Scaling Your Auto Repair Business With Real-Time Reports

|

March 24, 2022

|

Read time: 3 min

Prasanth Chilukuri understands the challenges that shop owners face each day with gaps in their efficiency and margins, which is why he co-founded Tekmetric with Sunil Patel in 2016.

Vehicle Service Pros published some of Prasanth’s tips for strategically growing an auto repair business with a shop management system like Tekmetric.

You can access his full piece here, or check out some of the highlights below.

Balance Is Key to Making Better-Informed Business Decisions

Shop owners make countless daily decisions that affect their customers, their team, and their business.

Making good business decisions is essential to keeping everyone happy and keeping the lights on in the shop, but how do you know what the right decision is?

According to Prasanth, the key to any successful business is finding the right balance between soft skills like intuition or relationship-building and hard skills like data analysis.

Both types of skills are important, but knowing when to employ each one is the trick to making better-informed decisions and growing your business.

Intuition is useful when shop owners have to make split-second decisions and often goes hand in hand with interpersonal skills. The auto repair industry isn’t just about cars, after all; it’s about people, too.

By learning how to pick up on cues and anticipate the needs of customers, employees, and vendors, shop owners can foster long-lasting relationships that grow alongside their business.

Of course, there’s only one way to know whether your shop is truly turning a profit: look at the numbers and analyze the results. Data can support any hunches you have about the health of your business, for better or for worse, so you can plan accordingly.

But if your shop is still tied to manual methods, gathering key information about parts usage and labor costs is probably not easy or convenient.

Why Manual Methods Just Can’t Keep Up

A shop management system might not be able to make business decisions for you, but it can help shop owners make sense of their key metrics and data. According to Prasanth, looking at the cold, hard facts is essential to boost the efficiency and profitability of the shop.

The science of data might seem contrary to the art of intuition at first, but they’re more related than you might think. As Prasanth describes, data can add support to a shop owner’s intuition or observations and reveal key information that can’t necessarily be gathered from conversations with customers and employees.

Unfortunately, trying to sort through the shop’s data by hand can be exhausting and often means missing family dinners to crunch the numbers after hours. And manually calculating daily, weekly, or monthly metrics can quickly become a headache with much larger room for human error.

Without real-time reporting tools, inventory counts and gross profit can’t necessarily be trusted and will always provide an out-of-date view of your business at best.

Being tied to manual processes for data collection also means being tied to the shop and losing out on valuable face-to-face time with the customers supporting the business.

As a result, shop owners are often left making the difficult decision between nurturing their intuition and building relationships, or focusing on the data and shop profitability when both are essential to the long-term success of the business. With Tekmetric, you can do both.

Get the Full Picture With Tekmetric

Tekmetric is a shop management system that comes fully equipped with business reporting tools within a repair orders software suite.

Tekmetric tracks key performance indicators like employee efficiency, parts usage, and profitability ‘round the clock so shop owners can focus on the more high-level aspects of their business.

Real-time reports are always available with numbers that are already calculated and organized.

A bird’s eye view of the shop gives shop owners the power to tailor their business plan and strategy by:

  • Adjusting parts and labor matrices to maximize margins
  • Extending or removing a running promotion
  • Deciding to add more people to the team
  • Knowing when it’s the right time to expand the business with new bays or by opening a new location

Reading Your Shop’s Report Card

Conference season is still a couple of months away, but part of growing a business is keeping up with industry trends and seeking out learning opportunities. Prasanth wants to make sure that shop owners are educated about the abundance of tools available to them year-round.

And he also understands that getting acquainted with a new shop management system can be a bit of a learning curve, especially with so many different reports to sift through.

Prasanth and Sunil built Tekmetric with shop owners in mind, making sure data visuals are intuitive and easy to understand. At just a glance, shop owners can clearly spot data trends and adjust the shop’s operations as needed.

Real-time reports generally fall into one of these four categories:

  • Financial Reports: End of Day, Sales, Tax, etc.
  • Employee Activity and Labor Reports: Efficiency and Sales
  • Customer Activity Reports: Job History, Declined Jobs, Lead and Marketing Source
  • Parts Reports: Parts Ordered and Parts Usage

Financial Reports

These reports help shop owners assess the health of their business by tracking trends in the day-to-day operations and profitability of a shop within a specific time range.

