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7 Keys to Auto Repair Shop Cost Management

Managing cost in auto repair can have a major impact on sales and profitability. There are many components that affect operating costs and identifying, evaluating and measuring them will be time well spent. A shop that runs efficiently and manages costs will rise above the competition. The following are 6 tips on repair shop cost management.

  1. Manage Marketing Costs – Knowing the cost of acquiring a new customer and retaining an existing customer is paramount to making good pricing and planning decisions. Lowering the cost per customer will increase profit margins. Read Full Story >>
  2. Manage Sales Costs – The business processes that support front line personnel have a direct impact on sales volume. Process improvements that result in greater throughput improve sales and profitability. Read Full Story >>
  3. Improve Shop Proficiency – Increasing utilization of available labor hours will increase sales and improve profit margins. Eliminating impediments to resource utilization is the key to improved proficiency. Read Full Story >>
  4. Employ Shop Management System Features – Automation can streamline processes and improve productivity. Efficiency equates to accomplishing more with the same resources. Read Full Story >>
  5. Reduce Purchasing and Inventory Costs – There a number of factors that contribute to the cost of inventory. Identifying them and finding ways to contain them will increase profit margins. Read Full Story >>
  6. Improve Negotiating Skills – Focusing on doing the best job possible when negotiating will result in lower operating costs. Read Full Story >>
  7. Measure Cost Management Efforts – Monitoring the effects of cost management will ensure the intended benefits are recognized and draw attention to this important management concern. Read Full Story >>

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