More than anything, partnerships should be mutually beneficial to everyone involved. When good partnerships are formed, the whole should be worth more than the sum of its parts.
Why Should Your Auto Business Partner with Other Brands?
For example, McDonald’s burgers make you thirsty enough to want a Coca-Cola, and sodas have a high margin. By partnering up, McDonald’s can lock in their costs on soda and improve their profit margins for the long term.
On the other hand, not all partnerships are beneficial. Partnerships can expand your opportunities but can also force you into making decisions you never intended to make. When McDonald’s decided to partner with Coca-Cola, they had to exclude other soda brands from their locations.
This exclusivity may have been worth it, but it meant removing options from customers, such as Dr. Pepper and Pepsi products. What may have made the partnership intriguing for McDonald’s is the fact that Coca-Cola owns a variety of beverages, including Diet Coke, Fanta, Sprite, Powerade, Minute Maid and Pibb Xtra.
Thanks to a variety of options, McDonald’s is able to satisfy most customers who ask for a Dr. Pepper by saying, “Will Pibb Xtra be okay?”
Partnerships in the Auto Repair Industry
In the auto repair industry, we face similar challenges when it comes to partnering with other businesses and brands.
Potential partnerships may include teaming up with parts suppliers, software companies, marketing and trade show affiliates, and any other service, resource or tool that could potentially improve your shop. In some cases, these partnerships will help shop owners enhance performance, save costs and drive revenue.
Other times, auto partnerships may bind you to an agreement that doesn’t pay off.
Here are some questions you can ask yourself to determine whether a partnership is mutually beneficial or if they’re asking you for more than you’re getting in return.
1. Are You Free to Choose the Tools and Solutions You Want?
One sign of a bad partnership is being forced to do something you don’t want to do. If partnering with another company means taking valuable options off the table, then you may be at a disadvantage.
If your partner implies or directs you not to do business with their competitors because they would like for you to instead use their services or their partner’s services, think it through.
Before officially entering a partnership, imagine your shop one year, five years and ten years down the road. Where will it be then? What will happen if your shop grows? What if innovation has slowed down with your partner? Will you be allowed to innovate your business by using new tools and solutions that become available in the future?
If you’re restricted in a way that prevents you from innovating or adapting to market conditions by testing other products, tools, solutions, and software, you may be handcuffed and unable to compete with other shops.
2. What’s Your Time and Resource Commitment?
A good partnership, like any good relationship, takes time and commitment. Effective collaboration means spending some time up-front so that everyone can get on the same page. But your time is valuable, and the time you put in up-front may not always be worth it on the back end.
Some programs may require significant time dedicated to training, process adjustments or brand initiatives that don’t fit into your current business model. That time could be spent pursuing changes that truly enhance your business performance and align with your goals.
If it feels like you have to change your ways to be a member of an exclusive partnership program, you may be sacrificing more control for the benefit of your partner without an equal return.
Look back at our own BG Canned jobs -- there's no extra work on your end to include these products in your repair order process, making it a seamless and simple way to boost repair order value for both your business, and your partner.
3. Will Your Guests Care?
If your guests get something out of the partnership—whether it’s convenience, savings, or confidence in your products or services—then you may be getting real value out of the relationship as a shop owner. After all, a good relationship with guests is a critical factor when it comes to improving your bottom line.
Sometimes, partnerships such as parts programs can appear more powerful than they are because shop owners may see them as a seal of approval. A banner with a logo from a well-known brand in front of your shop may make you and your employees feel confident, but consider if it really impacts your guest experience.
We see this dynamic play out in gas stations and convenience stores.
It may make gas station owners feel good to have a big Phillips 66 sign or a Chevron logo above their pumps, but most drivers could care less and just need to top off their tanks. Partnerships that require certifications for auto repair shops may give you a feeling of officialdom or accomplishment, but the guest simply needs their car fixed at an affordable price and by a trustworthy crew.
If the majority of customers see no value in a branded partnership, and there are no direct enhancements or savings that can be passed on to them, the program may be lacking and not worth your time or resources.
