Summer is a busy time in the auto repair industry, and 2020 was no exception.
But as the seasons change to fall and winter, we notice that fewer people are taking their vehicles in for repairs. Of course, this varies from state to state. Auto repair shops in colder climates may still see a steady flow of customers as drivers winterize their vehicles.
In most places, a slow down in business is to be expected.
While there may be fewer walk-ins, there are several ways shop owners and service writers can stimulate business and maintain a healthy sales funnel.
Looking at Your Sales Funnel
Your sales funnel can tell you a lot about the flow of your business.
Before ramping up marketing and lead gen tactics (strategies to get new business into the sales funnel), it’s important to look at what’s already in the funnel.
If you already have work in the shop or customers to follow up with, those jobs are going to be the easiest to target and move through the sales process because they’re already halfway there.
Also, by focusing on the bottom of the funnel first, you can identify any hold-ups and make room for new work to come in the door, leading to a more efficient workflow and overall sales process.
Work in the Shop Waiting to Be Completed
Before going out of your way to bring new business in the door, look at the current jobs already in the shop.
Are there any holdups? If so, be sure to take care of those so that you can get those vehicles repaired and out the door, and then collect payment on that work.
If there's a bottleneck at the bottom of your funnel, you probably want to address that before bringing a bunch of new work through the door.
Tek-Tip: Use Realtime RO Reporting on the Shop Dashboard
By looking at the “job board view” of Tekmetric’s shop dashboard, shop owners and service writers can see a snapshot of what’s going on in the shop at any given moment.
You can look at the number of dollars you’re sitting on in the “work not started” status.
If an RO has been approved but the work hasn’t been started and you’re not sure why this is a good opportunity to talk to your technicians to see what the holdup is.
If it seems like there are many jobs that are delayed, it might be time to consider hiring more help, provide coaching, or create a more efficient process.
Customers with estimates waiting to be approved
After taking care of work that’s already in the shop, the next easiest target for more work is going to be anyone who you’ve already sent an estimate to that hasn’t approved the work.
Chances are, these guests are shopping around for the best estimate. But in some cases, customers get sidetracked and may have simply forgotten to follow up.
Giving these folks a courtesy call to say, "I just wanted to follow up to personally answer any questions that you may have about the work that we're recommending" is a great way to earn their business because it shows that you care about fixing their problem and that you didn’t forget about them.
Even if your shop isn’t the cheapest by a long shot, customers who are shopping around are likely to see the value in going with the shop that is attentive enough to give them a call back to check-in.
Tek-Tip: Use the Tekmetric Job Board to See the Status of Estimates
Tekmetric’s job board uses icons to show service advisors the status of an estimate.
The paper airplane means that an estimate was sent to a guest, but it hasn’t been opened.
Once the customer opens the estimate, the icon will change into an eyeball. Near the icon, it will also tell you how long ago it has been since the estimate was sent or viewed. Service advisors and shop owners can use this information to start a conversation with their customers.
Tekmetric also has two different views of the job board: column view and list view.
In list view, you can prioritize the order of those estimates to put the people who have viewed it at the top, the people who received it next, and then everyone else who you haven't quite finished up with at the bottom.
So now you have a priority of who you can start calling.
Declined Jobs & ROs Saved for Later
Further up the sales funnel are your declined jobs and ROs saved for later. It’s important to remember that many vehicle owners wait until right before a critical event to get their vehicles repaired.
For instance, if someone brings their truck into the shop to fix their suspension and you notice that their brake pads should be replaced soon, the customer may wait a few weeks or months until they feel like their brakes are just about to scrape the metal.
Depending on the condition of the brakes, a service advisor might put it on the estimate (and in this scenario, the truck owner declines the job to focus on their suspension) or, if it seems like the brakes do in fact have a few months of mileage left, they may save it as an RO for later.
Declined jobs and ROs saved for later are great ways to reconnect with a guest.
A simple courtesy call to check in with an existing customer who may need work soon is an excellent way to remind them that their vehicle needs maintenance before a critical event occurs, and it's also an opportunity to bring more work in the door.
Tek-Tip: Use Tekmetric’s Declined Job Report and Customer History
Tekmetric’s declined job report consolidates all of your shop’s declined jobs in one easy to view list.
During slow months, your service advisors can open the declined jobs report and go down the list, using notes to determine why the customer declined the job and whether or not they might be interested in revisiting the work soon.
To take this one step further, the service advisor can also look at the customer’s history to determine if there are any hold-ups to getting certain repair work.
For instance, if the customer history shows that they come into the shop frequently but tend to spend small amounts at a time, you can make them an offer or throw in a free oil change to sweeten the deal.
