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6 Signs Your Auto Shop Needs New Management Software

Running an auto repair shop can be extremely lucrative and rewarding. It can also be tremendously stressful and disorganized if you don’t have the right equipment for the job. Auto shop software is one of the most important tools in your toolbox. If you are relying on an outdated suite of tools (desktop dos based systems) or are still handwriting your RO’s, you likely aren’t best serving your customers. You could also be losing a considerable amount of revenue every day. Here are six signs it’s time to get new auto shop management software.

1. Your Shop Wastes Time

Does it seem like you can’t get as much done as you thought? Your shop isn’t as profitable as you expect it to be and there is not enough money left over for you at the end of each month.

If so, your old ro writing software may be to blame. With good software, your service writers can communicate with your shop’s mechanics in ways other than yelling to the back of the shop. how much time is wasted with techs walking back and forth to the front desk to ask about parts, or to get the job card that is on the board in reception. Being able to communicate with all your team members right in the software saves everyone time.

Meanwhile, ordering parts online, connecting with customers via text messaging, accepting payments through a integrated payment module, scheduling appointments, and other regular garage tasks occur much more quickly when you let modern auto shop software do the work.

2. Your Shop Doesn’t Have Much Space

Whether tax records, customer information, a printed copy of every single estimate and Repair Order or purchase orders for parts, every business has paperwork it must retain. Storing essential information in large, outdated file cabinets can quickly eat up floor space in a small shop. Even worse, these old-school storage solutions can be impossible to organize. Instead of forking over more cash to rent additional space and hiring an organizational expert, investing in auto shop software is usually an effective strategy for saving money.

Your customer signs the estimate or RO on the ipad and it is stored digitally in the system for future access, you can email it to them if they want a copy, it is available forever and you do not have to print anything out. It saves you on storage space, it saves you on ink and paper costs, and the customer doesn’t have a piece of paper that they shove into the glove box or throw away as soon as they get home.

3. Customers Fall Through the Cracks

To make money in the auto repair business, you need to find new customers but you must keep customers coming back. It is harder and more expensive to find a new customer than it is to get a past customer to come back into your repair shop.

As your customers navigate their busy lives, they may forget about routine vehicle maintenance. They ignore the annual Transmission check up that is needed to maintain the warranty. They wait till the last moment to get their brake pads changed and no one ever seems to remember preventative maintenance which would help their car last longer.

You can do reminder emails, cards and text messages yourself if you have the time but If you don’t have a system to remind customers when they need to service their vehicles, your shop is losing out on a great deal of business. With modern auto shop management software, you can typically use a marketing integration designed for auto repair shops to notify existing customers of service deadlines and reminders of their FTA jobs. The same system will manage your adwords expenditure and help with Google Reviews and social posts as well.

4. You Don’t Know How Your Shop Is Really Doing

As a serious shop owner you are busy, you are the first one into the shop and the last one to leave. You work at least 5 days a week and quite often you work some nights and part time on the weekends. You know you are getting busier, your car count is going up and if you sit down for a few hours with Quickbooks you can work out what your Average $ per RO is.  You know their is money in the bank and you are earning enough money to keep your head above water. You do not truly know how your business is doing.

By using the right software package, you get to run the sort of reports that help you be a better business owner. Immediately track service times, inventory and  technician efficiency amongst other things. Know your shops Profit Per Hour and other essential financial information instead of relying on anecdotal evidence to contemplate improvements. The better information will help you control costs and increase your shops profitability.

5. Estimates Seem Chaotic

The best auto repair shops have technicians to quickly inspect broken down vehicles and provide accurate estimates. Unfortunately, without software, this can be incredibly challenging. You are either hoping the techs have enough knowledge and experience to estimate accurately, which is almost never the case as mechanics ego always makes them think they are better and faster than they actually are. The other option is the shelf of books that you buy from Alldata or Chilton and keep on the shelf for estimating. What a space waste and time suck that option is.

When you use auto repair shop software your technician can complete a digital check in, diagnose the issue and make notes right in the estimate. Your service writer sees that the check in and diagnoses are complete, he can look at parts availability and text the quote to the customer. If the car owner prefers to receive a estimate via email your service writer can do that as well.

Estimates will be nice and clean and professional looking, this helps sell the job and present your shop in the best light. Professional and accurate estimates help build trust in your company.

If estimates at your shop seem too chaotic, your customers probably aren’t happy. Upgrade to modern auto shop software and give your shop an improved public face.

6. You Need Help

Maybe you don’t really understand the program you are currently using, it kind of does what you want and that is good enough. Software packages routinely come with training options to help you get the most out of your software. Remember, your software suite is only good if everyone knows how to use it. With the right software partner, you can likely boost productivity, save money and improve the customer experience.

Relying on old, ineffective or nonexistent auto shop software is a bad idea. To remain competitive in the modern marketplace, your shop likely needs the best software suite possible. By watching for these five signs, you can know when it is time to order new auto repair software.

So You Want To Get Into The Automotive Repair Business, Now What?

