Starting an auto repair business requires gradual growth, starting small and steadily expanding service offerings. Initial equipment purchases can be costly, and managing costs effectively, including capital expenses, profit margins, annual revenue, and operating costs, is essential.
Growing in the industry often involves investing in better machinery, personnel, and facilities and expanding services to cater to different vehicle brands. An auto repair shop aims to possess advanced equipment, providing comprehensive services for all car makes.
Profitability is key, and it’s crucial to identify high-demand, high-return services.
Here are some of the most profitable auto repair services to consider:
1. Oil Changing
First and foremost, one of the most crucial procedures in the automotive industry for extending the life of your automobile is an oil change. Although there are innumerable specialized oil change firms, oil changes are necessary. However, having this additional service in your garage is a fantastic opportunity to become a one-stop shop.
Of course, there’s a strong probability that you only generate a sizable portion of your revenues through oil changes.
However, this is not the only factor that makes them necessary for every auto shop’s service menu.
Additionally, drivers regularly require oil changes, which gives you an instant margin to build relationships with new customers.
With that connection established, they’ll likely come to your automotive repair shop for multiple repairs.
2. Offering Brake Jobs
Unsurprisingly, most of the car’s components are particularly resilient to deterioration, even after extensive use. But one of a car’s most important components is its brakes, particularly regarding the driver’s safety.
Most of the time, a full-spectrum automotive repair shop can provide brake adjustments, repairs, and replacements as needed. Most brake-related components are common industrial goods, making it very easy to calculate labor costs.
Hence, the manageable labor rate allows you to hold on to expenses and adds an important service.
Brake replacement services will always be in demand, which may result in regular customer engagement.
As part of a larger maintenance routine, make sure your shop is prepared to handle ad hoc brake repair requests and brake upkeep.
A list of profitable auto repair services would not necessarily include diagnostic services in a vacuum. Although they let you bill hourly, they don’t generate any linked components income. Conversely, diagnostics are a great approach to meeting new clients and increasing customer retention in the long run.
It’s harder than ever for the typical driver to diagnose a car problem since modern vehicles are technologically sophisticated. To get to the bottom of problems, costly diagnostic equipment is frequently required. However, few auto mechanics have access to these tools on their own. Your store will gain a customer base by assisting with diagnostics in the following ways:
- Improvements in long-term profits and business plan
- Increased customer loyalty
- A general uptick in business
While not every firm is a good fit for diagnostic services, if your company plan allows for them, they can provide you with a boost. Some stores even provide free diagnostic services due to the benefits they may provide!
Suspension systems in contemporary cars are sophisticated, just like many other components. On the road, they endure a lot of harm from things like potholes and bad weather. They are also far too complicated for drivers to repair on their own.
Nevertheless, any competent car shop is equipped to repair suspensions for a better customer experience. Making money from these services is simple since suspension-related items aren’t difficult to include in labor costs and estimates.
5. Alignment Checks at Automotive Repair Franchise
Do you reside in a region that experiences drastic seasonal weather changes? If you do, alignment issues can impact your clients, particularly for someone who alternates between regular and snow tires.
There is a greater likelihood that wheels may get misaligned with each cycle of tire replacements, which will cause tires and steering systems to wear out faster.
Alignment checks and adjustments may be made quickly. You may sell it separately or bundle it with fresh tires. Additionally, it’s a simple yet essential service if you already rotate tires. Customers will appreciate the extra attention to detail, which will promote repeat business.
6. A/C and Heating Maintenance in Automotive Repair Business
No matter where your business is located, your clients’ automobiles must have a temperature control system. You should be prepared to work on heating repair and air conditioning systems, depending on the time of year and location.
Heating and air conditioning systems will require maintenance and repairs like any other motor component. In light of this, it makes sense for your store to capitalize on this market by offering these services. After all, few drivers will endure an uncomfortable cabin for an extended period of time.
7. Repair Parts Services
You’ve probably already realized that having a parts store in your garage isn’t really a “service.” However, you can make more money by allowing consumers to purchase components from your store. You may even establish your repair shop’s profit margins to generate more annual profit.
Additionally, since you won’t have to put in any additional effort, there won’t be additional labor charges. Most of your store’s services are too complex for the typical motorist to handle independently.
In light of this, it is advisable to concentrate on selling products your customers will probably take care of themselves, such as new windshield wipers. Even as they wait for you to complete more involved repairs, your clients might purchase these items, creating a loyal customer base.
8. Maintenance and Replacement of Specialized Parts
It’s vital to remember that some automobile types, like Subaru and Honda, will require specialized repairs, particularly if the issue involves the engine and gearbox. Engine gaskets can sometimes leak when they are close to the end of their useful life.
Primary engine gaskets are essential for securing the oil and coolant while defending the combustion chamber.
Fortunately, some businesses offer expert cylinder head gasket repair, helping to keep your automobile in top shape. It is possible to help ensure you won’t suffer any automobile problems by getting professional assistance from skilled mechanics with years of expertise.
Learn what your clients desire
Find out what your client’s priorities are to get started immediately. When it comes to getting client feedback, you have a few options:
- Keeping printed questionnaires in the waiting room to seek various marketing tactics, increase employee productivity, and enhance the operating model.
- Conducting an online survey, with instructions included with or printed on a service receipt.
- Analyzing data to identify your services that create a profitable business.
- Having direct communication with your clients is one of the factors to ensure excellent customer service.
- Use direct client input to guide the development of your next service offering.
Find a strategy for scheduling software that works for your store
Another powerful strategy to make your auto repair shop more profitable is to invest in auto repair software or CRM. But first, you should know what an auto repair CRM is and what it does.
It might be difficult to choose just one scheduling system or auto repair software when so many are available nowadays. To assist you in choosing the ideal scheduling system for you, pose the following questions to yourself:
- Does it use the cloud?
- Is adding our consumers to the calendar simple?
- Does it provide an easy and extensive client list?
- Do other systems integrate with it?
- Does it provide instruments for customer communication?
- Does it provide trackable notes for car repairs?
- Is it supported by a dependable customer success and support team?
- If excellent scheduling is important, we advise choosing shop management software with an integrated scheduling system.
Monitor the Schedules
You can keep track of the work in the shop and what is going on behind the scenes if you prioritize choosing a shop management system that offers you and your team a superb scheduling system.
Thanks to a cloud-based scheduling system, your team will be able to collaborate effectively without ever interrupting or micromanaging one another.
An efficient scheduling system will enable you to keep an eye on customers’ scheduled appointments, assess the performance of your staff, and redistribute or prioritize tasks as necessary.
You may increase your auto repair shop’s footprint and make it more profitable with some forethought and further ideas for initiating more services.
- Learn what your clients most desire and adjust the business model as per learning.
- Set the most efficient marketing strategy to gain healthy profit margins and customer loyalty.
- Examine the skills of your technicians to offer various employee training if required, such as an art training facility.
- Evaluate equipment needs, such as art equipment, air filter replacements, and digital vehicle inspection.
- Monitoring cost/profit analytics.
- Maintaining your reputation among existing customers for better word-of-mouth, excellent reviews, better automotive care, and offering custom labor rates. You must establish your company as a legitimate and trustworthy supplier since there are many internet horror stories about dishonest mechanics overcharging or doing needless repairs and because online review sites like Yelp and Google can impact repair shop profit margins.