The Value of An Auto Shop

Knowing & Understanding What You Offer to Customers

Do you know the value you’re offering to your customers? Is that reflected in your business? Read on to learn why understanding the value of your auto shop is key for a successful business, and industry.

Photo by Isaac Smith on Unsplash

What is an auto shop service worth?

Why does the automotive repair industry take pride in our poverty? There are many shop owners who feel they have to discount to attract and retain customers. When we discount, what message are we sending about the value of an auto shop?

We tell our customers that our work is not worth that much. That our employees are not worth that much. We send a message to the world that our industry is not a professional industry and that we overcharge people. By discounting we are in a race to the bottom. We set a standard for ourselves that is lower than the service we should provide for our clients.

It is up to us, as owners, to raise the bar for our businesses and the industry. Anyone with a set of tools and a heartbeat can have a business; the setting of standards is up to each of us. Rather than lowering expectations and costs, it is more important to find ways to increase the value of an auto shop. When you increase value for customers, you’re able to retain and pay great employees what they deserve and enjoy a fair profit.

In the automotive industry, we may be able to deliver work on discounted prices, but we can never deliver on a better value to our clients. This damages our shops and brands. And damages all other shops as each of us represents a small part of the automotive industry.

No more focusing on discounts!

We should be seeking to elevate our own businesses and, in turn, the industry. No one ever sought out a surgeon for a major procedure like open heart surgery because they had a coupon. When people seek your shop out, it should be because you’re the best. Because they see the value of an auto shop, especially with a track record of happy customers and great reviews.

It is important to strive to be the best. We find ways to add value to our customers’ experience such as: providing a three-year 36,000-mile warranty, offering complimentary loaner and rental cars, washing our client’s cars, using good quality parts, being honest, and having a clean and comfortable place for customers to wait. Focus on providing the best value rather than lowering prices, using inferior parts, and hiring unqualified people to do the job because there isn’t enough money to keep the good employees.

This isn’t just about raising your prices.

There’s much more that goes into providing value than that. It’s a new and better way of doing business. With this new way comes an opportunity that allows us to make a fair profit, provide a great place for employees to work, and give our clients much more value for the money. When you increase the value you are offering then you will attract and retain customers who are looking for value and are willing to pay a fair price for it.

Photo by Ian Schneider on Unsplash

We need to charge enough to cover everything. That includes training for employees, buying and repairing equipment, providing benefits for employees, marketing, etc. When we don’t charge enough or when we discount then we cannot provide the things that add value and make the prices worth it. Most of us got into this industry because we love fixing cars and we like helping people. We can’t do either of these well when we don’t charge a fair price.

Only you can change the value of your auto shop.

Only you can change what you do, what value you offer, and how you run your business. Every business is different but most customers just want to be treated like customers and receive the best value for their money. I can’t tell you how many times I’ve heard from clients “I wish I would have made the change to this shop sooner!”

We have an opportunity every day to decide who and what we are. Knowing and understanding your value is the first step in a process of transformation so ask yourself who are you going to be? Are you the low cost discount shop that drags the industry down or the shop that provides increased value to their clients, a great work environment to their employees and a fair profit for the owner?

The good news is that it is never too late to change. This industry is evolving every day and those that provide an increased value to their customers, have the resources to attract and retain top talent and adapt to the changes will survive and thrive; and those who don’t, won’t.