Costs are rising everywhere at the moment. From fuel to parts to rent, the cost of operating a Mechanical Workshop in Australia has never been higher.
However, there are fast and easy ways your Workshop can transition to cheaper way of doing business.
Workshop Mate has put together 5 Ways Your Workshop Can Survive Risings Costs.
Let’s get into it!
1. Reduce Costs Where Possible
Seem obvious right? But the importance of this point cannot be overstated. The only way that your Workshop is going to survive rising costs is to reduce costs where possible.
Every business has unneeded expenses, even if you cannot think of them at the top of your head. In challenging times like this it is important that you get together with your accountant and put together a cost analysis to see what expenses are essential and what expenses can be removed.
Dig through each of your expenses one by one and weigh up if they are needed or not. If they are not essential and you can do without, remove it! Cutting back on unneeded expenses will save your Workshop thousands annually!
2. Assess Your Parts Suppliers
Unfortunately, Parts are one of the fastest rising costs for Mechanical Workshops. Let’s face it parts are an essential expense but that doesn’t mean you need to sit there an accept price hike after price hike.
It is important that your Workshop continues to assess your parts suppliers and the prices that they are offering you. Just as important, your Workshop should make it a standard process to shop around for better parts prices. There are an abundance of part suppliers available in Australia, some providers may offer better deals that could save your shop thousands each year.
3. Shop Around for Better Utilities
Utilities are another essential cost for all businesses. Like other areas, Utilities costs are skyrocketing! Like we mentioned above, just because your utility provider rises their prices that doesn’t mean you need to accept it right away.
To survive rising costs, it is vital that you shop around for a better deal. Get online and see what other providers may be offering. Even if you can make a small saving from another provider do it! The key to being successful during an economy like 2023 is saving as much money as possible!
4. Find a New Price Point
If your overheads go up, your prices need to follow suit. Continuing with the same price that you have had prior to all these price rises will impact profitability and will risk insolvency. To survive rising costs, it is important that you frequently review your prices and implement new price points that provide a healthy return for your business.
Get together with your accountant and try to find a price point that will keep your business in the green and not impact the customer too heavily.
5. Reduce Mechanic Hours
Staff are one of the largest but most necessary expenses for all businesses. With costs starting to bite one of the best ways to minimise costs is to reduce your mechanic hours if possible.
It is vital that your Workshop only has the required number of mechanics working at any one time. The last thing that you want is to have mechanics sitting around waiting for work, as all it will do is impact your profitability.
Rising Costs are impacting every business around Australia. The only way that your Workshop is going to survive rising costs is by finding faster, cheaper ways of doing business. The 5 tips presented will help you minimise the effects of rising costs in 2023.
We hope you enjoyed reading this article. To read more articles like this, please visit the Workshop Mate latest news page here.
About Workshop Mate,
Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.
Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.
Never tried Workshop Mate? Give Workshop Mate a try today for free! Click the button below to start your 14-day free trial.