Order too many parts and your money and space are tied up in inventory. Order too few and when you run out of what you need, projects come to a standstill while you wait for a delivery. That’s why you need a solid auto parts inventory management system.
Auto parts inventory management is a process that helps you decide when to buy, store, use, or sell auto parts, so you can be sure that items you need are in stock when you need them. This requires tracking parts you have on hand and streamlining the process of reordering or replacing them at the right time.
An inventory system will help your shop run more efficiently and free up a ton of time. Implement an effective system to tighten up your workflow and take your business to a higher level.
Benefits of auto parts inventory management
Let’s explore what inventory management software can do to ensure you have a steady supply of parts so your shop runs smoothly. Here are a few immediate and long-term benefits.
1. Increased customer satisfaction
Customers are frustrated when their work can’t be done because a part is delayed or out of stock. If your inventory is well-managed, you’ll be able to give quotes and timelines with certainty and give your customers a great experience. Predictability keeps customers happy and loyal to your business.
2. Reduced costs
Efficiently managing inventory will reduce costs in a number of ways:
Prevents stockouts—not having enough of a part in your inventory to meet your needs.
Avoid overstocking—forecasting demand keeps overstock to a minimum.
Carrying costs—the expenses that come with storing additional inventory and stock. When your inventory levels are well-managed, you can save on the costs that come with overstocking.
Overall, your auto parts inventory management reduces costs by finding the sweet spot between too much and not enough inventory. This will give you greater flexibility and access to more financial resources.
3. Improved ordering process
The ordering process doesn’t need to be a guessing game. Inventory management helps you track levels and lead times so your business can determine accurately what parts you will need and when. Organizing this process keeps errors to a minimum and helps you maintain control over ongoing expenses.
4. More efficient scheduling
Predictable scheduling will always translate to happier customers. Tracking your inventory needs in real-time will streamline production schedules and eliminate mid-project downtime.
When inventory and stock are well-managed, everything runs more smoothly. Inventory management helps you look at the history as well as your current demand for parts and forecast your ideal inventory level.
5. Better resource allocation
The less capital you have tied up in inventory, the more flexibility you have to invest in other parts of your business. Instead of unnecessarily using up storage or losing money because of slower productivity, you’ll be able to put those resources to good use, finding better use of the space or making other upgrades around your shop.
6. Optimized time management
Methodically stocked and organized parts help you and your staff to stay on task. This creates a better work experience for your entire company.
To make sure things keep running efficiently, you might organize your inventory based on frequency of use, analyze your ordering practices, and identify a backup supplier for important parts. This pays off dividends in the long term, helping your business run more efficiently and make more money.
Simple ways to improve your auto parts inventory management
Managing inventory doesn’t have to be stressful. There are steps you can take now to improve how you operate in the long term.
Store your parts efficiently
The first step to taking control of your inventory is being intentional about where and how your parts are stored. Have designated places for parts you need frequently. Clearly label packages of small items to mitigate confusion, lost parts, and reduce unexpected shortages. Thoughtful organization is the backbone of a well-managed inventory.
Keep parts stored when not in use
The simplest rules are often the most helpful: if a part isn’t being used, put it away. This habit will prevent misplaced parts and reduce unnecessary clutter. This requires buy-in and consistent effort from employees to maintain this standard.
Perform regular inventory checks
Establishing a cadence for checking inventory will make it easier to spot small issues before they become big problems. If you can’t check everything, identify which parts have the quickest turnover and which parts are the highest value, and prioritize checking that inventory first. Continue to examine and adjust your inventory-check process throughout the year.
Hire and train reliable parts personnel
Human error is unfortunately one of the biggest causes of discrepancies in inventory management. This can happen by cutting corners, like assuming the received shipment matches the amount ordered. Hire and train capable, diligent employees to manage your inventory and prevent errors at key moments.
Use an auto shop management software
Auto shop management software streamlines workflows, creates a central point of communication, and is the best way to get your inventory under control.
Inventory tracking: Track inventory levels in real-time so you have an accurate count of the parts and supplies you have in stock.
Workflow management: Schedule appointments for vehicle repairs or maintenance, see what appointments are coming up, when they’re scheduled, and what you’ll need to get the job done.
Real-time data reporting: See a snapshot or do a deep-dive into your shop’s operational data, like inventory, sales, and customer information.
Centralized communication: Without solid communication, costly mistakes are made. Auto shop management software can modernize how you interact with customers and keep your whole team in the loop.
Manage your inventory efficiently with Tekmetric
With the right auto shop management software, the inventory management process can become an asset to your business instead of a bottleneck or drain on your time and money..
Using Tekmetric’s Inventory, you can track the valuation of your stock either while you’re in the shop or remotely. It gives you the price of each part in your inventory and makes shopping for new items easy.
Tekmetric integrates with your preferred vendors using ordering solutions, like Worldpac, Nexpart, and Advancepro, making ordering simpler and streamlining your workflow..
Your auto repair labor revenue and parts margins are critical for enhancing your shop’s profitability. Adjusting your pricing on parts to make a profit is pretty straightforward.
