Next Level: Using Data to Open a New Auto Shop Location

Benjamin Johnson

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July 17, 2024

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Read time: 3 min

Within an auto repair shop, data serves many functions: streamlining day-to-day operations, helping service advisors and tracking a shop’s cash flow. But you can also harness the power of data to plan for the future. In fact, strategically leveraging data can help you determine when it is time to open a new location. Think of it as your roadmap to multi-shop success. Data helps you every step of the way, from optimizing your existing business, to creating a plan for a new shop, to maximizing workflow across all locations.

Looking at the Big Picture: The New Location Roadmap

When you start planning for a new location, your strategy should prioritize the big picture of your business, allowing you to strategically determine the process for opening the next shop. Key metrics and analytics can help you monitor your business performance and plan for both the long- and short-term future. Whether you are expanding for the first time or the tenth, leveraging data can help make the process smooth, strategic and simple. It’s as straightforward as 1… 2…3: 

1. Getting Started: Make Your First Location the Best It Can Be

Before opening a new location, ensure your existing shop is optimized. Your goal is to maximize efficiency and productivity, so you can replicate the process at a new location. Take a good, hard look at your numbers, and be honest with yourself about your business performance. Some key questions to ask include:

  • What are your ARO and car count, and can you increase them?
  • How many repeat customers do you have versus new customers?
  • How effective are your mechanics at completing their work? 
  • Will adding another mechanic or bay be enough to support my current levels of business growth?
  • How frequently are customers approving your full estimate or returning for follow-up work on previously declined jobs?

Once you have determined that your existing business is performing at the highest level possible, you are ready for the next step.

2. Creating a Plan: Determine Criteria for Your New Location 

As you look to add a location, it is important to identify your business needs and the assets you have available. Data from your existing location(s) is key to this step. Not only can you analyze business performance to determine your financial ability to open a new shop, but you can also identify opportunities with new customers to target or niche services to offer.   

For example, if your existing location is overwhelmed with customers seeking same day or next day service, another shop might be the solution. Or, if you are targeting customers in a different area of town, building or buying another location closer to the population you are targeting might draw them in. Here are some questions to ask when determining the criteria for a new location:

  • Have I maximized the efficiency of my existing location(s)?
  • Can I afford to build a brand-new shop, or should I buy an existing business?
  • What is my close rate at my existing location(s)?
  • What demographic am I targeting, and how can I meet their needs with this new location?

3. Setting Up for Success: Use Tekmetric Multi-Shop to Maximize Workflow 

Once you have multiple locations, it is critical that you maximize workflow between all locations. You can compare locations using Tekmetric Multi-Shop to monitor performance, track key metrics and determine each location’s strengths and weaknesses. A good question to ask yourself is: how can I leverage each location’s strengths to support continued business growth

First, ensure that you have replicated the optimized processes from your original location(s) at the new shop. You have worked hard to ensure your business was performing at the highest level possible before opening a new location – make sure to keep that momentum moving!

Second, play to the strengths of each location so they support each other. For example, determine which locations are high versus low volume to maximize your technicians’ time at all locations. If one shop is a high-volume location overwhelmed with work, you can leverage a lower volume location by moving some cars there for same-day repairs. Just don’t forget to move the cars back to the original location for the customer’s convenience! 

The idea of multiple auto repair shop locations can seem daunting, but by maximizing your data, you can simplify the process to ensure you are prepared for the next step. First, put all your efforts into running a top-tier business with your existing location(s). Once you are satisfied with your performance, utilize data to establish a clear plan for opening your next location. Finally, use tools like Tekmetric Multi-Shop to maximize workflow and leverage each location’s strengths to support the overall business. This approach will maximize your productivity and efficiency across all your locations, increasing your overall bottom line and keeping customers satisfied. 

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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When it comes to auto repair, a great customer experience can make the difference between a customer returning for future repairs or not. At Tekmetric, we recognize the importance of creating an excellent experience for your shop’s customers that meets their expectations and keeps them returning again and again. To accomplish this, we strive to offer a solution that helps you meet four key pillars of the customer experience: convenience, comfort, trust and loyalty.

Convenience 

For vehicle owners, choosing the most convenient shop is not necessarily about going to the closest shop. Rather, convenience is a matter of choosing the shop that makes their life easier. 