Knowledge is power, and having a clear view of your financial forecast is crucial to making financially responsible decisions.

Employee Activity and Labor Reports

Tracking employee-related metrics is essential to keeping track of shop morale.

Staying clued in to what’s happening with productivity, Close Ratio, and Average Repair Order totals can help shop owners make informed decisions related to employee management and training.

Customer Activity Reports

Providing good customer service can be a differentiating factor for building customer loyalty.

Customer activity reports help shop owners keep track of how each customer interacts with the shop and what keeps them coming back.

The Declined Jobs report also makes it easier for service advisors to follow up with customers and help maintain their vehicles.

Parts Reports

It can be frustrating when the numbers don’t add up. Tekmetric makes parts management and reconciliation a breeze so that shop owners can ensure they are buying the appropriate parts and pricing them accordingly.

The Winning Formula for Shop Success

If you ask Prasanth how to run a business, he’ll tell you it’s an art and a science. The key to making good business decisions is following your gut while also supporting your hunches with real-time data.

Even if the numbers aren’t where you want them to be, Tekmetric’s real-time reports give you the data and insights you need to turn things around for your business and for your team.

The winning formula for shop success starts with you.

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

FAQ

similar articles

However, it’s important to stay consistent in also attracting new customers rather than relying solely on the group of existing customers you build up as your shop expands its reputation for good repair work.

While walk-ins are certainly a thing, it isn’t the best bet to depend on them as your sole way of getting new customers. Instead, take proactive approaches to gain a steady stream of new customers coming through your doors.

In an era where digital solutions are rapidly transforming industries, the auto repair space is no exception. Fortunately, in addition to increasing efficiency and streamlining customer service, this growing reliance on digital systems also offers an opportunity to enhance transparency. Transparency is essential to building trust and empowering vehicle owners with the knowledge they need to make informed decisions regarding repairs. When leveraged correctly, digital solutions can bridge the gap between auto repair shops and customers, creating opportunities for transparency from the moment the customer brings the vehicle to your shop to the final payment and pick-up.

Using Technology to Educate Your Customers

In an industry where trust is paramount, educating your customers is one of the best value-adds you can offer. When done conveniently and thoroughly, education can help the customer better understand their vehicle’s problems, the necessity of the proposed repairs and what additional repairs need immediate attention. This in turn allows them to make the best decision for the health of their vehicle and their safety as the driver.

Digital solutions can play a significant role in educating customers. In conjunction with the technicians who complete the repair, service advisors are in a unique position to educate the customer about their vehicle and repairs. When the service advisor takes the time to clearly share the technician’s diagnosis and proposed repairs, the customer can better understand where their money is going. Digital solutions can help streamline this process, which makes customers more likely to approve repairs – ultimately driving your average repair order. Some digital solutions include:

  • Digital Vehicle Inspections. Aside from cost, customers care about two things when it comes to repairs: what repair is needed to get the car back on the road, and how long it will take. DVIs fulfill both needs – and they provide the information in a digital format the customer can easily access and understand. With the right mix of photos and videos sent to the customer, vehicle owners can see the healthy and unhealthy parts of their vehicle. By using DVIs as a tool to educate your customers clearly and conveniently, you can foster a relationship based in trust and transparency from the beginning.
  • MotoVisuals. Tekmetric’s MotoVisuals integration makes explaining tricky car problems easy. MotoVisuals offers a wide selection of simple-to-follow animated videos about general vehicle repairs to accompany your DVI. By sharing a MotoVisuals video with the vehicle owner, you can leverage top-notch visuals to effortlessly explain repairs without confusing tech jargon. This can help make it an easy “yes” for the vehicle owner when it comes to approving repairs.  

