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.
A standard automotive repair order form usually isn’t more than a page or two. It contains vital information like the work to be done on a vehicle, any parts to be ordered, and a cost estimate of all the services to be provided.
While traditional auto repair order forms have served as a reliable method for managing repair orders for many years, it is becoming increasingly clear that they are no longer the most efficient or effective option available.
In fact, there are several ways in which the use of manual auto repair order forms may be limiting the potential of your shop.
Before you begin researching different options on the market, you should ask yourself two key questions:
Am I at the stage where I need a new shop management system?
What do I want from a shop management system?
As you search for a suitable shop management system through automotive repair shop software reviews, it’s important that you diligently research any system you’re considering.
In today’s auto repair industry, data can play a key role in a shop’s ability to repair a vehicle more efficiently and accurately. Traditionally, repair information was documented informally, often by hand on paper. Today, this information can be captured and processed electronically, leading to a significant acceleration of the repair process – and a more positive customer experience.
The transformative power of data extends beyond streamlining individual repairs. In fact, by strategically analyzing your shop’s data over time, you can also use the information to grow your shop. However, to maximize the impact of data, it’s important to know what kind of data is most effective to use in your shop. Some of the more evergreen data – performance over time – is useful in your long-term strategy, while others, such as real-time performance metrics, are more helpful in making short-term tweaks to promote better performance. In this blog, we’ll discuss how you can distinguish between evergreen and real-time data and where you can use both to grow your shop.
Understanding Real-Time vs. Evergreen Data
Before you can decide how to use data, it’s important to understand the difference between evergreen data and real-time data. Real-time data is live data that is available as soon as it is generated. It allows you to manage your shop and respond to situations instantaneously as they happen. On the other hand, evergreen data is used in hindsight, after a timeframe has ended. Most shops use this type of data to reflect after the repairs are complete.
Both forms of data have their uses. Real-time data allows you to respond to situations as they happen in a way that helps support your business. Evergreen data helps you track long-term trends and their effects on your shop. With Tekmetric, you can leverage both types to keep your shop running smoothly. When you leverage data strategically in all forms, you can optimize your shop’s operations and processes, create an excellent customer experience and prime your business for growth.
Stay Ahead of the Curve with Real-Time Data
Real-time data enables immediate visibility into what is happening with your shop at any given time. From inventory to customer communication to repair progress, you can review different buckets within your shop and respond as the day progresses. This capability allows you to make decisions on the fly without having to wait until the end of the day, week or month to know which parts need to be ordered or how many repairs you have completed. Strategically, real-time data can be used for short-term decisions that have long-term effects, ultimately becoming an integral piece to growing the shop’s bottom line.
Examples of how you can use real-time data might include:
Track daily progress with the shop dashboard:Reviewing this in real-time allows you to respond to potential bottlenecks or problems that arise throughout the day. For example, if you see $15,000 in work pending approval before lunchtime, you can encourage your service writers to conduct follow-up calls to get approval and begin the work.
Send out rainy-day coupons: Business tends to slow down on rainy days. However, if you experience this, you can respond in real-time by sending a rainy-day coupon incentivizing customers to come in for quick-turn work, like oil changes.
Monitor multiple shop locations with Tekmetric Multi-Shop: Multi-Shop can show you the performance of each shop at any time, from any location – so you can make decisions that support the strengths of all your locations. For example, you might move a car from a very busy, overrun location to another, slower location. Make sure you return the vehicle to the original location for easy customer pickup to maintain your customer experience. This maximizes workflow between high and low volume locations.
Analyze, Determine and Predict Trends with Evergreen Data
In addition to real-time data, you can leverage evergreen data by analyzing trends and your shop’s data for predictive forecasting. One of evergreen data’s biggest advantages is that it captures a period of time without the need for constant refreshing. This can help you review your shop’s performance over longer periods – year-over-year, month-to-month or quarterly – so you can implement long-term solutions to promote growth.
Examples of using evergreen data include:
Create more business with declined jobs:When you want to influence cash flow for the coming weeks or months, you can follow up on previously declined jobs, such as an oil change or tire rotation. This customer-centric approach can not only build your customer relationships, but also drive business during a slow month.
Create value with Shared Customer History: You can share your customer’s history across multiple locations, bringing extra value through this evergreen data. For example, if a customer asks when they had their last oil change, your service advisor will be able to pull that information within seconds – no matter which location the customer last visited.
Create custom financial reports to track shop performance: Tekmetric’s financial reports give you the power and flexibility to create a report that tracks what’s important to you, without any extra noise, and make decisions based on past performance. For example, you can utilize the Time Period Configuration feature to compare data from the previous year or another custom time period, identifying bottlenecks and adjusting your strategy accordingly.
Track month-over-month trends with comparative reporting: Pay attention to the trends that occur each month in comparison to the same time frame in previous years. This will allow you to spot trends and respond accordingly, such as preparing for a particularly busy season or implementing strategies to create more work in a slower season.
The Price of Ignoring Data
Time is money. Evergreen and real-time data allow you to manage your shop’s time and resources in the most efficient manner to generate profit while providing an excellent customer experience. To grow your shop, ensure you are using both forms of data to your advantage. Combining evergreen data’s longevity with real-time data can lead you to a multi-faceted business strategy, creating a customer-centric approach that ultimately generates more cash flow, profit and growth.
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