With approximately 50% of all business shopping completed outside of regular business hours, convenience goes a long way – especially when it comes to auto repair. Customers may need to drop their vehicle off and pick it up later, rather than waiting in the lobby. They may even request to complete pick up after business hours. In all cases, convenient solutions can keep the pick-up process smooth and painless for both you and the customer. 

Tekmetric’s two-way texting opens the door of convenience for vehicle owners. Two-way texting meets the customer where they are – anytime, anywhere. The vehicle owner can access updates to their repair process through a simple text, even from their office desk. Additionally, two-way texting can integrate with Tekmetric’s text-to-pay feature, so customers can pay from work or home, then come pick up the vehicle at their own convenience. 

Comfort

Traditionally, we think of comfort in a physical sense. For example, we might say, “that chair is comfortable.” Customers choose who they do business with based on how comfortable of an experience they receive. Having the tools and resources that ease the tension inherent with getting a vehicle repaired is critical to making a customer feel comfortable. One example that is often overlooked is the payments experience.

With Tekmetric’s “Buy Now, Pay Later,” option, shop owners can offer vehicle owners the opportunity to complete necessary repairs and pay in installments over time. An experience like this can make vehicle repair affordable and comfortable, no matter what the customer’s budget is. 

Trust

Trust between an auto repair shop and vehicle owners is paramount. Not only can it make the repair process smoother for all parties during the repair, but it also contributes to building a lasting relationship for future repairs. A customer is more likely to trust you when you have demonstrated that you can create an experience that is convenient, comfortable and transparent. 

Digital vehicle inspections (DVIs) are a great opportunity to educate vehicle owners on the health of their car by providing them with recommended repairs accompanied by photos and videos. Through DVIs, technicians can offer a holistic, transparent evaluation of the customer’s vehicle by highlighting both areas in need of repair and parts that are working well. The result? Customers can gain a better understanding of the technician’s findings, making them more likely to approve work – and return for future repairs. 

Loyalty

Prioritizing customer convenience, comfort and trust contributes to an enduring sense of customer loyalty. Building loyalty drives your shop’s bottom line in the long term. A good experience for one vehicle owner can lead to a domino effect within their personal network, as they return for future repairs and make referrals to others. Therein lies the hidden gem of long-standing, thriving businesses: strong customer loyalty. 

One of the ways to strengthen customer loyalty is through education and clear communication. Our integration with MotoVisuals demonstrates Tekmetric’s commitment to education and clear communication by showing customers what is wrong with their vehicle instead of simply telling them. Informing vehicle owners about the health of their car accompanied with pictures and educational videos creates a dynamic that is forthcoming, honest and geared towards educating the customer while also ensuring the car gets repaired. 

A customer-centric approach can drive your shop’s performance and establish an excellent customer experience. Use these four pillars – convenience, comfort, trust and loyalty – to drive your shop, and you will create a seamless experience for your customers from start to finish. Whether it’s meeting them where they are financially or educating them about a repair, you can establish a consistent, excellent experience that attracts and retains loyal customers now and far into the future.

4 Ways to Create a Better Auto Shop Customer Experience

September 3, 2024

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With the SiriusXM Platinum Plan, customers receive access to hundreds of SiriusXM channels featuring ad-free music plus sports, talk, entertainment, news, and comedy that they can enjoy both in their vehicle and outside the car with the SiriusXM app.

“We recognize the immense opportunity this collaboration with SiriusXM presents for repair shop owners,” said David Weiner, Chief Revenue Officer for Tekmetric. “At Tekmetric, our goal is to provide shop owners with a wide range of options to enhance their customer experience. Enabling a complimentary SiriusXM subscription on our platform is just one way we empower shop owners to offer added value, sustaining loyalty and satisfaction among their customers.”

In addition to enhancing customer experience, this integration is streamlined for shop owners to easily apply it to their shop. With just two clicks, shop owners can seamlessly activate the integration and begin providing the SiriusXM trial subscription to customers as a thank you after service visits. For instructions to enroll your shop today, please click on this link: https://siriusxmforshops.com/Tekmetric.

Starting a business can be a big risk. But if you map out a plan and execute it right, the outcome is well worth it. Having a solid automotive repair workshop business plan in place is especially important if you ever plan on owning multiple shops. 

When you realized that you wanted to be a shop owner, it’s likely you considered the good you can do for both yourself and other people. Helping customers get their vehicles back on the road, and helping service advisors and mechanics grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop. 

Auto Repair Shop Business Plan (9 Step Guide)

May 22, 2023

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