How to Increase Your Automobile Workshop Profit Margins

How to Increase Your Automobile Workshop Profit Margins-feature image
February 2, 2023 4 Min read

Just because several cars are lined up at your automobile workshop for availing the service doesn’t mean that your auto repair and servicing business is making profits. To increase your profit margins, you need to do a lot more than just being complacent about the increasing number of cars coming at your auto workshop every day.

The automobile workshop business relies a lot on customer loyalty, which can be earned only through effective service. If the service you are providing to your customers is not up to the required standard, soon you will lose them to your competitors. Along with making proper repairs and stocking up high-margin parts, you need to adopt these practices to increase profits significantly.

5 Ways to Increase Automobile Workshop Profit Margins

Lets check the few ways which can help in increasing automobile workshop margins:

  • Schedule Appropriately

Creating schedule is important to ensure that your technicians get enough time for repair. At the same time, you need to check that the waiting time for repair and servicing is not high. Based on the repair and servicing work done in the past, you can assign estimated time for each task.

Depending upon the number of repairs promised to the customer, you can allot tasks to your workshop staff with realistic timelines. Also, you can set daily goals for your staff and assign them work accordingly to prevent chances of insufficient or missed repairs.

  • Focus on Labour Costs

Controlling your labour cost is one of the significant steps towards increasing your profit margins. One of the best ways to reduce the labour cost is to assign staff according to the time consumed in every repair task. Depending upon the complexity of a task, you can assign specific number of employees for a given duration on the task at hand.

Further, try conducting training programs at your workshop to help your employees learn to handle complex repair tasks efficiently in lesser time. Also, invest in different tools and technologies to reduce manual effort and save on labour costs.

  • Inspect Vehicles

Customers often get annoyed if something breaks down in their car just a few days after servicing or repair. So, it’s advisable to give your staff some additional time after every repair work to inspect vehicles for additional problems, if any.

If any additional repair work is needed, customers would find it convenient to get it done there and then rather than coming back to your workshop for minor issues again. Moreover, share the report of repair services to your customers to ensure transparency and increase customer satisfaction.

Suggested Read: Best Automobile ERP Software for Automotive Industry

  • Reduce Marketing Initiatives

While you need to maintain a strong presence online, the focus should be on retaining your existing customers rather than attracting new clients. Instead of spending too much on glitzy marketing ideas to deliver business, adopt simple yet effective publicizing strategies like referrals. Referral program for customers should be such that they get rewarded for sending you every new business. Further, try advertising about your dealership in local advertising mediums to reach wider audiences without spending much.

  • Get the Right DMS Software

Investing in the right tool of the trade is equally important to keep close tabs on your business processes and prevent loopholes, if any. Top automobile workshop software serves the daily operational requirement of automobile workshop. You can use on the best automobile workshop software like Cogxim automobile workshop software to track and manage your sales cycle and invoice generation. It will also assist in handling accounting activities and managing bookkeeping tasks accurately. Sales invoice generation and spare part inventory management can be handled without any hassle, helping you reduce labour cost and increase profit margins.

Wrapping Up

Now that the year is coming to its end, it’s time to strategize over ways to increase revenue for your auto workshop. But, don’t forget to adopt these tricks to increase your profit margin. Find the best automobile workshop software for your servicing station.

Written by Kalpana Arya

Kalpana’s tech writing journey began in 2017 with Techjockey, and she truly belongs here! If she was not a technical content writer, she would have been a coder. Technical writing, especially for business software, is her passion, and she enjoys every bit of it. From addressing the pain... Read more

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