As the owner of an auto body and repair shop, it is important to be just as skilled as a manager as it is to be as a mechanic. In order to remain profitable, it takes much more than just the necessary labor skills. A shop owner and manager must always be aware of changes in the field, procedures, billing, garage insurance, and any other areas that may affect the business and its profits.
More specifically, there are five areas that should be monitored and modified regularly in order to remain a profitable auto body and repair shop. The following five areas are:
#1: Estimate: It is important to be thorough and specific when writing estimates or else your profit may suffer. What may seem like a minor expense once may be multiplied as you continue to use the wrong estimate.
#2: Standard operating procedures: For a thorough estimate, it is important to be educated on each repair procedures. This is where standard operations procedures (SOPS) can be helpful, serving as a checklist for repairs once it comes time to figure out billing.
#3: Efficiency of the shop: It is crucial to continually improve processes. This may require constant training but it will be worth it. The ability to repair a vehicle correctly and in a swift manner will benefit your shop and reputation.
#4: Changes in equipment: There are constantly new and improved tools hitting the market. It is important that your shop keeps up with these changes. Some may end up affecting costs and profits so it is crucial to adjust.
#5: Shop integrity and honesty: Stellar customer service will go a long way. If your customers respect your workers and your shop as a whole, you may never face a shortage of business. Keep up that great reputation; it is hard to fix once it is tarnished!
While these are not the only five areas that should be monitored, they are certainly the most important. If you cannot properly manage these areas, you may find your company profit at a stand-still, or worse, at a loss.
Another important part to monitor and keep up with is your garage insurance. Without the proper protection in place, a minor issue could turn into a major financial loss. Luckily, this policy is specifically designed to cover the unique risks you may face as a garage shop owner. Possible products and services include: auto insurance, workers compensation coverage, employers’ liability insurance, umbrella insurance, group auto insurance, small business retirement planning and much more. Feel free to contact us for a free quote today!
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