outside of your store to reach a larger audience. You can promote your rent-to-own program via social media platforms such as Facebook and Twitter, and you can use Google’s pay-per-click advertising to appear in associated internet searches. And, of course, don’t forget print ads, radio spots, and email campaigns.

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Make Renting-to-Own Worry Free

Lastly, since a rent-to-own program requires multiple invoices and payments over a period of time, make sure that you are organized and that your customers can easily see their accounts and pay their balances. This may require specialized software and a designated staff member that can send correspondence and communicate with customers about their accounts.The focus of rent-to-own programs is accommodating patrons, so they are a great tool for developing long-term relationships with new and existing customers alike. By expanding the ways that your customers can do business with you, you can increase your auto repair shop’s revenue.

Topics: Growing Your Business, Auto shops