Tag Archives: auto repair profit

The Low Road Myths Part II-The Pricing Myth Conception

When we left off last time, we discussed the reality facing shops that ignore their average repair order. The dangerous myth we’re combating is that shops can take the Low Road and still stay profitable.  The truth is, whether it’s ignoring profitability or ignoring pricing, shops can’t survive — much less grow — when they
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The Money You Need For Great Marketing Is Already In Your Shop!

Over the last month, the markets wiped out the gains they’d made this year.  From where I write this, European banks and governments are struggling to stay afloat (and Bank of America’s financial and legal problems show things aren’t much better here). Most people probably remember Lehmen Bros and what their collapse did to the
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Why it’s Important to Have an Exit Plan for Your Repair Shop

Flip over the news…open your browser…switch over to talk radio…there’s a lot going on in the world right now. Death of Osama bin Laden. Gas prices. Libya, Syria, Iran, Pakistan. Japan’s earthquake and nuclear emergency. NFL lockout. Obama’s birth certificate. I’m not trying to sound like an alarmist — my point is that there are
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Busting the Gross Profit Myth!

Who should you listen to when it comes to setting a target for your gross profit percentage in your shop? There are a LOT of opinions out there, but you don’t have to look any farther than your categories of expenses over the last decade to know that something’s not right with your profits…those expenses
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Will Hyper-inflation Kill Your Shop?

A few weeks ago, the Federal Reserve announced that it would purchase $600 billion in U.S treasuries. What does this mean? What could it mean to your shop? Very high inflation will cause prices and the cost of living to go way up. That will hurt your customers and your business in several ways. Is
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Repair Shop Management: Comparing Your Shop’s Numbers To What?

Benchmarking Most of us shop owners understand the process of comparing our numbers to a set of benchmarks or standards. I remember way back over 35 years ago, I had monthly meetings with my accountant where he showed me my shop’s financials with the percentages and ratios, and then told me where they should be.
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Repair Shop Management: Incentive Pay Plans

If you are finding yourself somewhat resistant to reading this article because of its title, you are exactly the shop owner who needs to read it! If your employee pay plans have little or no incentives in them, I’ll bet your team’s productivity and your profits are lower than you want or are on a serious roller-coaster. Even if you do have an incentive type structure set up for your employees, are you sure they’re truly incentives under all circumstances and don’t have accidental disincentives built into them that some of your people resent?