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.
Legal Disclaimer: This article is written for informational purposes only and does not constitute professional financial advice. Please reference section179.org and a professional accountant for advice on financial planning and filing taxes.
As 2020 comes to an end, you might be thinking about all of this year's expenses and wondering what you might be able to write off on your taxes. You may even be considering whether or not to make a big purchase, weighing the tax deductions you could get if you bought it this year versus next.
Is it worth buying that new lift before the year ends? Or should you put it off until 2021?
What is Section 179?
Section 179 of the IRS tax code allows business owners to write off the entire cost of a piece of equipment, renovations, or other assets in the first year instead of writing off an asset a little bit at a time over a five, seven, fifteen, or thirty-nine year period. To give an example, if a shop owner buys a new tire machine, they could either write off the taxes over a seven-year period, or they can use Section 179 to get the entire deduction in the first year.
What Type of Costs Qualify for Section 179?
Tangible business property, including machinery and equipment
Leasehold improvements
Computer software*
*Is Tekmetric Eligible for Section 179?
Generally speaking, off-the-shelf computer software that has been purchased outright is eligible for Section 179. Because Tekmetric is a web-based software and does not make users sign a contract, it is not eligible for section 179, but it does qualify for a standard tax deduction.
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.
As we progress further into the new quarter, it’s important to take stock of the strides Tekmetric has made, as well as build the momentum to continue providing top-notch service and innovative solutions. From launching groundbreaking new features and building deeper connections in the industry, Tekmetric has kept our foot on the gas in the first quarter of 2024 to measure up – in every way we can.
Supporting Shops with Innovative Updates and Features
At Tekmetric, it’s important for us to provide solutions that are relevant to your shop’s needs. Over the last quarter, we focused our efforts on providing updates and features that you have requested based on what you’re seeing in the field. Whether partnering with another industry powerhouse or helping strengthen reporting capabilities, we launched solutions that help your shop operate more effectively and grow your bottom line.
Sometimes two is better than one – and Tekmetric aims to integrate with a variety of industry solutions so you can access a wealth of information in our comprehensive system. For example, earlier this year we partnered with Advance Auto Parts to integrate MotoVisuals, a cloud-based library designed to provide easy-to-understand overviews of repairs to customers. We accompanied this new integration with a webinar led by Tekmetric’s very own P.J. Leslie and David Lyddall, director of MotoVisuals for Advance Auto Parts. Both speakers discussed their commitment to helping create an excellent customer experience and build customer satisfaction through this solution. The MotoVisuals integration is just one example of how we can continue to measure up together.
In addition to integrations, we also added new reports and features designed to make your life easier and help your shop run more efficiently. For example, the Multi-Shop Report offers a comprehensive breakdown of payments across all locations, empowering owners to make informed comparisons and strategic decisions. Additionally, the Labor Sales Report was created to provide details of labor sales when looking at employee pay, providing an additional option to accompany the information available in our Tech Report. Finally, our Itemized Tire Tax feature helps ensure that tire shops can provide clear and itemized tax information according to state legislation.
We also recognize the importance of community in the auto repair industry. As we move forward with the industry’s top trends and new product features, we have continued to invest in building connections and stronger relationships with both industry partners and you – our partner shops.
Building Deeper Connections in the Industry
At Tekmetric, we believe in the importance of long-term investments, whether that is in the product we provide, the people we hire or industry trends that we partake in. Our connection to our customers and desire to serve shop owners drives our day-to-day and motivates us to continue striving for excellence.
One of the ways in which we prioritize connection is through the various events we attend year-round across the country. This allows us to have conversations and build deeper relationships with you – the shops that we serve. Additionally, it gives us a chance to discuss what you’re seeing in the field, as well as what features, products and services you need to succeed. These conversations drive our product innovation process, allowing us to continue providing solutions that support your shop’s growth and forward momentum.
At the VISION Hi-Tech Training & Expo 2024, P.J. Leslie, Head of Business Development, was featured on the Kaizen CPAs + Advisors podcast where he gave insight on using Tekmetric’s numbers to continue enhancing the customer experience. Additionally, in March, we sprang forward, with our clocks and innovations, to the Automotive Training Institute (ATI) Super Conference in Grapevine, Texas from March 13-16. At each event, our conversations with shop owners and technicians brought the need for streamlined processes and enhanced customer communication to the forefront. Both needs are priorities that Tekmetric will continue to build on in each quarter of 2024.
In addition to attending events, Tekmetric also aims to support our shop owners in sharing their own insights and lessons about measuring up in today’s industry. For example, this quarter Brian Jesko, the owner of Trinity Auto Haus, joined us for a webinar, “From Technician to Multi-Shop Owner,” where he shared his journey of scaling his local shop and generating countless 5-star Google reviews to attract more business. One of the biggest takeaways from his webinar is the importance of holding a competitive advantage in service experience as opposed to solely relying on competitive pricing.
Continuing Our Forward Motion to Provide Great Solutions
Tekmetric’s product innovation and strong industry connections have paved the way for us to continue our forward motion into 2024 and beyond. This ongoing progress was recently recognized by G2, as they honored Tekmetric with the title of Top-Notch Auto Repair Software for the third year in a row. Talk about a three-peat! Receiving this award three years in a row is an incredible honor and a testament to both our team’s commitment to providing the solutions you need, and the support and feedback we received from you – our shop owners. However, our work does not stop at this recognition. In fact, we are more motivated than ever to continue bringing valuable solutions to meet your needs as we progress through 2024.
As we entered the year, we took a close look at the upcoming trends to set ourselves up for success while also providing valuable insights to the rest of the industry. After all, we’re all in this together. You may have seen some of these insights from our CEO and Founder, Sunil Patel, in his guest article, “Leveraging emerging industry trends in 2024,” with Vehicle Service Pros discussing 2024 industry trends. As a former shop owner himself, Sunil has a deep understanding of how to use industry trends to your shop’s advantage, and his article includes actionable advice on how to apply growth-oriented strategies, maximize value with efficient data use and meet customer needs with modern solutions – all while remaining poised for growth.
Measuring Up with Tekmetric in 2024
As we continue into Q2 and beyond, Tekmetric aims to continue our momentum, looking ahead to the next solutions we can provide that support your goals as shop owners. We want to be a team that plays our A-game each quarter, and we are excited to continue working with you to take your business to the next level. Cheers to a great first quarter at Tekmetric!
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