It’s the question that every workshop owner asks. How can I increase our workshop profit?
Growing profit in any business is challenging. It involves a clearly planned business strategy that is realistic, and achievable.
Workshop Mate has put together the complete guide on how to grow your workshop profit in 2021.
Automate your everyday tasks
We get it, managing a mechanical workshop is tough. There’s only a certain number of hours in the day to begin with and before you know the day is over. One of the biggest problems for many mechanical workshops is time. Some mechanics get caught up on paperwork, stock, bookings, follow ups and many other manual tasks which end up impacting on the workshop’s overall profitability.
The biggest problem with manual tasks is the time you waste completing them. Research shows that the average worker spends almost 25% of their time on manual tasks. This is time that could have been used to further assess your workshop and plan for future growth.
The first way workshops could increase profitability is by automating everyday tasks such as bookings, parts inventory, customer reminders and invoicing.
Implementing a workshop management software provides mechanics with complete automation of all day-to-day tasks. Along with this a workshop management software centralises your entire workshop operations in one location. The benefit of this is you don’t need to manually record and enter information into multiple systems – Giving you time back to focus on growing your workshop and increasing your workshop efficiency and profitability.
Evaluate your overheads
When you service over 20 cars a day its hard to keep track of all your overheads, especially if you record your expenses manually or in multiple systems. No matter what business you’re in, if you’re failing to consistently and accurately manage your business overheads you could find yourself in a serious cashflow hole.
A solution for workshops is to integrate your management software with your accounting package. Software integration is the process of transferring information instantly and accurately from program to program. The benefit of integrating your accounting system and management system together is you can accurately manage all your business overheads in one location. You can run reports and quickly identify areas you need to investigate and make a change instantly.
Manage parts inventory more efficiently
If your workshop is managing stock inventory manually or in multiple systems, there is a high chance your making a costly mistake. As you know when stock take doesn’t quite add up it could end up costing your workshop thousands in write offs.
A solution for this is to manage your stock control in your workshop management software. The main benefit is when a part is purchased or sold, the system will automatically update the stock numbers – giving you an instant and accurate overview of stock at all times. This means less time wasted on stock take every week less parts that need to be wrote off and more money to your workshops bottom line.
Report on your Marketing initiatives
One area that many workshops fail to report on is marketing. If not reviewed frequently marketing can be costing you so much more than it is bring into your workshop. With 72% of all mechanic customers using the internet to research mechanics prior to booking in your online marketing has never been more important in getting customers.
Let’s face it the problem with Online Marketing is it is expensive. If you are running ads on many different systems such as Facebook and Google, you could be spending thousands each month. That’s why it is so important to track and manage your track and manage your return on investement.
Before you start advertising it’s so important that you have a clear plan in place and understand all the costs involved. You would want to be sure you have an assigned budget, so you don’t overspend.
Staying on top of your marketing return of investment gives you the ability to make changes on the go instead of spending thousands which result in nothing. This ultimately improves your workshops bottom line.
Get the Right Workshop management Software
There is no point having a management system if it doesn’t fit your specific needs. Your management system should automate your day-to-day tasks, reduce your overall costs and free you up to focus on growing your workshop.
Before investing in a Workshop Management system, you should understand what it is you need, the service you will be receiving, price and how many users can use the system. A problem with many Workshop providers is that you need to pay per user. If you have 10 – 20 employees and you are paying by user, this could be very expensive.
It’s so important that you understand what you need and what you want from your workshop software prior to signing up.
Where Workshop Mate can help?
Workshop Mate by Jeal is the complete mechanical workshop software that supports and automates every part of your workshop freeing you up to focus on growth.
Workshop Mate includes all your everyday features such as all-in-one quotes, invoices, barcoding, parts inventory, SMS reminders, service history, job allocation and tracking, Xero/MYOB integration, and more to help you run your workshop efficiently.
Some workshop software providers charge ‘per user’ but with Workshop Mate, you pay one fixed
Fast and Easy Data Import. No new installations or software upgrades. With 24/7 local support, we are with you every step of the way!
Click the button below to start your no-obligation 14-day free trail of Workshop Mate!