From what we see, there’s a lot that shop owners get right. They understand how to lead their teams, grow their shops, and bring trust and transparency to their customers. But as a former trainer and franchise performance specialist, I do notice a lot of little inefficiencies that add up.
Tekmetric touches every part of running your shop -- from managing customer information and measuring business metrics to facilitating digital vehicle inspections, repair order workflows, and even payment processing.
One common thing I see at repair shops is an overflowing parts return shelf. Often those parts have a thick layer of dust from sitting there for months or even years.
When I see those full shelves, I see dollars (think of a cartoon character with dollar signs for eyes—that's me when I see these overflowing return shelves). Don’t let those dollars sit on your shelves; put them back in your pocket!
Here’s how.
Set expectations with your team.
When I worked in the shop, we had a 24-hour rule for returns. Unless there’s a specific reason, no part should stay on the shelf for more than 24 hours. We were so tenacious about parts returns that the delivery team members started catching on and checking the shelves without us even asking.
Have a linear process for ensuring the returns are complete.
A critical component of Tekmetric is the built-in core/parts return function. From marking a part “needing to be returned” to “refund complete” and confirming the credit on your parts invoice, having a tool that helps manage this process will help protect your margins.
Set a reminder.
Put a reminder on your phone or computer for the last business day of the month to ensure that your parts shelf is clear. Tekmetric makes it easy to know which parts need to be picked up; just compare the Parts Purchased Report to the Parts Usage Report. If there are any parts, call those vendors and get them picked up!
2. Track Your Marketing Sources
What does your marketing strategy currently look like? Maybe you’re paying for signs on the local high school’s baseball field, or ads in grocery store brochures. Or maybe you’re paying for billboards on busy roads, or sending out bulk mailers.
No matter which marketing tactics you’re using, it’s vital that you track the return on investment for each campaign you roll out to maximize auto repair shop profitability. For instance, if you decide to spend $2,500 on a mass mailing campaign that features an oil change coupon, you should keep track of how many customers walk into your shop with that coupon.
After the coupon’s expiration date, you’ll know exactly how much revenue that mass mailing campaign generated for your shop. If the revenue wasn’t high enough, that’s a sign that you should try a different marketing tactic.
Tekmetric simplifies the process of tracking the ROI you’re getting from different marketing sources. Within Tekmetric, service advisors can select a custom marketing source for each and every customer. At the end of the month, or whenever you choose to end your campaign, you can look at the RO Marketing Source Report to see exactly where each customer came from.
After you figure out the best marketing tactics to get customers flowing through your garage, you can really rev up your auto repair shop profitability by having your team…
3. Leverage Digital Vehicle Inspections (Because Seeing Is Believing)
“Your coolant reservoir is trash!” the technician exclaimed.
The customer in the lobby had wanted more details on why the shop was telling him he needed to pay $1,100 for the repair, so a young service advisor had brought in the technician to explain.
That young service advisor was me.
Oftentimes, telling someone that something is wrong with their car just isn’t enough to close the deal. Everyone is tightening their belts these days, and seeing an estimate for a couple thousand dollars can be really tough for many people to swallow.
However, when customers can actually see what they’re about to spend their money on, there is a significantly higher chance of them approving the repair.
The Tekmetric Difference
We see it time and time again: when shops start using Tekmetric’s built-in digital vehicle inspections (DVIs) to show customers the issues with their vehicles using photos and videos instead of trying to just explain the repairs in words, it builds trust, increases approvals, and boosts your shop’s Average Repair Order (ARO).
You can try to explain a repair all day, but the truth is, seeing is believing.
Unlike traditional auto shops, mobile mechanics travel to their customers to provide automotive repairs and services at the clients home. This service is attractive to older clients who may not want to travel as much or for young professionals who are to busy to wait for their car at a shop. Another major perk is that mobile mechanics can often perform services at a cheaper price because of having lower overhead costs.
Mobile mechanics are not able to perform every repair that a brick-and-mortar shop can as they have to transport all of their tools and supplies with them. However, they can still provide these common repair services:
Oil changes
Diagnostics
Tire rotations/replacements
Filter replacements
Batteries
Spark plugs
Alternators
Brake service and more.
How profitable is a mobile mechanic business?
Mechanics can charge whatever they would like but most repairs fall in the $20 - $125 per hour range. Like any business, you have to consider your startup costs, advertising expenses, number of expected clients, and how much your services are worth before determining if your business will be profitable. Overwhelmed yet? Dont worry, we will explain everything in detail below.
6 Steps to become a mobile mechanic
While you may not need a college degree to be a quality mechanic, you will still have to invest in tools, licensing, marketing and other business needs. We have outlined everything you need to start your business below.
Develop a Business plan
Starting with a quality business plan for your business is the first step in making sure you start off on the right foot. Outlining who your competitors are, setting goals and solidifying your financials may seem outdated but they are the foundations of your business. Here are nine steps to creating your business plan:
Write an executive summary
Describe your shop
State your business goals
Describe your products and services
Do your market research
Outline your marketing and sales plan
Perform a business financial analysis
Make financial projections
Create a plan for growth and expansion
Tek-Tip: If you want to jump start your business, consider joining a mobile mechanic business like Wrench.
Gather necessary licenses and certifications
Once you have created your business plan, it is time to start working on your business license. Not every state requires you to acquire a license but some do. Do your research for the state you plan to work in and make sure you are legally ready to open your auto repair shop.
ASE certification: Also known as the National Institute for Automotive Service Excellence. Being one of the largest accreditation organizations, ASE is commonly recognized throughout the auto industry.
