If you’re watching this video, the odds are that you are an automotive shop owner. One of the ten knowledge principles we at You Net Results teach is to know your True Cost of Doing Business. What does that mean? You need to ask yourself how much it takes to build an automotive repair shop that is financially healthy.
There are so many pitfalls and mistakes that repair shop owners can make. It’s up to you to make the effort to understand your profit and losses, as well as regularly review your score sheets. Only then can you stack up cash and set yourself up for success long term.
True Cost of Doing Business Discussion Recap
Gary Gunn, AAM opens up this clip, in which he is detailing the ten financial knowledge principles. Knowing the true cost of business means knowing what it takes to be financially healthy in the automotive repair industry. Knowing your numbers, as well as how to read them, is essential for any auto repair shop owner.
He went on to tell a story of an owner in his class years ago. This owner declared that he planned to slash repair prices because he had paid off his shop’s building. Gary literally asked him to leave the class. This kind of thinking doesn’t come from a smart business mentality. Rather than subtracting from his monthly income, he should have invested the money he previously put toward his building expense. Stacking up cash today could mean weathering a major storm in your future, or even retiring early!
Educate yourself. Look at your scorecard daily, weekly, monthly, and annually. If you estimate your true cost of doing business too high, then you are putting undue pressure on yourself and your team.
Brian and YNR Member Andy read a passage from Gary Gunn’s book Turnaround Point – The Recipe for Going Broke. Are poor auto repair systems and processes leading to you ultimately shutting your doors? Read on for some tips to dig your shop out of the hole.
Going Broke Discussion – Is It Too Late?
Andy opens the clip reading an account of Larry, a shop owner who was definitely going broke. His shop was not open on Saturdays, and potential customers instead went to a competitor. He also required clients to set appointments for their repairs. The reason? He was worried that too many cars in the queue would cause chaos that his staff couldn’t handle.
Brian tags in to read the hard fact that the automotive industry has changed. You can’t require every customer to set appointments anymore. Limiting your potential business like that makes you a “no” company. If your customers do not get a “yes, today” answer from your service advisor, they will take their money elsewhere. A six day per week 7am-7pm schedule is a great idea to help open yourself up to new business by adding convenience. Besides, if you are worried about handling more customers, then maybe it is time to think about hiring more staff and examining your current systems and processes.
In addition to understaffing and delaying your customers, low parts margins and poor phone skills are factors in going broke. Leave no stone unturned, because your livelihood and your staff’s financial wellbeing, could depend on it.
Learn More – Get Your FREE Strategy Session
Does your auto repair shop lack direction? Could you really be going broke? Perhaps your business plan has stalled out. Therefore, you need an experienced automotive industry coach to help you. Then why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!
As an auto repair shop owner, it’s easy to get caught up in the day-to-day and forget to take time to celebrate your successes. But it’s important to take time to reflect on and celebrate your wins, both big and small. Here’s why celebrating business wins is important.
4 Reasons To Highlight Your Wins
It keeps you motivated. When you constantly see the results of your hard work, it’ll help motivate you to keep working hard, striving for even more success. The little business wins deserve celebration, because it helps build a head of momentum. It will protect you against the little losses over time.
It helps you attract and retain top talent. If your employees feel like their successes are being recognized and celebrated, they’re more likely to stick around. Furthermore, high-quality applicants will see your business wins on social media. Then, they will look to you as the type of shop they would want to work for. Let people see what you do so well, and let them come to check it out for themselves.
It makes your customers happy. When your customers see that you’re celebrating your business wins, they’ll be happy for you. They’ll also be more likely to continue doing business with you. Furthermore, customers want to know their money goes to the best of the best. Showing your wins is a great way to signal that.
It strengthens your brand identity. By taking the time to celebrate your successes, you’re reinforcing what your brand stands for. This will help it to become even more recognizable and iconic.
Celebrate Win-After-Win With Business Coaching Through You Net Results
So go ahead and take the time to celebrate your next business wins. You deserve it! Not only will it make you feel good, but it’ll also help keep you motivated, attract and retain top talent, and make your customers happy. All the while, it will strengthen your brand identity. All of these are good things that will help take your business to the next level!
Book a complimentary consultation today! Brian Gillis and team will help build your leadership foundation and plug you into a vast network of auto repair shops. We’re here working together to strengthen the industry! Let’s make December the best month of your business life!
True Cost of Doing Business Discussion Recap
