Shop Management | Operations - Service Repair

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Replace your old and dying business model

Monday, August 5, 2019 - 06:00
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Isn’t it amazing how much change has taken place and how much disruption is entering the aftermarket over the last three years?

Change and disruption truly challenge individual shop owners and one has to — are you keeping your old and dying business model? Or are you ready to replace it with something young and vibrant?

Not sure which side of the equation you`re on?  The below quiz might give you a clue.

- As the owner of your business are you still working in the bays of the business?

- Is your shop understaffed by a minimum of three people; that is one in the bays, one at the front counter and one in the back office?

- Do you look at wages as a “cost” to your business?

- Do you continuously watch total shop sales, always looking for more car count and only feel good when the shop is busy?

- Do you measure mainly sales per RO as the key measurement of improvement?

- Do you like to put on specials and have that seasonal sale?

- Do you attend maybe one or two all-day business management classes every two-three years?

- Do your techs only average 20 to 30 hours of technical training a year and that training is only local location training and always at night?

- Do you inspect the vehicle with the number 1 purpose to find work?

- Do you take, if you are lucky, one week of vacation a year?

- Are you open six days a week?

These are but a few traits of the business model which fit the old and dying shop of the old aftermarket.

On the other hand, the shop owners who have and are working hard to transition to the new aftermarket recognize the new and vibrant (N&V) format that they are embracing. The shop owner is learning that he or she must learn to become a CEO of the business. They have moved themselves out of the bays or front counter, replacing themselves in that position and now working full time on the business.

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