Avoid These Mistakes When Setting up Your Automotive Shop

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Avoid These Mistakes When Setting up Your Automotive Shop

Shifting your business model to include repairs and maintenance will align your business practices with the outcome you need: profitability.

But your shop will become profitable not just because you celebrate maintenance—and promote it to customers.

Mistakes that will take your business down

The key to profitability is the result of a couple of factors coming together. Shops that fail make these fatal mistakes:

  • Failing to track the shop’s income
  • Not matching incoming costs to expenses

Get on the right track

Here’s the right way to set up your shop and build profitability:

  • Track the shop’s income
  • Then, match it to the expense
  • The result: profitability

If you’re not good with numbers, don’t worry. I’m going to show you how simple it is to set up your shop.

All you need to know is how to track:

  • Average sale per Repair Order (RO)
  • Gross Profit Margin (GPM)
  • Vehicle count
  • Customer retention

In future blogs, I’ll provide insider tips on tracking these steps, as well as simple calculations you can use to dig into the numbers. And in a few simple steps, you’ll set up your automotive shop for success, and be profitable—just like you dreamed it could be.

What’s the solution?

Give your customers service recommendations as “due now,” “due in the future” or “never done,” based on their own driving habits and service history. Like a fleet manager, we can help you track, report and maintain vehicles accurately and fairly. Be awesome at the front counter and the experience will be remembered.

SI Auto Pro “Auto Care Made Easy”, previously licensed and distributed under the Mitchell1™ and Snap-On™ brands, is designed for automotive service and tire dealers using Mitchell1 Manager™/Shop Key™, R.O. Writer™, AllData™, MaxxTraxx™, Costar™, Lankar™, PACE Yes™, NapaTracs™, and other shop management computer systems. blog.AutoSI Auto Pro.com | Testimonials since 1999