Generate New Customers with Marketing
Once you’ve worked your way up the sales funnel to complete any jobs in the queue and catch existing customers who either haven’t responded to your estimate or need work soon, you can start focusing on catching the attention of new customers.
When it comes to generating new business, the initial questions to ask yourself are, “Where are my target customers?” and “Where is my existing business coming from?”
By keeping track of your marketing sources—referrals, promotions, mailers, social media channels, etc.—you can get a better sense of the best place to put your efforts.
Every time a new customer comes in, it’s good practice to ask them, “How did you hear about us?” If it’s an existing customer, you can also ask, “What brings you in today?”
They may just tell you that they need work done, but sometimes they’ll answer with a certain promotion or advertisement, which can help you gauge the effectiveness of certain efforts.
If it seems like a certain tactic works better than others, that may be the first marketing effort to invest more money in when times are slow.
Tek-Tip: Use Tekmetric’s Marketing Source Report to Gauge the Effectiveness of Your Marketing
Tekmetric’s RO Marketing Source report gives shop owners a clear view of how successful each marketing effort is in terms of total sales, new sales, repeat sales, GP dollars, GP percent, and close ratio.
These metrics not only show you where your audience spends the most time but also shows you which segment of your audience is bringing in the most profit.
For instance, you may notice that Facebook brings in a lot of ROs, but you have the highest close ratio with people who read Yelp reviews.
If that’s the case, you may want to solicit more positive Yelp reviews from customers.
Accelerating Your Shop’s Business Takes a Comprehensive Approach
It’s important to consider your entire sales funnel when trying to boost the amount of work and dollars coming through your shop.
While marketing is a great way to get your name out there and bring new vehicles and faces into your shop, it’s just as important to nurture the relationships that you already have.
If it seems like there’s an existing customer that you can help with service, it’s a good idea to reach out and check in on them.
As always, keeping track of your job history, customer preferences, declined jobs, work in progress, and how your customers hear about your business is going to make it a lot easier to make calls and pull the right levers.
While this may seem like a lot to keep track of, a well-organized, easy to use shop management software like Tekmetric can make collecting and reviewing this information feel like second nature.
We get that looking for a new shop management system can be overwhelming. There are a lot of options to wade through, and a lot of features you need to learn about. But most are probably of you are probably thinking “can this tool do what I need it to?”
To help you wade through all the options out there, the best way to find the right tool for the job is to look for information from the people using those tools every day. That means shop owners, general managers, service advisors, and technicians.
Of course, word of mouth is great, and it's always awesome to get the chance to talk to shop owners and workers in person at industry events, but you don't have to wait. With so many resources at their disposal, we wanted to help shop owners looking for a new shop management system leverage the wealth of information out here like online reviews, user groups, and case studies to help them make the best decision for their team.
At Tekmetric, we understand that data security is more than just a priority—it's a responsibility. That’s why we are excited to announce that Tekmetric is now ISO/IEC 27001 certified! Combined with our SOC 2 Type II certification, this achievement underscores our commitment to keeping customer and partner data safe and maintaining systems that operate at the highest standards.
What is ISO/IEC 27001?
ISO/IEC 27001 is the internationally recognized standard for Information Security Management Systems (ISMS). It represents a comprehensive framework for managing and protecting an organization’s information assets, ensuring confidentiality, integrity, and availability of data.
To obtain this certification, Tekmetric went through rigorous audits and a thorough examination of security protocols, risk management practices, and data protection measures.
As we continue to innovate shop management solutions to best support our customers, achieving this certification reinforces that our platform and internal workflows protect the highly sensitive data customers and partners trust us with.
What This Means for Tekmetric Customers
For Tekmetric customers, achieving ISO/IEC 27001 certification means you can trust that we adhere to the highest standards for information security.
Enhanced Data Security & Trust: Our certification guarantees that Tekmetric has stringent security measures in place to safeguard sensitive data, including customer information, financial records, and business data.
Reduced Risk of Data Breaches & Security Incidents: By adopting a proactive approach to risk management, Tekmetric minimizes the likelihood of security breaches and disruptions
Compliance & Regulatory Alignment: Our ISO/IEC 27001 certification helps customers demonstrate compliance with data protection regulations, such as GDPR and CCPA.
This certification reinforces our commitment to safeguarding your data, providing you with peace of mind and confidence in our Shop Management platform. To learn more about all our certifications and our commitment to security, visit our Trust Center.
When it comes to starting a business, you have a lot to consider.
How are you going to make sales?
Are your operations in order?
How will you approach legal, HR, and marketing?
But it’s important to not forget about one key part to getting your business off the ground: funding.
