Let’s face it, we all make our fare share of mistakes. But in the Auto Repair Industry, making even the slightest mistake can have a lasting effect on both your Workshops reputation and bottom line.
Here are 5 common and costly mistakes made by Australian Auto Repair stores and simple ways you can avoid them.
1. Over or Under Stocking
Anything to do with stock is expensive. Many Australian Workshops get caught making the mistake of either having too much stock or too little stock. Either option will cost your repair store customers and money.
Think about it if you have too much stock, you will be running a loss until the parts sell, which is a risky strategy. On the flip side if you have too little stock you may have to turn a customer away based on the lack of supplies. Either way your business loses money.
To reduce the risk of over or understocking, Australian Auto Repair Stores need to forecast their parts sales. Look at what months of the year you are busier than others and order accordingly.
Using a Workshop Management Software like Workshop Mate, mechanics can generate part sales reports at the click of the button. As a centralised management destination data compiles in the background as you trade – you don’t need to do anything.
Related Article: The Main Reasons Why Workshops Fail.
2. Not Investing in Tools or Education
This is a big one, the Australian Auto Repair Industry is continuing to change. The way Repair shops operated 3 years ago is much different to the way they operate today. One of the costliest mistakes Repair stores make is not investing in the right tools or education.
In the past year we have seen electric vehicle sales explode and the demand for service and repairs will only follow suit. Is your Repair Store prepared? This is why frequent investment is needed.
Your store needs to make sure you understand all the latest developments in car technology and have the appropriate tools needed to perform the task, or you could risk losing customers. To maximise profit in 2022, Australian Auto Repair Stores need to invest in new tools and education.
Related Article: Do your Mechanics have all the Tools they need?
3. Hiring the Wrong People
All businesses often make this mistake at some point. It’s common for businesses to hire someone who may not be the best fit for the job, but what makes it costly when businesses fail to get rid of them quick enough.
For Auto Repair Stores, having the wrong team member can cause chaos. They may not be qualified; they may need to take a good employee away from their job to help and could affect team morale. What often happens when a staff member doesn’t perform to expectation is the customer suffers and you can’t have that.
Before hiring a mechanic full-time, it is important to have them go through the appropriate training, including having them shadow a good worker.
Related Article: 5 Challenges Facing Australian Mechanical Workshops.
4. Not Marketing
Marketing is essential for all Auto Repair Stores. Many Repair Stores make the mistake of not putting enough focus into their marketing and customer acquisition strategy. It’s okay if you are contempt with your existing customer base but if you’re looking to grow, you need to invest in marketing.
The way customers find their mechanic has completely changed in the past 2 years. Years ago, many customers would have found their mechanic either by word of mouth, a referral or by driving past the shop. In 2022, it is much different, customers are now finding their next mechanic through digital channels.
Digital Channels like a Workshop Website, Facebook Business Page and Google Business Listings are a few of the main channels that Australians are finding their next mechanic in 2022.
Related Article: How Australian Workshops Can Acquire Customers in 2022.
This one may seem strange, but it is a very costly mistake. Overbooking might look good on paper but what normally follows is the part that is costly.
The problem with overbooking customers is you often don’t meet expectations. More work comes with more pressure and with more cars you will often find that you don’t complete the job as fast as you normally would. This usually leads to customers not returning in the future – this is the real stinger.
If you want to take more bookings, you need to assess if your team can take on the extra workload and meet customer expectation. If they are unable you may need to hire more staff.
We all make mistakes, but what makes a business successful is the way that they learn from their mistakes. The 5 mistakes mentioned above are common in the Auto Repair Industry but can be easily avoided.
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About Workshop Mate
Workshop Mate by Jeal is an Australian Auto Repair Industry Specific, web-based management software that automates the running a mechanical workshop.
Get all-in-one quotes, invoices, barcoding, parts inventory, SMS reminders, service history, job allocation and tracking, Xero/MYOB integration, and more – everything you need to run your workshop efficiently.
If you’ve never used Workshop Mate, now is the best time to have a go. Click the button below to start your 14-day free trial of Workshop Mate.