But when it comes to labor times for auto repair shops…that’s where things can get a bit tricky.
Yes, you need competitive labor rates, but you also need to keep those rates reasonable so you don’t scare off your customers with sky-high prices.
3 ways your shop can make more money on labor:
By using a labor matrix
By creating custom labor rates
By applying a labor guide markup
Before we dive into the differences between these three methods for setting the best labor times at your shop, here’s a quick refresher on the one thing these methods have in common: the labor guide.
What is a Labor Guide?
A labor guide is like the gospel of labor times for auto repair shops. It tells you how long, on average, it takes to complete different types of repair work.
Remember that the times listed in auto repair labor guides are averages, so it’s best to treat them as a starting point.
Maximizing Auto Repair Shop Customer Service: A Guide to Selling Maintenance Work
Training service advisors how to properly sell maintenance work can create more loyal customers.
Drivers typically come in with an expectation of what's wrong with their car, which can make it tricky to sell maintenance work. Drivers might think you're trying to squeeze more money out of them, or may simply have a set budget in their mind and don’t plan on spending extra.
In reality, you're simply trying to go above and beyond and provide them the best service possible. So how do you show that, and which tools will help you transform the way you sell maintenance?
Here’s how to build customer trust while staying true to your auto repair shop’s mission of providing optimal maintenance recommendations.
Why Selling Maintenance Work Can Be a Challenge for Auto Repair Shop Customer Service
According to a survey conducted by AAA, 76% of U.S. drivers said that recommending unnecessary services was the top reason they do not trust auto repair shops. The survey also points out that ⅔ of U.S. drivers have managed to find an auto repair shop that they trust. Whether it’s an independent auto repair shop, or a chain repair shop, trust needs to be at the forefront of the customer experience.
Service advisors may be hesitant to sell maintenance work and only focus on the problem at hand because they don’t want to come off as pushy. But not recommending maintenance work can be a disservice to customers who deserve to know about any and all issues with their vehicle, not just the ones they’ve noticed themselves.
Add a Maintenance-Focused Inspection and Sales Process to Your Auto Repair Shop Customer Service Routine
When it comes to selling routine vehicle maintenance work, it’s important to remember that routine check ups will make a big difference on customer’s cars. Similar to the human body, cars are complex systems. Just like the body has a heart, nervous system, and organs, cars have the engine, the vehicle bus, and the control unit. If one problem is ignored, that could lead to more issues, possibly more serious than the last. For example, if a driver puts off replacing their brakes, it could damage the car’s rotors, which in turn, could lead to loss of braking power. This gets us back to one of the most important benefits of selling maintenance work: it helps your customers stay safe and get as many miles out of their car as possible.
Benefits to Selling Maintenance Work
Regular maintenance makes your customers’ lives easier. It prevents your customers from ending up on the side of the road and prolongs their vehicles’ lifespans.
Customers save money. Maintenance work can prevent car issues from getting out-of-hand, which may lead to spending more on larger repairs in the future. And who doesn’t want to address maintenance work before it becomes a much larger expense?
Providing maintenance inspections helps shops sell more work, which usually means higher ROs and a more profitable repair shop. Also, because maintenance work helps your customers’ vehicles last longer, they’re less likely to buy a new car, which they’ll probably get repaired at the dealership during the first few years.
Maintenance inspections help you queue up more work for the future. Even if they decline the maintenance work, you now have a relationship. You can track those declined jobs, and the service advisor and technician can save time figuring out what all might be wrong with the vehicle and resell that work.
Customers trust you more. When you provide reliable insights into your customer’s vehicles, your like their go-to car whisperer—a trustworthy person who reminds them to check stuff out on their vehicle before anything bad happens
Maintenance by Mileage
Shop owners, we recommend training your service advisors to check customer mileage at each visit and tracking it in your shop's auto repair shop customer service notes. By keeping track of customer mileage on each vehicle, you’ll be able to recommend maintenance work based on how many miles it has been since their last visit.
Mileage
Recommended Car Maintenance
Every 3,000 - 7,000 Miles
Replace oil and oil filters, inspect various fluid levels and wipers, check tires and lights
Every 15,000 miles
Replace air filter
Every 20,000 miles
Inspect battery and coolant levels
Every 30,000 miless
Replace power steering fluid, inspect coolant levels, brake pads, and suspension components, check radiator hoses and HVAC system
Every 35,000 miless
Inspect and replace the battery
Every 40,000 miless
Replace spark plugs and wires, inspect ignition system and suspension
Every 60,000 miless
Replace brake pads and fluid, inspect radiator hoses, timing belt, HVAC system, suspension components, and tires, check coolant levels, and power steering fluid levels
Mileage aside, a thorough digital vehicle inspection of all vehicle’s essential components should be performed regularly.
If you're running an auto repair shop, investing in a car lift is essential. A high-quality vehicle lift makes it easier to work on cars, increases efficiency, and ensures safety. But how much does it actually cost to install a car lift? That depends on the type of lift, installation costs, and other factors such as weight capacity and safety features. Let’s break it all down so you can pick the best automotive lift for your needs.
Do you need a car lift?
