As you get ready to close the book on another year, it’s not
uncommon to think about strategies that will boost your bottom line and garner
a bigger market share in 2012.
Profitability hinges on shops being able to cater to new
service demands, brought on by ever-changing technology, armed with the proper
tools, equipment and training, says Scott “Gonzo” Weaver, owner of Superior
Auto Electric, Tulsa, OK, and contributor to ImportCar magazine.
“Since my shop does mainly electrical repairs, I’ve seen
plenty of changes. Years ago, alternators, starters, turn signals and power
windows were the normal, everyday repairs,” Weaver explains. “These days, power
windows, turn signals and lighting systems are still high-priority repairs, but
more often it’s CAN system failures, theft systems, dataline corruption and
reprogramming components, when parts were changed without any regard to the
recalibrating needs of the system in question.
“These changes require a huge investment in high-end
scanners, technical information and training, and I think this is where the
modern, up-to-date independent shop should focus its efforts.”
Chris Klinger, co-owner, Precision Incorporated, Tucson, AZ,
and a member of the ImportCar advisory board, says profitability for his shop
can be bolstered with software upgrades, cost-effectiveness in the buying parts
process and expanding his marketing strategy as a key element in his overall
marketing package.
“At the shop level, we are updating our software tooling
regularly and, in today’s world, that translates to more capabilities and
opportunities to earn higher profits,” explains Klinger.
“Our parts department is also analyzing our buying patterns
as well as each of our suppliers’ buying requirements for ‘best pricing’ and
working on more cost-effective ways to buy our parts, while not necessarily
looking for a less expensive vendor.
“The most effort spent this year, to prepare for the coming
years, has been to reevaluate our entire marketing strategy. We have been
building new relationships with professional service providers that have skill
sets other than our own. We are continuing to shift advertising dollars into
the digital world in a way that aligns with our marketing goals.
“More importantly, we are evolving as a company and spending
time developing a complete marketing package that includes our brand, our
strategy and our positioning, so that our marketing productivity and efficiency
increases will result in more sales and more profits in the coming years.
“In a nutshell, we continue to actively invest in our future
and will always resist the temptation to just be passive and hope for the
best.”
What immediate changes (major or minor) are you planning to
make in your business in 2012 to increase your shop’s productivity and
profitability?