Increasing Repair Shop Profitability – There’s an App For That
Automotive vehicle technology is evolving at a tremendous rate, and keeping up with all of the changes is undoubtedly a challenge for most of today’s repair shops. In order to keep up, shop owners and technicians are leveraging online technical training, searching the web, and utilizing new software applications to find the latest and most up to date repair information available. In many cases, repair shops are keeping up with the technical side of the business but they may not be increasing their profitability or long term viability.
In order to increase both profitability and long term viability, shop owners must invest in business systems that can provide instant mobile access to business intelligence relating to consumer behavior and the operational efficiency of their shop. And with consumers today being infinitely more technology savvy and mobile than ever before, it has never been more critical.
According to a study of retail purchases by Deloitte Development LLC:
- Over 85% of consumers have indicated that they use digital searches before or during a trip to a store.
- Consumers who use a digital/mobile device during a shopping journey convert at a 40% higher rate.
- 22% of consumers who use digital/mobile tools spend more.
- 75% of consumers said product information found on social channels influenced their behavior.
From an operational efficiency standpoint, minutes matter!!!
Profitability is seldom lost through large, easily identifiable activities, but rather in the details of daily activities:
- Time wasted recording and re-entering Vehicle Identification Numbers.
- Time wasted looking up maintenance and repair information on multiple systems.
- Time wasted ordering parts from multiple vendors using multiple ordering methods.
- Time wasted waiting for parts or receiving the wrong parts.
Simply stated, shop owners who understand, embrace and invest in technology will be the winners as the automotive repair market continues to evolve.
-Mark Malispina, VP of Sales