Being your own boss is the American Dream that many people work towards their whole lives. If you recently decided to open your own automotive repair business, you may be feeling a bit overwhelmed. Even though you have been a technician or a service writer for years and you’re excited about starting your own business, you may not know exactly where to begin.

Wanting the American Dream and knowing how to get there are two very different things. Before jumping into starting your own automotive repair business you need to plan. When people say that you need a business plan they make it sound simple.

There are several areas you need to research so you know what you are getting into. Good research will help you be as prepared as possible, so here are a few tips…

Automotive Repair Shop Startup Costs

The last issue you want to deal with is starting your automotive repair business, and run out of money too soon. By understanding what the startup costs will be, you are more able to prepare and set yourself up for success.

When starting an automotive repair business, expect startup costs. You will need money for things like rent, insurance, legal, accounting, marketing, and equipment. Here’s an example. If you buy or rent a building and need to change the use of the property to an auto repair shop, you may well need planning permission, which means you need to speak to an architect or an engineer to see if the building is safe to change. These costs can mount up and are not insubstantial amounts.

Get a Lawyer, A Bank and an Accountant

Do you have extensive knowledge in tax law, liability insurance laws, accounting, business licensing, and business structures? If the answer is no, you will need an attorney and Certified Public Accountant (CPA) to help you. You want to ensure that your auto repair business is set up properly, and do everything you can to limit your personal and financial liability.

Trying to decide if your auto shop business should be a sole-proprietorship, partnership, or incorporate? A good CPA can help you find a business structure for the best profit-centered, tax-reduced, asset protection possible. Structuring your business correctly can offer great advantages. This means dollars in your pocket from corporate tax savings, and allows you to protect your assets during your lifetime and for generations to come.

Having an already existing relationship with a bank will help you when it comes time to start your business. Build a relationship with a business banker who will know you and your business, when you are ready to start or expand he will know your financial status and your plans. Don’t ever discount the value of having a banker emotionally invested in your success.

No one likes dealing with attorneys, usually because we are on the receiving end of bad news when we do. When you are starting a business having your own lawyer is vital. One paragraph in a document you sign happily today could come back and bite you in years to come. It may seem like just another expense, but paying an attorney to look through things before you sign could well be the best money your business ever spends.

Though having a lawyer on retention is not usually necessary, it is a good idea to have one who knows your business and whom you trust.

ASE Certification for Technicians

No one is saying that a person who is not ASE certified isn’t capable of fixing an automobile. Yet, people are more trusting of automotive repair shops when their technician is ASE certified. So, if you are not ASE certified, you need to either get yourself certified or hire technicians who are.

Be aware that ASE certification requires a person to take and pass the certification exam. Before a person can take the exam the person needs at least two years of educational or work experience. At least one of those years must be on the job.

If you are opening a transmission shop then consider joining ATRA , membership of an accredited trade association will always gain trust and respect from your clientele.

Hire Auto Shop Employees

This is not an area you want to rush. “Mishires” (or hiring the wrong people) are one of the biggest expenses for small and medium-sized businesses. Be sure to set the interviews or get the word out that you are looking to hire well before your opening date. You will need time to conduct the interviews, find the best candidates, do background checks, and negotiate the hiring agreement.

Even if you are starting out small you need to have at least one employee to help you. If you are the service writer then you need to find a solid technician who has wide experience and a good work ethic. Someone who wants to help you build a business.

If you are the auto shop technician then you need someone to answer the phones and work with the customers. When hiring forward facing staff the best comment we have ever heard is “You CANNOT train Attitude”. You can train them to use a computer program but you cannot train them to smile and be friendly.

Always look for staff who will fit in with your clients, and make sure they understand the behavior that is expected of them before they ever start. Or if you will be the person handling customers directly, you will need an auto shop technician.

Whomever you hire has to sign a contract of employment (speak to your lawyer about this) and should be supplied with a handbook of behavior that is expected. The handbook may seem like overkill if you are only employing one member of staff, but you are better off doing it early rather than wishing you had when it is time to reprimand or fire someone.

Marketing for Auto Repair Shops

Marketing is another big component that must be handled before your Grand Opening. Advertising your Grand Opening with promotions and special pricing is a great way to bring in business to your new shop.

Getting your name out there in many different ways is imperative. New shops are often successful with promotional give-away items for customers who come in the first week or month. Establishing customer appreciation early is key to customer loyalty.

A solid marketing plan is invaluable to keep within budget as you choose appropriate marketing tools. Other marketing tools for your new automotive repair shop could include: flyers, radio announcements, and social media. Plan your marketing steps and budget in advance, but  prepare to be agile so you can adjust on the fly is one method is more or less successful than the other.

Be the Boss

Owning your own auto repair shop allows you to be the boss. You have control over your future, set your own hours, and make all the decisions. You get to create the workplace environment of your choosing, and build something great for yourself, your family, and your employees.

Going after your dream to open an automotive repair shop will be no small feat.  If you’re willing to put in the time and the work necessary, you will see great rewards. By planning and preparing for potential pitfalls, you will give yourself an edge over the competition.

Physical Planning and Automotive Repair Proficiency