Building Trust by Meeting Customers Where They Are

A big part of establishing transparency in your shop is creating convenience for your customers. Through convenient digital tools, you can share information with customers easily and clearly in a format they can access anytime, anywhere. For example, by facilitating a convenient, two-way digital conversation, you can share repair updates and answer questions all through a simple text. You can even share photos and videos to further illustrate your recommendations. When customers can text you and get immediate responses, they can rest assured that your shop will meet their needs in an efficient manner.

At Tekmetric, two-way texting and text-to-pay both build on convenience through transparent communication, from repair questions to financial needs and payment options:

  • Two-way texting. Two-way texting allows for open communication between your shop and the customer in a format that is accessible anytime, from anywhere. Nearly all parts of the repair process can be completed via text, from sharing DVIs to gaining customer approvals.  Customers can view images of their car and ask questions, and the service advisor can respond with clear explanations or even share videos through MotoVisuals. This also creates a simple, transparent record of the repair process, including time and date stamps, whether a customer viewed the message and more.
  • Text-to-pay. Vehicle repairs are often one of the most expensive purchases a customer can make. Therefore, it’s important to offer financial options that are easy to access, so they can easily review the invoice and submit payment. Text-to-pay provides the tools shop owners need to offer a seamless, convenient payment experience for customers, while keeping data secure and fully integrated into the Tekmetric system.

Establishing Transparency Through Secure Digital Payment Options

Transparency is critical from start to finish in the auto repair process. You work hard to establish and build trust with the vehicle owner throughout the repair – so it’s crucial to maintain the same level of transparency at the final touchpoint: the payment. After the repair, you should offer a secure form of payment your customer will be able to review, clearly understand and complete in a format that is easiest for them.

  • Buy Now, Pay Later. When it comes to finances, most repairs are surprise purchases for vehicle owners. Even with a budget, there is no way a customer can anticipate the exact cost of the necessary repair ahead of time. By offering payment installment options through Buy Now, Pay Later, shop owners can demonstrate transparency about the total cost of the repairs while providing options for financing so the customer can complete the repair while adhering to their budget.
  • Integrated Payments. Shops run more efficiently with integrated payments due to a visible, centralized location. Integrated payments allow customers to pay without being at the shop or needing a physical credit card. Within one click, the customer can pay, streamlining the final part of the customer experience and maximizing the shop’s workflow through a quick and painless payment process.

Transparency fosters greater trust and loyalty between auto repair shops and vehicle owners. By providing clear and open communication throughout the auto repair process, shops can build stronger relationships, gain new business and increase customer satisfaction. The more transparent you are, the greater the vehicle owner’s trust in your shop. This enhances your reputation and your business performance, leading to more customers, an excellent customer experience and ultimately greater profitability.

Enhancing Customer Transparency with Digital Solutions

September 30, 2024

Read time: 3 min

read more

Your automotive shop is the beating heart of your business. A well-designed basic auto shop layout can streamline operations and refine your business.

When you plan to refresh your auto mechanic shop, consider how to make efficient use of your available space, enhance safety, refine the look and feel of the shop, and improve customer comfort.  Most of all, upgrading the technology that forms the backbone of your business is a major component of a modern auto shop. 

Manage space effectively

No matter how much square footage your shop has, you can maximize your layout to house everything you need. Consider the size and shape of your space before you commit to a specific layout. Evaluate the services you currently or intend to provide so you can plan your space safely and efficiently. 

Some of those considerations include: 

  • Equipment locations: Look at your  permanent installations, such as lifts and compressors as well as movable items.
  • Storage: Organize storage areas so parts and equipment are easily accessible and tidy, both making them easy to find and improving your shop’s appearance and parts storage.
  • Working areas: Set up your workbenches and counter space so technicians can perform detail work away from the vehicle. 
  • Loading bays: Verify your loading bay areas have adequate clearance.  
  • Waiting rooms: Design an appealing space so your customers have a clean, well-lit, and comfortable place to wait. 
  • Administrative offices: Make sure your employees have all the tools they need to keep the business running efficiently.  

Effective space management also plays a big part in keeping an auto shop safe. 

No items found.
5 Design Ideas for an Efficient Auto Shop Layout

July 11, 2023

Read time: 3 min

read more