Providing Auto Shop Management SOFTWARE Solutions Since 2005


The Impact of Social Factors on the Auto Repair Business

Societal influences are an important part of the environment in which a business operates. Populations may grow slowly or quickly depending on the geographic location. Also population age may affect the market and how relationships are formed and sustained. Demographic shifts may occur as older people move on and younger people take their place. An auto repair shop must be prepared to change as these factors change.

  1. Population Growth Rate – The rate of growth in the population that an auto repair shop services means a lot to the business. People tend to have their vehicles serviced at a shop close to their home or place of employment. So in an area where new homes are being built or new businesses are opening local business growth can be positively impacted. In areas where most land is used up population growth may continue but at a slower rate. This indicator is important when evaluating current and future circumstances.
  2. Population Age – The age of the customers of an auto repair shop is an important indicator. If the majority are young people with children they’re likely to replace their vehicle at some point if the maintenance costs become too high. If most customers are at or near retirement age they’ll probably keep their existing vehicle for several years but won’t drive as much and therefore service requirements will be minimal. Additionally retirees may move to a retirement home or to live with relatives and their home may be purchased by younger people causing a demographic shift. Anticipating these types of changes can help in determining areas of marketing focus.
  3. Socio-Cultural Conditions – Never before has the world gone through such an extreme change in the way people interact socially. People interact on Facebook, You Tube, Instagram, Twitter and more. The entire landscape of social interaction has changed dramatically. This phenomenon is so prevalent that it has been dubbed Social Media. At the time of this writing businesses are realizing that they need to adapt to the new environment and entering into the world of social media. Additionally people are interacting more and more using smart phones and tablets that they carry with them all the time.  Businesses need to adapt to this new social environment in order to attract and keep customers.

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