Alex recently sat down with Ratchet + Wrench Radio to discuss a whitepaper she authored on how shop owners can identify inefficiencies in their shops. During the conversation, she discussed how shop owners can recognize these inefficiencies and fix them with shop management software.
Here are some of the highlights from the podcast.
Alex Bunkers: "The saying time is money is no truer than in the automotive industry.
You're literally charging people time. I don't know of a single shop owner that would say they love having to dig through a file cabinet to find an old RO or a purchase order, and it's hard to keep track of tech hours on a journal or spreadsheet (which, we have some shops that come to us doing that).
So having a shop management system allows you to stop spending time in your business and more time on your business—or just more time at home or on vacation with your family."
As any shop owner knows, running a business is an art and a science. Yes, shop owners need to listen to their intuition, but they also need to follow the data.
Tekmetric generates several real-time reports that help shop owners track their key metrics for specific date ranges.
As service advisors punch key repair details into Tekmetric, the system tracks it all, and then generates real-time reports.
Tekmetric saves shop owners time spent calculating their metrics, so they can instantly access insights and spend more time thinking through what those numbers tell them.
By taking their time back, shop owners can grow their shops faster and more methodically."
Alex Bunkers: “You probably do have some idea if you work in a shop what your bottlenecks are. But before you start, evaluate where your bottlenecks are formally. I would start, actually, with breaking out all the processes in your shop into two tracks.
The first one being all of your customer-facing things and kind of a step-by-step of what your customer goes through.
And that's something we like to call the customer journey. For most shops, this is probably going to look something like vehicle drop off, DVI and diagnosis, send the estimate approval, order parts, right, all the way through to payment and pickup. T
he second track would be all the back office things you do, your inventory audits, parts reconciliations, right, things that aren't part of the customer journey."
With streamlined workflows, auto repair shop teams are more unified. They can collaborate from one central hub, all while playing to their unique strengths.
Shop management software with workflow features, like Tekmetric, simplifies the process of streamlining workflows. Shop owners can set up manageable, trackable, adjustable workflows that minimize communication gaps and inefficiencies.
Tekmetric offers three main workflow tools for shops: the Job Board, the Tech Board, and DVIs.
The first is the Job Board, which gives service advisors a whiteboard-esque view of every repair order moving along at the shop, so they can track the progress of each repair and everything is humming along smoothly.
Next, there’s the Tech Board, which shows service advisors what’s on each technician’s repair to-do list and how far along they are with their assigned tasks, so they can know which technician is free to take on the next repair.
Finally, with digital vehicle inspections (DVIs), technicians can pinpoint issues and suggest necessary repairs, send the information to service advisors to create estimates, and then send the estimates directly to customers’ devices.
These three workflow features help service advisors and technicians reduce miscommunication and stay organized.
Alex Bunkers: “When you don't track metrics or take a serious role in orchestrating your customer journey, you're leaving money on the table.
We've worked with thousands of shops during my time at Tekmetric and I definitely notice a correlation between the annual sales of the owners who are actively involved in the operations, building the structure, training their teams, and tracking metrics, versus those who are having a hard time just staying on top of everything.
So, sometimes you have to make yourself slow down to speed up."
Let’s look back one more time at the importance of analyzing the data. It only takes an hour each week, or two hours every other week, to dive deep into real-time reports and monitor how things are going.
For example, spending a few minutes each day just to thoroughly analyze the End-of-Day Report can yield a wealth of insights into how to make more money for your shop and take back time in other parts of the day.
Examining the data makes it easier to know how your shop is doing on a daily, weekly, monthly, quarterly, and yearly basis, and course-correct more intentionally as needed.
When researching digital vehicle inspection software solutions, you should look for these seven core features that benefit your team and your customers:
When shopping for digital vehicle inspection software, make sure that you can easily look back on past inspection findings. When service advisors are able to quickly find out what was uncovered during previous inspections, they’re less likely to miss a repair opportunity and leave money on the table. They can simply pick up where they left off, helping your shop sell more repair work.
It’s one thing to tell a customer, “Hey, your car has really bad engine corrosion.” It’s another thing to show the customer a photo of the orange, brittle-looking rust all over their engine. When customers can see what’s really going on with their vehicles, they’re more likely to trust your team’s word and authorize repairs right then and there. They’ll be less inclined to shop around for a second opinion or tell you, “Oh, I’ll sleep on it and come back tomorrow.”
A digital vehicle inspection software that enables technicians to quickly attach photos and videos will help your team keep repairs moving along and build customer trust.
When explaining repairs to customers, the best route is often the simplest one. Instead of spending time speaking or writing about the intricacies of each inspection finding, service advisors can leverage digital vehicle inspection software that uses a simple, color-coded system to instantly give customers an idea of how urgent each inspection finding is. For instance, an inspection finding marked in green would indicate that everything is good to go, one marked in yellow would indicate something that might need attention down the line, and red would indicate the need for immediate action.
It’s vital for service advisors to weave in the right parts and labor data when building estimates. But doing so manually is a tedious process. With everything going on, service advisors might accidentally scribble down the wrong piece of information, resulting in the customer getting the wrong parts and labor pricing, or inaccurate parts availability.
Digital vehicle inspection software with a direct tie-in to parts and labor data helps service advisors create accurate estimates from the get-go, so there are no unpleasant surprises for anyone at the shop come estimate-review time.
On a daily basis, service advisors may find themselves writing the same types of findings on estimates over and over.
