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7 Tips for Starting Your Auto Repair Shop Business
While there’s nothing that will guarantee success in the small business world, there are some ways to give yourself an advantage. If you’re seriously considering opening your own automotive repair shop, then you’ll want to check out these 7 tips on what you should do and what you should know to get your business off the ground.
Many people think that most of the auto repair service business owners are technically born, and they have two brushes. Therefore, they often take the lead, they will repair the car for a while, and they will clean the car for a while. The name of the firefighters is not enough for them.
If you are also like this, I suggest you read this article several times!
In fact, as the owner of an auto repair service company, what you need to understand is where you should be, what you should think about, and what you should do to lead the team to make money.
You need to do the following seven things:
1, build the core competitiveness of enterprises
For a company, core competitiveness is the foundation of the foothold, and it is also an important bargaining chip in the market competition.
What you need to know is what is the biggest advantage of your business compared to your competitors? Is technology leading? Is the brand image good? cheap price? Good word of mouth service? Comfortable environment? Or is the enterprise service model complete?
The status quo is that a large number of auto repair service companies are small in scale and full of services, but lack their own core competitiveness.
2, improve brand awareness and establish a brand
Many auto repair service companies lack brand awareness, or there is no brand concept at all. This is the status quo of the industry: the lack of well-known brands in the field of auto repair services. This is actually the opportunity for all auto repair service companies to improve their competitiveness.
The price war will only become more and more tiring, and it will not make money. Customers will not necessarily buy it. Sometimes they will give customers a misleading sense of cheap and poor technical service.
Only by establishing a brand, relying on the added value of the brand to enhance corporate profits and promote the long-term development of the company. For example, the same car produced by Guangzhou Honda, Honda’s CITY and the EVERUS are the same cars, because the hanging car logo is different, the price difference is much; KFC burger is much more expensive than Chinese burger, why? This is where the value of the brand lies.
The branding of auto repair service enterprises can start from three aspects: design branding, equipment branding, and service branding.
3, do a good job in positioning the company and target customers
Doing a good job in business positioning means that companies must understand their position in the market and analyze their target customer base. For example, is your company a large-scale integrated auto repair shop, or a specialized shop for a certain model such as BMW and Mercedes? Is your business a super luxury car or a mid- to the high-end car? Does your company specialize in automatic transmissions, specialize in engines, or just do the washing and fast repair?
Only when the company has clearly defined its own market position can it clearly understand where your customer base is? How to develop a service strategy for such a customer base so that it can be targeted in the operation.
4, manage the project and adjust the strategy in time
In fact, not all projects in the auto repair service enterprise can make money. The purpose of each project is different. Some belong to the customer collection project, some are profitable projects, and some are to enrich the in-store service.
In the face of numerous projects, which projects can make money, which projects will lose money, which projects will slow down first, which ones can be cut off, which projects must be left behind, employees can not understand so much, but as the boss must be clear. There are several references for projects that can be cut off: first, profitability, second, customer demand, and third, the reference to the operation of surrounding competitors.
In combination with the company’s current situation, timely adjustment of the project, in order to reverse the business situation of the enterprise, not only to serve customers but also to improve profitability and reduce burden.
5. Analyze finances and master profit and loss in a timely manner
Capital is the source of all operations. As a business owner, you must look at the overall situation, carefully calculate, learn and develop the habit of analyzing reports.
For example, the change in turnover in the current month and last month, the change in the same month last year; the monthly analysis of the income ratio of different business projects, high-frequency low value, low-frequency low value, low-frequency high-value items, etc. should be matched, such as It is not appropriate to take a car wash too high, and long-term income-free projects are considered to be cut down or rectified.
Different report content may be different, but it must reflect the gross profit margin and net profit margin. Many expenses such as rent and equipment are shared equally. The rent of many service areas requires a limited number of stations to share, so the hourly station The cost and the contribution value of the contribution need to be calculated.
6. Do a good job in customer management and tap potential customers.
Customers are the foundation of the survival and development of enterprises. Without customer relationship management and perfect customer service system, customers are easy to lose, and it is not easy to develop the potential needs of customers.
It is one-sided for many companies to do marketing based on the grade of the car. It is important to study the owner. For example, how the customer’s spending power, what is spent on the card, how to consume, how much the vehicle maintenance cycle, how often into the store; the identity of the owner is the relocated household, big boss, small boss, small white-collar workers, civil servants, teachers, lawyers, soldiers Which group, different groups have different consumption habits and consciousness.
7, do a good job in employee management, create high value
Employees are the foundation for the survival and development of enterprises. Unable to retain talents not only increases management costs but also affects customer loyalty and service quality.
Any company needs to have appropriate personnel management mechanisms: promotion mechanism, reward mechanism, training mechanism, learning mechanism, and training mechanism. If these are not available, employees will have no fighting power and will be lost. For example, in charge of tires, it is unclear which brand of tires, structure, model, and brand of different brands of cars are equipped with tires; the number of layers of paint finishes that are responsible for painting, the type of paint, the number of faces of paints (blocks number), will only spray, can you do the painting work?
Conclusion:
As the owner of the auto repair service enterprise, it is necessary to know how to go deeper, understand the work of the employees, grasp the details of the work, feel the customer experience, and know-how to grasp the operation direction of the company and strengthen the brand service. Stand tall to see far! If you act as the commander of the death squad as the commander, you are playing for life, which is not conducive to the long-term development of the company. Business owners must use strategic vision and developmental thinking to manage enterprises and have a broad mind and pattern to make the company bigger.
Editor’s Note:
Shanghai Balance Automotive Equipment Co., Ltd. founded in 2005. The headquarters is in Shanghai with around 870 employees. There are 4 production bases in Qidong, Guangzhou, and Suzhou. Its profile spans across 99 countries and regions, rapidly gaining a professional reputation in both domestic and overseas markets. Shanghai Balance is dedicated to providing a reliable and cost-effective automobile repair and service solutions to our customers. Never ceasing in our innovative efforts, Shanghai Balance will continue to satisfy customers’ needs and keep our momentum to meet market demands. Get More Info：http://www.uniteautomotive.com
With its well-recognized brand UNITE has been explored in the global tire changer, wheel balancer, auto lift, wheel alignment, and other shop equipment for more than 20 years. -
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