You’ll want to be well-versed in what to look for in a potential partnership whether you’re in the startup phase, the expansion phase, or even in a plateau phase.
By better preparing now, you’ll set your company up for future success.
Recently, Prasanth shared his thoughts about different kinds of funding with Texas CEO Magazine. You can read the full piece here, or check out some of the highlights below.
Determine The Right Equity Path For Your Business
The first step for any business owner should always consist of researching and selecting the right method of funding for your company. Once you’re confident in your company’s business model, your company’s current state, and any future aspirations for your company, you’ll want to determine the right equity path that can take your company where you want it to go.
1. Venture Capital
Venture capital is a more traditional route and is optimal for new entrepreneurs. If you have an idea for a potential business venture but aren’t sure exactly what to do with it just yet, venture capital could help you secure funding so that you can bring your ideas to fruition.
With venture capital, your partner will purchase a significant portion of the company, and in turn will offer support and guidance to nurture your company’s growth
2. Growth Equity
If your company has already excelled in the starting phases and needs another boost to continue expanding, you’ll want to consider growth equity—otherwise known as “rocket fuel.” Growth equity tends to be founder-centric and offers more autonomy and room to remain true to your company’s original core values and business model.
3. Private Equity
Companies that have reached the later stages of their business’ lifecycle may opt for private equity.
This route can be a good contender for companies that are at risk of going under due to lack of profits. Private equity can give your company the boost needed to prevent it from closing up shop.
Whoever you choose to partner with will take a large portion of your company’s ownership and will make significant changes to the company. However, the private equity route tends to yield bigger checks.
What Did Tekmetric Do For Funding?
Prasanth knows how important the right funding for your company is.
Prior to 2021, Tekmetric was in the startup and the small business stage, so the initial funding from friends and family was an avenue that worked out really well at the time
After 2021, Tekmetric started to expand exponentially. Tekmetric’s Co-CEOs and Co-Founders Prasanth and Sunil Patel realized that more growth could be possible if they changed from their personal network funding to the growth equity route.
Growth equity provided funding for additional initiatives, such as marketing, product research, and hiring. In turn, Tekmetric was able to pursue the vision that Prasanth and Sunil had outlined during the company’s beginning stage.
Find The Right Partner
You’ll want to be intentional about choosing any of your partnerships as a business owner, especially when it comes to finding the right funding partnerships.
The partner you decide to go with will help determine what your business’ tone and future will be like.
As you’re determining the right partnerships for you, ask yourself 5 questions:
Is the partner aligned with my business goals?
Do I trust this partner with my team and my business?
What will my relationship with this partner look like?
How much day-to-day involvement in my company does this partner expect?
Does this partner provide a reasonable amount of funding to support my goals?
No matter what equity direction you take, you’ll want to find a partnership dynamic that works for you, your business, and your team. As you’re choosing the right partner, remain transparent about any goals and expectations you have in mind for your company.
You won’t want to choose a partner solely based on numbers. The partnership will be a long-term business relationship—a marriage of sorts—and you should treat the partnership with thoughtfulness and respect.
What Did Tekmetric Do For Funding Partnerships?
At Tekmetric, Prasanth and Sunil knew whichever partner they selected to provide funding would play a significant role in the company’s future, and would have a strong impact on Tekmetric’s overall tone, goals, and growth.
At the time Prasanth and Sunil started looking for partners, Tekmetric was a well-established name throughout the auto repair industry, so they wanted a partner that would work alongside them, not just someone who would give them money and stay at a distance.
Eventually, Tekmetric found the right partner—one who is not only sensitive to the company’s needs but also the needs of Tekmetric’s customers.
Tek-Tip: Always ensure your partnerships are a two-way street.
As an auto repair shop management system, Tekmetric has long realized the importance of mutually beneficial partnerships. We’ve established partnerships along the way with companies like Mechanic Advisor and Advance Auto Parts Pro Solutions to help us better meet our customers’ needs. In fact, Tekmetric has more than30industry partners (and counting) to ensure the most seamless possible experience.
Want to assess your general partnerships beyond funding? Find out what you should consider as a shop owner before entering into an auto repair shop partnership here.
Remain True To Your Business Yourself
No matter the equity path you choose to go or the partnerships you choose to take, you’ll want to stay true to your business’ core values and who you are as a business owner.
Rather than cutting corners, you can opt for the best possible solutions.
Prasanth said it best: financial support and equity can be confusing, and it’s easy to get lost in the numbers and forget why you started your business in the first place. However, the right partner will make all the difference.
After all, if you are putting significant time and effort into your idea, your company, and your team, you should expect a partner who supports your continued success long into the future.
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