Despite its relatively high barriers to entry, for those professionals who are skilled and dedicated to their trade, the automotive repair business remains one of the most profitable and consistently growing industries in the United States. It is widely estimated that up to $80 billion will be spent in 2019 for automotive repairs. And the good news for independent shop owners is that, unlike in many other industries, the nature of automotive repair makes it highly fragmented and local. The top 50 automotive companies make just 10 percent of the industry’s total profits.
The right shop management system can make the difference
But the relatively egalitarian character of the automotive repair industry belies a crucial point: The biggest companies in the business have some major advantages over their smaller competitors. One obvious point is in advertising and the ability to marshal huge budgets for national campaigns. Another important advantage that the big players have is that they can make use of the top-end diagnostic and shop management systems. Until now, it has been almost impossible for smaller shop owners to access the same kinds of shop management system capabilities that the biggest national franchises enjoy.
But with the plethora of shop management systems that have come on the market in recent years, that is all quickly changing. And one of the best systems for small shop owners is one that has been designed from the ground up specifically for use in small automotive repair shops. Tekmetric has been making waves throughout the industry for its ability to give small shop owners the same functionality that larger shops, such as Goodyear, Pep Boys and Sears, have been able to access for the last three decades.
Tekmetric is an all-in-one shop management system that handles everything from employee time scheduling to automated ordering of OEM parts. But the meat of the system is centered around both the labor and parts matrices, which form the backbone of any repair shop’s revenue model.
Tekmetric focuses on what counts — the bottom line
Like contracting and other bespoke service industries, automotive repair has a unique pricing model that is built around estimates and customer quotes. While this can add a huge amount of complexity from the business side, it can also create great opportunities for astute shop owners who know how to use the relative pricing elasticity of automotive repair to their advantage.
Tekmetric allows unprecedented intelligence over the entire shop price matrix. With Tekmetric’s shop management system, it becomes possible to tweak every entry in the parts and labor matrices, ensuring that the shop can reach its overall gross profit goals for that year.
Tekmetric can even take into account the competitive environment in which the shop operates, noting which jobs and parts can be marked up higher than others based on estimates, projections and also the internal data that the shop itself has generated. With Tekmetric, whole new levels of nuanced optimization become possible.
Tekmetric can also help to tweak and automate workflow. This means that shop owners will have objective data on which one of their employees are the best at any job. Tekmetric also helps to eliminate idle time as well as preventing redundant work from being performed. More importantly, Tekmetric can help shop owners to make the best pricing and prioritization decisions in one of the most dynamic industries around, helping to avoid taking jobs that are low margin when much higher margin jobs are available.
With Tekmetric’ management system, it’s now possible for small shop owners to approach their business with the same intelligence and powerful analytics that the biggest names in the industry use.