Rising Inflation is a small business killer. With inflation rising rapidly and profit margins slimming, it has never been a tougher environment to operate a mechanical Workshop. As businesses tackle a 30-year high inflation rate, it is important that your Workshop frequently reviews and adapts to meet the current market conditions.
Here are 5 Ways Mechanical Workshops Can Combat Rising Inflation.
1. Automate Operations
The only way that your Workshop is going to combat rising inflation is by reducing operational costs. The best way to streamline operations and minimise operational costs is to automate your workshops processes.
Your Workshop should look to implement a Workshop Management System to automate daily tasks. The benefit of implementing a Workshop Management system is it automates many daily tasks like Stock Management, Invoicing, Quoting, Job Management and more.
By automating your operations using technology, your Workshop will reduce operational expenses and increase overall efficiency.
Related Article: Tasks You Can Automate Using a Workshop Management Software.
2. Reduce Costs Where Possible
It will come as no surprise to hear this but to combat rising inflation your Workshop needs to reduce costs where possible. We get it! We know there are some areas where you simply can’t reduce costs, but there are always ways your Workshop can reduce costs and not impact either customer service or operations.
The first way that your business can look to reduce costs is by reviewing your current utility providers. The Australian market is a very competitive landscape, do some research and see what other providers may be offering, some other utility providers may provide better deals that could save your business hundreds if not thousands every year.
Staff are always going to be one of the biggest costs for Auto Repair Workshops. It is important that your Workshop only rosters on the appropriate number of mechanics needed to cater for the demand. The last thing your shop wants is to be paying large staff costs that are not warranted.
Related Article: Expenses Workshops Can Reduce Easily in 2022.
3. Review Your Pricing Strategy
As your costs grow your prices need to follow. There is no point offering a product or service and making a loss. If you do, you could escalate the risk of insolvency. To combat rising inflation, it is important that your Workshop frequently reviews your pricing strategy.
The reason why your Workshop needs to frequently review your pricing strategy is it gives you the ability to adapt and make strategic decisions that meet the current environment. Before your Workshop looks to increase prices, it is important that you review your competitors pricing, the overall industry standard pricing and consult with your accountant to understand how far you can increase prices and still maintain profitability.
4. Strong Reporting
Strong Reporting has never been more important in business than now. To combat rising inflation, it is important that your Workshop has or implements a strong reporting system that gives you instant access to vital business information.
The reason why your Workshop needs to have a strong reporting system in place is it gives you the ability to quickly analyse data and make strategic, calculated decisions that push your Workshop further.
Related Article: How Workshops Can Improve Reporting.
5. Focus on Retaining Customers
Repeat customers are king for businesses in times like this. Repeat customers are what’s going to keep your Workshop going into the future. It is important that your Workshop puts a strong focus on retaining customers to combat surging inflation.
The reason why retaining customers is so important for mechanical Workshops is because it gives you the ability to forecast and plan for the future. If you know you are going to have a certain number of customers in a monthly basis, you can plan accordingly.
Related Article: The Best Strategies to Retain Customers at Your Workshop.
As inflation continuous to rise, it is important that your business continues to review and adapt to the current market conditions. The 5 strategies mentioned above are a few great ways your Workshop can combat rising inflation in 2022.
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.
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