How to Jumpstart Your Automotive Repair Shop

Posted by Karen Erdelac on Jan 11, 2016

How to Jumpstart Your Automotive Repair ShopThe automotive repair industry has experienced a steady increase in growth during recent years. Auto Mechanics in the US: Market Research Report references critical statistics such as industry trends, start-up costs, and alternatives to a traditional garage setting. Improving your auto body shop can be very expensive. The good news is that your company can utilize a merchant cash advance to gain access to fast funding. A merchant cash advance is a simple process which can give you the cash you need in as little as 48 hours. It is much easier than applying for a traditional bank loan and offers flexible repayment terms from your company’s future credit and debit card transactions. To get started contact Quikstone Capital Solutions today.

Cover Labor Costs

Every business struggles with the need for revenue to exceed expenses. One of the best ways to keep your prices at a healthy level is to provide great service every time. Customers are usually happy to pay regular prices satisfied with your quality of work. It is cheaper to retain current customers than acquire new ones. When each automotive job is done, make sure to get accurate customer information so that reminders for suggested maintenance can be sent out in a timely manner. This will help to secure future business. Labor costs will fluctuate so make sure that your staff is properly scheduled to maximize productivity. For example, make sure that your more highly paid workers are not cleaning or doing other routine tasks that lower skilled labor could attend to.

Advertise to Reach New Customers

When was the last time that you reviewed your advertising platform? It is easy to fall into predictable, comfortable patterns but the nature of good advertising is to keep your audience engaged. For instance, does your auto body shop offer discounted specials for services such as brakes or tune-ups? If so, even though you may also offer full service repairs, personalize your advertising pieces for these specific specials. You will be more likely to draw in customers who need these common services and you can also offer a low discounted price for new customers. Word of mouth will spread quickly if you offer a unique service or the lowest prices in your area in addition to exceptional customer service.

How to Jumpstart Your Automotive Repair ShopUpgrade or Replace Equipment

If you have to upgrade or replace your equipment, it is important to prioritize. For example, if your shop is advertising tune-ups, then this equipment should be in great working order. The equipment that you purchase for your specialty services should bring in revenue to help cover the costs of other equipment that you need. Also, you may be able to purchase equipment from vendors who will come out and give a demonstration on proper use of these items. You can also lease equipment to minimize costs if the terms are favorable.

Increase Inventory or Purchase Supplies

A great way to save money and keep your shop running smoothly is to order routine supplies in bulk. These include towels, cleaning supplies, uniforms, receipt tape, oil change stickers, floor mats and basic tools. This way, shop operations will not stall while these materials are being replaced. You can use the funds from your merchant cash advance to increase your inventory and supplies. It is helpful to have these items and not experience the worry that being caught without them can cause.

Expand or move to a new location

One of the most critical pieces of any business decision lies in choosing what location to secure. If you already have a great location, you can expand your space to offer a bigger and better customer waiting area or add an extra auto body stall. If you add more locations, it will help to build your brand with customers. They will see your expansion as a sign of profitable business and increase their trust in your abilities. Utilizing the funds from your merchant cash advance can help to ease the financial burden that expansion or moving can place on your bottom line.

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Topics: Funding Your Business, Growing Your Business, Auto shops