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Key No. 1: Specialize -
Faster, Better, Cheaper
There are certain types of work that each
shop is most competent at. Specializing in that type of work helps you
get it done faster, better, and cheaper than your competitors. The work
gets done faster because the technicians only focus on that type of work
and therefore know where all the hangups are. If you look at a labor
guide you'll notice that for each job operation there is a factory
warranty time that is much lower than the regular time. The reason is
that dealership technicians focus on servicing only a few models of
vehicles to the point that they become more proficient at it than
non-factory service technicians. Thus, they can perform the work much
more quickly. The work is better because the technicians know from
experience of doing the same type of work so frequently what can go
wrong during the repair. While a non-specialist may end up with a
comeback, a specialist will know how to avoid the potential problem. If
you do work faster and better, it is also cheaper in the end. This means
you do not have to pay a technician for doing the same job a second time
because that person did not do it right the first time. Imagine the cost
savings over a year's time if you could reduce the number of comebacks
that occur. GarageAdministrator Platinum helps you track your performance so that
you can specialize in the things you are most competent and most
profitable in.
Key No. 2: Create A Price Menu
If you look at how franchise auto repair
establishments operate, you will notice that they have set prices, or a
price menu, for the work that they do instead of using a labor guide to
estimate each job individually. This is a real time saver since the
service writer does not have to spend time looking up quotes from a
labor guide. Since the labor guide is just that, a guide, you should
also be in the process of setting a price menu for the jobs you perform.
Far too many shops quote strictly from the labor guide and end up either
overpricing the job which causes them to lose the job to a competitor or
quote a price that is too low and end up losing money on the job. Don't
let this happen to you. GarageAdministrator Platinum comes complete with a
service menu that you can customize to fit your shop.
Key No. 3: Upsell Your
Customers
It costs money to get a customer into your
shop. Do not let that customer get away without selling all of the
services that the vehicle requires. Not all vehicles require repairs,
however, all vehicles require maintenance. Until the day comes that they
manufacture maintenance-free vehicles, you should be trying to get that
type of work. GarageAdministrator Platinum has a vehicle inspection form to let
your technicians check for required maintenance.
Key No. 4: Always Charge For
Your Work
How many times has a vehicle come in to your
shop and while you were doing the work that the customer requested you
noticed a loose or hanging wire in another area of the vehicle? You
figure that it is a quick fix so you grab a tie-strap and move it out of
harms way. Your rationale for not charging is that it was a quick and
easy fix. What you may not know, however, is that if something goes
wrong with that wire after you tie it back, you are liable for the
repair work that you did even if you did not charge for it. What that
means is that if the wire shorts out on the frame, you could be liable
for the repairs. Do not risk a future
lawsuit and let your customers know that a repair is required - no
matter how simple or cheap it is. You are in business to make money and
in order to make money you need to charge for your work.
GarageAdministrator Platinum includes a vehicle inspection form to allow
technicians to check the vehicle for needed repairs.
Key No. 5: Contact Your
Customers With Marketing Materials
Sending your customers a thank you postcard
or letter is a good way of keeping customers as well as improving your
relationship with them. GarageAdministrator Platinum helps you generate customer
contact mailing labels, postcards, and letters.
Key No. 6: Assign Employees
To Service Bays
One of the biggest inefficiencies in any
shop is having technicians go from one service bay to another, dragging
their tools along with them. Keeping a technician with a particular
service bay makes it easier to schedule work and stops technicians from
wasting time chasing down tools from one service bay to another.
GarageAdministrator Platinum allows you to assign your employees to specific
service bays.
Key No. 7: Schedule Your
Work
How many times has a customer pulled up for
an appointment that you thought you had scheduled but forgot? It has
happened to the best of us. Usually the problem lies in the management
system being used. GarageAdministrator Platinum comes with an appointment
calendar that allows you to link the customer and repair estimate
directly to it. When the customer shows up, you simply click the time
slot on the grid where the customer is scheduled and then click the a
button which brings up the estimate. It couldn't be any simpler.
Key No. 8: Track Your
Employees' Performance
In this day and age of computers and
databases, there is no excuse for not tracking your technicians
performance. How are you to know if your technicians are up to par if
you do not track their performance? Think of yourself as a coach on a
football team. The coach can help his players become better but only if
he tracks the players performance. Maybe a player is fumbling the ball
because he is not holding it correctly. So the coach shows him the right
way to carry the ball. Problem solved. You, too, can help your
technicians become better players by tracking their performance. Look
for what areas or jobs are giving the technicians problems and then look
for solutions. Tracking employee performance is not for punitive
reasons, it is to help them become better workers. GarageAdministrator
Platinum
has employee performance tracking and reporting abilities to help you be
a better manager.
Key No. 9: Manage Your
Inventory
Maintaining a proper inventory is crucial to
any business. Carrying what sells and avoiding items that just sit on
your shelves is very important. Knowing what is in stock and what is
about to run out is also critical. GarageAdministrator Platinum helps you manage
your inventory as efficiently as possible.
Key No. 10: Take Supplier
Discounts When Available
Suppliers will sometimes offer discounts for
early payment. For example, a discount that appears on the invoice as
2/10 net 30 means you can take a two percent discount if payment is made
in full within ten days of the invoice date. If the invoice was for
$200, you could save $2. While that might not seem like much, it adds up
over the course of the year. If you purchase $100,000 per year of items
from a supplier that offers such discounts, that means a savings of
$2000 per year. Imagine what you could do with an extra couple of grand
each year. GarageAdministrator Platinum helps you track available discounts as
well as those you have missed.
Key No. 11: Think Like A Business
Person, Not Like A Mechanic
If you are like many in the auto repair
industry, you probably started out as an automotive technician. Being a
technician and being a business person are two completely different
things. As a technician, you must look to do the best possible repair
job. As a business owner, you must not only be concerned with doing good
work, but you must also be aware of doing the work in a profitable
manner. You can be the best mechanic on the planet but if you can not
run a business profitably, you will not be in business for long.
Becoming involved in your community, sponsoring a local sports team, and
joining the chamber of commerce are just a few of the ways that you can increase
the visibility of your business and at the same time let you know what is on the horizon.
While a technician's work ends at 5:00pm, your work, as a business
manager, has only begun.
Key No. 12: Manage Your
Business With Good Software
Having a good business management system in
place starts with having good management software. GarageAdministrator
Platinum
is a great way of managing your business without spending hundreds of
thousands of dollars for custom-built systems. Use the tools that
GarageAdministrator Platinum gives you and you will be on the path to success.
Remember that the road to success starts with GarageAdministrator
Platinum. Good
luck in your venture!
The keys to success shown
above are not meant as business advice. Your success will depend on your
own business acumen. Keys to success are based on the personal
experiences of Ray Valentim, former auto shop owner and current
president of Atlas Data Systems.
GarageAdministrator - the right
software for your business.
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