Kworld trend / What You Need To Know About Auto Car Service Business Dvcodes? Complete Guide
For many, owning a business is part of the American Dream and a path to personal wealth. If you are a mechanic or are working on becoming a mechanic, reaching that dream might start with the idea of opening your own auto repair shop. Set hours, work with clients on pricing, specialize in interesting vehicles, and take control of your future career. When you work on the shop floor with no ownership, your earnings trump your salary or hourly wages. When you own the shop, the only limit to profits is garage capacity. Before you start looking for money for garage doors, planning is crucial.
What You Need To Know About Auto Car Service Business
Starting a car business
There is a lot to consider when it comes to starting your own business. This is especially true when starting an auto business. Embarking on your entrepreneurial journey is an exciting time. It can also be stressful if you are not prepared.
If you want to start a business in an uncertain economic climate, an auto shop is a great place to look. Both the auto repair business and the tire retail business are seen as recession-proof. Even in the worst economic conditions, people still need their cars.
Almost everyone needs reliable transportation to get to work, run errands, and go about their lives. Because cars are so essential to Americans’ daily lives, auto repair services have historically performed well even during an economic downturn. As of 2018, there were an estimated 230,600 auto repair and maintenance stores in the United States. The industry is expected to continue to grow.
There has never been a better time to get into the automotive industry. Of course, as with any new business, advance preparation is key to future success. Here’s what you need to know about starting an auto business and how you can set up your auto shop for success.
What are the characteristics of a successful auto shop?
All successful businesses have a few things in common. From the people they hire to the important things they focus on, there are similarities between all thriving companies – and the auto repair industry is no different. Having the processes in place will help your auto repair shop run smoothly. These are the common characteristics that the BOLT ON team finds in our most successful stores:
Strong and educated team
Your auto repair shop is determined by the quality of its work and the credibility of the entire team. The auto industry as a whole is struggling to find good technicians to build their teams, making hiring more important than ever. It is essential to recruit a talented team committed to learning and growth.
Once they find quality employees, stores need to invest in proper training. The better trained your technicians are, the faster and more efficient your repairs will be. Not only does giving your employees all the tools and training they need to succeed allow them to do their job well, but it also shows the team that they are valued. In the end, your team is only as strong as its weakest link.
Prioritize customer convenience
Customers are busy. To attract your customers, make the auto repair experience easier and more convenient. From dropping off the car to booking their next appointment, stores that make it quick and easy for their customers will earn repeat business.
There are several areas where your store can prioritize convenience:
- Self-check-in helps avoid long lines at the front desk when they drop off their car
- Sending approvals and status updates to clients via text is easier than getting them over the phone during the workday
- Scheduling appointments in advance secures routine maintenance and provides reminders in advance of their next visit
1. Get certified
You are not required to have an ASE certification to work on autos, but without it, you may find it difficult or expensive to obtain liability insurance and find financing for your new business. An ASE certification tells potential clients that you know what you’re doing. It gives confidence to car owners, and can be a very important marketing tool. Before you can qualify to take the certification exam, you will need at least two years of work and educational experience combined, with at least one year on the job.
2. Learn about startup costs
Before you spend a dime opening your store, you need to know your projected total start-up cost. If you don’t, you could run out of money before you earn your first customer. While it is impossible to anticipate certain costs ahead of time, it is easy to anticipate the most common and expensive items. According to Appointment-Plus, the total cost is about $47,000 in equipment, insurance, and rent. Purchasing a building and making alterations can significantly change this number, depending on construction costs. Choosing to purchase an existing auto shop can also affect your bottom line.
3. To specialize or not
The ASE certification is broken down into 16 different specializations with Master Technician status available in:
- car
- collision repair
- Medium – heavy truck
- school bus
- Transit bus
- Truck equipment
You can also specialize in repairs for specific auto manufacturers or types of repair. If you specialize, you may earn a reputation as the best brake garage, but lose out on a lot of other business. Before opening up, you need to know the range of services that you plan to provide. If you want to specialize, you will need to do some serious market research to make sure there is enough demand to support your new store.
4. Get legal advice
Going into opening a business is much more than just finding a website and serving customers. You will need to obtain a business license, look into the regulations surrounding liability insurance requirements, open accounts to handle payroll and tax reports, file articles of incorporation, and other pre-sale steps. An attorney is invaluable throughout this process, helping you make sure every “i” and “t” are dotted. You do n’t have to hire a lawyer, but this can save you from a lot of mistakes along the way.
5. Preparing the interviews
If you have a very small shop, you might do all the work yourself, but you’ll likely still need at least one employee to handle phone calls and customers. If you have two elevators and want to maximize your capacity, you will need additional mechanics to assist the service vehicles. The hiring process must begin at least a month prior to the grand opening. You will need sufficient time to check references, find the best candidates and negotiate bonus packages.
