Strategic Auto Shop Business Plan - Part I

ProfitBoost

Web based automotive shop management software solution could show you how much money you are leaving on the table.

Chances are, you know your business like nobody else. The day-to-day operations are second nature to you, you open the doors, you answer the phones and you repair cars. You have done it for so long it could almost be on auto pilot.

Here's the thing: inflation is driving up the cost of parts (and practically all other expenses), employees are looking for raises and more benefits, and customers are clamoring for savings.

How do you navigate through the sea of numbers behind the work you do? If your answer is Quickbooks, that's just the raw numbers. What do they really mean, when it comes to making a profit? Profitboost, a web based automotive repair shop management system can help you find the answer to that.

Here's an example. 'Bobbie' owns a transmission repair shop, (but this same story happens in every auto repair shop) and has been in business for d ecades. They create numerous work orders each day, the staff works hard every day, they are paid a fair wage and all the bills are paid on time. However, this week, Bobbie notices that meeting payroll is going to be a problem. The money just isn't there. What happened?

The answers, in this case, are several:

  • Bobbie hasn't updated the parts price list from Transtar, Transmaxx,WIT or anyone else in quite a while. Part prices have gradually gone up so a transmission repair isn't as profitable as it once was.
  • While Bobbie tracks employee time cards, Bobbie doesn't track the actual time each employee spends on each job. Some jobs are taking two and three times as long as the labor guides estimate them at Bobbie has no idea and is losing money on them.
  • All too often, employees are chasing down VIN numbers on vehicles, because they were transcribed incorrectly, or 'forgotten'. More lost time and productivity.
  • Bobbie spends a lot of time playing 'phone tag' with customers, trying to get approval for repairs, instead of running the business.

Most importantly, Bobbie doesn't have a strategic plan for running the business side of the business. Bobbie is in the uncomfortable position of being in a business that owns Bobbie. The urgent need to get jobs out the door crowds out the important need to make a profit.

Fortunately, there's a solution to these problems. There's a way to turn the raw numbers of the business into a clear, easy-to-see path to profitability. PIF Pro is web based automotive shop software that can help you deal with the 'can't see the forest for the trees' problems that plague so many business owners who just want to get the job done, and know they are making a profit.

PIF stands for Profit Index Factor, a fancy phrase for simple idea: truly know your numbers and know that time spent on a job does more than breakeven - but actually make a profit on every part and every hour spent on every job.

The software was designed by a transmission shop owner who had a passion for planning, and wanted to make each step of the business something that can be measured. "What can be measured can be managed."

Each of the problems Bobbie has can be fixed by using this automotive repair software to tighten up the loose ends and remove the 'blind spots' in the business end of the repair shop

In Part II of this series on strategic planning, you'll be able to see that not all automotive software is created equal and how using web based automotive shop management software in your business can improve productivity, save you time, and help you make more money, without sacrificing customer satisfaction. Stay tuned.




Posted on May 31, 2016 in Auto Repair Shop Management



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