Expenses Workshops Can Reduce Easily in 2022

20 Apr 2022 Helpful Tips


As a Workshop owner your number one priority is to reduce expenses and maximise profit. As the Australian Automotive Industry continues to change, it’s easy to get caught up working in the workshop instead of on the workshop. When this happens, some things may fall through the cracks, and you could find your expenses build.

So that brings us to the question, what expenses can your Workshop reduce? The good news for Australian Workshops is there are many ways your shop can reduce expenses, increase profitability, and most importantly maximise growth.

Here are the top expenses your workshop can reduce easily in 2022.

1. Part Expenses

Parts are one of the largest expenses for all mechanical workshops. Many Workshops make the mistake of sourcing too many or too little parts for their business in an effort to increase revenue and decrease costs. The problem with either option is they do more harm for your Workshop than good.

Think about it, if you have too many parts, you are in the black until you sell the part and on the flip side, if you have too little parts you may have to turn a customer away until the part arrives – either way your workshop loses.

To minimise your Part expenses, your Workshop should forecast part ordering. Using a Workshop Management Software like Workshop Mate, mechanics can generate business reports that identify what parts are selling, what parts are not, any trends in ordering, busy periods and quiet periods.

The benefit of forecasting your parts ordering using a Workshop Management system is you can make strategic ordering decisions based on your businesses data. Making strategic and accurate parts ordering decisions can save your shop thousands a year!

Related Article: 5 Costly Mistakes Australian Auto Repair Stores Make.

2. Staff Costs

Staff costs are huge for all Australian businesses. Another common mistake made by many Workshops is having too many staff rostered on at quiet times. The problem with this is it sets your Workshop back and impacts cashflow.

Every business as quiet months, an easy way to reduce staff expenses is to limit the number of staff you roster on during your Workshop’s quiet periods. Analyse your business data and predict when you will be quieter and only roster on the appropriate number of mechanics to cater for the demand. There is no point spending money on extra staff is the demand doesn’t warrant it.

Related Article: How Australian Workshops Can Minimise the Impacts of a Staff Shortage.

3. Limit Your Services

Many Workshops rush out and try to expand their services offering as much as they possibly can. We get it! Offering an expanded service offering does increase your target market and potential customer base but above else it significantly increases your expenses.

Limiting your service offering to a select few services your Workshop will minimise expenses and narrow your focus. Instead of trying to juggle many different hats and responsibilities your mechanics will have one clear objective and service to offer. Having a simplified service offering will greatly reduce your total expenditure and increase cashflow.

Related Article: Is Your Workshop Ready for Electric Vehicles? How Your Workshop Can Prepare.

4. Remove Unused Equipment

The Australian Automotive Industry has changed a lot in the past 2 years. With the advancement of technology, some of your equipment may not be needed for today’s workshop. Many Workshops keep unused equipment on location, connected to power sources and taking up space. The problem with having unused equipment lay around is it costs you money.

Removing unused equipment will reduce your Workshops expenses, give you back metres of space and can even help you generate further cashflow. If you are not using a particular piece of equipment, you could sell it to someone else who may want it! It’s a win-win situation.

Related Article: 5 Tools Australian Workshop Owners Need to be Successful.

5. Utilities

Utilities like phone, internet and electricity are essential for all businesses, there’s no way to avoid them but there are ways to limit them. Many businesses remain loyal to their current provider blissfully unaware that there could be much cheaper options out there.

The best way to reduce your utilities price is by Shopping around. Go on the internet, make a few phone calls, see what other providers may offer you. Shopping around for the best deal on your utilities could save your Workshop thousands every year.

Final Word,

The number 1 priority for all business owners is to reduce business expenses and maximise profit. For Australian Workshop’s there are ways to minimise total expenditure and not impact business operations or customer service. The 5 tips mentioned above are a few great ways your shop can minimise expenditure in 2022.

We hope you enjoyed this article, to read more articles like this visit the Workshop Mate latest news section 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.

Workshop Mate includes key everyday management features like quotes, invoices, barcoding, parts inventory management, customer reminders, service history, job allocation and tracking, Xero/MYOB integration, and more in the one central application.

Haven’t used Workshop Mate before? Give it a try for free today, click the button below to start your 14-day free trial of Workshop Mate.

 Try it FreeGet your 14 Day Free Trial