Digital vehicle inspection software with a canned jobs feature will eliminate a lot of this repetition by enabling service advisors to add pre-saved jobs to estimates in a matter of seconds. That way they can complete inspections faster and get estimates in customers’ hands as soon as possible.
The easier you make it for your customers to authorize repair work, the more likely they’ll quickly do so. That’s where digital vehicle inspection software with digital job authorization steps in. Service advisors won’t have to track down customers to get their verbal or written approval to start repair work. Instead, customers can approve or decline individual jobs from the moment they get their estimate.
Some repair work is going to get declined for various reasons. But don’t worry. Declined jobs show that your shop is thorough with inspections and estimates; your team caught every budding and existing issue with each vehicle. Think of declined jobs as future business opportunities for your shop.
However, remembering and keeping track of declined jobs can get tricky with a pen and paper method. Service advisors might totally forget about these opportunities, or if they remember, they’ll have to dig through stacks of paper or navigate folder after folder on a computer just to find the right estimate.
Digital vehicle inspection software that has a “declined jobs” feature enables your service advisors to pick up right where they left off the next time a particular customer walks into your shop. They’ll be able to search which jobs the customer declined last time, and recommend taking care of those issues. The results? You’ll get more business and impress your customers with your great customer service.
The Auto Repair Industry is experiencing a number of changes. From larger economic shifts to a growing technician shortage, its now more crucial than ever to set your shop up for growth.
Often in moments of chaos there are windows of opportunity.
After every economic decline, no matter how steep—the housing crisis, the dot-com bust, even the Great Depression—the world has managed to come back.
Times of economic downturn are difficult, but there is light at the end of the tunnel. As far as the virus is concerned, economists are even speaking of a “V” curve. Meaning just as fast as our economy slowed down, it may pick up that quickly too.
In other words, have hope. There are opportunities during slow periods to adjust how you operate and how you service your guests.
These opportunities can help you navigate a tricky economy and prepare your shop for when business picks up again. This may be an unprecedented time in human history, but it’s also an open window for innovation.
What you do now will have a big impact on the future of your business.
If less cars than usual are rolling into your shop for repairs, you now have some time to work on streamlining your process, being more efficient, eliminating waste (of both time and materials), and improving your marketing and guest experience.
How should shop owners approach this situation? In a way, the same way you might approach business at any other time: finding ways to innovate and improve.
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Today’s vehicle owners look for shops that prioritize their evolving needs, and many gravitate towards shops that take care of their entire vehicle in the most efficient manner, from the engine to the tires. As vehicle owners look for a one-stop auto repair shop, shop owners have the unique opportunity to expand their business by also selling tires. This is where Tekmetric’s Tire Suite comes in — a solution that simplifies tire management, letting you save time while leveraging the opportunity to expand your service offerings.
Tire Suite is a feature that your shop can add onto your existing Tekmetric plan. With this add-on, you have access to tire-specific features that allow you to view data specific to your tires and in turn make informed decisions to support that area of your business. By maximizing the information in Tire Suite appropriately, you can open the door to this new business stream – without losing efficiency in your shop. Here are three ways you maximize tire management in your shop:
Effective shop management saves you time and money – and there are several simple ways you can apply this strategy to the tire portion of your business. For instance, with Tire Suite, you can reduce the amount of time it takes to register Department of Transportation (DOT) numbers when you sell a tire. DOT registration with Tire Suite registers DOT identification numbers electronically with the appropriate tire manufacturer via the Tiremetrix integration. In addition, you get real-time feedback when entering a DOT number in the system to ensure the validity and recall status of the tire.
Instead of having to worry about compliance or losing hours of time to DOT# entry, your service advisors can gain time back with Tire Suite’s automated registration process. Typically, DOT number registration is a manual task, and the time it takes to enter each number can add up to hours of labor time depending on your shop’s sales. Tekmetric’s Tire Suite allows your service advisors to spend less time entering information and more time with the customer. By streamlining manual processes like DOT registration, your shop can handle more work in less time and maximize profitability – all while offering a more convenient and comfortable process for vehicle owners.
In addition to tire compliance, it is also important to set up a system where the tires are used in a timely fashion. Tire Suite allows your team to track inventory and maximize the use of available tires while also making sure tires do not sit too long on the shelf. This requires a bit of finesse, and that’s where Tire Suite comes in. Now, service writers can quickly look up all tires for preferred brands that will fit a vehicle and source them directly from inventory or add as a needed job part.
In addition, tire fitment data allows you to access detailed tire specifications in the RO sidebar for a specific vehicle. For example, if you have a vehicle that needs staggered tires, the data will ensure you get two tires of each type rather than four of the same size. That attention to detail is made possible by leveraging tire-related data – and it can make a significant impact on growing that portion of your business.
Once a dealership warranty ends, 70% of customers will seek a repair shop they know they can trust and remain loyal to. Customers value convenience and comfort. When those needs are met, they are more likely to trust your shop and return to do business with you time and time again.
Shops with the highest retention rates often make tires a part of their business because customers are looking to kill two birds with one stone. Conversely, by not selling tires, you can even hurt your retention rate. When you choose to offer tire management services and provide them in an efficient manner, you are more likely to maintain your customer retention rate because vehicle owners will have everything they need in the hands of their favorite shop.
Adding tire services to your auto repair offerings may seem daunting – but the opportunities far outweigh the challenges. When you leverage the appropriate tools for tire management, such as Tekmetric’s Tire Suite, you can maintain your shop’s efficiency and meet vehicle owners’ needs without missing a beat. The result? Happy, returning customers – and growth in your bottom line over time.
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