Car lifts are essential in auto repair shops because they provide mechanics with better access to a vehicle’s undercarriage, making inspections, repairs, and maintenance tasks safer, more efficient, and more comfortable. Unlike floor jacks, lifts offer a stable and elevated workspace, reducing the risk of injuries and improving workflow.
With a car lift, technicians can quickly perform tasks such as oil changes, brake repairs, exhaust system work, and suspension adjustments without having to crawl under the vehicle. This efficiency leads to faster turnaround times and higher shop productivity.
Additionally, lifts help maximize shop space by allowing vertical storage for vehicles, which is especially useful in high-volume repair shops. Overall, car hoists are a fundamental investment for any auto repair shop looking to enhance efficiency, safety, and the quality of service provided to customers.
Types of car lifts and their costs
Each type of lift has its pros and cons. Some lifts are better for oil change shops and some are better for tire or repair shops. In general, car lifts can cost between $1,000 and $20,000 depending on brand, lift capacity, lift height, and features. Here’s a comprehensive look at the most common lift options for your shop.
Two-Post car lifts
A two-post car lift is one of the most popular choices for auto repair shops. They are popular because they take up less space and can be affordable depending on features. Make sure to plan out your shop layout as these lifts are permanent and cannot be easily moved. These hoists come in asymmetric and symmetric configurations, allowing flexibility based on vehicle type.
Price: $3,000 - $10,000
Best For: General repair shops working on SUVs and smaller cars.
Lift capacity: 5,000 - 10,000 lbs.
Popular brands: BendPak, Rotary, Tuxedo.
Advantages: High lifting capacity while saving space for smaller shops.
Four-Post lifts
A four-post lift provides greater stability and weight capacity, making it ideal for heavier vehicles. If your shop works on a lot of trucks or heavy-duty vehicles, the four-post lift might be the best lift for you. Tire and brake shops should avoid these lifts as the tires sit on the lift making it difficult to work on these areas.
Price: $5,000 - $25,000
Best For: Dealerships and professional shops.
Lift capacity: 7,000 - 14,000 lbs.
Popular brands: BendPak, Titan, Tuxedo, Rotary.
Advantages: Heavier lifting capacity for larger vehicles.
Scissor lifts
If saving space is your top priority, the scissor lift may be your best option. They are almost invisible when not in use and lie flat on the ground to optimize garage space. Double check the lift capacity and height to make sure it can accommodate the types of vehicles you work on.
Price: $1,500 - $10,000
Best For: Quick repair shops where space is limited.
Lift capacity: 5,000 - 15,000 lbs.
Brands: QuickJack, BendPak, MaxJax
Advantages: Compact and cheaper.
In-Ground lifts
In-ground car lifts are a great choice for shops that work on heavier vehicles and want to save space. These lifts are the perfect balance of the space saving capabilities of a scissor lift while also providing optimal strength for large vehicles.
Price: $10,000 - $25,000
Best For: Repair shops and dealerships.
Lift capacity: 5,000 - 20,000 lbs.
Brands: BendPak, Rotary, Atlas
Advantages: Compact while also offering enough muscle.
Portable car lifts
If your shop layout frequently changes or you are a mobile mechanic, a portable lift may be the best option. These lifts can be easily moved around a garage or taken to a job site and are often the cheapest option. However, they can be less reliable and don’t provide the same level of strength as a stationary lift.
Price: $500 - $5,000
Best For: Home garages, mobile mechanics, DIY enthusiasts.
Lift capacity: 5,000 - 10,000 lbs.
Brands: QuickJack, MaxJax
Advantages: Affordable, compact, mobile.
Installation prices for car lifts
Installing a vehicle lift is not just about purchasing the unit. You also need to consider the installation costs, which can vary depending on the type of lift and garage setup. Here are the main factors affecting installation costs:
1. Concrete requirements
Most lifts, especially two-post car lifts and four-post lifts, require a thick concrete base. If your floor isn’t thick enough, you may need reinforcement, which adds to the cost.
2. Electrical setup
Lifts need power, and if your garage isn’t wired for it, you’ll need an electrician.
3. Air compressors & accessories
Some lifts require compressors and additional balancer tools for operation.
4. Professional installation
Hiring a pro ensures the lift is ALI-certified and meets safety regulations.
Choosing the right car lift for your auto repair shop
Each type of lift comes with its own advantages, making it important to choose the right one based on your needs. Here are some things to consider when making your decision:
How big is your shop?
Which repair services do you offer?
What is your budget?
Does the lift offer a warranty?
Will you garage layout change over time?
How important is a car lift warranty to you?
How heavy will the vehicles you work on be?
What is the average review rating of the lift?
How easy or hard is the lift to install?
How much will the maintenance cost?
Final thoughts
Installing a vehicle lift in your auto repair shop is a smart investment. Whether you choose a two-post car lift, scissor lifts, or portable lift, knowing the lift cost and installation costs upfront can help you budget wisely. Whatever you choose, ensure it’s ALI-certified for safety and performance. Lastly, don’t forget about regular maintenance and safety inspections to ensure your lift continues to run for many years.
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