6. Get the word out
Marketing is another big part of opening doors. Be sure to schedule the grand opening, so locals can stop by and see the shop. You may want to advertise special discounted rates for the first day or week, just to get customers through the doors. You’ll also need to have a standard service price list and store rate, so you can estimate your revenue potential. What You Need To Know About Auto Car Service Business
When faced with the prospect of an expensive auto repair business, most consumers want to get the best deal for their money. It is equally important to know that the repair service is reliable. In Chicago, consumers have certain rights when it comes to working with an auto repair shop that are set forth in the Chicago Municipal Code. Chapter 4-228.
Take the next step to running a successful auto repair shop
There are many unique qualities that separate your store from the competition, but most successful stores share these characteristics. Setting standards and building processes allows your store to grow…with the owner at the fore. Is it time to set your team up for success?
Consumers have the right to:
- Written estimate of repair work. Read your review carefully!
- A detailed invoice for the work done and the parts supplied.
- Fees not to exceed 10% or $15.00 of the estimated price, unless you give permission to do so.
- Return replaced parts, except for warranty and replacement parts, if requested in writing at the time the work order is submitted.
- A statement on your bill that all repair work and used parts are warranted for at least 90 days, and/or 3,000 miles, or a statement on your bill that the work and parts are not guaranteed for that amount.
- The right to inspect the vehicle before payment.
- The right to state in writing any problem you notice that is directly related to the repair work carried out.
- In the event that a guarantee is provided, the right to return the vehicle to correct problems directly related to the repair work within the warranty period or 10 days, whichever is greater.
- Questions related to the above should be directed to the repair facility manager.
Auto repair shop industry trends | What You Need To Know About Auto Car Service Business
Industry size and growth
- Industry Size and Past Growth – The auto mechanic industry in the United States was valued at over $68 Billion in 2022 and has experienced steady growth in the past 5 years.
- Growth Forecast – The American auto mechanic industry is expected to experience continuous growth in the coming years and to expand by more than 10% by 2026.
- Number of Companies – As of early 2022, 264,121 auto mechanic companies operated in the United States.
- Number of People Employed – As of early 2022, 561,359 people are employed in auto repair in the United States.
Trends and challenges
Trends in the auto repair industry include:
- More than 70 million vehicles in the United States are more than 15 years old, which means plenty of business for auto repair shops in the years ahead.
- Changing automotive technology provides auto mechanic opportunities that are updated with the latest features.
Challenges in the auto repair shop industry include:
- As new cars become more reliable, the auto repair shop industry may suffer
- Labor shortages are becoming a growing problem in the auto repair industry, as qualified auto technicians are becoming more difficult to find.
Use of social media platforms | What You Need To Know About Auto Car Service Business
Some basics
Before you start marketing your car repair business online on various social media platforms, you will be required to create an account on all of these platforms. This personal account will be in your actual name. For example, if you have a personal Facebook account, you can develop a Facebook page using your business name. With the right security settings, you and your business pages can be made searchable even from outside of Facebook. It is also helpful to have a company profile page on LinkedIn that describes your business.
Determine ideal clients
You can create your ideal customer profile. Your first inclination will probably be, “Whoever owns a car is my ideal customer.” However, after giving it some thought, you may decide that an older citizen is more likely to be your most frequent customer than younger people who would rather work on their cars themselves. Midlife professionals who earn over $1,00,000 each year are more likely to get the money needed rather than the time.
These people are more likely to outsource their vehicle maintenance. You can provide online auto repair estimates to them upon request. After you’ve identified the people you’re trying to reach, the next step will be to search for them on social media platforms separating the list by gender, age, zip code, and income. You may have some other criteria that you think will fit your ideal client.
Deliver value to customers
You need to become an expert resource in your field. While using social media platforms, you need to give tips about car repair and maintenance. You might consider posting articles like, “The Best Engine Oil for Old Cars” or “Check Tires for Uneven Wear” on your local social media forums. And You need to become the expert people turn to for advice on their car problems. You can also consider creating coupons on social media. Twitter is an exceptionally high quality source for coupon submissions. It’s a dash site that makes things quick and simple. For example, you could offer “Offer this Tweet for 10% off a frame change! This week only!”
Always try to be friendly
People always enjoy doing business with people they know. Reach potential customers using LinkedIn or Facebook messages. There are many people who enjoy listing their birthdays on various social media platforms. You can send them a birthday greeting by sending them gifts or coupons. Make it a habit to be aware of your contacts on social media and should comment on their posts. You will find rewards as new customers enter. If you know them by their names, you can start by asking them about their loved ones.
Conclusion
Online auto repair business is one of the best business ideas in the modern world. However, it depends on how successful you are in running this business. If you enjoy repairing cars and are passionate about working with them, then you can seriously consider this project. There are many channels you can use to develop a business plan for your online auto repair business. You can create an auto repair marketing plan and have a schedule to implement your auto repair services marketing strategies.
