3 Common Reasons Why Auto Repair Shops End Up Failing
The auto repair business is fiercely competitive, and while there is significant demand, you still have to compete against major franchises and more established auto shops. Not all auto shops fail, however, and those who succeed are those who know how to differentiate themselves, choose the right market, have the right plan, and know how to operate a tight ship. They are also able to avoid some of the most common mistakes auto repair shops commit when they’re just getting started. Here are some of the most common reasons why auto repair shops end up failing.
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Not Having Clear Systems in Place
You can’t expect to be able to compete with big brands if you don’t have the same systems big brands have in place. Major franchises will have clear protocols on how calls need to be answered. They will have instructions on how repairmen address clients. They have procedures for follow ups and upsells. Most shops who don’t have systems will fail, and if you’re hell bent on keeping an old school approach, you’ll have trouble competing.
Not Realizing the Importance of Marketing
A lot of auto repair shops still seem to believe that word of mouth is the best way to market their business. Guess what, you and a hundred other shops in your area think the exact same way, and there’s nothing to stop one of your clients from going somewhere else.
This is why you have to take marketing seriously and diversify your efforts. You need to use every platform at your disposal, and you can’t afford to cut corners – especially when it comes to website design and marketing.
Local SEO could be the most powerful tool in your arsenal, but you have to use it correctly. This first means making sure that your contact information is consistent, and that you have good reviews to show for. You can then focus on content creation and distribution.
Know, however, that SEO and website design can get costly, so you might need to look for financing for your repair shop marketing. That will be money well spent, at the condition that your monthly payments aren’t too high when compared to your monthly revenue and deposits.
They Don’t Have a Target Market
Too many repair shops try to be everything to everybody, but you have to build a brand image and identity if you want to make it in this business. You can’t go for budget customers, high performance luxury cars, then try to squeeze in paint and auto body repairs all in the same shop. You should focus on bringing the right type of people and vehicles through your door. This will make things like recruiting and dealing with suppliers much easier, and will allow you to buy in bulk.
The auto repair business is tough, but it’s not impossible to crack if you go about it the right way. With the right plan of attack and execution, you’ll have a greater chance of success, as long as you manage to steer clear from these mistakes.
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