Servicing another company’s fleet can be beneficial in that a volume of maintenance work can earned from one client. The retail adage that a small profit margin spread over a large volume of sales results in a large profit holds true in this situation. From the client’s perspective having another company service its fleet equates
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Service delivery in business to business relationships is as important as the service itself. This is also true in consumer sales but activity is magnified and the perspective of a business is different. So employing the same methods of service delivery for both consumer and business clients may not be optimal. It’s important to understand
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Streamlining and refining the processes within an auto repair shop will result in greater capacity and reduced operating costs. Increased capacity provides the opportunity for higher sales. Reduced operating costs result in wider profit margins. Looking at different processes and areas and identifying ways to be make improvements then implementing changes and monitoring the results
6 Keys to Increasing Auto Repair Sales and Profits through Process Improvement Read More »
Streamlining and improving processes within an auto repair operation will reduce operating costs and increase capacity thus increasing sales and widening profit margins. Process improvement involves documenting the processes within the organization, identifying wasteful activity and procedural flaws then gradually eliminating them. Wasteful activities can include duplication of effort and unneeded steps. Procedural flaws can
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Running paperless can have a significant impact on streamlining operations in an auto repair shop. Printing information from the shop management system can be thought of as a break in process flow when considering internally used information. Interaction with the customer at the start and end of the process can be viewed differently but the
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Improving vehicle turnaround time will provide better service to customers and reduce operating costs in the process. Preparation and planning are primary keys to improving throughput in a repair operation. Streamlining and improving procedures to ensure best utilization of resources will result in higher capacity and thus lower overhead cost per vehicle. Increasing throughput will
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Dropping off a vehicle for maintenance and picking it up after the work is performed can be the most time consuming part of vehicle repair from the customer’s perspective. From the shop perspective the number of vehicles that can be serviced is directly impacted by the time spent exchanging the vehicle with each customer. Streamlining
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Making optimal use of available resources is the goal of shop proficiency improvement. Increasing proficiency means that a greater amount of work is performed within the same available number of hours. Proficiency is measured by dividing the number of hours spent working on vehicles by the total hours available. So if a shop has 120
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Efficiency can have a significant impact on profitability. A 5 percent increase in efficiency can equate to a 5 percent increase in throughput. In other words greater efficiency results in more hours being billed for the same amount of hours worked. Efficiency can be improved by measuring it, offering employees incentives to increase efficiency ratings,
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Just as important as the quality of the actual repair work performed on a customer’s vehicle is the experience of dealing with the shop personnel in the course of the process. Statistics show that 3 out of 4 customers leave due to what they perceive as poor customer service. From the start of the sales
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