As long as there are vehicles on the road, there will be a need to get them fixed when they break down, for which an auto repair shop is important. It is very challenging to run an auto repair shop that’s why majority of them fails within a small duration, a year or so.
If you understand the most common problems that are faced by the auto repair shops then it can help to make fix them easily, the measure regarding those are given below :
The significant cost of Tools and Equipment
The cost of Tools and equipment are one of the biggest threat in an auto repair shop. The work depends upon the quality of the equipments so if the right tools are purchased then it brings positive changes in the shop. Hence, the initial investment can be significant.
Moreover, maintaining or repairing tools also requires big expenditure. Therefore, it is crucial to carefully consider the cost of items in auto repair shops before making any purchase as it can affect the bottom line.
Solution
To mitigate the cost of tools and equipment you need to purchase them from a reliable supplier who offers good quality products at a very reasonable price. Furthermore, suppliers that offer special deals on bulk purchases or who offer sales online are also recommended.
Poor Management Skills
Poor management skills is also a big threat to auto repair shops. Majority of shop owners do not have the skills that are required to manage their businesses efficiently, which results in making poor decisions which later causes financial losses and other problems.
Not all shop owners are poor managers. However, a lot of them do not have the necessary experience or training to manage their businesses and that can be a serious problem for shops which are trying to survive in a competitive market.
Solution
The way to overcome this threat is to hire a qualified manager with the necessary skills and experience to efficiently run an auto repair shop and another solution would be to enroll in a business management course to learn the required skills.
Advance Technology on Modern Vehicles
The evolution of automotive industry is constant, and new technologies are introduced continuously. So, the auto repair shops need to keep up with these changes to properly service the newest models of vehicles.
Moreover, the cost of investing can be a significant barrier for many shops when it is for new equipment and training employees. So, the time required to learn how to use new equipment properly can be substantial, which results in many auto repair shops being reluctant to invest in latest technologies.
Solution
The way to overcome this threat is to purchase the latest tools and equipment from a reliable supplier. So that, auto shops can enroll in training programs for learning purposes. For instance, auto shops can invest in a mobile column lift system to efficiently service modern vehicles instead of using a hydraulic floor jack and stands.
Economic Downturn
An economic downturn can be a major threat to an auto repair shop. People are less likely to spend their money on repairs and maintenance during these period, which results in a decrease in revenue and profit.
The cost price of supplies and equipment may also increase during an economic downturn. This will not end will for the shops as there won’t be much profit. Therefore, shop owners need to be aware of the economic conditions and make adjustments according to them.
Solution
The way to overcome this threat is by offering discounts or promotions while there is an economic downturn. This helps in attracting customers and boost the revenue of the shop. Moreover, auto shops can also focus on marketing their services to businesses or government organizations that are less likely to be affected by an economic downturn.
Access to Vehicle Telematics Data
Recently, vehicle manufacturers have started offering telematics services that allow customers to track the performance of their vehicles and this data can also be used to identify problems earlier and preventing them from becoming very serious.
The data is only available to the vehicle manufacturer, though. Therefore, the shops may not even have access to this data and cannot correctly diagnose or repair the problems which will cause customer dissatisfaction.
Solution
The best way to overcome this threat is to partner with a telematics provider who has experience working in/for/with auto repair shops, which ensures access to the data you need to service your customers’ vehicles effectively.
The Bottom Line
Auto repair shops face many challenges which threatens their survival in the competitive business environment, but if we are aware of these threats and take steps to overcome them then the shops can be successful.