Manufacturer certification: Mechanics may elect to gain additional certifications from specific manufacturers (Honda, Toyota, etc.) to add to their credibility. These certifications are also recommended if you only work on certain types of cars.
Refrigerant certification: If you plan to work on MVAC (motor vehicle air conditioners), the EPA requires you to obtain certification in proper refrigerant handling according to Section 609 regulations from the Clean Air Act.
Also, don’t forget to register your business and form the appropriate legal entity (partnership, sole proprietorship, limited liability, or corporation). Each entity has pros and cons, so consult with a legal professional to make sure you are ready to file taxes with the IRS and open your own business.
Set your pricing structure
Your cost per hour or per repair should be reflective of your years of experience, geographical location, types of services performed and competition. Doing some competitor research will help you determine how much clients are willing to pay in your area.
Some mobile mechanics can charge more if they offer premium services or more complicated repairs. If you are new to the area, it may be beneficial to keep your costs low until you have a solid client base. Don’t forget that you can also make money off of part markups.
Lastly, remember to account for inflation, sales tax, parts, and gas for your vehicle. Depending on your payment options, you will also need to account for credit card processing fees. Auto repair can be a seasonal industry (especially in certain states), so make sure to stow away some revenue for slower months.
Insurance coverage
If you are going make an investment in your mobile auto repair business, you need to protect it with the proper insurance coverage. Some of the common insurance plans you should consider include:
Liability insurance
Comprehensive coverage
Fire and theft insurance
Road risks insurance
Lastly, decide if you will be offering any warranties on your services/parts and how that will impact your bottom line.
Invest in quality equipment
Tools: A reliable power source, jack or portable car lift, drain pans, safety equipment, scanners, cleaning sprays, diagnostic equipment and gloves are all important to have on hand. Also, don’t forget a proper lighting source.
Parts: Having commonly needed auto parts in your inventory will save you time rather than waiting for parts to be delivered to you. However, you should also determine how much inventory space you have and how to maximize it.
Software: A cheat code for mobile mechanics is adding cloud-based auto repair software that can help you keep track of inventory, invoices, billing, inspections, marketing, and more all in one place.
Vehicle: Reliable transportation is critical for mobile mechanics. Select a vehicle that has enough storage to accommodate large parts and good fuel economy for longer trips. Lastly, don’t forget to bring shelter in case of inclement weather so you can continue to work in the elements.
Tek-Tip: If you need help coming up with a mobile mechanic business name, we have developed a guide to the best auto repair business names. In addition, we developed an AI-powered name generator tool that can also help with logo creation.
Marketing and advertising
You can offer the best mobile mechanic service in your state but without a proper marketing strategy, customers may struggle to find you. Here are some common marketing efforts that will help you build a strong customer base.
Website: A strong website is the glue that holds all of your marketing efforts together by providing a central location to find prices, services, phone number, and more. Make sure your website reflects what makes you better than your competition. SEO (search engine optimization) is another important factor to include in your website to ensure you are visible to those searching online for your services.
Tek-Tip: Not tech savvy? Tekmetric Marketing can help by offering website building, online scheduling, review management, and more.
Paid advertising: Strategize where your target audience is located and how you can leverage paid advertisements to attract more customers. Possible opportunities include Google ads, social media ads, local event sponsorship and more.
Social media: Social media is a great place to highlight customer testimonials and engage with your audience. Experiment with varying content types until you find what resonates with your customers.
Traditional marketing: Mailers, business cards, flyers, billboards and direct mail can all be impactful marketing tactics for local businesses. Considering adding a QR code pointing users to your website or adding coupons to incentivize customers.
Referral program: Testimonials go a long way for word-of-mouth marketing. Consider offering a discount on future services for each new customer they refer to your business.
Email: Email marketing is a great way to retain existing customers by offering incentives or coupons to ensure your car repair business stays top of mind. Another impactful email marketing tactic is to send oil change reminders to existing clients.
Closing Thoughts
Starting a mobile mechanic business can be intimidating but the flexible working hours, independence and profitability make it worthwhile. Being a small business owner is not for everyone, consider starting out as part time and move into full time as your profitability grows. Don’t forget to utilize your network to learn industry trends and new tactics to grow your business.
Repeat jobs are common in auto repair work. How often does a customer walk in and ask for something common like an oil change or a tune-up? Or does your shop specialize in one type of vehicle, and you're constantly handling the same repairs?
What if we told you we could help you build those most common repair orders in a matter of seconds? That way your service writers can focus on providing amazing customer service every time.
Because let’s face it, regardless of the job, your customers are relying on your team to provide the same quality experience they're used to in so many other industries. And if you own multiple shops, then your customers are expecting you to provide the same quality of service at each location.
Canned jobs make it easy for your shop to not only save time when building estimates and serving customers but also make it easy to provide a consistent and smooth customer experience -- in the end making your shop even more money by boosting your shop's average repair order.
Repair estimates are the foundation for your shop’s revenue.
How you estimate work and send those findings and estimates over to your customers will shape your shop’s profitability, your customer relationships, and how professional you come across to your customers.
Some shop owners might be tempted to use the free online car repair estimator tools to run their own estimates. But will this shortcut actually help your shop get to where you want it to be?
What Is an Auto Repair Estimate?
When customers come to your shop for repair work, they’re expecting a standardized process with an estimate for all the work your shop will be completing. Typically, as you'll know, this meant paper printouts or even manually, hand-written checklists.
But paper leaves a lot to be desired. As shop management systems have shifted from pen and paper to digital, and more recently from older digital software to modern cloud-based solutions, shops have access to way better tools than ever before.
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