4. Will Your Auto Partner Truly Care About Your Success?
When assessing a partnership, part of the analysis rests on the bottom line. Will your metrics improve thanks to the partnership? Or will your performance be negatively affected by the program?
A good partnership is based on trust and a mutual commitment to success. You can usually tell right away if your partner is truly committed to your shop or if your shop is just another tally in their sales ledger.
If a partner implies that it’s on you to reach a certain standard before they’re willing to consider working with you, or threatens to end the relationship without trying to help you overcome a hurdle, it might be in your best interest to reconsider or renegotiate partnership terms.
Auto Partnerships Support Your Success
In 2019, Tekmetric was selected by Christian Brothers Automotive to be their shop management system for all their locations. Christian Brothers took partnerships very seriously. After a grueling assessment of the top management systems, Tekmetric was selected.
When our team asked what helps them finalize their decision, they said it came down to this notion that they felt Tekmetric truly cared about their success.
Take it from the Christian Brothers Director of Strategy and Innovation:
Every time we walked away after talking to the people at Tekmetric, we would just say, ‘Man, this is awesome.’ We never had that with a lot of the vendors we worked with in the past
Learn More About Repair Shop Success
As an auto repair shop management solution, Tekmetric has long realized the importance of mutually beneficial partnerships.
We strive to give shop owners the freedom to integrate their marketing, communication, parts ordering tools and more directly into one management system because that makes it easier and more efficient for shop owners to run their businesses.
Every element of your team is critical, from the technicians who complete the repairs to the service writers who assist customers and keep repair orders flowing through your shop management system.
They’re the people who are responsible for directly communicating with guests or working on vehicles. They're the core of your everyday operations, ensuring cars are brought in, estimates move along, and repairs are completed on time.
It is absolutely critical for great shops to start with great talent!
With the power of cloud-based shop management systems, auto repair shops can build the best team possible with the right mindset, culture, and approach to hiring and retaining the best talent.
Old habits are hard to break, especially when it comes to the physicality of handwritten notes.
A pen and a piece of paper can provide a better sense of security—they’re tangible and tactile. In our minds, we view paper as something we “own”, which makes it seem more reliable and easily obtainable.
But is pen and paper more reliable than digital tools?
Although the trusty pen and paper method does have perks, there’s a time and a place for everything. Which leads us to paper’s modern day competitor: digital software.
Switching paper out for a modern, digital format will enhance legibility, make archiving far easier than having file cabinets full of papers, and will strengthen collaboration across your team. Not to mention, you don’t run the risk of a fire or flood destroying your shop’s backed up data the way a natural disaster would with paper files and documents.
Now, this isn’t to say that digital software will replace every single piece of paper; however, software can successfully improve the efficiency of projects—especially when it comes to running an auto shop.
Let’s bring it back to the initial question: is automotive work order software a replacement for pen and paper? The rough answer is "yes," although there may be times where you still want to have paper as an option.
But many pen and paper tasks can be replaced, and should, for better productivity and organization. Automotive work order software can astronomically enhance your shop’s productivity and organization in ways that traditional methods cannot.
In your personal life, paper can take precedence in whichever way you wish. But in your shop, opting in for a digital system instead of pen and paper has more pros than cons.
When you started your auto repair business, you probably had to make some big investments, including property, equipment, and employees. Now, to take your shop even further, you might be considering investing in a shop management system.
A shop management system can quickly transform your shop. An ideal system helps you create more efficient workflows and keep track of critical metrics so you can make savvier business decisions.
However, the idea of transformation can cause some doubts. You might be worried that your team might not even like using the shop management system, that adjusting to change will take too long, and that the software ultimately won’t end up paying for itself.
To eliminate doubts, it’s important to find the shop management system that will:
Transform your shop with little hassle, as quickly as possible
Inspire your team to work more efficiently
Grow your business’ profitability so that the investment is more than worthwhile
Free up your time
So, what’s the best software for auto repair shop owners? And what features should you look for? Here’s what you should be considering as a shop owner.
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