It’s a challenging time for Australian Mechanical Workshops. Part supply costs are increasing, labour shortages are common, and the demand for electric vehicles servicing is growing. Reducing costs is the key to success in any industry, but for many Australian Workshops, reducing costs may seem easier said than done.
Yes, reducing costs doesn’t happen overnight! Reducing costs must be thoroughly planned and analysed before you put it into effect, or you could find yourself impacting other areas of your workshop.
For Australian Workshop Owners and Mechanics there are many ways you can reduce costs at your Workshop and not impact other areas.
Here are 5 ways Australian Workshops Can Save Costs in 2022.
1. Forecast Parts Ordering
Part supply is one of the biggest expenses for all workshops. Having too much or too little parts will cost your shop thousands.
A fast and easy way to save costs for your Workshop is to Forecast your parts ordering. Every business has a sales cycle, some months you will be busier than others, you may sell more of a particular part or not require certain parts, so it is so important that you understand your cycle.
Get to together with your accountant or bookkeeper and find out how much parts you are selling and forecast your stock ordering based on the business data. The benefit of forecasting your parts ordering is you significantly minimise the risk of sourcing too much stock or having too little stock.
Related Article: 5 Tips to get better parts prices.
2. Shop Around
Yes, this one may seem like a no-brainer. When you look at your Workshops greatest expenses your overheads including rent, electricity and internet most likely top the list. Many Workshops often stay contempt with the deals they have blissfully unaware that there may be some better deals out there that could save your shop thousands per year.
To reduce costs at your Workshop you need to shop around for the best utility details. One of the good things about the current market is there is an abundance of electricity and internet providers, available and they are all fighting for your business. Your Workshop should make it common practice to review your overhead expenditure and search what is available every quarter.
3. Evaluate your Part and Services Range
The common perspective in business is that bigger is better. Many Workshops try to expand their services and parts range to be as broad as possible. The problem with this is if those parts don’t sell your workshop will run at a loss.
Assess your current parts and services offering, see what parts are selling and what is not. There is absolutely no point purchasing parts or offering a service that doesn’t sell. Often when you reduce your offering your Workshop will be in a better position then before as you don’t have to ascertain all the expenses that come from an expanded offering.
Related Article: 5 Costly Mistakes Australian Auto Repair Stores Make.
4. Do your own marketing
Marketing is an important part of running a Workshop. If you can’t get customers into your shop, you will have no business. Many Workshops often don’t put enough focus on Marketing or hire external help. The problem with either option is it costs you valuable money.
A great way to minimise costs is to do your own marketing. Digital Marketing is such a quick and easy to learn strategy which does not require external paid help. Post your services on social media, build a following, show off what your workshop is doing, ask customers to give your Workshop an online review and leverage bookings through your Workshop Website. There are many great ways your workshop can do marketing on your own and free of charge.
Related Article: How Australian Workshops Can Acquire Customers in 2022.
5. Centralise Operations using a Workshop Management Software
Many Workshops waste money using different systems to manage operations. To reduce costs and streamline operations, Australian Workshops need to use a Workshop Management software like Workshop Mate to manage their day-to-day tasks.
Using a Workshop Management Software like Workshop Mate, Mechanics can eliminate repetitive admin tasks, such as bookings, customer reminders, stock management, reporting and accounting – in the one central easy to use platform.
Related Article: Tasks you can automate using a Workshop Management Software.
Final word,
Reducing costs is the key to success in the Auto Repair Industry. Using the 5 tips mentioned above, your Workshop will go a long way to minimising costs and increasing cashflow.
Before making any changes to the way your business operates, it is highly recommended that your Workshop consults with all relevant parties including your accountant to make the best possible decision.
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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 daily tasks of running a mechanical workshop.
Workshop Mate includes all your everyday features in one central easy to use software. Get all-in-one quotes, parts inventory, job management, invoicing, SMS reminders, service history, job allocation and tracking, barcoding, and Xero/MYOB integration - everything you need and more.
Click the button below to start your 14-day free trial of Workshop Mate.